World Gas Intelligence articles from May 2002

World Gas Intelligence archives from May 2002

Bolivia-Mexico LNG dream.(liquefied natural gas)(Brief Article)
May 8, 2002... Making a dream come true generally involves many difficulties, and in the case, of the Bolivia-Mexico-US LNG project, some are already beginning to show up. In land-locked Bolivia, a hard choice must be made within days as to whether the gas...

El Paso offshore LNG plans advance.(liquefied natural gas)(Brief Article)
May 8, 2002... Convinced that it will not be possible to permit new LNG receiving terminals at greenfield sites in the US, El Paso is pushing ahead aggressively with its concept of offshore facilities. The company aims to build receiving points, first in the...

Shell moves in China.(Brief Article)
May 8, 2002... Royal Dutch/Shell plans to bid aggressively for a stake in China's second LNG terminal, a 2.5 million ton per year facility to be built in Fujian province, on the country's east coast, WGI is told. Shell is already a contender to supply...

Turkmenistan, Russia fight goes on.(Brief Article)
May 8, 2002... Politics aside, construction of a gas pipeline from Turkmenistan through Afghanistan to Pakistan is a long, long shot at best, especially given that growing domestic reserves leave Pakistan in little evident need of the gas (WGI Jan.9,p5). ...

Canada blasts Alaska gas pipe subsidies.(Brief Article)
May 8, 2002... Canadian government and industry officials are blasting a US Senate plan to provide tax credits to Alaskan gas producers, saying the credits are unfair subsidies. If they are adopted, Canada may consider giving offsetting assistance to the...

Enron hopes to rise from the ashes.(company seeks to move energy infrastructure, generation assets to new company OpCo Energy)(Brief Article)
May 8, 2002... Last week, Enron presented creditors with a plan for moving the company's energy infrastructure and generation assets out of bankruptcy and into a new company, temporarily named OpCo, to be operational by Jan. 1. According to Enron Chief...

ENI faces rivals for German pipeline.(Brief Article)
May 8, 2002... ENI's prospects for securing control over a strategic German gas pipeline operator, thereby boosting its gas sales north of the Alps, aren't quite so bright as when its strategy was outlined last summer (WGI Aug.1,p1). The Italian company now...

Tractebel in Peru.(Brief Article)
May 8, 2002... Tractebel, the Belgian energy subsidiary of French Suez, has deepened its involvement in Latin America with signature of a 30-year agreement to build and operate the first distribution network for gas from Peru's 13 trillion cubic foot Camisea...

EU clears Shell bid.(European Commission approves Royal Dutch-Shell Group of Cos. takover of UK independent Enterprise)(Brief Article)
May 8, 2002... The European Commission has cleared Royal Dutch/Shell's proposed $6 billion takeover of UK independent Enterprise, saying that its analysis focused on whether enough spare gas pipeline and processing capacity would remain available outside...

IPE gas futures. (Insight).(International Petroleum Exchange gas futures)(Brief Article)
May 8, 2002... IPE GAS FUTURES Contract May 3 * Week's May 3 * Month p/therm High/Low $/MMBtu Jun. '02 12.09 12.18/12.05 1.72 Jul. 12.68 12.68/12.68 1.80 Aug. 13.15...

NYMEX gas futures. (Insight).(New York Mercantile Exchange gas futures)(Brief Article)
May 8, 2002... NYMEX GAS FUTURES Contract May 6 Week's Apr. 29 Month $/MMBtu High/Low $/MMBtu Jun. '02 3.595 3.63/3.53 3.561 Jul. 3.639 3.67/3.59 3.589 Aug. ...

Asian LNG markets. (Insight).(liquefied natural gas)(Brief Article)
May 8, 2002... ASIAN LNG MARKETS Buyer Seller Prices in $/ton Mar. '02 Feb. '02 Jan. - Mar. Mar. '01 Japan Abu Dhabi 229.89 233.90 233.26 251.07 Alaska 194.04...

Market insight: India's price ceiling. (Insight).(India, Qatar)(Brief Article)
May 8, 2002... Qatar's RasGas and India's Petronet LNG have agreed on amended pricing terms in their contract to send 5 million tons per year of Qatari LNG to Dahej, in Western India (WGI Apr.24,p3). The new terms introduce a price ceiling at $3.60-$3.80 per...

Combined-cycle peakers cause stress on US pipelines. (Current).(gas pipe lines)(Brief Article)
May 8, 2002... The rising influence of merchant power plants is altering the way US gas pipelines operate--to the potential detriment of local distribution systems, some fear. The new gas turbines are modified jet engines that can be turned on and off at...

Ruhrgas results steady, as Germany awaits changes. (Horizon).(Ruhrgas AG reports 2001 sales increase)(Brief Article)
May 8, 2002... Germany's gas sector is on the verge of a major transformation. Its largest supplier, Ruhrgas, this week issued results for 2001 which could mark its last full year of independence--indeed, almost certainly will if a takeover by E.On is...

Algeria's Gassi giant.(Brief Article)
May 15, 2002... Algeria plans to export at least 10 billion cubic meters of gas per year (967 million cubic feet per day) from its giant integrated gas project in the Gassi Touil area, as yet untendered, where fields are estimated to contain reserves in excess...

Marathon `to undercut Transco'.(natural gas pipeline from Norway to UK)(Brief Article)
May 15, 2002... Marathon launched a five-month "open-season" on May 14 to secure investment and shipper commitments to cover its proposed gas pipeline, dubbed `Symphony,' which will link Norway to Bacton, the nearest North Sea landfall to London. Although...

Fenosa chairman dies.(Union Fenosa chairman, Victoriano Reinoso)(Brief Article)
May 15, 2002... The chairman of Spanish energy group Union Fenosa, Victoriano Reinoso, died suddenly on May 13 in La Coruna after two months in the post, and after 30 years working at Fenosa. He was 53. His deputy, Vicente Arias, has taken over as acting...

Chinese bill to protect investors.(in natural gas industry)(Brief Article)
May 15, 2002... Beijing is formulating a new legal framework to safeguard investors in the $18 billion West-East gas pipeline scheme, as well as other major infrastructure projects designed to meet growing gas demand as China's demand is forecast to reach 70...

Alaskan pipe `not economic'.(natural gas pipeline)(Brief Article)
May 15, 2002... Despite efforts by lawmakers to help push along a natural gas pipeline from Alaska's North Slope to the Lower 48, an engineering study by the producers says the project is still not economically feasible--at least for now. BP, Exxon Mobil,...

Oxy is third Dolphin partner.(Occidental Petroleum joins Dolphin Energy pipeline project)(Brief Article)
May 15, 2002... US Occidental Petroleum last week announced that it had been selected to join the Dolphin project in the Middle East--an ambitious scheme that will pipe Qatari gas to the United Arab Emirates through what will be the Mideast's first...

Peru's gas plans in Peril.(problems privatization of gas industry; utility contract bidding set)(Brief Article)
May 15, 2002... Privatization of Peru's energy industry is under fire from the left and is threatened by potential foreign investors, as attempts to build a market for gas from its giant Camisea field--including attempts to site an LNG export terminal in...

Dynegy to divest.(Dynegy Inc.)(Brief Article)(Statistical Data Included)
May 15, 2002... US energy services group Dynegy has signaled its intention to sell US and UK gas assets, which some observers expect to raise over $1 billion in cash. But the group's shares continued their downward slide last week, when it emerged that the US...

Duke up in Germany.(Duke Energy bids to acquire Gasversorgung Suddeutschland)(Brief Article)
May 15, 2002... US utility Duke Energy is the highest bidder for a majority stake in the strategic south German gas distributor GVS, according to a report last week in regional newspaper Stuttgarter Zeitung which says binding offers have now been presented....

Philippine LNG power.(liquified natural gas)(Brief Article)
May 15, 2002... GNPower is setting up the country's first power plant to run on imported gas. The Philippines government has given the nod to set up a 1,200 megawatt gas-fired power plant in Bataan. It will be the first in the country to use LNG, which may...

Thai about-turn.(Thailand-Malaysia gas pipeline plan changed)(Brief Article)
May 15, 2002... Environmentalists are up in arms against a new government plan to pipe gas from a Thailand-Malaysia joint development area through a new route (WGI Oct.31'01,p4). Thailand's prime minister Thaksin Shinawatra has approved an alternative route...

Prices for feedstock and power station gas. (Insight).(Brief Article)(Statistical Data Included)
May 15, 2002... PRICES FOR FEEDSTOCK AND POWER STATION GAS (In Euro cents/kWh) Apr. Jan. Apr. '02 '02 '01 Power Stations Belgium 1.13 1.23 1.51...

IPE gas futures. (Insight).(International Petroleum Exchange Holdings PLC)(Brief Article)(Statistical Data Included)
May 15, 2002... IPE GAS FUTURES Contract May 13 Week's May 13 Month p/therm High/Low $/MMBtu Jun. '02 11.88 12.05/11.85 1.69 Jul. 12.60 12.80/12.55 1.79 Aug. ...

Nymex gas futures. (Insight).(Brief Article)(Statistical Data Included)
May 15, 2002... NYMEX GAS FUTURES Contract May 13 Week's May 3 Month $/MMBtu High/Low $/MMBtu Jun. '02 3.783 3.80/3.62 3.595 Jul. 3.831 3.84/3.67 3.639 Aug. ...

Market insight: Europe's cheaper energy. (Insight).(Brief Article)(Industry Overview)(Statistical Data Included)
May 15, 2002... Power prices on the spot market to end-users have fallen sharply this year in Britain and Germany--and by implication Austria and Switzerland--as indicated by WGI's quarterly European End-User Price supplement. So sharply have prices fallen...

Europe's hydro-power heyday over. (Current).(Brief Article)(Industry Overview)
May 15, 2002... Hydroelectric power has been a mainstay of European power production for a century. But prospects for growth are limited because of public opposition to large new schemes that are seen as being far from environmentally benign. Alpine...

US merchants go from Wall Street darlings to takeover targets. (Horizon).(Brief Article)(Industry Overview)
May 15, 2002... US wholesale energy merchants and independent power producers (IPPs) were once Wall Street's energy-sector darlings, commanding price-to-earnings multiples beyond the wildest dreams of electricity or gas utilities, and enjoying access to...

WGI supplement: European end-user prices (in eurocents/kWh).(Brief Article)(Statistical Data Included)
May 15, 2002... WGI SUPPLEMENT: European End-User Prices (In Eurocents/kWh) Gas Prices: 100,000 cm/yr Typical High Low Belgium Apr. '02 2.12 ... ... Jan....

Qatar eyes UK, US sales.(considers exporting liquefied natural gas)(Brief Article)(Statistical Data Included)
May 22, 2002... In line with its ambition to become a global gas supplier, Qatar is currently considering proposals to export LNG not only to the US, but also to the UK, a Qatari official tells EIG. Supplying the UK is an unconventional idea, due to the...

Plunge in US output looks even bigger.(gas production expected to decrease)(Brief Article)(Industry Overview)(Statistical Data Included)
May 22, 2002... Most US market analysts are rapidly upping estimates of the size of this year's expected fall in US gas production. But one we!l-known upstream commentator claims that US gas production will fall much faster even than most of these new bullish...

Slow progress at Iran's south pars.(Petropars seeks partners to implement Phases 6,7, and 8 at south Pars project)(Brief Article)(Statistical Data Included)
May 22, 2002... Controversial National Iranian Oil Co. (NIOC) affiliate Petropars is still trying to find foreign partners to help implement Phases 6, 7, and 8 of the giant South Pars project, which involves the production of 3 trillion cubic feet of gas and...

German regulatory battles rage on.(Brief Article)(Statistical Data Included)
May 22, 2002... Germany's parliament has adopted a law to extend competition in the energy sector that gives legal backing to a voluntary agreement reached on May 3 by four industry groups on access to the country's gas network. The law means that Germany will...

Tiny Caribbean LNG market growing fast.(liquefied natural gas)(Brief Article)(Statistical Data Included)
May 22, 2002... Last year's fastest-growing LNG market wasn't North America, Western Europe, or East Asia. It was the Caribbean. The region's single LNG terminal, in Puerto Rico, boosted imports by 57% last year--albeit from a tiny base. This year the...

Strong profits for European power.(Brief Article)(Statistical Data Included)
May 22, 2002... Europe's leading power companies appear to be reaping the bottom-line benefits of an increased focus on core gas and power businesses, following a flurry of sales and acquisitions of non-core assets over the last year or so. This contrasts...

New Timor troubles.(East Timor treaty with Australia fails to settle Greater Sunrise reserves dispute)(Brief Article)(Statistical Data Included)
May 22, 2002... Fresh squabbles at both a political and corporate level are adding to the uncertainty hanging over Greater Sunrise gas prospects (WGI Apr.24,p2). East Timor turned independent at the weekend and signed a Treaty and Memorandum of...

Repsol's GN sale.(Repsol YPF divests stake in Gas Natural which divests stake in Enagas)(Brief Article)(Statistical Data Included)
May 22, 2002... Embattled Repsol YPF has halved its stake in Gas Natural (GN), considered one of the jewels in the Madrid-based company's crown, selling a 23% stake for just over $1.83 billion (2 billion euros). The private offer was 2.3 times oversubscribed....

Gaza gas to Israel.(Ariel Sharon approves purchase of gas discovered offshore the Gaza Strip)(Brief Article)
May 22, 2002... Israeli Prime Minister Ariel Sharon has given preliminary approval for Israel to purchase gas discovered by the UK's BG Group with partner Consolidated Contractors Co. (CCC) offshore the Gaza Strip, under a concession awarded by the Palestinian...

Correction.(Correction Notice)
May 22, 2002... In quoting Graham Brown, chief operating officer of Ontario Power Generation, in the Horizon section of the May 15 issue, WGI mistakenly referred to Ontario Power as being a part of UK Innogy (WGI May l5,p8). In fact, Ontario Power Generation...

Market insight: Japanese discount. (Insight).(Tokyo Electric Power Co. and Tokyo Gas negotiate Petronas price reduction)(Statistical Data Included)
May 22, 2002... Claims this week by top Japanese LNG importers Tokyo Electric Power Co. (Tepco) and Tokyo Gas to have extracted a 5% price reduction from Malaysian state Petronas when renewing their long-term LNG contracts in March with MLNG 1 illustrate how...

Trading practices that caught out Enron--and others. (Current).(Brief Article)(Statistical Data Included)
May 22, 2002... The US merchant energy sector has been rocked by revelations of trading improprieties (WGI Mar. 15,p8). Documents released by US energy regulators show that Enron traders manipulated the California electricity market, using a variety of methods...

Gazprom wanders down rocky road to reform. (Horizon).(growth strategy may include joining Sakhalin-2 project operated by Royal Dutch/Shell)(Brief Article)(Statistical Data Included)
May 22, 2002... Russia's Gazprom has signaled a clear vision for breaking into the Asian market, by declaring that it may join the Sakhalin-2 project operated by Royal Dutch/Shell in the country's Far East. But in more familiar Western climes, Gazprom...