Approval for Masela LNG

Indonesia has approved a development plan for a LNG floating terminal project run by Japan's Inpex Corp.

The floating LNG project will have capacity of 2.5 MMTPA, lower than a previously proposed capacity of 4.5 MMT, said Evita Legowo, director general of oil and gas at the energy and mineral resources ministry.

The project will cost an estimated US$ 4.9 Bn.

Inpex has a majority stake in the Masela block in Maluku province while PT Energy Mega Persada , a unit of the Bakrie Group, has a 10% stake in the oil and gas block.

Former OPEC member Indonesia, which has far more gas than oil, has pushed companies to move faster in developing gas projects as the country badly needs the fuel for domestic industrial demand as well as for exports.

CH-IV International To Support U.S. LNG Export Project On Behalf Of Freeport LNG Expansion, L.P.

Freeport LNG Expansion, L.P. and Macquarie Energy to Jointly Develop LNG Export Project.
HANOVER, MD November 22 – Jeffrey P. Beale, President of CH-IV International (CH-IV) is pleased to announce that CH-IV International will continue its Owner’s Engineering support for Freeport LNG Expansion, L.P. (Freeport LNG) for their recently announced project with Macquarie. CH-IV International had previously been contracted by Freeport LNG to execute a Pre-FEED for the LNG Export Project, which included the evaluation and selection of the Liquefaction Technology. As part of the overall FEED for the expansion project, CH-IV will continue its support to Freeport LNG by managing and contributing to the preparation of the required Resource Report 13 (RR13) for the NEPA Pre-filing Process with the Federal Energy Regulatory Commission (FERC).

The Freeport LNG import terminal located on Quintana Island, Texas commenced commercial operations in June 2008. Since commercial operations began, the terminal has seen a limited number of import cargos due to higher global LNG prices relative to natural gas prices in the United States, and the significant increase in domestic gas supplies due to recent advancements in shale gas technology.

Mr. Beale stated, “CH-IV is excited to continue working with the Freeport LNG Team on such an important project. We look forward to adapting the current infrastructure to meet new commercial goals while maintaining the existing high levels of safety and operational proficiency.”

“We look forward to continuing the relationship we have developed with CH-IV in evaluating various potential opportunities for our terminal.” stated Charles Reimer, Freeport LNG President. “Supplementing our existing import terminal with the capability to produce and export LNG provides Freeport LNG with new opportunities to maximize the value of our assets on Quintana Island.”

Mr. Michael Diemert, of CH-IV’s Houston Office, will manage this project.

# # # #

CH-IV [read C - H - 4] International (www.ch-iv.com) is a joint venture corporation between MPR Associates, Inc. (www.mpr.com) and CH-IV Cryogenics, LP. CH-IV International provides engineering and consulting services in four overlapping areas involving LNG facilities: 1) Feasibility / Pre-FEED; 2) Front end engineering design (FEED); 3) Engineering oversight and consulting on all things LNG; and 4) Operational services relating to the training, commissioning, start-up and operations of LNG facilities.


Follow activities in the LNG industry and CH-IV
by clicking on http://twitter.com/LNGSpecialists

# # # #

CH·IV International to provide Consulting Services to Bangladesh LNG Project

Bangladesh is seeking solution to energy crisis due to the gas supply shortfall.



HANOVER, MD November 15 – Jeffrey P. Beale, President of CH·IV International (CH·IV), is pleased to announce that CH·IV International, in association with the Galway Group LP, will provide support to Bangladesh’s state-owned Petrobangla in acquiring firm LNG supply and design and construction of the country’s first LNG import terminal. Chief of the Bangladesh LNG Cell Md Muqtadir Ali said, “The company (CH·IV) was selected on the basis of its experience in negotiating LNG supply agreements, pricing, LNG shipping and development of LNG import terminals.” Mr. Muqtadir, who previously served as the acting chairman of Petrobangla, added “We have already issued a letter of intent to award the contract to the U.S firm.”

Mr. Beale pointed out that CH·IV emerged as the clear winner out of the 28 global companies that had participated in the Technical Advisor tendering process. Further Mr. Beale stated, “The Team of CH·IV and Galway provide the proper mix of strong talent to address the many dimensions of this world class LNG project.”

The Team’s support of Petrobangla is further strengthened by Galway’s recently announced expansion into Singapore and the addition of Mr. Veldanda V. Rao as the Managing Director of Galway's Asia energy consulting practice. Mr. H.J. Miller, one of the founding partners of Galway, said, "We are very pleased to have this opportunity to utilize our Asia based consulting strengths on behalf of this exciting new LNG project for Bangladesh."

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FERC imposes new vapor rules on Weaver's Cove LNG

FERC has informed Weaver’s Cove Energy that the company must comply with new vapor-gas exclusion zone requirements before moving forward with construction of the planned LNG terminal.

In a letter issued from FERC to Weaver’s Cove attorney Bruce F. Kiely, the director of FERC’s office of energy projects informed the company that it must receive written authorization from FERC before constructing any facilities associated with the project. That authorization, the letter states, “will only be granted following a determination that the facilities are in compliance with the interpretations issued by” the Pipeline and Hazardous Materials Safety Administration of the U.S. Department of Transportation.

The PHMSA issued two interpretations in July concerning the flammable vapor-gas exclusion zone requirements, saying that the interpretations apply to any LNG facility that is not yet in existence or under construction.

Two city residents raised objections with the U.S. Department of Transportation and FERC earlier this year in regards to Weaver’s Cove’s use of an outdated dispersion called SOURCE5 to show that vapor gas would not leave the company’s Fall River site.

Residents John Keppel and Michael Miozza argued the SOURCE5 model used by Weaver’s Cove resulted in a vapor dispersion model that showed vapors would remain within the company’s property. Keppel said at the time the SOURCE5 model creates “artificially small vapor zones.”

They argued that under different models the vapor dispersion would travel beyond the company’s boundaries, over private residences and possibly to Route 79.

In response to those concerns, the U.S. DOT informed the pair in July that the SOURCE5 model can not be used to comply with the agency’s vapor gas dispersion exclusion zone requirements. A similar determination was made in regards to the proposed Downeast LNG proposal for Robbinston, Maine.

KOGAS's Strategic LNG deals in Australia, Indonesia

Korea Gas Corp (KOGAS) is planning to acquire stakes in Australian and Indonesian LNG projects to secure stable supplies, the state-run utility said in a report.

The world's largest LNG buyer said it was in talks to acquire a 15% stake in a coal seam gas project led by Australia's Santos Ltd and a 9.8% stake in Indonesia's Senoro Toili project run by Japan's Mitsubishi Corp.

The company did not provide a financial value for either of the potential deals, but sources with knowledge of the Australian deal said in August that KOGAS would invest more than US$1 Bn in the Santos's Gladstone LNG (GLNG) project.

"The US $1 Bn fundraising report lends credence to the first report that KOGAS will take a larger 15% of GLNG, rather than the 10 percent commonly reported previously," said Benjamin Wilson, an analyst with JP Morgan in a note.

"We think this news implies Kogas is confident it will achieve Korean government approval to contract/purchase soon," Wilson said.

Total paid US$597.4 MN for 15% of the coal seam gas-fed LNG project in Australia's north east state of Queensland in September.

Santos currently owns 45% of Gladstone, Petronas has 35% and Total holds 20%.

In addition to buying a stake in the GLNG project, KOGAS has also been expected to sign an offtake agreement for 2 million tonnes per annum of LNG from the project.

The state-run utility sold 24.6 MMT of LNG in 2009 and said in February that it was planning to spend about US$895.4 MN this year on overseas resource development to secure energy supplies for Asia's fourth-largest economy.

LNG Report - International LNG market likely to balance in 2011 as demands grows

The International LNG market will likely come back into balance in 2011 as demand grows considerably this year and the next, absorbing the projected supply growth, BofA Merrill Lynch Global Research said in a report.

The bank said it was projecting total International LNG import growth of 18% for 2010, followed by 9% in 2011, with the bulk of the increase coming from Asia and Europe. "We believe the risk of an influx of LNG imports to the US is low," it added, since it expects US gas prices to remain "very weak."

The UK could become the world's fourth-largest LNG importer in 2010, after Spain, with imports up 120% year on year "potentially exceeding 11.6 MMT," it said. "In general, UK LNG utilization rates at regasifcation capacity still remains low, suggesting room for further liquid gas imports into the UK."

In Asia, China and India have expanded their import capacity, the bank said, while South Korean and Japanese imports had "surprised to the upside, though largely driven by a hot summer." And "new joiners" such as Argentina, Brazil and Chile would also soak up some of the expected growth in supply, it added.

Global LNG supply would likely grow 14% in 2010 and 9.6% in 2011, the bank said. It added, however, that a number of issues "are clouding the supply outlook of existing facilities." Those include rising use of domestic gas among some exporters, technical issues "as seen with RasGas Train 7 and Tangguh in Indonesia," and maintenance of LNG trains, particularly in Qatar.

"Combine the strong rebound in LNG demand with the startup delays at Qatargas Trains 6 and 7 into next year, and we get a global LNG market in 2010 that is less loose than commonly expected," the bank said.

As a result, it added, the market would "likely be able to rebalance over the course of 2011."In level terms," the bank added, the market would remain oversupplied in both 2010 and 2011 due to utilization rates at liquefaction terminals remaining below 90%, however.

LNG production reached a total of 181.7 MMT in 2009, according to independent consultant Andy Flower.

Roberto R. Vara returns to CH·IV International

HANOVER, MD July 14 – Jeffrey P. Beale, President of CH·IV International (CH·IV) is pleased to announce that Roberto Ruiperez Vara has returned full-time to our Hanover Maryland Corporate Office. Mr. Vara will provide technical consulting engineering services to clients involved in the pretreatment and liquefaction of natural gas and the transportation, importation, storage and re-gasification of Liquefied Natural Gas (LNG). Mr. Beale stated, “Roberto has played a very significant role in CH·IV’s success before leaving for Chile. I know, with his return, our clients will benefit from his wealth of experience and expertise.”



Mr. Vara took over the role of Operations Manager at the GNL Quintero LNG import terminal in Quintero Bay, Chile in May of last year. There he oversaw cooldown and start-up of the world’s first of its kind “Early Gas” LNG Import Terminal, where LNG transfers are batched into a small land-based tank (10,000 cubic meters) with a LNG carrier permanently connected to the jetty, until the complete terminal (2 x 160,000 cubic meter LNG tanks) construction could be completed. As Simultaneous Operations (SIMOPS) Coordinator, he established and managed a Permit to Work System that allowed approximately 200 construction workers to complete the LNG terminal constructions while day-to-day LNG sendout was taking place.


Construction of the entire terminal was completed in late Spring, at which time Roberto directed Operations through start-up. Mr. Vara completed his obligation in Chile upon establishment of normal operations of the GNL Quintero LNG import terminal.

The GNL Quintero LNG import facility is comprised of three LNG tanks (one x 10,000 cubic meter and two x 160,000 cubic meter); two x 175 mmscfd open rack vaporizer systems; one x 175 mmscfd submerged combustion vaporizer system; six first stage, in-tank LNG pumping systems; one recondenser and BOG recovery system, three x 1,600 gpm high pressure LNG pumping systems; a 6,000 foot long LNG Transfer System and a marine LNG carrier berth.



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CH·IV [read C - H - 4] International is a joint venture corporation between MPR Associates, Inc. and CH·IV Cryogenics, LP. MPR, founded in 1964, specializes in technical services for the development, design, construction and operation of power facilities and equipment for energy, industrial, pharmaceutical and government clients. CH·IV Cryogenics, founded in 1994, had been providing LNG engineering and consulting services to a wide base of clients ranging from international LNG trading to LNG vehicle fleets until the formation of CH·IV International in 2001.



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YPF, Enarsa To Build LNG Plant Near Buenos Aires

Argentine oil company YPF SA, the local unit of Spain's Repsol YPF SA, will build a LNG plant about an hour north of Buenos Aires.

The LNG plant, which will cost around $150 million to build, will be financed equally by YPF and the state energy company Enarsa.

The government typically rations gas to industrial firms during Argentina's cold winter months, which run roughly from May through September.

Argentina already gets LNG from a regasification vessel located at the southern port of Bahia Blanca in the province of Buenos Aires.

Argentina also imports natural gas from Bolivia, but the amount of gas produced domestically, coupled with imports, still fails to meet demand during the winter, leading to rationing.

Argentine President Cristina Fernandez said that her government is working with Uruguay on the construction of an LNG plant, though she didn't provide more details. Presidents of the two countries are thought to be nearing finalization of plans to build a regasification plant near the Uruguayan capital of Montevideo.

Since an economic meltdown in 2002, the government has kept most energy prices and utility rates frozen partly because of its belief that rates should be kept low to help spur growth in other areas of the economy.

But the price controls have crimped profits for oil and gas companies and given them a disincentive to invest in exploration and production.

As a result, Argentina's oil and gas reserves have fallen while demand has risen, creating an energy crunch that has sometimes led to blackouts and rationing.

Argentina gets more than 90% of its energy from oil and gas. Energy experts say the country depends more on natural gas than any other nation in the region.

A K Balyan to head Petronet LNG

Petronet LNG, India's largest LNG importer, has appointed Ashok Kumar Balyan as new Chief Executive Officer and Managing Director.

Balyan, who currently is Director for Human Resources and Business Development in Oil and Natural Gas Corporation, has accepted the offer made at the meeting of board of Petronet (PLL).

Balyan will now resign from ONGC and is likely to join PLL by month end. He is due to retire from ONGC on July 31, 2011, on attaining superannuation age of 60 years.

South Hook LNG terminal in UK completed

The second part of Europe's largest LNG terminal at South Hook in Wales has been fully commissioned, doubling the amount of gas it can deliver into the UK gas grid to 21 BCM a year, the operator said.


The first phase of the terminal owned by U.S. oil major ExxonMobil, Qatari gas giant Qatargas and France's Total officially opened in May 2009.

The first two storage tanks at the facility in the port of Milford Haven, each the size of London's Albert Hall concert venue, were brought into service a year ago. The three extra tanks and other equipment commissioned since then increase the terminal's total processing capacity to 15.6 million tonnes per year of LNG.

Most of South Hook's LNG will come from Qatar. Britain hopes increased LNG import capacity will help compensate for decling North Sea gas production.

(Reuters)

Natural Gas Outlook This Week

Prices

Natural gas spot prices continued declining this week, reflecting moderating demand as temperatures warmed in key high-demand areas of the country. Spot prices at market locations across lower 48 States fell since last Wednesday, March 10, with decreases ranging between 4 and 26 cents. Prices at trading locations serving demand centers in the Northeast also fell significantly on the week, as spring-like temperatures arrived. The spot price at the Algonquin Citygate, which delivers natural gas to markets in New England, fell 19 cents or about 4 percent on the week. Transcontinental Pipeline’s delivery into New York City was priced at $4.58 per MMBtu yesterday, 18 cents, or 3.8 percent, lower than the previous Wednesday.

Prices at trading locations serving markets in California registered some of the biggest declines since last Wednesday, particularly the southern portion of the State where temperatures continued to moderate. Natural gas spot price at the Southern California Gas Company’s market location fell 22 cents or about 5 percent since last Wednesday, ending trading yesterday at $4.49 per MMBtu. Prices at the Pacific Gas and Electric trading location, which serves markets in northern California also decreased significantly on the week, falling by 21 cents. However, despite the significant price decline, this location was the highest-priced in the lower 48 States as of yesterday, ending trading at $4.81 per MMBtu. The high price at this location and its spread compared with the Henry Hub and trading locations in the Northeast is the result of several factors. These factors include BENTEK Energy estimates, which show that since the middle of 2009, electric generators in the Western United States have been using more natural gas compared with the 5-year (2005-2009) average. The increased power burn is likely the result of a reduction in hydroelectric power generation in the Pacific Northwest and California because of lower precipitation and drought conditions. Furthermore, natural gas is replacing the 1,100 megawatts of electric power that Unit 2 of the San Onofre Nuclear Generating Station (SONGS) previously generated. SONGS Unit 2 has been out of service since September 2009 for steam generator replacement.

While temperatures in the Rocky Mountain States increased slightly during the report week, they continued to hover in the 30s and 40s. Still, the price of natural gas fell substantially in a few market locations in the Rockies. The highest net weekly price drop occurred at Northwest Pipeline’s Sumas location, which fell by 26 cents or 5.7 percent per MMBtu since last Wednesday. The Sumas premium over Henry Hub decreased from 14 cents to 5 cents per MMBtu as of yesterday. Additionally, prices at Kingsgate in Idaho and Stanfield (for delivery into Oregon) fell by 23 and 22 cents per MMBtu, respectively. Overall, trading locations in the Rockies registered net weekly decreases between 4 and 26 cents per MMBtu.

The across-the-board price decreases likely resulted from the significant reduction in total U.S. demand. Total demand for the week ended March 17 fell by 8.6 percent compared with last week, according to BENTEK Energy. Consumption in the residential and commercial sectors fell by 12 percent, contributing to the week-to-week decline. The majority of the decrease in this sector occurred between Monday and Wednesday of this week, as temperatures rose in areas east of the Rockies. The electric power and industrial sectors also recorded demand decreases of 8.6 and 2.3 percent, respectively.

Natural gas supply exceeded total demand for 3 days this report week, the first time the estimated supply/demand balance was positive since November 26, 2009. However, total natural gas supply fell this week, a result of the decrease in Canadian and liquefied natural gas (LNG) sendout, according to BENTEK. Canadian imports decreased by almost 2 percent compared with last week, while LNG sendout fell by nearly 9 percent over the same period. U.S. natural gas production was flat compared with last week, with volumes totaling only 0.1 percent lower. Total supply of natural gas this week was 0.4 percent lower than last week and 2.2 percent lower than last year for the same week.

At the NYMEX, the price of the near-month contract for April delivery decreased by 26 cents during the report week to $4.303 per MMBtu. The price of the April futures contract has decreased fairly consistently since becoming the near-month contract on February 25, falling 46 cents during the period. Remaining contracts for delivery through the end (October 31, 2010) of the upcoming injection season posted similar decreases, ranging between 4.7 and 5.5 percent. Prices on the futures market likely reflect the arrival of spring-like temperatures and continued strength in natural gas production. With only about 2 weeks left in the traditional heating season, which will officially end on March 31, supplies of natural gas are relatively ample. Robust domestic production coupled with the possibility that natural gas inventories in underground storage may close the heating season at about last year’s level could provide considerable downward pressure on prices. Inventories of natural gas in underground storage ended the 2008-2009 heating season at 1,656 Bcf, the highest level since the 2005-2006 heating season ended with 1,692 Bcf of natural gas in storage. The 12-month strip traded yesterday at $4.919 per MMBtu, 22 cents or 4.3 percent lower than last Wednesday.

Storage

Working gas in storage decreased to 1,615 Bcf as of Friday, March 12, according to EIA’s Weekly Natural Gas Storage Report (see Storage Figure). The implied net withdrawal was 11 Bcf, significantly below both the 5-year (2005-2009) average withdrawal of 65 Bcf, and last year’s net withdrawal of 42 Bcf for the report week. The East and West regions both noted net withdrawals for the week; however, storage operators in the Producing region reported the first regional net injection of the season of 14 Bcf. This net injection in the Producing region reduced the storage deficit compared with last year to 135 Bcf, down from 145 Bcf last week. With less than 3 weeks left in the current heating season (November 1-March 31), natural gas stocks in underground storage are on pace to finish the heating season above the 5-year average. If the remaining withdrawals equal the 5-year average withdrawals and injections for the remainder of the month, natural gas stocks would end the heating season at 1,557 Bcf, about 73 Bcf above the 5-year average.

Temperatures in the country were generally warmer than normal for the week ended March 11, with total heating degree-days falling short of normal levels by about 10 percent. Based on the National Weather Service’s degree-day data, temperatures in the United States were 2 degrees warmer than normal, but 3 degrees colder than last year. Four Census Divisions in the Northeast and the Midwest recorded average temperatures that were more than 5 degrees warmer than normal (see Temperature Maps and Data). The West South Central Census Division, which roughly coincides with EIA’s Producing Region, also experienced above-normal temperatures. Despite relatively warmer temperatures in the Northeast and the Midwest, these areas remained cold and registered the lowest temperatures in the country for the week ended March 11. Elsewhere in the United States, average temperatures ranged between 39 and 67 degrees.

Other Market Trends

EIA Highlights Differences between Projections and Actual Values in AEO. On March 16, EIA released its Annual Energy Outlook (AEO) Retrospective Review, which presents a comparison between projected data for all fuel types in the AEO reference case and the actual outcomes from 1982 to 2009. The report measured the average absolute percent difference, which is the simple mean of the absolute values of the percentage difference between the reference case projection and the actual value. The report concluded that consumption forecasts for most fuel types were often far more accurate than price forecasts, as consumption is relatively more stable compared with energy prices. However, the fuel with the largest difference between projections and actual consumption was natural gas, the result of difficulty in forecasting the effects of regulatory changes in the 1980s. Regarding other natural gas data, EIA’s forecasts were generally 57.6 percent off for wellhead prices; 7.1 percent for consumption; 6.2 percent for production; and 15.6 percent for net imports when the time frame between 1982 and 2009 is analyzed. EIA noted that expectations of technological improvement within the natural gas industry embedded in early editions of the AEO were somewhat conservative, further affecting the accuracy of forecasts. Additionally, despite the large difference between projected and actual wellhead prices from 1982-2009, the error has decreased over time. For example, the AEO had an absolute relative error for natural gas wellhead prices of 7.5 percent in 2006, no error in 2007, and 0.2 percent in 2008. In general, longer-term price forecasts were more inaccurate.

Shale Will Play a Greater Role in Natural Gas Production. Speaking on March 12 to Clean Skies News at the Cambridge Energy Research Associates energy conference (CERAWeek) in Houston, Texas, EIA Administrator Richard Newell discussed increasing prospects for natural gas production from shale formations, as well as the role of natural gas in power generation. Newell noted that shale gas production comprises an increasing percentage share of dry natural gas production, totaling 11 percent in 2009. Over the next 25 years, shale is expected to account for more than 25 percent of dry natural gas production. Newell noted that the electric power sector will contribute substantially to growth in natural gas consumption. Newell also discussed the role renewable energy sources will play in reducing greenhouse gas emissions. A video of Newell speaking is available here: http://www.eia.doe.gov/neic/press/video/video.html

Natural Gas Transportation Update

- Southeast Supply Header, LLC (SESH) has begun planned maintenance on several compressor units, reducing available capacity through associated stations on its system. On March 15, work began at the Lucedale Compressor Station in Mississippi. SESH’s capacity through the Lucedale station during maintenance will likely be approximately 870,000 decatherms (Dth) per day, compared with normal capacity of about 1,060,000 Dth per day. From March 18–20, maintenance will occur at the Gwinville Compressor Station, also in Mississippi, where capacity will be limited to 920,000 Dth per day. Lastly, maintenance at the Delhi Compressor Station in Louisiana between March 22 and 27 will limit capacity through the Delhi and Gwinville compressor stations to 800,000 Dth per day. Normal operating capacity through the Delhi and Gwinville stations is 1,020,000 and 1,060,000 Dth per day, respectively.

- Gulf South Pipeline Company LP began maintenance on Unit #3 at Marksville Compressor Station in Louisiana on Tuesday, March 16. According to the pipeline company, work is expected to last 30 days, likely reducing capacity through the station by 150,000 Dth per day. The pipeline company moved up the maintenance from an original start day of March 29.

- Rockies Express Pipeline LLC (REX) on Monday, March 15, informed shippers that it had completed repairs at its compressor station in Cheyenne, Wyoming, returning capacity to 1,900,000 Dth per day. The capacity of REX’s segment 200 in Wyoming had been reduced to 1,550,000 Dth per day on March 7 because of repairs on a transformer at the compressor station.

- Columbia Gas Transmission, LLC on March 16 began planned maintenance on its pipeline in Green County, Pennsylvania. The maintenance will reduce capacity at an interconnect between Columbia and Texas Eastern Transmission near Waynesburg, Pennsylvania. According to BENTEK Energy, flows for March 18 are 80 million cubic feet (MMcf), down 60 MMcf from the 30-day average of 140 MMcf. Maintenance is scheduled to run through April 14, but minimal impact is expected because of below-normal demand in the Northeast, BENTEK said.

Source: U.S. Energy Information Administration

India's Third LNG Terminal Commissioning Delay

India's third terminal to import LNG will miss by a year the target to commission its first phase in March because of delays in starting dredging to desilt the ship channel, a senior executive at its owner said.

Due to delays in getting government clearances and a shortage of equipment, the dredging contractor, Gammon India Ltd., had to postpone its work, the executive at Ratnagiri Gas & Power Pvt. Ltd. told Dow Jones Newswires, asking not to be identified.

The terminal to handle 5.0 million metric tons of LNG a year was initially planned by Enron Corp. to import LNG for a power plant it was setting up in the western state of Maharashtra. It was also planning to lease out excess capacity. After the U.S. company's collapse, Ratnagiri Gas & Power took over the projects in 2005.

The delay in opening the terminal isn't expected to have any major impact on gas supplies as the local market is well fed with Reliance Industries Ltd. increasing output at its gas field in the Krishna-Godavari basin off the east coast. Ratnagiri Gas & Power also gets gas from Reliance to run its 2,150-megawatt power plant.

Also, Petronet LNG Ltd., India's largest LNG importer, has raised capacity at its Dahej terminal in the west coast to 11.5 MMTPA from 6.5 MMTPA.

QGC, BOC sign deal to produce LNG from coal seam gas

This is a joint venture between the Queensland Gas Company and gas company BOC. This plant will provide LNG to create fuel for trucks.


Premier Anna Bligh said it could be the start of a new industry, leading to heavy transport switching from diesel to LNG.

"LNG produces up to 25 per cent fewer emissions than diesel and is a proven safe alternative to other fossil fuels,'' she said.

"Through this agreement, Queensland will join the rest of Australia, as BOC develops a network of fuelling stations across the country for vehicles converted to run on LNG.''
Ms Bligh said QCG has agreed to supply gas to BOC from July 2011 and if the companies meet that deadline, Queensland will become the first in Australia to produce LNG from coal seam gas.

The plant will be built next to the Condamine Power Station, west of Chinchilla, with construction expected to start early next year.

CNOOC to build new LNG terminal

CNOOC Ltd is in talks with the relevant government authorities regarding the construction of a new liquefied natural gas terminal, Song Enlai, a senior executive at CNOOC said. CNOOC operates three LNG terminals, one in Guangdong Province, one in Fujian Province and one in Shanghai. Its fourth terminal, located in Zhejiang Province, is still under construction.

(Source: China Knowledge Online)

Adriatic LNG terminal will be operational in 2014

Croatia's energy firms power board HEP, gas pipeline operator Plinacro and INA will change their participation structure in an Adriatic liquefied natural gas (LNG) terminal project to help make it operational in 2014.

Location: Northern Adriatic island of Krk

Capacity: 15 BCM

Target Market: Central and southeastern Europe and Italy

Investment Expected: 800 million euros

The government is expected to adopt a decision on establishing the Croatian LNG consortium soon.

At the moment, four foreign energy firms keen to take part in the project are part of the Adria LNG consortium. They include Germany's E.ON-Ruhrgas, Austria's OMV, France's Total and Geoplin from Slovenia.

Croatian firms should join later this year and have a 25-percent stake in the joint venture. INA can have 14 percent while Plinacro and HEP will jointly have 11 percent.

The LNG project has moved slowly in recent years, largely due to a slow decision-making process within Croatia, but the foreign investors are keen to speed it up because of a strong competition looming on the Italian side of the Adriatic.

Approval for Mid-Atlantic LNG Import Deal

A U.S. subsidiary of Moscow-based OAO Gazprom, the world’s largest gas producer, won federal approval today to import liquefied natural gas into the U.S. Mid-Atlantic region.

The Federal Energy Regulatory Commission voted in favor of a deal between Gazprom Marketing & Trading USA Inc. and a U.S. affiliate of Oslo-based Statoil ASA to import the gas through Dominion Resources Inc.’s LNG terminal in Cove Point, Maryland. As much as 200 million cubic feet of gas a day would be imported under the Dec. 1 deal.

Surat LNG pipeline

The State Government has approved the first licence for a gas pipeline from the Surat Basin to Gladstone in central Queensland.

Arrow Energy is planning to build an LNG facility on Curtis Island near Gladstone and hopes to start exporting in 2012.

The Government has approved a 470 km pipeline from Dalby which will cost about $550 million.

Arrow Energy spokesman Gareth Quinn says the company is also planning to build a pipeline from Moranbah to Gladstone.

Arrow Energy to acquire Gladstone LNG

Liquefied Natural Gas Limited (LNG) has executed a conditional heads of agreement with Arrow Energy Limited to sell the entire Fisherman's Landing liquefied natural gas project (Gladstone LNG Project) through the sale of LNG's 100% owned subsidiary Gladstone LNG Pty., Ltd. for a combination of cash, milestone payments, royalties and Arrow options. The total transaction is valued at approximately AUD45 million ($39.4 million). All the companies are based in Australia.

Arrow Energy is an integrated energy company focused on the development of coal seam gas. LNG is engaged in the production and sale of liquefied natural gas in Australia.

The consideration will consist of $10 million licensing fee for Arrow's use of LNG's OSMR(R) technology for the first LNG train, with $5 million to be paid by Arrow to LNG Ltd by February 28, 2010 and a further $5 million payable at notice of readiness to proceed to construction of the first LNG train. An additional $10 million license fee is payable for each additional LNG train developed at the project site using the OSMR(R) technology.

Deal Value (US$ Million) 39.4

Deal Type                Acquisition

Sub-Category             100% Acquisition

Deal Status              Announced: 2010-02-11

Deal Participants

Target (Company)   Gladstone LNG Pty., Ltd.

Acquirer (Company) Arrow Energy Limited

Vendor (Company)   Liquefied Natural Gas Limited

First LNG Distribution Terminal in the Dominican Republic

AES Dominicana has inaugurated a LNG distribution terminal east of Santo Domingo, the first facility of its type in the Dominican Republic and Latin America. The LNG terminal will yield annual savings of more than $1 Bn, AES Dominicana officials said.

The terminal will allow the Dominican Republic to “significantly” reduce its high dependence on petroleum, AES Dominicana chief Marco De la Rosa said.

The LNG terminal, among other benefits, will allow the Dominican Republic to replace 35 percent of its fuel mix, create around 300 new direct and indirect jobs, and reduce emissions of CO2, the gas believed to contribute to global warming, by more than 300 tons annually.

The use of LNG “will help achieve total savings on the order of $1.1 billion annually, representing a sum relative to 2.5 percent of the gross domestic product,” the AES Dominicana chief said.

US Coast Guard clears Yemen LNG shipments

LNG shipments from Yemen have been cleared by the US Coast Guard for entry into the Distrigas terminal in Everett outside Boston, in the face of local opposition.

BW Gas and Höegh LNG ships chartered by Distrigas owner GDF Suez would begin calling from Yemen from the end of February. Distrigas has signed a 20-year contract with a Yemeni supplier and expects to bring in up to 30 shipments a year to its Everett facility. The imminent delivery would be only the second from Yemen to the United States. A tanker carrying Yemeni LNG arrived earlier this week in less-populous Sabine, Texas, according to John Healey, Coast Guard captain of the port of Boston, who said the Coast Guard spent a year reviewing security plans for the Yemeni shipments.

LNG Project in in central Queensland, Australia

 Australia Pacific LNG is one step closer to making the liquefied natural gas industry in central Queensland a reality, with the lodgement of its draft environmental impact statement (EIS) with the State Government.

The EIS covers the project's gas fields, a 450 km gas transmission pipeline and an LNG plant on Curtis Island in Gladstone.

Joint venture partner Origin Energy says it is a significant milestone for the project.

Origin's executive general manager, Paul Zealand, says the final investment decision for the project is expected by December this year, with the first gas to be exported in late 2014.

LNG offloading terminals in Orlovka bay, Gazprom

 Shtokman LNG offloading terminals will be located in Orlovka Bay as it was decided at Gazprom meeting. Alexey Miller, Chairman of the Gazprom Management Committee held a meeting on the Shtokman gas and condensate field development.

The meeting was attended by heads and experts from the Gazprom Administration subdivisions, subsidiaries, corporate research and design institutes and Shtokman Development AG, reads the press release of Gazprom.

The meeting discussed Shtokman project progress focusing on technology optimization within first phase of the Shtokman development. The idea is to raise the economic efficiency and to assure navigation safety of heavy-duty LNG carriers.

Based on the meeting results the decision was taken to position LNG offloading terminals in the northern part of the Orlovka Bay (Murmansk region, eastwards from Teriberka). The project operator will rely on this decision when planning its further activities.

Total may invest in new LNG project

Total could invest in a liquefied natural gas (LNG) plant project led by EDF in Dunkirk to offset possible job losses if the refiner decides next week to close a refinery in the same town, an industry source said.

Oil giant Total is considering permanently shutting its 137,000 barrels-per-day Dunkirk refinery in northern France, or a 13 percent share of the group's French output capacity, which could result in some 600 job losses, a source close to the situation said earlier this month.

Total is expected to make the announcement on the possible closure after an extraordinary meeting with unions on Feb. 1.

The French government has pressured Total to find an alternative industrial project to compensate for the possible job losses, three months before key regional elections.

EDF, which is planning to make a final investment decision on the Dunkirk LNG plant in the next six months, said at the end of 2009 that it was looking for financial partners for half of the 700-million euro investment.

The plant is expected to start running in 2014 and produce some 13 BCM of gas.

BPMigas rejects LNG project plan for Sengkang LNG project

Upstream oil and gas regulator BPMigas has rejected a plan of development (POD) for a liquefied natural gas (LNG) project proposed by Energy Equity Epic Sengkang, a subsidiary of Australia-based Energy World Corporation (EWC), on the grounds that the proposal is incomplete.

“The POD is not backed up with valid data. How can we approve the POD if we don’t even know

the reserve data?” BPMigas’s chairman, R. Priyono, told. Priyono said BPMigas rejected Energy Sengkang’s work program and budget (WPNB) for development of new gas reserves in the block.

“We cannot approve their WPNB for drilling activities, because they don’t follow the SOP [standard operating procedures]. It’s strange they want to drill without an initial seismic survey,” Priyono said.

EWC’s executive director Brian Allen said during a hearing with the House of Representatives Commission VII overseeing energy and mineral resources on Monday that the new reserves would be able to provide between 300 billion cubic feet (BCF) and 500 BCF of gas for the LNG plant

He said the proposed LNG development would cost EWC about US$500 million in investment.

To facilitate the financing and funding for the LNG project, part of the LNG would be exported.

Energy Sengkang is one of 232 oil and gas contractors operating in Indonesia. Based on their proposed work programs and budgets for 2010, the contractors plan to spend nearly US$16 billion in upstream activities in this coming year.

Origin seeks environmental nod for $31.3 Bn LNG project

Origin Energy said it had sought formal environmental clearance for its gas export project with U.S. ConocoPhillips.

Origin, the country's largest producer of coal seam gas, said the lodging of the draft environmental statement with the Queensland state government advances the $31.3 billion project towards a final investment decision by December this year and first LNG shipments by late 2014.

While the lodging of the environmental statement is a key project milestone, investors are still looking for firm gas sales before validating the project, analysts say. There are four other projects racing to start exporting Australian coal seam gas and the Origin/Conoco development is seen by some analysts as a falling behind the rivals as it was yet to lock in any gas sales.

Origin's project, also known as Australia Pacific LNG, will produce between 3.5-4 million tonnes per year (mtpy) of LNG in the first phase in 2014, before progressively expanding up to 14-16 mtpy.