Prime Petroservices to build mini LNG plant worth $327m
Integrated oil and gas service provider PT Prime Petroservices (PPS) plans to build a small liquefied natural gas (LNG) plant in Bali this year with a total investment of US$327 million. PPS, through its subsidiary PT Indogas Kriya Dwiguna, will build the plant, with a capacity of 300,000 tons per year, on Pagerungan Island, north of Bali, the company's president director, Faiz Shahab, told. In comparison, an existing LNG plant in Bontang, East Kalimantan, has a capacity of 18.5 million tons per year, while another in Arun, Nangroe Aceh Darussalam, outputs 12.5 million tons annually.
UK's BG makes hostile $13.1 bln Origin bid
British gas producer BG Group launched a hostile $13.1 billion bid for Australia's Origin Energy, as it seeks to boost its position in Asia-Pacific's fast-growing gas market. BG is taking its A$13.8 billion all-cash bid, valuing Origin at A$15.50 a share, direct to Origin shareholders after Origin's board rejected it last month. Origin claimed then that its coal seam gas reserves alone were worth over $15 billion after it doubled its resource estimate to 10,000 petajoules. BG, U.K.'s third-largest oil and natural gas producer, wants Origin's vast gas resources in Australia to feed a proposed liquefied natural gas (LNG) project on the east coast, which would help BG fill a hole in its LNG business in the region.
Five planned LNG terminals in Italy move forward
Italy's privately-held Anonima Petroli Italiana SPA, Rome, applied for approval from the country's Environment Ministry for an offshore regasification terminal with an capacity of about 4 billion cu m/year. The facility will be located in the Adriatic Sea in front of Anonima Petroli's Falconara refinery. After converting the LNG, the company will inject the gas into Snam Rete Gas SPA's grid. Construction will take just over 5 months. The news coincided with reports that Gas Natural could win environmental clearance for an 8 billion cu m regasification terminal it wants to develop at Trieste in northern Italy. An official at the environment ministry confirmed that Gas Natural's LNG facility had received positive opinions from a series of subcommittees at the ministry, and it said the project could be approved or a series of observations on the plans could be made. Earlier this month, Iride SPA and CIR SPA's unit Sorgenia SPA said their planned 12 billion cu m regasification terminal at Gioia Tauro, which won environmental approval in April, has been granted access to European Union funding. The Gioia Tauro terminal is due to go online in 2013. In early May, Royal Dutch Shell and Italy's ERG received local authorization to build their planned joint Ionio LNG import terminal in Sicily. The partners hope to begin construction of the import terminal in 2010 and to have it operational by 2013, according to ERG's power and gas division head Raffaele Tognacca. Later in May, following a feasibility study completed early this year on its Triton LNG project 30 km off Italy's Marches region in the Adriatic Sea, Gaz de France signed a joint development agreement with Oslo-based Hoegh LNG for the design, construction, and operation of a floating storage and regasification unit vessel.
Hearing set on offshore LNG terminal After suffering a series of setbacks since receiving conditional federal approval three years ago to build a liquefied natural gas terminal in Fall River, Weaver’s Cove Energy came back this year with an alternative proposal. It would float an off-loading facility in the middle of Mount Hope Bay. Under the new plan, Weaver’s Cove would situate the 1,200-foot berth in Somerset waters, about a mile from the nearest shore. Tankers would dock at the facility and unload LNG, which would be piped to a re-gasification plant at the site in Fall River’s west end originally targeted for the company’s $250-million marine terminal. The 4-mile pipeline connecting to the re-gasification facility would be buried in a trench at the bottom of Mount Hope Bay and the Taunton River. Weaver’s Cove came up with the new plan after failing to win approval for key aspects of its initial proposal. In August 2007, the Rhode Island Department of Environmental Management denied an application to dredge a portion of Mount Hope Bay to clear the way for tanker ships that would travel north from Narragansett Bay.
CNOOC's parent inks 25-year LNG supply pact with Qatargas China National Offshore Oil Corp (CNOOC Group), parent of Hong Kong-listed CNOOC Ltd, said it has signed a 25-year liquefied natural gas (LNG) supply agreement with Qatargas Operating Co. According to the agreement, the operator of the country's first liquefied natural gas terminal will buy two million metric tons of LNG a year from Qatargas, which will be transported to CNOOC's projected reception station in Ningbo, Zhejiang Province, according to sources familiar with the deal. The agreement is a continuation of the unbinding one signed by the two sides in April. In addition, the state-owned oil producer has formed an LNG supply agreement with Total SA, under which the French LNG producer will supply as much as one million metric tons of LNG per year to CNOOC Group from 2010.
BG to supply LNG volumes to Castle Peak's planned Hong Kong terminal
UK-based BG Group's wholly owned subsidiary BG LNG Trading has signed a liquefied natural gas heads of agreement with the Castle Peak Power Company, to supply one million tonnes per annum to the latter's planned import terminal in Hong Kong for a period of up to 20 years.
BG Group And CAPCO Sign Pact For LNG Supply
BG Group has announced that its wholly owned subsidiary BG LNG Trading has signed a Liquefied Natural Gas Heads of Agreement with Castle Peak Power Company, Hong Kong.
Under the proposed arrangement, BGLT have agreed to supply one million tonnes per annum to CAPCO's planned LNG import terminal in Hong Kong for a period of up to 20 years, it said.
Initial deliveries are expected to begin in 2013 to coincide with the completion of the LNG terminal on South Soko Island. The LNG will be sourced from BG Group's growing and flexible global portfolio.
LNG may turn more expensive than crude oil, says Bernstein
Liquefied natural gas may become more expensive than crude oil as demand from Asia and Europe rises faster than supply, Sanford C Bernstein & Co said.
“It’s clear that LNG prices overall are set to rise towards parity with the oil price,” Bernstein analysts led by Neil McMahon said in a report. Sellers of the fuel are renegotiating contracts to increase prices, it said.
Prices may decline in 2009 and early 2010. After this, limited new supplies of LNG between 2010 and 2015 will make market conditions “very tight,” raising the potential of “an LNG premium above the oil price,” the report added.
LNG cargoes have sold for as much as US$20 amn cubic feet this year, Sanford said. Crude oil futures at today’s price of US$136 a barrel are the equivalent of about US$22 amn cubic feet, based on the energy content of the fuels.
The growth of import terminals will outpace the rise in LNG supplies to a point where global regasificaton plant capacity is more than double LNG production by the end of 2010, Bernstein said. Some planned LNG production projects in Nigeria, Australia and Iran will get pushed back into the second half of the next decade, Bernstein added.
Limited growth in alternative energy sources and long lead times for new nuclear power stations will mean demand for LNG grows at more than 10% a year, the report said.
Qatar, already the world’s biggest LNG producer, will boost LNG supplies by 45 million tons a year with six new production trains due to start before the end of 2010.
BG Group, the UK’s third-largest oil and gas company, will benefit the most from rising LNG prices. Bernstein estimates BG is diverting as much as 60% of its cargoes to Asia and 25% to Europe, raising its forecast for BG to 'outperform'.
Integrated oil and gas service provider PT Prime Petroservices (PPS) plans to build a small liquefied natural gas (LNG) plant in Bali this year with a total investment of US$327 million. PPS, through its subsidiary PT Indogas Kriya Dwiguna, will build the plant, with a capacity of 300,000 tons per year, on Pagerungan Island, north of Bali, the company's president director, Faiz Shahab, told. In comparison, an existing LNG plant in Bontang, East Kalimantan, has a capacity of 18.5 million tons per year, while another in Arun, Nangroe Aceh Darussalam, outputs 12.5 million tons annually.
UK's BG makes hostile $13.1 bln Origin bid
British gas producer BG Group launched a hostile $13.1 billion bid for Australia's Origin Energy, as it seeks to boost its position in Asia-Pacific's fast-growing gas market. BG is taking its A$13.8 billion all-cash bid, valuing Origin at A$15.50 a share, direct to Origin shareholders after Origin's board rejected it last month. Origin claimed then that its coal seam gas reserves alone were worth over $15 billion after it doubled its resource estimate to 10,000 petajoules. BG, U.K.'s third-largest oil and natural gas producer, wants Origin's vast gas resources in Australia to feed a proposed liquefied natural gas (LNG) project on the east coast, which would help BG fill a hole in its LNG business in the region.
Five planned LNG terminals in Italy move forward
Italy's privately-held Anonima Petroli Italiana SPA, Rome, applied for approval from the country's Environment Ministry for an offshore regasification terminal with an capacity of about 4 billion cu m/year. The facility will be located in the Adriatic Sea in front of Anonima Petroli's Falconara refinery. After converting the LNG, the company will inject the gas into Snam Rete Gas SPA's grid. Construction will take just over 5 months. The news coincided with reports that Gas Natural could win environmental clearance for an 8 billion cu m regasification terminal it wants to develop at Trieste in northern Italy. An official at the environment ministry confirmed that Gas Natural's LNG facility had received positive opinions from a series of subcommittees at the ministry, and it said the project could be approved or a series of observations on the plans could be made. Earlier this month, Iride SPA and CIR SPA's unit Sorgenia SPA said their planned 12 billion cu m regasification terminal at Gioia Tauro, which won environmental approval in April, has been granted access to European Union funding. The Gioia Tauro terminal is due to go online in 2013. In early May, Royal Dutch Shell and Italy's ERG received local authorization to build their planned joint Ionio LNG import terminal in Sicily. The partners hope to begin construction of the import terminal in 2010 and to have it operational by 2013, according to ERG's power and gas division head Raffaele Tognacca. Later in May, following a feasibility study completed early this year on its Triton LNG project 30 km off Italy's Marches region in the Adriatic Sea, Gaz de France signed a joint development agreement with Oslo-based Hoegh LNG for the design, construction, and operation of a floating storage and regasification unit vessel.
Hearing set on offshore LNG terminal After suffering a series of setbacks since receiving conditional federal approval three years ago to build a liquefied natural gas terminal in Fall River, Weaver’s Cove Energy came back this year with an alternative proposal. It would float an off-loading facility in the middle of Mount Hope Bay. Under the new plan, Weaver’s Cove would situate the 1,200-foot berth in Somerset waters, about a mile from the nearest shore. Tankers would dock at the facility and unload LNG, which would be piped to a re-gasification plant at the site in Fall River’s west end originally targeted for the company’s $250-million marine terminal. The 4-mile pipeline connecting to the re-gasification facility would be buried in a trench at the bottom of Mount Hope Bay and the Taunton River. Weaver’s Cove came up with the new plan after failing to win approval for key aspects of its initial proposal. In August 2007, the Rhode Island Department of Environmental Management denied an application to dredge a portion of Mount Hope Bay to clear the way for tanker ships that would travel north from Narragansett Bay.
CNOOC's parent inks 25-year LNG supply pact with Qatargas China National Offshore Oil Corp (CNOOC Group), parent of Hong Kong-listed CNOOC Ltd, said it has signed a 25-year liquefied natural gas (LNG) supply agreement with Qatargas Operating Co. According to the agreement, the operator of the country's first liquefied natural gas terminal will buy two million metric tons of LNG a year from Qatargas, which will be transported to CNOOC's projected reception station in Ningbo, Zhejiang Province, according to sources familiar with the deal. The agreement is a continuation of the unbinding one signed by the two sides in April. In addition, the state-owned oil producer has formed an LNG supply agreement with Total SA, under which the French LNG producer will supply as much as one million metric tons of LNG per year to CNOOC Group from 2010.
BG to supply LNG volumes to Castle Peak's planned Hong Kong terminal
UK-based BG Group's wholly owned subsidiary BG LNG Trading has signed a liquefied natural gas heads of agreement with the Castle Peak Power Company, to supply one million tonnes per annum to the latter's planned import terminal in Hong Kong for a period of up to 20 years.
BG Group And CAPCO Sign Pact For LNG Supply
BG Group has announced that its wholly owned subsidiary BG LNG Trading has signed a Liquefied Natural Gas Heads of Agreement with Castle Peak Power Company, Hong Kong.
Under the proposed arrangement, BGLT have agreed to supply one million tonnes per annum to CAPCO's planned LNG import terminal in Hong Kong for a period of up to 20 years, it said.
Initial deliveries are expected to begin in 2013 to coincide with the completion of the LNG terminal on South Soko Island. The LNG will be sourced from BG Group's growing and flexible global portfolio.
LNG may turn more expensive than crude oil, says Bernstein
Liquefied natural gas may become more expensive than crude oil as demand from Asia and Europe rises faster than supply, Sanford C Bernstein & Co said.
“It’s clear that LNG prices overall are set to rise towards parity with the oil price,” Bernstein analysts led by Neil McMahon said in a report. Sellers of the fuel are renegotiating contracts to increase prices, it said.
Prices may decline in 2009 and early 2010. After this, limited new supplies of LNG between 2010 and 2015 will make market conditions “very tight,” raising the potential of “an LNG premium above the oil price,” the report added.
LNG cargoes have sold for as much as US$20 amn cubic feet this year, Sanford said. Crude oil futures at today’s price of US$136 a barrel are the equivalent of about US$22 amn cubic feet, based on the energy content of the fuels.
The growth of import terminals will outpace the rise in LNG supplies to a point where global regasificaton plant capacity is more than double LNG production by the end of 2010, Bernstein said. Some planned LNG production projects in Nigeria, Australia and Iran will get pushed back into the second half of the next decade, Bernstein added.
Limited growth in alternative energy sources and long lead times for new nuclear power stations will mean demand for LNG grows at more than 10% a year, the report said.
Qatar, already the world’s biggest LNG producer, will boost LNG supplies by 45 million tons a year with six new production trains due to start before the end of 2010.
BG Group, the UK’s third-largest oil and gas company, will benefit the most from rising LNG prices. Bernstein estimates BG is diverting as much as 60% of its cargoes to Asia and 25% to Europe, raising its forecast for BG to 'outperform'.
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