PHILIPPINES: Manila allows continued operation of Pandacan oil depots

(EnergyAsia, May 27, Wednesday) — In the latest twist involving the court-ordered closure of the Pandacan oil depots in Manila, city authorities have decided to allow oil majors Chevron, Petron and Shell to continue using the depots. The decision by Manila’s city council contradicted an earlier ordinance that had called for the depots’ closure on…

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INDIA: Reliance to merge operations of petroleum and industry units

(EnergyAsia, May 27, Wednesday) — India’s Reliance Industries Ltd (RIL) plans to merge its businesses with subsidiary Reliance Petroleum (RPL) by buying over all its shares. To implement the transaction, RIL will issue almost 70 million of its share to RPL shareholders. Following the deal RIL will have 3.7 million shareholders while its equity capital…

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CHINA: Platts says China’s April oil demand rose for the first time in six months

(EnergyAsia, May 27, Wednesday) — China consumed 31.47 million metric tons of oil in April, up a strong 4% from the corresponding month of 2008, said energy media group Platts in an analysis of official data. The data means Chinese demand showed its first year-on-year increase in six months last month. The country’s apparent oil…

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CHINA: Platts says China’s April oil demand rose for the first time in six months

(EnergyAsia, May 27, Wednesday) — China consumed 31.47 million metric tons of oil in April, up a strong 4% from the corresponding month of 2008, said energy media group Platts in an analysis of official data. The data means Chinese demand showed its first year-on-year increase in six months last month. The country’s apparent oil…

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MARKETS: Consultant Douglas-Westwood says ‘peak oil’ not speculation responsible for volatility

(EnergyAsia, May 27, Wednesday) — This is an edited version of a commentary by Steven Kopits, managing director of energy consultant Douglas-Westwood in New York. In seeking to explain the run-up in oil prices from 2004 to 2008, commentators often turn to ‘speculation’ as the primary cause. While speculation — or at least a kind…

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MALAYSIA: OGA 2009 event to showcase RM100 billion worth of technology and products

(EnergyAsia, May 27, Wednesday) — The ‘12th Asian Oil, Gas and Petrochemical Exhibition (OGA) 2009’ will be held in Kuala Lumpur Convention Centre in Malaysia from June 10 to 12.

Organisers Malaysian Exhibition Services said the event – the largest in the OGA series – has attracted more than 1,000 participating companies and will showcase over RM100 billion worth of technology and products. (US$1=RM3.5).

The exhibition will display the latest technology in the fields of exploration, production and transportation as well as marine equipment, offshore well equipment, sub-sea technologies and reservoir evaluation.

Fully supported by the government of Malaysia, SIRIM and the Malaysia External Trade Development Corporation (MATRADE), OGA 09 is targeted to attract over 20,000 visitors.

Key exhibitors include Aker Solutions, Cameron, Delcom, ExxonMobil, Global Process Systems, M3nergy, Neural Oilfield, Olio Resources, SapuraCrest, Scomi, Shell, Siemens, Sime Darby, Tanjung Offshore, Technip, UMW Oil and Gas, and Weatherford.

Malaysian Exhibition Services general manager Alun Jones said:  “According to Bank Negara, the Malaysian economy is expected to perform better in the second half of 2009 as the fiscal stimulus packages announced by the government are implemented and the effects of the supportive monetary environment kick in.

“Thus OGA 09 offers exhibitors and trade investors opportunities for establishing new partnerships and significantly enhancing their business.

“It is an excellent platform for those in the industry to update themselves on the technological front as it will showcase a comprehensive range of exhibits, including a wide spectrum of the latest innovations, precision engineering tools and equipment, as well as the latest technological advancements in the business.”

The ‘Subsea Asia Conference’ will be held concurrently with OGA 2009 on June 11. Speakers at the conference include experts from Perry Slingsby, First Subsea, Framo Engineering, NCS Survey, Deep Ocean Subsea Control Innovation and Flexlife.

For more information on OGA 2009, please contact Admin@EnergyAsia.com.

SINGAPORE: CWC’s LNG conference to be held on June 29 to July 1

(EnergyAsia, May 27, Wednesday) — CWC Group will be holding the ‘Next Generation LNG – Asia Pacific’ conference at the Pan Pacific Hotel in Singapore from June 29 to July 1.
LNG Asia aims to provide a platform for participants to network and develop relationships with key LNG players from the region and around the world.

Endorsed by the Energy Market Authority (EMA) and International Enterprise Singapore (IE), the event will examine global LNG trading, pricing, innovation, supply and demand with a focus on Asia.

Singapore’s Senior Minister of State for Trade and Industry, S Iswaran, will deliver his address on Asia and Singapore’s role in the next generation of the LNG industry.

Topics to be covered by the event’s experts include the future of the LNG industry, evolution and innovation in LNG, and creating a global trade in LNG. Other topics addressed include regional and global collaboration, the global fuel mix, new suppliers of LNG, new markets and trade flows, and pricing indexes.

Speakers at the event include Alirio Parra (CWC Group Limited), Dan Werner (BG Group), Hiroshi Hashimoto (International Energy Authority), Juan I Pareja (ConocoPhillips International), Prosad Dasgupta (Petronet LNG Ltd), Atsunori Takeuchi (Tokyo Gas Co Ltd), Fabiya Amakiri (NNPC), Hiroki Sato (Chubu Electric Power Co Inc), Mike Mellor (North West Shelf Australia LNG PTY Ltd), Simon Bonini (Centrica Energy), David Fuller (RWE Supply and Trading GMBH), Dominique Pelloux-Prayer (GDF Suez), Maurice Brand (Liquefied Natural Gas Limited), Keun-Wook Paik (Oxford Institute of Energy), Xia Yishan (Research Centre of China Institute of International Studies), Igor Tomberg (Moscow State Institute of International Relations), Masumi Motomura (Japan Oil, Gas and Metals National Corporation), Philip R Weems (King & Spalding),  Abdul Hadi Al-Hassani (Iraqi Parliament), Serapio Ntutumu (Sonagas), Douglas Rotenberg (BP), Ane Ariño Ochoa (Repsol Gas Natural LNG), Wuttikorn Stithi (PTT), Mohammed S Alrai (Oregon LNG), Xue Bo (Guangdong Dapeng LNG Company Ltd), Rodrigo Carvalho Nogueira Vilanova (Petrobras), John Fahy (ERAS Consulting Ltd), Yao Tongxin (China Power Petrochemical Corporation), Eiichi Sasaki (Japan Bank for International Cooperation), Mike Sinclair (GS Caltex Corporation), and Rod Duke (Energy Market Authority).

For more information on ‘Next Generation LNG – Asia Pacific’, please contact Admin@EnergyAsia.com.

MARKETS: Newedge comments on ‘new twist’ in OPEC politics

(EnergyAsia, May 27, Wednesday) — OPEC is quietly undergoing a shift ahead of the group’s ministerial meeting next week as members move from an outward, big-picture focus on global market conditions and group production targets to internal potentially divisive issues as bean-counting methodology for assessing member country production and the internal allocation of quotas, said…

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SINGAPORE: JTC halts tender to select operator for storage cavern

(EnergyAsia, May 26, Tuesday) — Singapore has called off a much anticipated tender to appoint an operator for its proposed underground oil and petrochemicals storage cavern project on Jurong Island. The decision by state land agency JTC Corp came on the heels of reports that oil and petrochemical firms operating on Jurong Island are delaying…

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CHINA: PetroChina boosts oil product storage capacity

(EnergyAsia, May 26, Tuesday) — PetroChina said it has increased its storage capacity for refined oil products in the country’s northwest by 360% over the past four years. The company raised its storage capacity in the region to 1.7 million cubic metres at end of 2008, up from less than 380,000 cubic metres in 2005….

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MARKETS: IEA’s latest forecast shows world oil demand to fall by 2.9% this year

(EnergyAsia, May 26, Tuesday) — For the ninth consecutive month, the International Energy Agency (IEA) has reduced its forecast for world oil demand this year by 200,000 b/d to 83.2 million b/d. The latest forecast is based on expectations for the world GDP to shrink 1.4% this year, with no recovery seen until well into…

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CHINA: Brazil’s Petrobras obtain $10-billion credit line from China Development Bank (CDB)

(EnergyAsia, May 26, Tuesday) — Petrobras, Brazil’s state oil and gas giant, said it could be in line for more credit from China Development Bank (CDB) after concluding a loan deal with the bank for US$10 billion for 10 years. Petrobras said the loan will be used to finance its massive $174.4 billion plan to…

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CHINA: Sinopec plans refinery in Guangxi

(EnergyAsia, May 26, Tuesday) — The Sinopec Group wants to build a refinery and an associated crude oil storage terminal in China’s southern Guangxi province. The company, which ranks as Asia’s largest refiner, has submitted plans to build the unit at Beihai on the Gulf of Tonkin. The capacity of the refinery was not disclosed…

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CHINA: PetroChina to issue RMB100 billion in debt to finance key projects

(EnergyAsia, May 26, Tuesday) — PetroChina plans to raise RMB100 billion in new debt to help finance key projects. (US$1=RMB6.82). The money will go towards mostly spending on exploration, refining and infrastructure projects abroad. The company, which just announced a US$1 billion acquisition of a 45.5% stake in Singapore Petroleum Company, is also targeting projects…

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MALAYSIA: Petronas, MISC and Mustang form JV to develop and provide floating LNG services

(EnergyAsia, May 26, Tuesday) — Petronas International Corporation Ltd (PICL), a wholly owned subsidiary of Malaysia’s state oil and gas firm Petronas, has signed an agreement with Malaysian shipping giant MISC Bhd and UK’s Mustang Engineering Ltd to form a joint-venture company to provide floating liquefied natural gas (LNG) engineering solutions and services worldwide. The…

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CHINA: Law firm Herbert Smith advised Huaneng Power on power plant acquisitions

(EnergyAsia, May 26, Tuesday) — International law firm Herbert Smith said it advised Huaneng Power International, one of the largest listed power producers in China, on the acquisition of a stake in two power companies from its parent companies at a total cost of RMB2.348 billion. (US$1=RMB6.83). The transfer agreements for Huaneng Group and Huaneng…

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CHINA: PetroChina to pay S$1.47 billion in cash for 45.51% stake in Singapore Petroleum Company

(EnergyAsia, May 25, Monday) — PetroChina is raising its exposure in Singapore with the proposed cash acquisition of a 45.51% stake in Singapore Petroleum Company for S$1.47 billion. (US$1=S$1.45).

PetroChina, which already owns a 35% stake in Singapore storage firm Universal Terminal, will acquire the SPC shares from Keppel Oil and Gas Services Pte Ltd, a wholly-owned subsidiary of Singapore’s Keppel Corporation Limited, at an average price of S$6.25 per share.

The acquisition will be undertaken by PetroChina International (Singapore) Pte Ltd, an indirectly wholly-owned subsidiary of PetroChina Company Limited. The deal is conditional upon the purchaser obtaining the required approvals from the relevant authorities in Singapore and China.

Choo Chiau Beng, CEO of Keppel, said: “Over the last 10 years, Keppel has grown SPC, establishing it as a reliable supplier of quality energy products while diversifying its businesses upstream into exploration and production.

“This divestment of our stake in SPC would enable Keppel to seize opportunities that would enhance value creation for shareholders.”

PetroChina said: “After PetroChina International (Singapore) Pte. Ltd. purchases the stake in SPC, SPC will become a new platform for the implementation of our international strategy and will provide a broader foundation and stable path for development.”

The two companies said they plan to jointly explore opportunities in the offshore oil industry and in other areas of mutual benefit.

PetroChina, one of the largest oil and gas companies in the world, is engaged in a broad range of oil and natural gas activities including the exploration, development, production and marketing of crude oil and natural gas, refining, transportation, storage and marketing of crude oil and oil products, production and marketing of primary petrochemical products, derivative chemical products and other chemical products, and transportation of natural gas, crude oil and refined products.

SOUTH KOREA: Crude oil storage capacity to rise 30% to 146 million barrels next year

(EnergyAsia, May 25, Monday) — The South Korean government and international oil companies could be stockpiling as much as 40 million barrels of crude oil in the country by next year. A national stockpiling programme operated by state Korea National Oil Corp (KNOC) has attracted the participation of France’s Total, Norway’s Statoil, China’s Unipec and…

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MARKETS: IEA warns cancelled projects setting stage for future oil price surges

(EnergyAsia, May 25, Monday) — The stage is being set for a sharp rebound in oil prices as energy demand in China and India continues to grow rapidly while oil companies are further reducing investments after having cancelled at least $170 billion worth of projects to boost supply, said the International Energy Agency (IEA). In…

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CHINA: Herbert Smith advised CNOOC on LNG and CBM deal with BG Group

(EnergyAsia, May 25, Monday) — International law firm Herbert Smith said it advised China National Offshore Oil Corporation (CNOOC) and its affiliates on a project development agreement with the UK’s BG Group pertaining to the sale of liquefied natural gas (LNG) from the Queensland Curtis coal bed methane LNG Project in Australia (QCLNG). BG Group…

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WORLD: Financial crisis sinks efforts to stave off threats facing developing world

(EnergyAsia, May 25, Monday) — The world will not achieve most of the eight agreed Millennium Development Goals (MDGs) goals to combat hunger, child and maternal mortality, education, and the spread of HIV/AIDS, malaria and other major diseases by 2015, said a joint IMF-World Bank study. The global financial crisis has added to the burden…

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SINGAPORE: Chemoil reports 283% rise in net profits for first quarter of 2009

(EnergyAsia, May 25, Monday) — Singapore-listed marine fuels trader Chemoil said its first quarter net profit rose 283% year-on-year to US$8.8 million. Amid the global economic slowdown, ship owners have increasingly turned to direct physical suppliers, helping to boost the company’s profitability and retail sales by 16% to 2.17 million metric tons for the quarter….

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MARKETS: IEA expects energy use by new electronic devices to triple by 2030

(EnergyAsia, May 25, Monday) — The explosive growth in global energy consumption by new electronic devices such as PCs, laptops, iPods, cell phones and home appliances is offsetting energy efficiency gains, said the International Energy Agency (IEA). The IEA’s latest study, , Gadgets and Gigawatts, found that over the next seven months, the number of…

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AUSTRALIA: Origin Energy confirms Pangaea CSG acquisition to boost domestic gas supply portfolio

(EnergyAsia, May 25, Monday) — Australia’s Origin Energy Limited said it will acquire the entire exploration permit ATP 788P, boosting its coal seam gas (CSG) reserves by 1,150 peta joules. This follows the announcement by competitor Australia Pacific LNG Pty Ltd that it will not exercise its option to acquire the interest. The permit is…

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COMPANY: Total Lubmarine develops biodegradable lubricants range for shipping

(EnergyAsia, May 22, Friday) — Leading international marine lubricants supplier Total Lubmarine said it has developed a comprehensive range of high-performance biodegradable products which will enable companies in the shipping industry to significantly improve their environmental footprint without compromising either performance or safety.

After extensive testing over a period of years at its dedicated research centre, Total Lubmarine said it is now able to offer a full range of biodegradable products, comprising Carter Bio, a high-gear performance lubricant, Biohydran TMP, a high-quality hydraulic lubricant, and Biomultis SEP 2, an extreme-pressure multipurpose grease.

Total Lubmarine said its products are not only biodegradable but also equal in terms of its performance capabilities to a mineral-based oil product.

Patrick Havil, marketing manager of Lubmarine, said: “Lubmarine has always been acutely aware of its responsibility to protect the environment, and committed to developing the best biodegradable marine lubricants on the market. These are now available for use by the shipping industry.

“The commercial incentives to use such lubricants are now greater than ever, and include the possibility of reduced fees for ‘green’ ships in certain ports, and the requirement on the part of certain port authorities for ships to operate within the terms of a zero spill policy.

“The moral obligations are very persuasive. More ship operators are becoming aware of the importance of the environment and of the need to protect it. This enlightened awareness is evident throughout all industries, including shipping, where operators are increasingly concerned about their environmental footprint within the terms of their sustainable energy policies.

“It is simply not possible to guarantee a zero-risk of spillage with regard to onboard operations. The potential for lubricant leakage on board ship is high. It exists across so many traditional shipping-related activities involving everything from engine operation to thruster and stern-tube performance, from cranes to winches to pumps.

“Such leaks can occur for a variety of reasons, from mechanical failure to human error. So, since it is not feasible to eliminate mechanical failure and human error entirely, the only way to limit the harmful and damaging effect of oil spillages at sea is to use biodegradable lubricants.

“More and more companies are keen to use biodegradable lubricants because they are not toxic, like other products, but those same companies are not ready to accept any compromise in terms of performance. Manufacturing new biodegradable lubricants which do not affect performance, however, is not a straightforward undertaking.

“The main raw material used to produce such products, base oil, has to be changed, and all the properties introduced by mineral-based oils such as high oxidation resistance and thermal stability are not present in the chemical compounds found in biodegradable oil.

“This means that, for a biodegradable product to perform as effectively and efficiently as a mineral oil-based product, its formulation has to be completely redeveloped.

“Now, following extensive testing over a period of years at its dedicated research centre at Solaize in France, Total Lubmarine has now completed that redevelopment to produce a range of high-performance products eminently suitable for use in the shipping industry.”

Lubmarine is the worldwide marine lubricants network of oil major Total