(EnergyAsia, July 1, Wednesday) — China’s wind power generation capacity has reached 12 million kilowatts (KW), making it the world’s fourth largest wind power producer after the US, Germany and Spain. China’s 200 wind power plants now accounts for 1.5% of its overall installed electricity generation capacity. The government is planning more wind power…
(EnergyAsia, July 1, Wednesday) — China’s Hainan island province expects to start up three wind power projects this year. A total of 33 turbines on the Danzhou Eman wind farm is due to start generating electricity by December while the Sigeng and Dongfang Gancheng wind farms will begin operating from September. China’s total installed wind…
(EnergyAsia, July 1, Wednesday) — The Chinese government has launched a campaign to achieve huge energy savings through improved air conditioners and other electrical appliances. It estimates that the country’s use of energy-efficient air conditioners could help it save 75 terawatt hours of electricity each year. That translates to 75 million tonnes of carbon dioxide…
(EnergyAsia, July 1, Wednesday) — The Indonesian government has proposed to raise the country’s biofuel subsidy to 1.55 trillion rupiah next year. (US$1=10,132 rupiah). The increase was linked to the increase in international crude oil prices, according to the country’s director general for oil and gas. Crude has more than doubled since the…
(EnergyAsia, July 1, Wednesday) — The Singapore government will develop and own the country’s first liquefied natural gas (LNG) import terminal, taking over from a consortium comprising state PowerGas Limited and GDF Suez. This decision was announced yesterday by S. Iswaran, Senior Minister of State for Trade and Industry, and Education, at the Next Generation…
(EnergyAsia, July 1, Wednesday) — Australia’s AGL Energy Limited (AGL) said it has acquired two wind farm developments from Transfield Services Limited for A$9 million. (US$1=A$1.25). Under the agreement, AGL acquired the right to install up to 62 turbines (estimated capacity between 124 MW and 186 MW) at Barn Hill, located 170km north of Adelaide…
(EnergyAsia, July 1, Wednesday) — Japan’s Mitsubishi Heavy Industries Ltd (MHI) said it has been selected to provide E.ON UK’s carbon dioxide (CO2) capture technology for application in a demonstration competition organised by the UK government. MHI, in consortium with UK’s Foster Wheeler Energy Limited, has received an order from E.ON UK plc, a leading…
(EnergyAsia, July 1, Wednesday) — The world’s largest national oil companies (NOCs) and super majors are planning to invest more than US$375 billion despite concerns over weak oil demand, said consultant Ernst & Young.
In a report, Investing for the upturn, Ernst & Young found that the largest NOCs will invest over US$275 billion to develop their businesses at home and abroad in 2009, with almost 70% of total investment coming from NOCs in Asia and South America. The super majors are expected to invest around US$100 billion.
The report found that by 2015, the largest NOCs will have invested around US$600 billion in the hydrocarbon sector.
Andy Brogan, global oil and gas transaction advisory services leader at Ernst & Young and author of the report, said:
“NOCs and the super majors continue to show a real determination to push ahead with their major capital expenditure plans this year, at least for now. 2008 was a record year for capital investment by the sector and 2009 is shaping up to be another record year. Companies are wary of finding themselves in a position where they have to play catch-up on investment when the upturn materialises.”
Despite the International Energy Agency’s (IEA) expectation for oil demand to remain weak, Mr Brogan said the industry would still need to invest in boosting production capacity to offset falling output caused by natural field depletion.
“Most oil and gas companies have indicated that they will spend more than half of their capital investment on upstream operations,” he said.
The economic slowdown, the sharp fall in oil prices and investors’ flight from risk have left many reserve rich state-owned oil and gas companies struggling to finance projects. Some NOCs are looking at cost-cutting measures while countries such as Indonesia are introducing stimulus packages to aid the sector.
Many reserve holders’ ambitions to expand overseas are also being scaled back in favour of domestic projects.
However, the report found that substantial financial commitments are still being made for oil and gas projects in China and Brazil.
Brazil is set to become a major producer following pre-salt discoveries by state Petrobras, which plans to invest US$28 billion in pre-salt areas as part of its US$174billion business plan to 2013 – around 90% of its total investment will be targeted at domestic projects.
The investment allocated by Petrobras for 2009 represents 38% of the planned US$91billion expenditure by South American NOCs this year, according to the report, with Asian NOCs collectively to invest more than US$98 billion, almost half (US$42 billion) of which has been allocated by China’s CNPC.
By comparison the capital expenditure of NOCs in Africa, CIS and the Middle East is a fraction of that of their Asian and South American counterparts. The report calculated that the NOCs of Africa announced US$21 billion of investment this year compared to US$36 billion for the CIS and US$29 billion for the Middle East.
It is these regions that face potential budget shortfalls which could lead them to seek out foreign investment in order to maintain or boost their oil production levels.
“When the NOCs had easy access to capital they were in a position to dictate terms with their IOC partners, but the volatility in financial markets means that IOCs with sufficient liquidity will be able to offer potential partners not only technological and operational expertise but also access to much needed capital,” said Mr Brogan.
“In the long-term, the overall structural issues surrounding location of reserves and achievable levels of production have not changed. When the global economy recovers the same pressures evident last year will resume. Any renewed appetite from NOCs for IOC participation will be short-lived – and therefore opportunities available now should not be wasted.”
(EnergyAsia, June 30, Tuesday) — August Energy Pte Ltd’s “BUNKER INDUSTRY: Trading, Pricing & Operating Risks” course held at the Suntec City in Singapore on June 24 and 25 attracted nearly 60 delegates and industry participants.
The event focused on issues of risk mitigation and management for the bunker business during this difficult period of high volatility, tightened credit and additional uncertainties caused by H1N1 threat and a government crackdown on corrupt practices and fraud.
A panel of 15 local and international speakers was assembled from as far as the UK and the USA to present on current issues and concerns of the bunkering industry.
The course started with a keynote speech on opportunities for oil storage and terminal investment in the Maldives by Ahmed Muneez, managing director of Maldives National Oil Company.
David Ernsberger, Platts’ senior editorial director for Asia, presented “Platts’ Role In the Bunker Trade: Pricing Issues and Risk”, explaining the intricacies of how the company sets spot prices and how these are used to price term contracts.
Government guidance for the bunkering industry was provided in succession by Gerald Loh, assistant director for the marine services department of the Maritime and Port Authority of Singapore (MPA), and Ang Seow Lian, assistant director at the Corrupt Practices Investigation Bureau (CPIB).
Giving an “Overview of the Bunker Industry in Singapore: Key Issues”, Mr Loh said the Singapore bunker sales rose 2.6% in the first five months of 2009 compared with the same period last year.
Mr Ang spoke on “CPIB Updates: Safeguarding the Bunkering Industry”, providing valuable insights into the government’s efforts to fight corruption and malpractices in the bunker industry.
Yeo Ek Meng, vice president of clearing and commodities business at the Singapore Exchange Ltd (SGX), spoke on “The Perspective of the Clearing Exchange” while Tim Reid, a partner at insolvency and restructuring experts Ferrier Hodgson, spoke on “Preparing for the Coming Downturn in the Shipping Trade.”
Operating and technical issues were then handled by Tan Lay Thok, a member of the technical committee for bunkering at SPRING Singapore, and Yee Peng Fei, principal consultant at Transportation & Logistics Managers Pte Ltd. Mr Tan explained Singapore’s new SS-600 standards while Mr Yee presented the previously established “Quality Management for Bunker Supply Chain (SS 524:2006).”
Day Two started with Mr Muneez presenting “Maldives: Opportunities for Bunkering Business”, showcasing oil storage business opportunities in his country.
Government support for Singapore companies promoting exports was featured by Angeline Chan, head of transport and logistics at IE Singapore, through her speech on “IE Singapore Updates: Expanding Overseas in Turbulent Times”.
Emphasising the course’s theme of risk management were Jennifer Ilkiw, director for Asia Pacific at IntercontinentalExchange Inc (ICE), presenting: “Clearing and Risk Management for the Bunkering Industry”, and John Phillips, credit manager at Chemoil International Pte Ltd with his talk on “The Perspective of the Bunker Trader.”
Greg Leck, vice president of business development at Triple Point Technology Inc, discussed “The Use of Risk Management Tools and Software”.
Johnson Chan, head of structured trade finance for North Asia at OCBC Hong Kong and vice chairman of the Hong Kong Energy and Minerals United Associations, presented “Financial and Trading Risks Facing the Bunker Trade” while David Anderson, deputy regional manager for Asia-Pacific at Zurich Insurance Company, discussed “Using Credit Insurance to Manage Risk in Volatile Times.“
The final speaker, Paul Butler, regional manager for the Pacific Rim Region at fuel storage terminals specialist HMT Pte Ltd, delivered an expert paper on, “Storage Terminals and the Oil Trade”. He provided delegates with technical details and an update on the growing demand for storage terminals for the oil industry.
Tham Heng Mun, managing director of event producer August Energy closed the conference by sharing with the delegates a brief preview of the coming events the company is preparing for the rest of 2009. Several of the sessions were moderated by Ng Weng Hoong, editor of EnergyAsia.
More information on these can be found at the company’s blog www.bunkercafe.blogspot.com.
(EnergyAsia, June 30, Tuesday) — Oman Oil has been invited to increase its 2% stake in India’s proposed Bina oil refinery project to 26%. The refinery is a joint venture between India’s Bharat Petroleum Corp Ltd (BPCL) and Oman Oil. Indian news reports said Oman Oil could be ready to pay Rs104 billion for the…
(EnergyAsia, June 30, Tuesday) — Asian buyers of liquefied natural gas (LNG) are seeking better terms from suppliers amid evidence of oversupply on the market. Some buyers are resorting to clauses in their long-term contracts that allow them to defer take-up of cargoes while others are increasingly reluctant to commit to long-term contracts. One influential…
(EnergyAsia, June 30, Tuesday) — Singapore’s guardian against fraud and commercial malpractices, the Corrupt Practices Investigation Bureau (CPIB), engaged the bunkering sector last week at last week’s “BUNKER INDUSTRY: Trading, Pricing and Operating Risks” conference held at Suntec City in Singapore. During June24-25 event, organised by August Energy Pte Ltd, Ang Seow Lian, an assistant…
(EnergyAsia, June 30, Tuesday) — Malaysian engineering firm Dialog Group has announced its biggest project to date to build a US$1 billion crude oil storage terminal and port facility in Pengerang in the southern Malaysian state of Johor. Construction of the terminal, with the capacity to store up to five million cubic metres, is expected…
(EnergyAsia, June 30, Tuesday) — Chinese oil officials predict the country will likely raise its stockpile of oil products by 35% to 70 million cubic metres by 2015, up from 52 million cubic metres at the end of last year. State oil giants PetroChina and Sinopec will account for the bulk of the increased stockpile….
(EnergyAsia, June 30, Tuesday) — Malaysian state oil and gas company Petronas, the pillar for the national economy, could be the focus of a long-term struggle between powerful political factions amid the worsening economic climate. Founded in 1974 to safeguard and develop the country’s oil and gas reserves, the company has long been dominated by…
(EnergyAsia, June 30, Tuesday) — The Maldives government is inviting international oil companies to help it develop an oil storage and bunker supply business to serve ships and fishing fleet in the Indian Ocean. The Maldives National Oil Company (MNOC) wants to team up with experienced traders or storage companies to build and operate a…
(EnergyAsia, June 29, Monday) — International oil traders continue to maintain large stockpiles of crude oil in tankers, helped by the contango market that pays for the cost of storage. Traders estimate they are holding a total of 70 million barrels in various locations at sea around the world, down from about 100 million barrels…
(EnergyAsia, June 29, Monday) — A joint venture company between Saudi Aramco and France’s Total said it has awarded the engineering, procurement and construction (EPC) contracts for the proposed 400,000 b/d oil refinery in the Saudi Arabian city of Jubail. Saudi Aramco Total Refining and Petrochemical Company (SATORP) said the awards of the contracts will…
(EnergyAsia, June 29, Monday) — Analysts at major investment banks have upgraded their outlook for Indonesia’s economy as well as their ratings for the stocks of several companies to “overweight” following the success of the recent legislative election. Under President Susilo Bambang Yudhoyono, who is now favourite to win next month’s Presidential election, Indonesia has…
(EnergyAsia, June 29, Monday)— Oil refiners could be the big losers if plans by US President Barack Obama to raise vehicles’ fuel efficiency are implemented. A huge critic of the US auto industry, President Obama wants the government to mandate that vehicles sold in the US emit one third less carbon dioxide by 2016 and…
(EnergyAsia, June 29, Monday) — Analysts are warming to the outlook for Asia’s coal mining companies on a combination of rising prices, growing demand, supply constraints and prospects for mergers and acquisitions for the rest of 2009. Strong coal demand from China has pushed Asian coal prices to over US$60 per tonne for most of…
(EnergyAsia, June 29, Monday) — Australian oil refiner Caltex presented a good news-bad news outlook for 2009: first-half profit up by as much as 50% and a much weaker second half as refining margins deteriorate. The Australian-listed company said its net profit for the six months ended June 30 is likely to have risen to…
(EnergyAsia, June 29, Monday) — The Chinese government is planning to invest in new oil infrastructure including refineries, an ethylene cracker and storage terminals in the southwestern provinces of Sichuan and Yunnan in preparation. At least two refineries of 400,000 b/d capacity each will be built to process crude oil delivered from a set of…
(EnergyAsia, June 29, Monday) — Paris, France-based JEC group, organiser of the JEC Composites Asia conference and exhibition, has promised to stage a bigger event in Singapore this year to build upon the success of last October’s show.
On July 9, Frédérique Mutel, JEC’s President and CEO, will chair a media briefing to present details of the upcoming event. She will be joined by Professor T. E. Tay of the National University of Singapore’s Department of Mechanical Engineering.
JEC said it has increased the exhibition floor space by 75% to 124,000 square feet to meet demands of exhibitors and visitors for the upcoming show this year.
Despite the current economic situation, JEC said it expects the number of exhibitors and delegates would likely increase for the upcoming event. To date, seven national pavilions including Australia, Taiwan, India, Japan, China, South Korea and France have been confirmed.
JEC said Singapore-based companies had the second highest representation as exhibitors at last year’s event.
The JEC Asia event 2009 is supported by A*Star (Agency for Science, Technology and Research), National University of Singapore (NUS), the Building and Construction Authority (BCA), the Land Transport Authority (LTA), STB (Singapore Tourism Board) and EDB (Economic Development Board).
Since 2002, Asia’s economy has experienced high growth rates of around eight percent per year. In 2000, the region represented 25% of the global composites consumption. Currently, it represents 42% and is expected to reach 50% in 2013.
With major growth markets in China and India, along with Middle East, Malaysia, Vietnam, Indonesia as well as Australia, Japan and South Korea, the Asia Pacific composites market is valued at 18 billion euro. (US$1=0.70 euro).
JEC, which promotes the use of composite materials worldwide, informs and connects 250,000 composite professionals through a comprehensive service package.
Composites are a combination of at least two structurally different, non-miscible materials whose individual properties combine and become complementary creating a heterogeneous material with improved overall performance. An example is carbon fibers which are commonly used in the aviation industry.
The forum will focus on critical world oil and gas issues, shifting geopolitics in energy, and issues affecting future exploration and development for corporate players and state oil companies involved in the developing worlds of Africa, Asia, Latin America, Middle East and Russia.
The ‘6th World Oil Future: Strategy Briefing 2009’ conducted by Global Pacific & Partners’ Duncan Clarke will be held before the ‘20th World Oil Forum’.
The forum will discuss world oil geopolitics, the main corporate players, state agencies, the world’s upstream sector, and the future of independent companies in the upstream sector.
Speakers include Duncan Clarke (Global Pacific & Partners), Jean-Arnold Vinois (Austria’s Energy Community Secretariat), Peter van Leeuwen (Ministry of Foreign Affairs, The Netherlands), Robert Amsterdam (Amsterdam & Perloff), Farzam Kamalabadi (Future Trends), Ivan Sandrea (International E&P), Jim Pearce (Addax Petroleum), Mike Watts (Cairn Energy Plc), Abdulhadi M Amesh (Mellitah Oil & Gas BV), Nelson Narciso (Agencia Nacional do Petroleo, Gas Natural e Biocombustiveis), Salah Hassan Wahbi (Sudapet, Khartoum), Armando Zamora (Agencia Nacional De Hidrocarburos),
Mehdi Varzi (Varzi Energy), Cindy Gray (Global Resources – Oil & Gas, Toronto Stock Exchange), Andrew Moorfield (Lloyds TSB Coporate Markets), Lance Crist (International Finance Corporation), Christopher Moyes (Moyes & Co), Bert van der Toorn (ING Wholesale Bank), David Lyons (Capital Partners Worldwide), Jeff Waterous (Global Union Ventures), Bijan Khajehpour (Atieh Group), David Fyfe (International Energy Agency),
Peter Odell (Erasmus University Rotterdam), Lindsay Parson (National Oceanography Centre), Sarah Wykes (Heinrich-Böll-Foundation), Jeff Waterous (Global Union Ventures), António Costa Silva (PARTEX Oil & Gas), Galib Virani (Afren), Jeff Hume (East Africa Exploration Limited), Ray Shaw (Bandanna Energy,Sydney), and Rick H Schmitt (Africa Oil Corporation).
For more information on ‘20th World Oil Forum’, please contact Admin@EnergyAsia.com.