AUSTRALIA: Arrow LNG project makes “significant milestone” with award of FEED contract

(EnergyAsia, August 24 2011, Wednesday) — Australia’s Arrow Energy said it has achieved a “significant milestone” in developing a multi-billion dollar LNG plant on Curtis Island off Gladstone in Central Queensland with the award of the front-end engineering design (FEED) contract.

The engineering design, which will be undertaken by CJV, an international consortium comprising Japan’s Chiyoda Corporation, Chicago Bridge and Iron (CB&I) of the US and Italy’s Saipem will start immediately, and be carried out in Japan, the US and Australia over the next 12 months.

The plant will be designed with two trains each producing nominally four million tonnes of LNG a year for export, with potential to double the size to four trains that could produce up to 16 million tonnes of LNG each year.

Arrow said the multi-million dollar FEED contract has been awarded following an extensive tendering process that evaluated bids from four international consortia.

It follows the company’s recent award of a contract to Parsons Brinckerhoff to investigate options for power supply to surface facilities required by Arrow to develop its coal seam gas projects in the Surat and Bowen Basins.

Arrow CEO Andrew Faulkner said:

“Our FEED contractor will undertake the preliminary engineering, design and planning to provide us with a project specification for our LNG Plant and facilities. The design will use Shell’s proprietary LNG technology.

“This is an important achievement for Arrow and it comes just before the first anniversary of the company’s acquisition by a 50/50 joint venture of Royal Dutch Shell and PetroChina.

“In the past year, we have made tremendous progress with our LNG project, expanding our gas supply beyond domestic markets to position Arrow as a major CSG-LNG business.”

MALAYSIA: Sabah engineering firm is main contractor to build Melaka oil storage terminal

(EnergyAsia, August 23 2011, Tuesday) — A Sabah-based engineering company, Distinct Glory Sdn Bhd, has been awarded the main contract to develop a 250,000-metric ton oil products storage terminal on the island of Pulau Hanyut in the Malaysian state of Melaka.The developer, Pristine Oil Capital Sdn Bhd, is planning to start work on what it…

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MALAYSIA: Asia Petroleum Hub out of receivership to complete storage and logistics island

(EnergyAsia, August 23 2011, Tuesday) — Financially-strapped Asia Petroleum Hub (APH) Sdn Bhd said it has been released from receivership by its banker as it attempts to complete developing a RM2.3 billion oil storage and logistics service centre on a reclaimed island off Johor state in Malaysia. (US$1=RM3).APH, 90% owned by private oil company KIC…

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THAILAND: Bank of Thailand to study proposal for establishing strategic oil reserves

(EnergyAsia, August 23 2011, Tuesday) — The Bank of Thailand said it will consider studying a proposal by state oil and gas firm PTT to use the country’s foreign reserves to establish a strategic oil stockpile to guard against supply disruption and price volatility.Governor Prasarn Trairatvorakul said the central bank will have to tread carefully…

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MALAYSIA: ExxonMobil sells off downstream businesses to Philippines’ San Miguel Corporation for US$610 million

(EnergyAsia, August 23 2011, Tuesday) — ExxonMobil said it has agreed to sell off its interest in three businesses operating an oil refinery and retail stations in Malaysia to San Miguel Corporation (SMC) of the Philippines for a total of US$610 million

The agreements includes ExxonMobil’s 65% stake in the publicly traded company Esso Malaysia Berhad (EMB), which operates the Port Dickson refinery, as well as its wholly-owned ExxonMobil Malaysia Sdn Bhd (EMMSB) and ExxonMobil Borneo Sdn Bhd (EMBSB) affiliates which are involved in the retail, industrial and wholesale and aviation fuels businesses.

The companies’ physical assets include the 88,000 b/d refinery, equity interest in 10 fuel distribution terminals, approximately 560 branded retail fuel sites (420 company owned). The Esso and Mobil brands used in the marketing of fuels products, including their associated marketing programs, will remain in the market place for up to three years to facilitate San Miguel Corporation’s transition to a new retail fuels brand.

The US major said the transaction will have no impact on its upstream interests in Malaysia, where it is active in oil and gas exploration and production through affiliate ExxonMobil Exploration and Production Malaysia Inc (EMEPMI). Also excluded from this transaction are the marketing and sales of chemicals, lubricants, and asphalt products, and the operations of its business support centre in Kuala Lumpur.

With its long history in Malaysia dating back to 1893, ExxonMobil said the sale of its downstream interests marks a significant refocusing of its operations in the country. The company said it remains committed to Malaysia as a producer and supplier of crude, lubricants, asphalt, waxes and chemical products.

As part of its review of its Asian operations, ExxonMobil is also in talks to sell off its retail business in Thailand and its natural gas assets in Aceh in Indonesia.

San Miguel Corporation is a Philippines business conglomerate and the parent company of Petron Corp, the largest oil refining and marketing company in the Philippines. Its 68%-owned subsidiary, Petron Corp, owns and operates a 180,000 b/d refinery and over 1,700 service stations across the Philippine archipelago.

The agreements with San Miguel Corporation were executed by ExxonMobil International Holdings Inc and Mobil International Petroleum Corporation. Formal change in control of the three impacted ExxonMobil affiliates, subject to regulatory review, is anticipated to occur in the first half of 2012.

SINGAPORE: Ezra closes in on US$1billion order mark with Chevron contract

(EnergyAsia, August 23 2011, Tuesday) — Ezra Holdings Limited, a Singapore-based global contractor and provider of offshore services to the oil and gas industry, said it is on track to achieve orders totalling US$1 billion this year following its latest contract award from three Chevron Thailand companies.

Ezra said its offshore construction division, EMAS AMC, secured the contract worth at least US$250 million from Chevron Thailand Exploration and Production Ltd, Chevron Offshore (Thailand) Ltd and Chevron Pattani Ltd to install wellhead platforms and associated pipelines in the Gulf of Thailand.

Ezra said the contract, which boosts its orderbook value to more than US$600 million to date, will begin from early 2012 to 2014, and carries an option period for an additional two years from 2015 to 2016.

Lionel Lee, Ezra’s managing director, said: This award is an important milestone for us and reaffirms the growing relationship that we have with Chevron in the Asia Pacific region.

“The total subsea orderbook for EMAS AMC is now past the halfway mark and is closer to our short-term target of US$1 billion for the segment. EMAS AMC is moving steadily closer towards becoming fully integrated within the EMAS Group and the combined entity will propel us towards our objective of being a global leader in marine and offshore construction.”

EMAS is Ezra’s operating brand to provide construction, marine, production and well intervention services for the offshore oil and gas industry.

AUSTRALIA: Large gathering expected at Honeywell Users Group (HUG) event in Fremantle this week

(EnergyAsia, August 22 2011, Monday) — A large gathering of a few hundred engineering and business professionals is expected at this week’s Honeywell Users Group (HUG) event in the port city of Fremantle in Western Australia.

The annual event is attended by representatives from the country’s process industries, particularly its powerful mining and resources sector. BHP Billiton, Aloca, Woodside and Esso Australia will be among those sharing their knowledge on the latest trends and issues in technology solutions for the process industry.

Increasingly, the event is also attracting participation from Asia’s energy companies as well, with South Korea’s S-Oil and China’s Sinopec due to make presentations, according to Candice Yeo, Honeywell Asia Pacific’s marketing communications leader. For the first time too, Honeywell has invited trade journalists from the Asia Pacific to attend.

Norman Frederick Moore, the Minister for Mines and Petroleum, Fisheries and Electoral Affairs for Western Australia state, will be giving an overview of the economy and the resources sector at the event.

Honeywell’s senior executives sharing their expertise with delegates include Mark Zyskowski, VP Global Sales, Jason Urso, VP Technology, Tony Cosgrove, VP Sales Asia Pacific and Joe Spirito, Strategic Relationships Director. Adrian Fielding will be speaking on industrial security, Rob Brendel on energy efficiency, Stacey Kelly on cyber security, Ashish Gaikward on advanced solutions, and Geoff Taverner on oil and gas.

INDONESIA: ExxonMobil to bail out of troubled depleting Arun gas operations

(EnergyAsia, August 22 2011, Monday) — After decades as one of its most profitable operations, Exxon Mobil Corp is seeking to exit from its increasingly troubled and fast-depleting Arun condensate and natural gas fields in Indonesia. The US major said it is selling its stake in three companies associated with the Aceh gas and liquefied…

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CHINA: Economy faces strong headwind from continued power shortages and rising energy costs

 (EnergyAsia, August 22 2011, Monday) — China’s on-going power shortages could extend beyond this year as its supply system is unable to keep up with the country’s seemingly insatiable energy demand growth, said government and industry officials. The National Energy Administration (NEA) has conceded to the possibility that the country’s power shortages could even worsen…

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INDONESIA: Government, IEA expect significantly lower oil output this and next year

(EnergyAsia, August 22 2011, Monday) — The Indonesian government has acknowledged that the country’s crude oil production will continue to decline as it has not made major new finds or attract sufficient investments into its upstream sector. State regulator BPMigas has reduced its 2011 production forecast to 945,000 b/d from 970,000 b/d at the start…

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IRAQ: Dispute with Kuwait over proposed construction of large crude oil terminal

(EnergyAsia, August 22 2011, Monday) — Iraq is demanding that Kuwait not proceed with the proposed construction of its US$6 billion Mubarak Oil Terminal on an island that threatens to open up historical disputes over maritime access rights. Calling it a “provocative move”, Baghdad said its neighbour risked military confrontation as the terminal on Bubiyan…

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OMAN: Honeywell, Foster Wheeler to supply technology for refinery expansion

(EnergyAsia, August 22 2011, Monday) — Oman Oil Refineries and Petroleum Industries (Orpic) has selected a mix of Honeywell’s UOP and Foster Wheeler technology to help process heavy oil and expand fuel and petrochemicals production at its new refinery in Sohar city in Oman.

UOP said Orpic will use the UOP-Foster Wheeler Solvent Deasphalting (SDA) process technology to convert heavy crude to low-contaminant deasphalted oil, a product that is further processed in refineries to produce liquefied petroleum gas (LPG), gasoline, jet fuel, diesel and propylene. The new unit will process 2.5 million metric tonnes per year of heavy crude to significantly increase the refinery’s production of valuable petroleum products.

UOP and Foster Wheeler will provide the technology licence and basic engineering package for the new unit, which is expected to start up in 2015.

The SDA process separates heavy vacuum residue by density and molecular weight instead of the more traditional boiling point method. The process produces a high-quality, low-contaminant deasphalted oil that is rich in paraffinic-type molecules used in fuels and petrochemicals production.

To date, the two companies have designed and licensed over 70 SDA units, ranging in size from 7,000 to 48,000 b/d.

Keith Aspray, general manager for Honeywell’s UOP Middle East Company, said:“This project with allow Orpic to significantly increase its yields of transportation fuels from heavy, difficult-to-upgrade feedstocks. Together with Foster Wheeler, we have significant experience with this solution and we are confident that it will help Orpic to achieve its goals.”

Umberto della Sala, chief executive officer, Foster Wheeler AG, said:

“We are very pleased that Orpic has selected UOP/Foster Wheeler technology for this strategically important refinery project in the Middle East. This latest award constitutes a strong vote of confidence in the added value we deliver in heavy oil processing and continues our successful record in licensing large SDA units.”

State-owned Orpic owns and operates four plants in Sohar and Muscat that have a combined capacity to produce 222,000 b/d of naphtha, LPG, gas oil, gasoline, fuel oil and jet oil, as well as 818,000 metric tonnes of paraxylene, 198,000 metric tonnes of benzene and 350,000 metric tonnes of polypropylene per year.

UOP LLC, headquartered in Des Plaines, Illinois, USA, is a leading international supplier and licensor of process technology, catalysts, adsorbents, process plants, and consulting services to the petroleum refining, petrochemical, and gas processing industries. UOP is a wholly-owned subsidiary of Honeywell International, Inc.

SINGAPORE: Brightoil aims to divert 12 million tonnes of bunker trade to China after 2014

(EnergyAsia, August 19 2011, Friday) — Hong Kong-based marine fuels supplier Brightoil Petroleum Holdings said it plans to divert as much as 12 million tonnes of Singapore’s annual bunker fuel trade to China after 2014 when it starts up its new storage terminals along the Chinese coastline.The volume would represent a significant portion of Singapore’s…

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SINGAPORE: India’s Essar lands US$320m sub-contract to build tanks, jetties, pipelines, utilities

(EnergyAsia, August 19 2011, Friday) — India’s Essar group said subsidiary Essar Projects Ltd (EPL) has secured a US$320 million contract to build storage tanks, jetties, pipeline systems and utilities for a US$2.4 billion petrochemicals complex being developed on Singapore’s Jurong Island.An EPL subsidiary in Singapore is expected to complete the project for Jurong Aromatics…

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SRI LANKA: Joint venture with Chinese firm to develop US$500 million port terminal

(EnergyAsia, August 19 2011, Friday) — Chinese interest will be supporting Sri Lanka Ports Authority (SLPA) in jointly developing a US$500 million port terminal in the capital city of Colombo to turn it into a major transhipment hub for the region.Colombo International Container Terminal (CICT), a Sino-Lanka joint venture, has signed a 35-year deal with…

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SINGAPORE: Japan’s Panasonic to test-bed Asia’s first ‘total energy’ solutions for public housing

(EnergyAsia, August 19 2011, Friday) — Japan’s electronics giant Panasonic said it has teamed up with the Singapore government to test-bed its “total energy” solutions for a public housing project in Punggol estate.

Panasonic will work with the Housing & Development Board (HDB), Energy Market Authority (EMA) and the Economic Development Board (EDB) to implement and integrate its energy creation, storage and saving solutions at an existing public residential building through 2013.

Punggol Eco Town, designated a key “living lab” for urban sustainability solutions in Singapore, will be installed with Panasonic’s photovoltaic systems to produce solar energy to power common facilities such as lifts, water pumps and lighting.

Panasonic will also introduce its lithium-ion battery to store excess electricity generated by the solar panels for use at night and to serve as a backup electricity generator. It also plans to increase energy efficiency in the households by installing its Home Energy Management System (HEMS) in participating units in the block. This helps the households to monitor their electricity, water and gas consumption patterns via in-home display and better manage their energy consumption.

The Japanese firm said it is looking to collaborate with EMA in implementing the government’s Intelligent Energy System (IES) pilot project announced in November 2009.

Through the use of smart meters and smart grid technology, the pilot seeks to test the feasibility of applications to enhance the efficiency and resilience of Singapore’s power system. The system is also aimed at helping consumers to better manage their energy consumption through the use of home energy management systems, time-of-use pricing and incentives to encourage peak loads shaving.

Speaking at the Punggol Eco-Town event, Fumio Ohtsubo, President of Panasonic Corporation, said:

“Singapore, with its excellent infrastructure and talent base, is an ideal living-lab to test-bed our energy solutions. I expect this collaboration to be a pioneer endeavour to contribute towards a greener lifestyle in Singapore and the region with our technology.”
Chee Hong Tat, EMA’s chief executive, said: “As the industry developer for the energy sector in Singapore, one of EMA’s strategies is to work with industry partners to test-bed innovative energy solutions and develop new business ideas. We welcome the opportunity to collaborate with companies like Panasonic, who bring useful economic value and technological expertise that will benefit Singapore’s economy and consumers.”

Lau Joo Ming, managing director of HDB Building Research Institute, said:

“HDB recognises the importance of sustainable living. Hence, HDB has been actively promoting environmental best practices through our building and development processes, and with the setting up of HDB’s first Punggol Eco-Town.”

Tan Choon Shian, EDB’s deputy managing director, said:

“We are delighted that Panasonic intends to work with our government agencies and leverage Singapore as a living laboratory to create and demonstrate their total energy solutions.

This project attests to the ease of private-public partnerships in Singapore, and will help Panasonic accelerate the commercialisation of its new energy solutions business, before scaling up for global markets.”

Also present at the event were Yorihisa Shiokawa, managing director of Panasonic Asia Pacific, Haruyuki Ishio, Panasonic’s director for Promoting Energy Solution Business, Larry Cheng, deputy managing director of HDB Building Research Institute, and other Panasonic executives and Singapore government officials.

CHINA: Shell opens its lubricants technical service centre in Zhuhai city in Guangdong province

(EnergyAsia, August 19 2011, Friday) — Royal Dutch Shell said it has opened its first lubricants technical service centre (TSC) in China to better serve its customers in the fast-growing country.

 The European major said the facility in Zhuhai city in Guangdong province is the latest addition to its global technology centres, bringing together teams of world-class scientists and engineers.

  The Zhuhai location is Shell’s largest lubricants manufacturing complex in Asia matched by the size of the China lubricants market for Shell.  The company owns and operates a lubricant blending plant, and is building a grease plant in Zhuhai.

Technology leadership is a key differentiator of the products and services from Shell Lubricants, which has been ranked as the number one international lubricant supplier both globally and in China for the past four years (Source: Kline & Company). With over 70 years of innovation through investing in research and development, Shell’s world-class scientists have created some of the most advanced lubricant products available.

Shell expects its industry customers and automotive original equipment manufacturers (OEMs) to benefit from the centre’s offering of technical research, marketing and training services related to their lubricants application. It will also serve as a platform for working with leading OEMs and research institutes.
At the centre’s opening, Mark Gainsborough, Shell’s Head of Downstream Global Commercial, said:

“The TSC is another example of how Shell can help meet China’s current needs and aspirations for smarter energy solutions. It is part of our downstream selective growth strategy and allows us to support the needs of customers based in China such as one of the largest joint venture car manufacturers, Shanghai General Motors.”

Lim Haw-Kuang, executive chairman of Shell Companies in China, said:

“China is the world’s fastest growing and second largest lubricants market and demand is growing fast. We are working hard to meet our Chinese customers’ needs and serve them well to support them in their growth. The TSC opening underlines Shell’s confidence in the China market and commitment to Chinese customers.”

ASIA: Region to account for 82.5% of new global oil and gas storage capacities by 2015, says GlobalData

(EnergyAsia, August 19 2011, Friday) — Led by China, Asia will account for 82.5% of the world’s new oil and underground gas storage capacities by 2015, according to a report by GlobalData.

The consulting firm expects 30 countries to build 100 oil storage terminals with a total capacity of more than 94.7 million cubic metres, while gas companies will build 115 new underground terminals to add to the world’s existing 2.35 billion cubic feet of capacity by 2015.

Governments and companies are expanding their oil and gas storage facilities to meet rising demand for energy, and to hedge against price volatility and fears of supply disruptions.

GlobalData said China will drive the oil storage business as it will account for 69.6% of the planned capacity additions while Europe will dominate the underground gas storage capacity addition

The report said: “Europe is one of the prime consumers of natural gas and a major part of its gas supplies are sourced from Russia. This makes the region highly vulnerable to price and supply fluctuations arising due to its overdependence on a single source of gas supply.

“Currently, planned underground gas storage capacity globally is dominated by European countries. In May 2011, Europe’s planned underground gas storage capacity addition accounted for 87.5% of the global planned underground gas storage capacity addition during the period 2011–2015.”

GlobalData released its study, “Planned Oil and Underground Gas Storage Market – Global Analysis, Competitive Landscape and Capacity Forecasts to 2015”, in July.

SINGAPORE: “Energy Map of Singapore/Johor 2011” and “Energy Industry in Singapore 2011 with directory”

(Energyasia, August 18 2011, Thursday) —  The 2011 edition of this map measuring 120 cm by 90 cm, shows the latest oil, gas, petrochemical, chemical and power and marine installations and plants in Singapore and Johor.

First produced in 1999, this unique map contains latest statistical information  including oil and power consumption, refining capacities, power generation capacity and storage facilities.

  It also shows Singapore’s facilities for the booming marine and offshore sector which supports local upstream and deepwater oil gas exploration and production activities.

There are data on the volume and value of Singapore’s trade in crude and oil products including LPG, naphtha, gasoline, jet kerosene, diesel, fuel oil and lubricants for 2008, 2009 and 2010.


Report on “Energy Industry in Singapore”

Complementing this map is the 2011 edition of the Energy Industry in Singapore report, last updated in 2008.

The report provides an overview and description of Singapore’s energy industry covering the oil refining, trading, petrochemical, power and offshore and marine sectors.

An overview of Jurong Island and how their activities contribute to Singapore’s downstream oil, petrochemicals and chemicals production.

Three giant oil refineries provide feedstock to more than 30 large downstream manufacturing plants on the island.  These petrochemical products are then broken down and converted to materials and plastics for the production of a wide range of household and commercial products.

It also contains a directory of personnel invoived in the country’s oil, gas, coal, power, petrochemical and marine industries.  It also has a list of oil, gas, marine, offshore, power, petrochemical, chemical, logistics, support and engineering companies and their contact details.  Please contact  for your copy.



MALAYSIA: Oil companies may have to pay up to operate storage tankers off Pasir Gudang

(EnergyAsia, August 18 2011, Thursday) — Oil trading companies could be facing an end to their low-cost operations of storing oil in tankers off the coast of Johor state in southern Malaysia.The government has issued quit notices to several companies that have chartered at least 15 tankers to store crude oil and fuel oil off…

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MALAYSIA: Petronas aims to beat Shell to start up world’s first floating LNG terminal

(EnergyAsia, August 18 2011, Thursday) — Malaysia could become the first country in the world to produce and market liquefied natural gas (LNG) from a floating terminal from as early as 2015 if state-owned oil and gas company Petronas succeeds in its execution.The company is targeting to finalise its investment plans by the end of…

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MALAYSIA: Petronas faces uphill struggle to overhaul dividend payment scheme

(EnergyAsia, August 18 2011, Thursday) — Malaysia’s state oil and company Petronas faces a tough fight to overhaul its long-established dividend system as it is aimed at drastically reducing payments to the government.Under new President and CEO Shamsul Azhar Abbas, Petronas is proposing to pay the government a dividend equal to 30% of its net…

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IRAN: Government plans to attract US$150 billion into energy sector through 2015

(EnergyAsia, August 18 2011, Thursday) — The Iranian government plans to invest a total of US$150 billion in energy projects through state-owned companies over the five-year period through 2015.According to deputy oil minister for planning Mohsen Khojasteh-Mehr, the investment will enable Iran to boost its oil production capacity from four million b/d to 4.7 million…

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CHINA: Security threat from rising dependence on imported oil

(EnergyAsia, August 18 2011, Thursday) — China faces a security threat from its rising dependence on imported oil at a time when the US is reducing its oil imports and demand, said officials.From just 33% in 2009, China’s dependence on imported oil has risen above 55% in the first half of the year, exceeding even…

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SINGAPORE: More electricity exports to Malaysia seen on natural gas supply shortages

(EnergyAsia, August 17 2011, Wednesday) – Singapore is positioned to increase its electricity exports to Malaysia following the success of PowerSeraya’s recent pioneering short-term deal with Tenaga Nasional Berhad (TNB), Malaysia’s largest power company.With a significant surplus generation capacity, Singapore’s power companies are exploring the possibility of term sales to its neighbour to the north…

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