SHIPPING: INTERTANKO focuses on tanker industry sustainability, air emissions and piracy

(EnergyAsia, October 21 2011, Friday) — The association representing most of the world’s oil tanker owners recently discussed the issues of the industry’s sustainability amid depressed market conditions, air emissions and the growing threat of piracy.

Intertanko said its council is deeply concerned with the depressed state of the market as tanker rates remain below ship owners’ operating costs.

Chairman Graham Westgarth, who was re-elected for another two years, said:

“If these rate levels continue for a long period, then this could lead to a situation where sustainability of the oil transportation industry is threatened.

“Our members operate tankers to the highest standards and will continue to do so. Operating for a prolonged period in an environment where tanker owners are not even covering their operating costs is obviously not a situation that can be maintained.”

The council has updated Intertanko’s policy on reducing greenhouse emissions from tankers covering the IMO’s Energy Efficiency Design Index (EEDI) and Ship Energy Efficiency Management Plans (SEEMP) as well as Market Based Measures (MBM).

The association said it welcomes the adoption by IMO of amendments to the MARPOL Convention mandating energy efficiency measures (EEDI/SEEMP regulations) on ships.

Intertanko said it advocates that the EEDI requirements should be implemented on a “level playing field” to be applied equally to all ships on the same effective date, and should focus on improving hull design, propulsion efficiency and energy optimisation rather than to reduce speed designs.

It added that any measures taken to comply with EEDI should not jeopardise nor have an adverse effect on the safety of the vessel.

Of various proposals under consideration, Intertanko favours the GHG Fund which it describes as “the simplest and most transparent” for shipowners.

The association said it is “not in favour of a trading scheme to reduce GHG emissions.”

Intertanko said piracy remains a “high priority item” for tanker owners, in particular Somali piracy in the Indian Ocean and Arabian Sea through which passes more than 40% of the world’s oil.

Its council has repeated Intertanko’s call for governments to act to eradicate this scourge, and that Intertanko members should fully support the Maritime Piracy: a Human Response Program (MPHRP). It has agreed to continue its support “for the growing and evolving” SOS SaveOurSeafarers campaign which wants governments to take more decisive action to eradicate piracy.

AUSTRALIA: Origin Energy raised US$500 million through senior unsecured notes in the US

(EnergyAsia, October 21 2011, Friday) — Australia’s Origin Energy Limited said it has raised US$500 million through an unsecured notes offering in the US that will be due October 14 2021 while paying a coupon rate of 5.45%.

The successful placement will help fund the company’s joint-venture project to convert coal seam gas (CSG) to liquefied natural gas (LNG) for export, mostly to Asia. Its partners in the Australia Pacific LNG project include ConocoPhillips of the US and China’s state-owned Sinopec, Origin.

The notes will be issued by subsidiary Origin Energy Finance Limited and will be guaranteed by Origin Energy Limited and its subsidiaries.

Karen Moses, Origin’s executive director for finance and strategy, said:

“With this transaction, Origin has taken a further step in securing funding requirements for the Australia Pacific LNG CSG-to-LNG project.”

AUSTRALIA: Darwin, Northern Territory suffered fuel shortages following Singapore refinery fire

(EnergyAsia, October 21 2011, Friday) — Australia’s Northern Territory (NT) state briefly experienced diesel shortages after fire damaged a major oil refinery in Singapore last month. The capital city of Darwin “lost” at least one shipment after the September 28 fire forced Shell to shut down its 500,000 b/d refinery on Bukom Island for several…

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CHINA: Sinochem, Honeywell JV to produce energy-efficient and environmentally-friendlier materials for Asia

(EnergyAsia, October 20 2011, Thursday) — US engineering giant Honeywell said it and China’s Sinochem Group have agreed to form an equal joint venture in China to produce and sell blowing agents for energy efficient foam insulation to meet growing demand in Asia for energy efficient and environmentally friendlier materials. The proposed joint venture, to be located in Taicang, Jiangsu Province, is subject to Chinese government approval.

The joint venture will produce HFC-245fa, a non-ozone-depleting rigid foam blowing agent used in insulation for appliances, construction, transportation and other applications where maximum energy efficiency is required.

Expected to start up in late 2013, the venture may also produce Honeywell’s newly launched Solstice™, its next generation HFO lower-global-warming-potential blowing agent.
China and other Asian nations are rapidly adopting hydrofluorocarbon (HFC) materials, including blowing agents and refrigerants, to comply with the Montreal Protocol on Substances That Deplete the Ozone Layer.

China’s Ministry of Environmental Protection requires phasing out the use of ozone-depleting blowing agent R-141b in small household appliances by 2015.

At the 15th UN Climate Change Conference Copenhagen 2009, Beijing committed to a 40% to 45% reduction of carbon dioxide emissions in 2020 compared to the 2005 emissions level.

Based on this, demand for blowing agents and the next generation of lower-global-warming-potential blowing agents in China is expected to grow significantly in coming years.

Honeywell said its HFC-245fa is a non-ozone-depleting HFC liquid blowing agent that provides the foam’s superior insulating properties compared to other forms of insulation. The HFC-245fa blowing agent is used extensively by appliance manufacturers to insulate refrigeration equipment to meet increasing global energy efficiency requirements. It is also used in construction and transportation applications.

The un-named new joint venture will have exclusive rights to sell HFC-245fa in the Asia region. Honeywell, which currently manufactures the blowing agent at its Geismar, Louisiana, US facility, will continue to sell HFC-245fa in all other areas under its Enovate brand name.

Andreas Kramvis, president and CEO of Honeywell Specialty Materials, said:

“This joint venture with Sinochem, one of the strongest companies in China, will help meet growing demand for this material as Asian customers rapidly adopt more energy efficient and environmentally compliant materials.

“Having Asian supply close to local customers is important to ensure global supply of this material in the future.”

Yinping Wang, a Sinochem Group vice president, said: “Honeywell is a globally-renowned multinational company with diversified, leading technologies, products and services.

“The formation of the joint venture enhances our product portfolios and service capabilities in energy efficient and environmentally friendly materials, which aligns with both companies’ business development strategies, and reinforces the foundation for cooperation in depth.  The joint venture depicts an exciting prospect.”

SOUTHEAST ASIA: Wood Mackenzie says region need to invest at least US$125 billion in power sector by 2020

(EnergyAsia, October 20 2011, Thursday) — Southeast Asia will need to invest at least US$125 billion in its power generation sector by 2020 to keep pace with the “aggressive” growth of its power demand, said UK consultant Wood Mackenzie.

The company examined the region’s demand hotspots of Java-Bali and Sumatra in Indonesia, Peninsular Malaysia, Singapore, Thailand and Vietnam in a report titled “Power Crunch in Southeast Asia”.

Graham Tyler, Wood Mackenzie’s Head of Asia Gas and Power Research, said:

“Southeast Asia’s power demand growth will outpace Gross Domestic Product (GDP) growth in the next decade. The major demand centres alone will see demand grow from about 92,000 Megawatts (MW) in 2011 to 163,000 MW in 2020, creating a drop in reserve margins, particularly in the 2014-to-2015 period. Therefore, timely investments for new power generation will be required.”

The report forecasts that capacity additions in the region are expected to top 30,000 MW and 85,000 MW by 2015 and 2020 respectively. This would require an increase in power project investment from US$44 billion by 2015 to at least US$125 billion by 2020, even if an economic downturn with GDP growth levels similar to 2009 occurs for two consecutive years from 2010-2013.

The report forecasts that 42% of the new investment will be in coal-fired capacity, while natural gas-fired capacity will account for 18% of the total.

Mr Tyler said: “If immediate actions are taken to correct the existing situation and attract the level of investment required, the impact of power shortages will be softened from 2015 onwards.

To achieve this, governments need to encourage the project financing required to meet the power capacity investment levels by speeding up regulatory and approval processes.”
Wood Mackenzie places reserve capacity at an optimal level of 15% which it sees as crucial to meet unplanned or unexpected power needs.

It said that a fall below this level will be uncomfortable but if it drops below 10%, scheduled power cuts should be expected as a regular feature, especially in peak demand seasons that usually fall within the warmer or drier months of the year. Vietnam is hardest hit in the drier months as 40% of their power needs are currently met by hydropower.

The report highlights that Vietnam and Indonesia are most exposed to a potential power crunch and therefore require the most investments, representing about 60% of the total required. The regions in West Java and South Vietnam, are particularly in need of new capacity, as they currently have low margins and an over-dependence on power flows from other regions.

Malaysia and Thailand will also see reserve capacity fall below optimal levels in the period to 2015, but the impact should be more manageable as they have been quick to respond to the power shortages by importing power, announcing new projects and speeding up the development of existing ones.

Wood Mackenzie said that  these steps will alleviate the power crunch unless project delays or higher demand growth occurs, in which case both countries will also need additional investments.

Mr Tyler said: “Power demand growth will increase substantially in the next decade. This strong growth signals that investments of US$125 billion are required to build power capacity additions, even if we see a repeat of 2009’s economic recession over the next two years. Encouraging timely investments in West Java and South Vietnam will be especially crucial and governments can play a part in prioritising investments by expediting processes where possible.”

IRAQ: Singapore-based Leighton awarded US$518 million contract to build export terminal

(EnergyAsia, October 20 2011, Thursday) — Australian engineering firm Leighton said its Singapore-based subsidiary, Leighton Offshore Pte Ltd, has been awarded a US$518 million contract to build Iraq’s fourth crude oil export terminal. Leighton, the Australian unit of Germany construction group Hochtief, will build a single point mooring buoy (SPM) to export up to 900,000…

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CANADA: Black & Veatch to provide technology for terminal to export LNG to Asia

(EnergyAsia, October 20 2011, Thursday) — US engineering firm Black & Veatch said it has begun front-end engineering design (FEED) for a new terminal to export liquefied natural gas (LNG) from Kitimat port on the west coast of Canada’s British Columbia province. The terminal will be constructed on a barge and transported to the Douglas…

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ASIA: Argus launched new LNG price assessments

(EnergyAsia, October 20 2011, Thursday) — Argus has launched a new series of price assessments in its LNG daily report covering emerging Asian trading hubs since October 3. The new assessments include destinations for Northeast Asia, comprising Japan, South Korea and Taiwan, China and India, as well as fob markets from Australia, Middle East fob…

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INDIA: Foster Wheeler awarded contract for four circulating fluidised-bed steam generators

(EnergyAsia, October 19 2011, Wednesday) —Foster Wheeler AG said a subsidiary of its Global Power Group has been awarded a contract to design and supply four circulating fluidised-bed (CFB) steam generators for Essar Power Salaya Limited in India, the project’s owner and developer. Switzerland-based Foster Wheeler, which declined to reveal the contract’s value, said it…

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JAPAN: New oil stockpile plans taking shape

(EnergyAsia, October 19 2011, Wednesday) — The Japanese government is revamping its oil stockpile system to ensure that fuel supplies reach stricken areas in the event of emergencies or natural disaster following lessons learnt from the March 11 earthquake and tsunami disaster. There were reports of prolonged and widespread gasoline and diesel shortages in many…

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VIETNAM: Petrovietnam to start constructing Nghi Son refinery this quarter

(EnergyAsia, October 19 2011, Wednesday) — State-owned PetroVietnam said it expects to start construction of the nation’s second oil refinery in Nghi Son sometime this quarter. Construction of the joint venture 200,800-b/d refinery, located , 215 km south of Hanoi, was to have started early this year, but was delayed by land clearance and preparation…

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SINGAPORE: EMA launched national energy statistics

(EnergyAsia, October 19 2011, Wednesday) — In a long overdue move, the Energy Market Authority (EMA) has released Singapore’s first official publication on its energy statistics.

The Singapore Energy Statistics (SES) is an annual publication containing the country’s key energy supply and consumption statistics, and prices, as well as trends in the electricity and gas sectors.

EMA said the report is part of its efforts to support the development of a dynamic energy sector. The report is available for download at its website at www.ema.gov.sg.

Despite the effort, the report fell short of expectations as it did not show last year’s statistics.

Instead, it contained 2009 data, reporting that Singapore imported 146.1 million tonnes of oil equivalent (Mtoe) of energy products.

The report said that for 2009, oil products constituted the largest share of energy imports and exports at 90.3 Mtoe (61.8%) and 82.8 Mtoe (98.6%) respectively.

Table. Singapore’s Imports and Exports of Energy Products, 2009 (Mtoe)
                                          Imports        Exports
Coal & coal products         0.0                0.0
Crude oil, NGL                   48.5              1.2
Oil products                       90.3            82.8
Natural gas                          7.4               –
Total                                 146.1            84.0

MALAYSIA: Singapore’s CAO to invest in greenfield oil storage terminal in Johor

(EnergyAsia, October 18 2011, Tuesday) — China Aviation Oil (Singapore) Corporation Ltd (CAO), Asia’s largest physical jet fuel trader, has teamed up with Malaysia’s Centralised Terminals Sdn Bhd (CTSB) to construct, develop and operate a RM371-million oil products storage terminal at the Port of Tanjung Langsat in Malaysia’s Johor state. (US$1=RM3.1). CAO said it will acquire…

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MALAYSIA: Finance Ministry predicts higher oil and gas output in 2012

(EnergyAsia, October 18 2011, Tuesday) — Malaysia expects to raise its crude oil and natural gas production next year, bolstering its economic outlook amid growing concerns with the deteriorating global economic environment.In its latest Economic Report for 2011/12, the Finance Ministry said it expects the country’s crude oil production to rise 3.3% to 620,000 b/d…

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SINGAPORE: IEV, offshore engineering and clean energy solutions provider, to raise S$8.7 million in share offering

(EnergyAsia, October 18 2011, Tuesday) — IEV, a provider of integrated offshore engineering and clean energy solutions, is targeting to raise S$8.7 million in a public share offering on the Singapore Exchange. (US$1=S$1.26).

The company said its offer of 37 million at S$0.30 each will close on October 21. After expenses, it expects to raise S$8.7 million to fund its offshore engineering and natural gas activities, product design and development work, and general corporate and working capital requirements.

IEV said that the S$0.30 per share gives it an estimated price earnings ratio of 5.7 times based on the company’s historical net earnings per share of 5.3 cents for the year ended December 31 2010 and pre-placement share capital of 135 million shares.

IEV said it intends to recommend and distribute at least 10.0% of the group’s net profit attributable to shareholders as dividends for FY2011, subject to conditions.

Collins Stewart Pte Ltd is the sponsor and placement agent for the share offering.

The company was founded in 1986 by President and CEO, Christopher Do, when he invented the “ocean-powered” marine growth control (MGC) technology, a simple and effective green technology to control marine growth on offshore platforms.

IEV describes itself as “a single solution provider” who can cater to many aspects of the life cycle of offshore oil and gas facilities.

Mr Do said:, “IEV is able to provide solutions at various stages of the entire life-cycle of offshore assets, from the installation of new offshore production facilities to the maintenance and repair of existing assets, as well as the decommissioning of ageing assets.  This ability allows us to provide valuable solutions to cater for different engineering needs of offshore oil and gas operators as well as major offshore and subsea contractors in Asia Pacific. ”

In 2005, the company ventured into the mobile natural gas sector and has since been involved in the development and deployment of compressed natural gas (CNG) supply chains to provide energy to industrial consumers in Indonesia and Vietnam who have no access to piped gas.  The company also offers technical expertise to commercialise customers’ flare gas and stranded gas by providing natural gas solutions, as well as sources for stranded gas reserves in Indonesia.

IEV holds a 20.5% interest in CNG Vietnam which is believed to be the primary supplier of mobile CNG in Vietnam.

PEOPLE: Chromalloy appoints Luzzatto as new President to lead expansion

(EnergyAsia, October 18 2011, Tuesday) — Chromalloy, a leading producer of turbine engine repairs and advanced coatings, has appointed Carlo Luzzatto as President to lead its expansion in the aerospace and industrial gas turbine (IGT) markets.

Mr Luzzatto, a seasoned energy industry business leader, joined from Ansaldo Energia, a division of the Italian conglomerate Finmeccanica S.p.A., and a leading provider of power plant equipment and power generation services where he last served as co-general manager.

“With Carlo’s appointment, Chromalloy is positioned for growth in the global energy and aerospace industries,” said Armand F. Lauzon, Jr, who had served as President since 2008. He will become the company’s CEO as well as CEO of Sequa Corporation, Chromalloy’s parent company.

Before joining Ansaldo Energia, Mr Luzzatto was general manager of GE Oil & Gas’s RotorFlow unit.

Chromalloy is a leading independent supplier of technologically advanced repairs, coatings, and FAA-approved alternative parts for turbine airfoils and other critical engine components for commercial airlines, the military and industrial turbine engine applications. 

Chromalloy serves military, commercial and industrial turbine engine operators worldwide with operations, annexes and sales offices in 17 countries.

SINGAPORE: ASL Marine Holdings secured shipbuilding contracts worth a total of S$267 million

(EnergyAsia, October 17 2011, Monday) — Singapore’s ASL Marine Holdings Ltd said ts wholly-owned subsidiary ASL Shipyard Pte Ltd has secured contracts worth a total of S$267 million to build five vessels mostly for offshore oil and gas support work over the next three years. (US$1=S$1.28).

ASL Marime will deliver two barges in 2012, two units of platform supply vessels in 2013, and a dredger unit in 2014.

The company the contracts are expected to have a positive impact on its net tangible asset and earnings per share for the financial year ending June 30 2012.

Listed on the Singapore Exchange, ASL Marine is a fully integrated marine company with a strong focus in shipbuilding, repair and chartering.

MARKETS: Lessons for oil and gas security from Libya’s revolution, by Securing America’s Future Energy (SAFE)

(EnergyAsia, October 17 2011, Monday) — The following is an edited version of an analysis by the Securing America’s Future Energy (SAFE) study group.

With fighting in Libya now near an end, some observers may say that since the Arab spring has sprung three new North African democracies (Egypt, Tunisia and Libya) upon the world, we can all get back to business as usual. This reaction ignores some important points.

First, the transition is far from over in these countries. All three are ruled by some form of transitional council and major steps ranging from holding elections, to forming a permanent government, and dealing with former regime loyalists have yet to be taken. Second, the Arab spring refigured the Middle East, creating new risks and opportunities for Western diplomacy.

Finally, the Libyan revolution has shown serious problems with the global system of energy security. Although the world managed the crisis as well as could be expected, the global community couldn’t keep oil prices from spiking $30 a barrel after Libyan exports were cut to nearly zero.

The high oil prices have helped, along with the European debt crisis, to push the world to the brink of a renewed recession, showing once again how important oil prices and volatility are to economic growth.

For the moment, all three countries aspire to be democracies, but are a fair distance from the goal.

Both Egypt and Tunisia plan to hold their first democratic elections this fall, eight and nine months, respectively, after their authoritarian presidents resigned. Egypt’s generals are aiming to have presidential elections by the end of 2012, nearly two years after Mubarak was removed from power.

The situation in Libya is more fluid and complex. In both Tunisia and Egypt, the time between the first protests to the Presidents’ resignation was less than a month. In both countries the main institutions of state simply shifted their loyalties and remained intact.

This dramatically simplified the transition because the countries saw a change of government without the need to build a new state from the ground up. In this sense, the revolutions in Tunisia and Egypt are comparable to the overthrow of communism in Eastern Europe in 1989: an unpopular leadership deposed while the technocratic institutions of the state remained.

The situation in Libya is more like Iraq. Before the crisis, Libya’s institutions, both its state and financial system, were less robust and more politicized than those of Tunisia and Egypt.

As a result, Libya now must integrate the remnants of Gaddafi’s state with the National Transitional Council (NTC) while not alienating supporters of the old regime. At the same time, Libya must reintegrate about one million refugees (out of a total population of six million) who fled Libya during the fighting. Integrating the NTC’s forces with quasi-independent militias that fought Gaddafi in eastern Libya and what remains of Libya’s armed forces and police will be particularly challenging.

Despite the best will in the world, it will take time for the new Libyan state to live up to its motto of “Freedom, Justice, Democracy.”

Turning back to oil and gas, Nuri Berruien, the newly appointed chairman of the Libyan national oil company, told the Financial Times that “initial oil output will be measured in the 10,000s of barrels a day (b/d) rather than in the 100,000s of b/d…. In 15 months we can reach the pre-war level of 1.6m b/d. That is the optimistic forecast … But I think there is reason for optimism.”

Fortunately, the NTC has made clear that companies operating under Gaddafi are welcome to return to Libya, which should help output. Last month Italian and French oil majors restarted production, but a bigger challenge will be rebuilding Libya’s refineries and export terminals, most of which were seriously damaged in the fighting. The international community needs to continue its coordination of sufficient light crude to the market while waiting for Libya to restore exports.

If Libya is unable to fully restore production until 2013, as seems likely, then the NTC will need other means to fund government salaries, social services and reconstruction. Libya’s offshore sovereign wealth, estimated at around US$160 billion, is more than sufficient to do so, but the assets must be unfrozen. The largest part of Libya’s sovereign wealth is held in the US$65 billion Libyan Investment Authority (LIA), Libya’s poorly-managed sovereign wealth fund, which KPMG, its auditor, described as lacking “operational robustness to effectively manage investments of this complexity.”

Libya needs substantial help simply taking the measure of its sovereign wealth. The new government will need to establish a robust and transparent set of institutions to manage Libya’s sovereign wealth.

Implications for North Africa and the Middle East

While the challenges of restarting Libyan oil production and rebuilding the Libyan state are large, they are neither insurmountable nor unexpected. However, it is important to recognise that the repercussions of the Libyan revolution extend beyond its borders. Most notably, the positions of Qatar and Algeria have changed dramatically.

The Libyan revolution has cemented Qatar’s position as a regional leader. Qatar moved early to support the Libyan opposition through funding, supplying fuel, and marketing what oil it was able to produce. Moreover, the contribution of the Qatari air force to coalition operations and Qatar’s early recognition of the NTC as the legitimate government of Libya helped to justify intervention and boost support for the NTC in the Arab world.

Just as Libya’s revolution has boosted Qatar, it has weakened Algeria, the third-largest supplier of natural gas to the European Union after Russia and Norway. Algeria only recognised the NTC earlier last month, and a number of Gaddafi’s family members have fled to the country. Of the five North African countries of Morocco, Algeria, Tunisia, Libya and Egypt, three have had revolutions, and Morocco has begun an ambitious reform program to address social tensions.

Meanwhile, joblessness in Algeria grows and the success of the Libyan revolution leaves Algeria with fewer friends in the region. The US must be careful not to alienate Algeria when building its relationship with the new Libyan government and supporting Moroccan reform efforts.

Treading carefully will be even more important for Europe given its reliance on Algerian gas imports. Meanwhile, the international community needs to find ways to encourage Algeria to address its economic challenges and avoid further instability in the region. Given Algeria’s gas exports, it would be far more challenging to replace Algeria’s gas production than it has been to replace Libya’s oil production.

The Libya episode reminds us that energy really matters. Oil prices rose during the Arab Spring before any physical crude shipments were disrupted.

Lessons for Energy Security

Although oil markets replaced Libyan crude with other sources, high oil prices persisted throughout the Libyan revolution, contributing along with the European debt crisis to global economic decline, as reflected in global stock market weakness.

Things could have been much worse for the global oil market if Saudi Arabia had not replaced disrupted Libyan exports. Saudi Arabia did this by facilitating complex barrel swaps with sophisticated refineries in Asia which took heavy Saudi crude instead of previously contracted light crude, allowing primitive refineries in Europe to receive lighter, earlier-to-refine crude slates.

Although this coordination was successful, the major global energy institutions, OPEC and IEA, had no involvement. In fact, many of the Asian countries involved in these swaps are members of neither organisation. In order to cope better with future energy security problems, policymakers should consider whether energy security institutions should expand to include China and India and other large consumers currently outside the circle.

Finally, Europe should be glad it was Libya, not Algeria that had the revolution. While the global oil system was just barely able to cope with the disruption, it still pushed the world economy back to the brink of recession and wiped trillions of dollars off global stock markets.

As discussed in our last intelligence report on global gas security, it is unlikely the global gas system would be able to cope with a disruption on a similar scale. The gas system has no mechanism for international coordination and there is little effective spare export capacity.

If Algerian pipeline exports to Europe are disrupted, Qatar does not have sufficient liquefaction capacity to replace the gas. There is no global gas swing producer to play a coordinating role in the gas markets as Saudi Arabia does for oil, making a global institution for managing the gas market more important. In short, the Libyan revolution is a wake-up call not only for reducing oil dependence, but also for developing a robust global approach to natural gas security.

SOUTH KOREA: Hyundai Oilbank diversifying into commercial oil storage

(EnergyAsia, October 17 2011, Monday) — South Korea’s Hyundai Oilbank said it has started work on a 100-billion won commercial oil terminal with the capacity to store 300,000 kilolitres of oil products. (US$1=1,150 won).To be completed in late 2013, the terminal will be supported by port infrastructure and linked to the company’s refining hub in…

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SINGAPORE: Planners say economy faces slow growth for “several years” on global headwinds

(EnergyAsia, October17 2011, Monday) — Singapore’s planners say the economy faces “several years” of slow growth on account of strong headwinds created by the deteriorating global economy.With the major advanced economies unlikely to recover, the Ministries of Trade and Industry (MTI), and Finance (MOF) and the Monetary Authority of Singapore (MAS) are preparing the country…

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INDIA: Reliance Industries Q2 net up 16% on refining gains

(EnergyAsia, October 17 2011, Monday) — India’s Reliance Industries Ltd (RIL) said the strong performance at its world’s largest Jamnagar refinery complex in Gujarat state helped boost its second quarter profit by 15.8% to 57.03 billion rupees over the same period last year. (US$1=49 rupees). For the July to September quarter, the 1.2-million b/d complex’s…

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CHINA: Blackgold acquires Qijiang Changhong Coal in Chongqing province for 98 million yuan

(EnergyAsia, October 14 2011, Friday) — Australia’s Blackgold International Holdings Limited said it has agreed to fully acquire Qijiang Changhong Coal Industry Co Ltd which owns the mining rights to the QiJiang ChangHong coal mine situated in Qijiang County in China’s Chongqing province.The proposed 98 million yuan acquisition was completed after Blackgold said it had…

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CHINA: Winsway and US Peabody to expand relationship by jointly marketing coal in Asia

(EnergyAsia, October 14 2011, Friday) — Hong-Kong-listed Winsway Coking Coal Holdings said it and US coal trader and producer Peabody Energy Corp have signed a non-legally binding memorandum of understanding to establish a joint venture to market coal in China and the Asia Pacific region.As a step forward to enhancing their existing relationship, Winsway said…

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INDONESIA: Adaro to pay 200 billion rupiah for 35% stake in Sumatra coal mining services provider

(EnergyAsia, October 14 2011, Friday) — Indonesian coal miner PT Adaro Energy said its subsidiary, PT Alam Tri Abadi (ATA), has agreed to acquire a 35% interest in a Sumatra Island coal mining services provider from PT Servo Infrastructure (SI) for 200 billion rupiah. (US$1=8,900 rupiah).Through its subsidiaries, SMS owns a dedicated haul road in…

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SINGAPORE: Environment Ministry on enhancing energy efficiency, reducing waste and dealing with climate issues

(EnergyAsia, October 14 2011, Friday) — The Singapore government will work towards enhancing the country’s energy efficiency, reducing waste and dealing with climate change issues as part of its long-term goal of creating a sustainable and clean society.

The pledge, which described Singapore’s high quality environment as a source of competitive advantage, was made by the Ministry of the Environment and Water Resources (MEWR) in its addendum to the President’s Address in opening Parliament this week.

“Looking ahead, to improve our resilience and responsiveness to a changing landscape, we will enhance resource efficiency, improve infrastructure, strengthen capabilities, elevate standards and empower the community,” it said.

In enhancing resource efficiency, the ministry described the “strategic imperative” of using energy, water and materials more efficiently to both reduce pollution and bolster Singapore’s economic resilience.

Energy efficiency is one of the government’s key strategies to achieve environmental sustainability, energy security and economic competitiveness.

For the industry sector, the ministry will implement the Energy Conservation Act in 2013. Large energy users will be required to formulate energy efficiency improvement plans, appoint energy managers and to submit energy consumption data.

“We must also extract greater value from waste as a resource. We will encourage businesses and households to optimise resource management by promoting new recycling initiatives and incentivising businesses to minimise waste. We are also undertaking a comprehensive review of our public waste collection system to encourage recycling and waste reduction, while continuing to ensure good service standards and affordability of disposal fees.”

The ministry said it will continue to invest in infrastructure to ensure a safe and vibrant living environment.

Referring to last year’s disastrous floods which struck several parts of the county, it said:

“We take a serious view of flooding and will make all necessary efforts to alleviate future incidents. With the help of a panel of local and overseas experts, the ministry is conducting an in-depth review of all flood protection measures that will be implemented in Singapore over the next decade. In the meantime, we are continuing to enhance the drainage system and working with the public to ensure adequate flood protection for their properties.”

On climate issues, the ministry said it will “build capabilities”.

Working with the National Climate Change Secretariat, the ministry and its partner agencies will work towards enhancing Singapore’s resilience against the potential impacts of climate change.

It said: “Based on preliminary studies, we will need to raise minimum levels for land reclamation by at least 1m to create an adequate buffer against a potential rise in sea level.

“However, achieving resilience is not a once-off effort. Climate science is dynamic and climate conditions in our region are challenging to forecast. To improve our understanding of future localised climatic conditions, we will develop capabilities in climate science and modelling within the Government. We will also form networks with relevant experts and institutions at the forefront of climate research.”

The ministry said it will also focus on improving public hygiene and cleanliness, and will aim to empower the community to raise environmental standards.

“Sustaining a quality living environment relies on more than tighter standards and infrastructure improvements — ultimately it is people who make a city sustainable.

“We will explore how we can develop a more robust framework for environmental reporting by businesses and make environmental information more open to the public. We will consult more closely with the public on our policies, by developing more channels of communication. We will also continue to encourage good work by the community through our annual campaigns, cultivating strong environmental advocates and working closely with 3P (People, Private, Public) stakeholders to nurture environmentally-consciousness in our citizens.”