MALAYSIA: Dialog, Vopak aim to start up 1.3-million cbm storage terminal by early 2014

(EnergyAsia, April 30 2012, Monday) — A Malaysian-Dutch consortium expects to complete the RM1.9-billion first phase of its oil storage terminal in Johor state by early 2014 that will include Southeast Asia’s first independent facility to handle crude oil. (US$1=RM3.05).

Owned by Malaysian engineering company Dialog Group, Royal Vopak of the Netherlands and the Johor state government, the 1.3-million cubic metre Pengerang Independent Deepwater Petroleum Terminal will compete as well as synergise with Singapore, home to Asia’s largest independent oil storage operations.

About a third of the capacity or 430,000 cubic metres will be use for crude oil storage, and the rest for products like gasoline, gasoil and jet kerosene.

The consortium is already planning to add another million cbm of capacity to meet the region’s growing demand for oil storage and blending.

Dialog and Vopak have formed a 51/49 joint-venture company to own a 90% stake in the terminal which includes deepwater jetty facilities of up to 24 metres depth to accommodate long-haul Very Large Crude Carriers (VLCCs).

The remaining 10% is held by State Secretary Johor Incorporated (SSI) on behalf of the Johor state government, which is planning to turn Pengerang town on the southeastern coast of Johor into a major regional oil and chemicals trading and storage hub.

The Malaysian government has announced an ambitious long-term plan to turn part of Johor state into a major economic zone with integrated oil-chemical manufacturing and trading as an anchor activity on a 91-sq km plot.

The Pengerang oil terminal will support the Iskandar development programme alongside state energy Petronas’s plan to build a RM60-billion oil refinery-petrochemicals complex. The 300,000 b/d refinery could start up as early as 2016.

Speaking at the April 26 groundbreaking ceremony of the Pengerang storage terminal, Johor’s Chief Minister Abdul Ghani Othman said:

“We are one step closer to realising our vision of becoming a regional player in the storage, processing and trading of oil.“Oil and gas has served us well as a nation. It is time to leverage on our unmatched natural and strategic advantages to position South Johor as a world leader in this booming industry.”

Dialog Group executive chairman Ngau Boon Keat said:

“Pengerang is strategically located near major international shipping lanes, has 24 metres deepwater port facilities and is close to petroleum production and demand centres in the Middle East, India and China.

“Pengerang has what it takes to grow to become a large oil refining and petrochemicals manufacturing centre and also an oil, petrochemical and LNG trading hub within the next five to 10 years.”

Vopak Asia President Patrick van der Voort said:

“The Pengerang terminal marks Vopak’s third presence in Malaysia, with two other terminals located at Kertih and Pasir Gudang. As the world’s largest independent provider of conditioned storage facilities for bulk liquids with 84 terminals in 31 countries worldwide, we have extensive expertise and experience managing terminals in different markets.”

Asia continues to grow in importance for Vopak. In FY2011, the company’s Asia division reported a 12% rise in operating profit to 185.3 million euro while revenue surged 13% to 308.7 million euros.

MARKETS: OPEC expects 2012 world oil demand to grow by 900,000 b/d to 88.6 million b/d

(EnergyAsia, April 30 2012, Monday) — OPEC has kept unchanged its forecast for world oil demand to rise by 900,000 b/d to reach 88.6 million b/d in 2012.
 
Continued strength in the emerging economies will offset weakness in the US and Europe, with the net result that the world economy is expected to grow by 3.3%, said OPEC in its monthly report for April.

It is holding its forecast for US economic growth for 2012 at 2.2% and Japan at 1.8% amid signs of recovery while the troubled Euro-zone will contract by 0.3%, worse off from OPEC’s previous call for minus 0.2%.

Despite inflation worries in the emerging economies, China’s is forecast to expand by 8.2% while India’s will rise by 6.9%.
 
OPEC expects US oil demand to remain uncertainty as high pump prices and the weak economy could dampen the upcoming driving season. OPEC sees hope in Japan as rising consumption is bolstering world oil markets.

The cartel expects non-OPEC oil supply to grow by 600,000 b/d in 2012, revised up by 30,000 b/d from the previous month. It attributed the increase to “healthy output” in the first few months of the year from North America, the former Soviet Union and China.

                                                                                                                                                                                                                                                

MARKETS: IEA expects oil prices to remain high despite rising global production, stockbuild

(EnergyAsia, April 30 2012, Monday) — World oil markets are starting to ease on rising OPEC production and the implied build-up of global stockpile to 1.2 million b/d for the first quarter, said the International Energy Agency (IEA).Gains in Saudi Arabia-led OPEC production to 31.4 million b/d in March and lower consumption in the West…

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CHINA: CNPC, PDVSA starts work on joint oil refinery in southern Guangdong province

(EnergyAsia, April 30 2012, Monday) — China National Petroleum Corp (CNPC) and Venezuela’s state PDVSA have started work on building a 400,000 b/d oil refinery in Jieyang in China’s southern Guangdong province. The US$8.3-billion refinery, the first of three proposed between the two countries, will process heavy Venezuelan crude oil when it starts operating in…

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SINGAPORE: Jurong Port to be redeveloped into oil and chemical storage terminal

(EnergyAsia, April 27 2012, Friday) — Singapore is looking to redevelop the general bulk handling Jurong Port into the more lucrative business of storing, handling and blending oil products and chemicals.Located just north of the oil and chemicals hub of Jurong Island, Jurong Port could be turned into a terminal to store up to four…

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INDIA: Government looking to set up US$10 billion strategic energy fund

(EnergyAsia, April 27 2012, Friday) — Following the example of China, the Indian government is looking to launch a US$10 billion strategic fund to secure long-term supplies of energy and raw materials to support the country’s economic growth.As a net importer of oil, gas and coal, and most raw materials, India often finds itself at…

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INDIA: Denied diesel price hike, oil refiners seek additional compensation of 400 billion rupees

(EnergyAsia, April 27 2012, Friday) — India’s long-suffering oil refiners are seeking an additional cash compensation of 400 billion rupees from the government to continue producing and selling fuel to domestic customers at a loss. (US$1=51 rupees).The government has repeatedly rejected the refiners’ request to raise fuel prices to reduce their operating losses from their…

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SINGAPORE: China Aviation Oil secures US$125 million syndicated loan from five banks

(EnergyAsia, April 27 2012, Friday) — China Aviation Oil (Singapore) Corporation Ltd (CAO), Asia’s largest physical jet fuel trader, said it has secured a revolving debt facility for US$125 million from a syndicate of the Singapore branch of five major banks.

Known as book-running mandated lead arrangers (BMLAs), ABN AMRO Bank NV, ANZ Bank, Bank of Communications Co Ltd, Crédit Agricole Corporate and Investment Bank, and UOB Limited will provide the facility for CAO and its subsidiaries to use as working capital.

CAO said other banks, which it did not name, are considering joining the facility, which incorporates an accordion feature for this purpose.

Meng Fanqiu, CAO’s CEO, said: “This internationally syndicated loan facility marks an important milestone in the company’s expansion of its trading activities through the establishment of a global trading network and will provide a greater degree of operational flexibility. This transaction has also enabled the company to significantly expand its global banking relationships.”

CAO, the sole importer of jet fuel into China, and its wholly-owned subsidiaries, China Aviation Oil (Hong Kong) Company Limited and North American Fuel Corporation, also supply jet fuel to airports in Hong Kong, Taiwan, Singapore, Dubai, Bangkok, Hanoi, Los Angeles, Anchorage, Amsterdam, Frankfurt, London and Auckland, and trades jet fuel and other oil products.

Singapore-listed CAO owns stakes in strategic assets and businesses, which include Shanghai Pudong International Airport Aviation Fuel Supply Company Ltd and China National Aviation Fuel TSN-PEK Pipeline Transportation Corporation Ltd and Oilhub Korea Yeosu Co Ltd.

CHINA: Black & Veatch’s technology to be used in LNG import terminal

(EnergyAsia, April 27 2012, Friday) — Two US engineering firms, Black & Veatch and Chemtex, have been selected by Jilin Qianyuan Energy Development to deliver a major liquefied natural gas (LNG) import terminal in north-eastern China by late 2013.

Black & Veatch said the 500,000 normal cubic metres/day plant will feature its patented PRICO® LNG technology to help liquefy inlet pipeline natural gas. The LNG will be used primarily by trucks and other vehicles as an alternative fuel to diesel and gasoline.

The plant will integrate a process to strip off high nitrogen levels in the pipeline feed gas. A special boil-off gas re-liquefaction system will also be installed to prevent unnecessary fuel loss and increase the efficiency of the plant.

Brian Zhang, business development manager for Black & Veatch’s oil and gas business in China, said:

“LNG delivers significant cost and environmental benefits over other fuels. Applied and delivered with the right technology, the value that LNG brings can supersede that of alternative fuel options.”
  
Kerry Erington, Services Projects Director for Black & Veatch’s oil and gas business, said:
 
“The demand for LNG as a clean, portable alternative fuel source is gaining momentum in China. Our successful partnership with Chemtex has allowed us to establish a trusted reputation and leading market position in China.”

The Black & Veatch-Chemtex team has won 14 projects in China since the start of the partnership in 2005. Chemtex will provide engineering, procurement and construction services for the project.

OMAN: Government pushes ahead with nearly US$8 billion of refinery projects

(EnergyAsia, April 26 2012, Thursday) — Ignoring the drumbeat of geopolitical tensions and military conflict in the region, the Omani government is pressing ahead with plans to invest nearly US$8 billion to build a new refinery at Duqm and expand an existing plant at Sohar.State-owned Oman Oil Company (OOC) and the Abu Dhabi-based International Petroleum…

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INDIA: Essar Oil, Hindustan Mittal operating new refining units

(EnergyAsia, April 26 2012, Thursday) — Essar Oil Ltd and Hindustan Mittal Energy Ltd said they have begun operating their recently completed new refinery units in India.Essar Oil said it has started up a delayed coker unit as part of the US$1.8 billion expansion of its Vadinar refinery in Gujarat state while Hindustan Mittal has…

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ASIA: ADB says growth of developing economies “subdued but steady”

(EnergyAsia, April 26 2012, Thursday) — Weak global demand will weigh on Asia’s developing economies in 2012 but growth rates in most economies remain robust and should tick back up in 2013 with private consumption providing support, the Asian Development Bank (ADB) said in its latest annual economic report.

In its Asian Development Outlook 2012 (ADO 2012), the bank has forecast Asia’s developing economies to grow by 6.9% in 2012 and 7.3% in 2013. GDP expanded by 7.2% in 2011 after growing 9.1% in 2010.

External trade was subdued in 2011, but domestic demand helped take up some of the slack, with the region’s current account surplus falling to 2.6% of GDP from 4% in 2010.

ADB said the region’s inflation is gradually easing, but remains a potential threat given volatility in food and fuel prices. A significant dip in investment late in 2011, and the possibility of growing unpredictability in foreign capital flows in and out of the region are other factors policymakers must be wary of.

The bank said East Asia will see slower growth of 7.4% this year compared with 8% in 2011, weighed down by weaker exports and investment. It expects China, the world’s second largest economy, to lead with growth at 8.5% and 8.7% for 2012 and 2013, down from 9.2% in 2011.

South Asia will also remain subdued with growth of 6.6% in 2012, tempered by weak demand and fiscal limitations. The pace of expansion will accelerate to 7.1% the following year, driven by the Indian economy, which is projected to rise to 7.5%, said the ADB.

Southeast Asia’s growth will quicken to 5.2% in 2012 from just 4.6% in 2011, thanks to the continued recovery in the Thai economy, which was damaged by floods last year.

Central Asia will see little change in economic activity for 2012, with projected growth of 6.1% reflecting the weak conditions in the eurozone and sluggish growth in the Russian Federation, said the bank.

It predicts growth in the Pacific will moderate to 6% in 2012 and 4.1% in 2013 as Papua New Guinea, the largest economy in the region, sees a winding down of infrastructure projects that stimulated growth in 2011.

Changyong Rhee, ADB’s chief economist, said:

“Continued uncertainties in the eurozone and a further slump in global trade pose the biggest threats to the growth outlook. At the same time, Asian economies are gradually diversifying into new markets, private consumption is trending up and the region has limited direct financial exposure to the eurozone which should help sustain its momentum.”

The bank said Asia must be ready to respond to any further major shocks in the eurozone which could stall an exports recovery, dry up trade finance or undermine key global supply chains. Most economies in the region have sharply improved finances in the wake of the 2008 global financial crisis and have the capacity to respond to further external weakness.

“There is no clear case for short-term policy responses, but if inflationary pressures build up again and capital inflows resume, there may be a need to readjust monetary policy to maintain price stability,” Mr Rhee said.

The bank said that longer term, policymakers will need to strike a balance between paying down debt while supporting growth that is both inclusive and environmentally sustainable.

NEW ZEALAND: Oil refining company set to invest NZ$365 million in new platformer unit

(EnergyAsia, April 26 2012, Thursday) — Shareholders of New Zealand’s only oil refinery are expected to approve its proposal to invest NZ$365 million in building a new unit to process crude into gasoline, kerosene and diesel. (US$1=NZ$1.23).

Shareholders are expected to vote in favour of the continuous catalyst regeneration platformer (CCR) project at The New Zealand Refining Company (NZRC)’s annual meeting on April 27.

Built in 1964, the 96,000 b/d plant at Marsden Point is in need of an extensive upgrade to the country’s rising demand for fuel. The plant now meets 55% of the country’s gasoline demand with imports the remaining 45%.

The government has welcome the project for enhancing New Zealand’s energy supply security while creating hundreds of jobs and reducing green house gas emissions from production of cleaner-burning fuels when it is completed by 2016.

Located in Whangarei on the country’s North Island, the refinery is owned by BP, Exxon Mobil, Aotea Energy Limited, Garlow Management Incorporated and Chevron, as well as approximately 3,600 private and institutional investors.

The majority of the company’s board voted on February 21 to support the  CCR investment which will be ultimately decided by a shareholder vote on April 27.

THAILAND: PTTEP reports 66% rise in Q1 net profit

(EnergyAsia, April 26 2012, Thursday) — High crude oil prices helped Thai state upstream company PTT Exploration and Production Pcl (PTTEP) report a 66% gain in its first quarter net profit to 18.288 billion baht. (US$1=31 baht). It earned 10.979 billion baht for the same quarter last year.

PTTEP, a subsidiary of state energy firm PTT Pcl, said it earned 5.51 baht per share for the January to March period.

Anon Sirisaengtaksin, PTTEP’s President and CEO, said the company and its subsidiaries reported a 24% gain in revenue to 50.448 billion baht on the back of an increase in its average sales price of US$64.79 per barrel of oil equivalent (BOE) compared with US$49.36 per BOE in the same quarter last year.

The company said its Q1 sales volume was down to 253,411 boe/day compared with 271,292 BOED in the same period last year. It attributed the decline to last November’s production contract termination and the sales volume of natural gas and condensate of the Arthit North project.

PTTEP said it has started processing between 50,000 and 70,000 million standard cubic feet/day (MMSCFD) of natural gas and up to 4,000 b/d of condensate at its Bongkot South field.

SINGAPORE: Sembcorp opens S$34 million waste-to-energy (WTE) plant on Jurong Island

(EnergyAsia, April 25 2012, Wednesday) — Sembcorp Industries yesterday officially started up a S$34 million woodchip-fuelled biomass steam production plant on Singapore’s Jurong Island as part of its offering to supply sustainable and competitive energy to customers. (US$1=S$1.25).

Sembcorp said its first waste-to-energy (WTE) plant in Singapore produces 20 tonnes per hour of steam using waste wood collected and processed by its solid waste collection business.

The company said it will develop a second woodchip boiler to produce another 40 tonnes per hour of steam by 2013. Combined, the two boilers will reduce carbon dioxide emissions by an estimated 70,000 tonnes a year.

Sembcorp said it will also be building two new WTE boilers on Jurong Island to produce a total of 140 tonnes of steam an hour using industrial and commercial waste supplied by the company’s waste collection business.

By 2014, the company would have increased its WTE capacity by ten-fold and would be supplying one-third of the steam for its customers on the island’s Sakra sector using alternative fuel.

With its integrated group expertise, Sembcorp said it has the capability to manage the entire WTE value chain.

Sembcorp’s solid waste management arm collects and recovers recyclables, timber, hardcore and fines from industrial and commercial waste as well as construction and demolition waste.

By recovering waste wood meant for incineration and processing it into woodchip fuel, Sembcorp creates value from waste and improves the competitiveness of industry on Jurong Island while reducing greenhouse gas emissions.

Ng Meng Poh, Sembcorp’s Executive Vice President, Singapore and ASEAN (Utilities), said:

“Our woodchip boiler plant is significant for Sembcorp in our journey as a vital partner to the industry on Jurong Island. It is also a step forward in our strategy to grow our portfolio of renewable energy assets, and in particular, to offer sustainable and competitive energy-from-waste solutions to our customers in Sakra.

“This solution provides an alternative economical source of energy for our customers on Jurong Island while leveraging synergies between our solid waste management and energy businesses.”

MIDDLE EAST: Petrochemical feedstock supply affected by natural gas scarcity, says consultant GlobalData

(EnergyAsia, April 25 2012, Wednesday) — Securing natural gas feedstock in the Middle East has become increasingly difficult in the last few years, threatening the region’s dominance as the most economical petrochemicals producer, according to a new report by business intelligence company GlobalData.

The report said the Middle East is facing a natural gas scarcity due to increasing demand  and inefficient utilisation of subsidised natural gas by energy-intensive industries in the region.

Over the last decade, the region developed its huge natural gas reserves into a source of cheap feedstock to realise its goal of becoming a global hub for petrochemicals production.

Petrochemical companies were able to purchase subsidised natural gas at a cost 60-70% cheaper than their competitors in Europe and North America, said GlobalData.

However, over time, the subsidies offered by natural gas producers such as Saudi Arabia, Iran and Qatar have led to inefficient use of the fuel and rapid decline in the supply of ethane, a key feedstock for petrochemicals. This could seriously affect the long-term profitability of the petrochemicals industry in the Middle East.

GlobalData said the Organization of Petroleum Exporting Countries (OPEC)’s quota on crude oil output will also limit associated natural gas production. Middle East countries are not producing enough natural gas to Despite all Gulf countries producing more than their allotted quota, production is insufficient to meet the burgeoning collective demand for natural gas from the power, transportation and petrochemical sectors.

According to Global Data, Saudi Aramco, the sole supplier of ethane in Saudi Arabia, stopped allocating ethane to new petrochemical projects in 2006, while customers with supply agreements have not been receiving their allocated limits since 2009.

Iran has been unable to increase ethane supplies due to the lack of investments in its non-associated gas reserves while Qatar has imposed a moratorium on further development of gas reserves and has stopped allocating supply for industrial projects until 2014.

GlobalData said its report,“Petrochemical Industry – Key Geographies Experiencing Change in Feedstock Scenario,” provides an in-depth analysis of the petrochemical feedstock supply scenario in key locations while explaining the reasons for a decrease in the supply of ethane feedstock in key producing areas like the Middle East and Canada. It also explains the impact of new oil and gas discoveries on the petrochemicals industries in the US, Brazil and Canada.

JAPAN: Consortium to build experimental offshore floating wind farm project off Fukushima

(EnergyAsia, April 25 2012, Wednesday) — A Japanese consortium led by Marubeni Corp has started work to develop an experimental offshore floating wind farm project off the coast of Fukushima, the site of the nculear plant that was damaged by earthquake and tsunami last year.

Sponsored by the Ministry of Economy, Trade and Industry, the project consists of three floating wind turbines and one floating power sub-station. The consortium will build a 2MW floating wind turbine, the world’s first 66kV floating power sub-station and undersea cable in the first stage, to be followed by two 7MW wind turbines in the second stage between 2013 and 2015.

The consortium’s other members are the University of Tokyo, Mitsubishi, Mitsubishi Heavy Industries, IHI Marine United, Mitsui Engineering & Shipbuilding, Nippon Steel, Hitachi, Furukawa Electric, Shimizu and Mizuho Information & Research.

In a statement, the consortium said Fukushima Prefecture expects the project to spawn a new industry in renewable energy and create employment as part of its recovery efforts following the devastaton of the Great East Japan Earthquake.

One of the project’s key objectives is to ensure the harmonious co-existence of the fishery industry with the offshore wind farm industry. The consortium said it will work hard to build good relations with the local fishery industry while commercialising this offshore wind farm project.

Longer term, it aims to create and deploy large scale floating wind farms, first for use in Japan, and later, for export to world markets.

IRAN: Refineries, oil facilities targeted by hackers and computer viruses

(EnergyAsia, April 25 2012, Wednesday) — The Iranian government has cut off Internet access to six of the country’s oil refineries after it came under attacks from hackers and computer viruses.

According to the Iranian Mehr News Agency, the attacks launched against the refineries, the Oil Ministry, the National Iranian Oil Company and the country’s other oil agencies were detected on April 22 but were stopped after causing some damage.

The report did not state the extent of the damage and the refineries affected by the Internet shutdown. The terminal at Kharg Island, which handles about 90% of Iran’s oil exports, was also affected.

According to Wikipedia, Iran has nine refineries: Abadan (450,000 b/d), Isfahan  (265,000 b/d), Bandar Abbas (232,000 b/d), Tehran (225,000 b/d), Arak (150,000 b/d), Tabriz (112,000 b/d), Shiraz (40,000 b/d), Kermanshah (21,000 b/d) and Lavan (20,000 b/d).

CHINA: Platts says March oil demand showed mixed performance, up 2.2% in Q1

(EnergyAsia, April 25 2012, Wednesday) — China’s oil demand turned in a mixed performance for March, rising year-on-year, but down from February, said energy media specialist Platts.

Its analysis of government data showed that Chinese oil demand rose 3.3% from year-ago levels to 40.23 million metric tons (mt), or 9.5 million b/d. But, this was down from the consumption levels of February (9.75 million b/d) and January (9.63 million b/d).

For the first quarter, China’s overall apparent oil demand rose by 2.2% year on year to an average 9.63 million b/d, buoyed by higher refinery runs and net oil product imports.

“That’s actually a recovery in the growth rate from the slowdown we saw hit in the fourth quarter of last year,” said Song Yen Ling, Platts Senior Writer for China.

“Growth rates have bounced back up to 2%-3%, as refiners stocked up ahead of the long Lunar New Year holiday and ahead of refinery turnarounds coming in the second quarter and seasonal diesel demand in the country’s spring growing season.”

Platts said China’s apparent oil demand grew just 0.7% year on year in December last year and by 1.6% in the fourth quarter.

China does not release official data on oil demand or commercial and strategic oil inventories. Platts calculates the country’s oil demand based on official data on refiners’ crude throughput and net oil product imports.

Platts said analysts expect overall demand growth to accelerate in the coming months because of likely increased demand for diesel during the planting season in the agricultural sector.

Higher manufacturing activity and bank loan growth in the economy also indicate oil demand could expand more in the second and third quarters.

However, there is likely to be some moderation in refinery runs as maintenance turnarounds start to kick-off in April and May, Ms Song said.

Data from China’s National Bureau of Statistics (NBS) released April 13 show China’s refinery runs in March rose 1.9% year on year to 38.37 million mt or 9.07 million b/d. Daily runs in March were 2.6% lower than February’s average of 9.31 million b/d.

According to customs data officially released by China’s Customs Statistics (CCS) on April 21, crude oil imports in March totaled 23.55 million mt (5.57 million b/d). This is an increase of 8.7% year on year and down 6.7% from February’s 5.97 million b/d.

Platts said crude exports were 210,000 mt (49,700 b/d), representing a 38.2% drop from the same period last year.

Oil product imports in March rose 1% to 3.92 million mt (902,900 b/d) while oil product exports slid 20.2% year on year to 2.06 million mt (474,500 b/d).

In the first quarter, China’s average daily refinery processing rate was 9.26 million b/d, up 2.2% year on year. Oil product imports fell 3.2% to 846,600 b/d while oil product exports were down nearly 9% to 475,500 b/d, meaning net oil product imports into China rose 5.1% year on year to 371,100 b/d.

MIDDLE EAST: IMF says high oil prices putting importers “under strain” while exporters “faring well”

(EnergyAsia, April 24 2012, Tuesday) — The oil importers of the Middle East need help as they have been additionally put “under strain” by high oil prices amid the new political and social pressures brought on by the Arab Spring, said the International Monetary Fund (IMF). With crude oil price projected to average US$115 a…

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DUBAI: ENOC’s Horizon Terminals to build bulk oil terminal in Jebel Ali

(EnergyAsia, April 24 2012, Tuesday) — Dubai’s ENOC said its wholly-owned subsidiary, Horizon Terminals Ltd, will build a 141,000-cubic metre bulk oil terminal in the Jebel Ali Free Zone and a 60-km jet fuel pipeline linking it to the Dubai International Airport.

Horizon Terminals has awarded the engineering, procurement and construction contract to Indian construction firm Punj Lloyd Ltd, but did not disclose its value.

Apart from the tanks, Punj Lloyd will build and develop a tanker truck loading system connected to the tanker berths and support infrastructure. The proposed pipeline linking Jebel Ali Free Zone to the airport will include a branch line at the new Dubai World Central (DWC) airport for future expansion.

Speaking at the contract signing ceremony, Saeed Abdullah Khoory, ENOC’s CEO, described it as a “strategic project” that will boost the Dubai economy while meeting the company’s long-term investment objectives.

Ravindra Kansal, President and CEO of Punj Lloyd for the Middle East, Africa & CIS, said:

“The Middle East is a very important market for us. Our strong focus on the region, complemented by our proven track record in the EPC domain has created a niche for Punj Lloyd in the region. With this contract win, we further our commitment and focus on the UAE.”

Established in 1993 as a wholly-owned company of the Dubai government, ENOC aims to promote the interests of its shareholders through investment in the oil and gas sector.

INDIA: Strategic crude oil stockpile could be expanded to over 17 million tonnes

(EnergyAsia, April 24 2012, Tuesday) — The Indian government is considering boosting the size of the country’s strategic crude oil stockpile to over 17.8 million tonnes from the current target of 5.33 million tonnes. With state Indian Strategic Petroleum Reserves Ltd (ISPRL) expected to complete building storage terminals at Vishkhapatnam, Mangalore and Padur in 2013…

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SINGAPORE: Keppel Energy signed up for additional 43 million cubic feet/day of gas import from Malaysia’s Petronas

(EnergyAsia, April 24 2012, Tuesday) — Singapore’s Keppel Corporation Limited said its wholly-owned subsidiary, Keppel Energy Pte Ltd, has signed an agreement with Malaysia state energy firm Petronas to import an additional 43 million cubic feet per day (mmcf/d) of natural gas.

Based on historical oil prices, Keppel Energy said the additional supply, worth about US$2.2 billion, would be used to support the energy needs of its customers.

Petronas signed its first contract to supply up to 120 billion British Thermal Unit (Bbtu) per day or up to 115 million standard cubic feet (mmscf) per day of natural gas to Keppel Energy in 2005. The gas started flowing in mid-2006 for a period of up to 18 years.

INDIA: Short-term diesel shortage looms as refineries shut down

(EnergyAsia, April 24 2012, Tuesday) — India faces a near-term shortfall of diesel following the unexpected loss of about 8% of its total refining capacity this month when two refineries were forced to shut down for several weeks. The 60,000 b/d Numaligarh refinery in Assam state remains idle after it was damaged by fire early…

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AUSTRALIA: BHP shuts Norwich Park coal mine “indefinitely“

(EnergyAsia, April 23 2012, Monday) — Australia’s BHP Billiton said it plans to indefinitely cease production at its loss-making joint-venture Norwich Park coal mine in central Queensland state that the Queensland Resources Council said could result in the loss of about A$1 billion worth of coal exports. (US$1=A$0.96).In a statement, the company said the BHP…

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