DUBAI: ENOC unit to start up new Jebel Ali oil terminal by end-2013, pipeline link to airport

(EnergyAsia, April 30 2013, Tuesday) — Horizon Terminals Limited (HTL), a subsidiary of Dubai’s Emirates National Oil Company (ENOC), expects to start up its new US$142-million oil storage terminal at Jebel Ali that will include a 60-km pipeline link to supply jet fuel to Dubai’s new Al Maktoum International Airport.

Supplied by both ENOC’s 120,000 b/d oil refinery and marine tankers calling at its jetties, the 141,000-cubic metre terminal will support the airport’s rapid growth by ensuring its rising demand for aviation fuel.

Yusr Sultan, Horizon Terminals’ managing director, said:

“With Dubai recording significant growth in its aviation sector, the new terminal has a strategic role to play in further strengthening operational efficiencies through assured jet fuel supply. It is equipped to meet the growing demand for jet fuel, in tune with the Dubai International Airport’s growth, which welcomed record passenger traffic of over 58.5 million last year. A strategic project for Dubai, ENOC and HTL, the terminal is being developed to the highest safety specifications, which is reflected in our safety milestone of one million safe working hours achieved.”

Established in 2003, HTL manages more than five million cubic metres of storage capacity in its network of nine terminals in the UAE, Saudi Arabia, South Korea, Morocco, Djibouti and Singapore.



NEW ZEALAND: Terminals NZ expands storage capacity as Z Energy mulls over fuel tank project

(EnergyAsia, April 30 2013, Tuesday) — Terminals NZ has added a 10.4-million-litre fuel tank at Port Tauranga near North Island’s Auckland city while Z Energy is considering building two 10-million-litre tanks to support operations at Lyttelton Port near Christchurch city in the South. Faced with rising fuel demand in New Zealand, oil companies are under…

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IRAN: Oil export volume, revenues down sharply due to sanctions, said US EIA

(EnergyAsia, April 30 2013, Tuesday) — Iran’s crude oil export revenues plunged 27% last year as sales fell to their lowest level since 1986, the result of tighter Western trade sanctions, said the US Energy Information Administration (EIA).

The agency estimated Iran took in US$69 billion in net oil export revenue last year, compared with US$95 billion the previous year. Oil accounts for 80% of Iran’s total export earnings and up to 60% of its government revenue, according to the Economist Intelligence Unit.

Iran’s exports of crude oil and lease condensate fell from 2.5 million b/d in 2011 to 1.5 million b/d last year. This 39% decline in exports was coupled with a 17% drop in crude oil and condensate production and a 1% decline in liquid fuels consumption.

While the world’s supply of oil increased by about 2%, or 1.8 million b/d in 2012, Iran’s production declined by nearly 700,000 b/d from the 2011 level, said the EIA. IRAN Oil export volume revenues down sharply due to sanctions said US EIA

Source: US Energy Information Administration (EIA)

The EIA attributed the bulk of last year’s production decline to tightened sanctions. A smaller decline in 2011 resulted mainly from declining production in aging fields. Iran remained the second-largest OPEC crude oil producer on average during 2012, but it exceeded Iraq’s production only narrowly. Last August, Iran’s monthly crude oil production fell below Iraq’s for the first time since 1989.

The EIA said the EU implemented a new set of sanctions on April 1, 2013 that bar EU insurance companies from providing coverage to any refiner and refinery operators that process crude oil of Iranian origin.

The new provision will mostly affect refiners in South Korea and India, which rely heavily on European insurance providers. The new sanctions may further affect Iran’s exports and production over the next few months as refiners try to find alternative suppliers of insurance.

The US and European Union (EU) have also tightened sanctions affecting investment in Iran’s oil sector, forcing international companies to cancel new investments and slowing down existing projects.

“Following the implementation of sanctions in late-2011 and mid-2012, Iranian oil production dropped dramatically. Although Iran had been subject to four earlier rounds of United Nations sanctions, these much-tougher measures passed by the US and the EU have severely hampered Iran’s ability to export its oil, which directly affected its production of petroleum and petroleum products,” said the EIA.

The latest sanctions have banned large-scale investment in Iran’s oil and gas sector, and cut off its access to European and US sources of financial transactions.

Further sanctions were implemented against the Central Bank of Iran, while the EU imposed an embargo on Iranian oil and banned European protection and indemnity clubs (P&I Clubs) from providing Iranian oil carriers with insurance and reinsurance. The implementation of insurance-related sanctions was particularly effective in stemming Iranian exports, which affected not only European importers but also Iran’s Asian customers who were forced to temporarily halt imports.


CHINA: Oil demand stays above 10 million b/d barrier after rising 3.5% in first quarter, says Platts

(EnergyAsia, April 30 2013, Tuesday) — China’s first-quarter oil demand rose 3.5% over the same period last year to 10.15 million b/d, continuing the previous quarter’s above 10-million b/d demand level, said US energy media Platts. However, the pace of demand growth has eased from the fourth quarter of 2012 when the year-over-year increase was…

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SINGAPORE: KPMG launches Global Energy Institute, held inaugural Global Energy Conference for the Asia Pacific

(EnergyAsia, April 29 2013, Monday) — KPMG held its inaugural Global Energy Conference in Singapore last Friday to coincide with the launch of its Global Energy Institute for the Asia-Pacific region.

The one-day conference brought together some 300 regional business leaders in the energy sector, along with members of government and academia to deliver insights on emerging energy trends, challenges and strategies in the sector.

KPMG said the institute, its first outside the US, serves as a platform to facilitate knowledge sharing for energy executives in Asia and other regions.

S. Iswaran, Singapore’s Minister in Prime Minister’s Office and Second Minister for Home Affairs and Trade & Industry, officiated at the institute’s launch and delivered the keynote address. He was joined by KPMG International’s global chairman, Michael J. Andrew, and KPMG Singapore’s managing partner, Tham Sai Choy.

Pek Hak Bin, head of KPMG’s Energy and Natural Resources practice in

Singapore, said:

“The unprecedented growth in energy demand and the resulting push for alternative energy initiatives in the ASPAC region present unique opportunities. The institute will serve as a knowledge-sharing platform, so that KPMG’s strong pool of energy specialists can reach out to the industry.

Kelvin Wong, an executive director at the Singapore Economic Development Board, described the launch of the institute as “a strong validation of Singapore’s status as the region’s premier energy hub, leveraging our strengths in refining, trading and logistics.”

“Firms like KPMG can centralise their Asia-Pacific knowledge resources in Singapore, and leverage the base of sophisticated lead demand here to develop new knowledge and consulting solutions, and serve their growing base of clients throughout Asia-Pacific,” he said.

Mr Pek also shared that the institute has already started conducting workshops, surveys and interviews with key energy stakeholders from the oil and gas industry in Singapore. The research will be collated into a report summarising opportunities for the ongoing development of Singapore’s oil and gas sector. It will be published later this year.

“Oil and gas demand within the region will continue to rise and Singapore must continue to play a significant role in growing the industry. While Singapore has positioned itself well, there is still room to be even better,” he said.

“Singapore could consider include developing a gas pricing mechanism. Opportunities could also be developed for Singaporean graduates and undergraduates to enroll into petroleum courses which empower them to enter careers in oil and gas.

“We have seen several examples of career and learning opportunities being created in the market to support the oil industry’s growth.”


INDIA: Hinduja’s Gulf Oil opens new lubricants blending plants in Ras Al Khaimah and Argentina

(EnergyAsia, April 29 2013, Monday) — The Gulf Oil International Group, owned by India’s Hinduja Group, has started up two new lubricants blending plants in Ras Al Khaimah in the UAE and Argentina.

Gulf RAK Oil, a joint venture of the Ras Al Khaimah government and Gulf Oil International, last month opened a lubrication manufacturing plant in Ras Al Khaimah’s Maritime City. The plant was commissioned by Ras Al Khaimah’s ruler, Shaikh Saud bin Saqr Al Qasimi, at a ceremony attended by Gopichand P. Hinduja, co-chairman of the Hinduja Group of Companies, M. K. Lokesh, India’s ambassador to the UAE, and government officials and business executives.

Sited on a 5.3-hectare plot, the plant has a blending capacity of 70,000 metric tonnes/year.

Frank Rutten, Gulf Oil’s international vice president, said:

“We are very pleased to launch our lubricant and grease manufacturing plant in Ras Al Khaimah. The plant is strategically located to enjoy easy accessibility as well as supportive trading policies which makes it viable for our products to be available at much more economical rates to the end user across the Gulf Cooperation Council (GCC) and MENA region.”

Two weeks ago, Gulf Oil started up a second lubricants plant at a location on the Acceso Oeste highway about 38 km from Buenos Aires in Argentina.

The highway links the main routes of the MERCOSUR customs union countries of Argentina, Brazil, Paraguay, Uruguay and Venezuela, which gives Gulf products an important logistical competitive edge in the region.

Occupying a 20,000 sq m site in an industrial zone, the new plant is well positioned for expansion from its current production capacity of 6,000 tons per year.

The company said it expects to raise capacity to 9,600 tons a year by 2016 and to 15,000 tons in five years.

Emilio Alvarez Cañedo, CEO of Gulf Oil Argentina, said:

“The new plant is the result of nearly a decade of strong business growth. Delivery in a timely manner has always been one of the great attributes of the company.”


SINGAPORE: Regulator and industry to meet again next month on guidelines for LNG imports

(EnergyAsia, April 29 2013, Monday) — Singapore’s energy regulator and natural gas companies will meet again next month to help shape guidelines on the import of additional volume of liquefied natural gas (LNG), said trade and industry minister S. Iswaran.

The Energy Market Authority (EMA) initiated the first round of industry consultations last year after UK’s BG Group had successfully placed 90% of its exclusive contract to import and supply the first tranche of three million tons to Singapore’s domestic users.

Amid increasing competition for LNG supplies throughout Asia, Singapore has been forced to quickly address the challenge of securing additional volumes. LNG prices in Asia have stayed strong in the US$14-$18 per million BTU range the last two years following the loss of Japan’s nuclear power capacity in the aftermath of its earthquake-tsunami tragedy.

China, India, South Korea and Southeast Asian countries have all joined in the global scramble for LNG supplies.

Singapore is scheduled to start up its first LNG import terminal this quarter after successfully importing its first cargo from Qatar last month. Starting with two tanks with a total capacity of 3.5 million tonnes, the terminal will be expanded to six million tonnes by end-2013 with the addition of a third tank. It will be expanded to nine million tonnes by 2015 to support LNG trading, redistribution and bunkering.

Speaking at the inaugural KPMG Global Energy Conference in Asia, Mr Iswaran said the new Jurong Island terminal will enhance Singapore’s energy security.

“Ultimately, our aim is to ensure that end users of gas in Singapore will have more options and flexibility in securing stable, secure and competitively priced gas to meet their needs,” he said.

With LNG set to play a significant role in the country’s energy mix, Singapore’s planners are seeking to implement an import framework that helps achieve energy security through a diversity of reliable supply sources while ensuring end-users receive competitively priced gas.

Mr Iswaran said regulators have several considerations in assessing what makes for a viable LNG import framework.

“First, while Singapore’s incremental gas demand in the near-term may be relatively small, our total demand for gas could eventually increase to about 15 million tonnes/year by 2024. It’s a substantial volume, and any procurement framework for future LNG must be able to effectively address this future demand for us.

“Second, future LNG import should enhance the price competitiveness of our gas supply and also help to minimise volatility. This could be achieved through a diversified portfolio of LNG from multiple supply sources and, where possible, a blend of contract durations and price indexation.

“Third, the future LNG import framework should take into consideration the available capacity and operational efficiency of the LNG terminal, and the number of users it can effectively accommodate.

“Finally, the framework should allow our domestic end users to benefit from opportunities that may arise from developments in the global gas market, such as the emergence of new gas supplies and movements in gas prices.”

Last year, the EMA published a consultation paper to seek industry views on the two options for Singapore’s future import of LNG.

The first was the model of the regulated sole importer as the framework which has been adopted by South Korea, Japan, Taiwan and Thailand. Under this framework, a regulated sole importer is tasked with procuring all future LNG demand for end users in the country. It also simplifies negotiations on terminal access and operational issues.

The second option is the multiple aggregator framework which has been adopted in the EU and the US. Under this model, importers could either be appointed by EMA through a competitive request-for-proposal process, or it could emerge from the natural competition between players in the LNG import sector, resulting in natural aggregation.

Mr Iswaran said there has been considerable debate over the strengths and weaknesses of these two models. Some industry players argue that demand aggregation under a sole importer would allow for scale in procurement that would help to secure more favourable LNG prices and terms. On the other hand, some are concerned whether a sole importer would be able to secure the most competitive terms for end-users. They note that allowing multiple aggregators will allow for price discovery, and that recent empirical data suggests that there are limits to the price advantage that can accrue to volume buying.

With the debate still far from resolved, he said the EMA will launch a second phase of industry consultation next month on a proposed LNG import framework for Singapore.


CHINA: France’s GDF Suez to look into developing storage and floating LNG projects

(EnergyAsia, April 29 2013, Monday) — Europe’s largest utility, GDF Suez SA, said it has signed separate agreements with two state-owned Chinese firms to jointly develop six natural gas storage sites in China as well as moor a floating import terminal off the country’s northeastern city of Tianjin. The French firm said it signed a…

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INDIA: Petronet signs 20-year deal to buy LNG from United LNG, may take stake in US export terminal

(EnergyAsia, April 26 2013, Friday) — India’s main gas importer Petronet LNG has signed an initial 20-year agreement with Houston, US-based United LNG to purchase four million tonnes of liquefied natural gas (LNG), the two companies have announced.

They are now discussing commercial terms including prices linked to Louisiana state’s Henry Hub that are expected to lead to a definitive sales and purchase agreement by end-2013. The deal will strengthen India’s position in on-going talks with Qatar, Australia and other LNG suppliers for prices to be linked to the cheaper Henry Hub index as opposed to oil.

State-owned Petronet, which already owns an LNG import terminal in India and expects to start up a second one in the third quarter, said it is interested to acquire a stake in the proposed Gulf of Mexico terminal that will export the fuel from 2018.

United LNG will source the gas and convert it into LNG from the proposed Main Pass Energy Hub project owned by Freeport-McMoRan Energy, LLC (FME), a jointly owned subsidiary of McMoRan Exploration Co and United LNG.

FME is helping to develop Main Pass Energy Hub into a facility to receive, store and condition natural gas for off loading to liquefaction storage and offloading vessels for export. FME said Main Pass has received a free trade agreement (FTA) licence from the US Department of Energy to export the maximum permitted volume of 24 million tonnes of LNG per year.

The company has also applied to the DOE for a licence to export LNG to a country like India that does not have an FTA deal with the US.

Petronet’s managing director and CEO, A.K. Balyan, said:

“Petronet LNG is delighted to have executed our first US-based LNG supply off take agreement and looks forward to moving ahead with United LNG and their JV partner Freeport-McMoRan Energy. As both a reliable and low cost LNG supplier, the USA is now the world’s prime target to secure LNG, and this agreement with United is another big step forward to meeting India’s growing demand for clean energy.”

Stephen Payne, chairman and general partner of Houston, Texas-based United LNG, LP said:

“Petronet is our largest single LNG buyer and our second customer on the Indian sub-continent. United LNG now has supply agreements totalling 12 million tonnes/year, which represent half of our total off-take capacity.”

In India, Petronet owns and operates a 10-million-tonne terminal at Dahej in Gujarat state and is completing the construction of a five-million-tonne terminal in Kochi in Kerala state. Shell holds a 74% stake in the 3.6-million-tonne Hazira LNG terminal in Gujarat state with Total the remaining 26%, while state-owned GAIL started up the country’s third import terminal at Dahbol in Maharashtra state in January with a five-million-tonne capacity.

As its demand for clean fuel rises, India expects to nearly triple its current 18.6-million-tonne LNG import capacity to 45 million tonnes by 2018.

In a recent op-ed article in the Wall Street Journal, the Indian ambassador to the US, Nirupama Rao, urged the US to approve LNG exports to her country as the deals would strengthen bilateral ties as well as bring economic benefits to both sides.



INDIA: ONGC aims to raise crude oil production by 9.5% to 28.6 million tonnes, eyes acquisitions in Africa, US

(EnergyAsia, April 26 2013, Friday) — India’s main upstream company ONGC is aiming to produce 28.6 million tonnes of crude in the current financial year ending March 2014, a 9.5% increase over last year’s 26.12 million tonnes. In an interview with a local TV station, chairman and managing director, Sudhir Vasudeva, said it will achieve…

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SAUDI ARABIA: Jubail refinery output will weaken global diesel prices in 2014, says US consultant

(EnergyAsia, April 26 2013, Friday) — Global diesel prices will weaken when state-owned Saudi Aramco starts up its 400,000 b/d refinery in Jubail in Saudi Arabia next year, said US consultant ESAI Energy.

The sophisticated plant will add to the supply of clean diesel in Saudi Arabia and Europe, markets currently supplied by India, said ESAI in its recently published Global Transport Fuel Outlook.

India’s private refiners exported close to 1.2 million b/d of products in 2012, 485,000 b/d of which was diesel. Due to its geography, India’s refiners have access to markets from the Atlantic Basin to Asia.

The penetration of diverse markets is particularly evident in the amount of diesel that India exported to key markets in 2012, said ESAI.

The Jubail refinery, a joint venture between Saudi Aramco and France’s Total, will have the capacity to produce 235,000 b/d of ultra-low sulphur diesel. From being a buyer of 85,000 b/d of diesel from India last year, Saudi Arabia will become a supplier and a competitor.

Additionally, Total is likely to export 70,000 b/d of its share of diesel production from the refinery to Europe, threatening the hold of India’s Reliance Industries on that market, said ESAI. India’s private refiners will have to look to other markets such as South Africa, Latin America and Asia.

“There are direct consequences for all key diesel markets,” said Vivek Mathur at ESAI Energy.

“Jubail will add to the availability of clean diesel to Europe, where demand continues to collapse. In 2014, the growing supply-demand mismatch will weaken the diesel spread to Brent. Unless India’s private refiners cut runs, they will have to target the Asian market. But with China’s emergence as a diesel exporter, competition among suppliers will likewise be bearish for Singapore gasoil spreads to Dubai.”


INDIA: Oil product exports expected to rise this year, said petroleum minister

(EnergyAsia, April 26 2013, Friday) — India’s export of oil products is expected to continue growing this financial year ending March 2014, said Minister of State for Petroleum and Natural Gas Panabaaka Lakshmi. In a statement to Parliament, she said India exported 60.8 million metric tonnes of oil products worth a total of US$59.3 billion…

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COMPANIES: China’s Wison and US engineering firm Black & Veatch to jointly pursue offshore LNG projects

(EnergyAsia, April 25 2013, Thursday) —- Wison Offshore & Marine Ltd, a subsidiary of China’s Wison Group, said it has signed a memorandum of understanding with US engineering firm Black & Veatch to jointly pursue barge-based natural gas liquefaction facility projects on an exclusive basis.

Shanghai-based Wison said it will hold responsibility for barge design and engineering, and overall project management, construction, delivery and financing of the integrated facility. Black & Veatch will provide the basic and detailed LNG plant designs, supply certain LNG equipment and components as well as provide commissioning services and process guarantees. The solution deploys Black & Veatch’s patented PRICO® liquefaction technology.

According to Wison, the agreement formalises a relationship between the two parties developed through their collaboration on the delivery of the first floating LNG liquefaction, storage and regasification facility. Announced last June, this unit is under construction at Wison’s fabrication facility in the Chinese city of Nantong.

Earlier this year, the partners signed an agreement for plans to develop similar units for clients in other markets.

“We are finding that the relationship we established with Black & Veatch on the first floating LNG project has proven to be extremely synergistic,” said L. Dwayne Breaux, Executive Vice President for Wison Offshore & Marine, Ltd.

“Formalising this relationship paves the way for us to continue jointly developing these systems and capitalising on the experience we have collectively gained from working on these ground-breaking projects.”

Robert Germinder, Black & Veatch’s oil and gas vice president, said:

“The industry is awash with news about potential floating LNG facilities while we’re actively building the world’s first. Demand for cleaner, alternative fuel sources is not slowing. With the right technology and approach, production of LNG at sea can become a commercial reality.”


INDIA: Oil imports from Iran down by 26.5% in FY2012

(EnergyAsia, April 25 2013, Thursday) — India said its crude oil imports from Iran fell by 26.5% in the last financial year ended March 31 on account of tougher Western trade and financial sanctions against the Islamic regime. Faced with restrictions to finance trade with Tehran and unable to secure tankers to take delivery of…

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QATAR: QPI ventures into North America gas through separate deals with UK’s Centrica and ExxonMobil

(EnergyAsia, April 25 2013, Thursday) — Qatar Petroleum International and UK energy retailer Centrica plc have teamed up to buy gas fields from Canada’s Suncor Energy for US$1 billion.

In separate statements, the companies said Suncor has agreed to sell the conventional portion of its natural gas business in Western Canada to a newly established partnership between Centrica plc and Qatar Petroleum International.

The UK-listed firm will own 60% of the business which is expected to produce around 42,000 barrels of oil equivalent per day, with 90% of that as natural gas. The partners set the foundation for their joint venture through a cooperation accord signed in December 2011.

The Suncor fields hold estimated reserves of 978 billion cubic feet equivalent, with potential for growth through the development of more than one million acres of undeveloped land.

The sale includes properties situated across the provinces of Alberta, northeastern British Columbia and southern Saskatchewan. Excluded are the majority of Suncor’s unconventional natural gas properties in the Montney region of British Columbia and the company’s Wilson Creek, Alberta unconventional oil assets, said Suncor.

Centrica CEO Sam Laidlaw said:

“The acquisition provides attractive returns in a region we know well, and significantly increases the size and quality of our portfolio. It has the potential to improve returns further.”

Separately, QPI has signed a memorandum of understanding with Exxon Mobil Corp to jointly evaluate and assess unconventional natural gas reserves in North America with an eye to developing LNG exports.

Nasser Al-Jaidah, QPI’s CEO, said the deal “signifies our joint interest in expanding our partnership both domestically and internationally in order to address the growing and evolving role of natural gas, which continues to play a larger role in meeting the needs of an increasing population.”



INDIA: Indian Oil Corp invites bids to build LNG terminal at Ennore

(EnergyAsia, April 25 2013, Thursday) — Indian Oil Corp, the country’s largest downstream oil company, is venturing into the liquefied natural gas (LNG) business with plans to build a five-million-tonne per year import terminal at Ennore in Tamil Nadu state. The state-owned oil refining and marketing firm is reviewing submissions to its invitation “seeking Expression…

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MARKETS: OPEC holds forecast for 2013 oil demand at 89.66 million b/d

(EnergyAsia, April 24 2013, Wednesday) — The Organisation of Petroleum Exporting Countries (OPEC) has slightly reduced its latest forecast for 2013 world oil demand to 89.66 million b/d, compared with its previous forecast of 89.67 million b/d in March and 89.68 million b/d in February. In its April report, the cartel expects this year’s global…

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MARKETS: IEA continues to slash global oil demand growth forecast for 2013

(EnergyAsia, April 24 2013, Wednesday) — For the fourth consecutive month, the International Energy Agency (IEA) has slashed its global oil demand growth forecast for 2013. In its April oil market report, the IEA also predicts that 2013 will be the third consecutive year of weak growth with global demand rising “only 795,000 b/d” down…

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CHINA: ICBC to finance construction of large oil refinery in Western Canada

(EnergyAsia, April 24 2013, Wednesday) — The world’s largest bank said it will provide financing for the proposed construction of a large export-oriented oil refinery in the port of Kitimat on the west coast of Canada.

The Industrial and Commercial Bank of China (ICBC) has agreed to provide financing for the project, estimated to cost between US$15 and US$18 billion, that will likely attract the participation of Chinese state companies like Sinopec and PetroChina. Another US$7 billion will be needed for the construction of pipelines to deliver oil sands from Alberta to the refinery.

Kitimat Clean Limited, a company owned by Canadian newspaper publisher David Black, which is fronting the project announced it had signed a memorandum of understanding with ICBC.

The MOU said ICBC has agreed to “be the Chinese financial advisor to Kitimat Clean and co-operate in the financing of the proposed Kitimat refinery and associated pipelines and other elements.”

“Chinese companies will be involved in the engineering and construction of the refinery” which could export all its production to Asia.

The statement also quoted Liu Yanping, the bank’s deputy head of corporate banking, and Huang Jifa, deputy head of investment banking, as saying that ICBC will “be working toward a comprehensive agreement to finance” the refinery, which will be owned and controlled in Canada. Sinopec and PetroChina will likely trade or ship the products to Asia.

While the British Columbia government has announced its support for the project, environmental and many First Nations aboriginal groups are expected to oppose it as the increased tanker traffic could threaten the region’s pristine waterways and forests.

INDIA: Government vows to continue importing oil from Iran

(EnergyAsia, April 24 2013, Wednesday) — India has vowed to continue to importing oil from Iran in defiance of US threats to punish countries for not following Western trade sanctions against the Islamic regime. In denying reports that New Delhi was bowing to Western pressure to stop trade with Iran, India’s Foreign Secretary Ranjan Mathai…

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INDIA: One year on, Mittal-HPCL refinery is dogged by protests, poor economics

(EnergyAsia, April 23 2013, Tuesday) — UK-based steel tycoon Lakshmi N. Mittal is finding out how tough it is to be an oil trader a year after venturing into the refining business through a jointly owned nine-million-ton per year plant in India’s Punjab state. Instead of thanking him for bringing prosperity, people living near the…

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QATAR: Next wave of LNG exports could be from North America, says consultant

(EnergyAsia, April 23 2013, Tuesday) — Qatar will derive greater commercial and political value from its new liquefaction capacity in the US than from adding to domestic capacity, said consultant Wood Mackenzie. Qatar Petroleum International (QPI) and ExxonMobil, which jointly own the Golden Pass regasification terminal in the US Gulf Coast, are looking to re-develop…

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SINGAPORE: SembCorp Industries secured separate power deals in India and the UK

(EnergyAsia, April 23 2013, Tuesday) — Singapore-listed energy and utilities company Sembcorp Industries said its subsidiaries have recently concluded two power deals in India and the UK.

The company’s jointly owned Thermal Powertech Corp India has secured a 25-year agreement to supply a total of 500MW of electricity to four power companies owned by the Andhra Pradesh state government.

Sembcorp said it will supply the electricity to the Central, Eastern, Southern and Northern Power Distribution Companies (APDC) from a 1,320MW coal-fired power plant in Krishnapatnam that will help the state close a power deficit running as high as 19% during peak periods.

The 68.7-billion rupee plant’s supercritical technology will enable it to enhance energy efficiency and reduce carbon dioxide emissions, said Sembcorp which owns a 49% stake in TPCIL through its wholly-owned subsidiary, Sembcorp Utilities. The majority 51% stake is held by Gayatri Energy Ventures, a wholly-owned subsidiary of India’s Gayatri Projects. (US$1=55 rupees).

In a separate deal, Sembcorp said it will be developing a new waste-to-energy plant on a 770-hectare industrial site in Teeside in the UK, making it the first outside Singapore for the company.

The plant has the capacity to produce up to 49 megawatts of gross power or 190 tonnes per hour of steam from municipal and commercial waste.

Sembcorp will have a 40% stake in the joint venture that includes Suez’s SITA UK (40%) and Japan’s Itochu Corp (20%) that will use up to 450,000 tonnes of municipal waste that would otherwise have gone to landfill.

The waste will be supplied by the Merseyside and Halton Waste Partnership under a 30-year contract, which the joint venture won through a competitive bidding process.

Tang Kin Fei, Sembcorp’s Group President and CEO, said:

“We are very pleased to embark on this project and to develop a new energy-from-waste facility at our Wilton International site, a quality industrial site that offers integrated services, from land, utilities to infrastructure, to customers there. This new energy-from-waste facility will complement our existing assets at the site to generate power and steam competitively, enhancing the competitiveness of our UK operations. It is also a significant milestone as we continue to grow our renewable energy capabilities.”


INDIA: Cairn’s Rajasthan fields could overtake Bombay High to become country’s largest producer

(EnergyAsia, April 23 2013, Tuesday) — Cairn India plans to invest 50 billion rupees to boost production at the country’s second largest oilfields in Rajasthan state from 175,000 barrels of oil equivalent per day (boed) today to 300,000 boed by 2016. (US$1=55 rupees). If Cairn succeeds, production from the 16 onshore fields in the northern…

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INDIA: GAIL secures half of Cove Point’s new liquefaction capacity in US for 20 years

(EnergyAsia, April 22 2013, Monday) — India’s only state-owned gas importing company said it has signed a 20-year deal to secure 2.3 million tonnes of export capacity in the Cove Point liquefied natural gas (LNG) terminal project at Lusby in the US state of Maryland. GAIL (India) Ltd said subsidiary GAIL Global (USA) LNG secured…

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