(EnergyAsia, June 28 2013, Friday) — Amid the weaker outlook for world economic growth, the International Energy Agency (IEA) has reduced its forecast for this year’s global oil consumption to 90.56 million b/d, down from its previous May forecast of 90.64 million b/d. “Relatively sluggish macroeconomic conditions are expected to keep a lid on growth…
(EnergyAsia, June 28 2013, Friday) — The Organisation of Petroleum Exporting Countries (OPEC) said it is ready to downsize its forecast for global oil consumption growth this year in view of possible weakening in the world economy. In its June oil market report, the cartel kept its forecast for global oil demand virtually unchanged for…
(EnergyAsia, June 28 2013, Friday) — Singapore’s Sembcorp Industries said its joint venture firm, Thermal Powertech Corporation India (TPCIL), has secured a 20-year deal for coal supply to its 1,320MW power plant now under construction in Andhra Pradesh state.
Mahanadi Coal Fields, a subsidiary of state-owned Coal India, has agreed to provide an annual supply of 2.1 million tonnes of domestic coal from the second half of 2014 when the power plant comes onstream.
In February 2012, TPCIL secured its first coal supply contract with Indonesia’s PT Bayan Resources for one million tonnes per year for 10 years.
“Together, both contracts will supply approximately 60% of the plant’s total coal requirement. TPCIL is currently working with the relevant authorities in India to secure another fuel supply agreement for the plant by the later part of this year,” said Sembcorp, which owns 49% of TPCIL through subsidiary Sembcorp Utilities.
Gayatri Energy Ventures, a wholly owned subsidiary of India’s Gayatri Projects, owns the majority 51% of TPCIL, which is building the plant in Krishnapatnam in Andhra Pradesh’s SPSR Nellore District.
Sembcorp said the latest coal supply agreement will enable TPCIL to supply power to thousands of consumers in Andhra Pradesh and play an essential role in helping to reduce the severe shortage of power supply in the state and southern India.
The plant will also apply supercritical technology which allows for enhanced efficiency, thereby reducing emissions of carbon dioxide and other pollutants by consuming less fuel per unit of electricity generated compared to conventional sub-critical coal-fired generating units.
According to TPCIL, the project will be implemented in two phases, with the first unit of 660 megawatts to start up by mid-2014, and the second 660MW unit about six months later.
(EnergyAsia, June 27 2013, Thursday) — China National Petroleum Corp (CNPC) said a fully owned subsidiary has agreed to pay US independent Marathon Oil Corp US$1.52 billion for its 10% stake in an offshore oil and gas field in Angola.
Subject to government, regulatory and third party approvals, Sonangal Sinopec International Ltd will acquire the Houston-based firm’s stake in Block 31 to add to its existing 5% stake which was acquired from France’s Total.
BP owns a 26.67% stake in Block 31 through operator BP Exploration Angola. Its partners include Angola state-owned Sonangol E.P. (25%), Sonangol P&P (20%), Statoil Angola AS (13.33%) and SSI Thirty-One Limited (5%).
The block, which is though to hold more than 530 million barrels of oil reserves, is CNPC’s third major purchase this year.
Last week, the state-owned company said it will acquire a 20% stake in the US$20-billion liquefied natural gas (LNG) project in the Yamal project in northwestern Siberia. Three months earlier, CNPC agreed to pay US$4.2 billion for a stake in a natural gas field off the coast of Mozambique.
(EnergyAsia, June 27 2013, Thursday) — China’s largest oil and gas producing company has agreed to acquire a 20% stake in Russia’s US$20-billion Yamal liquefied natural gas (LNG) project for an undisclosed sum.
China National Petroleum Corp (CNPC) will join France’s Total as equal minority owners with operator Novatek, Russia’s second-biggest natural gas producer, still holding a majority stake of 60%.
The partners plan to build an LNG plant with an annual production capacity of 16.5 million tons, drawing on feedstock from the South-Tambeyskoye field which holds total proven and probable reserves of 907 billion cubic metres of natural gas.
They also plan to build transport infrastructure including a sea-port and an airport located at Sabetta in the north-east of the Yamal Peninsula.
The deal, signed in the Russian city of St Petersburg last week, will enable Novatek, controlled by billionaires Leonid Mikhelson and Gennady Timchenko, to gain access into the Chinese natural gas market.
As part of the agreement due to close on October 1, CNPC will purchase at least three million tons of LNG per year from Yamal as well as provide “active assistance” in helping to secure financing for the project from Chinese financial institutions.
CNPC chairman Zhou Jiping said his company’s entry into the Yamal project will help guarantee long-term LNG supply to China. We welcome the increase in Russian LNG supplies to China.”
Novatek chairman Leonid V. Mikhelson said:
“This agreement is a very important step in the implementation of the Yamal LNG project. We see CNPC as a reliable partner with considerable experience in international LNG projects, as well as a long-term buyer of LNG representing one of the fastest growing gas markets in the world. We are also looking forward to CNPC’s significant contribution into attracting external financing for the project”.
(EnergyAsia, June 27 2013, Thursday) — US crude oil production could nearly double to a high of 10 million b/d between 2020 and 2040 “under certain conditions”, said the Energy Information Administration (EIA) in its latest 30-year outlook report. These conditions include the actual level of crude oil resources available, the difficulty or ease in…
(EnergyAsia, June 26 2013, Wednesday) — A Shell-led joint venture firm in Nigeria said it will invest a total of US$3.9 billion in building the Trans Niger Pipeline loop-line (TNPL) oil pipeline and the second phase of the Gbaran-Ubie project to boost natural gas production in the West African country. The Shell Petroleum Development Company…
(EnergyAsia, June 26 2013, Wednesday) — HMS Bergbau AG, a Germany-based international coal producing and trading company, said it has sold its port operations in Indonesia as part of a plan announced in 2011 to focus on becoming “a pure-play trading and marketing company.”
Without disclosing details, the Berlin-based company said the sale will result in “a low loss on disposals” for 2013.
The funds from the sale will be used for securing exclusive marketing agreements with coal producers for the Frankfurt-listed company to focus on developing its markets in Asia and Africa.
“The aim of such agreements is to establish long-term customer and supplier relationships. In addition to stable sales and earnings contributions, the agreements that are usually concluded for longer periods offer HMS Bergbau AG a competitive edge in terms of ensuring coal supplies and complying with delivery commitments in particular,” it said.
(EnergyAsia, June 26 2013, Wednesday) — Iraq said it will meet India’s growing oil demand as the two countries pledged to expand economic relations following a meeting between their foreign ministers in Baghdad. Salman Khurshid’s visit, the first by an Indian foreign minister since 1990, was warmly welcomed by his Iraqi counterpart Hoshyar Zebari as…
(EnergyAsia, June 25 2013, Tuesday) — US major ExxonMobil has launched a new major laboratory in the Chinese city of Shanghai to provide analysis for lubricants and oil used in industrial machinery across the Asia Pacific region.
The company said its latest Signum laboratory, the fourth in the world, will offer the most modern oil analysis techniques and help customers in China and across Asia achieve preventive maintenance and ensure safety, environmental protection and efficiency in the production process.
Darren Talley, ExxonMobil’s Global Vice President of Marketing, and other senior executives along with customers and local Chinese officials attended the opening of the facility at its Shanghai Technology Center (STC) on June 19.
As the “lifeblood” of industrial machinery, ExxonMobil said lubricants protect critical components and help promote enhanced operation, just as blood supports health in the human body.
ExxonMobil will offer its Signum oil analysis programme, already in use at hundreds of companies around the world, to help others in Asia improve their industrial equipment performance and reduce costs.
As an example, ExxonMobil said the Tibet Dongga Power Plant, the main electricity supplier for Tibet, has benefitted from the programme through periodic monitoring of engines and lubrication status. The plant’s Sulzer 16ZAV40S Engine Dynamotors which operate under severe working conditions have been an important focus since it signed up for the programme in 2008.
Based on the Signum analysis reports, a Mobil field engineer submitted a flushing proposal to clean the company’s lubrication system, and suggested re-engineering oil purifier program when detected the filter and lubricants status were subdued.
“As a result, the Tibet Dongga Power Plant was able to save US$50,000 over the span of three years. These savings come from reduced filter consumption as well as reduced labor and lubrication oil analysis costs,” said ExxonMobil.
Oil analysis is based on a slate of tests designed to help evaluate the condition of internal hardware as well as the in-service lubricant. It is a quick and non-invasive way to gauge the health of a machine by looking at the oil’s contents.
At the Signum laboratory, specialists analyse a range of factors including the lubricant’s properties, suspended contaminants, and wear debris. Regular testing allows personnel to monitor contamination levels and guarantee the optimum lifespan of machines and other critical plant equipment.
Oil analysis also supports environmental awareness by ensuring the cleanliness and efficiency of hydraulic oil systems, combustion engines, and other industrial machinery.
In an interview with EnergyAsia, Bennett Hansen, ExxonMobil’s Asia Pacific Marketing Manager (Marketing & Technology), said the Signum laboratory now counts companies from the wind energy, mining, steel-making, power, cement, paper and petrochemical industries among its main customers.
“The new Signum Laboratory extends ExxonMobil global technology footprint in China and the Asia Pacific and enables us to better support our customers in the region,” he said.
“With our lubricant business growing steadily in China and the Asia Pacific, more customers are requesting superior oil analysis to improve machine efficiency and reduce downtime. The new laboratory will help meet our customers’ requests quickly through technical application expertise.”
Mr Hansen, who declined to reveal the investment cost for the new facility, said ExxonMobil is in the process of relocating its lubes technical help desk to the Shanghai Technology Center to better serve customers. It is also planning additional testing capabilities at the centre to enhance lube application expertise and to support collaborative programmes with OEMs and local universities.
(EnergyAsia, June 25 2013, Tuesday) — Russia fast-tracked its largest oil producer Rosneft towards global supermajor status by helping it secure a record number of landmark oil and gas agreements with international companies and two governments.
At the conclusion of last week’s 17th St. Petersburg International Economic Forum, Russian President Vladimir Putin announced and watched as the company signed at least 15 separate agreements with US major ExxonMobil, China National Petroleum Corp (CNPC), China Development Bank, Italy’s ENI, Norway’s Statoil, Japan’s Sakhalin Oil and Gas Development Co (Sodeco) and Marubeni Corp, GE of the US, Europe’s Vitol, Trafigura, SARAS and Sanors, and the governments of Croatia and Russia’s Murmansk region. There was even time for a memorandum of understanding with WWF to cooperate on nature conservation.
The most important of these agreements were for the world’s largest long-term supply of crude oil to CNPC worth more than US$270 billion, the groundbreaking liquefied natural gas deals with Japanese and European firms, and upstream development projects with ExxonMobil.
With ExxonMobil, Rosneft will establish joint ventures to explore and develop projects in the Kara Sea, Black Sea, and the Russian Arctic, and manage their joint West Siberia tight oil project.
Rosneft will work with Statoil to develop the Barents Sea and the Lisyansky, Kashevarovsky, Perseevsky and Magadan 1 blocks in the Sea of Okhotsk, as well as development of shale reserves in the Samara region. It and ENI will develop projects in the Barents Sea and the Black Sea under an earlier agreement signed in 2012.
US technology and engineering giant GE will provide support to improve Rosneft’s performance in upstream and downstream projects.
(EnergyAsia, June 25 2013, Tuesday) — China National Petroleum Corp (CNPC) said it has secured agreements to work on upstream and downstream projects in Costa Rica and Ecuador. During a visit to the two countries, chairman Zhou Jiping said China’s largest oil and gas producer was stepping up efforts to cultivate countries in Latin and…
(EnergyAsia, June 24 2013, Monday) — Russian energy major Rosneft has become a liquefied natural gas (LNG) supplier by securing its first long-term contracts last Friday with Switzerland’s Vitol and Japan’s Sakhalin Oil and Gas Development Co Ltd (Sodeco) and Marubeni.
In breaking Gazprom’s monopoly over the country’s LNG trade, Russia’s largest crude oil producer committed to an annual supply of 2.75 million tonnes to Vitol, 1.25 million tonnes to Marubeni and one million tonnes to Sodeco, all starting 2019.
The agreements were signed during last week’s St Petersburg International Economic Forum in the presence of Russian President Vladimir Putin. They coincided with the Russian government’s decision to allow Rosneft and ExxonMobil to jointly build and operate an export-oriented 10-million tonne/year LNG plant near Sakhalin Island in the Far East from 2018.
Vitol’s head of trading for Russia and the CIS Jeffrey Martz, Sodeco’s President Yoshiaki Umemura and Marubeni’s regional CEO for Europe & CIS Motoo Uchiyama signed on behalf of their companies, while Rosneft was represented by its president and chairman, Igor Sechin.
With the agreements, Mr Sechin said Rosneft has secured guaranteed sales of significant LNG volumes from the proposed plant.
Ian Taylor, Vitol’s President and CEO, said the landmark deal will diversify and strengthen its LNG supply line and expand “the possibilities of serving our clients in the Asia-Pacific region.”
The deal with Sodeco builds on its existing partnership with Rosneft in developing oil and gas reserves off Sakhalin Island. US major ExxonMobil, the operator, and Sodeco each own a 30% stake in the Sakhalin-1 project while Rosneft and India’s ONGC each have a 20% share.
Rosneft said the LNG agreement with Sodeco gives it access to “the strategically important Japanese natural gas market, the largest in the Asia-Pacific region.”
(EnergyAsia, June 24 2013, Monday) — Ships sailing the congested narrow straits off Malaysia and Singapore are at risk of accidents from poor visibility caused by record-thick smog set off by forest fires on the Indonesian island of Sumatra.
With more than 140 ships from oil tankers to container ships and passenger ferries sailing the Straits of Malacca and Singapore every day, the Singapore Shipping Association (SSA) said there was growing risk of accidents including oil spills if vessels collided.
For more than a week, Singapore and large parts of Malaysia have been enveloped by smog caused by uncontrolled burning of large tracts of rainforests on Sumatra. The governments of the three countries along with environmental groups have unanimously blamed large plantation owners of polluting the region’s air through their uncontrolled and indiscriminate burning to clear the forest for growing oil palm trees.
The annual forest-burning exercises, which inevitably cause the smog, have been taking place since 1996, but, astonishingly, no major companies have been brought to court.
The smog hit a record 401 on Singapore’s pollution standard index (PSI) last Friday, deemed to be potentially fatal to the elderly and those suffering from heart and respiratory illnesses. Many businesses have come to a standstill as people have been told to stay indoors. The Singapore government has warned that the environmental crisis could continue through August with no sign that the fires could be put under control soon.
“The SSA is gravely concerned with the effects of the worsening hazy conditions on the safe navigation of ships through the Straits of Malacca and Singapore,” the association said in a statement.
Daniel Tan, its executive director, said:
“Reduced visibility in such heavy shipping traffic will definitely affect the safe navigation of ships in the straits.
“In the event of any accident, human lives and the marine environment will be at risk, especially if it involves a fully laden very large crude carriers (VLCC).
“The oil spillage from the tanker can have serious consequences not only on the marine life in the straits but also affect the livelihood of fishermen and those who depend on the tourist industry.”
The SSA has advised ships to pay close attention to safety broadcasts and to navigate the straits in accordance with the International Regulations for Preventing Collisions at Sea.
It ended its statement by appealing to the Indonesian government “to put an urgent stop to the indiscriminate ‘slash and burn’ method of land clearing in Sumatra.”
Formed in 1985, the SSA represents more than 450 shipping companies and other businesses allied to the shipping industry. Its members include shipowners and operators, managers, agents, brokers, classification societies, marine insurers, bunker suppliers, maritime lawyers and bankers.
(EnergyAsia, June 24 2013, Monday) — The biggest oil producers in Russia and China have signed what could be the world’s largest long-term contract with Rosneft agreeing to supply 300,000 b/d of crude to China National Petroleum Corporation (CNPC) for 25 years starting 2015. Rosneft President and Chairman Igor Sechin and CNPC Chairman Zhou Jiping…
(EnergyAsia, June 21 2013, Friday) — Brazil’s state energy firm Petrobras said it has signed a letter of intent with China Petroleum and Chemical Corp or Sinopec build a 300,000-b/d oil refinery in South America’s largest country.
Petrobras, which is looking to build four similar-sized refineries to meet rising domestic fuel demand, said the two companies will study the feasibility of establishing a joint venture to build and operate the proposed US$20 billion Premium Refinery 1 in the northeastern state of Maranhao.
Petrobras, which is targeting to raise Brazil’s 1.9-million b/d refining capacity to three million b/d by 2020, has also signed an agreement with South Korea’s GS Energy to study the feasibility of building a 300,000 b/d in another part of the country.
(EnergyAsia, June 21 2013, Friday) — Despite a projected 5% p.a. rise in demand through 2018, the oil tanker market faces a struggle to recover as it “is still blighted by surplus capacity”, according to the latest findings by UK-based consultant Drewry Maritime Research.
“Prompt excessive ordering” could overwhelm the projected healthy 5% growth rate that will take tanker demand to 420 million dwt by 2018, said Drewry’s latest Tanker Forecaster report.
Tanker owners might catch a break from 2014 if the existing phase of overcapacity eases, with improved demand and some slowdown in supply growth. But this is not assured as investors might be tempted to make new orders given the current attractive prices for new builds.
“With seasonally weak demand in the second quarter, the short-term view for freight rates does not look positive. Global oil demand declined by 1% in the first quarter of the year to 89.9 million b/d, although some recovery in demand is likely in the second half of the year based on seasonal demand, which will push overall tonnage demand higher by 2% in 2013,” said Drewry.
A continuing supply of fresh tonnage through the year could put a lid on prices.
With 46 million dwt already added since 2010 and a further 17.1 million dwt (4%) due this year, utilisation will be poor and freight rates will not show any noticeable signs of recovery.
Longer term, the sector could be helped by an order slowdown and perhaps a gradual recovery of the world economy, with utilisation due to improve from 2014 along with a shift in trade patterns to support long voyage rates.
Drewry expects crude oil shipping from the main producing countries in Latin America, Africa and the Middle East to refineries in Asia to increase gradually, but this will be somewhat offset by weak shipping demand to the US and Europe. European refineries are experiencing shrinking margins while those in the US face rising domestic production and little expansion.
(EnergyAsia, June 21 2013, Friday) — Indonesians reacted with fury to the government’s announcement that gasoline and diesel prices will rise sharply from Saturday, June 22, to curb the country’s fuel deficit from further rising beyond last year’s record US$20 billion. As in the past, protests against any attempt to reduce fuel subsidies quickly degenerated…
(EnergyAsia, June 20 2013, Thursday) — Natural gas prices at Henry Hub will experience “significant” price volatility when the US starts exporting liquefied natural gas, said New York City-based consultant PIRA Energy Group.
In a study, entitled “Liquefied Henry Hub: The Repercussions of North American LNG Exports at Home and Abroad,” PIRA predicts the volatility will grow as more export capacity is approved and built.
While much of the market’s attention is now on how a Henry Hub link might lead to lower gas prices abroad, PIRA said “an equal, if not greater, concern” should be placed on how global markets will affect US domestic gas pricing.
With US LNG exports forecast to crest at around nine billion cubic feet/day (bcf/d) or 91 billion cubic metres/year (bcm/y) by 2025, including eight bcf/d (81 bcm/y) from the Gulf, the call on domestic gas production will account for five percent to 15% of the total.
“Depending on the degree to which this new form of demand is indifferent to North American market developments, the Henry Hub price ramifications will be substantial, at least in the short-term,” said study author Mickey Kwong.
The PIRA study addresses the multitude of gas price drivers around the world that will influence Henry Hub pricing when US begins exporting LNG later this decade. The study examines issues ranging from Russian gas production and seasonal gas use in a storage-short Europe to Japanese nuclear policy and bearable gas prices in Asia that will have a direct impact on Henry Hub prices on a daily basis much the way issues in the Mideast or West Africa influence crude oil prices.
Price volatility for Henry Hub will also be influenced by LNG-related changes in the supply/demand balances within North America. The timing of new supply, combined with domestic gas demand growth from low Henry Hub prices and the stability of LNG production, add significant layers of complexity to the movement of Henry Hub prices.
Extended periods of time will emerge when North American LNG exports are “in the money” and “out of the money” in the global gas market context. Exactly how lifters of North American LNG react to these external market forces will work their way back into Henry Hub pricing.
“The changing dynamic in the market is that the fairly insular world of North American gas markets and Henry Hub pricing will be immediately exposed to supply, demand, inventory, and pricing issues in other parts of the world,” said Ira Joseph, executive director of PIRA’s Global Gas Group.
“These factors were previously insignificant or ignored entirely by North American gas trade.”
(EnergyAsia, June 20 2013, Thursday) — Tethys Petroleum Limited said it has completed an agreement with France’s Total Exploration and Production and China National Petroleum Corporation (CNPC) for their subsidiaries to each acquire a one- third interest in its production sharing contract (PSC) in Tajikistan’s Bokhtar oil and gas field.
Tethys, listed on the main exchanges of Canada and the UK, will retain a one-third stake through 85%-owned subsidiary Kulob Petroleum Limited in a deal announced last December that was approved by the Tajik government this week.
At the signing ceremony in the capital city of Dushanbe, the new partners received a bonus when the government announced it had added more than 1,186 sq km of “highly prospective acreage” to their PSC and extended its first relinquishment period by five years to 2020.
The farm-in by two global energy giants will help Tethys, an independent oil and gas company operating in Central Asia, accelerate the development of the PSC which covers a 35,000-sq km area at the northern end of the prolific Afghan-Tajik basin. The Bokhtar PSC area is thought to hold 27.5 billion barrels oil equivalent of recoverable resources comprising 114 trillion cubic feet of gas and 8.5 billion barrels of oil.
Tethys, which also operates in Kazakhstan and Uzbekistan, said its partners will pay Kulob US$63 million for past costs and up to US$80 million for future work, leaving it to contribute only US$9 million to the 2014 work programme.
The partners will jointly set up Bokhtar Operating Company BV (BOC) to operate the PSC, located about 300km from the border with China, which is expected to be the main market for future production. BOC will begin a “large seismic campaign” in the PSC area, and decide on a first exploration well by end 2014, said Total. The full details of the programme will be announced later this year.
At the country’s Presidential Compound, Tajikistan’s Prime Minister Okil Okilov and Energy and Industry Minister Gul Sherali witnessed Bo Qiliang, President of CNPC subsidiary China National Oil and Gas Exploration and Development Corp (CNODC), Michael Borrell, Total’s senior vice president for Continental Europe and Central Asia, and David Robson, Tethy’s executive chairman and President, signed the farmed-in agreement.
Mr Borrell said: “This acquisition is aligned with our bolder exploration strategy and positions the Total group in one of the world’s most prolific gas basins. The partnership between the Total, CNPC and Tethys groups is particularly well equipped to conduct successful exploration and potentially develop a value-creating project.”
Dr Robson said: “This is a fantastic deal both for Tajikistan and for Tethys. We believe the Bokhtar PSC is a world class asset with enormous potential. The strengths brought to this project by our new partners, Total and CNPC, means we are in a position to explore and develop rapidly this potential.”
Mr Bo, who is also a vice president at CNPC subsidiary Petrochina, said:
“CNPC, as the world’s fifth largest oil company, has advanced exploration and development technology, and accumulated a wealth of experience in exploration and development in Central Asia. We are very willing to work with the Tajik government and partners to promote the oil industry development in Tajikistan.”
As China’s largest oil and gas producer and supplier, CNPC is also a world-leading oilfield service providers and a global engineering contractor. CNPC owns and operates the Central Asia China gas pipeline that starts at Gedaim on the border of Turkmenistan and Uzbekistan and runs through central Uzbekistan and southern Kazakhstan. It ends at Horgos in China’s Xinjiang Uygur Autonomous Region where it links up to CNPC’s Second China West-East gas pipeline.
(EnergyAsia, June 20 2013, Thursday) — In sharply cutting back crude oil imports from Iran to around 210,000 b/d, India is turning to Venezuela, Iraq and Oman to meet its rising demand. According to official data, India has reduced its Iranian oil imports by more than 40% in the first five months of the year…
(EnergyAsia, June 19 2013, Wednesday) — Myanmar government officials said a major infrastructure project to deliver oil and natural gas to China is on course to start up next month amid reports of delays caused by security issues and ethnic conflicts along the path of the pipelines. Starting from a new terminal being developed on…
(EnergyAsia, June 19 2013, Wednesday) — Malaysia’s plan to build a RM60-billion oil refinery-petrochemical complex in the southern state of Johor has run into operational problems that will delay its start-up by at least a year to 2017. (US$1=RM3.15). State energy firm Petronas, which is implementing the ambitious project located near Singapore, has blamed the…
(EnergyAsia, June 19 2013, Wednesday) — Hong Kong-listed Brightoil Petroleum Holdings Limited said it expects to complete the construction of a RMB1.32-billion yuan oil storage terminal on Waidiao Island in Zhoushan city in China’s Zhejiang province by the second half of 2015. (US$1=6.13 yuan).
The company said wholly owned subsidiary Brightoil Petroleum Storage (Zhoushan) Co Ltd has signed a contract with builder China Petroleum Pipeline Bureau to begin construction of the project’s first phase to store 1.94 million cubic metres of fuel oil, diesel, jet fuel and chemical products. It plans to add 1.22 million cubic metres of capacity a year later, boosting the Zhaoshan Waidiao Island project’s total to 3.16 million cubic metres.
The Yangtze Delta terminal will have 15 berths to handle vessels of sizes ranging from 1,000 to 300,000 deadweight tonnes (DWT).
Brightoil chairman and CEO Sit Kwong Lam said:
“We are pleased to sign the contract with China Petroleum Pipeline Bureau, which marks an important milestone in the development of our oil storage and terminal facilities business. Zhoushan is emerging as a major petrochemical and trading hub for East China and is strategically located to support the import and regional trade for the greater Yangtze River Delta region.
“It creates synergies with our project on Changxing Island in Dalian, an oil storage and facilities project under development. The commissioning of these two projects will bring us stable revenue from oil storage as well as oil trading opportunities. The group will continue to actively expand its oil storage and terminal facilities business.”
Brightoil is also constructing a 7.7-million cubic metre oil storage facility and terminal on Changxing Island in the northeastern city of Dalian facing the Bohai Bay.
(EnergyAsia, June 18 2013, Tuesday) — UK gas giant BG Group said it has completed the sale of its 65.12% stake in India’s largest private natural gas distributor to a firm owned by the Gujarat state government for 24.6 billion rupees. (US$1=58 rupees).
The deal is a follow through of an agreement that BG announced it had signed with Gujarat State Petroleum Corporation (GSPC) last October for the sale of its stake in Gujarat Gas Co Ltd (GGCL). BG said the sale was part of a broader rationalisation programme to focus its core business in the upstream sector including the production of liquefied natural gas.
“The transaction was completed after BG Group and GSPC received the necessary approvals from the Reserve Bank of India and the Competition Commission of India,” said the London-based company.
In March, BG announced it had signed an agreement to supply up to 2.5 million tonnes of LNG per year to Gujarat State Petroleum Corporation Limited (GSPC), starting with 1.25 million t/y from 2015 for up to 20 years.