RUSSIA: US$400-billion gas deal with China faces a raft of challenges

(EnergyAsia, August 29 2014, Friday) — Three months after sensationally announcing their world-record US$400 billion gas supply agreement in Shanghai, Russia and China are facing a raft of challenges to meet the ambitious project’s targeted start-up from 2018. Under pressure from both governments, state-owned firms Gazprom and China National Petroleum Corp (CNPC) hurriedly set aside (more…)

CHINA: Gas production and consumption to rise further with contribution from Russia

(EnergyAsia, August 28 2014, Thursday) — Russia could supply about 10% of China’s natural gas demand in 2018 if the two governments are able to implement their ambitious plan to develop and pipe reserves from Siberia to the northern and eastern provinces of Asia’s largest economy. Both governments are hugely motivated to meet the 2018 (more…)

MARKETS: OPEC lowers oil demand forecast for 2014 and 2015

(EnergyAsia, August 28 2014, Wednesday) — Citing slightly slower economic growth, the Organisation of Petroleum Exporting Countries (OPEC) has lowered its forecast for global oil demand for 2014 and 2015, with the possibility of further reduction later in the year. In its August report, the cartel said it expects the world to consume 91.11 million (more…)

MALAYSIA: Wood Mackenzie tips Malaysia as potential challenger to Qatar’s LNG leadership

(EnergyAsia, August 27 2014, Tuesday) — Malaysia could displace Qatar and surprise as the world’s largest supplier of “flexible” liquefied natural gas (LNG) by 2020, said energy consulting firm Wood Mackenzie. In addition to building capacity through ownership of plants in Sabah state, Canada and Australia, Malaysian state energy firm Petronas is adding supplies through (more…)

INDIA: Prime Minister Modi launched oil storage depot in Jharkhand state

(EnergyAsia, August 27 2014, Wednesday) — India’s Prime Minister, Narendra Modi, has launched the country’s newest major oil storage depot in the country’s northeastern industrialising state of Jharkhand. Indian Oil Corp invested 1.1-billion rupees to develop the 31,600-cubic metre terminal on a 10.5-hectare site at Jasidih in Deoghar district. (US$1=60 rupees). India’s largest downstream firm (more…)

AUSTRALIA: Caltex’s first-half profit down but less than feared on reduced output from impending Kurnell refinery closure

(EnergyAsia, August 26 2014, Tuesday) —- Caltex Australia said its first-half profit fell 12.3% from year-ago levels to A$173 million caused largely by the impending shutdown of one of its two oil refineries and the weaker local currency against the US dollar. (US$1=A$1.08). But the decline was not as severe as feared when the listed (more…)

MARKETS: EIA continues lowering forecasts for global oil demand for 2014 and 2015

(EnergyAsia, August 25 2014, Monday) — For the third consecutive month, the US Energy Information Administration (EIA) has reduced its forecasts for global oil demand growth for 2014 and 2015. In its August short-term outlook on the energy markets, the agency expects the world to consume 91.56 million b/d this year and 92.96 million b/d (more…)

SINGAPORE: Global Green Economic Forum to focus on building a sustainable eco-system for business

(EnergyAsia, August 22 2014, Friday) — The second annual Global Green Economic Forum (GGEF), to be held next month at the Sands Expo & Convention Centre in Singapore’s Marina Bay Sands, will focus on building a sustainable eco-system for business. The gathering of more than 300 delegates will discuss four themes: building sustainable business practices, (more…)

CHINA: Qatargas delivers commissioning cargo to CNOOC’s seventh LNG terminal

(EnergyAsia, August 21 2014, Thursday) — China National Oil Corporation (CNOOC), the country’s largest liquefied natural gas (LNG) importer, has started up its seventh terminal on Hainan Island with the receipt of a first cargo from Qatargas on August 7. Qatar’s state-owned firm said it delivered the cargo on its super-size Q-Max class vessel Rasheeda, (more…)

AUSTRALIA: US Apache claims to have made new oil find containing up to 300 million barrels

(EnergyAsia, August 19 2014, Tuesday) — US-based Apache Corp said it has found as much as 300 million barrels of crude oil in an offshore well in Canning Basin off the coast of West Australia state. The Houston, Texas upstream company said it confirmed at least four discrete oil columns in the Phoenix South-1 well (more…)

MALAYSIA: Petronas’s 2Q profit up 47% on increased production

(EnergyAsia, August 18 2014, Monday) — Helped by a 6.3% rise in production, Malaysia’s state energy firm Petronas said its second quarter net profit surged 46.6% over the same period last year. The company said it earned a net profit of RM18.33 billion on revenue of RM85.36 billion in the April-June quarter compared with RM12.51 (more…)

AUSTRALIA: Consultant DW asks if rising cost makes the LNG sector “a lost cause”?

(EnergyAsia, August 14 2014, Thursday) — The following is an edited version of a commentary by Amanda Tay of UK energy consultant Douglas Westwood (DW). Recent news headlines on Australia’s liquefied natural gas (LNG) sector seem to be centered around its unsustainable rising costs. Woodside Petroleum had to ditch plans last year for its Browse (more…)

CHINA: An overview of the oil supply infrastructure

(EnergyAsia, August 13 2014, Wednesday) — To keep up with the pace of its domestic oil markets growth, China has greatly expanded its supply infrastructure over the past decade. There are plans for further investments, focusing mostly on the country’s storage and pipeline networks to enhance energy security. The following is a summary of an (more…)

PAPUA NEW GUINEA: InterOil aims to advance LNG project with new chairman and retirement of long-time investor

(EnergyAsia, August 12 2014, Tuesday) — InterOil Corp hopes to advance its long-delayed liquefied natural gas (LNG) project in Papua New Guinea with the appointment of a respected industry veteran as chairman in place of an early investor to follow on last year’s exit of the company’s controversial founder. Former BG Group Plc CEO Chris (more…)

NIGERIA: Canada-listed firm Oando pays ConocoPhillips US$1.5 billion for oil and gas assets

(EnergyAsia, August 11 2014, Monday) — Canada-listed Oando Energy Resources has completed the US$1.5 billion purchase of a collection of oil and gas assets in Nigeria from US upstream firm ConocoPhillips which is leaving the troubled African nation to focus on shale opportunities back home. After over a year of negotiations, Lagos-based Oando said it (more…)

AFRICA: Ebola adds to terrorism, unrest to threaten economic growth

(EnergyAsia, August 11 2014, Monday) — Fast-spreading deadly Ebola could outrank terrorism and political unrest as the biggest threat to Africa’s fast growing economies this year. Projected to grow by 7.2% this year, oil-powered West Africa, the centre of the epidemic, was slated to lead the continent’s emergence as the world’s fastest-growing to outpace Asia (more…)

INDONESIA: Government issues environmental permit for proposed US$12 billion Tangguh LNG expansion

(EnergyAsia, August 8 2014, Friday) — BP said it has cleared a “significant milestone” to expand its Tangguh liquefied natural gas (LNG) project after the Indonesian government issued an environmental permit in approving the environmental and social impact assessment for the US$12 billion investment. The permit, issued by the environment ministry, also outlines the role (more…)

LIBYA: Bleak outlook for economy and oil sector as fighting intensifies, foreign workers and diplomats flee

(EnergyAsia, August 8 2014, Friday) — Any hope for Libya’s oil industry to make a slow recovery after last month’s truce between government and rebel forces over two oil-exporting terminals has been extinguished by the latest round of fighting between rival militia groups that has sent thousands of foreign workers and diplomats fleeing. More than (more…)

AFRICA: US pushing for expanded trade ties with US$33 billion in new commitments

(EnergyAsia, August 7 2014, Thursday) — Trailing in second place to China, the US is targeting to raise its trade and economic ties with Africa with President Barack Obama announcing US$33 billion in new commitments from the Federal government and private companies at this week’s US-Africa Leaders Summit in Washington D.C. Obama’s Power Africa initiative (more…)

MARKETS: Oil prices unlikely to be affected by Western sanctions against Russia, says GlobalData

(EnergyAsia, August 6 2014, Wednesday) — Western trade sanctions against Russia in their dispute over Ukraine are unlikely to have a significant impact on world oil prices given the combined influence of other major geopolitical events already in play now, said UK based consulting firm GlobalData. Along with rising tensions between Russia and the West, (more…)

MARKETS: Gasoline markets to tighten as global demand growth set to outpace that of diesel in 2014, says EIA

(EnergyAsia, August 5 2014, Tuesday) — For the first time in recent years, the world’s demand for gasoline will grow faster than diesel in 2014 while at the same time, refiners will start up new capacity to produce more diesel and kerosene than gasoline, said the US Energy Information Administration (EIA). These two trends are (more…)

MARKETS: Oil prices down despite worsening geopolitics as conflicts in Ukraine, Gaza and Nigeria add to MidEast wars

(EnergyAsia, August 4 2014, Monday) — Forget geopolitics, crude oil prices fell through July as the world experienced one of its worst months of escalating conflicts in Ukraine and Gaza to add to the spreading religious, separatist, ethnic and resource wars in hydrocarbon-rich Iraq, Syria, Libya and Nigeria. North Sea Brent fell below US$105 a (more…)

AFRICA: PwC urges governments to provide regulatory support to promote oil and gas investment

(EnergyAsia, August 1 2014, Friday) — Regulatory uncertainty leads a host of factors standing in the way of Africa developing its estimated reserves of 130.3 billion barrels of crude oil and 501.7 trillion cubic feet (tcf) of natural gas, said consultant PwC. In its latest annual survey of the continent’s hydrocarbon potential, PwC also mentioned (more…)