MARKETS: IEA says strong oil demand growth unable to mop up global oil glut

(EnergyAsia, August 31 2015, Monday) — The world will still face an oil supply glut even after adding nearly three million b/d to total consumption between last year and 2016, said the International Energy Agency (IEA). In its August report, the Paris-based agency said global oil demand will rise by 1.6 million b/d or 1.73% (more…)

MARKETS: EIA predicts US production decline in 2016, dragging down global supply growth

(EnergyAsia, August 31 2015, Monday) — After years of strong growth, US oil and liquids production will decline in 2016 to weaken the world’s supply increase, said the US Energy Information Administration (EIA) in its August monthly report. The forecast for the production decline is significant as it finally halts the runaway US oil industry (more…)

MARKETS: Oil prices remain under pressure as OPEC boosts supply forecast for 2015 and 2016

(EnergyAsia, August 29 2015, Saturday) — Oil producers outside the Organisation of Petroleum Exporting Countries (OPEC) will continue to raise supply over the next two years despite the pressure of falling prices, the cartel said in its latest monthly report. Led by the US, non-OPEC members will boost production by 1.68% to 57.46 million b/d (more…)

INDIA: State firms looking to activate agreement to import LNG from Iran

(EnergyAsia, August 28 2015, Friday) — India wants to activate a shelved decade-old agreement to import liquefied natural gas (LNG) from Iran as the Islamic regime prepares to be freed of international trade sanctions following breakthrough talks with six world powers over its nuclear energy programme. Petroleum Minister Dharmendra Pradhan told India’s Parliament that state-owned (more…)

MARKETS: Refiners face imbalance of global gasoline glut and middle and heavy products deficit, says Wood Mackenzie

(EnergyAsia, August 27 2015, Thursday) — Refiners will face an unbalanced global products market as early as 2017 pitching a gasoline surplus with a deficit in middle distillates and fuel oil that could start undermining profitability, said UK consulting firm Wood Mackenzie. For now, downstream companies are reaping high refining margins as a result of (more…)

CHINA: Weak demand push thermal coal prices to lowest since May 2007

(EnergyAsia, August 22 2015, Saturday) — Slowing energy demand from China and India has pushed Australian thermal coal prices to their lowest levels in over eight years. Amid renewed selling pressure, the fuel’s monthly average price for August is expected to close below July’s US$63.58 per tonne, just above May 2007’s close of US$60, and (more…)

MALAYSIA: Vitol’s VTTI acquires MISC’s oil storage stake for US$830 million

(EnergyAsia, August 22 2015, Saturday) — Swiss trading giant Vitol Group will fully own a Malaysian oil storage terminal after completing the US$830 million purchase of its local partner’s 50% share later this year. MISC Berhad, which had acquired its stake in VTTI B.V. from Vitol for US$735 million in May 2010, said it plans (more…)

IRAN: Oil supply could surge even before conclusion of nuclear deal with six world powers

(EnergyAsia, August 21 2015, Friday) —Kept out of the international market by trade sanctions for years, Iranian oil could be flowing again a lot sooner than expected following Tehran’s July 14 breakthrough talks with six world powers over its nuclear energy programme. The six, known as the P5+1 group, include the five UN Security Council (more…)

CHINA: Economy faces vulnerabilities and challenges adjusting to slower growth, say IMF and World Bank

(EnergyAsia, August 19 2015, Wednesday) — China faces “financial vulnerabilities” and “challenges” as its economy adjusts to a new era of significantly slower growth, according to recent separate reports by the World Bank and the International Monetary Fund (IMF). After growing by more than 10% a year in the first decade of this century, the (more…)

MALAYSIA: Petronas faces negative cash flow in 2015; 2Q net profit plunged 47.3%

(EnergyAsia, August 18 2015, Tuesday) — After announcing a 47.3% plunge in second quarter profit, the CEO and president of Malaysia’s state-owned energy firm Petronas said he expects the company to tap into cash reserves this year to help pay for on-going operations, capital investments and mandated dividends to the government. Wan Zulkiflee Wan Ariffin (more…)

CHINA: More than 1.2 billion people to benefit from clean air with reduced and clean coal consumption, says study

(August 16 2015, Sunday) — More than 1.2 billion people living in China’s 293 prefecture-level cities will benefit from clean air if the country imposes strict air pollution and environmental protection policies that reduces coal dependence or the mix of cleaner coal. According to a recent study supported by two US-based non-profit groups, the Natural (more…)

China: Beijing expects coal demand to continue growing through 2030, says IEA

(EnergyAsia, August 14 2015, Friday) — China’s coal consumption will continue to grow through 2030 despite the government’s efforts to cap the country’s carbon emissions and boost the role of renewables in the energy mix, said the International Energy Agency (IEA). Citing Chinese government documents, the IEA said China expects to remain the world’s largest (more…)

CHINA: An overview of long-term measures to fight global warming

(EnergyAsia, August 13 2015, Thursday) — China will work with other countries to complement domestic measures to reduce its greenhouse gas output in the fight against global warming, according to a Chinese professor writing for the Institute for Energy Economics, Japan (IEEJ). China will aim to cap its carbon emissions by boosting energy conservation and (more…)

MARKET: Developing countries continue to boost coal consumption, say scientists in new research study

(EnergyAsia, August 12 2015, Wednesday) — Despite growing calls to reduce the world’s greenhouse gas emissions, China, India and many developing countries are increasing their consumption of the most polluting fossil fuel — coal, according to a new study undertaken by three scientists at the Berlin-based Mercator Research Institute on Global Commons and Climate Change (more…)

CHINA: Declining coal demand piles further pressure on Australia’s mining industry, says Moody’s

(EnergyAsia, August 11 2015, Tuesday) — China’s slowing energy demand is further draining the financial life out of Australia’s thermal coal miners and services companies at a time when they are struggling with low commodity prices, said US ratings agency Moody’s. China’s thermal coal demand is declining amid the country’s slowing industrial production and push (more…)

LIBYA: National Oil Company’s eastern chairman wants to reopen use of oil terminals, boost production

(EnergyAsia, August 10 2015, Monday) — Boosted by a banking deal with the International Monetary Fund (IMF) last week, the newly appointed chairman of Libya’s National Oil Company (NOC) said he plans to lift the force majeure on the country’s Ras Lanuf and As Sidra oil terminals, according to a briefing note from MAST Security. (more…)

JAPAN: Idemitsu to buy bulk of Shell’s refinery stake for 169 billion yen

(EnergyAsia, August 9 2015, Sunday) — Japan’s second largest downstream oil company Idemitsu Kosan has agreed to buy over the bulk of Shell’s 35% stake in the Tokyo-listed refiner Showa Shell Sekiyu for about 169 billion yen. (US$1=124 yen). Idemitsu will pay 1,350 yen for a near 23% premium for 125.3 million Showa Shell shares (more…)

US: Refining throughput hits record high of over 17 million b/d, says EIA

(EnergyAsia, August 8 2015, Saturday) — Reflecting the growing strength of the US economy, its refiners have been operating at a record throughput of over 17 million b/d since mid-July, said the Energy Information Administration (EIA). The rolling four-week average of US gross refinery inputs has been above the five-year range every week so far (more…)

ASIA: Turkmengaz to lead TAPI gas pipeline consortium

(EnergyAsia, August 8 2015, Saturday) — Turkmengaz, Turkmenistan’s state-owned gas company, has been chosen to lead an international consortium to build, finance, own and operate a proposed 1,600-km to deliver natural gas from Central Asia to South Asia. The Asian Development Bank (ADB) will continue to advise as well as help finance the US$7.6-billion pipeline (more…)