MARKETS: Deluge of new LNG supply will test global floor price, create new demand, says Wood Mackenzie

(EnergyAsia, October 28 2015, Wednesday) — Consultant Wood Mackenzie has more bad news for the already battered liquefied natural gas (LNG) markets: prices will be further tested by a deluge of new supply amid weak demand in China. In a report prepared for Gastech 2015 in Singapore, the UK firm said it expects producers to (more…)

AUSTRALIA: Santos continues review of business after rejecting offer price of A$6.88 per share

(EnergyAsia, October 27 2015, Tuesday) — One of Australia’s leading oil and gas companies, Santos Limited, said it is continuing a strategic review of its business after rejecting a buy-out offer of A$6.88 per share that values the beaten-down company’s value at A$7.14 billion. (US$1=A$1.38). Along with the collapse in oil and gas prices, the...

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MARKETS: Global oil stockbuild still growing, to slow down sharply in 2016, says

(EnergyAsia, October 25 2015, Sunday) — Any hopes for an oil price rally in the remaining months of 2015 are being dashed by the continuing build in global stockpiles as production is still growing at a faster rate than consumption, said the US Energy Information Administration (EIA). “Global liquids production continues to outpace consumption, leading...

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CENTRAL ASIA: Region’s oil importers not benefitting from low prices, says IMF

(EnergyAsia, October 25 2015, Sunday) — Central Asia’s eight nations will continue to reel from the impact of weak oil prices, with little hope of their economies recovering to the levels before the collapse of the energy markets in mid-2014, said the International Monetary Fund (IMF). “A wave of external shocks—primarily falling commodity prices, spillovers...

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CHINA: BP secure oil and gas agreement with CNPC, LNG supply deal with Huadian

(EnergyAsia, October 23 2015, Friday) — UK major BP said it has signed an oil and gas framework agreement with China National Petroleum Corporation (CNPC) and a 20-year deal to supply liquefied natural gas (LNG) to China Huadian Corp worth US$10-billion. BP said it expanded an ongoing global partnership with CNPC by agreeing to jointly (more…)

US: Annual liquid fuels consumption to rise to highest level since 2008, predicts EIA

(EnergyAsia, October 21 2015, Wednesday) — US liquid fuels consumption will reach a seven-year high of 19.44 million b/d this year and rise further to 19.59 million b/d in 2016 on the back of the country’s continuing economic and employment growth, predicts the Energy Information Administration. The agency expects US fuel consumption for 2015 to...

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AFRICA: More than 1,000 senior executives to meet at 22nd Africa Oil Week in Cape Town, South Africa

(EnergyAsia, October 1 2015, Thursday) — More than 1,000 top government officials and executives of oil and gas companies are expected to attend the 22nd Africa Oil Week and Africa Upstream Conference in Cape Town, South Africa on October 26-30. Global Pacific & Partners and ITE Group plc will jointly host the landmark event that (more…)

ARCTIC: Greenpeace celebrates Shell’s decision to exit Alaska oil drilling as “victory” to protect Arctic

(EnergyAsia, October 1 2015, Wednesday) — Greenpeace celebrated a “huge victory” to protect the Arctic from hydrocarbon production and exploration when Royal Dutch Shell announced it would cease all work in Alaska’s Chukchi Sea that forms part of the region. The European major will write off US$7 billion and seven years of efforts after stating...

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MARKETS: EIA sees bigger oil supply-demand gap in 2016

  (EnergyAsia, October 1 2015, Thursday) — The US Energy Information Administration (EIA) expects the world’s oil surplus to continue widening this and next year as it trimmed its forecasts for demand slightly while raising supply in its September monthly report. It sees global supply rising to 95.7 million b/d in 2015 and 96.03 million...

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SAUDI ARABIA: Low spare capacity leaves world oil market at risk of price shocks, says research firm

(EnergyAsia, September 30 2015, Wednesday) — Amid the worst oil glut in over a decade, a Norwegian research firm wants the world to start worrying about possible oil price shocks. In its latest analysis of the global oil markets, Rystad Energy said the world’s spare production capacity, most of it sitting in Saudi Arabia, remains...

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MARKETS: Strong oil demand growth, supply cutbacks not enough to offset impact of record-high inventories, says IEA

(EnergyAsia, September 30 2015, Wednesday) — The oil markets will continue to pay for the past sins of overproduction as record-high inventories continue to offset the otherwise bullish impacts of strong demand growth and declining supply, judging from the latest International Energy Agency (IEA) monthly report. Crude prices sank further as Brent crude stayed submerged (more…)

BANGLADESH: Singapore’s Sembcorp awarded contract to develop 426MW power plant

(EnergyAsia, September 29 2015, Tuesday) — Singapore’s Sembcorp Industries said a subsidiary will lead a joint venture firm to build a 426MW plant in Bangladesh valued at US$390 million. The Bangladesh government awarded the build-own-operate contract to Sembcorp Utilities to develop the project in the Sirajganj district by 2018. To be fuelled primarily by natural (more…)

MARKETS: Low prices threaten long-term oil and gas investments

(EnergyAsia, September 29 2015, Tuesday) — The world will have to brace for sharply reduced oil and gas investments in the long term as the industry slashes capital expenditure in response to protracted low prices, according to separate analysis by a US government agency and two private firms. The Energy Information Administration (EIA) said sustained...

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SAUDI ARABIA: Why Riyadh is having such trouble with its Syria policy

(EnergyAsia, September 24 2015, Thursday) — Essay by Simon Mabon, Lecturer in International Relations, Lancaster University, UK, published from www.TheConversation.com. The violent civil war in Syria and rise of Islamic State (IS) has forced millions to flee their homes, cascading across Europe in search of safety. And yet, despite the crisis unfolding on its doorstep, (more…)

INDIA: Sembcorp Industries says 1,320MW coal-fired power plant in full operation

(EnergyAsia, September 16 2015, Wednesday) — Singapore’s Sembcorp Industries said subsidiary Thermal Powertech Corporation India (TPCIL) has begun fully operating its 1,320MW coal-fired power plant in Nellore in India’s Andhra Pradesh state. The company recently started up the second 660-megawatt unit of the US$1.5 billion plant in the coastal town of Krishnapatnam to follow through (more…)

MARKETS: Crude pushed back after brief late August recovery

(EnergyAsia, September 2 2015, Wednesday) — Crude oil prices ran out of steam as traders quickly cashed out on that brief 27% recovery over the last three days of August. North Sea Brent just about held onto US$50 a barrel while US WTI traded just above US$45 after both had sunk to their lowest levels...

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AUSTRALIA: Chevron may delay over-budget Gorgon LNG project start-up to 2016

(EnergyAsia, September 1 2015, Tuesday) — Having overshot its initial US$37 billion budget to build Australia’s largest liquefied natural gas (LNG) project, a Chevron-led consortium is also likely to miss its latest end-2015 start-up target for the same set of reasons: bad weather, labour disputes and equipment failure. The collapse in oil and gas prices...

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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%...

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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...

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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...

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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...

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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...

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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...

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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...

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