HOUSTON (AFX) — There’s a lot of natural gas in the ground all over the world, and the energy industry sees liquefied natural gas as the key to unlocking those stranded reserves. So why isn’t there more of it already, given concerns about natural-gas-supply shortfalls? For one thing, it’s expensive. Building pipelines to transport gas...

The Asian Development Bank (ADB) is supporting a $1.37 billion power project in Thailand’s Rayong province to help meet the country’s long-term need for reliable energy and diversification of energy sources through a financial commitment finalised early this month. The ADB said the commitment includes loans amounting up to US$140 million, and a political risk...

SINGAPORE (AFX-ASIA) – Energy-dependent Asia, led by the booming Chinese economy, must beef up cooperation to secure supplies and lower the region’s reliance on the volatile Middle East, an industry forum heard. “Asia is becoming even more dependent on imported energy,” Singapore’s Minister of State for Trade and Industry, Vivian Balakrishnan, told delegates at last...

BEIJING (AFX-ASIA) – Chongqing Jiulong Electric Power Co Ltd (SHA 600292) said it will benefit from the increase in electricity prices this year, as this will reduce its operating risks brought on by higher coal prices. The company said under the instructions of the local price administration, it will raise the pretax power price to...

First gas has begun flowing into one of the world’s biggest offshore pipelines as Woodside, operator of the North West Shelf Venture, starts commissioning the line as part of LNG expansion at Karratha in Western Austalia. Woodside said the new A$800 million, 42-inch (1,067 millimetre) diameter trunkline, the second major line to feed gas into...

Australian upstream company Santos Limited said it has achieved a 148% replacement growth of its oil and gas reserves to 80 million barrels of oil equivalent last year. The replacement is for Proven (1P) reserves at a world-class average cost of US$5.62 per barrel of oil equivalent, and follows the 119% reserves replacement achieved in...

LONDON (AFX) – The International Energy Agency (IEA) raised its forecast for global oil demand growth for 2004 by 220,000 barrels per day to 1.4 million b/d. In its monthly report, the Paris-based organisation said that demand growth is surging in some developing economies, notably as a result of Chinese economic expansion. But it is...

India’s finance ministry has slashed its subsidy allocations for LPG and kerosene to state oil companies by more than Rs45 billion for financial year 2004 starting April 1. (US$1=45). The companies will be allocated subsidies of Rs 35.6 billion, down from Rs 81.16 billion in the current year. The subsidies on the two oil products...

Australian upstream company Santos Limited said it has been awarded its fourth offshore exploration permit in the Sorell Basin, off Tasmania, by the Commonwealth and Tasmanian governments. Exploration block T/36P is located some 5 kilometres off Tasmania’s south western coast and covers approximately 4,500 sq km. Santos said it has been awarded the block for...

The Bank of Korea has warned that international raw material prices including oil could remain strong for some time, burdening local manufacturers with higher costs, according to a Korea Herald report. Releasing it outlook for crude oil and other raw materials, the central bank said the market consensus is that fuel prices may settle lower...

Spencer Abraham was asked his views on a number of issues at the recent Cambridge Energy Research Association annual conference. On OPEC’s decision to curb output: “As a matter of policy, we don’t comment directly on OPEC decisions. What we have been saying for a long time is that OPEC should let the market work,...

LONDON (AFX) – BP PLC has in place a myriad of internal checks and balances to ensure the company cannot overstate its oil and gas reserves — preventing it falling into the same trap as Shell, Lord Browne told journalists at a recent press conference. According to presentation slides, a “central internal review process” has...

LONDON (AFX) – BP PLC has in place a myriad of internal checks and balances to ensure the company cannot overstate its oil and gas reserves — preventing it falling into the same trap as Shell, Lord Browne told journalists at a recent press conference. According to presentation slides, a “central internal review process” has...

HONG KONG (AFX-ASIA) – Hong Kong-listed Sinopec (386.HK) could see its H shares under pressure tomorrow after the UK’s BP sold its entire tranche of 1.8 billion shares in the company, representing a 2.11% stake, analysts said. The UK oil giant’s unit, BP Oil Espana SA, sold the shares at HK$3.10-3.15 each, representing a discount...

HOUSTON (AFX) — OPEC’s decision to rein in its production came as no surprise to participants at an energy industry conference last week. The cartel’s price-defence strategy is one of five factors supporting high prices, said James Burkhard, director of the Cambridge Energy Research Association, in a press briefing at his organisation’s annual conference in...

The Maritime and Port Authority of Singapore (MPA) has approved new port facility security assessments and plans for container and conventional cargo terminals operated by the PSA Corporation (PSA). The PSA handles the bulk of Singapore’s container as well as oil and chemical cargoes. From July 1, all vessels coming to Singapore will be required...

BEIJING (AFX-ASIA) – China’s State Grid Corp, one of the country’s two power transmission firms, plans to raise 5-8 billion yuan every year for the next several years by issuing corporate bonds to fund investments, the China Daily reported, quoting general manager Zhao Xizhen. (US$1=8.27 yuan). This will be on top of the 5 billion...

The supply of crude oil to Japan from China’s huge Daqing oil field has been halted since January and is unlikely to resume due to increasing demand for energy in China, reported Japan Times. The oil field’s reduced export capacity, along with China’s price demands, have also made it almost impossible to resume the supply...

KUALA LUMPUR (AFX-ASIA) – Scomi Group Bhd shares have rebounded after last week’s decline. Analysts said the gains were fuelled by news that the Securities Commission had approved the drilling fluids and mud-engineering services supplier’s proposed 1-into-5 shares split. Scomi, Malaysia’s leading drilling fluids and mud-engineering services supplier, also proposed a 3-for-5 bonus issue of...

LONDON (AFX) – Oil giant BP PLC may have missed analysts’ expectations – but gave an assurance it will resume share buybacks in the first quarter. Analysts were expecting pro forma earnings, adjusted for special items, of between US$2.895 billion and US$3.195 billion, giving a consensus figure of US$3.01 billion. Instead, BP reported last week...

Dutch oil and chemical logistics company Royal Vopak said it achieved operating profit EUR 192 million last year (after exceptional items), compared with EUR 213 million in 2002. The result, based on provisional figures, includes net exceptional income of EUR 25 million, which comprises a release of the guarantee issued to Univar (EUR 33 million)...

SHANGHAI (AFX-ASIA) – Chongqing Fuling Electric Power Industrial Co Ltd, a regional power grid operator based in the southwestern Chinese municipality of Chongqing, said it plans to raise net proceeds of 243.81 million yuan in a mainland China A-share IPO to be launched on Feb 17. (US$1=8.27 yuan). The firm will sell a total of...

JAKARTA (AFX-ASIA) – State-run electricity company PT Perusahaan Listrik Negara (PLN) said it has signed a contract with Mitsubishi Corp for the construction of a 740 megawatt power plant in Cilegon, Banten. PLN director Ali Herman Ibrahim told reporters that the project will cost US$340 million, of which some US$289 million will be funded by...

(INFRALINE) — Natural gas has emerged as an important source of energy for fertiliser, petrochemicals, power and several other industries. With the new domestic find of gas fields and availability of imported LNG, gas markets in India are poised for phenomenal growth spurring the country’s industrial development. However, many state governments have levied high levels...

Chinese crude throughputs hit record levels in December and crude imports came close to a record, helping to absorb high OPEC production, said US-based consultants ESAI in the latest edition of its report, Pacific Basin Stockwatch. However, ESAI also said that it is projecting a modest slow down in Chinese crude demand. “One of the...