New base special 29 may 2014

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NewBase 29 May 2014 Khaled Al Awadi

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Qatar's RasGas inks LNG supply deal with UK's E.ON Source:ArabianBusiness

E.ON and RasGas Company Limited said on Wednesday they have signed an agreement for the supply of liquefied natural gas (LNG) from Qatar to the Isle of Grain in the United Kingdom. The three-year medium-term flexible contract has the potential to supply up to around two billion cubic metres over its term, a joint statement said. No value for the contract was disclosed.

Christopher Delbrück, CEO of E.ON Global Commodities SE, said: “I’m delighted that we have been able to conclude this agreement with RasGas, one of the world’s leading LNG players. "The contract is a significant step in the development of our global growth strategy and is another big step in the development of our long-term partnership with the State of Qatar.

"In a rapidly changing LNG marketplace, we are very pleased to have been able to reach an agreement that supports the ambitions of both our companies. Further, the deal enables us to take advantage of our existing UK regas position.” Hamad Rashid Al Mohannadi, CEO of RasGas, added: “RasGas has four long-term LNG contracts in Europe, and the UK is a very important market to the State of Qatar.”

E.ON said it regards Qatar as a priority country in the expansion of the company's LNG business model, including short and long-term supply agreements. Qatar possesses the world's third-largest gas reserves and has, by developing an impressive infrastructure for exporting LNG, established itself as leader on the global LNG market.

In 2009, E.ON opened an office in Doha, in addition to its Middle East office in Dubai. RasGas exports to countries across Asia, Europe and the Americas with a total LNG production capacity of approximately 37 million tons per annum. E.ON Global Commodities is the energy trading business of E.ON, one of the world’s largest investor-owned power and gas companies.

Grain LNG terminal. Output from the CHP will feed National Grid's Grain LNG terminal to replace natural gas form

Hamad Rashid Al Mohannadi,

CEO of RasGas




Qatar’s LNG supplies now reach 26 out of 29 importing countries: Qatargas CEO … GulfTimes

Qatar delivers LNG to some 26 out of a total of 29 LNG importing countries, accounting for 33% of the world’s LNG supply, said Qatargas CEO Sheikh Khalid bin Khalifa al-Thani; ( pictured )

“The bulk of these supplies are to Asia, which holds 75% of total LNG demand,” he said while presenting Qatargas’ views on the global LNG market fundamentals at the monthly gas lecture organised by the Gas Exporting Countries Forum (GECF) in Doha recently. On the supply and demand in key LNG markets in Latin America, Europe and Asia, Sheikh Khalid said, “The number of LNG importing countries in Latin America has doubled from only three in 2007 to six in 2013 and is expected to reach nine by 2016.

“Even though gas demand forecast in Latin America is relatively high, long-term volumes of LNG will have to compete with

domestic and piped gas. Additionally, these markets will most likely be supplied by North American LNG from upcoming new regional projects” he said.

LNG demand in Europe has been reduced by the economic slowdown, Asia’s strong pull on flexible cargoes, cheap US coal imports and government subsidized renewable energy sources. However, Sheikh Khalid expressed optimism regarding the resurgence of Europe’s LNG demand as its economy strengthens.




“Europe’s long-term LNG demand will rebound as its economy improves and indigenous gas declines; supply source diversity becomes critical and gas is required to support intermittent renewable energy needed to meet environmental targets. We believe deliveries will approach 100mn tonnes per year (tpy) by 2025” he said.

LNG demand in the Asia Pacific region, the world’s biggest LNG market, has almost doubled since 2005 and is expected to reach 320mn tpy by 2025. Although China and India will experience strong demand, the major area of LNG growth will come from South East Asia, a region, which had not imported LNG until just three years ago.

Global LNG demand is expected to double in 10 years, with 400mn tpy of proposed additional volumes to come online by 2025. However, a significant portion of these new projects will be delayed or cancelled due to the various challenges involved in bringing new supply on-stream, Sheikh Khalid said. Even if an optimistic view is taken on the number of LNG projects that will go to completion, the LNG market will continue to be tight in the short and medium term as demand growth outpaces supply.

“Global LNG demand will continue to grow robustly, especially in Asia. The LNG market will remain tight at least until the end of this decade. In order to secure LNG, customers need to attract LNG, or risk facing a choice between higher pollution and lower security of supply. Qatargas continues to be a critical source of reliable LNG as demonstrated by our exemplary delivery and safety record and underpinned by our strong resource base, sound partnerships with international oil companies and solid support from Qatar,” Sheikh Khalid said.

The Gas Lecture Series is a GECF initiative designed to encourage discussions and debates on natural gas-related topics involving all stakeholders such as producers, consumers, businesses, academics, international organisations as well as non-governmental organisations.




Norway: Statoil extends Norway's Snoehvit LNG plant outage until June 12 … Source: Reuters

Maintenance at the Snoehvit liquefied natural gas (LNG) plant in Norway's Arctic will be extended by three days until June 12, its operator Statoil said on its website. The plant, which processes around 4 billion cubic metres (bcm) of natural gas from an offshore gas field in the Barents Sea, has been shut for annual maintenance since May 2.

Statoil has a 36.79 percent stake in the production license, Norway's state-owned Petoro 30 percent, French Total 18.4 percent, GDF Suez 12 percent and RWE Dea 2.8 percent.

Norway exports less than 5 percent of its gas by tankers and the majority of its gas is pumped to Western Europe via a network of offshore pipelines.

Norway’s Liquefied natural gas (LNG) According to the NPD and BP Statistical Review of World Energy 2013, shipments of Norwegian LNG in 2012 totaled 166 Bcf, up from 150 Bcf in 2011. European and Eurasian countries in 2012 received about 65% of Norway's LNG exports, most of which were exported to Spain.

Norway became an LNG exporter in 2007 with the beginning of commercial production from the Snohvit gas field, Norway's first natural gas development in the Barents Sea. Statoil operates an LNG export terminal and liquefaction facility at Melkoya, near Hammerfest. The Melkoya facility, the first large-scale LNG export terminal in Europe, has a capacity of about 200 Bcf/y and is connected by pipeline with the Snohvit gas field. The Snohvit field is estimated to have produced 0.15 Tcf in 2013. The Melkoya

facility is producing at full capacity, and Statoil was considering expanding the export capacity at the facility. However, in late 2012, Statoil announced that its partners would not continue work on a capacity increase at the Melkoya facility because gas discoveries at that point did not warrant further expansion. Instead, the focus will be on upgrading the existing LNG terminal at the Melkoya facility.

Snoehvit LNG plant (Source: Statoil)

Hydropower accounts for 97% of the electricity produced in Norway.




Ukraine: Chevron still interested in Ukraine shale gas project, CEO says Source: Reuters via Yahoo! Finance

Chevron remains interested in developing shale gas deposits in western Ukraine and is monitoring closely the development of relations with Russia, Chief Executive John Watson said on Wednesday. 'In principle, we'd like to invest in Ukraine,' Watson said in an interview with several reporters after Chevron's annual shareholder meeting in Midland, Texas. 'It would be good for the country.'

Last fall the company signed a $10 billion deal to develop Ukraine's Olesska field, which is estimated to hold enough natural gas to supply the European Union's needs for three years. The agreement is designed to unfold slowly over 50 years, with an initial investment by Chevron in the next two or three years of only $350 million for exploration work.

Watson said he nor any Chevron staff member has yet to speak with Petro Poroshenko, Ukraine's president-elect, about the project.




Total gets nod for North Sea Well Press Release

The Norwegian Petroleum Directorate has granted Total E&P Norge AS a drilling permit

for well 34/6-3S, in the Norwegian part of the North Sea.

Well 34/6-3S will be drilled from the Leiv Eiriksson semi-submersible drilling rig, after concluding drilling of wildcat well 35/9-6 S for RWE Dea Norge AS in production licence 420. The drilling programme for well 34/6-3 S relates to the drilling of a third well in production licence 554. Total E&P is the operator with an ownership interest of 40 per cent. The other licensees are Spike Petroleum (20 per cent), Det Norske (20 per cent) and Svenska Petroleum (20 per cent). The area in this licence consists of 156.15 square kilometres, all in block 34/6. The well will be drilled about 120 kilometres west of Florø.

Production licence 554 was awarded on 10 February 2010 (APA 2009). This is the third well drilled in the licence. The objective of the well was primarily to delineate the oil discovery in the Cook formation, made in well 34/6-2 S. The secondary objective of the well was to explore the upside potential of the Statfjord formation. A sidetrack is also planned in order to prove potential hydrocarbons in the Statfjord and Cook formations. The permit is contingent upon the operator having secured all other permits and consents required by other authorities before the drilling starts.




Rowan nets three rig deals. Working on drillship problem in Namibia Press Release - Rowan

Rowan Companies, an offshore drilling contractor based in Houston, has secured more

contracts during May, 2014.

The Joe Douglas jack-up rig has

been awarded an estimated 90-

day contract with Freeport-

McMoRan Oil & Gas in the Gulf

of Mexico starting May 2014 at

a day rate of $165,000, which is

above the previous day rate of

$160,000.

Also, the Rowan Gorilla VII jack-up rig has secured a 220-day extension with Apache in the UK sector of the North Sea starting in November 2014 at a day rate of $280,000, unchanged from the current day rate.

Furthermore, Indonesian oil company Pertamina has extended the Rowan Gorilla II jack-up rig for approximately 120 days at a day rate of $146,000. The rig may be off rate for sometime in the second half of 2014 for a special survey. Scope of work, including the amount

of out of service days, is currently under review.

Drillship issues in Namibia

The Rowan Renaissance drillship, currently operated by the Spanish oil company Repsol in Namibia, began experiencing issues with its subsea systems on May 19, 2014.

“The Company is working to rectify these issues and expects the rig to resume normal operations by the

beginning of June 2014. During this period the Company may incur some amount of unbillable operational

downtime,” Rowan said in its fleet status report.

During this period the Rowan may incur some amount of unbillable operational downtime. In addition, Rowan expects seven days off rate time in 2Q 2014 for commissioning of late arriving equipment for the Rowan Renaissance. The day rate for the Rowan Renaissance, which began its drilling contract with Repsol in April, is $625.000.




Foster Wheeler win Kazakhstan refinery contract Adapted from press release by Claira Lloyd

Foster Wheeler AG has announced that a subsidiary of its Global Engineering and Construction

Group has been awarded a contract by Marubeni Corporation for the engineering and material

supply of a new terrace wall steam reformer heater, including an air preheating system, for the

KazMunayGaz oil refinery in Atyrau, Kazakhstan. The value of the contract has not been

disclosed but will be included in the company’s first quarter 2014 bookings.

Details

The steam reformer will be part of a hydrogen production unit with a capacity of 24 000 m3/hr to be

built at the refinery. The hydrogen plant is based on Foster Wheeler’s hydrogen technology.

Foster Wheeler’s scope of work is scheduled to be complete in April next year.

The contract was awarded by Marubeni on behalf of the SINOPEC Engineering

Group/Marubeni/KazStroyService consortium executing the engineering, procurement and

construction of the refinery modernisation project.

The product

The terrace wall reformer is characterised by a firing arrangement and sloped wall radiant section

design that, together, enable long catalyst tube life and deliver the flexibility to extend a reformer’s

operating envelope. This often allows production of hydrogen in excess of the design capacity of

the hydrogen production unit, which may in turn deliver additional economic benefits. Foster

Wheeler’s reformers can operate with ultra low NOx burners to meet tightening environmental

emissions standards worldwide.




U.S. petroleum product exports to Mexico rise while Mexican crude exports to the U.S. fall .. Source: U.S. Energy Information Administration

The United States imported 850,000 barrels per day (bbl/d) of crude oil from Mexico in 2013, the lowest volume since 1993. In the past decade, U.S. crude oil imports from Mexico fell 47%, primarily as a result of declining production of crude oil in Mexico. Despite the decline, Mexico was the third largest source of crude oil imports to the United States in 2013, behind Canada and Saudi Arabia.

Conversely, U.S. exports of petroleum products to Mexico have increased 152% in the past decade. In 2013, the United States exported 527,000 bbl/d of petroleum products to Mexico, including motor gasoline (46% of the total), distillate fuel oil (22%), and liquefied petroleum gases (10%).

While the United States is a net exporter of petroleum products to Mexico, the United States also imports some petroleum products from Mexico. In 2013, the United States imported 68,000 bbl/d of products, most of which was residual fuel oil (41%), pentanes plus (24%), and naphtha (15%). As with crude oil, U.S. imports of petroleum products from Mexico have declined in recent years.

Note: The United States does not export crude

oil to Mexico.




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Khaled Malallah Al Awadi, MSc. & BSc. Mechanical Engineering (HON), USA ASME member since 1995 Emarat member since 1990

Energy Services & Consultants Mobile : +97150-4822502

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Khaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 yearsKhaled Al Awadi is a UAE National with a total of 24 years of experience in theof experience in theof experience in theof experience in the Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as Oil & Gas sector. Currently working as

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NewBase 29 May 2014 K. Al Awadi

New base special 29 may 2014

Economy & Finance

Transcript of New base special 29 may 2014