<b>ONGC Videsh strikes oil in Egypt</b>
13 Nov 2008, 1609 hrs IST, IANS
NEW DELHI: A consortium led by ONGC Videsh (OVL) has struck oil in an Egyptian block, which is estimated to have reserves of 800 barrels of oil per
day.
An OVL statement on Thursday said the discovery in well North Ramadan-2 (NR-2) is the second oil find in the block.
The first discovery was made in another well, NR-1A ST1, which produced about 3,000 barrels of oil per day during the testing phase.
The second discovery was made after drilling NR-2 at a depth of 11,700 feet.
The block is operated by OVL and IPR Red Sea Inc of Egypt; the two firms have 70 per cent and 30 per cent interest, respectively, in the North Ramadan concession. The agreement between the two was signed in 2005.
The consortium is in the first phase of exploration in North Ramadan, with one more exploratory well to be drilled this month.
http://timesofindia.indiatimes.com/Busines...how/3709109.cms
11-14-2008, 05:01 PM
(This post was last modified: 11-14-2008, 05:02 PM by Bodhi.)
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--> <b>Should America squeeze its own companies to squeeze Iran?</b>
Writing in the Wall Street Journal, Orde F Kittrie argues that the incoming Obama administration must exploit Iranâs âeconomic Achillesâ heelââthe fact that it has to import refined gasolineâto persuade it to negotiate over its nuclear programme. Since Iran imports gasoline from five firms âfour of them European: the Swiss firm Vitol; the Swiss/Dutch firm Trafigura; the French firm Total; British Petroleum; and one Indian company, Reliance Industriesâ, he calls upon the Obama administration to insist that the Swiss, Dutch, French, British and Indian governments stop gasoline sales to Iran from their countriesâ companies.
In addition, he suggests that the US could act on its own:
<!--QuoteBegin--><div class='quotetop'>QUOTE<!--QuoteEBegin-->Consider Indiaâs Reliance Industries which, according to International Oil Daily, âreemerged as a major supplier of gasoline to Iranâ in July after taking a break for several months. It âdelivered three cargoes of gasoline totaling around 100,000 tons to Iranâs Mideast Gulf port of Bandar Abbas from its giant Jamnagar refinery in Indiaâs western province of Gujarat.â Reliance reportedly âentered into a new arrangement with National Iranian Oil Co. (NIOC) under which it will supply around . . . three 35,000-ton cargoes a month, from its giant Jamnagar refinery.â One hundred thousand tons represents some 10% of Iranâs total monthly gasoline needs.
The Jamnagar refinery is heavily supported by U.S. taxpayer dollars. In May 2007, the U.S. Export-Import Bank, a government agency that assists in financing the export of U.S. goods and services, announced a $500 million loan guarantee to help finance expansion of the Jamnagar refinery. On Aug. 28, 2008, Ex-Im announced a new $400 million long-term loan guarantee for Reliance, including additional financing of work at the Jamnagar refinery. [WSJ]<!--QuoteEnd--><!--QuoteEEnd-->
It is unclear if Mr Kittrie is proposing that the US government purchase all that gasoline from Reliance at a premium over market prices, so as to deny the Iranians that gasoline. As for financing arrangements by the US Export-Import bank, what Mr Kittrie does not realise or forgets to mention, is that they exist because Reliance is purchasing goods and services from US suppliers. Withholding loan guarantees will be counterproductive to US commercial interestsâfor European and Japanese suppliers will be too keen to replace their American competitors, and their respective Ex-Im banks will supply the requisite loan guarantees. In any case, Reliance is unlikely to have too much of a difficulty in securing such guarantees, even in todayâs financial markets.
Whatever the merits of the proposal to squeeze Iran through a policy of gasoline denial, Mr Kittrieâs proposal will hurt the US economy. Now, why would Mr Obama want to do thatâ¦when the US economy is already in the doldrums?
<!--QuoteEnd--></div><!--QuoteEEnd-->
<!--QuoteBegin-Bodhi+Nov 13 2008, 05:01 PM-->QUOTE(Bodhi @ Nov 13 2008, 05:01 PM)<!--QuoteEBegin--><b>ONGC Videsh strikes oil in Egypt</b>
13 Nov 2008, 1609 hrs IST, IANS
NEW DELHI: A consortium led by ONGC Videsh (OVL) has struck oil in an Egyptian block, which is estimated to have reserves of <b>800 barrels</b> of oil perÂ
day.
http://timesofindia.indiatimes.com/Busines...how/3709109.cms
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hmmm
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--> 800 barrels of oil per day. <!--QuoteEnd--><!--QuoteEEnd-->
California farms, shopping malls, restra parks are full of those who churn out more than 800 barrel per day. <!--emo&  --><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
How much money they had wasted on this venture?
<b>India opposes IPI penalty proposal</b>
<i>* Iran wants amendment to GSPA force majeure clause, replacing âact of warâ with âsituation of armed conflict or warâ</i>
<b>NEW DELHI : India has opposed Iran's bid to include a clause in the proposed Gas Sales and Purchase Agreement (GSPA) of the Iran-Pakistan-India gas pipeline project to absolve itself from paying penalties for disruption and non-supply of natural gas due to armed conflict. With US strikes inside Pakistan increasing and a possible strike against Iran, Tehran wants to absolve itself from supplying gas through the tri-nation pipeline in the case of conflict.</b>
An amendment clause is being opposed by New Delhi, which wants Tehran to make alternative arrangements like shipping gas in liquefied form (LNG) in the event of disruption of supply.
Negotiations on the $7.4 billion pipeline have been long and tedious with each side wanting to protect its interests. With most of the issues now settled, the new condition would further delay agreement on the project.
Official sources said Iran had suggested an amendment to the force majeure clause that sought to include its enforcement in the situation of armed conflict or war. It wants the term âAct of Warâ under excusing event to be replaced by a suitable substitute such as âsituation of armed conflict or warâ in the GSPA.
But India wants Iran to pay for non-supply of gas in situations other than war. Tehran, it says, has to commit to the principle of 'supply or pay' as the buyers are agreeing to a 'take or pay' clause.
<b>The sources said India also wanted the ownership of natural gas to be transferred to it at the Pakistan-India border and that Iran should be liable for safe passage of the fuel in Pakistan. India has said it will pay only if gas is delivered at its border. Iran has proposed to transfer gas ownership at its border with Pakistan and wants New Delhi and Islamabad to enter into agreements for onward transit of fuel.
New Delhi also opposes Tehran's insistence on revising the gas price every three years. It believes the pricing formula agreement between the three nations was for the entire 25-year tenure of the project.</b>
India and Pakistan are to buy 30 million standard cubic metres per day of gas each from the proposed pipeline.
Earlier, in September, Tehran had expressed serious concerns over the security situation in Pakistan and asked Islamabad to make security a part of the IPI project.
Iran had demanded from Pakistan to include a provision on security in the GSPA for the gas pipeline project. With such a provision in the IPI gas pipeline project, Tehran was to be able to suspend gas supply to Pakistan in case of âa security incidentâ in the country.
In June, India and Pakistan has declared they had reached a consensus on the transit fee of the IPI pipeline.
<b>India wanted the gas pipeline to operate like the proposed Turkey-Austria Nabucco gas pipeline that is exempted from gas transit fee.</b>
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
12-30-2008, 08:31 PM
(This post was last modified: 12-30-2008, 08:37 PM by Naresh.)
Cross Posted on the TWIRP Thread
[CENTER]<b><span style='color:Red'>SWAMINOMICS</span></b>[/CENTER]
[CENTER] <!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo--><b><span style='color:Blue'>IPI gas pipeline, RIP</span></b> <!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo-->[/CENTER]
[CENTER]<b><span style='color:Red'>Swaminathan S Anklesaria Aiyar</span></b>[/CENTER]
<b>The Iran-Pakistan-India (IPI) gas pipeline has been discussed for almost a decade, with its proponents arguing that it will promote our energy security. After 26/11, the project is dead. No Indian government can proceed with a deal that will give Pakistan a knife at India's energy throat. Far from promoting our energy security, it would be a source of immense national insecurity.
Just suppose the pipeline was complete and functioning today. The pipeline contract would have required Pakistan to ensure the safety of supplies. But Baluch insurgents have been bowing up gas pipelines in Pakistan for ages, so Islamabad could easily connive in the blowing up of the India section of the pipeline, claiming it did not control non-state actors, and indeed is opposed to them. Just as it did after 26/11, Pakistan could claim that it was itself a victim of sabotage, that India must not indulge in finger pointing, and that Islamabad would investigate the incident provided India provided enough evidence!
Wouldn't a pipeline deal include insurance against disruption of gas supplies? Well, maybe some brave global insurance company would come forward initially, but it would surely have charged premiums so hefty as to undercut the entire economic rationale of the pipeline, which was supposed to be cheaper than the alternative, which is supply through tankers carrying liquefied natural gas from Iran.</b> Besides, insurance contracts have "force majeure" clauses protecting the insurance company from liability in the event of war or civil conflict. So, the IPI pipeline would be an insecure project.
Why then have so many politicians and ideologues been canvassing the IPI pipeline with such vigour and passion? For two reasons. One, some naïve, optimistic politicians view India and Pakistan as natural partners separated by unwarranted mistrust, and they saw the pipeline as a way of building economic linkages, trust and friendship. Second, the entire left saw the pipeline as a way of spitting in the face of the US, and asserting India's independence in foreign policy.
The US opposed the pipeline on the ground that it would strengthen Iran's economy and enable that country to escape some of the economic sanctions penalties that the US has sought to impose on it. When India went slow on the IPI pipeline after the Bush-Manmohan Singh agreement of 2005, the left was livid at what it saw it as a foreign policy surrender of a junior partner in an unequal relationship. So obsessed was the Left with the need to combat US imperialism that it failed to see the threat that the pipeline would strengthen Pakistan.
At the time, most analysts agreed that the risk of an Indo-Pak war was remote. In the absence of war, many analysts felt that Pakistan was unlikely to cut the pipeline, for commercial and foreign policy reasons.
This analysis ignored risks involved in conflict at levels lower. Both countries have become nuclear powers, so open warfare is virtually impossible. For that very reason, each country needs to focus on strategies and pressure points other than war, which can be used as bargaining counters or for covert retaliation. <b>So, the pipeline in its current form must be viewed as dead. Yet the fact remains that India will need massive gas imports in the future. Iran is not a reliable supplier-it reneged on an earlier low-cost LNG deal with India, so we must find alternative suppliers. Yet Iran is too big to be totally ignored.</b>
So let's consider a different sort of pipeline. This will be a shallow offshore pipeline taking gas from Iran to the maritime boundary between India and Pakistan off Kutch. At this point, the pipeline can divide into two, with one section going north to Pakistan and the other going west to Kutch. Any sabotage of the main pipeline will hit Pakistan as badly as India -it will mean mutually assured destruction (MAD) of gas supply. The section going to each country from the maritime boundary will be in the territory of that country, under its own control.
In the Cold War, MAD was the basis of global security. By analogy, India and Pakistan need a MAD pipeline for security. Neither side will be able to hurt the other without hurting itself.
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<b>India finally gets 25% in Kazakh field</b>
ASTANA (KAZAKHSTAN) : "We are sure of making a spectacular breakthrough (in oil sector) this time,'' petroleum secretary R S Pandey last week wrote in the visitor's book at the Indian ambassador's residence in the Kazakh Capital. True to his words, the two countries will sign documents on Saturday to give India its first kill in the Great Game for Central Asia's hydrocarbons treasure.
After three years of exasperating negotiations, Kazakh national oil firm Kazmunaigaz will assign a 25% stake in the medium-size Caspian concession of Satpayev to ONGC-Mittal Energy Ltd, steel tycoon Laxmi Mittal's joint venture with state-owned explorer ONGC. The offer had first been formalised at talks PM Manmohan Singh had with Kazakhstan president Nursultan Nazarbayev in 2005 on the sidelines of a regional meeting in Moscow.
As a sweetener, HPCL-Mittal Energy Ltd and Bharat Petroleum will ink MoUs that could lead to business worth $20-25 million for KazStroyService. The Kazakh engineering firm will build sulphur units for refineries, particularly the Bhatinda plant being put up by Mittal's venture with Hindustan Petroleum.
The Satpayev deal will move Indo-Kazakh ties out of the shadow of the failed Kurmangazy oilfield deal. The groundwork for the breakthrough was laid by former oil minister Mani Shankar Aiyar during his February 2005 visit to Astana. At that meeting, his then Kazakh counterpart Vladimir Shkolnik told Aiyar: "...Make an offer that we cannot refuse...our President wants to give India a role in development of oilfields.''
While the equity offer is sealed, several terms of endearment still remain undecided, which could stall future progress. After several hiccups, talks in Astana had got bogged down on Wednesday over commercial issues such as payments of signing amount, bonus during exploration and future partnership structure. The breakthrough came late on Thursday night during final negotiations in Delhi. Though legal issues seem to have been resolved, the financial aspects will still have to be worked out between the two firms.
Access to Caspian oil is vital to ensure the country's long-term energy security as it reduces dependence on West Asia. Several existing and proposed pipelines such as Blue Stream and the Kazakh-Chinese pipelines are there for India to bringing Central Asian oil within its reach. Blue Stream can bring Caspian oil to the Mediterranian from where it will come into the Gulf through the Israeli Eilat-Ashkelon pipeline or a new link Egypt is planning to bridge the two seas. In case of the Chinese pipeline, India can either haul the Caspian oil through a Chinese port or go for an oil-for-gas barter.
The Caspian region is estimated to have proven oil reserves between 17 and 33 billion barrels, which is comparable to OPEC member Qatar on the low end and the US on the high end. In 2003, regional oil production reached roughly 1.5-1.7 million barrels per day, comparable to annual production from South America's second largest oil producer, Brazil. By 2010, analysts expect the countries of the Caspian region to produce between 2.4 and 5.9 million barrels per day, which would exceed annual production from South America's largest oil producer, Venezuela.
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<b>India signs pact with Kazakhstan for uranium supply</b>
<b>NEW DELHI : India on Saturday signed a civil nuclear pact with Kazakhstan under which the uranium-rich Central Asian country will supply much-needed fuel to atomic plants in the country.</b>
India also signed four other pacts, including an Extradition Treaty, in the presence of President Pratibha Patil and her Kazakh counterpart Nursultan Nazarbayev.
Patil oversaw the proceedings of inking of the four pacts as Prime Minister Manmohan Singh was indisposed.
Kazakhstan will provide uranium and related products under the Memorandum of Understanding between Nuclear Power Corporation of India (NPCIL) and KazAtomProm. The MoU was signed by NPCIL CMD S K Jain and KazAtomProm President Moukhtar Dzhakishev.
The MoU also opens up possibilities of joint exploration of uranium in Kazakhstan, which has the world's second largest uranium reserves, and India building atomic power plants in the Central Asian country.
"These agreements are very important for the stature of our bilateral relations," Nazarbayev told reporters in the capital.
External affairs minister Pranab Mukherjee, who led the delegation level talks in absence of Singh, inked the Extradition Treaty with his Kazakh counterpart Marat Tazhin.
Minister of state of commerce Jairam Ramesh and Kazakh minister of trade and industry Vladimir Shkolnik signed the protocol on the accession of Kazakhstan to the World Trade Organisation.
An MoU was signed between ISRO and Kazakh Space Agency for space cooperation. ONGC Mittal Energy Limited also signed and agreement with state-run KazMunaiGas
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<b>Iran hikes gas price coming through IPI pipeline</b>
NEW DELHI: Iran has jacked-up by 20% the price of natural gas that is to flow through the long- delayed Iran-Pakistan-India pipeline, making it the most expensive fuel in the country.
At the current crude oil price of $40 a barrel, Iranian gas will cost New Delhi $5.9 per million British thermal unit at Iran-Pakistan border, sources said.
Iran, which had originally priced its gas at $3.2, had in 2007 revised the rates to $4.93 per mBtu at $60 a barrel crude oil prices, which was accepted by India.
Sources said Iran has again changed the formulation that would mean India paying $7.1 per mBtu in the likely event of oil prices rising to $50 and $8.3 per mBtu if oil price was to touch $60 a barrel.
Added to this would be a minimum of $1.1-1.2 per mBtu towards transportation cost and transit fee that India would have to pay for wheeling the gas through Pakistan, they said.
Gas from the Panna/Mukta and Tapti fields in Mumbai offshore fetches the maximum $5.70 per mBtu, while Reliance Industries' Krishna Godavari basin gas has been priced at $4.20 per mBtu if crude oil price was $60 or more.
Sources said New Delhi was likely to reject the changes, which were conveyed by Iranian chief negotiator H Ghanimi Fard to Indian ambassador to Iran last month, as unilateral revisions was against the spirit of stable contract regime.
Issues like frequent revisions in prices and terms made by Iran have delayed finalisation of the agreement on the IPI pipeline which should have become operational in 2010 if things would have gone as agreed in 2005.
The latest move by Iran, which holds the world's second largest gas reserves, may have been triggered by the drastic fall in international crude oil prices which have dived from $147 a barrel in August 2008 to below $40 now.
As per the previously agreed formula of charging 6.3 per cent of the 10-month average of Japanese Crude Cocktail (JCC) plus a fixed $1.15 per mBtu, the gas price at the current crude oil price would have come to $3.67 per mBtu.
So the formula has now been changed to 12% of JCC plus $1.1 per mBtu fixed cost, sources said, adding, this would be the price of gas at Iran-Pakistan border.
<b>Sources said Iran was not willing to commit to a supply-or-pay regime wherein it would have been held accountable for non-delivery of gas at Indian border. It, however, wants New Delhi to commit to a strict take-or-pay clause wherein India would have to pay even if it does not take deliveries.
Iran has also ignored New Delhi's demand for a trilateral mechanism for securing delivery of gas at Pakistan-India border. All it now says is that if Pakistan were to disrupt supplies to India, Iran will make a proportionate cut in the quantities to be delivered to Islamabad.</b>
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<b>Petronet ties up gas from Exxon for Kochi project</b>
<b>NEW DELHI : Petronet LNG, a privately-registered firm promoted by state-run oil companies, has concluded the term sheet with ExxonMobil for shipping 1.5 million tonnes a year of gas for 20 years from Australia's Gorgon project being developed by the US energy major as part of a consortium led by Chevron.</b>
Petronet CEO Prosad Dasgupta said under Australian law the GSPA (gas sales and purchase agreement) is to be signed before June 30 and supplies were expected to begin 2014. Petronet will import the gas at the new facility it is building at Kochi in Kerala.
The gas will come as a relief to fuel-starved southern power plants, including state-run generation utility NTPC's Kayamkulam unit. <b>ExxonMobil can sell another 1.3 million tonnes of LNG but Petronet has not yet committed to additional volumes since it has yet to tie up consumers. NTPC, however, has not indicated any quantity for Kayamkulam.</b>
Chevron is the operator of the Gorgon project with a 50% stake, while Exxon Mobil and Shell hold 25% each. The project plans to develop the Greater Gorgon gas fields, located between 130 km and 200 km off the north-west coast of Western Australia. The Greater Gorgon fields are estimated to have reserves of about 40 trillion cubic feet of gas.
<b>Petronet is building the Kochi facility with a capacity to import and regassify 2.5 million tonnes of liquefied natural gas. It has raised $450 million in syndicated loan to part-fund the project. It has also ramped up the capacity of its existing facility in Gujarat's Dahej to 10 million tonnes a year where it has a 25-year gas supply contract with RasGas of Qatar.</b>
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Govt to move on freeing state-set fuel prices</b>
pioneer.com
Reuters | New Delhi
India is likely to allow market pricing of fuels, a move that will help firms like Reliance Industries revive their retail networks and ease the subsidy burden on a government trying to balance growth with fiscal prudence.
Oil minister Murli Deora said the cabinet would consider a proposal to free state controls on fuel prices.
"It will go to cabinet. It will be discussed soon, within six weeks," Murli Deora told reporters soon after he was re-appointed as oil minister following the re-election of Prime Minister Manmohan Singh's government.
Deora's public comments were interpreted by markets as sign that approval was likely, and shares of explorers and oil refiners surged.
<b>The oil and gas sector index, which includes Reliance and state-run explorer ONGC, was up 4.6 percent by 0715 GMT,</b> outperforming the broader 30-share BSE index that was up 2.6 percent.
Oil prices rose above $65 a barrel on Friday, taking gains to 27 percent in May, and analysts say the market seemed focused on the bullish sentiment and brighter macroeconomic outlook.
......
Pricing freedom would <b>increase tax revenue and remove massive subsidies bills</b>, <b>helping offset the cost of economic stimulus measures that have stretched public finances and widened the fiscal deficit to 6 percent of GDP</b>.
Market-driven prices would help curb fuel use in India, one of the only major consumers expected to see positive demand growth this year.
<!--QuoteEnd--><!--QuoteEEnd-->
Well government is run out of public money, increase tax collection so that some people can have your money. Redistubution of money from acheievers to non productive lot.
<b>India Unclear On Joining IPI Gas Pipeline Project</b>
India is still in doubt on joining the Iran-Pakistan-India (IPI or Peace) gas pipeline project in spite of Tehran and Islamabad signing a bilateral agreement. With India refusing trilateral negotiations for almost two years now, Tehran and Islamabad have signed a bilateral deal on the pipeline. The agreement was signed by Iranâs President, Mahmoud Ahmadinejad and Pakistani counterpart, Asif Ali Zardari in Tehran, on the sidelines of a trilateral summit on Afghanistan security.
A senior petroleum ministry official said, "We have not pulled out of the project. We have certain concerns which need to be addressed before we can join the project."
As per the agreement, Iran will initially transport 30 million cubic meters of gas per day to Pakistan but will ultimately raise the gas transfer to 60 million cubic meters per day. A 2,100-kilometers pipeline from South Pars fields in Persian Gulf would be constructed in five years.
However Iran, left scope for India joining the project at a later date.
"We are committed to continue to dialogue (with Iran and Pakistan) on the pipeline project," said Petroleum Secretary, R S Pandey.
<b>Another official informed New Delhi had not yet shut pricing and transit issues with Iran and Pakistan and would not sign a pipeline contract until its concerns safe passage of gas through Pakistan is addressed.</b>
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
06-17-2009, 01:25 PM
(This post was last modified: 06-17-2009, 03:10 PM by Naresh.)
<b>Esteemed Members :</b>
One has been reading volumes and tomes about the âStrategicâ importance of Gwadar to China as Thina would Import Oil and Natural Gas from Persian Gulf, Red Sea, West Africa etc. etc. via the âExcellent Port of Gwadarâ which the Chinese Financed and Built.
Now that China is constructing Pipe Lines from Kyaukpyu â about 11o KM South East of Sitwe (Akyab) does it mean that China is âLosing Intelestâ and Pakistan is Losing its Highel thean the Himalayas, Deepel than the Pacific, Lalgel than the Univelse and Sweetel than Honey Fliend :
<b>Construction of Sino-Myanmar oil-and-gas pipelines to begin in Sept.</b>
www.chinaview.cn 2009-06-16 17:02:24
BEIJING, June 16 (Xinhua) -- The construction of pipelines that will transport oil and gas to China via Myanmar will begin in full swing in September, an insider from PetroChina said Tuesday.
The project will open the fourth route for China's oil and nature gas imports, after ocean shipping, the Sino-Kazakhstan crude oil and natural gas pipelines, and the Sino-Russian oil pipeline, according to the insider, who declined to be named.
According to an agreement signed in March 2009 between the Chinese and Myanmar governments, the oil and natural gas pipelines will run in parallel. Both will start in Kyaukryu port on the west coast of Myanmar and enter China at the border city of Ruili in China's Yunnan province.
The 1,100-kilometer oil pipeline will end in Kunming, capital of Yunnan Province. It is expected to transfer 20 million tonnes of crude oil to China from the Middle East and Africa annually.
The natural gas pipeline will extend further from Kunming to Guizhou province and the Guangxi Zhuang Autonomous Region, running a total of 2,806 kilometers. It is expected to transport 12 billion cubic meters of gas to China every year.
The Sino-Myanmar gas pipeline will further increase China's gas import, which is projected to exceed 100 billion cubic meters over the next few years.
<b>Compared with ocean shipping, the oil pipeline can reduce the transport route by 1,200 kilometers, experts said. What's more import, it will reduce China's reliance on the Straits of Malacca for oil import.</b>
China has imported more than 10 million tonnes of crude oil through the Sino-Kazakhstan oil pipeline, which was put into service in 2006. Sino-Russian oil pipeline is also expected to put into use by the end of 2010.
Editor: Deng Shasha
Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->
<b>Lights Go Out in New Delhi as Billionaire Ambani Brothers Feud</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->July 29 (Bloomberg) -- <b>About 50 kilometers (31 miles) east of New Delhi, along a rutted dirt track through fields of corn and barley, lies an empty plot of land where a power plant was supposed to have stood, pumping electricity to alleviate blackouts in Indiaâs capital.</b>
Instead, there are rows of freshly planted saplings, two rusting corrugated metal sheds and a sign on one of them reading, âReliance Energy Generation Ltd.â
<b>The plant is four years late and a victim of a corporate feud between Indiaâs richest resident billionaires, Mukesh Ambani, 52, and his brother Anil, 50.</b> The two split the Reliance group in 2005 following a fight for control, three years after their father and the companyâs founder, Dhirubhai Ambani, died without leaving a will. The conflict has persisted with a legal spat over supply of gas from Mukeshâs company that Anilâs plant needs.
<b>âThe loser is not just the brothers, but the whole country,â </b>said Walter Rossini, who manages $283 million in an India fund at Aletti Gestielle in Milan. Power shortages impede development in India as more than 400 million lack electricity and supply falls short of peak demand by 16.6 percent, the World Bank said in June.
..............<!--QuoteEnd--><!--QuoteEEnd-->
<b>Goldman: Get Ready For Oil Prices To Go Back To $147</b>
Last year they manipulated Oil price and destroyed World economy , now they are ready for next round.
<!--QuoteBegin-Mudy+Aug 7 2009, 09:32 AM-->QUOTE(Mudy @ Aug 7 2009, 09:32 AM)<!--QuoteEBegin--> <b>Goldman: Get Ready For Oil Prices To Go Back To $147</b>
Last year they manipulated Oil price and destroyed World economy , now they are ready for next round.
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<b>Mudy Ji :</b>
Goldman Sachs apparently have either âNot Receivedâ or âDisregardedâ the Following CFTC Memo :
<b>CFTC ( U S Commodity Futures Trading Commission) Declares War On Oil Speculators</b>
The CFTC wants to change standard operating procedure to crack down on any excessive speculation in the oil market.
The plan is to set trading limits on oil, natural gas and other commodities of a "finite supply" the Wall Street Journal reports.
In the next two months the CFTC will hold a series of hearings to figure out the best way to use its authority to stop manipulation of the commodity markets.
The CFTC is likely nervous about the crazy volatility in energy prices. Last year's oil spike is still seen as a freaky occurence, with the blame laid at the feet of speculators. This year's doubling of oil prices, despite the fact that demand is low and supply is high, has many people worried that the market is being manipulated all over again.
Here's the AP on the plan:
MARCY GORDON, WASHINGTON (AP) â Federal regulators will examine whether the government should impose limits on the number of futures contracts in oil and other energy commodities held by speculative traders, the head of the Commodity Futures Trading Commission said Tuesday.
The agency will hold a public hearing later this month to gather views from consumers, businesses and market participants on the idea of new limits for energy futures contracts, CFTC Chairman Gary Gensler said in a statement. It will be the first in a series of hearings in July and August on various topics to determine how the commodities agency "should use all of its existing authorities to accomplish its mission," he said.
The move comes against a backdrop of concern in Congress and complaints by traders over speculation in the oil futures market.
By law, the CFTC sets limits on the amount of futures contracts in some agricultural products that can be held by each market participant to protect the market against manipulation. But for energy commodities â crude oil, heating oil, natural gas, gasoline and other energy products â it is the futures exchanges themselves that set the position limits if they desire to do so.
"This different regulatory approach to position limits for agriculture and other physically delivered commodities deserves thoughtful review," Gensler's statement said. "It is incumbent upon the CFTC to ensure a fair and transparent price discovery process for all commodities."
Oil traders and brokers have griped that funds traded on exchanges, such as the United States Oil Fund, have pumped billions of dollars into energy commodities â enough to artificially prop up energy prices.
For example, benchmark crude oil prices have roughly doubled since March even though government reports show U.S. supplies brimming with surplus oil. Investors have been buying oil barrels not because of traditional supply and demand, but on the expectation that the economy will eventually improve. Some are also buying crude oil as a hedge against inflation, betting that the dollar will get weaker and push the price of energy commodities even higher.
Merrill Lynch estimates that investors are currently plowing $125 billion into commodity indices like the S&P GSCI Commodity Index, up from $80 billion in February. However, much of the increase is due to a rebound in commodity prices, Merrill Lynch analysts said.
In Congress, the House approved measures last fall aimed at curbing excessive speculation and trading abuses in oil and other commodity markets, despite a threatened veto by President George W. Bush. The bipartisan legislation called for giving the CFTC broader authority and limiting the size of the position that traders can hold in certain markets. It stalled in the Senate, however.
The CFTC twice last year took the unusual step of disclosing investigations into the possible manipulation of prices â of crude oil and cotton futures.
Gensler also said the agency will make improvements to its weekly report on the futures contracts positions held by commercial and noncommercial traders that will provide fuller disclosure of the market data.
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Old Article but is a Guide to Pakistan having âAgreedâ to Iranâs Natural Gas at a Delivered Price Equivalent of 80% the âSpotâ Oil Price.
Thus Pakistan would get Natural Gas from Iran â at todayâs Price Equivalent â at USD 70 X 7 X 0.8 / 40 i.e. USD 9.8 per MMBTU!
<b>GLOBAL LNG-Asian spot prices steady, shrug off Britain drop</b>
PERTH, July 17 (Reuters) - Prices of spot liquefied natural gas (LNG) were the highest in Asia this week, as gas prices in Britain and the United States slumped amid buoyant supplies but tepid demand, traders said on Friday.
Traders said offering prices for spot LNG in Asia were flat at around $4 per million British thermal units (mmBtu) on an ex-ship basis, as gas prices in Britain languished at around $3.31 per mmBtu and U.S. gas prices on the benchmark Henry Hub stood at $3.21.
"Prices in Asia are quite resilient because there's actually good demand from India. Chinese buyers have also been in and out of the market," said a trader.
India's Petronet LNG (PLNG.BO: Quote, Profile, Research) has bought a spot cargo of LNG from Qatar for July delivery, after having bought a spot cargo in June, traders said earlier this week. [ID:nSP489125]
Traders said the Gas Authority of India Ltd (GAIL), GSPC Ltd and National Thermal Power Corporation were also scouting for spot cargoes as a delay in the monsoon season had forced almost all the country's hydropower plants to operate at less than 40 percent capacity.
But despite having a need for extra gas supplies, Indian buyers are reluctant to pay Asian spot prices and have demanded that Asian sellers peg the prices to those on the British National Balancing Point (NBP).
"And it's logical for them to do so, considering they can easily take cargoes from either Europe or Asia given their geographical location," said a second trader.
Analysts and traders said LNG prices could weaken in the coming months amid a deluge of new supplies.
Qatar's new train 5 gas unit is due to start processing gas very shortly as part of the commissioning of the LNG facility, Qatargas said on Wednesday, while Russia's Sakhalin-2's LNG train is also expected to return onstream later this month. [ID:nLF439479]
In Britain, the newly built Dragon LNG terminal in South Wales is set to receive a second cargo this month after the first cargo arrived at the facility on Tuesday, according to Waterborne Energy analysts. [ID:nN15351900]
The Provalys LNG tanker, owned by GDF Suez (GSZ.PA: Quote, Profile, Research), is also heading to Britain's Isle of Grain terminal from Norway, according to AISLive ship-tracking data on Reuters. (Reporting by Fayen Wong; Editing by Clarence Fernandez)
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<b>Australia approves huge gas project to supply China, India</b>
SYDNEY : Australia on Wednesday approved a massive energy project that will supply natural gas worth tens of billions of dollars to China and India, giving new impetus to its resources boom.
Environment Minister Peter Garrett imposed 28 conditions to protect wildlife but said he saw no reason to block the Gorgon liquefied natural gas (LNG) plant off Western Australia, removing its final regulatory hurdle.
<b>The project is a joint venture by Chevron, Shell and ExxonMobil, which has signed a record 41 billion US dollar contract with Chinese giant PetroChina and another worth 21 billion dollars with Indiaâs Petronet.</b>
âIâve considered it very carefully, I donât believe that there will be unacceptable (environmental) impacts and, as a consequence of that, I have made my decision today,â Garrett told reporters.
The Gorgon field, thought to hold more than 40 trillion cubic feet of gas, is expected to create thousands of jobs and pump billions of dollars into Australiaâs economy.
Chevron, majority partner in the project, welcomed Garrettâs approval and said a final investment decision on the yet-to-be developed plant would be made in the coming months.
âThe Gorgon project is Australiaâs largest single resource project and is set to deliver significant economic benefits and create around 10,000 indirect and direct jobs during peak construction,â said Roy Krzywosinski, the companyâs Australian managing director.
He said the plant was âglobally and nationally significantâ, with an economic life of at least 40 years, adding it had been sited to minimise environmental impact.
Trade Minister Simon Crean said the deal was a major boost to Australiaâs profile as a green energy provider and proof China saw it as a key partner in its growth.
âThis is a commitment by China to a long-term contract. They see Australia as part of its energy supply, but not just any energy clean energy,â Crean told reporters.
âThe trade relationship with China continues to grow very strongly. The recent gas deal, thereâs a huge case in point.â
Intense demand from the emerging economies of China and India for resources has underpinned a period of stellar growth for Australiaâs mining and energy sectors.
Trade with Beijing, the worldâs largest consumer of iron ore and coal, was worth 58 billion US dollars last year alone.
Australia is the worldâs seventh-largest exporter of LNG and Chevron said the Gorgon project would secure Australiaâs position as a leading gas producer and generate a new source of wealth for the resource-rich nation.
According to trade officials, demand for LNG far exceeds supply and it is seen as the oil and gas industryâs greatest growth area, particularly as customers look for cleaner energy sources.
Garrett said the extra conditions included measures to protect endangered turtles and other species on nearby Barrow Island and to minimise noise and light emissions.
âIt is acceptable for the expansion to go ahead subject to the conditions,â he said. âThe public can have confidence that the environment of Barrow (Island) will be properly protected.â
Garrett said he expected Chevron and the ventureâs other partners would be âmore than willingâ to meet the conditions.
âWe have had those discussions with the company and it is the case that there is agreement on the basis of the conditions that Iâve put forward, and I welcome that,â he said.
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X Posted on the TWIRP Thread :
<!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo--> <b>India has quit Iran gas pipeline deal : Report</b> <!--emo&:clapping--><img src='style_emoticons/<#EMO_DIR#>/clap.gif' border='0' style='vertical-align:middle' alt='clap.gif' /><!--endemo-->
<b>TEHRAN : India has exited from a gas pipeline deal it earlier planned with Iran and Pakistan, Mehr news agency reported citing a Pakistani diplomat.
"India definitely quitted the IPI (India-Pakistan-Iran) gas pipeline deal," the report said citing Pakistani ambassador to Iran, Muhammad Bux Abbasi, as saying here on Sunday.</b>
Abbasi added that Pakistan plans to increase its crude oil import from Iran. <b>Iranian officials, however, said India has not yet officially declared its intention.</b>
In May this year, Tehran and Islamabad signed a $7.5-billion deal to supply gas from Iran to Pakistan.
As per the deal, Iran would initially supply 30 million cubic meters of gas per day to Pakistan which would be later increased to 60 million cubic meters per day.
Iran, Pakistan and India had conceptualised the project in the 1990s to help boost peace and security in the region, besides mitigating the power crisis.
<b>India stopped negotiations on the project due to tension with Pakistan, although Iran repeatedly encouraged New Delhi to rejoin the process, according to the report.</b>
The pipeline would run 2,775 km when linked with the three countries.
The project would have greatly benefited India, which do not have sufficient natural gas to meet its rapidly increasing domestic demand.
Pakistan has been facing electricity shortfall of more than 3,000 megawatts and plans to generate 4,600 megawatts from Iranian gas. Islamabad has been under pressure from Washington to abandon the deal.
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Pakistan not to give guarantee for Iranian gas flows to India
ISLAMABAD : [color="#FF0000"]Pakistan has decided not to give any guarantee for gas flows to India through the multi-billion-dollar Iran gas pipeline,[/color] it is learnt.
Informed sources told Dawn on Tuesday that Pakistan and Iran had resolved almost all other issues pertaining to the pipeline project, including pricing, project details and quantity of gas to be purchased.
They said that work on the project could be undertaken immediately if Iran did not press Pakistan too much on the guarantee that it had sought to ensure unhindered gas supplies to India through the pipeline.
The sources said Tehran had been told that a friendly project between two neighbourly Muslim countries should not become victim to the interests of a third country and, hence, Iran should not ask Pakistan to guarantee uninterrupted supplies to India given the history of relations between Pakistan and India.
The sources said Iran wanted Pakistan to agree to performance guarantee for gas deliveries if India decided to become part of the tri-nation project. This would require Pakistan to pay penalties to India for gas disruption even in case of sabotage activities or war between the two countries.
The sources said Pakistan was ready to put in place all security measures required to protect the pipeline in the Pakistani territory, but it could not pay the price of gas disruption when its own security was threatened by India itself or any sabotage activity. Pakistanââ¬â¢s defence authorities had also objected to providing iron-clad sovereign guarantees to India for gas supplies through the pipeline crossing Pakistan, the sources added.
[color="#FF0000"]India has so far avoided becoming part of the pipeline project although it has been in discussions with Tehran for joining the project and had participated in some trilateral meetings[/color].
The sources said Islamabad required gas supplies from Iran to meet its growing energy needs but it could not compromise its long-term national interests and more so when India and Pakistan could not make any progress to resolve their longstanding issues.
Iran and Pakistan signed gas sales and purchase agreement (GSPA) in June last year under which Islamabad would purchase at least 750 million cubic feet of gas per day (MMCFD) from Tehranââ¬â¢s Southern Pars gas field. The gas supplies could be increased to one BCFD at the time of project implementation, the sources said.
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