Algeria Extends TFT Gas Field License
Sonatrach, Total, Repsol and Alnaft (the National Agency for the Valorisation of Hydrocarbon Resources), have signed a new concession contract for a period of 25 years to extend the exploitation of the Tin Fouyé Tabankort (TFT) gas and condensate field. This new contract, which will become effective upon the approval by the relevant Algerian authorities, will give Total a 26.4% interest alongside Sonatrach (51%) and Repsol (22.6%). The companies have also signed a gas marketing agreement.
Algerian Reggane Nord Gas Project entering execution phase
A project consortium that includes RWE Dea has signed a major contract for the construction of a natural gas processing plant and infrastructure in the Algerian Sahara for the Reggane Nord project. The contract is valued at US$976 million and represents an important step forward for the project. Representatives of the Groupement Reggane of which RWE Dea is a partner signed the contract to construct the natural gas processing facilities and corresponding infrastructure including the gathering network and export pipeline on Thursday.
U.S. Oil Prices Rally
U.S. oil prices rose to near one-month highs on Monday as a weak dollar prompted buying a day before the June contract's expiration, while Brent prices fell as slumping global equities outweighed the impact of low Libyan output. The U.S. dollar fell to its lowest level in more than three months against the yen, which is supportive for oil and commodities priced in dollars. Asian and European equities fell after data released late on Sunday showed growth in average new home prices in China slowed to a near one-year low in April. Meanwhile, Libya's major western oilfields, El Sharara and El Feel, remained shut a week after the government said it reached a deal with protesters to reopen them.
Algerian Troubles Impact LNG Liftings for France
French gas grid operator GRTgaz said a force majeure in Algeria and tensions in the global gas market were reducing deliveries of liquefied natural gas (LNG) to southern France, just as winter demand for heating intensifies. Deliveries to the Fos-sur-Mer terminal were at about 40 gigawatt-hour (GWh) per day, compared with the 70 GWh per day needed to meet increased winter demand for power and heating, GRTgaz chief executive Thierry Trouve told journalists on Tuesday. The low deliveries…
Oversupplied Japanese LNG Players to Sell off Excess Volumes
Asian spot LNG prices extended losses this week as oversupplied Japanese utilities sought to offload cargoes and as key European gas benchmarks softened. Asian prices for LNG delivery in March fell 25 cents to about $7.75 per million British thermal units (mmBtu), traders said, ranging from $8/mmBtu to about $7.60/mmBtu. Prices tailed off even more sharply into April, currently trading at around the $7/mmBtu mark, they said. One trader said utilities in Japan "have overbought due to warmer than average temperatures at the end of 2016 and the current cold spell doesn't look like it will last…
Algeria to Renew LNG Deal with France's Engie in March
Algeria's state energy company Sonatrach will renew a deal with French gas and power group Engie to supply 10 billion cubic meters of LNG per year, a source at Sonatrach told Reuters on Wednesday. The signing ceremony will take place in France, likely before the end of March, and Algeria's Energy Minister Nouredine Bouterfa will attend, the source said. No further details have been provided on the length of the contract, which will replace one that has just expired. But Sonatrach's CEO Amine Mazouzi said recently that new contracts will be for at least 10 to 15 years but no longer than 20 to 25 years. Sonatrach has opted for a dual approach that mixes its traditional preference for long-term contracts with spot market deals to get the maximum out of them at a difficult time for Algeria…
Statoil Completes Well In Egypt
The Kiwi well in the Egypt’s El Dabaa Licence (Block 9) was completed this week and the Discoverer Americas drillship will soon head back to the US Gulf of Mexico. The exploration well targeted the Kiwi prospect in the El Dabaa licence, located in the Mediterranean west of the Nile Delta, with a water depth of around 2,700 metres at the drill site. Extensive logging has been performed in the well, and preliminary results show that the well is dry. The offshore operations were…
Tender for second Egypt LNG Terminal Issued
Egypt has issued a five-year tender to lease a second liquefied natural gas (LNG) import terminal, the head of the state gas board told Reuters on Monday, seeking to tackle an energy crisis. Egypt was once an energy exporter but declining oil and gas production and increasing consumption has forced the government to divert energy supplies to the domestic market, turning the country into a net energy importer. "We launched yesterday a tender to lease a second LNG import terminal for a period of five years. We have sent it to eight international companies and we expect to get a reply within a week," Khaled Abdel Badie said in a telephone interview. The floating regasification and import terminal, which converts super-cooled LNG into gas, would be Egypt's second.
New Joint Venture to Build LNG Ships
Itochu Corp. and Mitsui O.S.K. Lines Ltd. have reached an agreement with Sonatrach, an Algerian state-owned oil and gas company, to build and operate ships to transport liquefied natural gas, wire reports said. The three and a marine transport unit of Sonatrach will set up a company to build two 75,500-cu. m. LNG carriers under a 35 billion yen investment project. Japan's Universal Shipbuilding Co. will build the two carriers in 2007 and 2009, the report said, adding the carriers will be lent to Sonatrach for LNG shipping to Greece, Italy, Spain and other countries on the Mediterranean coast. Demand for LNG is growing because of rising oil prices and the fight against global warming, the report said. Algeria is one of the world's largest LNG exporters.
ABB's Part in Great Mediterranean Gas Project
ABB has supplied a uniquely integrative multisystem automation solution for the new Medgaz gas pipeline that connects North Africa’s largest gas producer with the gas transmission networks of Europe. The 210 kilometer pipeline connects the gas fields of Algeria, the region’s largest gas producer, with the gas transmission networks of Spain and southwestern Europe. It delivers up to 8 billion cubic meters of natural gas a year, and will in time be expanded with a second pipeline to double transmission capacity to 16 billion cubic meters a year.
Sonatrach Orders LPG Vessel from China
Algeria’s state-run oil company Sonatrach has awarded two Chinese firms a $40 million deal to deliver a liquefied petroleum gas (LPG) carrier and an option to provide a second vessel, according to a Sonatrach document seen by Reuters. Sonatrach's Hyproc Shipping Company chose Chinese consortium Jiangnan Shipyard and China Shipbuilding Trading Company Ltd for the provision of a carrier with a capacity of between 11,000 and 13,000 m3, the document said. It said an offer from Hyundai Mipo Dockyard, a South Korean consortium, had been rejected.
Venezuela Considers Importing Crude for the First Time
Venezuela is considering importing crude oil for the first time ever and could use a light oil from its partner in OPEC, Algeria, to dilute their own heavy crude, according to a company document seen by Reuters accessed on Wednesday. Despite having the largest oil reserves in the world, in recent years Petróleos de Venezuela (PDVSA) has been buying increasing amounts of heavy naphtha for blending with the extraction of heavy crude in the Orinoco Oil Belt, the largest producing region . These blends are made to convert the extra-an exportable product, amid the decline in local production of medium and light crude oils previously used as diluents and delays in construction of new breeders that can change the quality of the crude.
Statoil Says Normal Operations at In Amenas Gas Plant Resuming
Normal operations are resuming at the In Amenas gas plant in Algeria 18 months after a raid by Islamist militants killed forty employees, one of the plant's operators, Statoil, said on Monday. "The corporate executive committee has decided that ordinary rotation is to be resumed at the plant as all defined security measures have been implemented," Statoil said in a statement. The plant is operated by BP, Statoil and Algeria's Sonatrach. (Reporting by Gwladys Fouche, editing by Terje Solsvik)
Egypt, Russia Pact for LNG Shipments
The Egyptian Natural Gas Holding Company (EGAS) signed an initial agreement with Russian company Rosneft to supply oil products and liquefied natural gas (LNG) shipments. The document defines key terms of the future cooperation between the companies in the area of LNG supplies. The implementation of the terms of the signed document will allow Rosneft to access the high growth potential Egyptian gas market and deepen broader cooperation between the two companies. Minister of Petroleum…
Statoil, Sonatrach Sign LNG Extension Deal
StatoilHydro and Sonatrach agreed on to extend a liquefied natural gas (LNG) supply accord and allow Sonatrach access to one of Statoil' terminals abroad, Sonatrach said. The agreement gives Sonatrach the right to use Statoil's regasification capacity at the U.S. Cove Point import terminal to deliver two billion cubic metres per year of LNG to U.S customers for 15 years from 2009, a Sonatrach statement said. The document signed in Algiers also includes an agreement for Sonatrach to sell an additional one billion cubic metres of LNG per year between 2009 and 2014. That volume will be transported to the same terminal, the statement carried by the official news agency APS said. The sale deal is an extension of a contract signed between the two sides in 2003, APS said. source: AP
Venezuela Ships First Crude Mixed with Algerian Oil to China
Venezuela is sending its first shipment of crude mixed with Algerian light oil to China, according to state oil company PDVSA and traders. Venezuela recently started importing Saharan Blend from Algerian state-run Sonatrach to dilute its extra heavy crude from the Orinoco oil belt. PDVSA had previously imported costlier naphtha to use as a diluent. The Carabobo supertanker carrying 1.8 million barrels of Merey heavy crude will arrive in China in 46 days, PDVSA said in a statement. It did not elaborate on the terms of the deal. "This Merey crude was made with the imported Algerian crude," a trader said on Friday. The Merey blend using Algerian oil fetches Venezuela $20 dollars more per barrel than crude mixed with imported naphtha, according to Foreign Minister Rafael Ramirez.
Algeria Inks Deal with Vitol to Cut Fuel Imports
Algeria's state energy company Sonatrach said it has signed a deal with oil trader Vitol to send crude abroad for refining as the country seeks to reduce a record fuel import bill. CEO Abdelmoumen Ould Kaddour said Sonatrach would pay processing costs before bringing refined fuel back to Algeria, and said it was also negotiating to buy shares in a foreign refinery, but did not give details. "Our goal is to reduce our imports of gasoline, they are too high," Ould Kaddour told reporters on Tuesday. The deal is due to take effect in early February, according to a document seen by Reuters.
Venezuelan Crude Exports to US Fell 10% in Sept
Venezuelan crude exports to the United States declined 10 percent in September versus the previous month due to lower sales of heavy and medium grades to some of regular customers, according to Reuters trade flows data and PDVSA trade documents. State-run oil company PDVSA and its joint ventures sent 44 crude cargoes to the United States last month carrying 724,230 barrels per day (bpd), compared with 807,065 bpd in August. Sales of diluted crude oil (DCO) made with naphtha rose again to 348,200 bpd, from 311,130 bpd in August, but the increase was not enough to offset an export decline to regular clients including PDVSA's refining unit Citgo Petroleum, Motiva Enterprises, Phillips 66 and PBF Energy's Chalmette refinery.
Sonatrach Eyes More Vessels to Boost Asia Gas Sales
Algeria will acquire more vessels to transport gas to Asia as it eyes increased sales in that region, the chief executive of state energy firm Sonatrach said on Monday. "With Russia and the U.S., gas competition is tough," Abdelmoumen Ould Kaddour told reporters during a visit to the Hassi Messaoud oilfield. He gave no details. Kaddour also said Sonatrach's oil drilling in Algeria's southern neighbour Niger, where a Sonatrach unit was awarded a production-sharing deal in 2015, had been "satisfying" so far.
Hyproc Shipping Chooses AMOS2
During a formal ceremony held at the local Sheraton Hotel in Oran, Algeria on the 9th of September, Giampiero Soncini and Stefano Succi have signed a contract with Hyproc, a branch of the Algerian oil and gas company Sonatrach, the 12th largest oil and gas company in the world. The project (called HYceo) includes the delivery of AMOS software for the Hyproc fleet of LNG carriers, consultancy and bespoke software development, and an extended personnel training program. The project has to be completed by end 2010. SpecTec Italy has linked with Hyproc's team in Algeria, Ernst&Young in Paris (Hyproc bid consultant), Oracle in Algeria and Veson in the USA on this contract in order to present a coordinated and workable bid. (www.spectec.net)
RINA Group Wins Greek LNG Terminal Expansion Contract
The international verification and engineering RINA Group will carry out Basic Engineering Design, Environmental and Social Impact Assessment, Safety and other studies for the expansion of Greece’s only LNG terminal, at Revithoussa. The four month project was awarded to RINA by DESFA (Hellenic Gas Transmission System Operator S.A.). The expansion of the LNG Revithoussa Terminal Cryogenic Facilities will boost the maximum sustainable gas send-out rate to 1400 Nm3/h (with a peak send-out rate of 1650 Nm3/h). The existing terminal consists of an import jetty, two full containment storage tanks, plus one under construction, re-gasification equipment and send-out facilities.
Venezuelan Sales of New Crude Blends to US Double in Jan
Sales to the United States of new Venezuelan crude blends made with imported oil nearly doubled in January to 176,000 barrels per day (bpd), but the rise was not enough to offset a decline in total oil shipments, according to Reuters trade data. Venezuela's state-run company PDVSA started buying Algerian light crude in October from Sonatrach to use it as diluent for its own extra heavy oil output. China and the United States have been receiving cargoes of the new blends since then, but disagreements over terms of the Algerian oil sales have caused PDVSA to halt the purchases, according to industry sources. PDVSA and its joint venture partners sent 736,000 bpd of crude to the United States last month, down 10.5 percent from December.
Peru Workers Plan Strike That Could Disrupt LNG Exports
Natural gas workers in Peru plan to hold an indefinite strike starting Dec. 29 that would disrupt production of the widely-used fuel as well as Royal Dutch Shell Plc's liquefied natural gas exports, the union SUTRAPPEC said Thursday. Some 200 unionized workers needed to operate Peru's Camisea gas fields will down tools to press Argentine energy company Pluspetrol to offer better wages and benefits in a new labor agreement, said SUTRAPPEC spokesman Juan Carlos Vargas. Pluspetrol owns a controlling stake - 27.2 percent - in the Camisea consortium that produces the vast majority of Peru's natural gas from a remote jungle region. Pluspetrol and Netherlands-based Shell, which exports liquefied natural gas derived from Camisea gas production, did not immediately respond to requests for comment.