Posts Tagged ‘LNG’

Michigan comes to Australia: Chevron MD draws stark comparison on LNG wages

The state of Western Australia is almost half the size of Russia but home to only 2.5 million people, almost 2 million of whom live in and around the state capital of Perth.

The pleasant city has grown rapidly on the back of Australia’s resources boom. The region’s fast-growing mining, oil and gas industries have seen sleek new office towers rise above the city’s older Victorian heritage buildings, staffed by neatly attired office workers pacing purposefully to well paid jobs, A$4 ($3.76) ‘flat white’ coffees in hand.

So it was a resource industry-friendly city in which to hold the Australian Petroleum Production and Exploration Association’s annual conference and trade show, which ran April 6-9 and attracted a record-breaking 3,600 delegates, making it – according to the organizers – the biggest oil industry conference in the southern hemisphere.

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Backers of US LNG exports want to weaken Russia’s hold, but it may not matter

Shortly after President Obama said there would be “costs” for Russian military intervention in Ukraine, a Republican US senator tried to focus the crisis on US liquefied natural gas exports.

“The United States has abundant supplies of natural gas just waiting to be exported to our allies,” said Senator John Barrasso, a Wyoming Republican and vocal supporter of giving potential US exporters unfettered access to the global market. “If President Obama is serious about helping the people of Ukraine, he will immediately expedite the approval process for liquefied natural gas exports. American natural gas exports would help Ukraine free itself from Russian energy and Putin’s political manipulation.”

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SPR oil put up for sale on the day Ukraine’s new chief is in town

One trader speaking to a Platts reporter had this to say about the decision by the Department of Energy today to sell 5 million barrels of oil from the Strategic Petroleum Reserve.

“The Gulf Coast market has plenty of barrels,” he said. “They should have done it a few weeks ago when the Gulf Coast was tight due to all the weather delays.”

A few weeks ago, however, Arseniy P. Yatsenyuk wasn’t in Washington. He’s the interim President of Ukraine, and he’s in DC today.

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Will LNG prices in Asia continue to be oil-linked?

The simple answer to that question is that there is no simple answer.

Historically, LNG prices were linked to oil because LNG was displacing oil and that practice continued until US LNG export projects were proposed. Buyers from the US export projects will get LNG based on Henry Hub gas prices because in most cases they will be responsible for buying US gas and transporting it by pipeline to their contracted export projects to be liquefied.

That access to those Henry Hub-priced supplies has spurred buyers to seek gas-indexed prices in their new purchase contracts, displacing traditional oil-indexed prices.

A number of buyers, especially in Japan, are pushing proposed British Columbia export projects to use the US benchmark Henry Hub gas price as the index for LNG.

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Europe still needs Russian gas: CERA speakers

Let’s try to avoid “the U word.”

That was the polite suggestion of an IHS consultant Wednesday in ironically opening a panel discussion on Russian gas exports at the IHS CERAWeek conference in Houston, ongoing while the U word–Ukraine–continues to simmer.

“Diplomatic crisis come and go,” Thane Gustafson, senior director of IHS’ Russian and Caspian energy group said and a man who has been commenting on Soviet and Russian energy affairs for many years.

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With export applications growing are US regulators poised for a pause?

Since May, the US Department of Energy has granted just five applications to export liquefied natural gas to countries which do not have free trade agreements with the US. Meanwhile, the queue for these coveted approvals has grown 24 applications deep.

The pace has frustrated LNG export proponents, who have accused the Obama administration of standing in the way of the budding domestic LNG export industry, but it has befuddled them as well.

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InterOil’s Papua New Guinea LNG project finally looks set to take off

It seems that 2014 might be the year that InterOil’s long-touted LNG project in Papua New Guinea finally takes some significant steps toward realization.

Crucially, it looks like InterOil’s latest proposal for the development of its Elk and Antelope gas fields has the unqualified support of the PNG government, something the company has not always enjoyed in the past.

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A tour of the most controversial proposed US LNG export facility

On a cold, rainy day this week, officials with Dominion led a small media tour of the Cove Point facility, where it hopes to begin exporting liquefied natural gas by late 2017.

Just a 90-minute drive from Washington, DC, the facility has become a key piece in the ongoing debate over US LNG exports, drawing both praise as a viable, new avenue to get Marcellus Shale gas to Asian markets and criticism from environmental and community groups hoping to delay the project and ultimately shut it down.

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Energy Economist: The burden that Japan is facing in its higher energy costs

Energy costs in Japan are reaching a critical point. The economy is growing too slowly to offset the burden of increased commodity energy imports. Renewables will add further costs. Bringing the country’s nuclear capacity back on-line appears to be the only option, but the process is proving slow. As it progresses, Japanese oil imports will fall, but LNG and coal usage in fiscal 2014 are still expected to reach historic highs. Ross McCracken looks at the issue in this month’s entry to The Barrel from Platts Energy Economist.

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Russia is starting 2014 in a strong natural gas position

Relations between the European Union and Russia tend to see-saw, with neither side able to maintain its dominance for long. Where natural gas is concerned, the past few years have seen Gazprom on its  back foot.

The European Commission’s probe into Gazprom’s oil indexed contracts, its insistence on the move from border toward hub trading, and the compulsory unbundling of supply from transportation affecting Gazprom’s joint ventures in Europe were all furiously challenged by the Kremlin, but so far with no effect.

As the new year gets under way, though, the picture is looking very different, with Russia winning on several fronts.

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