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Chinese Teapots – The Game Changer In China’s Oil Industry

China’s privately owned refineries are the new force in the crude oil market. Once sidelined due to Chinese regulations, these refineries (known as “teapots” because of their small size in comparison with giant state-owned companies) are now importing as much as 1.2m barrels of crude oil per day into China. This accounts for as much as 15 per cent of the country’s total crude oil imports. The incremental demand has catapulted China into the position as the world’s largest oil importer, above the United States.1 The impact has been felt ...

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LNG Update: Jordan Cove LNG Export Facility

In early December, the FERC denied requests for rehearing of its March 11, 2016 Order denying the applications of Jordan Cove Energy Project, L.P. (“Jordan Cove”) to site, construct and operate an LNG export terminal in Coos Bay Oregon (“Jordan Cove LNG Terminal”) and Pacific Connector Gas Pipeline, LP (“Pacific Connector”) to construct and operate an approximately 232-mile interstate natural gas pipeline originating at the Oregon/California border and terminating at the Jordan Cove LNG Terminal (“Pacific Connector Pipeline”).55 Under the Natural Gas Act, FERC authorizes the construction and operation of ...

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Total in talks to buy Iranian LNG project-sources

Total is in talks to buy a multi-billion dollar stake in Iran’s partly-built liquefied natural gas (LNG) export facility, Iran LNG, seeking to unlock vast gas reserves. The French oil major — the first of its peers to strike deals in Iran after sanctions — seeks entry into Iran LNG at a discount to the pre-sanctions price in exchange for reviving the stalled project, two sources with knowledge of the matter said. A third source confirmed Total was in the running for a stake, alongside several other oil majors, but ...

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Pakistan: LNG outlook

Pakistan grew up on natural gas. For decades, much of our power generation requirement was met by this fuel after substantial domestic reserves started being discovered from the 1950s. In addition, we used cheap gas to fuel the requirement for our domestic and industrial heating. Then in the 1960s, as the green revolution took off in agriculture, we used it for fertiliser production which fuelled the farm economy. Then, in 1974 came the oil shock and massive devaluation of the rupee. Pakistan was able to greatly mitigate the effects, thanks ...

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Saudi Aramco to invest $7 billion in Petronas’ RAPID oil refinery

Malaysia’s Prime Minister Najib Razak announced on Monday that Saudi Arabia’s state oil company Saudi Aramco will invest $7 billion (5.6 billion pounds) into an oil refinery and petrochemical project in Malaysia’s southern state of Johor. Najib said the decision was made before noon on Monday after discussions between top executives from Saudi Aramco and Malaysia’s state-owned energy company Petroliam Nasional Bhd (Petronas), the sponsor of the $27 billion Refinery and Petrochemical Integrated Development (RAPID) project. Najib’s statement marks a dramatic reversal in RAPID’s fortunes after industry sources familiar with ...

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U.K.’s Biggest Gas Storage Turns to Albatross From Money Spinner

It’s been a backbone of the U.K.’s gas market for more than 30 years, but the future of the Rough gas storage facility in the North Sea has never been more in doubt. Owner Centrica Plc on Thursday raised the prospect that Rough, which provides about 70 percent of the U.K.’s storage capacity, may not work much longer as a place for traders and utilities to stockpile the fuel. The site has a limited life and will probably close in the next decade, Chief Executive Officer Iain Conn said on ...

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The Natural Gas Outlook For 2017

Prices Prompt-month gas prices have plummeted, down to the $2.60 mark from the mid-$3.90s we saw in late-December and the $3.20-3.45 range that persisted for so long after that. Interestingly enough, in its February STEO, EIA has maintained its mid-$3.50s projection for average Henry Hub prices for 2017, compared to the January STEO. This is of note because winter increasingly appears unlikely to “show up.” I’m thinking EIA will change this in the March STEO….perhaps lowering its projection for gas prices this year into the mid-$3.20s range. For comparisons sake, ...

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U.S. Gas ‘Pain Train’ May Chug Along as Spring Fever Grips Bears

U.S. natural gas prices are off to the worst start to a year since 2006, and the rout may not be over yet. Eight of 12 traders and analysts surveyed by Bloomberg see futures sliding further after dropping 29 percent so far this year. Three were bullish and one predicted prices would hold steady. Record warmth from the Midwest to the East Coast has decimated gas demand for heating, leaving inventories above normal for the time of year and sending prices plummeting to an eight-month low. While an uptick in ...

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GLOBAL LNG-Asian demand weakens as shoulder season kicks in

Asian spot LNG prices extended their losses for a seventh straight week as demand from key markets in North Asia dipped amid forecasts of a warmer-than-average spring. Spot prices for liquefied natural gas (LNG) for April delivery LNG-AS were pegged at about $6.20 per million British thermal units (mmBtu), about 20 cents below last week’s levels, according to traders surveyed by Reuters. “There is no demand as of now,” a Singapore-based trader said, referring to Japanese and South Korean demand for April cargoes of the supercooled fuel. “They will definitely ...

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China Aviation Oil looks to build long-term ties with independent refiners

Singapore-listed China Aviation Oil targets to consolidate its relationship with China’s independent refineries in 2017 to build a foundation for a sustained and gradual increase in crude oil trading volumes in future rather than a sudden jump, CEO Meng Fanqiu said Thursday, while announcing the company’s 2016 financial result. The company also aims to expand the supply value chain for bunker fuel oil and intends to lift the profitability of jet fuel trading with gradual volume growth, Meng said. Moreover, CFO Wang Chunyan said he expects the global macro-environment to ...

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U.S. Natural Gas Market Bulls And Bears Caged ‘Indefinitely’

The US natural gas market’s fundamental dynamics have evolved into effective circuit breakers that limit upward and downward price pressure. And there is little evidence to suggest the commodity can escape these price-constraining handcuffs anytime soon. The astonishing production volumes unleashed from shale and other tight resource plays starting in the mid 2000’s turned the market upside down and flipped the country from relative scarcity to exporting gas via both pipelines and LNG. The new reality is one where the battle between sources of supply and demand are so evenly ...

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Azerbaijan, future gas supplier to Europe, faces shortfall at home

Ex-Soviet Azerbaijan is on track to send gas to western Europe by the end of the decade, but is having to import supplies to use at home, compounding economic hardship that prompted protests last year. The country contains one of the world’s biggest gas fields, Shah Deniz on the Caspian Sea, but it has presold the next stage of output, due by 2020, to Greece, Italy, Turkey and other states keen to reduce their dependence on Russian gas. At the end of last year, as construction of the pipeline to ...

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Money Talks Louder Than Trump for Iran in Natural Gas Push

Iran Says It’s Focused on Building Persian Gulf Alliances Iran is hard at work gaining a foothold in the global energy market, and it’s not letting U.S. President Donald Trump’s confrontational tone stop it from trying. Political rhetoric is unlikely to turn into tangible impediments for Iran’s s ambition to join Russia and Norway in the ranks of major gas exporters, according to Deputy Oil Minister Amir Hossein Zamaninia. The nation has about $7 trillion worth of gas reserves sitting underground, based on European benchmark prices, and its doors are ...

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Analysis: Diesel, gasoline face ripple effects of India’s demonetization

India’s gasoline demand moved into negative territory in January, posting its lowest growth in four months as the cash shortage following the government’s move last year to demonetize 80% of the country’s legal currency kept a lid on consumption of transport fuels and sales of two-wheelers. While gasoline consumption was a shade lower year on year at 1.81 million mt in January, compared with 1.82 million mt in January 2016, it fell more than 8% from December’s 1.97 million mt. But market participants said they expected demand to bounce back ...

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‘India can be much larger producer, consumer of natural gas’

India has the potential to become a much larger producer and consumer of natural gas by 2022 when it is expected to surpass China in terms of population, a first of its kind Congressional report on India’s natural gas said today. “India’s natural gas plans have implications for a number of issues in which Congress has expressed an interest,” the bipartisan and independent Congressional Research Service (CRS) said in the report. The CRS noted that India could see greater demand for energy with its population expected to be around 1.4 ...

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