New base special 14 may 2014

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NewBase 14 May 2014 Khaled Al Awadi

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UAE: SNC-Lavalin awarded oil and gas contract with ADOC Oil Company Source: SNC-Lavalin

SNC-Lavalin has been awarded a contract by Abu Dhabi Oil Company Ltd. (Japan), (ADOC) to provide project management consultancy services for an expansion aimed at increasing production from oilfields located offshore of the UAE.

ADOC is currently operating the Mubarraz, Umm Al Anbar and Neewat AlGhalan offshore fields in the Arabian Gulf. The company intends to increase oil production from these existing oilfields and develop the Hail oil field as part of their expansion project. In order to achieve the higher production, ADOC is considering an expansion of the hydrocarbon handling capacity of the existing facilities at Mubarraz and the Umm Al Anbar Site Terminal.

SNC-Lavalin will provide project management consultancy services for the front-end engineering design (FEED) and engineering, procurement and construction (EPC) stages of the expansion project.

'We are pleased to support Abu Dhabi Oil Company Ltd. (Japan) on this important project,' said Terrance N. Ivers, Executive Vice-President, Oil & Gas, SNC-Lavalin Group Inc. 'This contract provides us with an opportunity to demonstrate our offshore capabilities in Abu Dhabi, a sector and region of the world which are key to our strategy going forward.'




OMV cuts 2014 oil production target on Libya uncertainty

Reuters and Bloomberg News

The Austrian oil and gas group OMV, which is owned by Abu Dhabi, cut its 2014 production target yesterday, saying the security situation in Libya, where its output has been halted since mid-March, was hard to predict.

Reporting a 21 per cent drop in first-quarter operating profit, in line with expectations, OMV said it now expected to produce 310-330,000 barrels of oil per day equivalent (boed) this year, down from its previous target of 320-340,000boed.

OMV said the lower end of the target represented no production for the rest of the year in Libya, which accounted for 10 per cent of its output before the 2011 uprising there, and the upper end

represented a return to normal levels. Escalating tensions in Libya, where protests at major oilfields and ports have decimated its oil production and slowed exports to a trickle, have pushed oil prices higher despite periodic agreements to reopen oil ports.

“The security situation in Libya and Yemen remains very difficult to predict. Whilst production in Yemen has been interrupted only for a few days in 2014, Libyan production was affected throughout the quarter,” OMV said in a statement. OMV’s key operating profit result of €668 million (Dh3.3 billion) was in line with the average analysts’ estimate of €665m.

The drop in earnings before interest and tax (clean CCS EBIT), which strips out special items and inventory holding gains or losses, was mainly due to a low refining margin already reported by the company. Clean CCS net profit fell 13 per cent to €302m, beating estimates of €290m.

OMV also renewed its focus on production and exploration, while disposing of less profitable units. The company sold its 45 per cent stake in the Bayernoil refinery at the end of last year. It is investing to exploit reserves in the Black Sea and the North Sea, while exploring in an area stretching from Sub- Saharan Africa to Tunisia.

OMV agreed with OAO Gazprom on April 30 to extend a planned natural gas pipeline into Austria to boost gas security and strengthen the country’s role as a regional gas hub.




Oman Drydock to launch new LNG ship repair partnership BYTIMES NEWS SERVICE

Muscat: Oman Drydock Company (ODC) will formally launch a new partnership targeting the LNG

carrier repair market at next

month's Posidonia trade fair in

Greece .

The new package is being

launched with DSEC, a

subsidiary of Daewoo

Shipbuilding and Marine

Engineering Company Ltd

(DSME), which is Oman

Drydock Company's official

partner

ODC Chief Executive Yong

Duk Park said Posidonia,

which is one of the shipping industry's biggest trade fairs, is an ideal location to raise the profile of

ODC and the new partnership. ODC has a 52 square metre stand in Hall 2 stand 2.217. "We are

very excited about marketing this new package and welcoming visitors to our stand to hear about

our plans," he said

"Working with the DSME, we believe we have developed one of the most advanced LNG repair

packages in the world. Our new services will cover areas such as cargo containment systems and

the supply chain of various materials," he said

"Meanwhile, we are also investing in new facilities including renovating our cryogenic shop so that

it can cater to repairing up to four LNGCs at any one time. Our expansion into LNGC will further

be strengthened by our new license to support the French engineering firm Gaztransport &

Technigaz which specialises in cargo containment systems for high-end LNG carriers," he added.

Park said the Greek shipping market is of vital importance to ODC ."ODC has already delivered

repairs for more than 50 Greek owned or operated ships," he said

Important relationship

"We have an important relationship with Dynacom Ship Management helping drydock a number of

its vessels including VLCCs. We are further proud to repair the Astro Polaris owned by Maran

Tankers which we delivered a day ahead of schedule."

Park said ODC will be looking to increase awareness of its world class facilities and workforce at

Posidonia.




Kuwait signs $3 billion deal to buy gas from BP Reuters

Kuwait signed a five-year liquefied natural gas (LNG) supply deal with BP on Tuesday, worth an

estimated $3 billion, as it seeks to meet rising energy demand to power air conditioning during scorching

Gulf summers.

Kuwait, a major Opec oil producer, already signed a $12 billion LNG supply deal with Royal Dutch Shell on Sunday and will also import gas from fellow Gulf state Qatar. The BP deal, signed by state-run Kuwait Petroleum Corp (KPC), will help Kuwait run its power plants through the hottest time of the year. KPC expects Kuwait will import a total of around 2.5 million tonnes of LNG, natural gas frozen to a liquid for transport on tankers, per year over the next few years through such contracts, said Nasser al-Mudaf, head of the company's international marketing division. He was refering to the deals with Shell, BP and state-run Qatargas. Kuwait began importing LNG in 2009. Over the previous four years it signed deals with Shell and Swiss-based trader Vitol to supply it during the peak power demand period from April to October

LNG TERMINAL OF MINA AL-AHMADI IN KUWAIT. Detailed inspection of South Pier in Mina Al-Ahmadi port




Pakistan : Gas reserves found in Sujawal By: Dawn , Khaleeq Kiani

The Mari Petroleum Company, a joint venture of the government and the Fauji Foundation, announced on Monday a ‘significant’ gas and condensate discovery with estimated reserves of about 20 billion cubic feet (BCF) in Sujawal district of Sindh.

“We have been blessed with a significant gas and condensate discovery in Sujawal Block’s Sujjal-1 well,” said the announcement.




The company termed the discovery significant because it was the first hydrocarbon discovery in Lower Goru Upper C-Sand in the southernmost part of the country.

It said the discovery would result in expansion of the hydrocarbon potentials for other exploration and production companies operating in the area, thus opening up the country’s prospects of tapping into new reservoirs in the region.

The work on Sujjal-1 well, the second exploratory well in Sujawal Block, was taken up on Jan 26 and drilled down to a depth of 2535m in Lower Goru Formation. As a result of testing, the well flowed gas and condensate at a rate of 13.1 MMCFD (million cubic feet per day) and 75 barrels per day (BPD), respectively, with wellhead pressure of 2477 PSI at 32/64” choke size, the company said.

It said the gas was of a good heating value of 1045 British thermal unit per cubic feet and its condensate API of 53 at 60 degree Fahrenheit. The Sujjal well was also successfully tested at Lower Goru Upper A-Sand, which recorded a gas flow rate of 2.1mmcfd and condensate of 3.5 BPD with wellhead flowing pressure of 163 PSI at 48/64” choke size.

The company put preliminary reserves potential of about 20BCF of gas and condensate (equivalent) within C-Sand interval whose value, based on currently applicable gas price translated into rupee, was estimated at Rs11.70 billion.

The Sujjal discovery will be a new source of indigenous energy supply and is expected to significantly add to the nation’s hydrocarbon reserve base, consequently contributing to a reduction in gap between the energy demand and supply.

The Sujawal Block was awarded to the company as operator with 100 per cent working interest in June 2006. The company drilled its first exploration well, Sujawal X-1, in 2010, which led to a gas and condensate discovery. The discovery has since been brought on stream supplying gas to the Sui Southern Gas Company and condensate to the Pakistan Refinery and Pak-Arab Refinery.

It said the Sujjal-1 discovery further improved its high success rate. At present the company operates two development and production leases and nine exploration blocks and also has joint venture interest in six other exploration blocks.

About Mari Petroleum Performance :-




Uganda repossesses Ngassa oilfield from UK exploration company Tullow Oil Source: Reuters via Yahoo! News

Uganda said it repossessed an oilfield that belonged to Tullow Oil after the period allotted to appraise the site expired. The London-listed exploration company said the field was uneconomical.

Uganda expects to start pumping crude in 2017 from the Albertine rift basin along its border with the DemocraticRepublic of Congo. Tullow, one of the three exploration companies in the country, said it is awaiting government approval for eight production applications it submitted to the government last year. Other companies looking for oil include France's Total and CNOOC Ltd of China, the only company with a production license.

A statement posted on a government website on Monday said the Ngassa field, which extends beneath Lake Albert and was formerly part of Tullow's Block 2, has two wells drilled in 2007 and 2009. The wells showed oil and gas deposits, although the field needed to be appraised to determine its reserves and other details.

'Time provided to complete the appraisal work on this field expired and no further extension for appraisal was given by Government,' said the statement posted on the Petroleum Exploration and Production Department website. 'The Ngassa discovery therefore ceased to be part of EA (exploration area) 2 ... this discovery area reverted to government.' Ngassa would now be included in areas to be re-licensed.

Tullow Uganda's corporate affairs manager, Conrad Nkutu, told Reuters the field had 'been written off due to offshore appraisal and development currently being uneconomic.'

Uganda is banking on billions of dollars in revenue from expected crude oil exports to turbo charge economic growth. Officials have said the country is targeting peak production of about 200,000 barrels per day, with exports of around 140,000, while the remainder will be processed domestically. Government geologists estimate Uganda's crude reserves at 3.5 billion barrels, although only about 30 percent of the Albertine basin has been explored. A new licensing round for the vacant exploration acreage is expected by the end of this year, and the government says about 40 petroleum companies have expressed interest.




Inpex Started Production from South Belut Gas Field Offshore Indonesia Source INPEX

Inpex Corporation announced Tuesday start of gas production from the South Belut Gas field in the South Natuna Sea Block B in Indonesia.

The Japanese firm is undertaking oil and gas development and production activities at the Block with ConocoPhillips, the operator, and Chevron.

In addition to the South Belut Gas field, the South Natuna Sea Block B holds the Belida Oil field, the Belanak Oil and Gas field, the Tembang Gas field, the Hiu Gas field, the Kerisi Gas field, the North Belut Gas field and the Bawal Gas field.

The field is expected to have a potential of natural gas production at a rate of approximately 120 MMscfd (approximately 20,000 boepd). The natural gas produced from the field will be supplied to Singapore via an existing international pipeline together with the natural gas produced from the Belanak Oil and Gas field, the Bawal Gas field and the Tembang Gas field.

According to Inpex, the production from the field will contribute significantly to secure long-term sales volumes of natural gas from the block.




AEE Identifies Technology Solutions for Cutting Carbon Emissions from Electricity Generation .. SOURCE Advanced Energy Economy

America's electric power system can be modernized for higher performance by adopting advanced energy technologies that reduce carbon emissions and provide a variety of other economic and system

benefits, according to a new report released today by the Advanced Energy Economy (AEE). AEE, the business voice of advanced energy, identified 40 technologies and services offered by advanced energy companies that can help meet requirements for greenhouse gas reduction and simultaneously modernize America's aging electricity infrastructure.

This technology-by-technology description of advanced energy benefits comes as the U.S. Environmental Protection Agency is expected to

release draft guidelines for regulating carbon emissions from existing power sources under Section 111(d) of the Clean Air Act in early June. Once that EPA rule is finalized in June 2015, states will be required to develop plans to meet the new emission standards.

AEE's Advanced Energy Technologies for Greenhouse Gas Reduction provides details on the use, application, and benefits of 40 specific advanced energy technologies and services, ranging from Behavioral Energy Efficiency to Voltage Volt-Ampere Reactive (VAR) Optimization. By incorporating these and other advanced energy technologies into their plans, states can not only meet carbon reduction goals but also improve the efficiency, resiliency, and cost effectiveness of service provided by electric utilities.

"The upcoming regulation of carbon emissions from power plants represents an opportunity to do what we need to do anyway – create a modern electric power system for the 21st century," said Graham Richard, CEO of AEE. "The technologies described in this report can help states meet the new environmental standards and improve the quality of electric power service at the same time. If we seize this moment to put the proven technologies of advanced energy to work on a wider scale, we can modernize the electric power system and power our economy."

The AEE report includes technologies ranging from zero- and low-emission electricity generation to sophisticated grid management tools:

o Building and Industry Energy Efficiency – innovations that increase end-use efficiency and capture energy waste from the biggest users of electricity, reducing emissions and cutting costs. For example, advanced materials like quality insulation along with efficient heating, ventilation and cooling (HVAC) equipment reduce power consumption, while energy management systems, software, and analytics optimize energy usage. According to McKinsey & Co., energy efficiency initiatives can reduce consumer energy demand by 23 percent by 2020 and achieve savings of $680 billion.

o Electricity Generation – zero-emission resources like wind, solar, hydroelectric and nuclear power, which provided 32 percent of U.S. electricity last year with no carbon emissions, and natural gas plants, which generated more than 25 percent of U.S. electricity with less than half the carbon emissions of coal-fired power plants.

o Electricity Delivery and Grid Management – resources that allow electricity distribution to be managed more effectively, with better protection against power outages. The Electric Power Research Institute estimates that a net investment of $400 billion over 20 years to deploy smart grid technology would produce a net benefit of $1.3 trillion to $2 trillion.




The full report, Advanced Energy Technologies for Greenhouse Gas Reduction, is available for download at: http://info.aee.net/epa-advanced-energy-tech-report. ( please go for it & read it )

These advanced energy technologies are well established in the marketplace and states have years of experience with policies related to them. AEE's Advanced Energy Now 2014 Market Report showed that advanced energy is a $1.1 trillion global market, as big as pharmaceuticals worldwide. The nearly $170 billion annual U.S. advanced energy market is equal in revenue to the U.S. airline industry. Advanced energy technologies are already providing value to customers, to the electricity system as a whole, and to local economies.

"This is a make-or-break moment for electric utilities and climate alike, and this report highlights a bright path forward," said Alex Laskey, President and Founder of Opower. "As AEE makes clear, revolutionary new technology can help utilities cut their carbon emissions, boost their bottom lines, and empower people worldwide to save energy and money. Embracing behavioral energy efficiency alone could abate 12 million metric tons of carbon dioxide pollution and save families $2.2 billion every year – and that's just one solution."

"Cutting carbon emissions from electricity generation must be a priority for the energy industry," said Doug Egan, CEO of Competitive Power Ventures. "The AEE report provides a real-world roadmap to achieve demonstrable reductions. At CPV, we are working hard to slash carbon emissions and improve the economy by developing clean, natural gas-fueled energy centers. Our energy projects replace old and inefficient facilities, provide on-demand electricity to integrate renewables and stimulate regional economies."

"The U.S. electricity sector causes about 40 percent of this country's carbon emissions, which presents a huge opportunity for renewable energy to provide significant reductions," said Susan Reilly, CEO of RES Americas and newly appointed Chair of the Board of Directors of the American Wind Energy Association. "After energy efficiency, land-based wind energy is the most efficient, scalable, and cost-effective source of carbon-free electricity. Wind is no longer an alternative – it's an imperative."

"With advanced energy technologies, energy use can be managed and controlled in ways that save money, meet organizational objectives, and reduce emissions at the same time," said Tim Healy, Chairman and CEO, EnerNOC. "Energy intelligence software gives all parts of the organization – from the operations team to the chief financial officer – better tools to set priorities, take the actions that will yield the biggest results, and measure and track performance."

"The initial investment our country made in advanced energy is working, and our energy system is transforming quickly. The cost of solar, for example, has fallen tremendously, and it was the second largest source of new U.S. generating capacity added in 2013," said Arno Harris, Chairman and CEO of Recurrent Energy. "The future is now; advanced energy is mainstream and ready today to help the U.S. meet its decarbonization goals."




China promotes both fuel efficiency and alternative-fuel vehicles

to curb growing oil use ….Source: U.S. Energy Information Administration

Unprecedented motorization in China has led to significant increases in oil demand and oil imports. In response to growing oil imports, the Chinese government is adopting a broad range of policies, including improvements in the fuel economy of new vehicles and the promotion of alternative-fuel vehicles.

Consumption of gasoline in China grew from 0.9 million barrels per day (bbl/d) in 2003 to more than 2 million bbl/d in 2013. This continues a trend of significant growth in China's transportation sector since the 1990s. Increasing oil demand requires China to import more petroleum from other countries, and since 2009, China has been importing more than half of its petroleum needs. Under the Energy Saving and New Energy Vehicle Plan for 2012 to 2020 released in 2012, average passenger car fuel economy is targeted to increase to 34 miles per gallon by 2015 and 47 miles per gallon by 2020.

In its 12th, and current, Five-Year Plan, the Chinese government also launched a new strategy to promote new energy vehicles (NEV; vehicles that are partially or fully powered by electricity) and to support its domestic automobile industry to mass-produce NEVs. The government plans to invest an estimated $15 billion in alternative-fuel vehicles during the next 10 years. The national target for cumulative production and sales of electric and plug-in hybrid vehicles is 500,000 units by 2015. The NEV target for 2020, originally set at 5 million vehicles, was recently scaled back to 1 million vehicles.

To meet NEV penetration targets, to boost consumer demand, and to make alternative-fuel vehicles more affordable, the Chinese government has been offering many financial incentives, including some $4 billion allocated for energy-saving products, primarily NEV and household appliances. Additionally, in 2012 the Chinese Ministry of Finance announced it would provide annual subsidies up to two billion yuan ($323.6 million) to support NEV manufacturing. In September 2013, the government announced additional subsidies that will support the growth of new energy vehicle ownership through 2015.

For electric vehicles, subsidies from the central government are often matched by local subsidies. For example, in Beijing, the central government subsidy of 60,000 yuan ($9,700) is matched by a subsidy of




equal amount from the city of Beijing. Many other cities also offer considerable subsidies. For example, the Shenzhen government offers one of the highest subsidies for electric vehicles in the country—120,000 yuan ($19,400) per passenger vehicle—reducing the price of such vehicles by more than half. In addition to financial incentives, some cities offer other incentives, including free license plates for NEVs and exemptions from vehicle license plate quota systems. For example, Shanghai (where a license plate can cost as much or more than an entry-level domestically manufactured car) offered free license plates for 20,000 electric vehicles purchased before the end of 2013. Guangzhou offers 12,000 free plates allocated by lottery, and Beijing offers electric vehicles an exemption from the vehicle license lottery, which prospective owners of gasoline-fueled automobiles are required to enter.

Despite many incentives, electric vehicles sales to date have been minimal. NEV sales account for less than 1% of total vehicle sales in China, which in 2013 remained the world's largest vehicle sales market for the fifth year in a row. According to China Daily, as of March 2013, an estimated 39,800 electric vehicles were on the road, approximately 80% of which are used for public transport.

Some of the reasons behind low sales of NEVs to date are high vehicle costs despite government subsidies, inadequate charging infrastructure, limited driving range when compared to conventional internal combustion engine vehicles, lack of a national industry standard for charging connectors, consumer education and acceptance of the new technology, and vehicle safety issues, among others.




Polarcus Nadia’ Wraps Up 3D Seismic Survey in Aje Field (Nigeria) Press Release, May 13, 2014; Image: Polarcus

Panoro has announced the completion of a 3D seismic survey over OML 113 license in Nigeria.

The Polarcus vessel MV Polarcus Nadia started data acquisition on March 24, 2014 and

completed shooting on May 9, 2014.

The survey was acquired in conjunction with the neighbouring OPL 310 with Afren and covered an area of approximately 1045 km2 in the OML 113 portion, covering the entire block. The processing and

interpretation of the OML 113 data will be carried out by Afren in tandem with OPL 310 license data where Afren has a Technical Service Agreement. Once final processing is complete, scheduled for H2 2014, the data will be incorporated into the existing OML 113 seismic, geological and well data.

The database will be interpreted to mature the existing exploration leads into drillable prospects. These prospects may include Upper Cretaceous targets similar to Aje and additional syn-rift targets already successfully drilled in OPL 310. The interpretation of the new data will also be used to position

additional wells in the Aje field development phase, following on from the Aje-4 re-drill and the Aje-5 development wells which are currently scheduled for early 2015.

Aje is an offshore field located in the western part of Nigeria in the Dahomey Basin. The field is situated in water depths ranging from 100 to 1,000 meters about 24 km from the coast. Panoro Energy holds a 6.502% participating interest in OML113 (with a 12.1913% revenue interest and 16.255% paying interest in the Aje Field).

The Aje Field contains hydrocarbon resources in sandstone reservoirs in three main levels – a Turonian gas condensate reservoir, a Cenomanian oil reservoir and an Albian gas condensate reservoir.




RPS provides updated CPR for Azonto’s Gazelle field (Ivory Coast) Press Release: Azonto

Azonto has announced the completion of an updated Resources Report (Competent Persons

Report or “CPR”) for Block CI-202 offshore Cote d’Ivoire prepared by RPS Energy Services Pty

Ltd (“RPS”) on behalf of Vioco Petroleum Ltd, Azonto’s 35% owned affiliate, as operator of the

block.

The new CPR updates the previous CPR for Block CI-202 dated 15 January 2013, also prepared by RPS, specifically in relation to the Gazelle Field following further analysis of the results of the 2012 drilling programme and the 2012 3D seismic data, and in light of the revised Field Development Plan (“FDP”) submitted in January 2014.

The new CPR includes for the first time production profiles for the Gazelle Field and economics based on the terms of the new Production Sharing Contract signed in November 2013. The gross field contingent resources targeted by the proposed FDP are 47 bcf of gas plus 0.9 mmbbls of condensate on a 1C basis, and 92 bcf of gas plus 1.8 mmbbls of condensate on a 2C basis.

The resources are classified as contingent since the proposed FDP has yet to be approved and final investment decision (“FID”) on the project has not yet been taken. The 1C, 2C and 3C resources net to Vioco are shown in the table below, both with and without PETROCI’s back-in for an additional 16% interest (at its election). Vioco’s current participating interest of 87% would fall to 71% should PETROCI exercise its back-in option. PETROCI is the state owned oil and gas company in Cote d’Ivoire.




The Net Present Value (“NPV”) to Vioco in each case has been computed based on estimates of capex and opex provided by Vioco and assuming a gas sales price to achieve NPV breakeven on the project for the 1C case, in accordance with the terms of the Memorandum of Understanding signed with the Ministry of Petroleum & Energy in September 2013. Condensate prices were based on a long term forecast for Nigerian Bonny Light crude, which typically trades at a slight premium to Brent.

The new CPR did not consider contingent or prospective resources outside the Gazelle Field. The previous CPR detailed additional gross mean contingent resources on Block CI-202 of 128 bcf of gas and 37.3 mmbbls of oil or condensate, together with gross mean unrisked prospective resources of 2,936 bcf of gas and 898 mmbls of oil or condensate.

Azonto is working closely with Vitol E&P, its partner in Vioco to progress negotiations with the relevant entities in Cote d’Ivoire on the gas sales agreement and the mechanics of gas transportation from Vioco’s shore-based processing plant, in order to be able to take the FID on the Gazelle development as rapidly as possible.

Commenting on today’s announcement, Azonto’s Managing Director, Rob Shepherd said: “We are

pleased that the results of the independently prepared Resources Report are in line with the technical

assumptions developed by Vioco, thereby confirming the quality of the work undertaken and moreover the

resources that are to be developed from the Gazelle field. We look forward to updating the market on the

progress towards FID in due course.”




Ukraine needs more gas to avoid problems in winter - Russia's Gazprom Reuters

Ukraine needs a total of 18.5 billion cubic metres of gas in storage to avoid problems in winter, double what it has now, Gazprom Deputy Chief Executive Vitaly Markelov said on Tuesday.

Moscow and Kiev are on the cusp of another gas war after Kiev has refused to pay at higher levels demanded by Gazprom.

The Russian company is now asking for prepayment for June and says it will only provide gas that is paid for. "According to our colleagues (in Ukraine), 9 bcm is in storage. To pass through autumn and winter periods normally, we estimate that (Ukraine) needs around 18.5 bcm (in total)," Markelov told a news

conference. "So around 9 bcm more is needed."

Ukraine wants to change the conditions of a 2009 contract that locked Kiev into buying a set volume, whether it needs it or not, at $485 per 1,000 cubic metres - the highest price paid by any client in Europe. Moscow dropped the price to $268.5 after then-President Viktor Yanukovich turned his back on a trade and association agreement with the European Union last year but reinstated the original price after Yanukovich was ousted in February.

Twice in the past decade, price disputes between Moscow and Kiev have led to reduced supplies of Russian gas to European clients via Ukraine, a conduit for about half the gas Europe imports from Russia. Ukraine received a first tranche worth about $3.2 billion from a $17 billion two-year aid programme from the International Monetary Fund last week, which Moscow hopes Kiev will use to cover gas debt.

Anatoly Yanovsky, Russia's deputy energy minister, said on Monday Moscow would be ready to continue talks with Kiev on gas only after Kiev paid off its debt. A Gazprom representative said on Tuesday gas flows to Europe via Ukraine remained stable.

CHINA HOPES

Russia supplies around a third of European gas needs, an amount which has spurred efforts to try to reduce their interdependence. Europe is scrambling to diversify supply, while faced with Western sanctions, President Vladimir Putin has looked to the east for new export markets.

Putin plans to visit China on May 20 and Gazprom hopes to sign a gas contract after years of talks to supply Beijing with 38 bcm per year - volumes comparable to deliveries to Germany, its biggest gas client. Yanovsky said that the gas contract was "98 percent" ready. The cornerstone for Gazprom and Chinese CNPC disagreements was the price of gas. Sources told Reuters last month that Gazprom was hoping China would agree a price of $10-$11 per mmBtu (million British thermal units).

China is believed to pay $9 per mmBtu to Turkmenistan, the Central Asian state that beat Gazprom to the Chinese market. Asked if Gazprom was considering inviting Chinese companies to develop its fields, an offer which could help spur moves to sign the contract, Markelov said: "We are not looking at such cooperation."

Rosneft, Russia's state oil company, also has big gas ambitions, including in Asia, and sources say it might be one of the factors to quicken Gazprom's decision to sign the deal with China.




General American LNG fires up new export LNG terminal project in USA

The Houston-based General American LNG LLNC (GALNG) company is securing land along the US Gulf Coast to build and operate the American Coast liquefied natural gas (LNG) Terminal project.

This American Coast LNG Terminal project is expanding the long list of the already announced LNG production and export facilities planned on the Texas and Louisiana Gulf Coast.

Since the shale gas production generated a glut all over country, the debate is rolling on if the US Administration should facilitate or refrain the LNG export projects.

On one side the low gas prices provide USA with a breaking competitive advantage on the petrochemical industry where number of ethylene crackers and nitrogen fertilizer plants are crafted on the engineering companies drawing boards.

On the other side, the shale gas producers still dream to see their gas prices taking off to pay bask their exploration and production capital expenditure.

In this context, these shale gas producer see in the export of LNG great opportunities to sell their gas at better prices than on the current domestic market.

So far the US Administration was delivering the export licences to the non-Free Trade Agreement (non-FTA) countries sparingly.

But the Ukraine crisis and related tension with Russia which may last more than expected is blowing a warm tail wind on the US export LNG promoters in opening wide doors to the European market.

This external context favors all the companies looking for financing projects such as GALNG American Coast LNG Terminal.




GALNG at pre-FEED on American Coast LNG project

Benefiting from nearly unlimited reserves of natural gas and from dense pipelines infrastructures, GALNG has been purposely established to build and operate such LNG export terminal on the Texas or Louisiana Gulf Coast.

With a first investment of $52 million, GALNG acquired 300-acre land with 900 meters direct access on the deep water seafront.

To be developed in phases, the American Coast LNG Terminal project should have a capacity of 8 million tonnes per year (t/y).

The natural gas should be supplied to the GALNG through the Houston Pipeline Company.

For this LNG export project, GALNG is planning to invest $4.6 billion capital expenditure.

Then to finance its project, GALNG is setting a business model based on LNG Master Service Purchase Agreements (MSPA) with bankable buyers.

Currently GALNG is already working on the pre-front end engineering and design (pre-FEED).

Assuming that the Master Service Purchase Agreements get signed on the same period as the front end engineering and design (FEED) is completed, General American LNG is expecting to start the engineering, procurement and construction (EPC) contract in 2016 for the first shipment from the American Coast LNG Terminal Project Phase-1 in 2022 to be followed by the Phase-2 in 2024.




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Khaled Al Awadi is a UAE National with Khaled Al Awadi is a UAE National with Khaled Al Awadi is a UAE National with Khaled Al Awadi is a UAE National with a total of 24 yearsa total of 24 yearsa total of 24 yearsa 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

Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for Technical Affairs Specialist for Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy consultation for

the GCC area via Hawk Energy Service as a UAE the GCC area via Hawk Energy Service as a UAE the GCC area via Hawk Energy Service as a UAE the GCC area via Hawk Energy Service as a UAE operations base , Most of the experience were spent as the Gas Operations operations base , Most of the experience were spent as the Gas Operations operations base , Most of the experience were spent as the Gas Operations operations base , Most of the experience were spent as the Gas Operations

Manager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , heManager in Emarat , responsible for Emarat Gas Pipeline Network Facility & gas compressor stations . Through the years , he has developed has developed has developed has developed

great experiences in the designing & congreat experiences in the designing & congreat experiences in the designing & congreat experiences in the designing & constructingstructingstructingstructing of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply of gas pipelines, gas metering & regulating stations and in the engineering of supply

routes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many Mroutes. Many years were spent drafting, & compiling gas transportation , operation & maintenance agreements along with many MOUs for OUs for OUs for OUs for

the local authorities. Hethe local authorities. Hethe local authorities. Hethe local authorities. He has become a reference for many of the Oil & Gas Conferences held in the UAE andhas become a reference for many of the Oil & Gas Conferences held in the UAE andhas become a reference for many of the Oil & Gas Conferences held in the UAE andhas become a reference for many of the Oil & Gas Conferences held in the UAE and Energy program broadcasted Energy program broadcasted Energy program broadcasted Energy program broadcasted

internationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satelliteinternationally , via GCC leading satellite ChannelsChannelsChannelsChannels . . . .

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NewBase 14 May 2014 K. Al Awadi

Economy & Finance

New base special 14 may 2014