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Foster Wheeler gets Russian liquefied natural gas contract

ZUG, Switzerland, Nov. 4 (UPI) — Engineering company Foster Wheeler said Monday it was selected to help with initial developments of a Russian liquefied natural gas project for the Far East. Foster Wheeler, which has headquarters in Switzerland, said it secured one of two contracts from Russian energy company Rosneft and its U.S. counterpart Exxon Mobil to take on the initial front-end engineering design work for the project. Rosneft said it aims to build a facility that draws on the natural gas reserves on Sakhalin Island. The plant will be designed to process 5 million tons of LNG per year, officials said. Rosneft announced in September it chose CB&I UK as a recipient of a front-end engineering and design contract for the LNG project. “With our initial front-end engineering and design contractors on board now we will see the project begin to take shape in a matter of months,” […]

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Energy Needs Trump Turkey-Israel Tension

ISTANBUL—Turkey and Israel’s political divergence in the past few years is of little concern to businessmen, especially when some of the world’s largest natural gas deposits are at stake. Israel, together with Cyprus, sits on more than 120 trillion cubic feet of natural gas in the Eastern Mediterranean, according to U.S. Geological Survey assessments. That’s enough to meet natural gas needs for 2,400 years in energy-starved Turkey, which relies on Russia for 60% and Iran for 20% of its imports. The trick is navigating the choppy political waters. It’s a difficult proposition as Turkey-Israel ties have been at best strained for the past three years, and Ankara doesn’t even recognize the Cypriot government in Nicosia. But executives from Turkish and Israeli energy firms say their deals can allow corporations to surmount the obstacles politicians can’t overcome. If they succeed, Turkey may see a fifth of its annual natural gas […]

Posted On : Published By : Tom Whipple
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Coal Displacing Nat Gas…Already

In January, 2012, the price of nat gas plunged to below $2/mcf due to overproduction by shale operators. Such low prices did, indeed, prompt utilities to switch from coal fired generation to natural gas fired generation if they had the capacity. Industry crowed that this was the shape of things to come with electricity costs plummeting for consumers and heralding the end of “King Coal”. Unfortunately, as with most aspects of unconventional shale production, this proved short lived and oversold. Glaring numbers show another picture altogether. Electricity generation from natural gas began to fade only months after it had gained ground in much the same way that shale gas wells fade only months after initial production. As gas prices moved up to trade between $3.50-4/mcf, utilities promptly began switching back to using coal for generation. According to EIA (Energy Information Administration): “During the first half of 2013…the price of […]

Posted On : Published By : Tom Whipple
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Ukraine minister: Naftogaz debt to Gazprom to be resolved Monday

KIEV, Ukraine, Nov. 4 (UPI) — A dispute over late payment of $882 million owed by Ukraine’s Naftogaz to Russia’s Gazprom will be resolved Monday, a Ukrainian minister said. Minister of Energy and Mines Eduard Stavytskyy told Ukrainian broadcaster Channel 5 Saturday during a soccer game between ministers and members of Parliament the problem of debts for Russian gas will be hammered out Monday. He said the talks between Naftogaz and Gazprom are in the the final stages, but wouldn’t reveal the nature of any of the negotiations, or if the government will step in to provide financial help for the Ukrainian company. “I want to emphasize that the issue is actually solved and on Monday you will learn the details,” Stavytskyy said. He said last week he had given the two energy companies until Thursday to come to an agreement on the debt, but that deadline was pushed […]

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U.S. Energy Rigs Gain Four to 1,742, Baker Hughes Says

(Corrects gas rig move in second paragraph.) Rigs targeting oil and natural gas in the U.S. increased by four this week to 1,742, according to Baker Hughes Inc. (BHI) Oil rigs rose by 19 to 1,376, data posted on the company’s website show. The gas count fell 16 to 360, the Houston-based field services company said. Miscellaneous rigs rose one to six. The total count gained for the second time in seven weeks. Rigs have fallen from 1,800 a year earlier as producers use new technologies to shorten well-boring time and boost productivity in shale formations. The improvements have driven crude output to the most in two decades, helping the U.S. meet 86 percent of its energy needs in the first seven months of 2013, on pace to be the highest annual rate since 1986. “Technological advances have led the way to the widespread use of new oil and […]

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Russian PM plays down 'gas war' talk, warns Ukraine on EU

MOSCOW (Reuters) – Russian Prime Minister Dmitry Medvedev said he saw no reason for Moscow to cut gas supplies to Ukraine over an unpaid bill for now, playing down talk of an imminent "gas war" that might disrupt flows to Europe. In an interview with Reuters, he denied Russia’s demands for payment had anything to do with opposition to Ukraine signing agreements with the European Union this month which would mark a historic shift away from former imperial master Moscow. But the 48-year-old ex-president said the "special relationship" between the two former Soviet republics would change if Ukraine moved closer to Europe and that Kiev should no longer come to Moscow seeking loans. Russian gas export monopoly Gazprom said on Tuesday that Ukraine, which is dependent on supplies of Russian gas, had failed to settle a $882 million bill for August deliveries and demanded it be paid urgently. Medvedev […]

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Russian PM plays down ‘gas war’ talk, warns Ukraine on EU

MOSCOW (Reuters) – Russian Prime Minister Dmitry Medvedev said he saw no reason for Moscow to cut gas supplies to Ukraine over an unpaid bill for now, playing down talk of an imminent "gas war" that might disrupt flows to Europe. In an interview with Reuters, he denied Russia’s demands for payment had anything to do with opposition to Ukraine signing agreements with the European Union this month which would mark a historic shift away from former imperial master Moscow. But the 48-year-old ex-president said the "special relationship" between the two former Soviet republics would change if Ukraine moved closer to Europe and that Kiev should no longer come to Moscow seeking loans. Russian gas export monopoly Gazprom said on Tuesday that Ukraine, which is dependent on supplies of Russian gas, had failed to settle a $882 million bill for August deliveries and demanded it be paid urgently. Medvedev […]

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Gazprom eyes gas foundation in Far East market

MOSCOW, Nov. 1 (UPI) — Russian gas company Gazprom said Friday it was teaming up with gas processing company SIBUR to build a processing plant in the Far East. “Gazprom is planning to construct a gas processing plant in Belogorsk [near northeast China] with the annual capacity of up to 2.1 trillion cubic feet, where ethane and other valuable components will be stripped from natural gas,” the company said in a statement. “SIBUR, in its turn, intends to create a gas chemical complex technologically connected with the gas processing plant for the purpose of processing ethane.” Gazprom provided no financial terms for the deal. The company said the partnership would draw gas from the Chayandinskoye and Kovyktinskoye fields, which contain a combined 95 trillion cubic feet of estimated gas reserves. Gazprom has focused its efforts on meeting the energy demands of expanding Asian economies. “The joint activities will result […]

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Algeria readies for natural gas overhaul

LONDON, Oct. 31 (UPI) — British energy services provider Petrofac announced it secured a $650 million contract to work to extend the life of a natural gas field in Algeria. Petrofac said it secured the 32-month engineering contract through a partnership with Italian contractor Bonatti. The company said the work is for construction and commissioning of new processing facilities at the Alrar natural gas field in southeast Algeria, in service since 1987. “This development builds on Petrofac’s long history of successful execution in Algeria where we have been operating successfully for more than 15 years,” Subramanian Sarma, managing director for the company’s onshore division, said in a statement Wednesday. Petrofac offered no reserve estimate for Alrar. It’s working alongside BP and others at a complex in southern Algeria expected to produce more than 300 billion cubic feet per year beyond 2013. The Organization of Petroleum Exporting Countries said natural […]

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Phillips 66 to Build Texas Terminal to Export Propane, Butane Overseas

Phillips 66 PSX -1.23% Phillips 66 U.S.: NYSE $ 64.43 -0.80 -1.23% Oct. 31, 2013 4:05 pm Volume (Delayed 15m) : 3.57M AFTER HOURS $ 64.43 0.00 0.00% Oct. 31, 2013 5:11 pm Volume (Delayed 15m): 212,797 P/E Ratio 11.11 Market Cap $39.86 Billion Dividend Yield 2.42% Rev. per Employee $11,771,600 10/31/13 Phillips 66 to Build Texas Ter… More quote details and news » PSX in Your Value Your Change Short position plans to build a terminal in Texas aimed at exporting propane and butane overseas to meet growing demand for those inexpensive fuels, which are being produced in the U.S. alongside oil and natural gas. The company’s terminal will be built at the company’s existing site in Freeport, Texas, on the coast south of Houston, and will be capable of exporting 4.4 million barrels of fuel a month. “There are attractive markets outside of the United States for […]

Posted On : Published By : Tom Whipple