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Petronas signs up with Gas Today

ASEAN LNG Trading (ALTCO), a subsidiary of Petronas, has inked a LNG sale and purchase agreement with Woodside Petroleum for the supply of uncommitted cargoes from the Pluto Gas Project, in Western Australia.
The agreement, through to 2014, involves the sale of 19 cargoes of LNG to ALTCO and is in addition to the existing LNG sale and purchase agreements with foundation customers Kansai Electric and Tokyo Gas. LNG facilities for the Pluto Gas Project will involve a single LNG production train at the Burrup LNG Park with forecast production of 4.3 MMt/a, with second and third trains expected to be added. Gas will be sourced from the Pluto and Xena fields located approximately 190 km northwest of Karratha, and piped to the trains via a 180 km, 914 mm offshore pipeline.

Malaysia – the No.2 liquefied natural gas exporter

Malaysia will likely ship less to top buyers in Asia, leading to less export revenues for the trade-reliant Southeast Asian country and forcing its customers to look elsewhere.

The presentation by government minister Idris Jala at an industry conference gave no further details on its future LNG import needs in the next few years.

“I think you are going to increasingly see Malaysia become a portfolio player because it reduces their own contract risk,” Di Brookman, an analyst with CLSA in Sydney said.

“They have to import gas to make up for what is increasingly a hard feedstock to find.”

Malaysia last month raised natural gas prices to cope with higher demand and a ballooning subsidy bill.

As its domestic gas needs grow, Malaysia’s state oil firm Petronas will likely begin to depend more heavily on a global portfolio of gas supplies to meet its existing contracts with major buyers like Japan and Korea.
Malaysia is the top supplier of LNG to Japan, the world’s number one importer of the supercooled fuel. South Korea also depends heavily on Malaysia, its third largest supplier after Qatar and Oman, for its LNG supply.
Petronas will likely draw on supplies from its Gladstone LNG project in Australia and their newly acquired stake in Energy Resources Corp’s Canadian shale gas assets to fill both domestic and export needs, Brookman said.

State power firm Tenaga Nasional has said Malaysia’s electricity demand is set to rise 5 percent this year as the economy expands. In the first quarter of 2011, gross domestic product rose 4.6 percent on year.
Malaysia relies on a mix of coal, LNG and hydro power for its electricity needs. Capacity expansion is vital for Malaysia because the country would have to tap into its reserve power capacity in 2015 if no new generating sources are established by then.

Higher power demand will lead to less export earnings for Malaysia, which derives about 5-7 percent of its total exports from LNG shipments.

its existing contracts with major buyers like Japan and Korea.

Malaysia is the top supplier of LNG to Japan, the world’s number one importer of the supercooled fuel. South Korea also depends heavily on Malaysia, its third largest supplier after Qatar and Oman, for its LNG supply.
Petronas will likely draw on supplies from its Gladstone LNG project in Australia and their newly acquired stake in Energy Resources Corp’s Canadian shale gas assets to fill both domestic and export needs, Brookman said.

State power firm Tenaga Nasional has said Malaysia’s electricity demand is set to rise 5 percent this year as the economy expands. In the first quarter of 2011, gross domestic product rose 4.6 percent on year.

Malaysia relies on a mix of coal, LNG and hydro power for its electricity needs. Capacity expansion is vital for Malaysia because the country would have to tap into its reserve power capacity in 2015 if no new generating sources are established by then.

Higher power demand will lead to less export earnings for Malaysia, which derives about 5-7 percent of its total exports from LNG shipments.

NGV gas to last another 250 years

Natural gas was one of the main topics touched on by Dr Birol, who spoke at the Energy Market Authority’s (EMA) Distinguished Speaker Programme, which was attended by nearly 300 industry players in the energy sector.

Sharing key findings from IEA’s special report, “Are We Entering a Golden Age of Gas?” Dr Birol said that the building of an LNG terminal in Jurong Island was “very timely”.

“It’s definitely going to put Singapore in a very good position in the region to be a regional hub. This will definitely put Singapore in a very advantageous position in the region,” said Dr Birol, who was named by Forbes Magazine as the world’s fourth most powerful and influential person in the global energy scene,

EMA CEO Chee Hong Tat said the LNG terminal is on track to complete by the second quarter of 2013.

When in operation, Singapore’s LNG terminal will be Asia’s first open-access, multi-user LNG terminal, allowing different companies to process LNG by processing and storing up to six million tonnes per annum (Mtpa) in its three tanks.

Mr Chee also said LNG has seen a strong uptake by Singapore companies, having sold about 2.3 Mtpa of LNG to mostly power generation companies as of end-May this year. There is also interest from industrial companies outside the power generation sector to purchase LNG to fuel their new businesses and project expansions, added Mr Chee.
Compared to other fossil fuels, natural gas is considered by industry players and academics to be the “cleanest”, producing less carbon than other hydrocarbon fossil fuels, thereby reducing carbon emissions.
Energy production and sources have been responsible for producing two-thirds of the world’s carbon emissions, noted Dr Birol.
However, natural gas alone cannot help mitigate carbon emissions from climate change. Renewable energy sources have to be part of the balance, and so far, all countries with a strong renewable energy programmes are backed their governments, he said.

Mr Chee also said LNG has seen a strong uptake by Singapore companies, having sold about 2.3 Mtpa of LNG to mostly power generation companies as of end-May this year. There is also interest from industrial companies outside the power generation sector to purchase LNG to fuel their new businesses and project expansions, added Mr Chee.

Compared to other fossil fuels, natural gas is considered by industry players and academics to be the “cleanest”, producing less carbon than other hydrocarbon fossil fuels, thereby reducing carbon emissions.

Energy production and sources have been responsible for producing two-thirds of the world’s carbon emissions, noted Dr Birol.

However, natural gas alone cannot help mitigate carbon emissions from climate change. Renewable energy sources have to be part of the balance, and so far, all countries with a strong renewable energy programmes are backed their governments, he said.

PNOC-EC takes over natural gas stations from the Shell group

PNOC-Exploration Corp. (PNOC-EC) is taking over the operations of the first mother and daughter compressed natural gas (CNG) stations from the Shell group.

According to Energy Undersecretary Jay Layug, the government is finalizing an agreement with Pilipinas Shell Petroleum Corporation (PSPC) for the transfer of the Laguna-based CNG station to PNOC-EC. “We met already with the Malampaya Consortium, PSPC, PNOC-EC, and the CNG-bus operators and we’re already finalizing all needed memoranda or agreements to effect the transfer of the CNG mother and daughter refilling station to PNOC-EC,” he said.

After the takeover, PNOC-EC will put up another CNG daughter station in the Philippine Ports Authority’s property in Batangas, aside from the existing one which is located in Mamplasan, Laguna. “We expect to complete that some time in the next six weeks. And then hopefully by October this year, you will see a new daughter station in Batangas running on CNG,” he said.

He noted that “the bus operators were more than happy when they heard that PNOC-EC will take over. We have to take control of the project if only to ensure success.”

However, Layug said the CNG price, under the PNOC-EC, would be slightly higher but would still be lower the prevailing diesel prices.
“It will slightly increase. Right now the price of CNG is around P14.52, and now we anticipate when PNOC-EC takes over, since it’s a new investment, it might increase a bit by P4 to P6, which is still much cheaper than diesel,” he said.

With the addition of new CNG station, he said they expect more buses to run on CNG. He said this development would kick off the new CNG industry in the transport sector.
“To us, it does not matter whether pilot or not – it’s still a project. In fact, our objective is to increase the buses. Right now, we only have around 40 buses.

We want to increase to 1,000 in the next three years,” he said.

He said the CNG would still be supplied by the Shell group. The supply from the two daughter stations, for the meantime, would still be hauled by trucks as a new gas pipeline has yet to be built for this purpose.

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