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Disturbances in Iran intensified on Jun 13, when two oil tankers were set on fire in the Strait of Hormuz, for which the United States blamed Tehran.
Russia's ambitious Northern Sea Route (NSR) requires 735 billion roubles ($11.7 billion) in investments, with the state budget to provide a third and the rest to come from companies and banks, the head of state nuclear firm Rosatom, Alexey Likhachyov, said. Rosatom, the world's top nuclear company in terms of foreign orders, was selected by the Russian government to operate the NSR - the Arctic route Moscow wants to turn into a new Suez - coordinating development of the project among its users.
The U.S. Energy Information Administration is scheduled to release its oil and natural gas inventory data on June 26–27. The data will likely be a short-term driver for oil and natural gas prices.
Thailand's largest energy firm PTT Pcl has stepped up investments in the retail and industrial power sectors as a buffer against the impact of a global economic slowdown on its oil refining and chemical businesses, its CEO said on Monday. Asia's oil and petrochemical producers are facing thin profit margins as fuel and chemical supply exceeds demand amid new production plants starting up, while global demand growth has slowed amid the trade war between the United States and China, the world's two largest oil consumers. The International Energy Agency has revised down its 2019 oil demand growth estimate by 100,000 barrels to 1.2 million barrels per day due to the worsening prospects for world trade, although stimulus packages and developing countries should boost growth going into 2020.
Slowing economic growth in China is weighing on demand expectations for thermal coal in the world's biggest market for the fuel, while global moves towards cleaner energy are compounding problems arising from a glut in supply. This supply-demand tandem is likely to keep prices for coal used in power plants and the manufacture of cement under pressure in coming months and perhaps longer, industry sources said as Asia's biggest coal conference got underway. Prices for benchmark premium Australian coal out of Newcastle hit their weakest since September 2016 last week at $70.78 per tonne and are likely to fall further given a slowing global economy.
The plan, spearheaded by Trump's son-in-law Jared Kushner, calls for the creation of a global investment fund to boost the Palestinian and neighbouring Arab state economies with some 179 infrastructure and business projects. Shaul Arieli, a former Israeli peace negotiator, said many were not new. In an interview with Reuters, Kushner said the plan's authors had studied why previous peace efforts had failed in formulating a fresh initiative.
Japanese company Inpex has today announced that it has filed a revised plan of development for the US$18-$20 billion Abadi Liquefied Natural Gas Project. The revised plan is for a land-based development scheme and an annual production capacity of 9.5 million metric tons of LNG and up to 35,000 barrels of condensate each day. A metric ton is equivalent to 2,204.6 U.S. pounds.
The Strait of Hormuz, located in the area where Iran shot down a US military drone, is a strategically important waterway for the world's oil transits, which lies at the heart of regional tensions. Iran warned on Friday it would "decisively defend its territory" against eventual US retaliation, while the airlines KLM, Lufthansa, Malaysia Airlines, Qantas and Singapore Airlines said they were suspending flights over the strait. The Strait of Hormuz links the Gulf to the Gulf of Oman and is situated between Iran and Oman.
(Bloomberg) -- A potential conflict between the U.S. and Iran could be far more disruptive for liquefied natural gas markets than to the world’s crude shipments.About a quarter of the world’s LNG goes through the Strait of Hormuz, the narrow sea conduit that borders Iran and through which tankers carrying about one-fifth of the world’s oil transit, according to the U.S. Energy Information Administration. Major importers are also less prepared for LNG supply disruptions, because they hold a fraction of the inventories they do for oil.Tehran has threatened in the past to halt fuel shipments through the vital passage. Tensions in the region are high after U.S. President Donald Trump approved and then later called off military strikes against Iran on Thursday night after Iranian forces shot down an American Navy drone over the strait.“Whatever spike you get in oil, you will likely get twice the spike in spot LNG,” said David Hewitt, an oil and gas analyst at Macquarie Capital Ltd. “The market would be unable to” make up the full amount of shipments from the region if deliveries through the strait were halted, he said.Most of Qatar’s gas shipments head to Asian nations and Japan, South Korea and India are among its top LNG buyers, according to the International Gas Union. Inventory levels and seasonal demand could also impact any disruption on global markets.To read about why the Strait of Hormuz is a flashpoint, click here.While most major importers don’t have as much storage for gas as they do for oil -- Japan had about 19 days of LNG imports on hand at the end of March versus enough oil in strategic reserves to cover 133 days of deliveries -- the startup of new export projects and mild weather have curbed LNG demand, leaving the market oversupplied.Brent oil on Thursday jumped 4.3%, the most since January, after the U.S. drone was shot down and is now trading near $65 a barrel. Benchmark LNG Japan/Korea Marker futures, which have hovered near a three-year low, gained 1.4% to $4.615 per million British thermal unit the same day.To contact the reporters on this story: Stephen Stapczynski in Singapore at firstname.lastname@example.org;Dan Murtaugh in Singapore at email@example.comTo contact the editors responsible for this story: Ramsey Al-Rikabi at firstname.lastname@example.org, Aaron Clark, Jasmine NgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Asian spot prices for liquefied natural gas (LNG) slipped this week on the back of a surplus of cargoes globally while imports from North Asia appeared to be slowing down this month, industry sources said. Spot prices for August delivery to Northeast Asia are estimated to be about $4.60 per million British thermal units (mmBtu), down about 10 to 30 cents from last week, the sources said. Prices for July delivery are estimated at about $4.40 per mmBtu, stable from the previous week, they added.
Asian spot prices for liquefied natural gas (LNG) slipped this week on the back of a surplus of cargoes globally while imports from North Asia appeared to be slowing down this month, industry sources said. Spot prices for August delivery to Northeast Asia are estimated to be about $4.60 per million British thermal units (mmBtu), down about 10 to 30 cents from last week, the sources said. A flurry of sell tenders flooded the global market while demand remained stable, industry sources said.
SINGAPORE/DHAKA (Reuters) - Bangladesh has received interest from twelve companies to build the country's first onshore liquefied natural gas (LNG) import terminal, according to four sources familiar with the matter. Rupantarita Prakritik Gas Co, part of state-owned oil and gas company Petrobangla, earlier this year had requested expressions of interest (EOI) from potential terminal developers for a land-based LNG regasification terminal at Matarbari in the Cox's Bazar district of southern Bangladesh. Twelve companies have submitted their interest to build the terminal, said two officials from Rupantarita Prakritik Gas Co.
Lobby groups representing some of the world's biggest polluters have sent thousands of delegates to negotiations aimed at limiting global warming since UN climate talks began, according to data obtained by AFP. The United Nations Framework Convention on Climate Change (UNFCCC) brings together nations, environmental groups, scientists and policymakers to work on measures to stave off the worst social, economic and ecological threats posed by runaway temperatures. Trade associations that represent oil and gas majors are entitled under the convention's own rules to attend annual UNFCCC talks and inter-sessional meetings as observers.
It's not quite yet a flood but Australian resource companies are increasingly embracing renewable energies into their mining and natural gas operations even in the face of a federal government that veers toward climate scepticism. Among recent developments are moves by Rio Tinto to convert its iron ore trains to hybrid power, the commissioning of a solar power plant at an oil and gas facility operated by Santos in South Australia state, and battery storage being integrated into ConocoPhillips' liquefied natural gas (LNG) plant in Darwin.
Antero Resources had the second-highest negative correlation with natural gas prices. Except Cabot Oil & Gas (COG), all of the natural gas–weighted stocks on our list had correlations of over 37% with US crude oil prices.
Kuwait Foreign Petroleum Exploration Co. (KUFPEC) is looking for strategic acquisitions in the coming year and a half as it aims to boost its oil and gas production to 150,000 barrels of oil equivalent per day (boed) by 2020, the company's chief said. Sheikh Nawaf al-Sabah, acting chief executive of KUFPEC, told Reuters the state-run company will focus on oil and gas exploration in countries such as in Malaysia, Indonesia, Pakistan and Australia. "We are currently at 120,000 BOE (per day), and we expect to be close to 150,000 BOE (per day) thanks to organic growth we foresee in our existing projects," Sheikh Nawaf said in an interview in Kuwait City.
Construction delays and cost blowouts could hit the next wave of liquefied natural gas (LNG) projects as there are a limited number of contractors able to handle the huge projects, three developers said on Wednesday. Around $200 billion in projects across the globe from Australia to the United States are racing to be approved over the next two years, vying to provide around 65 million tonnes of new annual supplies that are needed by 2025, according to estimates by consultants Wood Mackenzie. "Unless you're in FEED in the next six to nine months, unless you're in FID in the next two years, there's going to be no one to build your project," Oil Search Executive General Manager Ian Munro told the conference.
Anadarko Petroleum's (APC) FID decision on Mozambique's first onshore LNG facility will boost economic development of the African nation.
Two of the biggest producers of coal used to fire power plants are integrating their operations in Wyoming and Colorado, aiming to keep the commodity competitive with natural gas and renewable-energy sources.