You can cut a deal with the Devil, but you better make sure the Devil has the money to pay for the pipeline. Forbes reports today that the stakes are very high for investing in Iran, and Turkey has found out the hard way: it has failed to get financing from overseas big money for a $3.5 billion gas deal with the Islamic Republic, a development which points to further problems for the likes of Shell and Total in getting their Iran deals done..
The Turkish Energy Ministry was quoted as saying Wednesday that state-owned energy company TPAO is going it alone, once an agreement is finalized later this month, to develop several phases of the South Pars natural gas field in Iran for $3.5 billion.
With international pressure from the European Union and the United States mounting over Iran's pursuit of nuclear power, international investors are less willing to invest hard cash by putting down money down, regardless of the financially lucrative rewards.
"It is increasingly impossible to get financing," said Global Insight analyst Samuel Ciszuk. He said that with costs going up all the time across the energy sector, it would be even harder to make sure the budget of $3.5 billion would be feasible.”
Sunday, October 7, 2007
Saturday, October 6, 2007
Natural Gas Pipeline Expansion - Part 2
Tidelands Oil & Gas Corporation has received a commitment with Cheniere Corporation to fund the development of Tidelands' planned Burgos Hub Export/Import Project.
This natural gas project seeks to connect the North American pipeline grid to natural gas supplies and markets in northern Mexico.
Cheniere has purchased an 80 percent equity interest in the natural gas pipeline project in exchange for up to $9 million in current and future payments and royalties to be paid to Tidelands by third-party customers who use the natural gas pipeline.
Houston-based Cheniere (AMEX: LNG) specializes in the development of liquefied natural gas receiving terminals and natural gas pipelines along the Gulf Coast.
"With Cheniere as a partner, we will be able to accelerate development of the project to streamline the North American natural gas market," Tidelands President and CEO James B. Smith says.
San Antonio-based Tidelands (OTCBB: TIDE) received an initial payment of $1 million when Cheniere signed on to the project on Sept. 28.
Additional payments will be made as construction begins on each phase of the project. In addition, Cheniere will pay Tidelands $25,000 per month for 24 months to provide management consulting on the project.
Cheniere has also agreed to fund, at its discretion, all up-front project development fees up and until construction begins on each phase. After that time, the companies will share development expenses.
Phase I of the project will consist of a pipeline extending from a natural gas plant in Hidalgo County, Texas, to Estacion Arguelles in Tamaulipas, Mexico, eventually connecting to Monterrey.
Phase II of the project will involve the construction of a pipeline extending from a station in Donna, Texas, to another station in Mexico owned by Pemex Gas y Petroquimica Basica.
Phase III of the project will be the construction of what's called the Brazil Storage facility, an underground natural gas storage facility in Rio Bravo, Mexico.
Tideland is a developer of natural gas pipeline, storage and receiving facilities.
This natural gas project seeks to connect the North American pipeline grid to natural gas supplies and markets in northern Mexico.
Cheniere has purchased an 80 percent equity interest in the natural gas pipeline project in exchange for up to $9 million in current and future payments and royalties to be paid to Tidelands by third-party customers who use the natural gas pipeline.
Houston-based Cheniere (AMEX: LNG) specializes in the development of liquefied natural gas receiving terminals and natural gas pipelines along the Gulf Coast.
"With Cheniere as a partner, we will be able to accelerate development of the project to streamline the North American natural gas market," Tidelands President and CEO James B. Smith says.
San Antonio-based Tidelands (OTCBB: TIDE) received an initial payment of $1 million when Cheniere signed on to the project on Sept. 28.
Additional payments will be made as construction begins on each phase of the project. In addition, Cheniere will pay Tidelands $25,000 per month for 24 months to provide management consulting on the project.
Cheniere has also agreed to fund, at its discretion, all up-front project development fees up and until construction begins on each phase. After that time, the companies will share development expenses.
Phase I of the project will consist of a pipeline extending from a natural gas plant in Hidalgo County, Texas, to Estacion Arguelles in Tamaulipas, Mexico, eventually connecting to Monterrey.
Phase II of the project will involve the construction of a pipeline extending from a station in Donna, Texas, to another station in Mexico owned by Pemex Gas y Petroquimica Basica.
Phase III of the project will be the construction of what's called the Brazil Storage facility, an underground natural gas storage facility in Rio Bravo, Mexico.
Tideland is a developer of natural gas pipeline, storage and receiving facilities.
Friday, October 5, 2007
Natural Gas Pipeline Expansion
Gulfstream Natural Gas System, L.L.C. announced today that it has accepted the certificate issued by the Federal Energy Regulatory Commission authorizing the company to expand its pipeline system to provide natural gas service to Progress Energy's Bartow Power Plant in Pinellas County, Fla.
The expansion project, known as Phase IV, is designed to increase Gulfstream's system capacity by approximately 155,000 dekatherms per day. It will include construction of approximately 17.5 miles of 20-inch diameter pipeline that will connect the existing Gulfstream pipeline to the Bartow Power Plant. The project also will require the installation of additional compression in Coden, Ala., and Manatee County, Fla.
"We appreciate the efforts of the FERC and other state and federal agencies in reviewing this application," said Brad Reese, Gulfstream vice president. "Progress Energy is a major electric provider and we welcome the opportunity to help them meet the region's growing energy needs for many years to come."
The expansion project, known as Phase IV, is designed to increase Gulfstream's system capacity by approximately 155,000 dekatherms per day. It will include construction of approximately 17.5 miles of 20-inch diameter pipeline that will connect the existing Gulfstream pipeline to the Bartow Power Plant. The project also will require the installation of additional compression in Coden, Ala., and Manatee County, Fla.
"We appreciate the efforts of the FERC and other state and federal agencies in reviewing this application," said Brad Reese, Gulfstream vice president. "Progress Energy is a major electric provider and we welcome the opportunity to help them meet the region's growing energy needs for many years to come."
Thursday, October 4, 2007
Natural Gas Is Up Again on Storm Watch
Natural gas prices rose in New York on Tuesday on speculation that a storm might move into the Gulf of Mexico and threaten production platforms and pipelines.
A weather system over the southeastern Gulf and the southern tip of Florida has some "potential for subtropical or tropical cyclone formation" over the next couple of days as it moves west, the U.S. National Hurricane Center said Tuesday.
"This could be the last gasp chance of getting a storm," said Michael Rose, trading director at Angus Jackson in Fort Lauderdale, Florida. "The temperature of the water is so hot it may be ripe" to produce a major storm, he said.
The weekly sea-surface temperature in the Gulf waters near Florida averaged about 29 degrees Celsius (84 Fahrenheit) as of Sept. 26, according to the U.S. Climate Prediction Center. Warm water is needed for storms to form.
Natural gas for November delivery rose 37.7 cents to $7.427 per million British thermal units on the New York Mercantile Exchange.
A weather system over the southeastern Gulf and the southern tip of Florida has some "potential for subtropical or tropical cyclone formation" over the next couple of days as it moves west, the U.S. National Hurricane Center said Tuesday.
"This could be the last gasp chance of getting a storm," said Michael Rose, trading director at Angus Jackson in Fort Lauderdale, Florida. "The temperature of the water is so hot it may be ripe" to produce a major storm, he said.
The weekly sea-surface temperature in the Gulf waters near Florida averaged about 29 degrees Celsius (84 Fahrenheit) as of Sept. 26, according to the U.S. Climate Prediction Center. Warm water is needed for storms to form.
Natural gas for November delivery rose 37.7 cents to $7.427 per million British thermal units on the New York Mercantile Exchange.
Wednesday, October 3, 2007
Natural Gas Prices in United States Up Again
Natural gas prices rose on a rally in natural-gas futures that likely helped crude oil barrel prices pare its losses by the close of business today. Natural-gas prices were up more than 5%, supported by the potential for storm activity in the Gulf of Mexico.
For crude oil, the oil market consensus at the moment considers it "either profit taking or correction, or both," said Charles Perry, chairman of energy-consulting firm Perry Management. "I believe it is a little of both."
"Lots of money has been made [on paper] the last two weeks for those who are long, and they know full well hogs get slaughtered," he said. "So it is time to lock in the profit."
For crude oil, the oil market consensus at the moment considers it "either profit taking or correction, or both," said Charles Perry, chairman of energy-consulting firm Perry Management. "I believe it is a little of both."
"Lots of money has been made [on paper] the last two weeks for those who are long, and they know full well hogs get slaughtered," he said. "So it is time to lock in the profit."
Tuesday, October 2, 2007
Gazprom Seeks to Reassure Europe
Gazprom has taken a step to make its European clients rest a little easier by using some of its large reserves in the Shtokman fields to supply gas to Europe, officials of the German-Russian consortium that will transport the fuel said Monday.
Confirming for the first time that the Shtokman fields would be tapped, the officials said that Gazprom was seeking to reassure European customers that Russia would develop one of the largest offshore natural gas reserves in the world.
Europe increasingly depends on Russian gas, buying more than a quarter of its total from Gazprom, the state-owned Russian energy monopoly. Energy analysts said Europe, which imported around 330 billion cubic meters of gas in 2005, would require an additional 200 billion cubic meters per year by 2015.
Confirming for the first time that the Shtokman fields would be tapped, the officials said that Gazprom was seeking to reassure European customers that Russia would develop one of the largest offshore natural gas reserves in the world.
Europe increasingly depends on Russian gas, buying more than a quarter of its total from Gazprom, the state-owned Russian energy monopoly. Energy analysts said Europe, which imported around 330 billion cubic meters of gas in 2005, would require an additional 200 billion cubic meters per year by 2015.
Monday, October 1, 2007
Sakhalin, Russia - Wild West of Oil in the East
Sakhalin, Russia is in the midst of a black gold rush for crude oil, which is a throw back to the old gold rush in the 19th century west.
30 percent of Russian oil and natural gas has been reported to be buried under the territory of Sakhalin, Russia. Projections include 2.7 billion barrels of oil in 11 oil fields, 1.261 trillion square meters of natural gas in 18 natural gas fields and 2.5 billion tons of coal in 52 coal mines as confirmed most recently by the Korea Trade-Investment Promotion Agency office in Vladivostok, Russia. The above numbers if true would take care of Korea’s oil need for three years and natural gas for sixty years.
The black oil rush was initiated by Exxon Mobil in 2005 and followed by Royal Dutch Shell and BP, as well as China, India, Japan and Turkey paying frequent visits to Sakhalin.
The Korea National Oil Corporation is also set to deliver annual 1.5 million tons of liquefied natural gas (LNG) from Sakhalin back home starting in 2008. It is the first time for Korean natural gas consumers to meet natural gas from Sakhalin.
30 percent of Russian oil and natural gas has been reported to be buried under the territory of Sakhalin, Russia. Projections include 2.7 billion barrels of oil in 11 oil fields, 1.261 trillion square meters of natural gas in 18 natural gas fields and 2.5 billion tons of coal in 52 coal mines as confirmed most recently by the Korea Trade-Investment Promotion Agency office in Vladivostok, Russia. The above numbers if true would take care of Korea’s oil need for three years and natural gas for sixty years.
The black oil rush was initiated by Exxon Mobil in 2005 and followed by Royal Dutch Shell and BP, as well as China, India, Japan and Turkey paying frequent visits to Sakhalin.
The Korea National Oil Corporation is also set to deliver annual 1.5 million tons of liquefied natural gas (LNG) from Sakhalin back home starting in 2008. It is the first time for Korean natural gas consumers to meet natural gas from Sakhalin.
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