(RTTNews) - Diversified manufacturer Honeywell International Inc. (HON: News ) said Thursday that it has agreed to buy the Germany-based RMG Group, comprising of RMG Regel + Messtechnik GmbH and all of its subsidiaries, in a deal valued at about US$400 million.
RMG, which specializes in the design and manufacture of natural gas control, measurement and analysis equipment including flow metering technology, regulating products and safety devices for oil and gas companies, has estimated 2009 sales to be US$290 million.
Morristown, New Jersey-based Honeywell said the acquisition will build its presence particularly in the areas of natural gas transportation, storage, distribution and industrial consumption.
RMG aligns strongly with Honeywell's field instrumentation and control solutions. RMG's gas flow meters and regulating devices complement Honeywell's pressure and temperature transmitters as well as liquid natural gas level gauges.
Monday, June 29, 2009
Sunday, June 28, 2009
Russia Invites Shell for Sak3 and Sak4 Natural Gas
NOVO-OGARYOVO, Russia : Russian Prime Minister Vladimir Putin on Saturday invited Shell to participate in two new natural gas projects during a meeting with the Anglo-Dutch company's chief executive.
"I think it is fully possible to pursue cooperation further with Shell in other projects, such as Sakhalin-3 and Sakhalin-4," Putin said.
"Your work is successful and I thank you for that," the premier added. "It is not only successful but also ahead of schedule."
Shell's Jeroen van der Veer welcomed Putin's offer, calling it an "ideal time" to consider future energy projects in Russia.
"We are ready to move quickly," he told Putin.
Shell partnered with Russian gas giant Gazprom to launch Russia's first liquefied natural gas plant in February on the Pacific island in Russia's Far East.
In late 2006, Shell was essentially sidelined from the 22-billion-dollar (16-billion-euro) Sakahlin-2 plant, forced to sell its controlling stake in the project under Russian state pressure.
But Putin played down the troubled history of Shell's upstream investment in Russia on Saturday.
"Shell has been working in Russian for over 100 years," he said. "Today, Shell is present in many sectors... The most important contract being Sakhalin in which you have almost a 30 percent stake."
He said contracts handed out by Shell to Russian companies had amounted to 12 billion dollars, aiding development in the regions.
Shell signed an array of accords to partner with Sovcomflot, which owns Russia's largest shipping fleet, for the future construction of an LNG plant on the Yamal peninsula in northwest Siberia and transport of oil and gas from Russia's Arctic fields.
The Yamal peninsula in northern Russia is estimated to hold gas reserves of 5.9 trillion cubic metres, and Gazprom has set development of the region as a top priority as production at its current Soviet-era fields begins to decline.
Russia has said it wants to develop its LNG capacity to diversify away from pipeline-reliant exports to Europe and place more emphasis on new Asian and US markets.
"These are very serious documents. It allows not only to put use to Sovcomflot's vessels, but to think on the development of our competencies in the construction of tankers, which will be needed in the near future," Putin said.
Shell has owned a 27.5 percent stake in the Sakhalin Energy project since its sale to Gazprom in 2006 gave the state monopoly a 51 percent share in the project.
The Gazprom takeover was widely seen as a Kremlin-orchestrated move to regain control over the exploitation of the country's energy resources.
Sakhalin Island, on Russia's pacific border near Japan, sits atop a massive 45 million barrels in oil and gas reserves, according to estimates.
http://www.channelnewsasia.com/stories/afp_world_business/view/438942/1/.html
- AFP /ls
"I think it is fully possible to pursue cooperation further with Shell in other projects, such as Sakhalin-3 and Sakhalin-4," Putin said.
"Your work is successful and I thank you for that," the premier added. "It is not only successful but also ahead of schedule."
Shell's Jeroen van der Veer welcomed Putin's offer, calling it an "ideal time" to consider future energy projects in Russia.
"We are ready to move quickly," he told Putin.
Shell partnered with Russian gas giant Gazprom to launch Russia's first liquefied natural gas plant in February on the Pacific island in Russia's Far East.
In late 2006, Shell was essentially sidelined from the 22-billion-dollar (16-billion-euro) Sakahlin-2 plant, forced to sell its controlling stake in the project under Russian state pressure.
But Putin played down the troubled history of Shell's upstream investment in Russia on Saturday.
"Shell has been working in Russian for over 100 years," he said. "Today, Shell is present in many sectors... The most important contract being Sakhalin in which you have almost a 30 percent stake."
He said contracts handed out by Shell to Russian companies had amounted to 12 billion dollars, aiding development in the regions.
Shell signed an array of accords to partner with Sovcomflot, which owns Russia's largest shipping fleet, for the future construction of an LNG plant on the Yamal peninsula in northwest Siberia and transport of oil and gas from Russia's Arctic fields.
The Yamal peninsula in northern Russia is estimated to hold gas reserves of 5.9 trillion cubic metres, and Gazprom has set development of the region as a top priority as production at its current Soviet-era fields begins to decline.
Russia has said it wants to develop its LNG capacity to diversify away from pipeline-reliant exports to Europe and place more emphasis on new Asian and US markets.
"These are very serious documents. It allows not only to put use to Sovcomflot's vessels, but to think on the development of our competencies in the construction of tankers, which will be needed in the near future," Putin said.
Shell has owned a 27.5 percent stake in the Sakhalin Energy project since its sale to Gazprom in 2006 gave the state monopoly a 51 percent share in the project.
The Gazprom takeover was widely seen as a Kremlin-orchestrated move to regain control over the exploitation of the country's energy resources.
Sakhalin Island, on Russia's pacific border near Japan, sits atop a massive 45 million barrels in oil and gas reserves, according to estimates.
http://www.channelnewsasia.com/stories/afp_world_business/view/438942/1/.html
- AFP /ls
Saturday, June 27, 2009
Rig Count at 843 for Natural Gas
NEW YORK, June 26 (Reuters) - The number of rigs drilling for natural gas in the United States resumed its downward track, falling 5 to 687 this week, according to a report on Friday by oil services firm Baker Hughes in Houston.
U.S. natural gas drilling rigs have been in a mostly steady decline since peaking above 1,600 in September, but last week the count unexpectedly rose by 7 to 692, the first gain since November 2008.
Sources said new rigs in some prolific shale plays, such as Haynesville in Louisiana or Marcellus in Appalachia, may have been the reason for the unexpected gain.
The number of operating gas rigs now stands at 843 rigs, or 55 percent, below the same week last year, when there were some 1,530 active rigs looking for gas.
Near record-high gas production last year and a deep recession that sharply cut demand led to a severe oversupply that pressured gas prices this spring below the $4 per mmBtu level from their peak above $13 last July.
The 75 percent slide in natural gas prices over the past 11 months and tighter access to credit have forced many producers to scale back drilling operations.
With the natural gas drilling rig count still below 700, most analysts expect to see year-on-year output declines soon, probably early this summer, which should help tighten the overall supply-demand balance. (Reporting by Joe Silha; Editing by Walter Bagley)
U.S. natural gas drilling rigs have been in a mostly steady decline since peaking above 1,600 in September, but last week the count unexpectedly rose by 7 to 692, the first gain since November 2008.
Sources said new rigs in some prolific shale plays, such as Haynesville in Louisiana or Marcellus in Appalachia, may have been the reason for the unexpected gain.
The number of operating gas rigs now stands at 843 rigs, or 55 percent, below the same week last year, when there were some 1,530 active rigs looking for gas.
Near record-high gas production last year and a deep recession that sharply cut demand led to a severe oversupply that pressured gas prices this spring below the $4 per mmBtu level from their peak above $13 last July.
The 75 percent slide in natural gas prices over the past 11 months and tighter access to credit have forced many producers to scale back drilling operations.
With the natural gas drilling rig count still below 700, most analysts expect to see year-on-year output declines soon, probably early this summer, which should help tighten the overall supply-demand balance. (Reporting by Joe Silha; Editing by Walter Bagley)
Friday, June 26, 2009
Natural Gas Speculation in British Columia, Canada
Alberta is lagging behind British Columbia in terms of oil and gas land sales for the year, as companies in search of the next big play flock to that province.
One week ago, British Columbia had the ninth biggest oil and gas land rights sale in its history, amassing more than $178 million in bonus bids in the monthly auction – triple the combined total for the last five sales.
Eight of the bids in the June 17 sale were on parcels of land in the Horn River Basin, north of Fort Nelson, for a total of $173 million.
Comparatively, in Alberta’s June 10 land rights sale, 66 parcels of land were bid on in northern Alberta, including the Peace Country, for a total of more than $5.6 million.
So far in 2009, bids were made on 1,057 parcels of land in northern Alberta, netting more than $66 million, less than half of last week’s B.C. sale alone.
The next provincial land rights sale takes place today.
In the B.C. sale, companies paid between $2,100 and $11,765 per hectare; in Alberta the average price this year per hectare is $144.27.
But regardless of the numbers, the province says it remains confident in the future of its petroleum industry.
“There’s certainly an interest in the play that’s going on in northeastern B.C. and whenever something like this occurs – when there’s a big play – there’s a rush to the epicentre,” Alberta Energy department spokesman Bob McManus said from Edmonton.
“But that play will extend to Alberta in time. We’re confident that there will be activity in Alberta as a result of that play, portions of it do extend across the border into Alberta.”
But Kevin Rathburn, vice-president of the Grande Prairie Petroleum Association, said that in addition to the popularity of the Horn River natural gas play, the new provincial royalty framework implemented on Jan. 1 is discouraging companies from the province.
“I would say it’s probably the royalty scheme. It’s cheaper in B.C. to drill, you get more money back, our royalties are higher so there’s less (activity here),” Rathburn said.
“It’s just cheaper for them. They get a better return on the dollar with the lower royalties.”
Low natural gas prices, currently at less than $4 a gigajoule, are also affecting where companies decide to set up shop, he said.
“We (Grande Prairie) are in a mature field, so there’s going to be a rush for a new, hot play,” he said. “And there’s still going to be lots more infield drilling in the Grande Prairie area, but not at $3.90 per gigajoule. At that price they can’t make any money out of it.”
However, McManus said incentives introduced by Energy Minister Mel Knight in March are attractive for companies. The province is offering a $200-per-metre royalty credit to companies that drill new wells between April 1 and March 31, 2010.
In addition, a five per cent royalty rate will also be levied on the first year of production from wells drilled during that time period – a substantial amount less than the royalty regime that came into effect on Jan. 1.
“We have royalty schemes in place here in Alberta which are very attractive, certainly especially in terms of deep wells, so we feel that we are very competitive from that point of view,” McManus said.
“Right now especially, many wells which are operating in Alberta are paying lower royalties than they would in British Columbia or in Saskatchewan.”
For his part, B.C. Energy Minister Blair Lekstrom said last week’s land rights sale demonstrated that oil and gas companies are confident in the province’s future.
“I think it shows investor confidence in our province and in what we’ve been able to accomplish here through our regulatory regime, through the royalty incentive programs we’ve set,” Lekstrom said from Victoria.
Asked if B.C. has been actively courting companies leery of Alberta’s new royalty framework, Lekstrom said the province has been focusing on what it can do from within its own borders.
“We’re focused on what we have to offer, not on what others have done or haven’t done,” he said. “We’ve made it very clear at the beginning we have some ideas on what we’d like to do to attract investors and their capital to come to our province.”
rzaccagna@bowesnet.com
One week ago, British Columbia had the ninth biggest oil and gas land rights sale in its history, amassing more than $178 million in bonus bids in the monthly auction – triple the combined total for the last five sales.
Eight of the bids in the June 17 sale were on parcels of land in the Horn River Basin, north of Fort Nelson, for a total of $173 million.
Comparatively, in Alberta’s June 10 land rights sale, 66 parcels of land were bid on in northern Alberta, including the Peace Country, for a total of more than $5.6 million.
So far in 2009, bids were made on 1,057 parcels of land in northern Alberta, netting more than $66 million, less than half of last week’s B.C. sale alone.
The next provincial land rights sale takes place today.
In the B.C. sale, companies paid between $2,100 and $11,765 per hectare; in Alberta the average price this year per hectare is $144.27.
But regardless of the numbers, the province says it remains confident in the future of its petroleum industry.
“There’s certainly an interest in the play that’s going on in northeastern B.C. and whenever something like this occurs – when there’s a big play – there’s a rush to the epicentre,” Alberta Energy department spokesman Bob McManus said from Edmonton.
“But that play will extend to Alberta in time. We’re confident that there will be activity in Alberta as a result of that play, portions of it do extend across the border into Alberta.”
But Kevin Rathburn, vice-president of the Grande Prairie Petroleum Association, said that in addition to the popularity of the Horn River natural gas play, the new provincial royalty framework implemented on Jan. 1 is discouraging companies from the province.
“I would say it’s probably the royalty scheme. It’s cheaper in B.C. to drill, you get more money back, our royalties are higher so there’s less (activity here),” Rathburn said.
“It’s just cheaper for them. They get a better return on the dollar with the lower royalties.”
Low natural gas prices, currently at less than $4 a gigajoule, are also affecting where companies decide to set up shop, he said.
“We (Grande Prairie) are in a mature field, so there’s going to be a rush for a new, hot play,” he said. “And there’s still going to be lots more infield drilling in the Grande Prairie area, but not at $3.90 per gigajoule. At that price they can’t make any money out of it.”
However, McManus said incentives introduced by Energy Minister Mel Knight in March are attractive for companies. The province is offering a $200-per-metre royalty credit to companies that drill new wells between April 1 and March 31, 2010.
In addition, a five per cent royalty rate will also be levied on the first year of production from wells drilled during that time period – a substantial amount less than the royalty regime that came into effect on Jan. 1.
“We have royalty schemes in place here in Alberta which are very attractive, certainly especially in terms of deep wells, so we feel that we are very competitive from that point of view,” McManus said.
“Right now especially, many wells which are operating in Alberta are paying lower royalties than they would in British Columbia or in Saskatchewan.”
For his part, B.C. Energy Minister Blair Lekstrom said last week’s land rights sale demonstrated that oil and gas companies are confident in the province’s future.
“I think it shows investor confidence in our province and in what we’ve been able to accomplish here through our regulatory regime, through the royalty incentive programs we’ve set,” Lekstrom said from Victoria.
Asked if B.C. has been actively courting companies leery of Alberta’s new royalty framework, Lekstrom said the province has been focusing on what it can do from within its own borders.
“We’re focused on what we have to offer, not on what others have done or haven’t done,” he said. “We’ve made it very clear at the beginning we have some ideas on what we’d like to do to attract investors and their capital to come to our province.”
rzaccagna@bowesnet.com
Thursday, June 25, 2009
U.S. Natural Gas Supplies are Ample
NEW YORK (Dow Jones)--Natural-gas futures fell Wednesday along with other energy commodities amid a glut of natural gas and predictions for another large storage injection.
Natural gas for July delivery on the New York Mercantile Exchange was trading 8.9 cents lower, or 2.29%, at $3.79 a million British thermal units. The contract fell as low as $3.759/MMBtu in earlier trading.
Ample stocks of natural gas were helping mitigate forecasts for hot weather and an expected increase in demand for natural gas-fired power to cool homes and businesses.
"The heat is being somewhat ignored," said Lisa Zembrodt, commodity analyst of Louisville, Ky.,-based Summit Energy. "No matter how you look at it, there's gas out there to meet demand."
Zembrodt added the market is likely to track crude oil and related energy products until the gas market gets some "solid direction" from the storage report on Thursday.
The amount of gas in storage as of June 12 totaled 2.557 trillion cubic feet - about a third higher than last year and 22.6% above the five-year average. Traders are expecting another large injection on Thursday, providing yet another bearish consideration for the market.
The Energy Information Administration is due to release its weekly natural gas storage report at 10:30 a.m. E.T. on Thursday.
Jim Ritterbusch, president of the energy advisory firm Ritterbusch and Associates, is expecting a 100 bcf storage injection. "Although such a build would be downsized considerably from the prior week, we also feel that the psychological impact of a sixth consecutive triple digit storage increase would be considerable," he wrote in a note.
Ritterbusch said that slowing the mounting storage surplus this summer will require some supply disruptions as a result of hurricane activity.
The National Weather Service forecast forecast for June 29 to July 3 calls for warmer-than-normal temperatures across Texas, the Midwest and the Great Plains. Below-normal temperatures are expected in parts of the Northeast.
-By Veronica Dagher and Jason Womack, Dow Jones Newswires; 212-416-2143; veronica. dagher@dowjones.com
Natural gas for July delivery on the New York Mercantile Exchange was trading 8.9 cents lower, or 2.29%, at $3.79 a million British thermal units. The contract fell as low as $3.759/MMBtu in earlier trading.
Ample stocks of natural gas were helping mitigate forecasts for hot weather and an expected increase in demand for natural gas-fired power to cool homes and businesses.
"The heat is being somewhat ignored," said Lisa Zembrodt, commodity analyst of Louisville, Ky.,-based Summit Energy. "No matter how you look at it, there's gas out there to meet demand."
Zembrodt added the market is likely to track crude oil and related energy products until the gas market gets some "solid direction" from the storage report on Thursday.
The amount of gas in storage as of June 12 totaled 2.557 trillion cubic feet - about a third higher than last year and 22.6% above the five-year average. Traders are expecting another large injection on Thursday, providing yet another bearish consideration for the market.
The Energy Information Administration is due to release its weekly natural gas storage report at 10:30 a.m. E.T. on Thursday.
Jim Ritterbusch, president of the energy advisory firm Ritterbusch and Associates, is expecting a 100 bcf storage injection. "Although such a build would be downsized considerably from the prior week, we also feel that the psychological impact of a sixth consecutive triple digit storage increase would be considerable," he wrote in a note.
Ritterbusch said that slowing the mounting storage surplus this summer will require some supply disruptions as a result of hurricane activity.
The National Weather Service forecast forecast for June 29 to July 3 calls for warmer-than-normal temperatures across Texas, the Midwest and the Great Plains. Below-normal temperatures are expected in parts of the Northeast.
-By Veronica Dagher and Jason Womack, Dow Jones Newswires; 212-416-2143; veronica. dagher@dowjones.com
Wednesday, June 24, 2009
Natural Gas Pipeline for Wyoming-Oregon FER Approved
Wyoming-Oregon Gas Pipeline Clears Regulatory Hurdle
BY ETHAN LINDSEY
Bend, OR June 23, 2009 2:47 p.m.
http://news.opb.org/article/5282-wyoming-oregon-gas-pipeline-clears-regulatory-hurdle/
A 680-mile natural gas pipeline between Wyoming and Oregon cleared a major governmental hurdle this week.
The Federal Energy Regulatory Commission signed off on a preliminary environmental report for the Ruby Pipeline.
Central Oregon correspondent Ethan Lindsey reports.
The proposed pipeline would run from southwest Wyoming, through Utah and Nevada, and then cross into Oregon near Lakeview.
Houston’s El Paso Corp. says the project is key to expanding natural gas exports to California and the west.
Brent Fenty is with the Oregon Natural Desert Association. He says, originally, environmentalists objected to the pipeline crossing through the Sheldon National Wildlife Refuge in Nevada.
Brent Fenty: “You know, my understanding is that they have adjusted the pipeline route to avoid impacts on the refuge.”
Fenty says he remains concerned about sage grouse habitat and pronghorn migration.
The federal energy draft report found the project would have adverse environmental impacts but most could be mitigated by the company.
Developers say they want to have the pipeline flowing by March of 2011.
BY ETHAN LINDSEY
Bend, OR June 23, 2009 2:47 p.m.
http://news.opb.org/article/5282-wyoming-oregon-gas-pipeline-clears-regulatory-hurdle/
A 680-mile natural gas pipeline between Wyoming and Oregon cleared a major governmental hurdle this week.
The Federal Energy Regulatory Commission signed off on a preliminary environmental report for the Ruby Pipeline.
Central Oregon correspondent Ethan Lindsey reports.
The proposed pipeline would run from southwest Wyoming, through Utah and Nevada, and then cross into Oregon near Lakeview.
Houston’s El Paso Corp. says the project is key to expanding natural gas exports to California and the west.
Brent Fenty is with the Oregon Natural Desert Association. He says, originally, environmentalists objected to the pipeline crossing through the Sheldon National Wildlife Refuge in Nevada.
Brent Fenty: “You know, my understanding is that they have adjusted the pipeline route to avoid impacts on the refuge.”
Fenty says he remains concerned about sage grouse habitat and pronghorn migration.
The federal energy draft report found the project would have adverse environmental impacts but most could be mitigated by the company.
Developers say they want to have the pipeline flowing by March of 2011.
Tuesday, June 23, 2009
Marcellus Natural Gas Play for Williams
STATE COLLEGE, Pa. -- Natural gas company Williams said Monday that it will pay $33 million for half of Rex Energy's interest in three Pennsylvania counties to develop natural gas wells in the Marcellus Shale.
Tulsa, Okla.-based Williams will earn its 50 percent interest by incurring 90 percent of the costs associated with drilling and completing wells until it has invested $33 million on behalf of Rex and $41 million in its own costs and expenses. Williams has until the end of 2011 to fulfill its funding obligations.After that investment, the companies will share the costs.
State College-based Rex has leases on 44,000 acres in Westmoreland, Clearfield and Centre counties.
The deal is Williams' second recent transaction in the Marcellus Shale, a massive area that spans from northern West Virginia, much of Pennsylvania and into New York. On June 1, Williams entered a midstream joint venture that owns 1,800 miles of intrastate natural gas gathering lines servicing 6,900 Appalachian Basin wells.Rex also announced that it has closed the deal to acquire the 50 percent stake owned by its joint venture partner of property in Butler County, Pa., for $4.2 million.
Tulsa, Okla.-based Williams will earn its 50 percent interest by incurring 90 percent of the costs associated with drilling and completing wells until it has invested $33 million on behalf of Rex and $41 million in its own costs and expenses. Williams has until the end of 2011 to fulfill its funding obligations.After that investment, the companies will share the costs.
State College-based Rex has leases on 44,000 acres in Westmoreland, Clearfield and Centre counties.
The deal is Williams' second recent transaction in the Marcellus Shale, a massive area that spans from northern West Virginia, much of Pennsylvania and into New York. On June 1, Williams entered a midstream joint venture that owns 1,800 miles of intrastate natural gas gathering lines servicing 6,900 Appalachian Basin wells.Rex also announced that it has closed the deal to acquire the 50 percent stake owned by its joint venture partner of property in Butler County, Pa., for $4.2 million.
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