http://www.bloomberg.com/apps/news?pid=20601103&sid=aYKDCgVH0xaY
By Jeff Kearns
Sept. 11 (Bloomberg) -- Short sellers bet against the U.S. Natural Gas Fund in record numbers last month as prices for the fuel plunged to the lowest level since 2002 and the fund quit issuing new shares.
Short interest for the exchange-traded fund tracking gas futures surged 135 percent to 30.9 million shares in the two- week period ended Aug. 31, according to data compiled by the New York Stock Exchange. The fund, known by its UNG ticker symbol, slipped 5.3 percent to $10.59 in New York, extending its retreat to 54 percent this year.
UNG has been trading at a premium to its underlying natural gas assets since Aug. 12, when it announced that it couldn’t issue new shares because of limits on how many natural gas contracts it can buy. Today, shares cost 15 percent more than the value of the fund’s gas contracts.
“Due to the lofty premium it makes sense that investors would prefer using futures directly instead of the ETF,” said Scott Becker, an equity derivatives strategist at Jefferies Group Inc. in New York. “As the premium on the UNG expands it becomes increasingly less attractive as a vehicle for investing in natural gas.”
Natural gas futures dropped 47 percent from the start of the year through the end of August as the worst economic slowdown since the Great Depression cut demand for the factory and power-plant fuel, sending stockpiles toward a record high. Prices have advanced 0.6 percent so far this month and 21 percent since touching a seven-year low of $2.409 on Sept. 4.
Gas futures for October delivery plunged the most since May, losing 29.6 cents, or 9.1 percent, to $2.96 per million British thermal units at the 2:55 p.m. settlement of floor trading on the New York Mercantile Exchange.
In a short sale, investors sell borrowed securities and agree to buy and return them to the shareholder later, profiting from any drop in the stock.
To contact the reporter on this story: Jeff Kearns in New York at jkearns3@bloomberg.net.
Last Updated: September 11, 2009 16:54 EDT
Sunday, September 13, 2009
Thursday, September 10, 2009
Canadian Banks Positive as Natural Gas Prices Rise
By Matt Walcoff
http://www.bloomberg.com/apps/news?pid=20601082&sid=apXWzIQyAdCM
Sept. 10 (Bloomberg) -- Canadian stocks rose, led by energy companies, as the Bank of Canada said growth in the second half of 2009 may be stronger than earlier projected and natural gas prices climbed for a fourth day.
Royal Bank of Canada and Bank of Nova Scotia advanced after the central bank kept its key interest rate at a record low. Magna International Inc., Canada’s largest auto-parts company, gained 3.5 percent after winning the battle for General Motors Co.’s Opel unit. Suncor Energy Inc., Canada’s biggest energy company, gained 3.1 percent as natural gas rallied.
The Standard & Poor’s/TSX Composite Index rose 103.17 points, or 0.9 percent, to 11,103.34 at 12:10 p.m. in Toronto. The benchmark index has surged 47 percent since March 9 as commodity prices have rebounded on economic data showing the global recession is easing.
“The comments by the Bank of Canada this morning seem to underscore the fact that the recovery is in place, and they’re fighting now on how quick it’s going to be,” said Rick Hutcheon, chief investment officer of RKH Financial in Toronto. Even central bankers “are taken aback by the pace at which the economy seems to be expanding,” he said.
The Bank of Canada kept its key interest rate at a record- low 0.25 percent. The central bank said information on inventory adjustments and automotive production suggests economic growth in the second half of the year may surpass the bank’s July projection of 1.3 percent on an annualized basis. Royal Bank gained 0.4 percent to C$56.11. Bank of Nova Scotia climbed 1.6 percent to $44.57.
GM Board’s Selection
Magna added 3.5 percent to C$49. GM’s board selected Magna as the lead buyer of a 55 percent stake in Opel, GM’s European- based unit. Magna had been competing with RHJ International SA of Belgium for the car line. German Chancellor Angela Merkel had backed Magna’s bid on hopes the Aurora, Ontario, company would help save most of the Opel jobs in Germany.
Natural gas futures rebounded from early declines after the Energy Department said U.S. stockpiles rose less than forecast last week. Natural gas for October delivery rose 6.5 cents, or 2.3 percent, to $2.894 per million British thermal units on the New York Mercantile Exchange.
Suncor, which completed the purchase of Petro-Canada last month, rose 3.1 percent to C$35.85. Encana Corp., the world’s largest natural-gas producer, gained 1.4 percent to C$58.63. Its leading rival, Canadian Natural Resources Ltd., added 1.7 percent to C$67.36.
Raw-Materials Producers Rise
All 10 industries on the S&P/TSX advanced, led by a 1.6 percent jump in raw-materials producers.
With gold prices fluctuating, the largest bullion producers, Goldcorp Inc. and Barrick Gold Corp. rallied at least 2.1 percent. Silver Standard Resources Inc. gained 4.3 percent to C$23.56 as silver for December delivery rose 0.3 percent in New York.
BlackBerry-maker Research In Motion Ltd., Canada’s largest technology company, advanced 0.9 percent to C$85.07. Texas Instruments Inc. increased its third-quarter sales and profit forecasts because of improving demand for chips used in some industrial applications, computers and consumer electronics.
Transat A.T. Inc., Canada’s biggest tour operator and the owner of airline Air Transat, led S&P/TSX stocks with a 6.6 percent gain to C$13.65. The Montreal-based company reported third-quarter earnings of 20 cents a share, excluding certain items, more than doubling the average estimate of analysts surveyed by Bloomberg. Fellow carrier WestJet Airlines Ltd. plunged 4.8 percent to C$11.14 after saying yesterday that it will raise about $150 million in a share sale.
To contact the reporter on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net.
http://www.bloomberg.com/apps/news?pid=20601082&sid=apXWzIQyAdCM
Sept. 10 (Bloomberg) -- Canadian stocks rose, led by energy companies, as the Bank of Canada said growth in the second half of 2009 may be stronger than earlier projected and natural gas prices climbed for a fourth day.
Royal Bank of Canada and Bank of Nova Scotia advanced after the central bank kept its key interest rate at a record low. Magna International Inc., Canada’s largest auto-parts company, gained 3.5 percent after winning the battle for General Motors Co.’s Opel unit. Suncor Energy Inc., Canada’s biggest energy company, gained 3.1 percent as natural gas rallied.
The Standard & Poor’s/TSX Composite Index rose 103.17 points, or 0.9 percent, to 11,103.34 at 12:10 p.m. in Toronto. The benchmark index has surged 47 percent since March 9 as commodity prices have rebounded on economic data showing the global recession is easing.
“The comments by the Bank of Canada this morning seem to underscore the fact that the recovery is in place, and they’re fighting now on how quick it’s going to be,” said Rick Hutcheon, chief investment officer of RKH Financial in Toronto. Even central bankers “are taken aback by the pace at which the economy seems to be expanding,” he said.
The Bank of Canada kept its key interest rate at a record- low 0.25 percent. The central bank said information on inventory adjustments and automotive production suggests economic growth in the second half of the year may surpass the bank’s July projection of 1.3 percent on an annualized basis. Royal Bank gained 0.4 percent to C$56.11. Bank of Nova Scotia climbed 1.6 percent to $44.57.
GM Board’s Selection
Magna added 3.5 percent to C$49. GM’s board selected Magna as the lead buyer of a 55 percent stake in Opel, GM’s European- based unit. Magna had been competing with RHJ International SA of Belgium for the car line. German Chancellor Angela Merkel had backed Magna’s bid on hopes the Aurora, Ontario, company would help save most of the Opel jobs in Germany.
Natural gas futures rebounded from early declines after the Energy Department said U.S. stockpiles rose less than forecast last week. Natural gas for October delivery rose 6.5 cents, or 2.3 percent, to $2.894 per million British thermal units on the New York Mercantile Exchange.
Suncor, which completed the purchase of Petro-Canada last month, rose 3.1 percent to C$35.85. Encana Corp., the world’s largest natural-gas producer, gained 1.4 percent to C$58.63. Its leading rival, Canadian Natural Resources Ltd., added 1.7 percent to C$67.36.
Raw-Materials Producers Rise
All 10 industries on the S&P/TSX advanced, led by a 1.6 percent jump in raw-materials producers.
With gold prices fluctuating, the largest bullion producers, Goldcorp Inc. and Barrick Gold Corp. rallied at least 2.1 percent. Silver Standard Resources Inc. gained 4.3 percent to C$23.56 as silver for December delivery rose 0.3 percent in New York.
BlackBerry-maker Research In Motion Ltd., Canada’s largest technology company, advanced 0.9 percent to C$85.07. Texas Instruments Inc. increased its third-quarter sales and profit forecasts because of improving demand for chips used in some industrial applications, computers and consumer electronics.
Transat A.T. Inc., Canada’s biggest tour operator and the owner of airline Air Transat, led S&P/TSX stocks with a 6.6 percent gain to C$13.65. The Montreal-based company reported third-quarter earnings of 20 cents a share, excluding certain items, more than doubling the average estimate of analysts surveyed by Bloomberg. Fellow carrier WestJet Airlines Ltd. plunged 4.8 percent to C$11.14 after saying yesterday that it will raise about $150 million in a share sale.
To contact the reporter on this story: Matt Walcoff in Toronto at mwalcoff1@bloomberg.net.
Environmentalists Protesting about Natural Gas in Pennsylvania
By Jon Hurdle
PHILADELPHIA, Sept 9 (Reuters) - Environmentalists accused Pennsylvania regulators of failing to protect public lands from damage by energy companies drilling for natural gas in the massive Marcellus Shale formation.
It is the latest potential environmental obstacle to the development of the Marcellus Shale, a reserve estimated to contain enough natural gas to meet total U.S. needs for at least a decade.
The Chesapeake Bay Foundation filed an appeal on Wednesday with the state's Environmental Hearing Board, claiming that the state Department of Environmental Protection did not properly assess the impact of erosion caused by Fortuna Energy Inc drilling in state forests in Tioga County, northern Pennsylvania.
Tom Rathbun, a DEP spokesman, said the department does not comment on pending litigation.
A spokeswoman for Fortuna's parent company, Talisman Energy Inc (TLM.TO) of Calgary, Canada, said the company was surprised by the foundation's appeal and that Fortuna meets or exceeds all government regulations in all of its operations.
"Environmental stewardship is an absolute top priority for us. Our environmental record since our inception in 2002 is something we've always been very proud of," spokeswoman Phoebe Buckland said.
The DEP issued a permit in March for the project under a new expedited applications process that failed to meet legal requirements for a study of the effect of drilling on erosion and sediment control, the foundation said.
The appeal, filed on Tuesday, is the first legal challenge to the DEP's regulation of the Marcellus Shale, and is likely to set a precedent, whatever the outcome, said Matt Royer, an attorney for the Chesapeake Bay Foundation.
The move follows criticism by drilling opponents the DEP is failing to adequately protect public and private lands from suspected water contamination and other environmental damage by energy companies developing the Marcellus Shale.
Some rural communities have also accused natural gas companies of polluting ground water during the process of drilling into the shale. The industry argues that its safeguards prevent any escape of toxic chemicals into water supplies.
"The DEP is rubber-stamping permit applications without any formal review whatsoever," Royer told a conference call with reporters. "Our state environmental protection agency is not doing what it should do to protect our environment."
The foundation argues that restraints on drilling companies were weakened when the DEP told county conservation districts in March that they no longer had authority to review permit applications for erosion and sediment control. They are urging the agency to restore the local oversight of drilling applications.
The DEP's new policies violate environmental laws including the federal Clean Water Act, the appeal alleges. (Editing by Daniel Trotta and Philip Barbara)
PHILADELPHIA, Sept 9 (Reuters) - Environmentalists accused Pennsylvania regulators of failing to protect public lands from damage by energy companies drilling for natural gas in the massive Marcellus Shale formation.
It is the latest potential environmental obstacle to the development of the Marcellus Shale, a reserve estimated to contain enough natural gas to meet total U.S. needs for at least a decade.
The Chesapeake Bay Foundation filed an appeal on Wednesday with the state's Environmental Hearing Board, claiming that the state Department of Environmental Protection did not properly assess the impact of erosion caused by Fortuna Energy Inc drilling in state forests in Tioga County, northern Pennsylvania.
Tom Rathbun, a DEP spokesman, said the department does not comment on pending litigation.
A spokeswoman for Fortuna's parent company, Talisman Energy Inc (TLM.TO) of Calgary, Canada, said the company was surprised by the foundation's appeal and that Fortuna meets or exceeds all government regulations in all of its operations.
"Environmental stewardship is an absolute top priority for us. Our environmental record since our inception in 2002 is something we've always been very proud of," spokeswoman Phoebe Buckland said.
The DEP issued a permit in March for the project under a new expedited applications process that failed to meet legal requirements for a study of the effect of drilling on erosion and sediment control, the foundation said.
The appeal, filed on Tuesday, is the first legal challenge to the DEP's regulation of the Marcellus Shale, and is likely to set a precedent, whatever the outcome, said Matt Royer, an attorney for the Chesapeake Bay Foundation.
The move follows criticism by drilling opponents the DEP is failing to adequately protect public and private lands from suspected water contamination and other environmental damage by energy companies developing the Marcellus Shale.
Some rural communities have also accused natural gas companies of polluting ground water during the process of drilling into the shale. The industry argues that its safeguards prevent any escape of toxic chemicals into water supplies.
"The DEP is rubber-stamping permit applications without any formal review whatsoever," Royer told a conference call with reporters. "Our state environmental protection agency is not doing what it should do to protect our environment."
The foundation argues that restraints on drilling companies were weakened when the DEP told county conservation districts in March that they no longer had authority to review permit applications for erosion and sediment control. They are urging the agency to restore the local oversight of drilling applications.
The DEP's new policies violate environmental laws including the federal Clean Water Act, the appeal alleges. (Editing by Daniel Trotta and Philip Barbara)
Wednesday, September 9, 2009
China Naturl Gas Speaking in New York City
China Natural Gas to Present at Rodman & Renshaw Annual Global Investment
Conference
NEW YORK, Sept. 8 /PRNewswire-Asia/ -- China Natural Gas, Inc. ("China
Natural Gas" or the "Company") (Nasdaq: CHNG), a leading provider of
compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for
industrial, commercial and residential use in Xi'an, China, today announced
that the Company will attend the Rodman & Renshaw Annual Global Investment
Conference.
The Rodman & Renshaw Annual Global Investment Conference is being held
from Wednesday, September 9, 2009, through Friday, September 11, 2009, at the
New York Palace Hotel in New York, NY. Management is currently scheduled to
meet with institutional investors and to present at 3:15 p.m. ET on September
10, 2009. A webcasting of the presentation will be available at
http://www.wsw.com/webcast/rrshq15/chng .
For more information regarding the conference, please contact your Rodman
& Renshaw sales representative.
About China Natural Gas, Inc.
The Company transports, distributes and sells natural gas to commercial,
industrial and residential customers through its natural gas pipeline networks
in China'sXi'an area, including Lantian County and the districts of Lintong
and Baqiao, in Shaanxi Province. The Company owns approximately 120 km of
high-pressure pipelines in Xi'an, Shaanxi Province and, as of June 30, 2009,
operates 23 CNG fuelling stations in Shaanxi Province and 12 CNG fuelling
stations in Henan Province.
The Company's four primary business lines include: (1) the distribution
and sale of CNG through Company-owned/leased CNG fuelling stations for hybrid
(natural gas/gasoline) powered vehicles; (2) the installation, distribution
and sale of piped natural gas to residential, commercial and industrial
customers through Company-owned pipelines; (3) the distribution and sale of
gasoline through Company-owned/leased CNG fuelling stations for hybrid
(natural gas/gasoline) powered vehicles; and (4) the conversion of
gasoline-fuelled vehicles to hybrid (natural gas/gasoline) powered vehicles
through its auto conversion division.
SAFE HARBOR: FORWARD-LOOKING STATEMENTS
This press release includes statements that may constitute forward-looking
statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar statements.
China Natural Gas, Inc. may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and Exchange
Commission on forms 10-K, 10-Q and 8-K, in its annual report to shareholders,
in press releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements that are not
historical facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. A number of important
factors could cause actual results to differ materially from those contained
in any forward-looking statement. Potential risks and uncertainties include,
but are not limited to, risks outlined in the Company's filings with the U.S.
Securities and Exchange Commission, including its registration statements on
Forms S-1 and S-3, in each case as amended. The Company does not undertake any
obligation to update any forward-looking statement, except as required under
applicable law.
This release is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent registration
or an exemption from registration. Any public offering of securities to be
made in the United States will be made by means of a prospectus that may be
obtained from the issuer or selling security holder and that will contain
detailed information about the company and management, as well as financial
statements.
For more information, please contact:
China Natural Gas Inc.
U.S.:
Kewa Luo
Tel: +1-212-401-1233
Cell: +1-917-880-8726
CHINA:
Jacky Shi
Tel: +86-29-88454353
Cell: +86-139-9287-9998
Email: ir.chng@naturalgaschina.com
ICR, Inc.
Michael Tieu
Tel: +86-10-6599-7960
Email: Michael.Tieu@icrinc.com
SOURCE China Natural Gas, Inc.
China Natural Gas Inc. - U.S.: Kewa Luo, +1-212-401-1233 (Tel), or
+1-917-880-8726 (Cell), or CHINA: Jacky Shi, +86-29-88454353 (Tel), or
+86-139-9287-9998 (Cell); or ir.chng@naturalgaschina.com; ICR, Inc. - Michael
Tieu, +86-10-6599-7960, or Michael.Tieu@icrinc.com
Conference
NEW YORK, Sept. 8 /PRNewswire-Asia/ -- China Natural Gas, Inc. ("China
Natural Gas" or the "Company") (Nasdaq: CHNG), a leading provider of
compressed natural gas (CNG) for vehicular fuel and pipeline natural gas for
industrial, commercial and residential use in Xi'an, China, today announced
that the Company will attend the Rodman & Renshaw Annual Global Investment
Conference.
The Rodman & Renshaw Annual Global Investment Conference is being held
from Wednesday, September 9, 2009, through Friday, September 11, 2009, at the
New York Palace Hotel in New York, NY. Management is currently scheduled to
meet with institutional investors and to present at 3:15 p.m. ET on September
10, 2009. A webcasting of the presentation will be available at
http://www.wsw.com/webcast/rrshq15/chng .
For more information regarding the conference, please contact your Rodman
& Renshaw sales representative.
About China Natural Gas, Inc.
The Company transports, distributes and sells natural gas to commercial,
industrial and residential customers through its natural gas pipeline networks
in China'sXi'an area, including Lantian County and the districts of Lintong
and Baqiao, in Shaanxi Province. The Company owns approximately 120 km of
high-pressure pipelines in Xi'an, Shaanxi Province and, as of June 30, 2009,
operates 23 CNG fuelling stations in Shaanxi Province and 12 CNG fuelling
stations in Henan Province.
The Company's four primary business lines include: (1) the distribution
and sale of CNG through Company-owned/leased CNG fuelling stations for hybrid
(natural gas/gasoline) powered vehicles; (2) the installation, distribution
and sale of piped natural gas to residential, commercial and industrial
customers through Company-owned pipelines; (3) the distribution and sale of
gasoline through Company-owned/leased CNG fuelling stations for hybrid
(natural gas/gasoline) powered vehicles; and (4) the conversion of
gasoline-fuelled vehicles to hybrid (natural gas/gasoline) powered vehicles
through its auto conversion division.
SAFE HARBOR: FORWARD-LOOKING STATEMENTS
This press release includes statements that may constitute forward-looking
statements made pursuant to the safe harbor provision of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements can
be identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates" and similar statements.
China Natural Gas, Inc. may also make written or oral forward-looking
statements in its periodic reports to the U.S. Securities and Exchange
Commission on forms 10-K, 10-Q and 8-K, in its annual report to shareholders,
in press releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements that are not
historical facts, including statements about the Company's beliefs and
expectations, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties that could cause actual results to
differ materially from the forward-looking statements. A number of important
factors could cause actual results to differ materially from those contained
in any forward-looking statement. Potential risks and uncertainties include,
but are not limited to, risks outlined in the Company's filings with the U.S.
Securities and Exchange Commission, including its registration statements on
Forms S-1 and S-3, in each case as amended. The Company does not undertake any
obligation to update any forward-looking statement, except as required under
applicable law.
This release is not an offer of securities for sale in the United States.
Securities may not be offered or sold in the United States absent registration
or an exemption from registration. Any public offering of securities to be
made in the United States will be made by means of a prospectus that may be
obtained from the issuer or selling security holder and that will contain
detailed information about the company and management, as well as financial
statements.
For more information, please contact:
China Natural Gas Inc.
U.S.:
Kewa Luo
Tel: +1-212-401-1233
Cell: +1-917-880-8726
CHINA:
Jacky Shi
Tel: +86-29-88454353
Cell: +86-139-9287-9998
Email: ir.chng@naturalgaschina.com
ICR, Inc.
Michael Tieu
Tel: +86-10-6599-7960
Email: Michael.Tieu@icrinc.com
SOURCE China Natural Gas, Inc.
China Natural Gas Inc. - U.S.: Kewa Luo, +1-212-401-1233 (Tel), or
+1-917-880-8726 (Cell), or CHINA: Jacky Shi, +86-29-88454353 (Tel), or
+86-139-9287-9998 (Cell); or ir.chng@naturalgaschina.com; ICR, Inc. - Michael
Tieu, +86-10-6599-7960, or Michael.Tieu@icrinc.com
Tuesday, September 8, 2009
Gazprom Prepays Ukraine for Natural Gas Transit Through March 2010
By Anna Shiryaevskaya and Lyubov Pronina
http://www.bloomberg.com/apps/news?pid=20602099&sid=a_DCuC5ETO0Q
Sept. 7 (Bloomberg) -- OAO Gazprom must reject any requests from Ukraine for advance payment of natural-gas transit fees after already prepaying more than $2.2 billion, Russian President Dmitry Medvedev said.
Russia’s gas-export monopoly must uphold its transit agreement with Ukrainian state energy company NAK Naftogaz Ukrainy, Medvedev told Gazprom Chief Executive Officer Alexei Miller at a meeting today, after the CEO confirmed that the accord doesn’t call for advance payment.
“We should act in accordance with the obligations the sides assumed,” Medvedev said, according to a transcript of the meeting published on the president’s Web site. “These are not the easiest times.”
Russia, which supplies a quarter of the European Union’s gas, ships 80 percent of that through neighboring Ukraine. The countries signed a gas-supply and transit contract in January, ending a spat over debt and fees that had disrupted deliveries to Europe for the second time in three years.
Gazprom has paid Ukraine in advance to ensure gas transit this year and up until the second quarter of 2010, Miller told Medvedev.
“I don’t think this is a conflict,” Pavel Sorokin, an analyst at UniCredit SpA in Moscow, said today by telephone. “They are negotiating. Ukraine is interested in keeping its gas-transit role.”
Under the January accord, the countries agreed to keep Russia’s transit fees unchanged this year and subsequently raise them to European levels, along with the price Ukraine pays for Russian gas.
Gazprom expects the average 2010 transit fee to be $2.56 to $2.70 for 1,000 cubic meters of gas transported over 100 kilometers (62 miles), company spokesman Sergei Kupriyanov said by telephone. That’s an increase of as much as 58 percent from this year.
To contact the reporters on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.netLyubov Pronina in Ulan Bator at lpronina@bloomberg.net
Last Updated: September 7, 2009 11:09 EDT
http://www.bloomberg.com/apps/news?pid=20602099&sid=a_DCuC5ETO0Q
Sept. 7 (Bloomberg) -- OAO Gazprom must reject any requests from Ukraine for advance payment of natural-gas transit fees after already prepaying more than $2.2 billion, Russian President Dmitry Medvedev said.
Russia’s gas-export monopoly must uphold its transit agreement with Ukrainian state energy company NAK Naftogaz Ukrainy, Medvedev told Gazprom Chief Executive Officer Alexei Miller at a meeting today, after the CEO confirmed that the accord doesn’t call for advance payment.
“We should act in accordance with the obligations the sides assumed,” Medvedev said, according to a transcript of the meeting published on the president’s Web site. “These are not the easiest times.”
Russia, which supplies a quarter of the European Union’s gas, ships 80 percent of that through neighboring Ukraine. The countries signed a gas-supply and transit contract in January, ending a spat over debt and fees that had disrupted deliveries to Europe for the second time in three years.
Gazprom has paid Ukraine in advance to ensure gas transit this year and up until the second quarter of 2010, Miller told Medvedev.
“I don’t think this is a conflict,” Pavel Sorokin, an analyst at UniCredit SpA in Moscow, said today by telephone. “They are negotiating. Ukraine is interested in keeping its gas-transit role.”
Under the January accord, the countries agreed to keep Russia’s transit fees unchanged this year and subsequently raise them to European levels, along with the price Ukraine pays for Russian gas.
Gazprom expects the average 2010 transit fee to be $2.56 to $2.70 for 1,000 cubic meters of gas transported over 100 kilometers (62 miles), company spokesman Sergei Kupriyanov said by telephone. That’s an increase of as much as 58 percent from this year.
To contact the reporters on this story: Anna Shiryaevskaya in Moscow at ashiryaevska@bloomberg.netLyubov Pronina in Ulan Bator at lpronina@bloomberg.net
Last Updated: September 7, 2009 11:09 EDT
Natural Gas Topic of Conversation Even at $1.88 Spot mmBtu
BY JOHN-LAURENT TRONCHE
September 07, 2009
http://www.fwbusinesspress.com/display.php?id=10950
A natural gas analyst said gas production can fuel the world’s needs for years to come, thanks to technological advancements of the past and those coming in the future.
Guntis Moritis, production editor of Oil & Gas Journal, said the vast resources of coalbed methane, shale gas and tight-sand gas worldwide are a hot topic, with experts increasingly debating their economic potential.
Moritis spoke on behalf of PennWell Corp. (the publication’s parent) and Oil & Gas Journal in advance of their Unconventional Gas International Conference & Exhibition, which begins Sept. 29 at the Fort Worth Convention Center. Conference topics are expected to include how to make the leap from North America to the world, the outlook for crude oil, government regulations, future technologies and more.
Gas prices are low, Moritis admitted, but should increase as the gas-consuming winter season gets under way. Gas futures currently trade around $2.50 per million British thermal units, as of publication. That price is far from economic, most producers and analysts agree, but a cold winter season could spike demand and increase the commodity’s price.
In a separate statement, University of North Texas professor Terry Clower, director of the university’s Center for Economic Development and Research, said natural gas companies’ recovery could follow that of the general economy.
“As the economy picks up steam, demand for natural gas will increase and prices should firm up at significantly higher levels,” Clower said in a Sept. 2 statement. “Here’s hoping for a cold, early winter.”
He added job losses in the energy sector, especially in North Texas, will hamper the area’s recovery, even though initially it helped insulate cities from the downturn.
“Thousands of gas-field jobs have disappeared in 2009 as natural gas prices have fallen below $4,” he said. “Unfortunately, this is also sparking layoffs in other sectors of the economy as drillers and gas field service providers slow down operations and spend less for goods and business services.”
Despite the current malaise, shale gas represents one-half of the total unconventional gas resources worldwide, with North America claiming 3,840 trillion cubic feet, according to 2001 estimates, which no doubt will change with new study, Moritis said. Sparked by the success of the Barnett Shale – the first deep shale play, whose interest took off in the mid-1990s – new plays have been found nationwide, with subsequent successes in the Woodford and Fayetteville shales.
“This proved that the Barnett was not the only productive deep shale out there,” Moritis said. New production is taking off in the Haynesville Shale and Marcellus Shale.
“In the past three or four years, shale gas production has seen a sizeable increase,” said Moritis, adding growth has doubled from about 4 billion cubic feet per day to current levels of about 8 billion cubic feet of gas per day coming from shale plays.
Companies continue to explore gas plays abroad, too, in North Africa, South America, Australia, southern Africa, India, Asia and Russia.
Future and developing technologies, such as seismic mapping, and different types of chemicals used to make fracing more effective, will help spur increased gas production.
As for the concern that current estimates of worldwide gas are overblown, Moritis said: “The indications are that there is quite a lot of it, whether it’s all economic to get out is still out there.”
For information on the conference, visit unconventionalgas.net
September 07, 2009
http://www.fwbusinesspress.com/display.php?id=10950
A natural gas analyst said gas production can fuel the world’s needs for years to come, thanks to technological advancements of the past and those coming in the future.
Guntis Moritis, production editor of Oil & Gas Journal, said the vast resources of coalbed methane, shale gas and tight-sand gas worldwide are a hot topic, with experts increasingly debating their economic potential.
Moritis spoke on behalf of PennWell Corp. (the publication’s parent) and Oil & Gas Journal in advance of their Unconventional Gas International Conference & Exhibition, which begins Sept. 29 at the Fort Worth Convention Center. Conference topics are expected to include how to make the leap from North America to the world, the outlook for crude oil, government regulations, future technologies and more.
Gas prices are low, Moritis admitted, but should increase as the gas-consuming winter season gets under way. Gas futures currently trade around $2.50 per million British thermal units, as of publication. That price is far from economic, most producers and analysts agree, but a cold winter season could spike demand and increase the commodity’s price.
In a separate statement, University of North Texas professor Terry Clower, director of the university’s Center for Economic Development and Research, said natural gas companies’ recovery could follow that of the general economy.
“As the economy picks up steam, demand for natural gas will increase and prices should firm up at significantly higher levels,” Clower said in a Sept. 2 statement. “Here’s hoping for a cold, early winter.”
He added job losses in the energy sector, especially in North Texas, will hamper the area’s recovery, even though initially it helped insulate cities from the downturn.
“Thousands of gas-field jobs have disappeared in 2009 as natural gas prices have fallen below $4,” he said. “Unfortunately, this is also sparking layoffs in other sectors of the economy as drillers and gas field service providers slow down operations and spend less for goods and business services.”
Despite the current malaise, shale gas represents one-half of the total unconventional gas resources worldwide, with North America claiming 3,840 trillion cubic feet, according to 2001 estimates, which no doubt will change with new study, Moritis said. Sparked by the success of the Barnett Shale – the first deep shale play, whose interest took off in the mid-1990s – new plays have been found nationwide, with subsequent successes in the Woodford and Fayetteville shales.
“This proved that the Barnett was not the only productive deep shale out there,” Moritis said. New production is taking off in the Haynesville Shale and Marcellus Shale.
“In the past three or four years, shale gas production has seen a sizeable increase,” said Moritis, adding growth has doubled from about 4 billion cubic feet per day to current levels of about 8 billion cubic feet of gas per day coming from shale plays.
Companies continue to explore gas plays abroad, too, in North Africa, South America, Australia, southern Africa, India, Asia and Russia.
Future and developing technologies, such as seismic mapping, and different types of chemicals used to make fracing more effective, will help spur increased gas production.
As for the concern that current estimates of worldwide gas are overblown, Moritis said: “The indications are that there is quite a lot of it, whether it’s all economic to get out is still out there.”
For information on the conference, visit unconventionalgas.net
Monday, September 7, 2009
Natural Gas Lobbying Washington
http://www.nytimes.com/2009/09/07/business/07gas.html?hp
HOUSTON — The natural gas industry has enjoyed something of a winning streak in recent years. It found gigantic new reserves, low prices are encouraging utilities to substitute gas for coal, and cities are switching to buses fueled by natural gas.
But its luck has run out in Washington, where the industry is having trouble making its case to Congress as it writes an energy bill to tackle global warming.
For all its pronouncements that gas could be used to replace aging, inefficient coal-fired power plants — and reduce greenhouse gas emissions in the process — lawmakers from coal-producing states appear committed to keeping coal as the nation’s primary producer of power.
Those influential lawmakers, from both parties, say that new technologies under development to capture and bury emissions of coal are a better bet than gas for long-term solutions to climate change.
The difference of opinion is about more than what is best for the environment, of course. Industry profits are riding on the outcome of the discussion — a rich mix of politics, environment, science and business.
A climate-change bill that passed the House in June, intended to cap greenhouse gas emissions, delivered benefits to renewable fuels like wind and solar and strengthened building codes to conserve energy.
But the cost of emitting carbon dioxide emissions under the terms of the bill remained at levels that would continue to provide a price advantage for coal in many regions of the country.
The Senate is planning to begin writing its own bill later this month.
“The Senate is more open to natural gas as a transition fuel than the House was,” said Senator Charles E. Schumer, Democrat of New York, “but the senators from the coal states who are crucial votes are going to want first consideration for coal.”
The gas industry’s leaders say they will descend on Capitol Hill in coming weeks to press their case about the advantage of gas, including that it emits about half the greenhouse gases as coal.
The industry has formed a new lobbying group, and it is planning a national campaign that includes television advertising. Executives want fewer allowances for coal. They also want legislation that gives incentives for companies to convert truck fleets from diesel to natural gas.
“Never in my life have I been confronted with something so obviously easy and good to do and have such Congressional apathy,” said Aubrey McClendon, chief executive of Chesapeake Energy and a leading voice in the industry. He added that he was still hopeful the Senate can improve the House bill.
But the coal industry will also be active. Vic Svec, a senior vice president at Peabody Energy, a large coal company, said coal was still a better fuel because its price is more stable than gas.
“Coal with carbon capture and storage is the low cost, low carbon solution and has fantastic implications for the nation’s energy security,” he said.
But it is not only coal-industry lobbyists and their Congressional supporters who favor the concept of carbon sequestration. David Hawkins, a climate change expert at the Natural Resources Defense Council, said simply replacing coal with natural gas for power generation was “not a viable strategy” because that would merely delay climate change by a few decades.
“A coal plant with carbon capture and storage is a cleaner plant than an uncontrolled natural gas plant,” he said.
Natural gas gets some benefits from the House bill, which includes a cap-and-trade system that sets limits on emissions of greenhouse gases while requiring manufacturers and utilities to acquire pollution permits.
Utilities that burn natural gas would earn $30 billion over 10 years in pollution credits that could be sold on the carbon-trading market. But utilities that burn coal will receive tens of billions of dollars worth of free pollution credits, savings that will be passed on to consumers but may serve to delay the closing of some coal plants.
The House bill also offers $10 billion for research and development of techniques to capture and store carbon dioxide emissions, which would help keep some coal plants open that might otherwise close.
The Environmental Protection Agency projects that if the House bill became law, electricity generation from gas would increase by less than 1 percent from 2015 to 2025, while generation from coal would remain nearly unchanged.
There will be more use of renewables, but power generation as a whole is expected to decline because of conservation efforts, including tightening of building energy codes.
“By allowing free emission allowances to maintain coal production from existing coal plants, while providing mandates that there be more wind and solar, you squeeze gas out in the middle,” said William F. Whitsitt, an executive vice president at Devon Energy, a major natural gas producer.
Without any new legislation, and if current policies remain in place, gas would beat out coal by a far larger margin, according to E.P.A. projections.
There would be nearly 30 percent more power generated by gas by 2025 than in 2015, while coal fired generation would grow by a more modest 7 percent.
Many legislators believe that carbon capture and sequestration — a largely untested system that would bury carbon at power plants so it does not escape into the atmosphere — can be made to work.
Developing the technology was particularly important for any global solution to climate change, since China and India depend on coal for their energy and growing economies, said Paul W. Bledsoe, director of communications and strategy at the National Commission on Energy Policy, a bipartisan research organization.
Currently, coal provides almost half the electrical power in the United States while natural gas provides more than 20 percent.
Proponents of natural gas say they can deliver immediate reductions in greenhouse gases, an advantage that should not be discarded for an untested technology.
Senate officials and energy officials say it will be difficult to develop legislation that benefits both the gas and coal industries and reduces greenhouse gases.
Gas executives say their day in Washington will come, especially as more jobs are produced in gas fields that now stretch across 32 states.
“The politics of natural gas are going to change dramatically,” predicted Rodney Lowman, president of the American Natural Gas Alliance, the new gas lobby group. But, he added, “it won’t be overnight.”
HOUSTON — The natural gas industry has enjoyed something of a winning streak in recent years. It found gigantic new reserves, low prices are encouraging utilities to substitute gas for coal, and cities are switching to buses fueled by natural gas.
But its luck has run out in Washington, where the industry is having trouble making its case to Congress as it writes an energy bill to tackle global warming.
For all its pronouncements that gas could be used to replace aging, inefficient coal-fired power plants — and reduce greenhouse gas emissions in the process — lawmakers from coal-producing states appear committed to keeping coal as the nation’s primary producer of power.
Those influential lawmakers, from both parties, say that new technologies under development to capture and bury emissions of coal are a better bet than gas for long-term solutions to climate change.
The difference of opinion is about more than what is best for the environment, of course. Industry profits are riding on the outcome of the discussion — a rich mix of politics, environment, science and business.
A climate-change bill that passed the House in June, intended to cap greenhouse gas emissions, delivered benefits to renewable fuels like wind and solar and strengthened building codes to conserve energy.
But the cost of emitting carbon dioxide emissions under the terms of the bill remained at levels that would continue to provide a price advantage for coal in many regions of the country.
The Senate is planning to begin writing its own bill later this month.
“The Senate is more open to natural gas as a transition fuel than the House was,” said Senator Charles E. Schumer, Democrat of New York, “but the senators from the coal states who are crucial votes are going to want first consideration for coal.”
The gas industry’s leaders say they will descend on Capitol Hill in coming weeks to press their case about the advantage of gas, including that it emits about half the greenhouse gases as coal.
The industry has formed a new lobbying group, and it is planning a national campaign that includes television advertising. Executives want fewer allowances for coal. They also want legislation that gives incentives for companies to convert truck fleets from diesel to natural gas.
“Never in my life have I been confronted with something so obviously easy and good to do and have such Congressional apathy,” said Aubrey McClendon, chief executive of Chesapeake Energy and a leading voice in the industry. He added that he was still hopeful the Senate can improve the House bill.
But the coal industry will also be active. Vic Svec, a senior vice president at Peabody Energy, a large coal company, said coal was still a better fuel because its price is more stable than gas.
“Coal with carbon capture and storage is the low cost, low carbon solution and has fantastic implications for the nation’s energy security,” he said.
But it is not only coal-industry lobbyists and their Congressional supporters who favor the concept of carbon sequestration. David Hawkins, a climate change expert at the Natural Resources Defense Council, said simply replacing coal with natural gas for power generation was “not a viable strategy” because that would merely delay climate change by a few decades.
“A coal plant with carbon capture and storage is a cleaner plant than an uncontrolled natural gas plant,” he said.
Natural gas gets some benefits from the House bill, which includes a cap-and-trade system that sets limits on emissions of greenhouse gases while requiring manufacturers and utilities to acquire pollution permits.
Utilities that burn natural gas would earn $30 billion over 10 years in pollution credits that could be sold on the carbon-trading market. But utilities that burn coal will receive tens of billions of dollars worth of free pollution credits, savings that will be passed on to consumers but may serve to delay the closing of some coal plants.
The House bill also offers $10 billion for research and development of techniques to capture and store carbon dioxide emissions, which would help keep some coal plants open that might otherwise close.
The Environmental Protection Agency projects that if the House bill became law, electricity generation from gas would increase by less than 1 percent from 2015 to 2025, while generation from coal would remain nearly unchanged.
There will be more use of renewables, but power generation as a whole is expected to decline because of conservation efforts, including tightening of building energy codes.
“By allowing free emission allowances to maintain coal production from existing coal plants, while providing mandates that there be more wind and solar, you squeeze gas out in the middle,” said William F. Whitsitt, an executive vice president at Devon Energy, a major natural gas producer.
Without any new legislation, and if current policies remain in place, gas would beat out coal by a far larger margin, according to E.P.A. projections.
There would be nearly 30 percent more power generated by gas by 2025 than in 2015, while coal fired generation would grow by a more modest 7 percent.
Many legislators believe that carbon capture and sequestration — a largely untested system that would bury carbon at power plants so it does not escape into the atmosphere — can be made to work.
Developing the technology was particularly important for any global solution to climate change, since China and India depend on coal for their energy and growing economies, said Paul W. Bledsoe, director of communications and strategy at the National Commission on Energy Policy, a bipartisan research organization.
Currently, coal provides almost half the electrical power in the United States while natural gas provides more than 20 percent.
Proponents of natural gas say they can deliver immediate reductions in greenhouse gases, an advantage that should not be discarded for an untested technology.
Senate officials and energy officials say it will be difficult to develop legislation that benefits both the gas and coal industries and reduces greenhouse gases.
Gas executives say their day in Washington will come, especially as more jobs are produced in gas fields that now stretch across 32 states.
“The politics of natural gas are going to change dramatically,” predicted Rodney Lowman, president of the American Natural Gas Alliance, the new gas lobby group. But, he added, “it won’t be overnight.”
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