NEW YORK (MarketWatch) - The Amex Natural Gas Index hit an all-time high Thursday, gaining ground on the heels of lower inventories reported by the government and on a big move up by EOG Resources.
Meanwhile, oil stocks fought their way back into positive territory as crude futures pushed to a record close of $102.59 after trading as high as $102.64 a barrel during the session and moving up to a fresh record of $102.77 in electronic trading after the bell. See Futures Movers.
U.S. gas inventories fell by 151 billion cubic feet in the week ended Feb. 22, the Energy Information Administration reported. Also, stockpiles were 133 billion cubic feet less than last year at this time, data showed. April natural-gas futures rallied 38 cents to end at $9.44 per million British thermal units.
Friday, February 29, 2008
Thursday, February 28, 2008
Natural Gas Discovery Off India West Bengal Coast
Feb. 27 (Bloomberg) -- Reliance Industries Ltd., owner of the world's third-biggest oil refinery, gained after saying it discovered natural gas in a field off India's east coast.
The Mumbai-based company said yesterday the discovery was made in the shallow-water area of NEC-Mahanadi field, off the eastern Indian state of Orissa.
Reliance rose 11.8 rupees, or 0.5 percent, to 2,587.55 on the Bombay Stock Exchange, after rising as much as 1.9 percent. The shares have fallen 10 percent so far this year, compared with a 12 percent decline in the benchmark Sensitive Index.
Reliance owns 90 percent of the field, and Canada's Niko Resources Ltd. holds 10 percent, according to a statement. This is the eighth gas discovery in the field, the company said.
The Mumbai-based company said yesterday the discovery was made in the shallow-water area of NEC-Mahanadi field, off the eastern Indian state of Orissa.
Reliance rose 11.8 rupees, or 0.5 percent, to 2,587.55 on the Bombay Stock Exchange, after rising as much as 1.9 percent. The shares have fallen 10 percent so far this year, compared with a 12 percent decline in the benchmark Sensitive Index.
Reliance owns 90 percent of the field, and Canada's Niko Resources Ltd. holds 10 percent, according to a statement. This is the eighth gas discovery in the field, the company said.
Wednesday, February 27, 2008
Kazakhstan to Increase Natural Gas Production for Export
ASTANA (RIA Novosti) -- Kazakhstan intends to increase natural gas production from 29.6 billion cubic meters in 2007 to 114b cu. m. in 2020, the president of national oil and gas company KazMunaiGaz said Tuesday.
""Natural gas production is expected to grow from 29.6b cu. m. in 2007 to 114b cu. m. in 2020,"" Uzakbai Karabalin told a Cabinet meeting.
He said most of the increase would be secured by putting new gas fields on stream in the west of the republic, as well as utilizing ""the resources of the Kazakh and Turkmen sectors in the Caspian shelf.""
The company head said gas consumption in Kazakhstan is expected to grow from 13.3b cu. m. in 2007 to 18.7b in 2020.
""Natural gas production is expected to grow from 29.6b cu. m. in 2007 to 114b cu. m. in 2020,"" Uzakbai Karabalin told a Cabinet meeting.
He said most of the increase would be secured by putting new gas fields on stream in the west of the republic, as well as utilizing ""the resources of the Kazakh and Turkmen sectors in the Caspian shelf.""
The company head said gas consumption in Kazakhstan is expected to grow from 13.3b cu. m. in 2007 to 18.7b in 2020.
Tuesday, February 26, 2008
Russia & Serbia Natural Gas Pact
Russia cemented its partnership with Serbia on Monday, signing a deal to direct a key gas pipeline through its territory and promising to stand by the troubled Balkan nation in its dispute with the West over Kosovo.
Underscoring the message of friendship, Russian President Vladimir Putin sent his likely successor, Dmitry Medvedev, to Belgrade to supervise the signing of the pipeline agreement, and reassert Moscow's opposition to the Kosovo's independence declaration.
"Serbia needs support now," Medvedev said.
By turning Serbia into its main political and economic partner in the Balkans, Russia will secure a loyal ally in the heart of Europe and reaffirm its position as a key global player, while retaining crucial influence in energy supplies for the continent.
The deal can also be seen as an extension of the Kremlin's confrontational approach to the West, which has raised fears that Russia could use energy supplies for political leverage, rewarding Western countries that support their policies and cutting off the rest.
The Russian gas monopoly Gazprom's South Stream pipeline would run under the Black Sea from Russia to Bulgaria before extending to Western Europe. The Serbia deal is expected to be worth as much as US$1.5 billion (€1.01 billion), officials said.
The Tanjug news agency reported that a joint Russian-Serbian company will be formed to outline and coordinate the work in building the pipeline which could become operational in 2013.
"This is the first step in turning Serbia from a blind alley into a motorway on the energy map," said Sasa Ilic, the acting head of Srbijagas, Serbia's natural gas monopoly.
In a visit to Hungary later in the day, Russian news agencies quoted Medvedev as saying Russia and Hungary will create a joint venture to build a portion of the South Stream Pipeline in Hungary. The joint venture will belong to Russia and Hungary on a 50/50 basis, ITAR-Tass quoted Medvedev as saying.
However, few specifics of the deal were available and analysts suggest the agreements give the Russians some of the country's most valuable assets at a bargain basement price.
Some analysts argued that Russia's initial offer of US$600 million (€400 million) for a controlling stake in the Serbian oil monopoly NIS represented just one-fifth of the company's market value.
"To say it is a sweetheart deal is an understatement," said James Lyon, the special Balkans adviser for the International Crisis Group. "Russia came knocking and said they wanted to collect the price for its support on Kosovo."
Sijka Pistolova, the editor of Energy Observer, a Belgrade-based trade online publication, said the lack of transparency has only added to the controversy.
"The deal itself has been shrouded in secrecy," she said. "We are in the dark about details."
Though the pipeline deal was at the center of Medvedev's visit, the Russian leader also used the opportunity to criticize Kosovo's declaration of independence from Serbia, as well as Western support for the move. Medvedev said Kosovo's self-styled independence "absolutely" violates international rules.
Underscoring the message of friendship, Russian President Vladimir Putin sent his likely successor, Dmitry Medvedev, to Belgrade to supervise the signing of the pipeline agreement, and reassert Moscow's opposition to the Kosovo's independence declaration.
"Serbia needs support now," Medvedev said.
By turning Serbia into its main political and economic partner in the Balkans, Russia will secure a loyal ally in the heart of Europe and reaffirm its position as a key global player, while retaining crucial influence in energy supplies for the continent.
The deal can also be seen as an extension of the Kremlin's confrontational approach to the West, which has raised fears that Russia could use energy supplies for political leverage, rewarding Western countries that support their policies and cutting off the rest.
The Russian gas monopoly Gazprom's South Stream pipeline would run under the Black Sea from Russia to Bulgaria before extending to Western Europe. The Serbia deal is expected to be worth as much as US$1.5 billion (€1.01 billion), officials said.
The Tanjug news agency reported that a joint Russian-Serbian company will be formed to outline and coordinate the work in building the pipeline which could become operational in 2013.
"This is the first step in turning Serbia from a blind alley into a motorway on the energy map," said Sasa Ilic, the acting head of Srbijagas, Serbia's natural gas monopoly.
In a visit to Hungary later in the day, Russian news agencies quoted Medvedev as saying Russia and Hungary will create a joint venture to build a portion of the South Stream Pipeline in Hungary. The joint venture will belong to Russia and Hungary on a 50/50 basis, ITAR-Tass quoted Medvedev as saying.
However, few specifics of the deal were available and analysts suggest the agreements give the Russians some of the country's most valuable assets at a bargain basement price.
Some analysts argued that Russia's initial offer of US$600 million (€400 million) for a controlling stake in the Serbian oil monopoly NIS represented just one-fifth of the company's market value.
"To say it is a sweetheart deal is an understatement," said James Lyon, the special Balkans adviser for the International Crisis Group. "Russia came knocking and said they wanted to collect the price for its support on Kosovo."
Sijka Pistolova, the editor of Energy Observer, a Belgrade-based trade online publication, said the lack of transparency has only added to the controversy.
"The deal itself has been shrouded in secrecy," she said. "We are in the dark about details."
Though the pipeline deal was at the center of Medvedev's visit, the Russian leader also used the opportunity to criticize Kosovo's declaration of independence from Serbia, as well as Western support for the move. Medvedev said Kosovo's self-styled independence "absolutely" violates international rules.
Monday, February 25, 2008
Beirut Natural Gas Coming Via Egypt
BEIRUT: Lebanon should start receiving natural gas from Egypt through the Pan-Arab Natural Gas Pipeline by the middle of this year, acting Energy and Water Resources Minister Mohammad al-Safadi said after a meeting in Damascus Saturday of energy officials from countries involved in the pipeline project.
Suffering from a chronic shortage of power, Lebanon could expect gas from the pipeline to trim the country's energy bill by 30 percent, an adviser to Safadi told The Daily Star last week.
Safadi's visit to Syria also marked the first official journey by a minister from Prime Minister Fouad Siniora's government to Damascus since six Syrian-backed ministers resigned from the Cabinet in November 2006. Relations between the neighbors have been frosty since the February 2005 assassination of former Prime Minister Rafik Hariri, a killing blamed by the March 14 governing coalition on the Syrian regime, although Damascus denies any involvement. Lebanese daily An-Nahar said Safadi, a member of the Future Movement founded by Hariri, received a warm welcome from his Syrian hosts.
The $1.2-billion, 1,200-kilometer pipeline will commence sending gas from Al-Arish in Egypt to Syria in March, with volumes equating to an annual flow of 900 million cubic meters slated for Syria this year. Syria will be able to receive up to 2 billion cubic meters annually through the pipeline, which will be connected to Syria's Deir Ali power plant.
The first phase of the project - linking Egypt with the Jordanian Red Sea port of Aqaba - was finished in 2003, while the second stage - linking Aqaba with the town of Rihab north of Amman - was completed two years later.
Suffering from a chronic shortage of power, Lebanon could expect gas from the pipeline to trim the country's energy bill by 30 percent, an adviser to Safadi told The Daily Star last week.
Safadi's visit to Syria also marked the first official journey by a minister from Prime Minister Fouad Siniora's government to Damascus since six Syrian-backed ministers resigned from the Cabinet in November 2006. Relations between the neighbors have been frosty since the February 2005 assassination of former Prime Minister Rafik Hariri, a killing blamed by the March 14 governing coalition on the Syrian regime, although Damascus denies any involvement. Lebanese daily An-Nahar said Safadi, a member of the Future Movement founded by Hariri, received a warm welcome from his Syrian hosts.
The $1.2-billion, 1,200-kilometer pipeline will commence sending gas from Al-Arish in Egypt to Syria in March, with volumes equating to an annual flow of 900 million cubic meters slated for Syria this year. Syria will be able to receive up to 2 billion cubic meters annually through the pipeline, which will be connected to Syria's Deir Ali power plant.
The first phase of the project - linking Egypt with the Jordanian Red Sea port of Aqaba - was finished in 2003, while the second stage - linking Aqaba with the town of Rihab north of Amman - was completed two years later.
Sunday, February 24, 2008
Argentina Natural Gas Problem Still Long Term Issue
The presidents of Argentina, Brazil and Bolivia failed to resolve a natural gas dispute Saturday, but agreed to study how to divide Bolivian supplies to avoid an energy crunch, an official said.
Bolivian Energy Minister Carlos Villegas said the three leaders amicably discussed ways to divide up limited Bolivian supplies, but reached no immediate solution during talks at Argentine President Cristina Fernandez's suburban residence.
"We need to assure the overall supply of energy for the long term," Villegas said after Fernandez met Bolivia's Evo Morales and Brazil's Luiz Inacio Lula da Silva.
He said they agreed to create a committee made up of the three energy ministers "that is going study the structural issue of gas supplies in moments of greatest demand."
He said the ministers would meet in "coming weeks." The presidents made no public comments upon leaving the talks. But Argentine Foreign Minister Jorge Taiana released a statement confirming the creation of a "coordinating group" of energy ministers that said it will permanently analize "the evolution of the respective energy demands."
Bolivian officials have assured the two energy-hungry neighbors they can meet needs this year, but growing demand for gas could mean shortages in 2009. Natural gas is a critical energy source for Brazil and Argentina.
Brazil gets about half its natural gas from Bolivia — between 27 million and 29 million cubic meters daily — while Argentine generally buys between 3 million and 5 million cubic meters each day.
Bolivian officials say they expect demand from both countries to jump by as much as 7 million cubic meters daily in 2009.
Bolivia's natural gas industry, suffering from tepid foreign investment following Morales' 2006 nationalization, will be hard-pressed to match the increase and that has raised fears of shortages.
Argentina last year signed a contract with Bolivia to dramatically expand the amount of gas it will import and the two countries are moving forward on a $1.9 billion pipeline to quadruple the daily capacity of gas exports.
The threat of future energy shortages is a headache especially for Argentina, where bitter cold last winter led to natural gas shortages as Argentines turned up gas heaters.
The country also weathered summer blackouts caused by heavy air conditioner use.
Bolivian Energy Minister Carlos Villegas said the three leaders amicably discussed ways to divide up limited Bolivian supplies, but reached no immediate solution during talks at Argentine President Cristina Fernandez's suburban residence.
"We need to assure the overall supply of energy for the long term," Villegas said after Fernandez met Bolivia's Evo Morales and Brazil's Luiz Inacio Lula da Silva.
He said they agreed to create a committee made up of the three energy ministers "that is going study the structural issue of gas supplies in moments of greatest demand."
He said the ministers would meet in "coming weeks." The presidents made no public comments upon leaving the talks. But Argentine Foreign Minister Jorge Taiana released a statement confirming the creation of a "coordinating group" of energy ministers that said it will permanently analize "the evolution of the respective energy demands."
Bolivian officials have assured the two energy-hungry neighbors they can meet needs this year, but growing demand for gas could mean shortages in 2009. Natural gas is a critical energy source for Brazil and Argentina.
Brazil gets about half its natural gas from Bolivia — between 27 million and 29 million cubic meters daily — while Argentine generally buys between 3 million and 5 million cubic meters each day.
Bolivian officials say they expect demand from both countries to jump by as much as 7 million cubic meters daily in 2009.
Bolivia's natural gas industry, suffering from tepid foreign investment following Morales' 2006 nationalization, will be hard-pressed to match the increase and that has raised fears of shortages.
Argentina last year signed a contract with Bolivia to dramatically expand the amount of gas it will import and the two countries are moving forward on a $1.9 billion pipeline to quadruple the daily capacity of gas exports.
The threat of future energy shortages is a headache especially for Argentina, where bitter cold last winter led to natural gas shortages as Argentines turned up gas heaters.
The country also weathered summer blackouts caused by heavy air conditioner use.
Saturday, February 23, 2008
Isramco in Houston Buying Natural Gas Properties
Isramco Inc. (NASDAQ:ISRL) said Friday is has agreed to acquire working interests in certain producing oil and natural gas properties located in Texas, New Mexico and Oklahoma for $102 million from GFB Acquisition I LP and General Electric's (NYSE:GE) GE Financial Services.
The transaction, expected to close in March, includes mainly operated oil and natural gas properties in 40 fields.
Net daily production from the properties is 600 barrels of oil and 3.5 million cubic feet of natural gas. Total net proved developed producing reserves are 2.7 million barrels of oil and 14 billion cubic feet of natural gas.
Isramco expects to fund up to 5% of the purchase price from working capital and said it will obtain third party loans to fund the rest of the purchase price.
The Bank of Nova Scotia (TSX:BNS.O) (TSX:BNS.N) (TSX:BNS.M) (TSX:BNS.J) (NYSE:BNS) (TSX:BNS) (TSX:BNS.K) agreed to provide or arrange a secured revolving credit facility, under which Isramco expects to initially borrow up to $54 million.
GFB Acquisition I LP is a Midland, Texas-based oil and gas properties operator that was formed in a partnership with GE Financial Services.
Shares of Isramco, a Houston-based oil and gas properties company closed the regular session at $42.60.
The transaction, expected to close in March, includes mainly operated oil and natural gas properties in 40 fields.
Net daily production from the properties is 600 barrels of oil and 3.5 million cubic feet of natural gas. Total net proved developed producing reserves are 2.7 million barrels of oil and 14 billion cubic feet of natural gas.
Isramco expects to fund up to 5% of the purchase price from working capital and said it will obtain third party loans to fund the rest of the purchase price.
The Bank of Nova Scotia (TSX:BNS.O) (TSX:BNS.N) (TSX:BNS.M) (TSX:BNS.J) (NYSE:BNS) (TSX:BNS) (TSX:BNS.K) agreed to provide or arrange a secured revolving credit facility, under which Isramco expects to initially borrow up to $54 million.
GFB Acquisition I LP is a Midland, Texas-based oil and gas properties operator that was formed in a partnership with GE Financial Services.
Shares of Isramco, a Houston-based oil and gas properties company closed the regular session at $42.60.
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