Here is what is going on in the natural gas industry around the world:
Serbia expects to cut the cost of gas imports by almost 10 percent this year after its natural gas monopoly signs a new contract for gas supplies from Russia next month.
Srbijagas and Gazprom OAO agreed on the gas price in Moscow last week and the agreement needs the Serbian government’s approval, the Novi Sad, Serbia-based company said in e-mailed answers to Bloomberg questions.
“On average, the price is expected to range between $380 and $390 per 1,000 cubic meters,” according to the agreement that envisages quarterly price adjustments, the company said.
Serbia, fully reliant on Russia for gas imports, was paying $421 per 1,000 cubic meters of gas on average in 2012, Dusan Bajatovic, Srbijagas’ general manager who negotiated with Gazprom, told the Belgrade newspaper Blic on Jan. 28.
Anglo-Dutch oil giant Royal Dutch Shell’s India unit plans to invest $1 billion in building a floating liquefied natural gas (LNG) terminal off Andhra coast by 2014 as it bets big on gas retailing in the energy deficit country.
Shell, which currently has a 3.6 million tonnes LNG import facility at Hazira in Gujarat, is building the floating LNG terminal off Kakinada in joint venture with Anil Ambani group firm Reliance Power Ltd.
“By end of the quarter, we will be able to import 5 million tonnes at Hazira,” Shell India head Yasmine Hilton said. The plan is to double capacity to 10 million tonnes in 3-4 years while the Kakinada terminal can also be doubled in near future.
Shell sees huge potential for gas imports as demand grows in the energy deficit country. The company is seeing “material” interest in the upstream oil and gas exploration and production and continues to evaluate opportunities, she said adding Shell would have a have material presence in the sector in next five years. For downstream fuel retailing, it pitched for a level playing field before it can expand its network of 70-odd petrol station.
“We must have a level playing field—market pricing and no subsidies. Subsidies are non competitive. As a multinational company, I don’t get any subsidies so it is non-level playing field,” she said adding level playing field will sharpen performance and give consumers a choice.
“Competition is not a dirty word,” she said. “Let’s have a robust investor friendly framework.” Shell-Reliance Power’s Kakinada port is the same for which state-owned gas utility GAIL India Ltd had roped in French utility GDF Suez and signed pact with Andhra Pradesh government for a 3.5 million tonnes floating LNG receipt facility.
The largest natural gas liquids (NGL) plant in the Middle East will come on stream on Thursday in Iran’s Siri Island, located in the Persian Gulf, ILNA reported.
The Siri NGL project includes Siri to Qeshm pipeline, Siri to Kish pipeline, Siri NGL plant, and Kish gas pressure boost station that cost $500 million.
The NGL project will save Iran around $5-7 million per day out of not burning gases associated with oil.
President Mahmoud Ahmadinejad is scheduled to inaugurate the plant.
The NGL plant in the Siri Island will prevent from burning gases associated with oil. The plant will produce 1,400 barrels of gas condensates, 1,500 barrels of pentane, 4,000 barrels of butane, and 8,000 barrels of propane per day.
In September 2012, National Iranian Gas Company’s managing director Javad Oji told the Mehr news agency that Iran will implement a plan for putting out flares at gas refineries by the end of the end of the fifth five-year development plan (March 2016), aiming to reduce energy consumption at gas refining facilities.
Germany’s environment minister says he doesn’t expect the extraction of natural gas by “fracking” will start any time soon in Europe’s biggest economy.
Shale gas is located underground across Europe, but environmental concerns over extracting it are widespread. Hydraulic fracturing, or “fracking,” frees natural gas from shale by injecting a well with chemically treated water and sand. Supporters say it can be an economic boon, but critics say it can pollute groundwater.
Environment Minister Peter Altmaier told Deutschlandfunk radio Monday that Germany’s government is working to ensure the practice is subject to limits and he wouldn’t advise anyone to seek drilling licenses soon.
Altmaier said he “can’t see fracking being used anywhere in Germany in the foreseeable future.”