Here is what’s going on in the natural gas industry around the world:
Algeria
GDF Suez SA recently announced that it has drilled the first of 24 production wells at the Algerian field of Touat. Output is expected to begin there in 2016.
Paris-based GDF Suez has a 65 percent interest in Touat while Sonatrach Group, the Algerian state oil and gas company, has the rest. The project will be the utility’s biggest for exploration and production with an investment of $3 billion.
Production will depend on construction of a pipeline linking the field to its northern network.
Algeria is GDF Suez’s third biggest supplier.
Iran
Iran has decreased natural gas imports from Turkmenistan by 52 percent during the first half of the Iranian year.
Currently some 4 million cubic meters per day is being imported. Last year, Iran imported some 10.2 billion cubic meters of gas from Turkmenistan.
Last year, gas consumption and production in Iran amounted to about 153.3 billion cubic meters and 151.8 billion cubic meters, respectively.
Iran also barters around 300,000 cubic meters of its gas to Armenia for electricity. With Azerbaijan, Iran is using swaps, which accounts for one million cubic meters of gas per day.
Tanzania
The Tanzania government is set to pass a long awaited oil and gas law, which is meant to regulate its growing reserves.
The legislation will be among the top priorities when parliament re-convenes. It will be a major breakthrough for the government which faces scrutiny from opposition politicians.
The new law is expected to simplify guidelines for bidding and contracting. It is also expected to ensure that the Tanzanian people benefit from the natural resources. The Tanzanian oil and gas sector is currently regulated by laws passed in the 1980s.
Tanzania, whose own reserves estimates have nearly trebled in the past six months following huge discoveries by firms like Statoil ASA (STO), Ophir Energy PLC (OPHR.LN) and BG Group PLC (BG.LN), is expected to join Uganda, Kenya and Mozambique as Africa’s major energy hub.
Canada
Enbridge Inc. announced recently that it has entered into a midstream services relationship with Encana Corporation to develop gas gathering and compression facilities in the Peace River Arch (“PRA”) region in northwestern Alberta.
Enbridge has agreed to acquire from Encana certain gathering and compression facilities in the PRA region currently in service and under construction, with an expected closing date in December 2012. Following the completion of construction of these facilities in 2013, Enbridge’s total investment in the PRA region is expected to be approximately $264 million.
The financial terms of the midstream services agreement for the gathering and compression facilities in the PRA region will parallel previously established terms between Enbridge and Encana reached in 2011. Enbridge is also working exclusively with Encana on facility scoping for further development of additional major midstream facilities in this region.
Enbridge also announced today it has agreed with the other owners of the Cabin Gas Plant development to defer the commissioning of Cabin Phase 1 and construction of Cabin Phase 2. Starting in December 2012, Enbridge will begin receiving fees for its investment made to date in the Cabin Gas Plant, including costs expended on Phase 2 of the plant facilities. Enbridge will retain the right to develop, own and operate all major midstream natural gas processing facilities required by Encana in the Cabin facility.