Here is what’s going on in the natural gas industry around the world.
Poland wants to double its natural gas production to more than 8 billion cubic meters a year by 2019.
The country consumes more than 14 billion cubic meters of gas annually.
Renotiations of a long-term contract with Gazprom is set to occur in 2019. Most of the gas consumed in imported from Russia at a price lined to oil prices and calculated in U.S. dollars, which Poland views as non competitive. The country pays more than other Gazprom customers and higher than spot prices quoted on German exchanges.
Poland hopes that increasing output will bolster its position in talks over a new long-term supply contract with Gazprom.
PGNiG has 226 exploration and extraction licenses in Poland and produces more than 4 bcm of natural gas annually and has struggled to increase output.
The Indonesian vice president said recently that the lack of distribution infrastructure is crippling its ability to utilize large gas reserves.
The country has estimated gas reserves amounting to 109 trillion cubic feet, according to a report last year from BP.
Gas distribution is often unsuccessful, forcing some corporate customers to suspend operations at their plants. Some companies like state-controlled utility Perusahaan Listrick Negara struggles to secure an adequate supply.
The vice president said the country is intent on overcoming the obstacle and is backing a project to build gas and pipelines linking Java with Kalimantan and one that will link the Central Java city of Semarang with the East Java manufacturing city of Gresik.
Spain’s energy firm Repsol recently announced that it has made a significant natural gas find in the Amazon region of Peru.
Repsol said it struck gas at rates of 50 million cubic feet per day at depths of more than 8,850 feet.
The natural gas was found between Peru’s Otishi National Park and the Megantoni Sanctuary. The area is reserved for indigenous peoples who have sought isolation from civilation.
Rio de Janeiro-based HRT and its partner, Anglo-Russian oil company, expect to sign a long-term contract with a buyer of the gas by the end of 2013.
HRT and TNK-BP said their latest natural gas discovery in the Solimoes Basin in Brazil’s Amazonas state is likely one of the largest ever found in Brazil. But its location in the middle of a rain forest raises the cost of bringing the natural gas to market and limits the potential customers for its estimated 1.4 trillion cubic feet (40 billion cubic meters) of reserves.
Possible uses for the gas include condensing it so it can be sold to a metals or mining company such as Norsk Hydro and burned to provide the electricity needed to turn bauxite into alumina and alumina into aluminum.
HRT and TNK-BP are also considering plans to sell the gas to a fertilizer or alternative fuels company looking for a secure long-term supply of gas and willing to set up a factory in the Amazon to get it.