Here is what is going on in the natural gas industry around the world:
Iran will inaugurate its second natural gas storage facility by the end of the current Iranian calendar year (March 20, 2013), aiming to boost gas storage capacity to 100 million cubic meters per day, the Mehr News Agency quoted Oil Minister Rostam Qasemi as saying.
He made the remarks on the sidelines of inaugurating the country’s first natural gas storage facility in Sarajeh, near Tehran, saying that the second facility will be established in Sarakhs, northeast of the country.
The inaugurated facility will have capacity to store 30 million cubic meters of gas per day, he said, adding that the figure is equal to the daily exports of natural gas to Turkey.
Some 60-70 million cubic meters (mcm) of natural gas will be stored in the facilities as consumption is expected to rise in the future, he added.
Work on Nasrabad underground storage facility near Kashan and Khorasan Province’s Shourijeh facility will also be launched, Samivand said.
Upon completion of five to six projects, Iran’s gas storage capacity will grow to 110 mcm, making it possible for the country to have a greater share in global gas sales.
Algeria and Turkey have decided to extend their natural gas agreement for another 10 years starting from 2014.
The Algerian Minister of Energy and Mining Youcef Yousfi said: “Algeria signed an agreement in 1988 with Turkey to buy four billion cubic metres of liquefied natural gas per year and which is due to end in 2014.
“Now SONATRACH and BOTAS (the Turkish pipeline company) have decided to extend this agreement for another 10 years with the possibility to increase the volume of the exported gas,” Yousfi made this announcement following his meeting with the Turkish Minister for Energy and Natural Resources Taner Yildiz, who arrived in Algiers Saturday.
Estonia, Latvia, Lithuania andFinland need to agree soon where to put a regional liquefied natural gas terminal to avoid delaying European Union aid for the project, Estonian Economy Minister Juhan Parts said.
Consensus is needed on the $1.7 billion terminal’s site before an accord is reached on energy infrastructure financing in the EU’s Connecting Europe Facility for 2014-2020, which may happen as soon as next month, Parts said in an interview in Tallinn yesterday.
The three Baltic countries and Finland plan to build a regional LNG terminal with EU funding as part of a strategy to reduce dependence on Russia’s OAO Gazprom, their only natural gas supplier. Estonia and Finland are best placed for a regional terminal, the European Commission said in a study published last November, after three post-communist countries failed to agree on a location and asked for the EU’s ruling.
“We’re still a bit short of regional consensus and we need to achieve it in a month or two,” Parts said. “It would be very regrettable if we missed this window for making an investment decision. We need a consensus on the location by the time EU’s new financial perspective is adopted.”
Potential annual demand for the terminal is for about 11 billion cubic meters of natural gas, according to the study by consultants Booz & Co.
EU funding is “vital” for a regional terminal, Antero Jaennes, the chief executive officer of Gasum Oy, the Finnish grid operator, said in November. Finland’s government said in June the Nordic country should strive to connect its natural gas network to central Europe’s via Estonia to create competition in the industry.
Lithuania’s Klaipedos Nafta is building a floating LNG terminal, due to be completed by the third quarter of 2014. Norway’s Hoegh LNG last November signed a $250 million loan with four banks for that project.
Shares in Oil & Natural Gas Corp rose as much as 3.6 percent on Thursday as part of a rally across oil companies after the oil ministry moved a proposal to raise diesel prices to the federal cabinet.
India’s oil ministry has proposed to raise diesel prices by 1 rupee per month for 10 monhts and to increase the number of subsidised cylinders.
ONGC shares rose 3.1 percent as of 0416 GMT. Hindustan Petroleum Corp gained 2 percent, while Bharat Petroleum Corp rose 2.1 percent. Indian Oil Corporation was up 3.8 percent.