Here is what’s going on in the natural gas industry around the world.
Bosnia and Herzegovina
Energtek Inc. announced today that the company has received all the necessary permits to construct its natural gas filling station in Reljevo, Sarajevo, in Bosnia and Herzegovina.
The filling station will be located in an area that will allow it to provide natural gas to Aluminij, a large aluminum manufacturer, as well as FEAL d.o.o Sirokj-Brijeg. The possible opening of the filling station will enable Energtek to increase it’s daily deliveries to Aluminij and to meet its 10-year supply contracts.
The filling station will also improve the companies position in the region. It also will improve profits as the distance between the energy source and the customer will decrease hence decreasing the delivery costs.
The filling station is expected to be operational by the beginning of 2013.
Apache Corp. has discovered natural gas off the coast of Kenya, boosting hope that the East African nation could have commercial reserves after big finds in Mozambique and Tanzania.
Apache partner Pancontinental Oil & Gas NL said the exploration well hit a net gas column of about 52 meters. The well has only been drilled to a depth of 2,553 meters below the ocean floor and drilling will continue to 3,275 meters. A secondary exploration target lies above the planned total depth.
About 100 trillion cubic feet of natural gas has been discovered in Mozambique and Tanzania.
The Ukrainian government said production in the country increased by nearly one percent for the first seven months of 2012.
Gas extraction in the country increased 0.9 percent from January to July compared to that same time last year.
The U.S. Energy Information Administration estimates Ukraine has around 42 million cubic feet of shale gas reserves. This makes it No. 3 among European countries.
China and Singapore
China and Singapore have invested a combined $1 billion into a planned Louisiana-based liquid natural gas export facility being built by Cheniere Energy, Inc. (LNG) in a bid to secure access to cheaper US natural gas, currently priced around $3/mmBtu compared with Asian prices of $13/mmBtu.
The price advantage is due to the United States’ utilization of hydraulic fracturing, more popularly known as ‘fracking,’ which has opened up massive natural gas resources for comparatively little investment when considering natural gas found in other areas of the world.
Cheniere has been actively seeking partners for the $5.6 billion expansion to its Sabine Pass natural gas liquefaction plant and export terminal in Cameron Parish, Louisiana. When completed in 2015, Sabine Pass will be the first liquid natural gas export facility to open within the United States in the past 46 years. The facility will house two LNG trains, where natural gas is purified and liquefied for transport. Each train is capable of producing 4 million tons of liquefied gas per year. [Editor’s note: “Train” is an industry term. The facility is shaped like a long train, these are not actual trains.] According Cheniere’s website, there is enough room for two more trains, and further expansion will be considered depending on customer demand.
Energy giant BP will begin works on a deep-water natural gas production project in Egypt’s Mediterranean basin next week, according to a report on Al-Ahram’s Arabic-language news website.
The company will invest $10 billion in Egypt over the coming five years.
BP’s offshore project is expected to add 20 per cent to Egypt’s natural gas production. The investment could create up to 5,000 job opportunities in Egypt.
BP Egypt announced on 26 August two new discoveries in Egypt’s Nile Delta.
Egypt is one of the top gas producers in the Middle East and the largest in Africa, providing exports to Europe, Japan, Korea, Jordan and until recently, Israel.
Egypt’s proven gas reserves sit at 77 trillion cubic feet (Tcf), an increase from 2010 estimates of 58.5 Tcf and the third highest in Africa, after Nigeria and Algeria, according to the U.S. Energy Information Administration.