China to Launch State Pipeline Group
China plans to launch its long-awaited national oil and gas pipeline company on Monday, part of a sector-wide reform aimed at providing fair market access to infrastructure and boost investment in oil and gas production.Most of the country's pipeline infrastructure is controlled by energy giant PetroChina, CNPC's listed arm, and small, non state-owned oil and gas producers and distributors often don't have access to the pipelines at competitive rates, analysts have said.This also hinders companies from investing in oil and gas exploration as they are concerned about access to the pipelines.Beijing started considering
CNPC's $8.5 Bln Gas Storage Project Starts Construction
China National Petroleum Corp's (CNPC) unit Liaohe Oilfield of CNPC kicked off construction of its gas storage group project in Panjin city in Liaoning province on Wednesday, the state-backed China News Service said.The project, jointly invested in by Liaohe Oilfield of CNPC and the Panjin government to the tune of about 60 billion yuan ($8.5 billion), is aiming for storage capacity of 11.5 billion cubic meters, according to China News.The Liaohe project is expected to become the biggest underground natural gas storage center in northeast China and the Beijing-Tianjin-Hebei region, the media said, without mentioning w
Big Oil Stuns Brazil in Back-to-back Auction Flops
Major global oil firms snubbed a second Brazilian oil auction in a row on Thursday, passing up offshore blocks and forcing officials to reconsider a bidding system that gives a privileged position to state-run Petroleo Brasileiro SA.The only block awarded in Thursday's bidding went to Petrobras, as the Brazilian state-run firm is known, and Chinese state firm CNODC, a unit of China National Petroleum Corp, which offered the minimum bid. Four other blocks received no bids.The result, following a lack of foreign interest in an even bigger Wednesday round…
Saudi Still China's Top Oil Supplier
Saudi Arabia held its position as China's largest crude oil supplier in September helped by demand from new refineries and as imports from Iran and Venezuela continued to fall due to U.S. sanctions, customs data showed on Friday.The drone and missile attack on oil-processing plants in Saudi Arabia on Sept. 14, knocking out half of the country's production, will likely have an impact on deliveries in October.At the height of the disruption, Saudi Aramco asked customers to switch their crude grades…
Asian Producers to Boost Winter Gas Supply
China Petroleum & Chemical Corp, known as Sinopec, said it has secured 8.81 billion cubic metres (bcm) of natural gas for northern China for the upcoming winter heating season, state-owned Xinhua News Agency reported on Tuesday.That was up 15.5% from 7.63 bcm in the previous heating season.CNOOC Group, China's largest offshore oil and gas producer, plans to supply around 24.5 bcm gas, or 1.5 bcm more than last year, across the country, Xinhua reported.The country's top oil and gas producer, China National Petroleum Corp (CNPC) did not give the amount of gas it will supply in the winter, but said that it will boost out
Venezuela, China Expanding Crude Oil JV
A Venezuelan oil joint venture with a state-owned Chinese company has started an expansion project to boost output to 165,000 barrels per day (bpd), President Nicolas Maduro said on Thursday, from a current capacity of 110,000 bpd.Sinovensa, owned by PDVSA subsidiary Venezuelan Petroleum Corp (CVP) and China National Petroleum Corp (CNPC), produces extra-heavy Orinoco crude and blends it with lighter oil to produce medium-grade Merey."Thanks always to China, for all of this effort and all of this cooperation…
Vitol Builds Refinery for New Ship's Fuel
Vitol, the world's largest independent oil trader, has started building a small oil refinery at its storage terminal in Malaysia that will provide low-sulfur fuel for ships, a senior company official said on Monday.The project consists of a crude distillation unit that can process 30,000 barrels per day of crude and is located on the same site as Vitol's oil storage terminal at Tanjung Bin in the southern Malaysian state of Johor, Vitol Asia's President and Chief Executive Officer Kho Hui Meng said.A…
BP Plans to Exit China's Shale Gas
European oil major BP plans to exit from two production sharing contracts (PSC) for projects drilling for shale gas in the southwestern Chinese province of Sichuan, three sources with the knowledge of the matter said this week.BP is the last of the international oil majors, including Royal Dutch Shell, Exxon Mobil, ConocoPhillips and ENI, to quit exploring for shale gas in China because of poor drilling results. Its departure leaves the sector firmly in the hands of domestic companies.In March 2016…
PetroChina Boosts European LNG Activity with Yamal Cargoes
China's top oil and gas company PetroChina is selling spot liquefied natural gas (LNG) cargoes on the European market from Russia's Yamal plant, adding to a flood of volumes to the continent amid subdued Asian demand, trade sources said.PetroChina's increased presence in Europe is an example of how Asian energy companies are expanding their role as LNG traders, engaging in LNG transactions globally.The early start-up of Yamal LNG's second and third trains, or production lines, in 2018 raised spot volumes from Russia and helped PetroChina boost its European market presence…
Petrobras Resubmits Agreement with CNPC
State-controlled oil company Petroleo Brasileiro SA said in a document resubmitted on Tuesday to Brazil's securities regulator it has signed an agreement with China National Petroleum Corp to study the economic viability of completing construction of the Comperj refinery in Rio de Janeiro.Petrobras originally announced the move in an October 16 statement.(Reporting by Gram Slattery; Editing by Jeffrey Benkoe)
Oil Falls as U.S. Crude Enters 'Bear Market'
Oil prices fell to multi-month lows on Friday as global supply increased and investors worried about the impact on fuel demand of lower economic growth and trade disputes.Benchmark Brent crude fell below $70 a barrel for the first time since early April, down more than 18 percent since reaching four-year highs at the beginning of October.Brent dropped $1.52 to a low of $69.13 before recovering to around $69.55 by 1430 GMT, down 4.5 percent for the week and 16 percent this quarter.U.S. light crude fell for a 10th successive day, dropping under $60 a barrel to its lowest in eight months. The U.S.
China Oil Majors Eyeing Arctic Onshore Blocks
China National Petroleum Corp (CNPC) and China National Offshore Oil Corp (CNOOC) have expressed interest in bidding for onshore oil and gas blocks in Greenland to be offered in 2021, officials from the island said on Tuesday.The Arctic island, a self-ruling part of Denmark, is shifting its oil and gas licensing strategy from offshore to onshore in an effort to generate revenues faster, they said.The next blocks to be tendered will be on the Disko Island and Nuussuaq Peninsula area of West Greenland…
China Move to Drop Crude off Tariff List a Relief for Sinopec
China's decision to remove crude oil from its latest tariff list in an escalating trade war with the United States was a relief to state oil firms prompted by a strong lobbying effort by main importer the Sinopec Group, Beijing-based oil sources said.Dropping crude oil from the final tariff list on $16 billion in U.S. goods announced late on Wednesday underscores the growing importance of the United States as a key global producer and critical alternative supply source for top importer China, which is seeking to diversify its oil purchases.Removing crude imports…
Novatek Aims to Launch Yamal LNG on Dec 8
Russia's Novatek has provisionally set Dec. 8 as the official launch date for its Yamal LNG plant, two sources with direct knowledge of the event planning told Reuters. Novatek's partners on the project are France's Total, the China National Petroleum Corp (CNPC) and China's Silk Road Fund. The project, on the Yamal Peninsula above the Arctic Circle, will be Russia's second LNG plant after Sakhalin-2 on the Pacific island of Sakhalin. At full capacity, the Yamal facility will be able to produce 16.5 million tonnes of liquefied natural gas a year, which it will ship to Europe and Asia.
Russia: Second LNG Plant in Arctic
Russia on Tuesday started production at its second liquefied natural gas plant, Yamal LNG, with the aim of shipping the first cargo on Dec. 8 from the remote Arctic port of Sabetta. Russia's No.2 gas producer Novatek owns a 50.1 percent stake in Yamal LNG. France's Total and China National Petroleum Corp each control 20 percent, while China's Silk Road Fund owns 9.9 percent. Russia, seeking to produce more than 70 million tonnes of LNG per year in its remote Arctic regions, for now has just one operational LNG facility, run by Gazprom and co-owned with Shell on the Pacific island of Sakhalin.
China's Nov. NatGas Imports soar, Crude Shipments Rebound
Total natural gas imports jump to record as industrial and commercial users face gas shortage. China's natural gas imports in November rose to a record as domestic demand surged while crude imports were the second-highest ever, as refiners ramped up output to cash in on strong profits as fuel prices soar, customs data showed on Friday. November gas arrivals, including pipeline imports and liquefied natural gas (LNG) shipments, hit 6.55 million tonnes, breaking a previous record of 6.1 million tonnes last December, data from the General Administration of Customs showed.
Novatek to Launch Second Yamal LNG Line in September
Russia's largest non-state natural gas producer Novatek will launch a second line at its Yamal LNG plant in September, the RIA news agency cited the company as saying on Wednesday. Novatek owns a 50.1 percent stake in Yamal LNG. France's Total and China National Petroleum Corp each control 20 percent, while China's Silk Road Fund owns 9.9 percent. Yamal LNG started producing liquefied natural gas in December. (Reporting by Vladimir Soldatkin; Writing by Polina Ivanova; Editing by Jack Stubbs)
China's Independent Refiners Gear up for Ethanol Push
Dongming plans to import ethanol, may produce biofuel; China set 2020 target for nationwide 10 pct biofuel use. China's top independent oil refiner is buying ethanol and two others are seeking government approval to blend the biofuel into their gasoline ahead of the country's 2020 deadline to add it to the nation's fuel supply, several sources told Reuters. China mandated last September that gasoline supplies should contain 10 percent ethanol, an alcohol typically produced from corn, in a blend known as E10.
Indian, Chinese Oil Companies Look to Invest in Ecuador
Indian oil company ONGC Videsh is looking at buying a stake in oil fields in Ecuador and may also participate in an upcoming tender for the Intercampos blocks, Ecuador's oil minister Carlos Perez said on Wednesday. "We will be signing a confidentiality agreement with them (ONGC Videsh) in the following weeks and we will provide them with information in new blocks," he said on the sidelines of the International Energy Forum. "They are (also) interested in partnerships with companies to take a share in the current production in certain fields over there," Perez said.
Cheniere Mulls Third Liquefaction Train at Corpus Christi
U.S. liquefied natural gas (LNG) company Cheniere Energy Inc said it planned to make a final investment decision to build the third liquefaction train at its Corpus Christi LNG export facility in Texas in the first half of 2018:Cheniere said on Friday its Cheniere Corpus Christi Holdings LLC subsidiary engaged financial institutions to arrange up to $6.4 billion of credit facilities. The unit already has about $4.6 billion of existing credit facilities.Cheniere said it will use the credit facilities to fund a portion of the costs of developing…