Tag Archives: International

New Pipelines Pre-Commissioning Inspection

February 2018, Vol. 245, No. 2

Prior to the commissioning of any pipeline system, it is critical for both the construction company and the asset owner to verify that the pipeline’s construction conforms to standard regulations, and that no damages have occurred during the construction phase. The timing of these inspection services is critical to ensure that any repairs that may be required can be executed before the pipeline is placed in operation. These testing practices, which range from pipeline gauging and hydrotesting to inline inspection, are of great benefit to the owner/operator, since they ensure safe operation not only during...

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MEXICO: Gas Pipeline Network Expansion Through 2019

February 2018, Vol. 245, No. 2

Mexico’s five-year plan (2015-19) for the expansion of the natural gas transport and storage system has as its main objective the construction of 13 gas pipelines (Figure 1), most of which were commissioned by the Federal Electricity Commission (CFE) to feed its power thermoelectric plants. This master plan has three main objectives: Increase and diversify the supply capacity of imported natural gas to northern and central areas of the country in order to compensate for supply fluctuations from southern Mexico Achieve redundancy to help alleviate congestions in the system and meet the demand for the...

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Big Politics at Work Behind Nordstream 2

February 2018, Vol. 245, No. 2

The supply of Russian natural gas across the Baltic Sea to Germany and onward to central and western Europe could be doubled by the proposed $10.6 billion (€9.5 billion) Nordstream 2 (NS2) pipeline. The 759-mile (1,200 km) pipeline, running parallel to Nordstream 1, will add 55 Bcm delivery capacity, establishing Germany as a center in Europe’s gas market and replacing the declining output from the North Sea. NS2, led by Gazprom in a joint venture  with some of Europe’s largest energy companies including Germany’s Eon and BASF/Wintershall, France’s Engie, Austria’s OMV and Dutch Shell, could...

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Iraqi Oil Minister To Discuss Ceyhan Exports In Turkey

Iraqi oil minister Jabbar al-Luiebi is set to visit Turkey this week to discuss the future of the Ceyhan-Kirkuk oil pipeline, a statement from the Iraqi oil minister said on Monday, according to Reuters. Turkey and Iraq are warming to each other as the two nations seek to undermine the ability of factions within their Kurdish minorities to further claims for an independent state. Following the meeting, Iraqi oil shipments will be sold via the state marketer SOMO, the ministry’s statement added. Iraqi officials’ requests, which instruct Kurdish authorities to restart exports through the pipeline […]

The End Of The LNG Glut

Predicting Demand is Difficult Many reputable forecasters, who’ve anticipated an LNG supply glut for years, now expect a brief period of surplus at most, and gradual market tightening after 2020. But global demand, which has surprised market watchers to the upside and kept physical markets tight during the past four years, could cut this looming mini-glut short. Numerous factors are at play but a few key indicators will shed light on likely supply and demand conditions through the mid-2020s. Looking near term, the International Energy Agency (IEA) expects that available LNG export capacity will greatly […]

EU Ready To Consider Iran Joining Southern Gas Corridor

The European Union is ready to start negotiating Iran’s participation in the Southern Gas Corridor project, the EU’s Vice President for Energy Union Maros Sefcovic told media at the Fourth Ministerial Meeting of the Southern Gas Corridor Advisory Council. The Southern Gas Corridor is a project of strategic importance for the EU, as it will reduce its dependence on Russian gas by eventually replacing part of it with Azeri gas from the Shah Deniz field in the Caspian Sea. The project will build on the existing South Caucasus Pipeline, which will be expanded and extended […]

The Impact Of Gazprom’s China-Russia Gas Pipeline

Gazprom’s Power of Siberia pipeline is more than two-thirds complete.  It will be delivering gas to China by the end of this year.  A second pipeline is still under discussion. A report yesterday from Alex Mercouris at The Duran noted some frustration from China over the irregular liquefied natural gas (LNG) supplies coming from its contract partners in Uzbekistan and Turkmenistan. It seems the Turkemi and Uzbek governments are shaking down China for better prices because gas demand in Western China’s autonomous regions is growing rapidly.  Complicating matters is the tough winter in Europe which spiked LNG […]

Israeli Gas Company Announces $15B Export Deal with Egypt

JERUSALEM (AP) — Israeli energy company Delek Drilling has announced a $15 billion deal to supply natural gas to Egypt. Delek and its U.S. partner, Noble Energy, signed a deal Monday to sell a total of 64 billion cubic meters of gas over a 10-year period to Egyptian company Dolphinus Holdings. Yossi Abu, chief executive of Delek Drilling, said in an interview that the deal is the largest-ever export agreement for Israel’s nascent natural gas industry. He called it “great news” for both countries. He says he expects most of the gas to be used […]

Saudi Arabia Vows To Cut More Production To Stabilize Oil Market

Saudi Arabia will cut additional 100,000 bpd of its oil production next month and keep its exports below 7 million bpd in March in a bid to help clear the global oversupply and counteract the recent oil market volatility. Saudi Aramco, the state oil giant, will pump 100,000 bpd less crude oil in March compared to the February level, the Saudi energy ministry said on Wednesday. The Saudi oil exports will continue to be below 7 million bpd in March, despite the 400,000-bpd SAMREF refinery shutting down for planned maintenance, the ministry said. Last month, […]

Colombia’s Oil Industry Faces 3 Big Problems

Colombia’s beleaguered oil patch remains under considerable pressure. Aside from falling investment and a lack of proven reserves that has led to fears that it only can support another five years of production at current rates, it continues to experience considerable disruptions and outages. The failure of peace talks and ending of a bilateral ceasefire with the last remaining Marxist insurgent group the National Liberation Army (ELN) has seen the guerillas recommence attacks on domestic energy industry infrastructure. That includes the recent bombing of the all-important Caño Limón pipeline, which connects the Caño Limón oil […]

Ex-Venezuelan Officials Charged in Oil Bribery Probe

BOGOTA, Colombia (AP) — U.S. prosecutors in Houston have unsealed charges against five former Venezuelan officials in connection with an alleged major bribery scheme at Venezuela’s state-run oil giant PDVSA. Among those charged with money laundering Monday are Rafael Reiter and Deputy Energy Minister Nervis Villalobos. Both were aides to Venezuela’s former oil czar and recently removed ambassador to the United Nations, Rafael Ramirez, who was not charged. The indictment alleges two PDVSA vendors sent more than $27 million in bribes to Swiss accounts controlled by Villalobos and another former official, Luis Carlos Leon, who […]

Ambitious TAPI Pipeline Grows Closer To Completion

It is the natural gas pipeline project that many have long said could never happen. But the Turkmenistan-Afghanistan-Pakistan-India pipeline, or TAPI for short, is taking another important step forward this month with construction of its most precarious section. If it is ever completed, the bulk of the Afghan component of TAPI will run abreast of the 557-kilometer (346-mile) Kandahar-Herat highway before turning off right along the road to the Pakistani city of Quetta. In perhaps one of the most important fillips to the entire undertaking in recent years, Saudi Arabia has reportedly committed to providing […]

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