Pakistan’s LNG imports to hit 30 mtpa by 2025 · Pacific LNG Summit in Singapore, Adnan ... said Power Africa’s focus on gas ... We welcome your comments

Features and insight on emerging gas marketsInterfax Information Services Group

interfaxenergycomcopy2017 Interfax Europe

Vol 7 No 183 21 September 2017

Keep up to date with the latest stories by following us on Twitter or signing up to our RSS feed

Gas to Power Africa Power Africa provides welcome boost for gas 3

LNG Asia Pacific South Korea seeks to diversify LNG import sources 4

Policy Australia Gas exploration stymied as WA restricts onshore fracking 5

Wildcat Blog BP relaxes its grip on Argentine oil and gas producer 7

Pakistanrsquos LNG imports to hit 30 mtpa by 2025

Damon Evans Singapore

PAKISTAN COULD BE importing up to 30 mtpa of LNG by 2025 but even that might not be enough to cover the yawning gulf between the countryrsquos supply and demand the head of Pakistan LNG has told Interfax Natural Gas Daily

Speaking on the sidelines of the CWC Asia Pacific LNG Summit in Singapore Adnan Gilani the chief executive of Pakistan LNG said that the supply-demand gap is approximately 57-113 million cubic metres per day (MMcmd) which equates to about 20-30 mtpa of LNG

Power plants industry and manufacturing all use gas in Pakistan but no new industrial or commercial customers have been connected to the gas network since 2011 because domestic production is waning ldquoOur biggest worry is that 20-30 mtpa of LNG imports will not be enoughrdquo said Gilani

However some analysts have questioned Pakistanrsquos ambitious LNG import estimates Wood Mackenzie thinks that Pakistan will ramp up its imports to only 10 mtpa by the early 2020s although it says the country could improve on this

ldquoPakistan has a lot of under-utilised gas infrastructure so there is upside to this viewrdquo Kerry-Anne Shanks Woodmacrsquos head of Asia Pacific gas and LNG research told Interfax Natural Gas Daily

But Gilani underscored the fact that the high level of demand has always existed ldquoWe are not creating any new demand Our local resources are depleting and we are basically substituting imported gas for domestic gasrdquo he said

Not price sensitivePakistan generates 35 of its power from fuel oil but this is two-and-a-half times more expensive than using LNG As a result the country will be less sensitive to the price of LNG for generation for its first 15 mtpa of imports said Gilani ldquoItrsquos a very compelling argument based on all our estimatesrdquo

Pakistan LNG which is charged with managing the entire LNG supply chain to help solve the energy crisis has pushed forward the development of the countryrsquos first two LNG terminals Pakistan which relies on gas for 50 of its energy mix will see its second 45 mtpa LNG terminal start operations by November Gilani said The project was originally slated to come online in September

Pakistan received its maiden LNG cargo in 2015 when its first 45 mtpa terminal opened Four more LNG import projects have been proposed by the likes of ExxonMobil Trafigura Shell and a consortium comprising various local companies Completion of these terminals would see Pakistanrsquos imports jump more than fivefold by 2025 added Gilani Islamabad has also invested in transmission pipelines two LNG terminals and new gas-fired power plants at a cost of over $8 billion to the government

ldquoWe created this superhighway and now the private sector is investing [hellip] the pipelines will be open to third-party access and thatrsquos why the private sector is coming inrdquo said Gilani

However the rapid uptake of FSRUs across Southeast Asia means Pakistan could struggle to secure vessels for its projects India is leading the way with fives projects planned while Bangladesh is looking to secure three FSRUS

A gas plant in Pakistan The countryrsquos domestic output is dropping (MOL)

CONTINUED ON PAGE 2

CONTINUED FROM PAGE 1

Subscriptions amp subscriber servicesGet full pdf and online access to Natural Gas Daily and our sister publication Global Gas AnalyticsVisit interfaxenergycomregisteremail customerservice interfaxcoukcall one of our sales representatives at +44 (0)20 3004 6206

The country has invested $15 billion in a 34 MMcmd pipeline that will come onstream in Q3 2017 A second 34 MMcmd connection will start up in Q4 2018 while a third pipeline of the same size financed by Russia will start up six months later Three 12 GW gas-fired power plants have also been commissioned this year as part of the strategy to replace fuel oil

Pipeline revivalPakistani media said earlier this month that Islamabad was likely to revive the $23 billion Gwadar-Nawabshah pipeline because of its

An Excelerate FSRU in Argentina The companyrsquos Exquisite vessel is at work in Pakistan (Excelerate)

On interfaxenergycom

high strategic significance The pipeline will enable Pakistan to access supplies from Iran It had previously been shelved ostensibly under pressure from Saudi Arabia to further isolate the Islamic Republic

Pakistanrsquos economy has been growing at a rate of 45 per year but government estimates show it could expand at 7-8 per year if businesses were not constrained by the chronic gas shortage

Pakistan suffers from a serious shortage of electricity with over 55 million Pakistanis not connected to the grid

We welcome your comments Email us at commentsinterfaxcouk

twittercominterfaxenergy

facebookcominterfaxenergy

interfaxenergycomrssgasdaily

ASIA PACIFIC LNG

Close change

Brent Crude $bbl 5629 209

WTI Crude $bbl 5041 188

Henry Hub $MMBtu 309 -090

NBP pth 4455 -176

TTF euroMWh 1693 -118

Gaspool euroMWh 1685 -118

NCG euroMWh 1705 -109

CSX Coal $t 5895 -008

Newcastle Coal $t 9795 -025

South China Coal $t 8275 -030

Prices provided by GlobalViewGlobalView provides benchmark pricing news and analytics for the commodities and energy sector For more information please contact saleslondonmarketviewcom

Energy front-month futures 20 September

Hope springs eternal in the East Med

The Cypriot government is putting a brave face on lacklustre offshore drilling results

Further reading

Pakistanrsquos new leader could boost use of LNG

Gulf spat leaves Pakistan reliant on LNG

ASIA PACIFIC LNG

ASIA PACIFIC LNG

Pakistanrsquos former energy minister is now its interim prime minister a move that could support use of imported gas

The shelving of the Gwadar-Nawabshah pipeline will leave Pakistan more reliant on imported LNG

Natural Gas Daily | 21 September 2017 2

Power Africa provides welcome boost for gas

Gas is the clear winner from Power Africa so far with nearly two-thirds of capacity developed under the initiative being gas-fired

NEARLY TWO-THIRDS OF the generation capacity being developed under the Power Africa initiative will be gas-fired the annual report by the United States-led partnership shows

Power Africa set up in 2013 under then-US President Barack Obama has helped 82 projects worth $145 billion and comprising over 732 GW reach financial close across Africa However the target of 20 million power grid connections by 2018 is likely to be missed as so far only 106 million homes have been connected

Gas-fired projects account for 432 GW with the remainder provided almost entirely by renewables More than 200 GW of capacity is operational

In Tanzania where Power Africa is supporting three gas projects in Kinyezeri 670 MW is being added to the national grid In Mozambique the 40 MW gas-fired Kuvaninga project was commissioned in July albeit after a two-year delay In Ghana financial close on the Amandi Energy plant was achieved in December 2016 and the facility is scheduled to be operational in December 2019 The $552 million project is designed to generate 200 MW initially from crude oil but later from gas

Lloyd Hove chair of Discovery Investments a company that is building a CBM-to-power plant in western Zimbabwe said Power Africarsquos focus on gas will help southern Africa benefit from its abundant resources of the fuel estimated by Sasol Vice President Johan Thyse to be 17 trillion cubic metres

ldquoThis support is very welcome for an industry that is very capital-intensive Such massive investment is not always available in our regionrdquo Hove told Interfax Natural Gas Daily

Tendayi Marowa regional energy consultant at Harare-based Comprehensive Energy Solutions noted that more investment is needed beyond the selected countries in exploration and development as well as in education and strategic partnerships

ldquoAfricans need to know how much by way of quantities we have in gas and how cost-effective it is to extract it That is the starting pointrdquo he said

Regional gas committeeLeaders from the Southern Africa Development Community (SADC) ndash a bloc of 15 countries ndash are discussing the possibility of creating a regional gas committee to attract more investment

Only three countries ndash Mozambique Tanzania and Angola ndash have made strides in gas exploration and development but Botswana Zambia Namibia and South Africa are trying to catch up

South African President Jacob Zuma said the committee will create a framework for governments to share ideas for regional gas development and prepare for the development of the wider gas economy Speaking at an SADC summit on 19 August he said the region has much gas potential but has not received enough investment

ldquoThe inclusion of gas into the regional energy mix will facilitate increased universal access to energy as well as industrial developmentrdquo Zuma said

Power Africa is guided by the US Electrify Africa Act of 2015 which promotes an ldquoall-of-the-above energy development strategy for sub-Saharan Africa that includes the use of oil natural gas coal hydroelectric wind solar geothermal power and other sources of energyrdquo

The legislation says abundant gas in southern Africa can provide the baseload power necessary to drive industrialisation and complement intermittent renewables According to the report of the 183 GW earmarked for commissioning by 2020 around 75 would be gas-fired with this contribution falling to just below 50 of capacity by 2030


The Ubungo gas-fired power plant in Tanzania (Songas)

AFRICA GAS TO POWER

Ian Nkala Harare

Further reading

Ghana associated gas plans on hold as Ivory Coast verdict looms

Tullow begins Zambian exploration drive

AFRICA EampP

AFRICA EampP

Tullowrsquos exploration of the TEN fields could be stymied if a ruling on a border dispute with Ivory Coast does not go Ghanarsquos way

Tullow Oil has started exploration in Zambia in a move that the country hopes will reduce its reliance on copper production


South Korea seeks to diversify LNG import sources

ASIA PACIFIC LNG

South Korea lost a major supplier when force majeure was invoked at Yemen LNG in 2015 in response to the civil war The plant provided South Korea with around 8 of its LNG Thankfully the shutdown of Yemen LNG occurred at the same time as new export plants were starting up in Australia which enabled Kogas to increase its imports from the country South Korea has imported just under 20 of its LNG from Australia in the first seven months of 2017 compared with just 2 in 2014

Following the disruption to its LNG supplies South Korea is now keen to diversify its suppliers and is seeking more cargoes from the United States and emerging exporters such as Iran The US has supplied around 4 of South Korearsquos LNG so far in 2017 and this figure could increase significantly as US LNG plants start up over the coming years

The price South Korea pays for LNG has declined significantly since 2014 Some of the oldest contracts South Korea has include sales agreements with Qatar and Oman ndash but these are also some of its most expensive suppliers Signing more contracts and new deals with Australia and the US is expected to bring down the cost of South Korearsquos LNG imports over the coming years

South Korean gas company Kogas announced earlier this week that it intends to import LNG from Iran as it seeks to diversify its supplies South Korea is heavily reliant on just a few countries for the majority of its imports with 83 of all its LNG coming from just five countries so far in 2017 up from 78 in 2014

SOUTH KOREArsquoS LNG IMPORTS BY SUPPLIER 2014

Source Korea Customs Service

Qatar 35

Indonesia 14

Oman 10

Malaysia 10

Nigeria 9

Yemen 8

Russia 5

Australia 2

Brunei 2

Other 5

SOUTH KOREArsquoS LNG IMPORTS BY SUPPLIER 2017 TO DATE


Qatar 32

Australia 18

Oman 12

Indonesia 10

Malaysia 10

Russia 4

Brunei 4

US 4

Nigeria 2

Other 4

SOUTH KOREArsquoS LNG IMPORTS BY SUPPLIER

mt

2014 20162015 Source Korea Customs Service

0

2

4

6

8

10

12

14

BruneiAustraliaRussiaYemenNigeriaMalaysiaOmanIndonesiaQatar

AVERAGE PRICE OF SOUTH KOREArsquoS LNG IMPORTS BY SUPPLIER

$MMBtu

AustraliaMalaysiaOman

IndonesiaNigeriaQatar

RussiaYemenBrunei

United States Source Korea Customs Service

0

2

4

6

8

10

12

14

16

18

20

2017 to date201620152014

Andrew Walker London


Gas exploration stymied as WA restricts onshore fracking

Western Australiarsquos new Labor government has stopped fracking in the state in a move critics say will deter investment in oil and gas exploration

AT LEAST ONE gas explorer in Western Australia (WA) has threatened to quit the sector following a ban on onshore fracking in the regionrsquos southwest from this month and a temporary cessation elsewhere in the state pending the results of an independent scientific enquiry

WArsquos move against fracking which took effect on 5 September represents a surprising turn of events for Australiarsquos most-prolific petroleum state It follows the accession of a new Labor government in WA with a strong clean energy mandate

Whitebark Energy says the moratorium compounds the challenges facing explorers in WA where a time-consuming regulatory approvals process is already deterring investment ldquoExplorers wonrsquot risk money in WA while such uncertainty remains Even if permits are granted they will not attract any real expenditure until a clear way forward is set outrdquo Whitebark Director Stephen Keenihan told Interfax Natural Gas Daily

ldquoCompanies with existing permits are in limbo and are either delaying exploration activities or declaring force majeure Some are moving to overseas jurisdictions where while the regulatory regimes are still stringent the cost and timing of approvals is clear and understood Attracting risk funding for any exploration in the state which is critical for smaller companies is nigh on impossiblerdquo Keenihan added

The Australian Petroleum Production amp Exploration Association (APPEA) says the uncertainty caused by the moratorium risks strangling the onshore sector and leaving potentially massive shale and tight gas formations untapped However WA Petroleum Minister Bill Johnston has denied the fracking ban and moratorium are incompatible with a push to stimulate exploration

ldquoCompanies can still pursue exploration and develop sources that do not require fracking

during the moratorium Itrsquos up to the companies to make business decisions during this periodrdquo the minister told Interfax Natural Gas Daily ldquoWithout exploration companies wonrsquot know if fracking is required to develop a resource Irsquom aware of one recent case where a company was targeting an unconventional petroleum resource and found a conventional source that didnrsquot require frackingrdquo

WA recently committed A$10 million (US$8 million) per year in funding through the Exploration Incentive Scheme to encourage exploration in underexplored greenfield regions

Inquiry to take a yearWA will seek to complete its inquiry on fracking within 12 months though a specific deadline has yet to be announced The timing is important said APPEArsquos Stedman Ellis ldquoWersquove entered a period with perhaps the most depressed levels of onshore exploration activities in the state for the last 20 years measured both by exploration permits being issued and also the level of activityrdquo Ellis told Interfax Natural Gas Daily

ldquoThe inquiry needs to be delivered in a timely credible way and to stay focused on its scientific and regulatory scope This would restore certainty to exploration companies and provide greater confidence to stakeholders that the risks of fracking are well understood and there are good regulatory mechanisms in place to manage themrdquo Ellis added

WA is estimated to contain 8 trillion cubic metres of potential gas in shale and tight rocks in the Canning and Perth basins Potential resources in the Carnarvon and Officer basins are still underexplored

While WA is some way from emulating the sort of onshore shale gas boom seen in the United States it has significant potential ldquoItrsquos in everyonersquos interest that exploration can take place to understand the prospective shale and tight gas asset held by Western Australia so that the potential for development can be consideredrdquo Ellis said adding that ldquoit will take private sector investment to determine the extent of the resources and whether itrsquos economic to develop themrdquo

The ban mimics similar policies adopted in Victoria and the Northern Territory as anti-fracking efforts build nationwide It coincides with WArsquos latest exploration acreage release this month which the new Labor government led by Premier Mark McGowan had hoped would kickstart drilling activities after a prolonged 10-year lull as interest shifted to offshore LNG


Flaring from a shale gas well in eastern Australiarsquos Cooper Basin (Senex)

AUSTRALIA POLICY amp REGULATION

Sally Bogle Perth


CHINArsquoS NINGBO QIDONG and Tangshan LNG terminals increased daily sales of trucked LNG by an average of 1318 last week from the previous week while Qingdao cut sales by 37

Chinarsquos domestic LNG output is forecast to decline slightly this week to 4594 million cubic metres per day in response to PetroChina cutting feedstock supply to plants in Shaanxi and Inner Mongolia The dip in output is expected to increase ex-works prices in southwest east and central China by 168 week on week

Chinese trucked LNG sales receive boostTang Tian Shanghai

LNG SALES FROM TERMINALS TRUCKS

Dat

e

Dap

eng

Puti

an

Nin

gbo

Rud

ong

Don

ggua

n

Zhu

hai

Tia

njin

Qin

gdao

Tang

shan

Dal

ian

Bei

hai

Yued

ong

Qid

ong

11 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

12 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

13 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

14 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

15 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

Sources JLC SCI

LNG DELIVERY SCHEDULE

Arrival date Name of LNG carrier Origin Terminal Buyer Volume tons

10 Sep Dapeng Hao Australia Dapeng CNOOC 65000

11 Sep Arwa Spirit Australia Tianjin CNOOC 60000

11 Sep Bu Samra Qatar Rudong PetroChina 120000

11 Sep Methane Patricia Camila Australia Putian CNOOC 70000

11 Sep Polar Spirit Malaysia Dongguan Jovo 29000

11 Sep Min Lu Indonesia Putian CNOOC 65000

12 Sep Gigira Laitebo Papua New Guinea Qingdao Sinopec ndash

12 Sep Al Kharaitiyat Qatar Dapeng CNOOC ndash

13 Sep Christophe De Margerie Australia Dalian PetroChina ndash

13 Sep Clean Energy Australia Qidong Guanghui Energy ndash

14 Sep Min Rong Indonesia Putian CNOOC 65000

OUTPUT AND PRICE FORECASTS FOR 18-22 SEP

Combined output from plants MMcmd

Ex-works price RMBt

Shanxi

2000 2750-3100GansuNingxiaXinjiangQinghaiInner Mongolia 824 2900-3000

Hebei1084 3200-3500Tianjin

ShanxiHeilongjiang

138 2800-3400LiaoningJilinJiangsu

050 3800AnhuiShandong 015 3750-3800Henan

210 3350-3400HubeiHunanGuizhou

273 3100-3400SichuanYunnan

CHINA LNG


The Wildcat blog provides insight analysis ndash and occasional wit ndash on the gas industry from Interfax Energy reporters in every corner of the world More opinion is available on our website interfaxenergycomgasdailyopinion Email your comments to commentsinterfaxcouk

BP relaxes its grip on Argentine oil and gas producer

WILDCAT BLOG

ON THE SURFACE BPrsquos recently announced Argentine merger does not look like a great deal The supermajor gets no cash and will no longer call the shots at Argentinarsquos largest private oil and gas producer But some think it is a smart move

ldquoBP now has less influence in the boardroom but more political clout in Buenos Airesrdquo a Buenos Aires-based lawyer at an energy-focused firm told Wildcat on Tuesday

BP will merge Pan American Energy (PAE) ndash of which it owns 60 ndash with local refiner and fuel retailer Axion Energy The new company Pan American Energy Group (PAEG) will be a 5050 joint venture between BP and Bridas Corp which owns Axion and the other 40 of PAE

ldquoBP and Bridas have equal shares in the combined entity [PAEG]rdquo a London-based BP spokesman told Wildcat ldquo[PAEG] will be managed as an independent entity from its shareholders by an executive management team and a board of directors BP and Bridas will have equal representation on the board of directorsrdquo he added

This means that Bridas ndash which is jointly owned and managed by the billionaire Alejandro Bulgheronirsquos holding company and Chinese state-owned China National Offshore Oil Corp (CNOOC) ndash will step up from its supporting role at Argentinarsquos largest private oil and gas producer

ldquoDecisions related to matters customarily reserved for the board of directors and shareholders will be made jointlyrdquo said the BP spokesman ldquoIf asked a dispute resolution process has been incorporated into governance agreementsrdquo he added

Beijing and Bridas are far from shy and retiring CNOOC has been bold in Latin America leading

the recent charge into deepwater plays in Brazil and Mexico

The Bulgheroni family famously negotiated with the Taliban to build a gas pipeline across war-ravaged Afghanistan in the 1990s and they have emerged practically unscathed from nationalisations in Turkmenistan and Bolivia over the last decade

This extra steel and financial muscle could be a blessing as PAE beefs up in Vaca Muerta Total Wintershall Energiacutea PAE and state-run YPF announced a $115 billion joint investment in July to increase unconventional gas production in the Patagonian formation

Bulgheroni was said to be instrumental in cutting a deal with Argentine regulators to split in two the Vaca Muerta shalersquos Aguada Pichana block ndash the third-largest gas production block in Argentina Total will operate the eastern portion while PAE will operate the western area along with the Aguada de Castro block

BPrsquos new roleBP is relaxed about its watered-down role with the spokesman saying it would benefit from Bridasrsquos ldquooperating experience long-established presence in the region and extensive local knowledgerdquo

Discussions between Bridas and BP had also been ldquogoing on for some timerdquo he added In 2010 BP ndash seeking to cover clean-up costs from the Deepwater Horizon oil spill in the Gulf of Mexico ndash agreed to sell its 60 interest in PAE to Bridas only to see the deal collapse a year later

ldquoBP may actually be relieved to finally share decision-making in Argentina because it is such an unpredictable environmentrdquo said the lawyer

As far as economic arrangements for the newly created PAEG go BP and Bridas will continue to split the bills ldquoPAE is an independent joint venture in which BP holds a 60 interest and which we equity account Other than aligning the shareholding this transaction will not change that position our approach will be the same for PAEGrdquo said the spokesman

ldquo[The] cash flow of PAEG will be mainly distributions from PAE and Axion There have been dividends received in the past and we expect continued dividends from PAEGrdquo he added


Gas installations in Argentinarsquos Neuqueacuten province (Pan American Energy)

BP is giving up control of the boardroom at Argentine giant Pan American Energy and it could be a canny move by the supermajor

Chris Noon Barcelona


Europe | Companies amp Finance EU to help fund Polish gas pipelineThe EU will award a euro79 million ($94 million) grant to part-fund the construction of the 130 km-long Zdzieszowice-Wrocław pipeline in southwest Poland the European Commission said on Thursday The money will come from the European Regional Development Fund the commission said The pipeline is part of the North-South Corridor included in the European Network of Transmission System Operators for Gasrsquos Ten Year Network Development Plan 2017 The commission has identified it as a Project of Common Interest for trans-European energy infrastructure

Europe | Exploration amp Production Aker Solutions wins FEED contract for Troll gas fieldEngineering company Aker Solutions has been awarded a contract by Statoil for the design and engineering of a module intended to increase output from Norwayrsquos Troll gas field Aker said in a statement on Thursday ldquoWersquore excited to start working on the next phase of this important development and look forward to collaborating with Statoil to optimise value from this fieldrdquo Aker Solutions Chief Executive Luis Araujo commented in a note With 40 of Norwayrsquos offshore gas reserves Troll is one of the largest fields in the country

CONTINUED ON PAGE 9

IN BRIEF

FSU | Companies amp Finance Ukrainersquos Nafotgaz files $5 bln lawsuit over Crimea assetsUkrainian state company Naftogaz Ukrainy and its six subsidiaries have submitted a $5 billion compensation claim against Russia for damages caused by the ldquounlawful seizurerdquo of the grouprsquos assets in Crimea it said on Wednesday The claim was filed to the Permanent Court of Arbitration in The Hague A decision is expected by the end of 2018 according to Naftogaz The company previously estimated the damages at $26 billion

A Naftogaz Ukrainy gas processing plant (Naftogaz)

Africa | LNG Angola LNG signs supply contract with GlencoreAngola LNG (ALNG) has signed a multi-year supply contract with European trader Glencore ALNG announced in a statement The cargoes will be purchased on a delivered basis with ALNG providing shipping It is the third LNG supply deal the Angolan company has signed this month following deals with RWE and Vitol The LNG will come from the 52 mtpa ALNG plant in Soyo

Middle East | Exploration amp Production Tender planned for Egyptrsquos western Mediterranean acreageEgyptian Natural Gas Holding Co is planning an oil and gas exploration tender covering Egyptrsquos western Mediterranean acreage local press reports quote Chief Executive Osama el-Bakly as saying The round will be held before a planned seismic survey scheduled for the 2017-2018 financial year

Middle East | Pipelines Iran ready to complete pipeline to PakistanIran is ready to complete the long-delayed Iran-Pakistan pipeline Iranian President Hassan Rouhani has said according to the Mehr News Agency ldquoIran is ready to complete the gas pipeline expressing hope that the obligations of both sides be fulfilled which will be in the interest of both countriesrdquo Rouhani said in a meeting with Pakistani Prime Minister Shahid Khaqan Abbasi in New York on Tuesday

Asia Pacific | Alternative Fuels Indian Oil Corp and LanzaTech to build worldrsquos first gas-to-bioethanol plantIndian Oil Corp and carbon recycling company LanzaTech a have signed a statement of intent to construct the worldrsquos first gas-to-bioethanol production facility in India according to Bio Spectrum Asia LanzaTech has developed a gas fermentation process to make fuels and chemicals using a biological catalyst It will collect gases produced at industrial facilities such as refineries and use them to produce liquid fuels and petrochemicals

Asia Pacific | Companies amp Finance PetroBangla looks to form JVs for small-scale LNGPetroBangla the state oil company of Bangladesh is looking to form joint ventures to establish small-scale LNG terminals according to The Daily Star There are plans to establish two terminals using jetties belonging to Chittagong Urea Fertiliser and Karnaphuli Fertiliser Co which would supply gas to the two businesses and others There are also


Europe | Exploration amp Production UK may be on last decade of North Sea oil and gas ndash studyThe UKrsquos North Sea oil and gas resources may run out within a decade according to a study published by the University of Edinburgh The researchers added that with fracking proving uneconomical the UK may soon be entirely dependent on imports for its fossil fuel needs ldquoThe UK urgently needs a bold energy transition plan instead of trusting to dwindling fossil fuel reserves and possible frackingrdquo Professor Roy Thompson from the universityrsquos School of GeoSciences commented in a note

IN BRIEF

The Scott oilfield platform in the North Sea (Nexen)

plans to import LNG via the retired gas import infrastructure of the Sangu gas fields PetroBangla will arrange LNG supply once the infrastructure contracts are awarded

North America | Policy amp Regulation US coal-fired generators work to remain operational as mercury limits tightenSeveral coal-fired power generators in the United States installed equipment to reduce mercury output just before compliance deadlines in 2015

and 2016 in an effort to remain operational while requesting extensions to invest in further emission control technologies according to data published by the Energy Information Administrationrsquos (EIA) preliminary annual electric generator survey ldquoAbout 87 GW coal-fired plants installed pollution control equipment and 20 GW of coal-fired power was retired Around 142 GW coal-fired plants requested extensions to April 2016 and five 23 GW capacity plants received extensions to April 2017rdquo according to the EIA Since then two of the five plants have retired one has been converted to gas and one has installed Mercury and Air Toxics Standards-compliant controls leaving one Oklahoma plant with an emergency extension until April 2018

Latin America | Companies amp Finance Argentina falls behind on subsidy paymentsArgentina is behind on at least $700 million in promised subsidy payments to gas producers Reuters has reported State-owned YPF was owed $551 million in unpaid subsidies at the end of Q2 Interfax Natural Gas Daily first reported that mounting debt was delaying stimulus payments back in July

Latin America | Pipelines Subsea pipelines considered for Guyanan gas-for-power planExxonMobil and Guyanese authorities are discussing the feasibility of building a subsea pipeline to bring gas from offshore wells for power generation by state utility Guyana Power and Light Corp according to local press Exxon has flown in a team of experts from Texas to discuss the project Jan Mangal petroleum adviser to Guyanese President David Granger told Interfax Natural Gas Daily in April that the gas could feed a 200 MW power plant

Registered OfficeInterfax Europe 19-21 Great Tower Street London EC3R 5AQTel +44 (0)20 3004 6200Email customerserviceinterfaxcoukWeb interfaxenergycom

Chief editor Therese Robinsonthereserobinsoninterfaxcouk

News editor Tom Hoskynstomhoskynsinterfaxcouk

Africa editor Leigh Elstonleighelstoninterfaxcouk

Latin America editor Christopher Noonchrisnooninterfaxcouk

Middle East editor Verity Ratcliffeverityratcliffeinterfaxcouk

China editor Colin Shekcolinshekinterfaxcn

Asia Pacific editor Andrew Walkerandrewwalkerinterfaxcouk

EU policy amp regulation editor Andreas Walstadandreaswalstadinterfaxcouk

Western Europe reporter Silvia Favasulisilviafavasuliinterfaxcouk

International correspondentsBaku Anar Azizov Nigar Abbasova Beijing Li Xin Berlin Annemarie Botzki Delhi Garima Chitkara Dublin Astrid Madsen Kiev Alexey Egorov Roman Ivanchenko Lisbon Miriam Malek Moscow Alexey Novikov Svetlana Savateeva Yulia Yulina Perth Sally Bogle Shanghai Tang Tian Singapore Damon Evans

ProductionChief sub-editor Rhys TimsonSub-editors Doug Kitson Rob LovedayWeb developer Joseph Williams

SalesSenior sales manager Matt Sheltonmattsheltoninterfaxcouk+44 (0)20 3004 6203

Sales manager Frazer Donaldfrazerdonaldinterfaxcouk+44 (0)20 3004 6207

Sales manager Leyla Utman leylautmaninterfaxcouk+44 (0)20 3004 6229

Natural Gas Daily is published daily by Interfax Europe a division of Interfax Information Services Group

Copyright copy2017 Interfax Europe All rights reserved

ISSN 2048-4534No part of this report may be reproduced or transmitted in any form whether electronic mechanical or any other means without the prior permission of Interfax In any case of reproduction a reference to Interfax must be made

All the information and comment contained in this report is believed to be correct at the time of publication Interfax accepts no responsibility or liability for its completeness or accuracy




Subscriptions amp subscriber servicesGet full pdf and online access to Natural Gas Daily and our sister publication Global Gas AnalyticsVisit interfaxenergycomregisteremail customerservice interfaxcoukcall one of our sales representatives at +44 (0)20 3004 6206

The country has invested $15 billion in a 34 MMcmd pipeline that will come onstream in Q3 2017 A second 34 MMcmd connection will start up in Q4 2018 while a third pipeline of the same size financed by Russia will start up six months later Three 12 GW gas-fired power plants have also been commissioned this year as part of the strategy to replace fuel oil

Pipeline revivalPakistani media said earlier this month that Islamabad was likely to revive the $23 billion Gwadar-Nawabshah pipeline because of its

An Excelerate FSRU in Argentina The companyrsquos Exquisite vessel is at work in Pakistan (Excelerate)

On interfaxenergycom

high strategic significance The pipeline will enable Pakistan to access supplies from Iran It had previously been shelved ostensibly under pressure from Saudi Arabia to further isolate the Islamic Republic

Pakistanrsquos economy has been growing at a rate of 45 per year but government estimates show it could expand at 7-8 per year if businesses were not constrained by the chronic gas shortage

Pakistan suffers from a serious shortage of electricity with over 55 million Pakistanis not connected to the grid


twittercominterfaxenergy

facebookcominterfaxenergy

interfaxenergycomrssgasdaily

ASIA PACIFIC LNG

Close change

Brent Crude $bbl 5629 209

WTI Crude $bbl 5041 188

Henry Hub $MMBtu 309 -090

NBP pth 4455 -176

TTF euroMWh 1693 -118

Gaspool euroMWh 1685 -118

NCG euroMWh 1705 -109

CSX Coal $t 5895 -008

Newcastle Coal $t 9795 -025

South China Coal $t 8275 -030

Prices provided by GlobalViewGlobalView provides benchmark pricing news and analytics for the commodities and energy sector For more information please contact saleslondonmarketviewcom

Energy front-month futures 20 September

Hope springs eternal in the East Med

The Cypriot government is putting a brave face on lacklustre offshore drilling results

Further reading

Pakistanrsquos new leader could boost use of LNG

Gulf spat leaves Pakistan reliant on LNG

ASIA PACIFIC LNG

ASIA PACIFIC LNG

Pakistanrsquos former energy minister is now its interim prime minister a move that could support use of imported gas

The shelving of the Gwadar-Nawabshah pipeline will leave Pakistan more reliant on imported LNG




















AFRICA GAS TO POWER

Ian Nkala Harare

Further reading



AFRICA EampP

AFRICA EampP





ASIA PACIFIC LNG







Qatar 35

Indonesia 14

Oman 10

Malaysia 10

Nigeria 9

Yemen 8

Russia 5

Australia 2

Brunei 2

Other 5



Qatar 32

Australia 18

Oman 12

Indonesia 10

Malaysia 10

Russia 4

Brunei 4

US 4

Nigeria 2

Other 4


mt


0

2

4

6

8

10

12

14



$MMBtu



RussiaYemenBrunei


0

2

4

6

8

10

12

14

16

18

20

2017 to date201620152014





















Sally Bogle Perth






Dat

e

Dap

eng

Puti

an

Nin

gbo

Rud

ong

Don

ggua

n

Zhu

hai

Tia

njin

Qin

gdao

Tang

shan

Dal

ian

Bei

hai

Yued

ong

Qid

ong

11 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

12 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

13 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

14 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

15 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

Sources JLC SCI
















Ex-works price RMBt

Shanxi



ShanxiHeilongjiang





CHINA LNG




WILDCAT BLOG
























CONTINUED ON PAGE 9

IN BRIEF










IN BRIEF














































AFRICA GAS TO POWER

Ian Nkala Harare

Further reading



AFRICA EampP

AFRICA EampP





ASIA PACIFIC LNG







Qatar 35

Indonesia 14

Oman 10

Malaysia 10

Nigeria 9

Yemen 8

Russia 5

Australia 2

Brunei 2

Other 5



Qatar 32

Australia 18

Oman 12

Indonesia 10

Malaysia 10

Russia 4

Brunei 4

US 4

Nigeria 2

Other 4


mt


0

2

4

6

8

10

12

14



$MMBtu



RussiaYemenBrunei


0

2

4

6

8

10

12

14

16

18

20

2017 to date201620152014





















Sally Bogle Perth






Dat

e

Dap

eng

Puti

an

Nin

gbo

Rud

ong

Don

ggua

n

Zhu

hai

Tia

njin

Qin

gdao

Tang

shan

Dal

ian

Bei

hai

Yued

ong

Qid

ong

11 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

12 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

13 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

14 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

15 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

Sources JLC SCI
















Ex-works price RMBt

Shanxi



ShanxiHeilongjiang





CHINA LNG




WILDCAT BLOG
























CONTINUED ON PAGE 9

IN BRIEF










IN BRIEF





























ASIA PACIFIC LNG







Qatar 35

Indonesia 14

Oman 10

Malaysia 10

Nigeria 9

Yemen 8

Russia 5

Australia 2

Brunei 2

Other 5



Qatar 32

Australia 18

Oman 12

Indonesia 10

Malaysia 10

Russia 4

Brunei 4

US 4

Nigeria 2

Other 4


mt


0

2

4

6

8

10

12

14



$MMBtu



RussiaYemenBrunei


0

2

4

6

8

10

12

14

16

18

20

2017 to date201620152014





















Sally Bogle Perth






Dat

e

Dap

eng

Puti

an

Nin

gbo

Rud

ong

Don

ggua

n

Zhu

hai

Tia

njin

Qin

gdao

Tang

shan

Dal

ian

Bei

hai

Yued

ong

Qid

ong

11 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

12 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

13 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

14 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

15 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

Sources JLC SCI
















Ex-works price RMBt

Shanxi



ShanxiHeilongjiang





CHINA LNG




WILDCAT BLOG
























CONTINUED ON PAGE 9

IN BRIEF










IN BRIEF














































Sally Bogle Perth






Dat

e

Dap

eng

Puti

an

Nin

gbo

Rud

ong

Don

ggua

n

Zhu

hai

Tia

njin

Qin

gdao

Tang

shan

Dal

ian

Bei

hai

Yued

ong

Qid

ong

11 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

12 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

13 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

14 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

15 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

Sources JLC SCI
















Ex-works price RMBt

Shanxi



ShanxiHeilongjiang





CHINA LNG




WILDCAT BLOG
























CONTINUED ON PAGE 9

IN BRIEF










IN BRIEF
































Dat

e

Dap

eng

Puti

an

Nin

gbo

Rud

ong

Don

ggua

n

Zhu

hai

Tia

njin

Qin

gdao

Tang

shan

Dal

ian

Bei

hai

Yued

ong

Qid

ong

11 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

12 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

13 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

14 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

15 Sep 40 100 245 90 130 170 100 130 38 21 140 80 80

Sources JLC SCI
















Ex-works price RMBt

Shanxi



ShanxiHeilongjiang





CHINA LNG




WILDCAT BLOG
























CONTINUED ON PAGE 9

IN BRIEF










IN BRIEF






























WILDCAT BLOG
























CONTINUED ON PAGE 9

IN BRIEF










IN BRIEF






























CONTINUED ON PAGE 9

IN BRIEF










IN BRIEF





























IN BRIEF




























Documents

Pakistan’s LNG imports to hit 30 mtpa by 2025 · Pacific LNG Summit in Singapore, Adnan ... said Power Africa’s focus on gas ... We welcome your comments