Vol. 52, n° 15, October 22, 2013

Main news LNG: Supplies- Imports – Exports • North America has pushed Australia out of the top spot for new Asian investment in gas development. • Woodside has again been warned by the West Australian government that it will not be given free rein

over how it develops the Browse gas project. • European Union support for Rotterdam LNG hub development. • E.ON announced recently they have signed a medium-term contract with Qatargas for the supply of LNG

from Qatar to the GATE Regasification Terminal in Rotterdam. • Global energy flows are set to be transformed by the expansion of the Panama Canal, vastly expanding

the volume of gas that will reach Asia from the United States. • Tanzania wants the country's future LNG terminals to be built onshore to benefit the domestic economy. LNG: Storage • Yukon Energy Corporation is inviting proposals for Engineering, Procurement, and Construction services

for development of a Whitehorse LNG storage and vaporization facility. Natural Gas: Exploration – Discovery • Petrobras Argentina has announced it discovered a natural gas deposit in Argentina's south-western

Neuquen province. Natural Gas: Production • Total has halted commercial production of natural gas at the Pyrenean Lacq field in south-western

France as resources ran dry. Natural Gas: Transport - Distribution • Turkish companies expressed their willingness to supply the TANAP project with pipes. Natural Gas: Supplies- Imports – Exports • Clean-energy investment fell 14% in the third quarter from the prior three months as Europe curbed

subsidies and cheaper U.S. natural gas lured investment. • Ukraine hopes to overcome disagreements and end disputes over a 10-year gas supply contract signed

with Russia in 2009. • Low Henry Hub gas prices will not persist, meaning that volumes from US export projects sent to

northeast Asia may not significantly undercut oil-linked LNG from other countries in the long term. Natural Gas: Use As Automotive Fuel • General Motors Co will begin selling a mid-sized sedan next summer that can be powered by either

gasoline or compressed natural gas. LNG Production p.2 / Supplies-Imports-Exports p. 2-3-4-5-6-7 / Storage p. 8 / Consumption

p. 8 / Use as Marine Fuel p. 8 / Environment p. 9 GTL Processing p. 9 Natural Gas Exploration-Discovery p. 9-10 / Reserves p. 10-11 / Transport-Distribution p.11 /

Supplies-Imports-Exports p. 11-12-13 / Storage p. 14 / Consumption p. 14 / Use as Automotive Fuel p. 14 / Companies p. 15

Cedigaz News Report - Vol. 52, n°15 October 22, 2013

LNG

PRODUCTION EGYPT: Planned project – Tender - CNR52/15/1 Egypt's EGAS floats tender for FSRU Egyptian Natural Gas Holding Company (EGAS) has issued a tender for a floating storage and regasification unit (FSRU) which it hopes to use by next April, EGAS's deputy chairman Khaled Abdel Badie told. The country plans to rent it. Egypt can export LNG but cannot import it without such a terminal, of which there is a global shortage. Qatar agreed in May to donate five cargoes of LNG to Egypt and initial talks were held to acquire at least 13 more. (October 20, 2013)

SUPPLIES - IMPORTS – EXPORTS ARGENTINA: Planned project – Tender - CNR52/15/2 Argentina judge blocks top LNG supplier from tenders An Argentine federal judge has blocked the country's top LNG supplier, Spain's Gas Natural Fenosa, from participating in tenders for the fuel, an Argentine consumer rights group said. The ruling, first reported by local newspaper Clarin, could complicate the energy-deficient nation's ability to keep its power plants running. Until a court rules on whether GNF has potential conflicts of interests, the company will be unable to participate in tenders to provide fuel to the South American nation. That includes a tender for 5.57 million tones of LNG, or 93 standard-sized shipments, for 2014 and 2015 that Argentine state-run oil firm YPF has recently launched, worth around $4.5 billion. The tender covers supplies for Argentina's two LNG import terminals, Bahia Blanca and Escobar. The Argentine Consumers' Union filed a lawsuit saying another Spanish firm, Repsol owns a 30%

share in GNF while also holding a stake in YPF, which brokers the fuel purchases on behalf of fellow state-run energy company Enarsa. As a result of the ruling, GNF stands to lose a contract to deliver 2.7 million tones of LNG into Argentina's Escobar terminal which it was widely tipped to win. GNF is one of few global LNG suppliers that has the small ships needed to supply the river terminal, which is unable to receive standard tankers due to water depth restrictions. YPF appeared to be clearing the way for GNF to win the Escobar portion of the tender, several traders said, citing terms that appeared to favour the Spanish supplier. YPF's decision to seek a single supplier for the Escobar terminal in the latest tender document, as well as changing how the LNG supplies would be priced, led to widespread speculation among traders that GNF was set to win this portion of the tender." (October 16, 2013)

ASIA: Investment opportunities - CNR52/15/3 Asian investors, LNG buyers look to North America as Australia taps out North America has pushed Australia out of the top spot for new Asian investment in gas development, with most of the supply from existing Australian projects sold off and buyers hunting for cheaper fuel, industry executives said recently. Australia has been for the past several years the global hotspot for Asian gas investors, with $190 billion in LNG developments under way to take advantage of its proximity to top buyers such as Japan and South Korea. But its seven current projects have been parcelled out to off-takers and equity stakeholders, and no new projects are expected to move forward within the next year. That slowdown and the pull of cheap, abundant North American shale gas has turned heads towards projects just setting up for development in the United States and Canada that are aiming to fill Asia's still burgeoning LNG demand. A spate of approvals on U.S. gas export projects, about 50 million tonnes a year of capacity, has removed some of the uncertainty over its LNG supplies, while Canada's vast potential is attracting rising numbers of Asian buyers and investors. (October 17, 2013) 2

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013 AUSTRALIA: Regulation - CNR52/15/4 Woodside warned on Browse project Woodside has again been warned by the West Australian government that it will not be given free rein over how it develops the Browse gas project. After millions of dollars' worth of preliminary work, Woodside this year opted to commit to floating LNG for the Browse project, off the north-west coast of WA, after rejecting a land-based option favoured by the government because of inadequate economic returns. Giving evidence to a state government committee, Rob Cole, Woodside's executive vice-president of

corporate and commercial, said it was too early to quantify the sort of work WA companies would be offered in the project. But Premier Colin Barnett said when Woodside made its decision on how it would proceed, it would still have to agree to state government conditions. ''Every country around the world places conditions on the development of their natural resources. This is not entirely up to Woodside - they do not, to this day, own that gas. It is owned 80 per cent by the Commonwealth and 20 per cent by the states. We will have a say in how it is developed". (October 17, 2013)

CYPRUS: Planned project – Agreement - CNR52/15/5 Total seeks role in LNG terminal Total is looking to participate in the development of a gas liquefaction terminal, it emerged recently, as the cabinet approved a draft MoU with the French company. Reports said the MoU was approved and will be signed in the next days. Total has secured two offshore blocks in the Cyprus Exclusive Economic Zone. Cyprus has already signed a similar agreement with US oil company Noble Energy, which has discovered natural gas in an offshore field known as Block 12. (October 16, 2013) ESTONIA: Planned project – Delay - CNR52/15/6 Deadline looms for LNG terminal decision The Estonian Economy Ministry hopes that the construction of a liquefied natural gas terminal could start at the beginning of the next year, or at least in the first half of the year, as the location of the terminal is still unclear, reports Public Broadcasting. Next week, the European Commission should reveal the list of infrastructure projects that will apply for financing from the Connecting Europe funds in the next budgetary period. Inkoo in Finland, Paldiski and Muuga in Estonia and Riga in Latvia are likely to compete to be the location for the regional LNG terminal.

These projects will have the right to submit investment applications by the end of October. Tallinna Sadam, that plans the LNG terminal in Muuga as well as Alexela Energia that is behind the Paldiski project, confirmed intentions to submit the investment application on time. If all goes according to the plans of the EU, the decision about the LNG terminal should come sometime in the next six months. “The positive scenario is that construction could start at the beginning of 2014,” said Economy and Communications Ministry adviser Thor-Sten Vertmann. (October 10, 2013)

EU: Financing projects - CNR52/15/7 European Union support for Rotterdam LNG hub development The Port of Rotterdam Authority released a statement today noting they are delighted that two European subsidy applications relating to LNG have been granted and the European Union support for the development of a Rotterdam LNG hub. The subsidy is for €40 million to be used for the LNG infrastructure for the Rhine-Main-Danube area and a €34 million subsidy for the LNG breakbulk terminals in Gothenburg and Rotterdam. Together, the projects will create a logistics chain for LNG; the first in Europe. The Port Authority wants to make Rotterdam the most sustainable port of its kind and sees LNG as a way of substantially reducing emissions from shipping. The subsidy is in line with the Port of Rotterdam Authority’s endeavor to fully develop the market for LNG as a fuel and to open an LNG hub in Rotterdam before the end of 2015. The Port of Rotterdam Authority also noted the subsidy represents a considerable boost for the Rotterdam LNG hub, but the funds will not just benefit the port of Rotterdam specifically. The entire European LNG logistics chain will profit. As an example, 33 partners are involved in the LNG Masterplan for the Rhine-Main-Danube corridor. The project is coordinated by ‘ProDanube’. The Port Authority is coordinator for the Rhine corridor. The ports of Antwerp, Strasbourg, Mannheim and Basel and a few private parties are also involved. The subsidy for the breakbulk terminals relates to a joint venture between the ports of Gothenburg

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013 and Rotterdam. Via the breakbulk terminal, it will shortly be possible to supply LNG to the bunker market in (north)west Europe as well. (October 16, 2013) GREECE: Financing projects - CNR52/15/8 European Commission grants 134 million euros to Greece’s DESFA Greece’s DESFA will have 134 million euros funds to invest in the LNG facilities in Revythoussa, the Compression Station facilities in Nea Mesimvria and the pipelines towards Evia and Peloponesus. The European Commission decided to grant 134 million euros, both from national and from European structural funds. The total investment cost is estimated at 414 million euros. ‘These projects have as a target to increase gas transmission capacity, to improve

security in gas supply in Greece and, indirectly, to reduce CO2 emissions,’ said DESFA CEO George Paparsenos recently. The investment in the LNG terminal in Revythoussa is expected to improve security of gas supply. The Compression station in Nea Mesimvria would enhance gas flow from the North to the South of the Country. The last two projects – new high-pressure gas pipelines – should allow differentiation in energy sources in areas where there is no access to natural gas. (October 17, 2013)

GERMANY: Supply contract – Agreement - CNR52/15/9 E.ON signs LNG supply contract with Qatargas E.ON announced recently they have signed a medium-term contract with Qatargas for the supply of LNG from Qatar to the GATE Regasification Terminal in Rotterdam. The contract, which is priced on a continental gas hub basis, will run for a period of five years and has the potential to supply up to 10 bcm over its term. Supplies will start in 2014 according to E. ON. E.ON noted they are looking at Qatar as a priority country in the expansion of the company's LNG business model, including short and long-term supply agreements. In 2009, E.ON opened an office in Doha, Qatar, in addition to its Middle East office in Dubai, United Arab Emirates. The agreement with Qatargas is the second important long-term contract signed by E.ON in the last few weeks. The company announced in September that it had completed a 25-year deal to bring 40 bcm of gas from Azerbaijan’s Shah Deniz field to Europe. (October 9, 2013) INDIA: Trade development - CNR52/15/10 India looks to finalize energy deals with Russia India is looking to finalize multibillion-dollar deals on liquefied gas and nuclear-power technology with Russia before Prime Minister Manmohan Singh's visit to Moscow later this month, a government official said. Russia and India are traditional allies with their ties stretching back to the Soviet era when they were major trade partners. Their partnership has lost some sheen in the post-Cold War with India strengthening its ties with the West, especially the U.S. India is also increasingly buying defense equipment from the U.S. and Europe to upgrade its predominantly Soviet-era weaponry. India's trade with Russia totalled just over $11 billion in 2012, nearly a quarter more than the previous year, according the website of the Indian Embassy in Moscow. That was significantly smaller than India's bilateral trade of $65.78 billion with China and $61.35 billion with the U.S. Moscow and New Delhi have a target to nearly double the value of their trade to $20 billion by 2015. Russia's exports to India include fertilizer, nuclear-power technology, iron and steel, and

crude oil, while India's exports to that country comprise mostly pharmaceuticals, electrical goods, tea and coffee. India wants to increase economic and trade relationship with Russia and improve access to Russian oil and gas resources as a large consumer, spokesman Pankaj Pachauri said. The deals that India is looking to sign include one on a LNG project in the Yamal region. The region has proven gas reserves of more than 20 trillion cubic feet. The government official said a consortium comprising India's ONGC Videsh Ltd., Indian Oil Corp. and Petronet LNG Ltd. is talking to OAO Novatek for acquiring a stake in the Yamal LNG project and signing a long-term gas-supply agreement. The project is one of several energy assets India is looking to buy a stake in as part of the South Asian nation's efforts to improve its energy security. India meets nearly three fourth of its energy requirements through imports as local fuel shortages, aggravated by a decline in local gas output and less-than-estimated coal production, have crippled the energy sector. (October 4, 2013)

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013 JAPAN: Project financing - CNR52/15/11 Japex considers seeking Canada LNG project finance from JBIC Japan Petroleum Exploration Co. may seek some project financing for its $10 billion LNG project in Canada from Japan Bank for International Cooperation, according to an official from the producer. Japex acquired a stake in April this year in the Pacific Northwest Project, which plans to build an LNG plant in Prince Rupert, British Columbia, with a production capacity of 12 million metric tons a year. “Given our 10% equity in the project, our investment could reach 100 billion yen or

more,”...“as much as 50% of the total could be covered with the project finance.” Koichi Shimomura, who advises the president of Japex’s Americas and Russia project division, said at the World Energy Congress in Daegu, South Korea. Japex purchased its stake in Pacific Northwest from Petronas. It also bought 10% of a shale-gas field in the North Montney area of British Columbia in the same month. Japex and Kuala Lumpur-based Petronas plan to complete a front-end engineering design study in early 2014 and reach a final investment decision by the end of that year, according to Shimomura. (October 16, 2013)

MALTA: Planned project - LNG supply - CNR52/15/12 Gasol group chosen for floating gas project in Malta The award of a LNG contract in Malta to a consortium including Gasol is hugely significant. Electrogas is a consortium that consists of Gasol (30%), SOCAR Trading, local investor group GEM Holdings and Siemens’ equity financing arm. It was selected ahead of 18 other interested groups. The project involves the provision of a floating storage unit (FSU) to be docked in Delimara, Malta, and the regasification of an initial 55-60 million standard cubic feet per day (mmscf/d) of gas from LNG deliveries to Malta’s state-owned power group Enemalta. SOCAR will supply the FSU for the Maltese project on an 18 year charter and have the exclusive right to supply LNG to an existing 149 megawatt (Mw) plant run by Enemalta and also a new 200Mw station to be built by the consortium. Gasol and Azerbaijan-state oil company SOCAR are already partners on projects to supply LNG to Benin, Togo and Ghana from ships converted to FSUs to store and supply gas. (October 14, 2013) PANAMA: Planned project – Expansion - CNR52/15/13 Panama Canal expansion to draw US gas to Asia Global energy flows are set to be transformed by the $US5.3 billion ($5.6 billion) expansion of the Panama Canal, vastly expanding the volume of gas that will reach Asia from the United States and raising pressure on the $100 billion-plus of proposed Australian LNG projects to lift competitiveness. While the opening of the deepened and widened canal in 18 months’ time will enable increased volumes of coal exports from the US to Asia, the major impact will be on LNG and LPG, said Neil Beveridge from Bernstein Research. The enlargement of the canal will enable large gas tankers and LNG vessels to pass through the crucial transit point for the first time, cutting shipping days from the US east coast to Asia from 41 days at present (via South America’s Cape Horn) to 25 days. Freight costs could be almost halved, putting the US on a par with the Middle East for transport to Asia. “While the opening of the Panama Canal will lead to unexpected changes to energy trade flows, it will surely accelerate energy arbitrage between the US and Asia,” Mr Beveridge said. “The opportunities

appear to be more related to LNG and LPG rather than coal and oil.” Australian producers such as Woodside Petroleum and Santos say US exports will remain limited to about 50 million tonnes a year by 2025 and will not be much cheaper than Australian supplies. Goldman Sachs is, however, forecasting about 60 million tonnes a year of US LNG exports by 2020, noting 46 million tonnes of capacity has already secured government approval. The many LNG export projects planned on the US Gulf Coast are relying on transit through the canal to reach north Asia, where customers pay the world’s highest prices for their gas. Four US LNG export projects have now received approval to export to non-FTA countries, and analysts have been increasing their forecasts of how much US LNG will reach Asia. BG Group, which has booked capacity at two of the most advanced US LNG export projects, remains cautious on Australian expansion. Derek Fisher, managing director of BG’s QGC subsidiary in Asia, said Australia’s advantages of low political risk and proximity to markets were offset by its position as “the high cost marginal producer”. (October 8, 2013)

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013 RUSSIA: Regulation - CNR52/15/14 Russia expects to liberalise LNG exports from Jan 1 -minister Russia expects to liberalize its LNG exports from Jan. 1, and a bill will be submitted to parliament shortly, Energy Minister Alexander Novak said. He also said Gazprom and CNPC are expected to reach an agreement on gas supplies by the end of this year. President Vladimir Putin said earlier this month that Russia would press ahead with opening up LNG exports in a move to meet growing demand from Asia-Pacific markets. "We expect the law to take effect since the first of January next year." Removing restrictions on LNG exports would be a big blow to state-controlled Gazprom, which holds

a monopoly on Russia's gas exports. The prospect of an end to that monopoly has injected urgency into its talks to supply China with pipeline gas, which have gone on for more than a decade. Last month, the two sides reached agreement on basic terms for a deal but not on price, which has been an issue for years as China demands a steep discount to prices paid by Western utilities. Russian gas producer Novatek and top oil producer Rosneft have both lobbied for LNG export rights. Rosneft has agreed with ExxonMobil to build an LNG plant in the Russian Far East at an estimated cost of $15 billion. (October 16, 2013)

TANZANIA: Planned project – Start up modification - CNR52/15/15 Tanzania hopes for first LNG exports by 2018 Tanzania said recently it hopes to export its first shipments of LNG two years earlier than planned amid intensifying competition for customers in the wake of the U.S. energy boom. Sospeter Muhongo, Tanzania's energy and minerals minister, said that improvements in modern technology would make this possible. Despite the promise of bumper revenue, like neighbouring Mozambique, Tanzania is hamstrung by a lack of infrastructure, even as more gas comes onto the world market, making it imperative that any LNG development plans and export contracts are finalized as soon as possible. Mr. Muhongo said the cost of the LNG plant to be built by Statoil and BG Group had yet to be determined. (October 14, 2013) TANZANIA: Domestic supply - CNR52/15/16 Tanzania says new LNG plants should be onshore Tanzania, which is sitting on natural gas reserves estimated at double Europe's annual demand, wants the country's future LNG terminals to be built onshore to benefit the domestic economy, its energy minister said. Tanzania and its southern neighbour, Mozambique, are locked in a race to be first to export gas from Africa's eastern seaboard after huge discoveries offshore recently that could transform their struggling economies. Both face hurdles. Tanzania has yet to finalise its natural gas policy, while debate rumbles on over how much gas should be sold to foreign investors and how much left for domestic consumption in a country historically dogged by power outages. Britain's BG Group and Ophir Energy have been at the forefront of exploration in Tanzania, while energy majors Exxon Mobil and Statoil have also found gas. BG and Statoil said in March they

planned to build a $10 billion LNG terminal. "No LNG plant will be built offshore. We have rejected those proposals," Sospeter Muhongo, Tanzania's energy and minerals minister, told recently. "Tanzanians have been farming since independence, but remain poor. We want the gas economy to benefit all Tanzanians," the minister said. The Tanzanian government will be keen to show gas windfalls will benefit the whole nation after violent protests in the south earlier this year by residents opposing the construction of a gas pipeline until they get a bigger share of benefits. Like Mozambique, Tanzania needs to overcome challenges before exports commence, including passing legislation to encourage and safeguard investors, securing new investment for costly infrastructure and allaying corruption fears. Tanzania, which is drafting a new gas policy, plans to hold its next oil and gas licensing round on Oct. 25. It will offer seven deepwater offshore blocks and one onshore. (October 11, 2013)

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013 THAILAND: LNG supply – Talks - CNR52/15/17 Thai PTT in talks to buy LNG from US, Mozambique, Australia PTT Pcl said recently it was in talks to buy LNG from producers in the United States, Mozambique and Australia. LNG is a key fuel source in Thailand, which uses natural gas to generate almost 70% of its electricity. "We are in talks with several sellers in the United States," Panu Sutthirat, executive vice president for natural gas supply, told reporters. PTT planned to buy LNG from projects that its unit PTT Exploration and Production Pcl has stakes in in both Mozambique and Australia. A preliminary agreement for supplies from Mozambique was expected before the year-end, Panu said. State-controlled PTT aimed to obtain 70-80 % of its supplies through long-term contracts and the rest from spot market or short-term contracts, he said. In late 2012, PTT signed an agreement to buy 2 million tonnes a year of LNG from Qatar for 20 years, with the first delivery to begin from January 2015. Thailand imported 1 million tonnes of LNG in 2012 and should import about 1.5 million tonnes this year, lower than target of 2 million tonnes, and the number should rise to 3 million in 2014 and 5 million tonnes in 2015. The LNG terminal at Map Ta Phut opened in 2011 to become the first in Thailand. It has capacity to handle up to 5 million tonnes per year. A second terminal, being built is expected to open for commercial operations in 2017, and will double Thailand's total handling capacity to 10 million tonnes, and there are studies underway for a third. (October 16, 2013) UNITED STATES: Regulation - CNR52/15/18 Pascagoula gas terminal awaits federal export OK Investors spent $1 billion building a facility in Pascagoula to import LNG. But plans to bring natural gas into the United States collapsed when explorers began finding large quantities of natural gas in the United States. Now, Kinder Morgan, the pipeline company that operates the facility, is trying to get approval from the U.S. Department of Energy to export natural gas to countries with which the United States doesn’t have free trade agreements. Kinder Morgan Vice President Norman Holmes told the Southern States Energy Board recently that approval could spark as much as $8 billion of investment at the plant. The board approved a resolution calling on the U.S. Department of Energy and other regulators to ease and speed up licensing of export facilities. Some industries and other users have opposed exporting natural gas because it could raise prices in the United States. “The fear that all our gas is going to be sucked out of this country and go to another place is just not realistic,” said Karen Harbert, CEO of the U.S. Chamber of Commerce’s Institute for 21st Century Energy. “There is going to be a natural settling-out”.

In the last decade, eight U.S. facilities including Pascagoula were built to import natural gas from other countries, with the expectation that North American supplies were dwindling. But, natural gas is much cheaper in North America than it is in many other parts of the world, making exports economical. The Pascagoula facility is getting no fees from ships because it hasn’t accepted cargo since 2011. It’s paying $1 million in rent each year to the Port of Pascagoula, plus millions in property taxes. Holmes said Kinder Morgan is trying to market outgoing cargoes now to countries that have free trade agreements with the United States. But, he said, 96% of the world market is in areas that don’t have agreements. If Kinder Morgan gets a contract and an export permit, it’s likely to invest $4 billion to build one export line, and could spend $8 billion to build two, Holmes said. More than 20 facilities, mostly in Louisiana and Texas, have applied to the U.S. Department of Energy to export gas to non-free trade countries. So far, the agency has been taking up the applications in the order with which they were received. The Pascagoula facility is 10th on the list, but many of the facilities ahead of it exist only as proposals. (October 14, 2013)

WORLD: LNG demand - CNR52/15/19 Number of LNG importing countries to double within 10 years The number of countries importing LNG will double within 10 years and LNG exports will grow more than by half, Russian Energy Minister Alexander Novak told the 22nd World Energy Forum in South Korea’s Daegu. Increasing use of energy efficiency measures in the world can save from $250 billion to $325 billion by 2030. “It is quite appropriate to say that introduction of energy efficiency measures opens vast opportunities. This will also help reduce emissions of greenhouse gases by 12-17% as compared to a baseline scenario,” Alexander Novak emphasized. (October 16, 2013)

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013

STORAGE CANADA: Planned project – EPC - CNR52/15/20 Yukon Energy invites proposals for Whitehorse LNG storage Yukon Energy Corporation is inviting proposals for Engineering, Procurement, and Construction services for development of a Whitehorse LNG storage and vaporization facility. The facility will consist of truck off-loading facilities, gas storage tanks, send-out pumps, vaporization equipment, vapor handling systems and all auxiliary systems needed to provide natural gas to two modular natural gas gen-sets. The construction work is scheduled for the 2014 building season, with a planned completion date of October 31, 201. (October 7, 2013)

CONSUMPTION ASIA: LNG prices - CNR52/15/21 Northeast Asia LNG jumps most in 10 months on demand Short-term LNG prices for Northeast Asia jumped by the most since December as buyers sought more cargoes for winter, according to World Gas Intelligence. Prices for the power-station fuel for delivery over the next four to eight weeks increased to $16.80 per million British thermal units in the period ended Oct. 14, up from $16.10 a week earlier, WGI write. Southwest Europe prices were at $11.80, up from $11.70. Asian buyers typically increase purchases of spot cargoes from December to March to meet peak heating and power demand during winter in the northern hemisphere. (October 16, 2013)

USE AS MARINE FUEL CHINA: Dual fuel engine - CNR52/15/22 Wärtsilä releases dual-fuel LNG engine in US and Chinese markets TWO CHINESE LNG CARRIER VESSELS Wärtsilä announced recently they will supply the Wärtsilä 50DF dual-fuel engines and propulsion systems for two liquefied natural gas carrier vessels under construction in two Chinese shipyards. The first is from the Ningbo Xinle Shipbuilding Group Co., Ltd together with its trading partner, Shanghai CSR Hange Shipping Engineering Co., Ltd. The other order has been issued by Cosco (Dalian) shipyards .The ships are being built for two different Chinese owners, the Zhejiang Yuanhe Ocean Shipping Company and Dalian Inteh Group Co.,Ltd. Each vessel will be powered by a Wärtsilä 50DF engine, a Controllable Pitch Propeller (CPP), a gearbox and related systems. The Wärtsilä 50DF engines selected to power these vessels will enable them to operate primarily on LNG while retaining the option to switch to conventional marine fuels if necessary. Deliveries of the Wärtsilä equipment are scheduled to begin in the summer of 2014, and the ships will be launched approximately one year later. They will operate mainly in Chinese waters, and will transport LNG between terminals and to other ships. DUAL-FUEL LNG ENGINE TO THE US MARKET

Wärtsilä announced they have now released the 20DF dual-fuel engine for sale in the US market. According to Wärtsilä the engine meets the emissions compliance criteria of the U.S. Environmental Protection Agency Tier 4 standards and is now available to American ship owners and operators. The Wärtsilä 20DF to the US market is in response to the growing demand for natural gas fueled engines. Wärtsilä noted in addition to the environmental benefits attained from burning gas, the choice of fuel can now be made on the basis of price and availability since Wärtsilä's dual-fuel (DF) technology allows engines to use either natural gas or diesel oil. Lars Anderson, Vice President, 4-stroke at Wärtsilä Ship Power, said, "The Wärtsilä 20DF will further accelerate the adoption of LNG as a marine fuel in the US. The ability to meet EPA Tier 4 emissions requirements without the need for exhaust after-treatment, while at the same time increasing the safety and operational flexibility for LNG vessels, provides significant value to our customers." The Wärtsilä 20DF is a commercial duty, medium-speed, dual-fuel engine. Engines supplied to the US market will operate primarily on natural gas, with marine diesel oil (MDO) as a pilot fuel or as an emergency backup fuel. (October 15, 2013)

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013

ENVIRONMENT AUSTRALIA: Regulation - CNR52/15/23 Pollution fears aired over Curtis Island LNG plant approval An environmental group say a fourth LNG plant on Curtis Island, off Gladstone in central Queensland, will lead to unacceptable levels of air pollution. The Queensland coordinator-general approved the Shell Australia plant last month and the federal Environment Minister is required to make a decision by the end of October.

Save the Reef says Shell Australia admits in a environmental study that the plant will increase nitrogen dioxide emissions over Gladstone in an area that is already above Federal air pollution guidelines. Save the Reef spokeswoman Dr Libby Connors says the emissions from three other LNG plants on Curtis Island will already exceed federal standards. She added the State Government has been irresponsible in approving so much development on Curtis Island. (October 8, 2013)

GTL

PROCESSING QATAR: Planned project – EPC - CNR52/15/24 Kentz awarded contract at Pearl GTL Plant by Qatar Shell GTL Limited Kentz Corporation Limited said recently that it had been awarded a contract with Qatar Shell GTL Limited for Engineering, Procurement and Construction services at its Pearl Gas-to-Liquids plant in Ras Laffan, Qatar. The contract will run for three years. Kentz will upgrade the plant's Feed Gas Processing Unity, sour water service and the hydrochloride and hypochlorite system, a continuation of Kentz previous work on Pearl GTL. Pearl GTL is a partnership between Qatar Petroleum and Shell. (October 14, 2013)

NATURAL GAS

EXPLORATION – DISCOVERY ARGENTINA: Discovery - CNR52/15/25 Petrobras Argentina hits new gas find in Neuquen province Petrobras Argentina has announced it discovered a natural gas deposit in Argentina's south-western Neuquen province. Petrobras' Argentine operation, in a statement released recently, said that the gas reservoir was located in its El Mangrullo concession. The discovery was made at a depth of 1,300 meters, in the Agrio formation. This is the first gas struck in Agrio. "Although the results of this first well are promising, it is not yet possible to

estimate the reserves associated with this discovery, which will be quantified by means of new studies and drilling," the statement read. Agrio will be the third formation to yield gas in El Mangrullo since the concession began operations in December 2006. Currently, the area produces approximately 2 million cu m/d of gas, from formations Mulichinco, at 1,600 meters depth, and Tordillo, at 2,800 meters, according to Petrobras' statement. Both reservoirs are considered low permeability. (October 16, 2013)

PRODUCTION AUSTRALIA: Project interruption - CNR52/15/26 Pluto project weighs on Woodside sales Woodside Petroleum posted a 27% drop in third-quarter sales after a temporary interruption at its Pluto LNG project. Revenue declined to $1.34 billion, from $1.83 billion a year earlier, the Perth-based company said in a statement. Production in the quarter fell 17% to 21.9 million barrels of oil equivalent from 26.5 million barrels a year earlier. The compared with the median estimate from three analysts surveyed by Bloomberg of 21.8 million barrels. 9

Cedigaz News Report - Vol. 52, n°15 October 22, 2013 Australia’s second-largest oil and gas producer earlier this year cut its full-year production forecast after an unplanned shutdown at its $15 billion Pluto LNG plant in Western Australia. A delay in restarting its Vincent oil project off the west coast also reduced output. (October 17, 2013) FRANCE: Production end - CNR52/15/27 Total stops gas production at Pyrenean Lacq Total has halted commercial production of natural gas at the Pyrenean Lacq field in south-western France as resources ran dry, according to an energy lobby group. The oil producer stopped output at the deposit recently, said Jacques Sallibartant, head of the Friends of Drillers group. Total began operating the Lacq field in 1957. Its shutdown comes as the company’s plans to explore for gas elsewhere in France are thwarted by a ban on hydraulic fracturing. Natural gas meets about 15% of France’s energy needs, with most coming from Norway, the Netherlands, Algeria, and Russia, according to the French Energy Ministry’s website. (October 18, 2013) UNITED STATES: Market forecast - CNR52/15/28 Natural gas production is getting a second wind, and coal Is in for even more pain The natural gas production boom out of the Pennsylvania portion of the Marcellus Shale has transformed the market. But some have questioned how long it can last. In a new note, Morgan Stanley says the Marcellus is about to experience a second wind, with 2014 production increasing by 2.2 billion cubic feet per day to about 70 bcf/d: "Since 2010, we’ve seen well costs fall between 7.5% and 35%, unit costs are down 13%-38%, and EURs up 25%. Given the historical progress, we would be hesitant to bet against further efficiency gains. While we don’t expect a repeat of the past three years, an incremental 10% improvement doesn’t seem unreasonable." However, they also argue demand will remain stagnant: "The Mercury and Air Toxics Standards which will cut into coal production to the benefit of natural gas, will not come into effect until Apr.

2015. LNG exports will not materialize until late 2015. Many of the new energy-intensive industrial projects are expected to come online post-2015." As a result, they're revising their price forecasts downward: "We now expect Henry Hub prices will average $3.50/mmBtu for 2014 and $4/mmBtu for 2015. Material demand growth should not materialize before 2017, limiting any large upward move in pricing in the interim. We are also reducing our long-term price forecast to $4.25/mmBtu, as continued efficiency gains and a likely recovery in NGL prices later in the decade should continue to drive the cost curve lower." And all this has negative implications for coal: "We expect weak gas basis relative to Henry Hub to spread though PA, NJ, WV and even Ohio and Downstate NY in 2014, reducing capacity factors at coal plants in these regions. We see ~8mm tons decrease in Midwest coal burn in 2014 relative to 2013. (October 16, 2013)

RESERVES BOLIVIA: Reserves estimates - CNR52/15/29 Bolivia's YPFB sees gas reserves lasting at least through 2023 Bolivia's natural gas reserves currently suffice to maintain production through 2023, with efforts going ahead to extend production beyond that, Carlos Villegas, president of state-owned YPFB, said in a government newspaper. Current reserves are 11.2 Tcf, he added. As of the end of 2012, energy consultancy Ryder Scott certified that Bolivia had 9.94 Tcf of proven, 3.71 Tcf of probable, and 6.25 Tcf as possible reserves. YPFB plans to invest around $16 billion in exploration through 2025, Villegas added, estimating that in 52 areas set aside for exploration, it will find an additional 42.7 Tcf. It will also seek certification of reserves in 2014, during which 16 exploratory wells will be dug by YPFB and other companies, including Petrobras, Villegas said. Current output is 59 million cubic meters/d, due to rise to 70 million cu m/d by the end of this year. (October 18, 2013)

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Randeep GrewalChairman & CEOGreka Drilling Limited

Chris FaulknerCEOBreitling Oil and Gas

Usman AhmedVice President & Chief Reservoir Engineer, Reservoir Themes & Solutions Baker Hughes

Suryadi MardjoekiHead, Gas and Fuel DivisionPLN

Rudi RubiandiniDeputy MinisterMinistry of Energy and Mineral Resources, Indonesia

Muhammad Husen Upstream DirectorPertamina

Nathan RaynerChief OperatingOfficerDart Energy

Salis AprilianDirectorPertamina Hulu Energi

Prashant ModiPresident & COOGreat Eastern Energy Corporaton

Panos E.CavoulacosManaging Director AsiaSchlumbergerBusiness Consulting

Tim MooreDirector, Cipher Coal Consulting Ltd & Senior Advisor G&GEphindo

W.P. (Bill) GwozdSenior Vice PresidentGas Services Ziff Energy

Jamie TaylorAnalyst, Upstream Research South East AsiaWood Mackenzie

Raj RattanavichLNG and Natural Gas ConsultantPoten & Partners, Singapore

Andrey TkachenkoManager, Business DevelopmentNovomet Group of Companies

Previous Speaker Line-up

Previous Endorsors and Sponsors

Edy HermantoroDirector, Upstream Business DevelopmentDirectorate General of Oil and Gas, Indonesia

David DavidsonPrincipal AssociateOilGas.pro & Associates

Chris NewtonDirectorRisco Energy

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013 RUSSIA: Reserves estimates - CNR52/15/30 Gazprom seeks 1Bln Euros from German partners Gazprom is seeking more than 1 billion euros from its German partners EON and Wintershall as payment for an increase in estimated natural gas reserves in a Siberian field that the companies are jointly developing under an asset swap deal, businessmen familiar with the situation said. Under the agreement, upward revisions of gas reserve estimates at the Yuzhno-Russkoye field would require EON and Wintershall, to increase their payments to Gazprom, Bloomberg reported. Gazprom's earlier official estimates placed natural gas reserves at the Yuzhno-Russkoye field, owned by the Gazprom-controlled Sevneftegazprom, at 833.5 billion cubic meters, Kommersant reported. Stanislav Tsygankov, head

of Severneftegazprom, said the field had reserves of more than a trillion cubic meters, but it remains unclear whether the number represented an official estimate. Gazprom spokesman Sergei Kupriyanov refused to disclose by how much Gazprom's estimates had been revised, but IFD Kapital analyst Vitaly Kryukov said that "judging by the sum that Gazprom is demanding, the increase in reserves could be about 200 billion cubic meters." The German companies were to pay by Oct. 1 for any increase in reserves, while Gazprom would have had to compensate for any decrease. The sides are in talks to sort out a dispute and misunderstanding. Gazprom holds 50% in the Yuzhno-Russkoye field in the Yamal-Nenets autonomous district, while Wintershall and EON own 25% stakes. (October 11, 2013)

TRANSPORT - DISTRIBUTION TURKEY: Investment opportunities - CNR52/15/31 Turkish producers ready to supply TANAP project with pipes Turkish companies expressed their willingness to supply the TANAP project (Trans-Anatolian gas pipeline) with pipes, the head of the Turkish Steel Pipe Manufacturers Association (CEBID) Ahmet Erciyes said. According to him, the local companies can make some $2.5-3 billion of profit from supplying the TANAP project with steel pipes. Earlier, the Turkish Minister of Energy and Natural Resources Taner Yildiz said that in total, 1.8 million tons of steel pipes will be laid for the construction of the gas pipeline through Turkey's territory. The TANAP project envisages gas transportation from the Shah Deniz field to Europe via Turkey. The initial capacity is expected to reach 16 billion cubic meters per year. Around six billion cubic meters will be delivered to Turkey and the rest to Europe. (October 12, 2013)

SUPPLIES - IMPORTS – EXPORTS CHINA: Price revision - CNR52/15/32 China to raise prices for gas-fired power generation China will raise the on-grid prices paid to power generators that use natural gas to encourage the use of cleaner forms of energy and address possible gas supply shortages, the country's top planning agency said.

The National Development and Reform Commission said recent natural gas price hikes had raised generation costs and power prices needed to be adjusted accordingly. Specific price changes will be determined "soon" on a provincial level, it said. The announcement also confirmed that on-grid coal-fired power prices have been cut in order to reflect falling coal prices. (October 14, 2013)

CHINA-RUSSIA: Cooperation - CNR52/15/33 China, Russia to expand energy cooperation China and Russia pledged to expand energy cooperation in projects of oil and gas supply, nuclear energy and renewable energy. Chinese Vice Premier Zhang Gaoli and Russian Deputy Prime Minister Arkady Dvorkovich co-chaired the tenth meeting of China-Russia energy cooperation committee in Beijing, which agreed to advance cooperation in a number of energy sectors. Noting that energy cooperation is a key area, Zhang said he hoped to advance discussion on existing projects and find new sectors for cooperation through the committee's effort. "China is willing to expand all-around energy cooperation with Russia. We hope the two sides can work together to ensure the increase of Russian oil supplies to China, expand cooperation in upstream oil projects and set a refinery joint venture in Tianjin as a pilot project," Zhang said. He added China also hopes to work with Russia on natural gas and nuclear energy projects, increase coal and electricity import from Russia, and expand cooperation in fields of renewable energy and energy efficiency. (October 16, 2013) 11

Cedigaz News Report - Vol. 52, n°15 October 22, 2013 EU: Reduction of subsidies - CNR52/15/34 Clean-energy investments ebb as Europe cuts subsidies Clean-energy investment fell 14% in the third quarter from the prior three months as Europe curbed subsidies and cheaper U.S. natural gas lured investment. The $US45.9 billion spent makes it “almost certain” that annual investment in renewables and energy-smart technologies will fall for the second consecutive year from $US281 billion in 2012, Bloomberg New Energy Finance said in a statement. Investment in the quarter was 20% lower than the same period last year as spending in China, the U.S. and Europe fell. The U.S. saw the largest decline, sliding 41% to $US5.5 billion, according to the London-based research company. Europe's clean-energy industry is retrenching after subsidies were reduced in nations from Germany to Spain, which helped propel record growth in previous years. Cheap gas in the U.S. driven by a shale-drilling boom and a reduction in China's spending on wind power wind power also contributed to the overall decline, the London-based consultant said. While the $US45.9 billion is still substantial and greater than that invested in 2004, the “loss of momentum since 2011 is worrying,” he said. A “crumb of comfort” is that installation of global solar photovoltaic capacity is set to reach a record this year, at about 36.7 gigawatts, BNEF said. A decline in the cost of the technology will reduce the overall amount invested in solar. Investment in clean-energy companies through public market fund raising fell to $US2 billion from $US3.8 billion. That still beat $US1.6 billion in the third quarter of 2012, propelled by July's $US461.5 million initial public offering by The Renewables Infrastructure Group Ltd., according to BNEF. Clean energy investment in China fell to $US13 billion from $US13.8 billion in the second quarter. Japan, India, Germany and France all declined while Brazil rose to $US1.1 billion from $US950 million and the U.K. increased to $US2.6 billion from from $US1.6 billion. (October 15, 2013) EU: Market trends - CNR52/15/35 Market 'chaos' threatens EU security of energy supply The security of Europe's energy supplies is under threat from electricity and natural gas market "chaos" as a combination of renewable subsidies and systemic low carbon dioxide prices forces utilities to close previously profitable gas-fired power plants, according to consultancy Capgemini's latest annual review. As EU-level policy has placed operationally cheap renewables in an "attractive" position in the power generation merit order, gas-fired plant is being increasingly displaced, Capgemini said. An EU target of reaching 20% of renewable energy sources in the final energy consumption mix by 2020 has seen a surge in subsidized renewable energy projects and a consequent "dramatic decrease" in the utilization rate of gas-fired plants essential for meeting peak load demand, the consultancy said. Average gas-fired plant utilization rates dropped to 11% in Spain for the first half of 2013 and to less than 21% in Germany in 2012, a "worrying" picture given International Energy Agency findings that gas plants need a utilization rate of 57% to be profitable.

About 130 GW of gas plant across Europe -- equivalent to around 60% of total installed gas-fired generation in the region -- is currently not recovering its fixed costs and at risk of closure by 2016, Capgemini said, citing IHS estimates. "The present situation poses a clear threat to Europe's security of supply," said Capgemini energy and utilities adviser Colette Lewiner. "Gas plants -- capable of dealing with peak loads -- are closing quickly. Buffers, such as gas stored for the winter in underground reservoirs, are significantly lower than in previous years." "In the short term, these factors mean a very cold winter could lead to serious supply and grid balancing problems," Lewiner said. The report highlights the growing costs of renewables subsidies and says that future investment in low carbon capacity is being hampered by weak CO2 prices against the backdrop of falling power and gas consumption due to the economic crisis. Renewables subsidies are "becoming a burden for heavily indebted countries" while stretched consumer budgets are feeling the pinch of higher electricity prices, Capgemini said. (October 11, 2013)

IRAN: Planned project – Agreement - CNR52/15/36 Iran’s Ilam Refinery to supply sas to Iraq A senior Iranian energy official said that Ilam Gas Refinery in western Iran will be among the suppliers of natural gas to neighbouring Iraq, noting that the facility produces two billion cubic meters (bcm) of gas annually. Earlier this year, former Iranian Oil Minister Rostam Qassemi announced that the country will gain more than $5bln from gas exports to Iraq.

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013 Iran and Iraq have signed an agreement for the construction of a pipeline that will carry natural gas from Iran to feed power plants in the southern Iraqi province of Basra. The 56-inch pipeline will start from Assaluyeh, near the massive offshore South Pars Gas Field in Southern Iran, and will continue into Iraq to feed three Iraqi power plants running on gas. The pipeline will be designed in such a way that it will be able to deliver gas to other countries like Jordan and Lebanon in the future. (October 15, 2013) UKRAINE: Supply contract - CNR52/15/37 Ukraine seeks compromise with Russia on gas deal Ukraine hopes to overcome disagreements and end disputes over a 10-year gas supply contract signed with Russia in 2009, Ukrainian Prime Minister Mykola Azarov said. Azarov claimed that the price pegged in the agreement between Ukraine's Naftogaz and Gazprom is "absurd" and the current contract benefits neither Kiev nor Moscow. He explained that Ukraine will be forced to abandon the costly imports if there are no changes in the deal and Russia will lose its largest buyer of fuel. Ukraine is already purchasing gas from Europe

and making efforts to increase its own production to ease dependence on Russian gas, Azarov said. Under the deal, which was approved by the previous Ukrainian government, Kiev agreed to buy 52 billion cubic meters of gas per year. The price is expected to reach 410 U.S. dollars per 1,000 cubic meters in the fourth quarter of 2013. Kiev and Moscow have been negotiating on gas pricing for about three years. In exchange for lower gas costs, Moscow is seeking to gain partial control of Ukraine's energy infrastructure or force Kiev to join the Customs Union. Ukraine so far has rejected the conditions. (October 18, 2013)

UNITED STATES: Natural gas demand - CNR52/15/38 U.S. natural gas demand steady for winter A mild winter is expected to keep U.S. natural gas demand at a relatively stable level, the Federal Energy Regulatory Commission said in a report for winter. FERC said U.S. natural gas production is on the rise because of growth in North-eastern markets and from shale production in the Eagle Ford reserve area in Texas. The commission said gas production from the eastern Marcellus shale formation in August was near 12 billion cubic feet per day, up from an average 7.4 billion cubic feet per day for 2012. Production from Eagle Ford was near 5 billion cubic feet per day in August, up from the average 3.3 billion cubic feet per day for last year. FERC in its winter market assessment said the National Oceanic and Atmospheric Administration expects a "normal" winter for most of the country. FERC said the winter assessment means consumer natural gas demand should not increase much for the season. (October 17, 2013) US – ASIA: Gas price - CNR52/15/39 Low Henry hub prices will not persist, say US firms Low Henry Hub gas prices will not persist, meaning that volumes from US export projects sent to northeast Asia may not significantly undercut oil-linked LNG from other countries in the long term, according to senior figures at US-based oil and gas firms. Northeast Asian importers have long sought Henry Hub-linked prices in an effort to move away from what they see as punitively expensive oil-linked contracts. But US exports may not be the panacea that buyers are seeking, especially from later, greenfield projects, ConocoPhillips executive vice-president for business development Don Wallette told the World Energy Congress in South Korea today. "There is a misperception out there that Henry Hub sells for $3.50/mn Btu, so we can bring LNG into Asia for $11-12/mn Btu," he said. "It may be true that some of these converted regasification facilities, because they are brownfield sites, will be competitive on a cost basis. But the costs are going to increase after that. The greenfield sites will be more expensive and over time, the arbitrage is always going to be consumed by commerce as long as there is free trade, so you can expect a convergence of hub prices.” ExxonMobil's global vice-president for LNG Richard Guerrant agreed that the current perception of Henry Hub gas being the cheapest in the world may change as the US market becomes more balanced. “Today Henry Hub prices are in one of the low price cycles and below replacement cost,” he said. “If history is any indication, this cannot be maintained over the long term since the gas produced from liquids-rich plays is not enough to meet long term gas demand in North America.” Given shipping distances, ExxonMobil sees the delivered price of LNG from the US as about the same as that from other projects that will sell into the US. Most oil-linked term LNG lands in northeast Asia in the $14-15/mn Btu price range, depending on oil prices. (October 14, 2013)

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013

STORAGE CHINA: Planned project – Start up - CNR52/15/40 China CNPC stores 1 Bcm gas in Xinjiang to aid winter demand State-owned China National Petroleum Corp said recently that the Hutubi natural gas storage facility in western Xinjiang has about 1 billion cubic meters of gas inventory, which will help alleviate peak winter demand in the area. The storage plant primarily serves CNPC's First West-East and Second West-East gas pipelines that run from Xinjiang to the eastern coast of China. Their total transmission capacity is 42 Bcm/year. The Hutubi facility was commissioned in July and is China's largest natural gas storage project. CNPC said that with the onset of winter, the storage facility will play an important role in ensuring peak demand is met. It has said previously that Xinjiang frequently suffered gas shortages in winter. The Hutubi gas storage plant is the first of six facilities being built to come online. It has the capacity to store 10.7 Bcm of gas, with daily gas injection capability of 11.23 million cu m. It was converted from the existing Hutubi gas field in the Junggar Basin and will store gas in an underground reservoir. (October 18, 2013)

CONSUMPTION UNITED STATES: Energy efficiency - CNR52/15/41 Low natural gas rice to hamper U.S. energy efficiency Low natural gas prices will hamper the U.S.’s incentive to continue spending on energy efficiency projects, according to the International Energy Agency. Cheaper prices “make it more difficult to sustain and increase ratepayer spending levels as consumers see the energy efficiency surcharge on bills growing even as commodity costs are going down,” the Paris-based advisor to 28 developed nations said recently in a report. “This combination could create opposition by some utilities and regulators.” While the amount of energy used in the U.S. per $1,000 of economic output fell 4.8 percent last

year, it was still 15 percent above the group’s average, according to the IEA. Programs will combine to more than triple energy savings to 2020 from 2011 levels, making the U.S. one of the most efficient of IEA members, it said. Next-month gas on the New York Mercantile Exchange fell to an average of $2.83 per million British thermal units last year, down from $4.03 in 2011. The mean cost in the U.K., Europe’s biggest market, was the equivalent of $9.48 in 2012 on the ICE Futures Europe exchange. The U.S. needed 0.158 metric tons of oil equivalent energy per $1,000 of economic output last year, down from 0.1657 tons in 2011, according to the IEA. That compares with 2011 usage of 0.117 tons in the EU and 0.266 tons in China. (October 16, 2013)

USE AS AUTOMOTIVE FUEL UNITED STATES: Conversion to NG use - CNR52/15/42 GM to sell car next year powered by gasoline or natural gas General Motors Co will begin selling a mid-sized sedan next summer that can be powered by either gasoline or compressed natural gas, the U.S. automaker's chief executive Dan Akerson said recently. He added that the 2015 Chevrolet Impala, GM's first car powered by natural gas, will feature a powertrain that switches from compressed natural gas to gasoline seamlessly and has a total driving range of up to 500 miles. The car, which will have one fuel tank for compressed natural gas and a second one for gasoline, will be sold to both retail and fleet customers. The numbers of CNG vehicles remain small. According to the industry group Natural Gas Vehicles for America, about 130,000 to 135,000 natural gas vehicles operate in the United States and more than 16 million globally, most of them commercial and fleet vehicles such as buses and garbage trucks. The number of natural gas filling stations totals about 1,350 in the United States, about half of which are open to the public. That compares with about 168,000 retail gasoline stations, Akerson said. Citing the lack of CNG gas stations, Akerson said the volumes for the bi-fuel Impala will initially be small with most sales to commercial and government fleets. He said selling 750 to 1,000 of the cars in the first model year would be "a home run." He also repeated his call for the Obama administration and Congress to create a consumer-driven national energy policy. In March, he said President Barack Obama should appoint a commission to develop a 30-year U.S. energy policy framework that includes energy producers, labor groups and energy consumers such as GM. (October 16, 2013)

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Cedigaz News Report - Vol. 52, n°15 October 22, 2013

COMPANIES

ROMANIA: Stake modification - CNR52/15/43 Romania to sell 15% of Romgaz this year Romania plans to sell 15% of Romgaz SA, its largest natural-gas producer, in an initial public offering this year as part of the eastern European country’s agreement with the International Monetary Fund. Romgaz shares will trade on the Bucharest Stock Exchange as well as in London as global depositary receipts, Romgaz and the government said in a joint statement. Romania will keep at least 70% of Romgaz and property-restitution fund Fondul Proprietatea SA will have a 15% stake in the company. The total value of the offering may reach as much as 600 million euros ($814 million), Gabriel Dumitrascu, head of the Energy Department’s asset-sale program, said recently. Romania’s government must complete the sale by the end of November to meet the terms of its newly-signed 2 billion-euro accord with the IMF to overhaul state companies. The nation sold to the public a minority stake in nuclear power generator Nuclearelectrica SA last month as part of the deal. (October 11, 2013)

CEDIGAZ NEWS REPORT is an internal publication of CEDIGAZ, edited by Constancio Silva with collaboration of Laïla Losson. 11 eett 44,, aavveennuuee ddee BBooiiss PPrrééaauu,, 9922885522 RRuueeiill--MMaallmmaaiissoonn CCeeddeexx,, FFrraannccee TTeell.. ++3333 11 4477 5522 6677 2200 -- FFaaxx ++3333 11 4477 5522 7700 8822 WWeebbssiittee :: hhttttpp::////wwwwww..cceeddiiggaazz..oorrgg CCoonnttaacctt :: iinnffoo@@cceeddiiggaazz..oorrgg

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