·         U.S. oil and gas prices may tumble on Trump’s ‘Energy Revolution’

·         Iran, Oman reaffirm gas export project, change pipeline route to avoid UAE

  • Egypt explores for natural gas with eye on exports by 2019
  • Royal Dutch Shell sold share in oil and gas assets in the British North Sea
  • WTI crude oil and natural gas forecast
  • Saudi Energy Minister praises Trump’s pro-fossil-fuel policies
  • Oman: Natural gas consumption advances 2.6% on industrial, oilfield demand
  • US natural gas capacity to rise by 8% by 2018
  • J-Power aims to burn more natural gas and wood as Abe fights climate change
  • Gazporm requests Russian government to partially liberalize gas price in country

·         Shell posts earnings of $3.5 billion in 2016; an 8% slide from $3.8 billion in 2015

·         Japanese government planning to build 45 new coal fired power stations to diversify supply

·         Trump’s Mexico feud may send natural gas to $2 if exports end


U.S. oil and gas prices may tumble on Trump’s ‘Energy Revolution’

President Trump’s vow to “unleash an energy revolution” by reversing regulations may send oil and natural gas prices tumbling in 2018, according to Bank of America Merrill Lynch.Domestic oil and gas prices will likely suffer as the U.S. continues to increase its output, analysts including Francisco Blanch, head of commodities research, wrote in a note dated Feb. 3. Though U.S. oil and natural gas producers could see a surge in investment under Donald Trump’s numerous proposals from a likely reform of the corporate tax code to a possible border tax, prices may suffer from the resulting increase in output.

“The industry has high hopes for less red tape, a more pragmatic approach to regulation and lower costs of having to comply with climate change rules,” the analysts said. The impact of Trump’s policies will take months if not years to play out.The implementation of such a tax would be a net positive for WTI versus Brent, but a net negative for refined petroleum product prices, the analysts wrote. Mexico exports 600,000 barrels a day of crude oil to the U.S. and buys large amounts of gasoline and diesel.The jump in natural gas production combined with relaxing the Clean Power Plan will likely send prices lower through 2018. If Mexico reciprocates with its own border tax and sparks a trade war, natural gas exports and prices would be severely hurt at the Henry Hub, as the U.S. currently sends five percent of its annual gas to Mexico via pipelines. American companies are sending record amounts of gas south of the border, with exports touching 4 billion cubic feet per day.However, many of Trump’s policies are unknown at this point and yet to be formed in detail, so it is perhaps too early to draw strong conclusions on how they may impact investment decisions and energy prices, the analysts said in the note.

Source: LNG Global


Iran, Oman reaffirm gas export project, change pipeline route to avoid UAE

Oman and Iran have agreed to change the route of a planned undersea gas export pipeline, to avoid waters controlled by the United Arab Emirates, Iran’s oil minister said on Tuesday after meeting his Omani counterpart in Tehran.The planned pipeline would connect Iran’s vast gas reserves with Omani consumers as well as with LNG plants in Oman that could re-export the gas.In 2013 the two countries signed an agreement to supply gas to Oman through the new pipeline in a deal valued at $60 billion over 25 years.After international sanctions on Tehran were lifted in January 2016 the two countries renewed efforts to implement the project but it has also been delayed by disagreements over price and U.S. pressure on Muscat to find other suppliers.”The two countries agreed that the gas exports pipeline avoids waters controlled by the United Arab Emirates and passes through deep waters,” BijanNamdarZanganeh was quoted as saying on Tuesday ( 31st Jan) by Mehr news agency.Zanganeh said during his meeting with Oman’s Minister of Oil and Gas Mohammed bin Hamad al-Rumhy in Tehran that a new agreement was signed that extends the previous deal.”The change of the pipeline route through deep waters has no economic impact on the gas exports project,” he added.The representatives from Shell, Total and Korea Gas Corp (KOGAS) also attended the meeting in Tehran, Zanganeh said, and offered their proposals.Iran’s oil minister said the whole project would need $1.2 billion of investment.

Source: LNG Global


Egypt explores for natural gas with eye on exports by 2019

Egypt may announce new discoveries of natural gas by the second half of this year, Oil Minister Tarek El Molla said, bringing it closer to its goal of self-sufficiency by 2019.Egypt will start exporting natural gas in 2019, Mohamed El Masry, chairman of Egyptian Natural Gas Holding Co., told reporters in Cairo. It will import 43 to 45 cargoes of liquefied natural gas between March and December this year from Oman, Russia’s Rosneft PJSC, and France’s Engie SA, to be paid over six months, he said.The Arab world’s most populous country relies on imports to meet its energy needs. Costs have risen sharply since November, when the government allowed the pound to float and raised interest rates in a bid to restore confidence in its economy.Rosneft agreed in December to buy as much as 35 percent of the Shorouk concession, joining EniSpA and BP Plc in the Zohr offshore gas field, the largest discovery in the Mediterranean Sea. There is potential for new discoveries near the Zohr field in the second half of 2017, El Molla said.Egypt’s debts to oil companies reached $3.5 billion by December and the government is committed to paying them back, El Molla said.


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