Saturday, 22 March 2014
South Africa Fracking in The Karoo
South Africa opportunity for Fracking
The Karoo Basin
The largest shale reserves possible even bigger than USA.
The Karoo Basin
The largest shale reserves possible even bigger than USA.
Wednesday, 19 March 2014
R19bn SA oil hub in the pipeline
Two new single-buoy moorings (SBMs), similar in style to
Sapref s SBM off the south Durban coast (pictured), are being
planned as part of a R19 billion oil and petro-chemical hub
project near Richards Bay by Phangela Storage Farm (Pty) Ltd.
The SBMs and hub would service the international and regional market.
Durban - A R19 billion project involving the development of two
offshore single buoy moorings (SBM), to be used by giant oil supertankers,
is on the cards for the Zululand coast, south of Richards Bay.
Sapref s SBM off the south Durban coast (pictured), are being
planned as part of a R19 billion oil and petro-chemical hub
project near Richards Bay by Phangela Storage Farm (Pty) Ltd.
The SBMs and hub would service the international and regional market.
Durban - A R19 billion project involving the development of two
offshore single buoy moorings (SBM), to be used by giant oil supertankers,
is on the cards for the Zululand coast, south of Richards Bay.
The twin reversible offshore mooring project is being developed
and driven by Phangela Storage Farm and will be linked to a tank farm near
Port Durnford station, about 26km from the port of Richards Bay.
There is also set to be an offshore pipeline connecting with Durban and Richards Bay.
and driven by Phangela Storage Farm and will be linked to a tank farm near
Port Durnford station, about 26km from the port of Richards Bay.
There is also set to be an offshore pipeline connecting with Durban and Richards Bay.
The major project involves a 2 million cubic-metre liquid bulk storage
and through-put hub. It will include a comprehensive storage tank farm
and strategic reserve storage on behalf of long-term international and local clients.
and through-put hub. It will include a comprehensive storage tank farm
and strategic reserve storage on behalf of long-term international and local clients.
The two new SBMs, similar in style to the single-buoy mooring off Isipingo south of
Durban and providing deep water offshore berthing facilities,
will be served by large crude carriers and ultra-large crude carriers,
known in the industry as VLCC and ULCCs.
Durban and providing deep water offshore berthing facilities,
will be served by large crude carriers and ultra-large crude carriers,
known in the industry as VLCC and ULCCs.
The activities include the import and export of crude oil
and handling of petroleum-related products, bulk liquid petrochemicals,
bulk liquid fertilisers, LPG and bitumen.
and handling of petroleum-related products, bulk liquid petrochemicals,
bulk liquid fertilisers, LPG and bitumen.
Willie Vogel, executive development director of Phangela,
said a multi-product reversible offshore pipeline would connect the
Phangela storage tank farm with the three major oil refineries in
Durban and various industrialists operating in Durban and Richards Bay.
said a multi-product reversible offshore pipeline would connect the
Phangela storage tank farm with the three major oil refineries in
Durban and various industrialists operating in Durban and Richards Bay.
He said that after three years of feasibility studies the ideal location
had been found at Port Durnford, south-east of Richards Bay.
had been found at Port Durnford, south-east of Richards Bay.
Vogel said the site for the tank farm was 3.6km away from the coast
near the Port Durnford railway station. This gives access to road, rail
and power supplies and is well outside the area affecting the
control of the port of Richards Bay.
near the Port Durnford railway station. This gives access to road, rail
and power supplies and is well outside the area affecting the
control of the port of Richards Bay.
“Phangela will meet a significant part of the shortage of (oil) storage
and will fulfil a hub function in the region for the storage and throughput
of liquid commodities, refined products, biofuels and ethanol, LPG and chemicals.”
and will fulfil a hub function in the region for the storage and throughput
of liquid commodities, refined products, biofuels and ethanol, LPG and chemicals.”
Vogel said the project would see crude oil being pumped ashore
from the giant tankers moored to either of the SBMs
and stored at the tank farm until required, either locally or internationally.
When required, the crude would be pumped back into another tanker
and shipped to wherever it is required internationally.
from the giant tankers moored to either of the SBMs
and stored at the tank farm until required, either locally or internationally.
When required, the crude would be pumped back into another tanker
and shipped to wherever it is required internationally.
Crude oil required by refineries will be pumped ashore.
Exports of refined fuels could be exported from Durban in reverse manner, he said.
Exports of refined fuels could be exported from Durban in reverse manner, he said.
A reversible pipeline between the tank farm and Durban refineries makes
up part of the planned development and will be mainly offshore,
thus avoiding any routing through built-up areas, said Vogel.
up part of the planned development and will be mainly offshore,
thus avoiding any routing through built-up areas, said Vogel.
“We will be storing crude for international customers so you’ll have
crude coming in through the pipeline to be stored,
then going out again to be shipped overseas.
We’ll also be available as a storage facility for Durban and other refineries.
crude coming in through the pipeline to be stored,
then going out again to be shipped overseas.
We’ll also be available as a storage facility for Durban and other refineries.
“In addition, we will be handling the 45 or so various chemical products associated
with a refinery business, so having two reversible SBMs becomes an advantage all round.”
with a refinery business, so having two reversible SBMs becomes an advantage all round.”
Vogel said the facility would have state-of-the-art through-put facilities via ship,
rail and road, as well as via the pipeline infrastructure.
rail and road, as well as via the pipeline infrastructure.
American Tank & Vessel, with 30 years’ experience in tank farm development,
has been awarded the contract for the construction of the tank farm
and the on-site facilities. Fendercare Marine has been appointed
as the executing operator for the marine facilities, pilotage,
mooring and diving. The selection of the terminal operator is in progress.
has been awarded the contract for the construction of the tank farm
and the on-site facilities. Fendercare Marine has been appointed
as the executing operator for the marine facilities, pilotage,
mooring and diving. The selection of the terminal operator is in progress.
Petrol Storage Broker, an independent brokerage that specialises in finding worldwide terminal storage for suppliers and producers of liquid bulk petrochemicals and biofuels with customers worldwide, has been appointed executive project manager and has begun the sales and marketing for both storage and throughput customers.
Vogel said that subject to regulatory consent, construction of the tank farm was planned
for the end of 2014. This included doing environmental impact studies to secure environmental approvals. He said the total estimated investment was $1.8 billion (R19.3bn).
for the end of 2014. This included doing environmental impact studies to secure environmental approvals. He said the total estimated investment was $1.8 billion (R19.3bn).
Durban Chamber chief executive Andrew Layman said the chamber’s forums
had not discussed the project, but on the face of it, he welcomed the venture.
had not discussed the project, but on the face of it, he welcomed the venture.
“Certainly its construction will represent many jobs and a major investment in infrastructure.
I will be interested to know what impact it might have on what is planned
for Durban in relation to the dig-out port,” he added.
I will be interested to know what impact it might have on what is planned
for Durban in relation to the dig-out port,” he added.
“Perhaps it will relieve Transnet of some of its implementation of new SBM facilities,
and relocate the hub of oil traffic away to a less populated and less congested part of the coast.
These might be positive circumstances.
and relocate the hub of oil traffic away to a less populated and less congested part of the coast.
These might be positive circumstances.
“Environmental issues are inevitable, and one hopes that good sense prevails – on all sides.
There is no doubt that the South African economy, and that of the region,
needs oil and this has to reach us across the sea.” - The Mercury
There is no doubt that the South African economy, and that of the region,
needs oil and this has to reach us across the sea.” - The Mercury
Tuesday, 18 March 2014
UAE set to break ground on third nuclear plant in 2014
The Emirates Nuclear Energy Corporation, the Gulf state's nuclear power developer, has revealed that it will break ground on a third plant later this year.
Dr Kenneth Petrunik, chief programme officer of ENEC, announced the progress being made in the UAE's nuclear energy sector during a panel discussion at the World Future Energy Summit 2014.
“ENEC has spent the last four years working to develop a safe, reliable and efficient nuclear energy programme for the UAE,” he said.
“Today, we have our first two plants already under construction. We are also on track to break ground on our third plant later this year.”
By 2020, the UAE will have four plants in commercial operations, producing 5600MW of clean electricity which will meet up to a quarter of the country’s energy needs.
Petrunik said no other energy source can provide the same volumes of clean electricity that nuclear energy can.
“There are many more benefits to a world-class nuclear energy programme that the UAE will also gain. These include the economic growth and development of a new, high-tech industry, job creation for thousands of employees and enhanced training and development programs through partnerships with world-leading academic institutions.”
Latest research figures indicate that more than 80 percent of the UAE population believes nuclear energy is important for the nation.
As part of its community awareness initiative, ENEC has been hosting a series of ongoing public forums all over the country to inform UAE residents about the nation’s nuclear energy programme, the progress of the plants under construction and how nuclear energy fits into the country’s energy portfolio.
The UAE's first nuclear plant is expected to commence operations in 2017, pending further regulatory approvals. The second unit will come online in 2018.
With four plants online by 2020, nuclear energy will save the UAE up to 12 million tonnes of carbon dioxide emissions each year.
Korea Electric Power Corp won a contract in 2009 to complete four nuclear reactors in the UAE.
Thursday, 20 February 2014
Qatargas Ships Carry Out First LNG Ship-To-Ship Transfer
February 17, 2014
Qatargas chartered LNG ships carry out the first Ship-To-Ship (STS) transfer operation of LNG between two Q-Flex type ships following an incident involving one of the ships while transiting the Singapore straits. Whilst there were no reported injuries to personnel or impact on the environment, the incident did result in minor damage to the vessel.
Reinforcing Qatargas’ paramount commitment to the safety of people and the protection of the environment; rigorous planning, including formal Risk Assessment, were completed and approved by all concerned parties prior to the start of the STS operations.
The transfer of 211,000 M3 was conducted at anchor in open waters in Singapore utilizing specialized equipment and a contractor with LNG STS expertise. The operation commenced on 22nd January and completed on 28th January 2014.
In line with our strong commitment to total customer satisfaction, various scenarios options were considered and the STS operation was identified by Qatargas as a key element to ensuring that Qatargas commitments and obligations to their valued customers were met. This was only achievable through the collective and collaborative effort of all parties involved in the operation, and with the cooperation and support of Qatargas’ customers.
The completion of this STS operation reinforces Qatargas’ position as the world’s largest producer and reliable supplier of LNG.
India-Qatar LNG deal at $10-12 poses challenge to Pakistan
Pakistan to respond on Tuesday at Doha meeting
1609 495 212 7
ISLAMABAD: India has set a benchmark of LNG price from Qatar in the region at $10-12 per MMBTU posing an enormous challenge to Pakistani authorities.
According to Dr Miftah Ismail, Chairman Board of Investment who is also chairman of board of directors of Sui Southern, as per existing international price, the LNG price from Qatar will hover at $17 per MMBTU for Pakistan. After adding other charges it will hover at $18.
Dr Miftah said if the LNG is provided to power houses the sales tax will be re-adjusted. So the cost of LNG price because of GST will not increase.
When his attention was drawn towards the fact that India is importing LNG from Qatar at $10-12 per MMBTU as mentioned in the letter of energy expert Arshad H Abbasi associated with SDPI written to Prime Minister Nawaz Sharif, Dr Miftah said: “I assure that this government will get a better deal with Qatar and we will also look into the Qatar-India deal prior to advancing on LNG deal.”
However, independent sources said that the government has made up its mind to make the delivered cost of imported LNG from Qatar to end consumers at $20 MMBTU which will surely be uneconomical.
Top official of the Ministry of Petroleum and Natural Resources Naeem Malik when contacted said that no price for LNG from Qatar has been so far negotiated.So far, Pakistan has received the draft agreements from Qatar which are being examined by Pakistan’s relevant authorities. Another official said that the LNG price will be settled not at ministry level, but also at top leadership level of both the countries.
Qatar has sought a LNG supply contract for a period of 15 years extendable for to five years with no price reopener. The country wants a penalty of $200 million for termination of the agreement at any stage, reveals a copy of the HoA (Heads of Agreements) made available with The News.
Doha also wants the price to be fixed as a percentage of Brent, it shows. Agreeing to a fixed Brent rate for 15 years will be like mortgaging Pakistan’s future generations.The officials said that the government was committing a sovereign guarantee to cover the obligations under the agreement. This is against the LNG policy, they added.
Pakistan is likely to give its response to Qatar to the draft agreement on February 18 and will ask Doha to do away with the condition of no price opener in LNG supply agreement for 15 years that Doha has suggested.
The Joint Ministerial conference between Pakistan and Qatar will be held in Doha. Managing director of PSO and top officials of PPL (Pakistan Petroleum Limited) and senior officials of the ministry would accompany Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi.
Meanwhile, the letter written by Arshad H Abbasi to prime minister, eminent energy experts associated with SDPI mentions that India has already set the benchmark in pricing in this region, having negotiated a landing price of LNG of 10.5/MMBTU from the USA.
Similarly, looking at India’s LNG price from Qatar between the time period of October 2012 to July 2013, it has ranged between $10-12/MMBTU, and the price that did not rise to more than $11/MMBTU in 2013.
To avoid litigation in the future, it may be wiser if Pakistan renegotiates the prices in advance, especially because base price and price index, once inked in the contract are subject to little or no change. Moreover, there must be a price review clause in the agreement after every year.
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