Global gas demand growth down - IN CYPRUS / CYPRUS WEEKLY

18/06/2016
By Charles Ellinas

The International Energy Agency (IEA) released last week its annual Medium-Term Gas Market Report 2016 and it makes grim reading for gas exporters.

This was followed-up by BP’s 2016 Statistical Review of World Energy. When presenting it, BP’s Chief Economist said, “This is truly an age of plenty.” He went on further to say, “On the energy demand side what we are seeing is a gradual deceleration in the growth of global energy consumption”, contributing to an age of plenty.

These developments of course have a global impact on markets and prices, but also seriously affect East Med gas developments. This is the subject of this article.

Investor's Guide to Greece & Eastern Mediterranean 2Q-2016 - ITE OIL & GAS

Greece is primed for a powerhouse position in the European energy trade. Exploration licenses have been issued to Greek companies, including Hellenic Petroleum, which is teaming up with international partners to explore onshore and offshore blocks in Western Greece.

More offshore licenses are up for grabs, with the Greek government and the private sector inspired by major finds elsewhere in the Eastern Mediterranean. The upstream push has already yielded results for Energean Oil & Gas, which has doubled domestic oil production at the Prinos field in the Aegean Sea. The Greek operator is targeting 10,000 barrels per day in crude production within the next two years. Greece remains an aggregate hydrocarbons importer and is a prominent player in European refining. Exports of petroleum products are set to rise in 2016 as domestic demand weakens in light of power sector reforms and a struggling Greek economy. Bailouts and conditional loans are prompting privatisation of state entities and the energy sector is not immune.

International oil and gas companies are seeking out opportunities, stimulated by upside potential in terms of economic growth and Greece’s rise to prominence in the European natural gas trade. Greece is set to become the nexus of trans-regional gas pipelines, with multiple projects on the table. Ground breaking of the Trans Adriatic Pipeline (TAP) was scheduled to commence in May with deliveries as soon as 2020. There is also significant interest in Liquefied Natural Gas (LNG), and international firms are fronting the capex to get infrastructure expansion underway. The future of Greek Energy is bright to say the least.

Egypt Sends Rare LNG Cargo in Midst of Newfound Buying Binge - BLOOMBERG

Anna Shiryaevskaya, Tsuyoshi Inajima, Dan Murtaugh
June 17, 2016

One of the world’s newest liquefied natural gas importers is again shipping out the fuel.
Egypt, which last year began importing LNG to meet domestic demand while halting shipments from two multibillion-dollar facilities that produce the fuel, this month sent out its second shipment this year. The Provalys loaded at the Ikdu terminal on June 3-4 and is headed to Japan, according to shipping data compiled by Bloomberg.

Steinitz says Israel will soon find ‘as much as four Leviathans’ worth of gas in new fields - THE JERUSALEM POST

Yuval Steinitz at the Jerusalem Post's Diplomatic Conference.
(photo credit:Courtesy)

By MICHELLE MALKA GROSSMAN \ 06.17.2016 | 11 Sivan, 5776

The next step, Steinitz said during a panel discussion, is to develop the natural gas market and integrate it into the larger geopolitical picture.
Although the past year has been challenging with setbacks in developing the Leviathan offshore gas reservoir, National Infrastructure, Energy and Water Minister Yuval Steinitz said Thursday that Israel was planning to develop new gas fields in the coming months.

The next step, he said during a panel discussion, is to develop the natural gas market and integrate it into the larger geopolitical picture.

Israeli partners line up Tamar, Leviathan rig - NATURAL GAS EUROPE

June 17th, 2016

The controlling stakeholders offshore Israel – Noble Energy and Delek Group – are moving forward in their expansion and development plans for Tamar and Leviathan gas fields by trying to coordinate and schedule a sequence of drilling operations between the two projects.

A source told NGE that a tender was issued for a drilling rig, which is supposed to arrive at Israel later this year. The rig will drill a new well at Tamar field, Tamar 5, the source said. The new well is part of the expansion plan for the already producing field.

Speaking at the Herzeliya Conference June 16, Delek Group CEO Yossi Abu said that by the end of the year a drilling rig would arrive in Israeli waters. However he did not refer to the Tamar field. Drilling production wells in Leviathan will follow final investment decision at the end of this year, so not before the second half of next year, at the earliest.

Egypt LNG arbitration 'not over', says Spain's UFG - NATURAL GAS EUROPE

The Damietta liquefaction plant in Egypt (Image credit: Union Fenosa Gas)

June 16th, 2016

Union Fenosa Gas (UFG), owned 50-50 by Spain’s Gas Natural Fenosa and Italy’s Eni, has challenged reports that Egypt’s state gas company EGAS has “won” a case at the International Court of Arbitration in Paris.

Egypt’s petroleum ministry was quoted by Reuters on June 14 as saying that EGAS will not have to pay $270mn plus interest to owners of the Damietta liquefaction plant in relation to a complaint that they lodged in 2013 with the International Chamber of Commerce (ICC), which runs the Paris-based arbitration court. The $270mn plus interest covered contracted capacity at the plant. Egyptian state newspaper Al Ahram also carried the report.

"Israel has undiscovered gas worth 4 Leviathans" - GLOBES

16/06/2016, 13:06
Hedy Cohen

Energy Minister Yuval Steinitz says Israel will offer new offshore gas exploration licenses in the fall.

Israel has undiscovered offshore natural gas worth four more Leviathan fields, Minister of National Infrastructures, Energy and Water Resources Yuval Steinitz has told the 16th Herzliya Conference of the Institute for Policy and Strategy (IPS) at the Interdisciplinary Center.

Steinitz said, "It's no secret that Israel has had a major downturn in growth, in investments and in exports and that's very worrying. Developing the gas fields, bringing natural gas to factories and transport and developing export pipelines all these things are a huge engine of growth. What might save us from recession and bring us back to a reasonable level of growth is natural gas."

Cyprus' Top Diplomat: Gas Finds Could Partly Fund Peace Deal - ABC NEWS / AP

By THE ASSOCIATED PRESS
NICOSIA, Cyprus — Jun 15, 2016, 6:26 AM ET

Cyprus' foreign minister says potential offshore gas discoveries could partly fund the cost of reunifying the ethnically divided island as a federation.

Ioannis Kasoulides said Wednesday future gas finds could possibly underwrite funding that would be needed to compensate individuals who — under specific criteria — wouldn't get back properties lost during the 1974 conflict that cleaved the island.

Breakaway Turkish Cypriot leader Mustafa Akinci made a similar remark in an interview with the AP in April.

Italy overtakes Turkey to become Russia's second biggest gas buyer - PLATTS

London (Platts)--15 Jun 2016 907 am EDT/1307 GMT

Italy is now the second biggest buyer of Russian gas in Europe -- overtaking Turkey -- the head of Gazprom said Wednesday.

CEO Alexei Miller said Italian demand for Russian gas continued to rise and was up 5.3% so far in 2016 compared with the same period of last year.

But although volumes to Italy so far this year are up on 2015, the growth has slowed in the second quarter compared with the first.

In addition, Turkish purchases are considerably down this year compared with 2015.

"In 2016, Italian consumers have increased their demand for gas from Russia," Miller said in a short statement.

Egypt dreams of new pipelines crossing the Red Sea - ABO (About Oil)

Alessandro Scipione (Agenzia Nova) - June 15, 2016

The latest agreement between the government of Cairo and Aramco is just one of the pieces that make up Egyptian strategy, created to transform the country into a regional energy hub. The aim is ambitious but feasible with the financial help of the Gulf countries

Egypt could become a world class energy hub, not only due to recent gas discoveries in the Eastern Mediterranean, but also due to the black gold arriving from Saudi Arabia. This is the aim of the lucrative agreement signed during Saudi King Salman’s first visit to the Land of the Pyramids. The agreement will ensure large supplies of oil at discounted prices: approximately 700,000 tons of oil products per month - respectively, 400,000 tons of diesel, 200,000 tons of gasoline and 100,000 tons of mazut - amounting to a total of €23 billion, to be paid within 15 years at an interest rate of 2%. The Saudi Fund for Development will directly pay the energy giant Aramco the cost of supplies, enabling the Egyptian General Petroleum Corporation (EGPC) to pay calmly.

Egypt's EGAS wins case over gas cuts at LNG plant - REUTERS

LNG plant Damietta

Tue Jun 14, 2016 10:45am GMT

CAIRO, June 14 (Reuters) - The Paris-based International Court of Arbitration has ruled that Egypt's state gas board EGAS will not have to pay a $270 fine related to gas cuts at its foreign-owned liquefied natural gas (LNG) plant, the petroleum ministry said on Tuesday.

The Damietta LNG plant filed a complaint with the International Chamber of Commerce in 2013 alleging that its state partner had failed to comply with contracts by halting gas supplies in 2012 and not making payments.

The plant was demanding EGAS pay $270 million plus interest for contracted LNG capacity.

Noble Energy to Present at Upcoming Energy Conferences - NOBLE ENERGY

Credit: Noble Energy website

Houston, June 13, 2016 (GLOBE NEWSWIRE) -- Noble Energy, Inc. (NYSE: NBL) announces its participation in two upcoming energy conferences. David L. Stover, the Company's Chairman, President and CEO, will present at the Wells Fargo West Coast Energy Conference on Wednesday, June 22, 2016 at 8:15 a.m. Pacific Time. Kenneth M. Fisher, the Company's Executive Vice President and CFO, will present at the J.P. Morgan Inaugural Energy Equity Conference on Monday, June 27, 2016 at 11:20 a.m. Eastern Time.


Both presentations will be webcast live on the ‘Investors' page of the Company's website with a replay accessible for 90 days. Presentation materials for each will also be posted on the website.

Cabinet approves gas fund - INCYPRUS / CYPRUS WEEKLY

incyprus — 13/06/2016

The cabinet has agreed on a National Investment Fund to be established to handle future revenue from the management of natural gas resources, said Finance Minister Harris Georgiades on Monday.

Speaking to journalists at the Presidential Palace after the end of the cabinet meeting, Georgiades said that the legal proposal they agreed upon is the result of systematic work and advice from experts.

The legal plan, said Georgiades, stipulates procedures of transparency, multiple checks and balances, but also specific rule in how the revenue will be managed. He also said that the revenue will be used to benefit future generations, either by reducing the public debt, or by going into an investment fund which will make safe investments outside of Cyprus.

Oil and gas assets on Fosun’s takeover radar - THE AUSTRALIAN

JUNE 13, 2016

Bridget Carter, Mergers & Acquisitions Editor, Sydney
Gretchen Friemann, Mergers & Acquisitions Editor, Sydney

China’s Fosun Group will continue to seek out investment opportunities in the oil and gas sector after keeping a low profile following its $474 million acquisition of Australia’s Roc Oil nearly two years ago.

Roc Oil is the first acquisition Fosun has made in the sector so far, bringing the Chinese conglomerate into the upstream oil and gas industry with its established petroleum and natural gas businesses in China, Southeast Asia and Australia.

Saudi Arabia and Turkey’s pipeline wars in Yemen and Syria - ASIA TIMES

CHRISTINA LIN, JUNE 12, 2016

Saudi Arabia’s pursuit of the war in Yemen, at considerable cost in blood and treasure, is a literal affirmation of the term “backdoor strategy.” However, both the “door” and the actual contours of that strategy remain submerged beneath the murky waters of Mideast politics.

In June 2015, a senior advisor on Yemen in the Netherlands Ministry of Foreign Affairs, Joke Buringa, wrote an article regarding Saudi Arabia’s interest in building an oil pipeline through Yemen. Her piece underscored the energy geopolitics behind Riyadh’s bombing campaign over the past year.

Which companies are likely to win in Cyprus’ third licensing round? - CYPRUS MAIL

JUNE 12TH, 2016Abboud Zahr

In May 2016 Cyprus launched its third offshore licensing round, which will close on July 22. In this round, three blocks (6, 8 and 10) are expected to be awarded by early 2017. Block 10 has been relinquished by Total after the oil major did not find potential prospects in the said block.

Energy Minister Giorgos Lakkotrypis said recently at an energy conference in Brussels, that he is seeing strong interest from international oil companies (IOCs) in the country’s present licensing round.

BP, Eni confirm new 'significant' gas discovery in Egypt's Mediterranean - ALBAWABA / AHRAM ONLINE

Published June 12th, 2016 - 05:26 GMT

British oil company BP and Italy's Eni announced a "significant" gas discovery off the coast of Egypt on Thursday.

The new discovery in Baltim South West area is jointly owned by both companies, Eni said in a press release on Thursday.

The Baltim South West well is located 12 kilometres from the coast, 25 metres deep, and 10 kilometres north of the Nooros field.

"Baltim South West discovery further confirms the significant potential of the so called “Great Nooros Area”, which is now estimated to hold 70-80 billion cubic metres of gas in place," read Eni's statement.

Shell, Apache to complete gas production tests of Apollonia field in June - DAILY NEWS EGYPT

30 wells will be drilled to extract gas from limestone layers in Western Desert
Mohamed Adel, June 12, 2016

Dutch company Shell and American corporation Apache will complete the initial tests for producing gas from limestone layers in the Apollonia field in the Western Desert by the end of June.

A prominent source at the Ministry of Petroleum told Daily News Egypt that the two companies have a plan to drill 30 wells in the Western Desert after the initial production tests are completed.

He added that the limestone layers in the Western Desert contain natural gas and if the results of the tests are positive, new investment opportunities for producing natural gas in unconventional ways would be available.