Singapore Building Facility for LNG Import from Qatar

Singapore is building new import facility for liquified natural gas on Jurong Island which will receive LNG from Qatar in the country's plans to diversify its gas supply. The facility costs $1.5 billion is due to be completed in 2013 to store more than six million tonnes per annum.

Singapore currently depends on the piped LNG from Malaysia and Indonesia.

Singapore's Prime Minister is replying in response to Indonesian announcement of increasing the supply price.

The partnership with Qatar, the world's biggest natural gas producer is expected after Qatar Petroleum International bought into Petrochemical Corporation of Singapore last November.

Timor-Leste Inviting Petronas to Develop Oil Field

Timor-Leste's government will invite Malaysia's Petroliam Nasional Bhd (Petronas) instead of Australian energy firm Woodside Petroleum and partners for the development of offshore Greater Sunrise gas field. The decision is expected due to Woodside's earlier plan for development of Greater Sunrise gas filed without an onshore plant for gas liquefaction.

The Timor-Lester ministry has advised that in order to benefit the country and the people by having a pipeline to East Timor instead of going to straight to other areas such as Darwin.

The decision is also believed due to good relations between Timor-Lester and Petronas and its previous experience in the oil sector and LNG plant.

China Increasing Oil Stock

As part of China's third phase strategic oil reserves, the country has announced that it will buildup its reserve capacity as commented by China's National Energy Administration Head, Zhang Guobao. China is planning to be in the league of international standard of developed countries of at least 90 days of oil rerserve.

Given China's hunger for oil, this would be a huge requirement and work will be starting on 5.4 million cubic meter oil reserve in Karamay City for a gross combined storage for the country amounting to 26.8 million cubic meters.

Malaysia Regulates New Petrol Quality RON95

Malaysia has requested its National Oil Company, Petronas to supply the country with new petrol quality of RON95 instead of the current available petrol quality RON92 and RON97. The country's administration move will eliminate RON92 to better position with global petrol quality.

The move has been getting different response from the Malaysian people. The move will help Malaysia as a whole to save subsidy by supplying a lower quality petrol RON95 at a price expected to be as close to the current RON97. However, the government will also increase the price of RON97 which expected by analysts to be the country's premium petrol. Whilst many of today's car are designed to run by RON95; some of outdated models are incompatible.

The move is also likely to incur significant cost for PETRONAS under its marketing arm, PETRONAS Dagangan Bhd as RON95 petrol is formulated with a detergent to prevent the build-up of deposits that degrade the engine's performance. The company has said that the change involves the whole supply chain from refineries to delivery of the fuel to the consumers which comes September 9 is likely to be followed by other oil companies like Shell, BHP, Caltex and Exxon Mobil in the country as set by the Malaysian government.

China Postponing Stockpiling Oil & Energy

China has announced that it is suspending the energy and oil stockpiling program due to unavailability of new storage facilities. China has been aggressively looking at its energy security for growth and stability protection especially after the global oil price hike in 2008.

China's oil stockpiling program's first phase is looking at 100 million barrels equivalent to China's 30 days of oil import for emergency usage.

Beijing administration is interested to have oil reserve in case of a crisis scenario, in particular to situations in Middlea East & Africa where most of world oil production is located now. China's plan has been regarded by analysist as getting the help from heaven as the global financial and economic crisis has put a pressure on and subsequently much lower global oil prices enabling the cash-rich Chinese to pursue the mega-plans of oil reserve.

The last phase of the strategic plan will enable China to have 100 days of total oil import enabling independance on China's soil without any foreign interference on energy usage which is the same as U.S Strategic Petroleum Reserve.

Malaysian Having Closer Tie with Iran on Oil Exploration

Malaysian under one of the country's state Chief Minister of Kedah had a discussion with Iran for investment in oil exploration and exploitation in Iran. Iran Ambassador to Malaysia Mehdi Khandaqabadi assuring Iran's great potentials through economic and cultural cooperation with Iran and Malaysia would transpire into benefits for both countries.

Also on discussion was to declare the two islands of Malaysian Langkawi and Iranian Kish as sister cities, promoting better ties and perhaps investment opportunities through government support.

Caltex to Expand Distributorship through Chevron

Chevron Corp under its Malaysian wing, Chevron Malaysia Ltd is planning to expand the petrol distributorship in the Malaysia through its Caltex brand. The expansion of Chevron's local network of Caltex service stations and the availability of its highly quality Techron products will include a target of 30 additional stations next year.

Chevron currently operates and manages some 420 service stations in the Peninsular of Malaysia which at this time offering dedicated service stations, asphalt and lubricants.

Japanese Economy Taking Hit

Japan, who has been prone to deficit for nearly 30 years is experiencing its first deficit indicating the economy trouble wave is rippling towards Japan. Japan posted a trade deficit of Y725.3bn in fiscal 2008. However, the government of Japan is confident that the economy is in its state for a rebound especially in the indsutrial production and exports. The petrochemical industry in the country is yet to see a clear signs of rebound and the industry is now in wait and see situation.

China & Myanmar Signing New Oil & Gas Pipeline Contract

A cross boarder oil and gas pipelines to enable oil and other oil-derivatives to China is already in plan as China and Myanmar signed a pipeline contract between China and Myanmar to slash the transfer time for crude oil imports.

The agreement reportedly consists of pipeline project as well as join-venture for hydropower projects. China and Myanmar plan to build 2,000-km gas and oil pipeline through Ruili and Kunming in Yunnan province which can tremendously cut out oil cargos long detour through the congested Malacca Strait.

The project is however under strict control due to Myanmar's history with human rights which means less injection of capital from external sources. As the project benefits China in great length, Beijing is offering incentives including cheap loans and tax breaks to attract foreign participation.

Pertamina Planning to Start Up New Polypropylene Plant in 2011

Pertamina, Indonesia's state-run refinery operator is planning to start up its new 250,000 tonne/year polypropylene (PP) plant at Balongan, Indonesia in early 2011. Pertamina is under huge expansion and and rumours of it planning to acquire local polypropylene producer, Polytama Propindo has also been rumoured.

The feedstock for the plant will be coming from Pertamina's new 250,000 tonnes/year of propylene capacity residual fluid catalytic cracker (RFCC) expansion unit in Balongan.

Malaysian Researchers Looking at New Biofuel Technology

Malaysia University of Science and Technology (MUST) is developing new ways of using oil palm-related products to produce renewable fuels, in what is seen as a response to European Union concerns in food and environment-related carbon balance. 

The MUST university is collaborating with a German research organization, Fraunhofer to work on directly processing oil palm biomass into biodiesel, instead of bidiesel being produced from crude palm oil. However, the MUST-Fraunhofer research is focusing on making the fuel from non-CPO biomass. This is to alleviate the mass requirement for oil palm plantations where only 10% of the biomass comprises CPO (Crude Palm Oil) and the rest includes fibers, empty fruit bunches, shells, fronds and tree trunks. 

Much of the reasearch will be to turn non-CPO biomass into gas and liquefied gas for usage as gasoline and biodiesel which will see bigger commerical gassification plant in Malaysia from palm oil. MUST is in the hope that the technology to be developed for commercial use in 2-3 years.

Fierce Competition in Australia's LNG Business

Royal Dutch Shell PLC has been reportedly joined the bandwagon as the latest big prospector in Australia's coal seam gas rush. This comes after news that Shell is planning to build a multibillion dollar gas export facility at Gladstone in Queensland state.

It has been a competition of media coverage alongside with BG, ConocoPhillips and Malaysia's Petronas planning to team up with local companies to convert Australia's rich CSG reserves to liquefied natural gas for export.

As to date, five LNG plants are planned to be constructed. Heavy participations comes from all corners including Liquefied Natural Gas Ltd, a smaller scale company compared to the oil giants.

Shell has already signed an exclusive right to investigate a site on Curtis Island near Gladstone for a possible LNG plant with Gladstone Port Corp and has already commenced a feasibility study.

Analysts are not ruling out that there perhaps will be hitting back at Shell by making an even higher bid for Pure Energy from BG.

Malaysian Biodiesel Sold Out

Mission New-Energy, an Australian firm  which has a stake of 100 kmta of biodiesel plant at Malaysian port of Kuantan told the press that all of the potential production is already sold out in 2009. Mission is now on its way for a second palnt which will be able to produce an extra of 250 kmta of biodiesel.

The second plant project has been delayed in construction for many months due to technology switching. Despite the global economic turmoil, Mission Energy has able to sell all of 2009 contractual production to a major global oil and biofuels player for a cost-plus-margin basis protecting it from the volatility in commodities markets.

The recent huge price drop in biodiesel last year had pushed many biodiesel producers to the brink of collapse.

India Building It's First Biodiesel Plant

Mission Biofuels, a Mumbai-based biodiesel company is planning to build the India's first biodiesel plant in the eastern Indian state of Orissa with a capacity of 100,000 mt/year plant. The construction cost for the biodiesel plant is expected to be around $USD 75million which does not include the company's already access to 350,000 acres of jatropa farms across the country.

The construction will take two years to coincide with the maturity of its jatropha crops which are 40% planted in Orissa. Jathropa crops have made its way as a sustainable source for biodiesel fuels in the debate of carbon balance.

Shanghai, China is Booming with LNG Demand

China, one of the world's biggest demand for energy, is going to be the next LNG vacuum with demand increase up to 3 billion cubic metres last year. China National Offshore Oil Corporation (CNOOC); is due to commission a terminal to receive liquefied natural gas in Shanghai in early February 2009 from Malaysia LNG Tiga. This first ever cargo is said to be about 20,000 cubic metres of gas before commercial operation in April.

CNOOC's Shanghai terminal will receive 1.1 million tonnes per annum from Petronas LNG complex in Malaysia with incremental volume up to 3 million tpa in 2012. Shanghai is now looking at ways to increase its emergency gas reserves as demand is shooting up.

Despite Economic Turmoil, Shell is Expanding in Asia

Recently Shell Malaysia has announced that it will be expanding its retail business to include additional 40 petrol pump stations in the year of 2009 despite the recent global turmoil. Some anylysts are confident that this is showing the good fundamentals for Malaysian economy. 

Asia has been hit by the economic slowdown with major share market in the region has been nosediving. However, most are confident that the turmoil are largely affecting the western economy and countries with good fundamentals will see a shake to its economy but nothing major that will cut demand growth significantly.

World's Biggest Carrier Dropped $882 Million Deal

The world's largest ship company and carrier of liquified natural gas, MISC Bhd has reportedly dropped a $882 million dollar acquisition deal for oil service firm Ramunia Holdings Bhd due to due diligence incompleteness. MISC is a unit of state oil company Petronas.

Itochu Bought New Zealand MDF Plant

Japanese conglomerate Itochu Corp has reportedly bought New Zealand’s Carter Holt Harvey's medium-density fibreboards (MDF) plant in Rangiora, New Zealand for an undisclosed amount.

The new joint venture is housed under new shareholder, Japan’s Daiken Corp of which 51% owned by Daiken and remaining by New Zealand.  The MDF joint venture will be known as Daiken New Zealand.

Malaysia to Build Petrochemical Plants in Sabah

Malaysia is expected to build a petrochemical plant in Sabah, despite global economic downturn after heavy pressure from the local political scene. The Malaysian government has instructed the complex after Petronas, its national oil company to construct the RM3billion gas pipeline from Sabah to Sarawak.

Early indication is expecting a full-fledged petrochemical industry setup.

Malaysia to Raise Biodiesel Export

One of the largest biodiesel producer from palm oil, Malaysia has raised its 2008 biodiesel export forecast to 200,000 tonnes a twofold increment from its previous year.

High spread between the selling price of palm methyl ester and the feedstock crude palm oil (CPO) is seen as the main reason behind the huge jump. Malaysia currently has 1.6 million tonnes capability to produce CPO per year mainly for production of methyl ester. Malaysian's biodiesel export mostly goes to the European countries.