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.

New LNG Plant in Australia's Queensland

Australia's recent four mega-projects involving LNG plants have seen second approval under the environmental prior to signing of the official project.

BG Group PLC's proposed liquefied natural gas project in Queensland is the second project to after Santos Ltd. (STO.AU) and Malaysia's Petroliam Nasional Bhd or Petronas, received the Queensland government approval last month.

Australia's new Prime Minister Julia Gillard, who was swarn in Thursday, extended an olive branch to furious resources companies by offering to negotiate a compromise on the tax, but there's no certainty she'll give much ground.

The third project is a joint venture between ConocoPhillips and Origin Energy Ltd. with the last one a standalone venture by Royal Dutch Shell PLC.

All projects are now waiting for tax reforms from the Australian federal governments.

Italy Triton LNG Terminal Postponed

GDF Suez has postponed the start-up of its Triton LNG terminal in Italy from 2012 to 2013. However, the date is yet to be confirmed as the company has not taken the final investment decision. The comissioning date of 2013 may be due to lengthy process of protocols with the local and national authorities of the LNG terminal. Italy is venturing into many LNG projects as Qatar had earlier agreed to lower prices of LNG over the long run. The agreement was much influenced by the European countries as a whole.

Exxon Australian LNG Welcomed PetroChina Accord

China's oil producer PetroChina Co will be signing an accord with Exxon Mobil Corp. targeted in the first half of this year to buy liquefied natural gas (LNG) from the Gorgon project in Australia under a term contract. 

The world's largest oil company, ExxonMobil owns 25% of the Western Australian Project with remaining stakes by Chevron Corp with 50 percent stake and Royal Dutch Shell Plc has 25 percent. Under the agreement, Exxon agreed to sell 2 million metric tons of LNG a year from the Gorgon project.

This will be on top of PetroChina's 2 million ton per year agreement with Shell in 2008 from the Gorgon project under Shell's portfolio.

Sonagas Partnering with Eon Ruhrgas

Sonagas, Equatorial Guinea's state gas company is in negotiations to partner with Eon Ruhrgas, the German utility for a second LNG export facility in Equatorial Guinea project creating a West African gas hub. It is likely that a consortium will be set-up comprising of Sonagas, Eon, Union Fenosa of Spain and Portugal's Galp Energia.

Taking advantage of West Africa as a potential route to Europe and amidst instability dependence on Russia gas, the project is expected to get a strong push factor. It is likely that the source gas will be  from gas currently flared as waste by ExxonMobil at the Zafiro deepwater oilfield. 

The consortium is however exposed to a major risk as Equatorial Guinea is one of Africa's most volatile country due to local uprising.

Huge offshore oil discoveries have boosted Equatorial Guinea's oil production from almost nothing a decade ago to about 380,000 b/d, ranking it behind only Nigeria and Angola among sub-Saharan African producers.