In this issue of Natural Gas: Information and Updates, countries with medium concentration natural gas reserves are reviewed along with significant market, regulatory and legal developments from around the globe. Developments within the Republic of India are covered separately.
Medium Concentration Areas include India, Oman, Azerbaijan, Yemen, Argentina, Brazil, Mexico, Thailand, United Kingdom, Angola and Syria.
GLOBAL SCENARIO
Natural Gas Statistics – Medium Concentration Countries
- India: Sixth-largest LNG importer globally with consumption exceeding 2.3 Tcf annually.
- Oman: Approximately 30 Tcf of proven natural gas reserves.
- Azerbaijan: Approximately 35 Tcf of proven reserves, largely from Shah Deniz field.
- Yemen: Approximately 16.9 Tcf of proven reserves.
- Argentina: Largest natural gas producer in mainland South America with significant shale gas potential.
- Brazil: Approximately 14 Tcf of proven natural gas reserves.
- Mexico: Approximately 17.3 Tcf of proven reserves and one of the world’s largest shale gas resource bases.
- Thailand: Approximately 10.1 Tcf of proven reserves, mainly offshore.
- United Kingdom: Approximately 8.7 Tcf of proven reserves.
- Angola: Approximately 10.95 Tcf of proven reserves.
- Syria: Approximately 8.5 Tcf of proven reserves.
MARKET UPDATES – GLOBAL
Sino Gas & Energy Extends Exploration Period
September 2, 2013
Sino Gas & Energy Holdings agreed to a three-year extension of the exploration period under the Linxing Production Sharing Contract in China.
Saudi Arabia and Kuwait Halt Dorra Gas Development
September 2, 2013
Development plans for the Dorra offshore gas field were suspended due to disagreements regarding gas allocation and transportation arrangements.
Tanzania Prepares Fourth Licensing Round
September 1, 2013
Tanzania announced plans for its fourth oil and gas licensing round amid growing interest in East African gas reserves.
Oman LNG and Qalhat LNG Merge Operations
August 31, 2013
The merger was expected to improve operational efficiency and enhance LNG export revenues.
Bangladesh Records Highest Natural Gas Output
August 31, 2013
Bangladesh’s gas production reached a record 2,315 million cubic feet per day.
Pakistan Seeks Sanctions Waiver for Iran-Pakistan Pipeline
August 30, 2013
Pakistan initiated diplomatic efforts to secure exemptions relating to the Iran-Pakistan gas pipeline project.
Apache Sells Egypt Energy Assets Stake to Sinopec
August 30, 2013
Apache Corporation sold a 33% interest in its Egyptian oil and gas business to Sinopec for USD 3.1 billion.
TransGlobe Announces Gas-Condensate Discovery in Egypt
August 30, 2013
Successful testing confirmed gas-condensate resources in Egypt’s Western Desert.
OMV Discovers Gas and Condensate in Pakistan
August 29, 2013
The Sofiya-2 exploration well in Sindh Province confirmed commercial gas-condensate reserves.
China Increases Oil and Gas Exploration Investment
August 29, 2013
China’s exploration investments were projected to reach 80 billion yuan by the end of 2013.
MARKET UPDATES – REPUBLIC OF INDIA
IOCL to Build Natural Gas Terminal in Odisha
July 29, 2013
Indian Oil Corporation signed an agreement for development of a ₹5,000 crore LNG terminal at Dhamra, Odisha.
Cabinet Approves Shale Oil and Gas Exploration Policy
September 25, 2013
The Government approved a shale exploration framework permitting ONGC and Oil India Limited to explore shale resources within nominated blocks.
ONGC Videsh Pursues Kazakhstan Opportunities
September 25, 2013
ONGC Videsh entered discussions to acquire additional oil and gas assets in Kazakhstan.
ONGC Begins Shale Exploration Activities
September 25, 2013
ONGC announced plans to drill its first shale oil and gas exploration well in the Cambay Basin.
ONGC Videsh Expands Mozambique Investments
September 25–26, 2013
ONGC Videsh pursued financing arrangements for major acquisitions in Mozambique’s Rovuma Area 1 gas development.
New Gas Pricing Policy to Apply Uniformly
September 26, 2013
The Government confirmed uniform implementation of the revised natural gas pricing policy.
Government Plans Private Sector Shale Participation
September 26, 2013
The Government indicated plans to extend shale oil and gas exploration opportunities to private sector energy companies.
VGS Designs LNG Facility for Tamil Nadu
September 26, 2013
VGS Group completed the design of a floating LNG regasification unit intended to supply natural gas to southern India.
NEW GAS FINDINGS
Jubilant Energy and GAIL Discover Gas in Tripura
June 3, 2013
Discovery at the North Atharamura-1 well confirmed hydrocarbon potential in northeastern India.
RIL and BP Discover Gas in Cauvery Basin
August 23, 2013
A new deepwater gas discovery was announced in block CY-DWN-2001/2.
ONGC Reports Four Hydrocarbon Discoveries
August 2013
ONGC reported one new prospect and three new pool discoveries during the first quarter of fiscal year 2013–14.
Statoil Discovers Gas in the Barents Sea
September 23, 2013
The Iskrystall prospect offshore Norway confirmed significant gas resources.
BP Discovers Gas Offshore Egypt
September 10, 2013
The Salamat exploration well in the East Nile Delta successfully encountered natural gas.
Eni Announces Mozambique Gas Discovery
September 3, 2013
Early estimates indicated 5–7 Tcf of gas in place within Area 4 offshore Mozambique.
BG Group and Ophir Discover Gas Offshore Tanzania
July 30, 2013
The Mkizi-1 well represented the ninth major gas discovery in Tanzania’s offshore blocks.
LEGAL DEVELOPMENTS
DG (I&R) v. Indraprastha Gas Limited
Decided on August 22, 2013
The Competition Commission declined to proceed with allegations relating to excessive PNG pricing, noting that the matter was already under consideration by PNGRB.
National Chamber of Industries & Commerce U.P. v. GAIL
Decided on July 12, 2013
The Court upheld contractual provisions permitting progressive increases in natural gas pricing in accordance with Government policy directives.
Common Cause v. Union of India
September 30, 2013
The Supreme Court issued notice regarding a petition seeking cancellation of KG Basin exploration contracts and imposition of penalties for alleged non-compliance.
GAIL India Ltd. v. Gujarat State Petroleum Corporation Ltd.
The Supreme Court upheld GAIL’s termination of an RLNG supply arrangement and emphasized arbitration as the appropriate forum for resolution of complex pricing disputes.
Natural gas was used in Persia during the first century AD when naturally occurring gas seeped from the ground and burned continuously, creating what was known as an “eternal flame.”
SOURCES
- Norwegian Petroleum Directorate
- U.S. Energy Information Administration
- The International Energy Agency
- Economic Times (India)
- Natural Gas Asia and Europe
- Oil & Gas Journal (OGJ)
DISCLAIMER
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