Tuesday, December 10, 2013

SINGAPORE: Vopak to build Southeast Asia’s first independent LPG storage facility on Jurong island

(EnergyAsia, December 10 2013, Tuesday) — Dutch oil and chemicals storage giant Royal Vopak has announced that it will be building Southeast Asia's first independent liquefied petroleum gas (LPG) facility in Singapore.

Vopak said it expects to complete the refigerated import terminal on Jurong island with an initial capacity of 80,000 cubic meters (cbm) in the first quarter of 2016.

"The facility will be connected via pipeline to nearby plants and will allow for LPG import and distribution in Jurong Island in a safe and efficient manner," said a Vopak statement which added that it had signed up ExxonMobil as its first anchor customer for its latest project.
It did not reveal the cost of the project which will add to Jurong Island's feedstock flexbility.

"This project fits well in Vopak's overall strategy, as gas will become an interesting alternative for naphtha. This LPG facility not only caters to the rising petrochemical needs of alternative and cost effective feedstock in Singapore, it also has the potential to lead in the facilitation of regional imports," said Vopak chairman and CEO Eelco Hoekstra.

"Asia's appetite for LPG is growing. Supply developments in the US, the Middle East and potentially Australia will cover a growing LPG demand in Asia. As such, we see the opportunity to capture these imports with an independent LPG terminal in the region."

"Singapore is a natural choice as it is home to several large petrochemical complexes and we already have an established presence supported by excellent relationships with local authorities. Most importantly, building on the success of Singapore as an oil hub, there is potential for a regional hub for LPG and we are keen to be part of this growth."

Vopak and its partners currently own and operate LPG terminals in China, Pakistan, the Netherlands and Peru with a total capacity of 431,200 cubic metres (cbm).

 




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Monday, October 7, 2013

ASIA: Southeast Asia should focus on raising energy efficiency, says Brunei energy research chief

 

(EnergyAsia, October 8 2013, Tuesday) — This is an edited version of an article by Weerawat Chantanakome, CEO of the Brunei National Energy Research Institute (BNERI).

The energy efficiency practice in Southeast Asia is still in its infancy stage, even though the region's energy intensity – the amount of energy used to produce each dollar of gross domestic product (GDP) – has steadily declined in recent years.

Between 2005 and 2009, ASEAN countries reduced their energy intensity by 4.97%, bringing them closer to reducing regional energy intensity by at least 8% from 2005 levels in 2015.

However, according to a statement issued at the 30th ASEAN Ministers on Energy Meeting (30th AMEM) last year, energy consumption looks set to rise by 4.4% per year till 2030 under business-as-usual conditions, driven by continued urbanisation and expanding populations. ASEAN or the Association of Southeast Asian Nations is the regional grouping for Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

With energy security taking precedence of late in national agendas, ASEAN governments are taking a harder look at energy efficiency. It is an untapped fifth fuel – that together with fossil fuels, nuclear, renewables and coal – can power ASEAN economies as they aim for sustainable economic growth, ensuring universal energy access for all and mitigating the onset of climate change.

The government as role model
Governments have to take the lead in furthering energy efficiency and for some of them, housekeeping is in order. Several ASEAN countries have existing policies and market incentives to promote energy efficiency, but must ensure better monitoring and enforcement.

There are also numerous best practices to follow, which have addressed consumer and industrial energy demand while ensuring that legal mechanisms support the above as well as new schemes to enhance efficiency.

In Thailand, in the 1990s, a fund was set up to support energy efficiency projects, using proceeds from taxes on petroleum products. Simultaneously, demand-side management plans such as public awareness campaigns and energy efficiency standards for buildings and appliances were launched.

In 2002, the Thai government decided to offer credit lines to local banks to provide loans to developers of energy efficiency projects. By 2010, this revolving fund had financed projects worth a total of US$453 million, yielding energy cost savings of around US$154 million each year.

ASEAN should start by harvesting some low-hanging fruit including instituting building codes and fuel efficiency standards in the transport sector, using LED lights for street lighting and traffic lights, and labelling appliances to promote the purchase of efficient appliances. They can draw on existing multilateral funding to promote greater consumer awareness in energy efficiency.

The Asian Development Bank has consistently funded energy efficiency projects. Between 2005 and 2011, its investments in projects with a demand-side energy efficiency component totalled US$1.8 billion. It is also setting up a new Energy Efficiency Technical Support Unit to provide technical policy and financial support in accelerating energy efficiency investments in its developing member economies.

Longer-term, as energy efficiency becomes a more widespread priority, new regulations can be formulated to take efficiency standards to the next level. This year, Singapore, which already has mandatory efficiency labeling for appliances, introduced an Energy Conservation Act requiring energy-intensive companies to appoint an energy manager, monitor and report energy use and greenhouse gas emissions, and submit energy efficiency improvement plans to the government.

Breaking down barriers
While promoting efficiency, governments will have to address the long-standing barriers to more efficient usage of energy. These would range from the price of energy and the lack of political will to change this, the lack of human resources and finance to adopt innovative projects and a lack of coordinated efforts to promote efficiency in both the supply and demand side.

The failure to price energy at its market cost is probably the most-talked about impediment to energy efficiency in Asia, and it is also a drain on public resources that could have gone towards investment in electrification and integration into the ASEAN-wide power grid.

Hopefully, this will lead to further changes as a few ASEAN countries have recently demonstrated the political will to remove subsidies.

An ability to measure the effectiveness of energy efficiency programmes is key to their further uptake. ASEAN integration in the coming years and regional platforms for discussion such as the Singapore International Energy Week (SIEW) can facilitate the transfer of technology and know-how.

In addition, countries like the Philippines, Thailand and Singapore that have developed capacity and standards for energy service companies (ESCOs) can assist others in creating ESCO accreditation systems.

While demand-side management efforts continue across the transport, residential and industrial sectors, supply-side efficiency solutions cannot take a backseat.
Lowering energy demand will mean less public infrastructure expenditure on power generation plants in the long-run but the impact of more efficient power generation in existing plants will be seen in the medium-term.

The power of five
Unfortunately even with its potential, energy efficiency on its own is not a silver bullet to ensure long-term energy security. Its key significance lies in reducing energy costs for businesses and nations alike while easing the growing burden on the environment.

Keenly aware of the importance of each element in the fuel mix, Brunei Darussalam has set up the Brunei National Energy Research Institute (BNERI) to look at paving the way for a future where oil and gas plays a smaller role in fuelling the economy and where energy efficiency and renewables carry significant weight in the kingdom's energy mix.

The rest of ASEAN too is making constant progress in pursuing resource diversification – a necessary strategy to prepare for the opportunities and uncertainties in an ever-volatile global energy landscape.

 




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Thursday, October 3, 2013

Jurong Island to launch LPG project soon

 

JI 2.0 upgrades include 2nd road link aimed at boosting petrochem hub

[SINGAPORE] More upgrading additions to Jurong Island - including a liquefied petroleum gas (LPG) terminal to import the alternative feedstock for petrochemical crackers here, and a safety and risk management centre - are expected to be launched soon.

Studies are also well underway for longer-term projects, such as having a second road link to the petrochemicals island around 2022.

These latest projects, under the government's ongoing JI 2.0 initiative, are aimed at boosting the global competitiveness of Singapore's petrochemicals sector, even as new rivals emerge in the Middle East and the US, where new plants are being built to capitalise on cheaper feedstocks from shale gas projects.

Giving an update on JI 2.0, Eugene Leong, head of Energy & Chemicals at the Economic Development Board, told The Business Times that the projects follow the recent establishment of new utilities plants employing alternative fuels such as coal/biomass and woodchips by Tuas Power and Sembcorp respectively. The latter is also set to use waste materials to produce utilities for petrochemical investors there. EDB is also encouraging more companies to set up in-house utilities plants using gas from the newly started Singapore LNG terminal.

"By providing more such options, whether in feedstocks, logistics or in other areas, greater robustness will be added to the system," he said.

The LPG terminal, for instance, will provide the petrochemical crackers here with an alternative to naphtha feedstocks.

"Globally, the economics to support the LPG project have improved as the world shifts to lighter feedstocks," he said, adding that the project is in its final stages, with EDB in advanced discussions with a private-sector investor. Earlier estimates put its cost at US$100-120 million.

Also under implementation is the JI safety and risk management centre, which is a multi-government agency effort to set up a centralised planning and strategic unit to oversee issues, such as fires and the environment on the island. A technical adviser, the UK Health & Safety Laboratory, has been appointed to advise on this, and the centre is looking at staffing requirements.

Mr Leong said that since JI 2.0 was first mooted three years ago, there have been new emerging challenges such as that posed by US shale gas. "But there is still a role for naphtha crackers like those in Singapore," he said, explaining that Asian petrochemicals demand is still growing strongly by a 10 per cent compounded annual rate, "so the region still needs some 20 million tonnes per annum of cracking capacity, which works out to close to two crackers annually".

"Also, as gas is lighter, naphtha crackers are still needed to produce the heavier petrochemicals or olefins like butadiene," he said. This explains why Petrochemical Corporation of Singapore is carrying out a plant expansion for this.

"Jurong Island's big geographical advantage is also that we have the Asian market in our backyard," Mr Leong said. And it is not just China, but also the Asean region which has been growing very strongly economically over the past few years, making this a strong regional demand centre for petrochemicals, he added.

During the same interview, Dennis Tan, director for JTC Corporation's Biomedical and Chemicals cluster, disclosed that JTC is planning to build a second road link from Jurong Island to the mainland, with this crossing the Jurong West Channel to the Jurong West area. This will help alleviate the current checkpoint congestion especially during morning peak hours.

"It will be a major engineering challenge and we are studying options of where to connect, and how to connect, including whether it should be above or below the sea."

"The mainland part is also already developed, so there will be other key considerations like its impact on transport network flows and on industries already operating there, as well as other issues like financial, environment and the land involved," he said.

"At this point, the study will take a couple of years, then we go into the necessary government approvals, followed by construction, which will also take a couple of years. So the earliest this second link can be operational will be around 2022, or in nine years' time," Mr Tan said.

Logistics-wise, a new Jurong Island barging terminal is also supporting movement of hazardous chemicals from plants there.

Complementing the usual overland trucking of containers or tanks from the petrochemicals island, the terminal, which started up last year, allows barges to take the chemicals directly to the port for onward export, he said.

On the $890 million first phase of the underground Jurong Rock Cavern oil storage, Mr Tan said that testing and pre-commissioning has started on the first two of the five caverns, with the entire phase set for completion next year, in time for its first customer, Jurong Aromatics Corporation, which is starting up then.

An operator for the JRC project is expected to be picked by year-end, he added.

 




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Thursday, September 26, 2013

Singapore ramps up LNG investment

SINGAPORE: Singapore is ramping up efforts to become Asia's hub for liquefied natural gas (LNG).

Temasek Holdings LNG unit, Pavilion Energy, says it wants to raise its investments in infrastructure and assets, with the aim of trading LNG in Asia within the next three months.

Already Asia's energy hub, Singapore has big ambitions to become the go-to market for LNG in the Asian region.

Pavilion Energy, set up by Temasek Holdings in April this year, wants to tap soaring Asian demand for energy.

The company is set to increase funding to its initial authorised capital of S$1 billion and invest in LNG infrastructure, terminal and assets in Asia.

Seah Moon Ming, CEO of Pavilion Energy, said: "I can say with confidence that Singapore will devote itself into a major LNG trading hub soon in the region. I believe we have what it takes to attract growing LNG volume into Asia, and will be in a position to set LNG prices in the region."

According to the International Energy Outlook 2013, natural gas is the world's fastest-growing fossil fuel.

Global demand is also keeping pace, and is expected to soar 64 per cent by 2040, compared to 2010 levels.

In line with economic growth and increasing wealth, developing Asia is expected to account for much of that demand, led by China, India and Southeast Asia.

Mr Seah highlighted the need for cross-border collaboration to tackle global energy issues.

"We value long-term international partnerships that will build new markets, enhance shipping logistics and regasification facilities. We shall support innovative processes and technology that enhance production, storage, delivery and trading."

Gaurav Tiwari, president of VGS Cavallo Energy Group, said: "I think that's the right way to deal (with LNG), to have not only the downstream or market focus, but to have the global LNG portfolios - companies like Pavilion. India being there comes under the Asian region too. We will look forward to work with companies like Pavilion where there is a global exposure on the projects we are developing."

In 2012, the Asia Pacific accounted for 70 per cent of total global energy trade.

Singapore commissioned its first LNG cargo in March this year.

Commercial operations at the three million metric-ton-a-year terminal on Jurong Island began in May while the completion of a third tank is expected in 2014. This will expand its capacity to six million tons.

- CNA/fa

 




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Tuesday, September 17, 2013

Oil refiners face profit squeeze

SINGAPORE: Oil refining companies are expected to see a profit squeeze.

Overcapacity in the sector and slower demand from developed economies are weighing down their margins.

Analysts said this means dimmer business prospects for refineries and other downstream oil and gas players.

OCBC Research, for instance, has an underweight call on the sector.

Global oil refining margins are under pressure, with more refining capacity being created.

This after oil refining majors expanded their capacity with new investments following the oil boom in recent years.

At the same time, oil demand growth, particularly in the developed economies, has slowed.

This is due to flagging economic growth rates, saturated car ownership rates, as well as the use of fuel-efficient technology like electric vehicles.

As a result, the world's net refining capacity is forecast to grow by 8.7 million barrels per day by 2016.

However, demand is expected to grow by seven million barrels per day, said the International Energy Agency. 

Ravi Krishnaswamy, vice-president of Energy & Power Systems Practice at Frost & Sullivan (Asia-Pacific), said: "We see a massive build-up in the Eastern hemisphere, so looking at China and India, they've been rapidly expanding. India was about 193 million tonnes per annum last year. They're expected to go up to about 300 million tonnes in the next six to seven years."

Almost all of the oil refining capacity growth is from developing Asia, and analysts said this trend is likely to continue.

"It is mainly funded by national oil companies as part of a greater government initiative. Although global refining margins are relatively low compared to the past, they are less sensitive to near term market price movements, so we expect the refining capacity to continue to increase in the near future," said Low Pei Han, an analyst at OCBC Investment Research.

This is expected to push refining margins on brent crude oil marginally down next year to around US$6 per barrel.

Singapore's Economic Development Board has recently said that it has no plans to attract any more green-field refinery investments, according to an analyst report by OCBC Research.

Analysts said this means Singapore-based downstream oil and gas players such as engineering, procurement and construction companies will be under greater pressure to look overseas for business opportunities.

They added that the SGX-listed companies that could be impacted include PEC, Rotary Engineering and Ezra.

 




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Petronas to Delay $19 Bln Petrochemicals Project to 2018

State oil firm Petronas will start up its $19 billion petrochemicals complex in Malaysia in 2018, the company told Reuters on Tuesday, signalling a further delay in the country's largest-ever infrastructure project.

A delay to the project in southern Johor state could deal a potential blow to the economy of the Southeast Asian nation as well as local oil and gas services firms hoping for work on the massive complex.

A source familiar with Petronas' business strategy told Reuters the project had been complicated by a need to secure water supplies as well as cater for proposed international partners.

Petronas had already put back the project from late 2016 to early 2017 in June and revised the final investment decision (FID) to the first quarter next year, citing state government problems in relocating villages and graves from the 2,000 hectare-site, five times the size of New York's Central Park.

"As a result of the revised FID date, the RAPID refinery is scheduled to be ready for start-up in Q4 2017 and the remaining plants within the complex is scheduled to be commissioned in 2018," Petronas said in a statement to Reuters on Tuesday.

This is at least six months later than market expectations after local media had cited Petronas CEO Shamsul Azhar Abbas in June as saying the start date for phase one of the RAPID project had been pushed back to early 2017.

BIGGEST INVESTMENT

Delays in the project - a cornerstone of Prime Minister Najib Razak's Economic Transformation Programme aimed at doubling Malaysians' incomes by 2020 - could slow an economy whose oil and gas sector makes up a fifth of GDP.

The complex is the largest single investment in Malaysia, and aims to grab a chunk of the $400 billion global market for speciality chemicals used in products from LCD televisions to diapers.

Its location at the southernmost tip of the peninsula, just 10 km (6 miles) from Singapore's east coast, is part of a vision for a "Greater Singapore" energy trading hub that would rival competitors such as China.

"This massive project is getting more complicated as we move forward," said the source, who declined to be named as he was not authorised to speak to the media.

"We will need to spend to secure the water supply and now parts of the project may need to be redesigned to cater for incoming project partners," he added.

Petronas, Malaysia's only Fortune 500 company, has signed heads of agreements with Italy's Versalis SpA, Japan's Itochu and Bangkok-listed PTT Global Chemical to build speciality chemical plants.

Germany's Evonik also stepped in to the project after rival BASF - the world's top chemicals group - pulled out after differences in business strategy.

NOT SO RAPID?

Petronas unveiled the Refinery and Petrochemicals Integrated Development (RAPID) project in May last year. The plan was to construct a 300,000 barrel per day refinery, which would supply naptha and liquid petroluem gas to the chemical plants and produce gasoline and diesel for European markets.

France's Technip was awarded the front end engineering and design (FEED) contract, which was slated for completion in the second quarter of 2013. The financial value of the job was never disclosed.

Petronas will use the design specifications to reach a final investment decision, after which the major construction works usually begin. BNP Paribas is the financial advisor for project financing

The June decision to postpone a final investment decision to Q1 2014 knocked the shares of local mid-sized oil and gas services companies, and analysts said the latest delay could weigh on firms like SapuraKencana and Wah Seong .

Petronas has yet to award the engineering, procurement and construction jobs, although preparation work for the site started on Oct. 18.

It is expected to award about 20 construction job packages valued at about 2-3 billion ringgit ($620 million-$930 million) each, two other sources familiar with the company's plans said.

The contracts for the refinery are expected to be awarded in November or December this year.

"Anyone with a licence from Petronas will benefit, if they can meet the specifications," said one of the sources.

"Delays just means the party starts a little late for some of these companies. These projects are generally complicated and can have a longer gestation period." ($1 = 3.2260 Malaysian ringgit) (Reporting by Niluksi Koswanage and Yantoultra Ngui; Editing by Stuart Grudgings and Richard Pullin)

 




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New Upgrades to Keep Jurong Island Fresh

Jurong Island continues to bask in sunshine. Despite the attraction of cheaper gas feedstock in the Middle East and also that from new shale gas projects in the US, oil giants like ExxonMobil and Shell are still growing their integrated refining and petrochemical complexes in Singapore to boost their sophistication and competitiveness.

ExxonMobil is ramping up its spanking-new second petrochemical complex here to full commercial operations, while Shell has just announced a raft of expansions, said to cost additional billions of dollars, to its facility.

Their expansion projects here - clearly focused more on high-value specialty chemicals rather than oil refining - are fuelled by Asian economic growth, especially in China and India. The latter has sparked industrial demand for a whole range of chemicals needed to make end-products from heat and oil-resistant plastic car parts and high-performance tyres to textile fibres, high-end foam bedding and surfactants or cleansing agents for the offshore oil industry, just to name a few. But it raises the question of why the investments are coming to Singapore, rather than going directly to the heart of the mega markets, like China. Apart from well-known pluses like Jurong Island's superb infrastructure and synergies for the chemical players on the island, industry players say that a big draw is also Singapore's iron-clad, intellectual property protection regime.

This has given the oil giants the confidence to incorporate state-of-the-art technologies in their mega-billion dollar plantings here. It also extends down the chemicals chain to specialty chemical makers which have brought their latest proprietary technologies here, fully assured that potential copycats are effectively fenced out.

The fact that the "big boys" are here to stay, in turn, provides assurance to the downstream players. New investor Solvay Novecare, for instance, said that the guarantee of long-term feedstock supplies from Shell clinched the deal for the surfactants maker to follow suit here. All this must be sweet music to the Economic Development Board, which, as it moves into the next phase of development on Jurong Island, aims to draw in more of such new investors producing higher value-add downstream derivatives and specialty chemicals. It was the increased availability of butadiene feedstocks from the petrochemical crackers here, including an expansion at Petrochemical Corporation of Singapore, which recently spawned a whole new chain of downstream synthetic rubber plants here.

These include projects by Germany's Lanxess, Japan's Zeon Chemicals, Sumitomo Chemicals and Asahi Kasei Chemicals, and Taiwan's Dairen Chemicals. And right now on EDB's to-do list is the establishment of a similar "high purity chemicals corridor" of downstream plants which will make use of feedstocks like high-purity ethylene oxide, polyols and ethoxylates from Shell's latest investments. These latest developments will ensure that Jurong Island continues to stay attractive.

 




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Thursday, September 5, 2013

SINGAPORE: Asia’s largest jet fuel trader lease storage tanks to build up fuel oil business

(EnergyAsia, September 6 2013, Friday) — Asia's largest physical jet fuel trader said it is venturing into fuel oil, the region's main oil product, with the signing of a three-year lease to store refined products on Singapore's Jurong Island.

China Aviation Oil (Singapore) Corporation Ltd (CAO) said it will lease five tanks with a combined capacity of 174,000 cubic metres from Horizon Singapore Terminals Private Limited (HSTPL) from September 1 to store fuel oil and blending components.

HSTPL is a subsidiary of Horizon Terminals Limited, a leading independent bulk liquid storage company owned by the UAE's state Emirates National Oil Company (ENOC).

Calling this a "milestone" deal, Meng Fanqiu, CAO's CEO, said it represents the company's first venture into the fuel oil trade, which far exceeds the volume and value of jet fuel.

He said: "Singapore is the largest fuel oil market in the world and strategically located between the growing fuel oil markets of Middle East and China. Having access to fuel oil storage facilities in Singapore is essential to the growth and expansion of CAO's fuel oil business, as it enhances our flexibility and trading capability in this market, as well as opens up new business opportunities in the Asia Pacific region.

"CAO will continue to execute the strategy of building up an integrated supply chain for its fuel oil business, so as to expand income streams and diversify into other oil products with jet fuel supply and trading as its core business."

Apart from trading oil products, CAO and wholly-owned subsidiaries, China Aviation Oil (Hong Kong) Company Limited and North American Fuel Corporation, supply jet fuel to airports outside China, including Asia Pacific, Europe, North America and the Middle East. The company owns investments in various strategic oil-related businesses including Shanghai Pudong International Airport Aviation Fuel Supply Company Ltd, China National Aviation Fuel TSN-PEK Pipeline Transportation Corp Ltd, Oilhub Korea Yeosu Co Ltd and Xinyuan Petrochemicals Co Ltd.

A subsidiary of China National Aviation Fuel Group Corporation, CAO is listed on the mainboard of the Singapore Exchange Securities Trading Limited.

 




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Sunday, August 18, 2013

SAUDI ARABIA: Saudi Aramco orders US$967 million worth of components for 4,000MW gas-fired power plant at Jazan

(EnergyAsia, August 19 2013, Monday) — Germany's Siemens said it has secured a large order of components for the construction of a 4,000MW gas-fired combined-cycle power plant in Saudi Arabia.

State energy firm Saudi Aramco placed the US$966.8 million order for the plant which is expected to start up in 2016 to power up the industrial city including a 400,000 b/d refinery in the south-western city of Jazan. Comprising five units, the Jazan power plant will be fuelled with gasified refinery residues that will help preserve the country's energy resources.

The plant's first two units will start up in the spring of 2016, with the rest to follow in the second half of 2017.

Siemens said it will supply 10 gas turbines, including six to be manufactured in Saudi Arabia, that are designed to use synthesis gas (syngas) and diesel fuel for what will be one of the world's largest power plants.

The German firm, which said the SGT6-5000F gas turbine model has a successful track record of more than nine million operating hours, will also supply five steam turbines, 15 generators and 10 heat recovery steam generators.

"This is not only the largest order to date for Siemens from Saudi Aramco, but also a significant milestone in our successful cooperation with the biggest oil company in the world, and is proof of the success of our regionalization strategy," said Michael Suess, CEO of Siemens' Energy Sector and member of the Siemens AG managing board.

Nabil Aldabal, managing director of Aramco Overseas Company, a Saudi Aramco subsidiary, said:

"This new highly efficient combined cycle power plant is an important part of our major project in the new economic zone in Jazan, and for this we must have efficient and reliable technology. We are looking forward to working with Siemens on this strategic project."

Saudi Arabia, with its large oil and natural gas reserves, is the largest economy in the Gulf region with significant potential to grow demand for efficient fossil power generation. For the rest of the decade, the kingdom's power demand is projected to increase by six percent per year while its population is expected to increase from about 28 million to 34 million in 2020. The government is planning to increase the kingdom's installed power generation capacity from 67 gigawatts in 2012 to 140 gigawatts in 2020.

Siemens said it is investing in this growth market by constructing a facility in Dammam city to manufacture and service gas turbines and related equipment.





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Thursday, August 15, 2013

SINGAPORE: Sembcorp expands waste-to-energy capacity with S$250 million new steam production plant

(EnergyAsia, August 16 2013, Friday) — Sembcorp Industries said it plans to invest more than S$250-million to build a plant on Singapore that has the capacity to produce 140 tonnes per hour of steam using industrial and commercial waste while emitting 50% less carbon dioxide compared with a coal-fired facility. (US$1=S$1.26).

Located on Jurong Island's Sakra sector, the two-boiler plant is slated to start up in 2016 and will use 1,000 tonnes per day of industrial and commercial waste collected by Sembcorp's solid waste management operations. That amount equals roughly 14% of the daily total tonnage of waste incinerated in Singapore.

The company said the project, its second waste-to-energy (WTE) project, is in line with its objective to offer "the best and most competitive solutions" to its petrochemical plant customers on Jurong Island while helping them reduce their carbon footprint.

The investment will be funded through a combination of bank borrowings and internal sources.

Sembcorp Industries Group President and CEO Tang Kin Fei said:

"This new energy-from-waste plant increases our supply of energy from alternative fuel. It will reduce our cost of energy production on Jurong Island and enable us to provide our customers a competitively priced, environmentally-friendly source of steam.

"Sembcorp is also taking the lead in supporting the government's efforts to promote a greener, more sustainable Jurong Island."

Ng Meng Poh, Sembcorp's executive vice president and head of utilities, said:

This new investment demonstrates Sembcorp's unceasing focus on offering the best solutions for our customers. It will provide a reliable supply of steam to serve their needs and takes our investment in facilities to serve Jurong Island customers to nearly S$3 billion. In addition, this facility will also be environmentally-friendly and help our customers to reduce their carbon footprint."

Sembcorp's first WTE project in Singapore started up last year using woodchips from construction and demolition waste to fuel a steam boiler on Jurong Island.

The company, which has also developed WTE and renewable energy plants In the UK and China, has decided to delay the construction of a second 400 MW cogeneration plant on Jurong Island amid signs that Singapore is facing an oversupply of power generation capacity.





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Wednesday, July 17, 2013

<<Adv>> "Corporate Gifts Promotion!" Monthly Newsletter

July 2013 Promotion

"Discover how our quality products and services will  solve ALL your sourcing needs for corporate gifts!"

 


 

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Sunday, July 14, 2013

SINGAPORE: KrisEnergy aims to raise S$270.8 million from listing to develop upstream assets

(EnergyAsia, July 15 2013, Monday) — The team that launched Singapore's most successful oil company in 2005 is back again to try raise S$270.8 million through a public listing. (US$1=S$1.28).

KrisEnergy Ltd will offer nearly 152 million shares at S$1.10 each, with 132.1 million shares marked for institutional and other sophisticated investors, and the remaining 19.9 million for public subscription. An additional 94.16 million shares has been placed with six cornerstone investors comprising Capital Guardian Trust Company, Capital International Inc, Capital International Ltd, Palang Sophon Offshore, Capital International Sarl and Keppel Corporation subsidiary Devan International.

Of the proceeds raised from the IPO, the four-year-old company said it plans to use S$76.6 million for acquisitions, S$142.2 million for capital expenditures, including the exploration, appraisal and development of existing assets and S$37.8 million for general working capital.

Describing itself as an independent upstream company focused on exploring, developing and producing oil and gas in Asia, KrisEnergy said it has built a portfolio of 14 contract areas in Indonesia, Thailand, Vietnam and Cambodia spanning the entire exploration-to-production life cycle.

Early this year, the company became a stakeholder and operator of G6/48 in the Gulf of Thailand, as well as acquired Tullow Bangladesh Ltd and its 30% working interest in and operatorship of Block 9 that holds an onshore producing gas field in Bangladesh. Both transactions are awaiting host government approvals and upon completion, the current asset portfolio will encompass 16 contract areas, of which the company will operate eight, in five countries.
Keith Cameron, KrisEnergy's CEO, said:

"We have spent the last few years successfully building our asset base and moving our discoveries up the development and value pipeline. The injection of new capital will allow us to continue pursuing our focused strategy of discovering hidden value in significant assets to bring oil and gas to market. We are committed to achieving sustainable growth and delivering value to all of our shareholders."

Mr Cameron along with business development director Richard Lorentz and exploration and production director Chris Gibson-Robinson were involved in Pearl Energy when it was listed on the Singapore Exchange in 2005 and acquired by the UAE's Aabar Petroleum Investments Company in 2006.

 


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Friday, July 12, 2013

SINGAPORE: Sinopec says company’s first lubricants plant outside China is key to global expansion

(EnergyAsia, July 12 2013, Friday) — Two years after it began construction, Sinopec, China's largest integrated energy and chemical group, has started up a large lubricants plant in Singapore, the first outside its home base, as it prepares for global expansion.

Located on a 242,811-sq m site in Tuas on the southwestern tip of the island, the plant has an initial annual capacity to produce 80,000 tonnes of lubricants and 20,000 tonnes of grease. The facility will also operate as Sinopec's regional services and logistics hub to better serve the needs of its customers in Southeast Asia, Australia and New Zealand as well as spearhead the company's expansion into the global lubricants market.

The plant was opened on July 11 Thursday by Pei Wenjun, general manager for Sinopec Lubricant (Singapore) Pte Ltd, at a ceremony attended by customers, employees and officials representing the Singapore government and the Chinese embassy in Singapore.

According to Mr Pei, the new plant will use one of the world's leading lubricant production equipment and processing technology, 90% of which are proprietary to Sinopec.

The plant forms part of Sinopec's growth strategy as it develops inhouse capabilities to make low-carbon high-value products for the world markets. The strategy calls for the company to focus on first developing markets in the Asia Pacific region, to be followed by building a chain of lubricant plants around the world and establishing a strong international sales network.

"The Sinopec Lubricant brand has become the face that most people in the energy market would associate companies under the Sinopec group with. So we are using this brand to spearhead the establishment of the Sinopec name internationally," said Mr Pei.

"The completion of the Singapore plant will further increase our visibility and influence around the world, besides helping to greatly enhance the international competitiveness of other Chinese lubricant brands in general."

As an example, it cites the rapid growth of subsidiary brand Sinopec Great Wall Lubricant in over 50 countries through the efforts of representative offices in the Middle East, Latin America, Australia, Africa and Southeast Asia.

General Manager Song Yun Chang said:

"As China's leading lubricant brand, Sinopec Great Wall Lubricant has set its sights beyond China. The completion and operation of the Singapore facility will allow Sinopec to build its international experience and credibility.

"To meet the increasing global demand for Chinese lubricant products, Sinopec will look towards investing and building more factories, undertake mergers and acquisitions and sub-contracting to establish its supply chain and service network.

"Our ultimate goal is for Sinopec is to establish an integrated business model for investment, production sales and management of our lubricant business, while striving to establish ourselves in the global lubricant sector."

In welcoming the plant's start-up, Yeoh Keat Chuan, managing director of the Singapore Economic Development Board, said it will add to the strength of the energy and chemicals sector, which accounted for 34% of the country's manufacturing output of more than S$100 billion in 2012.

"Lubricants companies are leveraging Singapore as a base to tap on growth opportunities in Asia. The Asia-Pacific region is the largest and fastest growing lubricants market, accounting for almost 42% of the global lubricants market in 2012. This region is expected to register the highest growth worldwide, to reach 17 million tons of lubricants consumed by 2017," he said.

"The lubricants industry also strengthens integration across the refining and marketing value chain. We have a strong lubricants ecosystem in Singapore, with top lubricants additives companies such as Chevron Oronite and Afton, and lubricants blending players such as Shell and Total being based here to serve the growing demand for lubricants in the Asia Pacific.

"Lubricants blenders in Singapore have the option of purchasing base oils, a key component of finished lubricants, from the local refineries and lubricant additives from Singapore-based manufacturers."

Png Cheong Boon, CEO of JTC Corp, Singapore's main industrial land developer and landlord, said the Sinopec plant is contributing to the start-up of a new cluster of energy and chemicals manufacturing plants in the Tuas South region to complement the existing well-developed hub on Jurong Island.

"JTC worked closely with Sinopec and other companies to plan and develop critical shared infrastructure, such as common jetty and pipeline corridor. These common infrastructure help companies to reduce their capital investments and operating expenses, and enable Singapore to optimise its limited waterfront land," he said.

Sinopec produces a wide range of lubricants including internal combustion engine oil, gear oil, hydraulic oil, grease, turbine oil, electrical insulating oil and compressor oil for use in most industries including power generation, automobile, machinery, metal works, mining, construction, shipping and oil and gas.

 


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Tuesday, July 9, 2013

"Corporate Gifts Promotion!" Monthly Newsletter

July 2013 Promotion

"Discover how our quality products and services will  solve ALL your sourcing needs for corporate gifts!"

 


 

Have a marketing campaign or event upcoming?

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This month we are having a promotion across our range of USB Flash Drives(1GB to 64GB capacity).

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Monday, July 1, 2013

SINGAPORE: Vopak chairman thanks customers, partner and local employees in speech on 30th anniversary celebration

(EnergyAsia, July 2 2013, Tuesday) — The following is an edited version of a speech by Royal Vopak chairman and CEO, Eelco Hoekstra, on the occasion of its Singapore subsidiary's 30th anniversary celebration last week.

"In 1980, what started as an idea to predict future opportunities towards the next decade, materialised into the founding of Vopak in Singapore. The brainchild of the forward thinking Carel van den Driest – previous Chairman of Van Ommeren – Sebarok terminal, commissioned in 1983, became Vopak's first terminal in Asia and the first third-party oil storage facility in Singapore.

Singapore's prime location at the crossroads of Asia, its free market economy, transparency, visionary master-planning and openness to foreign investments provided the ideal foundation for a synergistic relationship between Singapore and Vopak (then Van Ommeren).

This is evident in our growth story – from one terminal to four terminals with total capacity at over three million cubic meters spread across western Singapore, in what is now one of the world's major energy hubs. Today, we continue to seek avenues for growth, with the latest addition being the 100,000 cbm industrial storage in Banyan, which was recently commissioned.

Thirty years on, Singapore and Vopak have created a 'pearl' of a partnership. One solidified by the ongoing support and commitment of our customers, the Singapore government, our partners, contractors and notably, our dedicated employees.

Singapore for many of my colleagues, their families and for me has been a special experience. Personally, when appointed CEO three years ago, I left heavy heartedly – as of the places we have lived as a family, Singapore felt most like home, and is in fact considered our second home.

For Vopak, Singapore will continue to be our strong regional base – amongst our other regional hubs in Rotterdam, Houston and Fujairah – and also the "launch pad" for our expansions in Asia. We are optimistic that Vopak Terminals Singapore (VTS) will continue to serve as a model and the nucleus for our future growth in the Asia region.

With Asia being the driving engine for global growth, energy demand will continue to rise. Singapore is well positioned to capitalise on the opportunities presented by this growth in energy demand.

Vopak remains confident of the energy and chemicals sector in Singapore.

Today's celebration would not be possible without the people who have journeyed with us over the last 30 years.

First to our partner, PSA International, and its then Deputy General Goon Kok Loon who was instrumental in making VTS a reality We appreciate your enduring support over the last 30 years and very much look forward to continuing our partner collaboration with you.

To our customers, you are the reason we are here today. Your loyalty over the past decades has not gone unnoticed. Thank you for the past 30 years, we look forward to continuing on our journey of delivering excellent service in a safe manner with you.

 


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Sunday, June 30, 2013

INDIA: Sembcorp’s jointly-owned power plant secures second coal supply deal

(EnergyAsia, June 28 2013, Friday) — Singapore's Sembcorp Industries said its joint venture firm, Thermal Powertech Corporation India (TPCIL), has secured a 20-year deal for coal supply to its 1,320MW power plant now under construction in Andhra Pradesh state.

Mahanadi Coal Fields, a subsidiary of state-owned Coal India, has agreed to provide an annual supply of 2.1 million tonnes of domestic coal from the second half of 2014 when the power plant comes onstream.

In February 2012, TPCIL secured its first coal supply contract with Indonesia's PT Bayan Resources for one million tonnes per year for 10 years.

"Together, both contracts will supply approximately 60% of the plant's total coal requirement. TPCIL is currently working with the relevant authorities in India to secure another fuel supply agreement for the plant by the later part of this year," said Sembcorp, which owns 49% of TPCIL through subsidiary Sembcorp Utilities.

Gayatri Energy Ventures, a wholly owned subsidiary of India's Gayatri Projects, owns the majority 51% of TPCIL, which is building the plant in Krishnapatnam in Andhra Pradesh's SPSR Nellore District.

Sembcorp said the latest coal supply agreement will enable TPCIL to supply power to thousands of consumers in Andhra Pradesh and play an essential role in helping to reduce the severe shortage of power supply in the state and southern India.

The plant will also apply supercritical technology which allows for enhanced efficiency, thereby reducing emissions of carbon dioxide and other pollutants by consuming less fuel per unit of electricity generated compared to conventional sub-critical coal-fired generating units.

According to TPCIL, the project will be implemented in two phases, with the first unit of 660 megawatts to start up by mid-2014, and the second 660MW unit about six months later.

 


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Monday, June 24, 2013

CHINA: Sinopec in talks with Petrobras to build 300,000 b/d refinery in Brazil

 

(EnergyAsia, June 21 2013, Friday) — Brazil's state energy firm Petrobras said it has signed a letter of intent with China Petroleum and Chemical Corp or Sinopec build a 300,000-b/d oil refinery in South America's largest country.

Petrobras, which is looking to build four similar-sized refineries to meet rising domestic fuel demand, said the two companies will study the feasibility of establishing a joint venture to build and operate the proposed US$20 billion Premium Refinery 1 in the northeastern state of Maranhao.

Petrobras, which is targeting to raise Brazil's 1.9-million b/d refining capacity to three million b/d by 2020, has also signed an agreement with South Korea's GS Energy to study the feasibility of building a 300,000 b/d in another part of the country.




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MARKETS: Oil tanker outlook still hurt by overcapacity, says Drewry Maritime Research

(EnergyAsia, June 21 2013, Friday) — Despite a projected 5% p.a. rise in demand through 2018, the oil tanker market faces a struggle to recover as it "is still blighted by surplus capacity", according to the latest findings by UK-based consultant Drewry Maritime Research.

"Prompt excessive ordering" could overwhelm the projected healthy 5% growth rate that will take tanker demand to 420 million dwt by 2018, said Drewry's latest Tanker Forecaster report.

Tanker owners might catch a break from 2014 if the existing phase of overcapacity eases, with improved demand and some slowdown in supply growth. But this is not assured as investors might be tempted to make new orders given the current attractive prices for new builds.

"With seasonally weak demand in the second quarter, the short-term view for freight rates does not look positive. Global oil demand declined by 1% in the first quarter of the year to 89.9 million b/d, although some recovery in demand is likely in the second half of the year based on seasonal demand, which will push overall tonnage demand higher by 2% in 2013," said Drewry.

A continuing supply of fresh tonnage through the year could put a lid on prices.

With 46 million dwt already added since 2010 and a further 17.1 million dwt (4%) due this year, utilisation will be poor and freight rates will not show any noticeable signs of recovery.

Longer term, the sector could be helped by an order slowdown and perhaps a gradual recovery of the world economy, with utilisation due to improve from 2014 along with a shift in trade patterns to support long voyage rates.

Drewry expects crude oil shipping from the main producing countries in Latin America, Africa and the Middle East to refineries in Asia to increase gradually, but this will be somewhat offset by weak shipping demand to the US and Europe. European refineries are experiencing shrinking margins while those in the US face rising domestic production and little expansion.




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Wednesday, June 19, 2013

LNG exports will cause “significant” natural gas price volatility at Henry Hub, consultant predicts

(EnergyAsia, June 20 2013, Thursday) — Natural gas prices at Henry Hub will experience "significant" price volatility when the US starts exporting liquefied natural gas, said New York City-based consultant PIRA Energy Group.

In a study, entitled "Liquefied Henry Hub: The Repercussions of North American LNG Exports at Home and Abroad," PIRA predicts the volatility will grow as more export capacity is approved and built.

While much of the market's attention is now on how a Henry Hub link might lead to lower gas prices abroad, PIRA said "an equal, if not greater, concern" should be placed on how global markets will affect US domestic gas pricing.

With US LNG exports forecast to crest at around nine billion cubic feet/day (bcf/d) or 91 billion cubic metres/year (bcm/y) by 2025, including eight bcf/d (81 bcm/y) from the Gulf, the call on domestic gas production will account for five percent to 15% of the total.

"Depending on the degree to which this new form of demand is indifferent to North American market developments, the Henry Hub price ramifications will be substantial, at least in the short-term," said study author Mickey Kwong.

The PIRA study addresses the multitude of gas price drivers around the world that will influence Henry Hub pricing when US begins exporting LNG later this decade. The study examines issues ranging from Russian gas production and seasonal gas use in a storage-short Europe to Japanese nuclear policy and bearable gas prices in Asia that will have a direct impact on Henry Hub prices on a daily basis much the way issues in the Mideast or West Africa influence crude oil prices.

Price volatility for Henry Hub will also be influenced by LNG-related changes in the supply/demand balances within North America. The timing of new supply, combined with domestic gas demand growth from low Henry Hub prices and the stability of LNG production, add significant layers of complexity to the movement of Henry Hub prices.

Extended periods of time will emerge when North American LNG exports are "in the money" and "out of the money" in the global gas market context. Exactly how lifters of North American LNG react to these external market forces will work their way back into Henry Hub pricing.

"The changing dynamic in the market is that the fairly insular world of North American gas markets and Henry Hub pricing will be immediately exposed to supply, demand, inventory, and pricing issues in other parts of the world," said Ira Joseph, executive director of PIRA's Global Gas Group.

"These factors were previously insignificant or ignored entirely by North American gas trade."

 


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