Sonatrach (Algeria) signs 12 bcm/year gas contracts with Spain and Italy

The Algerian oil and gas company Sonatrach has announced a nine-year gas supply contract with Spain for 9 bcm/year. Algeria is intensifying commercial relations with Europe, as Gas Natural Fenosa renewed its gas supply agreement with Sonatrach until 2030 in June 2018. Sonatrach currently supplies around 9.8 bcm/year to Gas Natural Fenosa.

In addition, Sonatrach has signed a contract with the Italian oil and gas company Eni for 3 bcm/year of gas; the timeframe of the contract was not disclosed. Eni currently produces 100,000 boe/d in Algeria and operates 32 mining permits in the country.

Read more energy news

Energy Ministry pulls back on Euro-IV standard (Philippines)

The Philippines Ministry of Energy has announced that oil companies will be allowed to commercialize the more pollutant (and cheaper) Euro-II compliant automotive diesel oil, in an attempt to reduce the effect of rising international fuel prices on the national inflation rate. The motion shifts the country from a Euro-IV standard stated by the Environment department in 2016 to reduce pollution, since Euro-IV fuels have sulphur content of 50 ppm, compared to 500 ppm for Euro-II fuels.

The Ministry also ordered the National Oil Company-Exploration Corp to raise imports of low-priced oil products (especially diesel) to mitigate volatile oil prices.

Read more energy news

Tanzania plans to build gas pipeline to Uganda

The Tanzania Petroleum Development Corporation (TPDC) is looking for a contractor to carry out feasibility studies in order to assess current and future gas demand, potential gas buyers and the most economically viable route for a future gas pipeline that would connect Tanzania and Uganda.

Tanzania's natural gas reserves are estimated at 57 tcf (1,610 bcm) and are mostly located in offshore fields. The proposed gas pipeline would connect Dar es Salaam, Tanga near the Indian Ocean and Mwanza on Lake Victoria; it would then cross the border to Uganda.

The project is part of a cooperation energy agreement between the countries. In 2016, the countries agreed to build an oil pipeline to transport Uganda's land-locked crude oil to offshore markets.

Read more energy news

Shandong province (China) plans to cut coal capacity

The Environmental Protection Bureau (SEPB) of the Shandong province of China has released a 3-year plan against pollution. Among its main objectives, the SEPB plans to reduce coal production by 10% by 2020, from 156 Mt to 140 Mt, to boost gas consumption to 15.8 bcm by 2020 by increasing LNG imports and ensure that LNG reaches an 8% share of energy consumption in the province. In addition, it plans to raise gas imports from other provinces and targets a 70% share of clean energy sources in rural areas originates by 2020.

The plan is a part of a national strategy against pollution released by China’s State Council, whose main pillars are to cut coal consumption, incite electric vehicle sales and shut outdated steel and coke facilities.

Read more energy news

Mexico plans US$16bn investment to boost oil production, power generation

The Mexican government has unveiled a US$16bn investment plan to boost the domestic oil production, refinery capacity and hydropower generation. US$9.5bn will be invested in 2019 to upgrade existing refineries, build a new one for US$8.6bn in Dos Bocas in the state of Tabasco and increase oil exploration.

The country's crude oil output is flagging and declines to 1.88 md/d in the first half of 2018 down from 3.4 mb/d in 2005 and the government plans to add 600,000 bbl/d in the next two years to reach 2.5 mb/d. The main drivers behind this decline are the natural depletion of oil fields and a lack of investment. In 2018, Mexico imported 590,000 bbl/d of gasoline and 232,000 bbl/d of diesel from the Unites States while the domestic output has halved since 2013.

Read more energy news