Iraq's oil minister has urged oil and natural gas producers operating in the country to continue increasing output next year, the oil ministry said in a statement on Sunday.

Jabar al-Luaibi's comments came as OPEC nations are trying to implement an agreement to curb oil output for the first time since the 2008 financial crisis, in order to push up crude prices.

The ministry's statement quoted remarks Luaibi made to a meeting of Iraq oil industry executives in the southern oil city of Basra to review the ministry's oilfields' development plans.

It made no mention of the decision by the Organization of the Petroleum Exporting Countries on Sept. 28 to reduce output to a range of between 32.50 million barrels per day and 33.0 million bpd.

OPEC's production stood at around 33.6 million bpd in September, according to a Reuters survey that put Iraq's output at 4.43 million bpd.

The minister "has affirmed the need to proceed forth with increasing oil and gas production through enhancing the national effort and those of the licensed companies for the remainder of 2016 and also for 2017," the statement said.

Foreign companies' oil output targets "should be reached within the assigned periods," the ministry quoted Luaibi as saying.

The ministry also aims to increase associated gas output by adding 350 to 450 million cubic feet a day to the nation's production in 2017, Luaibi said.

Natural gas output levels in Iraq's southern region are tied to crude production levels as the two are produced from the same reservoirs.

http://www.reuters.com/article/us-iraq-energy-oil-gas-idUSKCN129061

The oil ministers of Iran and Iraq will not attend informal talks between OPEC and non-OPEC producers in Turkey this week, sources familiar with the matter said on Sunday.

OPEC sources and the Russian energy minister said on Thursday that ministers from the two countries would be among representatives of OPEC states at the meeting in Istanbul, which is hosting the World Energy Congress.

http://www.reuters.com/article/oil-opec-istanbul-idUSL8N1CF0NV

Essar Group, controlled by India’s billionaire Ruia brothers, is nearing a final agreement to sell control of its refinery unit to Russian energy giant Rosneft PJSC and commodities trader Trafigura Group Pte, people with knowledge of the matter said.

The Indian conglomerate aims to sign a binding deal in the next two weeks to sell 49 percent of Essar Oil Ltd. to Rosneft, according to the people, who asked not to be identified because the information is private. Trafigura is also in advanced talks to buy a minority stake in Essar Oil, the people said. The suitors have been discussing a valuation of about $6.5 billion for Essar Oil, India’s second-largest private refiner, one of the people said.

The board of Rosneft, which signed a non-binding pact on the potential purchase in July 2015, plans to meet Oct. 13 to approve the transaction, according to the people. Essar is considering eventually selling down most of its remaining interest in the refinery business and may keep only a residual stake of 5 percent or less, the people said.

Russia has been cementing energy ties with India, which is expected to surpass Japan as the world’s third-largest oil user this year and be the fastest-growing crude consumer through 2040, according to International Energy Agency estimates. A conclusion to the sale would help Essar Group, which has been grappling with debt after an $18 billion spending spree, generate funds to repay lenders.

‘Huge Population’

“Global players want to bet heavily on the Indian market because India has a huge population as well as rising income,” Jagannadham Thunuguntla, head of fundamental research at Hyderabad-based Karvy Stock Broking Ltd., said by phone Friday. “Its energy needs are growing rapidly both at the consumer level and industry level.”

Final terms of the deal are currently being negotiated and an agreement could still be delayed, according to the people. Representatives for Essar, Rosneft and Trafigura declined to comment.

Essar Oil runs the Vadinar refinery in the western state of Gujarat, which can process about 400,000 barrels a day. Most of the refinery’s output is sold locally, either through its own outlets or to government-owned fuel retailers. In July last year, Rosneft signeda pact to supply Essar Oil about 200,000 barrels of crude per day over 10 years.

The deal being discussed includes the refinery as well as the Vadinar port and more than 2,000 retail gas stations, according to the people. The initial transaction won’t include a power plant serving the refinery, which could be transferred later after getting necessary approvals, the people said.

http://www.bloomberg.com/news/articles/2016-10-07/essar-said-to-near-binding-deal-on-sale-of-6-5-billion-refiner

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Australia’s LNG export volumes are expected to increase by 40 percent year on year to 51 million tonnes in fiscal 2016–17, according to the country’s Department of Industry, Innovation and Science.

An additional 15 million tonnes of LNG export capacity is expected to be completed by mid- 2017, bringing total operational capacity to around 66 million tonnes, the department said in its latest report named Resources and Energy Quarterly.

This includes the second and third trains at Chevron’s giant Gorgon project in Western Australia, and the second train at the ConocoPhillips-operated Australia Pacific LNG project in Queensland.

The value of Australia’s LNG exports is forecast to increase by 41 percent to $23 billion in fiscal 2016–17, supported by higher LNG prices and export volumes, the department said in the report.

Increased exports to Japan, South Korea and China are expected to drive the rise in Australia’s LNG export volumes.

“While prospects for total import growth in Japan and South Korea are subdued, Australian producers are expected to capture an increasing share of both country’s imports with the commencement of a number of long-term contracts over the outlook period.”

LNG export forecast revised down

The department said in the report that the forecast for LNG export volumes in fiscal 2016–17 has been revised down by 2 million tonnes from the June edition.

The revised forecast reflects a conservative view of the ramp up of LNG exports at several projects in Australia.

“Statements from Santos executives in August indicate that GLNG may operate both trains below capacity for some time, with company releases noting that the low price environment is restricting capital expenditure and that the cost of third party gas has risen,” the report said.

Prices rise

After declining over the first five months of 2016, prices for Australian LNG delivered to markets in North East Asia rose in June, the department said.

The average price of LNG into Japan, Australia’s largest market and the world’s largest importer, increased by 18 percent to US$6.51 a gigajoule, it said.

“The recent uptick in prices reflects the effect of the oil price rally in early 2016, with most LNG delivered into Asia sold under contracts linked to the Japanese Customs-cleared Crude (JCC) oil price, by a time lag of three to four months.”

The North East Asian spot price has increased over the past few months, averaging $5.80 a gigajoule in August, but remains around historic lows, as a result of growing excess capacity in the market.

“Prices for LNG delivered to North East Asia are expected to rise in the September quarter before flattening out towards the end of the year, as the lagged response of LNG contract prices to recent oil price movements plays out.”

LNG contract prices are then expected to rise further in 2017, consistent with the forecast recovery of oil prices to $55 a barrel. In contrast, spot prices are forecast to remain low, as the entry of new capacity in the US and Australia ensures that the market remains well supplied, the department said.

“The implications of a potential divergence between contract and spot LNG prices remain to be seen, with one scenario that buyers begin to reduce LNG purchases to take-or-pay levels and seek to buy larger volumes on the spot market.”

http://www.lngworldnews.com/australia-lng-exports-to-rise-40-percent-in-2016-17/

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In a fresh attempt to contain a fall in oil production, Venezuela's state-owned PDVSA announced two alliances with Chinese and Bulgarian companies to reactivate 931 wells in Lake Maracaibo, with the objective of adding 50,600 b/d and 43 MMcf/d of natural gas to output in the short term.

"China-based Shandong Kerui Group Holding Co. will repair 624 wells, with financing of $30 million provided by the Chinese company," PDVSA said Thursday.

"Also, PDVSA and the Bulgarian-Venezuelan Consortium Aleco are discussing reactivating 307 wells in Lake Maracaibo, with financing of $100 million that would come from the Bulgarians," PDVSA added.

In September, PDVSA President Eulogio Del Pino, who also is oil and mining minister, said the company will drill 480 wells in the Orinoco Belt in the next 30 months, with the participation of international companies such Schlumberger and Horizontal Well Drillers, as well as Venezuela's Y&V, Halliburton and Baker Hughes.

"The goal is to increase production by 250,000 b/d with an investment amounting to $3.2 billion," Del Pino said in September.

On Monday during an interview broadcast by state television, Del Pino said that the 'well drilling and rehabilitation projects in Lake Maracaibo as well as in the Orinoco Belt are structured with a contract scheme so that financing is paid with future crude output."

PDVSA's growing debts with its oil field service providers is paralyzing upstream development. Of the 373 wells drilled last year, 51% were contracted to international service companies, which have gradually been halting work due to non-payment.

"There is a sustained decline of production of light crude, which has not been compensated for with production of heavy and extra heavy crudes," a source in PDVSA's exploration and production division said on condition of anonymity.

CONFLICTING PRODUCTION FIGURES

On Thursday, the Oil and Mining Ministry said that Venezuela's crude oil production in September averaged 2.334 million b/d, up 0.2%, or 6,000 b/d, from 2.328 million b/d in August.

The increase was attributed to greater output from the Orinoco Belt, the ministry said in a release Thursday.

But over the longer term, Venezuelan oil production has been falling steadily since January 2015, when it totaled 2.812 million b/d.

Contrary to the Venezuelan report, S&P Global Platts' latest OPEC survey showed Venezuela averaged 2.1 million b/d of crude oil production in September, a 20,000 b/d decrease from August.

The production of light crude fell to 374,000 b/d in 2015 from 416,000 b/d in 2014, according to official data. The figures for 2016 are not available yet, but output continues to decrease.

The most pronounced declines occurred in the light crude fields in western Venezuela, especially those located in the Lake Maracaibo basin, the PDVSA E&P source said.

Declines in eastern Venezuela have been less pronounced. But still, output at El Furrial and Pirital, between Monagas and Anzoategui states, continues to show signs of depletion, the source said.

To make up for the growing deficit of light crude, PDVSA has since the end of 2014 been importing cargoes of light crude from Nigeria, Algeria, Russia and the United States to process at refineries in Venezuela and Curacao for its export mixtures and for upgraded extra heavy crudes.

But PDVSA continues to face cash flow problems, and imports have slowed. The lack of light crude supply also hurts PDVSA's diluted crude oil (DCO) production, which in turn means less revenue on exports and compounds the company's cash problems.

"Assuming an average weighted blending ratio of around 22%/barrel and assuming there's broadly between 50,000-100,000 b/d of diluent material they can't get their hands on, that's around 250,000-500,000 b/d of DCO at risk," said FGE analyst Thomas Olney in an email.

LACK OF LIGHT CRUDE IMPACT

In August, due to a lack of feedstock, PDVSA shut two crude distillation units at its leased 335,000 b/d refinery on Curacao island.

Light crude imports from the US to Curacao have been falling for several months and dropped to zero in July, according to the latest US Energy Information Administration data.

PDVSA has also had to reduce rates at its domestic refineries in Venezuela due partly to a shortage of light crude.

"We have reports of low availability of light crude, which is an important component of the crude diet processed at the refineries," said oil workers union leader Ivan Freites.

"PDVSA maintains processing levels below 50% at its refineries because restarts at basic units are months behind schedule and there is not enough crude to process," Freites said.

PDVSA's largest refinery, at Amuay, is operating at 49.6% capacity or 320,000 b/d.

The Cardon refinery is operating at 38.7% capacity or 120,000 b/d, according to a technical report seen by Platts on Thursday. The two refineries, with 645,000 b/d and 310,000 b/d maximum capacities respectively, comprise the Paraguana Refining Center, or CRP, in northwestern Venezuela.

PDVSA's 140,000 b/d El Palito refinery had been shut since April, and the company is conducting maintenance there through October.

Also, PDVSA's FCC unit at the 187,000 b/d Puerto La Cruz refinery has been closed since May 1.

http://www.platts.com/latest-news/oil/caracas/venezuela-makes-new-attempt-to-arrest-oil-production-27683230

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Asian liquefied natural gas (LNG) gas prices reached a nine-month high this week as demand from India, Japan and South Korea underpinned sentiment.

LNG for November delivery were about $6.20 per million British thermal units (mmBtu), 10 cents higher than last week, as supply-demand balances for the rest of the year appear tighter, said three traders who participate in the market. That is the highest since the week ending Jan. 8.

Higher crude prices are also lending support to LNG values. ICE Brent futures have gained 3.3 percent to above $52 a barrel this week following the Organizations of the Petroleum Exporting Countries announced plans to curb production.

LNG demand from North Asia remains firm as nuclear power stations in Japan and South Korea that have been taken offline are expected to stimulate demand for the super-cooled fuel.

Japan's Kyushu Electric Power Co shut the 890-megawatt No. 1 reactor at its Sendai nuclear plant on Thursday for planned maintenance that is expected to last at least two months, although a restart could be hampered by anti-nuclear local authorities.

South Korea has also shut multiple nuclear power plants for maintenance and as a precaution after the country suffered its biggest earthquake ever in September.

"We expect demand to continue to be strong in Korea and Japan. China is also looking for more cargoes," a Malaysia-based LNG trader said.

The best bids from Asian buyers were pegged at the low-$6 per mmBtu range, while offers were in the mid- to high-$6 per mmBtu range, the traders said.

"It is still a buyers' market, but for November and December cargoes, sellers can decide who they want to sell to," a Singapore-based trader said, adding that the market may rise due to demand from India and North Asia.

Indian gas firm GAIL closed a tender seeking a November and a December cargo early this week. The results were not immediately known, but traders expect the firm to have appetite for more cargoes.

Angola LNG, which closed its sell tender for its Oct. 4-6 loading cargo on Wednesday, is likely to have awarded the tender because of its prompt loading dates. The bids are valid until Friday.

Despite firm Asian demand, gains in spot prices could be capped by new production from the Australia Pacific LNG (APLNG) project that is due to start-up this quarter, and returning U.S. supplies. Cheniere's Sabine Pass is scheduled to come back from maintenance around Oct. 17, a source close to the matter said on Thursday.

The Australian project is starting up its second production line, an APLNG spokesman said on Thursday, with traders expecting a first shipment to be loaded later this month.

http://uk.reuters.com/article/global-lng-idUKL3N1CD1MM

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A worker checks the valve gears in a natural gas control centre of Turkey's Petroleum and Pipeline Corporation, 35 km (22 miles) west of Ankara, January 5, 2009. 

Moscow and Ankara have resumed talks on the price of Russian gas for Ankara, Russian Energy Minister Alexander Novak said in an interview with Turkey's Hurriyet newspaper.

A gas price dispute between Turkish pipeline operator Botas and Russia's state gas producer Gazprom led to Botas launching international arbitration proceedings against Gazprom in October 2015.

The row had led to talks on their joint Turkish Stream natural gas pipeline project to be suspended earlier that year.

In November 2015, most contact between Russia and Turkey were halted after the downing of a Russian fighter jet by Turkish military, although since then Moscow and Ankara have made significant progress towards restoring relations.

"Talks about gas price have resumed, I hope the sides will come to a common position," Novak said, according to the text of the interview published on the Russian Energy Ministry's website on Sunday.

Botas says it was promised a discount on the price of gas in February 2015 but that Moscow never signed off on the deal.

Novak said he expected the first hearing in the case to be held in 2017.

"It is possible that by then Russia's Gazprom Export and Turkey's Botas will be able to resolve their disagreements related to the price of gas," Novak said.

Novak also told Turkey's state-run Anadolu Agency that an intergovernmental agreement on Turkish Stream was almost complete and would be finalised before the meeting of the presidents of Turkey and Russia in Istanbul this week.

Novak is due to attend the World Energy Congress in Istanbul this week, and plans to meet representatives of key OPEC producers and OPEC secretary general for informal talks on oil output.

http://www.reuters.com/article/us-russia-turkey-gas-idUSKCN1290NH

Norway has avoided strike action by unions at three plants serving the country’s energy industry after a deal was agreed.

The move means industrial action which could have cut gas supplies to Britain has now been avoided.

The deal was reached after extending talks for three hours past a midnight deadline.

A strike could have impacted deliveries of liquefied natural gas (LNG) globally.

Jan Hodneland, a negotiator from the oil industry, said: “We are happy that the parties have agreed during the mediation on a new collective agreement for the next two years.”

Altogether 338 members of the SAFE union were set to go on strike at Statoil’s Melkoeya LNG plant, Shell’s Nyhamna natural gas processing plant and ExxonMobil’s Slagen refinery terminal if the wage talks had failed.

The Melkoeya plant turns gas from the Arctic Snoehvit field into LNG, while Nyhamna can supply up to 20 percent of Britain’s natural gas demand from the giant Ormen Lange field offshore in Norway.

https://www.energyvoice.com/oilandgas/north-sea/121277/last-minute-talks-end-norway-strike-threat/

OAO NOVATEK reported today preliminary operating data for the nine months 2016.

NOVATEK's marketable production totaled 49.95 billion cubic meters (bcm) of natural gas and 9,387 thousand tons of liquids (gas condensate and crude oil), resulting in a slight decrease in natural gas production by 150 million cubic meters, or by 0.3%, and an increase in combined liquids production by 2,852 thousand tons, or by 43.6% as compared with the nine months 2015.

The Company processed 9,356 thousand tons of unstable gas condensate at the Purovsky Processing Plant, which represented a 7.6% increase as compared with the corresponding volumes processed in the nine months 2015.

NOVATEK processed 5,197 thousand tons of stable gas condensate at the Ust-Luga Complex, which was 3.0% higher than the volumes processed at the facility in the nine months 2015. Preliminary nine months 2016 petroleum product sales volumes aggregated 5,211 thousand tons, including 3,247 thousand tons of naphtha, 774 thousand tons of jet fuel, and 1,190 thousand tons of fuel oil and gasoil. Export sales of stable gas condensate amounted to 1,069 thousand tons.

As at 30 September 2016, NOVATEK had 2.46 bcm of natural gas and 426 thousand tons of stable gas condensate and petroleum products in storage or transit and recognized as inventory.

NOVATEK's marketable hydrocarbon production including share in production of joint ventures:

                                             9M 2015       9M 2016       Change,%
Natural gas, bcm                 50.10           49.95              -0.3%
Liquids, thousand tons      6,535           9,387             43.6%

http://www.oilvoice.com/n/NOVATEK-reports-preliminary-operating-data-for-the-first-nine-months-of-2016/ef340bd7f28c.aspx

The Australia Pacific liquefied natural gas (LNG) plant, run by ConocoPhillips , confirmed on Monday that production had begun in the second of its two units.

"The second train is up and running, enabling our LNG Facility on Curtis Island to deliver commercial quantities of LNG at sustained output from both trains," Australia Pacific LNG Chief Executive Page Maxson said in a statement.

APLNG, a 9 million-tonnes-a-year project co-owned by ConocoPhillips, Origin Energy and China's Sinopec , is among three coal seam gas-to-LNG plants to have opened on Curtis Island off Australia's east coast over the past two years.

APLNG did not say when it would ship its first cargo from the second production train, but traders say it is due in the second half of October. The plant has loaded 47 cargoes since starting up last December.

http://www.reuters.com/article/us-iraq-energy-oil-gas-idUSKCN129061

Subsidiaries of U.S. oil company ConocoPhillips have sued Venezuelan state oil company PDVSA in a Delaware court, according to a court filing, accusing it of fraudulent operations involving its U.S. subsidiary Citgo.

ConocoPhillips said PDVSA operations, including an ongoing bond swap that uses shares in Citgo Holding Inc as collateral, are part of an effort to prevent Conoco from collecting compensation in a dispute over a 2007 nationalization of its Venezuela holdings.

ConocoPhillips has for nearly a decade been pursuing a case against Venezuela in a World Bank tribunal to obtain billions of dollars in compensation for the 2007 takeover of its Venezuela assets by late socialist leader Hugo Chavez.

The tribunal known as ICSID in a partial ruling in 2013 said that takeover was illegal.

The U.S. company in an Oct. 6 filing cited numerous operations involving Citgo, including an attempt to sell it in 2014, a debt offering that financed dividend payments to PDVSA, and most recently a bond swap operation that uses Citgo Holding as collateral.

"The purpose behind each of these transfers is the same: to remove assets from the United States to Venezuela and/or to encumber assets in the United States, with the intent to hinder, delay or defraud PDVSA's and Venezuela's arbitration award creditors, including ConocoPhillips," it said in the document.

ConocoPhillips says Venezuela has also sought to protect its assets from being seized in any of some 20 arbitration cases filed by companies ranging from U.S. oil giant Exxon Mobil to small Canadian mining company Crystallex.

Neither PDVSA nor a U.S.-based lawyer who represents it immediately responded to request for comment.

It was not immediately clear when a decision was expected.

http://www.reuters.com/article/venezuela-pdvsa-debt-conocophillips-idUSL2N1CD0LD

Explorers added oil rigs in the U.S. for a sixth consecutive week after OPEC’s pledge to cut output triggered a crude market rally, allowing producers to lock in higher prices with hedge contracts.

Rigs targeting crude in the U.S. rose by 3 to 428, adding to the largest level of work since February. Producers haven’t pulled back activity since the end of June. Natural gas rigs fell by 2 to 94 this week, while miscellaneous rigs rose by 1 to 2, bringing the total for oil and gas up by 2 to 524. Despite the overall activity boost, none of the four largest oil basins added rigs.

"Companies are looking at areas that are under-explored or under-developed," James Williams, president of WTRG Economics in London, Arkansas, said Friday in a phone interview. "But what we’re going to see is continued growth in the major oil plays."

Oil breached $50 a barrel for the first time since June this week after the Organization of Petroleum Exporting Countries agreed to the first production cut in eight years. By resuming its policy to balance the market, the group threw a “lifeline” to U.S. shale firms and prompted them to hedge “in droves,” Harry Tchilinguirian, head of commodity research at BNP Paribas SA in London, said last week.

“Every time prices get above the $50 range we see a lot of activity coming in from producers selling into the rally,” said Hamza Khan, an analyst at ING Bank NV in Amsterdam.

Production Delcine

Crude output fell by 30,000 barrels a day to 8.47 million last week, the Energy Information Administration reported Wednesday.

The oil price recovery from a 12-year-low in February prompted producers to begin returning parked rigs to service after idling more than 1,000 rigs since the start of last year. West Texas Intermediate, the U.S. benchmark crude, fell 1.4 percent to $49.73 at 1:15 p.m. on the New York Mercantile Exchange.

"If the oil price is near current levels two months from now, there’s going to be a significant growth in oil based off of the $50 price we’ve seen," Williams said. "So you’ll also see more oil drilling come November and December."

http://www.bloomberg.com/news/articles/2016-10-07/shale-explorers-boost-activity-further-after-opec-s-lifeline

Sanchez Production Partners LP today announced that the Partnership has executed definitive agreements with Sanchez Energy Corporation pursuant to which the Partnership anticipates:

SPP will acquire Sanchez Energy's 50% interest in Carnero Processing, LLC for an initial payment of approximately $47.7 million in cash and the assumption by SPP of remaining capital commitments to Carnero Processing, which are estimated at approximately $32.3 million;
SPP will acquire certain production assets, located in South Texas, from Sanchez Energy for total consideration of $27 million, prior to normal and customary closing adjustments (the 'Production Asset Transaction'); and
SPP will obtain an option to acquire a lease for a tract of land leased from the Calhoun Port Authority in Point Comfort, Texas.

CARNERO PROCESSING TRANSACTION

Carnero Processing is currently constructing a cryogenic natural gas processing plant in La Salle County, Texas which is expected to be operational in early 2017 (the 'Raptor Plant'). The Raptor Plant will be connected to Sanchez Energy's Catarina asset in the Eagle Ford Shale in South Texas via the Carnero Gathering System, which is 50% owned by SPP through Carnero Gathering, LLC ('Carnero Gathering').

Carnero Processing and Carnero Gathering, joint ventures that are 50% owned and operated by Targa Resources Corp. (NYSE:TRGP) ('Targa'), have firm capacity, fixed fee agreements with Sanchez Energy for 125,000 Mcf/d of plant processing and associated pipeline capacity for five years. Pursuant to the agreements, Sanchez Energy has dedicated its Catarina acreage and all production developed at the asset to the joint ventures during a 15 year term. Sanchez Energy also has the option to deliver additional volumes and commit additional acreage to the Raptor Plant as production increases. Sanchez Energy plans to spend approximately two-thirds of its 2016 drilling and completion budget at Catarina, and considers the asset a key part of its development focus and growth strategy.

PRODUCTION ASSET TRANSACTION

The Production Asset Transaction includes working interests in 23 producing Eagle Ford wellbores located in Dimmit and Zavala counties in South Texas together with escalating working interests in an additional 11 producing wellbores located in the Palmetto Field in Gonzales County, Texas (the location of SPP's first Eagle Ford acquisition, which closed in March 2015). The Production Asset Transaction is expected to add approximately 700 Boe/d of production, on average, in 2017. The estimated proved reserves from the producing wellbores is approximately 2,136 MBoe, of which 73% is oil, 13% natural gas liquids, and 14% natural gas. Subject to the terms and conditions of its credit agreement, the Partnership intends to execute hedges for up to five years on the incremental production in conjunction with transaction closing.

PORT COMFORT LEASE

The Port Comfort Lease would provide the Partnership with a strategic location for the intended construction of a marine crude storage terminal with a joint venture partner, which is expected to be completed in early 2017. Once complete, the terminal is expected to include 350,000 shell barrels of storage capacity.

http://www.oilvoice.com/n/Sanchez-Production-Partners-executes-agreements-to-acquire-midstream-and-other-assets-in-South-Texas/5f45f909ce91.aspx?utm_source=twitterfeed&utm_medium=twitter&utm_campaign=Feed%3A+OilvoiceHeadlines+%28OilVoice+Headlines%29

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NuBlu Energy starts construction work on LNG plant in Louisiana, US

NuBlu Energy has announced that it has started building an LNG plant along the Mississippi River in Port Allen, Louisiana, US.

The plant will support high-horsepower fuelling applications, such as rail, marine, long haul transportation, power generation, gas interruption, asphalt and other energy markets.

The facility will have an initial start-up capacity of 30 000 gal./d, which will rise to 90 000 gal./d at total capacity. It will also feature a storage capacity of 100 000 gal., and will be able to load both LNG transport trailers and ISO containers. The plant is expected to become operational in 2Q17.

Cory Duck, General Partner, NuBlu Energy, said: “This project represents the inauguration of a new direction for the LNG energy market. By ‘making LNG local’, NuBlu will foster the growth of LNG consumption for all current and future consumers of this clean energy fuel. Our patented process allows the production of LNG at a fraction of the cost per gallon of other existing liquefaction technologies and our modular design allows the facilities to be deployed at a relatively low capital outlay.”

Josh Payne, General Partner, NuBlu Energy, added: “Our site selection process was intense. We wanted to be positioned to meet the demands of the emerging marine market for both brown water and blue water fuelling and we absolutely believe we have achieved that goal.”

https://www.lngindustry.com/liquefaction/07102016/nublu-energy-starts-construction-work-on-lng-plant-in-louisiana-us/