Vol. 48, n° 22, September 29, 2009

Contents

Liquefied Natural Gas p2- ANGOLA : Soyo’s LNG plant may start exports in January 2012. -.AUSTRALIA : Gorgon’ partners announce full funding of the project. - AUSTRALIA : Gorgon EPCM contract awarded to Kellogg Joint Venture. - PAPUA NEW GUINEA : Talisman plans LNG plant. - PAPUA NEW GUINEA : Government declares not capacity to handle two LNG projects. p3- JAPAN : NYL Line and partners name two LNG vessels. - AUSTRALIA : Chevron secures multiple sales agreements for Gorgon LNG. - CANADA : Kitimat LNG denies agreement with Chinese company. - KUWAIT : Floating regasification terminal of Mina Al-Ahmadi GasPort receives first LNG.

Natural Gas p4- BANGLADESH : Chevron reports major gas discovery. - HUNGARY : JKX Oil & Gas announces gas discovery in the Nyirseg licence. - HUNGARY : Ascent Resources reports GH-1 test results. - VENEZUELA : Repsol announces country’s biggest gas discovery. - ABU DHABI : Bidding of Shah sour gas development delayed. p5- AUSTRALIA : Clough to begin engineering study for Macedon Gas development. - BOLIVIA : Repsol YPF to invest in gas production and processing activities. - INDIA : Production begins from C-Series fields, near Mumbai. - ITALY : Plant installation commences on Po Valley's Sillaro gas field. - NETHERLANDS : Cirrus Energy starts production at M7-A field. p6- POLAND : FX Energy begins production from Roszkow well. - SAUDI ARABIA : SNC-Lavalin receives contract for the Wasit Gas Development Program. - UNITED STATES : Point Thomson project development on the way.

- AUSTRALIA : John Holland wins Devil Creek gas plant contract. - RUSSIA : EBRD supports development operations of Vostok Energy Limited. p7- RUSSIA : Second stage of Yuzhno-Balyksky processing plant put in operation. - UNITED STATES : MarkWest Liberty Midstream & Resources to process gas at Majorsville plant in West Virginia. - IRAQ : Government and Russia agree on two pipeline projects. - TURKMENISTAN : Gas pipelines to China and Iran planned to be opened in December 2009. p8- UNITED STATES : Williams receives approval to expand Transco natural gas pipeline. - UNITED STATES : EQT Midstream announces pipeline open season. - UNITED STATES : South Jersey Gas gets nod for pipeline construction in New Jersey. - AUSTRALIA : Golar signs initial agreement to sell first production of LNG Ltd. - AZERBAIJAN : Gas export to China started. p9- EGYPT : More gas than planned exported to Spain. - GERMANY : RWE Supply & Trading introduces new financial swap contract. - INDIA : GAIL inks gas sales deals in Tamil Nadu. - INDONESIA : Murphy Oil commences gas supply to Petronas LNG plant. - INDONESIA : Petronas agrees to renegotiate price of gas supply to Duyong. p10- IRAN : UAE may be supplied with Iranian gas. - UNITED STATES : Publication of natural gas imports & exports in 2008. - CANADA : Enbridge Gas Distribution announces open season for Tecumseh seasonal storage capacity. - FRANCE : GE Oil & Gas to supply compressors for Storengy’s storage facilities. - GERMANY : Wingas and VNG in partnership for Jemgum storage facility. - SERBIA : EBRD considers loan to Srbijagas to buy and store gas. p11- UKRAINE : 27 Bcm of Russian gas stored may be enough to ensure energy stability during winter. - UNITED STATES : East Cheyenne gets approval for gas storage facility in Colorado. - UNITED STATES : Local authorities approves funding for 483 gas-fuelled trucks.

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LNG

PROCESSING

ANGOLA : Soyo’s LNG plant may start exports in January 2012 – CNR/48/22/1 Angola's Oil Minister, Jose Botelho de Vasconcelos said recently the country's first liquefied natural gas plant is set to start exporting gas in January 2012. The plant is located near the northern town of Soyo and will produce around

5.2 billion metric tonnes a year of LNG. "The project will be active between 25 and 30 years," said Botelho de Vasconcelos. Sonangol holds 22.8% in the LNG plant; Chevron Corporation owns 36.4%, while Eni S.p.A, Total S.A and BP Plc each hold a stake of 13.6%. (Energy Business Review, September 18, 2009)

AUSTRALIA : Gorgon’ partners announce full funding of the project – CNR/48/22/2 Exxon Mobil Corporation announced recently that the Gorgon liquefied natural gas project has been approved for development by the project participants. The final investment decision for Gorgon was announced by representatives from the Gorgon joint venture (ExxonMobil: 25 percent interest, Shell: 25 percent interest and Chevron: 50 percent interest and operator). "With global demand for LNG forecast to triple by 2030, the Gorgon Project will be a critical supply source in meeting this future demand, particularly for the economies in the fast growing Asia-Pacific region,” said Neil Duffin, president of ExxonMobil Development Company. The greater Gorgon area is estimated to have resources of 40 trillion cubic feet of natural gas. First LNG sales are targeted for 2014 and domestic gas in 2015. (Business Wire, September 13, 2009) AUSTRALIA : Gorgon EPCM contract awarded to Kellogg Joint Venture – CNR/48/22/3 Engineering and Construction Company Clough announced recently that Kellogg Joint Venture Group (KJVG) has been awarded by Chevron Australia Pty Ltd a contract to Engineer, Procure and Construction Manage (EPCM) the LNG downstream and logistics portion of the Chevron-operated Gorgon LNG Project. KJVG, a KBR led

Joint Venture consisting of partners JGC, Clough and Hatch, will execute and construct the liquefied natural gas facility on Barrow Island, consisting of three 5 million tonne per annum LNG trains, gas processing and treatment facilities, product storage and offloading, complete offsites, utilities and accommodations. The EPCM contract also includes a 300TJ/d domestic gas plant. (Clough press release, September 15, 2009)

PAPUA NEW GUINEA : Talisman plans LNG plant – CNR/4 8/22/4 Talisman Energy Inc. plans to develop a liquefied natural gas production facility in Papua New Guinea after acquiring Rift Oil Plc’s assets. Talisman plans to combine its gas areas in Papua New Guinea with those of Rift Oil and aggregate as much as 5 trillion cubic feet of reserves including those from acquiring stranded gas assets in adjacent blocks, a trade publication said. The Canadian explorer plans to build an LNG facility with a capacity of 2 million tons to 3 million tons a year (Bloomberg, September 14, 2009) PAPUA NEW GUINEA : Government declares not capacity to handle two LNG projects – CNR/48/22/5 The Papua New Guinea government said recently it doesn't have the capacity to run two liquefied natural gas projects at the same time. PNG's first LNG project is being managed by ExxonMobil, who plan to pipe gas from the country's highlands to a processing facility northwest of the capital Port Moresby. The second project is being proposed by Canada's InterOil Corporation, following the discovery of gas reserves in Gulf Province. But PNG's petroleum and energy minister, William Duma, said the government is

yet to make a decision on the InterOil project but it can't run in parallel with the Exxon-Mobil development. "The government has not a signed gas agreement with Exxon Mobil. The InterOil one is a proposal that is being considered by the government. But our priority now is to make sure the ExxonMobil project gets off the ground as soon as possible," said Mr Duma. ExxonMobil is expected to make a final investment decision by December, with construction due to start in early 2010. (BBC Monitoring Asia Pacific, September 24, 2009)

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TRANSPORTATION-DISTRIBUTION JAPAN : NYL Line and partners name two LNG vessels – CNR/48/22/6 NYK, Chinese Petroleum Corporation (CPC), and Mitsui & Co. Ltd. held recently a naming ceremony for two jointly owned LNG vessels being built at the Nagasaki shipyard of Mitsubishi Heavy Industries. The vessels were names Taitar No. 1 and Taitar No. 3. They are jointly owned by CPC (45%), NYK (27.5%), and Mitsui (27.5%), and are two of four sister ships. Taitar No. 1 will be completed on 30 September 2009, and Taitar No. 3 is scheduled to be completed on 5 January 2010. The other two vessels are being built at the Sakaide shipyard of Kawasaki Shipbuilding Corporation. The four sister ships will be deployed for shipment of about three million tons of LNG from Qatar to Taiwan under long-term contracts of 23 to 24 years each. (NYK Line press release, September 10, 2009)

SUPPLIES - IMPORTS – EXPORTS AUSTRALIA : Chevron secures multiple sales agreements for Gorgon LNG – CNR/48/22/7 Chevron Corporation announced recently that Australian subsidiaries of Chevron have signed three binding long-term Sales and Purchase Agreements (SPAs) for Chevron's share of liquefied natural gas from the Gorgon project. The agreements are for a total supply of nearly 3 million tons per annum of LNG to Osaka Gas, Tokyo Gas, and GS Caltex. Chevron will supply Osaka Gas 1.375 MTPA of LNG for 25 years. Osaka Gas will also purchase 1.25 percent equity in the Gorgon Project. Tokyo Gas will be supplied 1.1 MTPA over 25 years and will purchase a 1 percent equity stake. Supply from both agreements is expected to commence in the second half of 2014. Chevron Australia Pty Ltd and Chevron International Gas Inc., have also signed separate agreements with GS Caltex Corp. for 0.5 MTPA of LNG for up to 20 years. The LNG

to GS Caltex will be supplied from the Gorgon project and other gas within the global Chevron portfolio. GS Caltex is 50 percent owned by Chevron. Chevron Corporation also announced that its Australian subsidiaries have signed a Heads of Agreement with the Korea Gas Corporation for 1.5 million metric tons per annum of liquefied natural gas from the Gorgon project. As part of the arrangement, Chevron and Kogas have an option to extend the 15-year agreement for a further five years. The parties are also discussing LNG sales and an equity purchase from Chevron's Wheatstone project, located in northwest Australia. The Gorgon project is operated by Chevron Australia Pty Ltd (50 percent) in joint venture with the Australian subsidiaries of ExxonMobil (25 percent) and Shell (25 percent). The project's scope includes a three-train, 15 MTPA LNG facility. (Chevron press release, September 9 and September 15, 2009)

STORAGE CANADA : Kitimat LNG denies agreement with Chinese company – CNR/48/22/8 Kitimat LNG Inc. announced recently that it has not signed an agreement with a company called China Energy Petrochemical International Corporation. Stories circulating in the Chinese-language press are false, and provide incorrect information. The company determined that it must issue a statement at this time to stop circulation of these false reports. (Kitimat LNG press release, September 19, 2009) KUWAIT : Floating regasification terminal of Mina Al-Ahmadi GasPort receives first LNG – CNR/48/22/9 The Persian Gulf’s first LNG regasification terminal, Kuwait’s offshore Mina Al-Ahmadi GasPort, recently received its first cargo. The cargo arrived aboard the combined LNG carrier and regasification vessel, the Express, owned and operated by Excelerate Energy LLC. According to

an announcement from Excelerate’s joint-venture partner RWE AG, the vessel regasified and delivered 130,000 cu m into the offshore port and directly into the country’s gas grid. The Mina Al-Ahmadi GasPort lies around 25 miles south of Kuwait City and was built by Excelerate, for Kuwait National Petroleum Co. Construction, started in 2008. (Gasworld, September 15, 2009)

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Cedigaz News Report - Vol. 48, n°22, September 29, 2009

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NATURAL GAS

EXPLORATION – DISCOVERY BANGLADESH : Chevron reports major gas discovery – CNR/48/22/10 Chevron made an important discovery in Bangladesh, Muktadir Ali, chairman of state-owned Petrobangla said recently. Chevron has told authorities its Bibiyana gas field in Sylhet, Northeastern Bangladesh, contains 6.6 trillion cubic feet of gas, up from its original size of 3.4 trillion cubic feet. “Out of the amount, some 4.4 trillion cubic feet is recoverable. It’s the biggest new gas finding in at least a decade,” said Ali, whose company shares production with Chevron.

“The new findings mean we can now scale up gas production within a year and our gas reserve would last a few more years than originally thought,” Ali added. Petrobangla had said gas reserves in the South Asian country will start declining from 2012 and dry up by 2014-15 at present consumption rates if there were no new discoveries. Experts have forecast major reserves of gas in the Bangladesh waters of the Bay of Bengal, after huge discoveries were made in the Myanmar and Indian areas of the bay. (Downstream Today, September 24, 2009)

HUNGARY : JKX Oil & Gas announces gas discovery in the Nyirseg licence – CNR/48/22/11 JKX Oil & Gas plc announced recently the successful testing of exploration well Gorbehaza-1 in the Nyirseg licence located in Hungary’s Pannonian Basin. . A production test flowed 3.7 MMcfd of gas and 20 bpd of condensate through a 10mm choke at a flowing wellhead pressure of 1,190 psi. The well is producing from a small accumulation, the size of which will be established during the initial production period. The well will now be completed and a 2.5km flow line laid to the Hajdúnánás Gas Production Facility. (JKX Oil & Gas press release, September 18, 2009) HUNGARY : Ascent Resources reports GH-1 test results – CNR/48/22/12 Ascent Resources plc announced recently the successful completion and testing of the Görbeháza-1 well ('GH-1') located in the western part of the Nyírség Szatmár permits in Hungary, known as the Panhandle. The first of two gas zones targeted for completion has achieved a gas flow rate of 3.74 MMscfd with a flowing wellhead pressure of 1,191 psig. The well has been

completed as a gas producing well and 2.5km of pipeline will be laid to the Hajdúnánás Gas Production Facility, where condensate will be recovered and the gas processed and sold into the main Hungarian gas pipeline network. Ascent has a 20.167% interest in this project; other partners include JKX (33.333%), DualEx (12.5%) and Swede Resources AB (0.667%). (Ascent Resources press release, September 17, 2009)

VENEZUELA : Repsol announces country’s biggest gas discovery – CNR/48/22/13 Repsol YPF SA discovered recently a Venezuelan gas field containing as much as 8 trillion cubic feet of gas. Patrick Esteruelas, a Latin America risk analyst with Eurasia Group said “The Venezuelan government remains insistent that any new gas developments should be directed to the heavily subsidized price in the domestic market”. “Venezuela is still running a gas deficit and will use any new production to plug that deficit. That’s a massive stumbling block to successive gas development” Venezuela has 174.9 trillion cubic feet of natural gas reserves. In the development phase of the Venezuela field, known as Cardon IV, Petroleos de Venezuela SA will have a 35 percent stake in the project, with Repsol and Eni SPA retaining a 32.5 percent stake. (Bloomberg, September 12, 2009)

PRODUCTION ABU DHABI : Bidding of Shah sour gas development de layed – CNR/48/22/14 Abu Dhabi National Oil Company and Conoco Phillips recently agreed to extend the deadline for the main gas processing packages of Shah sour gas development from September 10th until November 3rd 2009. The pair has set a tentative deadline for commercial bids which outline cost structures of December 2009. The partners are tendering 10 construction contracts labelled EPCs 1 to 10 on the Shah scheme. The first 4 packages cover gas gathering and processing facilities at Shah. The remaining packages cover product and sulphur pipelines linking the field to processing and export facilities at Habshan and a sulphur handling and

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export terminal at Ruwais near Abu Dhabi. The postponed contracts are EPCs 2-4. These are the contracts to build the main facilities for processing the gas produced at the Shah field and stripping it of sulphur. (MEED, September 19, 2009) AUSTRALIA : Clough to begin engineering study for Macedon Gas development – CNR/48/22/15 Clough announced recently that following the acquisition of Ocean Flow International it will further increase its Houston presence following the award of the Front End Engineering Design (FEED) by BHP Billiton for the Macedon Gas Field. The scope of work includes project management, engineering, safety and environmental risk management and procurement support. A cost and schedule estimate along with

the project execution plans will also be developed. The development concept to be studied in the FEED phase is based on four subsea wells routed via an 85 km subsea wet gas pipeline to an onshore gas plant for processing for export through an onshore pipeline to tie-in at the Dampier to Bunbury Natural Gas Pipeline (DBNGP). The Macedon Gas Field is located in the Northern Carnarvon Basin, approximately 100 km west of Onslow and 40 km north of Exmouth, Western Australia. (Clough press release, September 10, 2009)

BOLIVIA : Repsol YPF to invest in gas production an d processing activities – CNR/48/22/16 Repsol YPF has pledged to invest $1.6 billion in its natural gas operations in Bolivia during the 2010-2014 period, the head of the Bolivian state energy company said recently. Yacimientos Petroliferos Fiscales Bolivianos chief Carlos Villegas said the investment will go toward drilling seven new wells and to expand the capacity of an existing gas processing plant from 2 million cubic meters per day to 18 million. He said the accord with Repsol will help ensure the construction of a new pipeline to carry gas to Argentina as well as increasing the amount of output available for export to the neighbouring country. The additional investment by Repsol will also make it possible to conduct a feasibility study on construction of a plant in the southern province of Tarija to separate liquids from natural gas, Villegas said. (Latin American Herald Tribune, September 22, 2009)) INDIA : Production begins from C-Series fields, near Mumbai – CNR/48/22/17 Oil and Natural Gas Corporation Limited is set to start natural gas production from C-Series fields, off Mumbai coast after the government approves the price at which gas will be sold to GAIL (India) Limited. Earlier, GAIL had contracted to purchase the entire production from the fields at $5.5 per million British thermal unit, up 30% than the rates fixed for Reliance Industries Limited's eastern offshore KG-D6 fields. Cumulative production from the project is expected at 15.14 billion cubic

meters of gas and 6.13 million tons of condensate in 15 years. GAIL was to purchase gas from C-series fields from August 2009 but has been delayed due to the pending government nod to the price. The field would start with 0.8 mmscmd output that would rise to 3mmscmd in a year’s time. The 192-kilometers pipeline network will link eight platforms and 22 wells to a process complex and thereafter to the Uran processing plant near Mumbai. (Energy Business Review, September 17, 2009)

ITALY : Plant installation commences on Po Valley's Sillaro gas field – CNR/48/22/18 Po Valley Energy commenced recently installation of surface plant at the Sillaro gas field, east of Bologna in Italy, following successful drilling of the Sillaro-2 well. The Italian contractor, Semat Spa, commenced site activities with a target four-month schedule for completion, and commissioning expected in January 2010. (Po Valley, September 14, 2009) NETHERLANDS : Cirrus Energy starts production at M7 -A field – CNR/48/22/19 Cirrus Energy Corporation announced recently that its wholly-owned subsidiary in The Netherlands, Cirrus Energy Nederland B.V. has successfully completed the drilling and testing of the M7-A01X production well on the M7-A Field. The well flowed at a maximum rate of 43.1 MMscf/d at a FWHP of 261 bars through a 48/64”choke. The well has been tied in to the fully commissioned M7-A platform and export facilities and production commenced on September 12, 2009. The long term average production rate is limited by capacity

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at the export facilities at 21.0 MMscf/d which is expected to result in an extended period of plateau production. At a Brent oil price of US$70.00 per barrel, the future realised price for M7-A gas is expected to be about C$9.50 per thousand cubic feet. Partners in the M7-A development are Cirrus (42.75% and operator), DSM Energie B.V. (5.0%), Energy06 Investments B.V. (2.25%) and EBN (50%). (Cirrus Energy press release, September 14, 2009) POLAND : FX Energy begins production from Roszkow well – CNR/48/22/20 FX Energy, Inc. announced recently that the facilities and pipeline are complete and gas production has started on the Company's Roszkow well in western Poland. The well is currently in the start-up phase. The well is expected to reach its planned daily production rate of 15 million cubic feet of gas per day. The

Polish Oil and Gas Company (POGC) owns 51% and operates the Roszkow well. FX Energy owns 49%. Four additional wells in the Fences area have been completed for production and are waiting for pipeline connection. Three of those wells, Kromolice-1 and 2 and Sroda-4, are scheduled to begin production later in 2010. (PRNewswire, September 23, 2009)

SAUDI ARABIA : SNC-Lavalin receives contract for th e Wasit Gas Development Program – CNR/48/22/21 SNC-Lavalin announced recently that it has been awarded a front-end engineering and project management services contract by Saudi Aramco for the Wasit Gas Development Program. The Wasit Gas Development Program will provide for the production and processing of up to 2.5 billion standard cubic feet per day of gas from the Aribiyah and Hasbah offshore non-associated sour gas fields to meet the future demands of the Kingdom of Saudi Arabia. This is a 5-year contract expected to commence by October 1, 2009. (SNC-Lavalin press release, September 21, 2009) UNITED STATES : Point Thomson project development on the way – CNR/48/22/22 ExxonMobil Production Company announced recently that it has completed drilling and casing the surface section on the second well at Point Thomson. "We are progressing the development of Point Thomson consistent with the Alaska Department of Natural Resources Interim Decision of January 2009 and the Plan of Development submitted in February 2008,” said Dale Pittman, Alaska production manager for ExxonMobil. “We place the highest priority on safety and care of the environment. We are on schedule to begin production at Point Thomson by

year-end 2014." Point Thomson is a natural gas and condensate field located 60 miles east of Prudhoe Bay on the North Slope of Alaska. It holds an estimated 8 trillion cubic feet of gas – about 25 percent of the North Slope's proven gas resource – and about 200 million barrels of condensate. Field development will include a gas cycling plant designed to produce hydrocarbon liquids and re-inject natural gas back into the reservoir. In addition to processing facilities, the development will include a pipeline tie-in to the TransAlaska Pipeline System (TAPS) and other ancillary facilities and infrastructure. (Business Wire, September 9, 2009)

PROCESSING AUSTRALIA : John Holland wins Devil Creek gas plant contract – CNR/48/22/23 John Holland recently secured contract to deliver Apache Energy’s Devil Creek Development Project (DCDP). The contract is for construction of the Devil Creek onshore gas plant in Western Australia's Pilbara region. John Holland said the scope of works includes the construction of an onshore processing facility with specific capabilities in gas treatment/dehydration, condensate liquid stabilisation, storage and road load out, gas compression and metering. An onshore pipeline will also be constructed along with a connection to the existing Dampier to Bunbury Natural Gas Pipeline. Work on the new processing facility will commence in September 2009 with completion expected by mid-2011. (Energy Business Review, September 3, 2009) RUSSIA : EBRD supports development operations of Vo stok Energy Limited – CNR/48/22/24 The European Bank for Reconstruction and Development is supporting Vostok Energy Limited independent oil and gas company, in its drive to become a leading privately-owned developer of natural gas reserves.

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Through its wholly-owned subsidiary, Diall Alliance llc., Vostok owns the license for exploration and development of the Bortovoye license area near Saratov, with proven and probable reserves of 19 billion cubic meters of gas and 2.2 million tons of condensate based on the current independent engineer’s reserve report. The EBRD is providing Vostok a financing package worth $100 million to finance the company’s investment in the further development of the western part of the Bortovoye license field. According to EBRD, the project will fund the launch of a gas processing plant near the Karpenskoe field in the Bortovoye license area and the construction of the supporting infrastructure necessary to connect the plant to the Gazprom pipeline system. The plant will enable Vostok to fully eliminate gas flaring at western part of its gas fields. In addition the EBRD funds will be used to complete 15 gas wells in the Karpenskoye field, including drilling of four new wells. (The Financial, September 23, 2009) RUSSIA : Second stage of Yuzhno-Balyksky processing plant put in operation – CNR/48/22/25 A new complex was recently put in operation at Yuzhno-Balyksky GPP making it possible to receive 1.5 billion cu m/yr of associated petroleum gas for processing. The total capacity of the gas processing plant has increased up to 3 billion cu m/yr of associated petroleum gas. Recovery of target cuts at the plant in whole has increased to 95%. The total design gas processing capacity of SIBUR has increased to 19 billion cu m/yr of associated petroleum gas. The new complex consists of a booster compression station, drying and low-temperature condensation sections, a

propane refrigerating plant, and other auxiliary facilities. The new complex can receive both high-pressure and low-pressure associated petroleum gas for processing. Processing 3.0 billion cu m/yr of gas will enable the plant produce 2.8 billion cu m of dry stripped gas and 900 thousand tons of broad fraction of light hydrocarbons. The capacity increase is aimed at reception of extra volumes, mainly from the Priobskoye oil field which is being developed by Rosneft JSC. Within the first stage the project of the plant reconstruction was implemented increasing its associated petroleum gas (APG) reception capacity from 0.9 to 1.5 billion cu m/yr. (Your Industry News, September 16, 2009)

UNITED STATES : MarkWest Liberty Midstream & Resour ces to process gas at Majorsville plant in West Virginia – CNR/48/22/26 MarkWest Liberty Midstream & Resources LLC said recently it has agreed with units of Chesapeake Energy Corp and Statoil Hydro ASA to process gas at its new Majorsville processing plant in West Virginia. MarkWest Liberty, a partnership between oil and gas processor MarkWest Energy Partners LP and Midstream & Resources Funds, expects to complete the new 120 million cubic feet-per-day Majorsville cryogenic plant in mid-2010, it said. The new Majorsville plant is planned to be constructed and located in the panhandle of West Virginia, the company said. (Reuters, September 15, 2009)

TRANSPORTATION-DISTRIBUTION IRAQ : Government and Russia agree on two pipeline projects – CNR/48/22/27 The Russian Energy Ministry said recently that Russia and Iraq have reached agreements on building two gas pipelines and on cooperation in operating two Iraqi thermal power plants. Under

the new agreement parties, Russia will help Iraq build the Kirkuk-Baniyas gas pipeline and a second strategic gas pipeline and arrange the operation of the Yusifiya and Dibis thermal power plants in Iraq. (RIA Novosti, September 9, 2009)

TURKMENISTAN : Gas pipelines to China and Iran plan ned to be opened in December 2009 – CNR/48/22/28 Turkmenistan will begin supplying natural gas through two new pipelines to China and Iran in December 2009, state media reported recently. The inauguration of the 4,300-miles pipeline from Turkmenistan to China is expected in mid-December. The unveiling of a second pipeline to neighbouring Iran, which will complement a route that currently supplies around 280 billion cubic feet (8 billion cubic meters) of gas annually, is planned for the same month. The 19-miles pipeline will have a capacity to deliver an additional 440 billion cubic feet of gas per year. (Associated Press, September 19, 2009)

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UNITED STATES : Williams receives approval to expan d Transco natural gas pipeline – CNR/48/22/29 Williams announced recently that the Federal Energy Regulatory Commission approved a proposal to expand its Transco natural gas pipeline by 308,500 dekatherms per day to serve markets in the southeastern United States. New service from the 85 North project will be available in two phases. Phase 1 will increase capacity by 90,000 dekatherms per day by the summer of 2010, while Phase II will increase capacity by 218,500 dekatherms per day by the summer of 2011. The 85 North project will require construction of approximately 22 miles of 42-inch pipeline, in addition to a new 20,500 horsepower compressor facility in Anderson County, S.C., as well as modifications to existing compressor facilities. The Transco pipeline is a 10,500-mile pipeline system that transports natural gas to markets throughout the Northeastern and southeastern United States. This expansion will increase the total system capacity of the Transco pipeline to approximately 8.5 billion cubic feet per day. (PRNewswire, September 9, 2009 UNITED STATES : EQT Midstream announces pipeline open season – CNR/48/22/30 EQT Midstream, a division of EQT Corporation, announced recently an open season to shore up interest in an expansion of Equitrans, its interstate transmission pipeline, along with its intent to expand other EQT gathering systems assets located in the Marcellus Shale Fairway in West Virginia and Pennsylvania. Overall, EQT Midstream's Marcellus Expansions will provide Appalachian producers with up to 1.2 Bcf per day of timely, cost effective options to reach premium

Northeastern and Mid-Atlantic markets. Equitrans will hold an Open Season to further delineate this opportunity. It will create new firm transportation capacity through the addition of pipeline looping, new high pressure laterals and compression facilities on its existing pipeline network. Through identified projects, Equitrans has the ability to add an incremental 900,000 Dth per day of natural gas transportation. The capacity will be added to the Equitrans system over a three-year period with an independent project planned for each year. (PRNewswire, September 21, 2009)

UNITED STATES : South Jersey Gas gets nod for pipel ine construction in New Jersey – CNR/48/22/31 South Jersey Gas, a unit of South Jersey Industries, Inc., received recently approval from New Jersey Board of Public Utilities to construct around 15-mile natural gas pipeline project across Gloucester, Atlantic and Cumberland counties. Pipeline construction will start at the end of September 2009 and will be concluded by December 2009. The line will start at the company's Malaga station in Franklin Township, Gloucester County, and continue into Newfield Borough, then into the Atlantic county municipalities of Buena Borough and Buena Vista Township, and end in Vineland at the intersection of Union Road and Trento Avenue. (Energy Business Review, September 16, 2009)

SUPPLIES - IMPORTS – EXPORTS AUSTRALIA : Golar signs initial agreement to sell first production of LNG Ltd – CNR/48/22/32 Golar signed recently an initial agreement to sell LNG from LNG Ltd's planned Gladstone plant to Toyota. The Golar deal underpins the company's plans to be the first commercial producer of LNG from Queensland's vast reserves of coal seam gas. Golar, which agreed to take all the output from LNG Ltd's Fisherman's Landing project earlier in 2009, signed a heads of agreement to

sell 1.5 million tonnes of LNG a year to Toyota trading company Toyota Tsusho from 2014 to 2026. Toyota Tsusho is now in talks to buy a minority interest in the plant. Fisherman's Landing is the smallest of five LNG plants planned for Gladstone and is expected to come into production in 2012 using coal seam gas supplied by Arrow Energy. The deal accounts for all the production from the first stage of the project. (The Australian, September 18, 2009)

AZERBAIJAN : Gas export to China started – CNR/48/2 2/33 Rovnag Abdullayev, President of State Oil Company of Azerbaijan (SOCAR) said recently "I have recently had a meeting with Kairgeldy Kabyldin, President of Kazakhstan’s state energy company KazMunaiGaz. He proposed to Azerbaijan to join their project to export natural gas to China. Given that Azerbaijan has enough gas volumes and sales market, we can consider this proposal”. Kazakhstan intends to bring on stream the first gas pipeline to China by the end of 2009. The project envisages the construction of two parallel pipelines with a total length of 1 304.5 km. The project is part of the Central Asian pipeline, providing for deliveries of Turkmen gas to China via Uzbekistan and Kazakhstan. (APA, September 15, 2009)

Cedigaz News Report - Vol. 48, n°22, September 29, 2009

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EGYPT : More gas than planned exported to Spain – CNR/48/22/34 A recent report by the General Authority for Petroleum said that the North African nation has increased the quantities of gas exported to Spanish company Union Fenosa by 41 percent more than initially planned for the 2008-2009 year. According to official data from the Petroleum Authority, Egypt’s exports of gas to the company, in the fiscal year 2008/2009 amounted to 103 billion cubic feet, worth a total of $308 million, compared to 73 billion cubic feet of gas that was targeted by the company, meaning the increase amounted to 30 billion cubic feet, without what appears to be a further financial transaction. Al-

Masry Al-Youm, Egypt’s leading independent newspaper, reported that documents showed that the average sale for the gas exports to the Spanish company amounted to $2.99 per million thermal unit, which is less than one cent on the selling price in the local market-oriented energy-intensive industries, and increased by 34 cents on the estimated cost price of $2.65 per million British thermal units. The data confirmed that the Spanish company received more than 75 percent of the gas in the contract over the past year, indicating the commitment of the Ministry of Petroleum to supply most of the quantities contracted with the Spanish company, a ministry official said. (Bikya Masr, September 9, 2009)

GERMANY : RWE Supply & Trading introduces new finan cial swap contract – CNR/48/22/35 RWE Supply & Trading (RWEST), the trading arm of German power company RWE, has developed a financially settled gas swap contract targeted at non-physical players in the gas markets. The contract is designed to meet the need for non-physical players, such as banks, financial institutions and hedge funds, in Europe to participate in this market. The contract will allow participants to trade without having to sign up to the physical balancing regime of Gas Transport Services, and avoids the requirement to make nominations to the pipeline operator. Participants will be able to trade gas at the prices of virtual trading point, the Dutch Title Transfer Facility (TTF), and the contract comprises fixed price and floating price legs. The floating price will be settled against the London Energy Brokers Association (LEBA) day ahead and weekend window indices for the TTF. (Energy Risk, September 22, 2009) INDIA : GAIL inks gas sales deals in Tamil Nadu – CNR/48/22/36 GAIL (India) Limited signed recently two contracts for sourcing natural gas from PY-1 field for supply to a power plant in Tamil Nadu state, India. A long term gas sale contract for the PY-1 gas supplies was signed between GAIL and Hindustan Oil Exploration Company Ltd. GAIL also entered into a contract in downstream for the supply of PY-1

gas with PPN Power Generating Company in Tamil Nadu. The GSC between GAIL and HOEC provides for a primary term of 15 years which can be extended on mutually agreed terms. For the first six years, gas supplies are expected in the range of 51,000 mmbtu per day. GAIL is also entitled to receive additional gas, if any, from the field as per the terms of the contract. (Energy Business Review, September 22, 2009)

INDONESIA : Murphy Oil commences gas supply to Petr onas LNG plant – CNR/48/22/37 Murphy Oil Corp started recently supplying natural gas to Petroliam Nasional Bhd's liquefied natural gas complex in Bintulu, Sarawak. It is sourced from the fields in Blocks SK 309 and SK 311 offshore Sarawak, which began production recently. The contract terms call for the development to supply 250 million cubic feet of natural gas per day for a firm period of five years, with a provision to supply up to 350 mmcfd for an additional ten-year period. (Silobreaker, September 23, 2009) INDONESIA : Petronas agrees to renegotiate price of gas supply to Duyong – CNR/48/22/38 Petronas agreed recently to renegotiate a deal for the purchase of gas output from a block located in the Natuna Sea. The lawmakers said the deal, signed in 2002 between Petronas and block operator ConocoPhillips under the consent of the Indonesian government, was based on a pricing mechanism that was no longer applicable and which could inflict losses on Indonesia. Under the contract, ConocoPhillips was to export natural gas from the block to the Petronas's Duyong gas complex for 20 years. The export began in 2002, with a first year's delivery of 38.5 billion British thermal units per day. The annual volume rose to 209 btu/d by 2008. The price of gas was set at a fixed rate of US$2.80 per million British thermal units (mmbtu). The average domestic price of gas is currently around $5 per mmbtu. Deputy Achmad Luthfi said that negotiations are currently underway between the government and Petronas for a new pricing plan. (The Jakarta Post, September 23, 2009)

Cedigaz News Report - Vol. 48, n°22, September 29, 2009

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IRAN : UAE may be supplied with Iranian gas – CNR/48/22/39 Managing Director of the National Iranian Gas Export Company (NIGEC) Reza Kasaeizadeh said that Iran has signed a contract with a foreign company to export gas to the United Arab Emirates for 25 years. "According to the agreement, the foreign company is to develop an

Iranian gas field in the Persian Gulf and export the natural gas to the UAE for 25 years" he said. "At least three UAE companies have submitted their requests and announced their readiness to import gas from Iran based on international prices," Mehr news agency quoted Kasaeizadeh as saying in July 2009. (Press TV, September 14, 2009)

UNITED STATES : Publication of natural gas imports & exports in 2008 – CNR/48/22/40 The Energy Information Administration published recently a report providing an overview of U.S. international natural gas trade in 2008. Natural gas import and export data, including liquefied natural gas (LNG) data, are provided through the year 2008 in tables. (EIA, September 11, 2009) The document can be downloaded at: http://www.eia.doe.gov/oil_gas/fwd/ngimpexp2008.html

STORAGE CANADA : Enbridge Gas Distribution announces open season for Tecumseh seasonal storage capacity – CNR/48/22/41 Enbridge Gas Distribution announced recently that it is conducting a binding open season for natural gas storage service at its Tecumseh Gas Storage facility in southwestern Ontario. Injections

will begin on April 1, 2010. The binding open season is for service totalling a maximum of 2.1 million gigajoules or approximately 2 billion cubic feet of natural gas storage capacity. The minimum four-year contracts will have a maximum daily injection and withdrawal capacity of 106,000 GJ per day. (Marketwire, September 14, 2009)

FRANCE : GE Oil & Gas to supply compressors for Sto rengy’s storage facilities – CNR/48/22/42 GE Oil & Gas signed recently an agreement with Storengy, a GDF Suez Group company, to supply four integrated compressor line units for the expansion of two underground gas storage facilities in France. GE Oil & Gas will provide one ICL unit for the Céré La Ronde site near Tours and three units for the Saint Illiers site near Paris. The units will be shipped at the end of 2010, and will be installed at the project sites in mid-2011. (Energy Business Review, September 15, 2009) GERMANY : Wingas and VNG in partnership for Jemgum storage facility – CNR/48/22/43 The two natural gas companies Wingas and VNG declared recently their intention to work together to develop the Jemgum cavern storage facility in the district of Leer in Lower Saxony. VNG intends to take on about a third of the planned Wingas storage capacities as storage operator. Wingas and energy service provider EWE plan to create

up to 33 caverns in the underground salt domes in the next few years. The storage facilities will be developed together by the two companies but operated separately following completion from 2013. Wingas will initially build up to 18 caverns with a geometric volume of up to 750,000 cubic meters each. VNG intends to take on about a third of the storage capacities from Wingas. (Wingas press release, September 10, 2009)

SERBIA : EBRD considers loan to Srbijagas to buy an d store gas – CNR/48/22/44 The European Bank for Reconstruction and Development is considering loaning Srbijagas 150 million euros to buy and store gas. The bank, which is expected to make a final decision on November 17, said the loan in several tranches would allow Srbijagas to buy between 250 and 300 million cubic metres of gas as a reserve for storage in a rented facility in Hungary. The funds could also be used to build a new underground gas storage facility and other investments needed to boost energy security, including interconnections to link Serbia's gas network with neighbouring countries. In May Srbijagas said the initial stage of its first gas storage facility should be finished by November 2009. It is expected to be able to hold 300 million cubic metres of gas. The storage capacity will be gradually expanded by 2012 to one billion cubic metres. (Reuters, September 17, 2009)

Cedigaz News Report - Vol. 48, n°22, September 29, 2009

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UKRAINE : 27 Bcm of Russian gas stored may be enough to ensure energy stability during winter – CNR/48/22/45 Gazprom Deputy CEO Valery Golubev said recently that Ukraine needed to pump at least 28 billion cubic meters of Russian natural gas into its underground storage facilities to meet its requirements and ensure uninterrupted Russian gas transit to Europe. Prime Minister Yulia Tymoshenko replied "We have determined that 25.5 billion cubic meters [which have already been pumped into Ukraine's underground gas storage facilities] are sufficient for us to live

normally through the winter period and provide the country with gas. We can already stop pumping natural gas into gas storage tanks". The Ukrainian premier earlier said 27 billion cubic meters would be pumped into the country's underground storage facilities to provide for the ex-Soviet republic's energy stability in the fall and winter. Ukrainian underground storage facilities have a total capacity of 32 billion cubic meters. Tymoshenko also said that the gas contracts signed between Russia and Ukraine at the start of 2009 must not be reviewed in any case. (RIA Novosti, September 7, 2009)

UNITED STATES : East Cheyenne gets approval for gas storage facility in Colorado – CNR/48/22/46 East Cheyenne Gas Storage, LLC, a subsidiary of Merchant Energy Partners, LLC, received recently a conditional use permit from the Logan County Commissioners for the operation of a natural gas underground storage facility, which is located 23 miles north of Sterling or 4 1/2 miles west of Peetz. The West Peetz storage area will hold a total gas inventory of 11.5 billion cubic feet and the Lewis Creek area will hold a total gas inventory of 7.28 billion cubic feet. The facility will contain 10 injection/withdrawal pads with three additional auxiliary wells. The compressor station will be linked to the REX and Trailblazer pipeline with twin 24-inch pipelines. (Energy Business Review, September 16, 2009)

USE AS AUTOMOTIVE FUEL UNITED STATES : Local authorities approves funding for 483 gas-fuelled trucks – CNR/48/22/47 The South Coast Air Quality Management District (SCAQMD) Governing Board approved recently funding for 483 natural gas-fuelled liquefied natural gas and compressed natural gas trucks to replace old diesel trucks serving the Ports of Long Beach and Los Angeles. The new trucks are expected to use approximately 3.6 million

gasoline gallon equivalents of natural gas fuel per year once fully deployed. SCAQMD is administering the truck-funding program for the California Air Resources Board and the Ports. Funding for the program is provided by the Proposition 1B Program of the state of California and by the SCAQMD and the Ports. The program supports the Ports’ Clean Air Action Plan. Clean Energy Fuels press release, September 14, 2009)

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