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Britain: BP says cost of Macondo oil spill disaster now tops $6 billion Aug 10,2010

The cost of the response to the Macondo oil spill disaster in the US Gulf of Mexico now totals about $6.1 billion, operator BP said in a statement Monday. The latest estimate includes the cost of the spill response, containment, relief well drilling, static kill and cementing, grants to the Gulf states, claims paid, and federal costs. ...>>>

China: CNOOC says new Bozhong 19-4 field to top 15,600 b/d within year Aug 10,2010

Chinese offshore producer CNOOC said Monday it had started crude production from its Bozhong 19-4 oil field in Bohai Bay, and that the field was expected to reach peak production of more than 15,600 b/d "within the year." CNOOC BZ 19-4 would be tied into the facilities of the nearby BZ 25-1/25-1s oil field 7 km away. Chevron h...>>>

UK GAS: Short system, low LNG support continues to add pressure Aug 10,2010

UK gas prices started the week in bullish mood Monday as the system remained uncomfortably short, with an insufficient amount on LNG available to support the low availability, traders said. The day-ahead contract was changing hands at around 43.60 pence/therm by 12:00 London time, 1.10 p/th above Friday's close, while within-day was up 0....>>>

Coal-to-gas switching won't affect near-term gas demand: Bentek Aug 10,2010

While the large-scale move to natural gas-fired generators from coal-fired ones in 2009 was an indicator of long-term power trends in the US,it will be some time before that change is visible in increased gas demand,Bentek said in a report Friday. Over the next six years, "the magnitude of switching seen [in 2009] is unlikely to return in...>>>

China Natural Gas says completes test run of LNG-powered ship Aug 10,2010

China Natural Gas completed the first test navigation of an LNG-powered ship in its waters, the company said Friday. The test marked the first time an LNG-powered ship has navigated in China's domestic waterways, demonstrating that LNG can be used both in cars and ships as a fuel. The test took place in Wuhan Tuesday, the compan...>>>

China: N. China's Tianjin port ships out 175,000mt of oil products in Jul, down 6% on month Aug 10,2010

A combined 175,000mt of gasoline and gasoil were transported southwards from Tianjin port in North China in July, down 6% from the previous month, according to a port source. The volume of gasoline was 76,000mt, slightly down 1% on month, and gasoil declined 10% to 99,000mt, the source said. PetroChina shipped out 31,000mt of gasoline in ...>>>

China: Shandong Dongming Petchem starts construction of 150,000-cu-m oil tank farm Aug 10,2010

Shandong Dongming Petrochemical started construction of a 150,000-cu-m oil tank farm in early August, according to a source with the refinery. This tank farm comprises 100,000 cu m of storage capacity for crude and 50,000 cu m for oil products, expected to come on line in August 2011, the source said. The refinery plans to build another 1...>>>

China: Sinopec increases Aug oil product outsourcing target by 57% to 470,000mt Aug 10,2010

Sinopec is scheduled to outsource 470,000mt of oil products in five areas in southern China in August, sharply up 170,000mt or 57% from the previous month, a survey found. The target is 200,000mt for gasoil and 270,000mt for gasoline. The five areas comprise Jiangsu, Zhejiang, Shanghai, Fujian and Guangdong. Gasoil supply became tight in...>>>

China to shut 25.87 million mt coking capacity by September Aug 10,2010

China's Ministry of Industry and Information Technology released Sunday a list of units in major energy-consuming industries, including coking and iron and steelmaking, set for elimination. The list included 192 coking companies that will shut batteries with a combined coking capacity of 25.87 million mt/year by the end of September. Mos...>>>

China: Tropical storm may delay LPG cargo arrivals in part of S. China Aug 10,2010

The tropical storm "Dianmu", which was formed in the sea east to Taiwan late on Aug 8, may delay some LPG barge cargoes to reach Fujian and east Guangdong in South China. Due to strong wind, some ships to pass the Taiwan Strait already took shelter in the evening of Aug 8, said a terminal source in east Guangdong. "If the tropical storm contin...>>>

China: CNGC Huajin Chemicals resumes operation Aug 10,2010

Huajin Chemical, a refinery subsidiary to the China Northern Industries Group Corporation, restarted its units on Aug 8, but it has not yet yielded products nor resumed the supply so far, a source with the refinery said. Prices of some downstream products rebounded since late July, tracking gains in international crude prices, which stimulated...>>>

Light feeds remain most profitable for US steam cracker operators Aug 10,2010

US steam cracker operators saw margins mixed on the week as spot ethylene closed slightly lower week on week. Spot prices appeared to peak early in the week following several trades heard done at 37 cents/lb but have since pulled back on the expectation that Dow will restart its LHC 7 olefins unit at Freeport, Texas at some point in the next week...>>>

Russia to monitor upstream, downstream oil with single system Aug 11,2010

Russia's energy ministry is developing a united monitoring system to review the county's oil production, transportation and refining in order to make the industry more transparent and reduce the illegal oil trade, a ministry spokeswoman said Tuesday. The ministry announced the "Oil Control" concept in a statement late Monday, saying that ...>>>

China's Sinopec to launch crude storage tanks at Cezi Island 2011 Aug 11,2010

China's largest refiner Sinopec plans to complete construction of its 13.5 million cubic meter capacity (84.91 million barrels) commercial crude storage tanks at Cezi Island in East China's Zhejiang province in 2011, its parent company China Petrochemical Corporation said on its website Monday. The Yuan 13 billion ($1.92 billion) investme...>>>

Some peak oil followers dispute Simmons Macondo statements Aug 11,2010

Some followers of the peak oil theory had recently taken issue with comments by leading proponent Matt Simmons, who died Sunday, over the effects of the Macondo spill and had begun to question his credibility. Simmons, 67, died Sunday of an apparent heart attack at his home on North Haven island in Maine (story 1556 GMT). Art B...>>>

UK's EnCore seeks Esmond offshore gas storage project investment Aug 11,2010

UK independent EnCore Oil is hoping to find investors for its UK North Sea Esmond gas storage project, the company said Tuesday. It has engaged investment bank Jefferies to market the project, and the work is "ongoing," EnCore said in a financial results statement. "The marketing of our 100% owned Esmond gas storage project continues, and...>>>

Japan's Inpex considering stake sale for Ichthys LNG buyers Aug 11,2010

Japan's Inpex Corp is considering selling stakes in the upstream portion of its Ichthys project in Australia to prospective LNG buyers, a company official said Tuesday. The company has already received interest from some buyers in taking upstream stakes, the official said. But as yet the company has not decided on the extent of any sale,...>>>

US FERC monitors Florida gas market after prices spike Aug 11,2010

The US Federal Energy Regulatory Commission is monitoring the natural gas spot market at the Florida city-gates after prices shot up to $14/MMBtu last week at a time when generator demand was high and pipeline maintenance limited supplies, a FERC spokeswoman said. "Our staff is on it. I know there are a lot of extenuating circumstances wi...>>>

China's July coal exports up 12.1% on-year Aug 11,2010

China exported 1.39 million mt of coal in July, up 12.1% on a year earlier and 9.4% higher than in June, according to preliminary figures released by China Customs Tuesday. In January-July of 2010, China exported a total 11.53 million mt of coal,down 10.8% from the 12.92 million mt shipped out in January-July last year. China's...>>>

China: Shandong Huaxing Petchem to start operation of 6-mil-mt/yr CDU Nov Aug 11,2010

Shandong Huaxing Petrochemical plans to start operation of a 6-mil-mt/yr crude distillate unit and a 1.4-mil-mt/yr coker before the end of November, according to a source with the refinery. With this new CDU on line, Huaxing Petrochemical's topping capacity will hit 8.5-mil mt/yr and the refinery will replace Shandong Changyi Petrochemical as...>>>