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Thursday, January 14, 2010
Today's News Headlines
* LNG-fired thermo capacity set to double - minister - Chile
* Matrix as diverse as it has ever been - minister - Chile
* Petroperú to list shares on BVL exchange - Peru
* PDVSA carries out 8 major maintenance works in Apure in 2009 - Venezuela
* High crude prices send stabilization fund debt over US$139mn - Peru
* Deforested land has potential for biofuel crops - consultancy - Peru
* Repsol to present investment plan for block 57 in April - Peru
* Neighbor set to invest in Bolivian gas infrastructure - Bolivia, Brazil
* Telvent, Gas Natural sign contract for the provision of turnkey tech solution - Mexico
* Ethanol sales reach 2.11Bl in December - Unica - Brazil
* Vale, Bunge sign ethanol transport agreement - Brazil
* Petro Vista closes US$3.2mn private placement - Brazil, Colombia
* Petroecuador, PDVSA have 45% of land needed for RPD refinery - Ecuador
* Repsol would only sell YPF stake to Argentine partner - reports - Argentina
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* LNG-fired thermo capacity set to double - minister - Chile
The amount of imported LNG used to fuel thermo power plants on Chile's central SIC could double in 2010, Chile's energy minister Marcelo Tokman said at a press conference.
"LNG is now accounting for 13% of the power produced on the SIC," Tokman said. "And its participation in the matrix is only going to grow."
One of the positive results of the introduction of LNG in September 2009 is the reduced reliance on diesel for thermo generation, according to the minister.
"Generation with diesel has almost completely disappeared," Tokman said. "In 2008 at one stage almost 52% of our thermo plants ran on diesel which meant extremely high costs on the system. At the end of 2009, it was about 5%."
"This is a very good indicator of the security of our system. The crisis is now history," Tokman continued.
NEW CAPACITY, FLAT DEMAND
In 2009, increased capacity and flat demand led to greater reserve capacity on the grid. SIC capacity increased by 1.4GW in 2009, from around 13GW to 14.5GW. Demand barely rose over the period, according to the minister.
"In 2008 there were many times where our reserve margin was zero. But today we see the reserve at 1.8GW on the SIC. There are no supply concerns, and projects with another 3GW of capacity are currently under construction."
"Energy efficiency is here to say," Tokman said. "Not only as a response to crisis, but in terms of changed consumer habits."
Chile began importing LNG in late 2009 at the GNL Quintero facility in central region V.
By Christopher Lenton
Business News Americas
* Matrix as diverse as it has ever been - minister - Chile
Chile's energy matrix continued to diversify in 2009, the country's energy minister Marcelo Tokman told journalists at a press conference in Santiago.
"It is the most diversified matrix we've had in our history," the minister said. "In 2009 we brought on new conventional and unconventional sources of energy including wind, biogas, LNG at Quintero, and we have a plant in the Los Lagos region that runs on biodiesel.
"This doesn't take into account what we are adding in 2010 including geothermal potential," Tokman added. "We are also looking into second generation biofuels. We have to date approved US$45mn in financing for studies in second generation biofuels from biomass and micro and macro algae."
The country is making important strides in solar power as well, the minister added. This week Corema, Chile's regional environmental regulator for northern region Antofagasta, approved Spanish firm Solarpack's EIA to construct and operate Chile's first solar plant. Tenders are also set to be announced in the coming weeks for two solar pilot plants in the north of the country.
THE EXPLOSION OF WIND
The presence of wind farms has seen a sharp rise in Chile and is central to the diversification of the matrix, according to the minister.
"Wind has exploded in Chile," Tokman said. "Before this government it didn't exist. Until 2007, we only had 2MW in the south of Chile. But now we should have 200MW of installed capacity by the end of 2010.
"In 2006 we had three turbines in the country," Tokman continued. "Today there are 91 in operation. Wind projects totaling 186MW are undergoing environmental approval process, and this is on top of the 1.3GW of projects that already have approval. We are talking about something that wasn't part of the matrix a few years ago, and now it plays an important role."
In 2009, non-conventional renewable projects totaling 949MW of new capacity were submitted for environmental approval, 809MW of which was wind capacity. This figure also includes 9MW of solar projects, 28MW of biogas projects, 25MW of biomass projects and 78MW of mini-hydro capacity, according to the minister.
"For the first time ever, we had more renewable projects approved for environmental licensing than thermo projects," the minister said.
By Christopher Lenton
Business News Americas
* Petroperú to list shares on BVL exchange - Peru
Peru's state oil company Petroperú will list shares on Lima's BVL stock exchange in February in an effort to boost transparency, state news agency Andina reported.
"This is important because it will require that we provide information to the BVL and adopt norms required by the BVL and securities regulator Conasev," Petroperú president Luis Rebolledo said.
The company has already adjusted internal procedures to adapt to the BVL norms, he added.
Petroperú, meanwhile, is also taking steps to submit audited financial results. Internal information systems are being modernized in a process set to be completed in 2011.
"We're also taking steps to improve tender processes," Rebolledo added.
By Business News Americas staff reporters
* PDVSA carries out 8 major maintenance works in Apure in 2009 - Venezuela
The south-central E&P division of Venezuela's state oil company PDVSA carried out eight major maintenance works in Apure state during 2009, the company said in a statement.
The works were focused on the Guafita and La Victoria fields.
Maintenance included the replacement of "critical stretches" of the La Victoria-Guafita-Patio de Tanques Silvestre pipeline, as well as other piping.
The company also made general improvements to the fluid management tanks in the Flujo Guafita station as well as turbines on the La Victoria field.
PDVSA contracted private firms for three of the maintenance projects.
By Business News Americas staff reporters
* High crude prices send stabilization fund debt over US$139mn - Peru
Peru's fuel price stabilization fund has seen its debt surpass 400mn soles (US$139mn) as the oil price continues to climb, state news agency Andina reported, citing the national mining, oil and energy society (SNMPE).
Refineries have not passed on the higher crude prices in their fuel prices. Nor have they received regular weekly payments from the fund, but instead government promises for payment when the resources are available.
"The fund is worrisome because it continues in deficit, and we are seeing the crude price continue to rise, causing fuel prices to also continue rising," Guillermo Ferreyros, the president of SNMPE's hydrocarbons committee, said.
The fund's debt in 2008 reached nearly 3bn soles when oil prices spiked, but this was eliminated last year.
Ferreyros suggested that a way to avoid increased fuel prices on the domestic front could be to reduce the selective consumption tax (ISC).
By Business News Americas staff reporters
* Deforested land has potential for biofuel crops - consultancy - Peru
Peruvian consulting firm Maximixe claims there are 3.4Mha of deforested land in the country that could be used to cultivate biofuel crops, state news agency Andina reported.
Of the total, 75% are located in the Peruvian jungle in San Martín department (1.4Mha), Loreto department (950,000ha) and Ucayali department (654,000ha).
The crops with the most potential to be grown in the jungle are palm oil, sugarcane, jatropha and Samoa fiber.
Peru's mountain region makes up 400,000ha of the deforested land with potential for biodiesel crops.
The crop with the most potential to be grown in the mountains is rapeseed. Other crops that could be grown are the castor oil plant, sunflowers and potatoes.
Finally, Peru's coastal region accounts for 280,200ha of the total and would be most suited for sugarcane and sweet sorghum.
The deforested land on the coast is located in the departments of Tacna (69,500ha), Ica (57,900ha), Piura (48,100ha), Lima (45,300ha), La Libertad (33,500ha), Arequipa (16,800ha) and Ancash (9,100ha).
By Business News Americas staff reporters
* Repsol to present investment plan for block 57 in April - Peru
Spain's Repsol YPF (NYSE: REP) will present its investment plan in April for block 57 in Peru's Loreto department, state news agency Andina reported.
Repsol's Kinteroni XI discovery well turned up 2Tf3 (56.6Bm3) of natural gas in January 2008, and the company declared the block's commercial feasibility last October.
The company has 180 days to present its investment plan from the date it declared the block's feasibility, Andina cited the CEO of Peru's state oil company Petroperú, Daniel Saba, as saying.
Repsol will this year drill wells to confirm the size of the structure and then drill development wells. Commercial development will require an investment of US$100mn, Saba said.
Block 57 is located north of Camisea blocks 56 and 88, which are being developed by a consortium led by Argentina's Pluspetrol.
Repsol operates block 57 with a 53.8% stake, with the remainder held by Brazil's federal energy company Petrobras (NYSE: PBR).
Peru's energy and mines ministry last year struck a deal to supply the domestic market with 155Mf3/d of gas from the block when it begins production in the first quarter of 2012.
By Business News Americas staff reporters
* Neighbor set to invest in Bolivian gas infrastructure - Bolivia, Brazil
Brazil is interested in investing in Bolivian natural gas infrastructure, Brazil's ambassador in La Paz Frederico Cézar de Araujo was quoted as saying by Bolivia's state news agency ABI.
According to the diplomat, Brazil could be willing to invest US$1.5bn-2bn in the neighboring country.
Araujo said the government is working with Brazilian federal energy group Petrobras (NYSE: PBR) and petrochemical company Braskem (NYSE: BAK) on related projects.
Bolivian state hydrocarbons company YPFB earlier in the week announced a five-year investment program of US$11bn.
YPFB's investment program will be financed by Bolivia's government, external financing sources and foreign firms that have announced new agreements with the company. YPFB officials said late last year that they had already obtained a US$1bn loan from Bolivia's central bank.
By Business News Americas staff reporters
* Telvent, Gas Natural sign contract for the provision of turnkey tech solution - Mexico
Gas Natural México has signed a contract with Spanish IT firm Telvent (Nasdaq: TLVT) for the delivery of a turnkey technology solution to control the former's extensive natural gas distribution network, Telvent said in a statement.
Through this new solution, Gas Natural will be able to increase the efficiency and security of its 15,229km gas network, ensuring supply to 1.25mn residential and industrial customers in 38 municipalities of the country, Telvent said.
"Accurate, real-time field information will be integrated into Gas Natural's enterprise information systems to optimize processes such as billing and inventory management," the statement said.
Telvent is a global IT solutions and business information services provider serving several sectors such as energy, transportation, agricultural and environmental.
By Business News Americas staff reporters
* Ethanol sales reach 2.11Bl in December - Unica - Brazil
Ethanol sales by distillers in Brazil's center-south region, where 80% of the country's sugarcane is grown, reached 2.11Bl in December, according to the latest figures from Brazilian sugarcane and ethanol association Unica.
Of this total, 118Ml were exported and 1.9Bl went to the domestic market, Unica said.
Since the start of the 2009-10 sugarcane crop year last April, ethanol sales have reached 20.4Bl, 4.9% higher than the previous crop year.
Unica said that the ethanol price increase seen in Brazil over the last months was caused by weaker than expected sugarcane processing because of heavy rains affecting producing areas.
The association also said that Brazilian demand for ethanol has increased 25% since April last year.
By Business News Americas staff reporters
* Vale, Bunge sign ethanol transport agreement - Brazil
Brazilian mining major Vale (NYSE: VALE) has signed an 11-year agreement with US agribusiness group Bunge (NYSE: BG) to transport via rail 200Ml of ethanol per year in Brazil.
In a statement, Vale said the ethanol will be transported to the port of Itaqui in Brazil's northeastern state of Maranhão where it will be exported. Vale operates the railway lines to be used.
The deal is expected to remove some 700 trucks a month from highways.
As part of the agreement, Mitsui Rail Capital will lease 25 tank railcars to Bunge. The equipment will be manufactured in Brazil, according to the statement.
By Business News Americas staff reporters
* Petro Vista closes US$3.2mn private placement - Brazil, Colombia
California-based Petro Vista (TSX: PTV), an independent oil and gas exploration and production company, has completed a Cdn$3.3mn (US$3.2mn) non-brokered private placement.
The placement consisted of the sale of 16.7mn units at a price of Cdn$0.20 each, Petro Vista said in a statement.
The proceeds of the private placement will be used by the company for general working capital and to fund the company's exploration programs including the completion of the development well being drilled at its Tartaruga block offshore Brazil in which it holds a 35% participating interest.
Petro Vista also has E&P assets in Colombia.
By Business News Americas staff reporters
* Petroecuador, PDVSA have 45% of land needed for RPD refinery - Ecuador
Ecuador's state oil company Petroecuador and its Venezuelan counterpart PDVSA have acquired 44.9% of the land needed for the prospective Pacífico refinery (RDP) to be built in Manabí province, according to a report by state news agency El Ciudadano.
The companies have 1,347ha of the total 3,000ha needed for the refinery and its buffer zone, the report cited the refinery's chief Carlos Proaño as saying.
The two firms have completed basic engineering of the refinery and petrochemical complex since announcing plans for the JV in 2008.
Originally, the companies said the refinery would have a 300,000b/d capacity and be 51% owned by Petroecuador.
Testing of the refinery is expected to begin in December 2013, according to Proaño.
Foreign investors from the UK, South Korea and Japan had made a "firm commitment" to finance 70% of the project, Proaño said, without providing further details of the financiers or precise investment amounts.
In 2008, the companies estimated the project's cost at US$5bn.
By Business News Americas staff reporters
* Repsol would only sell YPF stake to Argentine partner - reports - Argentina
Spanish oil major Repsol (NYSE: REP) does not intend to sell a stake in its Argentine YPF unit to a non-Argentine partner, chairman Antonio Brufau was quoted as saying in local press.
"We're not looking for foreign [non-Argentine] industrial investors," Brufau said.
Repsol has been seeking to divest part of its 85% stake in YPF.
Brufau also said he sees no need for the company to tap markets for cash despite the demands set to be put on its development spending by major discoveries in Brazil and elsewhere.
"We are in a very comfortable situation," he said.
By Business News Americas staff reporters
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In-deph interview
* PDVSA to face challenging 2010
Thomas O'Donnell
Fulbright scholar/analyst
New School University
Venezuela
http://www.bnamericas.com/interviews/oilandgas/Thomas_O*Donnell_,New_School_University,1/169884000
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Main companies covered in today's news
* Caixa Econômica Federal
http://www.bnamericas.com/company-profile/en/Caixa_Economica_Federal-CAIXA/169884000
* Cosan S.A. Indústria e Comércio
http://www.bnamericas.com/company-profile/en/Cosan_S,A,_Industria_e_Comercio-Cosan/169884000
* Petroecuador
http://www.bnamericas.com/company-profile/en/Petroecuador-Petroecuador/169884000
* Bunge Fertilizantes S.A.
http://www.bnamericas.com/company-profile/en/Bunge_Fertilizantes_S,A,-Bunge_Brasil/169884000
* Yacimientos Petrolíferos Fiscales Bolivianos
http://www.bnamericas.com/company-profile/en/Yacimientos_Petroliferos_Fiscales_Bolivianos-YPFB/169884000
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