Boiler and Pressure Vessel

SIL 101 SIL (Safety Integrity Levels)
Wednesday, March 14th, 2007

The global importance of SIL (Safety Integrity Levels) has grown substantially in the oil/gas, petrochemical and other process industries over the last 10 years. However, for many end users, systems integrators, and product vendors, SIL […]

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What is a process plant Safety Instrumented System (SIS)
Saturday, March 10th, 2007

Any process loop identified as a safety system is referred to as a Safety Instrumented System (SIS). In the past, these loops were defined as Emergency Shutdown (ESD) or Safety Shutdown (SSD). The purpose of an SIS is to reduce the risk of an accident.
SIS loops defined: “An SIS is a distinct, reliable system used […]

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HART
Saturday, March 10th, 2007

HART (Highway Addressable Remote Transducer) provides digital communication to microprocessor-based (smart) analog process control instruments. Originally intended to allow convenient calibration, range adjustment, damping adjustment, etc. of analog process transmitters; it was the first bi-directional digital communication scheme for process transmitters that didn’t disturb the analog signal. The process could be left running during communication. […]

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Distributed Control System (DCS)
Saturday, March 10th, 2007

A distributed control system (DCS) refers to a control system usually of a manufacturing system or process or any kind of dynamic system, in which the controller elements are not central in location (like the brain) but are distributed throughout the system with each component sub-system under the control of one or more controllers. The […]

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Heat-resisting steels
Sunday, March 4th, 2007

Steels are now used for a wide variety of conditions entailing heat and corrosion under both static and dynamic stresses, such as aero engine valves, furnace conveyers, retorts, oil cracking units and gas turbines. Three important properties are necessary in material used at elevated temperatures:
1. Resistance to oxidation and to scaling.
2. Retention of strength at […]

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Applications of alloy steels
Sunday, March 4th, 2007

Structural steels
The structural steels can be grouped conveniently on the basis of tensile strength. However, the dividing lines between the classes are ill defined owing to the wide variation in properties obtained from one steel by varying the heat-treatment, and the ruling section in which the properties are required.
The basis of design of machine components […]

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Surfacing for Wear Resistance
Sunday, March 4th, 2007

For the successful hard surfacing or overlaying operation a welding procedure should be established. The procedure should be related to the particular part being surfaced and the composition or analysis of the part. It should specify the welding process to be used, the method of application, the prewelding operations such as cleaning, undercutting, etc.
The welding […]

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LEAK TESTING HYDROSTATIC PNEUMATIC VACUUM TESTING
Sunday, March 4th, 2007

LEAK TESTING
HYDROSTATIC TESTING (VESSELS)
HYDROSTATIC TESTING (BOILERS)
HYDROSTATIC TESTING (PIPING) (Plus Air)
HYDROSTATIC TESTING (TANKS)
PNEUMATIC TESTING (VESSELS)
PNEUMATIC TESTING (PIPING)
PNEUMATIC TESTING (TANKS) VACUUM TESTING
Leak Testing
Selection/Method.Requires we optimizes sensitivity ,cost and reliability of test.
There are two types of categories,Open Units/Sealed Units.Open or Single sealed Units:using evacuation or pressurization on one side or both sides of the unit.
Other points to research […]

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ASME B0008 - Section VIII - Pressure Vessels
Saturday, March 3rd, 2007

Division 1 - Basic Coverage
This Division of Section VIII provides requirements applicable to the design, fabrication, inspection, testing, and certification of pressure vessels operating at either internal or external pressures exceeding 15 psig.
Such pressure vessels may be fired or unfired. Specific requirements apply to several classes of material used in pressure vessel construction, and also […]

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ASME’s Boiler and Pressure Vessel
Saturday, March 3rd, 2007

ASME’s Boiler and Pressure Vessel Code controls the design, inspection, and repair of pressure vessels. The ASME B&PV Code has adopted the use of many ASTM NDT standards and practices. The ASTM documents are re-identified with a “S” preceding the “E” in the B&PV Code. For example, E-94 would become SE-94. NDT personnel are primarily […]

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Control Valve

Unfired Pressure Vessels, Boilers Fired Pressure Vessels Relief Valves
Saturday, March 3rd, 2007

(a) All unfired pressure vessels, boilers, and fired pressure vessels shall meet all applicable requirements of the Unfired Pressure Vessel Safety Orders and the Boiler and Fired Pressure Vessel Safety Orders unless the design, material and construction of the pressure vessel or boiler is accepted by the Division as equivalent to the ASME Code.
(b) Maximum […]

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Pressure Testing Plugs
Saturday, March 3rd, 2007

Straight-sided solid rubber provides a wide, strong, leak-free seal at testing pressures. Other company’s cheap, tapered, or “thinwall” plugs may leak or pop out under pressure. A plug that leaks under pressure causes inaccurate test results. Plugs that pop out waste time and put anyone in the area at risk of injury.
Corrosion resistant heavy duty […]

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Test and Measurement Equipment
Saturday, February 24th, 2007

Instruments and sensors used to test, measure, analyze, control, calibrate, display and record data in laboratory and other testing situations.
Analytical Instruments (4906 companies)
A wide classification of instruments that are used to analyze material samples, or their components, and record data specific to the application.
Calibration Instruments, Standards and Reference Sources (1541 companies)
Calibration instruments, standards and references […]

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Semiconductors
Saturday, February 24th, 2007

Analog and Mixed Signals (366 companies)
Analog and mixed signal ICs are integrated circuits in which many discrete logic and/or analog components are fabricated on a single chip of semiconductive material and packaged in a single case to form a functional unit.
Audio, Video IC (119 companies)
Audio and Video ICs are integrated circuit components that are designed […]

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Industrial and Engineering Software
Saturday, February 24th, 2007

Bar Code Software (135 companies)
Bar code software identifies or decodes bar code symbology, generates output strings corresponding to barcode values, creates bar code fonts, prints bar codes, and/or performs tracking, etc. Learn more about Bar Code Software
BPM Software (Business Process Management) (105 companies)
Business process management (BPM) software enables companies to map, model and improve business […]

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Data Acquisition and Signal Conditioning
Saturday, February 24th, 2007

Analog I/O (101 companies)
Analog I/O devices process analog signals (e.g., output of transducers) and output the results in analog format. Learn more about Analog I/O
Analog-to-Digital Converter Chips (ADC) (73 companies)
Analog-to-digital converter chips (ADC) transform information from analog form into digital form.
Search by Specification | Learn more about Analog-to-Digital Converter Chips (ADC)
Analog-to-Digital Converters (213 companies)
Analog-to-digital converters […]

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Manufacturing and Process Equipment
Saturday, February 24th, 2007

Abrasives, Grinding and Finishing (2082 companies)
Equipment and products used for abrading , smoothing, or polishing.
Air Quality (1555 companies)
Instrumentation and equipment used to control the properties and degree of purity of air. These types of equipment include dust collectors, oxidizers, scrubbers and adsorption equipment.
Building and Construction Equipment (160 companies)
Building and construction equipment is used in a […]

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Single component diaphragm valves
Saturday, February 24th, 2007

Related keywords: bronze valve, toro sprinkler valve, reed valve, component engineering, grinding valve, valve lapping, timing valve, component case, tufline valve, com component, lapping valve, component extrusion, quick exhaust valve, telescoping valve, lucifer valve, inert valve, union valve, habonim valve, thermoplastic valve, diaphragm valve manufacturer
Single component diaphragm valves are designed to provide a precise fluid […]

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What are the factors to consider for selecting & sizing damper actuator?
Saturday, February 24th, 2007

Related keywords: electric valve, damper actuator, electrical valve, electronic handwheel, hydraulic valve type, miniature electric valve, electric valve actuator, electric actuated valve, electric sprinkler valve, pneumatic valves type, electric pneumatic valve, electric actuator valve, electric valves radio, hydraulic actuation, electric actuation, belt piston actuator, electric actuated ball valve, electric valve miniature, exhaust piston quick type […]

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4-Way Valve Proving System CUSTODY METERING
Wednesday, February 21st, 2007

A valve-proving system confirms the effective closure of both main safety valves in fuel-fired equipment. Should you add it to your gas control scheme?
Simply put, a valve-proving system is a safety control used on gas fuel-fired equipment that verifies the effective closure of two safety shutoff valves in series by detecting gas leakage.
TIP 1: Understand […]

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A Time of Change for the G-8 Category

A Time of Change for the G-8 Category: Geopolitics & Macro-Economy, Country: Global , Publish Date: 21/Jul/2006 , Company:

For the second consecutive year, the G-8 summit was overshadowed by other world events. Suicide bombers attacked London's rail system in 2005 as G-8 leaders were meeting in Scotland. This year the story was Hezbollah and Israel. When the G-8 meets next year in Heiligendamm, Germany, it will take effort to remember when the discussions on the G-8 agenda actually dominated the news. In both 2005 and 2006, the items on the official agenda had little to do with bombs, guns or the conditions underlying the violence -- and in both cases, outside events completely stole the spotlight from the agreements the G-8 leaders made. This somewhat diminished the stature of the G-8 as an institution; media attention has gone elsewhere, the momentum built up by working groups on thematic issues for the summit is lost, and the leaders have appeared to be distracted by other issues. Though addressing global security was never the G-8's purpose, voters expected the leaders present to give some response to the bombs in London and the tensions this year in the Middle East. Thus, for two years running, the G-8 summit has been unfocused, despite ambitious action plans on climate change, debt and AIDS (2005) and energy security (2006). Extending this logic a bit further, an argument could be made that the G-8 has outlived its usefulness. The issues that it was founded to solve -- primarily global economic matters -- are now the subject of negotiations and discussions (some of which occurs under the auspices of the G-8 structure) by finance ministry officials year round. A host of other international organizations (some formal and some informal) have been created in the past 15 years to harmonize or coordinate international action on other issues that fall within the G-8's purview, including environment, energy and global trade. The fact that so many of the issues the G-8 was created to address now have been taken up by others as their raison d'etre shows that the G-8 correctly identified the major issues requiring international cooperation. However, these small working groups, sub-groups and separate organizations are terribly unglamorous, and national leaders stand to gain few political benefits at home from the pragmatic, incremental work plans these groups produce. So while the mission of the G-8 is being fulfilled, it offers world leaders little more than a yearly photo opportunity. A Mixed Record The G-8 Summit in Gleneagles, Scotland, generated great expectations in 2005: British Prime Minster Tony Blair put climate change at the top of the agenda, and rock stars Bono and Sir Bob Geldof led a giant "Make Poverty History" campaign focusing on aid and debt relief for Africa. The results so far have been mixed. Clear progress has been made on debt issues, but less progress is visible on diseases and even less on climate change. Poverty activists argue that they were let down by the Gleneagles plan on poverty reduction, but the numbers tend to show that the G-8 agreement has scored some success in reducing the debt of the poorest countries. The specific numbers get tricky, but according to nongovernmental organization DATA (Debt, AIDS, Trade, Africa), which was co-founded by Bono, the G-8 are on track to meet their commitments. The multilateral debts for 19 of the world's poorest countries, 14 of them in Africa, already have been cancelled -- with immediate and tangible benefits -- and 44 other countries have been qualified for similar debt relief. Despite this evidence that commitments have been taken seriously, critics still complain that the debt cancellation promises made at Gleneagles fell short of the commitments made by the same governments years earlier; they argue that the gains represent only a minor improvement in the financial status of the world's poorest countries. On climate, there have been fewer results. Blair tacitly acknowledged at Gleneagles that the Kyoto Protocol could not provide the model for global climate change policy moving forward, and that a new approach -- one that had the buy-in of the United States and that would be based on development and sharing of technology -- would need to be embraced. But though the private sector has made significant strides in addressing climate concerns since that announcement, no movement has really been made in U.S. or international policy. President George W. Bush did announce an agreement with Australia, China and India to pursue an alternative to Kyoto. However, not only has the U.S. climate initiative failed to become a forum for world policymaking, the most important steps toward its implementation -- meetings designed to translate broad promises into concrete activities -- have been delayed. The only progress toward a dramatic shift in national climate-change policy in the United States has come at the state level, and is completely unrelated to the G-8. Similar outcomes have been noted with the Global Fund to Fight AIDS, Tuberculosis and Malaria -- which is constantly receiving pledges that are not fully met -- and with aspirations for reducing agriculture subsidies during the Doha Round of trade talks. Protesters Stymied Given the course of outside events, the G-8 summits of the past two years have not produced the kinds of results that activist groups who organize demonstrations around the meetings have been hoping for either. Protesters have become a feature of the summits that is almost as standard as the posed "family portrait" shots of the world leaders who attend them. Radical protesters begin with the premise that the leaders of the most powerful countries in the world gather at the G-8 to plot their continued global dominance. Less radical demonstrators view the meeting as a unique opportunity to communicate their position directly to the most important world leaders. Finally, because each agenda is organized around dominant issue themes, the meeting attracts protesters who focus on the key issue of the year. In the meeting at St. Petersburg this year, this meant a focus on energy. The protests that have been staged around G-8 meetings have been large at times and, in some cases, have led to riots that turned violent (as in Genoa, Italy, in 2001). From 1999 to 2003, the G-8 summit was seen as a place to make complaints known about the power amassed in capitalist countries and to protest corporate globalization. This fad faded relatively quickly, however, and those who have gathered to protest at meetings in recent years tend to be issue-focused activists, such as the debt-relief campaigners from churches who demonstrated at Gleneagles. Protests at the St. Petersburg venue essentially were outlawed by the Russian government (and those identified as potential protesters soon found themselves being conscripted into military service). Across the globe, however, activists organized demonstrations to coincide with the meeting, hoping to capitalize on the media coverage of the meeting to bring attention to their campaigns. Most of the protests this year focused on climate change, though G-8 leaders separated environmental discussions from energy discussions as much as possible. Meanwhile, tensions in the Middle East ratcheted upward suddenly and seriously. Thus, for the second consecutive year, the protesters found the same thing as the G-8 leaders themselves: the media coverage they hoped to attract to their agendas was not to be found. Finding a Purpose As it stands, the most pressing global issue of the day -- wars in Afghanistan, Iraq and Lebanon, and the possibilities of terrorist strikes around the world -- is not a subject for the G-8 meeting. So what then is the purpose of the G-8 summit? In some ways, the G-8 leaders are in a bind. On one hand, the annual summit is an event where important leaders gather to talk. This alone makes it newsworthy. Further, the G-8 as an institution fosters a number of working groups. Government representatives meet with little fanfare to discuss issues such as currencies and trade, judicial harmonization, terrorism and organized crime. The action plans created for the G-8 summit are the result of these conversations, but these sub-groups do much more behind-the-scenes work that does not appear in the consensus statements and receives little media attention, but nonetheless brings changes in public policy within G-8 member countries. On the other hand, the agreements that heads of state make -- with much fanfare -- at the summits are not addressing the public policies that are foremost in the public mind. And this makes the group seem less relevant. Moreover, the concessions they make in the official documents amplify the fact that the official work of the summit is highly political -- and often geared toward each leader's domestic audience rather than the rest of the world. A line in the 2006 St. Petersburg consensus statement illustrates this well: "Those of us who have or are considering plans related to the use of safe and secure nuclear energy underlined its important contribution to global energy security." Paraphrased: Those of us who agree that this is a good thing agreed that this is a good thing; those who do not, did not. Such lines capture the naked political purpose the G-8 serves. The heads of state look like world leaders when they attend the G-8, and every head of state at the summit derives some political benefits at home from attending. For Bush, whose unilateral tendencies in foreign policy have been widely criticized, the summit is an opportunity to show that he is willing to work in international forums and to cooperate in global affairs. For leaders like Stephen Harper and Romano Prodi, it provides a sense of legitimacy; voters in Canada and Italy see these new heads of state on the same global stage as George W. Bush and Vladimir Putin. The topics that are selected for discussion further allow for domestic political gain. Consumers in all Western countries are being affected by high energy prices, and Russia's use of natural gas supplies as a tool in foreign policy made "energy security" a meaningful term for Europeans. Of course, G-8 leaders did nothing in St. Petersburg to increase world oil supplies or to decrease demand for them -- nor did they win a commitment from Putin that Moscow would not again use its natural gas supplies as a weapon against European governments. The leaders did, however, talk about these issues, which from a political standpoint is the next best thing to solving the problem. Moving forward Despite the overt indications that the G-8 summit has devolved into a three-day photo op, the degree of cooperation between the G-8 governments is increasing markedly -- and not just at the diplomatic level. Regulators, judges and legislators are meeting more and more frequently to learn from each other, and broad consensus among the world's largest democracies is emerging on many global regulatory issues. On the surface, it would seem a paradox that the G-8 has become a less-meaningful talk shop just as government representatives are coming together in meaningful ways more often, but the development actually makes sense. As government representatives work together, there is less friction between G-8 governments -- and thus, fewer issues that need to be resolved at the head-of-state level. Finance ministers have a number of forums (the G7, G-8 plus 5 and G-20) to discuss matters of global financial stability, exchange-rate volatility and other critical issues. Securities regulators have the International Organization for Securities Commissions (IOSCO), which attempts to regulate corporations and financial institutions effectively in an era of globalized business. Intelligence on terrorism and organized crime is shared better than ever before among state police organizations, and through Interpol and other global networks of police forces. Dozens of these global government networks exist and are efficiently harmonizing laws and regulations across borders. The G-8 member states might be comfortable in this evolving role, but this is unlikely. It is more likely that successive G-8 hosts -- who set the agenda for the organization for a year -- will try, as Blair did, to increase the relevance of the group's work. But with security issues off the table, their options are limited. The temptation would be to follow Blair's model and bring forward a major, somewhat ignored global issue that the assembled nations actually can address, with great certainty of success. The downside is that this moves the G-8's work farther from the most immediate and pressing concerns of the world. Another option would be to draw more attention to the intergovernmental work that takes place behind the scenes. This would show the world the heretofore invisible but important work that the G-8 and its member states do -- but with the risk of awakening fears of either an emerging "world government," or of global capitalist collusions, among those at the extreme ends of the political spectrum. Finally, they could acknowledge that the most important work accomplished at the G-8 summit is relationship-building between world leaders -- a time for casual conversation (and, oddly, the occasional back rub) -- and to openly admit that it is otherwise a retreat and photo opportunity, with a discussion agenda that is transparently meaningless. The third option seems the least likely, while the first holds the most promise for the G-8 leaders -- who, after all, win elections by promising to achieve visions, not simply to deal competently with international frictions.

US says Iran offer falls short of UN Security

US says Iran offer falls short of UN Security Council demands
Date: 24/08/2006



The United States said on Wednesday that Iran's request for talks fell short of the U.N. Security Council's demand for it to halt its nuclear program. Washington, in its first reaction to Iran's reply, did not reject Tehran's response outright and said it would review it. The White House said it was consulting closely with other Council members about possible unspecified next steps and France said Iran's offer of talks could only be accepted if it first halted uranium enrichment. "We acknowledge that Iran considers its response as a serious offer and we will review it," White House spokeswoman Dana Perino said. "The response, however, falls short of the conditions set by the Security Council which require the full and verifiable suspension of all enrichment-related and reprocessing activities." Handing over its formal response on Tuesday to a nuclear incentives offer from major powers, Iran said it contained ideas that would allow serious talks about its standoff with the West to start immediately. President George W. Bush spoke to U.N. Secretary-General Kofi Annan, who plans a visit to the Middle East, including Iran, in the coming days. Tehran gave no sign of heeding a U.N. Security Council demand that it freeze uranium enrichment by Aug. 31 or face the prospect of sanctions. The enrichment work can make fuel for nuclear power plants or material for warheads. The five permanent Council members -- Britain, China, France, Russia and the United States -- and Germany offered Iran economic and other incentives to stop enrichment. MOTIVE QUESTIONED Analysts say Iran's answer was probably meant to divide Security Council members Russia and China, important trade partners of Tehran, from the United States, Britain and France, which have backed tougher sanctions. All five have a veto on the Council. French Foreign Minister Philippe Douste-Blazy said world powers were ready to heed Iran's call for talks only if it suspends enrichment. "As we have always said ... a return to the negotiating table is tied to the suspension of uranium enrichment," he told a news conference in Paris. Verifying Iran's activities could be difficult. Noting "significant gaps in our knowledge and understanding of the various areas of concern about Iran," the U.S. Congress said in a report on Wednesday the U.S. intelligence community was ill-prepared to assess Tehran's nuclear capabilities and intentions and questioned whether the United States could even effectively engage in talks with the Islamic Republic. The Bush administration said it was handling the problem. U.S. stocks added to losses after the U.S. statement, as Wall Street reacted negatively to the announcement. An Iranian news agency report that Tehran will soon announce a "very important achievement" in an unspecified area of nuclear technology, adding to the negative sentiment. Oil prices, which have surged to record highs partly due to tensions over the atomic standoff, fell below $73 a barrel. 'RESOLVED THROUGH TALKS' "Iran expects a logical and fair (Western) reaction to its reply," government spokesman Gholamhossein Elham was quoted as saying by the official IRNA news agency. "Iran is fully prepared for any possible scenario but we think that Iran's nuclear issue could be resolved through talks." Western diplomats said the sextet would reserve judgment pending a report from U.N. nuclear watchdog chief Mohamed ElBaradei, due Aug. 31, which will certify whether Iran has stopped enrichment-related work or not. The U.S. ambassador to the United Nations, John Bolton, said Washington would move quickly on a resolution seeking sanctions if Tehran rejected the incentives offer. A Chinese Foreign Ministry statement urged Iran to consider international concerns and take "constructive steps ... We also hope that other parties remain patient and calm," it said. Russian Foreign Ministry spokesman Mikhail Kamynin was quoted by Interfax news agency as saying: "Russia will continue with the idea of seeking a political, negotiated settlement concerning Iran's nuclear program." Iran, the world's fourth-largest oil exporter, says it needs to enrich uranium as a peaceful, alternative energy source and has a right to do so under the nuclear Non-Proliferation Treaty.

Venezuela to increase oil exports to China

Venezuela to increase oil exports to China to 500kb/d by 2009
Date: 24/08/2006



Venezuela aims to become a top oil supplier to China and plans to increase oil sales to the oil-thirsty economy to 500,000 barrels a day in 2009, Venezuela's president said. "We're getting to 150,000 barrels of crude a day [in sales to China], and next year we will double it to 300,000 barrels a day, and we will reach 500,000 barrels a day in 2009," President Hugo Chavez said during a telephone interview broadcast on a state-owned television channel. "With this, Venezuela becomes one of the top oil suppliers to the Chinese giant." Mr. Chavez is in the middle of a six-day trip to Beijing, his fourth visit since taking over as president in 1999. During the trip he has signed deals for housing, mining, telecommunications and oil with Chinese companies. One of those deals was between state oil company Petroleos de Venezuela SA, or PdVSA, and China National Petroleum Corp.'s service-and-engineering unit, involving sales of oil-drilling rigs, a person familiar with the plans said. The deal will consist of the purchase of 12 Chinese-manufactured oil-drilling rigs, which are expected to be produced by Baoji Oil Machinery Co., CNPC's largest oil-equipment maker by capacity, the person said. The two companies also will set up a joint-venture factory in Venezuela for the production of more drilling rigs, the person familiar with the plans added. No details were available on the value of the deal. Depending on their use, oil rigs can cost less than $10 million or as much as $100 million for the complicated structures used to reach oil deposits deep beneath the ocean. In the past few years, surging oil demand and the need to explore for more reserves has sharply pushed up the costs of buying or renting drill rigs. The leftist leader is expected to tour a plant where the Chinese are set to build a satellite for the Venezuelan government to be named Simon Bolivar, after the country's 19th-century independence figure. Mr. Chavez has sought to strengthen relations with Iran, Cuba, China and Russia, among others, to slowly reduce reliance on business dealings with the U.S. A delegation from PdVSA visited Baoji in March and expressed interest in long-term cooperation, the Chinese company said in a statement on its Web site. China is seeking access to energy sources in Latin America to fuel its booming economy.

Europe likely to miss 2010 renewable energy target

Europe likely to miss 2010 renewable energy target
Date: 24/08/2006



The European Union is set to miss its 2010 targets for renewable energy development because many countries are lagging behind their goals in the bloc's efforts to fight climate change, energy experts said. The EU aims to have a 12 percent share of renewable energy in the bloc's total energy consumption by 2010, up from a current estimated share of 6-7 percent. "We will more likely to reach 10 percent," Wiktor Radlow, head of European Commission's new and renewable energy sources research unit, said on Wednesday. "The 12 percent target is reachable, but within 1-3 more years. It is a continuous process," Radlow told Reuters on the sidelines of an international renewable energy congress in Florence. The EU's biofuels target is set at 5.75 percent of total fuel use and green electricity should account for 22 percent of gross power output by 2010. The bloc's current renewable power share is about 14 percent, little changed from 2000 despite growing absolute levels as increasing volumes of traditional fuel -- oil, gas and coal -- are burnt every year, energy experts said at the congress. European Commission experts said the 25-country bloc was likely to make 18-19 percent of its power from renewable sources by 2010 and would lag behind the biofuels target too. "These targets are absolutely unrealistic," said Michael Jefferson, a UK energy and environmental issues adviser. "The EU would not get to the power target. There is too little being done," said Jefferson. The EC cannot punish members for dragging their feet because the targets are non legally binding and were set to encourage member states to develop green energy. Renewable energy saves annually 130 million tonnes of carbon dioxide (CO2) -- a greenhouse gas produced in large amounts by energy sector and widely blamed for global warming. MIXED ACHIEVEMENTS Britain was likely to miss its own 10 percent renewable power target for 2010 as it has been slow to start implementing major green energy projects, said Martin Alder, managing director of UK wind turbine company Wind Direct Ltd. "I don't think we'll get to 10 percent in 2010, but we won't be far off. We would be around 8-9 percent," Alder said. He said many new UK renewable projects were being developed but it would take 3-5 years for them to start up and help meet a target of a 15 percent renewable energy share by 2015. Germany and Spain are the EU's leaders in renewable energy development. German environmentalist Hans-Josef Fell said his country last year came close to the EU 12 percent target for all renewable energy, mostly due to favourable legislation which has boosted the sector. Italy was likely to reach its green energy targets, said Carlo Andrea Bollino, chairman of GRTN -- a government body responsible for the sector.

Foreign offshore China asset sales sparks questions

Foreign offshore China asset sales sparks questions
Date: 24/08/2006



China needs foreign expertise to scour the seabed for the energy sources it hopes will keep its economic juggernaut going, but a looming round of asset sales suggests not every offshore operator has been seduced by talk of riches beneath its waters. At least three overseas firms are reportedly considering exiting China, following the trail blazed by U.S.-based Apache Corp. (APA) in June, when it sold its 24.5% stake in the Zhao Dong block for $260 million to Australia's Roc Oil (ROC.AU). Roc confirmed this summer that Trust Company of the West was also hunting for a buyer for its stake in Zhao Dong, while U.S.-based Ultra Petroleum Corp. (UPL) is mulling its strategy in China in the belief that the new operator of fields where it has an interest - Anadarko Petroleum Corp. (APC) - wants out. This has prompted analysts to ask whether there has been a fundamental shift in the investment environment in China's offshore oil sector or whether the sudden rise in corporate activity is purely coincidental. Steven Knell of consultancy Global Insight said: "There has certainly been a pickup in activity in the sector in terms of a redistribution of holdings, but I don't know if I would go so far as to say it is a trend. "It is interesting that people looking to move out of the sector has coincided with more promising upstream potential that exists there." That promise was underlined by a world-class discovery by Husky Energy (HSE.T) in the South China Sea in June, with the Canadian firm estimating that the field contained 113 billion to 170 billion cubic meters of recoverable natural gas reserves. CNOOC Ltd. (CEO), the listed arm of China National Offshore Oil Corp. and China's largest offshore oil producer by output, has an option to take a 51% stake in the Husky block. The sky-high cost of crude and strong gas prices may explain why companies are prepared to exit China now because they believe they can maximize the value of their assets by selling at the peak of the cycle. However, Knell said the number of potential buyers was likely to be constrained by current energy policy in China, including the recent introduction of windfall taxes and the system of wholesale and retail price caps on oil products that are out of kilter with the global market. "If there is any movement on domestic fuel price increases, then that would make sales to big oil companies an attractive proposition, but at the current high oil prices, firms would be taking a loss on these sales and may not be willing to prop up the Chinese need for energy," he said. Many of the production sharing contracts being agreed to mean that companies would need to divert a large amount of their production to the mainland under the current policy at below-market prices. In the spring, the Chinese government imposed a windfall tax on sales of oil by producers, with payments calculated each month and charged every quarter. Companies that produce oil onshore and offshore China to be sold in the country are subjected to a windfall tax of 20% to 40% on the portion of the price that is above $40 a barrel. But many in the industry felt the windfall tax was introduced in an ad-hoc way that complicated the ability of oil explorers to budget effectively. A spokeswoman for Ultra Petroleum told Dow Jones Newswires: "The Chinese government had not communicated (this policy) to the operators until late March. "They then spent pretty much all of the second quarter figuring out how it was going to work, and we didn't get a final ruling until July." The policy led to Ultra's severance and production taxes in China rising by $2.8 million between April and June, although the spokeswoman denied that it had caused the company to become more bearish on the country. Ultra's investment case for its China assets was built on oil prices at $18/bbl, so imposing a windfall tax on sales above $40/bbl meant the company was still generating healthy margins, she said. Gideon Lo, an analyst at brokerage DBS Vickers, pointed out that other countries slapped harsher taxes on oil sales and therefore any round of consolidation in China's offshore exploration industry was likely to be driven by individual reasons. In the case of Anadarko, executives must sell assets to pare down debt accumulated during its acquisitions of Kerr-McGee and Western Gas Resources for $21.1 million in cash and the assumption of $2.2 million debt. Anadarko has already said that a list of candidates is being drawn up that could raise up to $10 billion in after-tax proceeds. This list includes its Canadian holdings, and analysts think its Bohai Bay assets will also be marketed when the company provides detailed guidance during the fourth quarter. Some companies remain firmly positive about China's potential, with the vice-president of international operations at U.S.-based Devon Energy Corp. (DVN) stating this week that the company was interested in further opportunities offshore. BG Group (BRG), the U.K.'s third-largest oil and gas group, entered China for the first time this summer with two production-sharing contracts covering two deepwater blocks in the South China Sea with CNOOC. Should the Anadarko assets in Bohai be put up for sale, they might tempt some multinational firms to reenter the offshore China sector after a series of wells drilled in shallow waters in the late 1970s and early 1980s turned out to be dry. DBS Vickers' Lo said multinational oil producers were "still thirsty" for exploration and production projects and the Husky Energy find would have turned heads in their boardrooms, but China would have to make more blocks available. This could prove tricky, as many areas of the seabed are at the heart of disputes between China and its neighbors such as Japan. "The East China Sea is too sensitive an area. I think multinationals may be more skeptical (about acquiring blocks) there," Lo said. Other areas claimed by China and several nations include the Spratly Islands in the South China Sea. But there may also be a feeling among the big oil firms that all the big discoveries may have been made and their prospects are brighter elsewhere in the world. According to a report by consultancy Wood Mackenzie, the growth in offshore production is unlikely to be large enough to prevent China's total supply from failing, citing various factors, including the relatively small sizes of shallow water fields and difficulties in attracting international investment for deepwater exploration.

China to spend US$100m to study potential of methane hydrates Date: 24/08/2006 China will spend Yuan 800 million ($100 million) over the next 10 years to study the use of gas hydrates as a new energy source, state-run China Daily reported Wednesday. China expects trial exploration technology for gas hydrate to become viable sometime between 2010 and 2015, according to the report. Gas hydrate is a crystalline compound of water and natural gas with methane as its major ingredient, according to an industry report posted Monday on the National Development and Reform Commission website. "But further technical breakthroughs need to be made before the fuel can be commercially developed," the report said. When lit, every cubic meter of gas hydrates is capable of releasing as much energy as 160-180 cubic meters of natural gas. "China so far has discovered enormous reserves of gas hydrates in the offshore areas only those spotted in the northern part of the South China Sea are expected to amount to half the oil resources on the land," according to the NDRC report. China's recoverable oil reserves stood at 21.2 billion mt as of September 30, 2005, according to figures from the Ministry of Land and Resources. According to the newspaper, optimists say gas hydrates could replace conventional fossil fuels like petroleum and coal, thanks to abundant hydrate deposits under the sea. They believe that the world's gas hydrates reserves are equivalent to as much as twice the combined amount of coal, oil and natural gas, sufficient to meet global energy demands for a thousand years. China began preliminary research into gas hydrates in 1999, and plans to work with its German counterparts to sample the fuel in the northern part of the South China Sea within the year. Some Chinese energy experts, however, are not so enthusiastic, saying the new energy source would not be available for every day use until far into the future, the newspaper reported. "Gas hydrates development is still at a very nascent stage, and we need to do a lot more work to get it onto the ground," the newspaper cited Ni Weidou, chairman of the Tsinghua-BP Clean Energy Research and Education Center, as saying. "Meanwhile, we cannot rule out the possibility of finding another source which is competitive with gas hydrates in the future." Ni said coal-to-liquids technologies would be the most feasible to address concerns over the price of petroleum and coal, citing China's rich coal resources. "As oil prices are not expected to fall below $50 per barrel, coal-converted fuels such as methanol and other oil products will be major alternatives to ease China's heavy reliance on oil," Ni said. A growing number of energy firms have shown strong enthusiasm for coal-to-fuel projects in China to cash in on the government's willingness to boost the development of oil alternatives. The country's biggest coal company China Shenhua Group has teamed up with Royal Dutch Shell and South Africa-based Sasol on the joint study of coal-to-liquids projects in China, which aims to convert coal into 30 million mt of oil by 2020. Its smaller rival China National Coal Group Corp has also announced a partnership with four other companies, including Sinopec, to build a Yuan 21 billion project in North China to turn coal into methanol and dimethyl ether--a clean fuel that can replace liquefied petroleum gas and gasoil.

Shell sees uncertain future for EU gas-fired power demand

Shell sees uncertain future for EU gas-fired power demand
Date: 24/08/2006



Gas-fired power generation may not be the primary driver of future gas-demand growth that many industry experts in Europe believe, upstream major Royal Dutch Shell believes. Although strong growth is forecast globally, "there is a question over" whether gas-fired power generation will be the motor for that growth, Shell Energy Europe spokesman Ludwig Moehring is quoted by Dow Jones as saying. Resurgent interest in nuclear generation, partly as a result of high gas prices and concerns over emissions targets, challenge expectations for the role of gas in power generation. "How will consumption respond if gas prices stay at current high levels?", Moehring asked, adding that uncertainty over European gas demand, and power-sector economics, make long-term investment in the gas industry "increasingly more difficult". Significance: Shell's comments are driven by widespread industry concerns over the level of long-term investment in gas infrastructure in Europe and fears that the new regulatory and operational framework is increasing uncertainty and investment risk. Ensuring that sufficient investment is made in gas infrastructure and that LNG and pipeline supplies reach Europe will help to mitigate against the negative impact of competition between markets for supply, Shell believes. The group also wants European industry and policymakers to work more closely together to reduce unpredictability and uncertainty in global gas markets, particularly as gas trading becomes more international. With rising gas prices and a lack of development in gas-to-gas competition, natural gas is currently uncompetitive as a source of new power generation in much of Europe, Global Insight believes. This means there is a real risk that the power sector may not be a strong engine of gas-demand growth as hitherto envisaged, and could even lead to gas use being 100-150-Bcm lower in 2030 than the 770-820 Bcm forecast.

Centrica has eye on possible acquisition of Gaz de France and Suez Assets Date: 24/08/2006 The U.K.-based gas and power utility Centrica is closely eyeing developments in France and Belgium as the European Commission (EC) decides whether or not to approve a proposed merger between Gaz de France (GDF) and Suez. The EC said last week that it had some concerns about aspects of the merger, specifically the amount of the power and gas market in France and Belgium that a merged GDF-Suez would control. Implicit to gaining approval will be a number of divestments and, according to the U.K. Times newspaper, Centrica has its eye on several possible acquisitions should GDF or Suez be required to divest assets in order to gain approval for the merger. Centrica is reportedly most keen on acquiring GDF's 25% stake in the Belgian power company Société de Production Electrique (SPE). Centrica already holds a 25% stake in SPE and would have first refusal should GDF be forced to sell its stake. Other gas and power assets are also interesting Centrica, which is ready to make a number of bids should they become available. Significance: Centrica is one of several European utilities that are closely watching the progress of the GDF-Suez merger. Enel is also interested in expanding its business in north-west Europe, having been rebuffed in an earlier effort to acquire Suez itself. It is all but certain that GDF and Suez will be forced to divest assets in order to gain approval for the merger, and this will give other European utilities a chance to expand in the French and Belgian markets, which have been dominated by Suez and GDF.

Chinguetti to recover only half estimated reserves in Mauritania

Chinguetti to recover only half estimated reserves in Mauritania
Date: 24/08/2006



Australian company Hardman Resources has said they do not expect the Chinguetti field offshore Mauritania-bedevilled by problems since it came onstream earlier this year-to recover half the estimated reserves of 123 million barrels. According to Upstream, Hardman's conclusion was based on lower-than-expected production from the existing wells. Last month, the Chinguetti's operator Woodside Petroleum issued a warning regarding a possible reserves downgrade (see Mauritania: 20 July 2006:Chinguetti Field Reserves Questioned as Production Falls Further in Mauritania). Roc Oil chief executive John Doran released a statement agreeing with Hardman on the field's downgraded recoverable reserves: "[t]he decline was due to different factors in each of the six producing wells-gas production, early water arrival, and/or limited productivity depending on the nature of the particular well and the way it was completed in the reservoir". Doran added that "Roc would not be surprised if Chinguetti's 123 million 2P reserves were reduced by 25% to 50%". Significance: The announcement of the expected news of the downgrading follows the declining production capacity of Chinguetti over the last few months, however, it is still disappointing considering the high hopes for Mauritania's offshore oil when the field came onstream in February (see Mauritania: 24 February 2006: Chinguetti Due in Mauritania; First Oil for the West African State). It has taken Woodside (which holds a 48% stake) and its partners (Hardman Resources—19%, Premier Oil—8%, and Roc Oil—3%) five years to develop the Chinguetti field, which is situated 80 km off the coast of Mauritania. Production levels have stabilised at 35,000 barrels per day (b/d), which is less than one-half of what the field was capable of producing when it first came onstream. Initially, it had a peak capacity of 75,000 b/d, but fell first to 46,000 b/d, and then to 41,000 b/d (see Mauritania: 24 February 2006:Chinguetti Due in Mauritania; First Oil for the West African State, Mauritania: 31 May 2006:Mauritania's Chinguetti Field Sees Production Drop for Third Consecutive Month and Mauritania: 16 May 2006:Mauritania's Chinguetti Field Sees Production Capacity Fall Again). Hardman said Chinguetti's revised reserves estimates will be published by Woodside before the end of the year.

Pertamina delays ambitious expansion of fuel retail network

Pertamina delays ambitious expansion of fuel retail network
Date: 25/08/2006



Pertamina has pushed out plans unveiled earlier this year to build about 2,000 fuel stations throughout Indonesia during 2006. The company now aims to build 700 fuel stations in 2006 and 1,000 in 2007 via both direct investment and partnerships in a bid to meet budding competition from Malaysia's Petronas and Royal Dutch Shell, a Pertamina official said on Thursday. Given current demand levels, Pertamina would have liked to build 2,000 stations in 2006 but the effort has gone slower than planned, Pertamina Trading and Marketing Deputy Director Hanung Budya said. "Many investors have expressed interest in partnering with us. Currently we have received 2,428 proposals," Hanung said. Of those proposals, Pertamina has agreed to 630, rejected 415 and continues to evaluate the rest, he said. Pertamina's plans include investing $22 million in 2007 to build at least 55 wholly-owned and operated fuel stations, he said. The Indonesian government has welcomed foreign investors into the country's downstream oil segment after scrapping Pertamina's monopoly in 2001. A law passed that year opened up the country's non-subsidized fuels market throughout the country to foreign investors. Since then, Shell has opened three pump stations offering high octane gasoline in the capital Jakarta and Western Java. Petronas has also opened 1 station in Jakarta. Pertamina has about 3,147 pump stations throughout Indonesia, among which 60 are owned and operated by the company.

Pertamina eyes entry into power sector with gas-fuelled plants Date: 25/08/2006 Indonesia's state-owned oil and gas company Pertamina is turning its attention toward the electricity generation business, and reckons it can make an entry in the next four years, a senior company official said on Thursday. "We want to provide all kinds of energy, not just fuel, in the country," Pertamina's trading and marketing deputy director Hanung Budya told reporters. Pertamina had gas reserves that were not big enough to be processed into LNG, but suitable to supply power plants, the official said. In the meantime, Indonesia's electricity demand is on a steady rise. "It's a business opportunity, and moreover, we have gas reserves. We could build gas-based power plants," Hanung said. The Indonesian government is trying to reduce the country's oil dependency, and is encouraging alternative energy sources.



Asean maintains 6pc growth forecast Date: 24/08/2006 ASEAN has maintained its economic growth forecast of 6 per cent for 2006, riding on rising affluence, increasing foreign direct investments (FDIs) and better economic performance of each member country. International Trade and Industry Minister Datuk Seri Rafidah Aziz said the outlook for this year is bullish because for the first quarter of 2006, the region's FDIs almost doubled to US$14 billion (RM51.38 billion). The 10-member grouping chalked up a total FDI investment of US$38 billion (RM139.46 billion) last year, its highest since 1997 and a 48 per cent increase from 2004. "Asean continues to sustain positive trend for its trade performance as total exports for 2005 increased by 13.5 per cent from US$569.4 billion (RM2,072.62 billion) in 2004 to US$646 billion (RM2,370.82 billion) in 2005," Rafidah said in Kuala Lumpur yesterday after chairing the 38th Asean Economic Ministers meeting. Rafidah said the trend continued up to the first quarter of 2006 with a 17.7 per cent growth of Asean exports to the world and intra-Asean trade remained constant at 25 per cent in 2005, slightly higher than the 24.3 per cent share in 2004.