Venezuela and Russia plan to sign an agreement that would create one of the largest oil consortiums in the world, Venezuela's President Hugo Chavez said during a state visit to Moscow.
The consortium would be formed by Venezuela's state oil company PDVSA and its Russian counterpart Gazprom, state news agency ABN reported. The joint venture would make "high level" investments in the energy sector, Chavez said. Gazprom announced last week its involvement in one of three liquefied natural gas trains being developed in the country. The company is also part of a joint venture that was awarded two new natural gas blocks to provide gas to the train, a BNamericas report said. Chavez arrived in Moscow after a brief visit to China, where he also signed a number of energy-related agreements. The two countries also promised to expand other industrial ties. One industry analyst told the news agency that Chavez' moves in Russia could be part of a "dangerous political game". "Russia is now playing some of the old cold war cards to make life for the US as difficult as possible," the analyst said, suggesting it may be Russia using Venezuela and not vice-versa. "It's returning to military and industrial involvement in South and Central America to give the US headaches." Chavez's new alliances with Russia come as relations between Russia and the Western world are tense because of violence and political disturbances in Georgia and other former Soviet republics. "Chavez is playing a dangerous game. Until now he has not been any significant threat to US interests," the analyst added. "But by playing with ... the Russians, it could end up being very dangerous for all Venezuelans."
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Sunday, September 28, 2008
Saudi Arabia to invest USD 318 billion in energy sector
Zawya reported that Kingdom of Saudi Arabia is forecast to invest around USD 318 billion in energy over the next few years as massive infrastructural developments are in full swing brought about by economic reforms and huge oil revenues amid high crude prices in the global markets.
A recent study by Kuwait Financial Centre forwarded to the Saudi Gazette said that a breakdown of the figure shows that allocation to petrochemical projects totals USD 90 billion, the same amount is assigned to power generation, USD 88 billion is earmarked for water desalination plant projects and USD 50 billion is appropriated for natural gas related projects. Markaz said that to achieve this target, the authorities would have to present several joint projects to the private sector, local and foreign in order to increase power generation capacity. The study said that the petrochemicals sector is driven by either proximity to market or large scale projects which take advantage of low cost, secure oil and gas supplies. These factors in turn have made the Kingdom one of the world's strategic hubs for petrochemicals. These competitive advantages are now likely to be joined by a number of highly integrated refining and petrochemical investments which will develop and strengthen the industry. It added that "capacities after 2008 based on current planned projects may not be met due to the restriction on inputs supply unless the gas production capacity is substantially increased."
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A recent study by Kuwait Financial Centre forwarded to the Saudi Gazette said that a breakdown of the figure shows that allocation to petrochemical projects totals USD 90 billion, the same amount is assigned to power generation, USD 88 billion is earmarked for water desalination plant projects and USD 50 billion is appropriated for natural gas related projects. Markaz said that to achieve this target, the authorities would have to present several joint projects to the private sector, local and foreign in order to increase power generation capacity. The study said that the petrochemicals sector is driven by either proximity to market or large scale projects which take advantage of low cost, secure oil and gas supplies. These factors in turn have made the Kingdom one of the world's strategic hubs for petrochemicals. These competitive advantages are now likely to be joined by a number of highly integrated refining and petrochemical investments which will develop and strengthen the industry. It added that "capacities after 2008 based on current planned projects may not be met due to the restriction on inputs supply unless the gas production capacity is substantially increased."
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Shenyang to build first bonded logistics facility in northeast
Eastern Chinese City of Shenyang is going to build northeast China's first bonded logistics facility inside its Harbour Front Economic Zone.
The CNY500 million (US$73 million) will cover 10 square kilometres. The first phase will occupy 0.5 square kilometres, consisting of bonded warehouses, a container yard, a customs inspection area and a office building area, offering import and export, processing and international distribution services. The Shenyang Harbour Front Economic Zone is 69 kilometres away from port of Yingkou, one of the main ports in northeast China, and is planned to occupy a total area of 668 squares kilometres.
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The CNY500 million (US$73 million) will cover 10 square kilometres. The first phase will occupy 0.5 square kilometres, consisting of bonded warehouses, a container yard, a customs inspection area and a office building area, offering import and export, processing and international distribution services. The Shenyang Harbour Front Economic Zone is 69 kilometres away from port of Yingkou, one of the main ports in northeast China, and is planned to occupy a total area of 668 squares kilometres.
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Shipping costs plunge on iron stand-off
Worries about the world economy have combined with a stand-off between ore producers and steel mills to send the key index of dry bulk shipping costs plunging nearly 25 per cent this week.
The falls mean the Baltic Dry index – which measures the cost of chartering ships used to carry dry bulk cargoes such as iron ore, coal and wheat – has now lost nearly 70 per cent of its value from the record levels set in May. The index, which stood at 4,975 points on September 19, closed Friday at 3,746 points. The average day rate to charter a cape size bulk carrier on the spot market stood at $46,162 a day, down from peaks of nearly $240,000 a day. The index lost a record 10 per cent of its value yesterday alone. Such major fluctuations are typical of dry bulk shipping markets, where small numbers of excess idle ships or small shortages of vessels can send market rates sharply down or up. Howard Bright, head of dry cargo at London-based Braemar Seascope shiprokers, put the sudden fall down partly to concerns about world economic health and, hence, demand for the commodities shipped in dry bulk ships. “We’ve now come to the conclusion that none of us is immune from what has been going on in the States and the financial problems going on there,” he said. He also pointed to Brazilian iron ore exporters’ efforts to win higher prices from Chinese steel mills, which has led to a drying-up of cargoes on the normally busy China-Brazil route. Ships lying idle off Brazil were willing to accept almost any price for a new charter, he said. Philippe Van den Abeele, of Castalia, the shipping hedge fund, said there were no (Brazilian) cargoes available and empty ships everywhere.
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The falls mean the Baltic Dry index – which measures the cost of chartering ships used to carry dry bulk cargoes such as iron ore, coal and wheat – has now lost nearly 70 per cent of its value from the record levels set in May. The index, which stood at 4,975 points on September 19, closed Friday at 3,746 points. The average day rate to charter a cape size bulk carrier on the spot market stood at $46,162 a day, down from peaks of nearly $240,000 a day. The index lost a record 10 per cent of its value yesterday alone. Such major fluctuations are typical of dry bulk shipping markets, where small numbers of excess idle ships or small shortages of vessels can send market rates sharply down or up. Howard Bright, head of dry cargo at London-based Braemar Seascope shiprokers, put the sudden fall down partly to concerns about world economic health and, hence, demand for the commodities shipped in dry bulk ships. “We’ve now come to the conclusion that none of us is immune from what has been going on in the States and the financial problems going on there,” he said. He also pointed to Brazilian iron ore exporters’ efforts to win higher prices from Chinese steel mills, which has led to a drying-up of cargoes on the normally busy China-Brazil route. Ships lying idle off Brazil were willing to accept almost any price for a new charter, he said. Philippe Van den Abeele, of Castalia, the shipping hedge fund, said there were no (Brazilian) cargoes available and empty ships everywhere.
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French port reform hangover spells mixed results at Marseilles-Fos
Cargo throughput at the port of Marseilles-Fos in France totalled 64.27 million tonnes to the end of August, a one percent drop on the first eight months last year.
Strong performances in the oil and liquid bulk sectors could not offset the impact of industrial action from mid-April to the end of June over the French government’s port reform proposals. Container traffic suffered most, slumping 16 percent at 5.6MT and 551,000TEU – with key east-west volumes handled at Fos falling 22 percent to 366,000TEU. The box deficit left general cargo eleven percent worse for the period on 10.36MT, although ro-ro traffic rose three percent to 3MT due to growth from North Africa and the eastern Mediterranean. Oil and oil products throughput improved two percent to 42MT. Sustained demand for pipeline deliveries to Germany and Switzerland saw crude imports rise two percent to almost 30MT, while refined products were up seven percent on 8.35MT. Also maintaining previous gains, liquid bulks rose 16 percent to 2.56MT – boosted by 0.6MT (+61 percent) in bio-fuels – but dry bulks fell four percent to 9.26MT due to an eight percent drop in steel industry ore imports, which represent two-thirds of the trade. Passenger volumes slipped one percent to 1.455 million. The total on ferry services to Corsica and North Africa - down six percent to 1.13 million passengers – was affected by declining Algerian demand, which fell 18 percent to 278,000. But cruise volumes rose 22 percent to 327,000 for the eight months and by 40 percent to 75,000 passengers in August alone. Home port embarkations now represent a quarter of the Marseilles total – up 43 percent year on year and 143 percent for the month – and have become the main driver of the port’s cruise business.
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Strong performances in the oil and liquid bulk sectors could not offset the impact of industrial action from mid-April to the end of June over the French government’s port reform proposals. Container traffic suffered most, slumping 16 percent at 5.6MT and 551,000TEU – with key east-west volumes handled at Fos falling 22 percent to 366,000TEU. The box deficit left general cargo eleven percent worse for the period on 10.36MT, although ro-ro traffic rose three percent to 3MT due to growth from North Africa and the eastern Mediterranean. Oil and oil products throughput improved two percent to 42MT. Sustained demand for pipeline deliveries to Germany and Switzerland saw crude imports rise two percent to almost 30MT, while refined products were up seven percent on 8.35MT. Also maintaining previous gains, liquid bulks rose 16 percent to 2.56MT – boosted by 0.6MT (+61 percent) in bio-fuels – but dry bulks fell four percent to 9.26MT due to an eight percent drop in steel industry ore imports, which represent two-thirds of the trade. Passenger volumes slipped one percent to 1.455 million. The total on ferry services to Corsica and North Africa - down six percent to 1.13 million passengers – was affected by declining Algerian demand, which fell 18 percent to 278,000. But cruise volumes rose 22 percent to 327,000 for the eight months and by 40 percent to 75,000 passengers in August alone. Home port embarkations now represent a quarter of the Marseilles total – up 43 percent year on year and 143 percent for the month – and have become the main driver of the port’s cruise business.
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