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December-04-2008
Australia Nexus, Shell $3 Billion LNG Plant at Crux
B.C. Asian Export LNG Plant Pacific Trail pipeline
CO2 recovery, enhance oil, integrated ammonia-urea
Coates Arrange with Cummins Power LNG blocks
December-04-2008
IGI line -Shah Deniz gas limited volumes /competition
Italian pipeline developers undeterred by credit crunch
NativeEnergy Partners with Cascade Sierra Solutions
Range Resources Reaches Production Milestone

Range Resources Reaches Production Milestone
Range Resources Corp. 12/2/2008

Range Resources has reached the 400 Mmcfe per day production milestone. The Company currently anticipates that fourth quarter 2008 production will be within its previous guidance of 400 to 405 Mmcfe per day. This represents an 18% increase for the quarter and nearly a 20% increase for the year. This will also represent Range's 24th consecutive quarter of sequential production growth. The rising production is the result of the Company's successful drilling program. All of Range's divisions have increased production for the year through the drill bit.

Commenting on the announcement, John Pinkerton, Range's Chairman and CEO, said, "Reaching 400 Mmcfe per day of production is a terrific milestone for all of us at Range. The drilling program has been the principle driver for our growth as we have focused on lower cost drilling versus higher cost acquisitions. As a result, we have maintained our low cost structure, which is critical in the current environment. Rising production, a low cost structure, hedges in place covering approximately 60% of next year’s production and strong liquidity position us well as we enter 2009."

B.C. Asian Export LNG Plant Pacific Trail pipeline
NEW YORK, Dec 2 Reuters
Pacific Trail Pipelines (PTP), operator of a proposed natural gas pipeline in Canada, is seeking expressions of interest for capacity in the pipeline, it said in a statement on Tuesday.  The C$1.2 billion pipeline will supply gas to the Kitimat liquefied natural gas (LNG) export plant in British Columbia and will increase the capacity of PTP's existing pipeline capacity in the area.
PTP said it will accept expressions of interest until December 22, 2008.
"It is too early to say at this point what the levels of interest will be," PTP Vice President Greg Weeres told Reuters, adding that so far there had been no formal interest.

PTP's announcement comes as Kitimat LNG, which is hoping to start exporting natural gas as LNG to Asian markets in 2013, seeks interest in capacity in the export terminal as well as potential equity partnerships.  Kitimat LNG, wholly owned by Galveston LNG, expects to start reviewing interest in mid-December.
Pacific Trail Pipelines is a partnership between Pacific Northern Gas Ltd and Galveston LNG.
Australia Nexus, Shell $3 Billion LNG Plant at Crux
By Eduard Gismatullin Dec. 2 Bloomberg

Nexus Energy Ltd., the Melbourne-based gas explorer set to start production next year, may develop a $3 billion gas liquefaction plant with Royal Dutch Shell Plc should they find sufficient resources at Australia’s Crux project.

Shell, Nexus and Japan’s Mitsui & Co. discovered gas at the project’s offshore Libra-1 well, the Australian company said today in a statement. Nexus Managing Director Ian Tchacos had said yesterday that resources at Libra may help the partners find more gas reserves to reach the 3 trillion-cubic-foot threshold necessary for a liquefied natural gas project.

“The potential for LNG will start to look quite compelling” if resources are found, Tchacos said in an interview in London. “It’s such an excellent reservoir and the gas is a very high quality.”

Nexus, whose shares have slumped 78 percent in the past six months, said in November it may have to consider a sale of the company or an alliance rather than offering a stake in the Crux natural gas liquids venture as it seeks to arrange financing for the project off Australia’s far northwest.

Nexus and Osaka Gas Co., Japan’s second-largest distributor of LNG, are developing the AC/P23 area of the Crux deposit in the Browse Basin, estimated to hold 75.2 million barrels of gas liquid reserves. The Libra-1 well may prove that Crux is expanding into the AC/P41 area, Tchacos said.

Nexus Gas Sale

Nexus in June 2006 sold gas reserves in the Crux field to Shell for A$52 million ($33 million), with access to be granted from 2021, Tchacos said.

“There is a potential compromise, where we’ll allow Shell to come earlier” to tap the reserves, he said. The partners need to find a way of combining the projects to produce liquids and allow Shell to take the gas earlier, he said.

Nexus, Shell, Mitsui, Osaka Gas and a further possible partner may decide in the middle of 2009 to build a floating LNG plant at the deposit. A floating facility would cause less damage to the environment than an onshore plant and the 120-meter (390- foot) water depth makes it an “ideal” solution, Tchacos said.

Nexus was forced to increase the interest it plans to sell in the Crux liquids venture to as much as 40 percent from 25 percent as it seeks about $260 million for project funding amid falling oil prices. The company has started to seek buyers for the stake, which may lead to the sale of the entire company or an alliance, Chairman Michael Fowler said Nov. 20.

Approval Delay

Deutsche Bank AG is managing the Crux stake sale after Mitsui scrapped a plan to buy an interest for $255 million. A final investment decision on the project was due this quarter, with the start scheduled for the first half of 2011. The partners now plan to approve it in the first quarter of 2009, Tchacos said.

Nexus holds 85 percent of the Crux venture, which it expects to produce 33,000 barrels to 35,000 barrels of liquids a day, he said.

Should the partners agree to build a 2 million-ton-a-year LNG plant at Crux, the first LNG may be produced in 2015 or 2016, Tchacos said. Crux may hold 6.4 trillion cubic feet of gas and 220 million barrels of liquid resources, according to Nexus estimates.

Coates Arrange with Cummins Power LNG blocks
WALL TOWNSHIP, N.J. BUSINESS WIRE 12 2 2008
Coates International, Ltd. (the “Company” or “Coates”) (OTCBB: COTE) – is pleased to announce that it has completed arrangements with Cummins Power Systems, LLC for the manufacture and supply of engine blocks and components, commonly referred to in the industry as “short blocks” for the Coates CSRV Industrial Engines. Coates has been formally notified by Well to Wire Energy, Inc. that it’s approximate orders for more than 7,400 of these engines and generators over the next five years. Management at Coates views this as an important step for the Company’s critical path to full production. These engines are intended to be used in various applications including electric power industrial generators including pumping and compression equipment used in the oil and gas industry. These engines are engineered to operate on an array of alternative fuels such as Liquid Natural Gas (LNG), Compressed Natural Gas (CNG), propane, butane and landfill gas, among many others.

We believe that the progress of our Company towards full production and deployment of Coates CSRV engines into the marketplace will help improve the US economy and provide substantial new employment opportunities in our own direct production facilities and in those of our licensees. The Company is reviewing plans for the creation of approximately 3,000 new jobs by the end of the first year of production and approximately 10,000 new jobs over five years.

The myriad benefits of applying the Coates CSRV technology to products and equipment powered by an internal combustion engine include:
The ability to optimize efficiency and reduce cost by selecting from a long list of alternative fuels
Reduced consumption of fossil fuels
Drastic reduction of harmful emissions
Contributing to the reduction of global warming progression
Contributing to the reduction of US dependency on imported foreign oil
Helping America get back to work
By exporting the Coates CSRV Power Units will help the US economy recover
All Coates CSRV Production Engines will carry a warranty.

Coates International, Ltd.:
Coates completed development of patented spherical rotary valve CSRV Industrial Internal Combustion Engine, developed over a period of more than 6 years and other CSRV applications over 10 years. The underlying CSRV technology was invented by George J. Coates and his son Gregory. The CSRV system is adaptable to combustion engines of many types. This technology is currently adapted to a number of practical applications including industrial generators powered by engines incorporating the CSRV technology and designed to run on flare-off gas from oil wells, landfill gas and raw natural gas. The Company is actively engaged in planning for production and rollout of these engines, and expects to have completed engines ready for pickup by Well to Wire, Energy, Inc. before the end of the year. The Company has recently completed the technological development of a diesel truck engine, which incorporates our CSRV system suitable for the trucking industry. We continue to make considerable progress with other important aspects of now retrofitting the diesel truck engine, including integration with the transmission and braking systems. After that, the engine will be fired up and tested with and without loads. The diesel truck engine is expected to achieve improved fuel efficiency and reduce harmful emissions.

NativeEnergy Partners with Cascade Sierra Solutions
Energy Efficiency Partnership Expecting To Save Over 2 Million Gallons of Fuel & Reduce Air Pollution
(CSRwire) South Burlington, VT 12/2/2008

NativeEnergy, an international marketer of high quality carbon offsets and renewable energy credits (RECs), today announced its first energy efficiency project partnership, adding to its portfolio of effective climate crisis solutions. Working with Cascade Sierra Solutions (CSS), a non-profit organization dedicated to making ground freight transportation more energy efficient and sustainable, NativeEnergy continues its mission providing clients with high quality emissions reductions from new projects that have significant social value.

Cascade Sierra Solutions helps truckers to save fuel and reduce emissions from long haul, heavy-duty diesel trucks. NativeEnergy is supporting Cascade Sierra Solutions' objective to upgrade and/or replace 50,000 trucks by 2013.

"NativeEnergy and CSS recognize the significant opportunities - economic, environmental, and social - to increase vehicle efficiency as another step in effectively addressing the climate crisis," says Tom Boucher, NativeEnergy President & CEO. "NativeEnergy provides forward-stream offsets for the expected life of the trucks. These changes will significantly impact future air quality."

NativeEnergy is providing critical financial support to help CSS continue its mission. CSS provides services to assist truckers and fleets, including: technical advice, coordinating incentives, financing energy-saving retrofits and new clean trucks, equipment selection, monitoring, testing, certification, and reporting. By purchasing upfront the expected emissions reductions that will be generated, NativeEnergy and its clients are helping to finance and support smaller projects that face significant barriers to implementation without that up-front funding.
"NativeEnergy is helping CSS implement additional trucking improvements, making it easy for truckers to save money while providing access to environmental information," says Sharon Banks, CEO Cascade Sierra Solutions. "Because truck transportation provides a cost-effective means to transport freight but creates carbon pollution, all of us at CSS are dedicated to continuing our pursuit of alternative methods that improve our industry’s impact on the planet."

Following a lengthy research process, CSS chose to partner with NativeEnergy because of the company's reputation and commitment to support new emissions reductions projects that not only meet stringent 'additionality' criteria but also create economic and social benefits. Additional details about this and other NativeEnergy projects can be found at: www.NativeEnergy.com/pages/our_carbon_projects/413.php.

Depending on the specific improvements installed, most trucks - traveling an average of 120,000 miles per year - will prevent between 12.8 and 56.5 tons of carbon dioxide (CO2) from being emitted. CSS has helped truckers save more than 2.5 Million gallons of fuel and reduced over 26,000 metric tons of CO2 from being released into the atmosphere.

In addition to CSS reducing carbon emissions, new and upgraded trucks added to their fleet produce less particulate matter and oxides of nitrogen, two components of air pollution that are linked to asthma, heart disease, and lung cancer. Better air quality means improved health for drivers and the communities they serve.

Cascade Sierra Solutions (CSS) is a non-profit organization formed in 2006 to expand the Everybody Wins lease program, dedicated to saving fuel and reducing emissions from heavy-duty diesel engines. CSS operates primarily in the States of Washington, Oregon and California with a focus on the Interstate 5 corridor. The trucks CSS serves come from and travel throughout the continental US. CSS is in the process of establishing outreach centers - strategically located with major truck stops. While the primary target of CSS outreach is the long-haul owner-operator, the centers provide education and incentives for fleets as well. More information is available at www.cascadesierrasolutions.org

NativeEnergy leverages market demand for carbon offsets to bring on line new Native American, family farmer and community-owned renewable energy projects, Native Energy offers third party verified and certified renewable energy credits and offsets from a variety of operating projects across America and internationally. Through its novel approach of bringing upfront payment to renewable projects for the estimated future carbon offsets, Native Energy enables its clients to help directly finance the construction of specific new wind farms and other renewable energy projects. NativeEnergy continues to focus on real, additional offsets that provide both an environmental and a social benefit, for both people and planet.

More information is available at www.nativeenergy.com.
For more information please contact:  Billy Connelly  NativeEnergy  802.861.7707, ext.215 www.nativeenergy.com
Myra Adorno The SOAP Group 207.772.0066, ext.103 www.thesoapgroup.com

CO2 recovery, enhance oil, integrated ammonia-urea
UAE- ADNOC implements unique projects to reduce carbon emissions:  acid gas removal
Emirates News Agency (WAM) - 02/12/2008

(MENAFN - Emirates News Agency (WAM)) The Abu Dhabi National Oil Company (ADNOC) will implement all its future projects according to the framework of the Kyoto Agreement's Clean Development Mechanism (CDM) related to the reduction of carbon emissions.
Applying this in line with the directives of H.E. Yousef Omair bin Yousef, Secretary General of the Supreme Petroleum Council (SPC) and CEO of ADNOC, the company will be cooperating with the Abu Dhabi Future Energy Company (MASDAR) and Environment Agency - Abu Dhabi (EAD).  This measure comes after achieving 80% success in reducing carbon stack emissions over the last 12 years as well as the tangible and advanced steps taken in CO2 recovery and using it to enhance oil recovery in reservoirs in addition to conserving energy consumption in operations, according to a report published by latest issue of ADNOC News magazine.
The report gives synopsis about some of projects and their contribution to sustainable development being executed by Ruwais Fertilizer Industries (FERTIL), TARKREER, ADGAS, TOTAL ABU AL BUKHOOSH and GASCO.

Recovery of CO2 from the Flue Gases for Productive Use in the Synthesis of Urea at FERTIL's Integrated Ammonia-Urea Facility in Ruwais The purpose of FERTIL's CDM project is to recover CO2 from flue gases for productive use in the synthesis of Urea, thus reducing the atmospheric emissions of CO2.  FERTIL operates an integrated ammonia-urea complex in Ruwais industrial zone in the emirate of Abu Dhabi. Since initiation in 1983, the facilities have utilized lean associated gas suppliers from the onshore oil fields to produce fertilizers and market them locally and internationally.

In the production process, natural gas feed is reformed to produce hydrogen and CO2. The hydrogen then reacts with nitrogen (which is captured from air) to form ammonia, which is further synthesized with CO2 into urea. As the lean associated gas utilized as feedstock has a low Carbon to Hydrogen Ratio (CHR), the CO2 produced as a by-product from the reformation process is insufficient to convert all the produced ammonia into urea. As a result of the shortage of CO2 in the production facilities, surplus ammonia has been marketed as long as the plant has been in operations.

The proposed CDM project installs a Carbon Dioxide Recovery (CDR) plant to recover additional CO2 that is currently vented CO2 with flue gases; this recovered CO2 is then used to covert all the produced ammonia into urea.
An EPC was awarded in August 2007, and the construction of the CDR plant and increase of synthesis capacity of FERTIL's urea plant in Ruwais will be finalized in time for commissioning of the project in Q3 2009.  Expected start date of the project: Phase I: Q3, 2008, Phase II: Q4, 2009.

Reduction of Gas Flaring
Through routing of Excess Fuel Gas in LNG Train 3 to LNG Trains 1 '&' 2 in ADGAS' LNG Plant on Das Island - ADGAS The purpose of the project is to reduce waste of natural resources and thus atmospheric emissions of CO2 through routing of previously flared, excess fuel gases in LNG train 3 for productive use as fuel gas in LNG trains 1 '&' 2.  The fuel gas available from the fuel gas system in train 3 continuously exceeds the train's fuel requirement. As a result, ADGAS has been flaring excess fuel gas from train 3 on a continuous basis.

The project comprises installation of an interconnection to route excess fuel gas in train 3 for productive use in the steam generation boilers in trains 1 '&' 2. If the CDM project is successfully implemented, gas from two additional sources of flaring could be recovered for inclusion into the train e fuel gas system. Without the proposed CDM project activity, recovery of these two sources into the train 3 fuel gas system would merely represent a relocation of the point of flaring. The proposed interconnection between train 3 and trains 1 '&' 2 provides the opportunity to utilize gas from these two sources for productive use when it is recovered.

The targeted start of operation of the proposed project activity is Q3 2009 (ADGAS).
Recovery of Flash Gases from the Acid Gas Removal Processes in Trains 1 and 2 at Das Island for Productive Use as Fuel Gas in SRU Incinerators.  The objective of the project is recovery and productive use of previously flared flash gases in the existing incinerators of the Sulphur Recovery Units (SRUs) in the LNG trains 1 and 2 at Das Island.

Each of the three LNG trains in Das Island is equipped with an acid gas removal process that consists of two stages. The 1st stage uses potassium carbonate (Carbonate) for bulk removal of the acid gas, while the 2nd stage uses diethanolamine (DEA) for final acid gas removal. The flash gases from the Carbonate and DEA flash drums have historically been sent to the sour gas flare headers in the respective trains for continuous flaring.

The project consists of two identical modifications to each of the acid gas removal processes in train 1 '&' 2. Each modification comprises installation of new piping and a new sour fuel gas knock out drum. As a result of the project activity, the previously flared flash gases can be recovered and utilized to partially substitute for the sour fuel gas that is currently being burnt in the SRU incinerators in trains 1 and 2, respectively.

Recovery and Utilization of Low Pressure Gas at New Khuff Production Platform by TOTAL ABK:
The project envisages to recover and utilize tail gas from FRU, which will be newly implemented at the New Khuff Production Platform (NKPP) offshore facility.

The purpose of the project is to reduce the flaring of hydrocarbon gas thus, reducing CO2 emissions. The project activity involves the recovery of the low-pressure flare gases that historically have been flared at New Khuff Production Platform (NKPP) offshore facility. The recovered low-pressure gas at NKPP facility is a mix of six (6) gas streams.

The previously flared hydrocarbons (8.2 MMSCFD or 232, 198 M3/day in total) will be compressed to 8.5 bars in a two stage compressor and will be sent to Khuff Production Platform (KPP) offshore facility to join the high pressure gas pool to be further compressed and exported to ADGAS LNG plant at Das Island. Accordingly, the project activity will have significant impact on the gas flaring reduction at NKPP facility.

Flare Reduction Compressor (FRC) package will recover the low-pressure flare gases and compress it to a higher presser that would allow it to flow to the suction line of the main gas compressor (GRC). FRC package encompasses the installation of the interconnection pipelines as well as the installation of process equipments.

Reducing the Volume of the Flared Natural Gas in Onshore Sites (GASCO): The objective of the project is to reduce the natural gas in GASCO flares in Asab, Bab and Bu Hasa sites by installing instrument to control the speed of the high amount used to maintain adequate pressure in the flares network. By implementing this project, the use of natural gas in flares will be reduced and the emissions will be by 13,995 ton/year with effect from October 2008.

This project will help in energy conservation and saving in the used natural gas that will be utilized in other more important alternative purposes. New technology used for reducing Carbon Dioxide emissions as a result of burning the gases.

There are a number of other projects being conducted by ADCO, ADMA-OPCO, ZADCO, TAKREER and ADOC.

IGI line -Shah Deniz gas limited volumes /competition
Italian pipeline developers undeterred by credit crunch
Uchenna Izundu International Editor LAKE COMO, ITALY, Dec. 1

The Galsi and Interconnector-Greece-Italy (IGI) pipeline partners do not expect the credit crisis to negatively impact their plans, as they have very strong balance sheets, according to a senior company official.

However Elio Ruggeri, project leader at the department of hydrocarbons at Edison SPA, told OGJ at the European Autumn Gas Conference (EAGC) at Lake Como, Italy, that securing gas supplies from Shah Deniz for the IGI line was difficult due to limited available volumes and intense competition from different markets. "Russia and Turkey will also have a share of this gas," he said. No contracts have been signed to fill the IGI pipeline.

Edison is a partner in both projects, which are expected to enhance Italy's gas supply security. Gas demand in Italy should grow to 96-104 billion cu m/year in 2015 from 85 billion cu m/year in 2007, according to Ruggeri. Gas imports are expected to increase to 26 billion cu m/year by 2015, up from 18, and the incremental need for import capacity is expected to rise to 41 billion cu m/year by 2015, up from 32.

Currently, the Italian gas market is tight. But demand destruction in natural gas has already begun, warned Davide Cornaggia, supply and sales director at mid-size operator Gas Plus Italiana SPA. "Customers are consuming less, and gas use for power generation has decreased in the last 2 months by a substantial amount. I understand that this has also happened elsewhere."

The nation faces a dilemma where there is a risk of a gas bubble in the summer of 2009, Cornaggia added. With these projects, along with Italian LNG import terminals, there could be an oversupply of gas in the medium term.

Ruggeri said Italy could become a gas transit country for France and Germany provided the pipeline system becomes integrated in Europe.

The Galsi partners, including Sonatrach, Enel SPA, Sfirs (Sardinia Reg), and Hera SPA, plan to make a final investment decision next year. The front end engineering design (FEED) work is to be finished by yearend 2008. Tenders for the engineering, procurement, and construction contract are being prepared along with the financial structure for the project.

Sonatrach is leading the proposed 840–km Galsi pipeline, which will have a capacity of 8 billion cu m/year and in 2,800 m of water will be one of the world's deepest offshore pipeline ever laid. It will deliver Algerian gas via Sardinia into Italy starting in 2012. The definition of the transportation contracts between Galsi and its shippers are being drawn up.

This pipeline would connect Sardinia for the first time to Italy's national grid and improve its environmental footprint. According to a memorandum of understanding signed in September by Galsi and Snam Rete Gas (SRG), Galsi will be responsible for the FEED and securing permits with SRG's help during the development phase. Galsi will build, own, and operate the international section while SRG will concentrate on the national section.

The IGI line is an 800-km pipeline that would deliver 9 billion cu m/year of gas from the Caspian to Italy and western Europe via Turkey and Greece in 2012. However, to meet this deadline, gas supply agreements and gas transit agreements must be finalized within the next year to make the final investment decisions in 2009.

Edison will take 6.4 billion cu m/year, and its Greek partner Depa will have 1.6 billion cu m of capacity in IGI, which has been exempted from third party access under European Union rules. Ruggeri said 1 billion cu m/year of gas has been set aside for third parties and there has been 17 nonbinding expressions of interest (EOI) from Italian and other companies under the open season held in June.

"We don't know how much capacity had been applied for as we didn't ask for this figure under the EOI," Ruggeri said. "There were two lots of 100 million cu m each that were offered, and I suspect that people would have bid for the entire capacity."

During the next phase, the IGI consortium will ask interested shippers to submit binding offers to reserve transportation capacity, which will be followed by an allocation stage.