Richard Melson

February 2006

World Gas Intelligence

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Global perspective on trends and major developments in natural gas markets.

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World Gas Intelligence

--The key to the global gas industry.

World Gas Intelligence has analyzed the major developments in the world's natural gas markets since 1990. It covers the entire gas chain, from wellhead through transmission, marketing and distribution to the burner tip for piped gas, and including liquefaction through tankers to import terminals for LNG. Indeed it goes beyond, to convergence between the gas and power sectors. WGI takes a global perspective on trends in the gas industry and gives readers valuable insights on how the business is evolving. WGI draws directly on the expertise of a dozen regular contributors working from Energy Intelligence’s London, Moscow, and Singapore offices and three North American bureaus. This expert team interprets and provides perspective on the lastest developments in international gas.

Top Stories From The Latest Issue:

Issue shown here: Wednesday, February 8, 2006 View Entire Issue

Spain's Peculiar LNG Storage Scheme

Winter is taking its toll on Spain again this year. For the last few months the country has been scrambling for LNG cargoes amid record-cold temperatures. To stabilize its position, Spain has lined up extra storage in an unconventional way: Sitting in the Mediterranean near the Straits of Gibraltar are two LNG tankers, the 65,000 cubic meter Methane Arctic and the 85,000 cubic meter Norman Lady. This may help explain the tight market and recent high spot charter rates for LNG tankers. (Wednesday, February 8, 2006)

Spanish Shake-Up

The 20 conditions that Spain's government attached to its approval last Friday of Gas Natural's (GN) hostile takeover of the country's largest power group, Endesa, include a second auction by GN of contracted gas purchase volumes and the sale of Endesa's shareholdings in two LNG terminals due to open later this year. Even so, doubts remain as to whether the regulatory moves will do much to inject liquidity into the turgid internal Spanish wholesale gas market. (Wednesday, February 8, 2006)

Bolivia Grapples With Conflicting Gas Goals

The government of Bolivia's new President President Evo Morales wants to export gas and appears to realize that this will require help from outside companies. How to square this with Morales' election promise to "nationalize" Bolivia's gas resources? One avenue the government looks to be exploring is to develop a careful distinction between "nationalization," which it would pursue, and "expropriation," which it may try to avoid. Companies might be allowed to export gas, but not book reserves. (Wednesday, February 8, 2006)

MARKET INSIGHT: US Winter's Last Chance

The North American gas market had seemed poised as the week began to shake off the effects of weeks of unseasonably mild weather, but not before February baseload prices took a substantial hit in bidweek trading. Just as the first major gust of arctic air was about to push into the major heating markets of the US, average northeastern February bidweek prices fell by more than $4 per million Btu from January. Front-month futures slipped below $8/MMBtu Monday and held there Tuesday. (Wednesday, February 8, 2006)

View Articles Issue of Wednesday, February 8, 2006

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What's New

Spanish Shake-Up

Bolivia Grapples With Conflicting Gas Goals

Dabhol Revival Slips On Gas Prices

Gazprom Eyes More Gas To Turkey, Beyond

Croatian LNG Terminal Plan In A Tangle

Spain's Peculiar LNG Storage Scheme

Itera Comeback Likely

Western Canada LNG

Horizon

Test Near Of Federal Ability To Advance US LNG Terminals

Market Insight

MARKET INSIGHT: US Winter's Last Chance

North American Gas and Comparative Fuel Prices

US And UK Gas Futures Prices

Current

Coal Enjoying Renaissance In Europe, As Well As In US

Gas And Power Prices For Major US And European Hubs

World Gas Intelligence

February 2006