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The European Union – New pipelines and production

A new €93 million pipeline linking Ireland to Scotland’s gas network received the green light from regulators this week. The project will be partial funded with €33.7 million of European Union grant aid, reports the Independent. The pipeline will run parallel to existing infrastructure that already connects Ireland to the UK.

Ireland currently gets around 95% of its natural gas from the UK. The new pipeline will strengthen the supply link between the two countries. Last month, Europe’s Energy Commissioner Arias Canete said security of supply was a major issue.

This second pipeline to Scotland is “essential to safeguarding Ireland’s energy security and future economic growth,” a statement from state infrastructure agencies Gaslink and Gas Networks Ireland said.

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Oil

Source: LNG World News

Total (ticker: TOT) announced that production of gas and condensate began at the onshore Termokarstovoye field, located in Russia, began Wednesday. The field will produce around 233 Mcf/d of gas and 20,000 barrels of condensate per day, according to the company.

The Termokarstovoye field is operated by Terneftegas, a joint venture between Russia’s 2nd biggest natural gas producer Novatek (51%) and Total (49%).

OPEC – Prices rising and likely to continue climb regardless of OPECs next meeting

Venezuela’s weekly oil basket price continued its rise for the eighth straight week, reports the Latin American Herald Tribune.

According to figures released by the Venezuela Ministery of Energy and Petroleum, the average price of Venezuelan crude sold by Petroleos de Venezuela S.A. (PDVSA) during the week ending May 15 was $57.00, up $0.26 from the previous week’s $56.74.

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Iranian Deputy Oil Minister and Managing Director of state-run National Iranian Oil Co. Rokneddin Javadi said that he sees oil prices rising to $80/bbl by late 2016, regardless of whether or not OPEC decides to stay its current course, according to reports from a recent energy conference in Kuala Lumpur.

“From a commercial point of view, today’s prices should be sustained and increase gradually,” he said, “but it depends on the political situation and what’s going on in the Middle East and Arabian countries.”

China – Greater cooperation with BRICS partner and construction set to begin on Power of Siberia

China and Brazil issued a joint statement this week to further facilitate bilateral trade, reports The Hong Kong Standard. The focus of the trade agreement includes many different industries from aviation to food processing, but one of the main focuses will be bilateral investment and cooperation in energy, mining and manufacturing.

China National Petroleum Corp. (CNPC) will begin constructing its leg of the Power of Siberia pipeline in June, said Gazprom Deputy Executive

Power of Siberia

Power of Siberia

Manager Vitaly Markelov. In 2014, Gazprom (ticker: OGZPY) and CNPC signed a 30-year contract stipulating the delivery of 38 billion cubic meters of Russian gas annually to China via the Power of Siberia pipeline.

Russia – Russia will not coordinate with OPEC

Lukoil CEO Vagit Alekperov said Russia will not coordinate its oil policy with OPEC during an interview with Reuters. OPEC has said that it will only consider cutting output to defend oil prices if other oil producers outside the group will cut production as well.

“Neither the Soviet Union nor the Russian Federation have ever been OPEC members and the Russian Federation doesn’t plan to join this organization,” Alekperov said. “Therefore…the Russian government does not coordinate its actions with OPEC members.”

Russia’s Energy Minister Alexander Novak is scheduled to attend an OPEC seminar in Vienna June 3 and 4 ahead of the cartel’s policy setting meeting June 5.

India – Changing subsidy rules to attract buyers

India

An ONGC Asset Manager at Mori Source: ONGC

India plans to reform rules governing the level of discounts upstream state oil firms including state giant ONGC offer to retailers, a senior finance ministry official told Reuters. The move is hoped to expedite a stake sale in state companies.

India had to defer plans to sell a 5% stake in ONGC last year as investors asked for clarity on subsidy payments used to compensate retailers for losses they incur on selling fuels at government-set rates.

The government hopes to sell shares in ONGC and India Oil Corp. to raise about a third of its budget target for asset sales of $11 billion – and reduce its fiscal deficit to 3.9% of GDP in the 2015/16 fiscal year.

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Important disclosures: The information provided herein is believed to be reliable; however, EnerCom, Inc. makes no representation or warranty as to its completeness or accuracy. EnerCom’s conclusions are based upon information gathered from sources deemed to be reliable. This note is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument of any company mentioned in this note. This note was prepared for general circulation and does not provide investment recommendations specific to individual investors. All readers of the note must make their own investment decisions based upon their specific investment objectives and financial situation utilizing their own financial advisors as they deem necessary. Investors should consider a company’s entire financial and operational structure in making any investment decisions. Past performance of any company discussed in this note should not be taken as an indication or guarantee of future results. EnerCom is a multi-disciplined management consulting services firm that regularly intends to seek business, or currently may be undertaking business, with companies covered on Oil & Gas 360®, and thereby seeks to receive compensation from these companies for its services. In addition, EnerCom, or its principals or employees, may have an economic interest in any of these companies. As a result, readers of EnerCom’s Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this note. EnerCom, or its principals or employees, may have an economic interest in any of the companies covered in this report or on Oil & Gas 360®. As a result, readers of EnerCom’s reports or Oil & Gas 360® should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.