2/25/2013: Chevron taps into Australian shale; A new pipeline will bring natural gas from Texas to Mexico

Chevron taps into Australian shale - "Timing, as always, is the key to what’s happening in the Australian shale gas (and oil) industry which received a big vote of confidence earlier today when the U.S. oil major, Chevron, “farmed” into two central Australian exploration permits at a potential cost of $349 million. For that outlay, which incorporates an up-front payment and future exploration costs, Chevron can earn up to 60% of the two blocks covering 810,000 acres of Australia’s Cooper Basin which is largely a barren desert covering the country’s biggest onshore conventional oil and gas field...While Australia is the best part of 10-years behind the U.S. in terms of exploring for and developing its unconventional oil and gas potential it is a country which featured prominently in a 2011 analysis of world shale gas potential by the U.S. EnergyInformation Agency. Technically recoverable shale gas potential in Australia was put by the EIA at 390 trillion cubic feet of gas, about 45% of the 862tcf estimated for the U.S., but roughly double the estimate for France and Poland and 9-times the estimate for Ukraine which recently attracted an investment by Royal Dutch Shell." (Forbes)

Ukrainian Prime Minister sees energy independence through shale - "Ukrainian Prime Minister Mykola Azarov said that there's enough natural gas in Ukrainian shale plays to satisfy the former Soviet republic's needs without imports."We have enough deposits of shale gas to satisfy Ukraine's demand for this kind of fuel," Interfax quoted him as saying. "What we are doing now involves a lot of hard work, which should bring about practical results in some five-seven years." "The main goal of any government is always to make not only short-term decisions but also decisions that have long-term effects for the country," Azarov said. US giant Chevron is negotiating a production-sharing agreement for shale exploration of the Olesska field towards Ukraine's western borders with the European Union. Royal Dutch Shell signed a $10 billion deal with the government for exploration of the Yuzivska field in eastern Ukraine last month." (KYIV Post)

Texas shale natural gas headed to Mexico - "Houston-based NET Midstream has announced it will construct a 124 mile pipeline to transport natural gas from the Eagle Ford Shale region to the Mexican border. The deal consists of a long-term agreement to transport 2.1 billion ft³/d of gas with MGI Supply Ltd, a subsidiary of Mexico's state-owned gas company Petroleos Mexicanos (Pemex). The 42 in. pipeline will be constructed by NET Midstream's subsidiary, NET Mexico Pipeline LP from a hub in Agua Dulce in Nueces County to a point near Rio Grande City in Starr County, Texas. “NET Mexico Pipeline will be an important source of supply to meet Mexico's growing demand for natural gas,” said Joe Gutierrez, Co-President of NET, in a recent statement. “NET Mexico is a natural next step in our pipeline system, as we connect abundant gas supply from the Eagle Ford Shale to expanding power generation and industrial markets in Mexico.” (Energy Global)