UPI Energy Watch

China's pipeline project will use GE energy

U.S.-based GE Oil and Gas announced it was chosen to work on China's second West-to-East oil and gas pipeline.

The groundbreaking project will run from Turkmenistan to Shanghai, nearly 5,600 miles, carrying more than 30 billion cubic meters of natural gas per year through 12 Chinese provinces.

Chinese President Hu Jintao has said the pipeline project is of strategic significance in building China's infrastructure.

For more than $100 million, GE will supply the compression equipment for the pipeline, install the equipment and provide spare parts and operation. In 2005 the company was selected as an equipment supplier for the expansion of China's first West-to-East pipeline, GE said in a statement.

The pipeline is owned by PetroChina Co. Ltd. and, according to the Chinese government, the second West-to-East pipeline marks the first time China will pipe natural gas from a foreign country.

The pipeline will have eight sub-lines extending off it, and construction began earlier this year.

BHP Billiton Ltd. evacuates Gulf of Mexico employees

Adding to the list of companies that have evacuated personnel from their oil producing rigs in the Gulf of Mexico because of concern over Hurricane Ike, Australia's largest oil and gas producer shut down the $1.1 billion Neptune oil project Wednesday.

On Tuesday, Shell and ExxonMobil evacuated some of their employees, and others said they were monitoring the storm.

"We have evacuated all non-essential personnel from the Gulf and shut in production at Neptune," said Emma Meade, a Melbourne-based BHP spokeswoman, The Age reported.

Despite concern over whether Ike will change direction and damage the oil producers in the Gulf, crude prices fell below $104 a barrel.

There had been concern that the Organization of Petroleum Exporting Countries would cut its production during its meeting this month, but the cartel's president, Chakib Khelil, recently suggested OPEC would not change its production levels.

October futures for Brent crude dropped below $100 a barrel Tuesday for the first time since April.

Indonesia seeks oil deal in Iran

Indonesian Minister of Energy and Mineral Resources Purnomo Yusgiantoro said Indonesia is seeking to get in on investment opportunities in Iran's oil and gas sector, the Tehran Times reported.

Iran has had issues lately retaining foreign investments, particularly from Western countries, because of pressure over the sanctions against the country because of its nuclear industry.

Still, Iran's oil revenue exceeded $55 billion last year and there are still foreign investors who have not been deterred.

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Closing oil prices, Sept. 10, 3 p.m. London

Brent crude oil: $101.25

West Texas Intermediate crude oil: $104.35

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(e-mail: energy@upi.com)