Chavez to tie knot with Russia

Venezuela and Russia plan to sign an agreement that would create one of the largest oil consortiums in the world, Venezuela’s President Hugo Chavez said during a state visit to Moscow.

The consortium would be formed by Venezuela’s state oil company PDVSA and its Russian counterpart Gazprom, state news agency ABN reported. The joint venture would make “high level” investments in the energy sector, Chavez said. Gazprom announced last week its involvement in one of three liquefied natural gas trains being developed in the country. The company is also part of a joint venture that was awarded two new natural gas blocks to provide gas to the train, a BNamericas report said. Chavez arrived in Moscow after a brief visit to China, where he also signed a number of energy-related agreements. The two countries also promised to expand other industrial ties. One industry analyst told the news agency that Chavez’ moves in Russia could be part of a “dangerous political game”. “Russia is now playing some of the old cold war cards to make life for the US as difficult as possible,” the analyst said, suggesting it may be Russia using Venezuela and not vice-versa. “It’s returning to military and industrial involvement in South and Central America to give the US headaches.” Chavez’s new alliances with Russia come as relations between Russia and the Western world are tense because of violence and political disturbances in Georgia and other former Soviet republics. “Chavez is playing a dangerous game. Until now he has not been any significant threat to US interests,” the analyst added. “But by playing with … the Russians, it could end up being very dangerous for all Venezuelans.”

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Saudi Arabia to invest USD 318 billion in energy sector

Zawya reported that Kingdom of Saudi Arabia is forecast to invest around USD 318 billion in energy over the next few years as massive infrastructural developments are in full swing brought about by economic reforms and huge oil revenues amid high crude prices in the global markets.

A recent study by Kuwait Financial Centre forwarded to the Saudi Gazette said that a breakdown of the figure shows that allocation to petrochemical projects totals USD 90 billion, the same amount is assigned to power generation, USD 88 billion is earmarked for water desalination plant projects and USD 50 billion is appropriated for natural gas related projects. Markaz said that to achieve this target, the authorities would have to present several joint projects to the private sector, local and foreign in order to increase power generation capacity. The study said that the petrochemicals sector is driven by either proximity to market or large scale projects which take advantage of low cost, secure oil and gas supplies. These factors in turn have made the Kingdom one of the world’s strategic hubs for petrochemicals. These competitive advantages are now likely to be joined by a number of highly integrated refining and petrochemical investments which will develop and strengthen the industry. It added that “capacities after 2008 based on current planned projects may not be met due to the restriction on inputs supply unless the gas production capacity is substantially increased.”

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Shenyang to build first bonded logistics facility in northeast

EASTERN Chinese City of Shenyang is going to build northeast China’s first bonded logistics facility inside its Harbour Front Economic Zone.

The CNY500 million (US$73 million) will cover 10 square kilometres. The first phase will occupy 0.5 square kilometres, consisting of bonded warehouses, a container yard, a customs inspection area and a office building area, offering import and export, processing and international distribution services. The Shenyang Harbour Front Economic Zone is 69 kilometres away from port of Yingkou, one of the main ports in northeast China, and is planned to occupy a total area of 668 squares kilometres.

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