Platts - Monday, April 17, 2006 http://www.platts.com ------------ Japan asks Iran to hold talks on nuclear, energy issues Tokyo (Platts)--17Apr2006 Japan has approached Iran to hold high-level talks in Teheran in late April to discuss various issues, including the Islamic Republic's nuclear and energy deals, an official at Japan's foreign ministry said Monday. The Japanese delegate will likely reiterate its stance urging Iran to stop its uranium enrichment program, the source said. Tokyo will also express its concern that if Teheran keeps ignoring international calls to suspend its uranium enrichment program, it may affect the Japanese development of the multi-billion-dollar Azadegan oil field, the source added. Japanese upstream player Inpex and the National Iranian Oil Corporation in February 2004 agreed on a 75:25 partnership to develop the Azadegan project, which at the time came with a $2 billion price tag. But the partners have made little progress since, putting a question mark on previous expectations that the 26 million barrel field would start commercial production in mid-2008 at 150,000 b/d. The Japanese side says it has been waiting for the Iranian authorities to complete de-mining the field, a task Tehran says is almost complete. But in the meantime, Inpex has neither signed on a major foreign partner -- which it needs to proceed with the project -- nor tied up the necessary loans. Japan imported 33.73 million kl of crude from Iran, or 13.8% of its overall crude imports in 2005, according to data from the METI. For more information, take a trial to Platts Nucleonics Week at http://nucweek.platts.com. ------------ DOE to partner with industry on hydroden feasibility studies Washington (Platts)--13Apr2006 DOE intends to partner with the nuclear industry on feasibility studies that look at using small-scale equipment at existing power reactors to produce hydrogen, the department said today. For up to three years, federal assistance will cover up to 80% of the cost of DOE-industry studies examining the economic, environmental, and regulatory implications of producing hydrogen at existing nuclear power plants, DOE said. Industry participants would fund 20% of the cost of the studies. Energy Secretary Samuel Bodman said today that the department will allocate up to $1.6 million this fiscal year for the work. Applicants must be US companies that will conduct the study in the US, and must be "primary representatives of a project team" that includes a nuclear utility company. Proposals are due by June 5. The studies will be done under DOE's Nuclear Hydrogen Initiative within the Office of Nuclear Energy, Science and Technology. DOE said the feasibility studies would help advance the goal of using nuclear power to produce hydrogen that could be used as fuel. DOE posted the solicitation (#DE-PS07=061D14759) on the web (http://e-center.doe.gov). ------------ Iran to install 3,000 centrifuges in Natanz pilot plant London (Platts)--13Apr2006 Iran plans to install 3,000 centrifuges at its pilot centrifuge plant in Natanz by late this year, then expand to 54,000 centrifuges, Deputy Nuclear Chief Mohammad Saeedi said today, according to news reports. He did not say when the latter expansion would occur. Saeedi's remarks today follow Iran's announcement yesterday that it had begun producing enriched uranium from a cascade of 164 centrifuges. In a press briefing today, White House spokesman Scott McClellan said "it is time for action" by the UN Security Council to address Iran's nuclear program. For more news, request a free trial to Platts Nucleonics Week at http://www.platts.com/Request%20More%20Information/ ------------ Stone & Webster awarded $100 million services contract Washington (Platts)--12Apr2006 Stone & Webster has been awarded a maintenance and modifications services contract valued at more than $100 million for work at Salem-1 and 2 and Hope Creek, Shaw Group announced today. Stone & Webster is part of Shaw. The contract awarded by PSEG Nuclear LLC is expected to cover maintenance and modification work through 2008, Shaw said. The services will include installation of capital projects and major maintenance activities, it said. ------------