July 1 A section of the Central Area Transmission System (CATS) pipeline in the North Sea is damaged by a ship’s anchor, leading CATS operator BP to close the pipeline for repair. The 250-mile CATS delivers associated natural gas production from North Sea oil fields to the mainland United Kingdom.Independent analysts estimate that oil fields affected by the CATS closure will shut in about 100,000 barrels per day (bbl/d) of oil production until the pipeline is repaired. BP expects to repair and return the CATS pipeline to normal service in September. In 2006, the UK produced an estimated 1.7 million bbl/d of oil, making it one of Europe’s largest oil producers. (EIA, BP, Energy Intelligence, Reuters)

July 13Russian natural gas monopoly Gazprom and Total sign a deal in which Total will receive a 25-percent stake in the project to develop Russia’s giant Shtokman natural gas field in the Barents Sea. The Shtokman field holds estimated natural gas reserves of 130 trillion cubic feet (Tcf), making it one of the world’s largest undeveloped natural gas fields. Phase 1 of the Shtokman project is expected to come online in 2013, supplying 835 billion cubic feet of natural gas per year. Gazprom officials have suggested that Shtokman supplies will be exported as liquefied natural gas to North America and also piped to European markets. Russia holds the world’s largest proven natural gas reserves, with 1,680 Tcf as of January 2007. (Energy Intelligence, OGJ, Reuters)

July 16Japan’s Tokyo Electric Power Company (TEPCO) shuts down reactors 3, 4, and 7 at the Kashiwazaki-Kariwa nuclear power plant after a 6.8 magnitude earthquake strikes inNiigata prefecture. The remaining four reactors at the Kashiwazaki-Kariwa plant were already idle for maintenance, leaving the entire facility shut down. The Kashiwazaki-Kariwa plant has a capacity of 8.2 gigawatts, making it Japan’s largest nuclear power station.EIA expects that problems at the Kashiwazaki-Kariwa nuclear power will increase oil consumption in Japan by an estimated 150,000 barrels per day (bbl/d) through mid-2008. As of month’s end, TEPCO has not stated when the company expects the Kashiwazaki-Kariwa plant to resume operations. (EIA, FACTS Global Energy,Reuters)