Energy Update

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* UK company says outlook for the year unchanged (Adds analyst comment, share price)

* China looking to boost business with resource-rich neighbour

* Most analysts don't expect oil glut to end before late 2017

LONDON, Dec 15 (Reuters) - Britain's Aveva, a maker of programs to design oil rigs, ships and nuclear power stations, and Schneider Electric have scrapped a tie-up, saying combining the software businesses would be too risky and costly.

SHANGHAI, Dec 15 (Reuters) - Smog in Chinese metropolis Shanghai hit its highest level since January on Tuesday, prompting schools to ban outdoor activities and authorities to limit work at construction sites and factories as polluted air spreads around the country.

LONDON, Dec 15 (Reuters) - British data engineering and design firm Aveva said it terminated a deal with France's Schneider Electric about a combination of its own business with the latter's software operations.

ALGIERS/TRIPOLI, Dec 14 (Reuters) - Fresh from a Rome summit on Libya's crisis, American, European and U.N. officials are confidently backing a proposed peace deal between the country's warring factions to end chaos that has allowed Islamic State to flourish.

* Saudi raises supply to Asia by a few million barrels - source

* Saudi raises supply to Asia by a few million barrels - source

* China looking to boost business with resource-rich neighbour

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