Author: Ricardo Perez

Trafigura to Convert More Supertankers If Oil Market Woes Linger

Trafigura Group could switch more of its crude-oil tankers to carry refined products if sluggish market conditions persist.

About 12% of Trafigura’s fleet of very-large crude carriers (VLCCs) and 20% of its Suezmaxes can carry those fuels on top of shipping denser crude, the trading house’s global head of wet freight, Andrea Olivi, said in an interview. “From what we see in the market today, I would expect this number to potentially increase,” he said.

The conversion, which began in recent months, was prompted by low crude-oil tanker rates amid weaker oil demand from China, Olivi said. He added that production cuts from the Organization of the Petroleum Exporting Countries also meant there was less oil that needed to be transported on tankers.

At the same time, attacks by Houthi militants on merchant vessels in the Red Sea have forced ships to take a longer route to reach Europe from Asia. That’s boosted charter rates for smaller ships that transport fuels like gasoline and diesel as they now need to sail around Africa, adding thousands of miles to their journeys.

VLCCs, with their large sizes and ability to sail longer distances, allow for greater economies of scale, said Olivi. “VLCCs have become the bellwether of the market, they are extremely flexible in adapting,” he said.

By: Weilun Soon / Trasfigura , September 11, 2024 

Savannah River deploys drones for tank inspections

The US Department of Energy (DOE) Office of Environmental Management (EM) is deploying drones for the first time to undertake internal inspections of the radioactive liquid waste tanks at the Savannah River Site (SRS) in South Carolina.

The radioactive liquid waste generated by the SRS chemical separations processes is stored in the Tank Farms in both solid and liquid forms. About 160m gallons of radioactive waste has been generated and concentrated by evaporation to a current volume of approximately 35m gallons. SRS has a total of 51 waste tanks built in the Site’s F and H Areas; eight of those tanks have been operationally closed. Several of the remaining 43 waste tanks are in various stages of the waste removal, cleaning, and operational closure process.

Since 1954, SRS waste tanks have provided safe and environmentally sound storage for nuclear waste. All of SRS’s high-level waste tanks are below ground with only the tank tops exposed for access. These tanks include four designs.

Until now, the SRS Liquid Waste programme had used wall-crawling robots that cling to the tank walls using magnets. The drones provide more flexibility and capability, as they can cover more area more quickly than a magnetic crawler. Additionally, the drones are equipped with 3D-scanning light detection and ranging equipment, which can generate precise 3D scans of the tank and its waste.

Initially, the inspections will be of the annulus space in the tanks. The annulus provides secondary containment and protection for these tanks in the event of a leak. The drones were implemented for inspections late last month.

Before the work can begin with the drones, all administrative and regulatory requirements must be satisfied. Pilots are required to be trained on drone operations, followed by advanced training on successfully navigating the environment of a waste tank and learning best practices for planning flights for optimal results.

The remote-controlled aircraft, the Flyability Elios 3, is a 19-inch diameter drone with four helicopter-like propellers, a high-definition camera, thermal camera, and additional features that will benefit the tank inspection programme. The drones also have advanced stability features that make them easier to manoeuvre in flight. Four drones have been purchased for the project, and all are designed to fly in confined spaces, thanks to a protective cage that shields the propellors and cameras from potential collisions with a tank wall.

The Elios 3 model drone has undergone extensive radiation exposure testing at the Idaho National Laboratory. The lab determined the level of radiation exposure the drone could withstand before experiencing a failure. That level was judged to be adequate for the needs of the liquid waste programme.

“These drones are an important step in our ability to perform inspections of the tanks,” said Savannah River Mission Complete Chief Operations Officer Wyatt Clark. “The drones will help us determine the effectiveness of our cleaning efforts.”

Jim Folk, DOE-Savannah River Operations Office assistant manager for waste disposition, said this new use of technology is a safe and effective method to continue to protect people and the environment. “DOE wants to ensure we can ultimately close the remaining 43 liquid waste tanks at SRS in a safe manner,” Folk said. “With the help of drones, we can advance our work to complete the liquid waste mission by 2037.”

By: Neimagazine , Tracey Honney  / September 9, 2024

Lhyfe & Fives Partner for Industrial Combustion Decarbonisation

Lhyfe, one of the world’s pioneers in the production of green and renewable hydrogen, and Fives, a world leader in industrial combustion, signed a memorandum of understanding to provide a complete decarbonised offer for industry, from hydrogen production to combustion. This offer speeds up energy transition by facilitating the use of hydrogen in process industries, without needing to modify all the equipment. Lhyfe will produce and supply green hydrogen and Fives will provide optimised and safe solutions for its use in industrial combustion processes.

Matthieu Guesné, Founder and CEO of Lhyfe, says: ‘We are in a pivotal period in the industrial sector and in particular in industrial combustion. After several years of development, hydrogen solutions are now mature and available on the market regionwide. We are proud and delighted to sign this agreement with a company such as Fives, which is helping to accelerate energy transition in the glass, cement and metals industries, thanks to turnkey solutions for their processes.’

In recent years, the combustion of hydrogen, which emits no CO2, has emerged as one of the most promising solutions for reducing the carbon footprint of industrial processes. For example, a secondary aluminium furnace that today produces 120 tonnes per day using natural gas would tomorrow reduce its annual CO2 emissions by more than 4,000 tonnes with the use of hydrogen.

Frédéric Thrum, deputy general manager of Fives and President of the Energy Division comments: ‘As a pioneer in decarbonisation, Fives supports industrial companies in their energy transition, in particular their switch to hydrogen. Our unique and innovative combustion systems are developed to reduce the environmental impact of our customers around the world. We are proud to be partnering with Lhyfe, to respond together to the urgency of climate change and make industrial processes more sustainable and efficient.’

As recognised experts in their respective fields, Lhyfe and Fives will focus primarily on the metals, glass and cement industries and some selected industrial heating processes and applications in Europe and North America.

By: Anamika Talwaria, Tankstorage / September , 6 , 2024.

Sinopec Secures Major Tank Farm Project in Saudi Arabia

Sinopec, one of China’s largest state-owned oil and gas companies, has been awarded a significant contract to develop a tank farm in Saudi Arabia, marking a major expansion of its presence in the Middle East.

This development represents a key strategic move for Sinopec, which aims to strengthen its foothold in one of the world’s leading oil markets.
 

The project involves the construction of a state-of-the-art storage facility designed to handle a substantial volume of crude oil and refined products. The tank farm is expected to enhance Saudi Arabia’s capacity to manage and distribute its vast oil resources more efficiently, boosting its operational capabilities.

The deal comes at a time when the global oil industry is undergoing significant changes, with major players seeking to optimize their logistics and storage infrastructures. Sinopec’s involvement underscores the growing trend of increased collaboration between Chinese and Middle Eastern energy sectors. The company’s advanced technology and expertise in large-scale industrial projects were key factors in securing this contract.

This tank farm will feature advanced storage and management systems, designed to ensure high efficiency and safety standards. The facility’s strategic location within Saudi Arabia will facilitate better logistical coordination and support the country’s goal of increasing its oil export capabilities.

The project is expected to have substantial economic benefits for both Sinopec and Saudi Arabia. For Sinopec, it offers a substantial revenue stream and a chance to further integrate its operations within the region’s oil supply chain. For Saudi Arabia, it provides a critical infrastructure upgrade that will support its long-term energy strategy and economic diversification efforts.

As part of the agreement, Sinopec will work closely with local partners to ensure the project’s successful execution, adhering to Saudi Arabia’s regulatory standards and environmental guidelines. This collaborative approach is likely to foster stronger business relationships and open up further opportunities for Sinopec in the region.

The tank farm’s development is also expected to create numerous job opportunities, contributing to the local economy and supporting Saudi Arabia’s Vision 2030 initiative, which aims to diversify the economy and reduce its dependency on oil.

Overall, this contract signifies a pivotal moment in Sinopec’s international expansion strategy and highlights the strengthening ties between China and Saudi Arabia in the energy sector. The successful completion of this project could pave the way for additional partnerships and investments in the region’s growing energy market.

By: 1Arabia , September , 6 , 2024

Weak Chinese Manufacturing Data Adds to Bearish Sentiment in Oil Markets

Oil prices began the month of September with a drop in Asian trade, depressed by another weak reading of China’s official manufacturing activity data and signals from OPEC+ that it could proceed with unwinding some of the production cuts in October, as planned.

Early on Monday morning in Europe, oil prices were down by around 0.5%, with Brent Crude prices falling to $76.54, and the U.S. benchmark, WTI Crude, down by 0.4% to $73.24 per barrel.

Oil prices fell on reports that OPEC+ producers could start easing the ongoing cuts. Weak Chinese manufacturing also added to the downward pressure on crude prices.

Libya’s supply outage and a stronger-than-expected U.S. economy are helping to keep oil prices afloat despite this growing bearish pressure.

This weekend, the official Purchasing Managers’ Index (PMI) from the National Bureau of Statistics showed that China’s manufacturing activity contracted for a fourth consecutive month in August and slumped to the lowest reading in six months.

The PMI data from the National Bureau of Statistics was also below analyst expectations and matched last year’s lowest level. New orders, including export orders, as well as employment, remained in contraction territory in August.

“This month’s PMI data was another data point showing manufacturing strength from the first half of the year is cooling off and that we will need to see other areas of the economy pick up if the 5% GDP growth target is to be achieved,” analysts at ING said in a note on Monday.

Another weak manufacturing dataset from China weighed on the outlook of oil demand in the world’s top crude oil importer.

A private PMI assessment tracking small export companies showed on Monday modest improvement in manufacturing last month.

The Caixin China General Manufacturing Purchasing Managers’ Index (PMI), a private gauge of the manufacturing sector by Caixin Media and S&P Global, showed on Monday the purchasing managers index rising to 50.4 in August, up from 49.8 in July, signaling a slight recovery of the index into expansion territory with the reading of above 50.

Nevertheless, analysts believe that China needs more economic stimulus to turn a corner in its economy.

By Tsvetana Paraskova for Oilprice.com / Sep 06, 2024

Expanded Trans Mountain Upends North American Oil Flows and Pipeline Tolls

The Trans Mountain Expansion Project, now finally completed after years of delays, is expanding access to markets for Canadian oil producers and is set to boost the price of Canada’s heavy crude oil for years to come, top executives at the major energy firms say.

The expanded pipeline is tripling the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia on the Pacific Coast.

The expanded pipeline provides increased transportation capacity for Canadian producers to get their oil out of Alberta and into the Pacific Coast and then to the U.S. West Coast or Asian markets.

TMX has reserved 20% of its capacity – or 178,000 bpd – to uncommitted customers, or spot shippers.

As a result of the increased competition from Trans Mountain, other pipeline operators – including Enbridge, operator of North America’s largest crude oil pipeline network, Mainline – are cutting rates to transport crude on their network in September. Enbridge will ask lower tolls from companies to ship heavy crude from Hardisty, Alberta, to Texas on Enbridge’s networks, per company filings cited by Bloomberg.

As a result of TMX entering into service, crude trade flows are expected to shift, Wood Mackenzie’s analysts Lee Williams and Dylan White wrote in July.

“Wood Mackenzie data suggests that increased westbound flows will moderately cut into volumes moving on other routes out of Western Canada, especially crude-by-rail and Enbridge’s Mainline system,” they said.

Since Canadian producers continue to ramp up production, the excess pipeline capacity on the networks carrying crude from Canada to the demand centers in the U.S. should be filled fairly soon, according to analysts.

By: Oilprice / September 06, 2024.

Esbjerg and Ulsan Collaborate on Hydrogen and Ammonia for Renewable Energy

Port Esbjerg and Ulsan Port have announced a strategic partnership aimed at advancing the green energy sector through a collaborative effort focused on hydrogen and ammonia handling.

Port Esbjerg, located on Denmark’s North Sea coast, is positioning itself as a critical hub in the expanding offshore wind energy sector. With ambitious plans to establish 134 gigawatts (GW) of offshore wind capacity by 2030 and 300 GW by 2050, Port Esbjerg is set to play a pivotal role in the transition to renewable energy. In 2023, the port secured a significant investment of DKK 5.8 billion (approximately €779 million) from Pension Danmark for constructing facilities dedicated to offshore wind turbine production.

Additionally, €94 million has been allocated for developing terminals to handle Power-to-X technologies and carbon capture and storage (CCS), while €67 million will enhance Port Esbjerg’s capabilities as a multi-modal logistics hub. These investments will support the development of flex terminals, logistics properties, and facilities for green fuels.

On the other side, Ulsan Port, located in South Korea, is advancing its goal to become a low-carbon energy hub. Ulsan Port is pursuing a memorandum of understanding (MoU) with the Korean Register (KR), an international classification society, to support methanol-fueled ships.

Furthermore, Ulsan Port plans to establish a clean hydrogen and ammonia terminal at Ulsan New Port by 2030. This terminal will focus on storing ammonia for hydrogen production and supply, reflecting Ulsan’s commitment to integrating green fuels into its operations.

The partnership between Port Esbjerg and Ulsan Port reflects a shared vision for the future of green energy and aligns with their respective strategic goals. Port Esbjerg benefits from Ulsan’s expertise in hydrogen and ammonia handling, while Ulsan Port leverages Port Esbjerg’s status as a key player in the offshore wind sector.

This collaboration aims to enhance both ports’ capabilities in handling and distributing green energy, positioning them as central figures in the global shift towards sustainable energy solutions.

This announcement follows a recent visit to Ulsan by a Danish delegation, which included representatives from Port Esbjerg, Esbjerg Municipality Mayor Jesper Frost Rasmussen, and officials from the Royal Danish Embassy in Seoul. The visit underscored the existing strong connections between Danish maritime companies and Ulsan, further cementing the collaboration between the two ports.

Overall, this partnership represents a significant step towards integrating renewable energy infrastructure and advancing the global transition to a low-carbon economy. With both ports investing heavily in their respective green energy initiatives, their collaboration promises to foster innovation and drive progress in the energy sector, setting a precedent for future international partnerships in sustainable development.

By: Chem Analyst, September 06, 2024.

Equinor to Invest up to $6.7 Bln a Year in Oil and Gas Off Norway Until 2035

Equinor plans to invest 60 billion-70 billion Norwegian crowns ($5.7 billion-$6.7 billion) a year in oil and gas offshore Norway until 2035 as it expects continuing strong demand for the fossil fuels, it said on Monday.

Norway is Europe’s largest gas supplier and a major producer of oil, pumping some four million barrels of oil equivalent per day, but many of its largest offshore fields are in decline and there are currently no new developments scheduled for the 2030s.

“We see a long-term demand curve for Norwegian oil and that is why we continue to invest,” Anders Opedal, CEO of state-controlled Equinor, told a press conference.

Equinor said it could produce 1.2 million barrels of oil equivalent per day (boed) in Norway in 2035, compared with 1.4 million boed in 2023, and drill 20-30 Norwegian exploration wells annually over the next 10 years compared with 26 wells in 2023.

In terms of gas alone, Equinor reiterated it expected to deliver 40 billion cubic metres to Europe every year until 2035.

Oil and gas investments by all companies offshore Norway are expected to hit a record this year and stay at elevated levels in 2025, driven by ongoing field developments and rising inflation, according to national statistics office data.

There were still “attractive opportunities” offshore Norway, Kjetil Hove, Equinor’s head of domestic operations, told the same press conference.

By: Reuters , August 26, 2024

Expanded Trans Mountain Upends North American Oil Flows and Pipeline Tolls

The Trans Mountain Expansion Project, now finally completed after years of delays, is expanding access to markets for Canadian oil producers and is set to boost the price of Canada’s heavy crude oil for years to come, top executives at the major energy firms say.

The expanded pipeline is tripling the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia on the Pacific Coast.

The expanded pipeline provides increased transportation capacity for Canadian producers to get their oil out of Alberta and into the Pacific Coast and then to the U.S. West Coast or Asian markets.

TMX has reserved 20% of its capacity – or 178,000 bpd – to uncommitted customers, or spot shippers.

As a result of the increased competition from Trans Mountain, other pipeline operators – including Enbridge, operator of North America’s largest crude oil pipeline network, Mainline – are cutting rates to transport crude on their network in September. Enbridge will ask lower tolls from companies to ship heavy crude from Hardisty, Alberta, to Texas on Enbridge’s networks, per company filings cited by Bloomberg.

As a result of TMX entering into service, crude trade flows are expected to shift, Wood Mackenzie’s analysts Lee Williams and Dylan White wrote in July.

“Wood Mackenzie data suggests that increased westbound flows will moderately cut into volumes moving on other routes out of Western Canada, especially crude-by-rail and Enbridge’s Mainline system,” they said.

Since Canadian producers continue to ramp up production, the excess pipeline capacity on the networks carrying crude from Canada to the demand centers in the U.S. should be filled fairly soon, according to analysts.

By Tsvetana Paraskova – Sep 03, 2024

$10bn Green Refinery: Aramco, Sinopec to Decide Project’s Fate after Study by OMC

In a new development, Saudi Aramco and Chinese company Sinopec will decide if they will help establish the state-of-the-art mega project of $10 billion green refinery or crude-to-petrochemical complex after the Pakistan State Oil, a government-run Oil Marketing Company (OMC), completes the market study in December this year.

In the Pak-Saudi Arabia working group meeting held on August 29, PSO disclosed that the market study required by Saudi Aramco and Sinopec will be completed by December this year which will determine the fate of project. The result of the market study will help Aramco and Sinopec to know whether to start the mega project or not,” a senior official, who was part of the meeting, told The News.

In July 2024, the board of Pakistan State Oil (PSO) approved up to $3 million for completing the market study.

The Pakistani authorities have already notified the new green refinery policy, loaded with huge incentives of 7.5 percent deemed duty for 25 years and a tax holiday of 20 years as per the wish of Saudi Aramco. But, later on, Saudi Aramco detached itself from the royal government and adopted deregulation to a reasonable extent. This is why Aramco management is no more inclined to invest in the refinery business across the world, which is no more lucrative like in the past.

However, after hectic diplomatic endeavors, Saudi Aramco asked Pakistani authorities to include Sinopec as an EPC contractor. It was decided that PSO, Sinopec and Saudi Arabia would conduct a joint market study. But later on, both Sinopec and Saudi Aramco pushed PSO to first carry out a market study on its own, and then both entities will decide accordingly.

The feasibility will determine which type of project should be established. This will also help PSO, Sinopec and Saudi Arabia to decide the cost and capacity of the project. “The market study will also assess to what extent petroleum products will be consumed within the country and how much will be exported.

By: Khalid Mustafa / September 02, 2024