Category: Nieuws

U.S. crude oil exports dropped slightly for the week ending March 1 to 4.3 MMb/d from 4.4 MMb/d in the previous week.

This seems to continue the trend of increasing US exports, as can be seen from the 4 week moving average, (blue line in graph below). Though the topline number was about flat, it hid some significant changes.  First, Enterprise’s Houston Terminal set its monthly record in February, loading 24.6 MMbbl, topping January’s record which was 20.2 MMbbl, both of which are substantially more than 2023’s average rate of 13.7 MMbbl.

The second big change was in destination, with Europe and Asia switching places. Exports destined for Asia fell substantially last week to 5.5 MMbbl from 15.9 MMbbl the previous week. This is the lowest exports to Asia have been since early November. On the flip side, volumes to Europe were up by more than 7 MMbbl to 18 MMbbl, a number we’ve only witnessed one other time in the last several years.  With the troubles in the Red Sea choking Suez Canal volumes, this was predicted to happen, with US volumes thought to be replacing Mid East volumes that are headed east, to avoid paying the rather steep penalty of the Cape of Good Hope reroute.

By: RBN Energy / Albert Marc Passy, March 8, 2024

Enbridge has embarked on further enhancing its crude oil export capabilities at the US Gulf Coast through a combination of brownfield acquisitions and new build outs to accommodate growing output from the Permian Basin and Western Canada, senior company officials said March 6.

“Today we are announcing accretive new capital investments focused on our USGC strategy that include additional export docks and storage tanks at EIEC [Enbridge Ingleside Energy Center],” CEO Greg Ebel said on a webcast at the Enbridge Investor Day in New York. “These investments provide near-term growth in the USGC and set the stage for the future expansion through high-quality partnerships and embedded organic opportunities.”

The planned new projects include a 120,000-b/d expansion of the Gray Oak pipeline, for which an open season is currently underway, and the building of 2.5 million barrels of crude storage at EIEC, both estimated to cost $100 million, President of Liquids Pipelines Colin Gruending said on the same webcast.

The long-hail Gray Oak pipeline of nameplate capacity 1 million b/d ships light barrels from the Permian to the EIEC at the Port of Corpus Christi in Texas.

EIEC is Enbridge’s prime crude oil storage and terminal with access to a marine waterfront and hinterland pipeline connectivity to the Permian and Eagle Ford basins making it a cost-advantaged location for the storage and export of crude.

At present, Enbridge has been exporting about 1 million b/d of crude from its docks at the EIEC, Gruending said.

Enbridge sanctioned 2.5 million barrels of additional crude oil storage at EIEC, which will bring overall storage capacity to nearly 20 million barrels by 2025, the company said in a release, adding the timely addition of storage tanks at Ingleside supports higher crude throughput by ensuring customers have on-demand access to their export-ready crude supply.

New marine docks, Mainline status

Also, as part of adding new USGC export capacity, Enbridge has signed an agreement to acquire two marine docks and nearby land adjacent to EIEC from Flint Hills Resources for about $200 million with the deal expected to close in Q3, 2024, the company said.

The acquisition will facilitate Enbridge’s plans to fully integrate the waterfront between EIEC and the newly acquired docks, which will add immediate crude oil export capacity and streamline existing Ingleside operations by increasing VLCC windows on the primary facility docks, Enbridge said.

Looking ahead, the new Flint Hills docks can also be configured to export multiple products and Enbridge will retain the option to expand its existing Ingleside dock infrastructure as required, it said.

“With the acquisition, we will have more capacity to load VLCCs,” Ebel said without giving a figure on current loadings from EIEC.

These investments come in the wake of growing crude oil volumes from the Western Canadian Sedimentary Basin and the Permian, which Enbridge estimates to be 500,000 b/d and 1 million b/d respectively over the shorter term, Ebel said.

For the 3,000-mile Mainline pipeline system, Enbridge sees 2024 throughput being maintained at 3 million b/d, Gruending said. The system transports Canadian heavy and light barrels from Edmonton in Alberta to Gretna on the Canadian-US border where the volumes flow onto Enbridge’s Lakehead system that supplies crude oil to refineries in US Midwest and USGC.

“North America is now long on oil and we see a resilient demand of 2 million b/d from sole-sourced refiners on the way of the Mainline system, [besides a growing demand for exports to the USGC]” Gruending said. “Despite the start up of TMX, the Mainline will not be losing a ton of volumes. The mainline has been pretty full and the system is competitive along with the demand pull.”

On March 4, Enbridge said the Canada Energy Regulator had approved the Mainline tolling negotiated settlement.

The settlement sets tariffs for crude oil and liquids shipments that start in Western Canada and are delivered across Canada and North America, Ebel said.

On Dec. 15, 2023, Enbridge filed an application with the Canada Energy Regulator for approval of the Mainline tolling settlement that covers both the Canadian and US portions of the Mainline and sees the pipeline as a common carrier system available to all shippers on a monthly nomination basis.

The settlement term is seven and a half years through the end of 2028, with new interim tolls effective on July 1, 2023.

Under the deal the new toll is be a combination of the following: C$1.65 ($1.23)/b for the Canadian portion; $2.57/b for the US section; and $0.77/b as Line 3 Replacement surcharge.

New Louisiana gas pipeline

Separately, Enbridge and Shell Pipeline have extended their relationship through additional investment in growing Gulf of Mexico offshore plays, the former said, adding a newly formed joint venture, Oceanus Pipeline Co., to develop and construct a 60-mile, 18-inch oil pipeline and a 15-mile, 10-inch gas pipeline to serve Shell and Equinor’s offshore Sparta development.

The projects are consistent with Enbridge’s low risk business model and are backed by long-term fixed payment contracts, with an estimated cost of $200 million and expected to be in service in 2028, Enbridge said.

By: S&P Global /Ashok Dutta, March 8, 2024

Vitol’s subsidiary ViGo Bioenergy has acquired PitPoint.LNG, the Dutch joint venture between TotalEnergies and SHV Energy.

Oaklins, who acted as the exclusive M&A sell-side advisor to TotalEnergies and SHV, revealed the deal in a statement on Thursday.

The company did not provide further details regarding the acquisition.

With this deal, Germany’s ViGo expands its international station network for alternative fuels and strengthens its European LNG and bio-LNG position.

According to its website, PitPoint.LNG currently operates 12 heavy-duty LNG stations in the Netherlands, Belgium, and Germany, and one bunkering station for inland waterway vessels in Cologne, Germany.

On the other hand, ViGo recently launched a bio-LNG station for vehicles in Germany’s Braunschweig and now has 28 stations in operation with more planned.

Back in 2021, energy trader Vitol bought Berlin-based LNG firm Liquind, now renamed ViGo Bioenergy.

Germany hosts the largest number of LNG fueling stations for trucks.

Recent data by Gmobility, previously known as NGVA Europe, showed that Germany had 185 LNG filing stations, while Italy had 146 such stations.

Last year, European network of LNG fueling stations for vehicles reached 700 stations due to a growing demand for LNG and bio-LNG in the transport sector.

By: LNG Prime Staff, March 8, 2024

Bloom Energy Inc. has partnered with Shell Plc. (Shell) to explore decarbonization solutions, leveraging Bloom’s innovative hydrogen electrolyzer technology.

Together, Bloom and Shell aim to develop replicable, large-scale solid oxide electrolyzer (SOEC) systems capable of producing hydrogen for potential utilization across Shell’s assets.

KR Sridhar, founder, chairman, and CEO of Bloom Energy, expressed optimism about the transformative potential of this technology in decarbonizing hard-to-abate industry sectors. He emphasized Bloom’s position as a world leader in solid oxide electrolyzer technology, poised to provide customers with American-made energy technology to reduce carbon footprints while sustaining economic growth.

Bloom’s SOEC technology enables the production of clean hydrogen at scale, offering a sustainable alternative to fossil fuel-powered “grey” hydrogen production methods. By utilizing water electrolysis and renewable energy sources, Bloom’s technology produces clean or “green” hydrogen, effectively eliminating greenhouse gas emissions.

The demand for Bloom Electrolyzer®, manufactured in California and Delaware, has been steadily increasing due to growing interest in the low-carbon economy. Independent analysis indicates that Bloom now boasts the world’s largest operating electrolyzer manufacturing capacity among all electrolysis technologies, surpassing its closest competitor by double. A highly successful demonstration in May 2023 showcased the world’s largest solid oxide electrolyzer, with a capacity of 4 Megawatts, producing 2.4 metric tons of hydrogen per day at NASA Ames research facility in Mountain View, California. This high-temperature, high-efficiency unit outperformed commercially demonstrated lower temperature electrolyzers such as proton electrolyte membrane (PEM) or alkaline electrolyzers in terms of hydrogen production per megawatt (MW).

By: Solar Quarter / Kavitha , March 8, 2024

With expectations for liquefied natural gas (LNG) demand to surge by 50% by 2030, the Gulf oil and gas giants are exploring opportunities in the US.

Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) are in negotiations to invest in US LNG projects, reported Reuters, citing sources.

With expectations that LNG demand will surge by 50% by 2030, the Gulf oil giants are exploring opportunities in the US.

Recently, the US become the leading LNG exporter globally, especially as it delivers record volumes to Europe.

Aramco is in talks regarding phase two of Sempra Infrastructure’s Port Arthur LNG project in Texas, the sources said.

This phase is an expansion of the operational first phase.

Concurrently, ADNOC is in discussions with US LNG company NextDecade concerning an offtake from a proposed fourth processing unit at the $18bn Rio Grande LNG export facility.

Both Aramco and ADNOC refrained from commenting on these discussions.

NextDecade stated it does not comment on market speculation, while Sempra Infrastructure, a subsidiary of Sempra, stated it does not comment on commercial considerations pertaining to projects in development.

The US is on track to nearly double its LNG capacity within the next four years.

However, financial challenges have impeded several US LNG project developers from advancing their export terminals.

This is due to increased investor scrutiny and regulatory pressures on banks to prioritise environmental, social and governance considerations.

In response to environmental concerns, US President Joe Biden halted approvals for new LNG export projects in January.

Details regarding whether the talks with Saudi Aramco and ADNOC involve equity stakes or sale and purchase agreements remain unclear.

One source mentioned that Aramco might acquire some or all of the output from one of the two liquefaction units planned for Port Arthur’s second phase, each with a production capacity of up to 13.5 million tonnes per annum.

Aramco is actively seeking to establish its presence in the global LNG market, while ADNOC is already an established player.

Both are in competition with Qatar, a dominant player in the global LNG export market.

By Offshore Technology / GreenOak , March 7, 2024

Trafigura Group Pte Ltd and Greenergy, a UK-based supplier of road fuels and a major biodiesel producer, today announce that Trafigura has agreed to acquire Greenergy’s European business from Brookfield Asset Management and its listed affiliate Brookfield Business Partners for an undisclosed sum. The acquisition is subject to customary closing conditions and regulatory approvals.

Initially founded in 1992 to supply diesel with lower emissions, Greenergy is today one of Europe’s largest suppliers of biofuels with manufacturing plants in the UK and the Netherlands and a leading distributor of road fuels in the UK.

The acquisition of Greenergy presents a unique opportunity for Trafigura to strengthen its fuel supply operations in Europe and to add the physical production and distribution of renewable fuels to its growing biofuels business. Post acquisition, the company will continue to be led by its current management team.

The combination of Trafigura’s and Greenergy’s commercial and market expertise will add value to the existing operations, and enable the company to explore opportunities for expansion into new markets and products.

In addition, Trafigura’s financial strength will provide a robust platform for growth, helping to drive Greenergy’s strategic initiatives and its decarbonisation plan.

Ben Luckock, Global Head of Oil at Trafigura, said: “As Europe transitions to a lower carbon future and the refining industry adapts to changing market dynamics, companies like Greenergy become increasingly important. This acquisition represents a major expansion of our existing biofuels and fuel supply capabilities, adding Greenergy’s production and distribution expertise and supporting customers’ transition to cleaner, more sustainable fuel options.”

Christian Flach, Chief Executive of Greenergy, said: “Trafigura brings additional understanding of global supply chains and energy markets and a track record of investing in renewables. This will further enhance our offer to customers through the energy transition and beyond.”

By: Trafigura / Ashitha Shivaprasad , March 5, 2024

Trafigura Group Pte Ltd and Greenergy, a UK-based supplier of road fuels and a major biodiesel producer, today announce that Trafigura has agreed to acquire Greenergy’s European business from Brookfield Asset Management and its listed affiliate Brookfield Business Partners for an undisclosed sum. The acquisition is subject to customary closing conditions and regulatory approvals.

Initially founded in 1992 to supply diesel with lower emissions, Greenergy is today one of Europe’s largest suppliers of biofuels with manufacturing plants in the UK and the Netherlands and a leading distributor of road fuels in the UK.

The acquisition of Greenergy presents a unique opportunity for Trafigura to strengthen its fuel supply operations in Europe and to add the physical production and distribution of renewable fuels to its growing biofuels business. Post acquisition, the company will continue to be led by its current management team.

The combination of Trafigura’s and Greenergy’s commercial and market expertise will add value to the existing operations, and enable the company to explore opportunities for expansion into new markets and products.

In addition, Trafigura’s financial strength will provide a robust platform for growth, helping to drive Greenergy’s strategic initiatives and its decarbonisation plan.

Ben Luckock, Global Head of Oil at Trafigura, said: “As Europe transitions to a lower carbon future and the refining industry adapts to changing market dynamics, companies like Greenergy become increasingly important. This acquisition represents a major expansion of our existing biofuels and fuel supply capabilities, adding Greenergy’s production and distribution expertise and supporting customers’ transition to cleaner, more sustainable fuel options.”

Christian Flach, Chief Executive of Greenergy, said: “Trafigura brings additional understanding of global supply chains and energy markets and a track record of investing in renewables. This will further enhance our offer to customers through the energy transition and beyond.”

By: Trafigura , March 5, 2024

Vitol-backed energy storage company VTTI is close to acquiring a majority stake in Italy’s biggest liquefied natural gas import terminal from Exxon Mobil (XOM.N), opens new tab and QatarEnergy, two sources with knowledge of the matter said on Monday.

The deal, which sources previously said could value the entire terminal at about 800 million euros ($868 million), would give VTTI a role in the European LNG market at a time when flows of the liquefied gas to Italy are on the rise.

Exxon put its 70.68% interest in the Adriatic LNG terminal up for sale last year, as part of a strategy to divest non-core assets. QatarEnergy owns a 22% stake.

VTTI and QatarEnergy were not available for comment outside working hours in Europe and the Gulf. Exxon did not immediately respond to a request for comment.

Once a deal is signed, Italian gas grid operator Snam, which currently owns a 7.3% in the terminal, will have 45 days to decide whether to exercise its right of first refusal to increase its stake in the project.

The chief executive of state-controlled Snam said in January the group could increase its stake in the terminal to as much as 30% under an agreement with the current shareholders, boosting its influence over an asset considered strategic for the country.

One of the sources said last-minute surprises to VTTI’s purchase attempt could not be ruled out. The sources declined to be named because they were not authorised to speak publicly about the matter.

Investment manager BlackRock (BLK.N), opens new tab in December bowed out of exclusive talks to acquire the asset, reopening the possibility for VTTI to buy it.

The Adriatic LNG terminal is located about 9 miles (15 km) off the Veneto coastline and has a regasification capacity of 9 billion cubic metres of natural gas per year.

It is the only Italian LNG terminal that can receive so-called super large-scale LNG vessels with a capacity of up to 217,000 liquid cubic meters.

By: Reuters / Francesca Landini, March 5, 2024