Category: Nieuws

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Kinder Morgan, Inc. (NYSE: KMI) today announced its plan to expand the working gas storage capacity at its Markham Storage facility (Markham) in Matagorda County along the Texas Gulf Coast.

KMI has reached an agreement with Underground Services Markham, LLC, a subsidiary of Texas Brine Company LLC, to lease an additional cavern at Markham to provide more than 6 billion cubic feet (Bcf) of incremental working gas storage capacity and 650 million cubic feet per day (MMcf/d) of incremental withdrawal capacity on KMI’s extensive Texas intrastate pipeline system.

Anchor shippers have subscribed to approximately half of the available capacity under long-term agreements, and commercial in-service for the project is expected in January 2024.

“During Winter Storm Uri, KMI’s storage portfolio was critical to supplying human needs customers in Texas while also providing much needed supply to numerous electric generation facilities during the storm.

We are pleased to increase our natural gas storage solutions to further support Texas customers, particularly during severe weather events,” said KMI Natural Gas Midstream President Tom Dender. “Storage capabilities on highly utilized assets are critical to support Texas’ ability to respond to an energy crisis and ensure energy reliability as renewables become a greater portion of the state’s energy mix.

This expansion will provide much needed capacity that could supply gas-fired electric generation facilities within ERCOT and provide electric service to well in excess of one million homes in Texas.”

Prior to the expansion, Markham had 21.8 Bcf of working gas storage capacity with peak delivery of 1.1 Bcf/day of natural gas with multiple receipt and delivery points on KMI’s nearly 7,000-mile Texas intrastate system.

By Kinder Morgan, June 9, 2023

Gasunie and Vopak today announced that they have entered into a cooperation agreement.

The aim is to jointly develop future terminal infrastructure projects that will facilitate the necessary imports of hydrogen into Northwest Europe via Dutch and German ports. Both parties have been working together in the Gate LNG-terminal in the Port of Rotterdam that came into operation in 2011.

Alongside domestic production of hydrogen, large-scale import of green hydrogen will become essential for reaching the European Green Deal and the Fit for 55 targets.

Import initiatives are developing rapidly: the first import streams to Germany and the Netherlands are expected by 2025. Global supply chains and logistics infrastructure need to be developed and operated to facilitate the import of green hydrogen required for the energy and feedstock transition.

The cooperation agreement includes import projects for hydrogen through green ammonia, liquid organic hydrogen carriers, and liquid hydrogen technologies.

To safely and reliably handle products like hydrogen and ammonia, high quality infrastructure and operations are needed. Vopak and Gasunie will focus on developing import infrastructure related to storage that enables further distribution of hydrogen to end users (e.g. by means of pipeline, vessels, road and rail) and contributes to the security of supply in Northwest Europe.

Both parties have a long track record in developing infrastructure and safely storing and handling these types of products.

As independent infrastructure companies Gasunie and Vopak will focus solely on the development as well as safe and reliable operation of open access infrastructure. Open access logistics infrastructure that is available to all market parties is most effective, both from a cost and environmental footprint perspective.

It can further accelerate the import and use of green energy to a wide range of end markets. On April 11, 2023. Gasunie, Vopak and HES International announced that they joined forces to develop an import terminal for a hydrogen carrier in the port of Rotterdam, named ACE Terminal.

Ulco Vermeulen, Director Business Development Gasunie: “With this agreement, Vopak and Gasunie continue their many years of successful co-operation. Hydrogen is an essential component of the sustainable energy mix of the future.

Our joint goal is to enable the international hydrogen value chain by providing the necessary import infrastructure. As a renewable energy infrastructure company, we already function as a linking pin for the energy transition in various public private partnerships in the Netherlands. With this agreement, Vopak and Gasunie can play a role in the transport, storage and import as part of the international hydrogen value chain.”

Frits Eulderink, Executive Board Member and COO of Royal Vopak comments: “We are delighted to extend our partnership with Gasunie beyond our successful Gate LNG terminal operations in the Port of Rotterdam and jointly develop vital infrastructure supporting the energy transition. We are looking forward to working together with Gasunie in the development of new infrastructure for the future vital products.”

By Vopak, June 2, 2023

Enbridge has announced that, through a wholly owned subsidiary, it has entered into a definitive agreement with FortisBC Holdings to acquire its interest in FortisBC Midstream, which holds a 93.8% interest in Aitken Creek Gas Storage facility and a 100% interest in Aitken Creek North Gas Storage facility (collectively, Aitken Creek Storage) for $400 million (€362 million).

Aitken Creek Storage is an underground reservoir located 120 km northeast of Fort St. John, British Columbia, Canada, and is the largest and only underground natural gas storage facility in British Columbia, totalling 2.2 bcm of working gas capacity.

‘Enbridge is pleased to acquire Aitken Creek Storage, a well-located and connected facility that will enable us to continue to meet regional energy needs as well as support increasing demand for west coast LNG exports,’ says Cynthia Hansen, Enbridge executive vice president and president, gas transmission and midstream. ‘Natural gas plays an increasingly important role in the energy transition, and this investment further aligns with Enbridge’s focus on providing the affordable, sustainable and reliable energy that is needed now and into the future.’

The transaction is expected to close later in 2023, subject to receipt of customary regulatory approvals and closing conditions.

By Tank Storage Mag, June 2, 2023

Harvest Midstream announced that it closed on the acquisition of Paradigm Midstream from funds managed by Ares Management’s Infrastructure Opportunities strategy after agreeing to the purchase on February 24, 2023.

“We are pleased to complete this transaction,” said Harvest CEO Jason C. Rebrook. “The addition of the Paradigm systems will enable us to further expand our services in the Eagle Ford and develop new long-term relationships in North Dakota.”

The newly acquired systems include four wholly owned gathering systems known as the Charlson Gathering System, Van Hook Gathering System, Mountrail Gathering System, and Eagle Ford Gathering System. In total, the systems transport over 110,000 barrels of oil per day, approximately 75 MMcf/d of natural gas, and include approximately 350 miles of trunk lines and gathering lines for oil, gas, and water.

The purchase also includes Paradigm’s ownership interest in two joint ventures with Phillips 66. The joint ventures own all of the Keene and Palermo storage terminals and 99% of the Sacagawea crude lines and the Blue Buttes gas line.

By Citybiz, June 2, 2023

Royal Vopak (“Vopak”) (XAMS: VPK) and AltaGas Ltd. (“AltaGas”) (TSX: ALA) are pleased to announce the execution of definitive agreements for a new 50/50 joint venture to further evaluate development of the Ridley Island Energy Export Facility (REEF), a large-scale liquefied petroleum gas (LPG) and bulk liquids terminal with marine infrastructure on Ridley Island, British Columbia, Canada.

REEF, as part of the previously submitted regulatory filings (under the name of Vopak Pacific Canada), will have the capability to facilitate the export of LPGs, methanol, and other bulk liquids that are vital for everyday life. REEF has been granted the key Federal and Provincial permits to construct storage tanks, a new dedicated jetty, and rail and other ancillary infrastructure required to operate a state-of-the-art and highly efficient facility. REEF would be developed on a 190-acre (77 hectare) site on lands administered by the Prince Rupert Port Authority for which the joint venture has executed a long-term lease that sits adjacent to AltaGas and Vopak’s existing Ridley Island Propane Export Terminal (RIPET), which has been in operation since April 2019.

Should REEF reach a positive final investment decision (FID), it is planned to be developed and brought online in phases. This approach will provide the most capital efficient build out of the project, match energy export supply with throughput capacity, mitigate the challenges that large development projects can have on local communities, and provide local construction and employment opportunities that would extend over longer time horizons. AltaGas has executed a long-term commercial agreement with the joint venture for 100% of the capacity for the first phase of LPG volumes, subject to a positive FID. AltaGas will also be responsible for the construction and operational stewardship of the facility. Future phases of the project will be developed as additional long-term commercial agreements and critical milestones are achieved to deliver the maximum value for all stakeholders.

Vopak, AltaGas, and the Prince Rupert Port Authority have been working closely with First Nations rights holders and key stakeholders, including the local communities in Northwestern British Columbia and the Federal and Provincial regulators, to deliver a project that will operate with industry-leading environmental stewardship and bring the strongest benefits to all parties involved. Key determinations and permits have been received from the Federal Government and an Environmental Assessment Certificate has been received from the British Columbia Provincial Government.

REEF Benefits from Structural West Coast Advantage to Asian Markets

With only ten shipping days to the fastest growing demand markets in Northeast Asia, REEF will be able to efficiently connect Canada’s vital energy products to the world. This includes having an approximate 60 percent base time savings over the U.S. Gulf Coast, which requires a minimum 25-day shipping time to Northeast Asia, and approximately 45 percent base case time savings over the Arabian Gulf, which requires a minimum 18-day shipping time. This geographic advantage expands when there is significant congestion in the Panama Canal or when other global shipping pinch points experience disruptions. Furthermore, the Port of Prince Rupert provides REEF year-round ice-free operations and has the deepest natural harbour in North America, leaving it able to accommodate the world’s largest vessels, which ensures safe and reliable market access and allows AltaGas and Vopak to efficiently connect upstream and downstream markets.

Joint Venture is Targeting Advancement of Critical Workstreams Over 2023

REEF is currently working through front end engineering design (FEED) activities, where deliverables will include a refined capital cost estimate, a project execution plan, a construction schedule, and a projected in-service date, among numerous other items. FEED and other development activities are expected to be completed by late 2023, followed by an FID by the joint venture. Solidifying long-term economic rail agreements in partnership with the rail operator will also be key for the joint venture to be able to reach a positive FID and ensure the project advances, and, in turn, delivers the strong benefits to the joint venture partners, First Nations rights holders, the Prince Rupert Port Authority, local communities, upstream and downstream customers, and other key stakeholders.

Vopak and AltaGas are excited to further evaluate the development of REEF and build on the strong partnership between the two companies, under this new joint venture agreement. Vopak and AltaGas thank all stakeholders for the continued embracement and ongoing partnerships as part of this project. Working with stakeholders and seeking strong partnerships is part of both organization’s individual and collective DNA and is engrained in how Vopak and AltaGas approach their businesses every day.

“We are excited to build on our success with AltaGas in Prince Rupert”, said Dick Richelle, Chairman of the Executive Board and CEO of Royal Vopak. “Our goal is to create together with partners high quality critical infrastructure for vital products. The strategic location of Prince Rupert, with the shortest shipping distances between North America and Asia, has the potential to increase the trade between Canada and the Asia Pacific region. REEF fits very well within Vopak’s strategic pillar to grow in gas and industrial infrastructure. We look forward to further collaboration with First Nations rights holders and key stakeholders to make this project a reality.”

“We are excited to execute this agreement and continue to advance our relationship with Vopak, the Prince Rupert Port Authority, First Nations rights holders, and the local communities surrounding Prince Rupert” said Randy Crawford, President and CEO of AltaGas. “Canada has a structural advantage in delivering LPGs into Asia from its world class resources and through the shortest shipping time and lowest maritime emissions footprint. AltaGas delivers more than 12% of Japan’s propane and 12% of South Korea’s LPG imports through connecting our valued upstream customers with key downstream markets in Asia. REEF fits our corporate strategy of operating long-life infrastructure assets that connect customers and markets and provide resilient and durable value for our stakeholders. We look forward to working with all our partners to achieving the remaining milestones required to reach a positive FID on the project.”

“We congratulate Royal Vopak and AltaGas on this significant milestone towards advancing development of the terminal project at the Port of Prince Rupert” said Shaun Stevenson, President and CEO, Prince Rupert Port Authority. “Once operational, the new facility will substantially increase and diversify the Port of Prince Rupert’s liquid bulk cargo capabilities and capacity, while providing a much-needed export solution for Canadian producers during a critical time in the global energy transition.”

“We commend Vopak and AltaGas on their efforts to-date on building long-term relationships with our community,” said Chief Harold Leighton, Metlakatla First Nation. “We are excited with the potential this joint venture project provides to our area and the Metlakatla First Nation.”

By Vopak, June 2, 2023

ADNOC Logistics & Services (ADNOC L&S), the shipping and maritime logistics arm of ADNOC, announced today the successful berthing of LNG carrier, Ish, at the AG&P Philippines LNG (PHLNG) Import Terminal in Batangas Bay, as it continues expanding its operations globally.

Following her arrival, Ish will be commissioned as a Floating Storage Unit (FSU) at PHLNG, the first LNG import terminal in the Philippines. AG&P subsidiary, GasEntec, converted the vessel, which has a capacity of 137,500 cubic meters, to an FSU in five months.

The supply, operations and maintenance of the FSU will be undertaken by ADNOC L&S.

The agreement to charter Ish to AG&P, was signed in 2022 and spans 11 years with the option to extend a further four years. This arrangement bolsters ADNOC L&S’ FSU revenue stream and extends the life of the vessel while securing PHLNG’s resilience of LNG supply.

The agreement builds on an existing long-term charter signed between ADNOC L&S and AG&P to provide another FSU in India.

Captain Abdulkareem Al Masabi, CEO of ADNOC L&S, said: “Successful partnerships create new value collaboratively, and the repurposing of vessels provides a blueprint for sustainable value creation.

“For ADNOC L&S, this translates to extending the operational life of our vessel and unlocking new revenue streams and opportunities for growth. For AG&P, this means availing a flexible storage solution for their new LNG terminal, which will catalyze wider economic and social prosperity.”

The partnership between ADNOC L&S and AG&P highlights the importance of collaboration and innovation in the energy sector.

Through this agreement, the companies are working together to bring affordable and reliable energy to the Philippines and beyond, while setting new standards for safety and efficiency in the industry.

Joseph Sigelman, Chairman and CEO of AG&P said: “AG&P prizes its growing partnership with ADNOC L&S. With the Ish docking at PHLNG for the next decade or longer, AG&P is proudly set to open the first LNG terminal in the Philippines.

“As the first cargo of fuel originated in Abu Dhabi and with the long-term presence of the Ish, ADNOC L&S is playing a pivotal role alongside AG&P and San Miguel, our anchor customer, in bringing clean energy to the Philippines.

“We are proud to see the relationship between the UAE and Philippines grow in this way, with PHLNG as a prime case study.”

The vessel is part of ADNOC L&S’ diverse fleet of close to 245 owned vessels and approximately 600 operated and charted vessels per year.

Combined with its 1.5 million square meter logistics base in Abu Dhabi and its integrated logistics capabilities, ADNOC L&S is one of the region’s largest shipping and integrated logistics companies. 

By Transport&Logistics Middle East, June 2, 2023

Chevron Corp has stepped up sales of Venezuelan crude oil to rival U.S. refiners, adding PBF Energy Inc and Marathon Petroleum Corp to its list of customers for the crude, vessel tracking and loading schedules showed.

U.S. Gulf Coast refiners, which historically processed Venezuelan oil, have shown a renewed appetite for the heavy sour crude grade after Chevron late last year received authorization from the U.S. Treasury Department to expand its operations in Venezuela and resume oil shipments to the U.S. after a four-year pause. 

Chevron, the last big U.S. oil producer still operating in U.S.-sanctioned Venezuela, has increased exports of the crude since January. 

So far in April, it has loaded about 148,000 barrels per day (bpd) of oil at Venezuelan ports, with cargoes going to at least three other U.S. refiners, besides Chevron’s own refinery. 

In mid-April, Chevron sold about 550,000 barrels of Venezuelan crude to PBF for its 185,000-bpdChalmette refinery, near New Orleans, U.S. Customs data on Refinitiv Eikon showed. 

Another 500,000 barrels were being loaded this week at Venezuela’s Jose terminal for delivery to Garyville, Louisiana, according to state-run oil company PDVSA loading schedules. 

Marathon Petroleum owns and operates the 596,000-bpd Garyville refinery.

PBF and Marathon did not immediately reply to requests for comment. Chevron said it conducts business in compliance with all laws, regulations and a sanctions framework provided by the U.S. Office of Foreign Assets Control (OFAC).

Valero Energy Corp also has received cargoes from Chevron with tanker Caribbean Voyager discharging about 500,000 barrels at its 340,000-bpd St. Charles, Louisiana, refinery on Thursday.

The top independent refiner did not immediately respond to a request for comment, however, Gary Simmons, its chief commercial officer, said in an earnings call on Thursday that Venezuelan production is forecast to grow and help ease tight supplies of heavy sour crude oil. 

Chevron has sent Venezuelan crude to its 369,000-bpd Pascagoula, Mississippi, refinery and this month shipped a cargo to a Bahamas oil-storage terminal, PDVSA’s schedules showed.

gCaptain by Arathy Somasekhar, June 2, 2023

The world of biofuels is evolving at a breakneck pace. Global production capacity is accelerating and according to the International Energy Agency (IEA) Renewables 2022 report, demand for vegetable/waste oil feedstocks is set to increase by 56% over the next five years.

The United States and Europe are moving from biodiesel and ethanol to renewable diesel, while Indonesia, Singapore and India expect growth in biodiesel, sustainable aviation fuel (SAF) and ethanol. Singapore has long been a participant in biofuels, in particular SAF and marine fuel, while China is the world’s largest exporter of used cooking oil. Indonesia has the world’s highest transport fuel blending mandate and relies heavily on domestic palm oil as a feedstock.

Chinese Used Cooking Oil to Power the World

Waste and residues, a feedstock category that includes used cooking oil, is poised for the fastest growth among biofuel inputs, with the IEA projecting total feedstock share of waste and residue to grow from 9% in 2021 to 13% in 2027. One motivator for the growth of waste and residue as a biofuel input is the natural limitations of growing more soybeans, the oil of which is the primary feedstock for biodiesel and renewable diesel in the United States.

Additionally, legislation in the European Union supports the feedstock use of waste and residual oils on environmental grounds: used cooking oil, for example, conveniently circumvents the food vs. fuel debate as it has already been used in a food application.

China has a rich and oil-rich culinary tradition. Already the world’s largest exporter of used cooking oil, according to a working paper from the International Council on Clean Transportation, China is only beginning to unlock its waste and residual feedstock potential. Bloomberg estimates that in the city of Chengdu alone, Sichuan hot pot produces an average of 12,000 tons of waste oil every month.

Renewable diesel is the fastest growing and arguably most in-demand biofuel, due to its ability to be used in unmodified diesel engines. Two years ago, U.S. production of biodiesel exceeded that of renewable diesel nearly threefold, while today renewable diesel has more than caught up and in late 2022 monthly production capacity of renewable diesel exceeded that of biodiesel in the United States.

Prior to a ramping up of U.S. renewable diesel capacity, U.S. used cooking oil was often exported to Singapore to be converted to renewable diesel before being re-imported to the United States for vehicular use. Now, with U.S. production capacity of renewable diesel increasing, the country is keeping its used cooking oil for domestic refining. China is now experiencing competition for destinations between Singapore, Europe and the United States for its residual and waste oil exports. As China eyes carbon neutrality, however, the country may begin to use its own waste and residual feedstock for domestic refining.

Sustainable Aviation Fuel and Marine Fuel Take Off in Singapore

Outside of Europe and the United States, Singapore and Japan are the world’s primary sources of SAF. SAF is seeing accelerated demand in large part due to the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), an initiative adopted by the International Civil Aviation Organization, which required aviation emissions reporting from 2021 onwards. SAF is seen as a crucial factor in decarbonization, as aviation cannot be accommodated by electrification: no battery can yet power a plane. Biofuel producer Neste’s (OTCPK:NTOIF) (OTCPK:NTOIY) Singapore expansion is set to dramatically increase capacity of SAF in the near term.

A robust port in itself, Singapore has the goal of zero marine emissions by 2050, aimed to be achieved via full electrification and biofuel use for local harbor craft in port waters. Singapore has supplied marine vessels with 70,000 MT of biofuels, according to Argus.

Indonesian Palm Oil Persists

In February 2023, Indonesia increased its biodiesel blending mandate from B30 to B35, augmenting what was already the world’s highest threshold. Biofuel in Indonesia is used both to meet climate goals and to shelter the developing population from volatile international petroleum pricing, while making use of an abundant domestic resource: palm oil.

Palm oil is the primary feedstock for Indonesian biodiesel, and while palm oil is being phased out as an input in Western production due to its association with deforestation, it is not expected to slow down in its use in Indonesian biofuel. In fact, net use of palm oil as a feedstock is expected to increase through 2027 as Indonesian gains more than offset Europe’s divestment from the feedstock, according to IEA projections.

Evolving Landscape, Evolving Risks

As the global biofuel market landscape evolves and becomes more complex, so do the risks and thus the risk management needs of market participants. Weather, geopolitics, supply chain issues or other events could affect any of these commodities at any moment. Soybean Oil, Corn, Ethanol, Brazilian Soybeans, UCO and Malaysian Palm Oil futures and options are available to trade at CME Group, providing risk management tools throughout the supply chain and across global markets. All will be markets to watch in the months and years ahead as supply and demand patterns continue to shift.

by Seeking Alpha, June 2, 2023

Oil giant Saudi Aramco reported a first-quarter profit on Tuesday of $31.88 billion, down nearly 20% from the same period last year as energy prices have sunk over global recession concerns.

The firm known formally as the Saudi Arabian Oil Co. blamed the drop — compared to $39.47 billion in the same quarter last year — on the lower crude oil prices. Aramco made a $30.73 billion profit in the fourth quarter of last year.

“We continue to deliver high reliability and low cost of production financially,” Aramco President and CEO Amin H. Nasser said on a conference call with analysts. “We continue to generate strong earnings and cash flows further, demonstrating our ability to deliver through oil price cycles.”

Benchmark Brent crude traded Tuesday around $76 a barrel, down from a high of $125 in the last year.

Saudi Arabia’s vast oil resources, located close to the surface of its desert expanse, make it one of the world’s least expensive places to produce crude. For every $10 rise in the price of a barrel of oil, Saudi Arabia stands to make an additional $40 billion a year, according to the Institute of International Finance.

In March, Aramco announced earning $161 billion last year, claiming the highest-ever recorded annual profit by a publicly listed company and drawing immediate criticism from activists amid concerns about climate change. However, as prices drop, so do Aramco’s revenues.

“Aramco is a very simple machine: It’s oil production times price, minus a little bit of cost,” said Robin Mills, the CEO of Qamar Energy, a Dubai-based consulting company. “Profit is down. That’s all oil-price driven.”

While saying Aramco was “working to further reduce the carbon footprint of our operations,” Nasser remained bullish on the world’s need for fossil fuels, citing future estimated demand from China and India.

“We continue to believe that oil demand is likely to grow, and we believe that the world will continue to need oil and gas for the foreseeable future to support a sustainable and affordable energy transition,” Nasser said. “Our concern remains that the industry is not investing enough to meet expected future demand.”

Nasser said Aramco also was looking at opportunities to produce liquid natural gas outside of the kingdom in “the U.S. and Australia and in other parts of the world.” The company also plans to spend up to $55 billion in capital projects as well to expand its production.

Those earnings came off the back of energy prices rising after Russia launched its war on Ukraine in February 2022, with sanctions limiting the sale of Moscow’s oil and natural gas in Western markets.

However, oil prices have sunk in recent weeks amid fears of a coming recession as central banks in the U.S. and elsewhere raise interest rates to try to tame inflation. That’s even after OPEC+, a group of countries including the cartel and those outside it like Russia, announced surprise production cuts in April totaling up to 1.15 million barrels. Recent OPEC+ cuts have seen U.S. President Joe Biden warn of potential “consequences” for Riyadh, even though his national security adviser just visited the kingdom and met with Saudi Crown Prince Mohammed bin Salman.

“In our view, the recent weakness seen in the oil market was driven by concern over tightening of monetary policy by central banks and (the) effect on economies,” Nasser said. “This was also worsened by the crisis (involving) regional banks in the U.S. and concern over its contagion effect. However, in our view, the markets overreacted to the situation, resulting in the sell-off by traders.”

Aramco stock rose 3% in trading Tuesday to close at $8.96, giving the oil firm a $1.97 trillion valuation and putting it only behind Apple and Microsoft for the highest market capitalization in the world. Just a sliver of its worth, under 2%, is traded on the exchange. The Saudi government holds 90% of the company, with about 8% held by Saudi sovereign wealth funds.

Separately Tuesday, Aramco announced it would begin issuing performance-based dividends to stockholders, on top of the dividends it already offers. Its base dividend in the fourth quarter of last year was $19.5 billion, ranking it as the highest in the world for a publicly traded firm.

Manufacturing Business Technology by Jon Gambrell, June 2, 2023