Tag: Brent Crude

Enbridge Inc. has earmarked an investment of up to CAD 2 billion ($1.39 billion) until 2028 for a Canada-United States liquids pipeline with a capacity of about 3 million barrels a day of crude oil.

That will be spent on “further enhancing and sustaining reliability and efficiency aimed at ensuring the Mainline system continues to operate safely and at full capacity to support maximum throughput for years to come”, the Calgary, Canada-based energy transporter and gas utility said in an online statement.

Mainline, which started service seven decades ago and has grown to be Canada’s biggest crude conveyor, carries production from the Canadian province of Alberta to eastern Canada and the U.S. Midwest. Besides petroleum, it also transports refined products and natural gas liquids. Mainline stretches nearly 8,600 miles, according to Enbridge.

The optimization will “support the growing need for ratable egress out of Alberta”, said chief executive Greg Ebel.

Enbridge also announced additional investments in two pipelines: CAD 400 million for the BC Pipeline and CAD 100 million for the T15 project.

The investment for the BC Pipeline is for the Birch Grove project under the pipeline’s T-North section. Expected to raise the BC Pipeline’s capacity by 179 million cubic feet per day to about 3.7 billion cubic feet a day by 2028, the Birch Grove project will provide additional egress for gas producers in northeastern British Columbia to access markets for their growing production, driven by the Montney formation.

The investment for T15 phase 2 is meant for the installment of additional compression to double the original pipeline’s capacity. Expected to go onstream 2027, the expanded pipeline will deliver around 510 million cubic feet a day of natural gas to Duke Energy Corp.’s Roxboro plant in North Carolina as it transitions from coal to gas-fired generation.

The investments come despite President Donald Trump imposing tariffs on Canada, including for its energy exports. Most Canadian products, as well as Mexican products, entering the U.S. will bear a 25 percent tariff while Canadian energy will have a lower rate of 10 percent. The tariffs apply to goods that do not qualify for preference under the three countries’ trade agreement, according to information published online by the White House.

According to the presidential house, the move is in response to Canada- and Mexico-based trafficking of drugs into the U.S. and illegal migration from Mexico. The tariffs stay “until the crisis is alleviated”, the White House said in a statement February 1.

Ebel said, “In combination with the $8 billion [CAD] of projects we sanctioned in 2024, Enbridge’s secured growth now sits at $29 billion [CAD]”.

“We expect to place approximately $23 billion [CAD] of that secured backlog into service through 2027 and the remainder is slated to enter service through 2029”, Ebel added.

“Enbridge will continue to be disciplined as we continuously high-grade our $50 billion [CAD] opportunity set through the end of the decade. Rigorous investment criteria, including project-specific hurdle rates and low-risk commercial models, allow us to capture strong risk-adjusted returns and maximize value for our investors.

“Looking ahead, we’ll maintain our capital discipline and financial flexibility. Our long-held target debt-to-EBITDA range of 4.5x to 5.0x remains the sweet spot for Enbridge and our steadily growing business can equity self-fund $9-$10 billion [CAD] of annual growth capital”.

By: Rigzone / March 10, 2025

Indonesia is going all-in on oil with a massive $12.5 billion refinery project, aiming to cut imports, boost energy security, and flex some refining muscle. The government announced plans for the 531,500-barrel-per-day facility, making it one of the largest in the region—because when you’re an economy growing as fast as Indonesia’s, relying on imports just isn’t cutting it anymore.

“We will build a refinery that, In shaa Allah, will have a capacity of approximately 500,000 barrels,” Energy Minister Bahlil Lahadalia said, signaling Jakarta’s renewed commitment to domestic refining. The move reflects President Prabowo Subianto’s aggressive push for energy self-sufficiency–a priority for a country that once exported crude but now finds itself importing increasing volumes to meet demand.

The plan, funded in part by Indonesia’s Daya Anagata Nusantara Investment Management Agency (Danantara), is expected to save the country up to 182.5 million barrels of oil per year—a reduction in imports that could translate to a whopping $16.7 billion in savings. The bold pivot away from dependency is a logical step to take amid global markets that have been rattled by trade wars, shifting OPEC+ production strategies, and unpredictable crude prices.

The refinery’s construction isn’t just an energy play—it’s an employment machine. Officials estimate 63,000 direct jobs and another 315,000 indirect jobs will be created, making this more than just an oil story—it’s a political win. The government’s 2025 priority list includes 21 downstream energy projects worth $40 billion, with this refinery taking center stage.

Meanwhile, Indonesia is still struggling with declining oil production, having slipped from a peak of 1.6 million barrels per day in the 1990s to under 600,000 bpd today. The country has courted ExxonMobil to boost output, but for now, its best bet is to refine what crude it does produce and cut down on costly imports.

By: Oil Price, March 07, 205.

RIYADH – Amin Nasser, president and CEO of Saudi Arabia’s oil giant Saudi Aramco, has said that the Chinese market is critically important to the company.

The company is continuously deepening cooperation with China, particularly through increased investments in the petrochemical and new energy sectors, Nasser said during a recent telephone press conference on the company’s 2024 earnings.

Calling China a key market for Saudi Aramco’s crude oil exports, Nasser said China is also a crucial partner in the company’s petrochemical strategy.

“We see China’s refining and petrochemical industry, especially in petrochemicals, as having reached world-leading standards, providing significant cooperation opportunities for Saudi Aramco,” he said.

Regarding investment plans, Nasser confirmed that Saudi Aramco is actively progressing with several major investments in China, all of which are advancing smoothly. Additionally, the company is enhancing strategic cooperation with Chinese enterprises such as Sinopec, exploring more joint investment opportunities.

“The Chinese market and Chinese partners will continue to play a central role in Saudi Aramco’s global strategy. We look forward to collaborating with more Chinese partners to achieve mutual growth,” he said. 

By Xinhua / March 8, 2025.

Crude oil inventories in the United States saw an increase of 1.4 million barrels during the week ending March 7, according to new data from the U.S. Energy Information Administration released on Wednesday.

Crude oil prices were trading up prior to the crude data release by the U.S. Energy Information Administration, rebounding from a slide earlier in the week, even after the American Petroleum Institute (API) reported on Tuesday a build of 4.247 million barrels in U.S. crude oil inventories amid strong product draws. The Brent benchmark was trading up 1.32% at 10:20 a.m. ET at $70.48 —a $1 per barrel increase over this time last week. The WTI benchmark, meanwhile, was trading up 1.55% at $67.28—a gain of just under $1 per barrel from last week’s level.

For total motor gasoline, the EIA estimated that inventories decreased by 5.7 million barrels for the week to March 7, with production averaging 9.6 million barrels daily. This compares with an inventory decrease of 1.4 million barrels for the previous week and an average daily production of 9.6 million barrels daily.

For middle distillates, the EIA estimated another inventory decrease, this time of 1.6 million barrels, with production dropping to an average of 4.5 million barrels daily. This compares to an inventory dip of 1.3 million barrels in the week prior, when production stood at a more robust average of 5.2 million barrels daily. The inventory slide is in line with seasonal norms and is now 5% below the five-year average for this time of year.

Total products supplied over the last four weeks were up week over week, averaging 20.7 million barrels per day—a 3.9% increase over this time last year. Distillate products supplied over the last four weeks are up 9.5% compared to this time last year, while gasoline products supplied were up 0.1% from the same period last year.

By Julianne Geiger for Oilprice.com Mar 12, 2025

The first supply of Neste’s renewable diesel has been delivered to the Singapore Cruise Terminal by a tanker operated by Global Energy. The fuel was sourced from Vopak’s Penjuru Terminal, following a strategic partnership between Neste and Vopak to support Singapore’s sustainable fuel development.

Ee Pin Lee, head of commercial APAC, renewable products at Neste, says: ‘This first supply of Neste MY Renewable Diesel to the maritime sector in Singapore is a significant milestone; and demonstrates the versatility of the drop-in product across a wide range of applications where it can replace fossil diesel. It is an effective decarbonisation solution for enabling the maritime sector to be more sustainable and this collaboration sends a clear signal of our commitment to Singapore and the Asia Pacific region. Neste is the world’s leading producer of sustainable aviation fuel and renewable diesel.’

Neeraj Kumar, VP of commercial chemicals & business development new energies for Vopak’s Singapore business unit adds: ‘We greatly value our partnership and collaboration with Neste. Together, we are enabling our customers to leverage our expansive network, advanced infrastructure solutions, and unwavering commitment to safety. We are proud to contribute to the regional and global shift toward more sustainable energy and feedstocks, driving innovation and sustainability in the marine sector. Together with our customers and partners we help the world flow forward.’

By: Tank Storage Magazine / March 06, 205

Refinery closures combined with growing demand for gasoline, diesel, and jet fuel are about to start squeezing available volumes—and this squeeze is about to become marked next year. That’s according to the Energy Information Administration, which warned this would plunge inventories to the lowest levels since 2000.

Two refineries are set to shut down this year, the EIA said in the latest edition of its monthly Short-Term Energy Outlook. One is in Houston, and the other in Los Angeles. The Houston facility, owned by LyondellBasell, which has already begun the process of the shutdown, has a capacity of 263,776 barrels daily. The Los Angeles refinery, property of Phillips 66, can process 138,700 barrels of crude daily. The closure of these two would reduce fuel production capacity in the country by 400,000 barrels daily.

The refining industry globally has been experiencing the effects of a declining supercycle even though demand has continued to grow, and, as confirmed by the EIA, this growth will continue. Even so, the record margins of 2022 and 2023 are gone now. Before the new cycle begins, some belt-tightening is in order.

In the U.S., refiners were also subjected to additional pressure during the Biden administration to join the federal government’s climate change-oriented energy policy and switch to biofuels from petroleum fuels. In California, specifically, pressure has been strong, both on the federal and state level, with the government in Sacramento recently demanding from refiners in California to keep a certain level of fuel inventories to avoid price spikes that the refiners themselves attribute to the state government’s energy policies seeking to phase out vehicles using petroleum fuels.

The closure of the Phillips 66 refinery in Los Angeles is one consequence of that policy. There are even reports that California authorities are considering refinery nationalizations to secure the supply of fuels to drivers in the state. Two refineries in California have already converted to biofuel production plants because biofuel production fetches generous subsidies from the state government: Phillips 66 is closing the L.A. facility by the end of this year, and Chevron and Valero are also considering shutdowns.

As a result of these refinery closures, the supply of fuels will understandably tighten, with diesel and jet fuel especially vulnerable, it seems. The diesel tightness will be global and manifest this year, as an estimated 1 million barrels per day of refining capacity across Europe and the U.S. is set to close permanently. Another 800,000 barrels daily in new capacity is set to come online in China, India, and Indonesia, Reuters estimated at the end of 2024, which leaves a gap of about 200,000 bpd. Demand for fuels, meanwhile, has continued to surprise to the upside.

In the United States specifically, refining output is estimated to decline by 190,000 barrels daily this year, the Energy Information Administration said this week, with a further decline of 180,000 barrels daily in 2026. “To meet the forecast increase in U.S. consumption of petroleum products with less U.S. refinery capacity, we expect refinery utilization to remain relatively high and for net U.S. exports of petroleum products to decrease to meet domestic fuel demand,” the EIA said in its Short-Term Energy Outlook.

If demand for fuels continues growing, a shortage may well be on the way, as suggested by the chief executive of Phillips 66 last year. Mark Lashier said in September 2024 that refinery closures prompted by low margins could shave some 700,000 bpd from global refining capacity. He saw this as a positive for U.S. refiners, however. “The US has become very competitive in refining,” Lashier said. “We’re able to compete out in the world global markets.”

By Oilprice.com / Irina Slav – Mar 04, 2025.

U.S. natural gas futures jumped in Monday’s early trading session, rebounding from recent lows driven by robust export flows and strong demand forecasts. Henry hub gas was trading at $3.98 per MMBtu at 11.25 am ET, up from a two-week low of $3.74 per MMBtu a week ago. U.S. LNG exports hit a fresh record 15.6 bcfd in February, boosted by new units at Venture Global’s (NYSE:VG) Plaquemines plant. The Arlington, Virginia-based LNG exporter commenced LNG production at its Plaquemines LNG plant 30 months after the final investment decision (FID) was made, making the plant with a 20 mtpa nameplate capacity one of the two fastest greenfield projects to reach first production. Once fully operational, Plaquemines will be among the largest LNG facilities in the world, featuring 36 electrically-driven 0.626 million tonnes per annum (mtpa) liquefaction trains, configured in eighteen blocks. 

“Reaching first LNG at Plaquemines at this pace will enable the United States to remain the top exporter of LNG in the world. Between current and planned facilities, Venture Global is prepared to invest $50 billion in energy projects based in the United States which will create jobs, support local economies, strengthen the balance of trade and unleash much-needed US LNG supply to our allies,” remarked Venture Global CEO and Co-Founder, Mike Sabel. 

The U.S. is rapidly developing LNG plants to meet Europe’s surging demand for the commodity. Two weeks ago, Cheniere Energy, for the first time, started producing liquefied natural gas (LNG)  from the first train (Train 1) of its Corpus Christi Stage 3 Liquefaction Project. As of Nov. 30, the overall project completion for the project was close to 76%; however, the company expects substantial completion achieved at the end of the first quarter of 2025. The project consists of seven midscale trains, projected to produce over 10 million tonnes per annum (mtpa) of LNG.

Meanwhile, gas demand in the Lower 48 states is projected to be higher than previously anticipated despite milder weather expected through March 18. Also, stockpiles remain about 12% below the five-year average due to earlier extreme cold. U.S. gas output hit a fresh record of 104.7 bcfd in February.

By Alex Kimani for Oilprice.com / Mar 03, 2025

Shell is considering a potential sale of its chemicals assets in Europe and the United States, the Wall Street Journal reported on Sunday, citing sources familiar with the matter.

The energy group has hired Morgan Stanley to conduct a strategic review of its chemicals operations, the report said.

Shell and Morgan Stanley declined to comment.

Potential buyers could include private equity firms and Middle Eastern entities seeking to expand their Western presence, according to the newspaper.

The review is in its early stages and Shell has not yet made any definitive decisions regarding a potential sale, the Journal reported, adding that one of the assets included in the review was Shell’s Deer Park facility in Texas.

The Deer Park operation is adjacent to a refinery that Shell previously sold its 100% stake to joint-venture partner, Mexican state oil firm Pemex.

Last year Shell sold its refining and chemicals hub in Singapore, one of the world’s largest.

The British company warned earlier this year that it expects trading in its chemicals and oil products division to be significantly lower quarter-on-quarter due to lower seasonal demand.

Shell chief executive Wael Sawan has been focused on cutting costs and pivoting the company back to its most profitable sectors — oil, gas, and biofuels — while shifting away from renewable power.

Last December, Reuters reported exclusively that the oil major was stepping back from new offshore wind investments and is splitting its power division after a review of the business that was once seen as a key driver of the company’s energy transition strategy.

By: Reuters / March 03, 2025.

 U.S. crude oil refinery inputs averaged 15.3 million barrels per day (b/d) during the week ending Jan. 31, 159,000 b/d more than the previous week’s average, according to the weekly report issued by the U.S. Energy Information Administration (EIA) on Wednesday.

Refineries operated at 84.5 percent of their operable capacity last week, said the Weekly Petroleum Data Report.

During the same period, both gasoline and distillate fuel production declined, averaging 9.2 million b/d and 4.6 million b/d respectively.

U.S. commercial crude oil inventories, excluding those in the Strategic Petroleum Reserve, surged by 8.7 million barrels from the previous week to 423.8 million barrels, about 5 percent below the five-year average for this time of year.

Total motor gasoline inventories rose by 2.2 million barrels last week, slightly above the five-year average for this time of year.

Finished gasoline inventories went down while blending components inventories went up last week.

Distillate fuel inventories dropped by 5.5 million barrels last week, around 12 percent below the five-year average for this time of year.

Propane/propylene inventories shrank by 4.8 million barrels last week, 2 percent below the five-year average for this time of year.

Total commercial petroleum inventories went down by 2.7 million barrels last week.

Total products supplied over the last four-week period averaged 20.6 million b/d, up by 3.3 percent from the same period last year.

Over the past four weeks, motor gasoline product supplied averaged 8.3 million b/d, down by 0.2 percent from the same period last year.

Distillate fuel product supplied averaged 4.3 million b/d over the past four weeks, up by 13.7 percent from the same period last year.

Jet fuel product supplied was up 4.6 percent compared with the same four-week period last year. 

By: Xinhua / February  19, 2025