Latest market news

PdV names new shipping head as arrests mount

  • Market: Crude oil, Oil products
  • 09/03/20

Venezuelan state-owned PdV named a new head of its shipping unit following 38 arrests over alleged fuel theft.

PdV Marina's new president is Cesar Vladimir Romero Salazar, a navy captain who also heads the national aquatics institute INEA.

The arrests were the latest manifestation of a purge spearheaded by industries minister Tareck El Aissami, who chairs a new presidential commission tasked with overhauling PdV.

PdV has been hammered by US sanctions for over a year, and today's oil price crash will only aggravate the company's troubles.

Former PdV Marina president Oswaldo Vargas, widely known as "the Scorpion", was detained in Caracas on 6 March by agents of the defense ministry's military intelligence agency (Dgcim).

Vargas is charged with leading a systematic smuggling operation that employed PdV tankers to steal fuel from terminals near the Amuay and Cardon refineries on the Paraguana peninsula.

Interior and justice minister Nelson Reverol said the arrests include 30 officers and crew of the PdV-owned products tanker Negra Hipolita flagged in Venezuela.

"This is not simply an act of diverting fuel, it is also an act of treason," Reverol said on state-owned VTV television.

Government intelligence officials used information provided by oil union leaders to track the Venezuelan-flagged tanker after it departed from anchorage near the Amuay refinery on 5 March transporting 126,000 bl of gasoline for delivery to the Venezuelan port of La Guaira.

Union officials have long complained that corrupt PdV officials were using company tankers to skim fuel during cabotage operations.

During the short voyage from Amuay to La Guaira, the tanker switched off its transponder and transshipped some of its cargo to a smaller Colombian-flagged tanker, Reverol said.

This is not the first time the Negra Hipolita has drawn attention. PdV used the tanker to ship diesel to Syria in 2011-12, when US and EU sanctions against Damascus kept most suppliers away. Last year, the tanker was among around 15 PdV vessels that came under Venezuelan army control. But the vessel is not among the tankers that have been targeted by US sanctions in recent months.

More arrests are possible as Dgcim investigates alleged theft at PdV's Bajo Grande terminal on Lake Maracaibo, the El Palito refinery terminal in Carabobo state, and the Jose and Guanta terminals in Anzoategui state, an interior ministry official said.

The arrests followed the detention of the head of PdV's lubricants unit, and two oil traders accused of spying for the US.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
17/09/24

South Sudan eyes restart of Dar Blend crude exports

South Sudan eyes restart of Dar Blend crude exports

London, 17 September (Argus) — South Sudan is aiming to restart exports of its heavy sweet Dar Blend crude through Sudan within weeks, the country's presidency said. Around 100,000 b/d of Dar Blend has been shut in since February because of ruptures and blockages along the Petrodar pipeline which links oil fields in South Sudan to war-torn Sudan's Red Sea export terminal at Bashayer. "Sudanese engineers have accomplished the necessary technical preparations for the resumption of oil production," South Sudan said following a visit by the head of Sudan's army, Abdel Fattah Al Burhan. South Sudan said its engineers are expected to visit Sudan in the coming weeks to "familiarise themselves with the readiness of the facilities so as to jump-start production". Previous attempts to repair and restart pipeline flows have been hampered by the civil war in Sudan, which pits the army against the paramilitary Rapid Support Forces. International efforts to forge a ceasefire have been unsuccessful, with the war now in its 18th month. Production of South Sudan's medium sweet Nile Blend crude grade has not been impacted, as it is transported to Bashayer through the Greater Nile pipeline. Nile Blend now accounts for all of South Sudan's production, which stood at 60,000 b/d in August compared with around 150,000 b/d before the closure of the Petrodar pipeline, according to Argus estimates. The closure of the pipeline has put immense economic strain on South Sudan, which depends on oil sales for more than 90pc of government revenues. Meanwhile, South Sudan has postponed long-delayed national elections scheduled for December by two years. The move is seen by many as a bid by the country's leadership to cling onto power. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

Competitive SAF prices, policy needed to scale market


16/09/24
News
16/09/24

Competitive SAF prices, policy needed to scale market

Monterey, 16 September (Argus) — Efforts to scale the US sustainable aviation fuel (SAF) market will hinge on the industry's ability to narrow the price premium to conventional jet fuel, an impossible task without expanded policy and a coordinated industry focus, stakeholders said today. "The final frontier of scale is cost," SGP Bioenergy chief executive officer Randy Delbert Letang said at the Argus North American Biofuels, LCFS and Carbon Summit. Airlines are ultimately concerned with the economic feasibility of low carbon fuels versus conventional, Letang said, adding that where finer details on the road to the lowest-cost and -carbon SAF are concerned, they don't necessarily want to "know or see how the sausage is made". Fellow panelists deemed advancement in feedstock technology, risk mitigation for investors and lenders and a coordinated industry effort as essential in scaling SAF in the US and abroad via the lowering of SAF prices. Incentive programs such as Low Carbon Fuel Standard (LCFS) programs across the west coast, and the potential for expansion into other states, are one way to narrow the gap. But those present opposed restrictions on incentives between renewable feedstocks, such as those recently proposed for diesel alternatives in California, and agreed the market remains in too early a stage for complicating incentives. To narrow the scope of the aviation industry's carbon-reduction discussion to specific feedstocks and their respective carbon intensity scores could "let perfect be the enemy of good," said Eric Holle, Phillips 66's renewable fuels commercial optimization manager. As SAF projects are alternately proposed and shuttered , panelists emphasized a need for the industry to mitigate but ultimately accept the risks inherent to an adolescent and quickly evolving market. Ensuring the industry's narrative is consistent will be key in the next few years to convincing investors and lenders to accept that risk, Letang said. Reducing the carbon footprint of conventional petroleum fuels via blending biofuels, as well as expanding the applicability of those fuels — to the maritime and aviation industries, as example — is the best focus of industry efforts in the near term, he added. By Jasmine Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

NGL pipeline burning in La Porte, Texas: Update


16/09/24
News
16/09/24

NGL pipeline burning in La Porte, Texas: Update

Houston, 16 September (Argus) — A natural gas liquids (NGL) pipeline operated by Energy Transfer Partners caught fire in La Porte, Texas, this morning, sending a bright orange plume of flame hundreds of feet into the air and leading to evacuations of nearby homes and businesses. The fire started at a valve station for a 20-inch NGL line, Energy Transfer said, located in a right-of-way shared with a number of other pipelines and high voltage power lines about 17 miles southeast of downtown Houston. Energy Transfer said the line has been isolated so that the residual product in the line can safely burn itself out. "We have no timeline at this point on how long that process will take, but we are working closely with local authorities," the company said. In a broadcast press conference today La Porte officials said it would likely be many hours until the fire burns out. Energy Transfer said it was aware of reports indicating that an unknown passenger car entered the right-of-way and struck the valve location. A vehicle could be seen very close to the flaring pipeline in video broadcasts of the fire this morning. The fire was first reported at 11:24am ET by the La Porte Office of Emergency Management via the X social media platform. The fire is near the intersection of Somerton Drive and Spencer Highway. First responders, including Harris County hazardous materials officials, were on the scene at the time of the post. The right-of-way includes a refined products pipeline system, various petrochemical pipelines, a Shell butadiene line, a Chevron ethylene line and an Enbridge Energy natural gas pipeline. Chevron said its pipeline was not affected by the fire. A shelter-in-place order has been issued for the nearby San Jacinto College campus and La Porte is recommending an evacuation of all homes and businesses between Luella and Canada roads. By Michael Camarda and Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Pipeline fire reported in La Porte, Texas


16/09/24
News
16/09/24

Pipeline fire reported in La Porte, Texas

Houston, 16 September (Argus) — A pipeline fire is underway in La Porte, Texas, near a junction of several refined products, NGLs, chemicals, and natural gas pipelines. The fire, which was first reported at 11:24am ET by the La Porte Office of Emergency Management via the X social media platform is near the intersection of Somerton Drive and Spencer Highway, near a dense collection of pipelines. First responders, including Harris County hazardous materials officials, were on the scene at the time of the post. Large orange flames coming from a compressor station were visible on local news broadcasts and on social media. The source of the fire is not immediately clear. The right of way includes a refined products pipeline system, various petrochemicals pipelines, a Shell butadiene line, a Chevron ethylene line, as well as an Energy Transfer-owned natural gas liquids (NGLs) line and an Enbridge Energy natural gas pipeline. The city of La Porte was not immediately available for comment. A shelter in place order has been issued for the nearby San Jacinto College campus and La Porte is recomending an evacuation between Luella and Canada roads. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Energy firms on alert after flooding in Europe: Update


16/09/24
News
16/09/24

Energy firms on alert after flooding in Europe: Update

Adds details throughout Warsaw, 16 September (Argus) — Torrential rain has led to major flooding across large swathes of central and eastern Europe, causing power outages and significant damage to transport infrastructure in southwest Poland and the Czech Republic. Parts of Austria, Germany, Hungary, Slovakia and Romania are also affected. In Poland, most of the affected areas so far are in the southwest of the country close to the border with the Czech Republic including the towns of Jelenia Gora, Klodzko, Nysa and Glucholazy. Urban areas further down the Odra river are also at risk including the cities of Wroclaw and Opole, where elevated water levels are expected in the coming days. The Polish government held an emergency meeting earlier today and a state of emergency has since been declared in the affected areas. Polish utility company Tauron, which operates the electricity distribution network in the worst affected area, said some of its infrastructure was disconnected in several towns including Klodzko and Glucholazy. But Poland's power grid operator PSE said there has been no damage to transmission infrastructure. Likewise, Polish gas pipeline operator Gaz-System said it has not suffered any damage but remains in crisis mode. Polish train operator PKP Intercity suspended passenger rail traffic to and from the Czech Republic on 15 September until further notice, while local TV showed images of damaged road and waterways infrastructure, including bridges and dams as well as retail fuel stations. Poland's wholesale coal market, which is usually busy in the autumn, could stall in flood-hit areas for a few weeks as priority is given to the clean-up operation and repairing transport infrastructure, according to traders in the country. But Polish biofuel firm Bioagra, which operates a bioethanol plant near the flood-hit town of Nysa, told Argus that the facility continues to operate normally. In the Czech Republic, Orlen Unipetrol — operator of 108,000 b/d Litvinov and 66,000 b/d Kralupy refineries — said all its production sites continue to operate although the company has shut 11 of its service stations in the country. The firm said its crisis management team at each production site is monitoring the situation and it is in contact with authorities. Elsewhere in the Czech Republic, utility Veolia has had to shut plants in Ostrava and Krnov. Hungarian oil firm Mol — which operates service stations in Poland, the Czech Republic and Slovakia, as well as refineries in Hungary and Slovakia — told Argus that preparatory flood prevention works are underway. It is in contact with authorities and there is currently no threat to security of fuel supply, it said. Hungarian authorities expect water levels on the river Danube at Budapest to continue rising until the weekend, which could affect Veolia's 428MW gas-fired power plant at Gonyu upstream from the capital and potentially power firm MVM's 2GW Paks nuclear plant downstream from Budapest. Floods on smaller rivers Lajta and Raba in northwest Hungary are also yet to peak. Austrian refiner OMV said it has put in place precautionary safety and mitigation measures at its 193,700 b/d Schwechat refinery and two other sites at Gansendorf and Lobau in the federal state of Lower Austria, which was declared a disaster region on 15 September. No damage to property or people has been reported so far but OMV has closed four retail stations temporarily in the state as a precaution, it said. By Tomasz Stepien and Bela Fincziczki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more