Cuba in talks to install more Turkish power barges

  • Market: Crude oil, Electricity, Oil products
  • 02/12/20

Turkey's Karpowership is in talks with Cuba to install additional thermal power barges to support three that are now delivering 10pc of the island's electricity, the company told Argus.

The three floating thermal generating units are berthed in the northern port of Mariel, 40km (24.8mi) west of Havana, and are using heavy fuel oil to supply state-owned utility UNE.

The Barış Bey and Esra Sultan barges started operating in Mariel in July 2019, and the Ela Sultan started up in November 2019, expanding contract capacity with UNE up to 184MW.

UNE has not responded to a request for comment. Cuba routinely experiences blackouts, partly because of spotty delivery of imported fuel for UNE's oil-fired plants.

Some of Cuba's Soviet-era plants burn domestic heavy crude, and others use diesel. Cuba has 5.87GW of installed generating capacity, of which 3.2GW is operational, according to UNE.

Venezuela's state-owned PdV supplies crude and refined products to Cuba under an opaque two-decade-old barter agreement between Havana and Caracas. But PdV's own crude production has plummeted in recent years and its refineries are mostly broken.

Cuba still receives some Venezuelan oil aboard PdV-owned tankers that regularly shuttle back and forth to the island despite US sanctions aimed at thwarting the trade. But neither the government nor state-owned oil company Cupet has disclosed the volumes and make-up of the supplies.

Venezuela's US-backed political opposition regularly decries the supply to Cuba as a giveaway of the Opec country's resources. It is not clear if the Turkish barges are using Venezuelan fuel oil.

The negotiations between UNE and Karpowership are currently paused because of the Covid-19 pandemic but will be resumed "as soon as possible," Karpowership said.

Next stop Haiti

Elsewhere in the Caribbean, Karpowership is "in the final stages" of contract negotiations with Haiti's state-owned utility EdH for deploying two barges with 115MW of capacity.

The barges will double EdH's generation, EdH director general Michel Présumé has told Argus.

The barges will be installed in 2021 and the generators will be fired by heavy fuel oil "with an intention of switching to LNG before the expiration of the contract," Karpowership said.

Karpowership has also been in discussion with other Latin American and Caribbean prospective partners, the company said, without naming any of the countries.

"We will be able to provide details on other partnerships as and when conversations advance," the company said.

Karpowership is part of Istanbul-based Karadeniz Energy Group.


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
30/05/24

Trump found guilty in criminal 'hush money' case

Trump found guilty in criminal 'hush money' case

Washington, 30 May (Argus) — Former president Donald Trump was found guilty today on 34 felony counts of falsifying business records in relation to the reimbursement of a $130,000 payment to an adult film star ahead of the 2016 presidential election. The unanimous guilty verdict, from a 12-member jury in New York, will inject further uncertainty into the presidential election on 5 November, where Trump is the presumed Republican nominee and is leading in many polls against President Joe Biden. Trump is the first former US president to face a criminal trial, and his conviction means he will run for office — on a campaign focused in part on rolling back energy sector regulations and expanding drilling — as a convicted felon. Sentencing is scheduled for 11 July. Trump has argued the criminal charges, filed by New York state prosecutors, were "ridiculous" and were a politically motivated attempt to interfere with his campaign. At trial, Trump's attorneys argued against the credibility of a key witness, Trump's former attorney Michael Cohen, who testified that Trump directed the falsification of the business records to conceal a "hush money" payment to the adult film star following an alleged affair. "This was a rigged, disgraceful trial," Trump said following the verdict, "but the real verdict is going to be November 5 by the people, and they know what happened here." Despite the conviction, Trump, if elected, could still serve as president. Trump could face up to four years in prison, and sentencing will be decided by the judge overseeing the case. Trump is separately facing dozens of other felony charges in federal and Georgia state court, but those cases have faced delays and may not go to trial before the election. President Joe Biden's campaign said Trump has "always mistakenly believed" he would not face consequences. Biden's campaign said that despite the verdict, it would be up to voters to decide whether Trump is re-elected. "Convicted felon or not, Trump will be the Republican nominee for president," Biden's campaign said. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

California diesel inventories hit all-time low: CEC


30/05/24
News
30/05/24

California diesel inventories hit all-time low: CEC

Houston, 30 May (Argus) — Combined California diesel stocks fell to the lowest level in California Energy Commission (CEC) history in the week ended 24 May. Combined diesel inventories — including in-state CARB, non-California EPA and renewable diesel — totaled 2.3mn bl after significant draws across grades, despite a sharp increase in-state CARB diesel output during the week, according to CEC data going back to 2005. In-state CARB diesel stocks totaled 1.37mn bl by the end of the week and marked a 13pc drop from the week prior. Other diesel fuel inventories contracted by nearly 17pc to 929,000 bl. Production of in-state CARB diesel jumped by nearly 40pc in the week to 128,000 b/d, while other diesel output — including non-California EPA and renewable diesel — plummeted by more than 44pc to average 51,000 b/d. In-state CARBOB gasoline production dipped by 2.8pc to average 800,000 b/d from the week prior, although inventories added a nominal 1.8pc to a nine-week high of 6.10mn bl. Total gasoline production trended 2.7pc lower at 879,000 b/d. California jet fuel production jumped by nearly 18pc to 321,000 b/d, the highest level since 19 April. Inventories grew by 0.6pc to 3.24mn bl, continuing a trend of largely stable volumes since 10 May. Crude throughputs increased by 9.4pc to 1.44mn b/d as stocks shrank by 19pc to 11.1mn bl — the lowest volume since January 2024. By Jasmine Davis California refining throughputs and storage Commodity 24-May-24 17-May-24 ± Throughputs '000 b/d Crude 1,440 1,316 124 CARBOB 800 823 -23 Total gasoline 879 904 -25 Jet fuel 321 273 48 California distillate 128 92 36 Inventories '000 bl Crude 11,098 13,670 -2,572 CARBOB 6,098 5,988 110 Jet fuel 3,235 3,215 20 California distillate 1,373 1,586 -213 California Energy Commission Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

ISO publishes new marine fuel specification


30/05/24
News
30/05/24

ISO publishes new marine fuel specification

London, 30 May (Argus) — The International Organisation for Standardization (ISO) published its new marine fuel specification standard today. The 7th edition of the specification standard, ISO 8217:2024, will replace its predecessor, ISO 8217:2017, which has now been withdrawn. The document encompasses seven categories for distillate fuels, four categories for residual fuels at or below 0.5pc sulphur content, five categories for residual fuels blended with fatty acid methyl ester (Fame) biodiesel and five categories for residual fuels above 0.5pc sulphur. Some of the changes had previously been discussed and are confirmed. These include the removal of the previous 7pc Fame limit when blended with distillate marine fuels. This is now possible up to 100pc. The distinction between winter and summer quality for cloud point and cold filter plugging point (CFPP) has also been removed. And there is now a requirement to report the net heat of combustion for a distillate fuel grade as well as the requirement for a minimum cetane number and oxidation stability. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

ExxonMobil's Nigeria sale inches forwards


30/05/24
News
30/05/24

ExxonMobil's Nigeria sale inches forwards

Lagos, 30 May (Argus) — ExxonMobil's long-delayed sale of its Nigerian shallow-water oil and gas business to London-listed Seplat is one step closer, with the US major having agreed a settlement with state-owned NNPC that removes a legal obstacle to a regulatory review of the deal. Exxon agreed the $1.58bn divestment, for its 40pc stake in more than 90 shallow-water and onshore platforms, in February 2022. The assets generate around 95,000 b/d of oil equivalent (boe/d). Completion has been delayed by a dispute over pre-emption rights provided for in an NNPC-Exxon joint operating agreement, and the state-owned firm got a court injunction blocking the deal in July 2022. Ministerial approval, appearing to ignore the court injunction, was first granted and then withdrawn in August 2022. Nigerian upstream regulator NUPRC said at the start of May that Exxon and NNPC would have to reach a settlement before a review could be conducted or any recommendation for its approval submitted to the petroleum minister. Before recommending any deal for ministerial approval, the regulator said it has to determine if intending buyers have the financial resources and technical expertise to manage their acquisition targets, and whether sellers or buyers will be responsible for environmental remediation, host community obligations and decommissioning liabilities. NUPRC also said the government had set 31 August as a deadline to clear Nigeria's backlog of unapproved upstream deals. NNPC did not reveal the terms of today's settlement, which comes after Nigeria's president Bola Tinubu, who doubles as petroleum minister, and his two junior petroleum ministers met ExxonMobil upstream president Liam Mallon and its Nigerian business' managing director Shane Harris on 28 May. "[The] president has given a clear directive to [NNPC's chief executive Mele Kyari] and I to resolve the issue of divestment, and we are doing whatever we can to achieve that", junior minister Heineken Lokpobiri said at the meeting. By Adebiyi Olusolape Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

E3 seeks IAEA action against Iranian nuclear activity


30/05/24
News
30/05/24

E3 seeks IAEA action against Iranian nuclear activity

Dubai, 30 May (Argus) — The E3 group — a diplomatic coalition comprising France, the UK and Germany — has prepared a draft resolution against Iran for the UN's nuclear watchdog the IAEA to consider at its board of governors meeting next week. The draft focuses on a probe into two previously undeclared nuclear sites in Iran and suggests the possibility that IAEA chief Rafael Grossi might provide a more "comprehensive report" on Tehran's nuclear activities than his regular quarterly ones. But it stops short of asking the IAEA to refer Iran to the UN Security Council for non-compliance, a diplomatic source with knowledge of the matter told Argus . "The E3 has prepared a draft resolution and circulated it, despite opposition by the US," the source said. "They have also begun negotiations with other members of the board of governors to ensure the largest number of votes… which will give the adopted resolution weight." The draft builds on three previous resolutions against Iran "but will stop short of a very important step — referring the issue to the UN Security Council as a situation of non-compliance, which would require an intervention," the source said. Since June 2020, the IAEA's board of governors has adopted three resolutions against Iran in response to insufficient co-operation on outstanding issues relating to its legal obligations under its Non-Proliferation Treaty (NPT) Safeguards Agreement. The board of governors will convene on 3 June for a week-long meeting, where "the draft resolution is surely going for a vote," the source said, an indication that unanimity among the 35 board members is unlikely. The US is keen to manage tensions with Tehran at a highly sensitive time for the country following the death of its president and foreign minister in a helicopter crash earlier this month. An editorial published by Iran's state news agency Irna on 29 May suggests Washington's concerns may not be unfounded. "As per previous experience, if a resolution is issued against Iran, Tehran will react to it and take countermeasures," the editorial said. Iran responded to two previous IAEA resolutions in June and November 2022 by removing more than 20 IAEA surveillance cameras at its nuclear facilities, and starting the production of 60pc enriched uranium at its Fordow nuclear site. "Based on history, issuing this resolution will be more detrimental to those issuing it than to Iran," Irna said. Building blocks "What is happening right now is the process of accumulation of resolutions, so that when the day comes and the IAEA makes a referral to the UN Security Council, there will be enough resolutions to make a case for action at the security council level," the source noted. Concerns among western officials over Iran's nuclear activity have been mounting since Tehran began breaching restrictions in 2019 in response to former US president Donald Trump's decision to pull Washington out of a 2015 nuclear deal between Iran and a group of world powers. Iran is enriching uranium to up to 60pc purity, according to the IAEA. Near 90pc is considered to be weapons grade. By Bachar Halabi and Nader Itayim 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