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Texas oil, gas drilling permits slide by 33pc in March

  • Market: Crude oil, LPG, Natural gas, Pipe and tube
  • 08/04/24

Texas drilling permits for oil and natural gas fell in March by 33pc from a year earlier on declines across all major producing regions.

There were 669 permits issued in March for drilling oil, drilling gas, or drilling for both oil and gas across the state, according to the Texas Railroad Commission (RRC), down from 999 in the same month last year. Permits ticked higher from the 659 recorded in February.

The year-on-year drop was led by the Midland region, or District 8, where permits fell in March to 328, down by 133 permits from a year earlier, and lower by five compared to February.

Also down from a year earlier were permits issued in the San Angelo region, or District 7C, to the immediate southeast of Midland. The regulator issued 60 permits there in March, lower by 39 from March 2023 but up from 42 permits in February.

The westernmost San Antonio region, or District 1, saw permits slide to 79 in March from 166 a year earlier. This was also down from 95 in February.

WTI crude prices at Cushing, Oklahoma, averaged $80.41/bl in March, higher by $7.03 from the same month last year, while average spot natural gas prices at Henry Hub fell by 55pc in the same period to $2.30/mmBtu.


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19/02/25

India’s AMNS seek five-year term LNG deal from 2026

India’s AMNS seek five-year term LNG deal from 2026

Mumbai, 19 February (Argus) — Indian steel manufacturer ArcelorMittal Nippon Steel (AMNS) is seeking a five-year term LNG deal for six cargoes a year starting in 2026 for its direct reduced iron (DRI) plant in the western Gujarat state of Hazira, sources close to the matter have told Argus . AMNS seeks to sign the deal with prices linked to the US Henry Hub or Brent on a delivered basis to India's west coast either at Petronet's 17.5mn t/yr Dahej terminal or Shell's 5mn t/yr Hazira terminal, the source said. The tender's final stage is expected to close by 27 February. The deal may equate to 1.8mn t of LNG supply over the period to 2030, assuming a 60,000t LNG cargo size. The Hazira plant has crude steel production capacity of 8.8mn t/yr, according to ArcelorMittal's September 2024 report. As much as 65pc of the capacity is based on DRI. The firm is on track to expand its low-cost steel-making capacity to 15mn t by 2026, the report says. This supply pact also underscores a trend in the global steel industry to use cleaner energy sources to produce green steel. The firm imports up to 75pc of its 1.72mn t in natural gas requirements on an annualised basis, a company official told Argus last year. The steelmaker had last signed a 10-year deal to buy LNG from Shell , with deliveries to start from 2027, at a 11.5 percentage of Brent crude prices that still remains one of the lowest-heard slopes for an Indian term LNG supply contract. And AMNS has a deal with TotalEnergies for 500,000 t/yr that is scheduled to expire in 2026 . The firm may consider extending it next year, another source said. India's demand for LNG term contracts continues to grow as several gas majors signed LNG contracts during the India Energy Week event. India's state-run Bharat Petroleum has signed a five-year LNG agreement with UAE's state-owned Adnoc at 115pc of Henry Hub price plus a constant of $5.66, similar to the Gail five-year term LNG deal signed in December, sources told Argus . State-owned refiner IOC signed a 14-year sales and purchase agreement for up to 1.2mn t/yr of LNG, valued at $7bn-9bn with Adnoc Gas, during the event. The deliveries are set to begin in 2026, and the cargoes will be sourced from the UAE's 6mn t/yr Das Island liquefaction facility. The deal was signed at 12.5pc of Brent crude prices, sources told Argus . And state-owned Gujarat State Petroleum (GSPC) during the event signed a 400,000 t/yr of LNG deal with TotalEnergies for 10 years to begin from 2026. Under this deal, TotalEnergies will deliver up to six cargoes a year to GSPC. The deal was signed at 119pc of Henry Hub price plus a constant of $4.4, sources told Argus . By Rituparna Ghosh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU draft plan seeks to cut energy costs


19/02/25
News
19/02/25

EU draft plan seeks to cut energy costs

Brussels, 19 February (Argus) — The European Commission has set out plans to tackle the cost of energy in the EU, warning in a draft document that Europe risks de-industrialisation because of a growing energy price gap compared to global competitors. High energy prices are undermining "the EU's global standing and international competitiveness", the commission said, in a draft action plan for affordable energy, seen by Argus . The plan is expected to be released next week, alongside a clean industrial deal and other strategy documents. Much of the strategy relies on non-binding recommendations rather than legislation, particularly in energy taxation. Officials cite EU reliance on imported fossil fuels as a main driver of price volatility. And they also highlight network costs and taxation as key factors. For taxation, the commission pledges — non-binding — recommendations that will advise EU states on how to "effectively" lower electricity taxation levels all the way down to "zero" for energy-intensive industries and households. Electricity should be "less taxed" than other energy sources on the bloc's road to decarbonisation, the commission said. It wants to strip non-energy cost components from energy bills. Officials also eye revival of the long-stalled effort to revise the EU's 2003 energy taxation directive. That requires unanimous approval from member states. The commission pledges, for this year, an energy union task force that pushes for a "genuine" energy union with a fully integrated EU energy market. Additional initiatives include an electrification action plan, a roadmap for digitalisation, and a heating and cooling strategy. A white paper will look at deeper electricity market integration in early next year. EU officials promise "guidance" to national governments on removing barriers to consumers switching suppliers and changing contracts, on energy efficiency, and on consumers and communities producing and selling renewable energy. More legislative action will come to decouple retail electricity bills from gas prices and ease restrictions on long-term energy contracts for heavy industries. By 2026, the commission promises guidance on combining power purchase agreements (PPAs) with contracts for difference (CfDs). And officials will push for new rules on forward markets and hedging. There are also plans for a tariff methodology for network charges that could become legally binding. Familiar proposals include fast-tracking energy infrastructure permits, boosting system flexibility via storage and demand response. Legislative overhaul of the EU's energy security framework in 2026 aims to better prepare Europe for supply disruptions, cutting price volatility and levels. Specific figures on expected savings from cutting fossil fuel imports are not given in the draft seen by Argus . But the strategy outlines the expected savings from replacing fossil fuel demand in electricity generation with "clean energy" at 50pc. Improving electrification and energy efficiency will save 30pc and enhancing energy system flexibility will save 20pc, according to the draft. The commission is also exploring long-term supply deals and investments in LNG export terminals to curb prices. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK Gulfsands Petroleum eyes return to Syria's upstream


19/02/25
News
19/02/25

UK Gulfsands Petroleum eyes return to Syria's upstream

Dubai, 19 February (Argus) — London-listed Gulfsands Petroleum plans to return to Syria's upstream as soon as sanctions on the country are lifted and "circumstances allow," the company's managing director John Bell said. "Sanctions discussions are occurring not only in the EU, but also in the UK and US," Bell told Argus . "In summary, we view these developments as generally positive. Gulfsands has always intended to return to its operation in Syria when the circumstances allow." Gulfsands holds a 50pc operating stake in two oil fields in Syria's block 26, in the country's northeast near the border with Iraq, an area long controlled by the Kurdish-led Syrian Democratic Forces (SDF). Chinese state-owned Sinochem holds the remaining 50pc. Force majeure was declared in December 2011 with respect to the contract after the introduction of EU sanctions against Syria. The fields were producing 24,000 b/d at the time. Since then, control of the fields has been unclear at times. By 2017 Gulfsands said production was averaging around 15,000-20,000 b/d, although it added that was without its participation. Bell said the company can only return "if the current relevant energy sanctions in the EU, UK and US as revised and hence international companies are permitted to return to their operations, bringing with them vital investment, people, equipment and know-how." In January, the EU's high representative for foreign affairs Kaja Kallas said the bloc would begin easing sanctions against Syria within weeks , starting with economic and energy restrictions. More recently she said the EU would meet on 24 February to discuss the lifting of sanctions on Syria, and told Argus the prospect of this "is looking promising" albeit internal European politics could slow the process. Road to recovery Once a 600,000 b/d-plus producer, Syria's crude output has been on the decline over the past three decades. Just before the start of the civil war in 2011, production had was below 400,000 b/d, and by May 2012 it had fallen to 200,000 b/d, the Syrian government said. Today it is less than 100,000 b/d, with only around 16,000 b/d or so coming from fields in areas under the former Assad government's control. "At the moment, oil production in Syria is largely opaque, illicit, unsafe, destined for the black market and causing enormous environmental damage… [and] production volumes have decreased recently due to these unsustainable practices," Gulfsands' Bell said. Whether Syria can reverse this downward production trend "will depend on the approach taken by the new Syrian government," he said. If they properly leverage existing centralised government institutions and work with returning international energy companies, Bell said he could see crude output returning to not only pre-2011 levels, but even as high as 500,000 b/d "within several years." By Nader Itayim and Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Guyana unfazed by Trump’s ‘drill, baby, drill’ vow


18/02/25
News
18/02/25

Guyana unfazed by Trump’s ‘drill, baby, drill’ vow

Georgetown, 18 February (Argus) — Guyana, one of the fastest-growing crude producers in the world, sees little threat from US President Donald Trump's pledge to flood global markets with cheap supplies. Despite Trump's vow to scrap a slew of regulations he claims are holding back US oil producers, Guyana's vice president Bharrat Jagdeo does not expect there to be a "major supply response." "If the prices come down, as President Trump wants, then it would also make some of the existing operations in the US — particular with (hydraulic fracturing) fracking — it may make them not feasible," Jagdeo said on the first day of the Guyana Energy Conference and Supply Chain Expo in Georgetown, Guyana, on Tuesday. Guyana's low breakeven costs and the quality of its crude will help it to maintain a competitive advantage going forward, he said. The vice president shrugged off concerns over the oil market as concerns grow over waning demand from China, the top importer. He pointed out that ExxonMobil just started the approval process for its seventh and eighth projects in the giant Stabroek block offshore Guyana, where the discovery of oil in 2015 has transformed the economic fortunes of the tiny South American nation. "They (ExxonMobil) study the oil markets, they probably know the oil markets more than any government official," Jagdeo said. "Clearly they see in the future a demand for fossil fuel, and they believe that in Guyana we have a unique opportunity to supply that market." Demand for fossil fuels is likely to remain "relatively high" for the foreseeable future while renewable sources lag behind, he said. Guyana, located on South America's northern coast bordering Venezuela, Suriname, and Brazil, has become a fast-growing non-Opec supplier since oil was first pumped in 2019. Output has accelerated to 650,000 b/d from zero in the space of around five years. And gross output is seen growing further to 1.3mn b/d by the end of the decade as new projects come online. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Cold, refinery issues support ARA railcar prices


18/02/25
News
18/02/25

Cold, refinery issues support ARA railcar prices

The railcar premium has hit its highest this year as the market turned bullish in February, writes Waldemar Jaszczyk London, 18 February (Argus) — Northwest European propane railcar premiums to large cargoes hit a seven-week high by mid-February, owing to declining regional temperatures and unplanned shutdowns at German refineries. The premium of the 45t fca Amsterdam-Rotterdam-Antwerp (ARA) railcar assessment to 20,500t cif ARA large cargo prices hit $225/t on 13 February, the highest this year and up by 20pc since mid-January. The outright price stood at $775/t, down by $5/t since the start of this month, but large cargo values fell by $24.50/t to $550/t. Railcar prices slumped in early 2025 owing to high stocks and weaker than expected demand from central and eastern Europe. But sentiment has turned bullish as inland heating demand has firmed on colder weather and diminishing stocks. Meteorological agencies forecast temperatures in the Netherlands and Germany to be about 2-4°C below seasonal norms on 13-19 February. Inland supply has also tightened since mid-January because of unplanned shutdowns at two major refineries in southern Germany. The 90,000 b/d Neustadt refinery was taken off line following an explosion and then a fire. Soon after, the 310,000 b/d Karlsruhe refinery, the country's largest, shut down one of its three production lines owing to a technical fault, and is expected to remain off line until early March. Some LPG suppliers from the affected refineries have restricted loading this month, with one plant heard to have cut these by 30pc and another by a third, market participants say. This has in turn spurred buying interest from ARA's 65,000t Vopak Terminal in Flushing and 75,000t Antwerp Gas Terminal. Plant repairs are unlikely to bring a supply reprieve given the spring maintenance season is approaching. The 125,000 b/d Vohburg refinery is expected to be taken off line along with several units at Neustadt in early March. Closer to the ARA hub, ExxonMobil's 310,000 b/d Antwerp refinery might shut down for maintenance in the second half of February having already experienced issues earlier this month, market participants say. And the first permanent closure of 2025 will take place in March when Shell closes the 147,000 b/d Wesseling facility in Germany. Refinery availability of LPG has also started to be pressured by high natural gas prices. The benchmark Dutch TTF front-month gas assessment reached a two-year high of $838/t in early February on colder and less windy forecasts. A bullish natural gas market has encouraged upstream North Sea producers to leave as much LPG in the natural gas stream as possible, with large cargo propane averaging a $148/t discount to gas since the start of 2025. Refinery supply was unaffected given railcar prices remained at sizeable premiums earlier this year. But the TTF flipped to a $12/t premium to propane railcars in the first half of February compared with a discount of $75.25/t in January and $144/t in December. Getting by on their own supply Refineries are now burning their LPG in place of gas, market participants say. Almost 75pc of Europe's LPG supply comes from refineries under normal conditions. Refinery consumption of LPG surged to 1.1mn t/yr in Europe in 2022 when natural gas prices last surged, which is 7pc of regional output and compares with a long-term average of just over 250,000 t/yr, Argus Consulting data show. Resales of Poland-bound cargoes have put some downward pressure on ARA railcar prices. Poland continues to struggle with oversupply following overzealous stockbuilding prior to the EU's enforcement of an embargo on imports of Russian LPG and owing to weak demand for re-exports to Ukraine. A blockade of Kazakh cargoes on Poland's eastern border, with 7,500t reportedly stuck at the Malaszewicze crossing, arrived with previously held product. Unable to find buyers, Polish firms have started reselling cargoes bought from northwest Europe. A day does not go by without an offer from eastern Europe, a German LPG distributor says. TTF v railcar LPG $/t TTF v large Cargo LPG $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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