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French union eyes strike over Exxon's petchem closure

  • Market: Crude oil, Oil products, Petrochemicals
  • 12/04/24

ExxonMobil's plan to close its Gravenchon petrochemical plant in Normandy has raised the possibility of more strike action in France's downstream oil sector.

The CGT trade union has called on all ExxonMobil workers in France to down tools and for the "immediate shutdown of installations". The situation is fluid and it is not immediately clear whether workers will vote on strikes today or if ExxonMobil's operations in France will be stopped.

"We are preparing our plan of action. We will be announcing it very soon," a union official told Argus.

ExxonMobil said on 11 April that the Gravenchon plant has made more than €500mn ($540mn) in losses since 2018 and that it cannot afford to continue operating at such a loss. The firm expects the site to fully close, including the steam cracker and related derivatives units, at some point this year with the loss of 677 jobs.

"The configuration of the steam cracker, its small size compared to newer units, high operating costs in Europe and higher energy prices make it uncompetitive," it said.

The announcement coincided with news that a consortium comprising trading firm Trafigura and energy infrastructure company Entara is in talks to buy ExxonMobil's 133,000 b/d Fos refinery on the French Mediterranean coast.

As well as the direct job losses at Gravenchon, the CGT said there would be an additional loss of work for around 3,000 indirect positions and sub-contractors. The local prefecture of Seine Maritime said the decision will have a "very serious impact on employment and the local economy".

The CGT said upgrades costing around €200mn are needed at Gravenchon, which is "around 0.5pc" of ExxonMobil's total profit in 2023.

ExxonMobil said the decision to close the plant will not impact operations at its adjacent 236,000 b/d Port Jerome refinery. "In current market conditions, the refinery will continue to operate and supply France with fuels, lubricants, basestocks and asphalt," the firm said.

ExxonMobil has reduced its exposure to Europe's downstream sector in recent years, selling the 198,000 b/d refinery at Augusta in Italy to Algerian state-owned Sonatrach in 2018 and divesting its stake in the 126,500 b/d Trecate refinery in northern Italy to local refiner API last year.


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08/10/24

Hurricane Milton set for late Wednesday landfall

Hurricane Milton set for late Wednesday landfall

New York, 8 October (Argus) — Hurricane Milton is expected to come ashore on Florida's Gulf coast near Tampa Bay late Wednesday, bringing life-threatening storm surge and destructive winds that have already spurred widespread evacuation orders. US president Joe Biden warned Milton could be one of the worst storms to hit Florida in 100 years, as he urged residents under evacuation orders to act without delay. "It's a matter of life and death," he said today. The storm was located about 520 miles southwest of Tampa at 2pm ET today, with maximum sustained winds of 155mph, according to the National Hurricane Center. Storm surge is expected to range from 10-15 feet along the Florida coast from north of Tampa to Englewood. The fall-out for offshore oil and gas production in the US Gulf of Mexico appears limited given the forecast track takes Milton far south of most platforms. Mexican state oil company Pemex said its ports in the Gulf of Mexico stopped operations over the last 24 hours as Milton passed north of the Yucatan Peninsula, but the company did not report on the status of offshore production. Milton is expected to pick up speed as it turns toward the northeast later today, with the center forecast to move across the eastern Gulf of Mexico and approach the west-central coast of Florida through Wednesday. Landfall is expected on Wednesday night before Milton sweeps across central Florida. "While fluctuations in intensity are expected, Milton is forecast to remain an extremely dangerous hurricane through landfall in Florida," the center said. Florida officials are dispatching previously stockpiled fuel to retail stations throughout the state as hundreds of thousands of residents flee the western coast. Ports and terminals on Florida's Gulf coast from Tampa to Fort Myers Beach closed at 8am ET today as a precaution. Chevron previously evacuated and shut in its Blind Faith oil and gas production platform in the Gulf of Mexico. The 65,000 b/d platform is located around 160 miles southeast of New Orleans. Crude production from Blind Faith feeds into South Louisiana Intermediate crude slate, which is not actively traded in the spot market but is typically priced using Heavy Louisiana Sweet. Shell, BP and ExxonMobil all said there has been no impact to their drilling or production in the Gulf of Mexico, although the companies continue to monitor the hurricane. By Stephen Cunningham Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Buckeye shutting Tampa terminals as storm approaches


08/10/24
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08/10/24

Buckeye shutting Tampa terminals as storm approaches

Houston, 8 October (Argus) — Pipeline company Buckeye Partners is shutting its Tampa, Florida, fuel terminals today as Hurricane Milton approaches the state's west coast. Buckeye's Tampa North and Tampa South terminals have over 1mn bl of gasoline, ultra low sulfur diesel, ultra low sulfur heating oil and ethanol storage capacity with truck, marine and pipeline access. The Buckeye terminals — alongside Citgo and Kinder Morgan terminals in Tampa — are shutting today in anticipation of the storm slated to make landfall late Wednesday, the company said today. Florida governor Ron DeSantis warned earlier today of the likelihood of significant damage to the port of Tampa that will affect fuel supply in the state after Milton passes through. "Buckeye will work to safely restore operations as soon as possible," the company said. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Florida retail gasoline supplies tighten ahead of storm


08/10/24
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08/10/24

Florida retail gasoline supplies tighten ahead of storm

Houston, 8 October (Argus) — Florida officials are dispatching previously stockpiled fuel to retail stations throughout the state as hundreds of thousands of residents flee the western coast ahead of Hurricane Milton. Florida had more than 110,000 USG of gasoline and 268,000 USG of diesel on hand ahead of the storm and another 1.2mn USG of both en route to the state, governor Ron DeSantis (R) said today. The state has been dispatching those reserves to gas stations that have run out of fuel as residents evacuate coastal areas ahead of Milton, which is expected to come ashore late Wednesday near Tampa as a major storm. The Florida Highway Patrol late Monday escorted 27 fuel trucks to fuel stations in the anticipated path of Milton, and the state is working with fuel sellers Racetrac, Wawa, Shell and Walmart to maintain supplies, DeSantis said. Panic buying in southwest Florida led some gas stations to run out of fuel as early as Monday, according to a wholesaler operating in the region. Florida is the third largest US state by both population and gasoline demand, consuming about 600,000 b/d in 2022, according the US Energy Information Administration. The stockpiles and additional supply en route DeSantis outlined would be equal to about about 31,000 bls, or 5pc of daily demand. Despite the need to dispatch the fuel DeSantis insists "there is no fuel shortage … fuel continues to arrive in the state of Florida," but lines at gas stations are long and demand is depleting reserves faster than normal. Florida has no refineries and imports all its gasoline, diesel and jet fuel by truck and ship, meaning it can face significant disruption if ports and roadways are closed by a storm. Florida's fuels infrastructure was quick to recover last year in the aftermath of category 3 Hurricane Idalia, but this year's storm looks set to bring greater damage. Bigger fuel issues ahead for Tampa "We are assuming … that there is going to be significant damage to the port of Tampa," affecting the port's ability to receive fuel shipments after Milton passes through, DeSantis said today. Ports on Florida's Gulf coast from Tampa to Fort Myers Beach closed at 8am ET today ahead of the expected landfall. Kinder Morgan is planning to shut its terminals and fuel racks in Tampa today. Kinder's Tampa refined products terminal has 1.8mn bls of storage and is connected to the Central Florida Pipeline (CFPL) which transports gasoline, diesel, ethanol and jet fuel to Orlando, including to Orlando International Airport. The airport said today that it will cease operations the morning of 9 October. Citgo is also shutting down its Tampa fuels terminal, the company said early today. The terminal imports waterborne ultra low sulfur diesel and gasoline. ExxonMobil said it is closely monitoring the situation and its Ft Lauderdale terminal on the Atlantic coast side of the state and south of the expected hurricane landfall zone is operating as normal. Hillsborough County issued a mandatory evacuation order Monday for coastal residents along Tampa Bay. Much of Pinellas County on the western side of the Tampa Bay is also under a mandatory evacuation order. By Nathan Risser Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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September was second hottest: EU's Copernicus


08/10/24
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08/10/24

September was second hottest: EU's Copernicus

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Kinder Morgan to shut Tampa terminals Tuesday


07/10/24
News
07/10/24

Kinder Morgan to shut Tampa terminals Tuesday

Houston, 7 October (Argus) — Kinder Morgan is planning to shut its terminals and fuel racks in Tampa, Florida, on Tuesday as the region prepares for Hurricane Milton to make landfall Wednesday evening . "We will continue to monitor the storm's path and make any adjustments as needed," Kinder Morgan said in a statement on Monday. Kinder operates the Port Sutton, Tampa Bay Stevedores and Tampaplex terminals in Tampa's Hillsborough Bay and the Port Manatee terminal further south in the Tampa Bay. The terminals handle a wide range of bulk products including fertilizers, scrap metal, petroleum coke and coal according to Kinder Morgan's website. Kinder's Tampa refined products terminal has 1.8mn bls of storage and is connected to the Central Florida Pipeline (CFPL) which transports gasoline, diesel, ethanol and jet fuel to Orlando, including to Orlando International Airport. The airport said today that it will cease operations the morning of 9 October in advance of the hurricane. By Nathan Risser Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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