First TMX cargo booked on Aframax to China
The first cargo shipped on the Trans Mountain Expansion (TMX) crude pipeline is scheduled to load on an Aframax in Vancouver, British Columbia, beginning 18 May for June delivery in China, according to sources with knowledge of the transaction.
Suncor provisionally booked the Aframax Dubai Angel for a Vancouver-China voyage at $3.5mn lumpsum, equivalent to $6.39/bl for Access Western Blend, market participants said.
In March, China's state-run Sinochem purchased the first TMX cargo — 550,000 bl of Canadian Access Western Blend — for June delivery.
The shipping fixture would mark the first Vancouver-China crude delivery since May 2023, according to Vortexa, a possible indicator of steady Asia-Pacific demand to come with increased maritime access for Canadian oil producers.
China already receives heavy sour Canadian crude re-exported from the US Gulf coast, with about 110,000 b/d arriving in 2023, Vortexa data show.
The new 590,000 b/d pipeline begins commercial service on 1 May, with three Aframax-capable berths at Vancouver's Westridge Marine Terminal, up from one previously.
An oversupply of Aframax crude tankers on the west coast of the Americas in anticipation of TMX-driven demand pressured Vancouver-loading rates to six-month lows on 19 April, according to Argus data, but market participants expect demand to increase beginning in the second half of May.
Three regulatory approvals remained under assessment by the Canada Energy Regulator (CER) on 30 April. The applications concern piping, valves and other components at two pipeline inspection device traps and the mainline pipe between the two traps. The traps were added for safety assurance when the operator was allowed by CER to use a smaller diameter pipe as part of the Mountain 3 deviation.
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Australia pauses pro-upstream offshore oil, gas reforms
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Perth, 21 May (Argus) — Australia's federal resources minister Madeleine King acknowledges the political situation in the nation's upper house of parliament the Senate prevents any deal to clarify consultation requirements for the nation's offshore oil, gas, carbon capture and storage (CCS) and renewables sectors. The Senate last week passed the Labor party-led federal government's legislation on changes to deductions permitted under the Petroleum Resources Rent Tax (PRRT) and a new fuel efficiency standard for light commercial and passenger vehicles . But the deal struck with the Greens party and two independent senators meant the government withdrew amendments designed to specify which stakeholders must be consulted under law before receiving environmental permits. King blamed the Greens for her government removing the amendments from the agenda. "My disappointment is not for the industry but the community that will remain subject to inadequate and inappropriate consultation requirements for longer," King said on 21 May at the Australian Energy Producers conference in Perth. "The Greens political party and the crossbench independents and others promoted widespread misinformation in relation to the proposal that would ensure the community had the benefit of clarity and certainty in consultation." Environmental lawyers delayed field drilling and pipeline laying for Australian independent Santos' $4.6bn Barossa backfill project from late 2022 until early 2024, citing insufficient consultation with traditional owner groups, in a case ultimately dismissed by the Federal Court of Australia. Changes to offshore laws were promised by the federal government in January with concerns legal tactics could lead to further lawsuits aimed at driving up costs for LNG backfill, offshore wind power projects or CCS. Climate campaigners saw the changes as a vehicle for easing scrutiny on developers and its politicians promised to oppose any changes. But having dealt with the Greens instead of the Liberal-National coalition on legislation for fuel efficiency and the PRRT because of the latter's demands that the approvals process for oil and gas be expedited, Labor is less likely to now receive support for changes to consultation ahead of next year's federal election. The future gas strategy released by the federal government this month said new supplies are urgently needed, as gas-fired power generation will likely replace firming capacity provided by retiring coal-fired power plants. The report also found multiple reasons for Australia's low gas exploration investment, including difficulties with the approvals processes, legal challenges and market interventions that may lead international companies to focus on lower cost and lower risk fields in other jurisdictions. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Coast Guard to assess port infrastructure risks
US Coast Guard to assess port infrastructure risks
Houston, 20 May (Argus) — Federal officials will conduct a study of US port infrastructure safety nearly two months after a massive containership brought down the Francis Scott Key Bridge at the Port of Baltimore. The US Coast Guard (USGC), along with the Ports and Waterways Safety Board of Inquiry, will study 10 US ports to evaluate the risks of increased traffic and large commercial vessels on infrastructure like bridges, railways, pipelines, cargo terminals and power plants. A report on risk mitigation strategies and practices will be issued by the board and finalized by 31 May 2025. The study could help avoid accidents like the one in Baltimore that killed six and curtailed traffic in and out of the harbor since 26 March , effecting markets for metals, biofuels, coal, organic agriculture, petcoke and other products. The containership that struck the bridge was removed from the accident site on Monday, allowing commercial vessel traffic to resume . The port is expected to fully reopen by the end of May. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Containership moved from Baltimore bridge site: Update
Containership moved from Baltimore bridge site: Update
Includes information on resumption of all vessel traffic. New York, 20 May (Argus) — Deep-draft commercial vessels can resume movement in and out of the Port of Baltimore following today's removal of the containership that collided with the Francis Scott Key Bridge in March, according to officials. The 116,851dwt Dali had been pinned under the wreckage of the bridge since 26 March, when it lost power and hit the span, sending it into the water. Earlier this month the sections of bridge still on the ship were removed and on Monday the ship was refloated and relocated. With the Dali relocated all movements by deep-draft vessels that would normally travel to and from the port could resume, according to the federal Unified Command overseeing the response. Remnants of the bridge still need to be removed from the seabed before the commercial channel is restored to its full width. The bridge collapse blocked traffic in and out of the Port of Baltimore, which is a major coal export and automobile import terminal. Several small, shallower channels had been open to allow some vessel traffic, but not the largest ships that normally make call in Baltimore. The US Army Corps of Engineers is seeking to have the main channel, with a depth of 15.24m (50 feet), fully reopened by the end of May. By Gabriel Squitieri Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Containership moved from Baltimore bridge crash site
Containership moved from Baltimore bridge crash site
New York, 20 May (Argus) — The containership that collided with the Francis Scott Key Bridge in Baltimore, Maryland, in March has been moved from the accident scene to a nearby marine terminal. The 116,851dwt Dali had been pinned under the wreckage of the bridge since 26 March, when it lost power and hit the span, sending it into the water. Earlier this month the sections of bridge still on the ship were removed and on Monday the ship was refloated and relocated. The bridge collapse blocked traffic in and out of the Port of Baltimore, which is a major coal export and automobile import terminal. Several small, shallower channels had been open to allow some vessel traffic, but not the largest ships that normally make call in Baltimore. The US Army Corps of Engineers is seeking to have the main channel, with a depth of 15.24m (50 feet), reopened by the end of May. By Gabriel Squitieri Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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