Citgo drops Aruba refinery project, island balks

Spanish Market: Crude oil, Oil products
13/01/20

Citgo, the US refiner that Venezuela's political opposition nominally wrested from the Opec country's national oil company PdV in 2019, is abandoning a refinery project in Aruba, sparking fury on the Dutch-controlled island.

In a 27 December letter obtained by Argus, Citgo Aruba Refining (CAR) told workers that US sanctions on PdV imposed in January 2019 "have impacted not only the CAR refurbishment/upgrader project but also resulted in severe financial hardship restricting the ability to continue support of day-to-day operations." As a result, the company will cease operations and terminate its working agreements as of 30 January 2020, the letter states.

Aruba, a tiny island that once formed part of PdV's strategic logistical network in the Dutch Caribbean, is crying foul.

CAR, a subsidiary of Delaware-based Citgo Aruba Holding (CAH) and an indirect subsidiary of Delaware-based PdV Holding (PDVH), has missed lease payments on the refinery and associated oil terminal since March 2019, taxes have not been paid since 2017, refinery maintenance has been neglected, and now the company is shirking its labor obligations, a senior official close to the Aruban government tells Argus. "This is a horrible abuse," the official said.

None of some 70 local workers affiliated with two unions have signed the proposed severance package, union leaders say. The Aruba Labor Federation (FTA) is reaching out to Citgo chairman Luisa Palacios today to insist on payment of labor debts and sustained employment at the terminal, which it says continues to operate. The independent oil workers' union, IOWA, plans to take Citgo Aruba to court under Dutch jurisdiction.

The terminal, where CAR imports fuel for the minuscule local market, is of particular local concern if the company is allowed to leave Aruba at the end of this month.

The Aruban government has tried since last year to repossess the refinery and terminal under a proposed temporary suspension agreement between Aruba-owned local refinery owner RDA and CAR. But the two sides failed to strike a deal, and CAR has impeded RDA from accessing the facilities. Citgo has not responded to a request for comment. CAR's top executive Joe Crawford could not be reached.

The government says it has not been formally apprised of CAR's decision to withdraw, but it is demanding that the company comply with all labor obligations.

The dispute opens a thorny new legal front for Venezuelan opposition leader Juan Guaido, who is recognized by dozens of Western countries, including the Netherlands, as interim Venezuelan president in place of Nicolas Maduro. Despite US sanctions that the White House augmented today with targeted penalties on Guaido's National Assembly rival Luis Parra and his allies, the Maduro government has not fallen.

In the heady weeks after the White House recognized Guaido's interim government in January 2019, Citgo's board shifted into opposition hands, giving Guaido's parallel government administrative control over 750,000 b/d of US refining capacity but without direct access to the refiner's revenue.

Under a vaunted US-backed administrative structure meant to underpin a future political transition, Citgo is now governed by an "ad hoc" PdV board in exile headed by veteran PdV executive Luis Pacheco. The main task of the ad hoc PdV board is shielding Citgo, Venezuela's most valuable overseas asset, from myriad creditors, including jilted PdV bondholders and arbitration claimants that are pressing their cases in US courts.

Now the Guaido-appointed board is facing a separate conflict in Aruba, where it reluctantly inherited a project that it would have quietly preferred to leave in Maduro's hands. "It would be nice to have this asset, but it is not one of our priorities," a member of the ad hoc PdV structure tells Argus, blaming scarce resources.

One of the Aruban union leaders laments that Guaido is not helping the workers even though they helped to eject Maduro's CAR managers.

"We got Maduro's people out with the hope that Juan Guaido would help us," the union boss said.

Under a long-term lease signed in 2016, CAR was supposed to refurbish the 235,000 b/d San Nicolas refinery that was previously owned and operated by US refiner Valero. The ambitious $600mn-$700mn project would have included a 110km subsea natural gas pipeline from Venezuela's Tiguadare gas treatment facility to run the complex that includes its two cokers. Under that agreement, around 209,000 b/d of diluted crude oil (DCO) from Venezuela's Orinoco heavy oil belt would have been upgraded into 125,000 b/d of 22.5°API synthetic crude with 1.2pc-1.5pc sulfur. The stripped-out naphtha would have been recycled back to Venezuela, with the sulfur and coke sold.

By Patricia Garip

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20/03/25

Nigeria's Trans-Niger oil pipeline restarts after fire

Lagos, 20 March (Argus) — Nigeria has restarted pumping crude through the 180,000 b/d Trans-Niger Pipeline (TNP) to the Bonny export terminal after an apparent attack led to a fire earlier this week, halting flows and prompting President Bola Tinubu to declare a state of emergency in Rivers State . The Renaissance Africa consortium — which only last week took over operatorship of the TNP and the Bonny terminal from Shell — said pipeline flows were restored on 19 March "following integrity inspection, testing and activation of a second pipeline within the network". The last 20km stretch of the 60km TNP, between the Cawthorne Channel and the Bonny terminal, has separate 30-inch and 24-inch lines. Renaissance Africa did not say which of the two is currently active. The fire on the pipeline caused a brief halt to operations at the Bonny terminal but loadings have now resumed. A source at state-owned oil firm NNPC told Argus that the Bryanston tanker started loading at the terminal at 23:54 local time on 19 March. Market participants said loading operations at the export terminal were behind schedule by up to two weeks anyway. Before the pipeline fire, the next scheduled operation at the terminal had been to pump 475,000 bl of Bonny Light crude to NNPC's 210,000 b/d Port Harcourt refinery. NNPC said it had to contain a flare incident at the refinery on 19 March. The company described it as "a minor incident" and said the refinery remains operational and "continues to produce on-spec refined petroleum products". The TNP has been the target of repeated oil theft, vandalism and sabotage in the past. As part of the state of emergency in Rivers State, President Tinubu appointed a former chief of the navy as the state's sole administrator for the next six months, but this is subject to the approval of the national legislature, which is expected later today. A Renaissance Africa source said its drilling operations in Rivers State have continued uninterrupted, while an energy lawyer based in the state's capital Port Harcourt told Argus that government and private business in the city have continued as normal. It is too early to say if and to what extent the pipeline incident has impacted Nigeria's crude output. Production of the Bonny Light crude grade fell by 14pc on the month to 210,000 b/d in February, according to upstream regulator NUPRC. Renaissance Africa said a TNP joint investigation visit, led by NUPRC, is scheduled for today. By Adebiyi Olusolape Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

TotalEnergies delays, cuts size of Grandpuits HVO

20/03/25

TotalEnergies delays, cuts size of Grandpuits HVO

Barcelona, 20 March (Argus) — TotalEnergies is delaying the start up of its Grandpuits hydrotreated vegetable oil (HVO) plant, and is planning to reduce the plant's proposed capacity. TotalEnergies confirmed the planned 400,000 t/yr HVO and HVO jet fuel (SAF) plant, near Paris, will not start in 2025 as previously outlined. Instead, a first phase of 210,000t of SAF output is slated to begin operations "early in 2026." TotalEnergies said there will then be a second phase of 75,000t, which will start at an unspecified point in 2027, giving 285,000 t/yr. If all production is SAF this would be equivalent to around 6,155 b/d. The CGT union said its members at Grandpuits downed tools for 24 hours yesterday, 19 March, as a result of the company's announcement. Workers say they have been promised a meeting with management in mid-April, and there does not appear to be industrial action at the site today. TotalEnergies halted crude distillation at the 93,000 b/d Grandpuits four years ago . The transformation includes a 10,000 t/yr plastics recycling unit. It said 1,200 workers are on site to undertake the conversion and this will result in 250 full time posts on completion. This is consistent with previous plans . The delay and reduction in size at Grandpuits does appear to confound targets for TotalEnergies' HVO and SAF output previously laid out by chief executive Patrick Pouyanne . The company operates a 500,000 t/yr HVO and SAF plant at La Mede, near the port of Fos-Lavera. A Grandpuits worker said management has indicated the company will look to purchase HVO and SAF, in order to honour contractual obligations. By Adam Porter Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US imports of Canadian crude at 2-year low: Update

19/03/25

US imports of Canadian crude at 2-year low: Update

Adds preliminary import data for Canada, Mexico. Calgary, 19 March (Argus) — Imports of Canadian crude into the US fell to a two-year low last week with tariffs giving shippers pause, according to Energy Information Administration (EIA) data reported today. Canada is by far the largest source of foreign crude for the US but flows fell to 3.1mn b/d in the week ended 14 March, according to preliminary estimates. This is down by 541,000 b/d from the week before and the lowest since the week ended 24 March 2023, when 3mn b/d was imported. While weekly data can be volatile, the volume of crude from Canada has trended lower in February and the first half of March with shippers likely sensitive to the ever-changing US policy on imports. A 25pc tariff, later reduced to 10pc, on Canadian energy was threatened to start in early February before being delayed by 30 days. It then went into effect from 4-7 March before being lifted again for goods covered under the US-Mexico-Canada (USMCA) free trade agreement. US president Donald Trump is threatening more tariffs will be imposed on 2 April. South Bow, the owner of the 622,000 b/d Keystone pipeline connecting Alberta to the US midcontinent and beyond said just the threat of tariffs prompted uncommitted shippers to dial back exports to the US. Crude imports from Mexico, who have also been targeted by Trump tariffs, were also down on the week at 195,000 b/d. This is lower by 118,000 b/d and is the fifth-lowest on record, according to EIA data going back to 2010. Overall crude imports to the US were only down by 85,000 b/d to 5.4mn b/d on higher deliveries from Colombia, Nigeria and Venezuela, while crude exports rose last week by 1.4mn b/d to 4.6mn b/d. As a result, net imports fell by 1.4mn b/d to 741,000 b/d, the third-lowest level on record in data going back to 2001. Crude stocks rise by 1.7mn bl US crude inventories rose last week as a gain in the Gulf coast region outweighed draws elsewhere. US crude inventories rose to 437mn bl in the week ended 14 March, up from 435.2mn bl a week earlier. This is the highest level since 436.5mn bl in the week ended 12 July 2024. Compared with a year earlier, inventories last week are still down by 8.1mn bl. Stockpiles in the US Gulf coast region rose to 252.3mn bl from 248.8mn bl a week earlier and the highest since June 2024. Inventories at the Cushing storage hub in Oklahoma fell by 1mn bl to 23.5mn bl and are down by 8mn bl from a year earlier. Inventories in the greater US midcontinent region, including Cushing, fell on the week by 2.3mn bl to 105.5mn bl. Crude inventories at the US Strategic Petroleum Reserve (SPR) came in at 395.9mn bl for a weekly gain of 275,000 bl. SPR stocks are not included in the overall EIA commercial crude inventory figures. US crude production fell by 2,000 b/d on the week to 13.57mn b/d. By Brett Holmes US weekly crude stocks/movements Stocks mn bl 14-Mar 7-Mar ±% Year ago ±% Crude oil (excluding SPR) 437.0 435.2 0.4% 445.0 -1.8% - Cushing crude 23.5 24.5 -4.1% 31.4 -25.4% Imports/exports '000 b/d Crude imports 5,385 5,470 -1.6% 6,278 -14.2% Crude exports 4,644 3,290 41.2% 4,881 -4.9% Refinery usage Refinery inputs '000 b/d 15,949 15,880 0.4% 16,102 -1.0% Refinery utilisation % 86.9 86.5 0.5% 87.8 -1.0% Production mn b/d 13.6 13.6 0.0% 13.1 3.8% — US Energy Information Administration Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Turkish lira at all-time low against dollar

19/03/25

Turkish lira at all-time low against dollar

London, 19 March (Argus) — Turkey's lira currency fell to record lows against the US dollar today, after the arrest of Istanbul's mayor provoked concern about instability. The depreciation could cause imports of dollar-denominated commodities to become more expensive, although reaction was mixed across markets. The lira went as low at 40/$1 in early trading, from below 37/$1 on Tuesday 18 March, before easing to around 38/$1 later in the day. The lira has been slowly depreciating against the dollar for many years, but the sharp fall today came after Ekrem Imamoglu, one of President Recep Tayyip Erdogan's main political rivals, was held on suspicion of corruption and aiding a terrorist organisation. Turkey is a significant importer of natural gas, crude and LPG, as well as coal and petcoke, although demand for many commodities will be muted currently because of the Islamic fasting month of Ramadan. Early indications from the coal and petcoke markets were that all import trades had halted as the lira hit the record low. In polymers markets the focus is on whether demand recovers after Ramadan ends on 30 March. But a trading source in Turkey said the fall is not enough for "massive changes" to imports of oil products. The OECD forecasts headline inflation in Turkey at 31.4pc this year, the highest among its members, easing to 17.3pc in 2026. The IMF has forecast Turkey's economy will grow by 2.6pc this year, after an expansion of 2.7pc in 2024. By Ben Winkley, Aydin Calik, Joseph Clarke, Amaar Khan and Dila Odluyurt Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

English and Welsh roads hit by lack of spending: Survey

19/03/25

English and Welsh roads hit by lack of spending: Survey

London, 19 March (Argus) — More than half of the local road network in England and Wales has less than 15 years of structural life left because of insufficient allocation of government funding to local authorities, according to the latest Annual Local Authority Road Maintenance (ALARM) survey. The survey, compiled annually by UK industry body Asphalt Industry Association (AIA), found that 52pc, or around 106,000 miles, of the English and Welsh road network managed by local authorities had just 15 years life remaining, and that nearly a third of these roads — around 34,600 miles — may only have up to five years life left. The survey found that in the next 12 months, 24,400 miles, or 12pc, of the network is likely to need some form of maintenance and that just 1.5pc of the local road network was resurfaced over the last year. Although there has been over £20bn ($26bn) spent on carriageway maintenance in England and Wales over the last decade, "due to the short-term nature of the allocation of funding, it has resulted in no quantifiable uplift to the condition and resilience of the network," AIA Chair David Giles said. He added there needs to be a complete change in mindset away from short-term to longer term funding commitments, and he asked the UK government to set a minimum five-year funding horizon and substantially increase investments for local roads maintenance work. UK bitumen consumption has been steadily falling in recent years, with another 10.5 decline registered in 2024, hitting its lowest levels since 2016, according to UK government's department for energy security and net zero (DESNZ) data. The consumption drop coincided with a 20.3pc jump to 449,000t in UK production of the heavy oil product used mainly in road paving as well as general construction, combining to sharply reduce the country's bitumen import requirements. The ALARM survey also found that there had been no improvements in as much as 94pc of the England and Wales local network over the last year. To maintain their network, the survey showed that in England and Wales, local authorities would have needed an extra £7.4m each in 2024 and £16.81bn in total, as a one-off cash injection, to bring their networks up to their "ideal" conditions. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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