Western Australia halts FIFO workers from NSW

  • Spanish Market: Crude oil, Metals, Natural gas
  • 30/03/20

Western Australia (WA) has stopped all fly-in, fly-out (FIFO) workers to its resources projects from New South Wales (NSW) that has the highest number of coronavirus infections in the country.

The move does not stop FIFO workers travelling from other states to WA, which last week restricted all travel with the exemption of essential services, including the resources sector. It also ordered that FIFO workers must take tests for the coronavirus on arrival.

NSW has 1,918 of Australia's 4,093 confirmed cases of coronavirus, with most of the country's 16 deaths occurring in the state. WA has 311 cases.

The decision had been made by the WA resources sector in the interests of community safety, said the resources industry body the Chamber of Minerals and Energy of Western Australia (CMEWA).

WA's biggest source of FIFO workers come from Queensland, said CMEWA chief executive Paul Everingham. It is unclear what impact the decision could have on Australia's iron ore production, with more than 95pc of all supplies coming from WA.

WA is also the largest producing state for oil and gas output and is host to five LNG projects with a combined output of 48.7mn t/yr.

By Kevin Morrison


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02/05/24

CEE gas operators begin binding capacity offer process

CEE gas operators begin binding capacity offer process

London, 2 May (Argus) — Gas transmission system operators (TSOs) across central and eastern Europe have launched the start of binding incremental capacity processes aimed at facilitating larger gas flows from south to north. Romanian, Bulgarian, Hungarian, Moldovan and Ukrainian operators have published joint documents outlining the necessary conditions for participating in the upcoming annual auctions on 1 July. Bulgarian and Romanian TSOs Bulgartransgaz and Transgaz will offer an additional roughly 123 GWh/d of capacity from Bulgaria to Romania at Negru Voda 1-Kardam on top of existing available capacity of 126-142 GWh/d depending on the year ( see BG-RO table ). In the event of a successful auction and subsequent economic test, the TSOs hope to reach a final investment decision (FID) in the third quarter of this year and commission the upgrades in the third quarter of 2026. Commercial operations could begin in the fourth quarter, aligning with the start of the 2026-27 gas year. This timeline has been moved forward by one year from the original proposals earlier this year . Transgaz, along with Hungary's FGSZ, will offer up to 73 GWh/d of additional capacity from Romania to Hungary at Csanadpalota on top of existing available capacity of 5-71 GWh/d depending on the year ( see RO-HU table ), but maintained its three-tiered approach elaborated in an earlier market consultation . Depending on the level of capacity to which firms commit at the auction, capacity could increase by 9.5 GWh/d, 47.3 GWh/d or 72.5 GWh/d. The smallest project could start commercial operations in the first quarter of 2028, the middle level in the third quarter of 2028, and the highest level in the third quarter of 2029. These timelines are pushed back by roughly one year from the originally-proposed dates in the February consultation. And Transgaz, along with Ukraine's GTSOU, will offer an additional 77 GWh/d of capacity from Romania to Ukraine at Isaccea 1-Orlovka 1 on top of existing available capacity of 97-109 GWh/d depending on the year ( see RO-UA table ). The TSOs aim to reach FID in the third quarter of this year and commission the project in the fourth quarter of 2028. Commercial operations could begin in October 2028. GTSOU and its Moldovan counterpart Vestmoldtransgaz will offer 173 GWh/d towards Moldova from Ukraine at Kaushany starting from the 2027-28 gas year, while simultaneously offering 159 GWh/d of capacity from Moldova towards Ukraine at Grebenyky. By Brendan A'Hearn Available and incremental capacity at Negru Voda/Kardam GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 141 - 141 2025-26 141 - 141 2026-27 142 123 265 2027-28 142 123 265 2028-29 142 123 265 2029-30-2042 126 123 249 — Bulgartransgaz, Transgaz; numbers rounded Available and incremental capacity at Csanadpalota GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 43 - 43 2025-26 46 - 46 2026-27 71 - 71 2027-28 13 - 142 2028-29 13 - 13 2029-30 5 73 78 2030-31 34 73 107 2031-32 34 73 107 2032-33-2039 63 73 136 — FGSZ, Transgaz; numbers rounded Available and incremental capacity at Isaccea/Orlovka GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 109 - 109 2025-26 109 - 109 2026-27 109 - 109 2027-28 109 - 186 2028-29 109 77 186 2029-30-2039 97 77 174 — GTSOU, Transgaz; numbers rounded Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Abu Dhabi’s Adnoc puts crude capacity at 4.85mn b/d


02/05/24
02/05/24

Abu Dhabi’s Adnoc puts crude capacity at 4.85mn b/d

Dubai, 2 May (Argus) — Abu Dhabi's state-owned Adnoc has nudged up its self-reported crude production capacity to 4.85mn b/d, from 4.65mn b/d previously. The UAE state energy giant did not formally announce the increase but updated the figure on its website. It did something similar when its capacity reached 4.65mn b/d in late 2023, up from 4.5mn b/d in the middle of last year. This latest hike takes the company a step closer to its long-term 5mn b/d crude capacity target, which it aims to reach by 2027. Adnoc set the 5mn b/d target back in 2018 when its capacity was 3.5mn b/d. At that time, the company said it was aiming to deliver the increase by 2030, but in November 2022 it brought the timeframe forward by three years, citing the "UAE's robust hydrocarbon reserves". The change in timeline had been expected, with sources telling Argus earlier that year that discussions had been taking place in the upper echelons of Adnoc about significantly accelerating its capacity growth plans . Given the speed at which the company has been delivering capacity gains over the past few years, and how close it is to meeting its target already, it is not inconceivable that Adnoc will reach 5mn b/d ahead of schedule. Put your best foot forward The UAE's rising capacity comes as Opec+ producers engage with independent agencies to update their respective crude output capacities for use in production policy decisions from 2025. At their meeting in June last year, all Opec+ members committed to undergo an external assessment of their sustainable capacities in the first half of 2024 by three independent consultancies, IHS, Wood Mackenzie and Rystad. The updated capacity assessment will help address a key criticism of the Opec+ production restraint agreements in their current format, namely that many of the countries involved have been cutting output from a baseline level of production that they can no longer actually deliver, in most cases due to natural decline. The UAE has been one of a handful of countries in the group that has been raising its capacity over the past few years. This means it should, in theory, benefit from the latest assessment, as a higher accepted capacity will afford it a higher production baseline under any Opec+ agreements struck from 2025 onwards. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Shell's 1Q profit supported by LNG and refining


02/05/24
02/05/24

Shell's 1Q profit supported by LNG and refining

London, 2 May (Argus) — Shell delivered a better-than-expected profit for the first quarter of 2024, helped by a strong performance from its LNG and oil product businesses. The company reported profit of $7.4bn for January-March, up sharply from an impairment-hit $474mn in the previous three months but down from $8.7bn in the first quarter of 2023. Adjusted for inventory valuation effects and one-off items, Shell's profit came in at $7.7bn, 6pc ahead of the preceding three months and above analysts' estimates of $6.3bn-$6.5bn, although it was 20pc lower than the first quarter of 2023 when gas prices were higher. Shell's oil and gas production increased by 3pc on the quarter in January-March and was broadly flat compared with a year earlier at 2.91mn b/d of oil equivalent (boe/d). For the current quarter, Shell expects production in a range of 2.55mn-2.81mn boe/d, reflecting the effect of scheduled maintenance across its portfolio. The company's Integrated Gas segment delivered a profit of $2.76bn in the first quarter, up from $1.73bn in the previous three months and $2.41bn a year earlier. The segment benefited from increased LNG volumes — 7.58mn t compared to 7.06mn t in the previous quarter and 7.19mn t a year earlier — as well as favourable deferred tax movements and lower operating expenses. For the current quarter, Shell expects to produce 6.8mn-7.4mn t of LNG. In the downstream, the company's Chemicals and Products segment swung to a profit of $1.16bn during the quarter from an impairment-driven loss of $1.83bn in the previous three months, supported by a strong contribution from oil trading operations and higher refining margins driven by greater utilisation of its refineries and global supply disruptions. Shell's refinery throughput increased to 1.43mn b/d in the first quarter from 1.32mn b/d in fourth quarter of last year and 1.41mn b/d in January-March 2023. Shell has maintained its quarterly dividend at $0.344/share. It also said it has completed the $3.5bn programme of share repurchases that it announced at its previous set of results and plans to buy back another $3.5bn of its shares before the company's next quarterly results announcement. The company said it expects its capital spending for the year to be within a $22bn-$25bn range. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan's trading firms see metals prices cutting profits


02/05/24
02/05/24

Japan's trading firms see metals prices cutting profits

Tokyo, 2 May (Argus) — Major Japanese trading houses are expecting lower profits from their metals businesses during the April 2024-March 2025 fiscal year, mostly because of lower prices of commoditiessuch as iron ore and coking coal. Japanese trading house Mitsui forecast profits for its metal and natural resource business falling by 14pc on the year to ¥290bn ($1.87bn) during 2024-25, primarily because of lower iron ore prices. Mitsui plans to cut iron ore output by 0.3pc on the year to 60.9mn t at its mining projects where the company owns production rights or a production stake during 2024-25. This includes the joint venture project Robe River in Australia with Australian iron ore producer Rio Tinto. Japanese trading house Sojitz also expects profits from its metal and natural resource business to decline to ¥35bn, down by 20pc on the year, mostly because of a bearish coking coal market. The company said its overall coal business can cut production costs during 2024-25, partly because it plans larger-scale output at the Gregory Crinum coking coal mine in Australia, without disclosing further details. But Sojitz said it cannot generate higher profits because of lower coking coal prices. The trading house expects the average coking coal price to fall to $230/t during 2024-25, according to the company's chief financial officer Makoto Shibuya, down by $57/t from a year earlier. The company reiterated that the price is not necessarily their selling price. Sumitomo expects profits from its natural resource business would remain flat at ¥72bn on the year, mostly as its nickel production in Madagascar recovers from the output cuts in 2023 , with an aim to produce 19,000t of nickel during 2024-25, up by 9.8pc on the year. A rebound in nickel production could offset possible losses from coal and coking coal prices falling to $266/t and $133/t respectively in the ordinary market, down by $21 and $9, according to the trading house. Sumitomo plans to increase coking coal production by 9.1pc to 1.2mn t but reduce coal output by 4.8pc to 4mn t during 2024-25. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Evion-Metachem Indian project starts producing graphite


02/05/24
02/05/24

Evion-Metachem Indian project starts producing graphite

Singapore, 2 May (Argus) — Australian graphite producer Evion's joint venture with Indian producer Metachem Manufacturing has produced and sold 700kg of expandable graphite, with more output planned in the coming months, after missing its timeline last year. Capacity of the expandable graphite plant, located at Kurkumbh near the west Indian city of Pune, will increase to at least 1,800 t/yr over the coming months, said Evion in its latest quarterly activity report. The agreement between the two firms originally envisioned 2,000-2,500 t/yr of production capacity in the first three years, with plans to begin an expansion to double the capacity starting from the second year. Evion previously was expecting first production in October-December 2023. Evion, formerly known as BlackEarth Minerals, back in 2021 signed an offtake deal with Austrian downstream graphite firm Grafitbergbau Kaiserberg for up to 2,500 t/yr of expandable graphite. Graphite concentrate for the plant is expected to come from external parties in the first two years of operations, subsequently switching to products from its Maniry graphite project in Madagascar, said Evion. Madagascar's national office for the environment is carrying out the environmental and social impact assessment for the Maniry project, according to Evion. India in July 2023 identified 30 critical minerals necessary to its green energy transition and energy self-reliance, including graphite. The country's mines ministry, through state trading firm MSTC, in March launched the second round of its auction , involving 18 blocks, for development of critical and strategic minerals in the country. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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