France requisitions depot staff as fuel pumps run dry

  • Spanish Market: Biofuels, Crude oil, LPG, Oil products, Petrochemicals
  • 21/03/23

The French energy ministry has begun issuing requisition orders forcing striking oil workers to release gasoline and diesel stocks to counter a growing fuel shortage at service stations caused by two weeks of industrial action at refineries, ports and storage facilities.

So far the requisition orders are confined to three staff per shift at a storage depot at the Mediterranean port of Fos-Lavera. "The government have started to order requisitions. After this they will probably attack the refineries," a worker at the port said.

Strikes across France's downstream oil sector — part of nationwide protests over government pension reforms — have extended to a 15th day. Blockades on product shipments leaving refineries and depots have left many service stations short of diesel, gasoline and LPG, according to the energy ministry. The prefectures at Var and Bouches-du-Rhone have issued temporary orders to halt purchases of fuels in containers, while the Vaucluse region is limiting fuel purchases to 30 litres for car drivers and 120l for lorries.

The strikes are also hampering crude deliveries to refineries. The country's largest refinery — the 246,900 b/d Gonfreville facility — is "going into a cold stop" today, operator TotalEnergies said. Workers at Gonfreville told Argus yesterday that the final units at the refinery were slated to stop today. Product deliveries from the refinery are still being blocked by striking workers.

TotalEnergies' 219,000 b/d Donges refinery is also shut, having closed before the strikes started because of a fire. The industrial action has prevented repair work from going ahead. Deliveries from Donges are being blocked by workers. A confrontation broke out between dockers and police when a seaborne cargo of diesel arrived at Donges from the Netherlands last night. The vessel remains at the berth. It is not clear if it has unloaded yet.

The 109,000 b/d Feyzin plant at Lyon is now TotalEnergies' only French refinery still operating, despite staff there previously voting to halt operations. But it is "in service at low levels", the firm said, and deliveries from the refinery are halted. Strikes at the company's Carling petrochemicals plant, La Mede hydrotreated vegetable oil plant near Marseille and Flanders logistics depot are continuing.

Elsewhere, ExxonMobil's 133,000 b/d Fos refinery is still running, albeit at very low run rates. Workers there have allowed some product to leave as storage tanks are full. The situation is being complicated by a dockers strike at the Fos-Lavera port, which has been extended by a further three days to the night of 24 March. Around 3.2mn bl of crude is waiting near the port and another 635,000 bl of Saudi Arab Light is due to arrive later today.

ExxonMobil's 236,000 b/d Port Jerome refinery is still operating. Workers had expected it to shut but a shipment of Libyan crude delivered yesterday has allowed the plant to stay open.

Outside the port of Le Havre, which serves the Port Jerome and Gonfreville refineries, four tankers are waiting with a total of around 3.6mn bl of Nigerian and US crude on board.


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03/05/24

Chevron’s oily DJ basin buy boosts gas output

Chevron’s oily DJ basin buy boosts gas output

New York, 3 May (Argus) — Chevron's US natural gas production has surged in recent quarters due to its crude-focused acquisition of Denver-based PDC Energy last August, increasing the oil major's exposure to the US gas market months after that market entered an extended price slump. Chevron's US gas production in the first quarter was 2.7 Bcf/d (76mn m3/d), up by 53pc from the year-earlier quarter and the highest since at least 2021, according to company production data. Chevron's total US output rose by 35pc year-over-year to 1.57 b/d of oil equivalent (boe/d), while US crude output increased by 21pc to 779,000 b/d. The acreage Chevron picked up last year in the DJ basin of northeast Colorado and southeast Wyoming has higher gas-oil ratios than the rest of its US portfolio. Chevron mostly focuses US production in the crude-rich Permian basin of west Texas and southeast New Mexico. Since Chevron closed its acquisition of PDC on 7 August, US gas prices have mostly languished in loss-making territory. Prompt-month Nymex gas settlements at the US benchmark Henry Hub from 7 August 2023 to 2 May 2024 averaged $2.46/mmBtu, down from an average of $4.999/mmBtu in the year-earlier period. In a May 2023 conference call over Chevron's acquisition of PDC, chief executive Mike Wirth expressed optimism for the long-run outlook for natural gas, despite the more immediately dim outlook. "There's going to be stronger global demand for gas growth than there will be for oil over the next decade and beyond as the world looks to decarbonize," Wirth said. Despite lower US gas prices, Chevron has captured $600mn in cost savings from the PDC acquisition between capital and operational expenditures, the company told Argus . Crude prices have also been more resilient. Chevron's profit in the first quarter was $5.5bn, down from $6.6bn in the year-earlier quarter, partly due to lower gas prices. US gas prices have been lower this year as unseasonably warm winter weather and resilient production have created an oversupplied US gas market. A government report Thursday showed US gas inventories up by 35pc from the five-year average. By Julian Hast Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Dutch FincoEnergies supplies B100 biodiesel to HAL


03/05/24
03/05/24

Dutch FincoEnergies supplies B100 biodiesel to HAL

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US job growth nearly halved in April: Update


03/05/24
03/05/24

US job growth nearly halved in April: Update

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US biofuel groups challenge EU SAF regulation


03/05/24
03/05/24

US biofuel groups challenge EU SAF regulation

London, 3 May (Argus) — US biofuel groups Renewable Fuels Association, Growth Energy and US Grains Council and ethanol-to-jet producer LanzaJet have joined European renewable ethanol producers in their challenge to the ReFuelEU aviation regulation. The legal challenge, launched by ePure and Pannonia Bio in February, demands an annulment of the sections that exclude crop-based biofuels from the definition of sustainable aviation fuel (SAF). The regulation allows for SAF produced from biofuels, referring to point 33 in Article 2 of the bloc's recast Renewable Energy Directive (RED III) which includes "liquid fuel for transport produced from biomass". But it excludes biofuels produced from "food and feed crops". The US groups have filed an "application for leave to intervene" before the General Court of the EU, arguing that the regulation would "have a detrimental effect on the US ethanol industry". "The contested provisions give rise to a de facto ban on the supply of crop-based biofuels to the aviation sector in the EU" the associations said. Earlier this year ePure also challenged the bloc's FuelEU maritime regulation, which aims to boost the use of green bunker fuels, for excluding food and feed crop-based fuels from its certification process. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Kazakhstan outlines Opec+ compensation plan


03/05/24
03/05/24

Kazakhstan outlines Opec+ compensation plan

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