US House passes waterways bill
The US House of Representatives overwhelmingly approved a bill on Monday authorizing the US Army Corps of Engineers (Corps) to tackle a dozen port, inland waterway and other water infrastructure projects.
The Republican-led House voted 359-13 to pass the Waterways Resources Development Act (WRDA), which authorizes the Corps to proceed with plans to upgrade the Seagirt Loop Channel near Baltimore Harbor in Maryland.
The bill also will enable the Corps to move forward with 160 feasibility studies, including a $314mn resiliency study of the Gulf Intracoastal Waterway, which connects ports along the Gulf of Mexico from St Marks, Florida, to Brownsville, Texas.
Water project authorization bills typically are passed every two years and generally garner strong bipartisan support because they affect numerous congressional districts.
The Senate Environment and Public Works Committee unanimously passed its own version of the bill on 22 May. That bill does not include an adjustment to the cost-sharing structure for lock and dam construction and other rehabilitation projects.
The Senate's version is expected to reach the floor before 2 August, before lawmakers break for their August recess. The Senate is not scheduled to reconvene until 9 September. If the Senate does not pass an identical version of the bill, lawmakers will have to meet in a conference committee to work out the differences.
WRDA is "our legislative commitment to investing in and protecting our communities from flooding and droughts, restoring our environment and ecosystems and keeping our nation's competitiveness by supporting out ports and harbors", representative Grace Napolitano (D-California) said.
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Indonesia to lift sulphur imports on EV battery demand
Indonesia to lift sulphur imports on EV battery demand
Singapore, 9 September (Argus) — Indonesia expects to boost its sulphur imports in the second half of the year because of increased high-pressure acid-leaching (HPAL) operations to support the growing demand for electric vehicle (EV) batteries. Sulphur is used in sulphur burners to produce sulphuric acid, which is used to separate nickel and cobalt from ore in the HPAL process to produce mixed hydroxide precipitate (MHP). MHP is the main feedstock to produce nickel sulphate and nickel cathode, which are the feedstocks for battery, special steel and nickel-based alloy production. Indonesia imported 41pc more sulphur in January-July this year, totalling 1.91mn t, the latest GTT data show. Deliveries from the UAE and Canada more than doubled from a year ago, reaching 478,100t and 258,300t respectively. Imports from Saudi Arabia more than tripled on the year to 609,300t. Sulphuric acid imports over the same period fell by 14pc on the year to 641,700t, after several buyers started new sulphur burners and switched to buying sulphur. Some importers also switched to buying lower priced domestic product following a rise in import offers because of supply constraints in east Asia. Sulphuric acid deliveries from China and the Philippines fell by 56pc and 47pc on the year to 175,700t and 58,800t respectively. Sulphur demand rose this year following the expansion of sulphur burning operations at Obi Island and Sulawesi. Chinese nickel producer Ningbo Lygend's Indonesian subsidiary Halmahera Persada Lygend reached full capacity at its ONC project in north Maluku province on 2 September, just two months after starting operations. This latest expansion brings Lygend's total nickel capacity by HPAL to 120,000t/yr, compared with an estimated 55,000t/yr a year ago. Chinese producer Green Eco-Manufacture's (GEM) QMB HPAL project is also expected to increase its sulphur demand by around 570,000t/yr by the end of 2024 with the start-up of two sulphur burners in the Indonesia Morowali Industrial Park (IMIP). By Deon Ngee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Methanex to acquire OCI’s methanol business for $2bn
Methanex to acquire OCI’s methanol business for $2bn
Houston, 9 September (Argus) — Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn. As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas. Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction. The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands. The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases. The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials. "We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said. This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector. "From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said. The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions. The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Opec+ members delay output increases to December
Opec+ members delay output increases to December
Dubai, 6 September (Argus) — Opec+ members have opted to delay their plan to start increasing output by two months, against the backdrop of a sharp fall in prices and growing concerns about the oil demand outlook. Eight members of the group — Saudi Arabia, Russia, Iraq, the UAE, Kuwait, Kazakhstan, Algeria and Oman — are now scheduled to start unwinding 2.2mn b/d of "voluntary" crude production cuts from December, instead of October, over a 12-month period, the Opec secretariat said on 5 September. The plan had carried a proviso that the unwinding was subject to "market conditions". And the return of this supply is still not a foregone conclusion. The eight members retain the "flexibility to pause or reverse the adjustments as necessary", the secretariat says. If they go ahead with the updated plan, their collective output targets will rise by around 180,000 b/d in December. The delay to the output increase came as Atlantic basin benchmark North Sea Dated fell close to $75/bl on 5 September, its lowest since December, on concerns over oil demand in China and the US. Beijing imported 1.3mn b/d less crude in July than June, taking its monthly tally of receipts down to 10mn b/d, the lowest in nearly two years. The oil price drop has not taken place in isolation, JP Morgan says. "Alongside commodities, US 10-year treasury yields have tumbled (-70bp) and the US dollar index came down by almost 2pc, signalling a shift in the assessment of macroeconomic risk in the US and globally." The Opec+ delay means that any unwinding of its cuts will not come until after the 5 November US elections. But with gasoline prices there not seen at concerning levels and edging down, oil prices are not viewed as much of an election issue. The decision could help establish a floor under prices, which have fallen despite an oil blockade in Libya that has driven the country's production down to around 300,000 b/d, from almost 1mn b/d. Opec+ may also have sought to add further support to prices by emphasising assurance by overproducers Iraq, Kazakhstan and Russia on "planned compensation schedules". Promised belt tightening from the three would effectively wipe out most barrels coming back to the market until October 2025 — as long as they deliver. For now, the eight members have chosen to buy time and gain more clarity on how the markets develop in the fourth quarter, while also seeking to tighten the noose on compliance. Come early November, those members will have to determine if the market can handle the incremental increase — if not, Opec+ might be up for some hard decisions in December. Compliance and compensation Compliance by some serial overproducers improved in August, Argus estimates. Russia, which has tended to exceed its targets in recent months, saw its output fall by 70,000 b/d to 8.98mn b/d, bang on its formal output target. And Kazakhstan finally started to deliver on its pledge to start compensating for exceeding its targets, with its output in August coming in 40,000 b/d below its effective target under its compensation plan. The biggest overproducer was usual suspect Iraq, which was 200,000 b/d above its formal target and 290,000 b/d over its effective target under its latest plan to compensate for overproducing. Overall production by Opec+ members subject to cuts was barely changed, easing by 10,000 b/d in August, as falls from Russia and Kazakhstan were offset by increases from Nigeria and the UAE. This drove the alliance's output down to 33.82mn b/d, around 30,000 b/d below its collective target. But the forced outages in Libya drove the group's overall output down by a hefty 300,000 b/d. Libya, like Iran and Venezuela, is exempt from production targets. Opec+ crude production mn b/d Aug Jul* Target† ± target Opec 9 21.54 21.45 21.23 +0.31 Non-Opec 9 12.28 12.38 12.62 -0.34 Total 33.82 33.83 33.85 -0.03 *revised †includes additional cuts where applicable Opec wellhead production mn b/d Aug Jul Target† ± target Saudi Arabia 8.96 9.00 8.98 -0.02 Iraq 4.20 4.25 4.00 +0.20 Kuwait 2.40 2.38 2.41 -0.01 UAE 2.98 2.94 2.91 +0.07 Algeria 0.91 0.91 0.91 0.00 Nigeria 1.54 1.46 1.50 +0.04 Congo (Brazzaville) 0.26 0.24 0.28 -0.02 Gabon 0.23 0.21 0.17 +0.06 Equatorial Guinea 0.06 0.06 0.07 -0.01 Opec 9 21.54 21.45 21.23 +0.31 Iran 3.33 3.35 na na Libya 0.92 1.20 na na Venezuela 0.88 0.88 na na Total Opec 12^ 26.67 26.88 na na †includes additional cuts where applicable ^Iran, Libya and Venezuela are exempt from production targets Non-Opec crude production mn b/d Aug Jul* Target† ± target Russia 8.98 9.05 8.98 +0.00 Oman 0.76 0.76 0.76 +0.00 Azerbaijan 0.49 0.48 0.55 -0.06 Kazakhstan 1.37 1.41 1.47 -0.10 Malaysia 0.33 0.34 0.40 -0.07 Bahrain 0.18 0.18 0.20 -0.02 Brunei 0.09 0.09 0.08 0.01 Sudan 0.02 0.02 0.06 -0.04 South Sudan 0.06 0.05 0.12 -0.06 Total non-Opec 12.28 12.38 12.62 -0.34 *revised †includes additional cuts where applicable Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Plaza Marine alleges Ankora used company secrets
Plaza Marine alleges Ankora used company secrets
New York, 6 September (Argus) — New Jersey-based marine fuel supplier Plaza Marine is suing another supplier, Ankora Fuels, alleging that two former Plaza Marine employees used company trade secrets to benefit a rival company and to compete in the same market. Plaza Marine alleges that the two ex-employees, John and Zachary Barbarise, used its trade secrets, confidential information, customer, and supplier relationships to conduct business that is virtually identical to Plaza Marine, according to the suit filed last month in US District Court for the District of New Jersey. John Barbarise was vice president of sales and trading at Plaza Marine until May 2023 and Zachary Barbarise was an operations manager until July 2024. Both individuals are listed as defendants in the suit in addition to Ankora Fuels. According to the lawsuit, John and Zachary's positions at Plaza Marine gave them access to proprietary information about Plaza Marine's business including contracts with its customers, supplier lists and long-term planning like price strategies for its customers. Plaza Marine alleges that John and Zachary used this information to attempt to "clone" Plaza Marine including chartering a vessel that is a long-term vendor of the company and creating a pricing methodology that is like Plaza Marine. This has created confusion in the marine fuel market, according to Plaza Marine. "By creating a competing company engaged in virtually the same activities as Plaza Marine, it is inevitable that John and Zachary will necessarily use and disclose Plaza Marine's trade secrets for their own personal gain and to create an unfair competitive advantage for Ankora," the company said in the suit. According to the lawsuit, prior to resigning from Plaza Marine, Zachary allegedly contacted John on multiple occasions and accessed files related to Plaza Marine's customers, including once after an internal meeting that discussed confidential information related to its customers and suppliers. Zachary also allegedly created Google document files on a personal device and copied and pasted Plaza Marine's trade secrets into that file prior to departing from the company. Plaza Marine alleges that Zachary was passing along this confidential information to John for use at Ankora. Ankora said the allegations are "completely baseless" and that John and Zachary have never taken any information from Plaza Marine. The company said that Zachary has never worked for Ankora and the Google sheets Plaza Marine allegedly found in Zachary's computer were files "for a fantasy football draft and an ultimate fighting championship contest." "The simple truth is Plaza Marine does not want to face competition from a new player in its space. Plaza Marine wants to continue to mistreat customers and other business partners by blocking Ankora Fuels' entry into the market. That's why Plaza Marine has filed this baseless lawsuit. Plain and simple. We are confident that our customers will see the same, and that they will realize – if they haven't already – that Plaza Marine is not a good partner for their businesses," Ankora said. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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