Proposed merger of Mexican regulators paused
Mexico's senate majority leader postponed a proposal to merge the energy regulatory commission (CRE) with a government consumer watchdog agency and telecommunications authority, but a separate energy ministry plan could change the landscape in other ways.
Lawmaker Ricardo Monreal paused his proposal after receiving calls to better analyze the bill, which would require modifying the constitution. Monreal is aligned with the Morena party of President Andres Manuel Lopez Obrador, who offered support for the bill because of its cost-savings potential. The changes would save 500mn pesos/yr ($25mn/yr) and streamline operations, Monreal said.
Yet the 2020-2024 development plan from energy ministry (Sener) — while not suggesting that regulatory agencies should be merged — would aim to align CRE and the national hydrocarbons commission (CNH) with the aim of "rescuing" state-owned oil company Pemex and power company CFE.
The plan also recommended that Pemex move into Mexico's retail LPG market with its own brand instead of only selling wholesale to private-sector distributors, and that CFE should boost fuel oil use in power generation.
Strengthening state-owned companies to boost development and provide energy security can also have a multiplier effect on the private sector, Sener said in its report, which should include providing for domestic energy needs.
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Francine shuts in 24pc of US Gulf oil output: Update
Francine shuts in 24pc of US Gulf oil output: Update
Includes production shut-in figures, port status updates and spot crude price information. New York, 10 September (Argus) — US offshore operators shut in 24pc of Gulf of Mexico oil production ahead of tropical storm Francine, which is expected to gain hurricane status later today and hit Louisiana Wednesday. About 412,070 b/d of offshore oil output was off line as of 12:30pm ET due to storm preparations, according to the Bureau of Safety and Environmental Enforcement (BSEE). About 494mn cf/d of natural gas production, or 26pc of the region's output, was also off line. Operators evacuated workers from 130 platforms. The storm was about 380 miles southwest of Morgan City, Louisiana, packing maximum sustained winds of 65mph, according to a 2pm ET advisory from the National Hurricane Center. It is expected to continue to move across the northwestern Gulf of Mexico tonight and make landfall in Louisiana on Wednesday evening. The storm will track through an offshore region that accounts for about 15pc of US crude output and 5pc of US natural gas production. Ports closing ahead of storm Ports along the storm's path are restricting inbound and outbound traffic ahead of the storm, with many planning to close in the next day. Lightering operations were paused off of Galveston, Texas, starting Monday night due to high seas, and the Louisiana Offshore Oil Port export/import facility said it was following its inclement weather plans, which includes shutting down ahead of a storm like Francine. The port of Houston closed to both inbound and outbound vessel traffic at 1pm ET Tuesday due to worsening weather conditions from Francine, a ship agent said. The US Coast Guard's captain of the port expected port condition Zulu, where gale force winds are anticipated within 12 hours and port operations are suspended, to be in place by 7pm ET Tuesday. In Louisiana, terminal operations at the port of New Orleans will be closed Wednesday , with operators expected to resume on Thursday. Operations at the New Orleans Public Belt, which connects major railroads to the port, will continue Tuesday before closing Wednesday and are expected to resume on Thursday. Offshore crude flows curtailed Chevron initiated shut-in procedures for its Anchor and Tahiti platforms, 190 miles south of New Orleans, and began transporting all personnel from the facilities. Production from its other operated platforms in the Gulf of Mexico remained at normal levels. Non-essential staff were also being removed from the Big Foot and Jack/St. Malo platforms, around 225 miles and 280 south of New Orleans, respectively. Crude from Tahiti is transported to the Boxer platform, from where it can move along pipelines that feed into multiple streams — Mars, medium sour grades Poseidon and Southern Green Canyon (SGC) — as well as lighter sour grades Eugene Island and Bonito. Production from the recently-started Anchor platform feeds into the Amberjack pipeline, which carries crude into the Mars stream. Mars has been heard trading at 70-90¢/bl discounts to the US benchmark in Cushing, Oklahoma, on Tuesday, rising over the day from a volume-weighted average discount of 96¢/bl on Monday. Francine's path over Louisiana means it has the potential to weigh more on refinery demand there than on offshore crude production. ExxonMobil said all staff had been transported off the Hoover platform, located about 200 miles south of Houston, and operations shut-in, while Shell said it was shutting in production at its nearby Perdido platform after earlier pausing drilling operations from the facility. Hoover and Perdido both feed into ExxonMobil's Hoover Offshore Oil Pipeline System (HOOPS), that delivers the HOOPS Blend to the Texas Gulf coast. HOOPS Blend is a medium sour crude that is not actively traded in the spot market. Competing Texas-delivered medium sour SGC was discussed at a 70¢/bl discount to the US benchmark today, which is where it traded in the prior session when narrowed its discount by about 35¢/bl from ahead of the weekend. So far, no major problems are expected at BP's offshore facilities in the region. Non-essential personnel have been evacuated from Shell's Enchilada/Salsa and Auger assets, located about 120 miles south of Vermillion Bay, Louisiana. By Stephen Cunningham, Tray Swanson and Amanda Smith Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Port of NOLA to close prior to TS Francine
Port of NOLA to close prior to TS Francine
Houston, 10 September (Argus) — The port of New Orleans (Nola) in Louisiana and terminal operators there are limiting operations today in preparation for a full closure Wednesday as tropical storm Francine passes. Terminal operators are expected to reopen on 12 September after damages are assessed. United Bulk Terminals (UBT) issued a force majeure this morning from the Davant terminal on concerns for employee safety. The company did not disclose a timeline for reopening. UBT specializes in coal and petcoke along with other commodities. Associated Terminals will suspend operations 11-12 September and will assess damages on 13 September. The National Weather Service forecasts Francine to make landfall tomorrow on the Louisiana coast as a hurricane. Commodities including petcoke, coal, agriculture and fertilizer are likely to be affected by the port closure. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Italy's Falconara refinery widens crude slate
Italy's Falconara refinery widens crude slate
Barcelona, 10 September (Argus) — Italian refiner API is widening the crude slate at its 83,000 b/d Falconara refinery, joining other Mediterranean operators in seeking new grades because of political disruption and ownership changes. Falconara was a keen importer of Iraqi Kirkuk crude between 2019-23, before a dispute between the Kurdistan Regional Government (KRG) and Turkey halted exports. In 2022 Falconara received 33 crude cargoes, all but five of which were Kirkuk grade. Since the second half of July this year Falconara received six cargoes, all of different grades. August receipts were 75,000 b/d, up from 50,000 b/d a month earlier, according to Argus tracking. Deliveries were 35,000 b/d of Saudi Arab Light and 40,000 b/d of Libyan crude, split between Es Sider and Sarir. The latter was the first at Falconara in eight years. In September Falconara has taken 1mn bl of Kazakh Kebco and, according to Kpler data, a first cargo of 125,000bl cargo of Italian onshore Val'd Agri. At 38.4°API and 2.1pc sulphur Val'd Agri is close to Kirkuk's 36°API and 2pc sulphur, although output is far lower. Argus assessed Falconara's receipts at 55,000 b/d in January-August. The slate was a weighted average gravity of 30.6°API and 2pc sulphur content, compared with 31.8°API and 2pc sulphur overall last year and 35.6°API and 1.8pc in 2022, when Kirkuk dominated. Other regional refiners have changed their sourcing. Italy's Saras is importing a first cargo of Azeri Light since February 2022 , with light sweet Libyan alternatives halted by conflict. It may take different grades as trading firm Vitol becomes its new owner, after Trafigura had supplied large amounts of US WTI. Greece's Motor Oil Hellas (MOH) had to find an alternative to a 1mn bl cargo of Basrah Medium that was attacked in the Red Sea on the way to its 180,000 b/d Corinth facility. MOH opted for a first cargo of Guyanese Unity Gold. Helleniq Energy has changed its slate in the absence of Kirkuk and sanctioned Russian Urals, and it took first cargoes of Guyanese crude , and Ivory Coast crude and struck a deal with Iraq for Basrah grades. . Spain's Repsol is boosting cargoes of heavy Venezuelan crude under a sanctions waver and API's Trecate refinery has increased receipts of Nigerian Qua Iboe since it bought out ExxonMobil. Argus estimates Italian seaborne crude imports — excluding the northeast terminal of Trieste — at 1.13mn b/d in August, a four-month high and up from 1.06mn b/d in July. For a seventh consecutive month, Azeri BTC Blend and Libyan grades were Italy's largest imports, at 205,000 b/d and 195,000 b/d respectively. Nigeria and Caspian CPC Blend each supplied 125,000 b/d and Arab Light 115,000 b/d. By Adam Porter Italy crude imports mn bl Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Francine set for Wednesday landfall as hurricane
Francine set for Wednesday landfall as hurricane
New York, 10 September (Argus) — Tropical storm Francine is expected to become a hurricane today, as it continues on a path north through offshore US Gulf of Mexico oil and gas production areas on its way to a Louisiana landfall Wednesday. Francine was located about 395 miles south-south west of Cameron, Louisiana, according to an 8am ET advisory from the National Hurricane Center. It is expected to remain off the coast of Texas and intensify to a Category 2 hurricane with winds of up to 100 mph, before landfall. The storm will track through an offshore region that accounts for about 15pc of US crude output and 5pc of US natural gas production. Oil and gas producers started to evacuate personnel from offshore facilities earlier this week and shut in some production. Ports are starting to restrict traffic and offshore lightering operations were paused off of Galveston, Texas, starting Monday night due to high seas. Shell said late Monday it was in the process of shutting in production at its Perdido platform after earlier pausing drilling operations from the facility located about 190 miles south of Houston. Drilling has also been suspended at its Whale facility, which is not scheduled to start operations until later this year. Non-essential personnel have been evacuated from Shell's Enchilada/Salsa and Auger assets, located about 120 miles south of Vermillion Bay, Louisiana. Chevron initiated shut-in procedures for its Anchor and Tahiti platforms 190 miles south of New Orleans and began transporting all personnel from the facilities. Production from its other operated platforms in the Gulf of Mexico remained at normal levels. Non-essential staff were also being removed from the Big Foot and Jack/St. Malo platforms. ExxonMobil said all staff had been transported off the Hoover platform, located about 200 miles south of Houston, and operations shut-in. So far, no major problems are expected at BP's offshore facilities in the region. Ports in the northwestern Gulf of Mexico — including the Texas ports of Corpus Christi, Houston, Galveston, Texas City, Freeport, Beaumont and Port Arthur and the Louisiana ports of Cameron, Lake Charles and New Orleans — were set at port condition Yankee today, meaning gale force winds (39-54 mph) are expected within 24 hours and inbound vessel traffic over 500 gross tons is prohibited. The US Coast Guard's captain of the port of Houston suspended lightering operations at the Galveston Offshore Lightering Area (GOLA) at 11pm ET Monday. Lightering, the process in which crude or refined products are transferred from one ship to another, likely will be delayed off the Texas ports of Corpus Christi and Houston until Thursday due to sea conditions. By Stephen Cunningham and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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