Jordan to host meeting for Lebanon gas supplies
Jordan will host a meeting with some of its neighbours on 8 September to find a way to alleviate Lebanon's ongoing electricity shortages by supplying the country with Egyptian gas, state-run Petra news agency reported today.
Jordanian energy and mineral resources minister Hala Zawati has invited her Syrian, Lebanese and Egyptian counterparts to Amman to discuss ways to deliver Egyptian gas to Lebanon via Jordan and Syria. It would follow a meeting between Lebanese and Syrian delegations in Damascus yesterday in which Syria said it "welcomed" a request by the Lebanese to import gas from Egypt and electricity from Jordan through its territory.
The discussions likely revolve around the 10bn m³/yr Arab Gas Pipeline (AGP), which transports gas from Egypt to Jordan, Syria and Lebanon. Lebanon had previously taken gas from Egypt via the pipeline in 2009 and 2010, but supplies ended soon after as Egypt's gas production dwindled. And although Egypt restarted exporting gas through the pipeline in 2018, these volumes have overwhelmingly been going to Jordan.
According to the World Bank, Egypt has previously indicated its willingness to supply gas to Lebanon. But, among other things, this would have to address the geopolitical complexities of the Syrian civil war. Transit through Syria could be difficult, and with Damascus under US oil sectoral sanctions, that could complicate relations for all involved.
Lebanon has been experiencing an acute power shortage that has resulted in severe rolling blackouts. Last week it awarded its first ever tender to swap 84,000t (542,000 bl) of Iraqi fuel oil with 30,000t of a specific fuel oil grade and 33,000t (246,000 bl) of gasoil to Dubai's state-owned Enoc.
This tender is part of a deal that allows Lebanon's government to buy and resell 1mn t of heavy fuel oil from Iraq through monthly spot tenders — in cargoes of 75,000-85,000t — for one year on behalf of Lebanon's main power provider Electricite du Liban (EDL). The deal, which was signed in late-July, should cover around one third of EDL's fuel needs, and therefore tie the country over for around four months.
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Francine spurs more US Gulf oil shut-ins: Update 2
Francine spurs more US Gulf oil shut-ins: Update 2
Update with BSEE production data. New York, 11 September (Argus) — US energy producers curtailed nearly 39pc of offshore Gulf of Mexico oil production as Hurricane Francine bore down on the Louisiana coastline today. About 674,833 b/d of offshore oil output was off line as of 12:30pm ET, according to the Bureau of Safety and Environmental Enforcement (BSEE). Around 907mn cf/d of natural gas production, or 49pc of the region's output, was also off line. Operators evacuated workers from 171 platforms. Companies including Chevron, ExxonMobil and Shell relocated offshore workers and suspending some drilling operations ahead of the hurricane. Ports along the hurricane's path announced traffic restrictions in advance, with some setting out plans to close until it passes, including the port of New Orleans. Francine was last about 60 miles south-southwest of Morgan City, Louisiana, according to a 4pm ET update from the National Hurricane Center. Maximum sustained winds were reported at 90mph. The hurricane is set to make landfall in Louisiana by this evening before moving north across Mississippi on Thursday. Rapid weakening is forecast and Francine is expected to be a post-tropical system on Thursday. With the hurricane's track locked in on Louisiana, the port of Houston reopened to all vessel traffic at 1pm ET Wednesday, a ship agent said, after closing Tuesday afternoon. The Gulf of Mexico accounts for around 15pc of total US crude output and 5pc of US natural gas production. By Stephen Cunningham and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Francine sets sights on Louisiana coast: Update
Francine sets sights on Louisiana coast: Update
Updates the status of ports in Texas. New York, 11 September (Argus) — Hurricane Francine, which has already shut in almost a quarter of the Gulf of Mexico's oil output, is set to strengthen before making landfall in Louisiana on Wednesday evening. Francine was about 150 miles southwest of Morgan City, Louisiana, according to an 10am ET advisory from the National Hurricane Center, with maximum sustained winds of 90 mph. The hurricane will bring 5-10 foot storm surge to coastal areas from Vermillion Bay to Port Fourchon, Louisiana, and after landfall is expected to move northward across Mississippi on Thursday and Thursday night bringing heavy rains. Ports along the hurricane's path announced traffic restrictions in advance, with some setting out plans to close until it passes, including the port of New Orleans . With the storm's track locked in toward Louisiana, the port of Houston was expected to reopen to inbound vessels at 1pm ET today and to outbound vessels at 3:30pm, a ship agent said. It closed to traffic at 1pm Tuesday. The ports of Beaumont, Port Arthur and Orange also plan to reopen Wednesday. About 412,070 b/d of offshore oil output was off line by midday on Tuesday, according to the Bureau of Safety and Environmental Enforcement (BSEE), as offshore operators including Chevron, Shell and ExxonMobil evacuated workers and curbed operations as a precaution. About 494mn cf/d of natural gas production, or 26pc of the region's output, was also off line. The Gulf of Mexico accounts for around 15pc of total US crude output and 5pc of US natural gas production. By Stephen Cunningham and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US inflation slows to 2.5pc in August
US inflation slows to 2.5pc in August
Houston, 11 September (Argus) — US inflation slowed in August to the lowest rate since February 2021, marking a fifth month of easing inflationary pressures and paving the way for a widely expected cut in the Federal Reserve's target rate next week. The consumer price index (CPI) slowed to an annual 2.5pc in August from 2.9pc in July, the Bureau of Labor Statistics reported today. So-called core inflation, which strips out volatile food and energy prices, rose by 3.2pc in August, matching the July reading, largely due to an uptick in monthly shelter costs. After the report, the CME's FedWatch tool signaled an 83pc probability that the Fed will cut its target rate by a quarter point at next week's Fed policy meeting from 66pc odds Tuesday. Probabilities of a half point cut fell to 17pc from 34pc the prior day. The energy index contracted by an annual 4pc in August, following a 1.1pc gain in July, while the gasoline index contracted by 10.3pc in August, accelerating from a 2.2pc decline in July. Energy services eased to an annual gain of 3.1pc following gains of 4.2pc in July. Food costs rose by 2.1pc in August, slowing from a 2.2pc gain in July. Shelter rose by 5.2pc after a 5.1pc gain in July. Transportation services rose by 7.9pc in August, slowing from 8.8pc in July. Headline CPI rose by 0.2pc in August from the prior month, matching July's monthly gain. Core CPI accelerated a tick to 0.3pc in August following a monthly 0.2pc gain in July, largely as shelter rose to 0.5pc from a prior 0.4pc and transportation services surged to a 0.9pc monthly gain from 0.4pc. After falling to 3.1pc in January, inflation reaccelerated to as high as 3.5pc in March, prompting the Federal Reserve to hold off on widely expected rate cuts after holding its target rate at 23-year highs since July 2023 to contain inflation, which surged as high as 9.1pc in June 2022. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Hurricane Francine sets sights on Louisiana coast
Hurricane Francine sets sights on Louisiana coast
New York, 11 September (Argus) — Hurricane Francine, which has already shut in almost a quarter of the Gulf of Mexico's oil output, is set to strengthen before making landfall in Louisiana on Wednesday evening. Francine was about 195 miles southwest of Morgan City, Louisiana, according to an 8am ET advisory from the National Hurricane Center, with maximum sustained winds of 90 mph. The hurricane is expected to become a category 2 storm, with winds between 96-110mph, and will bring 5-10 foot storm surge to coastal areas from Vermillion Bay to Port Fourchon, Louisiana. After landfall, the center is expected to move northward across Mississippi on Thursday and Thursday night bringing heavy rains. Ports along the hurricane's path announced traffic restrictions in advance, with some setting out plans to close until it passes, including the port of New Orleans . About 412,070 b/d of offshore oil output was off line by midday on Tuesday, according to the Bureau of Safety and Environmental Enforcement (BSEE), as offshore operators including Chevron, Shell and ExxonMobil evacuated workers and curbed operations as a precaution. About 494mn cf/d of natural gas production, or 26pc of the region's output, was also off line. The Gulf of Mexico accounts for around 15pc of total US crude output and 5pc of US natural gas production. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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