Brazil's Rio Grande do Sul reallocates gas supply

  • : Natural gas, Oil products
  • 24/05/17

Natural gas supply in Brazil's Rio Grande do Sul had to be redistributed because of the historic floods in the state, with diesel potentially making its way back as an power plant fuel to leave more gas available for LPG production.

Gasbol, the natural gas transportation pipeline that supplies Brazil's south, does not have capacity to meet demand from the 201,000 b/d Alberto Pasqualini refinery (Refap), state-controlled Petrobras' Canoas thermal power plant and natural gas distributors in the region, according to Petrobras' then-chief executive Jean Paul Prates said earlier this week.

The Santa Catarina state gas distributor has adjusted its own local network to meet peak demand in neighboring Rio Grande do Sul via the pipeline transportation network.

The Canoas thermal plant is running at its minimum generation at 150GW, with 61pc coming from its gas turbine. The plant was brought on line to reinstate proper power supply after transmission lines in the south were affected by the floods. Petrobras plans to use a diesel engine to increase power generation. The current approved fuel cost (CVU)for diesel in the Canoas plant is of R1,115.29/MWh.

Petrobras is also operating Refap at 59pc of its maximum installed capacity, at 119,506 b/d.

Heavy showers in Rio Grande do Sul since 29 April brought unprecedented flooding to the state, causing a humanitarian crisis and infrastructure damage. The extreme weather has left 154 people dead, 98 missing and over 540,000 people displaced, according to the state's civil defense.


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Investment funds’ long TTF position tops 129TWh: Update


24/06/19
24/06/19

Investment funds’ long TTF position tops 129TWh: Update

Updates net long figure based on new Ice report released same day London, 19 June (Argus) — The net long position of investment funds at the Dutch TTF gas hub has reached its highest since January 2022 at more than 129TWh, according to the latest data released by the Intercontinental Exchange (Ice). Investment funds have traded much more heavily at the TTF over the past two months, with their net long position more than quadrupling to 129TWh on 14 June from 31.8TWh in early April, the most recent Ice commitment-of-traders report shows. This is the largest net long position that investment funds have held in the past two and a half years. Late 2020 was the last time that investment funds increased their net long position so quickly, jumping from roughly 75TWh on 27 November 2020 to a peak of nearly 256TWh on 12 February 2021 ( see investment fund graph ). Firms began to unwind this net long position from May, and there was a switch to a net short position in April 2022-August 2023. Continued TTF price volatility may have attracted more investment funds in recent months, particularly as the front-month contract earlier this month hit its highest since December, peaking at €35.88/MWh on 3 June. Russian pipeline gas used to provide the European market with a large degree of flexibility, but the loss of most of this gas, along with higher reliance on LNG, has reduced Europe's supply buffer and has exposed the TTF more to factors well outside Europe. Extended downtime at the Wheatstone LNG plant in Australia, a facility that provides no cargoes to Europe, caused the TTF front-month contract to jump to €36.12/MWh in intra-day trading last week . Similarly, news of shelling in the region of Sudzha , the location of the last still-functioning interconnection point between Ukraine and Russia, caused the TTF front-month contract on Ice to spike by more than €1/MWh in the space of two minutes before falling again. Such sudden jumps and falls have become increasingly common in recent months, with many traders noting the role of algorithmic trading in this phenomenon. A volatile trading environment is more attractive to investment funds than to other types of market participants, as they make most of their money from price volatility whereas utilities make most of their money from the margins on their sales to customers and associated services. The investment funds' move to a large net long position contrasts with a rapid move to a net short position by commercial undertakings, defined as companies with retail portfolios. These two trader categories each held net long positions of roughly 77TWh at the start of November. But investment funds had unwound this into a small net short position by March, while commercial undertakings continued to go longer, reaching a peak of 159TWh in mid-December. Mid-February appears to have been a turning point, with investment funds beginning to climb to a net long and commercial undertakings quickly unwinding to small net short. This was mostly driven by commercial undertakings' increasingly large net short position for "risk reduction contracts", topping 161TWh, as a hedge for similarly sized net long positions on the physical side in storage ( see commercial graph ). This is only the third time since 2018 that commercial undertakings' aggregate position has been net short, with the only other notable time being for a prolonged period in January-August 2021, as well as one brief week in June 2020. This likely reflects historically high EU stocks at the end of the 2023-24 winter, which have to be counterbalanced by risk-reduction hedging contracts. By Brendan A'Hearn and Matt Drinkwater ICE TTF net positions TWh ICE TTF commercial undertakings positions TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Brazilian minister defends shale gas exploration


24/06/19
24/06/19

Brazilian minister defends shale gas exploration

Rio de Janeiro, 19 June (Argus) — Brazil's mines and energy minister Alexandre Silveira defended exploring shale gas in the country in an address to the lower house of congress. Silveira proposed integrating Brazil's energy resources with those of neighboring countries, especially Argentina, which boasts an estimated 308 Tcf of gas reserves, according to the US Energy Information Administration. He also urged discussions regarding unconventional gas exploration in Brazil. "It makes little sense for us to continue importing unconventional gas from the US after more than five decades," Silveira said. "Meanwhile, we hesitate to explore similar resources within our own borders because of unclear reasons." Mato Grosso and Bahia states are currently discussing exploring shale gas by hydraulic fracking, while Parana and Santa Catarina states have regulation in place. More supply, lower prices Silveira once again stressed the need to increase gas supply and decrease prices. "Currently, 35pc of our chemical industry is not operating in full capacity because of insufficient gas supply and excessively high prices compared with international rates," he said. "We must explore all avenues to meet demand." This is not the first time Silveira calls for lower gas prices to push Brazil's industrialization, one of the federal government's main objectives . Brazil needs to hold a secure, sustainable approach to energy exploration while maintaining its energy sovereignty, Silveira said. For that, it needs to leverage all of its available energy resources, despite having an 88pc clean energy matrix. "We cannot afford to overlook our potential," Silveira said. "Renouncing any option would be a disservice to our nation." By Betina Moura Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Nigeria tightens sulphur cap on oil product imports


24/06/19
24/06/19

Nigeria tightens sulphur cap on oil product imports

London, 19 June (Argus) — Nigeria has reduced the sulphur cap on refined oil product imports to 50ppm, according to market participants. The new cap — which took effect at the start of June, according to sources — marks a sharp reduction from a previous 200ppm limit set on 1 March . Sources suggest there was no widespread information campaign to make market participants aware of the specification change. The lower sulphur limit comes as Nigeria braces for the imminent ramp-up of 10ppm ultra-low sulphur diesel production at the country's 650,000 b/d Dangote refinery, followed by 10ppm gasoline production in mid-July. A lower sulphur content ceiling for imports will likely favour the sale of diesel, jet fuel and gasoline from the Dangote refinery to the local Nigerian market, which until March was able to import high-sulphur products upwards of 2,000ppm. Some 10ppm diesel has already been delivered to Nigeria since the start of June, as traders have struggled to source any available 50ppm diesel to import into the country under the new cap, one trader said. Despite the regulatory change, one local Nigerian marketer told Argus that a 30,000t cargo of 150ppm gasoline is discharging in the country on 19 June, raising questions around enforcement of the new cap. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

EU warns of 2030 climate ambition gap


24/06/19
24/06/19

EU warns of 2030 climate ambition gap

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