Japan’s Shikoku to shut Ikata reactor for maintenance
Japanese utility Shikoku Electric Power is planning to shut down the 890MW Ikata No.3 nuclear reactor on 19 July, to carry out regular maintenance works.
The absence of Shikoku's sole reactor could prompt the utility to boost thermal power generation at coal-, gas- and oil-fired units to meet expected rises in electricity consumption for cooling purposes during the peak summer demand season.
The Ikata No.3 reactor is set to close for a three-month turnaround, after around 13 months of continuous operations. Shikoku plans to start test generation in the final phase of the maintenance on 30 September and complete the entire turnaround process on 25 October.
The potential fall in nuclear output could theoretically increase LNG demand by 170,270t over August-September, assuming an average gas-fired generation efficiency of 50pc.
Shikoku operates four thermal power plants, including the 1,385MW Sakaide gas- and oil-fired plant, 750MW Saijo coal-fired plant, 700MW Tachibanawn coal-fired plant and 450MW Anan oil-fed plant. Thermal capacity accounts for around 60pc of the utility's power portfolio.
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Francine shuts in about 42pc of US Gulf oil: Update
Francine shuts in about 42pc of US Gulf oil: Update
Adds BSEE shut-in data update. New York, 12 September (Argus) — Hurricane Francine, which has since weakened to a tropical depression as it passes over central Mississippi, shut in about 42pc of US Gulf of Mexico oil output. About 730,472 b/d of offshore oil output was off line as of 12:30pm ET Thursday, according to the Bureau of Safety and Environmental Enforcement (BSEE), while 991.68mn cf/d of natural gas production, or 53pc of the region's output, was also off line. Operators evacuated workers from 169 platforms this week ahead of the storm. Companies including Chevron, ExxonMobil and Shell relocated offshore workers and suspended some drilling operations ahead of Francine, while a number of ports, including New Orleans, Louisiana, shut down. Shell curtailed output at the Appomattox platform, around 80 miles south east of Louisiana, as well as the Mars, Vito, Ursa, and Olympus platforms because of downstream issues. Today Shell said it has started to redeploy staff to its Perdido facility, located about 190 miles south of Houston, where production is still shut. Operations at Shell's Auger and Enchilada/Salsa assets, about 120 miles south of Vermillion Bay, Louisiana. remain suspended. Drilling is still halted at the Whale platform, which is scheduled to start up later this year. "As conditions continue to improve, we will begin the process of redeploying personnel to Auger and Enchilada/Salsa to bring staffing to normal operating levels," Shell said. The port of Lake Charles reopened to vessel traffic at 11am ET Thursday after closing on Tuesday evening. The port of New Orleans remained closed. Francine was about 15 miles north-northeast of Jackson, Mississippi, as of a 12pm ET advisory from the National Hurricane Center, with maximum sustained winds of 35mph. It slammed into the Louisiana coast as a Category 2 hurricane Wednesday evening before weakening. 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 moves inland as tropical depression
Francine moves inland as tropical depression
New York, 12 September (Argus) — Hurricane Francine weakened to a tropical depression on Thursday after slamming into southern Louisiana as a Category 2 hurricane the previous evening and spurring offshore operators to shut in around 39pc of oil output in the Gulf of Mexico. Francine was last about 30 miles south of Jackson, Mississippi, according to an 8am ET advisory from the National Hurricane Center, with maximum sustained winds of 35mph. The storm will move over central and northern portions of Mississippi through early Friday bringing heavy rains. Offshore oil and gas operators including Shell, ExxonMobil and Chevron evacuated workers and shut in production from some of their offshore operations in advance of Francine, while a number of ports, including New Orleans, Louisiana, shut down. About 674,833 b/d of offshore oil output was off line as of 12:30pm ET Wednesday, according to the Bureau of Safety and Environmental Enforcement (BSEE), while 907mn cf/d of natural gas production, or 49pc of the region's output, was also off line. Operators evacuated workers from 171 platforms. Shell said Wednesday evening that production at its Perdido, Auger, and Enchilada/Salsa facilities in the Gulf of Mexico remained shut in, but it would reassess its position as offshore conditions improve. BP said it temporarily shut down and evacuated personnel from its Castrol lubricants facility in Port Allen, Louisiana. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Taipower settles term coal deals below spot rates
Taipower settles term coal deals below spot rates
Singapore, 12 September (Argus) — Taiwanese state-owned utility Taipower has settled its thermal coal term contracts with Australian producers at $137.44/t fob, below spot market rates, a source close to the matter said. Taiwanese buyers have traditionally referred to the fixed price in the term contracts between Switzerland-based mining and trading firm Glencore and Japanese utility Tohoku Electric Power for their deals. But prolonged stalling in price negotiations between Glencore and Tohoku has prompted Taipower to settle its contracts without the reference price. The settlement has not been officially confirmed by Taipower. Taipower's latest contract deal with its Australian suppliers signals a move away from the long-time practice of using the Glencore-Tohoku price, also known as the Japanese reference price (JRP), as a pricing cue. The price negotiations between Glencore and Tohoku for term contracts that start in April have historically involved the largest volume of coal supplied from Australia to Japan. The JRP serves as a reference for other Australian coal producers and Japanese utilities. It is also followed by other Asian coal buyers including those in Taiwan, Thailand and the Philippines. Taipower and its Australian suppliers agreed to the price of $137.44/t fob in July-August this year for GAR 6,322 kcal/kg coal, the source told Argus . The price applies to term contracts that run from January-December this year. Price negotiations for these contracts usually start in April of the same year, after the contracts have started running. Taipower has a few contracts with Glencore for the supply of Australian coal, but these contracts have not been settled because the two parties have yet to agree on the price, the source said. They expect to conclude price negotiations for these contracts by the end of September. The source did not disclose the volume involved in any of Taipower's term contracts. Taipower's settlement price was lower than the spot market rates at the time when the price was agreed upon. The price of high-calorific value (CV) NAR 6,000 kcal/kg coal rose in August to above $140/t fob, according to Argus' assessment. This was because traders anticipated greater demand for thermal coal on concerns about natural gas supply because of the Russia-Ukraine conflict. The price of high-CV coal rose by 7pc from 2 August to 16 August, to $145.41/t fob Newcastle. It has since pulled back and was last recorded at $140.82/t fob on 6 September. Glencore may have tried to fix the JRP at $145.95/t fob through a smaller deal with a Japanese firm. It had signed a term contract with another Japanese firm that was not Tohoku in March at this price for the supply of high-CV Australian coal, market participants said at the time. Some Japanese utilities, steel mills and industrial users had followed the cue and settled their contracts at the same price. By Jinhe Tan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Victoria seeks further gas storage capacity
Australia’s Victoria seeks further gas storage capacity
Singapore, 12 September (Argus) — The state Labor government of Victoria will introduce laws to allow offshore gas storage projects in its waters as it grapples with a predicted supply deficit because of declining Bass strait production. Victoria, which is Australia's largest user of household and commercial gas, will allow gas to be stored in empty gas reservoirs offshore in a bid to boost supply security, Victorian energy minister Lily D'Ambrosio said on 11 September. But the state's waters extend three nautical miles offshore, meaning the laws will not cover most of the state's depleted fields in the Otway and Gippsland basins which lie in federally administered zones. Victoria's largest storage is the 26PJ (694.3mn m³) onshore Iona facility in the state's west, owned by domestic gas storage firm Lochard Energy which plans to expand its capacity by 3PJ . But further capacity is needed to help bridge seasonal gaps, with the new laws possibly advancing privately-owned GB Energy's Golden Beach gas project, which could add 12.5PJ of storage to the grid. The Gippsland basin joint venture (GBJV) and Kipper Unit JV which feed the three Longford gas plants in the state's east have historically supplied about 60pc of southern states' gas, but operator Exxon plans to close one of the plants in July-October , cutting the 1.15 PJ/d facility's capacity to 700 TJ/d and further to 420 TJ/d later this decade. GBJV operated just 50 producing wells and six gas platforms in the 2024 southern hemisphere winter, with Exxon expecting a 70pc reduction in the number of wells from 2010 levels by next winter. The Australian Energy Market Operator's (Aemo) 2024 Victorian Gas Planning Report (VGPR) update confirmed the need for greater supply in Victoria, as declining demand would not offset the loss of supply from the GBJV. Peak southern state winter demand exceeds 2 PJ/d, but at full capacity, pipelines linking Queensland state's coal-bed methane fields to the southern states can meet only 20pc of such demand. Coal and gas-dependent Victoria this year approved its first nearshore gas project in a decade as the government softens its anti-gas stance. LNG import plans The possibility of LNG imports is firming in Victoria, with Australian refiner Viva Energy announcing public consultation has begun on its supplementary environmental effects statement (EES) for a planned floating storage and regasification unit, adjacent to its 120,000 b/d Geelong refinery. The Geelong LNG terminal would have the capacity to supply more than half of Victoria's current gas demand, Viva said on 12 September. The terminal's surplus gas could also flow into the connected southern states of South Australia, New South Wales and Tasmania. A public hearing into the proposal, which could see the import of 45 cargoes/yr, is expected to be held in December before an independent committee reports to the state's planning minister next year. Subject to a final investment decision, works could commence in 2026 to deliver first gas for winter 2028, Viva said, aligning with Aemo's expected shortfall of 50PJ in that year. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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