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Union plans new rail strike despite order: Update

  • : Agriculture, Biofuels, Chemicals, Coal, Coking coal, Crude oil, Fertilizers, Freight, LPG, Metals, Oil products, Petrochemicals, Petroleum coke
  • 24/08/23

Adds additional comment from Teamsters Canada Rail Conference

The status of rail freight in Canada remains uncertain after a Canadian labor union today issued a new strike notice to Canadian National (CN), less than a day after the federal government ordered all parties to participate in binding arbitration.

The Teamsters Canada Rail Conference (TCRC) today issued notice to CN that members will go on strike at 10am ET on 26 August. The union had not issued a strike notice to CN earlier this week, but employees could not work yesterday after the CN and Canadian Pacific Kansas City (CPKC) locked them out.

The union said it moved to strike to "frustrate CN's attempt to force arbitration", and protect workers' rights to collectively bargain. CN had previously sought a federal order for binding arbitration.

The government's back-to-work order yesterday sidestepped the collective bargaining process, and "undermined the foundation on which labour unions work to improve wages and working conditions for all Canadians", union president Paul Boucher said today.

"Bargaining is also the primary way our union fights for rail safety — all considerations that outweigh short-term economic concerns," Boucher said.

The union was more optimistic in its strike notice to CN this morning. "We do not believe that any of the matters we have been discussing over the last several days are insurmountable." It said it would be available to discuss issues to avoid another work stoppage.

CN indicated it was frustrated with the union's action.

"While CN is focused on its recovery plan to get back to powering the economy, the Teamsters are focused on returning to the picket line and holding the country hostage to their demands," the railroad said.

CN last night had begun implementing a recovery plan to restore service.

The union has not yet responded to inquiries about its action today. The office of labour minister Steven MacKinnon declined to comment.

Rail operations at CN and CP stopped at 12:01am ET on Thursday after the union launched a strike at CPKC and both railroads locked out employees. That action ended late Thursday afternoon with the federal government directing the Canada Industrial Relations Board (CIRB) to manage binding arbitration on the railroads. CIRB, an independent agency, has not yet said if it will accept the government's order.

CN began moving some freight early on 23 August, but the new strike order issued soon by the union today could disrupt those plans. The union has also challenged the constitutionality of MacKinnon's order regarding CPKC operations pending the outcome of a new ruling by the CIRB.

CPKC's rail fleet remains parked in the meantime. CPKC said late Thursday it was disappointed in the minister's decision and sought to meet with CIRB to discuss resumption of service.

CPKC said the union "refused to discuss any resumption of service, and instead indicated that they wish to make submissions to challenge the constitutionality of the Minister's direction."

A case management meeting with CIRB occurred last night and another was scheduled for early today.

Hearings are also underway to address preliminary issues, the union said.

But the Teamsters said it was prepared to appeal the case to federal court if necessary.


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Kinder Morgan to shut Tampa terminals Tuesday


24/10/07
24/10/07

Kinder Morgan to shut Tampa terminals Tuesday

Houston, 7 October (Argus) — Kinder Morgan is planning to shut its terminals and fuel racks in Tampa, Florida, on Tuesday as the region prepares for Hurricane Milton to make landfall Wednesday evening . "We will continue to monitor the storm's path and make any adjustments as needed," Kinder Morgan said in a statement on Monday. Kinder operates the Port Sutton, Tampa Bay Stevedores and Tampaplex terminals in Tampa's Hillsborough Bay and the Port Manatee terminal further south in the Tampa Bay. The terminals handle a wide range of bulk products including fertilizers, scrap metal, petroleum coke and coal according to Kinder Morgan's website. Kinder's Tampa refined products terminal has 1.8mn bls of storage and is connected to the Central Florida Pipeline (CFPL) which transports gasoline, diesel, ethanol and jet fuel to Orlando, including to Orlando International Airport. The airport said today that it will cease operations the morning of 9 October in advance of the hurricane. By Nathan Risser Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

CNRL to buy Chevron's Canadian oil sands, shale: Update


24/10/07
24/10/07

CNRL to buy Chevron's Canadian oil sands, shale: Update

New York, 7 October (Argus) — Canadian Natural Resources (CNRL) agreed to buy a 20pc stake in the Athabasca Oil Sands Project (AOSP) and 70pc interest in the Duvernay shale from Chevron for $6.5bn, extending its lead as Canada's top producer. The all-cash transaction has an effective date retroactive to 1 September, the companies said Monday. Closing is expected during the fourth quarter. The assets being sold accounted for about 84,000 b/d of oil equivalent (boe/d) of production, net of royalties, to Chevron last year. Chevron last October announced plans to acquire US independent Hess for $53bn, pledging to sell $10bn-$15bn of assets by 2028. While the Hess deal has been delayed by a mid-2025 arbitration hearing, Chevron, the second-largest US oil producer, has increasingly focused its attention on the Permian shale basin of west Texas and southeastern New Mexico, as well as an expansion project in Kazakhstan. CNRL's acquisition bolsters its position as Canada's largest petroleum producer after pumping out 1.29mn boe/d of oil and gas in the second quarter this year. About 72pc came from oil and natural gas liquids (NGLs), with the balance from natural gas. CNRL anticipates the oil sands and Duvernay assets will lift the company's production profile by about 122,500 boe/d in 2025. About half, or 62,500 b/d, will come in the form of synthetic crude oil produced from AOSP's 320,000 b/d Scotford upgrader near Edmonton, Alberta. The upgrader is fed diluted bitumen piped from the Muskeg River and Jackpine mines in the oil sands region. The deal would increase CNRL's stake in AOSP to 90pc. Calgary-based CNRL first made its foray into AOSP in 2017 when it bought a 70pc stake from Shell and Marathon Oil Canada for $9.75bn ($C$12.74bn). Muskeg River and Jackpine are adjacent to the company's fully owned Horizon mine and upgrader, and the increase in ownership may allow for increased synergies between the two assets, according to executives. "It allows for a little bit more ease in terms of governance on the asset," CNRL president Scott Stauth said Monday on an investor call. "I can see us utilizing the equipment more effectively between the two sites." Undeveloped oil sands projects Also included in Monday's deal are additional stakes in undeveloped oil sands leases that CNRL could tap as it works through its reserves. This includes a 20pc increase the Pierre River project that would provide CNRL with 90pc ownership; a 60pc increase in the Ells River project that would lift the company's stake to 90pc; a 33pc increase in the Saleski project, for 83pc; and a 6pc working interest in Namur that would reach 65pc. Reserves from Pierre River could be used to extend the life of the Horizon project as the North Mine depletes. A standalone facility there is also possible, but would require a significant capital outlay, CNRL executives said. CNRL in May said it was considering a massive 195,000 b/d increase to its Horizon production using two new technologies. CNRL said production from the light oil and liquids rich assets in the Duvernay is expected to average 60,000 boe/d in 2025, half of which would be natural gas. CNRL anticipates pushing production to 70,000 boe/d by 2027 with more than 340 locations already identified as candidates for drilling. With WTI above $70/bl, "this is a very attractive acquisition for us," CNRL chief financial officer Mark Stainthorpe said. CNRL has been actively acquiring assets in recent years. The company purchased Canadian assets belonging to Painted Pony in 2020, Devon Energy in 2019, TotalEnergies in 2018 and Cenovus Energy in 2017, among other deals. By Stephen Cunningham and Brett Holmes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Hurricane Milton to further disrupt phosphate output


24/10/07
24/10/07

Hurricane Milton to further disrupt phosphate output

Houston, 7 October (Argus) — The US phosphate market anticipates Hurricane Milton's Florida landfall later this week will cause further disruptions to regional production as the Tampa area continues to recover from Hurricane Helene. Hurricane Milton intensified to a category 5 storm today in US Gulf waters and is on track to make landfall around the Tampa Bay area Wednesday evening as a category 3 hurricane, the National Weather Service said. Phosphate traders expect the storm will only further tighten the market as major fertilizer producers work to overcome production losses and power outages endured during Hurricane Helene on 26 September. One phosphate trader called the incoming storm "devastating", considering it will exacerbate existing fourth quarter scarcity from ongoing outages at Nutrien's White Springs and Mosaic's Riverview facilities. The area surrounding Tampa Bay is home to three major phosphate processing facilities owned by producer Mosaic — with capacity totaling 5.7mn metric tonnes (t)/year — and the mines that feed them. Finished phosphate product is shipped across the US by rail to end users and exported by vessel from the port. Mosaic's Riverview facility in Tampa experienced water intrusion from storm surge but was expected to be back to full production sometime this week, according to the company. The producer also expected some late third quarter shipments to be pushed into the fourth quarter because of the Tampa port closure. Fellow fertilizer producer Nutrien's White Springs phosphate facility is located north of Tampa and was still assessing damage following Hurricane Helene as of today, the company said. White Springs has annual production capacity of 2mn t/year. Nutrien said it is also monitoring Hurricane Milton's path and has emergency safety measures in place for the storm. Further production disruptions are likely with the arrival of Hurricane Milton. Fertilizer production sites in the path of major storms curb operations as a precaution and then have to assess and repair damage before restarting. There is an increasing risk of life-threatening storm surge and damaging winds for portions of the west coast of the Florida peninsula beginning Tuesday night or Wednesday morning, the NWS said. Storm surge in the Tampa Bay area could reach between 8-12ft, compared to storm surge of around 6ft from Helene. Portions of Florida can expect heavy rainfall today ahead of Milton, as well as later this week. Additionally, unlike with Helene, Mosaic's Bartow and New Wales facilities located further inland from Riverview are directly in the path of Milton on its current trajectory. If the storm stays on its current track, it will be the worst storm to hit the Tampa area in 100 years, the NWS said. Hurricane Ian damaged phosphate facilities in 2022 , causing Mosaic to reduce fourth quarter production guidance by 200,000-250,000t after the storm moved east across the Tampa Bay area. Florida ports are beginning to limit operations ahead of the storm. Port Tampa Bay initiated its Port Heavy Weather Advisory Group, which closely monitors impacts to the port and waterways in response to Hurricane Milton. Inbound and outbound vessel traffic to the port remains open and operations will continue "as long as safely possible," the port said. SeaPort Manatee is also open to vessel and landside traffic. Both ports will likely take further precautions closer to Milton's landfall. Mosaic did not respond to request for comment on the precautions it is taking for Milton. By Taylor Zavala Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Florida ports preparing for Hurricane Milton


24/10/07
24/10/07

Florida ports preparing for Hurricane Milton

Houston, 7 October (Argus) — Ports on Florida's Atlantic and Gulf coasts closed to inbound vessel traffic Monday in preparation of Hurricane Milton, which strengthened into a category 5 storm . The US Coast Guard late Sunday set condition X-Ray at ports from Jacksonville, on Florida's Atlantic coast, to Panama City, on the state's Gulf coast. This means gale force winds (39-54mph) were forecast within 48 hours. All commercial traffic and transfer operations can continue during X-Ray, but the Coast Guard said ocean-going commercial vessels greater than 500 gross tons should make plans to depart the port or request permission from authorities to remain in port. Incoming vessel traffic is prohibited without Coast Guard permission. A ship agent expects the Coast Guard to set port condition Yankee from Miami to Tampa on Monday evening, which would mean gale force winds within 24 hours. Milton, with maximum sustained winds of 160 mph, was about out 130 miles west of Progreso, Mexico, according to an 11am ET National Hurricane Center advisory. The storm is forecast to make landfall in Florida on Wednesday. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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