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Italy's Ludoil in talks to buy Priolo refinery
Italy's Ludoil in talks to buy Priolo refinery
Milan, 13 January (Argus) — Italian oil storage and distribution company Ludoil is in exclusive talks to buy the country's biggest oil refinery, the 320,000 b/d Priolo, in a deal that would lead to the plant's gradual decarbonisation. Ludoil said it is "involved in a process of due diligence with a view to the possible acquisition" of the refinery, on the island of Sicily, from Cyprus-based private equity firm GOI Energy. Should the acquisition go through, Ludoil will gradually rejig production to offer low carbon products including sustainable aviation fuel (SAF), hydrotreated vegetable oil (HVO) and bioethanol, it said. GOI has only owned the Priolo plant since early 2023, when it bought the refinery from Russia's Lukoil in a deal involving, via supply and offtake agreements, trading firm Trafigura. GOI beat out a rival bid from Vitol and Crossbridge, sources at the time said. The deal was signed off by the Italian government under special powers on the back of commitments by GOI to maintain employment levels, diversify crude sources and invest in green hydrogen infrastructure . But a source familiar with the matter said GOI had become unhappy with the terms of the crude supply arrangement with Trafigura and was looking for a way out. The source said the refinery needed heavy investment to remain competitive. The Priolo complex combines refining, gasification and electricity cogeneration plants. It is considered a strategic asset by Rome, as it accounts for nearly 20pc of Italy's refining capacity. In its statement, Ludoil also said it has contract for the loading and sale of oil products from the Priolo refinery, which began on Monday, 12 January. Milan-based Ludoil operates a range of oil product distribution services designated by Rome as strategic national assets. It runs nine oil storage sites and 156 retail stations in Italy, and supplies Rome's Fiumicino airport with most of its jet fuel. By Stephen Jewkes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Naphtha flows to Venezuela via traders resume
Naphtha flows to Venezuela via traders resume
Houston, 12 January (Argus) — Trading company Vitol is set to export nearly 500,000 bls of naphtha to Venezuela under a new agreement with the US government, according to market sources. Details of the new supply agreement were not detailed or confirmed by Vitol or fellow-trader Trafigura, which was also involved in the transaction. Both companies are expected to begin working with the US government to market Venezuelan crude, with Trafigura saying last week during a televised meeting at the White House it expected its first Venezuelan crude to load this week . The 460,000 bl of naphtha were reported loaded on the Hellespont Protector on 11 January out of Pasadena, Texas, according to shipping data tracker Kpler. The cargo was headed to the Port of Jose in Venezuela. Venezuela requires heavy to full-range N+A naphtha as a diluent to transport its heavy crude production. A brief expiration of US sanctions against Venezuela in 2025 stemmed the US naphtha flow to Venezuela. The only company able to transact with Venezuela was oil major Chevron, which was awarded a special limited license in July 2025. Naphtha exports through Chevron resumed several months after the special license was created. Late last week, heavy virgin naphtha (HVN) prices at the US Gulf coast surged by more than 10¢/USG as suppliers anticipate fresh demand for exports to Venezuela. A steepened contango in the Nymex RBOB pricing basis for US N+A naphtha also discouraged prompt selling at lower outright values — a bullish indicator for N+A naphtha prices. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indonesian pres inaugurates Balikpapan refinery:Correct
Indonesian pres inaugurates Balikpapan refinery:Correct
Corrects headline to clarify this was an inauguration, not the unit's startup Singapore, 12 January (Argus) — Indonesia's president Prabowo has inaugurated the Balikpapan Refinery Development Master Plan (RDMP) project, according to the country's energy ministry. The upgrade is planned to raise the refinery's capacity to 360,000 b/d from 260,000 b/d and added a new 90,000 b/d RFCC unit. Product quality will also improve from Euro 2 to Euro 5 standards. The refinery is expected to begin operations in the first-quarter, said sources familiar with the matter. Pertamina has invested 120 trillion rupiah ($7.4bn) in the project. The RFCC start-up coupled with the adoption of E10 blending is expected to cut Indonesia's gasoline import requirements, capping regional gasoline crack spreads, traders said. Indonesia is Asia-Pacific's largest gasoline importer, with typical demand at 10mn-11mn bl/month. At full capacity, the RFCC could cut imports by around 40,000 b/d, analysts said. Indonesia may also see a diesel surplus when it implements mandatory 50pc biodiesel (B50) blending and ramps up Balikpapan output, the country's energy minister Bahlil Lahadalia said in November. The start-up will also reduce exports of low-sulphur waxy residue, which will be used as RFCC feedstock. The refinery may instead export slurry or residual RFCC material, although this could be used for domestic bunkering if volumes are small, a source close to operations said. The inauguration was initially scheduled for 10 November but was delayed, traders said. By Aldric Chew Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US refiners could see quick boost from Venezuela oil
US refiners could see quick boost from Venezuela oil
Houston, 12 January (Argus) — US Gulf coast refiners that invested long ago in the capacity to run Venezuelan crude could see a quick boost from redirected Venezuelan cargoes in the aftermath of the capture of the country's president, Nicolas Maduro, by US forces. The US administration has signalled its intent to prioritise supply to US refiners by issuing a waiver to a global trading firm to resume purchases of Venezuelan crude, with the terms of the licence requiring that a specific volume must be sold to US buyers, sources told Argus. The US is in talks with leading trading firms and banks to immediately move 30mn-50mn bl of Venezuelan oil held in floating and onshore storage, US energy secretary Chris Wright said on 7 January. The US must first lift sanctions that since last year allow only Chevron to lift limited volumes of Venezuelan crude. But the sanctions waiver by the Treasury department's Office of Foreign Assets Control offers a workaround. Increasing production from Venezuela could take many years and considerable investment. But supplies that have been heading to China and other destinations could be directed toward the US and compete with Western Canadian Select (WCS) crude that is currently consumed in Gulf coast refineries, US refiner Phillips 66's chief executive, Mark Lashier, says. Phillips 66 owns and operates two large Gulf coast refineries that can process about 200,000 b/d of Venezuelan oil if the supply is available and the economics support it, chief financial officer Kevin Mitchell says. They are the 265,000 b/d Sweeny refinery in Old Ocean, Texas, and the 264,000 b/d refinery in Lake Charles, Louisiana. Phillips 66 is running about 500,000 b/d of heavy crude across its system and is a "heavy buyer" of western Canadian crude, Mitchell says. Any increase in imports from Venezuela should benefit US refiners with Gulf coast assets such as Phillips 66, PBF Energy and Valero, analysts at US bank Tudor Pickering Holt say. Venezuelan crude could be a welcome alternative to Mexican Maya for some Gulf coast refiners. Venezuelan grades tend to price at a discount to Maya, as they have lower gravity and higher acid content, Tudor Pickering says. Many US Gulf coast refineries were built originally to run heavy Latin American crude. But the development of Canadian heavy oil sands led to higher imports from that country, while the advent of domestic shale oil pushed many US refiners to change slates, adding capacity for lighter crude. Phillips 66 completed a project last year at the Sweeny refinery that enables it to run up to 60,000 b/d of light crude from the Permian basin. The firm has purchased Venezuelan crude from Chevron "on occasion", Lashier says. Chevron operates in Venezuela with state-owned PdV under a special waiver from US sanctions and imported about 120,000 b/d of crude from Venezuela to the US in December. The future of Citgo Other possible US takers of increasing Venezuelan crude availability include the three PdV-owned Citgo refineries — the 460,000 b/d Lake Charles refinery in Louisiana, the 165,000 b/d Corpus Christi plant in Texas and the 188,000 b/d Lemont refinery in Illinois. All three refineries have a high coking capacity and can handle heavy crude slates. The refineries, in addition to Citgo's lubricant plants and its midstream and retail assets, are being auctioned to satisfy debts owed by PdV. A US federal judge in November affirmed as the winner a $5.9bn bid from Amber Energy , an affiliate of US hedge fund Elliott Investment Management. The sale is pending and subject to regulatory approvals including by the US Department of Treasury's Office of Foreign Assets Control. Elliott declined to comment on the recent US actions in Venezuela and whether they could impact the sale. By Eunice Bridges WCS differentials USGC Venezuela crude imports USGC crude imports Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.