Monday, May 20, 2019

Commodity Trader News

India's Ennore Terminal Gets Qatari LNG

Image: ???Qatargas

Qatargas, the world’s largest LNG producer, supplied a commissioning cargo for India’s Ennore LNG receiving terminal, near the southern Indian city of Chennai.The commissioning LNG cargo was delivered onboard the vessel ‘Golar Snow’ on 25th February 2019 by the Swiss commodity trader, Gunvor, to the state-owned Indian Oil Corporation Limited (IOCL), which owns and operates the five million tonnes per annum (MTPA) terminal.

Noble Group Halves Net Loss in Q3

Noble Group Ltd halved its quarterly net loss from continuing operations to $43.3 million and said its soon-to-be-completed $3.5 billion debt restructuring would enable the commodity trader to reposition its business in Asia Pacific and the Middle East.The Singapore-listed company is seeking approval from a Bermuda court for its restructuring and payment to creditors, the final hurdle to completing a debt-for-equity swap.

Hibiscus Petroleum to Double Production

Malaysian oil and gas exploration and production company Hibiscus Petroleum is aiming to double its oil output in the United Kingdom and Malaysia to 20,000 barrels per day (bpd) by 2021, a senior company executive said on Thursday.It needs an additional $50 million by 2020 to boost production from about 10,000 bpd now, Kenneth Pereira, managing director of the company, told reporters."That's our maximum negative cashflow for projects already identified and that's based on a $60 per barrel oil scenario…

Bangladesh Drops Trafigura in LNG Talks as Gunvor Advances

File Image: A rendering of a typical FSRU design (CREDIT: Sener)

Bangladesh has terminated talks with Swiss-based commodity trader Trafigura to install a small floating liquefied natural gas (LNG ) import terminal due to delays in agreeing terms, while rival trader Gunvor advances with a separate project. Once considered an energy backwater, Bangladesh's LNG demand is set to hit 17.5 million tonnes annually by 2025 after importing its first cargo last month, and as traders target Southeast Asia's booming gas markets to boost sales.

Singapore Court Blocks Noble Group Shareholder Meeting

File Image (CREDIT: AdobeStock / © Renaschild)

Noble has other investor meetings due in next few weeks; but court decision could complicate restructuring process. A Singapore court blocked commodity trader Noble Group Ltd from holding its annual meeting of shareholders on Monday following legal action sought by dissident shareholder, Goldilocks Investment Co. Ltd. Friday's ruling is the latest skirmish between Noble and Goldilocks, Noble's third-largest shareholder, in the fight over Noble's restructuring plans with creditors…

Noble Amends Restructuring Plan, Scrambles for Shareholder Support

Noble's action on shareholders was criticised by SGX; Noble needs shareholders to support its restructuring. Bowing to criticism from the Singapore Exchange (SGX) and other investors, embattled Noble Group is removing a provision in its $3.4 billion debt restructuring proposal that penalised shareholders voting against the plan. The debt-for-equity swap is crucial for the survival of the Singapore-listed company, which has sold billions of dollars of assets…

Koch Supply & Trading slashes Staff in Restructuring

File Image (CREDIT: AdobeStock / (c) Kasto)

Global commodity trader Koch Supply & Trading has cut dozens of workers across at least four offices worldwide, several sources said on Tuesday, as the firm restructures its business. The cuts at the unit of Koch Industries Inc, the industrial conglomerate of billionaire conservatives Charles and David Koch, affected traders and support staff in its United States, Switzerland, United Kingdom and Singapore offices. The positions involved were primarily in refined products and fuel oil trading and operations…

Noble Group Hopeful of Debt Restructuring Deal

Chairman says talks with bond holders and banks moving forward; hopeful of reaching a conclusion in near future. Struggling commodities trader Noble Group Ltd is having constructive talks with creditors to restructure its debt and is hopeful of a deal in the near future, the company's chairman said. "Various talks have been going for a couple of months. They have been constructive," Paul Brough, a restructuring specialist who was appointed Noble's chairman this year, told a shareholders' meeting in Singapore on Thursday.

Cheniere Signs 15-year LNG Supply Pact with Trafigura

© Wojciech Wrzesień / Adobe Stock

U.S. natural gas producer Cheniere Energy Inc said on Tuesday Singapore-based commodity trader Trafigura Pte Ltd would buy about 1 million tonnes of natural gas per year from its unit for 15 years, starting 2019. The agreement with Cheniere Marketing, LLC would help the Houston-based company to fund its expansion plans, Chief Executive Jack Fusco said. The company has been expanding its presence in Asia to benefit from the rising demand for liquefied natural gas from the region.

Unipec Expands London Oil Trading Desk

File Image (CREDIT: AdobeStock / (c) Kasto)

China's Unipec, the trading arm of Asia's largest oil refiner Sinopec, has hired two former traders from commodity trader Noble Group to join its middle distillates desk in London, according to two sources with knowledge of the matter. Shaun O'Donnell and Anup Kundaiker began their new jobs on Wednesday, according to one of the sources. Unipec also hired Ross Warden, formerly part of Noble's distillate operations desk, as a blending operator, one of the sources said. Sinopec could not be reached for immediate comment.

Trafigura, Eni Execute Landmark LNG Futures Contract

Commodity trader Trafigura and Eni Trading and Shipping traded the first liquefied natural gas (LNG) futures contract representing delivered prices to Dubai, Kuwait and India, Singapore Exchange (SGX) said on Wednesday. A total of 100,000 million British thermal units, a fraction of a standard-size cargo, of February 2018 futures was cleared by SGX at a price of $9.85 per mmBtu on Dec. 8, the exchange said in a statement.

Trafigura to Develop Another Pakistan LNG Import Project

File Image: A typical LNG Carrier at Sea (CREDIT: QGTC)

Swiss commodity trader Trafigura said it plans to develop its second liquefied natural gas (LNG) import terminal in Pakistan, alongside an existing project in which it has a minority stake. At a inauguration ceremony for Pakistan's second LNG import project, Pakistan GasPort Ltd (PGPL), in Port Qasim in Karachi, the trader said it would add a jetty, berth and a second floating storage and regasification unit (FSRU) to the existing facility.

Fitch Lowers Noble Group Rating

Fitch Ratings cut commodity trader Noble Group's debt rating on Friday to two notches above default, citing the company's commencement of discussions on a debt restructuring. The agency lowered the rating by a notch to 'CC', which according to its rating criteria defines a situation where "default of some kind appears probable". Fitch previously had rated Noble 'CCC', which stated that "default is a real possibility". Noble…

Trafigura to Lift Angolan LNG Cargo

File Image (CREDIT: AdobeStock / (c) Fotmart)

Commodity trader Trafigura purchased a liquefied natural gas (LNG) cargo offered by Angola's export facility through a tender, trade sources said.   The cargo, which loaded on Aug. 7-9, attracted a price in the $6 per million British thermal units (mmBtu) range, they said.   Reporting by Oleg Vukmanovic

Swiss Singapore to Start Naphtha Trading in Singapore

To set up naphtha trading desk, hired 1 trader so far; aims to set up office in the US by year-end. Commodity trader Swiss Singapore Overseas Enterprises is expanding its trading operations in Singapore and may start an office in the United States by the end of the year, said three industry sources on Tuesday. The company, which is part of the Indian multinational conglomerate Aditya Birla Group, is starting a naphtha trading desk at its Singapore office, one of the sources familiar with the matter said.

Cargill Finalizes Sale of Oil Unit to Macquarie

Commodity trader Cargill Inc completed the sale of its petroleum business to Australian investment bank Macquarie Group Ltd on June 30, a company spokeswoman told Reuters on Friday. The company will continue to offer financial and price risk management in petroleum markets through its Risk Management business, she said in an email reply. "That business provides hedging products in more than 70 commodities, including energy, and will continue to do so," she added.

Embattled Noble Receives Interest for Oil Unit

Struggling commodity trader Noble Group Ltd has been approached by potential buyers for its oil business, the Financial Times newspaper reported on Monday, citing four people familiar with the matter. Noble has been sounded out by rival trading companies about buying parts of its Americas-focused oil unit but has so far resisted entering into discussions, the FT reported. It did not name any potential buyers. Noble had no immediate comment when contacted by Reuters.

Gunvor Executive Charged by Chinese Prosecutors

Chinese prosecutors have charged an employee of Swiss commodity trader Gunvor Group who has been held for a year for allegedly smuggling fuel and evading taxes on sales from the Philippines, according to a legal document viewed by Reuters. In May last year, Chinese authorities seized a tanker and detained several people as part of a probe into suspected tax evasion on imported oil. A Gunvor senior executive based out of Singapore was one of the people detained, a source briefed on the matter told Reuters.

Trafigura to Cut Debt, Reduce Buybacks

Swiss commodity trader Trafigura will reduce its "far from perfect" leverage over the next year as it sells some assets and has passed the peak for new investments while also reducing this year's share buybacks, its chief financial officer said. "We are executing the deleveraging that we outlined previously ... The (debt) ratio is far from perfect but the deleveraging trend is there," Christophe Salmon told Reuters. Trafigura…

Noble Group's Lenders in Talks on $2 Bln Credit Line

Noble Group's main banks are in talks to decide whether to give the commodity trader an extension on its credit line or force it into a restructuring or liquidation, the Financial Times newspaper said on Tuesday, citing sources with knowledge of the discussions. Banks including HSBC, Societe Generale, ABN Amro, Citigroup and ING, have appointed legal advisers to consider the case for extending the $2 billion line of credit…