Wednesday, February 19, 2020

United States News

Vineyard Wind to Miss Startup Target Over Permit Delay

(Photo: Heerema Marine Contractors)

Vineyard Wind, the developer of the first major U.S. offshore wind farm, said on Tuesday it will miss its target to start sending power to Massachusetts by 2022 due to lengthy federal permitting delays.The Bureau of Ocean Energy Management, part of the U.S. Department of Interior, posted a revised permitting timeline on its website on Tuesday that said it will issue a final decision on the project by Dec. 18, more than a…

Australia Becomes World's Largest LNG Exporter

Graph: Rystad Energy

Australia has become the largest liquefied natural gas (LNG) exporter in the world. The record figure knocked Qatar out of the top spot."Australia is set to become the world’s largest liquefied natural gas (LNG) exporter this year, overtaking Qatar, with its supplies expected to reach 81 million tonnes (MT) as Ichthys LNG and Prelude FLNG increase production," Rystad Energy said.Meanwhile, Qatari exports will remain at current levels, around 77 MT.

LNG Tanker Diverted from China in Sign of Weaker Demand

© nikkytok / Adobe Stock

A liquefied natural gas (LNG) tanker that had been heading to China has been diverted, data intelligence firm Kpler and two industry sources said on Tuesday, probably due to lower demand for the fuel as businesses are hit by the coronavirus outbreak.The Tangguh Foja tanker loaded a cargo at the Tangguh LNG plant in Indonesia last month and had been heading to China's Rudong terminal in Jiangsu province, Refinitiv shipping data shows.It was diverted towards the South China Sea on Jan.

Coronavirus hits Supertanker Rates

© Trueffelpix/AdobeStock

Freight rates for supertankers on the Mideast Gulf and U.S. Gulf routes to Asia have fallen to their lowest since mid-September as the coronavirus outbreak hit Chinese oil demand, ship brokers told Reuters.China's Sinopec Corp, Asia's largest refiner, and so-called "teapot" independent refineries have reined in operations in the face of plunging consumption."The market has gone back to what it was before the COSCO sanctions came in," one ship broker said, referring to U.S.

Evergy to Add 660MW Wind Energy

Image: Evergy

US-based utility Evergy has announced plans to add 660MW of wind energy to its portfolio and reduce carbon emissions by 80% below 2005 levels by 2050. The addition will bring the total amount of wind serving Evergy customers to 4,535 megawatts, making Evergy one of the top five wind energy companies in the United States.The energy from these wind farms will be used to support and expand Evergy’s Direct Renewables Program…

Annova LNG Sign Deal with Enbridge

Image: Annova LNG

Houston liquefied natural gas company Annova LNG has signed a 20-year supply deal with Enbridge, a Canadian pipeline company that owns a 10.5 percent stake in Annova's proposed export terminal.The precedent agreement with Enbridge Inc.’s Valley Crossing Pipeline LLC (VCP) would provide transportation for the still unsanctioned 6.5 million metric tons/year (mmty) facility, which was approved by federal regulators in November.Under the deal…

Offshore Wind: The Domino Effect

Matt Tremblay, SVP, Global Offshore, ABS

Matt Tremblay, SVP, Global Offshore, ABS, discusses the next hot growth market ... offshore wind. While the market grows, the question begs: Is the U.S. marine industry ready to meet demand?The American Bureau of Shipping convened a conference to discuss the pace and direction of the U.S. offshore wind market, including challenges and opportunities for maritime, offshore, subsea and logistics markets. Matt Tremblay, SVP, Global Offshore…

Osaka Gas Looks to Sell Spare LNG in Europe

© Mike Mareen / Adobe Stock

Japan's Osaka Gas has offered two liquefied natural gas (LNG) cargoes from the newly-commissioned Freeport LNG project in the United States for delivery into Europe, industry sources said.Mild weather in Japan and a weaker Chinese economy have helped to drag the global LNG market to multi-year lows and forced Asian sellers to seek alternative markets.Osaka Gas has offered the cargoes for delivery into Europe between July 5 and 13 and Nov.

China Can't Meet Its US Energy Commitments

© ymgerman / Adobe Stock

The more you delve into the details of China's commitment to buy an additional $52.4 billion in U.S. energy over the next two years, the more it becomes apparent the goal is unachievable, even with the best will in the world.As part of the "Phase 1" trade truce between Beijing and Washington, China undertook to buy energy over and above a $9.1 billion baseline of U.S. imports in 2017, with a split of an extra $18.5 billion…

Asia LNG Spot Prices Drop to Multi-year Low

© akiyoko / Adobe Stock

Asian liquefied natural gas (LNG) spot prices dropped to multi-year lows on Tuesday with at least one cargo being sold into Northeast Asia below the psychological barrier of $4 per million British thermal units (mmBtu).Gas prices are tumbling globally as new projects sanctioned when prices were higher ramp up output just as economic growth slows. A milder than usual winter in North Asia is also curbing demand.Low spot prices will particularly hit companies which purchase LNG through long-term contracts…

US Extends License for Chevron's Operations in Venezuela

© Andrei / Adobe Stock

The U.S. Treasury Department on Saturday renewed a license allowing Chevron, the last U.S. energy company operating in Venezuela, to continue working in the country until April 22.In January, the United States imposed sanctions on Venezuela's state-run oil company PDVSA in an effort to oust President Nicolas Maduro, though he remains in power. The Treasury issued Chevron a six-month license to operate, however, which has…

US Refiners Grab HSFO on Back of IMO 2020

© Fotos von Schiffen / Adobe Stock

U.S. refiners are scooping up cheap high-sulfur fuel oil for processing from Russia and the Baltic states as they take advantage of new shipping rules that have cut demand for the dirtier marine fuel, according to oil traders and shipping data.U.S. refiners Valero Corp, Chevron Corp and Phillips 66 have been buying HSFO, traders said, taking advantage of their complex operations to turn HSFO blended with crude oils into products like diesel…

Fire-Damaged Philadelphia Oil Refinery Heads for Auction

© skyNext / Adobe Stock

The fate of the largest East Coast oil refinery is set to be decided on Friday in an auction that could determine whether the Philadelphia plant is restarted or used for a different purpose for the first time in over a century.The refinery's owner, Philadelphia Energy Solutions, is scheduled to reveal the winning bidder on Wednesday during a hearing at the United States Bankruptcy Court for the District of Delaware, which will need to approve the sale.PES fell into bankruptcy on July 21…

Cenovus Energy Sets Out to Slash Emissions

(Photo: Cenovus Energy)

Canada's Cenovus Energy on Thursday unveiled plans to reduce per-barrel greenhouse gas emissions by 30% by the end of 2030, as the country's oil industry faces growing pressure from environmental activists.The Alberta-based integrated oil and gas company said it will spend an additional C$1.5 billion on businesses run by the country's indigenous communities.Opposition from environmental and indigenous groups have stalled…

Oil Hits $70 a Barrel

© Pavel Ignatov / Adobe Stock

Oil prices rose a further 2% on Monday, pushing Brent above $70 a barrel, as rhetoric from the United States, Iran and Iraq fanned tensions in the Middle East after a U.S. air strike which killed a top Iranian military commander.Brent crude futures soared to a high of $70.74 a barrel and was at $69.74 at 0940 GMT, up $1.14, or 1.66%, from Friday's settlement.U.S. West Texas Intermediate crude was at $63.92 a barrel, up 87 cents…

US Drillers Cut Oil Rigs

© zef art / Adobe Stock

U.S. energy firms reduced the number of oil rigs operating for the second straight week as producers follow through on plans to slash spending on new drilling.Drillers cut 7 oil rigs in the week to Jan. 3, bringing the total count down to 670, energy services firm Baker Hughes Co said in its closely followed report on Friday.In the same week a year ago, there were 877 active rigs.Even though the number of rigs drilling new wells has fallen in 2019, U.S. oil output has continued to increase.

Venezuela Alters Oil Royalty Formulas, Driven by IMO 2020

© Parilov / Adobe Stock

Venezuela has changed the formulas for calculating royalties energy companies pay the government to remove references to fuel oil and some crude grades, driven by stricter rules governing marine fuel emissions, according to a document seen by Reuters.A ban by the United Nations shipping agency, the International Maritime Organization (IMO), on the use of fuels with a sulfur content above 0.5%, aimed at reducing pollution…

Petrochemicals: Weak Margins Sweep Asia

© Andrei Merkulov / Adobe Stock

Asian petrochemical makers, who are unable to pass down sky-high feedstock costs, are resorting to run cuts or extending cracker shutdown periods to tie through the bad times.The gloom was evident across South Korea, Asia's top naphtha importer, as well as Southeast Asia as crude-derived naphtha premiums were recently either setting new records or were near record levels because of a supply crunch following drone attacks…

Oil on Track for Biggest Yearly Rise Since 2016

© unikyluckk / Adobe Stock

Oil fell on the last trading day of the decade on Tuesday but was still on track for monthly and annual gains, supported by a thaw in the prolonged U.S.-China trade row and Middle East unrest.Brent crude was down 74 cents at $65.93 a barrel by 1434 GMT. U.S. West Texas Intermediate (WTI) crude fell 82 cents at $60.86 per barrel.The volume of trade remained low as many market participants were away for year-end holidays.Brent has gained about 22% in 2019 and WTI has risen 34%.

Oil Prices Set for Biggest Yearly Rise Since 2016

© Pavel Ignatov / Adobe Stock

Oil rose on the last trading day of the decade on Tuesday and was on track for monthly and annual gains, supported by a thaw in the prolonged U.S.-China trade row and Middle East unrest.Brent crude was up 11 cents at $66.78 a barrel by 1143 GMT. U.S. West Texas Intermediate (WTI) crude rose 6 cents at $61.74 per barrel.The volume of trade remained low as many market participants were away for year-end holidays.Brent has gained about 24% in 2019 and WTI has risen 35%.