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The oil loadings at Russia's western port ports fell by 6% between April 1-15
Data from trade sources and calculations show that oil loadings in Russia's western port over the period April 1-15 will fall by 125,000 barrels a day (bpd), compared to the same period last March, to around 1.86 million bpd. Calculations showed that the daily decline in exports and transits of Urals, KEBCO, and Siberian Light grades of oil from Primorsk to Ust-Luga, Novorossiisk and Novorossiisk during the first 15 April days will be 6%. As some refineries are undergoing repairs following drone attacks in March and February, Russia's oil output in April may fall below the March level. This means that more crude oil will be allocated to domestic plants in advance of the peak season demand for motor fuels. Traders said that the Russian oil loadings may pick up in the second half April, eventually reaching March levels, and even beyond. Calculations based on LSEG data and other sources show that Russia's total offline primary crude oil refining capability in April could fall by 320,000 bpd, to 2.137 millions metric tons. This is down from 3.58million tons in March. Reporting by Kim Coghill; Editing by Kim Coghill
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Barrick's Reko Diq Project in Pakistan seeks new funding
Barrick Gold’s Reko Diq gold and copper project in Pakistan plans to secure up to $2 billion from international lenders. Term sheets will be signed in early Q3, according the project director of the mine. The funding will be used to support the development and expansion of Reko Diq, one of the largest copper-gold deposits in the world. It is expected that the mine can generate free cash flows of $70 billion, as well as operating cash flows of $90 billion. The project is jointly owned by Barrick Gold, the government of Pakistan, and the government of Balochistan. Multiple lenders are currently in discussions with the project's financing team to discuss phase one, which will start production by 2028. Tim Cribb said that the International Finance Corporation (IFC) and International Development Association are looking to invest $650 million in the Reko Diq mine. Cribb said that the mine was also in discussions with the U.S. Export-Import Bank for a $500 million to $1billion in financing as well as 500 million from institutions of development finance including the Asian Development Bank Export Development Canada and Japan Bank for International Cooperation. Cribb said, "We anticipate closing the term sheet either in late Q2 early Q3." He said that railway financing discussions are currently underway with IFC and other financiers, with estimated infrastructure costs of $500-800 millions, with approximately $350 million being the initial cost. Recent feasibility studies have upgraded the scope of the project. Phase one throughput has increased to 45 million tonnes per year from 40 millions, and phase 2 throughput to 90 million tons from 80 million. A revised mine life of 37 years has been set due to increased throughput. However, the company believes that unaccounted for minerals could extend this to 80 years. The cost for phase one was also revised up to $5.6 billion, from $4 billion. Over the next 10 years, the World Bank will invest $2 billion per year in Pakistan's infrastructure. Cribb stated that the lenders will be expected to sign offtake agreements with countries such as Japan, Korea and Sweden, who are seeking copper supplies to supply their industries. Reporting by Ariba Sharif in Karachi, editing by David Evans
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The German LNG import terminals
Since the invasion of Ukraine by Russia in 2022, Germany has sought to import liquefied gas (LNG), to replace Russian gas piped to Germany. The first step was to deploy floating storage units (FSRUs), which receive seaborne LNG. Longer term, it planned shore-based regasification facilities and terminals to import and manufacture ammonia and clean hydrogen. Here are the latest updates: MUKRAN Gascade's OAL pipeline supplies the terminal on Ruegen Island in Baltic Sea with LNG. The private operator Deutsche ReGas began a three-month bid round on April 4 to expand Mukran’s long-term capacity for regasification by offering 5 bcm extra per year between 2027 and 2043. ReGas currently only uses the FSRU Neptune of Norwegian operator Hoegh at Mukran. ReGas had cancelled a second FSRU in February due to low utilisation. ReGas said that it is struggling to compete with the fees offered by DET, the state-owned Deutsche Energy Terminal GmbH, to attract cargoes to terminals in the North Sea, which are more west-lying and under DET's supervision, while German LNG sales are generally slow. It also stated that it would stick to its plans of restarting a 2nd FSRU, and restoring Mukran’s full capacity (13.5 bcm per year) by 2027. LUBMIN ReGas signed a 2024 agreement with Hoegh to convert the Baltic Sea port (a precursor of Mukran) into an ammonia/hydrogen terminal. Hanseatic Energy Hub took a final decision in 2024 to invest in a terminal that is ammonia ready and will be located at the Elbe River inland port. The terminal should start operating in 2027. The terminal will cost approximately 1 billion euro ($1.09 billion). The employment of the FSRU Energos Force, which was to last until 2027 before the onshore terminal starts operations, has been delayed until further notice. This is because DET and HEH have cancelled their contracts after they could not resolve disputes over construction schedules and payment. WILHELMSHAVEN Utility Uniper launched Germany’s first FSRU operations, Wilhelmshaven 1 on the North Sea in 2022. Uniper has plans to build a 200-MW electrolyser that will be powered by local wind energy and a land based ammonia reception terminal. DET has stated that there are plans to build a second FSRU in Wilhelmshaven, but it did not specify a date for commissioning. BRUNSBUETTEL Brunsbuettel FSRU began operations in 2023 along the North Sea Coast. It was initially chartered by RWE and operated by its trading arm, before being handed over to DET. The facility is a precursor to a land-based Liquefied Natural Gas (LNG) plant that has been approved for 40 million euro of state assistance. The terminal could begin operations by the end of 2026 when an adjacent ammonia facility, which was recently inaugurated, could also be operational. $1 = 0.9147 euro (Reporting and editing by Vera Eckert, Aidan Lewis and Jason Neely).
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Macquarie has halted the sale of offshore wind companies due to lack interest, according to sources
Two people familiar with the process have confirmed that Macquarie, a major Australian bank, has canceled the sale of a large offshore wind developer due to lukewarm interest. This is despite the Trump administration's opposition to renewable energy sources. The global tariff war has caused the markets to be roiled, and dealmaking has been halted. Macquarie hired advisers to help find a buyer last year for Corio Generation. Corio Generation oversees a 25 gigawatt pipeline of offshore wind project in Europe, Asia-Pacific and the Americas. Sources spoke under condition of anonymity as they were not authorized to speak publicly. It will instead downsize the project. Corio Generation, refocusing their global operations due to the challenging market conditions of the offshore wind sector is prioritising the development of smaller portfolios of projects that have the most clear route to construction," said a Corio spokesperson. This will also require that the organization be restructured to reflect this change in strategy. The spokesperson said that they are currently discussing the matter with their project partners as well as staff members who could be affected by this change. Macquarie's spokesperson declined to comment. Offshore wind has been a challenging market with many projects requiring revaluation due to escalating construction costs, rising interest rates and supply-chain snags. The construction of offshore wind farms has slowed in the U.S. Energy companies, especially since U.S. president Donald Trump stopped new offshore wind leasing in his first day in the Oval Office back in January. Corio, headquartered in London, is a Macquarie Asset Management portfolio company with offshore wind farms located in Britain, Europe and the Asia-Pacific Region, as well as the United States, Brazil, and the United States. The majority of Corio’s projects are still in the development phase, and require billions of dollars of investment to become operational. Samuel Leupold replaced Jonathan Cole as CEO of Corio Generation earlier this year. (Reporting and editing by Anousha Saoui, David Evans and Andres Gonzalez)
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South Korea's NOFI purchases about 65,000 tonnes of feed wheat from traders
European traders reported that the leading South Korean animal feed manufacturer Nonghyup Feed Inc. (NOFI) bought about 65,000 metric tonnes of animal feed wheat at an international auction on Tuesday. The total cost of the consignment was estimated at $263.49 per ton, including freight. In addition, a surcharge of $1.50 per ton for port unloading was added. Cargill is believed to have been the seller. The wheat arrived in South Korea five days after the original date of arrival. The reports reflect the opinions of traders, and it is possible to estimate prices and volume later. Wheat can be purchased from all over the world, except for Russia, Argentina and Pakistan. Wheat sourced from Russia or Ukraine cannot be loaded at ports on the Black Sea, but wheat from ports on the Russian Far East can. Shipment is required between July 8 and 27 if the source of the product is the U.S. Pacific Northwest Coast, Australia, or the Canadian West coast. If you are sourcing from the U.S. Gulf Coast, Europe, or the Canadian East coast, the shipment period is between June 18 to July 7. Only 55,000 tonnes are required if the origin is Australia. Between June 3 and 22 should be the shipping date for European wheat that is routed through the Cape of Good Hope. This is increasingly done to avoid attacks against ships in the Red Sea. Shipments of wheat from South America are to be made between June 13th and July 2nd. When shipping wheat from South Africa it is best to ship between June 23 and July 12 Reporting by Michael Hogan, Editing by David Goodman
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Sources say that India will formalise incentives to recycle critical minerals this year.
Two sources familiar with the matter have confirmed that India will launch incentives to encourage the recycling of 24 minerals, including lithium and cobalt this year, in order to secure the minerals required for the green energy transition. India has identified 24 minerals that are strategic and crucial to its efforts in meeting clean energy goals, and moving towards net zero greenhouse gases emissions by 2070. The government has set aside 15 billion rupies for recycling these minerals as part of a 163 billion rupies investment to develop the vital minerals sector. Sources declined to identify themselves as details were not available. According to one source, the money will be spent over a period of four to five years. This should be enough to jumpstart the industry. One source said that the scheme would help expand India's recycling capacity of lithium-ion battery from its current 75,000 metric tonnes a year. In order to increase availability, the government abolished in February the customs duties on waste and scrap relating to a dozen essential substances, including lead, cobalt, zinc, and cobalt-powder, as well as batteries made of lithium-ion. India wants to reduce its dependence on fossil fuels by encouraging the production of electric vehicles. In 2024, EV sales in India accounted for only 2.5% of 4.3 million vehicles sold. However, they were up by 20% compared to just 5% in the total car market. Analysts predict that sales will double in 2025 to around 200,000, mostly due to new launches.
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South Korea's NOFI offers up to 60,000 T of feed wheat
European traders reported on Tuesday that the leading South Korean feedmaker Nonghyup Feed Inc. has launched an international tender for up to 60,000 tons of animal feed grain. The deadline to submit price offers for the tender is also Tuesday April 8. Around August 10, South Korea is expecting the wheat to arrive. The wheat can come from anywhere in the world, except for Russia, Argentina and Pakistan. Wheat originating from other sources cannot be loaded at the Black Sea ports of Russia and Ukraine, but can be loaded from Russian Far Eastern ports. Shipment is required between July 8 and 27 if the source of the product is the U.S. Pacific Northwest Coast, Australia, or the Canadian West coast. If you are sourcing from the U.S. Gulf Coast, Europe, or the Canadian East coast, the shipment period is between June 18 and July 7. The shipping of European wheat via the Cape of Good Hope is increasingly being done to avoid attacks against ships in the Red Sea. This should take place between June 3 and June 22. Shipping of wheat from South America or South Africa should take place between June 13 and July 2, respectively. The offers are being sought as outright costs per ton and freight included, or as a premium over Chicago September wheat contracts. (Reporting and editing by Louise Heavens, Michael Hogan)
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Europe has just experienced the warmest March ever recorded
Scientists from the European Union said that temperatures in Europe reached unprecedented heights as a result of climate change, and Europe had its warmest march since records began. The EU's Copernicus Climate Change Service C3S said that last month, globally, was the second warmest March ever recorded. Only March 2024 will surpass it, according to a monthly bulletin. March was the latest in a series of extreme heat. In 20 of the 21 months prior to this, temperatures were higher than 1.5 degrees Celsius above pre-industrial levels. The planet experienced its hottest year ever in 2018. The average global temperature in March was about 1.6 degrees Celsius warmer than it was in pre-industrial time. According to climate scientists, the main cause of climate change is greenhouse gases from fossil fuel combustion. Samantha Burgess is the strategic lead for the European Centre for Medium-Range Weather Forecasts (C3S), which operates the C3S Service. She noted that Europe experienced extremes of both heavy rainfall and drought. Burgess, a Burgess spokesperson, said that Europe experienced "many areas experiencing the driest march on record" and other areas their wettest mars on record in at least 47 years. Climate change makes some areas drier and can exacerbate droughts by increasing evaporation and drying out the soil and vegetation. The warming of our planet can also lead to heavy rains that cause flooding. This is because the warmer air contains more moisture. Storm clouds will therefore be "heavier", before they finally break. C3S reported that the Arctic sea ice reached its lowest extent for a March ever in 47 years of satellite data. C3S said that the previous three months also had a record-low for their respective month. C3S temperature records date back to 1940 and are cross-checked against global temperature records dating back to 1850.
China's Nov crude oil imports rebound on lower prices, stockpiling
China's petroleum imports jumped in November from a year earlier for the first annual growth in seven months, information showed on Tuesday, as lower prices of Middle East supplies and stockpiling need enhanced purchasing.
The world's leading petroleum buyer took in 48.52 million metric heaps last month, information from the General Administration of Customs showed, up 14.3% from 42.45 million heaps a year previously and comparable to about 11.81 million barrels daily.
Everyday typical imports are the highest because August 2023 and up from a low base in November 2023 of 10.33 million bpd.
In spite of the rebound, year-to-date imports were 1.9% lower, possibly pointing to a decrease for the whole of 2024. A. decline from 2023 would mark the 3rd annual fall in the past. five years after pandemic-triggered drops in 2021 and 2022.
Refiners in November bought more oil from Saudi Arabia and. Iraq following sharp cuts in the main selling prices,. offsetting a few of the decrease in imports of Iranian oil since. of reduced loadings in October.
Loadings at export terminals, including Iran's Kharg Island. hub, had actually dropped substantially in October from September, with. ship owners worried about possible Israeli attacks on Iranian. oil facilities, according to tanker trackers Kpler and Vortexa.
China's most recent refiner Shandong Yulong Petrochemical ramped. up a 200,000 bpd crude system to around 90%. Yulong Petrochemical. is likewise going for trial runs on a 2nd system of the same size. as early as January.
The new refinery's increased runs and China's problem of an. extra petroleum import quota of a minimum of 5.84 million loads.
(source: Reuters)