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Sonatrach and Saudi Aramco cut prices by 18% & 31% respectively.
Saudi Arabian state oil producer Saudi Aramco raised its official selling price for liquefied gas by 1% to 3% between June and July, while Algerian Sonatrach cut it from 18% to 31% because of a higher supply on the Mediterranean market. Saudi Aramco increased its June OSPs by $10 per metric ton, to $760 for propane And?by $20 per ton up to $820 for butane . LPG comes in two types: Propane and Butane. They have different boiling points. LPG is used primarily as fuel for cars and heating, as well as as a feedstock for other chemicals. Sonatrach has reduced its June propane OSP by $125 per ton, to $575 And for?butane?by $270 per ton, to $610 . Saudi Aramco’s OSPs serve as a reference when negotiating contracts to deliver LPG from the Middle East?to Asia-Pacific. Sonatrach’s?OSPs? are used as benchmarks in the Mediterranean and Black Sea regions, including Turkey. (Editing by Kirovan Donovan).
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Italy's CDP and China's State Grid to renew governance agreement in Italy energy network
Sources say that the Italian state lender CDP, and State Grid Corporation of China, are planning to renew their governance agreement in a?company managing Italy's major energy networks. This is despite Rome's concerns over Beijing's influence on these assets. Sources who asked not to be identified said that the pact will expire in November, but it will automatically renew if neither party uses the option to terminate it six months prior to the expiration date. CDP Reti is one of the most important state-backed Italian companies. It owns about a third?of Terna, and Snam, which operate Italy's gas and electricity grids. Rome's fears about Chinese influence over its key energy assets became apparent in November when Snam canceled plans to buy a stake in Germany’s largest independent gas distribution firm. According to reports at the time, the German 'economy minister' opposed the deal due to State Grid Corporation of China being an indirect investor in Snam. Rome and Berlin both aim to counter China's increasing industrial and political influence in Europe while also trying to maintain vital economic ties with Beijing, which are crucial for their respective industrial sectors. Cassa Depositi e Prestiti, an Italian state lender, sold the State Grid Corporation in China a 35% share in CDP Reti in 2014. CDP Reti owns 31,4% of Snam and 29,0% of Terna, as well as about 26% Italgas. It is Italy's largest gas distributor. Snam?also owns 11.4% of Italgas. Qinjing Shen is a representative from the Chinese state-owned company. She sits on the boards of Snam, Terna Italgas, and CDP Reti. He has a seat on three different boards, which gives him a good view of the Italian energy sector. This raises concerns in government circles about the Chinese shareholder's potential to impede the expansion plans. The golden power rules of Italy, which allow it to shield strategic assets, cannot be applied in the case CDP 'Reti as the renewal of a?governance agreement? falls outside of the scope of the legislation. Sources, however, emphasized that the pact limited the scope of China's State Grid's action over CDP Reti and therefore safeguarded Italy's interests in all three companies. (Additional reporting in Milan by Francesca Landini, edited by Gavin Jones).
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FedEx Freight set for market debut as spinoff nears completion
FedEx Freight, the spin-off of?FedEx Corp., will begin trading on the New York Stock Exchange Monday under the symbol FDXF. FedEx Freight is the largest provider of less than truckload services in the U.S. Citizens only. Fadi Chamoun, analyst at BMO Capital Markets, said recently that the company, as a newly-separated, pure-play, offers a significant margin improvement opportunity. However, this depends heavily on execution. Chamoun said that the improvement depends on management’s ability to?translate network advantages into better service quality, higher revenues per shipment and sustained operating ratio improvements. J.P. Morgan analyst Brian Ossenbeck stated that he values FedEx Freight lower than its rivals XPO and Saia, as well as Old Dominion Freight Line. "Given execution risks and?transition cost related to the spinning as well as persisting underperformance on service metrics and volume metrics", he said. FedEx Freight's Chief Financial Officer Marshall Witt stated in April that the company expects an?average growth in revenue of 4%-6% over the medium term. Witt said that the company expects a core profit increase of between 10% and 12% in the medium term. Witt stated that investments in modernizing the business and separating it from FedEx would dampen the 'profits' in the short-term, but cost controls, automation, and the addition of more profitable cargoes will increase margins over the long term. Reporting by Lisa Baertlein and Nandan Mandayam, both in Bengaluru. Editing by Shinjini Giuli.
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Kremlin: French seizure a tanker bordering on piratery
The Kremlin said on Monday that the seizure by France of a?oil?tanker named 'Tagor' was 'illegal, and bordered on piratery. On Sunday, the French navy diverted a vessel that was sailing from Russia. Emmanuel Macron, the French president, said that the tanker was under international sanctions and the operation was conducted in accordance with maritime law. Dmitry Peskov, the Kremlin's spokesperson, said that Russia "didn't agree" with international law being followed. Peskov said that such actions bordered on international piracy. He added that Russia would respond to the incident by taking measures to ensure?safety? of cargo. A Kremlin official said in February that Russia would 'deploy its Navy to prevent the seizure of their vessels' and may retaliate if Russian ships are taken. Reporting by Dmitry Antonov; Writing by Alessandra Prentice; Editing by Guy Faulconbridge
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Ukraine strikes Russian energy sites: What was hit?
Kyiv intensified its attacks on Russian energy installations in recent months, as the peace talks that were supposed to end the Ukraine conflict failed to make any progress. The following is a list of recent attacks and their impact, in chronological order. YAROSLAVL According to Volodymyr Zelenskiy, Ukrainian forces attacked the Russian oil refinery at Yaroslavl on May 25. This was about 700 km (435 mi) away from the Ukrainian border. The refinery can process 15 million metric tonnes per year or about 300,000 barrels a day. SYZRAN On May 21, the Ukrainian military and President Zelenskiy announced that Ukrainian drones had struck Rosneft's?Syzran refinery, which is owned by Rosneft in the Samara area. Two industry sources reported that the refinery stopped operations following an attack on a primary processing unit. The oil refinery had been suspended following drone attacks on April 18, The refinery can process 8.5 million tonnes per year or 170,000 barrels a day. According to industry sources, in 2024 it will process 4.3 million tonnes of crude oil into 800,000 tonnes of gasoline, 1,5 million tons diesel, and 700,000 kilograms of fuel oil. TUAPSE Ukraine attacked a Russian refinery at the Black Sea port Tuapse, the Ukrainian general staff announced on May 27. Officials said that a drone attack on April 28 caused a major oil refinery fire. The facility, which exports the majority of its products, had to stop operations. The plant produces fuel oil, naphtha and vacuum gasoil. Its capacity is around 12 million tonnes per year, or about 240,000 barrels a day. The Ukrainian General Staff announced on May 20 that Ukraine's military had struck an oil refinery in the Nizhny Novgorod Region of Russia near Kstovo, and specifically its primary oil-processing unit. Two industry sources confirmed that NORSI, Russia’s fourth largest?oil refinery and owned by Lukoil, also halted operations on 5 April following an attack by a Ukrainian drone. NORSI is the second largest producer of gasoline in Russia. It can process up to 16 million metric tonnes of oil each year or about 320,000 barrels a day. MOSCOW Two industry sources reported on May 19 that the processing of oil at a Moscow refinery ceased after an attack by a Ukrainian drone. On May 17, Moscow Mayor Sergei Sobyanin said that although 12 people had been injured in the attack, the "technology" of the refinery was not damaged. This compact refinery in Kapotnya, a district of the capital, has an annual capacity of 11 million tons of crude oil. RYAZAN Two industry sources reported on May 19 that the Ryazan oil refining plant, which represents almost 5% of total refining volume in the country, had stopped processing after a drone attack by Ukraine. According to industry sources, the refinery will process 13.1 million metric tonnes of crude oil by 2024. It will produce 2.2 million tons gasoline, 3.4 millions tons diesel, and 4.3million tons fuel oil. ASTRAKHAN The local governor reported that debris from a drone strike caused an fire at a gas-processing plant on May 13, in the southern region Astrakhan. The plant can produce 12 billion cubic meters of gas per year and 3 millions tons of stable condensate. It produces diesel, gasoline, and liquefied oil gases. Two industry sources reported that the Perm oil refinery in Russia halted production after a drone strike on May 7 damaged equipment and caused a fire. The refinery will process around 12.6 million metric tonnes of oil in 2024. This is equivalent to 250,000 barrels of oil per day. It will produce 2 million tons gasoline, 5.3 millions tons diesel, 700,000.000 tons coke, and 200,000 litres of fuel oil. NOVOKUIBYSHEVSK Two industry sources reported that the primary oil processing was stopped at Rosneft's Novokuibyshevsk refinery on April 18, following a drone attack by Ukraine. Industry sources say that in 2024 it will process 5.74 million metric tonnes of crude oil and 1.10 million tons each of motor gasoline, diesel fuel, and fuel oil. Ukraine's military confirmed that it carried out an attack on the Bashneft Novoil oil refinery in Russia, more than 1,400 km (870 miles) away from the Russia/Ukraine border on April 2. The plant can process up to 7 million tonnes of oil per annum. KIRISHI After?Ukrainian attacks on drones, the Kirishi oil refinery stopped processing its products at the end March. Kirishi produced 2,000,000?tons gasoline, 7.1,000,000 tons diesel, 6.1,000,000 tons fuel oil, and 600,000. UST-LUGA PROCESSING PLLAN Three market sources reported on March 27, that Novatek Energy Company suspended the processing of gas condensate and export loadings of naphtha at its Ust-Luga Complex after drone attacks resulted in an fire. Three processing units of the Ust-Luga Complex, each with 3 million tons per year capacity, refine stable condensate to light and heavy naphthas, jet fuels, ship fuel oils and gasoils. According to company data, in 2025?the complex will have processed 8 million tonnes of gas condensate. PORTS/TANKERS Authorities in Krasnodar said that a fire broke out after an attack by a Ukrainian drone at Temryuk, a port located in southern Russia. Mikhail Yevrayev, the governor of Russia's Yaroslavl Region, said that fuel storage facilities also caught fire on May 29 following an attack by a Ukrainian drone in Russia. Ukraine attacked Russia's port on the?Baltic and Black Seas, including Primorsk, oil tanks and military ships, on May 3. After a drone strike on April 23, a fire broke out at an oil pumping station owned by Transneft that supplies crude to Russia's biggest export terminal, the Baltic port Primorsk. An official of Ukraine's SBU said that on April 21, Ukrainian drones hit an oil pumping and dispatch facility located in Russia's Samara Region. In April, Ukrainian drones started a fire in the Sheskharis Oil Terminal in Russia. Primorsk is one of Russia's biggest export gateways and can handle up to 1 million barrels a day. In March, it lost 40% of its storage capacity in a drone attack by Ukraine. Joe Bavier (Reporting and Editing)
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SOCAR, TotalEnergies, ADNOC, BOTAS sign Absheron phase two gas sales agreement
SOCAR, TotalEnergies and ADNOC International have signed a gas purchase & sales agreement for?gas produced in Azerbaijan from the Absheron field. On the sidelines Baku Energy Week, SOCAR President Rovshan 'Najaf was joined by BOTAS Chairman Abdulvahit 'Fidan, TotalEnergies Senior Vice President for Exploration and?Production Europe Martino Panizzi and Mohammed Al Aryani President - International Gas of XRG. The final investment decision for the Absheron II project will be made this year. In 2029, annual gas production will begin and reach a level of over 4 billion cubic meters (bcm). A SOCAR official stated that around half of the production is expected to be delivered?to?the?Turkish Market under the agreement. The Absheron gas-condensate field is one of Azerbaijan’s largest fields. The second phase of development would increase Azerbaijan’s gas export potential and contribute to regional energy safety. Reporting by Nailia bagirova, Editing by Can Sezer & Darin Butler
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The US-Iran trade dispute has impacted most Gulf markets.
Early trade on Monday saw most Gulf stock exchanges retreat after Iran and the U.S. traded strikes. Israel also ordered its troops to advance further into Lebanon in its battle with Tehran-backed Hezbollah. The U.S. said it had struck Iranian military sites at the weekend. Iran's Revolutionary Guards responded by saying they had attacked a U.S.-based base. This is the latest exchange in negotiations to end a three-month old?war. The fighting that followed the Israel-Lebanon talks in Washington on Friday tempered hopes that U.S. officials and Iranians would soon announce an extension of their ceasefire. Saudi Arabia's benchmark Index fell 0.1% due to a 0.5% drop in Al?Rajhi bank. Qatar Islamic Bank's 2.2% decline was the largest among its constituents. According to Financial Times, in Abu Dhabi the index fell 0.1%. First Abu Dhabi Bank, the largest lender, dropped 2% as it has exposure to properties linked to mortgage lender Market Financial Solutions. The lender didn't immediately respond to a comment request. Dubai's main stock index traded 1.1% higher than the trend, led by Salik toll operator rising 3.7%. Trump announced 'on Friday that he will soon make a decision on a proposal to extend the ceasefire agreement with Iran. Despite the fact that the two countries appear to still be at odds on important 'issues which have been at the heart of the conflict, the deal is expected to be finalized in the next few days. The oil price rose by more than 2 percent in the early hours of trading on Monday. This raised concerns about inflation and rate hikes. (Reporting by Ateeq Shariff in Bengaluru)
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Minister: Turkey to build TANAP-style electric corridor with Azerbaijan
Alparslan bayraktar, Turkish Energy Minister said that Turkey and Azerbaijan will expand their energy partnership beyond oil and gas to include electricity transmission and green energy corridors. Bayraktar, speaking at the Baku Energy?Week opening, said that Turkey, Azerbaijan and Georgia,?Bulgaria, and Southeast European countries are working?to enhance regional energy connectivity. Bayraktar stated that "we are going to create a 'electricity version' of TANAP", referring to the Trans-Anatolian Natural Gas Pipeline, which carries Azerbaijani natural gas to Europe via Turkey. The Turkish government plans to upgrade its transmission and distribution network by $30 billion over the next decade in order to support a higher?renewable energy output, as well as nuclear power. Ankara plans to upgrade its electricity transmission links with Georgia,?Azerbaijan and Bulgaria in order to trade excess energy. (Reporting and editing by Daren Butler; Nailia Bagirova)
India banks are evaluating Adani Group direct exposure after US charges, sources say
Indian loan providers, consisting of State Bank of India, are reviewing their direct exposure to Adani Group and taking a look at whether they require to tighten their due diligence when providing brand-new loans to them, after the U.S. accused Chairman Gautam Adani of bribery, eight lenders said.
Bank of India, Union Bank, ICICI Bank, Canara Bank, IDBI Bank and RBL Bank, which have a relatively smaller direct exposure to the group, are also carrying out a comparable exercise.
An evaluation would not necessarily entail any modification in the lenders' credit technique with concerns to the group.
A regulatory source aware of the advancement said from a. banking system perspective there is no requirement to panic as no. entity at this moment is over exposed to the group.
The Reserve Bank of India did not reply to an email. looking for remark.
SBI has the largest direct exposure to the Adani Group amongst Indian. banks, with approved loans of 338 billion rupees ($ 4 billion),. according to IIFL Securities, a brokerage.
SBI will not stop lending to continuous Adani tasks that are. nearing conclusion, sources said, but included the bank will. workout caution while disbursing loans to ensure all terms and. conditions are being fulfilled by the group.
None of the bankers wished to be identified since they. were not authorised to speak to the media. SBI, named lenders. and the Adani Group did not immediately respond to an email. seeking remark.
(source: Reuters)