Eni, Pequiven restart Venezuelan methanol plant

Market: Natural gas, Petrochemicals
09/09/20

Italy's Eni and Venezuelan state-owned Pequiven have restarted methanol production at the Supermetanol plant, according to industry sources.

The 800,000 t/yr plant, in the Jose industrial complex of eastern Venezuela, had been down since the second quarter of 2019 and was gradually brought back on line in early September after repairs to a leaky natural gas line and a steam valve. A boiler installed at an idle adjacent octane plant is operating to support Supermetanol.

The current level of production at the plant is unclear. Eni and Pequiven each holds 50pc of Supermetanol, which was built in the early 1990s and started commercial operations in 1995.

Neither Pequiven nor Eni responded to requests for comment. An official reached by telephone at the plant declined to comment.

Supermetanol is one of two methanol production complexes at Jose that use natural gas feedstock supplied by PdV Gas, a subsidiary of Venezuela's state-owned oil company PdV.

Most other Jose plants, including three of four heavy crude upgraders led by PdV, are not in service, leaving methanol as a stand-out exception in Venezuela's otherwise collapsed industrial base.

The other methanol producer at Jose is Mitsubishi-operated Metor, which recently resumed operations at its two plants after a pandemic-related shutdown of around one month. The Metor complex has capacity to produce 1.6mn t/yr of methanol, mainly for export.

The main shareholders in Metor are Mitsubishi and Mitsubishi Gas Chemical with 23.75pc stakes each. Pequiven holds 37.5pc.

Eni on the spot

Supermetanol is among Eni's lesser known Venezuelan assets. The Rome-based company has drawn recent attention as PdV's minority partner in PetroSucre, an offshore oil development where the faltering Nabarima floating storage vessel is tethered. Eni has said it is awaiting clearance from US sanctions authorities to transfer crude out of the Nabarima to allow for repairs.

Eni is also a steady producer of Venezuelan crude as payment for its supply of natural gas from the Perla offshore field to PdV, with diesel provided in return as a way to settle the transactions. Eni's Perla partner is Spain's Repsol, which engages in similar diesel transactions to recover debts from PdV. The transactions are permitted under an exemption to the sanctions, but the US is seeking to close the exception by the end of October.

Among Eni's other Venezuelan assets is a 40pc stake in the Junin 5 block in the Orinoco heavy oil belt.

By Patricia Garip

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21/11/24

Cost of government support for fossil fuels still high

London, 21 November (Argus) — The cost of government measures to support the consumption and production of fossil fuels dropped by almost a third last year as energy prices declined from record highs in 2022, according to a new report published today by the OECD. But the level of fiscal support remained higher than the historical average despite government pledges to reduce carbon emissions. In an analysis of 82 economies, data from the OECD and the IEA found that government support for fossil fuels fell to an estimated $1.1 trillion in 2023 from $1.6 trillion a year earlier. Although energy prices were lower last year than in 2022, countries maintained various fiscal measures to both stimulate fossil fuel production and reduce the burden of high energy costs for consumers, the OECD said. The measures are in the form of direct payments by governments to individual recipients, tax concessions and price support. The latter includes "direct price regulation, pricing formulas, border controls or taxes, and domestic purchase or supply mandates", the OECD said. These government interventions come at a large financial cost and increase carbon emissions, undermining the net-zero transition, the report said. Of the estimated $1.1 trillion of support, direct transfers and tax concessions accounted for $514.1bn, up from $503.7bn in 2022. Transfers amounted to $269.8bn, making them more costly than tax concessions of $244.3bn. Some 90pc of the transfers were to support consumption by households and companies, the rest was to support producers. The residential sector benefited from a 22pc increase from a year earlier, and support to manufacturers and industry increased by 14pc. But the majority of fuel consumption measures are untargeted, and support largely does not land where it is needed, the OECD said. The "under-pricing" of fossil fuels amounted to $616.4bn last year, around half of the 2022 level, the report said. "Benchmark prices (based on energy supply costs) eased, particularly for natural gas, thereby decreasing the difference between the subsidised end-user prices and the benchmark prices," it said. In terms of individual fossil fuels, the fiscal cost of support for coal fell the most, to $27.7bn in 2023 from $43.5bn a year earlier. The cost of support for natural gas has grown steadily in recent years, amounting to $343bn last year compared with $144bn in 2018. The upward trend is explained by its characterisation as a transition fuel and the disruption of Russian pipeline supplies to Europe, the report said. By Alejandro Moreano and Tim van Gardingen Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Investment funds’ net long on Ice TTF reaches new high

21/11/24

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21/11/24

Investment funds’ net long on Ice TTF reaches new high

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Cop: Talks in Baku torn between mitigation and finance

21/11/24

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21/11/24

Cop: Talks in Baku torn between mitigation and finance

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Cop: EU, four countries commit to 1.5°C climate plans

21/11/24

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21/11/24

Cop: EU, four countries commit to 1.5°C climate plans

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LNG diversions to Europe reach double digits

19/11/24

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19/11/24

LNG diversions to Europe reach double digits

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