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US Gulf producers curb operations before storm: Update

  • Market: Crude oil, Natural gas
  • 09/09/24

Adds latest NOAA forecast data, BP update.

Oil companies started to evacuate workers and halt some operations in the US Gulf of Mexico ahead of an expected hurricane later this week.

Tropical storm Francine, which is forecast to strengthen to hurricane status as it moves north toward the Texas and Louisiana coasts by mid-week, threatens an offshore region that accounts for about 15pc of US crude output and 5pc of US natural gas production.

Shell said it paused some drilling operations at the Perdido and Whale platforms, located about 190 miles south of Houston, and is withdrawing non-essential workers from its Enchilada/Salsa and Auger facilities.

ExxonMobil said all staff had been transported off the Hoover platform, located about 200 miles south of Houston, and operations shut-in.

And Chevron said it is evacuating non-essential workers from its Anchor, Big Foot, Jack/St. Malo and Tahiti facilities, though production from company-operated assets remains at normal levels. Those facilities are located about 280 miles south of New Orleans.

"We continue to supply our customers at our onshore facilities, where we are following our storm preparedness procedures and paying close attention to the forecast and track of the storm," Chevron said.

So far no major problems are reported for BP's offshore facilities in the region.

Francine is forecast to approach the Louisiana and upper Texas coast on Wednesday, according to the National Hurricane Center. In a 2pm ET NHC advisory, the storm was about 450 miles south-southwest of Cameron, Louisiana, with maximum sustained winds of 60 mph.

Strengthening is expected over the next day and Francine is forecast to be a Category 1 hurricane, with winds of 85mph, on Wednesday evening, when it is expected to make landfall along the Louisiana coast.


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25/03/25

Energy security tops Rubio's Caribbean visit agenda

Energy security tops Rubio's Caribbean visit agenda

Houston, 25 March (Argus) — Energy security is the "big opportunity holistically" of US secretary of state Marco Rubio's planned visit this week to Jamaica, Guyana and Suriname, US special envoy for Latin America Mauricio Claver-Carone said. The island nations that are net importers of crude and other energy products have a chance to "turn the page" to improve energy security and reduce prices, the envoy said today in a state department briefing to press. The trip comes after the US said this week it would impose a 25pc discretionary tariff on imports from countries that buy Venezuelan crude. Several nations in the past received crude from their South American neighbor through its PetroCaribe aid program which is largely defunct, other than shipments to Cuba. Trinidad has also sought to develop cross-border natural gas fields with Venezuela to boost its flagging production, but the US announcement further complicates this plan. "Along with a lot of the challenges posed with Venezuela, we're deeply committed to working with Trinidad to figuring out how to re-energize ... those natural gas opportunities," Claver-Carone said. Booming oil producer Guyana in turn has faced a border dispute with Venezuela, and the US hopes to discuss "binding security cooperation" to solve this problem during Rubio's visit. Along with Guyana's neighbor Suriname, which hopes to launch offshore crude production by 2028, the outlook for the region to increase energy production could end its "huge Achilles' heel to its economic development and security," Claver-Carone added. Rubio will also discuss security, including improving conditions in Haiti, illegal migration and arms and drug trafficking during his visits on Wednesday and Thursday. By Carla Bass Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Low snowpack could support Italian summer gas burn


25/03/25
News
25/03/25

Low snowpack could support Italian summer gas burn

London, 25 March (Argus) — Low snowpack and hydro reserves in Italy may increase demand for gas-fired plants this summer, in turn driving up power-sector gas burn on days when renewable output is weakest. Italian thermal-fired plants — mostly gas fired — accounted for 51pc of the country's generation mix in the summers of 2020-24, while run-of-river installations, pumped-storage plants and hydroelectric dams accounted for 19pc and solar, wind and other sources provided 31pc. Italian power-sector gas demand averaged 61.5mn m³/d. Italian gas-fired plants compete directly against programmable hydroelectric dams for both the day-ahead and ancillary power markets, so if overall electricity demand this summer remains steady on the year, gas-fired plants stand to gain a greater share of the generation mix than in years when hydro output was stronger. Unseasonably hot weather driving unusually high use of electric-powered air conditioning this summer would further increase scope for Italy's gas-fired plants to run. The estimated water content of snow on Italian mountains as of 8 March — the latest available data — was the lowest for that date since at least 2011 and was almost 57pc below the 2011-23 average for that time of year, according to Italian meteorological association Cima. Snowpack last year also dipped below the 2011-23 average in January-March before late-season precipitation pushed levels back above median levels in April-July. At the same time, water reserves at Italian hydroelectric dams have been well below historical averages this year. Reserves equal to 2.08TWh of power generation as of 17 March — the latest available data — were the third lowest for that date since 2015 and a full 10pc below the 10-year average for that time of year. Looking ahead, following months of predominantly dry weather punctuated by occasional bouts of heavy showers, long-term weather forecasts this week predicted slightly above-average rainfall over the rest of March and throughout April in Milan, around which much of the country's hydro capacity is located. And during that time, at least some rain was forecast to fall on all but one day, which would provide a far steadier influx of water into rivers. That said, Italian renewable generation capacity — particularly solar — is poised to continue rising in the coming months, likely boosting output from those technologies on the year in April-September and restricting demand for dispatchable gas-fired and hydroelectric dams alike. Total Italian PV solar capacity of 37.9GW at the start of March was 20pc higher on the year, suggesting potential for a proportional increase in generation of that type in April-September compared with summer 2024. Italian PV solar panels and on-site renewable installations at homes and businesses, the vast majority of which are solar-based, generated an average of 8GW each day in summer 2024, covering 26pc of all generation nationwide. By Ilenia Reale and Jeff Kuntz Gas and hydro output, hydro reserves GW, TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Dangote to hit full operating capacity in Apr: Source


25/03/25
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25/03/25

Dangote to hit full operating capacity in Apr: Source

London, 25 March (Argus) — Nigeria's independently-owned 650,000 b/d Dangote refinery is commissioning its alkylation unit, which will enable it to run its crude distillation unit (CDU) at operating capacity "some time next month", according to a source with knowledge of the matter. The source said CDU capacity is 550,000 b/d currently, although vessel tracking data suggest it is running some way below that. Crude arrivals at the refinery to date in March have fallen to between 175,000-235,000 b/d, according to preliminary data from vessel trackers Kpler and Vortexa, from 405,000 b/d in February . Throughput hit a high of 433,000 b/d in December, according to Kpler. The alkylation line, which produces high octane alkylate for gasoline blending, is the last of Dangote's secondary units to come online. Argus Consulting puts it at a nameplate capacity of 27,000 b/d. Other secondary units could be utilised at their maximum capacity once the alkylation unit is up and running, which would give a boost to gasoline blending component production. Recent lower runs at Dangote could suggest decreased output of gasoline — a key product in the local refined product market. Nigerian gasoline and blending component imports are around 345,000t to date this month, up from 245,000t in all of February. Gasoline imports in the wider west African market will be around 450,000t in April, a European gasoline trader told Argus this week. Nigeria accounts for around three quarters of the region's imports. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Nigeria expands crude supply with medium sweet Obodo


25/03/25
News
25/03/25

Nigeria expands crude supply with medium sweet Obodo

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Brazil opens input on infrastructure access plan


24/03/25
News
24/03/25

Brazil opens input on infrastructure access plan

Sao Paulo, 24 March (Argus) — Brazil's mines and energy ministry (MME) has launched a public consultation on its plans for improving transportation and process infrastructure access for natural gas and biomethane (PNIIGB), a plan that aims to increase gas supply and reduce prices. The plan addresses LNG regasification terminals, natural gas transmission pipelines, natural gas compression stations, natural gas delivery points — also known as city-gates — and expanding and improving access to existing local piped gas service pipelines. Access to infrastructure directly impacts state-controlled Petrobras, which owns and controls much of the affected pipelines and installations. Petrobras had to reduce its share of the market starting in 2019, as it agreed with antitrust watchdog Cade to sell its stakes in transportation pipeline companies. The PNIIGB aims to push the decentralization of the Brazilian gas market from Petrobras a step further, as it will create rules and tariffs for any gas producer to access these pipelines and processing facilities by mapping the industry's potential demand. "The infrastructure has to be regulated with a centralized and well-defined plan," said MME secretary for oil, natural gas and biofuels Pietro Mendes. "All that [the government] has done is so that the infrastructure is not an entry barrier for new market participants and to improve the competition between natural gas suppliers." Market participants can submit public comments on the PNIIGB methodology until 18 April. The government expects to have the plan published by the end of the year. The MME is also proposing implementing a gas-release program, which requires the company with the dominant market position — in this case, state-controlled Petrobras — to hold compulsory auctions to sell a share of its gas to other market participants. Since the 2021 gas law, Brazil's natural gas market has faced a complex evolution, especially within the industrial sector. Historically reliant on Petrobras, the industry has grappled with supply constraints and high prices, which have hindered competitiveness and growth. Although the new regulatory framework aimed to encourage greater market participation and diversify supply sources, challenges remain. As of this month, many industrial users still report difficulties in securing stable and affordable gas supplies, curtailing production . Brazil as of October had approximately 190mn m³/d of available gas supply, including 160mn m³/d from domestic production and 34mn m³/d imported by pipeline or as LNG, according to MME. Industrial consumption amounts to 39.2mn m³/d. By Betina Moura and Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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