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US Army Corps proposes new Illinois River lock

  • Market: Agriculture, Biofuels, Chemicals, Crude oil, Fertilizers, Freight, Oil products
  • 18/12/24

The US Army Corps of Engineers (Corps) has proposed a new lock to replace the LaGrange Lock and Dam (L&D) near Beardstown, Illinois, as part of the Navigation and Ecosystem Sustainability Program (NESP).

The project would be the first new lock for NESP, a program that invests in infrastructure along the Mississippi and Illinois rivers. The new 1,200ft proposed LaGrange Lock would allow for passage of more barges in a single lockage, instead of having to split the tow in two with the current 600ft LaGrange Lock. At the moment, most tows trying to pass through the LaGrange lock experience multiple hour delays.

The new LaGrange lock would have an estimated cost of $20mn, with a construction timeline of five years. The project area would be located on the west bank of the Illinois River near the 85-year old LaGrange L&D, encompassing 425 acres. Real estate acquisition, design plans and contractors are already in place, said the Corps. The current LaGrange lock would remain in operation and become an auxiliary chamber.

The Corps opened the upcoming project to public comments on 11 December and will close on 3 January.

NESP has four other projects along the Mississippi River. Another full lock construction project is anticipated for Lock and Dam 25.


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07/03/25

Kazakhstan seeks Tengiz and Kashagan output cuts

Kazakhstan seeks Tengiz and Kashagan output cuts

London, 7 March (Argus) — Kazakhstan has asked international operators to slash crude production at its Tengiz and Kashagan oil fields so that it can meet its Opec+ output target, deputy energy minister Alibek Zhamauov said today. Zhamauov said the ministry held preliminary talks with ExxonMobil, TotalEnergies, Eni and Shell this week, and that energy minister Almasadam Satkaliyev will travel to the US next week to hold further discussions with company chief executives on lowering output. "Our [initial] request was well received," he said. The deputy minister said that Kazakhstan will strive to lower crude production by 297,000 b/d to 1.45mn b/d in March. Zhamauov said that most of the reduction in output will come in the second half of the month, following the conclusion of talks with foreign operators. If Kazakhstan reduces output in line with its latest pledge, this will have a knock-on impact on its exports through the CPC pipeline system, the main export route for Kazakh crude and condensate. "The big portion of our oil goes to CPC direction. So if we cut the major oil fields, then we will expect a reduction in the CPC direction as well," Zhamauov said. Kazakh output from Tengiz and its Kashagan fields accounts for the bulk of CPC Blend exports, which had been expected at 1.6mn-1.7mn b/d in March. Increased output from the Tengiz field helped boost Kazakhstan's production by 297,000 b/d to a record 1.747mn b/d in February, 279,000 b/d above its Opec+ target of 1.468mn b/d. Kazakhstan's March target of 1.45mn b/d includes an additional 18,000 b/d cut related to its plan to compensate for past overproduction. The Chevron-led Tengizchevroil consortium launched a third crude production plant at the field in January. This helped boost Tengiz production to 878,000 b/d in February, compared with about 500,000 b/d in mid-January — although part of the increase is explained by the completion of maintenance at another crude unit at Tengiz. Overseas shareholders in Tengizchevroil include Chevron and ExxonMobil, with 50pc and 25pc stakes, respectively. International shareholders in Kashagan operator NCO include Shell, TotalEnergies, Eni and ExxonMobil (16.81pc each), as well as China's CNPC (8.33pc) and Japan's Inpex (7.56pc). Kazakhstan remains one of the Opec+ alliance's largest overproducers, despite repeatedly pledging to compensate for exceeding its target since January 2024. This has frustrated other Opec+ members that have largely stuck to their production targets. Zhamauov reiterated Kazakhstan's commitment to the Opec+ alliance. "We fully understand the importance of the Opec+ mission to stabilise the oil market and price for oil," he said. Opec+ members, including Kazakhstan, agreed this week to proceed with a plan to start unwinding 2.2mn b/d of voluntary production cuts starting in April. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Enquest in talks to take over North Sea rival Serica


07/03/25
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07/03/25

Enquest in talks to take over North Sea rival Serica

London, 7 March (Argus) — London-listed oil and gas producer Enquest is discussing a possible takeover of rival North Sea firm Serica Energy. The news was confirmed by Serica today in a stock exchange announcement in which the company said its board believes "there are substantial potential benefits" to merging with Enquest. These include "increasing scale and diversification, unlocking significant synergies and providing a stronger platform for further growth", Serica said. The firm added that any transaction would probably be structured as an all-share offer by Enquest by way of a reverse takeover. The two companies are equally matched in terms of production. Enquest expects to produce 40,000-45,000 b/d of oil equivalent (boe/d) this year, while Serica's guidance is around 40,000 boe/d. Enquest's portfolio is dominated by UK North Sea assets, although it does have a presence in Malaysia and earlier this year agreed a deal to buy London-listed Harbour Energy's business in Vietnam. Serica operates in the UK North Sea only and its production is a broadly even mix of oil and gas. Consolidation among oil and gas firms in the North Sea is accelerating as operators seek economies of scale in the mature basin. Only today, North Sea and Middle East-focused independent DNO announced a $450mn deal to buy Norwegian rival Sval Energi. Other recent deals include Harbour Energy buying most of German firm Wintershall Dea's assets and UK independent Ithaca Energy's takeover of Italian firm Eni's UK assets, both of which completed last year. Tax rises and ongoing production decline are among the factors driving consolidation in the UK sector of the North Sea. By James Keates Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Brazil oil sector sees opportunity in US tariffs


06/03/25
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06/03/25

Brazil oil sector sees opportunity in US tariffs

Rio de Janeiro, 6 March (Argus) — Planned US tariffs on goods from Mexico and Canada could represent an opportunity for the Brazilian oil and natural gas sector, oil chamber IBP said. "These trade disputes, this increase in protectionism, could conversely create opportunities for us to reach new markets," IBP president Roberto Ardenghy told Argus. The tariffs announced by US president Donald Trump earlier this week on US imports from Mexico and Canada subject Canadian crude to a 10pc duty, while the blanket levy of 25pc would apply to Mexican petroleum. The tariffs' implementation now looks set to be delayed until next month. US commerce secretary Howard Lutnick, in a televised interview Thursday, said that all US imports from Canada and Mexico that are covered by the USMCA duty-free treatment will be exempt from tariffs until 2 April. Trump then confirmed this on social media in the case of Mexican products. The risk of tariffs and trade disputes is "part of the international day-to-day … of the commodities sector" and could open new markets for Brazil as it ramps up production, Ardenghy said. The US imported 6.49mn b/d of crude in 2023, with Canada accounting for around 60pc and Mexico for 11pc, according to the US Energy Information Administration. Brazilian crude accounted for just under 3pc, but it is Brazil's main export to the US. "We can imagine that if there is a significant decline in Canadian oil exports to the US, for cost reasons, then Brazil will have an opportunity to access the US market that it did not have in the past," Ardenghy said. The Brazilian oil sector is also eyeing openings in other markets such as Mexico, he said. Brazilian oil from the high-yield offshore pre-salt fields is low-sulfur and low-carbon, with average CO2 emissions of 11 kg/bl, making it more competitive in mature markets, including US states with more stringent carbon-content rules such as California and Colorado, Ardenghy said. The country's medium sweet grade is also an advantage, as it is adaptable to many refineries, he said. Crude overtook soybeans as Brazil's main export product for the first time ever in 2024, with exports totaling $44.9bn, according to government data. China accounted for 44pc of the total, at $20bn, while the US accounted for $5.8bn, or 13pc, of last year's oil exports. By Constance Malleret Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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High US potash stocks to delay tariff reaction: Update


06/03/25
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06/03/25

High US potash stocks to delay tariff reaction: Update

Updates text to include tariff delay for Canadian goods. Houston, 6 March (Argus) — Ample stocks of potash in the US would likely delay the impact of the US' Canadian import tariffs on prices and volumes, according to North American fertilizer market participants. Leading up to the February and March deadlines for the tariffs, a significant volume of Canadian potash was brought into the US, adding onto stockpiles leftover from the fall application season, according to sources. Potash price movement has been minimal since Tuesday, when the US tariffs were initially put in place before being delayed Thursday, partly because of the stockpiling and because some of the impact of the tariff is already priced into the market. MOP trade at Nola has been flat week-over-week at around $305/st fob. That is up by $50/st from the start of January but $12.50/st lower than the final week of February 2024. US potash producers Mosaic and Intrepid said an increase in the price of potash from the tariffs would likely materialize for second quarter product. It is unclear what the overall impact on the market would be, but Mosaic said that it would be borne by downstream distributors and end users. Mosaic also added that the overall impact of tariffs is unclear but that North American and global potash demand would remain robust. The product should remain affordable, Mosaic said, despite expectations of significant disruptions in global potash trade flows and logistics. But with the impending start of the spring application season on the horizon, and expectations of robust potash demand, potash prices at Nola and further inland could rise. Earlier today President Donald Trump announced that Mexico, which also was hit with a 25pc tariff on its goods this week, would not be required to pay tariffs on anything that falls under the US-Mexico-Canada free trade agreement at least through 2 April. A similar deal for Canadian goods was announced shortly afterward. Potash market participants said early Thursday morning that potash could be carved out of the policy in the future, a position advocated by industry groups Agricultural Retailers Association and The Fertilizer Institute. "Nobody wants this," one source said. "But we are going to hunker down and take [the tariffs] day-to-day." There is additional confusion among buyers of Canadian potash on how the tariffs will be implemented with shipments that have already been negotiated and which buyers will receive shipments from US warehouses or from across the border. By Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Algeria's Feb crude exports up nearly a third


06/03/25
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06/03/25

Algeria's Feb crude exports up nearly a third

London, 6 March (Argus) — Exports of Algerian crude grade Saharan Blend jumped sharply last month, driven by a rise in demand from French refineries. Total exports of the light sweet crude rose by 31pc on the month to around 445,000 b/d in February, according to Argus tracking data. Loadings in January were just 341,000 b/d, the lowest level since November 2022. Some 348,000 b/d of February-loading Saharan Blend was shipped to northwest Europe and the Mediterranean, up by 26pc compared with January. Around a third went to France alone, while Ireland took its first cargo of Saharan Blend since June 2018. Loadings to France surged to 111,000 b/d in February after hitting a multi-year low of 20,000 b/d in January. Spring refinery maintenance in France is light this year, leading to a total of nearly 980,000 b/d of crude arriving in January-February, up from an intake of 850,000 b/d in the same two-month period last year, Vortexa data show. The increased interest for Saharan Blend from France's refineries last month coincided with a drop in deliveries of Nigerian grades. Around 112,000 b/d of Nigerian crude arrived at French ports in February, down by 35pc from January, according to Vortexa. The boost in French demand supported Saharan Blend price differentials in January, when most February-loading cargoes traded. The grade was assessed at an average premium of 97¢/bl to the North Sea Dated benchmark in January, up from a 36¢/bl premium in the previous month. Exports of Saharan Blend to Asia-Pacific jumped by 86pc on the month to 72,000 b/d in February, after a 2mn bl cargo loaded onto a VLCC for South Korea. January-loading exports to the region comprised just one Suezmax-sized shipment to India. Loadings to the Americas inched down by 3pc on the month to reach 25,000 b/d in February. Just one cargo went transatlantic in both January and February, after a hiatus in December. By Melissa Gurusinghe Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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