Chevron sells more domestic gas to Alcoa in Australia
Chevron has signed an agreement to supply a further 37PJ (962mn m³) of gas sourced from the three LNG projects located offshore Western Australia (WA) to US aluminium group Alcoa's alumina refineries in the southwest part of the state, adding to an existing contract with Alcoa for 64PJ of gas.
The Chevron gas supply contract is one of three sales and purchase (SPA) agreements that Alcoa has signed with gas producers. Alcoa has signed three new gas SPAs, which together will supply 198PJ of gas to its WA alumina refineries, starting from 2024.
The agreements with Chevron, ExxonMobil and Australian independent Warrego Energy, coupled with existing gas contracts, will supply Alcoa's three refining operations in WA over a 10-year period, Alcoa said. The Alcoa gas deals follow the agreements signed in December 2018.
The gas from Chevron will be sourced from the three LNG projects in WA in which the US major has an interest, including the 15.6mn t/yr Gorgon LNG facility, the 8.9mn t/yr Wheatstone LNG venture and its sixth share in the 16.3mn t/yr North West Shelf (NWS) LNG plant operated by Australian independent Woodside Petroleum.
Warrego signed a binding gas sales agreement (GSA) with Alcoa for the long-term supply of a total of 155PJ of natural gas from the West Erregulla onshore gas field in WA, Warrego said.
The agreement will start on 1 January 2024, subject to a positive final investment decision (FID) by Warrego expected in the first half of 2021, it said. The size and term of the GSA with Alcoa is such that Warrego does not need to secure additional GSAs to support the FID, it said. This foundation contract with Alcoa will underpin gas-processing development and provide the foundation for Warrego to plan additional phases of development, the firm said.
The West Erregulla field is jointly owned by Warrego and Australian independent Strike Energy. The field has been earmarked to provide backfill gas to the NWS LNG venture. ExxonMobil's largest gas interest in WA is its 25pc stake in the Gorgon LNG venture.
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Francine spurs more US Gulf oil shut-ins: Update 2
Francine spurs more US Gulf oil shut-ins: Update 2
Update with BSEE production data. New York, 11 September (Argus) — US energy producers curtailed nearly 39pc of offshore Gulf of Mexico oil production as Hurricane Francine bore down on the Louisiana coastline today. About 674,833 b/d of offshore oil output was off line as of 12:30pm ET, according to the Bureau of Safety and Environmental Enforcement (BSEE). Around 907mn cf/d of natural gas production, or 49pc of the region's output, was also off line. Operators evacuated workers from 171 platforms. Companies including Chevron, ExxonMobil and Shell relocated offshore workers and suspending some drilling operations ahead of the hurricane. Ports along the hurricane's path announced traffic restrictions in advance, with some setting out plans to close until it passes, including the port of New Orleans. Francine was last about 60 miles south-southwest of Morgan City, Louisiana, according to a 4pm ET update from the National Hurricane Center. Maximum sustained winds were reported at 90mph. The hurricane is set to make landfall in Louisiana by this evening before moving north across Mississippi on Thursday. Rapid weakening is forecast and Francine is expected to be a post-tropical system on Thursday. With the hurricane's track locked in on Louisiana, the port of Houston reopened to all vessel traffic at 1pm ET Wednesday, a ship agent said, after closing Tuesday afternoon. The Gulf of Mexico accounts for around 15pc of total US crude output and 5pc of US natural gas production. By Stephen Cunningham and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
S Korean plate sales into EU revive AD probe talks
S Korean plate sales into EU revive AD probe talks
London, 11 September (Argus) — A recent spree of South Korean hot-rolled plate (HRP) sales into Europe have revived talks around the possibility of a dumping probe. Over the first six months of 2024 South Korean plate arrivals into Europe rose by a third compared with the same period last year to 330,000t. Last week, South Korea offered S275 grades at €540-550/t cfr south EU concluding a string of deals in the process, likely at the figures indicated above. These prices have put local producers under pressure to reduce their own offers despite significant cost pressures. When comparing southern European prices to South Korean imports an arbitrage of about €90/t is available on domestic offers. At the time of writing, local prices in Italy for S275 grades have settled at €650-680/t ex-works. One mill source told Argus it has already filed a complaint to the relevant authorities over dumping activity from Asia. "It makes sense to investigate India and Indonesia, combined with Korea. These are the three most aggressive sources right now," the same market participant said. This investigation follows protectionist trends and should include South Korea, Indonesia and India, one trader added. Similar views were echoed in Italy, where two sources commented any investigation should begin promptly, given the damage imports have caused. A probe launched by the EU would likely put UK authorities under pressure to enact a similar measure. "The UK has to act in the same way as EU. Korean prices cannot continue," one mill agent said. Aggressive importation, especially from Asia, has also hampered cash-strapped Liberty Steel's re-rolling facility in Scotland. Sources close to the company told Argus the reroller remains off the market, and has furloughed part of its workforce. "Structural challenges in the UK steel industry, including consistently high energy costs and cut-price imports from countries such as South Korea with less stringent environmental standards, means Liberty Steel UK has for some time been operating some plants intermittently with agreed short-time working arrangements," Liberty said. UK Steel, which represents UK steelmakers, noted "concern" about "underpriced" Korean plate imports, though it said it has not submitted a petition as of yet. By Carlo Da Cas Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Francine sets sights on Louisiana coast: Update
Francine sets sights on Louisiana coast: Update
Updates the status of ports in Texas. New York, 11 September (Argus) — Hurricane Francine, which has already shut in almost a quarter of the Gulf of Mexico's oil output, is set to strengthen before making landfall in Louisiana on Wednesday evening. Francine was about 150 miles southwest of Morgan City, Louisiana, according to an 10am ET advisory from the National Hurricane Center, with maximum sustained winds of 90 mph. The hurricane will bring 5-10 foot storm surge to coastal areas from Vermillion Bay to Port Fourchon, Louisiana, and after landfall is expected to move northward across Mississippi on Thursday and Thursday night bringing heavy rains. Ports along the hurricane's path announced traffic restrictions in advance, with some setting out plans to close until it passes, including the port of New Orleans . With the storm's track locked in toward Louisiana, the port of Houston was expected to reopen to inbound vessels at 1pm ET today and to outbound vessels at 3:30pm, a ship agent said. It closed to traffic at 1pm Tuesday. The ports of Beaumont, Port Arthur and Orange also plan to reopen Wednesday. About 412,070 b/d of offshore oil output was off line by midday on Tuesday, according to the Bureau of Safety and Environmental Enforcement (BSEE), as offshore operators including Chevron, Shell and ExxonMobil evacuated workers and curbed operations as a precaution. About 494mn cf/d of natural gas production, or 26pc of the region's output, was also off line. The Gulf of Mexico accounts for around 15pc of total US crude output and 5pc of US natural gas production. By Stephen Cunningham and Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US inflation slows to 2.5pc in August
US inflation slows to 2.5pc in August
Houston, 11 September (Argus) — US inflation slowed in August to the lowest rate since February 2021, marking a fifth month of easing inflationary pressures and paving the way for a widely expected cut in the Federal Reserve's target rate next week. The consumer price index (CPI) slowed to an annual 2.5pc in August from 2.9pc in July, the Bureau of Labor Statistics reported today. So-called core inflation, which strips out volatile food and energy prices, rose by 3.2pc in August, matching the July reading, largely due to an uptick in monthly shelter costs. After the report, the CME's FedWatch tool signaled an 83pc probability that the Fed will cut its target rate by a quarter point at next week's Fed policy meeting from 66pc odds Tuesday. Probabilities of a half point cut fell to 17pc from 34pc the prior day. The energy index contracted by an annual 4pc in August, following a 1.1pc gain in July, while the gasoline index contracted by 10.3pc in August, accelerating from a 2.2pc decline in July. Energy services eased to an annual gain of 3.1pc following gains of 4.2pc in July. Food costs rose by 2.1pc in August, slowing from a 2.2pc gain in July. Shelter rose by 5.2pc after a 5.1pc gain in July. Transportation services rose by 7.9pc in August, slowing from 8.8pc in July. Headline CPI rose by 0.2pc in August from the prior month, matching July's monthly gain. Core CPI accelerated a tick to 0.3pc in August following a monthly 0.2pc gain in July, largely as shelter rose to 0.5pc from a prior 0.4pc and transportation services surged to a 0.9pc monthly gain from 0.4pc. After falling to 3.1pc in January, inflation reaccelerated to as high as 3.5pc in March, prompting the Federal Reserve to hold off on widely expected rate cuts after holding its target rate at 23-year highs since July 2023 to contain inflation, which surged as high as 9.1pc in June 2022. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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