Ecuador names new energy minister after resignation

Spanish Market: Crude oil, Natural gas, Oil products
28/04/22

Ecuador has named a mining vice minister to take over the top slot in energy after minister Juan Carlos Bermeo resigned today.

In a letter to Ecuadorean president Guillermo Lasso, Bermeo said that "his cycle in front of the entity has finished" and that he will resume his private activities.

Bermeo gave no additional reasons for his resignation.

Xavier Vera-Grunauer, now Bermeo's former vice-minister of mining, is set to be sworn in today as energy minister at 7pm ET.

Vera-Grunauer is a civil engineer with a PhD in geotechnics and civil engineering from the University of California, Berkeley. He has mostly worked in mining consulting for 21 years in Ecuador, Peru, Mexico and the US.

Vera-Grunauer takes over as minister for the oil, electricity and mining sectors during several key initiatives, including trying to increase crude production by 22pc this year to reach 580,000 b/d.

Although Ecuador's crude output has grown in the last three months compared with the fourth quarter, closing March with an average of 494,720 b/d, the numbers are still far from the 2022 goal.

Also underway is the negotiation process to switch 23 fee-based oil service contracts — managed by about 15 production and service companies — to production-sharing agreements. Talks began on 19 April with the first companies and the former minister of energy had hoped to complete the conversion process by September. A successful negotiation could lead to production increasing this year.

A third challenge is to issue Ecuador's Intracampos 2 tender by next June. The round consists of six blocks in the northeast near the border with Colombia that have around 107mn bl of 15-30° API crude in recoverable resources of 107mn bl. The output of these fields will be at around 22,000-28,000 b/d.

For natural gas, the ministry has also planned to tender the Amistad gas field in the second semester to revive its output that has about halved from 55.91mn cf/d in 2014 to 25.25mn cf/d in 2021.

In the electricity sector, Ecuador has three ongoing tenders to build 500MW in renewable power projects, a gas-fired thermoelectric plant of 400MW and a new northeast transmission grid to supply electricity to the oil industry. The three tenders are looking for $1.81bn of private investment.

By Alberto Araujo

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12/05/25

US tariff rate drops to 13.1pc after trade truce: Fitch

New York, 12 May (Argus) — The US tariff rate on all imports fell to 13.1pc from 22.8pc after China and the US agreed to a significant de-escalation in their trade dispute over the weekend, according to rating agency Fitch. Even so, a rate of around 13pc was last seen in 1941 and remains much higher than the 2.3pc at the end of 2024, Fitch said. The rate represents total duties as a percentage of total imports and changes, with shifts in import share by country of origin and product mix. The US effective tariff rate for China remains the highest at 31.8pc, reflecting duties imposed on China before 2 April, as well as a 10pc baseline tariff imposed on most countries. That was down from 103.6pc. Japan, Mexico, Canada and Germany, which have the next highest exports to the US, have effective tariff rates in excess of 10.5pc. As a result of the breakthrough over the weekend, the US will reduce punitive tariffs on imports from China to 30pc , with Beijing keeping in place retaliatory tariffs of 10-15pc on most US energy and agricultural commodities. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Naphtha no longer competitive feedstock: Braskem

12/05/25

Naphtha no longer competitive feedstock: Braskem

Sao Paulo, 12 May (Argus) — Brazil-based petrochemical producer Braskem is pursuing a strategic shift in polymers production by favoring natural gas liquid (NGL) feedstocks and moving away from naphtha. Naphtha is no longer a competitive feedstock in the petrochemical sector, driving the need for greater flexibility in raw material sourcing, chief executive Roberto Ramos said Monday on the company's first-quarter earnings call. The transition to lighter feedstocks is part of a broader initiative to enhance efficiency, reduce costs, and improve competitiveness amid evolving global petrochemical dynamics, Ramos said. The company's plan focuses on increasing the use of ethane and propane as primary feedstocks in Mexico and Brazil. In Mexico, Braskem has inaugurated an ethane import terminal, which will provide a stable supply to its operations. The facility has the capacity to store 80,000 b/d of ethane, while the polyethylene (PE) plant processes 66,000 b/d. This surplus storage has prompted considerations for a new PE unit in Mexico to maximize the available feedstock. In Brazil, Braskem aims to reduce reliance on naphtha-based PE production by integrating more natural gas-derived inputs. The company is evaluating projects to utilize feedstocks sourced from shale gas extracted in Argentina's Vaca Muerta formation. The petrochemical complex in Rio Grande do Sul, which operates with a mixture of naphtha and natural gas, is among the facilities targeted for increased gas utilization. Braskem's Rio de Janeiro facility is also undergoing expansion of its gas-based assets, adding two new furnaces that crack ethane and propane to increase capacity to 700,000 t/yr. This increased production is anticipated to lower unit production costs and improve profitability. The move to gas-based production is expected to optimize operations and align Braskem's facilities with cost-effective supply chains, Ramos said. The shift comes as global trade dynamics continue to influence raw material availability. While US-China trade agreements have temporarily eased tariff pressures, Braskem is trying to position itself to navigate long-term supply chain uncertainties by diversifying its production inputs. Ramos has also indicated potential investments in ethanol dehydration technology, which would allow select facilities to convert ethanol into ethylene, further supporting PE production with an alternative renewable feedstock. Production and sales Braskem said its first-quarter domestic resin sales fell by 4pc from the same period in 2024, but sales were little changed from the prior quarter. Domestic resin sales totalled 807,000 metric tonnes (t) in the first quarter, down from 839,000t a year earlier. Resin sales volumes remained in line with the fourth quarter last year, but the company highlighted a quarter-on-quarter increase in PE and polypropylene (PP) sales volumes of 2pc and 3pc, respectively, offset by a 16pc reduction in PVC sales. In Mexico, Braskem Idesa's PE sales fell by 11pc from the same period in 2024 and by 5pc quarter-on-quarter, as the company is looking to manage inventory ahead of a planned maintenance shutdown in the second quarter. The plant utilization rate reached 79pc, rising from the fourth quarter on higher ethane availability through the Fast Track solution. But utilization fell by four percentage points year-on-year, mainly due to reduced supply of ethane from Mexico's Pemex. Braskem posted a first-quarter profit of $114mn, rebounding from a loss of $273mn a year earlier and a loss of $967mn in the fourth quarter last year. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Ukrainian gas imports double in May

12/05/25

Ukrainian gas imports double in May

London, 12 May (Argus) — Ukraine's gas imports have nearly doubled in the first 10 days of May from April, although still only the Polish and Hungarian routes are being used. Ukraine's net imports — after netting off inflows and outflows to and from Moldova — averaged 140 GWh/d on 1-10 May, nearly double the 73 GWh/d average in April, the latest available data from transmission system operators show. The increase has been driven by flows from Hungary at VIP Bereg rising to near full capacity of 103 GWh/d from 60 GWh/d, and a smaller 12 GWh/d increase from Poland ( see flows graph ). Net flows to Moldova also fell to 13 GWh/d from 23 GWh/d, leaving more gas in Ukraine. But imports would need to ramp up significantly to match the 4.6bn m³ that state-owned incumbent Naftogaz estimated would be needed over the entire summer. If Ukrainian net imports remain at 140 GWh/d until 15 October, around the typical start of the heating season, then cumulative net imports would reach around 22TWh, or around 2.1bn m³ using Ukraine's standard 10.5 kWh/m³ conversion rate. VIP Bereg is already flowing at near maximum capacity, as is the interconnection point with Poland, meaning that any additional flows will need to arrive from Slovakia at Budince or from Romania at Isaccea, both particularly expensive transit routes. Demand for third-quarter capacity along the Bereg route continues to outstrip available capacity, with the auction now in its sixth day and still not concluded. So far, Naftogaz has announced few public supply deals, although it has contracted 300mn m³ of LNG from Poland's Orlen , with some market participants saying Orlen would supply as much as 1bn m³. The firm has €410mn in funds from the European Bank for Reconstruction and Development , which it hopes will finance the purchase of around 1bn m³. But it is unclear where funding for additional purchases will come from, and the government does not intend to increase household or business tariffs to cover Naftogaz's higher costs. Even if Ukraine imports as much as Naftogaz said it will need, the country could still face shortages in the winter . Ukraine started the injection season in mid-April at the lowest stock level in at least a decade , and while Naftogaz managed to restore more than half of the output it lost in February following attacks on its production infrastructure, Ukrainian production still remains well below pre-2022 levels. Hungary maintains pivotal hub role Hungary has become an increasingly important transit hub over the past year, and Ukraine's import needs have increased its prominence further. With VIP Bereg at a 99pc utilisation rate this month and continued exports northward to Slovakia, Hungary has been pulling in more gas from other sources to maintain these flows. Inflows from Serbia at Horgos, where Russian gas arrives into Hungary through Turkish Stream, rose to 244 GWh/d on 1-10 May from 223 GWh/d in April, just below the point's technical capacity of 246 GWh/d. And inflows from Austria have also increased considerably, rising to 139 GWh/d from 92 GWh/d, while receipts from Romania more than doubled to 40 GWh/d from 19 GWh/d ( see Hungarian flows graph ). Hungarian prompt prices have risen to a premium over Austria and Romania in order to attract more gas ( see prices graph ). Slovakia remains at a premium to Hungary, though, driven by the need to incentivise flows from Hungary now that Russian transit through Ukraine has ceased. Hungarian transmission tariffs remain significantly cheaper than in Slovakia or Romania, so demand for Hungarian capacity at quarterly auctions last week held strong . The bookings suggest that the recent flow configuration is set to continue in the second half of summer, with all import capacity from Serbia booked and most available capacity from Austria. The export route from Romania to Ukraine remains unpopular, not just because of the high transmission tariffs paid in Romania and Moldova, but also because of the conditional nature of the flows. An equal amount of gas must be brought into Romania at Negru Voda 1 as is exported at Isaccea 1, as they are part of the same Trans-Balkan Pipeline string. Additionally, anyone hoping to bring gas from Greece or Bulgaria up to Ukraine must secure capacity in as many as 10 or more auctions, which take place simultaneously given that the transit route crosses in and out of Moldova several times. Even one failed auction could make exports along this route impossible. By Brendan A'Hearn Hungarian DA vs nearby markets €/MWh Ukrainian net flows by point GWh Hungarian net flows by point GWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Aramco sees 'steady' oil demand growth in 2025

12/05/25

Aramco sees 'steady' oil demand growth in 2025

London, 12 May (Argus) — Global oil demand is on course for "steady growth" this year despite uncertainties over trade, according to state-controlled Saudi Aramco's chief executive Amin Nasser. "For the second quarter we are seeing resilient growth despite the impact of tariffs and the uncertainty that we are seeing in the market," Nasser said on Aramco's first-quarter earnings call today. "The fundamentals are very strong." The outlook for the global economy has deteriorated since US president Donald Trump announced a wide array of import levies in April. But the US and China today announced a deal to reduce some bilateral tariffs . And talks with other countries continue. Oil demand could increase more than currently anticipated depending on the result of trade talks, Nasser said, adding that Aramco estimates oil demand grew by 1.7mn b/d in the first quarter compared with the same period last year. Asia is responsible for most of the demand growth, but there is also an uptick in the US, particularly in demand for transport fuels, Nasser said. By Aydin Calik and Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU, UK diesel imports from Mideast, India fall in April

12/05/25

EU, UK diesel imports from Mideast, India fall in April

London, 12 May (Argus) — Arrivals of diesel and other gasoil in the EU and UK edged lower in April, with high imports from Saudi Arabia's port of Yanbu not fully making up for lower supply from the Mideast Gulf and India. Data from Vortexa show total arrivals at 4.3mn t, lower by 3pc from March on a daily average basis and by 7pc on the year. The Mideast Gulf is the region that has supplied the most to the EU and UK so far this year, stepping up to fill a gap created by weak US arrivals. But market participants said the arbitrage from the Mideast Gulf was shut for most of April. Arrivals from the Mideast Gulf were around 1mn t, dropping by 24pc on a daily average basis from March but only marginally falling from April 2024. Exports from the region probably fell because of maintenance at the 400,000 b/d Rabigh refinery. Geopolitical tensions may have harmed transit through the Bab el-Mandeb strait. The EU and UK imported the largest amount from Saudi Arabia, at 1.3mn t or around 29pc of total arrivals. Around 68pc of Saudi Arabian arrivals, or about 780,000t, came from the Red Sea port of Yanbu, the largest amount from there since December 2020. Yanbu is just south of the Suez Canal, and market participants often treat it similarly to a Mediterranean port when calculating arbitrage economics. Arrivals from India dropped sharply in April, again probably driven by poor arbitrage economics. Arrivals fell by 45pc on the month on a daily average basis and by 33pc on the year, to 455,000t. Only five tankers arrived in the EU and UK from India, compared with 13 in April 2024. Reliance's 1.36mn b/d Jamnagar refinery conducted maintenance on a crude unit in April, and domestic demand reached an all-time high. Imports from the US, the EU's and UK's largest supplier in 2024, remained muted. Arrivals rose by 17pc on the month on a daily average basis to 562,000t, but were still only half the amount of April last year. Spain was the largest EU/UK importer, with 745,000t, the highest since May 2024. Imports may have risen because of maintenance at Repsol's 135,000 b/d Puertollano and 180,000 b/d Tarragona refineries . German arrivals were 493,000t, the highest since January 2023, up by 13pc on the year and more than double levels of March. Shell began to close its 147,000 b/d Wesseling refinery in March, and a turnaround took place at the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery. Demand stepped up, with households taking advantage of lower prices to stockpile product. By Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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