PdV crude supply, petchems impacted by gas line blast

Spanish Market: Fertilizers, Natural gas, Oil products, Petrochemicals
23/03/21

A natural gas pipeline blast in eastern Venezuela is having far-reaching impact on the country's crude and petrochemical operations, highlighting the role of gas in sustaining the fragile national oil industry.

By knocking out the Pigap 2 gas compression complex, the 20 March blast shut in around 20,000 b/d of Venezuelan state-owned PdV's Santa Barbara light crude production for up to six weeks, according to multiple incident reports seen by Argus.

The blast took down up to 1bn cf/d of associated gas production as well.

One of Venezuela's legacy grades, 39°API Santa Barbara crude is used for blending with extra-heavy crude from the Orinoco oil belt to produce 16°API Merey for export.

The incident took place within a dense grid of crude and gas pipelines and valves that transports gas to Pigap 2 where it is compressed and reinjected into oil fields.

The grid connected to the blast-damaged 36-inch gas pipeline also directs light crude and associated gas to Orinoco heavy crude blending, upgrading and petrochemical plants at the Jose complex on the coast of Anzoategui state. Among the plants that have been shut down or curtailed for lack of gas are Mitsubishi-led methanol producer Metor, Eni-led Supermetanol and fertilizer producer Fertinitro led by state-owned Pequiven.

A senior PdV eastern division official describes the gas and crude pipeline grid where the blast occurred as "critical to the company's upstream crude and gas operations in Monagas."

A preliminary damage assessment of the ruptured gas pipeline said repairs could take up to six weeks, but the PdV manager said repairs could be completed in less than a month. "We hope to restart the 36-inch gas pipeline by 15 April," he said.

The accident is the latest setback for PdV, which had tentatively recovered its production to more than 500,000 b/d in recent weeks. The government of President Nicolas Maduro routinely blames US sanctions and sabotage for industrial accidents.

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09/04/25

Tokyo may use Alaska LNG as leverage in US tariff talks

Osaka, 9 April (Argus) — Tokyo will likely use the possibility of purchases from the US' proposed 20mn t/yr Alaska LNG export project, as part of wider efforts to reduce the US' trade deficit with Japan, to negotiate for a better tariff deal. US president Donald Trump's 10pc tariff on imports from all countries took effect on 5 April, with exemptions for some commodities . The higher "reciprocal" taxes are due to enter into force at 12:01 ET (04:01 GMT) on 9 April, including Japan at 24pc. The Japanese government on 8 April held its first ministerial task force with prime minister Shigeru Ishiba attending, to discuss potential measures against new US tariffs. Details are still under consideration, but Ishiba is ready to use every possible method to mitigate the impact of looming US tariffs on the Japanese economy, as he sees this as a "national disaster". Japan, a long-standing ally of the US, is unlikely to respond in kind to the US tariff and will instead seek mutually beneficial solutions. Ishiba is aiming to present Trump with a package of measures across a wide range of issues, such as in the energy, agriculture, shipbuilding and automobile sectors, rather than piecemeal requests. The package could include Japan's stance on the Alaska LNG project and ethanol developments, Ishiba stated on 7 April when responding to questions in the Diet. Tokyo may use the Alaska LNG as part of its tariff negotiation, as buying more US LNG could ease Japan's trade surplus against the US. The trade imbalance between Japan and the US stood at ¥8.64 trillion in 2024, equivalent to about $58.6bn at current exchange rates, Japanese customs data show. Japan's LNG purchases from the US rose by 15pc on the year to 6.34mn t in 2024, accounting for nearly 10pc of the country's total LNG imports. Japan has committed to continuing strengthening energy security and co-operation with the US, as well as South Korea, leveraging US LNG along with other energy sources and technologies in a mutually beneficial manner, the countries said in a joint statement after the trilateral foreign ministers' meeting in Brussels on 3 April, just after Trump announced the baseline 10pc taxes on 2 April. Ishiba had already mentioned the idea of ramping up purchases of US LNG, as well as ethanol, ammonia and other resources, when he visited Trump in Washington in February . But he emphasised the importance of stable and reasonable prices for such LNG imports. Alaska LNG has made little progress in recent years and is yet to secure any offtake agreements. But it has drawn interest, after Trump devoted one of his first executive orders to the development of Alaskan energy. South Korea's energy minister expressed the country's interest in the project during a visit in late March , while Taiwan's state-owned CPC signed an initial agreement to invest in and purchase LNG from the project, according to Taiwan's Ministry of Economic Affairs . Auto deal But it remains unclear if a possible purchase of Alaska LNG alone would satisfy Washington and help reduce tariffs. The Trump administration has expressed strong dissatisfaction against Japanese non-tariff barriers on US car deliveries. "US automakers face a variety of non-tariff barriers that impede access to the Japanese and Korean automotive markets, including non-acceptance of certain US standards, duplicative testing and certification requirements, and transparency issues", the US government said on 2 April. Japan imported around 23,000 units of passenger vehicles from the US in 2023, according to the industry group Japan Automobile Importers Association, and this is near one-tenth of all deliveries from European nations. Tokyo appears to be struggling to find breakthrough solutions on this decades-long bilateral economic issue. There must be a variety of reasons on why American cars are not coming into the Japanese market, while Japanese cars are selling well in the US, said the Japanese minister for trade and industry Yoji Muto on 8 April. "We still need more time to figure that out." Ishiba on 8 April appointed the minister of state for Economic and Fiscal Policy, Ryosei Akazawa, as a negotiator for the trade talks with the US government. By Motoko Hasegawa and Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Keystone oil pipeline shut down after ND spill: Update

08/04/25

Keystone oil pipeline shut down after ND spill: Update

Adds latest pricing for US, Canadian sour crudes. Calgary, 8 April (Argus) — North American sour crude prices rose relative to their benchmarks today after the 622,000 b/d Keystone pipeline carrying Canadian crude was shut down following a spill in North Dakota. Canadian crude prices on either side of the spill diverged in Tuesday's trading, with Western Canadian Select (WCS) at Hardisty, Alberta, trading between a $9.15-11/bl discount to the CMA Nymex, with the midpoint representing a widening of about $1/bl day-over-day. WCS at the Texas Gulf coast was up by about 45¢/bl from its prior assessment, trading at a $2.60/bl discount to CMA Nymex. Fellow Canadian heavy sour Cold Lake meanwhile was up by a similar level, trading between $2.25-$2.65/bl discounts against CMA Nymex. The Keystone system is a major route for Canadian heavy crude destined for both the US midcontinent and the Gulf coast. Pipeline operator South Bow initiated a shutdown at 8:42am ET Tuesday after the leak occurred about 6 miles south of Kathryn, North Dakota, according to North Dakota environmental quality program manager Bill Suess. A pipeline employee working on a pump station along the route heard what he described as a "mechanical bang" prompting him to shut down the pipeline, which took about two minutes, Suess said. Crude was then seen surfacing in an agricultural field about 300 yards south of the pump station, where it was contained. Suess said there is no impact to a nearby stream. South Bow estimates about 3,500 bl was released. No restart timeline The company and government officials did not have an estimate for when the pipeline would restart. Next steps involve assessing the area for other utilities before excavating down to the 30-inch pipeline to make repairs. The US Pipeline and Hazardous Materials Safety Administration (PHMSA) said it has dispatched personnel to the scene to conduct a failure investigation. Today's upset is the latest of several incidents to disrupt the market since it was commissioned in 2010. The pipeline halted flows for more than three weeks in December 2022 after it spilled about 12,937 bl of oil in Washington County, Kansas. A crack in a flawed weld was determined to be the cause. Once fixed, PHMSA allowed the line to operate again, but at a reduced pressure. Only last month did PMHSA give South Bow the green light to increase pressure again . Other US prices affected Louisiana-delivered Mars and Thunder Horse widened their premiums over the Domestic Sweet (DSW) benchmark by over 30¢/bl, trading at 80¢-$1/bl premiums and $1.80-$1.90/bl premiums to the basis, respectively. Texas-delivered Southern Green Canyon (SGC) traded as strong as a 60¢/bl discount against the Cushing basis Tuesday morning, after trading at $1/bl discount for the prior two sessions. April DSW was exchanged for May in the Cushing physical spot market at premiums as high 60-70¢/bl, from roughly 45¢/bl on the final day of the April trade month on 25 March. In the futures market, May Nymex WTI has moved up to end the session at a 48¢/bl premium to June, rising from a 26¢/bl premium at settlement in the prior session. DSW is the assumed grade for delivery into the Nymex contract. It is blended to specifications in Cushing and is comprised of various crudes, including Canadian grades. The appreciating differentials came despite pressure from weak export demand from the US Gulf coast. By Brett Holmes, Mykah Briscoe and Amanda Smith Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US faults EU carbon fee during tariff fight

08/04/25

US faults EU carbon fee during tariff fight

Washington, 8 April (Argus) — President Donald Trump's administration is citing the EU's upcoming tariff on carbon-intensive imports as one of the "unfair trade practices" that justified a tariff response. Trump has said a 20pc tariff on most EU goods and a higher tariff on many other key trading partners — set to take effect after midnight — are "reciprocal" to other countries' tariffs and non-tariff barriers, even though those tariffs are calculated based on each country's trade deficits and imports with the US. Trump has yet to even identify which trade policies he wants other countries to change before he would withdraw tariffs his administration expects will raise $600bn/yr in new revenue. But the US Trade Representative's office, in a social media post on Monday made in "honor" of Trump's tariffs, identified the EU's Carbon Border Adjustment Mechanism (CBAM) — which will collect a carbon-based levy on imports such as steel, cement and fertilizer — as one of the examples of what it sees as an unfair trading practice. The Trump administration estimates $4.7bn/yr of US exports would be affected by the CBAM, which is set to take effect in 2026. "These EU regulations undermine fair competition, penalizing US companies while providing advantages to EU-based competitors," the US Trade Representative's office wrote in a series of posts on Tuesday that also criticized India and Thailand for imposing import restrictions on ethanol produced in the US. White House officials say more than 70 countries have approached the administration seeking deals on the tariffs since they were announced nearly a week ago. But with just hours before the tariffs take effect, Trump has yet to announce any definitive agreements to withdraw the tariffs. Instead, he has rejected offers from countries to zero out some of their tariffs. European Commission president Ursula von der Leyen on Monday said the EU was "ready to negotiate" on tariffs, and would zero out its tariffs on industrial imports if the US agreed to do the same. But Trump on Monday said that offer was not enough. "We have a deficit with the European Union of $350bn, and it's gonna disappear fast," Trump said. "One of the ways that that can disappear easily and quickly is they're gonna have to buy our energy from us." Today, Trump said he had a "great call" with South Korea's acting president Han Duck-soo that created the "probability of a great DEAL for both countries." Trump cited a potential agreement that might include large-scale purchases of US LNG and investments tied to the 20mn t/yr Alaska LNG export project. Trump and his cabinet believe the tariffs will align with a goal to achieve "energy dominance" and increase the amount of US energy exported abroad. "At the end of the day, we're going to have growing American exports and reindustrialize the country," US energy secretary Chris Wright said today during an interview on CNBC. Trump's tariffs have already caused a selloff in equities and, according to many analysts on Wall Street, a higher likelihood of a recession. Oil prices have dropped because of a "sudden change in the economic outlook, whereas everyone just honestly 10 days ago was expecting modest but steady positive growth in the US", non-profit group Center for Strategic and International Studies' senior fellow Clayton Seigle said today. Republicans have largely backed Trump in his imposition of tariffs, with the hope the tariffs will be lifted as part of trade negotiations. But some Republicans have started criticizing the rationale for the tariff policy. "Whose throat do I get to choke if this proves to be wrong?" US senator Thom Tillis (R-North Carolina) said in a hearing today with the US trade representative Jamieson Greer. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican peso weakens on US tariff fears

08/04/25

Mexican peso weakens on US tariff fears

Mexico City, 8 April (Argus) — The Mexican peso has weakened in recent days amid growing fears that US president Donald Trump's new wave of tariffs could derail the US economy and, in turn, slash Mexico's economic growth, financial analysts said. After Trump announced a series of new import tariffs on what he dubbed "Liberation Day" on 2 April, the peso initially reacted positively, as Mexico was largely spared from the measures, thanks to protections under the US-Mexico-Canada (USMCA) free trade agreement. The current tariff structure largely remains in place, which means zero tariffs on products under the USMCA agreement, except for steel, aluminum and finalized// assembled automobiles. Auto parts under USMCA still face zero tariffs. These exceptions, and other non-USMCA-compliant products, maintain 25pc tariffs on non-US content, analysts Barclays said. The peso appreciated more than 3.2pc to Ps19.97/$1 on 3 April from Ps20.4/$1 on 2 April, according to data from Mexico's central bank (Banxico). The exemptions could make Mexico more attractive in the medium- and long-term to manufacturers aiming to avoid US tariffs, Barclays said. Yet, investors are now concerned about the broader economic fallout of the escalating US-China trade conflict. "The Mexican peso is one of the most depreciated currencies [as of 7 April], because even though Mexico has not been hit with reciprocal tariffs and benefits from USMCA, the economic impact of tariffs on the US economy could significantly affect Mexico," said Gabriela Siller, chief economist at Mexican bank Banco Base. The peso weakened to Ps20.50/$1 on 4 April, from Ps19.97/$1 on 3 April, and continued weakening, closing at Ps20.69/$1 on 7 April, a 2.3pc depreciation over the last week. Year over year, the peso has tanked 21pc, affected by multiple reforms diminishing Mexico's business environment that passed in late 2024, Trump's electoral victory in November, and now by Trump's tariffs. Mexico's GDP is expected to grow by 0.2pc this year, according to a new Citi survey of 32 bank analysts, with nine forecasting zero or negative growth because of the potential fallout from US trade policy. On 1 April, Mexico's finance ministry lowered its 2025 GDP forecast to 1.5–2.3pc, down from 2–3pc. That's still more optimistic than the central bank and private analysts, who expect growth of only 0.7pc , citing uncertainty over US policy and tariff threats. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Grimaldi buys nine methanol-ready vessels

08/04/25

Grimaldi buys nine methanol-ready vessels

New York, 8 April (Argus) — Italian ferry operator Grimaldi Group has ordered nine methanol fuel-ready vessels that will be delivered by 2030. The company is spending $1.3bn for six vessels that will be operated in the Mediterranean Sea by subsidiary Minoan Lines and three ships that will travel between Finland and Germany in the Baltic Sea. Those vessels will be operated by another subsidiary, Finnish shipping company Finnlines. The ferries will cut CO₂ emissions per transported cargo unit by more than 50pc compared with ships traveling on the same routes, according to Grimaldi Group. The Mediterranean ships will be able to hold up to 2,500 passengers, 300 cars and will have 3,300 freight lane meters. The Baltic ferries will be able to carry 1,100 passengers, 90 cars and have 5,100 freight lane meters. China Merchants Jinling Shipyard is set the deliver the vessels from 2028-2030. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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