Power outages continue to impact Louisiana, Texas
Power outages in Louisiana and Texas continue to impact energy infrastructure a week after Hurricane Laura pummeled the region as a category 4 storm.
About 180,000 customers in Louisiana, or about 8.5pc of the state, are still without electrical power, according to a Department of Energy update. In Texas, only about 6,400 customers remained without power this morning.
Regional power grid utility Entergy said it had about 103,000 Louisiana customers without power as of 9am ET today, down from a peak of about 270,000. But some of the hardest hit areas will take longer to recover including the power grid that supplies almost 1mn b/d of US refining capacity in the Lake Charles area.
Entergy has estimated it would take two to three weeks to return power to the first customers in the Lake Charles because of "catastrophic damages" to nine transmission lines and surrounding power infrastructure. Many power structures in the area were beyond repair, the company said. Lake Charles was hit hard by Laura when it made landfall on 27 August packing sustained winds of 150mph (241 km/h).
Phillips 66 said yesterday that its 16.8mn bl crude and refined products Beaumont terminal in Nederland, Texas, has resumed operations although it remains limited by electric power curtailments. "Timelines for other operational restarts remain largely dependent on resources including access to electricity and other utilities in the region," the company said.
Sections of the Zydeco crude pipeline from Houston, Texas to Louisiana returned to service on 2 September at reduced rates, Shell Midstream Partners said. The 20-inch diameter section of the Zydeco line from Houston to Port Neches, Louisiana, and the 22-inch diameter section from Port Neches to Houma, Louisiana, will continue to operate at reduced rates "to support efforts to restore electrical service to the area," Shell Midstream said.
Energy Transfer's 480,000 b/d Bayou Bridge pipeline, which moves crude from Nederland to St James, Louisiana, also returned to service after the storm left the region, the company said.
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Technical issues shut Japanese crackers, delay restarts
Technical issues shut Japanese crackers, delay restarts
Singapore, 26 July (Argus) — A series of technical issues forced Japanese cracker operators to shut their units or delay restarts in July, resulting in lower olefins output and higher spot demand. Idemitsu Kosan shut its naphtha cracker in Tokuyama, Yamaguchi prefecture on 15 July, because of gas leakage at its complex. The cracker can produce up to 623,000 t/yr ethylene and 370,000 t/yr propylene. Associated downstream units at the Tokuyama site are likely still operating, resulting in spot demand for prompt ethylene cargoes in the Japanese market, according to market participants. The restart date of the cracker remains unclear, with some market sources saying that the cracker could be on line again in first-half of August. But others said the cracker will be off line until end of August to coincide with Idemitsu Kosan's planned maintenance schedule. Idemitsu Kosan originally planned to shut the Tokuyama-based cracker in September for a 50-day turnaround. The firm declined to comment on the turnaround schedule, citing that the cracker remains shut and it is unsure when it can resume operations. Mitsui's cracker in Sakai, Osaka prefecture also encountered technical issues during its cracker restart. The producer has completed the turnaround, which took place in early July, but will need to procure equipment to address technical issues for the cracker start-up, market participants said. Mitsui's cracker has a nameplate capacity of 600,000 t/yr of ethylene and 280,000 t/yr of propylene. Fellow producer Maruzen Petrochemical also delayed the restart of its cracker in the Chiba prefecture. The cracker was shut on 15 May and was supposed to restart by mid-July. The shutdown has been extended to the end ofJuly, according to market participants. The reason behind the extensions were unclear. Maruzen's Chiba cracker has a production capacity of 525,000 t/yr of ethylene and 335,000 t/yr of propylene. Tighter supplies Shutdown extensions and sudden outages at crackers have tightened olefins supplies in northeast Asia, with Chinese market participants reporting limited offers this week. Asian ethylene prices in the cfr northeast Asia market rose slightly this week to $860-880/t, up by $8/t from the last session, according to Argus ' latest assessments on 24 July. Japan experienced a heavy cracker turnaround season this year, with four crackers conducting scheduled maintenance in the first-half of 2024. Eneos' cracker in Kawasaki prefecture was shut from 5 March until mid-May. Tosoh's Yokkaichi cracker in Mie prefecture was also shut for maintenance from 4 March to the end of April. Keiyo Ethylene's cracker in Chiba prefecture went off line on 10 April for a 14-day planned maintenance. Mitsubishi Chemical's cracker in Kashima, Ibaraki prefecture was shut from May to June. Total ethylene exports from Japan this year are expected to fall from the previous year because of heavy cracker turnarounds. Japan's ethylene exports were at 239,642t during January-May, down by 5,733t from the same period in 2023, according to GTT data. Imports were at 20,296t from January to May, up by 13,500t or almost tripling on the year. By Nanami Oki, Brian Leonal and Toong Shien Lee Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s Empire Energy signs deal to sell gas to NT
Australia’s Empire Energy signs deal to sell gas to NT
Adelaide, 26 July (Argus) — Australian independent Empire Energy has signed an agreement to supply the Northern Territory (NT) with gas from its Carpentaria project in the onshore Beetaloo subbasin. Empire will supply NT with up to 25 TJ/d (668,000 m³/d) of gas over 10 years, starting from mid-2025. This equates to an estimated total supply of 75PJ (2bn m3) of gas. The deal includes scope for an additional 10 TJ/d for up to 10 years if production level at the Carpentaria plant exceeds 100 TJ/d. The firm bought domestic utility AGL Energy's dormant 42 TJ/d Rosalind Park gas plant late last yearwith plans to reassemble the facility on site at Carpentaria, subject to a final investment decision on the project. Gas will be delivered to the NT government-owned Power and Water (PWC) via the McArthur River gas pipeline on an ex-field take-or-pay basis, Empire said on 26 July. PWC in April signed an agreement to buy 8.6PJ of gas from Australian independent Central Petroleum , to supply gas-fired power generation and private-sector customers. Low production at Italian energy firm Eni's Blacktip field, offshore the NT, has led PWC to court new supply while providing a new outlet for prospective producers operating within Beetaloo. The largest Beetaloo acreage holder, Tamboran Resources, has revealed ambitious plans for a 6.6mn t/yr LNG plant to be located near Darwin Harbour's two existing LNG projects, using the basin's shale gas resources as feedstock. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Yemen warring factions reach UN-mediated financial deal
Yemen warring factions reach UN-mediated financial deal
Dubai, 25 July (Argus) — The UAE today welcomed a UN-mediated agreement between Yemen's warring factions that could allay economic woes in the impoverished country. The UAE's ministry of foreign affairs hailed the 23 July announcement of an agreement between the internationally recognised Yemen presidential leadership council (PLC) and the Houthi militant group "with respect to airlines and the banking sector." The UAE, alongside Saudi Arabia, support the PLC. The agreement stipulates "cancelling all the recent decisions and procedures against banks by both sides and refraining in the future from any similar decisions or procedures," and calls for the resumption of Yemenia Airways' flights between Sana'a and Jordan at three a day and operating flights to Cairo and India "daily or as needed." The deal was reached two days after Israeli jets bombed the Houthi-controlled Red Sea port of Hodeidah. The internationally-recognised central bank in Aden in April ordered financial institutions to move their main operations from Houthi-held territory within 60 days or face sanctions. That deadline ran out in June, leading to a ban on dealing with six banks whose headquarters remained in Houthi-held Sana'a. The Houthis retaliated by taking similar measures against banks in PLC-held areas and seized four Yemenia Airways planes at Sana'a airport. The PLC said it hoped the Houthis would also meet a commitment to resume crude exports. Yemen's crude production collapsed soon after the start of the country's civil war, from around 170,000 b/d in 2011-13 to 50,000-60,000 b/d in 2022, according to the BP Statistical Review of World Energy. Data from analytics firm Kpler suggests Yemen has not exported any crude since October 2022. Threats yield results The Iran-backed Houthis earlier in July threatened to attack vital infrastructure such as airports and ports in Saudi Arabia, holding Riyadh responsible for decisions taken by Aden's central bank. The Houthis struck central Tel Aviv on 19 July, inviting an Israeli retaliation that took out a power station that supplies the Red Sea coastal city of Hodeidah and its port and fuel tanks, which are controlled by the Houthis. A breakthrough in the UN-mediated talks between the PLC and the Houthis resulted in the agreement on 22 July, a possible sign that Riyadh might have compromised to avoid a Houthi escalation. The Houthis have been attacking commercial ships in and around the Red Sea since November last year, six weeks after the breakout of the Israel-Hamas war, in what they say is an act of solidarity with Palestinians in Gaza. By Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Refining, LNG segments take Total’s profit lower in 2Q
Refining, LNG segments take Total’s profit lower in 2Q
London, 25 July (Argus) — TotalEnergies said today that a worsening performance at its downstream Refining & Chemicals business and its Integrated LNG segment led to a 7pc year-on-year decline in profit in the second quarter. Profit of $3.79bn was down from $5.72bn for the January-March quarter and from $4.09bn in the second quarter of 2023. When adjusted for inventory effects and special items, profit was $4.67bn — slightly lower than analysts had been expecting and 6pc down on the immediately preceding quarter. The biggest hit to profits was at the Refining & Chemicals segment, which reported an adjusted operating profit of $639mn for the April-June period, a 36pc fall on the year. Earlier in July, TotalEnergies had flagged lower refining margins in Europe and the Middle East, with its European Refining Margin Marker down by 37pc to $44.9/t compared with the first quarter. This margin decline was partially compensated for by an increase in its refineries' utilisation rate: to 84pc in April-June from 79pc in the first quarter. The company's Integrated LNG business saw a 13pc year on year decline in its adjusted operating profit, to $1.15bn. TotalEnergies cited lower LNG prices and sales, and said its gas trading operation "did not fully benefit in markets characterised by lower volatility than during the first half of 2023." A bright spot was the Exploration & Production business, where adjusted operating profit rose by 14pc on the year to $2.67bn. This was mainly driven by higher oil prices, which were partially offset by lower gas realisations and production. The company's second-quarter production averaged 2.44mn b/d of oil equivalent (boe/d), down by 1pc from 2.46mn boe/d reported for the January-March period and from the 2.47mn boe/d average in the second quarter of 2023. TotalEnergies attributed the quarter-on-quarter decline to a greater level of planned maintenance, particularly in the North Sea. But it said its underlying production — excluding the Canadian oil sands assets it sold last year — was up by 3pc on the year. This was largely thanks to the start up and ramp up of projects including Mero 2 offshore Brazil, Block 10 in Oman, Tommeliten Alpha and Eldfisk North in Norway, Akpo West in Nigeria and Absheron in Azerbaijan. TotalEnergies said production also benefited from its entry into the producing fields Ratawi, in Iraq, and Dorado in the US. The company expects production in a 2.4mn-2.45mn boe/d range in the third quarter, when its Anchor project in the US Gulf of Mexico is expected to start up. The company increased profit at its Integrated Power segment, which contains its renewables and gas-fired power operations. Adjusted operating profit rose by 12pc year-on-year to $502mn and net power production rose by 10pc to 9.1TWh. TotalEnergies' cash flow from operations, excluding working capital, was $7.78bn in April-June — an 8pc fall from a year earlier. The company has maintained its second interim dividend for 2024 at €0.79/share and plans to buy back up to $2bn of its shares in the third quarter, in line with its repurchases in previous quarters. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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