US court set to delay Citgo auction result to August
The court-appointed special master overseeing the ongoing auction of US refiner Citgo has asked the court to postpone identifying a successful bidder to August and a sale hearing to October.
The court was initially expected to announce a successful bid for Citgo's 804,000 b/d of refining capacity alongside lubricant plants, midstream and retail assets in late July with a sale hearing in September.
Special master Robert Pincus asked the court in a motion filed Wednesday to delay the successful bid notice to on or about 22 August with a sale hearing on 15 October.
Final bids for Citgo's US assets were submitted on 11 June, with the auction aiming to satisfy debts owed by the company's parent firm, Venezuelan state-owned PdV.
"The special master has made significant progress towards identifying the successful bidder and executing a purchase agreement," according to Wednesday's filing.
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Mexico 2Q GDP data, surveys point to slower economy
Mexico 2Q GDP data, surveys point to slower economy
Mexico City, 2 August (Argus) — Private-sector analysts have lowered estimates for Mexico's 2024 and 2025 gross domestic product (GDP) growth while raising inflation forecasts for both years, the central bank said Thursday. For a fourth consecutive month, the survey's median forecasts for GDP growth in 2024 declined, with analysts polled lowering growth estimates to 1.8pc for 2024 from 2pc in last month's survey. The 2025 growth forecast slipped to 1.61pc from 1.78pc. The shift in forecasts arrives on the heels of preliminary second quarter GDP data, posted by statistics agency Inegi 30 July, showing the economy grew by an annual 2.2pc in the second quarter, up from 1.6pc in the first quarter but slowing from 3.5pc in the second quarter 2023. The central bank's 2024 GDP estimate was lower than a 2.4pc estimate from Mexican bank Banorte. Median projections for end-2024 inflation in the central bank's private-sector survey for July moved to 4.58pc from 4.23pc, with end-2025 projections rising to 3.83pc from 3.76pc in the June survey. The central bank cited higher risks to inflation from a weakening peso and a potentially severe hurricane season in its latest monetary policy decision on 27 June when it held its target interest rate at 11pc. The peso weakened above 19 pesos to the US dollar Friday for the first time since January 2023, extending the losses triggered after 2 June elections that effectively erased congressional opposition to the progressive Morena party. It has weakened from 16.3 pesos to the dollar early April, its strongest level in more than eight years. Growth in the industrial sector grew by an annual 1.9pc in the second quarter from 0.9pc in the first quarter, while services grew by 2.7pc in the second quarter from 2.1pc in the prior quarter, according to the latest GDP report. Agriculture contracted by 2.7pc in the second quarter from 0.6pc growth in the first quarter. "The economy's exceptional momentum in previous years may be running out of steam," said Mexican bank Banorte in a note on the GDP report. Banorte noted uncertainty in manufacturing, "although some of the early nearshoring-related investments could begin to result into more production. In addition, the auto sector remains strong, key to driving the category forward." The downtrend is supported by comments from ratings agency Moody's out this week, predicting a "substantial slowdown" in the second half of 2024. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Australia’s NSW may revise renewable fuels strategy
Australia’s NSW may revise renewable fuels strategy
Sydney, 2 August (Argus) — Australia's New South Wales (NSW) state could revise its renewable fuels strategy, in a move to help the state achieve its emission reduction goals and reach net zero by 2050. The Labor party-led state government has released a discussion paper, seeking input on whether it should set or redesign existing mandates for using fuels like renewable diesel, sustainable aviation fuel and green hydrogen and its derivatives. Currently, the ethanol and biodiesel mandates state that volume fuel retailers must ensure that 6pc and 2pc of the total volume of petrol and diesel sold is ethanol and biodiesel, respectively. Renewable fuels will be used in hard-to-abate sectors like aviation, manufacturing and heavy road transport as a replacement for fossil fuels. The government has opened the consultation with industry participants until 30 August, it said in a press release. Renewable fuel producers have long argued that the poor enforcement of the mandates, coupled with poor loopholes, has hindered the sector's growth in both NSW and Queensland states. The renewable fuels strategy will build on the existing NSW hydrogen strategy, the government said, to maintain support for hydrogen as a long-term abatement option while "expanding consideration to other renewable fuels for short and medium-term abatement." Expanding the renewable fuel scheme (RFS)beyond green hydrogen may further boost the sector, by creating a market-based certificate scheme for other fuels that require liable parties to purchase certificates representing each gigajoule of fuel produced. At present, the RFS legislates annual targets beginning at 7,417 t/yr in 2026, rising to 66,667 t/yr of green hydrogen by 2030. Gas retailers and large gas users that buy directly from producers must procure and surrender certificates to meet their share of the RFS's target or pay a penalty for a certificate shortfall, according to government policy. Mandates for green ammonia use in mining operations and biodiesel blending for the transport sector may also form part of the renewable fuels strategy, the paper said, while the government could set requirements for renewable fuel purchases by its own departments. NSW has ambitious plans for its green hydrogen industry, aiming for 2GW of electrolyser capacity by 2030 , backed by electricity network charge concessions to decarbonise its ammonia, heavy transport and the agricultural sectors initially. The government accepted planning applications for Australian utility Origin Energy's planned a 55MW Hunter Valley hydrogen hub near the city of Newcastle , which would sell 80pc of its output to Australian chemical and explosives firm Orica's nearby ammonium nitrate plant. Origin plans to make a final investment decision on the project by late 2024. The federal government is also funding studies into assisting the low-carbon liquid fuel industry , including options for production incentives and other measures to help its growth. The NSW government plans to reduce emissions by 50pc of 2005 levels by 2030, 70pc by 2035 and net zero by 2050. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Guyana arbitration scheduled for 2025: Chevron, Hess
Guyana arbitration scheduled for 2025: Chevron, Hess
New York, 1 August (Argus) — Chevron and Hess said an arbitration hearing over a disputed stake in a giant offshore oil find in Guyana has been scheduled for next year, effectively delaying their proposed $53bn merger. The future of the stake, which is the crown jewel of Chevron's takeover of the US independent Hess, has been thrown into uncertainty after ExxonMobil argued it has a right of first refusal to Hess' stake. The matter has been referred to international arbitration in Paris and a hearing has been scheduled for May next year, with a decision expected over the following three months. "Chevron and Hess had expected and requested that this hearing be held earlier, but the arbitrators' common schedules did not make this possible," the two companies said in a joint statement. The companies said they remain confident that the arbitration will confirm a right of first refusal does not apply to their merger. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Key Opec+ panel gives no clues on plan to unwind cut
Key Opec+ panel gives no clues on plan to unwind cut
Dubai, 1 August (Argus) — The ministerial committee that oversees compliance with Opec+ oil production policy made no recommendations for the group to change course at its virtual meeting today. But crucially, the committee also gave no hints as to whether a gradual unwinding of up to 2.2mn b/d of supply reductions will start in October as planned. The Joint Ministerial Monitoring Committee (JMMC), which now meets every two months to oversee compliance with crude output pledges and study market dynamics, gave little away about its view of current supply and demand balances or where it sees the market through to the end of the year. The meeting took place against a backdrop of weakening oil prices over the past month, although the twin assassinations of key leaders of the Iran-backed Hezbollah and Hamas militant groups in Lebanon and Tehran, respectively, over the past 48 hours has reversed some of those losses. Front-month Ice Brent futures are now trading at around $81.50/bl, up from around $78/bl two days ago but still well down on the $86.50/bl at the start of July. Today's JMMC meeting was the last one scheduled before a sub-group of eight Opec+ countries, led by Saudi Arabia and Russia, must decide whether to go ahead with a plan to start unwinding 2.2mn b/d of extra voluntary supply cuts that they have been implementing since January. The plan — to begin returning the barrels over a 12-month period starting in October — was announced at the last full ministerial Opec+ meeting in June. But it is not a foregone conclusion. At the June meeting, key Opec+ ministers, including Saudi Arabia's Prince Abdulaziz bin Salman, were at pains to stress that the production increase could be paused or reversed depending on market conditions. It was one of several decisions taken that day relating to three separate production cuts that the group has been carrying out since the start of 2023, amounting to a nominal 5.9mn b/d in total. If the 2.2mn b/d cut is unwound as planned, the collective output target of the eight countries would increase by 540,000 b/d over October-December this year and by another 1.92mn b/d over the first nine months of next year. That factors in a 300,000 b/d increase that the UAE has secured to its 2025 production allowance, which will be phased in between January and September next year. Tough decisions The JMMC reiterated today that "the gradual phase-out of the voluntary reduction of oil production could be paused or reversed, depending on prevailing market conditions". In essence, this is an assurance that the group of eight, dubbed "the great eight" by UAE energy minister Suhail al-Mazrouei, will only return those barrels if there is space in the market to do so. With lingering question marks on the prospects for Chinese oil demand growth this year, a relatively soft summer driving season in the US and strong supply growth from producers outside Opec+, the eight countries may need to consider delaying production increases. The JMMC also once again underlined the importance of member countries fully complying with their output pledges, noting last week's submission by Iraq, Kazakhstan and Russia of plans detailing how they intend to compensate for producing above target in the first half of 2024. The JMMC is due to meet next on 2 October, but a decision on whether to begin unwinding the 2.2mn b/d will likely be communicated early next month. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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