July 2024, Vol. 251, No. 7
Global News July 2024
First Export Cargo from Expanded Trans Mountain Set to Load
Crude oil tanker Dubai Angel moored at the Westridge Marine Terminal in Vancouver, continues preparation to load its first cargo of crude oil from the expanded Trans Mountain pipeline, ship tracking data showed.
Chartered by Canadian oil producer Suncor Energy, the Marshall Islands-flagged vessel was expected to load about 550,000 barrels of Access Western Blend (AWB) for delivery to China, Kpler vessel tracking data showed.
Tightening supply of heavy crude has made Canadian oil more attractive to buyers around the world. However, logistical constraints at the Port of Vancouver could limit the number of shipments, analysts said.
Suncor said in May that it was leasing Aframax vessels in the Pacific and selling direct to customers, seeking to maximize profits on oil being shipped on TMX.
The expanded Trans Mountain pipeline, which will ship an additional 590,000 bpd to Canada’s Pacific coast from Alberta, began commercial operations this month after years of regulatory delays and construction setbacks.
Permian Partnership Expands to Bolster ERCOT Power Sales
Conduit Power and Riley Exploration Permian have expanded their joint venture, RPC Power LLC, in an effort to bolster energy sales of energy and services to ERCOT, the Texas power grid operator.
RPC Power initially focused on owning and operating power generation assets using Riley Permian’s natural gas for oilfield operations in Yoakum County, Texas. However, the recent expansion broadens RPC Power’s scope, enabling the sale of dispatchable power and related services to ERCOT.
Plans include the construction of 100 megawatt natural gas-fueled generation and battery energy storage systems across multiple West Texas facilities, slated for commercial operations by 2025.
Under the new agreements, Conduit will oversee facility operations and power dispatch into ERCOT, leveraging its qualified scheduling entity. Additionally, Riley Permian has increased its ownership in RPC Power to 50% and agreed to supply up to 10 MMcf/d of natural gas as feedstock for the generation facilities.
Travis Windholz, managing director of conduit, emphasized Conduit’s decentralized generation approach prioritizing grid resiliency, flexibility and profitability.
Spain’s Repsol Gets U.S. License to Expand Venezuelan Projects
Spain’s Repsol received a U.S. Treasury Department license authorizing it to continue and expand its oil and gas business in Venezuela, sources close to the decision told Reuters.
Repsol has several joint ventures with state oil company PDVSA for production of crude and gas in the country. The two firms recently agreed to add two large onshore fields to one of the joint projects.
A U.S. official said Washington is reviewing up to 50 individual license requests to do energy businesses in Venezuela.
Repsol and PDVSA would like to double oil output from the Petroquiriquire joint venture, which currently produces 20,000 bpd of crude and 40 MMcf/d of gas.
The expansion would add the La Ceiba and Tomoporo oilfields to the joint venture. The two areas contain more than 5 Bcf of recoverable oil.
For 12th Month in a Row, Russia Still China’s Top Oil Supplier
Russia was China’s top oil supplier in April for a 12th month, with volumes rising 30% from a year earlier, official data showed, as refiners continued to cash in discounted shipments.
China’s imports from Russia, including that which was via pipelines and sea, stood at 9.26 million metric tons last month, or 2.25 MMbpd, according to data from the General Administration of Customs.
Imports from Saudi Arabia, China’s largest supplier a year ago, were 6.34 million tons, or 1.54 MMbpd, down 25% from April 2023. Imports from Malaysia, a key hub for oil from Iran and Venezuela, remained steady at about 980,000 bpd.
In April, Russia cut its crude supply by 150,000 bpd to 9.3 MMbpd, according to the IEA – still 200,000 bpd above the production target it agreed to with other producers.
Year-to-date imports from Russia gained 17% from a year earlier to 37.79 million tons, or about 2.28 MMbpd, making up 21% of total imports into the world’s largest crude oil importer, according to Reuters.
Phillips 66 Expands Gathering Operations in Midland Basin
Phillips 66 will acquire Pinnacle Midland, a midstream company owned by Energy Spectrum Capital, for $550 million in cash, expanding its natural gas gathering and processing footprint in the Midland Basin.
The Midland basin in Texas, in the Permian shale, is the nation’s biggest oil and second biggest gas producing basin.
“Pinnacle is a bolt-on asset that advances our wellhead-to-market strategy,” said Mark Lashier, CEO of Phillips 66. “Further, this transaction aligns with our long-term objectives to build out our natural gas liquids value chain.”
Pinnacle’s assets include the Dos Picos natural gas complex, which can process 220 MMcf/d and 80 miles of pipelines. Dos Picos could be expanded by another 220 MMcf/d and integrate well into Phillip 66’s existing downstream infrastructure, Phillips 66 said.
Phillips 66 owns 11 NGL fractionation plants, along with natural gas and NGL storage facilities and NGL pipelines, and 22,000 miles (35,405 km) of pipelines.
RWE Gas Storage West Looks into Hydrogen Storage Demand
RWE Gas Storage West initiated a preliminary market survey, inviting hydrogen producers, users, industrial firms, and traders to register their future hydrogen storage requirements until June 2024.
Its storage plays a central role in balancing out fluctuations in renewable energy production and is the basis for providing consumers with structured supply products.
RWE Gas Storage West launched a non-binding market enquiry to design future hydrogen storage facilities to meet the needs of the future hydrogen market. For further investment planning, the company wants to determine when and where demand for hydrogen storage capacities will arise.
The results of the market survey will be used to develop customized storage capacities.