Offshore wind energy has been a rapidly growing industry in recent years, and a company out of Italy is on the verge of revolutionizing the energy sector. Saipem, an engineering services company, just launched the world's first full-scale floating solar energy platform prototype, called XolarSurf, according to Interesting Engineering.
XolarSurf will spend about a year off the coast of Norway, where its performance and production capacity will be monitored. It's manufactured to withstand 26-foot waves along with the other harsh conditions in the North Atlantic. XolarSurf has a capacity of up to 13.5 megawatts, according to Saipem. For perspective, one megawatt can power roughly 1,000 homes.
"XolarSurf represents a new frontier in the floating solar segment," the company website states, "capable of being installed in any coastal or offshore location, even under harsh environmental conditions."
If the trial proves successful, the technology could be perfect for remote areas far from land and consistent sources of power. It could be especially useful for the aquaculture industry, which involves the breeding, rearing, and harvesting of fish, algae, and other organisms in various aquatic environments.
"Compared to floating wind turbines, floating solar power technology is simpler, engineering costs are lower, and structures are easier to build," Alexander Minge Thøgersen, vice president of engineering at Moss Maritime, a subsidiary of Saipem that's involved in the project, said.
The XolarSurf project has been in the works for years. In March 2020, Saipem and Moss Maritime signed a cooperation agreement to develop the floating solar park with Equinor, one of the Nordic region's largest oil and gas companies, which has recently made large investments in clean energy.
A few months after signing the agreement, Moss was conducting model trials.
Offshore, floating solar farms are a logical next step in the expansion of clean energy sources. They could be a viable alternative in areas where offshore wind energy doesn't make sense because of extremely deep water or the high cost of construction associated with deep water installations.
Technology such as XolarSurf could be a game-changer for remote islands that are often dependent on the import of dirty energy, which is not only costly but can be unreliable. This technology could provide cheaper and more reliable energy for the people living on such islands while at the same time reducing dependency on fuel sources that contribute to the overheating of the planet.
https://www.yahoo.com/tech/company-launches-full-scale-prototype-101541642.html
China guzzled roughly 16.5 million b/d of the world's oil supply in 2023, all liquids included. As the world's second-largest oil consumer, accounting for about 16% of global demand, a peak or plateau in its refined oil product demand is crucial to the oil market. The timing of the peak and the pace of oil demand decline from there on will affect global oil balances and, consequently, oil prices.
With a total oil demand tripling that of India's, the world's third-largest oil consuming nation, China is the only major developing country that is likely to see demand of gasoline and gasoil/diesel to reach a plateau at present or in the near future," said Kang Wu, global head of oil demand research at S&P Global Commodity Insights. "While oil demand in nearly all developed countries has peaked, the vast majority of developing countries other than China will see their oil demand continue to grow in the foreseeable future."
"As such, China is a decisive force in determining if and when the global oil demand will peak," Wu added.
Analysts have varying views on the year when China's oil demand will peak, but most of them agree the decline will not be so dramatic as to trigger a sharp downturn in global oil demand.
Commodity Insights projects China's total refined product demand, excluding direct crude burn and all NGLs, will peak in 2027 at 16.4 million b/d. It consumed 15.5 million b/d in 2023. Global refined product demand is forecast to peak in 2028 at 91.5 million b/d, compared with 88.4 million b/d demand in 2023.
However, China's oil demand growth in the second quarter of 2024 – merely 16 months after reopening from pandemic-related restrictions – has been slower than expected, with a year-on-year reduction in crude throughput. The combination of rapid growth in the displacement of road transportation fuels, muted demand from construction and manufacturing sectors, and extreme weather disruptions hit consumption.
The average utilization of independent refineries in China's Shandong province fell to 52% in June 2024, the lowest level since March 2020, when the country's oil demand was slowly recovering from the pandemic outbreak, data from local information provider JLC showed. China's independent refineries are swing suppliers and their activity directly reflects the country's oil demand.
Gasoil, the largest component of China's oil barrel, accounting for about 22% or 3.8 million b/d of the country's refined product demand, either already has or is close to reaching peak as growing sales of LNG-fueled heavy-duty trucks displace conventional diesel-powered trucks, analysts said.
Commodity Insights expects China's gasoil demand to peak in 2027 at slightly over 4.0 million b/d. The International Energy Agency (IEA) estimates the demand to grow by 1.5% and 3.1% in 2024 and 2025, respectively, according to its monthly Oil Market Report dated July 11, while a few China-based analysts told Commodity Insights that gasoil demand has already peaked.
State-owned PetroChina's Planning & Engineering Institute estimated China's gasoil demand peaked in 2023 and will see a 5% year-on-year decline in 2024 amid sales of LNG-fueled heavy-duty trucks jumping more than 120% and displacing about 612,000 b/d gasoil this year.
CPPEI estimated gasoline demand had also peaked in 2023 at 155 million metric tons per year, or 3.6 million b/d, and has started to decline this year due to the rising proportion of new energy vehicles (NEV) and higher-efficiency internal combustion engine vehicles on the road.
Commodity Insights expects China's gasoline demand will peak in 2025 at 3.8 million b/d. The IEA projects demand of the fuel to peak at 3.66 million b/d in 2024 and start to fall by 2.3% in 2025. NEV sales accounted for 43.8% of total vehicle sales in July -- an all-time high.
January to July sales of battery electric vehicles and plug-in hybrid electric vehicles jumped 31.1% year-on-year, while ICE vehicle sales declined 6.5%, according to data from the China Association of Automobile Manufacturers. Meanwhile, new ICE vehicles are estimated to displace about 2%-3% of gasoline consumption due to improved energy efficiency, a senior refining economist with Sinopec said.
The peaking of China's gasoline and gasoil demand is decisive in indicating the overall trend in China's oil demand. Demand for other transportation fuels, led by jet fuel and fuel oil, is expected to continue rising but they account for a smaller proportion of China's overall oil demand.
It should be noted, however, that when it comes to oil liquids as a whole, including petrochemical feedstocks such as LPG and ethane, it will take a few more years before China's demand stops growing.
A later peak for gasoil demand, based on some analyst projections, would be mainly due to a more optimistic expectation in the development of China's construction and manufacturing sectors, information collected by Commodity Insights showed.
Shift to petrochemicals
An earlier-than-expected peak for refined products -- estimated mainly by research arms connected with China's state-run oil companies -- would lead to a decline in the country's crude imports until demand surges for petrochemical products.
Market sources said the demand wave of petrochemical products is unlikely to happen until 2027. Bracing for a demand peak in refined oil products, most refineries in China, whether state-owned or independent, have been heavily investing in facilities to shift to petrochemical production.
However, trade sources in the petrochemicals sector said that China's ongoing property market crisis, coupled with the economic slowdown, will continue discouraging demand for petrochemical products in the foreseeable future. "It will take a few years for the petrochemical industry to recover from the recession cycle," the senior refining economist with Sinopec said.
China's January-July crude imports have fallen nearly 3% year on year, official customs data showed, due to slow demand for refined and petrochemical products. On the other hand, domestic crude output rose 1.6% to 4.3 million b/d in the same period.
Despite the year-on-year decline, crude imports so far in 2024 remain the second highest in history – slightly above the third highest of 10.70 million b/d seen in the same period of 2021, according to customs data.
Medium sour crudes remain in favor
China's appetite for medium sour crudes is unlikely to change for at least the next five years due to the configuration of Chinese refineries and refining economics, the senior refining economist with Sinopec said. API and sulfur content of the crudes that China imports averaged at 30.5 and 1.57%, respectively, as of June, almost flat to the 30.4 and 1.48% levels seen in 2017.
"There were some up and down between 2017 and 2024, but the changes are more related to price movements of different grades of crude rather than refinery configuration," Mengbi Yao, a senior research analyst with Commodity Insights said.
Most of China's refineries are designed to process medium sour crudes, including the new private mega plants and the ones built by Sinopec and PetroChina. Refineries that can process cheaper heavy, sour barrels follow, led by PetroChina's new Guangdong Petrochemical, as well as the independent refineries in Shandong province.
The Middle East remains China's top crude supplier by region, with its market share steady at 54.2% in H1 from 54.4% in the same period of 2023, Commodity Insights estimates. The configuration of China's refining sector has encouraged Saudi Aramco, the world's top crude producer, to invest in China's integrated refineries. Aramco has a 30% interest in a planned integrated refinery and petrochemicals complex in Panjin in northeast China.
In March 2023, Aramco acquired a 10% interest in China's Rongsheng Petrochemical. As of July, it has been in talks with Shenghong Petrochemical and Hengli Petrochemical for potential investments. Saudi Aramco is China's biggest crude supplier. Its Arab Heavy (API 27.7, 2.87% sulfur) coupled with Arab Medium (API 30.2, 2.59% sulfur) crudes account for more than 63% of the Middle East crudes supplied to China, S&P Global Commodities at Sea data showed.
Meanwhile, most of the brownfield refineries are shifting production from oil products to petrochemical products by adopting the route of naphtha/LPG to ethylene to extend the value-chain, a Beijing-based analyst said.
"Generally speaking, the existing refineries will stick to the most competitive crudes, which are the medium and light grades from the oil-rich Middle East, North Africa, Norway and Guyana," the Sinopec economist said, adding that the profitability from processing these grades was better due to their lighter yields, although the heavy barrels are cheaper.
"But in the future, when oil product demand slumps and aging refineries are phased out, light feedstocks will be in favor, led with NGL, LPG and followed by light crudes for directly cracking into ethylene, than the conventional route of refining light, medium crudes into ethylene as well as oil products," the Sinopec economist added.
(MENAFN- The Rio Times) The iron ore saw a positive shift on Monday. Traders responded to news of potential fiscal stimulus from China. This development improved sentiment in the world's largest steel-consuming market.
China's Dalian Commodity Exchange saw January iron ore futures rise by 1.97%. The price reached 800.5 yuan (R$631.59 / $112.78) per ton. Early trading witnessed a jump of over 3%.
In Singapore, the benchmark November iron ore contract increased by 1.4%. It reached $107.7 (R$602.12) per ton. Steel prices on the Shanghai Futures Exchange also gained ground.
Rebar and hot-rolled coil both rose by about 1.36%. Wire rod advanced 0.96%, while stainless steel saw a 0.32% increase. These gains reflect growing optimism in the sector.
On Saturday, China promised a new package of fiscal policies. This announcement boosted sentiment across various commodity markets, including steel. Chinese consultancy Mysteel reported this positive trend.
As steel product prices strengthened, more Chinese steel mills became profitable. The average operating rate among 87 steel mills increased by 1.85 percentage points between October 4 and 11.
However, some concerns linger. Signs of deflation in China and unclear local stimulus measures cloud demand prospects. Consumer inflation unexpectedly fell in September, while producer price deflation worsened.
These economic indicators put pressure on Beijing to implement more stimulus measures quickly. The goal is to revive sluggish demand and stabilize economic activity.
Beijing announced plans for more "countercyclical measures" this year. Yet, investors remain uncertain about the scale and timing of the proposed stimulus package.
In short, the iron or market continues to watch China's economic moves closely. Any concrete steps towards stimulus could further boost commodity prices and market sentiment.
MENAFN14102024007421016031ID1108777775
https://menafn.com/1108777775/Iron-Ore-Prices-Climb-As-Beijing-Hints-At-Economic-Boost
Posted 08:35 -- December corn is up 3 cents per bushel, November soybeans are up 7 1/2 cents per bushel. December KC wheat is up 1/2 cent per bushel, December Chicago wheat is up 1 cent per bushel and December Minneapolis wheat is up 2 1/2 cents. The Dow Jones Industrial Average is up 32.06 points at 42,772.48. The U.S. Dollar Index is up 0.010 at 103.27. November crude oil is up $0.10 per barrel at $70.68. Corn, soybeans, soy products and now wheat are all higher, with corn getting a boost from large new sales. The USDA announced several new export sales: Sold 175,000 mt (6.4 mb) of soybeans to unknown destinations for 2024-25. Sold 322,000 mt (12.7 mb) of corn to unknown for 2024-25. Sold 1,623,060 mt (63.8 mb) of corn to Mexico, with 41 mb for 2024-25 and 22.8 mb for 2025-26.
Livestock
OMAHA (DTN) -- December live cattle is steady, November feeder cattle are down $0.48 at $246., December lean hogs are up $1.93 at $77.15, December corn is up 3 cents per bushel and December soybean meal is up $1.50. The Dow Jones Industrial Average is up 248.93 points. Thus far it's been a mixed day for the livestock complex as all three of the markets are heading into Wednesday's noon hour mixed. No cash cattle trade has developed yet but packer interest could improve throughout the day, although the bulk of the week's trade will likely be delayed until Thursday or Friday.
Posted 08:39 -- December live cattle are up $0.18 at $186.70, November feeder cattle are down $0.33 at $246.15, December lean hogs are up $0.60 at $75.825, December corn is up 2 3/4 cents per bushel and December soybean meal is up $2.90. The Dow Jones Industrial Average is up 29.52 points. After a lower ending day on Tuesday, the livestock complex is off to a better start Wednesday morning. Asking prices are noted in the South at $189 to $190 but are still not established in the North. Packer interest could improve throughout the day, but cattle aren't expected to trade until later in the week.
(c) Copyright 2024 DTN, LLC. All rights reserved.
https://www.dtnpf.com/agriculture/web/ag/news/article/2024/10/16/periodic-updates-grains-livestock-3
SINGAPORE: Dalian iron ore futures prices dropped on Thursday to their lowest in more than two weeks, as higher supplies from top miners outweighed support from fresh property-sector stimulus measures in top consumer China.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 3.47% lower at 766.0 yuan ($107.54) a metric ton. The contract had earlier slumped as much as 3.84% to 762.0 yuan, its weakest level since Sept. 30.
The benchmark November iron ore on the Singapore Exchange was 2.33% lower at $102.3 a ton, as of 0330 GMT. BHP, the world’s largest listed miner, beat first-quarter iron ore output estimates, spurred by easing bottlenecks at its Western Australia operations.
On Tuesday, Brazilian miner Vale reported its highest quarterly iron ore production since 2018.
On the back of significantly increased Brazilian shipments, the total volume of iron ore shipped to global destinations from 19 ports and 16 mining firms in Australia and Brazil rose 3.7% week-on-week in the Oct. 7-13 week after three straight weeks of declines, Chinese consultancy Mysteel said.
Meanwhile, China announced fresh stimulus measures for its ailing property sector, a key user of steel.
Iron ore futures climb
China will expand a “white list” of housing projects eligible for financing and increase bank lending for such developments to 4 trillion yuan ($562 billion), Minister of Housing and Urban-Rural Development Ni Hong said. Other steelmaking ingredients on the DCE tumbled, with coking coal and coke down 4.91% and 4.27%, respectively.
Steel benchmarks on the Shanghai Futures Exchange posted losses.
Rebar slid 3.45%, hot-rolled coil shed 2.77%, wire rod lost 1.35% and stainless steel dropped 1.03%.
BEIJING, Oct 12 (Reuters) - China pledged on Saturday to "significantly increase" debt to revive its sputtering economy, but left investors guessing on the overall size of the stimulus package, a vital detail to gauge the longevity of its recent stock market rally.
Finance Minister Lan Foan told a press conference Beijing will help local governments tackle their debt problems, offer subsidies to people with low incomes, support the property market and replenish state banks' capital, among other measures.
These are all steps investors have been urging China to take as the world's second-largest economy loses momentum and struggles to overcome deflationary pressures and lift consumer confidence amid a sharp property market downturn.
But Lan's omission of a dollar figure for the package is likely to prolong investors' nervous wait for a clearer policy roadmap until the next meeting of China's rubber-stamp legislature, which approves extra debt issuance. A date for the meeting has yet to be announced but it is expected in coming weeks.
The press conference "was strong on determination but lacking in numerical details," said Vasu Menon, managing director for investment strategy at OCBC in Singapore.
"The big bang fiscal stimulus that investors were hoping for to keep the stock market rally going did not come through," said Menon, adding this may "disappoint some" in the market.
A wide range of economic data in recent months has missed forecasts, raising concerns among economists and investors that the government's roughly 5% growth target this year was at risk and that a longer-term structural slowdown could be in play.
Data for September, which will be released over the coming week, is expected to show further weakness, but officials have expressed "full confidence" that the 2024 target will be met.
New fiscal stimulus has been the subject of intense speculation in global financial markets after a September meeting of the Communist Party's top leaders, the Politburo, signalled an increased sense of urgency about the economy.
Chinese stocks (.CSI300), opens new tab reached two-year highs, spiking 25% within days since that meeting, before retreating as nerves set in given the absence of further policy details from officials. Global commodity markets from iron ore to industrial metals and oil have also been volatile on hopes stimulus will stoke sluggish Chinese demand.
Reuters reported last month that China plans to issue special sovereign bonds worth about 2 trillion yuan ($284.43 billion) this year as part of fresh fiscal stimulus.
Half of that would be used to help local governments tackle their debt problems, while the other half will subsidise purchases of home appliances and other goods as well as finance a monthly allowance of about 800 yuan, or $114, per child to all households with two or more children.
Separately, Bloomberg News reported that China is also considering injecting up to 1 trillion yuan of capital into its biggest state banks, though analysts say more lending firepower will come up against stubbornly weak credit demand.
STIMULUS STEP-UP
The central bank in late September announced the most aggressive monetary support measures since the COVID-19 pandemic, including interest rate cuts, a 1 trillion yuan liquidity injection and other steps to support the property and stock markets.
While the measures have lifted market sentiment, analysts say Beijing also needs to firmly address more deeply-rooted structural issues such as boosting consumption and reducing its reliance on debt-fuelled infrastructure investment.
Most of China's fiscal stimulus still goes into investment, but this leads to debt outpacing economic growth as returns are dwindling.
The International Monetary Fund estimates central government debt at 24% of economic output. But the fund calculates overall public debt, including that of local governments, at about $16 trillion, or 116% of GDP.
"There is still relatively big room for China to issue debt and increase the fiscal deficit," said Lan.
He added local governments still have a combined 2.3 trillion yuan to spend in the last three months of this year, including debt quotas and unused funds. Municipalities will be allowed to repurchase unused land from property developers, he said.
Low wages, high youth unemployment and a feeble social safety net mean China's household spending is less than 40% of annual economic output, some 20 percentage points below the global average. Investment, by comparison, is 20 points above.
Chinese officials have repeatedly pledged over the past decade to increase efforts to boost domestic demand, but made little progress on that front, which would require a fundamental structural re-think of many policies and institutions.
Lan said more reforms will be announced "step-by-step."
"The focus seems to be around funding the fiscal gap and solving local government debt risks," Huang Xuefeng, credit research director at Shanghai Anfang Private Fund Co, said of the press briefing.
"Without arrangements targeting demand and investment, it's hard to ease deflationary pressure."
Copper stocks, like Freeport-McMoRan Inc FCX and Teck Resources Ltd TECK, may face another turbulent period if Donald Trump returns to office.
JPMorgan analyst Bill Peterson warns that Trump 2.0’s trade policies could deal an even more significant blow than his first term.
Trump 1.0 Vs. Trump 2.0: Higher Stakes, Bigger Tariffs
During Trump’s presidency, the 2018 trade war slapped a 25% tariff on Chinese imports, leading to a sharp downturn in metal prices and causing global mining stocks to fall by over 10%.
Copper, a key indicator of global economic health, was hit hard as fears of slowing demand and higher costs rippled through the markets. The United States Copper Index Fund ETV CPER serves as a performance barometer for copper as a commodity. The Global X Copper Miners ETF COPX tracks the equity of copper miners, with its top holdings including KGHM Polska Miedz SA KGHPF, First Quantum Minerals Ltd FQVLF, Teck Resources and Freeport-McMoRan.
Peterson said that if Trump returns to the White House, his proposed Trump 2.0 policies could increase tariffs on Chinese imports to 60%, a significant escalation that would amplify trade tensions.
He suggests that while China’s share of U.S. imports has dropped from over 21% in 2018 to under 14% in 2023, the sheer size of the tariff increase could lead to even more significant disruptions in global copper demand, potentially increasing the impact by 40%.
The Great Copper Rollercoaster: Boom, Bust, Repeat?
Comparing the two periods, Trump's 2016 election win initially buoyed copper stocks, with investors optimistic about deregulation and infrastructure spending.
However, the optimism quickly faded as the trade war unfolded in 2018, causing copper prices and related stocks to plunge. A similar pattern could unfold under Trump 2.0: a post-election boost followed by another painful downturn if tariffs escalate, according to the analyst.
Adding further uncertainty, Peterson points to upcoming Federal Reserve rate cuts.
History’s Lesson: Copper Tariffs Are Trouble
Historically, industrial metals like copper have underperformed following rate-cutting cycles, with the Bloomberg Industrial Metals Index typically falling 6% on average within nine months of cuts.
Despite being long-term bullish on copper due to structural demand, Peterson advises caution in the near term, as macro risks remain significant.
The lesson from Trump 1.0 is clear: tariffs led to a steep decline in copper equities, and Trump 2.0's aggressive stance could trigger a similar or even worse outcome for the sector.
GOOGLE AND KAIROS POWER PARTNER TO DEPLOY 500 MW OF CLEAN ELECTRICITY GENERATION
The deal represents the first corporate agreement for multiple deployments of a single advanced reactor design in the United States.
Alameda, CA – October 14, 2024 – Kairos Power and Google have signed a Master Plant Development Agreement, creating a path to deploy a U.S. fleet of advanced nuclear power projects totaling 500 MW by 2035.
Under the agreement, Kairos Power will develop, construct, and operate a series of advanced reactor plants and sell energy, ancillary services, and environmental attributes to Google under Power Purchase Agreements (PPAs). Plants will be sited in relevant service territories to supply clean electricity to Google data centers, with the first deployment by 2030 to support Google’s 24/7 carbon-free energy and net zero goals.
The innovative, multi-plant agreement will support technology development by extending Kairos Power’s iterative demonstration strategy through its first commercial deployments. Building on progress from the early iterations, each new plant will enable continued learning and optimization to support accelerated commercialization. Along the way, milestone-based accountability baked into the agreement will establish confidence in Kairos Power’s ability to deliver throughout the long-term partnership.
“Our partnership with Google will enable Kairos Power to quickly advance down the learning curve as we drive toward cost and schedule certainty for our commercial product,” said Mike Laufer, Kairos Power CEO and co-founder. “By coming alongside in the development phase, Google is more than just a customer. They are a partner who deeply understands our innovative approach and the potential it can deliver.”
“Having an agreement for multiple deployments is important to accelerate the commercialization of advanced nuclear energy by demonstrating the technical and market viability of a solution critical to decarbonizing power grids while delivering much-needed energy generation and capacity,” said Jeff Olson, Kairos Power Vice President, Business Development & Finance. “This early commitment from Google provides a strong customer demand signal, which reinforces Kairos Power’s continued investment in our iterative development approach and commercial production scale-up.”
Google’s deep commitment to decarbonization makes them a leader in clean energy development. Since 2010, the company has signed more than 115 agreements totaling over 14 GW of clean energy generation capacity. The additional generation that will be developed under this multi-plant agreement with Kairos Power will complement Google’s existing use of variable renewables, like solar and wind, and help them reach their ambitious 24/7 carbon-free energy and net zero goals.
“This landmark announcement will accelerate the transition to clean energy as Google and Kairos Power look to add 500 MW of new 24/7 carbon-free power to U.S. electricity grids,” said Michael Terrell, Google Senior Director of Energy and Climate. “This agreement is a key part of our effort to commercialize and scale the advanced energy technologies we need to reach our net zero and 24/7 carbon-free energy goals and ensure that more communities benefit from clean and affordable power in the future.”
Kairos Power applauds Google for its continued leadership as a first mover, helping to bring advanced reactor technology to market, as they have done with other clean energy technologies. Google’s commitment will catalyze new nuclear development, support U.S. decarbonization goals, and expand access to safe, clean, and affordable nuclear energy aligned with Kairos Power’s mission: To enable the world’s transition to clean energy with the ultimate goal of dramatically improving people’s quality of life while protecting the environment.
About Kairos Power
Kairos Power is a mission-driven nuclear technology, engineering, and manufacturing company singularly focused on commercializing the fluoride salt-cooled, high-temperature reactor (KP-FHR) – a clean energy solution that can be deployed with robust safety at an affordable cost to enable deep decarbonization. Founded in 2016, the company is unique in applying a rapid iterative development approach and vertical integration strategy to bring advanced reactor technology to market. In 2023, the U.S. Nuclear Regulatory Commission issued a construction permit for Kairos Power’s Hermes demonstration reactor – the first non-water-cooled reactor to be approved for construction in the U.S. in more than 50 years. Kairos Power’s mission is to enable the world’s transition to clean energy with the ultimate goal of dramatically improving people’s quality of life while protecting the environment. Learn more at kairospower.com.
About Google
Since our earliest days, Google has been on an ambitious journey to help build a more sustainable future. Through our products, we aim to empower individuals, cities, and partners to collectively reduce 1 gigaton of their carbon equivalent emissions annually by 2030. For ourselves, we have a bold goal to reach net-zero emissions across all of our operations and value chain, which includes running on 24/7 carbon-free energy (CFE) on every grid where we operate. A sustainable future requires systems-level change, strong government policies, and new technologies. We know that AI has the potential to help solve some of climate’s biggest challenges. Scaling AI and using it to accelerate climate action will be just as crucial as addressing the environmental impact associated with it. We’re committed to collaboration and playing our part, every step of the way.
Contact:
Ashley Lewis
Corporate Communications
media@kairospower.com
(510) 775-1685
The National Energy System Operator issued a warning of a potential power shortfall, which was later cancelled
The UK’s National Energy System Operator (NESO) issued an Electricity Capacity Market Notice (CMN) on Monday, 14th October 2024, warning of a potential shortfall between projected supply and demand.
The notice, triggered when the margin fell below the required levels, was set to come into effect at 4:30 p.m.
However, it was cancelled later at 2:05 p.m.
In response to the CMN, Tom Greatrex, Chief Executive of the Nuclear Industry Association, stressed the importance of new investments in nuclear power.
Tom Greatrex said: “Without fresh investment and decisions on new nuclear projects at Sizewell C and Wylfa as well as Small Modular Reactors, these warnings will become more commonplace and we will have to continue relying on volatile gas markets to fill the gaps in supply, threatening out energy security and driving up bills and emissions.”
https://www.energylivenews.com/2024/10/14/uk-electricity-supply-warning-issued-and-cancelled/
Tuesday 16th October 2024
Wednesday 17th October 2024
Shanghai Wednesday 17th October 2024
ROCKVILLE, Md., October 16, 2024 – X-Energy Reactor Company, LLC (“X-energy”), a leader in advanced nuclear reactor and fuel technology, today announced a Series C-1 financing round of approximately $500 million, anchored by Amazon.com, Inc. (“Amazon”). The investment will help meet growing energy demands by funding the completion of X-energy's reactor design and licensing as well as the first phase of its TRISO-X fuel fabrication facility in Oak Ridge, Tennessee. Additionally, the funding will support future carbon-free projects that will use X-energy’s Xe-100 advanced small modular nuclear reactors (“SMRs”). Citadel Founder and CEO Ken Griffin, affiliates of Ares Management Corporation (“Ares”), NGP, and the University of Michigan join Amazon’s Climate Pledge Fund in the financing round.
Amazon and X-energy are also collaborating to bring more than 5 gigawatts of new power projects online across the United States by 2039, representing the largest commercial deployment target of SMRs to date. The efforts will help meet growing energy demands in key locations through direct project investments and long-term power purchase agreements to help power Amazon operations. Further, X-energy and Amazon plan to establish and standardize a deployment and financing model to develop projects in partnership with infrastructure and utility partners.
The companies will initially support a four-unit 320-megawatt (“MW”) project with regional utility Energy Northwest in central Washington with the option to increase that project to 12 units and 960 MW. Amazon is immediately committing a direct investment in the Energy Northwest project to fund early development work that X-energy will perform.
“This collaboration between Amazon and X-energy is a significant step toward accelerating advanced nuclear technologies that can help us bring new sources of carbon-free energy to the grid cost-effectively and safely,” said Kevin Miller, Amazon’s Vice President of Global Data Centers. “We need smart solutions that can help us meet growing energy demands while also addressing climate change. X-energy’s technology will be integral in helping achieve this, and is an important step in Amazon’s work to achieve our Climate Pledge commitment to be net-zero by 2040.”
“Nuclear is an important source of clean and reliable power that our nation needs to meet the growing demand for energy,” said Ken Griffin, Founder and CEO of Citadel, whose affiliate is one of the lead investors in this round. “X-energy provides an impactful solution to a critical challenge – and the support Amazon, Dow, and other major corporations have provided underscores its potential and merit.”
“Amazon and X-energy are poised to define the future of advanced nuclear energy in the commercial marketplace,” said X-energy CEO J. Clay Sell. “To fully realize the opportunities available through artificial intelligence, we must bring clean, safe, and reliable electrons onto the grid with proven technologies that can scale and grow with demand. We deeply appreciate our earliest funders and collaborators, notably the U.S. Department of Energy and Dow Inc. With Amazon, Ken Griffin, and our other strategic investors, we are now uniquely suited to deliver on this transformative vision for the future of energy and tech.”
X-energy’s pioneering Xe-100 advanced small modular reactor and TRISO-X fuel are among the safest and most reliable clean energy technologies. Each reactor unit is engineered to provide 80 MW of electricity and is optimized in multi-unit plants ranging from 320 MW to 960 MW. The innovative and simplified modular design is road-shippable and intended to drive geographic scalability, accelerate construction timelines, and create more predictable and manageable construction costs. X-energy’s advanced reactor technology offers remarkable efficiency and resiliency to meet the requirements of energy-intensive data centers, allowing Amazon to align its growth and carbon-free energy goals.
X-energy is developing its initial Xe-100 plant at Dow Inc.’s UCC Seadrift Operations manufacturing site on the Texas Gulf Coast. Supported by the U.S. Department of Energy’s (“DOE”) Advanced Reactor Demonstration Program (“ARDP”), the project will be the first grid-scale advanced nuclear reactor deployed to serve an industrial site in North America, providing the site with zero-carbon emissions power and high-temperature steam. ARDP also supports X-energy’s first-in-the-nation commercial facility to exclusively manufacture TRISO fuel, which DOE calls “the most robust nuclear fuel on Earth.”
Additional Commentary
Kam Ghaffarian, Ph.D., Founder and Executive Chairman, X-energy
Allyson Satin, Partner, Ares
Maritza Liaw, Partner, NGP
Erik Lundberg, Chief Investment Officer, University of Michigan
Advisors
Latham & Watkins LLP is acting as legal advisor to X-energy, and Moelis & Company is acting as exclusive financial advisor and placement agent.
BATTERIES: General Motors pledges $625 million to help fund the contested Thacker Pass lithium mine under development in Nevada in an effort to boost battery material’s domestic supplies. (Las Vegas Review-Journal)
ALSO:
OIL & GAS:
Phillips 66 says “market dynamics” prompted plans to shutter its Los Angeles-area refinery that supplies 8% of the state’s gasoline next year and replace its output with biofuels from its San Francisco Bay-area complex. (Los Angeles Times)
Alaska Gov. Mike Dunleavy looks to lure data centers to the state, saying their high electricity demand would strengthen the case for a proposed multi-billion dollar natural gas pipeline from the North Slope. (Northern Journal)
BIOFUELS: The U.S. Energy Department tentatively awards a Montana biodiesel refinery $1.44 billion in loan guarantees to produce sustainable aviation fuels from leftover animal fats and greases. (Canary Media)
UTILITIES: Xcel Energy submits its just transition plan to Colorado regulators proposing to replace closing coal plants and meet increasing demand with a mix of new wind, solar, geothermal and gas generators, battery storage and a nuclear reactor. (CPR)
CLIMATE: Legal experts say a 2019 court ruling would probably shield California’s and Washington’s carbon markets from a potential Trump administration’s likely challenges. (E&E News)
CARBON CAPTURE:
Wyoming’s energy agency asks the governor to allocate $7.8 million in taxpayer funds to help a utility comply with a state law requiring it to study carbon capture technology for aging coal plants. (WyoFile)
A Colorado startup begins developing a demonstration plant in New York designed to recycle discarded gypsum and pull carbon dioxide from the air. (Canary Media)
WIND: A Bill Gates-backed startup says it has secured $14 million for a proposed wind facility in Wyoming that would use the firm’s horizontal-axis turbines. (Power)
GRID: The Bonneville Power Administration proposes spending about $3 billion on 13 transmission and substation projects designed to bolster its grid to accommodate increasing renewables and growing power demand. (Idaho Capital Sun)
ELECTRIC VEHICLES: Pacific Gas & Electric launches a bidirectional electric vehicle charging program compensating customers for discharging EV batteries back to the grid during high demand. (PV Magazine)
HYDROGEN: A southern California transit agency opens a liquid hydrogen-based fueling station for its bus fleet. (news release)
COAL: Colorado officials launch an effort to extinguish underground coal seam fires in an abandoned mine near Boulder. (CBS News Colorado)
COMMENTARY: A California energy executive calls on local governments to comply with a state law requiring instant residential solar permitting and to force homeowners associations to eliminate red tape for rooftop installations. (Fresno Bee)
https://energynews.us/newsletter/general-motors-forks-out-625-million-for-nevada-lithium-mine/
By Haley Zaremba - Oct 17, 2024, 4:00 PM CDT
The use of Artificial Intelligence is rising rapidly as machine learning and large language models become a mainstream aspect of everyday applications. While the applications of AI spike, so too do their energy footprints and associated greenhouse gas emissions. Training AI models requires huge amounts of computing energy, to the effect that energy demand in developed countries has increased in 2024 after years of plateaued growth.
While AI holds enormous promise for building more efficient, stable, and smart energy grids, it also poses a major threat to our energy security and decarbonization goals. As the size and reach of the sector skyrocket, the computational power necessary to sustain the growth of AI is doubling approximately every 100 days. Currently, ChatGPT requires around 564 MWh each day, which would be enough energy to power 18,000 homes in the United States. With this scale and speed of growth, it’s unclear where countries like the United States will source enough energy to meet the rapidly expanding demands of the tech sector, much less do so in a climate-friendly manner.
As a result, the tech sector is scrambling to discover new sources of clean energy. Sam Altman of OpenAI, the company behind ChatGPT, has been an outspoken proponent of increased investment into nuclear fission power production as well as nuclear fusion research and development to power AI’s energy needs. “The AI systems of the future will need tremendous amounts of energy and this fission and fusion can help deliver them,” Altman was quoted in the Wall Street Journal last year. Bill Gates, too, has pledged billions toward nuclear energy investments to help clean up the tech sector, and keep it clean as data centers continue to proliferate.
In addition to the attention toward increased clean energy production, many researchers and scientists are experimenting with ways to make AI more energy-efficient. These largely revolve around different ways of computing which require less energy per calculation. One such solution is the potential application of quantum computing for AI, which would allow large language models to perform highly complex computations faster and with far fewer resources. In certain cases, quantum computers could be 100 times more energy efficient than current supercomputers.
But there is another potential computational intervention that would be far simpler and more realistic to implement in the near term, as quantum computing is still more theoretical than applicable in critical domains. A team of engineers at BitEnergy AI, an AI inference technology company, has discovered that a novel integer-addition algorithm could reduce AI’s energy footprint by a whopping 95%. Their findings were published in a scientific paper this month through Cornell University.
“The new technique is basic—instead of using complex floating-point multiplication (FPM), the method uses integer addition,” Tech Xplore recently reported. “Apps use FPM to handle extremely large or small numbers, allowing applications to carry out calculations using them with extreme precision. It is also the most energy-intensive part of AI number crunching.”
This new technological breakthrough cannot be implemented soon enough. AI is expected to represent 3.5 percent of the global electricity consumption by 2030. Together with electric vehicles, AI is on track to add 290 terawatt hours of electricity demand to the United States energy grid over the same period to reach the same level of energy consumption as the entire country of Turkey, the world’s 18th largest economy, according to projections by Rystad Energy.
“When you look at the numbers, it is staggering,” Jason Shaw, chairman of the Georgia Public Service Commission, a U.S. electricity regulator, told the Washington Post earlier this year. “It makes you scratch your head and wonder how we ended up in this situation. How were the projections that far off? This has created a challenge like we have never seen before.”
Thankfully, it seems that researchers are rising to this challenge, and the way that we run large language models could soon be far more energy-efficient without compromising performance.
By RFE/RL staff - Oct 17, 2024, 3:00 PM CDT
With the result of Kazakhstan’s controversial nuclear power referendum being a resounding “yes,” attention now turns to which country will build the facility.
Kazakhstan’s government has spoken in favor of an international consortium of nuclear energy companies taking up the task while noting that a final decision will not be made until next year.
But if Kazakhstan were to ignore Russia’s Rosatom completely, it would be bucking a global trend.
Amid the war in Ukraine, and Moscow’s increased diplomatic isolation, nuclear energy projects in foreign countries have become an even more important part of Russia's efforts to retain clout on the international stage.
Indeed, in a paper on Russian “nuclear energy diplomacy” published last year, scholars from the Norwegian Institute of International Affairs argued that nuclear energy could be “Russia’s overlooked trump card in a decarbonizing world.”
With the stakes high, the Kremlin will no doubt be expecting its energy-strapped partners in Central Asia to play ball, with Uzbekistan already signed up for a small Rosatom-built nuclear power plant and Kyrgyzstan mulling a facility that would be even smaller.
But at what cost -- financial or otherwise -- might Rosatom’s growing outreach in the neighborhood come?
"Central Asia has a special place in Russian nuclear energy diplomacy because of the post-Soviet heritage, meaning that Rosatom's operations in the region are easier and smoother than elsewhere -- no language barrier, institutional and personal contacts going back to Soviet times," a co-author of the paper, Kacper Szulecki, told RFE/RL.
In this way “nuclear energy can be an element of [Russia’s] maintaining visible economic and symbolic presence in the region,” he said.
At the same time, nuclear power projects can create “hard dependencies” for host countries if their share of total power production becomes significant, while posing security risks that are unique to nuclear power, Szulecki argued.
“Some of the risks we examined [in the paper], like sabotage, are things which have a low likelihood of occurring, but potentially very destructive impacts,” he said.
Globe-Trotting Rosatom
According to The World Nuclear Industry Status Report (WNISR) 2024, Rosatom “is the primary constructor and exporter of reactors, building 26 out of the 59 units under construction worldwide as of mid-2024.”
At least 20 of those units are being built outside Russia, with Bangladesh, China, Egypt, India, and Turkey among the clients.
And while nuclear power as a whole has lost its share of global power production since the 2022 Fukushima accident, Russia remains “unashamedly nuclear” in the words of the World Nuclear Association, an advocate for the global industry, prioritizing new reactors over renewables for the most part.
It’s not hard to see why.
The bills for nuclear power stations are large and seemingly growing.
The 4.8 gigawatt (GW) Akkuyu Nuclear Power Plant that Rosatom began building in Turkey’s Mersin Province in 2018 is commonly referred to in the media as a $20 billion facility.
But as recently as June, Rosatom General-Director Aleksei Likhachev put the price of the plant that will supply around 10 percent of Turkey’s total power at $24-$25 billion.
The 2.2 GW facility in Bangladesh is priced at $12.65 billion, with the vast majority of the financing coming via a Russian loan. The agreement for that facility was reached in 2011, with construction only beginning in 2017.
And Kazakh Deputy Prime Minister Roman Sklyar acknowledged -- once the results of the referendum were already in -- that the $10-billion to $12 billion price tag for the model his government is committing to might rise by as much as 50 percent over the next decade with inflation.
While Rosatom's aggressive search for clients is ongoing, it has also lost some as a result of the war.
In 2022, Finnish-led consortium Fennovoima announced that it was pulling out of its planned reactor project with the company, citing delays and increased risks due to the war in Ukraine.
Rosatom has not been directly targeted with sanctions, but some of its supply chains have been affected, delaying projects.
Those risks are seemingly on the minds of policymakers in Central Asia, too.
Tellingly, Skylar said Kazakhstan would include a “sanctions clause” in any agreement for the nuclear power plant, without naming Russia specifically.
Uzbekistan, meanwhile, has reined in its nuclear vision.
In 2018, when Russian President Vladimir Putin paid a visit to Tashkent, the two countries broke ground on building a nuclear facility with a projected 2.4 GW capacity, which would have accounted for around one-fifth of Uzbekistan’s energy needs. It was to cost $11 billion.
The needle on that project never really moved after that, and when Putin and his counterpart Shavkat Mirziyoev confirmed a fresh deal for Rosatom to build a nuclear facility in the country of 35 million people earlier this year, it was for a facility that will feature six nuclear reactors with capacities of just 55 megawatts (MW) each.
Talking Consortiums
Central Asian neighbor Kyrgyzstan said in 2023 that it was also in talks with Rosatom for a relatively small nuclear facility with a reported 110 MW capacity.
But in May, Deputy Energy Minister Taalaibek Baygaziev said that just preparing specialists and laying the ground for such a project would take a full decade. By contrast, Rosatom is expected to complete its first foreign foray into wind power -- a 100-MW wind farm in Kyrgyzstan’s Issyk-Kul Province -- in the next two years.
While power deficits in Kyrgyzstan and Uzbekistan are more severe, they are also becoming a problem in Kazakhstan, where authorities are adamant that nuclear energy is a big part of the solution.
This week, after the results of a tightly managed October 6 plebiscite showed that more than 70 percent of voters had backed a “yes” vote on the construction of a nuclear power plant, officials from President Qasym-Zhomart Toqaev downward reiterated their preference for an “international consortium” to build the plant.
Sklyar said that such a consortium would consist of “no more than five countries,” a figure that presumably takes in China, France, Russia, and South Korea -- the countries that have already registered their interest in building the facility -- as well as Kazakhstan itself.
This idea of an international consortium is in keeping with Kazakhstan’s desire to find common ground for partner countries amid sky-high geopolitical tensions.
But even ignoring the complications of getting rivals to work together, that isn’t really how nuclear power plants get built, says Mycle Schneider, coordinator and publisher of the 2024 WNISR survey of the industry.
“Yes, nuclear power projects are international and often hundreds of companies can be involved," Schneider told RFE/RL.
"But the main question is always, ‘Who will be the responsible builder that takes on the investment risk?’ Five companies with a 20 percent share each of the project? That doesn’t happen."
And of those companies orbiting the project -- China’s CNNC, France’s EDF, South Korea’s KEPCO, and Rosatom, “Rosatom is the only one that has been really successful winning foreign contracts to build reactors lately,” the industry expert noted.
In a Kazakh government FAQ on the referendum, the government reassured those fearful that the facility might be manipulated by a foreign power. which could wield influence over the country, that the issue was “purely commercial, not political.”
“The selected company or group of companies will only be involved in the construction -- not the operation -- of the station,” officials insisted.
Again, Schneider argues it's not that simple.
“First, the acquisition of a nuclear power plant is a political issue in itself. Secondly, every power reactor design is highly specific and cannot be operated without technical assistance from the provider," Schneider told RFE/RL. "Operators are even trained for individual reactor models and cannot simply move from one to another. Training of autonomous operators takes years.”
https://oilprice.com/Alternative-Energy/Nuclear-Power/Kazakhstans-Major-Nuclear-Power-Dilemma.html
By Editor -October 18, 2024
China posted its slowest growth in a year and a half on Friday (Oct 18) as authorities come under pressure to follow up a recent slew of stimulus with more action to reignite the world’s number two economy.
Authorities have since last month unveiled a raft of measures to kickstart sluggish consumption and address a prolonged and debilitating debt crisis in the country’s colossal property sector.After a blistering market rally fuelled by hopes for a long-awaited “bazooka stimulus”, optimism has tapered as authorities refrained from providing a specific figure for the bailout or detailing any of the pledges.
On Friday, Beijing’s National Bureau of Statistics (NBS) said the economy expanded 4.6 per cent year on year in the third quarter, down from 4.7 per cent in the previous three months and the slowest since early 2023, when China was emerging from its strict zero-Covid policy.
The NBS acknowledged a “complicated and severe external environment … as well as new problems of domestic economic development”.
Still, figures showing a forecast-beating rise in September retail sales – a gauge of consumer activity – provided a ray of light after a string of below-par readings on a range of indicators including inflation, investment and trade.
And ahead of the data, state media said the country’s top banks had cut interest rates on yuan deposits for the second time this year as part of a move to boost lending.Beijing has said it has “full confidence” in achieving its annual growth goal, but economists say more direct fiscal stimulus is needed to revive activity and restore business confidence.
Recent weeks have seen authorities unveil a raft of measures to funnel cash into the economy including a string of rate cuts and loosened restrictions on home-buying.
China’s central bank on Friday launched one such measure – a swap facility for funds and insurers with an “initial application quota exceeding 200 billion yuan (US$28.1 billion)”, state media said.
The mechanism implemented by the People’s Bank of China (PBoC) will provide greater liquidity for capital markets, which policymakers hope will offer support for the wider economy.
And in a possible sign of more relief to come, PBoC chief Pan Gongsheng said on Friday that officials were considering a further cut to the amount commercial lenders must hold in reserve before the end of the year.
The Dangote Group, owner of West Africa’s largest refinery, is preparing to start crude oil production from two Nigerian oil assets in early 2025, according to a report by S&P Global Commodity Insights on 10 October.
To support this, the company is searching for a floating production, storage, and offloading (FPSO) vessel capable of holding 650,000 barrels of crude oil. This move marks a key step in Dangote’s plans to expand into the upstream oil sector.
An insider from the company told Tribune, “Production at our Niger Delta projects is expected to begin at approximately 20,000 barrels per day (b/d), with plans to scale up in the first quarter of 2025.” This will take place at Dangote’s two upstream projects in Oil Mining Leases (OMLs) 71 and 72.
The Dangote Group holds an 85% stake in West African E&P Venture, which has a 45% working interest in these oil blocks. The remaining 55% is owned by the Nigerian National Petroleum Company Limited (NNPCL). First E&P, a Nigerian upstream company, is the operator for the projects.
The licences for OMLs 71 and 72 are located in shallow waters in the southeastern Niger Delta, around 22 kilometres from the Bonny terminal. These areas include the Kalaekule and Koronama oilfields, which are expected to boost Nigeria’s oil output.
As Dangote approaches its production targets, this venture is seen as a significant milestone in advancing Nigeria’s oil industry and enhancing the country’s energy capabilities. This development will contribute to Nigeria’s oil production capacity, helping to strengthen its position in the global energy market.
https://newscentral.africa/crude-oil-production-at-dangote-refinery-to-begin-soon/
SINCE Oct 1, the West Texas Intermediate (WTI) crude oil price has climbed significantly, rising by more than US$8 per barrel. This sharp rise was triggered by escalating geopolitical tensions in the Middle East, notably when Iran launched around 200 missiles at Israeli targets overnight.
The growing speculation that Israel might retaliate by striking Iranian oil facilities has raised fears of a major supply disruption, potentially affecting 4 per cent of the global oil supply. Given the fragility of the region and its crucial role in oil production, such tensions could have far-reaching effects on global oil markets.
Despite a reported increase in US crude oil inventories, with data from the Energy Information Administration last week showing an increase of 5.8 million barrels (far exceeding the estimated two million barrels), this has not pushed prices lower.
The impact of the inventory gains was limited by the effects of Hurricanes Helene and Milton. These storms have driven up demand for petrol in the state of Florida, with about a quarter of fuel stations running out of supplies. This localised surge in demand became a counterbalance to the inventory surplus and pushed up crude oil price.
From a technical perspective, the WTI crude oil price has shown signs of a short-term bullish trend. The price has recovered above a previous horizontal support breakdown level at US$72 a barrel. This short-term bullish reversal price action is confluent with the breakout of a downward resistance line which has held since the start of July 2024.
Moving forward, the WTI crude oil prices will likely rebound further in the short term, pushing towards the next resistance level at US$80 a barrel. This would represent a retest of a long-term downtrend resistance line, and the previous swing-high resistance level formed in mid-August 2024.
In summary, while supply concerns and technical indicators suggest the potential for a short-term price rebound, the market remains sensitive to geopolitical risks and shifts in global economic conditions. The convergence of these factors could continue to drive volatility in the crude oil market, especially as the world grapples with geopolitical uncertainty and fluctuating demand.
Investors and analysts will closely watch for further developments in the Middle East and the release of new data, such as US inflation figures and China’s economic stimulus measures, which could influence global oil demand and prices.
The writer is research analyst, Phillip Securities Research
https://www.businesstimes.com.sg/companies-markets/wti-rebound-short-term
Talk of a possible disruption to traffic in the world's most vital oil cargo lane, the Strait of Hormuz, resurfaced as markets and traders are awaiting the next move in the Israel-Iran standoff.
An Iranian blockade, or an attempt at such, of the narrow strait between Oman and Iran connecting the Persian Gulf with the Gulf of Oman and the Arabian Sea could easily send oil prices soaring above $100 per barrel and reaching all-time highs, analysts say.
However, these same analysts see a Strait of Hormuz disruption as a low-probability event—for now.
Chances of traffic chaos in the strait through which 21% of daily global petroleum consumption passes are low, but if the worst comes to the worst, the impact will be high—not only on oil prices, but on natural gas markets, too, because Qatar's LNG is passing through the lane.
The Strait of Hormuz, which sees oil flow averaging about 21 million barrels per day (bpd), is rightfully described as the world's most important oil transit chokepoint. It's the main export route of Middle Eastern oil to Asia and the key artery of exports of all major producers in the region, including Iran itself.
But only Saudi Arabia and the United Arab Emirates (UAE) have operating pipelines that can circumvent the Strait of Hormuz, the U.S. Energy Information Administration says.
Iran inaugurated the Goreh-Jask pipeline and the Jask export terminal on the Gulf of Oman with a single export cargo in July 2021. The pipeline's capacity was 300,000 bpd at that time, although Iran has not used the pipeline since then, the EIA notes.
In the event of a supply disruption, the EIA estimates that around 3.5 million bpd of effective unused capacity from these pipelines could be available to bypass the Strait of Hormuz.
Not enough to offset even a day of a possible blockade.
The oil market currently doesn't believe a Strait of Hormuz supply shock is in the cards, although in the worst-case scenario, what is now seen as low probability could turn out to be a disruption of high-impact proportions.
"The rule of thumb in commodity markets is that if supply is severely restricted then the price will often spike to 5-10x its normal level," Bjarne Schieldrop, chief analyst commodities at Sweden's SEB bank, wrote in a note last week.
"So if worst came to worst and the Strait of Hormuz was closed for a month or more then Brent crude would likely spike to USD 350/b, the world economy would crater and the oil price would fall back to below USD 200/b again over some time."
"But seeing where the oil price sits right now the market doesn't seem to hold much probability for such a development at all," Schieldrop said.
The risk looks remote, while both the U.S. and China would move to reopen the Strait if it is blocked, the analyst added.
A significant disruption to the flows in the Strait of Hormuz would put at risk 14 million bpd of oil supply from the Middle Eastern producers and the significant spare capacity of Saudi Arabia and the UAE.
Such a disruption "would be enough to push oil prices to new record highs, surpassing the record high of close to $150/bbl in 2008," Warren Patterson, head of commodities strategy at ING bank, wrote on Friday.
At present, nearly all analysts doubt that the escalation in the Middle East would be that serious as to lead to a blockade of the Strait of Hormuz.
"[W]ill the US really allow Israel to blow up oil facilities in its antagonist's border during an election year? Will Iran really close the Strait of Hormuz which will not only cut off neighbours' exports, but its own, only noteworthy source of international income?" analysts at oil brokerage PMV say.
"Expansion of war and its damage will need to be proven before oil market participants will shake off the over-riding presence of scepticism."
By Irina Slav - Oct 14, 2024, 1:21 AM CDT
Crude oil prices were falling at the start of the week following the latest economic news from China which was interpreted as bearish for oil demand.
That latest news was inflation data for September, which showed consumer prices had only gone up modestly, by 0.4%, falling short of economist expectations of 0.6% as shared with Reuters. The September consumer price figure was also the slowest price rise in three months, Reuters noted in its report.
Lower consumer prices are normally bullish for oil prices because the lower the prices, the stronger the consumption but in this case the dominant interpretation appears to be focusing on weaker prices as reflection of weaker demand that will only weaken further as inflation slows.
“China faces persistent deflationary pressure due to weak domestic demand. The change of fiscal policy stance as indicated by the press conference yesterday (Saturday) would help to deal with such problems,” the chief economist of Hong Kong-based Pinpoint Asset Management told Reuters.
On Saturday, the Chinese government announced it would be injecting further stimulus into the economy, which should have been positive for oil prices. However, Beijing did not elaborate on the size of the stimulus package, which would be in the form of “significantly increased” debt buying from local governments and subsidies to low-income households. Apparently, the only thing traders wanted to hear from that update was exactly how much the Chinese government would spend on these additional stimulus measures.
As a result, oil traders forgot about the Middle East temporarily and focused on the world’s largest oil importer yet again, betting that whatever stimulus it offers, it would not be enough to prop up global stock and commodity markets.
That’s despite reports from Friday that the U.S. will expand its sanctions against Iran, targeting its so-called ghost fleet of oil tankers.
“These measures will help further deny Iran financial resources used to support its missile programs and provide support for terrorist groups that threaten the United States, its allies, and partners,” National Security Adviser Jake Sullivan said, as quoted by Reuters.
By Irina Slav for Oilprice.com
Iran appears to have halted or heavily cut back crude oil exports from its Single Buoy Mooring (SBM) off the Kooh Mobarak oil storage facility. The Kooh Mobarak SBM, 30 nautical miles west of Bandar-e Jask, is Iran’s only point of export outside the Gulf, and does not require passage through the Straits of Hormuz. It was designed specifically to permit continued exports if ever the Straits of Hormuz were closed to shipping, and to exploit saved tanker sailing days when compared with having to load at the nation's primary terminal at Kharg Island.
Throughout September, there was usually an Aframax or VLCC tanker moored at the buoy, where tankers appear to take about two days to load 2 million barrels of heavy crude. The last such sighting at the SBM appears to have been on October 4.
The Kooh Mobarak storage facility and SBM were opened in July 2021 by Iranian President Hassan Rouhani, who was criticized in the Iranian parliament for damaging the pipeline by rushing its opening in the last days of his presidency before testing had been completed. Shortages of capital had delayed the full commissioning of the 1000-kilometer 42-inch pipeline, which brings oil from the crude collection point at Goreh in Bushehr Province. Even now, only 10 of the 20 storage tanks at Kooh Mobarak appear to have been completed.
The project was supposed to ramp up steadily to reach one million bpd by March 2022, using three SBMs. In practice, for most of 2021 and 2022 the facility - when it was operational and not under repair - was loading 300,000 bpd through one SBM, primarily servicing Medium Range tankers used for short-range shipments to the Indian subcontinent.
Contrary to the notion that Kooh Mobarak would be able to continue operations in time of tension because it is located in the Gulf of Oman, the reality has been that it is more vulnerable to interdiction and to unmanned surveillance operations - for example, the monitoring missions carried out by the US Navy’s Task Force 59. In June 2021, the Iranian Navy’s logistics vessel IRINS Kharg (K431) caught fire and sank off Jask close by in mysterious circumstances.
https://maritime-executive.com/article/iran-cuts-oil-exports-from-its-jask-terminal
Biggest Russian Refinery Raises Crude Oil Processing by 4%
10.14.2024 By Tank Terminals - NEWS
October 14, 2024 [Oil Price]- Russia’s biggest crude processing facility by production, the Omsk refinery, increased its crude processing by 4% between January and September compared to the same period last year, according to the refinery owner Gazprom.
The Omsk refinery is located 2,700 kilometers (1,700 miles) east of Moscow and is owned by Gazprom’s oil unit Gazprom Neft.
The facility raised its supply of gasoline to the domestic market by 5% and increased diesel supply by 10%, according to a statement from the refinery cited by Reuters.
Last year, the Omsk refinery accounted for nearly 8% of all crude oil refining in Russia, as it processed about 425,600 barrels per day (bpd) of oil.
While the Omsk refinery reports increased volumes, many other facilities in Russia, especially those in the southwest, have seen extensive maintenance and halts due to attacks from Ukrainian drones this year.
Scheduled maintenance is also boosting the idle refining capacity this month.
Russia has raised the refining capacity volumes it expects to be idle this month by 67% compared to an earlier plan, due to scheduled maintenance at major refineries, Reuters estimates showed earlier this week.
Previously postponed maintenance at Rosneft’s Novokuibyshevsk Refinery in southwestern Russia and maintenance at a unit of Lukoil’s NORSI refinery have now increased the capacity that would be offline in October.
In addition, Rosneft’s refinery in Tuapse on the Black Sea has reportedly halted crude processing since October 1 because of low refining margins, industry sources told Reuters earlier this week.
Apart from some seasonal maintenance, Russia’s crude oil refining capacity has seen this year more idle units because of Ukrainian drone attacks on Russian oil and energy infrastructure.
Ukrainian attacks on Russian oil refineries and other energy infrastructure have become a fixture this year, with drones the weapon of choice for conducting the strikes.
13,300 tank storage and production facilities as per the date of this article.
https://tankterminals.com/news/biggest-russian-refinery-raises-crude-oil-processing-by-4/
Russia’s shadow fleet of oil tankers is expanding, according to research, transporting up to 70% of the country’s seaborne oil despite western efforts to curb Moscow’s wartime energy revenues.
The volume of Russian oil being transported by poorly maintained and underinsured tankers has almost doubled in a year to 4.1m barrels a day by June, according to a report published on Monday by the Kyiv School of Economics (KSE).
The findings underscore the multiple difficulties faced by Kyiv’s western allies in their efforts to isolate Russia’s economy in an attempt to force Moscow to end its war in Ukraine.
In December 2022, the UK – alongside G7 countries, Australia, and the EU – implemented a price cap of $60 a barrel to restrict western companies from transporting, servicing or brokering Russian crude oil cargoes in order to undermine Russia’s oil trade, which is heavily reliant on western-owned and insured tankers.
The move was viewed at the time as a compromise amid concerns that a full embargo could lead to rocketing oil prices and a global oil price shock.
However, Russia quickly discovered a workaround to the measures by utilising a so-called shadow fleet of older tankers with opaque ownership, enabling it to sell a significant portion of its oil above the price cap.
The KSE paper estimates that Russia has invested at least $10bn (£7.6bn) into the fleet since early 2022. “The strategy has significantly reduced the sanctions regime’s leverage,” the report says.
More than 630 tankers – some more than 20 years old – are involved in shipping Russian oil, as well as Iranian crude that has been subjected to sanctions, according to Lloyd’s List Intelligence, a maritime information service.
Western governments have attempted to clamp down on Russia’s shadow fleet, with the UK last month announcing sanctions on 10 ships that it believes to be at the heart of the operation.
KSE, which calls for tougher sanctions on Russian oil, has also warned that the uninsured Russian shadow fleet could soon cause an environmental catastrophe in European waters. Much of the Russian oil is transported through busy international transport routes, including the Baltic Sea and the strait of Gibraltar.
“Large oil spills have so far been avoided but a major disaster is waiting to happen and cleanup costs would reach billions,” the KSE paper reads.
The Swedish foreign minister previously told the Guardian that Moscow appeared prepared to create “environmental havoc” by sailing unseaworthy oil tankers through the Baltic Sea in breach of maritime rules.
Middle East crude benchmarks Oman, Dubai and Murban slipped on Monday as concerns around an escalation of conflict between Israel and Iran eased.
Spot premiums for Oman and Dubai fell toward $1.70 a barrel while IFAD Murban's premium to Dubai quotes dropped under $1.80.
QatarEnergy will close on Tuesday three crude tenders for December-loading supplies. It offered three al-Shaheen crude cargoes to load on Dec. 1-2, 26-27 and 27-28, in addition to Qatar Marine and Qatar Land crude.
Bids will remain valid until Wednesday.
SINGAPORE CASH DEALS
Cash Dubai's premium to swaps fell 17 cents to $1.71 a barrel.
Mitsui will receive a December-loading Upper Zakum crude cargo each from ExxonMobil and Trafigura following the deals.
SELLER-BUYER PRICE ($/BBL) REPSOL-TOTAL 77.68 TRAFIGURA-TOTAL 77.65 PHILLIPS 66-MITSUI 77.65 TRAFIGURA-TOTAL 77.65 EXXONMOBIL-MITSUI 77.65 HENGLI-TOTAL 77.66 EXXONMOBIL-TOTAL 77.65 REPSOL-TOTAL 77.66 PTT-TOTAL 77.65 HENGLI-TOTAL 77.66 EXXONMOBIL-MITSUI 77.65 PHILLIPS 66-VITOL 77.60 PTT-TOTAL 77.65 EXXONMOBIL-TOTAL 77.65 TRAFIGURA-TOTAL 77.65 PTT-MITSUI 77.65 EXXONMOBIL-TOTAL 77.65 TRAFIGURA-TOTAL 77.66 PTT-TOTAL 77.65 EXXONMOBIL-TOTAL 77.65 HENGLI-TOTAL 77.65 EXXONMOBIL-MITSUI 77.65 PTT-TOTAL 77.65 EXXONMOBIL-TOTAL 77.65 HENGLI-TOTAL 77.65 EXXONMOBIL-TOTAL 77.65 TRAFIGURA-MITSUI 77.65 REPSOL-TOTAL 77.65 EXXONMOBIL-TOTAL 77.65 TRAFIGURA-TOTAL 77.65 PTT-TOTAL 77.65 EXXONMOBIL-MITSUI 77.65 RELIANCE-TOTAL 77.65 EXXONMOBIL-TOTAL 77.65 RELIANCE-TOTAL 77.65
PRICES ($/BBL)
CURRENT PREV SESSION GME OMAN 77.66 78.50 GME OMAN DIFF TO DUBAI 1.72 1.79 CASH DUBAI 77.65 78.59
NEWS
Iraq produced 3.94 million barrels per day (bpd) of oil in September, less than its OPEC+ output quota of about 4 million bpd, an Iraqi official said on Saturday, as the country seeks to boost its compliance with the target.
PetroChina Canada will no longer be a committed shipper on the Trans Mountain oil pipeline after assigning its contracts to another party, the company said in a letter filed with the Canada Energy Regulator, dated Oct. 10.
The United States expanded sanctions against Iran's petroleum and petrochemical sectors on Friday in response to an Iranian missile attack on Israel, the administration of President Joe Biden said.
Azerbaijan's oil output fell by 4.8% to 21.6 million tonnes in the first nine months of 2024, from 22.7 million tonnes a year earlier, Energy Minister Parviz Shahbazov said on Monday.
Weak refining margins due to a slowdown in global demand for fuel and lower oil trading results will dent BP's BP. third-quarter profit by up to $600 million, the British oil major said on Friday.
- Agency forecasts global oil demand to reach 102.84 million bpd in 2024, 103.84 million bpd in 2025
15.10.2024
World oil production decreased by 0.7%, or around 680,000 barrels per day (bpd), to nearly 102.76 million bpd in September, according to the International Energy Agency's (IEA) latest report on Tuesday.
According to the Oil Market Report, crude oil production by the Organization of the Petroleum Exporting Countries (OPEC) fell to 26.72 million bpd in September, a drop of 650,000 bpd compared to the previous month.
Over the same period, OPEC's natural gas liquids production was recorded as 5.62 million bpd. The group's total oil supply, including condensates, natural gas liquids and oil from non-conventional sources, reached approximately 32.35 million bpd over the same period marking a 630,000 bpd decline from previous month.
Meanwhile, daily oil production in non-OPEC countries fell by 50,000 bpd in September to 70.41 million bpd.
Global oil supply declined mainly due to Libya's crude production shut-ins in the wake of domestic political dispute, field maintenance work in Norway and Canada and hurricane activity along the US Gulf Coast, the report said.
- Global supply forecast
The IEA forecasts global oil output growth to average 660,000 barrels per day in 2024, reaching a record high of 102.90 million bpd.
'Non-OPEC+ output, led by the Americas, is expected to expand by 1.5 million bpd while the OPEC+ alliance will see production contract by 820,000 bpd,' the report said.
Global growth for next year is forecast to reach around 2 million bpd to 105 million bpd.
- Global demand growth
According to the report, global oil demand is set to rise by 862,000 bpd this year to around 102.84 million bpd. In IEA's previous report, the agency had estimated an increase of 900,000 barrels per day for global oil demand.
Demand in OECD countries is expected to reach 45.63 million bpd, while non-OECD demand is anticipated to become 57.21 million bpd.
In 2025, global oil demand is projected to reach 103.84 million bpd, with a yearly growth of 998,000 bpd.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr
By Michael Kern - Oct 15, 2024, 9:45 AM CDT
Oil prices fell early on Tuesday morning as fears faded of Israel striking Iranian oil facilities and traders refocused on growing demand concerns.
- The September monthly average refining margin fell to its lowest for the month since 2020, indicating that the downstream supercycle that was boosted by COVID-related disruptions and Russia sanctions is now ending.
- Disappointing diesel demand remains a headache for refiners as US product supply of distillate fuel oil dipped 6% year-over-year in 2024 to date amidst declining manufacturing activity and higher biofuel consumption.
- The International Energy Agency has revised its global refinery runs forecast for this year to 82.8 million b/d, down by 180,000 b/d from its previous estimate, also expecting a mere 0.6 million b/d year-over-year increase in 2025.
- Weaker seasonal maintenance works have also added downward pressure to refining margins, prompting coastal refiners to cut runs; Asian import-dependent refiners in Taiwan and South Korea started the trend, and now Spanish and Italian refiners are slashing throughput, too.
Market Movers
- US oil major ExxonMobil (NYSE:XOM) is moving on with the second stage of exploration in a block it operates offshore the Greek island of Crete after an extensive seismic survey found several prospective plays.
- US refiner Phillips 66 (NYSE:PSX) has completed its divestment of retail stations across Central Europe, selling its 49% stake in its Swiss joint venture with Coop for $1.24 billion in an all-cash deal.
- Brazil's state oil company Petrobras (NYSE:PBR) is planning to cut its capital expenditures for 2025, down to $17 billion from the previously assumed $21 billion, despite government requests to invest more.
Tuesday, October 15, 2024
Following ten heated days of geopolitical speculation, the risk of seeing the Israel-Iran standoff degenerate into an oil price rally is evaporating, as Prime Minister Netanyahu vowed to strike military targets and not oil ones. This has brought macroeconomics back into the limelight with OPEC cutting its 2025 forecast again and China continuing to report weak import numbers. All of that saw ICE Brent slump back to $74 per barrel and WTI fall to within touching distance of the $70 mark.
US Tightens Sanctions on Iranian Exports. The US Treasury and State Departments slapped sanctions on 23 tankers and 16 entities involved in the ghost fleet enabling Iranian crude oil flows to China, expected to lower the 1.6 million b/d of oil flowing to China's teapot refiners in Shandong.
OPEC Cuts Crude Demand Forecasts Again. For the third consecutive month, OPEC slashed its forecast for global crude oil demand growth in both 2024 and 2025 to reflect weaker Chinese consumption, however even now its annual increment is above consensus at 1.93 million b/d.
Chinese Oil Major Quits TMX Term Deal. China's national oil company PetroChina (SHA:601857) will no longer be a committed shipper on the 590,000 b/d Trans Mountain Expansion pipeline after it assigned its contract to another party, without naming the recipient of its term capacity.
Pemex's US Refinery Leaks Toxic Substance. The 313,000 b/d Deer Park refinery operated by Mexico's state oil firm Pemex discharged some 43,500 pounds of highly toxic hydrogen sulfide gas into the atmosphere, several hours after a deadly incident that killed two contract workers.
Iraq Claims OPEC+ Quota Compliance. According to Iraqi officials, the country produced 3.94 million b/d of oil in September, less than its 4 million b/d OPEC+ output target for the first time this year, although it seems to be based on the debatable claim that Kurdistan halved its production to 140,000 b/d.
Japan Mulls Expanding LNG Reserve Stocks. Japan is considering ramping up purchases of LNG for emergency needs to at least 12 cargoes per year from its current pace of 3 cargoes annually, equivalent to more than 0.6 million tonnes of LNG of additional demand to safeguard against price shocks.
Norwegian Courts Side with Oil & Gas Projects. A Norwegian appeals court had ruled in favor of the government against environmental activist groups that sought to halt three upcoming oil projects - Yggdrasil, Tyrving, and Breidablikk - boosting the production outlook of Equinor and Aker BP.
The Fight for The Largest Zinc Smelter Begins. Tension is piling up around the world's largest zinc smelter Korea Zinc after buyout investment firm MBK Partners bought a 5.34% stake in the company amidst a multi-billion-dollar succession feud, eyeing a future takeover of operations.
Chinese EV Sales Hit All-Time High. China's new energy vehicle sales reached 1.29 million units last month, up 17% month-over-month and 42% year-over-year, with the new record high indicating Beijing's stimulus measures might stimulate non-fossil cars more than conventional ones.
US Major to Recover Billions of Venezuela Arrears. US upstream firm ConocoPhillips (NYSE:COP) has received a US government license to recoup the almost $10 billion owed by Venezuela, enabling it to pursue legal action against PDVSA in countries where the latter holds financial assets.
Congo Cancels Upstream Licensing Round. The Democratic Republic of Congo canceled a licensing round for 27 oil blocks it launched two years ago, citing weak competition and inappropriate offers, easing fears that oil drilling could expand into Africa's second-largest rainforest.
Malaysia Doubles Down on South China Sea Exploration. Malaysia's Prime Minister Anwar Ibrahim confirmed that the country's state oil company Petronas would continue oil and gas exploration activities in the South China Sea, defying recent dissatisfactory remarks from China.
China Reports Wind Technology Breakthrough. Chinese power generation manufacturer Dongfang Electric (SHA:600875) rolled out a wind turbine with a capacity of 26 MW, surpassing any existing or announced model and beating the previous record capacity of 18 MW by a wide margin.
By Michael Kern for Oilprice.com
Electricity pylons at the Eskom Holdings SOC Ltd. Arnot coal-fired power station in Mpumalanga, South Africa, on Tuesday, Dec. 26, 2023. Coal-fired power plants operated by South Africas state utility are emitting pollutants that primarily cause respiratory diseases such as asthma at almost 42 times the intensity of those in China.
(Bloomberg) -- South Africa recorded the 200th day of constant electricity supply since state power utility Eskom Holdings SOC Ltd. halted rolling outages known as load shedding on March 26.
The uninterrupted supply is the result of an operational recovery plan, which has reduced unplanned outages by about 8.6%, Eskom said in a statement on Sunday. Energy availability also improved by 7.7%, it said.
“In preparation for a competitive electricity market, this is a significant milestone to ensure energy security” and attract investment to South Africa, Eskom Chief Executive Officer Dan Marokane said.
The utility is also on track to reach 206 days free of outages since Oct. 18, which would be the longest streak since October 2019, he said.
Transnet Improves Truck Turnaround Times (Oct. 10, 12:03 p.m.)
Transnet SOC Ltd. improved truck turnaround times by 24% in a pilot project with transporters at the Durban Container Terminal Pier 2.
The new truck-booking solution to manage the flow of vehicles into the facility will continue in order to improve and sustain the availability of slots there, the state-owned ports operator said in an emailed statement on Thursday.
Transnet Has Plan to Avert Gas-Supply Cliff (Oct. 10, 07:01 a.m.)
Transnet Pipelines’ liquefied natural gas terminal at Richards Bay may start operating as early as 2027, helping South Africa avoid a shortage of the fuel, News24 reported, citing Chief Executive Officer Sibongiseni Khathi.
The Transnet National Ports Authority announced earlier this year that it appointed a group to develop and operate the terminal as a joint venture for the next 25 years, with the facility expected to come online in the first quarter of 2028. The deadline may be pushed to the first half of 2027, the Cape Town-based news website cited Khathi as saying.
©2024 Bloomberg L.P.
Britain’s natural gas output is declining faster than expected and leading to greater reliance on imports, according to an industry group seeking government relief to spur investment.
Production fell about 13% this year through August on an annual basis, and a similar rate is possible for all of 2024, said Ross Dornan, market intelligence manager at Offshore Energies UK. That compares with a 10% decline forecast earlier this year for the UK’s aging North Sea basin.
“We should be a little bit worried about output from the basin and faster decline rates,” he said in an interview. “There is not a huge amount of new production coming through.”
The group, known as OEUK, is looking for some support for domestic energy investment in the government’s Autumn Budget, due Oct. 30. The previous Conservative government imposed a windfall tax on oil and gas profits during the energy crisis two years ago, and Labour plans to raise the levy even further to plug a fiscal gap.
The UK’s new tax system could lead to an investment slump of 80% in oil and gas in the next five years, according to OEUK. The group has noted that Shell Plc’s Victory gas field in the North Sea may be the only one with a final investment decision in 2024.
Britain’s energy production is now equivalent to only 60% of demand, the group said this month. Meanwhile, Europe’s gas market remains sensitive to supply risks, with prices swinging sharply on geopolitical tensions and unplanned outages.
The UK now produces around 90 million cubic meters of gas per day, after volumes recovered from summer field maintenance, according to Dornan. The average rate this heating season could be 85 million cubic meters a day, less than both of the previous two years, according to gas-network operator National Gas Transmission Plc.
Declining Oil
UK oil production has also been falling, with an expected decline of about 10% this year, according to Dornan. From January through August, oil output averaged 660,000 barrels a day, he said, adding that full-year numbers “might be slightly lower.”
The nation’s daily production of both oil and gas averaged 1.11 million barrels of oil equivalent in the first eight months of the year, about 11% lower on an annual basis.
The daily production rate is set to drop to about 700,000 barrels by the end of the decade, the North Sea Transition Authority, the industry regulator, estimates. Even that may be optimistic, according to Dornan.
“That’s possible, but that can only be achieved through progression of new investment at a better rate than is currently coming through,” he said. “And that’s a big concern.”
©2024 Bloomberg L.P.
The funds will help build a proposed 9 million ton a year oil processing plant in the southern state of Tamil Nadu.
Chennai Petroleum Corporation Ltd. is in talks with banks to raise a 280 billion rupee ($3.3 billion) loan to help build a major oil refinery in the south of India, people familiar with the matter said.
The state-owned company has already received expressions of interest, and State Bank of India will lead the transaction, according to the people, who asked not to be named as the deliberations are private. It would be second-biggest local-currency loan in India this year.
The funds will help build a proposed 9 million-ton-a-year oil processing plant in the southern state of Tamil Nadu, which has a total cost of around 330 billion rupees. Chennai Petroleum Finance Director Rohit Agrawala said in April that the project would take 36 months to complete, once it has been approved by the federal government.
A representative for Chennai Petroleum didn’t respond to a request for comment.
State-owned Indian Oil Corp. — the country’s biggest refiner and Chennai Petroleum’s majority shareholder — is in the midst of a rapid expansion to raise production of fuels like diesel and gasoline to meet surging domestic demand. India is a rare bright spot for a global refining industry that’s in decline in the US and Europe, and becoming more focused on petrochemicals in China due to transport decarbonization.
National Iranian Oil Co. is also an investor in Chennai Petroleum, with its subsidiary Naftiran Intertrade Co Ltd holding a 15.4% stake. However, the Iranian firms aren’t directly participating in building the new refinery. Indian oil will own 75% of the new plant - called the Cauvery Basin refinery project — and Chennai Petroleum will have the rest.
SBI Capital Markets, a unit of State Bank of India, will be loan syndication adviser to Chennai Petroleum, the people said.
The largest local-currency loan in India this year also looks likely to go to an oil refiner. Bharat Petroleum Corp. is in talks with lenders to raise about 320 billion rupees ($3.8 billion), Bloomberg News reported at the end of August.
Ecological objections almost-certainly influenced Exxon-Mobil’s decision to abandon its carbon-capture and storage (CCS) pipeline; as if CCS won’t necessitate pipelines in other picturesque landscapes.
Does Mr Padfield (A&T Letters 4th October) recall the fuss in the 1980s about the pipeline from Wytch Farm to the oil terminal at Hamble? Protesters argued that the pipeline would irreparably damage the New Forest’s ecology; the alternative option being road and rail traffic.
Can anyone now find that pipeline’s route?
The correspondents arguing that chalk, gravel and clay lack the necessary ambient stability should consider that Britain’s railways have many cuttings and embankments in and of chalk, gravel and clay. These immense 19th century earthworks were such feats of construction that British civil engineers were appointed to build French railways. UK’s natural-gas pipelines were more-easily constructed; mostly in chalk, gravel and clay.
Concern about pipes fracturing is a red herring. Establishing the suitability of materials and methods is part of any specification. There is, meanwhile, a theory to the effect that leaking CO2 could asphyxiate anyone in its vicinity. If so, are bartenders at any risk by serving fizzy drinks?
H Fletcher
PetroChina Canada will no longer be a committed shipper on the Trans Mountain oil pipeline after assigning its contracts to another party, the company said in a letter filed with the Canada Energy Regulator, dated Oct. 10.
The recently expanded Trans Mountain pipeline has capacity to ship 890,000 barrels per day (bpd) of crude from Alberta’s oil sands to the Port of Vancouver in British Columbia. The company is a subsidiary of China’s top oil-producing firm PetroChina and holds six assets in western Canada, including the MacKay River and Dover oil sands projects and a stake in the LNG Canada liquefied natural gas project, due to start operating next year.
A spokesperson for PetroChina Canada did not immediately respond to a request for comment on why the company had given up its committed shipping agreements.
PetroChina Canada wrote to regulators to say it was withdrawing as an intervenor in a long-running dispute between Trans Mountain and its committed shippers over pipeline tolls.
“PCC has now assigned these agreements to another party and will not be a committed shipper going forward,” the letter said.
PetroChina did not name the other party.
Dušan Bajatović, CEO of the Serbian state-owned company Srbijagas, has reached an agreement in St Petersburg with Alexei Miller, Chairman of the Board of Russian energy giant Gazprom, for additional gas supplies to Serbia this winter.
Source: Serbian newspaper Danas, as reported by European Pravda
Details: Bajatović noted that the agreement with Gazprom had been signed on the sidelines of the St Petersburg International Gas Forum.
Additional gas supplies for the heating season in Serbia will be carried out under the existing contract "in order to ensure safe supply for consumers in Serbia," the Srbijagas CEO explained.
Bajatović anticipates that Russian gas supplies will amount to approximately 400 million cubic metres this winter.
He added that the extension of the current contract for gas supplies from Russia is likely to be considered in the first quarter of 2025.
Meanwhile, Serbia has been actively looking for ways to reduce its dependence on Russian gas supplies since 2022, when the full-scale Russian invasion of Ukraine began.
Since then, the country has agreed to build interconnectors with Bulgaria and Romania and secured gas supplies from Azerbaijan and Hungary.
https://www.pravda.com.ua/eng/news/2024/10/12/7479410/index.amp
Oil and Natural Gas Corporation (ONGC) is exploring plans to set up mini-LNG plants in India to utilise natural gas from wells in areas lacking pipeline connectivity, reported the New Indian Express.
The initiative aims to tap stranded gas reserves and enhance domestic supply to meet the demands of various consumers.
These plants will be designed to convert underground gas into LNG by supercooling it to -160°C.
The produced LNG will be transported via cryogenic trucks to the nearest pipeline, where it will be re-gasified and fed into the network.
This supply chain will cater to users such as power plants, fertiliser units and city gas retailers.
ONGC has identified five potential sites for the mini-LNG plants across the Indian states of Andhra Pradesh, Jharkhand and Gujarat.
The locations include two sites at Rajahmundry in Andhra Pradesh, and one each at Ankleshwar and Cambay in Gujarat, and Bokaro in Jharkhand.
ONGC's initiative is a response to the country's need to tap substantial volumes of stranded gas, which ranges from 5,000 to 50,000 standard cubic metres per day and can be produced for up to five years.
ONGC partnered with the Indian Oil Corporation (IOC) earlier in June to develop a small-scale LNG plant near the Hatta gas field in the Vindhyan basin, Madhya Pradesh.
As per the agreement, IOC will purchase gas from ONGC for the LNG plant.
The proposed plant is expected to process 32–35 tonnes of LNG daily, utilising 45,000 standard cubic metres per day of gas from the Hatta field.
IOC is currently conducting a detailed feasibility study and will cover the costs of the small-scale LNG plant. Once operational, IOC will manage the plant and distribute the gas to end consumers.
"India’s ONGC plans to establish mini-LNG plants for stranded gas" was originally created and published by Offshore Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
https://www.yahoo.com/finance/news/india-ongc-plans-establish-mini-091049652.html
THE Organization of the Petroleum Exporting Countries (Opec) has trimmed its forecasts for oil demand growth this year and the next for a third consecutive month, in a belated recognition of a slowdown in global fuel use.
Global oil consumption will increase by 1.9 million barrels a day – roughly 2 per cent – in 2024, or 106,000 barrels a day less than previously forecast, Opec said.
The revision was “largely due to actual data received combined with slightly lower expectations” for some regions, it added.
With the three successive downgrades, Opec has started to retreat from the strongly bullish projections it has held throughout this year.
Even after the reductions, its demand estimates have remained an outlier – above Wall Street banks and trading houses, and at the top end of the range expected by Saudi Arabia’s oil company, Aramco.
The actions of Opec members themselves have suggested a lack of confidence in the outlook of its Vienna-based secretariat, delaying their plans to restore halted crude production even as the cartel’s forecasts point to a major supply deficit.
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Led by Saudi Arabia, Opec and its allies are due to begin gradually restoring 2.2 million barrels a day in monthly tranches from December. The process began two months later than originally planned.
Market-watchers such as JPMorgan Chase and Citigroup have remained sceptical that the organisation will continue its restoration, amid slowing growth in top consumer China and swelling supplies from the Americas.
Crude prices have been boosted by conflict in the Middle East. At US$77 a barrel, however, the price has remained too low for some Opec nations.
The coalition’s efforts to shore up prices have been undermined by countries – notably Iraq, Kazakhstan and Russia – that have failed to deliver their cutbacks.
The report also showed Iraq belatedly making progress in implementing its share of output cuts due since the start of the year, while still pumping above its agreed quota.
Baghdad curtailed production by 155,000 barrels a day in September to about 4.1 million per day.
While it has been getting closer to its target of 4 million, it has not made progress in the extra cuts it promised to compensate for overproduction. An Iraqi official said that output is below the quota.
Kazakhstan increased production by 75,000 barrels a day to about 1.5 million, flouting its pledge to perform better.
Russia reduced by 28,000 barrels a day. However, it has remained above its ceiling at about 9 million barrels a day.
Opec+ is expected to make a decision on its scheduled December output hike in the coming weeks. The alliance is due to meet on Dec 1 to consider output policy for 2025. BLOOMBERG
Chennai Petroleum is in discussions with banks to secure a substantial loan of $3.3bn to support the construction of a major oil refinery in Tamil Nadu, India, Bloomberg has reported.
The state-owned enterprise has garnered interest from potential lenders, with the State Bank of India poised to spearhead the transaction. The deal will be the second-largest local-currency loan in India in 2024.
The investment will facilitate the development of a proposed refinery capable of processing nine million tonnes of oil annually.
SBI Capital Markets, a subsidiary of the State Bank of India, has been appointed as the loan syndication adviser for Chennai Petroleum.
The total cost of the project is estimated to be $3.9bn. Chennai Petroleum's finance director, Rohit Agrawala, stated in April 2024 that the project is expected to take 36 months to complete following federal government approval.
The expansion aims to meet the growing domestic demand within India, which stands as a beacon of growth in a global refining industry facing decline in regions such as the US and Europe and shifting towards petrochemicals in China due to the push for transport decarbonisation.
Indian Oil Corporation is set to own 75% of the new facility, known as the Cauvery Basin refinery project, with Chennai Petroleum owning the remaining share.
Another oil refiner, Bharat Petroleum, is also in negotiations to raise $3.8bn, which could result in the largest local-currency loan in India in 2024.
"Chennai Petroleum to raise $3.3bn for new oil refinery in India" was originally created and published by Offshore Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
https://news.yahoo.com/news/finance/news/chennai-petroleum-raise-3-3bn-123221331.html
Algeria is set to soon announce a new oil and gas licensing round in which major international firms, including ExxonMobil and Chevron, are expected to take part.
The OPEC member’s national development hydrocarbon agency, ALNAFT, will announce a new licensing round, looking to attract foreign investment and operators in its oil and gas sector, Algerian Energy Minister Mohamed Arkab said on Monday, as carried by Reuters.
Apart from the U.S. supermajors, Italy’s energy giant Eni and China’s state-controlled Sinopec are also expected to bid in the licensing round, according to the newswire.
Algeria, which joined OPEC in 1969, produces around 900,000 barrels per day (bpd) of crude oil currently. The North African producer is part of the OPEC+ agreement looking to manage oil supply to the market.
In recent months, Algeria has been vying to monetize its natural gas resources, especially in exports to Europe, which now has to do without much of the pipeline Russian gas it was consuming before 2022.
Earlier this year, Exxon signed a deal with the Algerian government for exploration at two natural gas fields in the North African country. The supermajor, in partnership with Algeria’s state energy firm Sonatrach, will "study the existing opportunities to develop the hydrocarbon resources in the Ahnet basin and the Gourara basin" in the southern part of the country.
Algeria holds huge conventional natural gas reserves, and it is also estimated to have the third–largest shale gas reserves in the world after China and Argentina.
Most of Algeria’s gas exports are heading to Europe, which is increasingly betting on Africa to import large volumes of pipeline gas and LNG to replace pipeline gas supply from Russia, which was Europe’s top gas supplier before the Russian invasion of Ukraine.
Earlier this year, Grain LNG in the UK, Europe’s largest liquefied natural gas terminal, secured a 10-year gas supply deal with Algeria’s Sonatrach.
By Charles Kennedy for Oilprice.com
Nigeria’s average crude oil production in the month of September declined by as much as 33,000 barrels to 1.405 million barrels per day.
In its October oil market report, the Organisation of Petroleum Exporting Countries (OPEC) revealed that Nigeria’s crude oil production fell from 1.438 million barrels per day in August, according to secondary data from Nigerian authorities.
Direct communication shows that Nigeria’s average crude oil production for September was 1.324 million barrels per day, a drop of 27 thousand barrels compared to 1.352 million barrels per day in the previous month.
Despite this decline, Nigeria remained Africa’s largest oil producer, widening the gap with Libya, which experienced production setbacks due to the shutdown of key oil fields, reducing its output to 450 thousand barrels per day.
Non-DoC liquids supply, referring to output from countries not participating in the Declaration of Cooperation (DoC), is projected to grow by 1.2 mb/d in 2024, maintaining an average of 53.1 mb/d, consistent with last month’s assessment.
US crude and condensate production saw a slight decline in July, while natural gas liquids (NGLs) production decreased month-on-month but remained robust at around 6.9 mb/d, reflecting a year-on-year increase of 0.4 mb/d. US liquids supply growth for 2024 is expected at 0.6 mb/d, with other key contributors to non-DoC growth being Canada, Brazil, and China.
Crude oil supply
According to secondary sources, OPEC-12’s total crude oil production averaged 26.04 million barrels per day (mb/d) in September 2024, reflecting a month-on-month decrease of 604 thousand barrels per day (tb/d).
Crude oil output saw increases in Iran and Kuwait, while production declined in Libya, Iraq, Nigeria, and Saudi Arabia. Meanwhile, total crude oil production from non-OPEC DoC members averaged 14.06 mb/d in September 2024, marking a month-on-month increase of 47 tb/d, with Kazakhstan leading the gains, while Russia experienced a decline in production.
Insights
The decline in crude oil production in September confirms an earlier Nairametrics report which stated that Nigeria’s crude oil production declined by 40,000 barrels in the month under review.
The report also notes that other OPEC members, particularly Libya, faced difficulties with oil output in September due to ongoing unrest disrupting the country’s supply.
Nigeria, meanwhile, has been struggling to increase oil production to meet both its OPEC quota and local refinery demands. Since the beginning of the year, the country’s output has hovered between 1.2 and 1.3 million barrels per day.
By Irina Slav - Oct 14, 2024, 2:30 AM CDT
The China National Offshore Oil Corporation has boasted record crude oil and natural gas production from the country's first independently built ultra-deepwater field dubbed Deep Sea #1.
Per Xinhua, the field has so far yielded a cumulative 9 billion cubic meters of natural gas and over 900,000 cu m of crude oil. This production is set to rise further as CNOOC completes the second phase of the field's development. That phase would bring peak annual natural gas production at the site to 4.5 billion cu m from 3 billion cu m right now. Phase 2 would focus specially on the gas reserves at the field in the South China Sea, with the expansion set to tap proven reserves of some 50 billion cu m of gas.
China is the world's top importer of both crude oil and natural gas to fuel its growing economy. It is also investing heavily in domestic production in order to reduce its reliance on foreign hydrocarbons. Just this year, natural gas consumption in the country is seen rising by up to 7.7% on 2023
Earlier this year, CNOOC announced a new natural gas discovery, also in ultra-deep waters in the South China Sea. According to the state company, reserves at the Lingshui- 36-1 field stand at over 100 billion cu m.
CNOOC and other Chinese state-owned energy giants are busy boosting domestic oil and gas exploration and production to keep up with government guidance for increased self-sufficiency in the energy department.
At the end of last month, CNOOC launched crude oil production from a new development project in the South China Sea.
CNOOC announced the start of the Enping 21-4 Oilfield Development Project in the eastern South China Sea. The project is expected to reach peak production of about 5,300 barrels of oil equivalent per day of light crude oil in 2025.
KEY TAKEAWAYS
- Crude oil prices slumped Tuesday as the International Energy Agency (IEA) cut its projection for oil demand growth.
- The IEA noted China's slowing economy was behind the change.
- The shift came a day after the Organization of the Petroleum Exporting Countries (OPEC) lowered its oil demand outlook for 2024 and 2025.
Crude oil prices slumped Tuesday as the International Energy Agency (IEA) cut its projection for oil demand growth, noting China's slowing economy was behind the decision.
The IEA said oil demand will grow “just shy of” 900,000 barrels per day (B/D) in 2024. In September, the IEA had projected average annual gains of 900,000 B/D for 2024.
"China underpins the deceleration in growth, accounting for around 20% of global gains both this year and next year, compared to almost 70% in 2023," the IEA said Tuesday.
The move came a day after the Organization of the Petroleum Exporting Countries (OPEC) lowered its oil demand outlook for 2024 and 2025.
Oil Demand Growth Well Below 2022 to 2023 Levels
The forecasts were well below the post-pandemic growth levels in 2022 to 2023, when they were around 2 million B/D.
The price of Brent crude was down about 4% at $74.35 a barrel Tuesday, while West Texas Intermediate crude slipped 4.4% to around $70.59 a barrel.
A report by The Washington Post that Israel was willing to strike Iranian military targets rather than oil or nuclear facilities had also been weighing on oil prices earlier in the day.
https://www.investopedia.com/oil-slumps-as-iea-trims-demand-forecast-8728063
MOSCOW, October 15. /TASS/. OPEC+ countries’ oil production fell by 130,000 barrels per day (bpd) in September 2024, though exceeding the OPEC+ target considering voluntary cuts by 720,000 barrels per day, the International Energy Agency (IEA) said in its October report.
The targeted level of OPEC+ output within the agreement considering voluntary adjustments in September stood at 33.7 mln barrels per day (mbd), while real production reached 34.43 mbd, which brings the overrun to around 720,000 bpd, according to the agency.
Among the countries exceeding their production commitments the most are Iraq (by 360,000 bpd), the UAE (by 350,000 bpd), Russia (by 140,000 bpd), and Kazakhstan (by 100,000 bpd), according to the IEA.
Eight OPEC+ nations, including Russia and Saudi Arabia, have been voluntarily reducing output by 2.2 mln barrels per day since Q1 2024. Since October 2024, those countries have planned to start gradual restoration of oil production, though the increase in output has been postponed until December 2024. Moreover, a number of OPEC+ states, also including Russia and Saudi Arabia, have been voluntarily reducing output in the total volume of 1.66 mln barrels per day from the spring of 2023 to the end of 2025.
Meanwhile three more countries that did not fully carry out their output reduction commitments, including Russia, Iraq and Kazakhstan, are to compensate gradually for insufficiently reduced production volumes by September 2025.
Chevron is intensifying its oil and gas production in the New Mexico side of the Permian Basin, a region renowned for its prolific oil and gas reserves.
The Houston, Texas-based oil and gas major plans to 1mboe/d in the Permian Basin by 2025.
The company's New Mexico asset manager, Duncan Healey, highlighted the area's high-quality source rock and untapped reserves as key factors in this strategic expansion.
"The rock is thick and deep, which means it is under high pressure and can force the oil and gas out easier," he said.
"At the end of the day, we expect to get more out of the ground than we could in other areas of the Permian."
The company's strategic land position and knowledge of the subsurface contribute to the region's appeal.
Chevron's development strategy in New Mexico aligns with the state's regulatory focus on safety and environmental stewardship.
In line with environmental regulations, Chevron said it is adopting cleaner technologies such as using electrical compressors instead of natural gas-fuelled ones.
The company also claims to have made progress in reducing the carbon intensity of its hydraulic fracturing operations.
Other companies expanding their presence in the basin include Viper Energy, along with its operating subsidiary Viper Energy Partners (OpCo), which agreed to acquire subsidiaries of Tumbleweed Royalty IV, a US pipeline operator.
Oneok is also expanding its operations in the Permian Basin through two acquisitions comprising a 43% interest in EnLink Midstream from Global Infrastructure Partners (GIP) and GIP’s equity interests in Medallion Midstream, for a total transactional value of $5.9bn.
"Chevron boosts oil and gas production in New Mexico’s Permian Basin" was originally created and published by Offshore Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
https://finance.yahoo.com/news/chevron-boosts-oil-gas-production-151038115.html
Asia's gasoline margins slumped on Tuesday, as a rebound in supply from China seems to inverse the upside that was seen in the previous week.
The crack fell to a week's low $3.98 per barrel over Brent crude on Tuesday, its lowest since Oct. 8.
Thailand's PTT was the main seller at the end of the trade window, selling 50% of the 300,000 barrels that were traded.
Regional traders said that the rally seen in gasoline margins the previous week is unlikely to continue, as there is an excess of surplus going into the last quarter of the year.
"The Florida gas station outage ease, and softer demand from China continues to put a dim light on the future margins of gasoline," a regional trader further added.
In naphtha, the crack dipped by $3.25 to $113.10 per metric ton over Brent crude. The crack has held steady above the $100 mark for the past three weeks, with frequent ebbs and flows.
Traders said that the restart of Japan's Mitsui Chemical and Taiwan's Formosa Petrochemical Corp cracker are expected to provide support for naphtha demand.
NEWS
Oil prices tumbled more than 4% to a near two-week low on Tuesday due to a weaker demand outlook and after a media report said Israel is willing to not strike Iranian oil targets, easing fears of a supply disruption.
The world oil market is heading for a sizeable surplus in the new year, the International Energy Agency said on Tuesday as it reassured markets that the agency stood ready to act if needed to cover any supply disruption from Iran.
French oil major TotalEnergies TTE expects its third-quarter downstream results to sharply decrease due to a 65% drop in refining margins in Europe and elsewhere, the company said on Tuesday amid a drop in global oil prices.
SINGAPORE CASH DEALS
Five gasoline deals and one naphtha trade.
Is LNG worse for the climate than coal?A study challenges the oil and gas industry’s assertion that the fuel is cleaner than the commodity
A paper has generated a political firestorm since it was first published in draft form last year, as it challenges a core tenet of the rapid expansion of the global LNG industry
Good morning and welcome back to Energy Source, coming to you today from New York. My Financial Times colleagues in China have reported that cheap natural gas is causing Chinese truckers to switch to rigs powered by the fuel, weighing on the country’s appetite for oil. Analysts have said Chinese demand for diesel may have peaked earlier than expected, in a troubling sign for traders who remain concerned over weak oil demand in the world’s second-largest economy.Today’s Energy Source looks at an academic paper that influenced the Biden administration’s decision to pause liquefied natural gas exports to non-free trade agreement countries in January. The paper, which reports that LNG generates more greenhouse gases than coal, has been published and peer reviewed, backing those opposed to the expansion of LNG export facilities in the US.Thanks for reading,AlexandraResearch on LNG’s climate impact ignites political firestormAn academic paper that influenced the Biden administration’s pause on new liquefied natural gas projects after reporting that LNG generates more greenhouse gases than coal has had its findings peer reviewed, sparking a renewed clash between environmentalists and industry over the fuel’s impact on the environment. Robert Howarth, a professor at Cornell University and an expert in methane, argues in the study that the emissions footprint of LNG exceeds that of coal by 33 per cent over a 20-year period, challenging the oil and gas industry’s assertion that the fuel is cleaner than coal.“Even though carbon-dioxide emissions are greater from burning coal than from burning natural gas, methane emissions can more than offset this difference,” writes Howarth in the paper, which was published in the journal Energy Science and Engineering.
“As a greenhouse gas, methane is more than 80 times more powerful than carbon dioxide when considered over a 20-year period.”Howarth writes that LNG, which is largely produced from shale gas, emits a “substantial amount of methane” that increases during liquefaction and tanker transport of the fuel.“The world is spiralling towards a climate catastrophe,” Howarth told Energy Source in an interview. “Since LNG has a larger climate impact than any other fossil fuel, we should move away from it immediately.”The paper has generated a political firestorm since it was first published in draft form last year, as it challenges a core tenet of the rapid expansion of the global LNG industry: that displacing coal generation with gas is helping the world to decarbonise. The initial draft played a critical role in persuading the Biden administration to pause approvals of new LNG export terminals in January. The Department of Energy recently initiated its own study on the environmental and economic impact of the US industry, which leapfrogged Qatar to become the world’s largest LNG exporter in 2023. The results of Howarth’s study, which was part funded by the Park Foundation, an environmental group, contrast sharply with reports backed by industry groups, which assert the fuel is cleaner than coal and a bridge fuel to renewables. The divergence in views over LNG’s environmental impact is evidence of growing divide between advocates and opponents of the fuel that is falling along political lines.
It also deviates from the results of a 2019 study commissioned by the US government, that determined the use of US LNG for power production in European and Asian markets would “not increase greenhouse gas emissions” from a life cycle perspective. “We have no problem at all with this [Howarth] study and other studies being factored into DOE’s overall evaluation. The frustrating aspect is that it seems as if this study and this study alone was what motivated this unprecedented shift in policy that up until March of this year had been bipartisan,” Dustin Meyer, senior vice-president of policy, economics and regulatory affairs at the American Petroleum Institute, said.Republicans in Congress have slammed Howarth’s research as flawed and criticised the Biden administration for taking it into consideration when it implemented January’s pause.Howarth said his paper went through a rigorous independent review process, including four rounds of revision with six anonymous peer reviewers as well as the journal editors. “The editors and reviewers were aware of the public interest in my results, and so were taking extra care that my paper be as of high quality as possible,” Howarth told Energy Source.Still, some in the oil and gas industry largely disagree with the methodology behind Howarth’s findings. “Imagine looking across all of the variables and for every single one choosing the absolute worst-case scenario assumption that you’ve ever seen and then adding them all together. And that’s the only way that you can get the results that this paper gets,” Meyer said.
Howarth acknowledges in his paper that he uses a different methodology than other studies of LNG’s impact on the climate. “The key reason that some of these other studies find that total emissions are lower than what I report here is their use of lower estimates for upstream and midstream emissions of methane,” Howarth wrote in his study.Methane is a primary component of natural gas and is odourless, colourless and notoriously difficult to track. It is also a powerful greenhouse gas, more than 28 times as potent as CO₂ at trapping heat in the atmosphere, according to the US Environmental Protection Agency.Howarth said he relied on estimates available for methane emissions from upstream and midstream sources rather than data from the EPA that was based on unverified self-reporting from the oil and gas industry and were “clearly too low compared with data derived from independent sources published in the peer-reviewed literature”.
There is growing evidence that methane emissions from oil and gas infrastructure are much higher than previously estimated, including separate reports by the Environmental Defense Fund and the Royal Society of Chemistry. Drew Shindell, a professor of earth science at Duke University and a climate specialist, said he believed that Howarth’s results were plausible.“Bob’s results are plausible, and qualitatively I think they’re correct,” Shindell said. “I have been reading Bob Howarth’s papers for more than a decade. He has a proven track record of doing high-quality work and I don’t doubt that he has again done high-quality work.”Still, Shindell added that there has not been much data collection on liquefied natural gas because it’s a new fuel compared with oil and every LNG facility varies, contributing to uncertainty over the fuel. (Alexandra White and Jamie Smyth)Power PointsGoogle has ordered six to seven small modular nuclear reactors from Kairos Power to provide low-carbon electricity for its energy-hungry data centres. The largest public pension scheme in the US has invested in Octopus Energy, highlighting international interest in the UK-power company’s Kraken software and green focus. Pakistan’s powerful security services used heavy pressure to coerce five local utility companies to end electricity supply contracts with the government early.
https://www.ft.com/content/ae59729d-48f8-4b10-be3d-a41f7d13295b
Saudi Arabian Oil Group (Saudi Aramco) has cancelled plans to build a petrochemical plant in Saudi Arabia, taking into account the expansion of its presence in Asia. This was reported in a Saudi Aramco press release.
Aramco, together with the Sabic division, refused to continue the construction of the planned petrochemical plant with a capacity of 400 thousand barrels per day in Ras al-Khair (Saudi Arabia) on the Persian Gulf coast, as well as the transfer of the project to Jubail.
The cancellation of the deal demonstrates Aramco's intention to refocus its plans on projects in Asia, including China, which guarantee long-term demand for Saudi oil.
Uncertainty about high demand in Saudi Arabia, where Aramco is expanding production at other chemical plants, is also forcing the company to reconsider spending on multibillion-dollar infrastructure projects.
Aramco intends to continue to develop its refining business in order to increase the productivity of integrated refineries and petrochemical complexes to 4 million barrels per day by 2030 and optimize investments in the global portfolio of refining projects.
Sabic, Aramco's chemical division, in which the company owns a 70% stake, planned to build an oil refining and chemical complex in Ras al-Khair in November 2022, but work on the project has not yet been completed.
At the same time Aramco is expanding the capacity of the refinery, which it operates jointly with TotalEnergies SE in Jubail.
In addition, the company is in talks to acquire a 10% stake in China's Hengli Petrochemical Ltd. and is seeking to conclude similar deals with two other Chinese companies. In 2023, Aramco entered into a deal to acquire a stake in Rongsheng Petrochemical Co. in the amount of $3.4 billion.
Oil-rich Middle Eastern states have long been producing petrochemical products that are used in the production of plastic and packaging. For many years, Saudi companies have been selling energy products to chemical manufacturers in Japan, Korea and China, but are currently trying to increase the share of their own production of these chemicals for large Asian markets.
Saudi Aramco is the national oil and gas company of Saudi Arabia. The company is engaged in the exploration, production, refining, transportation and sale of crude oil and natural gas, production of petroleum products and petrochemical products in Asia, Europe and North America. The headquarters is located in Dhahran (Saudi Arabia). Saudi Aramco accounts for about 12% of the world's oil reserves, 10% of production and 14% of exports. The company provides 80% of the country's budget revenues.
https://www.akm.ru/eng/news/saudi-aramco-refocuses-petrochemical-sector-to-asian-markets/
(oilnow.gy) ExxonMobil’s Liza find back in 2015 unlocked a treasure trove of oil and gas discoveries in Guyana’s Stabroek Block. Now, in 2024, the number stands at 45 discoveries and Exxon aims to take this even higher.
“I believe Guyana will go down as one of the most successful deepwater developments in the history of the industry,” said Darren Woods, Chief Executive Officer of Exxon Mobil Corporation. He was at the time speaking to investors during the company’s 2024 first-quarter earnings call.
Since oil production started in 2019, Liza 1, Liza 2, and Payara have accelerated production to over 600,000 barrels per day (b/d). And with a fourth project coming online next year – Yellowtail, Guyana’s production will rise even higher, making it the number one per capita oil producer in the world.
The low breakeven costs are especially significant. According to a report by the International Energy Forum (IEF) and S&P Commodity Insights, Guyana’s average breakeven price of US$36 per barrel of Brent crude is a standout figure in the global market, with projects like Liza 2 at US$25 per barrel and Payara at US$32 per barrel.
These costs position Guyana’s oil production as highly competitive and profitable, even during market fluctuations, which is crucial for North American stakeholders watching global oil prices. Additionally, strategic investments in Guyana have been supported by agreements that provide substantial benefits to both the country and the oil companies.
Along with Yellowtail, Exxon also has the Uaru and Whiptail projects under construction.
Its 7th project – Hammerhead – is the latest under consideration by the Guyanese government. Hammerhead is expected to achieve first oil around 2029 and will be in production for approximately 20 years. By that time, it is likely to take total production capacity offshore Guyana to 1.5 million b/d.
Exxon holds a 45% stake in the Stabroek Block, with Hess owning 30% and CNOOC holding 25%.
Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel , one standout is the The Energy Select Sector SPDR Fund (Symbol: XLE) where we have detected an approximate $251.4 million dollar outflow -- that's a 0.7% decrease week over week (from 409,824,200 to 407,024,200). Among the largest underlying components of XLE, in trading today Exxon Mobil Corp (Symbol: XOM) is up about 0.6%, ConocoPhillips (Symbol: COP) is up about 0.1%, and EOG Resources, Inc. (Symbol: EOG) is higher by about 0.1%. For a complete list of holdings, visit the XLE Holdings page.
https://www.nasdaq.com/articles/xle-xom-cop-eog-etf-outflow-alert
'This transaction marks significant progress in delivering on our commitment of over $3 billion in divestitures'.
Phillips 66 has signed an agreement to divest its 49 percent stake in a network of over 300 refueling stations and convenience stores in Switzerland and Liechtenstein to its Swiss co-venturer.
Valued about $1.24 billion, the cash transaction for Coop Mineraloel AG is expected to close in the first quarter of 2025, subject to approval by the Swiss Competition Commission. Coop Group, currently the 51 percent owner, owes around $1.17 billion in sales price and approximately $70 million in assumed dividends for 2024.
Coop Mineraloel had CHF 2.7 billion ($3.1 billion) in net revenue last year. The fueling stations included five serving hydrogen as of 2023, according to online information from the joint venture.
Phillips 66 remains a hydrogen investor in Europe through stakes in related projects in Austria, Denmark, Germany and the United Kingdom.
The transaction, part of the United States refiner’s goal to generate $3 billion from asset sales, follows the company’s announcement that it was closing in on the sale of its retail marketing business in Austria and Germany.
“This transaction marks significant progress in delivering on our commitment of over $3 billion in divestitures,” Mark Lashier, chair and chief executive of Houston, Texas-based Phillips 66, said in a company statement. “As we manage our portfolio, we will continue to evaluate monetization of assets that no longer fit our long-term strategy”.
Phillips 66 had said it is eyeing to give up assets worth $3 billion to support its shareholder return target and other long-term priorities while focusing investment on low-cost but high-return projects. Phillips 66 has so far completed two divestment transactions toward the target.
Last month Voyager Midstream Holdings announced it had purchased natural gas gathering and processing assets in Louisiana and Texas from Phillips 66 for an undisclosed price. The agreement included about 550 miles of gas pipelines and associated compression, 400 million cubic feet per day of active cryogenic gas processing capacity, 12,000 barrels a day of liquids fractionation capacity and the Carthage Hub integrated gas trading and delivery hub.
As of the second quarter of 2024, Phillips 66 reached $1.1 billion toward that $3 billion asset monetization target, according to the company’s quarterly financial report.
In the period, it sold a 25 percent non-operating stake in Rockies Express Pipeline LLC to Tallgrass Energy LP. The transaction, involving a 1,714-mile pipeline carrying as much as over five billion cubic feet a day of natural gas from Appalachia to the northeastern U.S., had an enterprise value of $1.275 billion including cash of nearly $700 million, according to Phillips 66’s announcement of the deal last June.
To contact the author, email jov.onsat@rigzone.com
16 October, 2024
Source: iranoilgas.com
Turkish Energy Minister Alparslan Bayraktar announced that Turkey is approaching a critical phase regarding its natural gas supplies in 2025/26, with several key import contracts set to expire, raising concerns about the country’s energy security, reported the energynews.
Among these contracts, the one with Russia’s Gazprom for 16 billion cubic meters per year delivered via the Blue Stream pipeline will expire at the end of 2025. Additionally, a contract with Iran for 9.6 billion cubic meters per year will expire in July 2026.
Faced with these expirations, Turkey is striving to diversify its gas supply sources to ensure continuity and affordability in its energy provisions. The minister emphasized that the country’s strategy focuses on two main objectives: supply security and affordability. To achieve this, Ankara has recently signed long-term liquefied natural gas (LNG) contracts with energy giants such as ExxonMobil, Shell, and TotalEnergies. These agreements aim to enhance the reliability of supplies for the Turkish market while ensuring competitive prices.
The historic contract between the state-owned Turkish company Botas and Russia’s Gazprom, which allows the import of 16 billion cubic meters per year via the Blue Stream pipeline, is one of the primary agreements set to expire in 2025. Additionally, Botas imports 5.75 billion cubic meters per year of Russian gas through the TurkStream pipeline under annual, quarterly, and monthly spot deals, which also expire at the end of 2025. These two agreements represent a significant portion of Turkey’s gas supply.
Furthermore, Botas’s contract with Iran, covering the import of up to 9.6 billion cubic meters per year, will expire in July 2026. This situation is particularly concerning as several contracts held by Turkish private companies for importing Russian gas are also set to expire during the same period. For example, Enerco has a contract for 2.5 billion cubic meters per year expiring at the end of 2025, and Avrasya Gaz holds a contract for 0.5 billion cubic meters per year expiring in February 2026. However, neither company has imported significant gas since 2021, with only minimal quantities imported between 2019-2021.
16 October 2024 12:24
France has called for improved identification of companies shipping Russian gas at EU ports to curb the influx of Russian fossil fuels.
Along with nine other countries, including Austria and the Czech Republic, France circulated a paper ahead of an EU energy ministers’ meeting, urging the European Commission to mandate clear identification of suppliers when Russian liquefied natural gas (LNG) cargoes are unloaded, Caliber.Az reports via foreign media.
French Energy Minister Agnès Pannier-Runacher emphasized the need for transparency regarding LNG flows to “remove this dependency.” Despite EU efforts to reduce reliance on Russian fossil fuels, imports from Russia rose 11 per cent year-on-year in the first half of 2024.
France, Spain, and Belgium accounted for 87 per cent of Europe’s Russian LNG imports during this period, with imports to France more than doubling, while those to Belgium dropped by 16 per cent. Belgium is working on a mechanism to trace LNG origins, allowing for potential tracking and restriction of Russian LNG.
Once in the EU, the final destination of Russian gas becomes difficult to trace due to mixing with other gas sources and commercial contracts. Belgium emphasized that an EU country receiving Russian gas must confirm its necessity for energy supply and called for coordinated efforts from the European Commission.
Hungary has hindered efforts to limit Russian fuel flows, resisting sanctions and extending deals with Gazprom. Budapest recently signed an agreement with Gazprom to continue Russian gas flows through the Turkish pipeline route.
Discussions about extending Ukraine's contract for gas transit are sensitive, as Ukraine relies on this revenue. Sven Giegold, Germany’s state secretary for economic affairs, expressed concern over the increase in Russian fuel imports, urging the Commission to present a roadmap to eliminate all fuel imports from Russia.
The EU took steps in June to restrict Russian LNG by sanctioning transshipments from EU ports, but countries like the Netherlands worry this ban may inadvertently increase shipments into the EU, as they can no longer be re-exported.
By Tamilla Hasanova
https://caliber.az/en/post/france-urges-tighter-monitoring-of-russian-gas-exports-to-eu
Exxon Mobil (XOM Quick QuoteXOM) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this oil and natural gas company have returned +5.4% over the past month versus the Zacks S&P 500 composite's +3.5% change. The Zacks Oil and Gas - Integrated - International industry, to which Exxon belongs, has gained 1.3% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate Revisions
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Exxon is expected to post earnings of $1.94 per share, indicating a change of -14.5% from the year-ago quarter. The Zacks Consensus Estimate has changed -6.2% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $8.11 points to a change of -14.8% from the prior year. Over the last 30 days, this estimate has changed -2.7%.
For the next fiscal year, the consensus earnings estimate of $8.63 indicates a change of +6.4% from what Exxon is expected to report a year ago. Over the past month, the estimate has changed -6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Exxon.
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Exxon, the consensus sales estimate of $94.17 billion for the current quarter points to a year-over-year change of +3.8%. The $361.64 billion and $371.24 billion estimates for the current and next fiscal years indicate changes of +5% and +2.7%, respectively.
Last Reported Results and Surprise History
Exxon reported revenues of $93.06 billion in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $2.14 for the same period compares with $1.94 a year ago.
Compared to the Zacks Consensus Estimate of $90.38 billion, the reported revenues represent a surprise of +2.97%. The EPS surprise was +4.9%.
Over the last four quarters, Exxon surpassed consensus EPS estimates two times. The company topped consensus revenue estimates two times over this period.
Valuation
Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Exxon is graded B on this front, indicating that it is trading at a discount to its peers.
Chevron is ramping up its oil and gas production in the New Mexico sector of the Permian Basin, a region known for its abundant reserves. The Houston-based energy giant aims to achieve a production target of 1 million barrels of oil equivalent per day (mboe/d) in the Permian Basin by 2025. According to Duncan Healey, Chevron’s asset manager for New Mexico, the area's high-quality source rock and significant untapped reserves are pivotal to this ambitious expansion. Healey noted, “The rock is thick and deep, which means it is under high pressure and can force the oil and gas out easier.” He emphasized that this geological advantage allows Chevron to extract more resources compared to other locations within the Permian.
The strategic landholdings Chevron possesses, along with its in-depth understanding of the subsurface geology, further enhance the region's attractiveness. The company's development approach in New Mexico is also in line with the state's regulatory emphasis on safety and environmental responsibility. To comply with environmental standards, Chevron is implementing cleaner technologies, such as electrical compressors in place of natural gas-fueled units. The company has also reported advancements in reducing the carbon intensity associated with its hydraulic fracturing processes.
Chevron is not the only company expanding in this lucrative basin. Viper Energy and its operating subsidiary, Viper Energy Partners (OpCo), are also making strides by acquiring subsidiaries of Tumbleweed Royalty IV, a US pipeline operator. Additionally, Oneok is increasing its footprint in the Permian Basin through two significant acquisitions: a 43% interest in EnLink Midstream from Global Infrastructure Partners (GIP) and GIP’s equity interests in Medallion Midstream, with a total transactional value of approximately $5.9 billion.
The combined efforts of Chevron and other industry players indicate a robust growth trajectory for oil and gas production in New Mexico’s Permian Basin. As these companies capitalize on the region’s rich resources, the focus on environmentally responsible practices will likely shape the future of operations in this critical energy sector.
Chevron Corporation is a leading American multinational energy company primarily focused on oil and gas. It is the second-largest direct descendant of Standard Oil and was originally known as the Standard Oil Company of California. Active in over 180 countries, Chevron operates with a vertically integrated model within the oil and gas sector, engaging in hydrocarbon exploration, production, refining, marketing, transportation, chemicals manufacturing and sales, as well as power generation. Chevron's oil and gas exploration and production activities, classified as "upstream" operations in the industry, are mainly located in the United States, Australia, Nigeria, Angola, Kazakhstan, and the Gulf of Mexico.
China’s Sinopec has boosted oil production at a shale field from 100 tons per day in 2021 to 1,600 tons per day this year, the company said, as quoted by Reuters.
One metric ton of crude oil is equal to about 733 barrels, meaning the current production rate at the Jiyang field is around 11,700 barrels daily.
At this rate, state-owned Sinopec said, it would hit its target of an annual cumulative production rate of half a million tons at the Jiyang field next year.
Earlier in 2024, Sinopec announced an oil and gas discovery at another shale deposit in the Sichuan province in the southwest, estimating that the initial flows could lead to the discovery of around 100 million metric tons of hydrocarbons.
China has substantial shale resources, especially in natural gas, but extracting them is a challenge, unlike in the United States, due to the complex geology of the local shale formations.
Even so, shale exploration is an important part of China’s push to boost its reliance on domestic oil and gas production in a bid to reduce its significant exposure to foreign hydrocarbon resources.
The Jiyang field is part of that effort. Located in the Shandong province, home to most of China’s independent refiners, the field is part of a conventional deposit—Shengli—which has been producing for decades. The Jiyang field has reserves estimated at some 10.5 billion tons, of which 1.73 billion tons are in prospective reserves, according to Sinopec.
Efforts to boost domestic production of hydrocarbons are paying off, meanwhile. In 2023, the Chinese energy industry had a record year in both oil and gas production. In crude oil, the country produced around 4.2 million barrels daily, for a total of 208 million tons, which was 3 million tons more than the previous year. In natural gas, total output last year reached 230 billion cu m, of which 96 billion cu m came from unconventional resources, including shale, coalbed methane, and natural gas hydrates.
By Charles Kennedy for Oilprice.com
https://oilprice.com/Latest-Energy-News/World-News/Sinopec-Boasts-Output-Growth-at-Shale-Field.html
HOUSTON (Reuters) -Oil prices tumbled more than 4% to a near two-week low on Tuesday due to a weaker demand outlook and after a media report said Israel would not strike Iranian nuclear and oil sites, easing fears of a supply disruption.
Brent crude futures settled down $3.21, or 4.14%, at $74.25 a barrel. West Texas Intermediate futures finished down $3.25, or 4.4%, at $70.58 a barrel.
Both benchmarks had earlier fallen by $4, reaching their lowest since the beginning of October, after settling about 2% lower on Monday.
"We're seeing an unwinding of the war premium we built up last week," said Phil Flynn, senior analyst at Price Futures Group. "What we're seeing, it's not really about supply, it's about the risk to supply and demand."
Brent and WTI are down about $5 so far this week, nearly wiping out cumulative gains made after investors became concerned Israel could strike Iran's oil facilities in retaliation for Tehran's Oct. 1 missile attack.
Israeli Prime Minister Benjamin Netanyahu told the United States that Israel was willing to strike Iranian military targets and not nuclear or oil ones, the Washington Post reported late on Monday.
Both the Organization of the Petroleum Exporting Countries and the International Energy Agency this week cut their forecasts for global oil demand growth in 2024, with China accounting for the bulk of the downgrades.
OPEC has projected a much stronger expansion of global demand for the year than the IEA. But its "run of lower adjustments is something of an admission of wishful thinking," said John Evans at oil broker PVM.
OPEC and its allies, known as OPEC+, may change production plans for late this year, said Andrew Lipow, president of Lipow Oil Associates.
"I think OPEC+ is going to defer raising production later this year," Lipow said.
Current crude prices are below levels needed for many of those countries to meet their national budgets, Lipow added.
(Reporting by Erwin Seba, additional reporting by Paul Carsten, Sudarshan Varadhan and Emily Chow; Editing by Christina Fincher, Emelia Sithole-Matarise and Chizu Nomiyama)
https://finance.yahoo.com/news/oil-prices-drop-2-demand-010249320.html
Energy firms TotalEnergies, Qatar Energy, Petronas, Cybele Energy, Delcorp and International Group Investment have reached agreements with Guyana over terms of production sharing deals to explore five oil and gas offshore blocks, the energy ministry said on Wednesday.
A tender launched in 2022 for areas in shallow and deep waters led to offers for eight blocks, part of the government's effort to diversify its energy industry dominated by a consortium led by Exxon Mobil.
The Exxon group, which also is in talks with the government over terms to explore offshore area S8that is part of the tender, is interested in assessing carbon capture and storage opportunities within the block, the ministry said in a release.
A production sharing agreement for that block is under review, the ministry added, without elaborating.
A government official said in May that Guyana's cabinet had approved a bid by Qatar Energy, TotalEnergies and Petronas for exploring shallow water block S4 and negotiations over non-fiscal terms had begun.
By then, the government had also initiated separate talks with Exxon, Hess Corp and CNOOC over their bid, Exxon's head for Guyana said.
Final documents for the areas have not been signed.
Guyana's energy ministry also said in the release that a response from local energy company Sispro is pending related to its offers for two of the blocks.
Guyana's tender board said separately this month that local group VHE Consulting won a $1.5 million contract to audit Exxon's expenses and Guyana's profit oil share for the 2021-2023 period.
(Reuters - Reporting by Kemol King; Writing by Marianna Parraga; Editing by Richard Chang)
https://www.oedigital.com/news/518162-guyana-production-sharing-agreements-accepted
European Commissioner for Energy Kadri Simson reported that European gas reserves are at 95% - this will allow avoiding a deficit and keep prices stable.
The current agreement on the transit of Russian gas to Europe through Ukraine expires at the end of 2024, and Kyiv repeatedly stated it does not plan to extend it.
"Energy production from renewable sources continues to grow, and gas supplies are diversified. As you know, by the end of the year we will see the end of the gas transit agreement between 'Gazprom' and 'Naftogaz'. I confirmed to the ministers that we are ready for this. We knew that this contract would end by the end of the year. The Commission is working closely with the most affected member states to prepare for a zero transit scenario from January 1, 2025," said European Commissioner for Energy Kadri Simson.
Central and Southeastern Europe has diversified supply options to completely replace 14 billion cubic meters of Russian gas still transiting through Ukraine. There are new and existing LNG terminals, as well as various alternative supply routes for both LNG and pipeline gas.
"I have said this before and I will say it again: there are no excuses, the EU can manage without this Russian gas. If EU member states prefer to continue importing Russian gas and do it even beyond contractual capacities, or if they want to sign new agreements on new volumes, I want to emphasize: there is no need for it. It is a political choice that also carries danger," Simson said.
"We must remember that the costs of interaction with Russia are measured not only by the gas price but also by the lost lives in Ukraine," she emphasized.
https://112.ua/en/kinec-gazovoi-zaleznosti-vid-rosii-es-gotovij-do-radikalnogo-kroku-43476
Crude oil prices moved higher today, after the Energy Information Administration reported an inventory dip of 2.2 million barrels for the week to October 11.
The inventory change compared with a sizable build of 5.8 million barrels for the previous week that pressured oil prices.
A day before the EIA released its latest numbers, the American Petroleum Institute estimated an unexpected drop in crude oil inventories that helped prices on their way up. The API said inventories had shed 1.58 million barrels in the week to October 11.
Meanwhile, the EIA also estimated an inventory draw in gasoline and another one in middle distillates for the reporting period.
Gasoline stocks shed 2.2 million barrels last week, with production at an average 9.3 million barrels daily.
This compared with a substantial inventory drop of 6.3 million barrels for the previous week, when production of the fuel averaged 10.2 million barrels daily.
In middle distillates, the EIA estimated an inventory fall of 3.5 million barrels for the week to October 11, with production at an average 4.8 million barrels.
This compared with a stock decline of 3.1 million barrels for the previous week, when production stood at an average 5 million barrels daily.
Oil prices meanwhile got a battering earlier in the week as traders rushed to sell following the latest monthly updates from OPEC and the International Energy Agency. Both revised their oil demand projections down, for the third month in a row, with OPEC now expected demand growth this year at 1.95 million bpd, down from some 2.25 million bpd at the beginning of the year. The IEA sees oil demand inching up by less than 1 million barrels daily this year.
Traders are also still waiting for details on the size of additional economic stimulus planned by the Chinese government and keeping an eye on the Middle East as Israel takes its time with its response to Iran’s missile attack that sent oil prices soaring earlier this month.
By Irina Slav for Oilprice.com
https://oilprice.com/Energy/Crude-Oil/Draws-Across-the-Board-Bolster-Oil-Prices.html
Spot premiums for very low sulphur fuel oil (VLSFO) dropped further on Thursday, with lower-priced trades emerging, while onshore inventories at Singapore rose for a third consecutive week.
Imports recovered week-on-week, latest data from Enterprise Singapore showed, with most cargoes hailing from the United Arab Emirates. Supplies from the Middle East to Asia have recovered in recent weeks after peak summer demand retreated.
Regional supplies and western arbitrage supplies to Singapore also firmed, led by an uptick from Indonesia and the United States.
The cargo replenishment has helped relieve weeks of prompt supply tightness, with spot premiums for VLSFO sliding below $8 per ton on Thursday.
Meanwhile, Thailand's PTT offered two cargoes of high sulphur fuel oil (HSFO) for November loading from Sriracha in a tender that closes on Thursday. The cargoes, each of 18,000 tons, are expected to load between Nov. 8-12 and Nov. 20-24.
Benchmarks for HSFO were stable on Thursday as a narrow range of bids and offers prevailed in the spot market with no trades.
SINGAPORE INVENTORIES
- Singapore onshore fuel oil stockpiles (STKRS-SIN) rose 2.1% to 17.95 million barrels (about 2.83 million metric tons) in the week to Oct. 16, based on data from Enterprise Singapore.
OTHER NEWS
- Oil prices were broadly flat on Thursday as investors waited on developments in the Middle East, the release of official U.S. oil inventory data and details on China's stimulus plans.
- A huge fire that erupted early on Tuesday at an oil tank in Venezuela's La Salina terminal operated by state company PDVSA was extinguished on Wednesday, authorities said.
- Oman's state oil group exploration and production business OQEP has raised $2.03 billion from its initial public offering on the local stock exchange, it said on Thursday, in the Gulf country's biggest listing on record.
- Phillips 66 said it will shut its large Los Angeles-area oil refinery late next year, delivering a blow to California's fuel supply amid complaints about the state's high prices.
WINDOW TRADES
- 180-cst HSFO: No trade
- 380-cst HSFO: No trade
- 0.5% VLSFO: Two trades
ASSESSMENTS
FUEL OIL CASH ($/T) ASIA CLOSE CHANGE PREV CLOSE RIC Cargo - 0.5% VLSFO 560.26 -8.96 569.22 (MFO05-SIN) Diff - 0.5% VLSFO 7.50 -2.65 10.15 (MFO05-SIN-DIF) Cargo - 180cst 453.06 -3.23 456.29 (FO180-SIN) Diff - 180cst 7.75 0.00 7.75 (FO180-SIN-DIF) Cargo - 380cst 436.37 -1.32 437.69 (FO380-SIN) Diff - 380cst 6.75 0.00 6.75 (FO380-SIN-DIF) Bunker (Ex-wharf) Premium - 380cst 13.00 -1.00 14.00 Bunker (Ex-wharf) Premium - 0.5% VLSFO 13.00 0.00 13.00
Middle East crude benchmark premiums for Oman and Dubai dipped on Thursday, while that for Murban ticked up.
Thai refiner IRPC is closing a tender on Thursday to buy December-loading sour crude.
SINGAPORE CASH DEALS
Cash Dubai's premium to swaps slid 2 cents to $1.57 a barrel.
ExxonMobil will deliver a December-loading Upper Zakum crude cargo to TotalEnergies and Hengli will deliver a December Upper Zakum crude cargo to Mitsui following the deals.
On Wednesday, TotalEnergies received an al-Shaheen crude cargo from PTT and an Upper Zakum crude cargo from Hengli for December loading.
SELLER-BUYER PRICE ($/BBL) CHEVRON-MITSUI 73.95 CHEVRON-MITSUI 73.94 CHEVRON-MITSUI 73.94 CHEVRON-MITSUI 74.00 SHELL-MITSUI 74.00 CHEVRON-MITSUI 74.00 SHELL-MITSUI 74.00 SHELL-MITSUI 73.95 TRAFIGURA-TOTAL 74.00 EXXONMOBIL-TOTAL 74.05 HENGLI-TOTAL 74.05 EXXONMOBIL-MITSUI 74.05 REPSOL-GUNVOR 74.06 EXXONMOBIL-TOTAL 74.05 EXXONMOBIL-MITSUI 74.05 EXXONMOBIL-TOTAL 74.05 HENGLI-MITSUI 74.05 EXXONMOBIL-TOTAL 74.05 HENGLI-MITSUI 74.07 PTT-TOTAL 74.05 EXXONMOBIL-MITSUI 74.07 TRAFIGURA-MITSUI 74.07 TRAFIGURA-TOTAL 74.05 REPSOL-MITSUI 74.07 REPSOL-MITSUI 74.07 TRAFIGURA-TOTAL 74.05 PTT-MITSUI 74.07 REPSOL-TOTAL 74.05 RELIANCE-MITSUI 74.07 TRAFIGURA-TOTAL 74.05 PTT-MITSUI 74.07 TRAFIGURA-TOTAL 74.05 SHELL-MITSUI 74.07 RELIANCE-MITSUI 74.07 PTT-MITSUI 74.07 EXXONMOBIL-TOTAL 74.05 EXXONMOBIL-MITSUI 74.07 EXXONMOBIL-MITSUI 74.07 EXXONMOBIL-MITSUI 74.07 HENGLI-MITSUI 74.07 EXXONMOBIL-TOTAL 74.07 TRAFIGURA-TOTAL 74.09 EXXONMOBIL-TOTAL 74.07 EXXONMOBIL-TOTAL 74.07 EXXONMOBIL-TOTAL 74.07 EXXONMOBIL-TOTAL 74.07 TRAFIGURA-TOTAL 74.07 EXXONMOBIL-TOTAL 74.07 HENGLI-MITSUI 74.10 RELIANCE-TOTAL 74.07
PRICES ($/BBL)
CURRENT PREV SESSION GME OMAN 74.07 74.01 GME OMAN DIFF TO DUBAI 1.57 1.61 CASH DUBAI 74.07 73.99
NEWS
OQEP, the exploration and production business of Oman's state oil group, has raised $2.03 billion from its initial public offering on the local stock exchange, it said on Thursday, in the Gulf country's biggest ever listing.
Australia's second-largest oil and gas producer Santos STO estimated its full-year production to be at the top half of its forecast range on Thursday, and said its Pikka project could start oil production as early as 2025.
Jennifer Sor Oct 17, 2024, 8:26 PM BSTShareSave
The world’s most powerful floating offshore wind turbine, with a generating capacity of 20 megawatts, has rolled off the production line in Yancheng City, east China’s Jiangsu Province, according to CRRC, the country’s leading train manufacturer. CRRC Co., Ltd. (CRRC).
The wind turbine, independently developed by China, has a wind wheel with a diameter of 260 meters and a swept area of ??53,100 square meters, roughly the size of seven standard football fields.
The wind turbine can generate 62 million kWh of electricity per year, enough to power about 37,000 households, saving 25,000 tons of coal and reducing carbon dioxide emissions by 62,000 tons.
With its semi-submersible floating platform and mooring system, enhanced with intelligent control and sensing technologies, the turbine extends the reach of wind power to deeper waters, ensuring stable operation.
“Floating offshore wind turbines are a major technology trend that is shaping the future of wind energy development,” said Wang Dian, deputy general manager of CRRC Qi Hang New Energy Technology Co., Ltd.
The wind turbine offers customizable options for various water depths, providing optimized solutions for offshore wind energy resources.
China’s renewable energy sector is gaining momentum as the government strives to increase the proportion of electricity from non-fossil fuels in its energy structure. By 2023, the country’s renewable energy capacity surpassed thermal power capacity for the first time, making up more than half of the country’s installed electricity production capacity.
POSCO Future M announced on the 13th that a plant dedicated to positive electrode materials for Pohang NCA (nickel, cobalt, and aluminum) has begun full-fledged operation on the 12th.
NCA cathode material, which is a high nickel material with a nickel content of 88%, increases the energy density and output power of the battery. It is used in high-performance electric vehicle batteries.
POSCO Future M will start operating a plant dedicated to NCA cathode materials in Pohang about three months earlier than planned to respond to customer requests.
With the operation of the Pohang plant, POSCO Future M will have its first plant dedicated to NCA cathode materials with an annual capacity of 30,000 tons. In other words, it will secure supplies that can respond stably to large-scale orders in the future.
In addition, a plant dedicated to NCA cathode materials with an annual capacity of 52,500 tons is being built in Gwangyang with the aim of completing it by 2025.
If these are combined, POSCO Future M will have an NCA cathode material production system with an annual capacity of 82,500 tons.
In factories dedicated to NCA cathode materials in Pohang and Gwangyang, it plans to expand the production of single crystal cathode materials, which are rapidly in demand due to high performance of electric vehicles.
The single crystal cathode material is a material that combines raw materials into a single particle structure to further improve the thermal stability and life of the battery.
POSCO Future M has mass-produced NCMA single crystal cathode materials for the first time in Korea in March last year, and will also have a system for mass-producing and supplying NCA single crystal cathode materials. Through this, it is expected to further solidify its position as a leading company in high value-added technology.
An official from POSCO Future M said, "By 2026, Pohang plans to complete 106,000 tons of annual production plants, including the NCA cathode material plant to be completed, and Gwangyang will have a total cathode material production capacity of 248,500 tons."
COAL: Ameren Missouri tomorrow will shut down one of its largest coal plants after more than 13 years of litigation over its failure to comply with federal clean air laws, though advocates say justice has not been fully served. (Missouri Independent)
SOLAR: The opportunity to manage vegetation around a 100 MW Illinois solar project with grazing sheep helped a farmer once skeptical of large renewable energy projects see the benefits of agrivoltaics. (Energy News Network)
A recent round of federal clean energy funding for rural Wisconsin communities includes $75.9 million for 22 solar projects that are expected to produce 62 MW of power. (Center Square)
CARBON CAPTURE: A South Dakota law set to be decided by voters in the Nov. 5 election continues to divide residents over whether it gives landowner protections in the face of carbon pipelines or limits local governments’ ability to regulate projects. (South Dakota Searchlight)
Illinois residents raise concerns about the safety of carbon storage wells following recent incidents at an ethanol plant and as federal regulators consider permits for additional injection wells. (Advantage News)
NUCLEAR: A new federal report says the U.S. needs to start building large new nuclear plants — not just reopening shuttered facilities or small reactors — to meet rising power demand. (Canary Media)
GRID: State and federal officials, along with clean energy advocates, celebrate $75 million in public funding for a series of transmission upgrades in Minnesota. (Herald Review)
CLIMATE: Ongoing shifts in extreme weather and rising insurance rates are ways that climate change is affecting Minnesota, experts say. (WCCO)
ELECTRIC VEHICLES: A regional council of local governments awards a southwestern Ohio city $500,000 to place electric vehicle chargers in strategic areas. (WLWT)
COMMENTARY: An editorial board says carbon capture and storage is still a promising climate tool despite recent storage well monitoring incidents in Illinois. (Chicago Tribune)
A former Minnesota columnist says he can’t forgive elected officials who continue to publicly deny climate science in the wake of two powerful hurricanes, and urges more climate action from lawmakers. (Star Tribune)
https://energynews.us/newsletter/ameren-to-shutter-large-coal-plant-after-years-of-litigation/
Tokyo Electric Power Co. Holdings (TEPCO) is expanding its renewable energy efforts by planning to produce hydrogen using geothermal power in Indonesia. Partnering with Indonesia’s state-run oil company Pertamina, TEPCO will install hydrogen production equipment at a geothermal power plant in eastern Indonesia. Slated to begin as early as 2027, this initiative is part of a larger strategy to meet the rising demand for low-emission energy solutions.
Meanwhile, major Japanese construction firm Obayashi is also jumping into the hydrogen game, with plans to produce hydrogen in New Zealand. These efforts align with Japan's recent announcement to revise its hydrogen strategy, aiming to boost the annual hydrogen supply to 12 million tonnes by 2040. This target comes as a direct response to increasing competition in the global hydrogen market, with significant investments from the U.S. and Europe.
Japanese Prime Minister Fumio Kishida is keen on developing hydrogen supply chains and enhancing domestic regulations to meet these ambitious goals. By 2030, Japan plans to ramp up its hydrogen supply to approximately 3 million tonnes, up from the current 2 million tonnes primarily used by oil refiners. The longer-term vision is to expand this figure to 20 million tonnes by 2050, with hydrogen and ammonia playing key roles in Japan's goal to achieve carbon neutrality.
Hydrogen is emerging as a key alternative to fossil fuels, particularly in sectors like energy, steel, and chemicals that are striving to reduce their carbon emissions. Green hydrogen, produced through electrolysis powered by renewable energy, stands out for its zero-emission potential, making it a promising solution for powering homes and businesses sustainably. Also, Japan has committed to investing $113 billion over the next 15 years to advance hydrogen development.
BALTIMORE — The U.S. offshore wind market grew its shovel-ready project pipeline, delivered four new vessels, and broke ground on new port facilities in the third quarter of 2024. These and other key industry findings are detailed in Oceantic Network's U.S. Offshore Wind Quarterly Market Report, which highlights project construction milestones, regulatory advancements and state-level developments that drove the U.S. market forward between July and September of 2024.
Project construction continued with Dominion's Coastal Virginia Offshore Wind project (2,587 MW) installing more than 50 monopiles this quarter alone, bringing their total to more than 70 of 176 since achieving first steel in the water in late May. In New York, Sunrise Wind (924 MW) broke ground for its onshore construction; Connecticut and Rhode Island's Revolution Wind (704 MW) became the third commercial scale project to install turbines with the project nearing the end of foundation installation, with 62 of 65 in the seabed.
"In the run up to the federal election, the U.S. offshore wind market is on solid ground with a strong pipeline of projects ready for construction, three under major offshore installation, and billions flowing quarterly into the supply chain and supporting infrastructure," said Sam Salustro, senior vice president of policy at Oceantic Network. "This momentum is translating into job growth, delivering economic benefits for communities across the nation. Thanks to offshore wind, Hampton Roads, Virginia will be home to a new $700 million cable manufacturing plant, and shipyards from Texas to Massachusetts are filled with orders.
"The U.S. market continued to make progress addressing its vessel needs with the launch of four new crew transfer vessels (CTVs) in Q3. These CTVs were constructed in shipyards in Florida, Louisiana, Massachusetts, and Rhode Island.
The third quarter of 2024 signaled continued momentum for the offshore wind industry as substantial investment continues and in-progress projects approach completion. The report identified several further advancements:
• Including approvals for Atlantic Shores South and US Wind's Maryland Offshore Wind Project, BOEM has now approved ten offshore wind projects totaling 15 GW.
• Massachusetts and Rhode Island awarded provisional offtake agreements for 2,878 MW of capacity across three projects.
• California and Delaware approved their first offshore wind procurement targets, setting the stage for future state-driven offtake rounds.
• Four new crew transfer vessels (CTVs) for the offshore wind industry were launched in Q3 of 2024, marking ten newbuild CTVs launched for the offshore wind industry in 2024.
• Between July and September, $2.1 billion was invested in the U.S. offshore wind market across transmission, port, and supply chain development, as well as research and vessels.
BATTERIES/STORAGE | RENEWABLES
(Montel) The strong concentration in China of critical minerals needed for battery manufacturing presented an “elevated risk of disruption” to global supply chains and energy security, the International Energy Agency (IEA) said on Wednesday.
That risk could arise from geopolitical tensions, extreme weather “or even a simple industrial accident”, the IEA’s chief energy economist Tim Gould said during the presentation of the agency’s latest World Energy Outlook.
“More than half of new projects that have been announced for refined copper, lithium and cobalt … are coming from today’s largest producers and the same is true for about 90% of battery-grade graphite supply,” he said.
“Resilience, diversity, those watchwords for energy security remain incredibly important here as well.”
From 2023-35 more than half of the supply growth for refined copper, lithium, cobalt and battery grade graphite is set to come from today’s largest producer, China, while over 80% of supply growth in nickel will come from Indonesia, the IEA estimates.
Metals shortfall
A shortfall in battery metals had led to companies revising their strategies to safeguard against any disruptions, Gould said.
“We’re seeing particularly among the larger players a lot more vertical integration, new partnerships both on the mining side [and] on the midstream side for the battery metals so that they can have a degree of security about those supplies for their own facilities, but it’s true that we need more.”
The IEA’s findings were a strong signal to policy makers to close the manufacturing gap by developing additional mining and refining projects, improve the efficiency of battery designs and boost recycling, Gould said.
The IEA warned earlier today of high potential for near-term disruption to the world’s oil and gas supply due to the ongoing conflict in the Middle East.
Geopolitical tensions between Europe and China and the potential for increased tariffs between the two could derail Europe’s energy transition, given China’s dominance in fundamental supply chains for battery manufacturing, Montel reported previously.
(All amounts in US$ unless otherwise indicated)
VANCOUVER, British Columbia--(BUSINESS WIRE)-- Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) (“Lithium Americas” or the “Company”) announced the Company and General Motors Holdings LLC (“GM”) have entered into a new investment agreement (“Investment Agreement”) to establish a joint venture (“JV”) for the purpose of funding, developing, constructing and operating (the “JV Transaction”) Thacker Pass in Humboldt County, Nevada (“Thacker Pass” or the “Project”). The JV Transaction will deliver $625 million of cash and letters of credit from GM to Thacker Pass alongside the conditional commitment for a $2.3 billion U.S. Department of Energy (“DOE”) loan announced earlier this year.
Under the terms of the Investment Agreement, GM will acquire a 38% asset-level ownership stake in Thacker Pass for $625 million in total cash and letters of credit (“GM’s JV Investment”), including $430 million of direct cash funding to the JV to support the construction of Phase 11 and a $195 million letter of credit facility (“LC Facility”) that can be used as collateral to support reserve account requirements2 under the DOE Loan (as defined below). The JV Transaction replaces the $330 million Tranche 2 common equity investment commitment from GM under its original investment agreement with the Company (“Tranche 2”) announced in January 2023.
TRANSACTION HIGHLIGHTS
The JV Transaction is incremental to GM’s February 2023 Tranche 1 investment of $320 million, which resulted in GM acquiring approximately 15 million common shares of Lithium Americas 3 . In addition to the JV Transaction, GM has agreed to extend its existing offtake agreement for up to 100% of production volumes from Phase 1 of Thacker Pass to 20 years to support the expected maturity of the DOE Loan. Upon closing of the JV, GM will also enter into an additional 20-year offtake agreement for up to 38% of Phase 2 4 production volumes and will retain its existing right of first offer on the remaining Phase 2 production volumes.
“Our relationship with GM has been significantly strengthened with this joint venture as we continue to pursue a mutual goal to develop a robust domestic lithium supply chain by advancing the development of Thacker Pass,” said Jonathan Evans, President and CEO of Lithium Americas. “Today’s joint venture announcement is a win-win for GM and Lithium Americas. GM’s JV Investment demonstrates their continued support and helps us to unlock the previously announced $2.3 billion DOE Loan. We will be working closely with GM to advance towards the final investment decision, which we are targeting by the end of the year.”
“We’re pleased with the significant progress Lithium Americas is making to help GM achieve our goal to develop a resilient EV material supply chain,” said Jeff Morrison, SVP, Global Purchasing and Supply Chain. “Sourcing critical EV raw materials, like lithium, from suppliers in the U.S., is expected to help us manage battery cell costs, deliver value to our customers and investors, and create jobs.”
JV TRANSACTION DETAILS
The key terms of the JV Transaction are summarized below:
GM’s JV Investment is subject to certain conditions precedent, including those related to the loan agreement for the DOE Loan.
BACKGROUND
U.S. DOE Loan
In March 2024, the Company received a conditional commitment for a $2.3 billion loan from the U.S. DOE under the Advanced Technology Vehicles Manufacturing (“ATVM”) Loan Program (the “DOE Loan”). Prior to making the first draw on the DOE Loan, expected sometime in the middle of 2025, the Company is required to fund approximately $195 million (funded by either cash or letters of credit) for reserve accounts associated with the DOE Loan (for construction contingency, ramp-up and sustaining capital). The GM LC Facility will be used to fund the DOE’s reserve accounts.
2023 GM Investment
On January 30, 2023, Old LAC 5 entered into a purchase agreement with GM, pursuant to which GM agreed to make a $650 million equity investment (the “2023 Transaction”), the proceeds of which are to be used for the construction and development of Thacker Pass. The 2023 Transaction was comprised of two tranches, a first tranche investment of $320 million (“Tranche 1”) and Tranche 2. Tranche 1 closed and the Phase 1 offtake agreement was executed on February 16, 2023. On October 3, 2023, pursuant to the Separation, the full amount of the remaining unspent proceeds of Tranche 1 were included in the net assets distributed by Old LAC to the Company.
As the Separation was completed before the closing of Tranche 2, on October 3, 2023, the agreement for Tranche 2 in Old LAC was terminated and replaced by a corresponding subscription agreement between GM and the Company whereby the proceeds of Tranche 2 would be received by the Company.
On August 30, 2024, the Company and GM agreed to extend the outside date for the Tranche 2 subscription agreement until the end of the year to provide time for the parties to explore alternative structures for GM’s additional investment in a mutually beneficial manner. The Company and GM have terminated the Tranche 2 subscription agreement concurrent with the execution of the JV Investment Agreement.
THACKER PASS PROJECT UPDATE
The Company continues to focus on de-risking project execution by advancing detailed engineering, project planning and procurement packages.
To date, the Company has achieved over one million work hours without a lost time injury.
NEXT STEPS
The Company continues to work closely with the DOE and expects to close the DOE Loan in the coming weeks. The Company and GM are targeting making the FID and issuing full notice to proceed for Thacker Pass by the end of the year, following closing of the DOE Loan and the JV Transaction.
ADVISORS
Goldman Sachs & Co. LLC and Evercore Group L.L.C. are acting as financial advisors to Lithium Americas and Vinson & Elkins and Cassels Brock & Blackwell are acting as legal counsel to Lithium Americas in connection with the JV Transaction. BMO Capital Markets acted as financial advisor to Lithium Americas in connection with GM’s original Tranche 2 investment announced in January 2023.
Morgan Stanley & Co. LLC is acting as GM’s financial advisor and Mayer Brown and Osler, Hoskin & Harcourt are acting as legal counsel to GM in connection with the JV Transaction.
TECHNICAL INFORMATION
The scientific and technical information in this news release has been reviewed and approved by Rene LeBlanc, PhD, SME, Vice President, Growth and Product Strategy of the Company, and a “qualified person” as defined under National Instrument 43-101 and Subpart 1300 of Regulation S-K under the United States Securities Act of 1933.
ABOUT LITHIUM AMERICAS
Lithium Americas is committed to responsibly developing the Thacker Pass project located in Humboldt County in northern Nevada, which hosts the largest known Measured and Indicated lithium resource in North America. The Company is focused on advancing Thacker Pass Phase 1 toward production, targeting nameplate capacity of 40,000 tpa of battery-quality lithium carbonate. The Company and its engineering, procurement and construction management contractor, Bechtel, entered into a National Construction Agreement (Project Labor Agreement) with North America’s Building Trades Unions for construction of Thacker Pass. The three-year construction build is expected to create approximately 1,800 direct jobs. Lithium Americas’ shares are listed on the Toronto Stock Exchange and New York Stock Exchange under the symbol LAC. To learn more, visit www.lithiumamericas.com or follow @LithiumAmericas on social media.
FORWARD-LOOKING INFORMATION
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward-looking information” (“FLI”)). All statements, other than statements of historical fact, are FLI and can be identified by the use of statements that include, but are not limited to, words, such as “anticipate,” “plan,” “continues,” “estimate,” “expect,” “may,” “will,” “projects,” “predict,” “proposes,” “potential,” “target,” “implement,” “scheduled,” “forecast,” “intend,” “would,” “could,” “might,” “should,” “believe” and similar terminology, or statements that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved. FLI in this news release includes, but is not limited to, expectations regarding completion of the JV Transaction and the DOE Loan; the expected timetable for completing JV Transaction and the DOE Loan; anticipated timing for FID; expectation about the extent that the JV Transaction, DOE Loan, and cash on hand would fund the development and construction of Thacker Pass; expectations and timing on the commencement of major construction and first production; project de-risking initiatives; expectations related to the construction build, job creation and nameplate capacity as well as other statements with respect to the Company’s future objectives and strategies to achieve these objectives, and management’s beliefs, plans, estimates and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts.
FLI involves known and unknown risks, assumptions and other factors that may cause actual results or performance to differ materially. FLI reflects the Company’s current views about future events, and while considered reasonable by the Company as of the date of this news release, are inherently subject to significant uncertainties and contingencies. Accordingly, there can be no certainty that they will accurately reflect actual results. Assumptions upon which such FLI is based include, without limitation, the completion of the JV Transaction and DOE Loan prior to the end of 2024, or at all, and the absence of material adverse events affecting the Company during this time; the ability of the Company to satisfy all closing conditions for the JV Transaction and the DOE Loan in a timely manner; expectations regarding the Company's financial resources and future prospects; the ability to meet future objectives and priorities; a cordial business relationship between the Company and third party strategic and contractual partners; general business and economic uncertainties and adverse market conditions; the availability of equipment and facilities necessary to complete development and construction at the Project; unforeseen technological and engineering problems; political factors, including the impact of the 2024 U.S. presidential election on, among other things, the extractive resource industry, the green energy transition and the electric vehicle market; uncertainties inherent to feasibility studies and mineral resource and mineral reserve estimates; uncertainties relating to receiving and maintaining mining, exploration, environmental and other permits or approvals in Nevada; demand for lithium, including that such demand is supported by growth in the electric vehicle market; current technological trends; the impact of increasing competition in the lithium business, and the Company’s competitive position in the industry; compliance by joint venture partners with terms of agreements; the regulation of the mining industry by various governmental agencies; as well as assumptions concerning general economic and industry growth rates, commodity prices, resource estimates, currency exchange and interest rates and competitive conditions. Although the Company believes that the assumptions and expectations reflected in such FLI are reasonable, the Company can give no assurance that these assumptions and expectations will prove to be correct.
Readers are cautioned that the foregoing lists of factors are not exhaustive. There can be no assurance that FLI will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. As such, readers are cautioned not to place undue reliance on this information, and that this information may not be appropriate for any other purpose, including investment purposes. The Company’s actual results could differ materially from those anticipated in any FLI as a result of the risk factors set out herein and in the Company’s filings with securities regulators.
The FLI contained in this news release is expressly qualified by these cautionary statements. All FLI in this news release speaks as of the date of this news release. The Company does not undertake any obligation to update or revise any FLI, whether as a result of new information, future events or otherwise, except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Company’s filings with securities regulators, including the Company’s most recent Annual Report on Form 20-F and most recent management’s discussion and analysis for our most recently completed financial year and, if applicable, interim financial period, which are available on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. All FLI contained in this news release is expressly qualified by the risk factors set out in the aforementioned documents.
___________________________________________________
1 Phase 1 is the initial phase of production at Thacker Pass, targeting 40,000 tonnes per annum (“tpa”) of battery-grade lithium carbonate.
2 See the section titled Background – U.S. DOE Loan for more details.
3 See the section titled Background – 2023 GM Investment for more details.
4 Phase 2 is the second phase of production at Thacker Pass, targeting an additional 40,000 tpa, for total production capacity of 80,000 tpa.
5 Old LAC is now named Lithium Americas (Argentina) Corp., pursuant to a separation transaction that was undertaken on October 3, 2023 (the “Separation”), when the Company acquired ownership of Old LAC’s North American business assets and investments.
INVESTOR CONTACT
Virginia Morgan, VP, IR and ESG
+1-778-726-4070
ir@lithiumamericas.com
NMED Secretary James Kenney
NMED News:
SANTA FE — The Biden-Harris Administration this week issued new regulations requiring drinking water systems nationwide to locate and replace lead pipes within a decade, a mandate that will affect hundreds of New Mexican water systems.
In support of this mandate, the U.S. Environmental Protection Agency is allocating approximately $24,898,000 in new funding for New Mexico’s drinking water infrastructure to pay for lead pipe inventory and replacement projects.
These funds come in the form of loans, subsidies and grants, with at least 49% allocated to underprivileged communities in the form of grants or principal forgiveness not requiring repayment.
The fresh funds are in addition to hundreds of millions of dollars NMED already offers to help build up water infrastructure systems throughout New Mexico. NMED spent about $78 million on water projects in fiscal year 2024, a sign of the agency’s commitment to helping water systems get back into compliance and serve safe drinking water to their customers.
Approximately 700 New Mexico water systems are affected by the new EPA rule. Communities and water systems must apply for these funds through the Bipartisan Infrastructure Law via New Mexico’s Drinking Water State Revolving Funds. They are administered through the New Mexico Finance Authority, with the New Mexico Environment Department assisting community water systems to qualify for the funding.
More information regarding applying can be found on the NMED website. The application for these funds can be found here.
“Starting today, drinking water systems can take advantage of these funds to remove metals like lead and copper from their drinking water,” New Mexico Environment Secretary James Kenney said. “With record levels of federal water infrastructure dollars flowing into our state, safe and reliable drinking water is within reach of every utility in our state.”
Lead is a potent neurotoxin and there is no safe level of lead exposure, particularly for children. In children, lead can severely harm mental and physical development, slow down learning and irreversibly damage the brain. In adults, can lead cause increased blood pressure, heart disease, decreased kidney function, and cancer. If someone is impacted by lead exposure, there is no known antidote.
The Lead and Copper Rule Improvements (LCRI) mandate more stringent testing protocols for drinking water and establish a reduced threshold for communities to address lead presence in drinking water — thereby safeguarding individuals from harmful exposure.
This definitive regulation also enhances communication within communities, ensuring that families are comprehensively informed about the potential risks associated with lead in drinking water, the identification of lead pipes, and the strategies for their replacement.
Grains
Posted 10:35 -- December corn is down 4 1/4 cents per bushel, November soybeans are down 8 cents per bushel. December KC wheat is down 3 cents per bushel, December Chicago wheat is down 1 1/4 cents per bushel and December Minneapolis wheat is down 4 1/2 cents. The Dow Jones Industrial Average is down 102.10 points at 42,963.12. The U.S. Dollar Index is down 0.180 at 103.12. November crude oil is down $3.78 per barrel at $70.05. At mid-morning only bean oil has recovered to trade in the green, while corn, wheat, soybeans and soymeal continue to fall. Bearish weather in the U.S. Corn Belt and in South America, and better rain chances for hard winter wheat country are bearish inputs driving markets.
Posted 08:39 -- December corn is down 2 3/4 cents per bushel, November soybeans are down 8 cents per bushel. December KC wheat is down 5 cents per bushel, December Chicago wheat is down 4 cents per bushel and December Minneapolis wheat is down 3 1/2 cents. The Dow Jones Industrial Average is down 134.26 points at 42,930.96. The U.S. Dollar Index is down 0.230 at 103.07. November crude oil is down $3.64 per barrel at $70.19. USDA announced two new sales for 2024-25: Sold 131,000 mt (4.8 mb) of soybeans to China and sold 120,000 mt (4.4 mb) of soft red winter wheat to Mexico. Grain and soy markets continue to head south, with soybeans and soymeal now down for the ninth time in the past ten days. Perfect harvest weather in the U.S. and a wetter outlook for South America are weighing on prices.
Livestock
OMAHA (DTN) -- December live cattle are down $1.30 at $186.625, November feeder cattle are down $2.70 at $246.875, December lean hogs are steady, December corn is down 5 1/2 cents per bushel and December soybean meal is down $3.90. The Dow Jones Industrial Average is down 82.51 points. Heading into Tuesday's noon hour, the livestock complex is enduring some technical pressure which consequently pushes all three markets to trade mostly lower. Asking prices are noted in the South at $189 to $190, but are still not published yet in the North.
Posted 08:38 -- December live cattle are down $0.43 at $187.5, November feeder cattle are down $0.58 at $249., December lean hogs are up $0.30 at $76.1, December corn is down 2 1/2 cents per bushel and December soybean meal is down $1.90. The Dow Jones Industrial Average is down 132.11 points. The cattle contracts are trading mildly lower at Tuesday's start as traders need fundamental reassurance to give them the confidence that they should continue to support the contracts and sustain the market at this high price point. Still no cash cattle trade has developed and it's unlikely any bids will surface ahead of Wednesday.
(c) Copyright 2024 DTN, LLC. All rights reserved.
https://www.dtnpf.com/agriculture/web/ag/news/article/2024/10/15/periodic-updates-grains-livestock
BLA denies involvement in attack on mines
Pakistan Pakistan BLA denies involvement in attack on mines
"Baloch Liberation Army condemns the massacre of 21 Pashtun workers in Dukki," BLA siad in an email
Follow on Published On: Sun, 13 Oct 2024 14:59:30 PKT
KARACHI (Reuters) – The Baloch Liberation Army, a militant separatist group in Pakistan, denied involvement in an attack that killed at least 21 mine workers, condemning the violence.
Dozens of attackers stormed a cluster of small private coal mines in Pakistan's restive southwest on Friday with guns, rockets and hand grenades, killing some miners in their sleep and shooting others after lining them up.
"Baloch Liberation Army condemns the massacre of 21 Pashtun workers in Dukki, making it clear that our organization has no involvement in this tragic incident," the BLA said in an email late on Saturday.
No group has claimed responsibility for the attack on the mines of the Junaid Coal Co in the mineral-rich province of Balochistan that borders Afghanistan and Iran.
It was the worst such attack in weeks and comes days before Pakistan hosts a summit of the Eurasian group Shanghai Cooperation Organisation.
A decades-long insurgency in Balochistan by separatist militant groups has led to frequent attacks against the government, army and Chinese interests in the region, pressing demands for a share in mineral-rich resources.
Besides the separatists, the region is also home to Islamist militants, who have resurged since 2022 after revoking a ceasefire with the government.
The BLA seeks independence for Balochistan. It is the biggest of several ethnic insurgent groups that have battled the South Asian nation's government for decades, saying it unfairly exploits Balochistan's rich gas and mineral resources.
The province is home to key mining projects, including Reko Diq, run by giant Barrick Gold and believed to be one of the world's largest gold and copper mines. China also operates a gold and copper mine in the province.
At the time of the attack, a delegation from Saudi Arabia, which says it is set to buy a stake in the Reko Diq mine, was in Islamabad exploring deals as Pakistan seeks to recover from an economic crisis.
https://dunyanews.tv/en/Pakistan/843787-bla-denies-involvement-in-attack-on-mines
RareX (ASX: REE) has identified significant niobium and rare earth element (REE) potential in a study of historical material at its new Khaleesi project in Western Australia.
The company elected to re-assay prior drilling material in an area that had previously been targeted for its gold potential.
The historical air core drilling pulps from AngloGold Ashanti were re-assayed, with numerous intervals of elevated rare earths identified at Niobe and Luchini.
Highly elevated REEs
“We are exploring predominantly for niobium-REE carbonatites within the basement rocks of the Khaleesi alkaline intrusion complex and these assays, with highly elevated REEs and high-field-strength elements in the regolith profile, confirm we are in the right environment for carbonatites and will help us home in on the targets,” managing director James Durrant said.
“We are very excited by the prospects of Khaleesi,” he added.
“Not only the intrusive carbonatites within the underlying basement rocks for niobium and REE that haven’t been targeted by prior drilling, but also the structural features including deep plumbing faults identified through extensive reinterpretation of the geophysical data, where the prospects for precious and base metal mineralisation and enrichment are very real.”
Approvals delay
RareX’s only disappointment was that a prolonged tenement application process has pushed the exploration drilling plans it hopes to undertake in one campaign back to next year.
The tenement was pegged on 9 May 2024 and an immediate request for an expedited process was made, with a heritage agreement signed with the Upurli Upurli Nguratja people by 29 July.
However, the tenement application was not referred to native title until 24 July and the advertising period, which started on 9 August, doesn’t end until 9 December, making a 2024 start to drilling impossible.
Site access agreement
RareX signed a site access agreement in late September with AngloGold Ashanti in relation to exploration licence E39/2504, part of the 100%-owned Khaleesi project.
The agreement includes the use of the Tropicana access road, facilitating efficient travel into the licence area for exploration activities—the final step for the granting of the exploration licence and access to priority drilling targets.
RareX is targeting niobium-REE carbonatite intrusions at the site, like at Mt Weld to the north-west, or intrusion-related hydrothermal mineralisation such as those found at Ponton Dyke to the south.
https://smallcaps.com.au/rarex-identifies-elevated-niobium-ree-mineralisation-khaleesi-project/
Seabridge Gold Inc. (TSE:SEA) NYSE: SA crossed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of C$21.51 and traded as high as C$24.05. Seabridge Gold shares last traded at C$23.53, with a volume of 46,163 shares traded.
Seabridge Gold Price Performance
The company has a market capitalization of C$2.11 billion, a PE ratio of 261.44 and a beta of 1.11. The company has a quick ratio of 3.34, a current ratio of 2.11 and a debt-to-equity ratio of 57.06. The firm's 50-day moving average is C$23.13 and its 200-day moving average is C$21.51.
Seabridge Gold (TSE:SEA - Get Free Report) NYSE: SA last posted its quarterly earnings data on Tuesday, August 13th. The company reported C$0.51 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of C$0.04 by C$0.47. Equities analysts predict that Seabridge Gold Inc. will post -0.31 earnings per share for the current fiscal year.
Insider Buying and Selling at Seabridge Gold
In related news, Senior Officer Christopher Justin Reynolds sold 2,123 shares of Seabridge Gold stock in a transaction on Monday, July 29th. The shares were sold at an average price of C$23.06, for a total value of C$48,956.38. In other news, Senior Officer Julie Rachynski sold 1,396 shares of the business's stock in a transaction dated Tuesday, August 6th. The stock was sold at an average price of C$21.45, for a total value of C$29,944.20. Also, Senior Officer Christopher Justin Reynolds sold 2,123 shares of the stock in a transaction dated Monday, July 29th. The shares were sold at an average price of C$23.06, for a total value of C$48,956.38. Insiders have sold 3,819 shares of company stock worth $86,386 over the last ninety days. Insiders own 2.78% of the company's stock.
About Seabridge Gold
Seabridge Gold Inc, together with its subsidiaries, engages in the acquisition and exploration of gold properties in North America. The company also explores for gold, copper, silver, and molybdenum deposits. Its principal projects are the Kerr-Sulphurets-Mitchell property and Iskut project located in British Columbia, Canada; Courageous Lake property situated in Northwest Territories, Canada; Snowstorm project situated in the Nevada; and 3 Aces project located in the Yukon Territory.
https://www.marketbeat.com/instant-alerts/tse-sea-cross-above-200-day-moving-average-2024-10-15/
MANARA Minerals is said to be closing in on a deal to buy a minority stake in Canadian miner First Quantum Minerals’ Zambian copper and nickel assets.
Citing three people familiar with the details, Reuters said advanced talks were for Manara to buy between 15% and 20% equity in the Zambian mines, worth potentiallly between $1.5bn and $2bn. Manara is a joint venture between Saudi Arabian mining company Ma’aden and the country’s $925bn Public Investment Fund.
First Quantum’s sale of a stake in the Zambian assets could be concluded by year-end, said Reuters.
First Quantum earlier this year said it was in talks with potential investors to sell a partial stake in the Zambian mines, while also exploring the sale of its Spanish mine Las Cruces to raise capital and cut debt after the Panama government ordered the shutdown of its flagship Cobre Panama mine.
Reuters said Manara had emerged as a front runner for the purchase as the Saudi firm’s strategy to acquire a minority interest fits with First Quantum’s aim to retain a majority stake in the mines.
First Quantum owns the Kansanshi and Sentinel copper mines in Zambia, which have become key to future output after Cobre Panama’s shutdown. First Quantum also owns the Enterprise nickel mine in the country.
“This is not a surprise – First Quantum has disclosed exploring a sale to shore up its balance sheet and the Saudis have been increasingly active in acquiring mining stakes,” Citigroup analysts said in a note after Reuters’ story.
Manara has made significant investments in metals including copper, nickel and lithium as part of Saudi Arabia’s aggressive push to secure minerals and transform into a hub for battery and electric vehicle manufacturing.
The firm is also in talks with the Pakistan government to be part of the Reko Diq copper mine currently under development, which is owned by Barrick Gold, Pakistan state enterprises and the provincial government of Balochistan, said Reuters.
https://www.miningmx.com/top-story/58684-manara-may-buy-2bn-stake-in-first-quantums-zambian-mines/
Total gold output at Nevada Gold Mines fell to 385,000 ounces in the July-September quarter, compared with 401,000 ounces in the preceding three months.
But Barrick, the world’s second-largest gold producer, expects a “materially stronger fourth quarter”. An operational expansion at Carlin mine, completed during a shutdown in the third quarter, would support higher throughput and recoveries in the last quarter of the year, the company said.
Its total preliminary gold output was 943,000 ounces in the third quarter, compared with analysts’ estimate of 975,000 ounces, according to data compiled by LSEG.
Barrick expects all-in sustaining costs, an industry metric used to express total expenses, for gold to be at least 2% higher than the previous quarter.
Its preliminary copper production was at 48,000 tonnes, an 11.6% jump over the second quarter, driven by higher output at the Lumwana mine in Zambia.
Barrick’s gold and copper production would need to increase by nearly 30% quarter-over-quarter for it to achieve the midpoint of its outlook range, Scotiabank analyst Tanya Jakusconek said. “We view these results as slightly negative for the shares.”
Barrick’s shares were down nearly 1% at C$27.63. It expects to produce 3.9 million to 4.3 million ounces of gold and 180,000-210,000 tonnes of copper in 2024.
The miner is scheduled to release third-quarter results on Nov. 7.
Analysts expect Barrick to post an adjusted profit of 35 cents per share versus 24 cents it earned a year earlier, boosted by a surge in gold prices due to interest rate cuts and safe-haven demand.
(By Vallari Srivastava; Editing by Shilpi Majumdar)
CENTAMIN generated $103m in third quarter free cash flow, an increase year-on-year of 730%, and kept gold production guidance unchanged at 470,000 to 500,000 ounces for the year ended December.
“This strong performance follows our significant investment in operational improvements which positioned us to capitalise on the current record gold price,” said Martin Horgan, CEO of Centamin which mines the Sukari mine in Egypt.
Gold production for the quarter totalled 131,726 oz, 30% higher year-on-year while gold sales were 44% higher at some 149,659 oz. Total gold production for the nine months is 356,465 oz, the company said. All-in sustaining costs of $1,256/oz were largely unchanged on a quarter and year-on-year basis.
As of end-September, the company had cash and liquid assets of $242m.
Centamin is subject to a $2.5bn share and cash takeover launched by AngloGold Ashanti on September 10. If concluded, the acquisition of Centamin will boost AngloGold’s production to nearly 3.1 million ounces annually making it the world’s fourth largest gold producer.
Sukari also helps lower AngloGold’s AISC. The mine averaged $1,196/oz for the 12 months ended December compared to AngloGold’s $1,500 to $1,600/oz guidance.
On October 15, Egypt’s competition authorities approved the transaction. There are still conditions precedent before the deal is consummated including the sanction of the Scheme by the Jersey Court, AngloGold Ashanti said.
The deal is one of the latest in mining sector merger and acquisitions and follows rival Newmont’s $14.5bn takeover of Newcrest last year and Gold Fields’s C$2.16bn pitch for Canada’s Osisko Mining.
The total value of mining sector deals across all metals year-on-year increased 3% to $64bn in 2023, according to a report by PwC, an auditing firm.
https://www.miningmx.com/trending/58691-centamin-cash-flow-vaults-ahead-of-anglogold-deal/
Drills tap more high-grade gold at Estelle Shane Lasley, Mining News Mining News | Updated Oct 16, 2024 Includes one hole that cut 39 meters averaging 5.4 g/t gold from surface at the RPM deposit. Nova Minerals Ltd. Oct. 16 reported additional thick zones of strong gold mineralization in the second batch of assays from its 21-hole drill program focused on upgrading and expanding the RPM deposit. This expansion is in preparation for the completion of a feasibility study for its Estelle gold-antimony project roughly 100 miles (160 kilometers) northwest of Anchorage, Alaska....
Gold is increasingly attractive as other traditional "safe haven" assets face mounting risks, Bank of America strategists said.
The strategists said investors, including central banks, should rotate into the precious metal, which bulls tout as a hedge against inflation and debt debasement resulting from rising government borrowing.
"Gold looks to be the last 'safe haven' asset standing, incentivising traders including central banks to increase exposure," the strategists said in a Wednesday note.
They explained that with US debt expected to keep soaring, Treasury supply faces risks. At the same time, higher interest rate payments as a share of GDP will make gold an attractive asset in the next few years.
Rising spending is also not merely a US issue. The analyst notes that the International Monetary Fund predicts new spending could amount to 7%-8% of global GDP annually by 2030.
"Ultimately, something has to give: if markets become reluctant to absorb all the debt and volatility increases, gold may become the asset of choice. Central banks in particular could further diversify their currency reserves," the analysts wrote.
With neither candidate for the upcoming US presidential election prioritizing fiscal discipline and a pullback in spending, national debt is projected to hit a record high as a share of the economy in the next three years, the analysts said.
That will increase interest payments as a share of GDP, making gold an attractive asset amid concerns that markets won't be able to absorb new debt, they add.
"Indeed, with lingering concerns over US funding needs and their impact on the US Treasury market, the yellow metal may become the ultimate perceived safe haven asset," the analysts said.
The analysts reaffirmed their target of $3,000 an ounce for gold by the end of next year, which implies 11.1% upside from levels on Thursday.
The analysts' bullishness for the metal comes as worries grow over mounting spending and debt around the world.
Investors have increasingly looked to gold in recent weeks as the Federal Reserve kicked off its easing cycle with a 50-basis point interest rate cut last month, driving the price of gold to gain around 4.3% in the last month.
Central banks around the world have also increased their share of gold as a portion of total reserves. The Bank of America analysts note that gold now makes up 10% of central bank reserves, up from 3% a decade ago.
NORTHERN CAPE: A 52-year-old accused will make an appearance before Springbok Regional Court. Springbok-based Serious Organised Crime Investigating team served the accused with a warrant to appear in court dated, 3 December 2024.
The accused, who is a municipal worker of Namakhoi Municipality attached to their electricity directorate, is alleged to have been part of a syndicate which stole municipal copper cables and sold them at a local scrap yard.
In January 2018, police received a tip-off about Namakhoi Municipality copper cables being stolen. The team opened an enquiry for further investigation. At one stage, a branded Municipal vehicle was observed dropping off cables at the scrap yard. Investigation also revealed that municipal electricians will go as far as making a requisition for new cables for the purpose of making urgent repairs, the cables will end up at the scrapyard for sale purposes. The municipality suffered an estimated damage of R150 000 in the process.
During the investigation period, police identified two suspects, the other suspect passed on during the investigation. Information at our disposal indicates that the said employees were summarily dismissed by the municipality after an internal departmental investigation.
Enquiries: Lieutenant Colonel Tebogo Thebe
071 481 2624
Oct 14 (Reuters) -Nonferrous metals fell in London on Monday after somewhat underwhelming stimulus from China and weak inflation data weighed on the market.
Three-month copper on the London Metal Exchange (LME) CMCU3 fell 1% to $9,694.5 per metric ton by 0213 GMT. The most-traded November copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 dipped 0.1% to 77,220 yuan ($10,910.17) a ton.
LME nickel CMNI3 lost 1.2% to $17,645, zinc CMZN3 dropped 2% to $3,092, lead CMPB3 decreased 0.7% to $2,081.5 and tin CMSN3 was down 1.1% at $32,840.
At a press conference on Saturday, Chinese Finance Minister Lan Foan pledged to "significantly increase" debt, but left investors guessing on the overall size of the stimulus.
Despite the lack of details, the Chinese central bank's effective support for equity markets could ultimately be beneficial to commodity markets, ANZ said in a note.
China is a major consumer of base metals. The health of the Chinese property sector is key to the market, given that construction is a major user of base metals.
Data showed that China's consumer inflation unexpectedly eased in September, while producer price deflation deepened, heightening pressure on Beijing to roll out more stimulus measures quickly to revive flagging demand and shaky economic activity.
Copper inventories CU-STX-SGH in warehouses monitored by the SHFE rose 10.5% to 156,485 tons from the last release on Sept. 30, the exchange said on Friday.
SHFE aluminium SAFcv1 was flat at 20,745 yuan a ton, nickel SNIcv1 gained 0.2% to 134,170 yuan, zinc SZNcv1 declined 0.3% to 25,245 yuan, lead SPBcv1 increased 0.4% to 16,710 yuan and tin SSNcv1 fell 0.7% to 265,690 yuan.
LME aluminium CMAL3 fell 1% to $2,606.50 a ton. Prices rose in the previous session on concerns that supply disruptions from Guinea would further tighten the market for alumina, the main ingredient in making aluminium.
Copper prices came under pressure on Monday from the lack of detail on China's stimulus plans, deflationary pressures in the top consumer and a firm dollar, but was underpinned by higher Chinese imports of the industrial metal.
Benchmark copper HG1! on the London Metal Exchange (LME) shed 0.9% to $9,707 a metric ton by 1005 GMT.
New bank lending in China falling short of expectations and slowing growth in total social financing raised demand concerns.
Consumer price inflation eased in September and producer price deflation deepened, suggesting a need for China to roll out more stimulus measures quickly to revive flagging demand and economic activity.
However, China's pledge on Saturday to "significantly increase" debt to revive growth did not include a dollar amount for the package, which included support for the property market.
"(China's) weekend policy meeting failed to provide the stimulus and clarity markets had hoped for," a metals trader said, adding that the Chinese military's fresh war games near Taiwan created uncertainty.
A stronger dollar also makes greenback-priced metals expensive for holders of other currencies, subduing demand.
China's unwrought copper imports rose in September to 479,000 tons, up 15.4% from August, due to improving seasonal demand and a healthier outlook for demand.
Copper stocks (CU-STX-SGH) in warehouses monitored by the Shanghai Futures Exchange at 156,485 tons, down more than 50% since June, indicate firmer demand for the metal used in power and construction.
Elsewhere, aluminium ALI1! fell 1.7% to $2,587 a ton. It has been supported by higher prices of alumina used to make the metal for transport, packaging and construction industries.
Alumina prices rose last week due to supply disruptions in Guinea, a major exporter of the material.
In other metals, zinc ZNC1! slid 2.3% to $3,081 a ton, lead retreated 1.9% to $2,057, tin FTIN1! ceded 1.4% to $32,730 and nickel NICKEL1! dropped 1.8% to $17,545 a ton.
“Buying emerged in the first two weeks when prices were relatively low,” He Tianyu, a copper analyst at commodity research house CRU, said.
Copper users also rachet up restocking activity in September for the Golden Week holiday at the start of month when consumers typically buy products that have copper in them, such as white goods and cars.
Also supporting better import was higher global copper prices that resulted in an open arbitrage window for traders to make profits by importing, analysts and traders said.
Last month, the world’s second largest economy unveiled its biggest stimulus since the pandemic to boost growth, cut mortgage rates and loosened restrictions on home purchases.
That compounds an outsized interest rate cut by the U.S. Federal Reserve, brightening the demand outlook for copper and boosting prices.
Further supporting import appetite was lower inventories in China. Deliverable copper stocks on the Shanghai Futures Exchange extended declines last month to a seven-month low at 140,408 tons on Sept. 27.
Despite the monthly increase, the figure was close to the 480,426 tons imported in September 2023.
The data includes anode, refined, alloy and semi-finished copper products.
For the first nine months of the year, copper imports were up 2.6% at 4.09 million tons, the data showed.
Imports of copper concentrate last month stood at 2.44 million tons, up 8.9% from a year earlier, customs data showed.
Copper concentrate imports totalled 21.06 million tons for the first nine months, up 3.7% from a year earlier.
(Reporting by Siyi Liu in Singapore; Editing by Toby Chopra and Alison Williams)
https://www.mining.com/web/china-copper-imports-climb-15-on-seasonal-demand-brighter-outlook/
COPPER
December copper futures are lower Tuesday and are under the 4.400 level, falling to a three-week low due to concerns that China’s stimulus measures may fall short in boosting economic growth in the world’s largest metals consumer.
Over the weekend, China’s Ministry of Finance revealed its fiscal stimulus plan, which includes support for the property sector, but failed to reassure the market as investors remain uncertain about the size of the package. In addition, September’s trade figures for China came in weaker than anticipated, which heightened concerns about demand. The lack of demand is evidenced by the extended period during which processing fees for Chinese copper smelters have remained near zero, suggesting an oversupply in the refined copper market.
GOLD
December gold futures advanced due to the bullish interest rate implications of the weak October Empire State manufacturing index, which came in at a negative 11.9 when 2.7 was expected. In addition, some of today’s support can be linked to indications of increasing tensions in the Middle East.
SILVER
December silver futures are higher and were able to trade a bit above the 31.50 level. Silver futures are experiencing heightened volatility as investors evaluated China’s weekend stimulus announcements and the outlook for U.S. interest rate cuts.
Australia’s Cygnus Metals (ASX: CY5) has revealed plans to merge with Doré Copper Mining to develop the two companies’ significant Canadian copper, lithium and gold portfolio.
The companies have agreed to merge by way of a Canadian statutory plan of arrangement, pursuant to which Cygnus will acquire 100% of the issued and outstanding common shares of Doré.
Once the transaction is completed, Cygnus shareholders will own 55% of the merged group and Doré shareholders 45%.
Capital raising
Cygnus has also announced that it intends to raise up to $11 million via a two-tranche placement to fund resource growth and advance the pathway to production at Doré’s Chibougamau copper-gold project.
The company also intends to progress its lithium exploration pipeline in the prolific James Bay region of Canada.
Cygnus executive chair David Southam said Chibougamau is a very attractive target featuring a high-grade copper and gold resource of 10.8 million tonnes at 3.5% copper equivalent.
“This merger is an exceptional opportunity to create value for both groups of shareholders,” he said.
“By combining the proven exploration and management skills of the Cygnus team with the high-grade resource and immense upside at the Chibougamau copper-gold project, we have the potential to unlock substantial value.”
“We intend to devise and implement an aggressive exploration program, utilising highly experienced geologists and the latest technology, with the aim of driving strong resource growth at a time when the world desperately wants more copper from tier-one locations.”
Critical infrastructure
The Chibougamau project also includes a 900,000tpa processing facility—the only milling infrastructure within a 250-kilometre radius.
Cygnus is currently advancing the Pontax lithium project, where it is earning up to 70%, as well as the Auclair and Sakami lithium projects in the James Bay lithium district in Canada.
The company also has rare earth element and base metal projects at Bencubbin and Snake Rock in Western Australia.
Maximise value
Doré president Ernest Mast said the merged entity will aim to maximise the value of the outstanding asset at Chibougamau.
“This merger will provide the funding, additional expertise and the strategy to hopefully generate superior shareholder returns,” he said
The merged group is planning to utilise a “hub-and-spoke” model operation, starting first with the underground development of the Devlin and Corner Bay deposits at Chibougamau.
Once the Devlin deposit is mined out, production at the Joe Mann mine would start and be funded out of operational cash flow.
https://smallcaps.com.au/cygnus-metals-dore-merger-unlock-canadian-copper-lithium-gold-assets/
GSP Resource Corp. (GSPR:TSX.V; GSRCF:OTCBB), a junior mining company founded six years ago, has recently adjusted its approach to the Alwin Copper Mine project in British Columbia. The company, which trades on the TSX Venture Exchange and OTC Markets, initially planned for underground mining but has now pivoted to an open-pit model.
The Alwin property, located adjacent to Teck Corporation's Highland Valley Copper Mine, has a production history dating back to 1916. Operations ceased in 1981 due to low copper prices. GSP Resource acquired an option on the project in 2020, which includes cash payments, share issuance, and a royalty agreement.
The company's decision to redesign its mining plan as an open pit aligns more closely with Teck's nearby operations. This shift may make the project more attractive to Teck as a potential buyer. On October 1, GSP Resource released a block model based on data from 581 historical drill holes totaling over 45,000 meters.
While the current resource estimate focuses primarily on copper, the deposit is known to contain silver, gold, and molybdenum. However, these elements were not consistently assayed in historical drilling due to lower prices at the time.
GSP Resource recently raised $650,000 for further exploration and development work at Alwin. The project's proximity to Teck's operations — with only 1 km separating the properties — could be strategically significant.
The company's market capitalization is relatively small, estimated at around $4 million. This valuation includes recently issued shares. As GSP Resource continues to develop the Alwin project, it may become an increasingly attractive acquisition target for larger mining companies operating in the area.
Solis Minerals Ltd (ASX:SLM) has completed a combined drone and ground magnetometry survey over the Cinto Project in southern Peru.
The survey shows magnetic anomalies south of an intrusive batholith contact with corresponding alteration detected from remote sensing work.
Notably, areas of low magnetic response northeast of the batholith contact represent alteration that contains the area of visible copper mineralisation present at Cinto.
Forming an exceptional toolbox
Solis Executive Director Mike Parker said: “Cinto has an incredible address on the regional Incapuquio fault system with the giant Toquepala porphyry copper mine only 15km to the north.
“The magnetometry survey provides excellent insight into the geology and alteration at Cinto.
“Combined with our previous remote sensing work, and mapping and sampling – including our high grade copper sample area in the northeast of the permits – we are forming an exceptional toolbox to extract the maximum benefit from our ongoing porphyry exploration.
“We will now conduct further assessment using IP surveys to guide our first-pass drill program.”
What’s next?
The high magnetic anomaly south of the batholith is flanked by alteration to the south which represents a high priority target for immediate follow-up mapping and geochemistry.
To the northeast of the batholith, the known high-grade copper area potentially extends into an area of alteration to the east.
Evaluation of areas for follow-up IP programs will be carried out to accelerate permitting for drilling these first-class targets during 2025.
Exploration and drilling pipeline
Solis is advancing its portfolio of targets in the Coastal Belt of Peru to targeted drilling programs as shown in the table below.
The data in red indicates progress since the last announcement on 3 October 2024.
Read: Solis Minerals Expands Peruvian Copper Portfolio By 25,600 Hectares
https://juststocks.com.au/solis-minerals-identifies-magnetic-anomalies-at-cinto-project-in-peru/
Junior miner options prospective property to global zinc and copper miner
Teck Resources, a leading global copper and zinc miner, has taken up residence in the Ring of Fire neighbourhood.
Vancouver-based Teck signed an option agreement last month with junior miner Canterra Minerals for its Ring of Fire project.
With a $275,000 payment over two years, Teck has the option to acquire full control of the property. Canterra retains a 1.5 per cent net smelter royalty.
The 3,011-hectare project, 40 kilometres south of Wyloo’s Eagle’s Nest nickel deposit, was assembled by Canterra through staking in 2023.
Vancouver-based Teck owns several North and South American mining operations, especially zinc and copper, having recently divested its steel-making coal business to Glencore.
Teck didn’t issue a news release but Canterra did.
In an Oct. 1 statement, Canterra president-CEO Chris Pennimpede said they’re pleased to monetize and flip a property that they staked last year, allowing them to focus on exploration in central Newfoundland. Teck has the expertise, he said, to “unlock the full potential of the Ring of Fire Project.”
A previous company, Diamondex Resources, held more than 160,000 hectares of ground in the James Bay lowlands and conducted widespread exploration, collecting a significant amount of data from airborne geophysical surveys and some drilling, to compile a hit list of more than 70 drill targets.
Canterra said in its release that this particular property covers several of those targets and appears to have host rocks that are very similar to Wyloo’s Eagle’s Nest deposit. Eagle’s Nest contains an estimated resource of more than 20 million tonnes of proven and probably reserves with inferred resources of nickel, copper, platinum and palladium.
“We look forward to following Teck’s progress on the Project,” said Pennimpede, “where we hope additional value will be created for our shareholders through our retained royalty that provides continued exposure to future success in this prolific critical minerals district.”
The Kamoa-Kakula Copper Complex in the Democratic Republic of the Congo (DRC) – operated by Canadian mining firm Ivanhoe Mines – produced 116,313 tons of copper concentrate in Q3, 2024.
For the year-to-date, Kamoa-Kakula produced 303,328 tons of copper concentrate, with September output of 40,025 tons reflecting record production for the mine. As a result, the company has revised the production guidance range upwards to between 425,000 and 450,000 for 2024.
A total of 2.2 million tons of ore was processed at the Phase 1 and 2 concentrators during Q3, while the Phase 3 concentrator – commissioned in June 2024 – processed 1.1 million tons of ore and yielded 22,099 tons of copper concentrate.
Ivanhoe Mines aims to achieve a recovery rate of 86% during Q4, 2024, at its Phase 3 concentrator, having achieved a copper recovery rate of 84% during Q3. The company will increase its ore feed to the Phase 3 concentrator for processing by 3% by 2025, as part of the mine’s broader expansion strategy. Ivanhoe Mines is also constructing an on-site smelter with a capacity of 500,000 tons per annum to enhance value-added copper production. The smelter is expected to come online by year-end.
Meanwhile at the Kipushi Mine in the DRC, Ivanhoe Mines achieved a production rate of 17,817 tons of zinc concentrate during Q3,2024, having milled approximately 88,000 ton of stockpile ore. The company is implementing a debottlenecking program at the mine to support a 20% increase in concentrator processing capacity. Targeting 960,000 tons, the program will be complete in mid-2025.
https://energycapitalpower.com/drcs-kamoa-kakula-achieves-record-copper-production-in-q3-2024/
UPDATE 1-Eramet cuts targets for Gabon and Indonesia mines on market, permit setbacks
Adds background and details throughout on target cuts including Moanda mine halt
PARIS, Oct 15 (Reuters) -France's Eramet ERMT.PA on Tuesday cut sharply its 2024 production targets for its manganese mine in Gabon and nickel mine in Indonesia, citing a downturn in the manganese market and a smaller-than-expectedpermit allowance in Indonesia.
The Moanda mine in Gabon and the Weda Bay mine in Indonesia are each the world's biggest for their respective minerals, and have driven Eramet's growth as its historic nickel operation in New Caledonia has been drained by losses and social unrest.
Eramet had raised its full-year core profit guidance in July on a jump in manganese prices.
But the group said in a statement that the manganese market had deteriorated due to a strong decline in Chinese output of carbon steel - the main use for manganese - and an influx of low-grade manganese following the rise in prices earlier this year.
Eramet's Comilog subsidiary is set tosuspend ore production at the Moanda mine for a minimum period of three weeks, with the duration to be revised according to market activity, the group said.
The 2024 target for produced and transported manganese ore from Moanda is now between 6.5 million and 7.0 million metric tons, compared with 7.0 million to 7.5 million previously, it said.
In Indonesia, the country's mines ministry this week issued PT Weda Bay Nickel, Eramet's joint venture with Chinese group Tsingshan, with a revised allowance of 32 million wet tons annually for 2024-2026, including 3 million for internal sales, Eramet said.
As a result the operation's 2024 volume target for external marketable nickel ore has been revised to 29 million wet tons from 40 million to 42 million previously, Eramet said.
The impact on the operation's 2024 financial performance is expected to be largely offsetby higher ore premiums resulting from restrictions to domestic supply, Eramet added.
The French group will publish a third-quarter sales update on Oct. 24.
Reporting by Sudip Kar-Gupta; Editing by Tomasz Janowski and Aurora Ellis
Global technology leader ABB has signed a contract for a mine hoists delivery to Eti Bakir A.S., Türkiye’s largest producer of copper, in a joint effort to contribute to the mining industry’s ongoing sustainable transformation. The two organisations have signed an agreement which will see ABB provide two hoists to the new underground copper mine.
Located in the Maden district of Elazig, the mine is currently under development and is expected to be fully operational within the next three years. With the opening of the new mine, integrating comprehensive and efficient solutions, Eti Bakir A.S. anticipates an increase of almost 30% of its total cathode production, reaching a total of 90 000 t. ABB’s mine hoists, which are scheduled for commissioning at the site in 4Q25, utilise one of the most efficient and reliable electrical drives and motors available to minimise energy consumption.
Copper’s critical role in clean energy technologies, such as wind turbines, electric vehicles, and battery storage, underpins its importance in the global energy transition. According to the International Energy Agency (IEA), mineral demand from clean energy technologies is expected to double by 2040 in the Stated Policies Scenario (STEPS) and quadruple in the Sustainable Development Scenario (SDS). This predicted surge in demand makes it all the more vital for the mining industry to adopt more sustainable operations for cleaner output.
As a complete supplier of mine hoist systems, ABB will deliver the full scope of hoisting services. This includes both a production and an auxiliary hoist, which comprise of mechanical and electrical equipment, for one double drum and one single drum hoist, as well as head sheaves and arrestors. The reliability of these hoists will increase the productivity of operations, ensuring heightened efficiency and enhancing the safety of operators. The agreement represents ABB’s first complete mine hoist installation in Türkiye.
“The installation of full mine hoist solutions will not only help to enhance copper production but also support in the extraction of other critical minerals,” said Yilmaz Sara, Investment Manager, Eti Bakir A.S. “Our collaboration with ABB underscores the importance of maintaining high standards of reliability and productivity in mining operations, contributing significantly to the extraction of necessary resources.”
“This project represents a key milestone for ABB mine hoist systems, as our first complete installation in Türkiye. As adoption of these crucial systems increases, the mining industry grows closer to realising more efficient and sustainable operations,” added Per Lärk, Local Business Line Manager, Hoisting, ABB. “With our expanding catalogue of mine hoist solutions, we look forward to working closely with Eti Bakir A.S. to develop tailored services to drive safety and efficiency, while simultaneously supporting sustainable energy goals.”
A 54% jump in gold production, at times when the precious metal has traded at historic record highs, also helped the company’s quarterly results.
Antofagasta kept its guidance for the year unchanged at 670,000-710,000 tonnes, warning it is likely to be towards the lower end, at a cash cost of $2.40 per pound of copper.
Construction across Antofagasta’s growth and development projects continued during the quarter, with work at Los Pelambres and Centinela mines focused on initial groundworks and the deployment of personnel and equipment to each site.
Chief executive Iván Arriagada highlighted the recent completion of the first phase of an ongoing expansion at Los Pelambres, the company’s flagship operation.
The project, he said, helped achieve a 31% year-on-year increase in the ore throughput rate during the first nine months of 2024.
“Looking ahead, our portfolio of operations is expected to produce 660,000-700,000 tonnes of copper in 2025, with an incremental increase in output expected at Centinela Concentrates,” Arriagada said in the statement.
Multi-billion dollar investments
Antofagasta, majority-owned by Chile’s Luksic family, one of the country’s wealthiest, has earmarked over $7.5 billion in investments in Chile for the next five years.
One of its key projects is the $4.4 billion Nueva Centinela, which will add 144,000 tonnes copper-equivalent a year to its overall production. The expansion project, approved in December, also includes increasing the current molybdenum plant’s capacity and a new development of the Esperanza Sur pit, with the introduction of new autonomous trucks.
Antofagasta recently opened a $2 billion desalination plant for Los Pelambres, which became the first mine to operate with desalinated water in an area of the country that has suffered a 15-year drought.
The company also expects to obtain all permits to start working on the $1.2 billion extension of its Zaldívar copper mine, which would allow it to continue operations through 2051.
On top of all these projects, Antofagasta has said it expects to allocate between $40 million and $50 million a year in maintenance work at its assets in Peru, the United States and Canada.
https://www.mining.com/antofagasta-copper-production-jumps-15-in-q3/
Tashkent, Uzbekistan (UzDaily.com) — On 15 October, President of Uzbekistan Shavkat Mirziyoyev visited the "Yoshlik-1" deposit in Almalyk, where he reviewed its development and the construction of the third copper processing plant. The Almalyk Mining and Metallurgical Plant (AGMK), a leader in the extraction of non-ferrous and precious metals, contributes approximately 5% of Uzbekistan's gross industrial output and 6% of its exports. The plant employs around 35,000 people.
In 2023, the plant produced 148,000 tons of copper, over 17 tons of gold, and 162 tons of silver. Investments in the development of the plant amounted to US$1.1 billion, with product exports reaching US$662 million.
One of the key projects of AGMK is the development of the "Yoshlik-1" deposit, which spans 11,000 hectares. Its reserves include 65 million tons of ore per year, containing 13 types of rare and precious metals such as gold, copper, silver, molybdenum, and selenium. The project for developing the deposit and constructing the third copper processing plant began on 29 July 2021.
The total cost of the project is estimated at US$4.6 billion. So far, 200 million cubic meters of the deposit surface have been excavated, 41 kilometers of railway have been laid, and a substation with a capacity of 650 megawatts has been established. Equipment is being supplied from various countries, including the USA, Germany, China, and Russia.
In the first phase, the plant will be able to process 60 million tons of ore per year, producing 917,000 tons of copper and 2,500 tons of molybdenum concentrates annually. This phase is expected to create 5,600 new jobs. By 2028, after the implementation of the second phase, the plant's capacity will triple, allowing for the production of 400,000 tons of copper, 50 tons of gold, and 270 tons of silver annually.
The President highlighted the project's significance for the development of related industries, as well as its impact on employment and education. Plans are in place to elevate the Almalyk plant to a global level, supplying its products to the growing markets of the "green economy" and electric transportation.
By 2030, an increase in demand for copper products by 40% is anticipated, which will secure AGMK's stable position in the international market.
#Shavkat Mirziyoyev
MIKE Henry, CEO of BHP, met government officials in South Africa last week, fuelling speculation that the Australian miner will resurrect its failed £39bn bid for Johannesburg-based rival Anglo American, said the Financial Times.
Henry and chief development officer Catherine Raw met South Africa government officials and the Public Investment Corporation, the state-owned asset manager, said the newspaper citing three people with knowledge of the details.
Raw, who joined BHP in April, is in charge of mergers and acquisitions and was involved in the first Anglo approach, said the Financial Times.
PIC is the second-largest shareholder in Anglo, with a 7.5% stake. South Africa’s government is also a shareholder in BHP, with a 3.7% stake at the time of the most recent annual report.
BHP was examining how it might make a renewed offer after the standstill period comes to an end on November 29, according to bankers seeking advisory or financing roles. However, they cautioned no decision had been made.
“The consensus view is that they are coming back, if they can figure it out,” one banker said. Another said it was an “open secret” that BHP was considering whether to make a bid. BHP declined to comment.
BHP said iron ore output in its first quarter rose 2% from the year-before, as moves by major miners to ramp up production raise the specter of over-supply.
The world’s largest miner produced 64.6 million tons (Mt) of iron ore over the three months to the end of September, said Bloomberg News citing third quarter production report on Thursday. Full-year guidance for its iron ore operations was kept at 255 to 265.5Mt.
“China has announced a series of monetary easing policies in an effort to support economic growth, and has indicated more significant fiscal stimulus is on the horizon,” said Henry. “Upcoming stimulus is likely to focus on relieving local debt, stabilising the property market and bolstering business confidence.”
https://www.miningmx.com/top-story/58696-bhp-back-in-sa-ahead-of-possible-renewed-bid-for-anglo/
CHAMWE KAIRA
Andrada Mining Limited, a critical raw materials producer with mining and exploration assets in the Erongo Region, has provided the final results from its inaugural drilling program at the historical Brandberg West mine, situated within the exploration license, EPL5445.
The company said the aim of the program was to establish an initial understanding of the grades and geology within the historical open pit area and to investigate potential mineralised extensions to the north.
These results constitute the second and final batch of samples from this program, representing ten out of the twenty holes drilled.
Anthony Viljoen, chief executive officer, said the continuation of significant high-grade tin, tungsten and copper intersections at the Brandberg West project endorsed the company’s strategic outlook for this area and is demonstrative of the untapped value of this asset.
“The second batch of drill results showed grades as high as 10.55% for tin, 3.53% for tungsten, and 1.95% for copper. These results also show that the mineralisation continues along strike to the northeast,” said Viljoen.
He said the full exploration results will be evaluated to optimise the next exploration phase at Brandberg West.
Viljoen continued that the addition of tungsten and copper to its critical metals’ portfolio complements its strategy to become a developer of multiple critical metals for the energy transition and future technological advancements.
“We look forward to updating all stakeholders as we continue to develop this promising asset,” he said.
The Brandberg West project is located in the Erongo region of Namibia under exploration license EPL 5445. The project area is approximately 100 km from the Uis Tin Mine, Andrada Mining’s flagship asset.
Gold Fields Limited owned and operated the historical open pit mine at Brandberg West until operations ceased in the 1980s, coinciding with a global collapse of the tin price.
Although the historical Brandberg West mine claimed to produce a tin and tungsten concentrate, it never did.
Andrada is listed on the London Stock Exchange (AIM) with mining assets in Namibia, which is regarded as a top-tier investment jurisdiction in Africa.
The company strives to produce critical raw materials from a large resource portfolio to contribute to a more sustainable future, improved living conditions, and the upliftment of communities adjacent to its operations.
Leveraging its strong foundation in Namibia, Andrada is on a strategic path to becoming a leading African producer of critical metals, including lithium, tin, tungsten, copper and tantalum.
These metals are important enablers of the green energy transition and essential components for electric vehicles, solar panels, and wind turbines.
https://www.observer24.com.na/andrada-hits-high-grade-mineral-strikes-at-brandberg-west/
On Wednesday, October 16, Alcoa Corporation, the world’s eighth-largest aluminium producer, announced its third-quarter results that reflected sequential increases in net income and Adjusted EBITDA amid declines in production and shipments.
According to the figures revealed by Alcoa, the company encountered a havoc surge in net income from $20 million in Q2 2024 to $90 million in Q3 2024, driven by skyrocketed alumina prices amid stable raw material costs. Adjusted net income was $135 million in Q3 2024 versus $30 million in Q2 2024. However, on an annual basis, Alcoa’s net income and adjusted net income shrank from $168 million and $202 million, respectively.
Alcoa’s Adjusted EBITDA (excluding special items) jumped by 250 per cent Q-o-Q and 550 per cent Y-o-Y, amounting to $455 million in the third quarter of 2024 ended September 30.
Revenue stood at $2.9 billion in Q3 2024, up 11.54 per cent Y-o-Y from $2.6 billion but restrained compared to Q2 2024.
Alcoa achieved these robust financial results despite weaker operational performance, especially in the raw material sector. For instance, Alcoa’s alumina production decreased by 4 per cent sequentially to 2.44 million tonnes, primarily due to full curtailment of the Kwinana refinery in June 2024. Alumina shipments also faced a 9 per cent downfall Q-o-Q.
In case of aluminium, shipments decreased 6 per cent sequentially but production increased to 559,000 tonnes owing to continued progress on the Alumar smelter restart.
Strategic actions
During the third quarter of 2024, Alcoa achieved a few critical milestones, such as the acquisition of Alumina Limited, which will position Alcoa as a strong player in the upstream aluminium industry and the attainment of a long-term alumina supply contract from Aluminium Bahrain B.S.C. In addition, Alcoa undertook a strategic move like entering into a binding share purchase and subscription agreement with Saudi Arabian Mining Company (Ma’aden), under which Alcoa will sell its full ownership interest of 25.1 per cent in the Ma’aden joint ventures to Ma’aden for approximately $1.1 billion.
2024 outlook
Alcoa expects its alumina production to range between 9.8 and 10 million tonnes at the end of 2024, as it projected earlier. For shipments, the company has increased its estimation to 12.9-13.1 million tonnes.
Projection for aluminium production and shipment remain unchanged from the prior forecast, ranging between 2.2-2.3 million tonnes and between 2.5-2.6 million tonnes, respectively.
Alcoa expects its fourth-quarter operational tax expense to hover around $120-130 million based on current alumina and aluminium market conditions.
Major miner BHP Group booked mixed production results for the first quarter of its 2025 financial year, with iron ore and copper improving and steelmaking coal and nickel falling year over year.
"BHP had a strong start to the 2025 financial year, with production up across all major commodities for the quarter," BHP CEO Mike Henry said in the operational results released Oct. 17.
The Australia-headquartered miner said it produced 64.6 million metric tons of iron ore in the quarter ended Sept. 30, up 2% year on year, thanks to increased capacity at its Western Australian Iron Ore business and the resumption of pelletizing plant No. 4 at Samarco in Brazil.
WAIO produced 63.4 MMt of iron ore during the quarter, up 2% year on year, while Samarco's output rose 4% to 1.3 MMt.
BHP's copper output jumped 4% on the year to 476,300 metric tons due to higher concentrator feed grade and recoveries at Escondida in Chile and higher productivity at Carrapateena in South Australia, as well as output from Antamina in Peru and Carajas in Brazil.
Escondida produced 304,200 metric tons in Q1, up 11% year on year, Copper South Australia produced 73,400 metric tons, up 2%, Antamina's output rose 12% to 36,300 metric tons and Carajas' production rose 10% to 2,300 metric tons.
However, copper output at Pampa Norte in Chile fell 23% on the year to 60,100 metric tons.
BHP's energy coal production at its New South Wales Energy Coal unit increased by 2% to 3.7 MMt, which includes a higher proportion of washed coal. Meanwhile, BHP's production of steelmaking coal plunged 19% to 4.5 MMt at its BHP Billiton Mitsubishi Alliance operations.
"We are seeing signs of stabilization in our steelmaking coal business with production up 20% in the quarter, excluding the recently divested Blackwater and Daunia mines," Henry said in the results.
Nickel output in Western Australia also fell 3% to 19,600 metric tons as BHP prepared to temporarily suspend operations at its Nickel West mining complex in Western Australia amid an oversupply in the global market.
The mining giant maintained its fiscal year 2025 production guidance of 1.8-2 MMt for copper, 255-265.5 MMt for iron ore and 16.5-19 MMt for steelmaking coal.
Henry said BHP had added to its copper growth prospects during the quarter, announcing a proposed 50:50 joint venture in Argentina with Lundin Mining to advance a significant global copper discovery.
"China has announced a series of monetary easing policies in an effort to support economic growth and has indicated more significant fiscal stimulus is on the horizon. Upcoming stimulus is likely to focus on relieving local debt, stabilizing the property market and bolstering business confidence," Henry said.
Platts, part of S&P Global Commodity Insights, assessed the IODEX 62% Fe Iron Ore Index at $104.40/dmt CFR North China Oct. 16, down 27% since the start of 2024.
MANILA, Philippines – Recent test-buy operations by the Philippine Iron and Steel Institute (PISI) showed substandard reinforcement bars (rebars) are still flooding Mindanao.
In a news release over the weekend, PISI said it purchased random rebars from hardware stores in Davao del Sur, Davao del Norte, Maguindanao, Lanao del Sur, Lanao del Norte, Zamboanga del Norte, Samal Island, Cotabato City, Pagadian City, and Iligan City on Sept. 9 to 13.
The test buys were conducted just a few weeks after the same problem cropped up in PISI operations in Northern Luzon.
Mindanao rebars failed to meet the minimum standard for weight and are prone to brittleness, according to PISI.
It added that three steel manufacturers failed to meet the minimum weight requirement while six hardware shops were found selling substandard rebars.
“Based on the information gathered from the test buys, the inferior rebars are enough to build more than 10,000 houses per month, putting at risk up to 30,000 people,” PISI said.
The organization said the test buys were conducted in cooperation with the Department of Trade and Industry to protect the public.
https://business.inquirer.net/484801/influx-of-substandard-rebars-discovered-in-mindanao
The Institute for Energy Economics and Financial Analysis (IEEFA) has stated that Australian miner BHP Billiton continues to focus on carbon capture, utilization and storage to reduce its Scope 3 emissions, which make up 98 percent of its total emissions, despite the growing likelihood that the technology offers limited potential for decarbonizing coal-based steelmaking.
The IEEFA said that, while BHP continues to focus on stalled CCUS technology, its peers, Vale, Rio Tinto, Fortescue and Anglo American, are shifting their emphasis to production of more high-grade iron ore suitable for low-carbon steelmaking in direct reduced iron (DRI)-based steelmaking processes. Vale, Rio Tinto, Fortescue and Anglo American are planning increased production in response to growing demand for DR-grade ore as steelmakers switch to technology that can realistically reduce emissions, while BHP, the only one of the iron ore majors still mining coal, is planning to stick to the production of lower-grade iron ore suitable for coal-based steelmaking in blast furnaces, and metallurgical coal.
According to BHP’s new Climate Transition Action Plan, there are no near zero emissions technologies for iron ore-based steelmaking that are ready for widespread commercial adoption. The IEEFA said that, accordingly, the company risks underestimating the speed with which the steel technology transition will eventuate.
The Charlotte, N.C.-based steelmaker notified customers in a letter on Monday that this week’s base consumer spot price (CSP) for HR coil will be $720/st.
After holding its weekly spot price for hot-rolled (HR) coil steady for three weeks at $730 per short ton (st), Nucor lowered the price this week by $10/st.
This week’s price is flat compared to a month ago. The CSP has remained within a $50/st spread since late July.
SMU’s Oct. 8 check of the market revealed HR coil prices to be in the range of $660-730/st, with an average of $695/st. Nucor’s CSP has been at the high end of SMU’s price range since the week of Sept. 8. Subscribers can track prices for steel sheet and plate using the Interactive Pricing Tool on our website.
Nucor’s letter again noted that it will continue offering 3-5 weeks lead times for HR spot purchases.
SMU’s survey last week showed lead times of 3-7 weeks for HR coil in the wider market, with an average of 5.0 weeks.
West Coast CSP
Nucor also lowered the CSP for HR coil from its West Coast joint-venture subsidiary, California Steel Industries (CSI), by $10/st from last week to $780/st.
https://www.steelmarketupdate.com/2024/10/14/nucor-drops-hrc-price-to-720-ton/
Recently, the Turkish government imposed duties on imports of hot-rolled coils from Russia, China, India and Japan.
Last week, Turkish authorities decided to impose anti-dumping duties on imports of hot-rolled coils from China, India, Japan and Russia. This initiative was met with a positive response from the Turkish steel industry, which believes that the new duties could have a positive impact on local production and increase the industry’s competitiveness, SteelOrbis reports.
Veysel Yayan, Secretary General of the Turkish Steel Association (TÇÜD), welcomed the decision, noting that a 1% reduction in steel consumption in China creates an oversupply of 10 million tons, which is then exported to global markets.
According to him, in 2023, China exported 94 million tons of steel, and this volume could grow to 120 million tons this year. Yayang emphasized that this situation makes China a threat to the steel industry worldwide.
“Balancing steel imports will have a positive impact not only on the steel industry but also on other steel-consuming sectors, and the potential increase in the use of local products will be important for the Turkish economy,” added Veysel Yayan.
Ugur Dalbeler, Deputy Chairman of the Turkish Steel Exporters Association (ÇİB), also commented on the situation, noting that the decision to introduce the duties was based on the industry’s long-standing demands. He emphasized that Turkish steel mills have been operating at 50-55% capacity utilization, which is one of the lowest rates in the world. For comparison, this figure is 90% in China and 70% in India.
“China’s aggressive export policy has severely damaged the global steel market, and Turkey has become the only Western market for Chinese exports, as major markets such as Europe and the US have been protected by safeguard measures since 2018,” comments Ugur Dalbeler.
According to him, the new anti-dumping duties may help to increase the utilization of production capacity in Turkey, which will allow local steel producers to increase their competitiveness in export markets.
As GMK Center reported earlier, Turkey’s imports of hot-rolled steel plates in January-August 2024 decreased by 19.6% compared to the same period in 2023, to 2.44 million tons. China increased its supplies by 7.6% y/y – to 1.24 million tons, the Russian Federation decreased by 58.5% y/y – to 220.37 thousand tons, and Japan by 77.8% y/y – to 87.04 thousand tons.
https://gmk.center/en/news/turkish-steelmakers-support-the-introduction-of-tariffs-on-hrc-imports/
Posted on 14 Oct 2024
The number of integrated steel mills in China finally earning profits on their steel sales has rapidly increased recently, as prices of finished steel have been hovering at a relatively high level, while the mills' production costs have remained low, according to new Mysteel data.
As of October 10, the ratio of blast-furnace steelmakers admitting to earning positive margins on steel sales among the 247 BF mills nationwide under Mysteel's regular tracking reached 71.43%, a huge increase compared with only 18.61% of the mills saying they were earning money among those surveyed just two weeks earlier and marking the highest proportion since late April 2022.
The fast recovery in profitability among the sampled Chinese mills was mainly attributed to the higher prices of finished steel, though these have retreated somewhat with the cooling of market sentiment after the week-long holiday.
Also as of October 10, the national price of HRB400E 20mm dia rebar, a pointer to domestic steel-market sentiment, was assessed by Mysteel at Yuan 3,891/tonne ($551/t) including the 13% VAT, higher by Yuan 406/t from two weeks earlier but lower by Yuan 89/t from the recent high recorded on October 8.
In parallel, production costs among the domestic BF steelmakers hovered low during the past two weeks, with the cost of making hot metal among the 114 Chinese mills under Mysteel's other survey averaging Yuan 2,581/t excluding the 13% VAT, higher by just a minuscule Yuan 19/t on fortnight.
Many Chinese steel producers are preparing to ramp up production given their improved profit margins on steel sales and the rather low volumes of steel held in stock by both mills and traders, Mysteel Global noted.
Over October 3-9, total production of the five major steel products comprising rebar, wire rod, hot-rolled coil (HRC), cold-rolled coil (CRC) and medium plate among the steel mills monitored by Mysteel had increased for the fourth straight week to 8.64 million tonnes, rising by another 1.2% from the prior week.
As of October 10, inventories of the five major steel items among the sampled steel mills reversed down after the short-lived rise during the long break to reach 3.95 million tonnes, down 2.1% from the total on October 6. During the same period, stocks of these products at traders' warehouses in the 132 cities nationwide under Mysteel's regular survey declined by 1.2% to 15.43 million tonnes.
Source:Mysteel Global
KUALA LUMPUR (Oct 14): Hiap Teck Venture Bhd (KL:HIAPTEK) is expected to face continued earnings challenges in the near term due to weak steel prices and high steel input costs, said Hong Leong Investment Bank (HLIB).
The weak performance expected in Hiap Teck’s upcoming first quarter ending Oct 31, 2024 (1QFY2025) is premised on further decline in steel prices in August and September 2024, HLIB said.
This is despite strong demand seen for steel products, fuelled by increased construction activity, HLIB said. Lower average selling prices (ASP) for the steel products will continue to squeeze profitability, it said.
"We lower our FY2025-FY2027 core net profit forecasts by -22.9%/-20.9%/-20.8%, mainly to account for lower earnings before interest and tax (ebit) margin assumptions for trading and downstream segments, as well as lower ASP assumptions for ESSB (27.3%-owned associate Eastern Steel Sdn Bhd),” the house added.
The group is already delaying the commissioning of its hot-rolled coil (HRC) plant from November to December 2024 “given the weak price sentiment”, HLIB said, although construction progress is on track.
HLIB slashed its target price to 42 sen, from 55 sen, although it maintained a “buy” call on the counter, citing long-term prospects in the company — namely cost efficiency in ESSB following the construction of auxiliary facilities, and the HRC plant completion which would boost capacity and product offerings for both local and overseas markets.
At time of writing, Hiap Teck’s share price was down half a sen or 1.45% at 34 sen, valuing the group at RM585.74 million.The counter is down 20% this year.
In 4QFY2024, Hiap Teck’s core net profit plunged 85% year-on-year (y-o-y) to RM9.5 million due to margin compression.
Steel industry leader ArcelorMittal recently commissioned a new, two-stand ladle furnace at its Fos-sur-Mer site in southern France. The Luxembourg-headquartered group stated that the furnace will cut carbon emissions from the flats producer by up to 10%.
In an October 3 announcement, ArcelorMittal stated that each of the two stands on the new equipment can hold more than 330 metric tonnes of crude steel and will boost production by 10% as early as 2025.
The group noted that work to build the new equipment started in Q1, whilst testing occurred over France’s summer.
Fos-sur-Mer is a Significant Contributor to the EU Steel Industry
Ladle furnaces are used in secondary steelmaking to refine steel to desired grades and properties. This is accomplished by reheating the steel and adding alloying elements before casting and rolling.
ArcelorMittal stated that the new equipment carries a €76 million ($83.4 million) price tag, of which the French government donated €15 million ($16.4 million).
ArcelorMittal originally announced its plans to install the new ladle furnace at Fos-sur-Mer, which is in the town of the same name and about 50 kilometers northwest of Marseille, in August 2023.
At that time, the European steel industry giant also announced its plans to install a new electric arc furnace at the site by 2030.
Fos-sur-Mer has two blast furnaces, each with a heath diameter of 11.8 meters, that can produce a combined 7,000 metric tons of pig iron per day.
The plant has an estimated nominal capacity of 60 million metric tons per year of crude steel via two 335-metric ton basic oxygen furnaces, which it casts into slab for rolling into hot rolled coil.
Get all of the latest steel price trends from MetalMiner’s free Monthly Index report. This document contains monthly price-indexes for the steel industry and 9 other metal markets.
The Latest in an Array of Changes
Fos-sur-Mer also temporarily idled its BF 2 in Q4 2022, citing poor steel market conditions. Emissions concerns also prompted a temporary shutdown of the entire plant in mid-2023, while the plant’s BF No. 1 went off stream in Q4 of that year for maintenance works.
Electric arc furnaces are easier to operate for steelmakers as they use electricity to melt steel, whilst blast furnaces must operate continuously in multi-year campaigns to maintain the proper conditions to reduce iron ore into pig iron
Moreover, shutting down a blast furnace can result in molten iron in it to cool down and the refractory lining to crack.
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https://agmetalminer.com/2024/10/15/steel-industry-arcelormittal-furnace/
Prices for European steel hot-rolled coil remained largely stable on Monday October 14, despite bullish sentiment among producers, sources told Fastmarkets.
ArcelorMittal increased its HRC offer prices across Europe by €40 ($44) per tonne, either ex-works or delivered depending on region at the start of the month and, since then, several other European producers have followed suit. But on Monday they were all still pushing to achieve their new prices with wary buyers, Fastmarkets understands.
Buyers remain cautious despite the slight improvement in apparent demand and only limited volumes were traded, sources said.
Fastmarkets calculated its daily steel HRC index, domestic, exw Northern Europe, at €549.38 per tonne on Monday, down by just €0.20 per tonne from €549.58 per tonne on October 11.
The index was up by €11.30 per tonne week on week, but down by €16.87 per tonne month on month.
Offers of HRC in Northern Europe were heard at €560-590 per tonne ex-works. For larger tonnages, discounts of €10-15 per tonne were possible, market sources said.
But achievable values were estimated by most buyers at €540-550 per tonne ex-works.
The stabilization of domestic HRC prices was also supported by import offers being uncompetitive.
Asia-origin HRC was heard offered at €550-560 per tonne CFR Antwerp, while HRC from Turkey was offered at €580-590 per tonne CFR, including anti-dumping duty.
“Importing HRC is dead in customers’ minds,” a buyer source told Fastmarkets.
Apart from the comparatively high import prices, trade risks – such as an anti-dumping investigation and safeguards review – made such offers unattractive to European buyers, Fastmarkets understands.
In Southern Europe, meanwhile, Fastmarkets’ daily steel HRC index, domestic, exw Italy, was calculated at €545.00 per tonne on Monday, unchanged from Friday.
The Italian index was up by €5.00 per tonne week on week, but down by €25.00 per tonne month on month.
Sources reported an offer from one local supplier at €580 per tonne delivered (€570 per tonne ex-works), but buyers estimated the tradable price at no more than €540-550 per tonne ex-works.
Some deals for small volumes were reported at similar levels.
“Suppliers are pushing for higher prices,” a second buyer source told Fastmarkets, “but customers are strongly resisting.”
Published by: Darina Kahramanova
fastmarkets.com
Hanoi (VNS/VNA) - Vietnam imported 1.2 million tonnes of hot rolled coil (HRC) steel in September, a 34% increase compared to August, according to data from the General Department of Customs.
The figure equals 220% of domestic production, set at 568,000 tonnes.
During the first nine months of 2024, Vietnam imported nearly 8.8 million tonnes of HRC, a 26% increase year-on-year and equivalent to 171% of domestic production.
Of this, the amount of steel imported from China accounted for 72%, equivalent to 6.3 million tonnes, significantly surpassing the consumption of domestic manufacturers, which only reached 5.1 million tonnes.
The dominance of Chinese HRC steel imports is primarily due to the lower prices – 30-70 USD less per tonne compared to other markets, depending on the product type.
This price difference stems from China's steel surplus, with domestic demand falling, forcing Chinese producers to boost steel exports at lower prices to reduce excess inventory.
The influx of HRC steel imports into Vietnam has persisted despite an ongoing anti-dumping investigation.
On July 26, the Ministry of Industry and Trade launched an anti-dumping inquiry into certain types of HRC steel originating from China and India.
Under the Law on Foreign Trade and Decree 10/2018/ND-CP, based on preliminary findings, the investigating authority may recommend that the Minister of Industry and Trade impose temporary anti-dumping duties. These temporary duties will not exceed the dumping margin found in the preliminary investigation.
According to economist Ngo Tri Long, with HRC steel imports surpassing domestic production, the ministry's anti-dumping investigation aligns with international and Vietnamese regulations. It is essential to maintain fair competition for local steel producers.
Other countries in the region, including Thailand and Indonesia, have already implemented measures against Chinese steel.
Thailand and Indonesia's domestic production only meets 43% and 65% of their consumption needs, respectively. However, since 2019, these nations have imposed anti-dumping and most-favoured-nation (MFN) tariffs./.
https://en.vietnamplus.vn/hrc-steel-imports-surge-despite-anti-dumping-investigation-post298319.vnp
Fastmarkets’ price assessment of electrical steel, non-grain oriented, ex-whs Eastern China was $671-721 per tonne on October 11, up by 6.75% from $620-684 per tonne two weeks earlier.
Wugang’s 50WW800 product was heard offered at $721 per tonne, while Shagang’s SG50W800 and Angang’s 50AW800 were offered at $671-692 per tonne in the week to Friday.
Deals for Shagang’s SG50W800 were concluded at 4,750 yuan ($672) per tonne, up by 400 yuan per tonne from 4,350 yuan per tonne on September 27, which was before the Golden Week holiday from October 1-7, while Wugang’s 50WW800 was heard traded at 5,100 yuan per tonne, up by 250-300 yuan per tonne from 4,750-4,800 yuan per tonne on September 27.
Steel mills, including Baogang, Bengang, and Angang, have announced price adjustments for November, with order prices for non-grain oriented electrical steel rising by 400-500 yuan per tonne.
Most mills have welcomed the price hikes, which has helped to raise profits and reduce inventory, according to a trader source.
“Shagang’s 50W800 traded at over 4,800 yuan per tonne, but prices stabilized later this week,” the trader said.
But there are concerns among traders that the higher prices could be outpacing demand, sources told Fastmarkets.
“Purchases are still based on immediate needs,” a trader source said.
“Demand is fairly average right now and prices have increased too much. It’s challenging to place orders at these levels,” a second trader source said.
Fastmarkets’ weekly price assessment for electrical steel, non-grain oriented, cfr India, was $660-670 per tonne on Friday, edging down from $665-700 per tonne on September 27.
Meanwhile, India has launched an anti-dumping investigation into imports of Cold-Rolled Non-Oriented Electrical Steel (CRNO) from China, following complaints from South Korean and Taiwanese steelmakers, according to a notification by India’s Ministry of Commerce and Industry.
Among the complainants, POSCO Maharashtra Steel, which is a wholly owned subsidiary of POSCO Korea, as well as CSCI Steel Corporation, which is a subsidiary of CSC Taiwan, have urged the ministry to probe the alleged dumping of CRNO from China.
A Chinese trader told Fastmarkets that export prices for non-grain oriented electrical steel have surged significantly following a recent increase in domestic prices.
“The price of electrical steel in India was higher than importing from China. They will need to seek another ‘cheap solution.’ Additionally, Chinese steel mills may reconsider their presence in the Indian market due to the challenges of obtaining BIS certification and the ongoing anti-dumping investigation,” the Chinese trader said.
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https://www.fastmarkets.com/insights/china-electrical-steel-market-rise/
Feng Hsin Steel, Taiwan's largest rebar producer headquartered in Taichung in central Taiwan, has decided to hike its rebar list prices and buying prices of local scrap by TWD 300/tonne ($9.3/t) on week for transactions over October 14-18, according to a company official.
With the latest adjustment, the mini-mill is offering its 13mm dia rebar at TWD 18,600/t EXW for business discussions till this Friday, and its procurement price for local HMS 1&2 80:20 scrap stands at TWD 9,400/t, the official confirmed.
One major reason for Feng Hsin's price hike was the increase in prices of global scrap delivered to Taiwan over the past week, which lifted the production costs of local mini-mills, Mysteel Global noted.
As of October 14, the price of US-sourced HMS 1&2 80:20 scrap came in at $320/t CFR Taiwan, higher by $10/t from the previous week, while the price of Japan-origin H2 scrap posted a sharper on-week increase of $15/t to reach $330/t CFR Taiwan, a local market source said.
Besides, rebar sales have performed well recently, giving Taiwan's mini-mills some confidence to raise their list prices accordingly, Mysteel Global was told.
However, market participants in Taiwan fear that the enthusiasm of local end-users for buying may be dampened this week if rebar prices in the Chinese mainland do not resume climbing after their fluctuations over the past week.
As of October 14, the national price of HRB400E 20mm dia rebar, a pointer to China's steel-market sentiment, was assessed by Mysteel at Yuan 3,901/tonne ($548/t) including the 13% VAT. The price had recovered by Yuan 36/t from that on October 11, though it was still Yuan 79/t lower compared with that on October 8, the first working day in Chinese mainland after the National Day holiday.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
https://www.bigmint.co/insights/detail/taiwan-s-feng-hsin-raising-rebar-scrap-prices-by-9-t-589760
Indian domestic rebar prices, particularly in the secondary market, have paused their upward trend this week, Kallanish notes.
This comes as stockists and market participants opt for a wait-and-see approach, closely monitoring developments in China’s steel market.
Rebar prices in the secondary market have dipped marginally, by INR 300-500/tonne ($4-6) on a weekly basis.
12-25mm IS 1786 Fe 500D grade rebar, produced via the induction furnace route, is now priced at INR 46,000-46,200/t ($547-550) ex-Raipur, Kallanish assesses.
A Raipur-based rebar manufacturer remarks: "After three weeks of rising prices, we have seen a slight correction. Although demand from the construction sector has improved compared to last month, factors like the festive season, liquidity issues, labour shortages in some states, and volatility in China's steel market have made buyers more cautious."
A rebar trader adds: "With sufficient restocking done and domestic DRI and scrap prices falling, buyers are now taking a step back to assess the situation. Domestic iron ore prices continue to rise, but with low export demand from China, the market remains in a holding pattern. Despite this, there is optimism that a significant downturn in prices is unlikely."
In the primary rebar market, prices remain stable on week. 12-32mm IS 1786 Fe 550D grade rebar, produced via the blast furnace route, is assessed at INR 54,000-55,000/t ($645-655) ex-Mumbai.
Supply shortages caused by the closure of RINL’s blast furnace have supported prices. Distributors in the primary market expect values to remain supported in the coming weeks, driven by rising demand and limited supply.
https://www.seaisi.org/details/25578?type=news-rooms
Billet suppliers in Oman and the United Arab Emirates have increased their prices, Kallanish notes.
Over the last seven days, a re-roller in the UAE booked a 150mm rebar-grade billet from an Omani supplier for 10,000 tonnes of immediate-shipment cargo at $515/tonne delivered to his yard. Another UAE re-roller signed two separate 150mm rebar-grade billet contracts with local suppliers, of which a 10,000t lot was concluded at $515/t delivered and a 5,000t package at $520/t. The same UAE billet suppliers sold to the same buyer two weeks ago for $10/t less for the same volumes.
The largest steel producer in Oman has a full order book and is not taking any new orders for October and November. If it does open up for November, it would attempt to sell 150mm 3sp billets at $525/t ex-works. The producer has a pending shipment of 5,000t to a re-roller in the UAE for the end of October, agreed upon at $500/t delivered to the buyer's yard.
Bahrain's sole producer sealed a 3sp (rebar grade) billet deal last week at around $500/t delivered to the buyer's yard against LC at sight.
The local demand for scrap in the UAE is low as the largest consumer, the fully integrated benchmark mill, has significantly reduced its intake, although India's buying appetite has increased significantly.
This week, delivered scrap transaction prices in the domestic market are at AED 1,175-1,200/t ($320-326) for HMS 1/2 80:20, AED 1,250/t for processed PNS, AED 1,240-1,260/t for HMS sheared, AED 1,300-1,320/t for fabrication. The HMS 50:50 (so called mixed HMS) is at AED 1,100-1,130/t and LMS is at AED 950-1,000/t.
Iron ore futures fall as global supply outlook, China demand weigh
Updates closing prices with details
By Gabrielle Ng
SINGAPORE, Oct 16 (Reuters) -Iron ore futures prices fell on Wednesday, as prospects of firmer global supply and softer Chinese demand overshadowed stronger trade data from the top consumer.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trade 1.88% lower at 782.5 yuan ($109.92) a metric ton.
The benchmark November iron ore SZZFX4 on the Singapore Exchange was 1.09% lower at $104.8 a ton, as of 0705 GMT.
Brazilian miner Vale VALE3.SA reported on Tuesday a 5.5% increase in its third-quarter iron ore production compared to a year earlier, reaching the highest level in almost six years.
"Expectations are that major exporters will indicate recent supply disruptions are past them and the outlook for further gains is strong," ANZ analysts said in a note.
Vale is one of the world's top iron ore suppliers and its readings came ahead of production reports this week from other major exporters, including BHP and Rio Tinto.
Meanwhile, China's iron ore imports in September rose 2.7% from August and 2.9% from the year before, as bookings were encouraged by lower prices and hopes for improved demand during the peak construction season.
Steel exports jumped 25.93% to 10.15 million tons, the highest for a single month since July 2016.
The climb in exports was mainly driven by better gross profit in the export market than the domestic one, the China Iron and Steel Association said.
Beijing on Tuesday announced it will hold a press conference on Thursday to discuss promoting the "steady and healthy" development of the property sector, rekindling hopes of further policy easing to underpin a broad economic revival.
Other steelmaking ingredients on the DCE were weaker, with coking coal DJMcv1 and coke DCJcv1 down 3.54% and 2.89%, respectively.
Most benchmarks on the Shanghai Futures Exchange lost ground. Rebar SRBcv1 lost 1.15%, hot-rolled coil SHHCcv1 shed 0.97% and wire rod SWRcv1 dipped 0.24%, while stainless steel SHSScv1 strengthened 0.36%.
($1 = 7.1190 Chinese yuan)
Reporting by Gabrielle Ng; Editing by Subhranshu Sahu and Mrigank Dhaniwala
Rio Tinto lifts Q3 iron ore output, reiterates FY guidance
9:00am on 16 October 2024
The news: Rio Tinto has reiterated its full-year iron ore production guidance, after lifting output in the September quarter. The numbers: Rio’s flagship iron ore division shipped 84.5 million tonnes (Mt) of ore in the three months to 30 September, marking a 1% increase on the same period last year. Rio's bauxite production grew 8% year on year to 15.1 Mt, while titanium dioxide slag output rose 7% to 263 Mt. However, production of aluminium (-2%) and mined copper (-1%) both fell, as did output of iron ore pellets and concentrate (-11%) from Rio's co-owned Iron Ore Company of Canada (IOC).
The miner said it remains on track to meet its full-year target of shipping between 323 Mt and 338 Mt of iron ore from its Pilbara operations in the year to 31 December. The only change to Rio’s guidance was a reduction in IOC production targets, revised down to 9.1 Mt to 9.6 Mt from the previous 9.8 Mt to 11.5 Mt range, following an 11-day site-wide shutdown due to forest fires in July. The context: Rio CEO Jakob Stausholm said the company is on track for first production from its Simandou iron ore project next year, and first lithium from its Roncon starter plant by the end of this year. Meanwhile, a ramp-up of copper production continues at Rio's Oyu Tolgoi underground mine. Stausholm also noted Rio's recent acquisition of Arcadium Lithium, saying the move increased the miner's exposure to a "high-growth, attractive market at the right point in the cycle." What they said: "The decarbonisation of our business remains a priority and is progressing well," Stausholm said. "We took another important step in securing a long-term future for the Boyne Smelter, announcing a partnership with the Queensland Government to support investment in renewable energy projects," he said.
The sources: ASX announcement, RBC Capital Markets research, Citi research
11:40am on 16 October 2024
Rio Tinto shares fall on 'disappointing' Q3 production
More news: Rio Tinto shares lowered on the ASX after the mining giant's September production report failed to impress analysts. Rio shares were down 1.7% to $119.98 by 11:20am AEDT. Citi analysts noted that Rio's "disappointing" production report compounded recent criticism by investors for offering an "unnecessarily full price" to Arcadium shareholders through its acquisition of the lithium producer. They noted that while Rio's core Pilbara operations are performing well, the miner has raised its operating expenditure guidance to the upper half of unchanged guidance given persistent inflation. RBC Capital Markets analyst Kaan Peker described Rio's result as "mixed". While iron ore shipments from the miner's Pilbara operations were better than expected, copper and aluminium marginally missed estimates, he said.
Our government needs to seriously look at the big, long-term picture, says letter writer.
It’s clear that our provincial government does not care for or are controlled by Albertans, instead they are controlled by foreign big money resource industries like the Australian coal mine Northback.
We need to stand up for the preservation of our country's environment, our fresh water supplies and our healthy future and here's why.
Brian Jean’s mindless unthinking letter to the Alberta Energy Regulator encouraging them to reconsider Northback’s re-application to extract coal from Grassy Mountain could potentially poison southern Alberta people.
How does he think he knows better than this past court and government considerations of the the Grassy Mountain proposal, the site of significant mining in the past, has been before regulators for years.
The steel-making coal project was judged not to be in the public's best interest in 2021, after a long environmental review by a joint federal-provincial panel, and its permits were denied by both levels of government.
According to Corb Lund, after having a conversation with Brian Jean as provincial minister of Alberta Energy, Jean actually knows less about the Grassy Mountain coal mine and it’s potential harm to Albertans, than Corb does and as he says he’s just a guitar player.
It’s an excellent example of biting the hand that feeds you. All to enhance the wealth of an Australian billionaire and some Chinese steel workers and a pitiful few Alberta coal miners.
Is it really worth it to sacrifice our precious Alberta mountain environment, poison our fish and other wildlife that depend on the headwaters of the Old Man River for survival and on top of that risk the health of southern Albertans from coal mine effluent toxic elements like selenium pollution of our fresh potable water sources.
You only need to look west across the border to see the damage that Tech Coal mines of the Elk valley have done to the Kootenay waters and the several millions of dollar fine that has been brought against them for the poisoning of water that supplies many Americans, in addition to all the Canadians affected.
And that’s ongoing. Give your head a shake, do you really want to risk ruining the health of Albertans, their children and grandchildren for the benefit of a billionaire Australian?
Or has our government been bought and paid for by that Australian as well and she now controls our government.
Our government needs to seriously look at the big long-term picture and not focus only on a few royalty dollars this mine potentially represents. Time for a rethink.
Darrel Florence,
Cremona
STONAVA, Czech Republic -- Deep underground in northeastern Czech Republic, workers in the region's last-functioning coal mine drill, load and haul the fuel up to the surface.
The CSM mine is part of the Upper Silesian Coal Basin, a region straddling the Czech-Polish border with a 250-year history of mining because of its rich coal deposits and factories that produce steel and energy.
With just the light of a headlamp, workers — their bodies and clothes covered in soot and dust — effortlessly navigate the mines, drilling the deposits underground. Others load cars to take the rocks to the surface, where huge piles of it lie ready to be transported to power plants.
The work comes with a price: A 2021 study of more than 800 European cities by the Barcelona Institute for Global Health puts the regional capital of Ostrava and the nearby towns where the mine is located among the top 10 most polluted European cities.
And when burned for energy, coal contributes to the carbon dioxide emissions warming up the atmosphere, altering weather worldwide and burning up the planet.
Some — but not all — of the workers in the mines wore face masks, providing some protection from the sooty particles that swirled around the air. But the masks, too, were covered in grime.
An energy crunch two years ago — caused by the European Union's ban of Russian coal over the war in Ukraine made the government reverse plans to completely halt mining in the region. Coal-fired power plants producing some 40% of the country’s electricity, about three time more than the EU’s average.
The Czech state-owned OKD company extended its mining activities in the CSM mine. Some 3,500 employees will remain excavating the mines of their energy-rich coal at least until early 2026.
The Czech government aims to phase out coal in energy production by 2033 and increase the country’s reliance on nuclear power and renewable sources.
New Delhi: India's coal import rose 11.4 per cent to 121.1 million tonnes (MT) in the April-August period of the ongoing fiscal year. The country had imported 108.7 MT coal in the corresponding period of the previous year.
According to data compiled by B2B e-commerce platform mjunction, "During April-August 2024, total coal and coke imports stood at 121.18 MT, around 11.4 per cent higher than 108.74 MT imported during the same period last year."
However, coal import in August rose 5.4 per cent to 20.70 MT over 19.63 MT a year earlier.
Of he total import in August 2024, non-coking coal import was at 13.04 MT, against 11.89 MT, while coking coal import was at 4.53 MT, against 4.62 MT a year ago.During April-August, non-coking coal import was at 78.68 MT, higher than 68.58 MT imported during the same period last financial year. Coking coal import was at 24.79 MT, almost flat against 24.85 MT recorded in the year-ago period.
"Surplus availability of domestic coal in the system along with dwindling coal demand led to a decline in import volumes during the month under review. Coal import is expected to remain subdued till energy demand rises during the festive season," mjunction MD & CEO Vinaya Varma said.
Coal and Mines Minister G Kishan Reddy had earlier said India should increase domestic production of the fossil fuel and reduce coal imports.
India's coal import rose 7.7 per cent to 268.24 MT in FY24.
The country's coal production rose 6.48 per cent to 384.08 million tonnes in the first five months of the ongoing fiscal year.
The production was 360.71 MT in April-August FY24.
Origin Energy, Australia’s biggest utility, says that renewable energy projects and new transmission lines are not being built fast enough to replace the country’s “ageing and unreliable” coal generators.
“Renewables and transmission projects are not coming online fast enough, principally through delays in the approval and construction of major projects,” the company’s chairman Scott Perkins told shareholders at the annual general meeting on Wednesday.
It appears to be a particularly ironic, if not galling comment, given that Origin itself failed to build any new wind or solar in the 2.5 years between announcing a planned “early closure” of the country’s biggest coal generator at Eraring, and securing a $450 million underwriting deal to put that closure back by at least another two years.
Having secured the government support to keep the coal plant open – ostensibly to address any supply shortfalls, but more likely to spare government blushes over rising wholesale prices in the lead up to the next state election – Origin has finally hit the green button on a series of green energy investments.
This includes projects such as the 1.5 GW Yanco Delta wind farm, the Ruby Hills and Northern Tablelands wind projects and the Salisbury solar development, along with several big batteries at Eraring and Mortlake, and an off take agreement for the Supernode battery in Queensland.
“Origin is playing its part with a notable step change in our investments in renewables and storage project developments over the last year,” Perkins noted.
The ambitions of Origin – to boost its renewables and storage capacity to 4 to 5 gigawatts by 2030 – are also notable because they represent just one third of the additions planned over a 10-year period by Canada’s Brookfield, whose agreed and joint $18 billion bid was voted down last year by institutions heavily committed to fossil fuel investments.
CEO Frank Calabria said the 2.8 GW Eraring coal plant, which will now stay open until at least August 2027, and possibly as late as 2029, had risen to its highest level in five years, “supporting government policy to increase generation and help place downward pressure on prices for customers.”
He said the company’s fleet of gas peaking power stations also increased output, “helping to firm the growing amount of variable renewable energy supply in the grid.”
Origin is also heavily invested in LNG, and says it will play a key role in the energy transition, despite recent reports that suggest LNG is, in fact, more polluting than coal fired generation.
“We continue to have really strong medium- to long-term conviction that LNG will play an important role in the energy transition,” Perkins said.
(Bloomberg) -- Zambia approved the construction of a third coal-fired power plant as it battles a power crisis caused by a record drought, which has stricken its hydro-electricity generation.
The 300-megawatt thermal power project was approved by the Zambia Environmental Management Agency last month, the regulator said in a statement on Wednesday.
Located about 330 kilometers (207 miles) south of Lusaka, the capital, the Mulungwa Power Generation Ltd. project will be a joint venture between Africa Power Coal and China’s Jiangsu Etern Company Ltd.
Zambia is fighting the effects of an El Niño-induced drought that has drastically reduced hydro-electricity generation, which supplies 85% of the country’s power, causing daily blackouts lasting 21 hours or more.
In July, Zambia approved the construction of only the country’s second coal-fired power plant. In August, Mulungwa Power separately said it planned to build its plant.
Zambia is also importing electricity from South Africa’s Eskom Holdings SOC Ltd. and neighboring Mozambique to cushion the power deficit.
Iron ore futures climbed on Monday as renewed prospects of further fiscal stimulus from China following a key government briefing lifted sentiment in the top consumer's steel market.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) TIO1! ended daytime trade 1.97% higher at 800.5 yuan ($113.08) a metric ton, after jumping more than 3% earlier in the session.
The benchmark November iron ore (SZZFX4) on the Singapore Exchange was 1.4% higher at $107.7 a ton, as of 0715 GMT.
Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar RBF1! and hot-rolled coil EHR1! strengthened about 1.36%, wire rod (SWRcv1) added 0.96% and stainless steel HRC1! ticked 0.32% higher.
China on Saturday pledged a new package of incremental fiscal policies, which lifted sentiment across various commodities markets, including steel, said Chinese consultancy Mysteel.
With steel product prices propped up, the number of integrated steel mills in China finally earning profits on steel sales rapidly increased, leading the average operational rate among 87 steelmakers to climb by 1.85 percentage points during Oct. 4-11, Mysteel added.
However, signs of deflation in the country and a lack of clarity on its stimulus measures clouded its demand outlook.
China's consumer inflation unexpectedly eased in September, while producer price deflation deepened, heightening pressure on Beijing to roll out more stimulus measures quickly to revive the flagging demand and shaky economic activity.
Beijing on Saturday said there will be more "counter-cyclical measures" this year, but left investors guessing on the size and timing of the stimulus being prepared.
"Absent of stimulus, the deflation threat is clearly growing, but if we have a strong enough fiscal stimulus push, it should be sufficient to ensure this weakness is clearly short-lived", said ING analysts.
"The signalling remains positive and we expect more details in the coming weeks and months."
Other steelmaking ingredients on the DCE were stronger, with coking coal NYMEX:ACT1! and coke (DCJcv1) up 1.83% and 2.35%, respectively.
($1 = 7.0792 Chinese yuan)
MERAFE Resources said third quarter ferrochrome production totalled 76,000 in attributable tons resulting in an increase of two percent in production for the year-to-date.
Merafe, which has a 20.5% stake in the Merafe-Glencore Joint Venture, said production in the stainless steel feed ingredient totalled 230,225 in attributable tons for the nine months ended September.
“This increase in production is primarily attributed to all operating smelters being in production throughout the winter months,” Merafe said in a statement to the Johannesburg Stock Exchange.
Shares in the company increased 0.68% in mid-afternoon trade in Johannesburg.
The announcement shows that Glencore opened up the taps on its ferrochrome production after reporting attributable ferrochrome production of 599,000 tons – some 118,000 tons (16%) below the first half of its 2023 finanical year.
This was because its the Rustenburg smelter “remains idled in response to weak market conditions and pending an improved price/cost environment,” the group said at the time
In August, Merafe reported a profit of R720m for the six months ended June, down from R1.05bn a year ago, said BusinessLive. Ebitda dropped 27% to R1.13bn and headline earnings per share fell to 28.2c from 42c a year ago. Revenue was 0.4% lower at R4.74bn, the newspaper said.
The group said at the time of the publication of the results that chrome ore prices were , high, but ferrochrome prices remained strained and cost increases continued to put pressure on margins. Ferrochrome production declined 17% to 154,000 tons at the halfway stage of the financial year.
https://www.miningmx.com/trending/58648-merafe-ferrochrome-output-up-2-at-nine-month-stage/
