A study by research group Berkeley Research Group shows that lifecycle greenhouse gas emissions from US liquefied natural gas (LNG) are significantly lower than coal and pipeline gas resources being used by nations in Asia.

The four-year study, commissioned by US industry body LNG Allies, has been released against the backdrop of a halt to LNG export approvals announced by the US Government in late January.

The research tracks lifecycle emissions from US LNG from upstream production, through liquefication, shipping and then use in power generation in China, India, Japan, South Korea and Taiwan.

It compares these emissions against those of coal and pipeline gas use in these countries.

It found that US LNG greenhouse gas emissions are 53 per cent lower than coal and on average 63 per cent lower than pipeline gas from Turkmenistan and Russia.

The study estimates that use of US LNG in place of coal in Asia in 2022 alone resulted in as much as 130 million tonnes of greenhouse gas emissions being avoided.

"This is a very comprehensive report – and it shows why approvals for US LNG exports must be resumed quickly," Asia Natural Gas and Energy Association CEO Paul Everingham said.

"The report illustrates the importance of US LNG to Asia, as a fuel that supports emerging nations to access energy needed for economic growth while also reducing emissions from power generation.

"Large parts of Asia, particularly South Asia and Southeast Asia, remain heavily reliant on high-emitting coal for electricity.

"This report clearly demonstrates that generation from US LNG in Asia has a far lower emissions profile than coal - especially so for combustion, where the emissions intensity of coal was nearly three times higher.

"The study also found that the upstream emissions profile of US LNG is significantly smaller than that of pipeline gas from Turkmenistan and Russia currently being used in Asia.

"Emerging nations in Asia must make decisions about what their energy systems will look like decades in advance.

"The current approvals pause has resulted in uncertainty about future availability of US LNG exports and increased the likelihood that coal use in Asia will become institutionalised in the long term.

"By resuming approvals, the US Government can signal to partners in Asia that the US intends to remain a reliable LNG supplier, enabling nations to pair gas with renewable energy as they plan for low-carbon futures."

https://www.energynewsbulletin.net/global/news/4198668/study-us-lng-cleaner-asia-coal

Thailand’s Energy Ministry is working on restructuring the country’s oil price system so that local retail prices could be set by the government without referring to global prices, Deputy Prime Minister and Energy Minister Pirapan Salirathavibhaga said on Sunday.

He said it would take time to change the oil price structure that has been in use for 51 years.

Pirapan, who is the leader of the government’s coalition partner United Thai Nation Party, said there now are two major issues affecting energy prices – the structural issue and a system that no one has tried to improve to benefit the people.

Pirapan said retail diesel prices are increasing because of the rising excise tax, which is decided by the Oil Fuel Fund committee, not by the Energy Ministry.

He said he is drafting a new law to change the price structural system so that the Energy Ministry or the government would be the ones to determine retail prices instead of having the prices influenced by global prices.

Currently, oil distributors set their retail prices based on Singapore’s reference prices and their costs.

“In the final step, the government will have the power to set the retail prices,” Pirapan said.

“But we have to gradually adjust the system that has been in use for 51 years without changes.

“At least I have started changing it. And this was the first time in 51 years that oil distributors must inform the National Energy Policy Committee of their costs.”

https://business.inquirer.net/455746/thailands-energy-ministry-working-on-new-oil-price-structure

The charter contracts with PTLCL were signed at the same time that MISC tanker arm AET inked contracts with Dalian Shipbuilding Co Ltd (DSIC) to build the ammonia dual-fuelled Aframax tankers.

The contracts come 14 months after AET and PTLCL signed a Memorandum of Understanding (MoU).

“Today's signing of the Time Charter Party Contracts and the Shipbuilding Contracts is a clear testament of turning ambition into action,” said Captain Rajalingam Subramaniam, President and Group CEO of MISC.

The company did not disclose the delivery date for the ammonia dual-fuel newbuildings ordered at the yard which is part of the CSSC group.

Both the shipowner and charterer are part of Malaysian national oil and gas group Petronas.

Zahid Osman, President & CEO of AET said, “With today’s signings of the Shipbuilding Contracts with DSIC and the Time Charter Party Contracts with PTLCL for the world’s first two ammonia dual-fuel Aframaxes, we take concrete actions to deliver on our commitment as industry leaders to progress the decarbonisation of the shipping sector.”

AET has been a pioneer and in owning and operating LNG dual-fuel large tankers and is now taking on a similar role with ammonia as a marine fuel.

MISC said it would look to further collaboration with industry players for ammonia bunkering as well as Akademi Laut Malaysia (ALAM) and industry partners for the training of seafarers.

As developments push ahead with ammonia as a marine fuel safety remains a primary concern given the high toxicity of the fuel.

AET and ALAM inked an agreement with engine manufacturer WinGD on training for ammonia fuelled engines in June 2023. WinGD expects to deliver its first ammonia dual-fuel engines in 2025.

https://www.seatrade-maritime.com/tankers/misc-orders-first-ammonia-dual-fuel-aframax-tankers-dsic

Vintage Energy’s (ASX: VEN) plans to expand its Cooper Basin activities have accelerated with the signing of a farmout agreement with Sabre Energy for a 50% interest in the PEL 679 exploration licence in South Australia’s Cooper Basin.

Vintage, which currently has gas production from the Odin and Vali fields in the area, will retain the remaining 50% interest in the licence.

Sabre will fund 100% of a 150 square kilometre 3D seismic survey and pay Vintage $200,000 as reimbursement of its share of costs incurred to the time the permit is granted to obtain its interest.

Good oil neighbourhood

Comprising a total area of 393 sq km, PELA 679 is located on the western flank of the Cooper Basin, south-west of the Worrior field that has produced in excess of 4.5 million barrels of oil.

Vintage has identified three Jurassic four-way closures and one Permian Patchawarra formation stratigraphic play from the sparse 2D seismic survey it has mapped to date.

This morphology is considered analogous to Beach Energy’s (ASX: BPT) Western Flank oil fields.

“Sabre has an experienced and proven team [and] we look forward to working with them,” Vintage managing director Neil Gibbins said.

“PELA 679 is highly prospective for oil in particular and we anticipate their contribution in addressing the potential of PEL 679 will be both collaborative and valuable.”

Sabre Energy chair Allan Bougoure said the opportunity in PELA 679 acreage provides an exciting entry into oil exploration for Sabre to build the company’s portfolio.

Attractive area

Sabre’s managing director Regie Estabillo said the PELA 679 permit area is highly attractive.

“This opportunity represents near-field oil exploration allowing for short turnaround times to commercialisation.”

“PELA 679 lies within the proven oil fairway of the Cooper/Eromanga Basin as defined by DEM and is analogous to the prolific Western Flank oil fields.”

“This is an exciting addition to Sabre’s portfolio.”

Vintage was awarded the licence in the 2019 SA gazettal round.

The company is currently in negotiations with native title holders the Dieri Aboriginal Corporation RNTBC.

https://smallcaps.com.au/vintage-energy-sabre-join-forces-cooper-basin-exploration-license/

WTI crude oil is still trending higher as it continues to hang around the rising channel support on its 4-hour time frame. This lines up with the 61.8% Fibonacci retracement level at $81.50 per barrel.

A bounce could take the commodity price back up to the swing high at $87.84 per barrel or the channel top closer to $90 per barrel. The 100 SMA is above the 200 SMA to confirm that the path of least resistance is to the upside or that support is more likely to hold than to break.

However, price is already dipping below the 200 SMA dynamic inflection point as an early indicator of selling pressure. A break below the channel bottom might confirm that a reversal from the uptrend is due.

Stochastic is also on the move down to suggest that selling pressure is in play, but the oscillator is dipping close to the oversold region to signal exhaustion among bears soon. Turning higher would mean that buyers are taking over.

RSI appears to be on the move up but is also turning lower to indicate a return in bearish momentum.

WTI crude oil drew some support from a fresh round of geopolitical conflict late last week, but the gains were short-lived as demand conditions might turn lower if a full-blown war takes place.

Also, a stronger dollar appears to be weighing on risk sentiment overall, after FOMC officials have dropped hints about delaying their earlier easing plans. Upcoming US data points in the next few days could influence Fed policy expectations, which might then impact dollar and commodity price action.

Inventory figures from the API and EIA are also worth watching, as another round of larger inventory builds might mean fresh downside for the commodity. On the other hand, surprise reductions could mean a continuation of the crude oil rally.

https://fxdailyreport.com/wti-crude-oil-price-analysis-for-april-22-2024/

Wildfires erupted across Canada’s main oil producing province of Alberta and an evacuation order was issued as the region braces for a repeat of last year’s unprecedented season.

Members of the Indigenous First Nations community of Cold Lake Number 149, northeast of Edmonton on the Saskatchewan border, were told to evacuate, according to a notice issued at 4:49 pm local time. Other regions west of the Cold Lake blaze were put on standby, with three wildfires in the province listed as out of control as of late Monday.

More than 65 per cent of Canada was abnormally parched or in drought at the end of March, leading the nation to brace for another smoke-filled summer. Unusually hot, dry weather contributed to the country’s worst-ever wildfire season last year, darkening skies over New York and other U.S. cities and prompting Alberta oil and gas drillers to shut as much as 300,000 barrels of oil equivalent a day of production.

An evacuation alert for residents of Saprae Creek, about 25 kilometers (16 miles) southeast of the oil sands capital of Fort McMurray, was canceled. Massive forest fires burned down swathes of Fort McMurray eight years ago, forcing thousands of residents to evacuate and temporarily shutting more than 1 million barrels a day of oil production.

https://www.bnnbloomberg.ca/wildfires-in-canada-s-oil-sands-region-prompts-evacuation-orders-1.2061856

The Mopane field in offshore Namibia could contain some 10 billion barrels of oil.

Portugal's oil company Galp Energia shares skyrocketed on Monday after the company announced that the first phase of its exploration in the Mopane field in offshore Namibia could contain some 10 billion barrels of oil.

This follows on Galp operations at the Mopane-1X well in January and the Mopane-2X well in March, with, “significant light oil columns discovered in high-quality reservoir sands.”

The so called Mopane field, at the Orange Basin, also includes Shell and Total with Galp already extracting 122,000 bpd in 2023.

The Galp discovery at Mopane field has been compared to Guyana’s Stabroek block, an 6.6 million acre (26,800 square kilometers) area owned by US Exxon Mobil Corp, Hess Corp and China's CNOOC.

Exxon is main operator of the block with a 45% stake while Hess and CNOOC own 30% and 25%, respectively

Galp plans to sell development of the project, most likely to be a major international energy company with a strong track record in project management. Galp has hired Bank of America to run the sale process, with proceeds likely to be in the billions of dollars.

The Mopane discovery--one the largest made in the nascent basin following successful exploration campaigns by rivals TotalEnergies and Shell--could help kick-start the southern African country, a former German colony, oil industry. In recent years, Namibia has attracted huge interest from international oil companies seeking to grow their production.

https://en.mercopress.com/2024/04/23/namibia-en-route-to-becoming-another-guyana-oil-discovery-success-story

In 2023, 89.1 billion cubic feet per day (Bcf/d) of natural gas was consumed in the United States, the most on record. Since 2018, U.S. natural gas consumption has increased by an average of 4% annually.

Monthly natural gas consumption set new records every month from March 2023 through November 2023. U.S. natural gas consumption has risen in the electric power sector as coal-fired electric-generating capacity has declined.

Last year, the largest monthly increases in natural gas consumed by the electric power sector were in July and August, despite cooler-than-normal temperatures than during those months in 2022. Natural gas consumption in the electric power sector, which typically increases in July and August to meet air-conditioning demand, increased by 6% in July and August 2023 compared with those months in 2022, setting monthly records of 47.5 Bcf/d in July and 47.2 Bcf/d in August.

U.S. coal production units are retiring as the nation’s coal fleet ages and coal-fired generators are replaced by generators using natural gas and renewables. Although natural gas-fired power generation increased by 6% in July and August of 2023 compared with a year earlier, overall electricity growth year-on-year was flat in July at 412 billion kilowatthours (kWh) and rose just 3% in August to 410 billion kWh.

Data source: U.S. Energy Information Administration, U.S. Energy Information Administration, Natural Gas Monthly

The most natural gas consumed in the United States in any month of 2023 occurred in January at 106.6 Bcf/d, but consumption was 8% less than in January 2022. Warmer-than-average temperatures reduced natural gas consumption in the residential and commercial sectors to meet space-heating demand.

Data source: U.S. Energy Information Administration,

Note: Other includes natural gas that was consumed as transportation fuel. U.S. Energy Information Administration, Natural Gas Monthly Other includes natural gas that was consumed as transportation fuel.

In 2023, natural gas consumption fell 10% in the residential sector to 12.3 Bcf/d compared with 2022 and 6%, or 0.5 Bcf/d, in the commercial sector. The amount of natural gas consumed in the industrial sector remained unchanged, averaging 23.4 Bcf/d. The largest increase in natural gas consumption by a U.S. economic sector in 2023 came in the electric power sector, which increased 7% (2.2 Bcf/d) from 33.2 Bcf/d in 2022 to a record of 35.4 Bcf/d.

Principal contributor: Andrew Iraola

https://www.eia.gov/todayinenergy/detail.php?id=61923

MOSCOW, April 23 (Reuters) - Kremlin-controlled energy giant Gazprom said on Tuesday work is underway on further links between its east and western pipeline networks after it launched construction of an 800-km pipeline in Russia's far east last month.

The Belogorsk-Khabarovsk pipeline is designed to connect the China-bound Power of Siberia with the existing Sakhalin-Khabarovsk-Vladivostok link.

"Design and survey work is underway on other (connectors)," Gazprom said, without elaborating.

Russia has long sought to connect its vast western gas grid, which serves Europe, with its still-developing eastern pipeline network. An ability to redirect gas flows is seen as key to bolstering its negotiating position with buyers.

That has become more pressing due to the political fallout from the conflict in Ukraine, during which flows of Russian gas to Europe have dropped sharply. That has led to Russia looking to forge closer ties with Asia, especially with the world's No.2 energy consumer China.

Russia is seeking to boost pipeline gas exports to China through the construction of the Power of Siberia 2 pipeline, which is designed to carry 50 billion cubic metres (bcm) of natural gas a year from the Yamal region in northern Russia to China via Mongolia.

That is almost as much as the now idle Nord Stream 1 pipeline to Europe under the Baltic Sea that was damaged by blasts in 2022.

However Moscow and Beijing have not yet reached an agreement on key terms, especially on the price of gas.

Russia currently exports gas to China through the Power of Siberia 1 pipeline, which began operating in 2019. Annual gas exports via the pipeline are scheduled to reach 38 bcm by 2025. (Reporting by Vladimir Soldatkin; Editing by Jan Harvey)

https://ca.marketscreener.com/quote/stock/GAZPROM-6491735/news/Gazprom-says-more-work-underway-to-link-Russia-s-eastern-western-gas-grids-46504917/

Saudi Arabian Oil Co. (Aramco) is in talks for the potential acquisition of a 10 percent stake in China’s Hengli Petrochemical Co., Ltd. in a bid to grow its downstream segment.

Hengli Petrochemical, a subsidiary of Hengli Group, owns and operates a 400,000-barrel-per-day refinery and integrated chemicals complex in Liaoning Province, as well as several plants and production facilities in the Jiangsu and Guangdong Provinces, Aramco said in a news release Monday.

The two companies signed a memorandum of understanding (MoU) on the proposed transaction, which is still subject to due diligence and required regulatory clearances.

The move aligns with Aramco’s strategy to “expand its downstream presence in key high-value markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply agreements,” the company noted.

“This MoU supports our efforts to grow our global downstream footprint,” Aramco Downstream President Mohammed Al Qahtani said. “We continue to explore new opportunities in important markets, as we seek to progress in our liquids-to-chemicals strategy”.

”We look forward to forging new partnerships and are excited by the prospect of expanding our presence in the important Chinese market,” he added.

Hengli Petrochemical targets to become one of the largest purified terephthalic acid (PTTA) production bases, according to the company’s website.

Earlier in the month, Aramco awarded engineering, procurement, and construction (EPC) contracts amounting to $7.7 billion for the development of the Fadhili Gas Plant, in the Eastern Province of Saudi Arabia.

The expansion project is expected to increase the capacity of the Fadhili Gas Plant from 2.5 to up to 4 billion standard cubic feet per day (bsfcd). This adds up to an increase of 1.5 billion standard cubic feet per day, according to an earlier statement. The additional 1.5 bscfd of processing capacity will contribute to the company’s strategy to raise gas production by more than 60 percent by 2030, compared to 2021 levels, Aramco said.

The Fadhili Gas Plant expansion is expected to be completed by November 2027. It is also expected to add an additional 2,300 metric tons per day to sulphur production. Aramco awarded EPC contracts for the Fadhili Gas Plant increment project to SAMSUNG Engineering Company, GS Engineering & Construction Corporation, and Nesma & Partners.

The state-owned oil major reported net income of $121.3 billion for 2023, its second highest ever annual net earnings after posting $161.1 billion in 2022. Aramco produced 12.3 million barrels of oil equivalent per day (MMboepd) in 2023, 10.7 million barrels per day of which were liquids.

To contact the author, email rocky.teodoro@rigzone.com

https://www.rigzone.com/news/aramco_eyes_10_percent_stake_in_hengli_petrochemical-23-apr-2024-176506-article/

HOUSTON (Reuters) - U.S. oil and gas deals hit a record $51 billion in the first quarter, a continuation of last year's fierce merger pace centered in the top U.S. shale field, data provider Enverus said on Tuesday.

Energy companies have rushed to expand oil and gas drilling inventories, especially in the Permian Basin of West Texas and New Mexico, where producer break-even costs are about $64 a barrel. Oil prices averaged about $77 a barrel last quarter and this week traded near $83 per barrel.

Most of the high-quality U.S. drilling prospects are in the Permian "so it is unsurprising the prolific basin was yet again the primary driver for M&A within oil and gas," said Andrew Dittmar, Enverus Intelligence Research's principal analyst.

The biggest proposed acquisition last quarter was Diamondback Energy's $26 billion bid for closely held Endeavor Energy Partners, a merger that brings together two Permian-centric drillers.

Apache Corp parent APA's $4.5 billion deal for Permian oil rival Callon Petroleum, and Chesapeake Energy's April $7.4 billion deal for Southwestern Energy rounded out the period's most valuable deals.

The Chesapeake acquisition and last year's blockbuster deals by Exxon Mobil and Chevron remain stalled by antitrust reviews in part because they concentrate holdings in the Permian or Haynesville shale fields, said Dittmar.

"The most likely outcome is all these deals get approved, but federal regulatory oversight may pose a headwind to additional consolidation within a single play," he added.

The number of deals rose to 27 last quarter, compared with 20 in the same period a year ago, and 60% of first quarter transactions by value were in the Permian, Enversus calculates.

That high pace is unlikely to persist, Dittmar said, with strong oil prices allowing more companies to justify holding onto non-core drilling assets rather than discard them as they once did.

"Inventory scarcity is the top theme among E&Ps (exploration and production companies)," he said.

https://www.investing.com/news/commodities-news/us-oil-and-gas-ma-hits-quarterly-record-after-blockbuster-2023-3391118

KeyBanc's Tim Rezvan raised their price target on Murphy Oil (NYSE: MUR) by 8% from $50 to $54 on 2024/04/22. The analyst maintained their Strong Buy rating on the stock.

In a Q1 2024 preview note on names in their Oil & Gas (Exploration & Production) portfolio, Rezvan explained that the price target adjustment for Murphy Oil was based on several factors. The analyst anticipates rising oil prices driven by increasing geopolitical risk, a flattening of U.S. production, and declining inventories of refined products in the United States.

Regarding natural gas, Rezvan expects prices to decline due to strong production, bloated inventories, and debottlenecking that will occur in the second half of 2024.

In addition to the update on Murphy Oil, Rezvan also made adjustments to other companies in their portfolio. The price target for Diamondback Energy Inc was raised by 7.1% from $210 to $225, while Kimbell Royalty Partners LP saw a 5% increase from $20 to $21. Vital Energy Inc received a 14.5% boost from $55 to $63, Talos Energy Inc's target was raised by 5% from $20 to $21, and Sitio Royalties Corp saw a 7.4% increase from $27 to $29. In each case, the analyst maintained their Strong Buy rating.

Currently, 71.4% of top-rated analysts view Murphy Oil as a Strong Buy or Buy, while 28.6% consider it a Hold. No analysts recommend or strongly recommend selling the stock.

According to the consensus forecast among analysts, Murphy Oil is expected to deliver earnings per share (EPS) of $6.71 in the upcoming year. If these predictions hold true, the company's next yearly EPS will experience a 57.4% increase year-over-year.

Since Murphy Oil's last quarterly report on December 31, 2023, the stock price has risen by 7.9%. On a year-over-year basis, the stock has increased by 22.7%. During this period, Murphy Oil has outperformed the S&P 500, which has grown by 21.1%.

KeyBanc analyst Tim Rezvan stands in the top 19% of Wall Street analysts, according to WallStreetZen. With an average return of 5.2% and a win rate of 50.7%, Rezvan specializes in the Utilities and Energy sectors.

Murphy Oil Corporation, headquartered in Houston, TX, is engaged in the production of crude oil, natural gas, and natural gas liquids. The company operates primarily in the U.S., Canada, and targeted areas globally, with a focus on fields in the Gulf of Mexico and the Eagle Ford Shale area of South Texas. Founded in 1950, Murphy Oil has a longstanding presence in the energy industry.

https://www.wallstreetzen.com/news/keybanc-analyst-raises-murphy-oil-price-target-by-8-maintains-strong-buy-rating

Crude oil prices have recouped some of the losses posted on Monday as fears of an escalation between Israel and Iran dissipated.

Brent crude was trading above $87 per barrel and West Texas Intermediate remained above $82 per barrel as the news about fresh U.S. and UK sanctions on Iran failed to impress traders.

According to a Bloomberg report, the U.S. sanctions, which are due to be passed by Congress this week, may end up not being enforced at all. The reason? President Biden would be wary of doing anything that could further push retail fuel prices higher with elections just months away.

“Oil traders are nonchalant because they know Biden will certainly sign whatever waivers are necessary to keep Iranian oil flowing into the market just as he is keeping Russian barrels flowing into the market,” an analyst with investment advisors Capital Alpha Partners told Bloomberg.

According to another firm, energy consultancy ClearView Energy Partners, the enforcement of the new sanctions could add $8.40 per barrel to crude oil prices. That’s not something a president running for re-election and already losing popularity fast wants to see.

On the other hand, bullish factors for oil in the form of geopolitical risk in the Middle East appear to have largely fizzled out, at least for the time being.

"The unwinding of geo-political risk premium has dented crude oil prices recently as supply was not disrupted meaningfully," the founder of India research firm SS WealthStreet told Reuters.

"While there are no indications of an imminent full-scale war between the countries involved, any escalation in tensions could quickly reverse the current trend," Sugandha Sachdeva added.

"The geopolitical backdrop is still very fraught with so many risks at the moment, so clearly we're going to see a lot of volatility until there's a lot more clarity around it," ANZ analysts said in a note, commenting on the latest developments in the world of geopolitics.

https://oilprice.com/Latest-Energy-News/World-News/Oil-Prices-Stabilize-as-Geopolitical-Risk-Cools.html

Schlumberger (NYSE:SLB) First Quarter 2024 Results

Key Financial Results

- Revenue: US$8.71b (up 13% from 1Q 2023).

- Net income: US$1.07b (up 14% from 1Q 2023).

- Profit margin: 12% (in line with 1Q 2023).

- EPS: US$0.75 (up from US$0.66 in 1Q 2023).

Schlumberger Meets Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations.

Looking ahead, revenue is forecast to grow 8.5% p.a. on average during the next 3 years, compared to a 7.8% growth forecast for the Energy Services industry in the US.

Performance of the American Energy Services industry.

The company's shares are down 3.7% from a week ago.

https://sg.finance.yahoo.com/news/schlumberger-first-quarter-2024-earnings-105024281.html

Some shippers on Canada's Trans Mountain expansion project are raising concerns that the long-delayed oil pipeline will not be fully in service by its projected start date of May 1, according to a letter to the Canada Energy Regulator on Tuesday.

Deliveries for all shippers will be subject to the expanded system's tolls and tariffs from that date, Trans Mountain Corp told Reuters in an email, adding that line fill on the expanded pipeline will be completed in early May.

But in a letter to the Canada Energy Regulator (CER), shipper Suncor Energy SU said reasonable questions remain over whether Trans Mountain will be able to deliver contracted crude volumes from May 1 given some sections of the pipeline are still awaiting leave to open from regulators.

As a result shippers are concerned about the obligation to pay tolls from the start of next month, said the letter filed by Suncor's legal counsel on behalf of other shippers including BP BP. and Marathon Petroleum MPC.

"While it is possible that Trans Mountain might be able to complete the physical construction of Expansion facilities by May 1, 2024, there appears to be a real likelihood that those facilities will not be capable of providing Firm Service at that time," said the letter, which appeared on the CER website.

The C$30.9 billion ($22.62 billion) project, bought by the Canadian government in 2018 to ensure it went ahead, will carry an extra 600,000 barrels per day (bpd) of oil from Alberta to Canada's Pacific coast.

It has struggled with years of regulatory delays and cost overruns and Canadian oil producers are keenly anticipating its start-up, which will open up access to export markets on the U.S. West Coast and Asia and should narrow the price discount on Canadian heavy crude versus U.S. benchmark oil.

However a number of contracted shippers are locked in dispute with Trans Mountain over tolls on the expanded system, citing concerns about significant cost increases.

Trans Mountain is facing a number of complaints from its shippers, who have contracted 80% of the expanded pipeline's volume.

In a separate filing on April 12, Canadian Natural Resources Ltd CNQ, supported by Suncor and Imperial Oil IMO, wrote to the CER arguing that the vapor pressure limit on the expanded pipeline is too high and would hurt the sales price of the crude.

In its email on Tuesday, Trans Mountain also said the first ship carrying crude from the pipeline expansion is expected to load in the second half of May.

Westridge Marine Terminal in the Port of Vancouver, where the pipeline terminates, will have three berths able to load vessels with oil, Trans Mountain said. The dock has a maximum capacity of 630,000 bpd, or 34 partially laden Aframax-sized tankers a month.

"On average, we anticipate one empty tanker in, one partially laden tanker out every day with variability throughout the year," a Trans Mountain spokesperson said.

($1 = 1.3660 Canadian dollars)

https://www.tradingview.com/news/reuters.com,2024:newsml_L2N3GW3EZ:0-trans-mountain-oil-shippers-raise-concerns-about-risk-of-delay-to-full-service/

Japan’s Mitsui & Co said on Tuesday nothing has been decided on a liquefied natural gas (LNG) project in the UAE, after the Nikkei reported it was teaming up with Abu Dhabi National Oil Company (ADNOC) on it.

The Nikkei reported ADNOC would have a stake of around 60 per cent and Mitsui 10 per cent of the $7bn LNG project at Ruwais, adding Mitsui‘s investment is estimated to be several tens of billions of yen.

Other oil majors Shell, BP and Total Energies are also expected to invest, the report said.

A Mitsui spokesperson said nothing had yet been decided when asked about the report. ADNOC, BP and Shell declined to comment. TotalEnergies did not immediately respond to a request for comment.

ADNOC’s focus on LNG

ADNOC has big ambitions in gas and LNG, which along with renewable energy and petrochemicals, it sees as pillars for its future growth.

Demand for natural gas soared as Europe scrambled to secure supplies to replace Russian gas in the wake of Moscow’s invasion of Ukraine last year.

The planned Ruwais LNG project, to the west of Abu Dhabi city, will help ADNOC reach its goal of doubling its LNG production capacity. It currently has liquefaction capacity of about 6 million metric tons per annum at its Das Island facility.

The Ruwais plant will have electric-powered processing facilities and run on renewable and nuclear grid power, making it one of the lowest carbon intensity LNG facilities globally, ADNOC has said. It will have two 4.8 mtpa LNG liquefaction trains when completed.

ADNOC said in March it had issued a limited notice to proceed for early engineering, procurement and construction on the Ruwais LNG project to a consortium led by Technip Energies and including JGC Corporation and National Petroleum Construction Company.

A final investment decision is expected this year.

ADNOC has since last year signed several LNG supply deals, including two for LNG from the Ruwais project, expected to begin commercial operations in 2028.

ADNOC has eyed acquisitions of foreign companies in part to help boost its gas portfolio.

https://gulfbusiness.com/mitsui-says-no-decision-adnoc-lng-project-tie-up/

The German economy ministry sees " signs of a slight economic upturn"in the country as energy-intensive industries have expanded their production since the beginning of the year. "Electricity and gas now cost around the same on the wholesale market as before the energy price shocks [and] inflation is therefore continuing to fall," economy minister Robert Habeck said. "This boosts people's purchasing power and supports recovery in private consumption." The government adjusted its economic growth forecast for 2024 only slightly from 0.2 percent in a report from February to 0.3 percent, and expects 1 percent growth next year. "0.3 percent is of course not something we can be satisfied with," said Habeck. "Despite the signs of hope, I am still concerned about the structural problems of Germany as an economic location," Habeck said, calling for strengthening innovation, reducing bureaucracy and tackling the labour shortage.

A string of crises in the past years, including the Covid-19 pandemic and the energy crisis – exacerbated by Russia's war against Ukraine – have put a damper on Germany's economic development and highlighted structural issues, such as the lack of skilled workers. Record-high energy prices, particularly for natural gas, had impacted the economy as a whole, in which energy-intensive industry still plays a key role. Overall, since their peak in 2022, prices have decreased almost to pre-crisis level. However, fossil gas remains more expensive compared to before the crisis, when Russia supplied the largest share of the country's gas demand. Chancellor Olaf Scholz recently had defended his government's efforts to navigate the energy crisis against critcisim from industry leaders. Scholz said energy prices by and large had dropped back to pre-crisis levels after "two turnaround years" during which the country transformed its energy import structure, especially regarding natural gas. This had helped make the country as competitive regarding energy prices as it had been "for decades," the chancellor said.

A report by the Potsdam Institute for Climate Impact Research (PIK) said given the fact that some countries have much better conditions for renewable electricity generation, production of key energy-intensive industrial commodities – such as steel, urea and ethylene – could benefit from cost savings if relocated to such regions. However, the cost of energy is just one of many factors behind companies’ relocation decisions.

https://www.cleanenergywire.org/news/german-govt-sees-signs-slight-economic-upturn-energy-intensive-industry-production-increases

Dutch and British wholesale gas prices traded higher on Wednesday morning, as planned and unplanned outages in Norway and Britain tightened the supply picture, offsetting a return to milder temperatures.

The benchmark front-month contract (TRNLTTFMc1) at the Dutch TTF hub was up 0.43 euro to 28.95 euros per megawatt hour (MWh) at 0817 GMT, LSEG data showed.

The Dutch day-ahead contract was up 0.27 euro at 29.50 euros/MWh.

In the British market, the within-day contract (TRGBNBPWKD) was up 1.75 pence at 72.75 pence per therm and the day-ahead contract (TRGBNBPD1) traded 2.40 pence higher at 73.60 p/therm.

The flow of Norwegian gas to Britain was down 26 million cubic metres (mcm) per day compared with Tuesday, while unplanned outages in the UK at Bacton Seal and Bacton Perenco cut 8 mcm/day of supply, LSEG analyst Saku Jussila said in a daily research note.

Further Norwegian maintenance scheduled from Thursday would cut another 39 mcm/day, according to Jussila.

"Due to Norwegian maintenance action, NEW balance is still quite tight and significant withdrawals from storages are needed. This should add some bullish pressure," the analyst said.

Europe's gas storage sites are around 62% full and saw a small dip for April 22, the most recent data point published by Gas Infrastructure Europe.

Further market support stemmed from the unplanned outage at Norway's Hammerfest liquefied natural gas (LNG) terminal.

The plant in Arctic northern Norway was evacuated on Tuesday because of a gas leak during maintenance and will remain offline until Friday, operator Equinor EQNR said.

"In addition to geopolitical risk factors, this is the kind of incident that prevents the market from being completely calm and to hesitate to take a decidedly bearish stance," analysts at Engie EnergyScan said in their daily report.

However, the potential for prices to move higher is limited by bearish fundamental factors such as a return to milder weather from the weekend following the current cold spell, analysts said.

Meanwhile, the first tanker in 12 days set sail from major U.S. LNG export terminal Freeport on Tuesday, signalling the resumption of gas processing after an outage this month that raised concerns over supplies.

In the European carbon market, the benchmark contract (CFI2Zc1) was up 1.04 euro at 66.71 euros per metric ton.

https://www.tradingview.com/news/reuters.com,2024:newsml_L5N3GX2KH:0-prices-gain-on-north-sea-outages/

LONDON (Reuters) - Russia's liquefied natural gas (LNG) exports could stagnate in the next four years under the two less-rosy of three Economy Ministry scenarios - a sign that Western sanctions might be cramping Moscow's energy plans.

Under the ministry's "conservative" and "stress" scenarios, the latter not made public, LNG output would stagnate at 38.6 million metric tons each year in 2025-2027, according to a document seen by Reuters.

The baseline scenario, the most optimistic, calls for a rise to 56.6 million tons in 2027 from 33.3 million in 2023.

Russia says it wants to secure 20% of the global LNG market by 2030-2035, compared to around 8% at present, thanks to new plants predominantly located in the Arctic.

However, myriad Western sanctions present obstacles, not least to a new Arctic LNG 2 project that is yet to export a cargo after tentatively starting production in December.

The project is due to become one of Russia's largest such plants with eventual annual output of 19.8 million metric tons of LNG and 1.6 million tons of stable gas condensate from three production units, or trains.

Sources have said the conversion of methane into liquid at minus 163 degrees Celsius (minus 261 Fahrenheit) has now been suspended at the plant.

The Kremlin-controlled energy giant Gazprom also delayed the start-up of a huge gas complex at the Baltic port of Ust-Luga since the withdrawal of Western companies such as Linde after the start of Russia's conflict with Ukraine in February 2022.

Russia currently has two large-scale LNG plants: the Novatek-led Yamal LNG, which produced around 20 million tons last year, and Gazprom's Sakhalin-2, with an output of more than 10 million tons last year.

(Reporting by Darya Korsunskaya; Editing by Kevin Liffey)

https://uk.finance.yahoo.com/news/exclusive-russia-does-not-rule-142532407.html

Crude oil prices ticked higher today after the U.S. Energy Information Administration reported an estimated decline of 6.4 million barrels in inventories for the week to April 19.

This compared with an inventory build of 2.7 million barrels for the previous week, which pressured prices last week.

It also compared with an inventory draw of 3.23 million barrels as estimated by the American Petroleum Institute on Tuesday, with the group also reporting a gasoline inventory decline of about half a million barrels. Analysts had expected an inventory build in crude oil.

In fuels, the EIA estimated mixed inventory changes in the reporting period.

Gasoline inventories shed 600,000 barrels in the week to April 19, with production averaging 9.1 million barrels daily.

This compared with an inventory decline of 1.2 million barrels for the previous week, when production averaged 9.4 million barrels daily.

In middle distillates, the EIA estimated an inventory build of 1.6 million barrels for the week to April 19, with production averaging 4.8 million barrels daily.

This compared with an inventory draw of 2.8 million barrels for the previous week, when production averaged 4.6 million barrels daily.

Oil prices rose earlier on Wednesday, driven by the surprise draw in inventories estimated by the API on Tuesday, recouping some of the losses made earlier in the week as tensions in the Middle East appeared to have quietened.

"Recent reports suggest that both Iran and Israel consider the current operations concluded against one another, with no follow-up action required for now," ING said in a note quoted by Reuters, adding "The US and Europe are preparing for new sanctions against Iran – although these may not have a material impact on oil supply in the immediate term."

Separately, the Dutch bank’s head of commodity strategy Waren Patterson wrote that the upward potential for oil prices appeared limited thanks to spare capacity.

“The market is obviously of the view that spare OPEC production capacity will come into play in the event of any supply shocks, or that ongoing tension is unlikely to lead to significant supply losses,” he said Monday.

By Irina Slav for Oilprice.com

https://oilprice.com/Energy/Crude-Oil/Oil-Moves-Higher-on-Inventory-Draw.html

By Chen Aizhu

SINGAPORE (Reuters) -Asia's largest oil and gas producer PetroChina Co Ltd reported a 60% year-on-year rise in nine-month net profit to record highs, lifted by stronger global energy prices, even as weaker domestic fuel consumption continued to drag on earnings.

Net profit for the January to September period reached 120.3 billion yuan ($16.66 billion), the company said in a statement.

Domestic crude oil output increased 2.7% during the first nine months versus a year earlier to 577 million barrels, while gas output was up 5.1% to 3,296 billion cubic feet.

PetroChina, which is also China's second-largest oil refiner, processed 1.8% less crude oil than a year earlier at 896 million barrels in the first nine months, or 3.28 million barrels per day.

Domestic fuel consumption has been weighed down by Beijing's lengthy COVID restrictions that crimped mobility and economic activities, forcing refiners to cut operations.

Highlighting weakened domestic fuel demand, PetroChina's gasoline output dropped 12% on the year during the period and that of aviation fuel tumbled 33%.

However, the firm's gas business benefited from a 6.6% increase in domestic natural gas sales at 147 billion cubic meters, resulting a 30% growth in operating income in the gas marketing segment.

"As a result of the recurrence of COVID19 in some areas, the demand for refined oil in domestic market declined, while the demand for natural gas in domestic market has been growing," the firm said in a filing to the Hong Kong Stock Exchange.

Its Hong Kong listed shares have dropped 4.9% year-to-date, versus a 34% fall in the Hang Seng index.

($1 = 7.2220 Chinese yuan renminbi)

(Reporting by Chen Aizhu; Editing by Jan Harvey and Bernadette Baum)

https://uk.movies.yahoo.com/movies/petrochina-posts-record-16-7-092707356.html

(Reuters) - Spanish steelmaker Acerinox said on Thursday it expects earnings before interest, taxes, depreciation and amortization (EBITDA) to improve only slightly in the second quarter due to the weak European market and the prolonged strike at its Spanish mill.

The company said that there is no guarantee that the labour dispute at its Spanish steel mill Cadiz will be resolved in the short term.

Workers have been on strike for three months due to discrepancies with several points of the proposed agreement including salaries and flexible hours.

Its European business reported an EBITDA loss of 31 million euros ($33.22 million) in the first quarter due to the industrial action and poor market.

European steelmakers have struggled with softer demand amid a fragile economic environment and stiff competition from cheaper Asian rivals.

"The European market continues to be weak and has not experienced the expected recovery...even with the reduction in supply," the company said.

Steel demand in Europe, which has been challenged by high inflation and tighter monetary policy, is expected to show very modest growth this year before a 5.3% projected gain in 2025, the World Steel Association said earlier this month.

Meanwhile, steel prices in America, where around half of the group sales come from, remained robust, CEO Bernardo Velazquez said in a conference call, reflecting the divergence between a lagging European industry and a more resilient US manufacturing.

Acerinox also said it will stop production at its factory in Malaysia's Bahru in the second quarter.

First-quarter group EBITDA fell 51% to 111 million euros compared to the same period one year earlier.

That was slightly better than the 109.5 million euros expected by analysts in an LSEG poll.

The steelmaker's net profit also more than halved over the period to 53 million euros from one year ago.

Shares were up 1.7% at 0938 GMT, supported by a 31% net debt reduction to 234 million euros from the previous quarter, analysts pointed out.

($1 = 0.9330 euros)

(Reporting by Matteo Allievi and Natalia Siniawski; Editing by Josephine Mason and Miral Fahmy)

By Matteo Allievi and Natalia Siniawski

https://www.marketscreener.com/quote/stock/ACERINOX-S-A-141121/news/Steelmaker-Acerinox-cautious-on-second-quarter-as-strike-drags-on-46528874/

Range Resources Corporation (RRC) reported first-quarter 2024 adjusted earnings of 69 cents per share, which beat the Zacks Consensus Estimate of 56 cents. However, the bottom line declined from the prior-year quarter’s 99 cents per share. 

Total quarterly revenues of $718 million beat the Zacks Consensus Estimate of $689 million. The top line, however, declined from the prior-year quarter’s figure of $853 million.

Better-than-expected quarterly results were driven by higher-than-projected gas equivalent production and lower total costs and expenses. However, lower realizations of commodity prices partially offset the positives.

Operational Performance

The company’s production averaged 2,141.5 million cubic feet equivalent per day (Mcfe/d) in the reported quarter, almost in line with the prior-year period. The figure beat our projection of 2,121.6 Mcfe/d. Natural gas accounted for 68% of total production, while NGLs and oil contributed to the rest. 

Oil production increased 5% year over year, while NGL output jumped 4%. Natural gas production, however, decreased 2% during the same time frame.

Total price realization (excluding derivative settlements and before third-party transportation costs) averaged $2.91 Mcfe, down 24% year over year. Notably, price realization was higher than our estimate of $2.74 Mcfe. Natural gas prices declined 38% on a year-over-year basis to $2.05 per Mcf. NGL prices declined 5%, while oil prices fell 3%.

Costs & Expenses

Total costs and expenses declined 8% year over year to $535 million. The reported figure was lower than our expectation of $571 million. Transportation, gathering, processing and compression costs, which form a major part of the total costs, increased to $290.9 million from $285.5 million in the prior-year quarter.

Capital Expenditure & Balance Sheet

The company’s drilling and completion expenditure amounted to $152 million in the reported quarter. An amount of $18 million was used for acreage, infrastructure and other investments.

RRC had a total long-term debt of $1,755.7 million at the end of the reported quarter.

Outlook

Range Resources forecasts its total production for 2024 in the range of 2.12-2.16 billion cubic feet equivalent per day, with more than 30% of this attributed to liquids production. RRC estimated a capital budget of $620-$670 million for the year.

Zacks Rank & Stocks to Consider

RRC currently carries a Zacks Rank #3 (Hold). Some better-ranked energy companies are Sunoco LP (SUN) , PBF Energy Inc. (PBF) and Valero Energy Corporation (VLO) . All the stocks carry a Zacks Rank #2 (Buy).

https://www.zacks.com/stock/news/2262279/range-resources-rrc-q1-earnings-beat-on-gas-production

Key Takeaway

- Cnooc Ltd. reported a 24% increase in net income to 39.72 billion yuan in Q1, driven by higher drilling output and sales.

- Despite a slight drop in global crude prices, the company's realized oil price rose by 6.2%.

- Overseas production surged by 17%, with significant contributions from Canada and Guyana, aligning with Beijing's energy security efforts.

Cnooc's Record Profits Amid Global Volatility

Cnooc Ltd., China's largest offshore oil driller, reported a significant increase in profits and revenue in the first quarter, setting new records. The company's net income surged 24% year-over-year to 39.72 billion yuan ($5.48 billion), with revenue growing 14% to 111.47 billion yuan. This financial growth was bolstered by a 21% increase in oil and gas sales, despite a slight decrease in global crude prices. Notably, Cnooc's realized price for oil climbed 6.2%, showcasing the company's resilience and strategic positioning in the volatile global market.

Strategic Expansion Boosts Output

In line with Beijing's strategy to enhance China's energy security, Cnooc has aggressively increased its production output. The company reported a 9.9% increase in production, reaching 180.1 million barrels of oil equivalent in the first quarter, marking another record achievement. This growth was significantly supported by a 17% increase in overseas output, particularly from operations in Canada and Guyana. Cnooc's commitment to expanding its global footprint and increasing production capacity is evident in its 17% rise in total capital expenditure to 29 billion yuan during the same period.

Navigating Global Market Dynamics

The backdrop to Cnooc's impressive performance includes a complex global market environment. Global benchmark crude futures were slightly lower by 0.5% in the first quarter compared to the previous year. However, prices have rallied since March due to escalating tensions in the Middle East. Cnooc's ability to achieve record profits and increase output amidst these conditions highlights the company's strategic market navigation and operational efficiency. The firm's success is a testament to its robust business model and the effectiveness of its strategies in responding to global market dynamics.

https://super.news/en/articles/2024/04/25/cnoocs-net-jumps-24-to-5-48-b-boosted-by-global-ventures

Antero Resources Corporation (AR Quick QuoteAR - Free Report) reported first-quarter 2024 adjusted earnings of 7 cents per share, which beat the Zacks Consensus Estimate of 4 cents.  However, the bottom line declined significantly from the year-ago quarter’s level of 51 cents.

Total quarterly revenues of $1.12 billion surpassed the Zacks Consensus Estimate of $1.08 billion. The top line, however, decreased from the year-ago quarter’s figure of $1.41 billion.

Better-than-expected quarterly earnings can be primarily attributed to higher production volumes, driven by strong well performance and lower operating expenses. However, a decline in natural-gas-equivalent price realization has offset the positives.

https://www.zacks.com/stock/news/2262540/antero-resources-ar-q1-earnings-beat-on-higher-production

Freeport LNG shipped its first tanker in 12 days from its Texas export terminal on Tuesday, marking a resumption of gas processing after an outage last month.

In March, Freeport shut down the train 2 liquefaction unit at its Texas plant and said that train 1 would be closed imminently. Each of the trains can turn around 700 million cubic feet (mcf) per day of feed gas into LNG.

The company said it could afford the fall in output associated with shutting down the trains as train 3, which froze in January and was out of action, had come back online. However, on 9 April, train 3 tripped and output from the plant dropped to near zero.

Freeport LNG is one of the US’s largest LNG export facilities and the US was the largest exporter of LNG in the world last year. Fluctuations in output at Freeport have therefore had major impacts on global gas prices. At the time of the drop in output, gas futures were up around 6% at the Dutch Title Transfer facility.

According to data seen by Reuters, the tanker BW Pavilion Leeara was partially loaded when it left Freeport LNG’s dock late Tuesday. This was the first vessel to depart the Quintana, Texas, plant since 11 April.

Pipeline gas flows were on track to reach 800mcf, up from 100mcf last Friday. At normal times, flows to the plant are around 2.2 billion cubic feet per day (bcf/d) to 2.4bcf/d.

In other news, Freeport was fined $152,173 last week for violating state air pollution emissions rules between 2019 and 2021.

The Texas Commission on Environmental Quality said on 11 April that Freeport LNG had released carbon monoxide, hydrogen sulphide, nitrogen oxides, sulphur dioxide and volatile organic compounds over several years in excess of the permitted levels from flaring at the plant in Quintana.

https://www.globaldata.com/newsletter/details/freeport-lng-ships-first-tanker-in-12-days_215342/?newsletterdate=2024-04-25&hubspotcategory=gd-oil-gas-prospects-daily&utm_source=website&utm_medium=top_navigation&utm_content=other_daily_news_articles&utm_campaign=type2_oilgas

Vista Energy First Quarter 2024 Results

Key Financial Results

- Revenue: US$317.4m (up 4.7% from 1Q 2023).

- Net income: US$78.7m (down 39% from 1Q 2023).

- Profit margin: 25% (down from 43% in 1Q 2023).

- EPS: US$0.82 (down from US$1.43 in 1Q 2023).

Vista Energy. de Earnings Insights

Looking ahead, revenue is forecast to grow 18% p.a. on average during the next 3 years, while revenues in the Oil and Gas industry in South America are expected to remain flat.

Performance of the market in Mexico.

The company's shares are up 4.5% from a week ago.

https://simplywall.st/stocks/mx/energy/bmv-vista-a/vista-energy-de-shares/news/vista-energy-de-first-quarter-2024-earnings-eps-us082-vs-us1

BRUSSELS (Reuters) -The European Commission's next sanctions package is expected to propose restrictions on Russian liquefied natural gas (LNG) for the first time, including a ban on trans-shipments in the EU and measures on three Russian LNG projects, three EU sources said.

The Commission is in the final stages of ironing out its proposal and is engaged in informal talks with member states this week. The Commission declined to comment.

The proposal would not ban imports of Russian LNG to Europe, but instead target trans-shipments, which move LNG from one vessel to another that then sails onto its final destination. The transfers are usually done in port areas.

The other proposed measure would be to impose sanctions on three Russian LNG projects - Arctic LNG 2, Ust Luga and Murmansk - that are not yet operational.

The EU announced a ban on Russian seaborne oil imports soon after the invasion of Ukraine in February 2022, but the bloc has stopped short of prohibiting LNG, despite repeated calls by the Baltic states and Poland.

Imports of Russian LNG to Europe have increased since the war began, with Belgium, France, and Spain the biggest takers.

EU statistics and Reuters calculations show the rise in LNG has pushed the share of Russian gas in EU supply back up to around 15% after pipeline imports from Russia's state-owned Gazprom (GAZP.MM), plunged to 8.7% from 37% of EU gas supply.

Analysts have said existing sanctions and difficulties securing vessels mean Russia is unlikely to meet a government target to commission 100 million metric tons of LNG capacity by 2030. Actual capacity in 2030 is expected to be as much as 60 million tons short of that goal, Rystad Energy said.

The details are still being discussed, but one source said the Commission proposal would be finalised by the end of next week.

The sources said there would likely be more support to sanction the projects than to ban trans-shipments when the final proposal is formally presented to EU member states.

(Reporting by Julia Payne, Kate Abnett and Jan Strupczewski; Editing by Kirsten Donovan and Sharon Singleton)

https://uk.finance.yahoo.com/news/european-commission-expected-propose-sanctions-142656017.html

The U.S. Maritime Administration has approved construction of what some say is a record size offshore oil export terminal in the Gulf of Mexico 30 miles off Freeport, Texas. The project also would include two pipelines to shore, each 40 miles, and a 10-mile onshore line to a proposed inland terminal.

Developer Enterprise Products Partners, Houston, has not begun to select project engineers and contractors for the deepwater Sea Port Oil Terminal, spokesman Rick Rainey told ENR.

He said it would be the largest in the U.S. but released no cost figure and declined to confirm reports it is an $1.8-billion project.

Rainey said the project will take three years to build after its final investment decision, with no timeframe provided. The approval earlier this month by the agency, part of the U.S. Transportation Dept., requires the project to be completed by Dec. 31, 2028.

The approval came shortly after a ruling by the federal appeals court in New Orleans that dismissed a lawsuit by environmental groups taking issue with federal reviews of the project. The U.S. Army Corps of Engineers and U.S. Environmental Protection Agency were among federal reviewers. “We continue to commercialize this project to support a final investment decision,” the company said in a federal filing.

The port could load 2 million barrels of crude oil per day onto large tankers, eliminating need for smaller vessels now used, which “would lessen emissions from conventional crude oil loading,” said the project record of decision.

The terminal, which would have a state-of-the-art vapor combustion system including recovery and leak detection designed to minimize emissions, would cut crude vapor emissions 95% and total greenhouse gasses 65% by eliminating more than 900 annual ship-to-ship transfers, the developer said.

Opponents disagree. “The evidence is clear [the project] would be catastrophic to the climate, wildlife and frontline communities of the Gulf,” said Sierra Club senior attorney Devorah Ancel. “We are disappointed in this decision to greenlight unprecedented oil exports that are clearly not in the public interest,” Erin Gaines, senior attorney at Earthjustice, said.

The project would allow access to up to 7 million barrels per day of oil supply from basins nearby, said S&P Global. It forecasts 2024 Texas Permian Basin crude oil output of 6.7 million b/d. But other similar port projects proposed by energy developers Phillips 66, Trafigura, Energy Transfer and Sentinel Midstream are in much earlier approval stages, S&P Global said.

https://www.enr.com/articles/58535-18b-texas-oil-export-terminal-okayed-by-federal-regulator

HOUSTON (Reuters) -Oil prices edged down on Thursday after slower economic growth in the first quarter added to concerns of retreating fuel demand in the United States.

Brent crude futures fell 27 cents, or 0.3%, to $87.73 a barrel by 11:40 a.m. ET (1540 GMT) while U.S. West Texas Intermediate crude futures eased 41 cents, or 0.5%, at $82.41.

U.S. economic growth slowed more than expected in the first quarter, but an acceleration in inflation suggested that the Federal Reserve would not cut interest rates before September.

U.S. gasoline stockpiles fell by less than forecast and distillate stockpiles rose against expectations of a decline in the week to April 19, according to [EIA/S] Energy Information Administration (EIA) data on Wednesday, reflecting signs of slowing demand.

U.S. crude inventories unexpectedly fell sharply last week, the EIA report also showed, as exports jumped.

"Although we thought the Department of Energy inventory data for last week was bullish overall, there are some concerns regarding apparent demand," said Tim Evans, an independent energy analyst.

The concern about U.S. fuel demand arises amid signs of cooling U.S. business activity in April and as stronger-than-expected inflation and employment data means the Fed is seen as more likely to delay expected interest rate cuts.

"The current weakness in benchmark prices, after testing above $90 levels, is due to market sentiment refocusing on global economic headwinds over geopolitical tensions," said Emril Jamil, senior oil analyst at LSEG Oil Research.

Fighting in the Gaza Strip between Israel and Hamas is expected to expand as Israel may start an assault on Rafah, in the enclave's south, which may increase the risk of a wider war that could potentially disrupt oil supplies.

Still, oil supply has not been affected as yet and there have been no other signs of direct conflict between Israel and Hamas-backer Iran, a major oil producer, since last week.

"Traders continue to waver on how much geopolitical risk to price in after Israel and Iran backed away from further direct confrontation last week, Evans said, cautioning that some residual risk remains as Israel ramps up operations against Hezbollah in southern Lebanon and Hamas in Gaza.

(Additional reporting by Arathy Somasekhar in Houston, Robert Harvey and Alex Lawler in London, Deep Vakil in Bengaluru, Yuka Obayashi in Tokyo and Jeslyn Lerh in Singapore; editing by David Goodman, Kirsten Donovan and Marguerita Choy)

https://www.saltwire.com/cape-breton/business/oil-eases-as-us-demand-concerns-outweigh-fears-over-middle-east-conflicts-100959570/