Russian Tanker Back in Region After Shipping U.S. LNG to Europe
A Russian gas tanker that is used to secure energy supplies in the west Russian enclave of Kaliningrad has arrived back in the region after being leased out to transport U.S.-produced LNG to Europe, Refinitiv Eikon data showed on Tuesday.Two energy sources told Reuters in November that energy trader Gunvor had leased the Marshal Vasilevskiy tanker from Russian state-controlled gas company Gazprom for loading an LNG cargo in the United States.That surprised the LNG shipping market because U.S.
Russian Gas Tanker to Lift U.S. LNG
A gas tanker once hailed by President Vladimir Putin as a bulwark of Russian energy security is heading for a liquefied natural gas (LNG) terminal in the United States, ship tracking data from Refinitiv's Eikon showed on Friday.The collection of an LNG cargo from the United States by a Russian tanker would be potentially awkward for Putin and Kremlin-controlled gas company Gazprom, which leased out the vessel to Austrian company OMV in August until November.Two industry sources…
Mercantile & Maritime Hires ex-Trafigura Waters as Asia Head
Energy trader Mercantile & Maritime Group said on Thursday it was hiring Ben Waters, previously with Trafigura, as its head of Asia-Pacific trading."We increase our presence and range of capabilities in the region to include trading, storage and blending," MM's chief executive Murtaza Lakhani said.Singapore-headquartered MM employs around 100 people across Asia, Europe and the Middle East and says it operates in frontier markets, trading oil, refined products and offering shipping and storage services. (Reporting by Dmitry Zhdannikov; Editing by Dale Hudson)
Pieridae Mulls Extensions with Uniper
Canadian energy company has negotiated extensions of the key deadlines under its 20-year agreement with German energy trader Uniper.These include expected commercial deliveries of LNG gas to Uniper to start between November 30, 2024 and May 31, 2025, and the extension of the deadline to make a positive financial investment decision (FID) for the company’s proposed Goldboro LNG facility to September 30, 2020.The 20-year agreement with Uniper is for half the liquefied natural gas…
Vitol Expands Tanker Fleet
Global energy trader Vitol has agreed to acquire a further 50 percent share of the global asphalt trading company VALT to integrate the asphalt trading business into the company.VALT is the bitumen joint-venture it established with Sargeant Marine in 2016.The Swiss-based company said in a press release that it would acquire the final 50 percent of the joint venture which it established with Sargeant Marine in 2016. This means, on transaction completion, Vitol will own 100 percent of VALT.The acquisition will make Vitol a leader in the trading…
Gunvor Halts Refinery Upgrade for New Shipping Fuels
Global energy trader Gunvor Group has put on hold plans to upgrade its Rotterdam refinery that intended to make the plant more competitive ahead of new global rules on shipping fuel quality, it said on Tuesday, citing market conditions.Global oil and shipping companies are looking at options to cope with the new standards that come into effect in 2020.The U.N. International Maritime Organization (IMO) will ban ships using fuel with a sulphur content higher than 0.5 percent, compared to 3.5 percent now…
Swiss Utility in Talks to Buy LNG from Canada's Goldboro Project
Axpo, a Swiss utility and energy trader, said on Thursday it was in talks for a 10-year supply deal with a Canadian company planning to build a liquefied natural gas (LNG) terminal.A sales and purchase agreement would boost the chances that Pieridae Energy would decide to build the C$10 billion ($7.6 billion) Goldboro project, which would be the first LNG export terminal on Canada's East Coast.Canada is rich in oil and gas but has yet to export major shipments of LNG to Asia from its West Coast or across the Atlantic from its East Coast."Under the term sheet with Pieridae Energy…
Vitol Invests in Coal-to-oil Venture as Shipping Fuel Rules Loom
Energy trader Vitol and coal miner Peabody Energy are partnering with start-up Arq to turn coal waste into a low-sulphur oil product that could be an alternative fuel for shippers as new U.N. pollution rules loom, the companies said in a statement.Global oil and shipping companies are looking at any and all options to avoid becoming a casualty of the major market dislocations that the new standards will create when they come into effect in 2020.The U.N. International Maritime Organization (IMO) will ban ships using fuel with a sulphur content higher than 0.5 percent…
Equinor Acquires Energy Trader Danske Commodities
Norwegian oil and gas major Equinor, formerly Statoil, is acquiring the Danish energy trading company, Danske Commodities for EUR 400 million (USD 470 mln). "Equinor has reached agreement to buy 100% of the shares in Danish energy trading company Danske Commodities (DC) for EUR 400 million, with smaller contingent payments depending on DC’s performance over the next couple of years," said a press release from the company. This acquisition – of one of Europe’s largest short-term electricity traders – supports Equinor’s development towards becoming a broad energy company.
Aegean Marine Shares Soar as Mercuria Provides $1 bln Lifeline
Energy trader Mercuria Group has agreed to provide a $1 billion trade finance facility to Greece's Aegean Marine Petroleum Network, the marine fuel logistics and supplies company said on Thursday, sending Aegean's stock up more than 150 percent.New York-listed Aegean Marine underwent a major leadership change this year after losses prompted an activist investor revolt to sever ties with the company founder, shipping and oil tycoon Dimitris Melissanidis.Aegean announced a $200 million write-off in early June after a new chairman, Donald Moore, was appointed in May to lead a strategic review.Shares in Aegean were up 127 percent at $1.43 as of 1359 GMT, having risen as high as $1.53.Swiss-based Mercuria will initially inject at least $30 million in cash, Aegean Marine said.Aegean Marine also
Gunvor, Oceangold and Maas Capital Form Tanker JV
A new ship holding company has been formed through a joint venture agreement between physical energy trader Gunvor Group, ship management company Oceangold Tankers and investor Maas Capital.The three partners hold an equal share in the new company, ClearOcean Tankers, which has been incorporated in Cyprus.The new joint venture company has entered into shipbuilding contracts for six vessels from South Korean shipyards, including four MR2 product tankers from STX Offshore & Shipbuilding Co. and two LR2 product tankers from Daehan Shipbuilding Co.
LNG Market to Suffer From Oversupply Until 2021 - Vitol
Global prices of liquefied natural gas (LNG) will face pressure from oversupply over the next two to three years, particularly in warmer months, top energy trader Vitol said on Wednesday. New LNG production in countries such as the United States and Cameroon that is set to start up in the coming months means pressure on the rapidly expanding market will be particularly felt in 2019, Pablo Galante Escobar, who heads Vitol's LNG trading, told the IP Week conference. "We still see over the next two to three years a market that is structurally oversupplied, particularly in summer, Escobar said.
Biggest LNG Vessel Sails to Turkey
The world’s biggest specialized vessel to import liquefied natural gas (LNG) is scheduled to be operational in November to contribute to Turkey's energy supply security, Bloomberg reported. The MOL FSRU Challenger, as long as the Eiffel Tower, is expected to arrive from South Korea this month and start by year-end. Last winter, a cold snap gripped the whole region, including Iran, where Turkey gets some of its gas from. That meant the nation couldn’t get hold of enough fuel to meet its booming gas demand and the grid asked private power plants to reduce fuel demand by as much as 90 percent.
Vitol's 2015 Revenue Sinks 38% to $168 Bln
Vitol's 2015 revenue fell 38 percent to $168 billion in "challenging" market conditions, the commodity trader said on Tuesday. The world's largest independent energy trader's sharp fall in revenue came despite traded volumes of crude oil and products rising 13 percent to 303 million tonnes. "Whilst the market structure favours a physical trader, the absolute price levels and market volatility are causes for caution," Ian Taylor, president and CEO of Vitol said. (Reporting by Sarah McFarlane, editing by Louise Heavens)
Kuo Oil Looks to Lift Two Iranian Fuel Cargoes
U.S. lifts 2012 Iran sanctions against three trader companies; Kuo Oil seeks to load two Iranian fuel oil cargoes. Kuo Oil, a Singapore-based oil trading company, is seeking ships to load Iranian fuel oil, according to a shipping broker report, now that it is finally clear of U.S. trade sanctions imposed in 2012 for trading with the country. The United States lifted the sanctions on Saturday against Kuo, also known as Kuo International Bunkering, as part of its broader relaxation of sanctions against Iran for compliance with an agreement to curtail its controversial nuclear programme. The sanctions were handed down on Kuo in January 2012 for providing over $25 million in refined petroleum products to Iran between late 2010 and early 2011.
Lloyds Bank Withdraws From Rosneft-BP Loan
Lloyds Bank, part-owned by the British government, has withdrawn from a $1.5-$2 billion trade finance deal involving oil major Rosneft, in a development highlighting the growing unease among Western banks in funding Russian deals. Lloyds, along with Deutsche Bank, HSBC and Bank of China was a mandated lead arranger (MLA) on the loan to finance BP's purchase of crude oil and refined products from Rosneft. The loan would be similar to previous such deals Rosneft had with BP or trading houses Glencore and Vitol but, according to banking sources close to the deal, Lloyds decided to walk away after several weeks of hesitation. The bank is 25 percent-owned by the UK government, which has repeatedly condemned Russia over its actions in Crimea and eastern Ukraine.