TotalEnergies no longer sending ships through Red Sea

TotalEnergies has not sent ships through the southern strait leading to the Red Sea and the Suez Canal for several weeks, extending its ships' travel time to Europe, said Hydrocarbonprocessing.

The Bab-el-Mandeb strait at the southern end of the Red Sea has been disrupted by Houthi attacks on commercial vessels, driving up freight costs and restricting traffic.

CEO Patrick Pouyanne said that the costs of going through the Red Sea have gone up, partly due to higher insurance costs. "The conflict between the Houthis and the U.S.-led coalition is having a significant impact on the region. So we're careful and are no longer crossing the Red Sea," Pouyanne said.

The Houthis have been targeting commercial vessels with drones and missiles in the Red Sea since mid-November, causing disruptions to international trade traffic and forcing some ships to reroute around the southern tip of Africa.

"It's four days to make the full trip compared to going through the Red Sea for an LNG carrier," Pouyanne said.

The International Energy Agency (IEA) said Wednesday that delays in oil product deliveries due to ships being diverted to avoid attacks in the Red Sea were impacting product markets in Europe in particular.

We remnd, TotalEnergies, a globally recognized energy corporation, recently announced a delay in the reboot of its mixed-feed ethylene cracker facility situated in Antwerp, Belgium. This facility, which boasts an annual production capacity of 580,000 metric tons, has had its restart schedule pushed to the second half of January, a move that signifies the intricate challenges inherent in such large-scale operations.

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Dow has received International Sustainability and Carbon Certification (ISCC) PLUS certification at its PO/PG and polyols manufacturing site in Freeport, TX, USw, said the company.

An ISCC PLUS certification recognizes Dow's implementation of decoupling fossil feedstocks by using waste-sourced feedstock, following a full independent, external audit.

The newly ISCC PLUS certified polyurethanes site will produce products for automotive, construction, consumer, food, fragrances, pharmaceutical and industrial markets.

We remind, Dow announced that for the fifth year it has been named to the JUST 100 list by JUST Capital and CNBC – placing 35th overall, up 20 spots in the ranking from last year, and securing the top spot for Customers in the Chemicals sector. This year marks the Company’s first time ranking in the top 50.

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Energy giants QatarEnergy and ExxonMobil are on track to commence LNG production at their Golden Pass LNG export terminal, situated on the US Gulf Coast near Sabine Pass, Texas, during the first half of 2025, said Chemanalyst.

QatarEnergy, a state-owned entity, holds a substantial 70 percent stake in the Golden Pass project, which boasts a capacity exceeding 18 million metric tons per annum (mtpa). Notably, QatarEnergy will offload 70 percent of the terminal's capacity. In parallel, ExxonMobil, a prominent US-based energy firm, possesses a 30 percent share in the venture.

A joint venture comprising Chiyoda, McDermott, and Zachry is overseeing the construction of the Golden Pass LNG export terminal. Valued at approximately $10 billion each, the project encompasses three trains and is situated adjacent to the existing LNG import terminal.

Significant progress has been made in various aspects of the project. Installation of piping and steel structures within the process and utilities zones, as well as modifications to flare walls, has advanced. Additionally, activities involving insulation of piping and vessels have continued, along with ongoing concrete foundation pours for Trains 2 and 3.

Further advancements include setting up various vessels on their designated foundations, as well as executing brownfield tie-ins for Trains 2 and 3, and modifications to LNG tank tops. Cable tray installations, cable pulling activities, and the pipe pneumatic/hydrostatic testing program have also seen progress.

Regarding the pipeline expansion project, Golden Pass has maintained civil activities and concrete foundation pours at the MP33 and MP69 compressor stations. Additionally, pipe fabrication and installation activities at these stations have been ongoing.

Construction efforts related to the Sabine Spur, Natural Gas Pipeline (NGPL) Interconnect improvements, and associated facilities have also continued. These developments signify the concerted efforts of QatarEnergy, ExxonMobil, and their collaborators toward achieving the successful and timely completion of the Golden Pass LNG export terminal.

ExxonMobil oversees a premier portfolio of resources and stands as one of the foremost integrated providers of fuels, lubricants, and chemicals on a global scale. Our operational model and organizational structure have evolved to optimize the advantages offered by our growingly integrated enterprise and worldwide renowned brands. Our operations span the globe, focusing on three primary businesses.

QatarEnergy, established through Emiri Decree No. 10 in 1974, operates as a state-owned public corporation overseeing all aspects of the oil and gas sector within the State of Qatar. The core operations of QatarEnergy, along with its subsidiaries and collaborative ventures, encompass exploration, production, and both local and international distribution of various petroleum products. These products include crude oil, natural gas, gas liquids, refined products, synthetic fuels, petrochemicals, fuel additives, fertilizers, liquefied natural gas (LNG), steel, and aluminum. The company prioritizes transparency, innovation, and upholding high standards of quality and service across all its endeavors.

We remind, in 2023, bp's profits saw a significant decline, halving to $13.8 billion, primarily due to lower energy prices. However, the multinational energy group found some solace in the resilience of the gas sector, which helped support its overall business. Despite the challenging economic environment, bp's LNG portfolio witnessed a notable increase, rising by 4 million tonnes per annum (Mtpa) to reach 23 Mtpa. Additionally, the supply and production volumes of biogas surged by 80% and 18% respectively. Moreover, the hydrogen pipeline expanded to 2.9 Mtpa, up from 1.8 Mtpa in 2022.

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Shell plc increased quarterly adjusted earnings to $7.3 bn in 4Q 2023 compared with $6.2 bn in 3Q 2023, reflecting robust operational performance, strong LNG trading and optimization results, said the company.

For full-year 2023, Shell realized a $28-bn annual profit, surpassing expectations due to robust LNG trading and enabling the oil giant to raise its dividend and continue share buybacks. The company's 2023 full year shareholder distributions reached $23 bn, in excess of 40% of cash flow from operations (CFFO) for 2023. However, the annual profit was down 30% from the prior year's record, impacted by lower chemicals and refining margins, along with a slowdown in fuel sales due to tepid global economic activity.

This comes after a remarkable 2022, driven by a spike in energy prices following Russia's invasion of Ukraine. In 4Q 2023, adjusted earnings for the upstream division reached $3.1 bn, an increase from the $2.2 bn reported in 3Q 2023, due to higher production volumes and favourable movements in non-cash deferred tax positions.

Shell's liquids production for 4Q 2023 amounted to 1.36 MMboe/d, up from 1.31 MMboe/d in 3Q 2023. Gas production during 4Q 2023 reached 2.95 Mcfd, compared with 2.56 Mcfd in 3Q 2023. The total production for the quarter stood at 1.87 MMboe/d, an increase from the 1.75 MMboe/d reported in the previous quarter. Integrated gas division's adjusted earnings in 4Q 2023 increased to $3.9 bn from $2.5 bn in the prior quarter, reflecting exceptional trading and optimization results combined with higher volumes.

Trading and optimization results were significantly higher compared with 3Q 2023 due to seasonality and a high number of optimization opportunities. Marketing division's adjusted earnings declined to $692 M from $720 M in 3Q 2023, impacted by lower volumes due to seasonality. Chemicals & products division reported adjusted earnings of $83 M, down sharply from $1.38 bn in the previous quarter. Lower refining margins in the 4Q 2023 reflected lower global product demand as well as lower utilization due to planned maintenance activities. Chemicals margins continue to be impacted by global oversupply as well as weak demand.

Trading and optimization were significantly lower than the previous quarter. Shell's renewables and energy solutions division reported adjusted earnings of $155 M, compared with an adjusted loss of $67 M in 3Q 2023. The improvement was mainly driven by higher trading and optimization results in Europe and the Americas due to volatility and seasonal effects. Total capital expenditure reached $24.4 bn in 2023 and is expected to be $22-25 bn in 2024. The group's spending on its renewables and energy solutions division dropped in 2023 by 23% from 2022 to $2.7 bn.

We remind, Shell will shut down its oil refinery in Wesseling, Germany by 2025 and convert the site to produce lubricant feedstock as part of its drive to reduce its carbon emissions. Shell said it will convert the site's hydrocracker unit into a production unit for Group III base oils, used mostly in engines, with capacity of about 300,000 metric tons a year, equivalent to about 9% of current EU demand and 40% of Germany’s demand for base oils.

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TotalEnergies SE has agreed to acquire OMV Group's 50% interest in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn (SapuraOMV) for USD903 mln, said the company.

SapuraOMV's main assets are its 40% operated interest in Block SK408 and 30% operated interest in Block SK310, both offshore Sarawak in Malaysia. In 2023, SapuraOMV's operated production (100%) was about 500 MMcfd of natural gas, feeding the 30 M tonne/y Bintulu LNG plant operated by Petroliam Nasional Berhad (Petronas), and 7000 b/d of condensate. On Block SK408, Jerun gas field is on track for startup in 2H 2024.

SapuraOMV also holds interests in other exploration licences in Malaysia, Australia, New Zealand, and Mexico, where a discovery was made in Apr 2023 on Block 30. Wintershall DEA operates Block 30 in partnership with SapuraOMV and Harbour Energy PLC (30% each). Located in the shallow waters of Cuenca Salina in Sureste basin, preliminary estimates are of 200-300 M boe in place. The transaction is subject to customary conditions and regulatory approvals. Closing is expected by end 1H 2024.

We remnd, TotalEnergies, a globally recognized energy corporation, recently announced a delay in the reboot of its mixed-feed ethylene cracker facility situated in Antwerp, Belgium. This facility, which boasts an annual production capacity of 580,000 metric tons, has had its restart schedule pushed to the second half of January, a move that signifies the intricate challenges inherent in such large-scale operations.

mrchub.com