Latest News
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Saipem Secures $1.9B Subsea Work at TotalEnergies’ Suriname Field
Saipem has secured an engineering, procurement, construction and installation (EPCI) contract by TotalEnergies for the subsea development of the GranMorgu field, offshore Suriname.Saipem’s scope of work under the contract worth $1.9 billion entails the engineering, procurement, supply, construction, installation, pre-commissioning and assistance for the commissioning and start-up of the subsea umbilicals, Risers and Flowlines (SURF) package.This includes the EPCI of approximately 100 km of 10-inch to 12-inch subsea production flowlines, 90 km of 8-inch to 12-inch water and gas injection lines, and the T&I of flexible risers, umbilicals and associated structures, at water depths ranging from 100 to 1,100 meters.For the offshore campaign, taking place in 2027 and 2028, Saipem will deploy a combination of S-Lay and J-Lay vessels, providing the optimal pipeline installation solution, the Italian company said.The full project, expected to last 5 years with a first oil in 2028, represents the first major subsea development in Suriname, and it is aimed at expanding the production of the block central area through a system of subsea wells connected to a floating production, storage and offloading (FPSO) vessel.The FPSO will be built by SBM Offshore and Technip Energies.SBM Offshore and Technip Energies to Build TotalEnergies’ GranMorgu FPSOMoreover, Saipem will execute the project in cooperation with TechnipFMC, the company in charge of the subsea production system (SPS) and flexible risers and umbilical equipment packages, to optimize the integration between the mutual scopes of work.The two companies created the commercial alliance in 2021 for the pursuit of subsea projects including integrated SURF-SPS developments.TechnipFMC to Supply Subsea Trees for Suriname’s First Oil and Gas Field
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Asia naphtha supply expected to remain tight over next two years
Naphtha is anticipated to stay in short supply in Asia over the next number of years as more crackers come online and as need for blending the fuel with gas increases, industry executives and experts stated. Tight supply might support costs for the fuel and petrochemical feedstock and lift refiners' margins. However, raised naphtha rates will put more margin pressure on petrochemical makers which are facing weak need and increases in inventories for their products. In Asia, the naphtha deficiency compared to require is approximated at 1.73 million barrels each day (bpd) in 2025, and 1.51 million bpd in 2026, Vibhore Kotwani, an expert at PETCO Trading Labuan, a Petronas system, told the Condensate & & Naphtha Forum this week. That compares to 1.72 million for this year New crackers with a combined 18 million metric lots each year. in capacity will come online in Asia over the next two years, Kotwani included. These consist of projects by China's Wanhua Chemical in Yantai, Shandong province, ExxonMobil's job in Huizhou, Guangdong province and Shandong Yulong Petrochemical's new plant, he stated. Armaan Ashraf, an expert at consultancy FGE, said in locations like India, South Korea and Europe more naphtha has actually been directed to fuel mixing, a pattern most likely to continue next year as aromatics markets stay in surplus. Ashraf also said he anticipates naphtha supply to tighten in the very first quarter due to the fact that of prepared upkeep at refineries in the Middle East and India. Nevertheless, he included more supply might originate from Russia, with Novatek planning to improve exports after completing upkeep and growth while run cuts at petrochemical plants in Europe may help to fill the gap in Asia. Petrochemical market authorities, who declined to be identified as they were not authorised to speak to media, stated they were fretted about the potential for tighter supply next year and higher expenses. An authorities at a Thailand-based petrochemical producer said the company would need to cut runs if naphtha supply tightens and need for petrochemicals stays weak. Some companies noted that naphtha was not trading at a discount to condensate as it traditionally would. This year it is reversed, pushing us to utilize more condensate, said an official at an Indonesia-based refiner.
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New alumina products in 2025 poised to rupture record price rally
New capability for transforming bauxite into alumina due online next year is set to ease tight supplies and potentially halt a recordbreaking cost rally of the product utilized to make aluminium. Higher alumina rates outside China have turned the top producer and consumer into a net exporter this year from a web importer and boosted costs of aluminium, which is utilized in the transportation, construction and packaging markets. Disturbances in supplies of bauxite from Guinea and Brazil and output suspensions in Australia added to a 70% surge in alumina rates this year to a record 5,645 yuan ($ 779.77) per metric ton on the Shanghai Futures Exchange. Aluminium rates are up around 7% this year. There doesn't appear to be an end to this tightness of alumina, not instantly, said Eivind Kallevik, CEO at Norwegian aluminium manufacturer Hydro. New alumina refineries anticipated to start up in Indonesia and India will include more loads to the market. International alumina products last year totalled 140 million metric loads, according to the U.S. Geological Survey, the same from the previous year. More supply remains in the pipeline. In China, more than 13 million lots of new capacity is due to come online next year, according to info company Shanghai Metals Market (SMM). In India, Vedanta prepares to buy a plant with yearly capacity for 6 million tons of alumina by 2026. In Guinea, an arm of Emirates Global Aluminium prepares to build a 2 million tons-a-year alumina refinery, slated to open in September 2026. And in Indonesia, two state business prepare to double capacity at their refinery in West Kalimantan province to 2 million loads but have actually not specified a timeline. Meanwhile, raised alumina prices and greater revenue margins are anticipated to further incentivise usage of China's capacity, contributing to provide. China's alumina capacity of 102.7 million heaps is being utilised at a rate of 83.6%, SMM said. Alumina manufacturers have revealed strong desire to keep a high operating rate this year spurred by handsome profit margins, experts at China's state-backed research house Antaike said. However production might be affected if heavy pollution this winter season lasts a long time, exacerbating tight supply. LOOMING SURPLUS China's January-September alumina exports increased 33% from the exact same duration last year to 123.57 million tons, fetching an typical price of $541 a lot, about 10% more than the price on the Shanghai exchange over the exact same period. Some analysts, seeing a looming oversupply, forecast lower alumina costs for 2025. UBS anticipates a typical price of 3,600 yuan a ton in 2025, while Antaike pegs it at 4,000 yuan a heap. We anticipate China's alumina market to enter a supply glut from February and the rate will move as an outcome, said Sharon Ding, head of China basic materials at UBS. In China, SMM anticipates the market to swing to a surplus of 960,000 lots in 2025 from a deficit of 235,000 lots this year, while worldwide UBS expects a surplus of 890,000 heaps in 2025 following a shortage of 920,000 heaps in 2024. Surpluses in 2025 are most likely to be higher if need development slows since of a government-mandated cap of 45.5 million loads of aluminium production. SCARED BY DISTURBANCES This year's alumina deficits are due to multiple factors. U.S. aluminium producer Alcoa closed its Australian Kwinana refinery, with annual capability of 2.19 million loads, in the second quarter. In May, Rio Tinto stated force majeure on alumina from its refineries in Queensland, Australia. Its Yarwun refinery can produce 3 million tons of alumina each year. It did not respond to a Reuters request for an upgrade. Some big sources of alumina have actually been lost this year consisting of from Rio Tinto, which isn't anticipated to be back at typical production up until sometime early next year, said Liberum analyst Tom Cost. Last week, Alcoa halted bauxite deliveries from Juruti Port in Brazil due to a stranded vessel, adding to anxiety in a. market currently startled by export disturbances from Guinea. Flooding in Guinea previously this year minimal bauxite. deliveries, which again were interrupted by customs suspending. exports by Guinea Alumina Corporation (GAC), a subsidiary of. Emirates Global Aluminium (EGA).
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Iron ore fails on China home troubles, heads for weekly loss
Iron ore futures prices fell for a 2nd straight session on Friday and were set for a. weekly decrease, as financiers weighed weakness in China's. residential or commercial property sector against firmer steel output. The most-traded January iron ore contract on China's Dalian. Product Exchange (DCE) ended morning trade 1.84%. lower at 745.5 yuan ($ 103.06) a metric lot, decreasing 4.97% so. far today. The benchmark December iron ore on the Singapore. Exchange was 0.83% lower at $97.45 a lot, since 0330 GMT,. falling 4.18% so far this week. China's new home rates in October fell the most. year-on-year since 2015, while home investment decreased. 10.3% in the first 10 months of 2024 after dropping 10.1% in the. January-September duration, official information revealed. The weaker readings suggest a barrage of assistance measures. announced by China to stabilise its crisis-hit property sector. has had little effect up until now. Still, experts say Beijing's recent burst of economic. stimulus has actually increased belief and improved need in the. nation's steel market, which saw unrefined steel output rise 6.2%. in October from September to end a four-month slide. There has been a pick-up in steel and iron ore need from. non-property sectors, and increasing Chinese steel exports could. likewise offer some assistance, ANZ analysts stated in a note. With Beijing quite open about keeping its powder dry ahead. of possibly greater tariffs in 2025, we believe the possibility. of additional stimulus measures is high. This ought to keep. belief in the iron ore and steel market relatively. resilient, ANZ said. Other steelmaking active ingredients on the DCE traded sideways,. with coking coal down 0.39%, while coke was up. 0.1%. Steel benchmarks on the Shanghai Futures Exchange posted. losses. Rebar dropped 1.74%, hot-rolled coil. shed almost 1.3%, wire rod dipped 0.2% and stainless. steel declined 0.45%.
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China October aluminium output rises on firm need, higher rates
China's October aluminium output rose from a year previously, main information showed on Friday, with a firm need outlook and higher prices offsetting increasing basic material costs. The world's most significant aluminium producer produced 3.72 million metric lots of main aluminium last month, up 1.6%. year-on-year, data from the National Bureau of Data showed. on Friday. In the very first 10 months of the year, China produced 36.39. million heaps, a rise of 4.3% from the same duration last year, the. information revealed. Smelters ramped up their operations this year as the market. turned more lucrative and demand enhanced. In October, the primary producing regions - Shandong, Xinjiang. and Inner Mongolia - kept strong operating rates, while. some new capacity was included the southwestern China, according. to regional media reports. Beijing's barrage of financial stimulus in late September and. procedures to restore its home market likewise boosted the. demand outlook for the light metal, utilized in construction,. transportation and packaging. The most-traded aluminium agreement on the Shanghai Futures. Exchange struck over 21,650 yuan ($ 2,993.56) per load. previously this month, a more than five-month high. Higher costs balance out rising production expenses, even with. costs of the key raw material alumina climbing as authorities. in Guinea suspended exports of bauxite, utilized to make alumina, in. a currently tight market. Regional information supplier Mysteel approximated aluminium. production expenses increased by 938 yuan per heap last month, nevertheless,. thanks to higher aluminium rates, typical revenues increased by. 128 yuan per load. Daily aluminium output in October balanced 120,000 tons,. lower than the average of 121,667 heaps in September, based on. Reuters' calculation. Southwestern China's dry season began this month, which will. lower hydropower supply and raise power rates, leading some. smelters to trim output. Production of 10 nonferrous metals - including copper,. aluminium, lead, zinc and nickel-- rose 0.6 % to 6.69 million. metric loads from a year earlier. Year-to-date output was up 4.7. % at 65.41 million metric heaps. The other non-ferrous metals are. tin, antimony, mercury, magnesium and titanium.
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Philippines braces for hurricane Man-yi as Usagi deteriorates
Hurricane Usagi damaged sharply on Friday after bearing down on the Philippines' northern towns, blowing away homes in its course as authorities brace for another storm that might hit the capital Manila over the weekend. Usagi, known locally as Ofel, magnified into an extremely tropical cyclone as it made landfall in the town of Baggao in Cagayan province on Thursday afternoon. Philippine meteorological firm Pag-asa stated that Usagi has because weakened and is now headed towards Taiwan. Usagi is the 15th cyclone to hit the Philippines this year. Authorities are currently bracing for another typhoon, Man-yi, which might strike eastern towns and the capital area over the weekend as it continues to intensify in the western Pacific. Man-yi could become a supertyphoon on early Sunday, Pag-asa said. No casualties have actually yet been reported from Usagi, even as countless households living in vulnerable communities fled ahead of its arrival. Rueli Rapsing, head of the Cagayan disaster relief office, said town authorities are still penetrating the extent of the damage from the storm. There were more homes that were partly or totally blown after Marce (Tropical Storm Yinxing). Presently, we're moving around evaluating the damage, Rapsing said on Friday. Preemptive evacuations of vulnerable residents in Hurricane Man-yi's course will start on Friday. Pag-asa stated Man-yi's center was last estimated around 795km ( 494 miles) east of the central town of Guian in Eastern Samar province, and alerted of a storm surge of up to 3 metres (10. feet) in seaside towns of the central provinces. The Philippines is dealing with its sixth storm in a month,. primarily striking the main island of Luzon. Tropical Storm Trami and Typhoon Kong-rey brought heavy. flooding and triggered landslides, killing 162 people with 22. still missing out on, according to federal government information. Four storms churned in the western Pacific ocean at the exact same. time this month, the first time it has taken place given that records. began in 1951, the Japan Meteorological Company said. About 20 hurricanes strike the Philippines each year on. average, bringing heavy rains, strong winds and deadly. landslides.
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China's refinery output succumbs to seventh straight month despite ramp-up at new plant
China's refinery throughput fell 4.6%. from last year in October for a seventh successive month of. decrease, regardless of a rampup in production at a recently begun. refinery and holiday travel, official information showed on Friday. Refiners processed 59.54 million metric tons of crude oil. last month, data from the National Bureau of Stats (NBS). revealed, equivalent to 14.02 million barrels daily (bpd). The October figure was lower versus September's 14.3 million. bpd and 15.05 million bpd in October of 2023. Yulong Petrochemical, China's most recent refiner which began. up among its two 200,000-bpd crude processors in late. September, has raised operations to about 90% of capability,. Reuters reported. Analysts said last month's intake of air travel fuel and. fuel increased as more individuals travelled for the National Day. golden week holiday. Nevertheless, data from consultancy Sublime China Info. revealed smaller independent plants were running at 58.7% of. their capability in the refining center Shandong by late October,. greatly below the 77% rate a year previously. Five refineries were totally closed or under maintenance, the. firm said. These include Sinochem's plants - Zhenghe, Huaxing. and Changyi - which were stated bankrupt in September, a. Sublime expert said. In addition, PetroChina's shutting of a 90,000-bpd crude. unit at its plant in northeastern Dalian, part of a huge. relocation task, also added to the lower output. Data revealed throughput throughout the first 10 months stood at. 590.59 million loads, or 14.14 million bpd, down 2% year-on-year,. in its fifth successive decrease for year-to-date volumes. Domestic crude oil production last month got 2.5% on the. year to 17.17 million loads, or 4.04 million bpd, the NBS information. showed. Year-to-date output increased 2% on the year to 177.64 million. tons, or 4.25 million bpd. Natural gas production broadened 8.4% in October over the. year-ago level to 20.8 billion cubic meters
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China Oct unrefined steel output enhanced by enhanced demand, China stimulus
China's unrefined steel output rose 6.2% in October from September, ending a fourmonth slide, main data showed on Friday, amidst enhanced need and an increase to sentiment from Beijing's current burst of economic stimulus. The world's biggest steel manufacturer produced 81.88 million metric lots of unrefined steel last month, up from 77.07 million loads in September, information from the National Bureau of Data showed. October's volume was likewise up 2.9% from a year earlier, NBS information showed. The month's daily output averaged about 2.64 million heaps, compared with 2.57 million heaps in September and 2.55 million tons in October 2023, according to Reuters calculations based upon the information. Experts attributed the increase in output to enhanced demand and production margins following Beijing's economic stimulus steps. The increased need was reflected in China's typical daily home sales throughout the Golden Week holiday, which leapt 23% by floor location from a year previously, while production activity broadened for the first time in six months and services got in October. Likewise, steel exports hit a nine-year high of 11.18 million loads in October. Output in the first 10 months of 2024 fell 3% on the year to 850.73 million lots, the bureau said. Output in November is anticipated to fall due to seasonally weaker need, analysts said. China modified up its overall crude steel output for 2023 by nearly 1% to 1.029 billion lots from 1.019 billion lots formerly.
US weapons helping stabilise Ukraine's front line, Blinken states
U.S. Secretary of State Antony Blinken stated on Wednesday that American weapons being delivered to Kyiv were helping stabilise the cutting edge in Ukraine amid heightening Russian attacks which Washington would adapt and adjust its support.
The leading U.S. diplomat took a trip to the Moldovan capital Chisinau, holding talks with pro-Western President Maia Sandu on the very first stop of a quick European trip targeted at strengthening support for Kyiv amongst NATO allies and neighbouring nations.
Russian President Vladimir Putin has cautioned of the danger of an international conflict if Kyiv's Western allies allow it to utilize weapons they have actually supplied to strike inside Russia, something Ukraine's federal government is prompting its partners to permit.
The U.S. has said it does not motivate or make it possible for making use of U.S. weapons for direct attacks on Russia, however Blinken stated it would change and adapt, when asked at an interview about Washington's present position on the matter.
I believe what you have actually seen over the two plus years, as the nature of the battleground has actually changed, as the locations, the means that Russia is utilizing altered, we've adjusted and adapted to that ... That's precisely what we'll do going forward, he said.
White Home national security spokesperson John Kirby also noted that U.S. assistance for Ukraine has actually evolved with battleground conditions. Which's not going to alter, he informed reporters in Washington. But, today, there's also no modification to our policy.
NATO Secretary General Jens Stoltenberg advised members of the Western military alliance this week to lift restrictions on the usage of their weapons to allow Ukraine to strike genuine. military targets inside Russia.
The U.S., which is Kyiv's most important provider of. weapons, passed a $61 billion aid package in April following. months of delay that exacerbated lacks of weapons shells.
Blinken stated the U.S. weapons materials were now having a. genuine result which Putin had actually not had the ability to attain his. objectives in the Kharkiv area in northeastern Ukraine where Russian. forces launched an offensive this month, opening a new front.
On the contrary, I believe what we see, again, stabilisation. of the front and a failure in regards to Putin's goals, he. stated.
MOLDOVAN HELP
Speaking together with president Sandu on Wednesday, Blinken. promised $50 million in aid for Moldova and enduring U.S. support,. stating the nation had actually shown an extraordinary strength in. the face of Russian bullying and disturbance efforts.
Under Sandu, Moldova has staunchly condemned Russia's. intrusion of Ukraine and set its sights on signing up with the European. Union.
Sandu said Blinken's visit was a strong sign of support. for Moldova.
Through unity and with the assistance of our partners, we will. wait our people and move forward.
Moldova, which is because of hold a referendum in October to. cement its quote to sign up with the EU into its constitution, is a vocal. supporter of Ukraine and sees its own security as carefully connected. to Kyiv's ability to keep back Russian forces.
Assistance for Ukraine equates to support for Moldova, but it likewise. works the other method round. Supporting Moldova reinforces. Ukraine due to the fact that Ukraine needs a strong, democratic Moldova and a. encouraging neighbour due to the fact that we share a 1,200-km border, stated. Olga Rosca, Sandu's foreign policy adviser.
Blinken will travel to Prague on Wednesday to participate in an. casual gathering of NATO foreign ministers, which will focus. on advancing preparations ahead of a July summit of the alliance. in Washington.
The U.S. has actually been dealing with European allies to help. Ukraine develop its long-lasting force, efforts that would bring Kyiv. closer to NATO. Individual members including the U.S. are. working to reach bilateral arrangements with Ukraine.
More than 2 years into the most dangerous war in Europe given that. World War 2, Western allies are disputing how to stop Russian. military advances and Putin is increasingly evoking the threat of. a global war.
(source: Reuters)