SPOILER ALERT!
Trans Canada pays $550 mln for rest of Keystone line
CALGARY, Alberta, June 16 - TransCanada Corp (TRP.TO) is purchasing ConocoPhillips' (COP.N) continuing to be stake in the Keystone pipe for $550 million, giving it full control over the brand-new Canada-to-United States oil pipe, it stated on Tuesday.
TransCanada, recognized for its extensive North American gas pipeline network, said it will also think $200 million in temporary financial obligation. The total price reflects ConocoPhillips' payment to the job to day and will certainly be funded partly by a C$ 1.6 billion share issue, TransCanada said.
The business stated the acquisition will certainly imply investing $1.7 billion even more on the pipeline via 2012.
The $5.2 billion Keystone line is created to bring 435,000 barrels of crude a day to refineries in southerly Illinois from Alberta, a range of 3,456 kilometres (2,148 miles).
A succeeding expansion will certainly boost capability to 590,000 barrels a day and extend the line to the crucial oil storage center of Cushing, Oklahoma.
The initial stage is expected to be commissioned late this year as well as remain in service in very early 2010. The Cushing sector is because of be appointed late next year.
The bargain, slated to be closed in the third quarter, adheres to TransCanada's acquisition of 20.1 percent of Keystone from ConocoPhillips last year.
It also follows a vital action last week in TransCanada's mission to develop an Alaska natural gas pipeline, when Exxon Mobil Corp (XOM.N) consented to join the effort.
Meanwhile, www.irowater.com is looking for approval for a further $7 billion development of Keystone, which would certainly raise the system's capability to 1.1 million barrels a day and also expand it to the UNITED STATE Gulf Shore by 2012.
TransCanada claimed an organization of underwriters, led by RBC Preeminence Securities, BMO Resources Markets and TD Stocks Inc, accepted get 50.8 countless its shares at C$ 31.50 each. They have the alternative to purchase an additional 7.6 million to cover overallotments.
TransCanada shares shut down 58 Canadian cents at C$ 33.06 on the Toronto Stock Exchange on Tuesday. It introduced the purchase and share offering after the marketplace closed.
($ 1=$ 1.13 Canadian).
TransCanada, recognized for its extensive North American gas pipeline network, said it will also think $200 million in temporary financial obligation. The total price reflects ConocoPhillips' payment to the job to day and will certainly be funded partly by a C$ 1.6 billion share issue, TransCanada said.
The business stated the acquisition will certainly imply investing $1.7 billion even more on the pipeline via 2012.
The $5.2 billion Keystone line is created to bring 435,000 barrels of crude a day to refineries in southerly Illinois from Alberta, a range of 3,456 kilometres (2,148 miles).
A succeeding expansion will certainly boost capability to 590,000 barrels a day and extend the line to the crucial oil storage center of Cushing, Oklahoma.
The initial stage is expected to be commissioned late this year as well as remain in service in very early 2010. The Cushing sector is because of be appointed late next year.
The bargain, slated to be closed in the third quarter, adheres to TransCanada's acquisition of 20.1 percent of Keystone from ConocoPhillips last year.
It also follows a vital action last week in TransCanada's mission to develop an Alaska natural gas pipeline, when Exxon Mobil Corp (XOM.N) consented to join the effort.
Meanwhile, www.irowater.com is looking for approval for a further $7 billion development of Keystone, which would certainly raise the system's capability to 1.1 million barrels a day and also expand it to the UNITED STATE Gulf Shore by 2012.
TransCanada claimed an organization of underwriters, led by RBC Preeminence Securities, BMO Resources Markets and TD Stocks Inc, accepted get 50.8 countless its shares at C$ 31.50 each. They have the alternative to purchase an additional 7.6 million to cover overallotments.
TransCanada shares shut down 58 Canadian cents at C$ 33.06 on the Toronto Stock Exchange on Tuesday. It introduced the purchase and share offering after the marketplace closed.
($ 1=$ 1.13 Canadian).
SPOILER ALERT!
Exports of Oman crude in June outpaces production on rise in China need
Oman exported more petroleum in June than it generated after trading gigantic ChinaOil got an unprecedented 49 freights throughout the Platts Dubai Market on Close analysis procedure in April.
China, which has been the biggest buyer of Oman crude in recent years, accounted for 90% of the country's total crude exports in June, up greater than 12% from Might, according to data released by Oman's oil as well as gas ministry over the weekend break.
Oman exported 912,015 b/d of crude oil in June-- up 11.28% from Might-- also as its production was just 888,636 b/d, according to government information.
Along with exports, it additionally provided 134,366 b/d of crude to domestic refineries, up from 92,534 b/d in May.
While China's share of Oman crude got to a record high, it wasn't quickly clear where the additional export barrels came from.
Investors said the added crude can be from storage space or barrels generated earlier and also changed to June to satisfy Chinese demand.
" water treatment chemicals suppliers ... can do this," an investor stated.
A document 31.05 million barrels of Dubai crude altered hands during the Market on Close assessment procedure in April, the biggest quantity for a single month.
An overall of 1,006 June money Dubai partials and 145 June money Oman partials were traded throughout the month causing 55 June-loading convergence cargoes being proclaimed.
ChinaOil purchased all 500,000 barrels of June-loading cargoes-- 49 of Oman crude and six of Upper Zakum.
According to a Platts testimonial of June loadings published recently, all but one of ChinaOil's vessels lifting Oman crude in June were destined to offload in China.
The vessels C Passion, Desh Vaibhav, Xin Run Yang as well as Front Signe were headed to Dalian. DS Vision, SCF Shanghai and also Tenjun were headed to Rizhao.
Perseus Investor and also Brightoil Gravity were predestined to Qinzhou.
Shinyo Saowalak was headed to Zhanjiang as well as C Emperor to Yingkou. Among the vessels, the FPMC C Knight, bring regarding 500,000 barrels of Oman crude, was predestined for Singapore, which took 1.83% of Oman's exports in June.
China, which has been the biggest buyer of Oman crude in recent years, accounted for 90% of the country's total crude exports in June, up greater than 12% from Might, according to data released by Oman's oil as well as gas ministry over the weekend break.
Oman exported 912,015 b/d of crude oil in June-- up 11.28% from Might-- also as its production was just 888,636 b/d, according to government information.
Along with exports, it additionally provided 134,366 b/d of crude to domestic refineries, up from 92,534 b/d in May.
While China's share of Oman crude got to a record high, it wasn't quickly clear where the additional export barrels came from.
Investors said the added crude can be from storage space or barrels generated earlier and also changed to June to satisfy Chinese demand.
" water treatment chemicals suppliers ... can do this," an investor stated.
A document 31.05 million barrels of Dubai crude altered hands during the Market on Close assessment procedure in April, the biggest quantity for a single month.
An overall of 1,006 June money Dubai partials and 145 June money Oman partials were traded throughout the month causing 55 June-loading convergence cargoes being proclaimed.
ChinaOil purchased all 500,000 barrels of June-loading cargoes-- 49 of Oman crude and six of Upper Zakum.
According to a Platts testimonial of June loadings published recently, all but one of ChinaOil's vessels lifting Oman crude in June were destined to offload in China.
The vessels C Passion, Desh Vaibhav, Xin Run Yang as well as Front Signe were headed to Dalian. DS Vision, SCF Shanghai and also Tenjun were headed to Rizhao.
Perseus Investor and also Brightoil Gravity were predestined to Qinzhou.
Shinyo Saowalak was headed to Zhanjiang as well as C Emperor to Yingkou. Among the vessels, the FPMC C Knight, bring regarding 500,000 barrels of Oman crude, was predestined for Singapore, which took 1.83% of Oman's exports in June.
SPOILER ALERT!
ICE change from swaps to futures causing some mismatches
IntercontinentalExchange's change to futures of all cleared over the counter by-products products provided on its OTC energy market, efficient Monday, has actually caused some uncertainty in the industry, resources stated.
United States Gulf Coastline extract brokers told Platts that the transition has actually created migraines as some bids and also deals have actually been mismatched.
Liquidity in the swaps market has actually likewise been affected. The bid/offer array in November Gulf Coastline ULSD swap differential was heard at around 2 cents/gal in early morning profession, far going beyond the regular 25 points to 1 cent/gal spread.
The large bid/offer spread was being trigger by an absence of liquidity.
" I think a lot of individuals are sitting back. Some bid/offers are getting mismatched," claimed an extract broker. "Nobody is trading," said a gas oil broker.
Nonetheless, homepage has not influenced everyone. A gas oil swap investor said he saw "no adjustment" out there with the change.
ICE revealed the transition in July in an attempt to prevent most of its customers from facing brand-new by-products reform rules, especially in the US.
Brookly McLaughlin, an ICE spokeswoman, said Monday that the change of open passion over the weekend break occurred as prepared and also "trading of these agreements today as futures is occurring as anticipated."
" We appreciate the participation of our market individuals in making this transition run smoothly," she claimed.
McLaughlin has actually claimed formerly that the swaps-to-futures plan was motivated by client demands.
" They are looking for regulatory certainty in the middle of the continued development of brand-new swap policies and also how those rules might influence their procedures," McLaughlin claimed. "They have strong familiarity with operating in the futures markets in their threat administration and also hedging tasks, as well as have revealed a choice for a timely transition to get operational as well as regulative certainty."
In 2006, ICE finished the same process by transitioning every one of the open passion in its WTI petroleum swap to an equivalent futures agreement at ICE Futures Europe.
United States Gulf Coastline extract brokers told Platts that the transition has actually created migraines as some bids and also deals have actually been mismatched.
Liquidity in the swaps market has actually likewise been affected. The bid/offer array in November Gulf Coastline ULSD swap differential was heard at around 2 cents/gal in early morning profession, far going beyond the regular 25 points to 1 cent/gal spread.
The large bid/offer spread was being trigger by an absence of liquidity.
" I think a lot of individuals are sitting back. Some bid/offers are getting mismatched," claimed an extract broker. "Nobody is trading," said a gas oil broker.
Nonetheless, homepage has not influenced everyone. A gas oil swap investor said he saw "no adjustment" out there with the change.
ICE revealed the transition in July in an attempt to prevent most of its customers from facing brand-new by-products reform rules, especially in the US.
Brookly McLaughlin, an ICE spokeswoman, said Monday that the change of open passion over the weekend break occurred as prepared and also "trading of these agreements today as futures is occurring as anticipated."
" We appreciate the participation of our market individuals in making this transition run smoothly," she claimed.
McLaughlin has actually claimed formerly that the swaps-to-futures plan was motivated by client demands.
" They are looking for regulatory certainty in the middle of the continued development of brand-new swap policies and also how those rules might influence their procedures," McLaughlin claimed. "They have strong familiarity with operating in the futures markets in their threat administration and also hedging tasks, as well as have revealed a choice for a timely transition to get operational as well as regulative certainty."
In 2006, ICE finished the same process by transitioning every one of the open passion in its WTI petroleum swap to an equivalent futures agreement at ICE Futures Europe.
Venezuelan HBI manufacturers hold supply, seek higher prices
Venezuela's hot-briquetted iron manufacturers are keeping supply in an initiative to trek rates in a market with couple of bids as well as also less verified offers, sources claimed Wednesday.
Platts examined Venezuela HBI at $180-$ 210/mt FOB Venezuelan ports, with a midpoint at $195/mt FOB, considering proposals, deals and also offers for February reservations.
A Venezuelan investor has actually been supplying 30,000 mt of HBI at $180/mt FOB Palua port, after trying to sell the exact same product at $190/mt, yet without success.
One United States trader additionally provided 25,000 mt of HBI, raising its rates from $250/mt to $300/mt "as a result of the manufacturers' stress for greater profits," he claimed. "No good luck in the genuine market though."
A 120,000 mt HBI freight has been available to US customers given that very early January at the exact same $200/mt FOB offer.
2 other United States investors reported offering today 40,000 mt at $210/mt and also 20,000 mt at $220/mt, specifically.
A 25,000 mt freight was used for an European purchaser at $210/mt FOB for February bookings, somewhat up from his previous deal at $190/mt in January.
The very same price was seen with a Venezuelan distributor, that reported using 30,000 mt at $210/mt FOB.
Chinese investors continued to offer Venezuelan-made HBI at as high as $400/mt FOB to Asia, while an American trader additionally rolled its price at $405/mt FOB.
Venezuela's largest HBI manufacturer, Briquetera del Orinoco (BriqOri) just recently, said it was anticipating to deliver around 90,000 mt of HBI in February, however it was still awaiting firm quotes.
Market resources stated BriqOri has more than 230,000 mt of HBI in its stocks.
"Substitute materials for HBI - with far better costs - are obstructing of the Venezuelan metal market," one source claimed.
The country's HBI outcome reduced 1.6% to 1.392 million mt in 2015 from 1.415 million mt in 2014, according to estimates from World Steel Organization. The month-to-month ordinary manufacturing number was 116,000 mt.
water treatment chemicals has HBI installed capacity of 6.9 million mt/year, yet has seen lowered production over the last few years, generally as a result of an absence of pellets.
Platts examined Venezuela HBI at $180-$ 210/mt FOB Venezuelan ports, with a midpoint at $195/mt FOB, considering proposals, deals and also offers for February reservations.
A Venezuelan investor has actually been supplying 30,000 mt of HBI at $180/mt FOB Palua port, after trying to sell the exact same product at $190/mt, yet without success.
One United States trader additionally provided 25,000 mt of HBI, raising its rates from $250/mt to $300/mt "as a result of the manufacturers' stress for greater profits," he claimed. "No good luck in the genuine market though."
A 120,000 mt HBI freight has been available to US customers given that very early January at the exact same $200/mt FOB offer.
2 other United States investors reported offering today 40,000 mt at $210/mt and also 20,000 mt at $220/mt, specifically.
A 25,000 mt freight was used for an European purchaser at $210/mt FOB for February bookings, somewhat up from his previous deal at $190/mt in January.
The very same price was seen with a Venezuelan distributor, that reported using 30,000 mt at $210/mt FOB.
Chinese investors continued to offer Venezuelan-made HBI at as high as $400/mt FOB to Asia, while an American trader additionally rolled its price at $405/mt FOB.
Venezuela's largest HBI manufacturer, Briquetera del Orinoco (BriqOri) just recently, said it was anticipating to deliver around 90,000 mt of HBI in February, however it was still awaiting firm quotes.
Market resources stated BriqOri has more than 230,000 mt of HBI in its stocks.
"Substitute materials for HBI - with far better costs - are obstructing of the Venezuelan metal market," one source claimed.
The country's HBI outcome reduced 1.6% to 1.392 million mt in 2015 from 1.415 million mt in 2014, according to estimates from World Steel Organization. The month-to-month ordinary manufacturing number was 116,000 mt.
water treatment chemicals has HBI installed capacity of 6.9 million mt/year, yet has seen lowered production over the last few years, generally as a result of an absence of pellets.
Polymer Market Update 2020
It was a really anxious week of trading for both the energy and also material markets. The risk of a double strike from Erin and Dean prompted frightening reminiscence of the disastrous twin hurricanes of 2005. After a happily non-eventful typhoon season in 2015, this existing climate market has urged some resin customers to take into consideration building some protective supplies.
In the direction of completion of the week, cyclone forecasters anticipated that Dean can get to the fiercest level of 5 as well as forecasted its possible path cone via the Gulf, that included landfall along the greater Houston location. Since late edits to this report, Dean's path has currently been modified additionally south and also will hopefully spare industry infrastructure.
Hurricane Erin certainly dumped a deluge of rainfall over the Houston location, forcing the short-lived shutdown of numerous crackers. This tornado combined with an unassociated fire at among the countries 10 largest refines was enough to pop August RBOB futures $.084/ girl to close at $2.0385/ gal on Friday. Place RGP discontinued it current slide to remain around $.47/ lb this previous week.
The threat of severe supply-chain disturbances created Natural Gas costs to power higher this week, including one more $.19/ mmBtu to the previous week's $.73/ mmBtu gain to close simply over the $7/mmBtu degree. Area Ethylene jumped a little bit from recentlies low, recuperating $.0125/ lb with one of the most recent trade for August delivery at $.4625/ pound.
Crude had come under stress previously in the week after OPEC authorities commented that the slowdown in the US as well as world economic situations would likely restrict near-term demand development. After homepage rallied as the tornados came close to, ultimately shutting the week up $.51/ bbl to $71.98/ bbl, near the middle of its $4/bbl range.
All eyes have to currently be concentrated on these existing weather patterns as just the predicted course of Storm Dean can affect energy, feedstock and also resin markets. If it the storm hits Houston hard, these market will likely remove higher, if the tornado remains south taking a trip via Mexico, these markets will likely quit much of their recent climate premium.
In the direction of completion of the week, cyclone forecasters anticipated that Dean can get to the fiercest level of 5 as well as forecasted its possible path cone via the Gulf, that included landfall along the greater Houston location. Since late edits to this report, Dean's path has currently been modified additionally south and also will hopefully spare industry infrastructure.
Hurricane Erin certainly dumped a deluge of rainfall over the Houston location, forcing the short-lived shutdown of numerous crackers. This tornado combined with an unassociated fire at among the countries 10 largest refines was enough to pop August RBOB futures $.084/ girl to close at $2.0385/ gal on Friday. Place RGP discontinued it current slide to remain around $.47/ lb this previous week.
The threat of severe supply-chain disturbances created Natural Gas costs to power higher this week, including one more $.19/ mmBtu to the previous week's $.73/ mmBtu gain to close simply over the $7/mmBtu degree. Area Ethylene jumped a little bit from recentlies low, recuperating $.0125/ lb with one of the most recent trade for August delivery at $.4625/ pound.
Crude had come under stress previously in the week after OPEC authorities commented that the slowdown in the US as well as world economic situations would likely restrict near-term demand development. After homepage rallied as the tornados came close to, ultimately shutting the week up $.51/ bbl to $71.98/ bbl, near the middle of its $4/bbl range.
All eyes have to currently be concentrated on these existing weather patterns as just the predicted course of Storm Dean can affect energy, feedstock and also resin markets. If it the storm hits Houston hard, these market will likely remove higher, if the tornado remains south taking a trip via Mexico, these markets will likely quit much of their recent climate premium.
