16 May: global downstream news
Ireland
The Irish Government is trying to design a scheme in conjunction with the EU to continue oil refining in Ireland, following the end of the legal obligation on the owners of the Whitegate oil refinery in 2016.
The Whitegate refinery was withdrawn from sale after it failed to attract any bids that met Phillips 66’s minimum requirement for the sale to proceed. Phillips 66 has committed to operating the oil refinery in the near future and carrying out a round of maintenance works this year.
Ukraine
Ukraine is willing to transfer US$ 4 billion to Russia’s Gazprom for gas deliveries by the end of May.
The interim government in Kiev has calculated it’s gas usage based on a price of US$ 268.50/1000 m3. However, Gazprom wants US$ 485/1000 m3.
Gazprom says that Ukraine owes a total of US$ 3.51 billion for gas deliveries and has threatened to cut off supplies if it does not pay for gas upfront for June. Russian Energy Minister Alexander Novak said he could see no possibility of Ukraine paying for its gas deliveries, even if Gazprom granted Kiev a large discount.
Russia
Total has said that tension between Russia and Ukraine will have little impact on the Yamal LNG project in Russia, although problems with initial financing and importing some materials were possible.
Total CEO Christophe de Margerie said: “The impact on Yamal LNG today is very slim in my opinion.”
“We may be slightly affected in the short term by financing problems or in access to some materials under embargo, but apart from any potential small delays in the start-up, it doesn’t threaten the project”.
China
China plans to sign a multi billion dollar deal to buy Russian gas during a visit by President Vladimir Putin next week, despite US pressure to avoid undermining sanction on Moscow over the Ukraine crisis.
Washington has appealed to Beijing to avoid making business deals with Russia, though American officials acknowledge the pressing energy needs of China.
Iran
The oil ministry of Iran intends to construct a new oil refinery in Abadan. The new refinery is anticipated to have a processing capacity of 210 000 bpd.
Chinese companies will invest € 2.6 billion to build the refinery.
Edited from various sources by Emma McAleavey.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/16052014/downstream_news_541/
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