Monday, September 21, 2015
The collapse of oil and gas prices has forced French oil major Total to sell off assets in the North Sea to cut costs. Total, which has been operating in the U.K. since 1962, will offload some gas pipelines to U.S.-based private equity firm Arc Light Capital’s North Sea Midstream Partners in a £585-million deal. The deal includes the Frigg pipeline and Shetland Island Regional Gas Export System, as well as the St. Fergus gas terminal.
Despite recovering 7.7% to (U.S.) $46 a barrel, the price of oil is still 60% below its five-year high of last June of $115 a barrel. Firms have had to cut costs, abandon projects, and lay off staff to cope. The North Sea is a mature oil area and many larger companies have decided to sell their assets to smaller companies that can make money from the assets there.
In northwest Europe, the propane and butane markets appear to be well balanced with product demand meeting production levels. Propane prices for large, fully refrigerated cargos are now at $297 per tonne cif Amsterdam/Rotterdam/Antwerp (ARA), some $10 per tonne higher than a month ago. Refrigerated butane prices have also increased by $33 per tonne from the end of August to $314 per tonne cif northwest Europe.
The smaller pressure propane and butane sectors of the markets have generally been quiet since the beginning of September. The latest indications of propane swap deals are October 2015 $324-$328 and November 2015 $322-$326, both per tonne cif northwest Europe.
North Sea prices for September are at $240 per tonne fob North Sea terminals for prpane and at $352 per tonne fob North Sea terminals for butane, with propane having softened by $53.5 per tonne and butane hardening by $115 per tonne since the end of last month.
In the Mediterranean, spot activity on both grades of LPG remains low. Contractual cargos have been covering the summer demand, with back-up cargos being provided by Algeria and the East Coast of the U.S.A. Prices for large,
fully refrigerated cargos of propane are now at $377 per tonne cif Lavera, south of France and butane is at $435 per tonne cif Lavera, with both LPGs having increased from last month by $35 per tonne and $97 per tonne for propane
and butane, respectively.
The Algerian national oil company, Sonatrach, has negotiated new LPG contract prices for September at $265 per tonne fob Bethouia and Skikda for propane and at $285 per tonne fob Bethouia for butane, with both prices weakening by $30 per tonne and $15 per tonne from the start of this month. The Saudi Arabians have posted new LPG contract prices for September at $315 per tonne fob Middle Eastern (ME) terminals for propane and at $345 per tonne fob ME terminals for butane, with both prices having softened by $50 per tonne for propane and $55 per tonne for butane. In the Far East, firmer buying interest materialized, especially from China-based buyers and with a substantial
increase in window trading activity.
Despite recovering 7.7% to (U.S.) $46 a barrel, the price of oil is still 60% below its five-year high of last June of $115 a barrel. Firms have had to cut costs, abandon projects, and lay off staff to cope. The North Sea is a mature oil area and many larger companies have decided to sell their assets to smaller companies that can make money from the assets there.
In northwest Europe, the propane and butane markets appear to be well balanced with product demand meeting production levels. Propane prices for large, fully refrigerated cargos are now at $297 per tonne cif Amsterdam/Rotterdam/Antwerp (ARA), some $10 per tonne higher than a month ago. Refrigerated butane prices have also increased by $33 per tonne from the end of August to $314 per tonne cif northwest Europe.
The smaller pressure propane and butane sectors of the markets have generally been quiet since the beginning of September. The latest indications of propane swap deals are October 2015 $324-$328 and November 2015 $322-$326, both per tonne cif northwest Europe.
North Sea prices for September are at $240 per tonne fob North Sea terminals for prpane and at $352 per tonne fob North Sea terminals for butane, with propane having softened by $53.5 per tonne and butane hardening by $115 per tonne since the end of last month.
In the Mediterranean, spot activity on both grades of LPG remains low. Contractual cargos have been covering the summer demand, with back-up cargos being provided by Algeria and the East Coast of the U.S.A. Prices for large,
fully refrigerated cargos of propane are now at $377 per tonne cif Lavera, south of France and butane is at $435 per tonne cif Lavera, with both LPGs having increased from last month by $35 per tonne and $97 per tonne for propane
and butane, respectively.
The Algerian national oil company, Sonatrach, has negotiated new LPG contract prices for September at $265 per tonne fob Bethouia and Skikda for propane and at $285 per tonne fob Bethouia for butane, with both prices weakening by $30 per tonne and $15 per tonne from the start of this month. The Saudi Arabians have posted new LPG contract prices for September at $315 per tonne fob Middle Eastern (ME) terminals for propane and at $345 per tonne fob ME terminals for butane, with both prices having softened by $50 per tonne for propane and $55 per tonne for butane. In the Far East, firmer buying interest materialized, especially from China-based buyers and with a substantial
increase in window trading activity.
