Freeport LNG Planning On Year-End Restart
FreeportLNG is planning on restarting its liquefaction facility by year end, the company told Oilprice on Wednesday, despite FERC’s new list of regulatory demands. “We are in the process of reviewing the data received December 12 from the Federal Energy Regulatory Commission (FERC) and we are developing responsive documentation,” a spokeperson for FreeportLNG said in a statement to Oilprice, adding that the company was continuing to work towards the initial restart of its liquefaction facility at year end, “provided we obtain the necessary regulatory approvals required for the restart of our facility.” FreeportLNG said that it continues to work collaboratively with regulatory agencies. In August, Freeport targeted an initial production date of sometime in November, but that date was later pushed back. Freeport’s November update said it was targeting initial production from the facility sometime in mid-December, with full production not expected until March 2023. But U.S. energy regulator FERC notified Freeport this week of a long list of 64 conditions that had to be met before it could approve the restart. The 15 million tonne-per-year export terminal has been offline since June after suffering damage from an explosion caused by “isolation of a piping segment containing cryogenic LNG without proper overpressure protection, which LNG then warmed and expanded due to exposure to ambient conditions, resulting in a boiling liquid, expanding vapor explosion…and the rupturing of the piping segment,” according to a Freeport statement from earlier this month. The Freeport closure has been hard on Europe, which has acutely felt the drop in LNG exports as it tries to wean itself off Russia while preparing for this winter’s heating season. But Europe saw some natural gas price relief earlier this week, with a 9% price slump, as LNG imports rose along with increasing nuclear output from France. Germany’s first floating LNG terminal should start flows on December 22, further alleviating Europe’s gas crunch
Ukrainian FM Dmytro Kuleba blames India for purchasing cheap Russian oil, says it should extensively help Ukraine as a ‘balancing’
Days after India’s decision to not support the price cap on Russian oil announced by the G7 countries and their allies, Dmytro Kuleba, the Foreign Minister of Ukraine tried to blame India for purchasing Russian oil at the expense of the sufferings of common Ukrainians. “You enjoy the benefit of cheap Russian oil because someone in Ukraine is dying due to Russian aggression,” he said on Tuesday. The Ukraine Minister also asked its Indian partners to extensively help the country as a ‘balancing act’ if they wish to continue to buy Russian oil at cheap prices. “Every country has a right about what to do for its economy to benefit. But the message that we are conveying to our Indian partners is very simple. You have the opportunity to buy cheap Russian oil. Russia is selling you cheap oil because it stands under enormous pressure from sanctions and other types of pressure. And the reason is its aggression against Ukraine,” the Foreign Minister said. “If you take this element into account and continue to buy Russian oil then as a balancing act you begin to support Ukraine more heavily in a more extensive way because you understand that you enjoy the benefit of buying cheap Russian oil because someone in Ukraine is dying,” he added, the video of which was shared by journalist Sidhant Sibal on Twitter. On December 11, Russia happened to welcome India’s decision to not support the price cap on Russian oil announced by the G7 countries and their allies. According to the reports, the price cap on Russian oil was imposed on December 5 by the G7 countries and their allies. the Group of Seven major nations, the European Union, and Australia agreed to a $60 per barrel price ceiling on Russian seaborne crude oil after EU members overcame Poland’s opposition. The price limitation aims to limit Russia’s earnings as punishment for its war on Ukraine while ensuring Moscow continues to supply the global market. In an obvious reaction, Russia rejected the oil price ceiling and warned the West of retaliation. India meanwhile reiterated that it will continue to purchase oil from Russia with Moscow assuring that it will directly negotiate with its crude buyers. Hardeep Singh Puri, India’s Union Minister for Petroleum and Natural Gas also stated that India’s oil import from Russia is very limited and that India now sources oil from 39 countries including Iraq, Saudi Arabia, and UAE, and is also exploring trade possibilities in Africa.
India may get Russia oil at below $60 per barrel
Indian refiners may be able to source most of their Russian oil purchases at a rate lower than the West’s price cap of $60 after international prices fell. India hasn’t backed the price cap and may yet end up paying lower rates since Russia can’t defy the market or reduce discounts to sell at rates higher than the cap, Indian industry executives said. The flagship Urals crude, which made up 80% of India’s Russian oil imports in November, is trading at around $49 per barrel while ESPO blend and Sokol are trading at around $62 and $69 per barrel, respectively. Multiple government officials and industry executives said domestic refineries will continue to buy cheap Russian oil with no major shipping or insurance trouble expected as the market rate for the key grade has fallen below the cap. The US and its allies have barred the use of its shipping, insurance and financial services for any Russian oil deal struck above the cap of $60. “The price cap looks more like a posturing. Even the West may not want Russian oil to go off the market,” said MK Surana, the CEO of Ratnagiri Refinery and Petrochemicals and former chairman of HPCL.