2024.07.26

Trans Mountain Pipeline Remains Safe Amid Wildfire in Jasper, Alberta; 25,000 Evacuated

The Trans Mountain Pipeline has confirmed that its infrastructure remains undamaged and is operating safely after a wildfire reached Jasper, Alberta. The company is collaborating with the Town of Jasper and Jasper National Park to monitor the situation. The pipeline, with a capacity of 890,000 barrels per day, runs from Edmonton to Vancouver and passes near Jasper. Due to the wildfire, approximately 25,000 people were evacuated from the town on Tuesday amidst widespread fires in Alberta and British Columbia.

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Iran Releases Oil Cargo from Seized Tanker St Nikolas, Vessel Still Held

Iran has released the oil cargo from the Greek-owned, Marshall-Islands-flagged tanker St. Nikolas, which it seized earlier this year in the Gulf of Oman. The tanker, carrying 1 million barrels of Iraqi crude oil destined for Turkey, remains in Iranian custody. The oil was transferred to the Turkey-flagged tanker T. Semahat via a ship-to-ship transfer near Iran’s Larak Island between July 23-25, 2024. The crude oil, purchased by Turkish refiner Tupras from the Iraqi state oil company SOMO, is now en route to a Turkish refinery, expected to arrive in September. Iran had seized the St. Nikolas in January in retaliation for a previous U.S. confiscation of the same vessel and its oil.

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Tanker Giant Bahri in Advanced Talks for First Chinese-Built VLCCs

Saudi Arabian tanker giant Bahri is reportedly in advanced negotiations to order its first series of Chinese-built Very Large Crude Carriers (VLCCs) from Dalian Shipbuilding Industry Co. Bahri, which traditionally sources its fleet from South Korean shipyards, is considering four 307,000-dwt crude carriers. This potential order would mark a significant departure from its usual practice, as all of Bahri’s 39 VLCCs were built by top South Korean shipyards. The deal, still pending finalization, includes 2026 and 2027 delivery slots. This move follows Bahri's recent acquisition of four secondhand VLCCs and its support for the new International Maritime Industries shipyard, where it plans to build around 20 VLCCs. The new Chinese-built VLCCs are expected to cost more than recent orders due to rising newbuilding prices and high demand.

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Thenamaris Sells Two Oldest Tankers for Over $60M

Thenamaris has sold its two oldest tankers, the 105,300-dwt Isabella and the 115,600-dwt Seaqueen, for over $60 million to eliminate vessels older than 20 years from its fleet. These were Thenamaris' first tanker sales in 2024. The Isabella, built in 2004 and acquired from HD Hyundai Samho, sold for around $30.5 million and now operates as Lebre under a Seychelles-based company. The Seaqueen, also built in 2004 and purchased from Finaval in 2007, sold for about $36 million and is now named Victory under a Liberia-based company. Since early 2022, Thenamaris and Tsakos Energy Navigation (TEN) have sold 32 tankers worth approximately $1.1 billion, using the proceeds to fund newbuilding programs. Thenamaris has 46 tankers and has ordered 10 more since 2022, valued at $610 million, while TEN has ordered 16 new tankers since 2021, worth over $1.2 billion.

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European Oil Refiners Face Declining Profits Amid Weak Demand and Increased Competition

European oil refiners TotalEnergies and Neste reported anticipated declines in profit margins due to reduced demand, signaling an end to the high profits seen after Russia's invasion of Ukraine. TotalEnergies experienced a 34% drop in quarterly operating income for its refining and chemicals business, with its European refining margin marker decreasing by 37% in the second quarter. The European refining sector, previously boosted by the EU's ban on Russian oil imports, is now facing renewed pressure due to new refineries in Africa and the Middle East and slower economic activity in Europe. TotalEnergies expects this pressure to continue into the third quarter. Similarly, BP, Shell, and Exxon Mobil have also warned of weaker refining margins affecting their upcoming second-quarter results.

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Saudi Arabia Turns to Kuwait for Fuel Oil to Meet Summer Demand

In a rare move, Saudi Arabia imported over 180,000 metric tons of high sulphur fuel oil (HSFO) from Kuwait in July to meet peak summer power demand, marking the first such purchase since May 2022. This shift comes as discounted Russian fuel oil supplies decreased, with Saudi imports from Russia falling to about 441,000 tons in July from nearly 750,000 tons the previous year. The trend is expected to continue in August, with Aramco Trading securing a tender for 130,000 tons of very low sulphur fuel oil (VLSFO) from Kuwait’s Al Zour refinery. Increased competition from China and India for Russian HSFO and refinery maintenance at SASREF are factors influencing Saudi Arabia’s need for alternative suppliers like Kuwait.