Fleet Development, Renovation, Major Priority of Iran Shipping Firm
The head of the Islamic Republic of Iran Shipping Lines (IRISL) has said developing and renovating the shipping fleet is a major priority of the company, IRIB reported.
“We are trying to add new ships to the fleet through both domestic and foreign companies in order to bring the average age of the fleet below 10 years,” Mohammadreza Modares Khiabani said.
According to Modares Khiabani, IRISL is ranked 18th among the world's largest shipping companies and ranks 22nd among the Iran’s top 100 companies based on the evaluation of the Industrial Management Organization. - Tehran Times
06/10/2024
Iran Oil Tankers Flee Biggest Export Terminal
Iranian oil tankers have moved away from Kharg Island, Iran’s biggest oil export terminal, amid fears of an imminent Israeli attack on the most important crude export infrastructure in Iran.
Satellite images and tanker tracking companies have detected the major exodus of Iranian tankers away from Kharg Island, which handles about 90% of Iran’s all oil exports, CNBC reports.
“The National Iranian Tanker Company (NITC) appears to be fearing an imminent attack by Israel,” TankerTrackers.com posted on social media platform X late on Thursday.
“Their empty VLCC supertankers vacated the country's largest oil terminal, Kharg Island, yesterday,” TankerTrackers.com said.
The vessel-tracking service noted that “crude oil loadings continue, but all of the extra vacant shipping capacity has been removed from the anchorage of Kharg Island.”
“This is the first time we see anything like this since the 2018 sanctions round,” TankerTrackers.com said.
Satellite imagery captured two weeks ago by the European Space Agency’s Copernicus Sentinel-1 mission showed a number of very large crude carriers in the waters around Kharg Island, CNBC says.
But satellite images of the same area from October 3 showed that no tankers can be seen around Iran’s most important oil export terminal, according to CNBC.
The removal of vacant shipping capacity from Kharg Island suggests that Iran could be bracing for an Israeli attack on its oil infrastructure.
The oil market is also awaiting the Israeli response to the Iranian missile attack on Israel earlier this week. Oil prices were up by 1.5% early on Friday and on track for a strong weekly gain amid reignited tensions in the Middle East.
Most analysts say that the OPEC spare capacity, concentrated in Saudi Arabia and the UAE, would be enough to compensate for an Iranian loss of supply.
An even more significant disruption to supply from the Middle East could lead to triple-digit oil prices. But analysts currently believe attacks on oil infrastructure in other producers in the region or the closure of the Strait of Hormuz are low-probability events. - Oil Price
06/10/2024
Airlines Avoid Iranian Airspace
Airlines are largely avoiding Iranian airspace in their flights over the Middle East, according to flight tracker FlightRadar24, lengthening flight times and hiking up fuel costs as worries over a retaliatory attack from Israel targeting Iran grow.
Turmoil in the Middle East in the last year has led to confusion and upheaval for aviation, prompting airlines to frequently change routes as they reassess the safety of the airspace in the region.
"Most airlines have rerouted flights away from Iran, with the northern route taking flights through Azerbaijan, Turkmenistan, Afghanistan, Pakistan and India on their way to Asia, and the southern route flying over Egypt and Saudi Arabia," said FlightRadar24 spokesperson Ian Petchenik.
Some airlines have said they have resumed most of their operations across the Middle East since Iran hit Israel with a ballistic missile attack on Tuesday, leading to flight cancellations and delays.
Petchenik said most strategic changes to flights to avoid parts of the Middle East have been lifted in direct connection with the Tuesday attack.
Late on Wednesday, German group Lufthansa said it would resume flights to Erbil in Iraqi Kurdistan using a limited amount of Iraqi airspace, and will resume using Jordanian airspace on Thursday.
It added that flights to Tel Aviv, Beirut and Tehran will remain suspended for the time being. - Reuters
06/10/2024
Biden Advises Alternatives to Striking Iranian Oil
President Joe Biden said on Friday he would think about alternatives to striking Iranian oil fields if he were in Israel's shoes, adding he thinks Israel has not yet concluded how to respond to Iran.
"The Israelis have not concluded what they are going to do in terms of a strike. That's under discussion," Biden said in remarks to reporters at a White House press briefing. "If I were in their shoes, I'd be thinking about other alternatives than striking oilfields," the president added.
Tensions between Iran and Israel have been high as Israel has been weighing options to respond to Tehran's ballistic missile attack on Tuesday, which Iran had carried out in response to Israel's military action in Lebanon.
Biden was also asked if he thought that by not engaging in diplomacy, Israeli Prime Minister Benjamin Netanyahu was trying to influence the Nov. 5 U.S. election in which Republican former President Donald Trump faces Democratic Vice President Kamala Harris.
"Whether he is trying to influence the election, I don't know but I am not counting on that," Biden said in response. "No administration has done more to help Israel than I have."
The latest bloodshed in the decades-old Israeli-Palestinian conflict was triggered by Palestinian Hamas militants' Oct. 7, 2023, attack that killed 1,200 and in which about 250 were taken as hostages, according to Israeli tallies.
Israel's subsequent assault on Hamas-governed Gaza has killed over 41,000 Palestinians, according to Gaza's health ministry, and displaced nearly Gaza's entire population, caused a hunger crisis and led to genocide allegations that Israel denies.
Israel's recent military action in Lebanon has killed hundreds, wounded thousands and displaced over a million. Israel says it is targeting Lebanese Iran-backed Hezbollah militants. - Reuters
06/10/2024
Goldman Eyes Brent Outlook Rise Due to Iranian Supply Risks
Goldman Sachs said on Friday that it expects its Brent price forecast to peak US$10-US$20 per barrel in 2025 due to potential disruptions in Iranian production.
Israel has sworn to strike Iran for launching a barrage of missiles at Israel on Tuesday after Israel assassinated the leader of Iran-backed Hezbollah a week ago. The events have increased fears of the potential for a broader war in the Middle East, helping oil prices to post their biggest weekly gains in over a year this week.
"Assuming a two million barrels per day six-month disruption to Iran supply, we estimate that Brent could temporarily rise to a peak of US$90 if OPEC rapidly offsets the shortfall, and a 2025 peak in the mid US$90s without an OPEC offset," analysts at Goldman Sachs said in a note.
"Assuming a one million barrels per day persistent disruption to Iran supply, reflecting for instance a tightening in sanctions enforcement, we estimate that Brent could reach a peak in the mid US$80s if OPEC gradually offsets the shortfall," the bank said.
However, Goldman continues to expect Brent to trade in the US$70-US$85 range, and forecast an average price of US$77 per barrel for the fourth quarter of 2024 and US$76 per barrel for 2025 in case of no major supply disruption. - Reuters
06/10/2024
Egypt's Petroleum Ministry Explores New Investments with ExxonMobil
Ministry of Petroleum and Mineral Resources is exploring new investment opportunities as well as seeking to bolster natural gas exploration efforts with ExxonMobil, as per a statement.
During his current visit to the UK, petroleum minister Karim Badawi held talks with ExxonMobil’s Vice President of Research and Exploration John Ardell to discuss these opportunities in Egypt’s natural gas and oil exploration.
Badawi highlighted a series of new investment opportunities available to international companies, including the recently launched global bid by the Egyptian Natural Gas Holding Company (EGAS).
This bid round covers 12 exploration blocks in the Mediterranean and Nile Delta regions.
The minister also stressed that the Egypt Upstream Gateway (EUG) offers further opportunities in research, exploration, and field development.
ExxonMobil’s ongoing work programs were also reviewed, including the company's plans to drill new exploratory wells in the Mediterranean Sea.
The company has completed seismic surveys in its concession areas, including the North Marakia offshore block and the offshore exploration blocks Cairo and Masry, expressing interest in expanding investments into a new concession in the promising Western Mediterranean region.
06/10/2024
Egypt to Import 7 LNG Shipments in October
The Egyptian Ministry of Petroleum and Mineral Resources is planning to import seven shipments of liquefied natural gas (LNG) in October to meet the national gas network’s daily requirements, Al Arabiya Business reported, citing a government official.
Of the seven shipments, six will be received at Ain Sokhna Port and gasified on the floating storage regasification unit Hog Gallon.
The seventh shipment will arrive at Aqaba Port in Jordan, where it will be gasified and transported to Egypt.
These shipments are part of a larger contract for 20 LNG shipments set for delivery in the fourth quarter (Q4) of 2024.
Major suppliers, including bp, Shell, Total, and Glencore, are involved in the deal.
The government has prioritized directing gas supplies to Egypt's power plants and energy-intensive industries, the official highlighted.
The Ministry of Petroleum is also exploring the addition of a floating storage and exchange unit at Ain Sokhna and the potential use of liquefaction facilities in Damietta and Idku in reverse, petroleum minister Karim Badawi previously unveiled.
Egypt's daily natural gas consumption is approximately 6.8 billion cubic feet, while domestic production stands at around 4.9 billion cubic feet.
06/10/2024
Rising Global Energy Demand Necessitates More investment: Emirati Minister
Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure, has highlighted the urgent need to increase investments in energy infrastructure to meet the rising global demand, driven by accelerating global changes and the anticipated growth in future oil consumption.
The minister added that the transition to a more sustainable energy future and making the oil & gas sector more environmentally friendly, while reducing emissions from its operations, is a top priority for the United Arab Emirates.
“The UAE recognises that reaching this goal requires investing in new technologies like carbon capture and storage."
The minister explained, during his speech at the 12th Energy Markets Forum, hosted by the Emirate of Fujairah, that ADNOC is a leader in reducing the carbon footprint of its operations.
“This effort supports the UAE’s goal to achieve net-zero emissions by 2050," he said, adding that in today's energy landscape, affordability is equally important as security.
He noted that OPEC+ is actively working to ensure a stable supply and demand equilibrium, thereby fostering investment.
“The UAE takes pride in establishing a model that can be replicated in other countries, starting with the development of the UAE Energy Strategy 2050, which aims to triple the capacity of renewable energy sources by 2030.”
He stressed the importance of the role played by the Emirate of Fujairah in ensuring the smooth flow of energy, as it has developed one of the world’s largest bunkering hubs.
06/10/2024
TCC Sets New Crane Lift Record at Sohar Polysilicon Project
China Third Chemical Construction Company (TCC) celebrated a milestone with the first lift of its 3,200-tonne crawler crane at the United Solar polysilicon project in Sohar Free Trade Zone, Oman. During this operation, the heaviest and tallest Rectification Column of the rectifying unit — an impressive 101 metres in height and weighing 686 tonnes — was successfully installed, marking a new record for TCC’s self-lifting capabilities in the Oman national project. The lift utilized a 3,200-tonne crawler crane as the main crane, supported by a 750-tonne crane for precision. The equipment was expertly transitioned from a horizontal to a vertical position, with the entire process completed in one hour. The TCC team meticulously planned the operation, leveraging their expertise in localization, internationalization, and integration. Both cranes were assembled swiftly, breaking speed records in the process.
This column, equivalent to a 35-story building, is one of 12 oversized components being installed as part of the polysilicon project. The successful lift demonstrated TCC’s technical superiority and team coordination, marking a major milestone in the project’s completion. This achievement also marks the first use of a 3,200-tonne crane in a polysilicon project globally. TCC, the project’s main contractor, is renowned for its efficient project execution, completing key tasks ahead of schedule despite Oman’s challenging summer conditions. The company’s exemplary performance has earned it praise from the project owner and enhanced its reputation as a leading international contractor in Oman’s energy sector. Beyond this project, TCC has contributed to major national projects such as Liwa Plastic (OQ and Duqm Refinery , (OQ-8), showcasing its strong standing in the Omani market. Upon completion, the polysilicon project is expected to drive the development of upstream and downstream industries, contributing to Oman’s clean energy goals and global low-carbon initiatives.
06/10/2024