Latest news with #VitolGroup
Bloomberg
5 days ago
- Business
- Bloomberg
Egypt Plans to Finalize Large LNG Purchase Deals Over Next Week
Egypt has indicated that it plans to in the coming week finalize some purchases of liquefied natural gas for delivery over the next few years, as the country deepens its dependence on imports. The government is in the final process to strike deals with as many as six companies — including Saudi Aramco, Trafigura Group and Vitol Group — to buy cargoes through June 2026, according to people with knowledge of the matter who asked not to be identified. It could buy more than 160 shipments for that period, the people said.
Morocco World
7 days ago
- Business
- Morocco World
Abuja Seeks Investors for $25 Billion Morocco-Nigeria Gas Pipeline Project
Doha – Nigeria's government is actively courting international investors for the $25 billion Nigeria-Morocco gas pipeline project, a key infrastructure initiative to supply natural gas to European markets. According to Nigerian media, Vice President Kashim Shettima met with representatives from Vitol Group, the world's largest independent energy trader based in Switzerland, at the Presidential Villa in Abuja on Monday. During the meeting, Shettima stressed President Bola Tinubu's commitment to economic reforms aimed at making Nigeria an attractive investment destination in the energy sector. The vice president noted the president's 'courage to take far-reaching decisions,' including the removal of fuel subsidies, unification of multiple exchange rates, and implementation of tax reforms. The ambitious pipeline project, which spans 5,660 kilometers, aims to deliver Nigerian gas through an undersea route along the West African coast to Morocco and eventually to European markets. The infrastructure is designed to supply energy to approximately 400 million people across 13 African countries with an annual gas capacity between 15 and 30 billion cubic meters. 'We are seriously exploring the option of taking our gas to Europe. It is an expensive venture requiring about $25 billion and, of course, the technical expertise,' Shettima stated during the meeting. He added that Nigeria values Vitol's technical expertise as much as potential financial investment. Shettima described Nigeria's gas sector as 'a beacon of stability and transparency' and noted the country possesses the eighth-largest gas reserves in the world. He urged Vitol to participate in Nigeria's energy transition program and leverage their dominance in the Liquefied Natural Gas (LNG) and Associated Petroleum Gas (APG) sub-sectors. The gas pipeline tops President Tinubu's priorities The project has been identified as a priority by President Tinubu's administration. Senator Jimoh Ibrahim announced this commitment during the executive session of the African Parliament Union in Casablanca last month. According to Ibrahim, the project is expected to create thousands of jobs, boost industrial and digital development, and contribute to a sustainable energy future for participating countries. Morocco's Energy Transition Minister Leila Benali confirmed in mid-May that feasibility and preliminary engineering studies have been completed and the optimal route determined. 'A special-purpose company is currently being established between Morocco and Nigeria to make the final investment decision by the end of the current year,' Benali told Morocco's Upper House. The project has attracted major international interest. The United Arab Emirates (UAE), European Investment Bank, Islamic Development Bank, and OPEC Fund have agreed to contribute funding. China's Jingye Steel Group has secured a contract to supply pipes for construction. The United States has also expressed interest in investing in the initiative, particularly given Nigeria's vast gas reserves. The pipeline project originated during King Mohammed VI's state visit to Nigeria in December 2016. Though the Final Investment Decision was initially planned for 2023, it has been postponed to 2025, reflecting the project's complexity and scale. Morocco will host 1,672 kilometers of the pipeline, which will pass through Nigeria, Benin, Togo, Ghana, Ivory Coast, Liberia, Sierra Leone, Guinea, Guinea-Bissau, Gambia, Senegal, and Mauritania before reaching Morocco. The North African country has already launched a tender to develop national natural gas infrastructure connecting Nador port to Kenitra and Mohammedia, extending to Dakhla to link with the Africa-Atlantic Gas Pipeline. Jeffrey Dellapina, Chief Financial Officer of Vitol Group, voiced his company's long-term commitment to Nigeria during the meeting with the vice president. 'This has been an incredibly close and important country for Vitol for a very long time,' Dellapina said, continuing that Vitol is 'committed to this country' and wants to 'evolve with you.' Read also: Kano, Nigeria Seeks to Attract Multi-Billion-Dollar Energy Investment from Morocco Tags: Morocco-Nigerian pipeline project
Ya Biladi
03-06-2025
- Business
- Ya Biladi
Abuja seeks investors for $25 billion Nigeria-Morocco gas pipeline project
On Monday, Nigeria's federal government announced it is actively seeking international investors for the $25 billion Nigeria-Morocco gas pipeline project, designed to supply gas to Europe via Morocco. Speaking at a meeting with Swiss-based Dutch multinational energy and commodity trading company Vitol Group, Nigeria's Vice President Kashim Shettima urged global investors to «mobilize resources and join us in this transparent project». «We hold the world's eighth-largest gas reserves and aim to fully harness their potential due to the stability and transparency of the gas sector. This is why we are seriously exploring the export of gas to Europe via this undersea pipeline—a costly $25 billion project that requires technical expertise more than money», Shettima said. «Nigeria has been a crucial country for Vitol. We have been involved in financing, trading, and supporting government initiatives. Vitol is committed and ready to deploy capital when needed», Jeffrey Dellapina, Vitol's CFO and delegation leader, promised. The Nigeria-Morocco gas pipeline remains a top priority for the Nigerian government. In May, President Bola Tinubu reaffirmed the project's significance, calling it a «top priority». It is worth noting that the project is gaining momentum with recent substantial funding support from the United Arab Emirates. Other major financiers include the European Investment Bank, the Islamic Development Bank, and the OPEC Fund. Chinese company Jingye Steel has secured the contract to supply materials for the pipeline. The United States has also expressed interest in investing. Morocco has completed feasibility and engineering studies for the 5,660 km pipeline, which will pass through 13 African countries. First gas deliveries are expected by 2029. A joint venture between Rabat and Abuja has been established to oversee the project's implementation.
Bloomberg
25-04-2025
- Business
- Bloomberg
Vitol Steps Up Venezuela Crude Buying Before US License Expires
Vitol Group has stepped up oil purchases in Venezuela in the final weeks of a US license that allows the world's largest independent oil trader to do business in the sanctioned nation. Vitol is set to load at least 2.5 million barrels of Venezuelan oil this month, according to documents seen by Bloomberg. It has more than doubled buying in April compared with March, when it took 1 million barrels, the data shows. Vitol's license to operate in Venezuela hasn't been previously reported.
Yahoo
30-03-2025
- Business
- Yahoo
Europe Gas Sector Enters Crucial Period After Winter Sapped Stocks
(Bloomberg) -- Europe's gas sector is entering a crucial few months as the end of the heating season starts the clock ticking to fill storage facilities that are emerging from winter two-thirds empty. Gold-Rush Fever Returns to Historic New Zealand Mining Town What Frank Lloyd Wright Learned From the Desert How SUVs Are Making Traffic Worse Bank Regulators Fight for Desks as OCC Returns to New York Tower These US Bridges Face High Risk of Catastrophic Ship Strikes Normally, traders can be expected to play a key role in refilling inventories because fuel is typically cheaper in summer, allowing them to turn a profit by storing large volumes, ready to sell when demand rises again next heating season. But this year is far from normal. The first really cold winter since Europe lost most of its piped supplies from Russia has depleted reserves faster than usual, and was further exacerbated when remaining flows through Ukraine came to a halt in January. The tightened market has driven summer gas prices persistently higher than those for next winter, which – crucially – removes the financial incentive for storage trades. One key question is what role governments will play to ensure the facilities are refilled — and at what cost. Of course, there's still plenty of time before next winter arrives. But traders say the first few weeks of April will provide an indication of whether the various market participants are ready to start reinjecting gas despite the potentially unprofitable price structure, or if they intend to play a waiting game. 'Some solution needs to be found in the short term to get storage injections started even though the prices are inverted today,' said Russell Hardy, chief executive officer of energy trading giant Vitol Group. There's a debate in the market over 'who is going to perform this task,' he added. The stakes are high: Going into winter without storage nearly full would leave the region exposed to intense prices spikes if it's hit with extra cold weather or other unexpected factors. European Commission rules stipulate that storage sites need to be 90% full by Nov. 1. However, recent proposals and discussions about flexibility on the timing of the targets have created huge uncertainty about how the rules will be implemented, sending prices swinging and keeping traders guessing. Benchmark futures have retreated in recent weeks amid speculation that the refilling targets may be loosened, as well as optimism for a ceasefire in Ukraine. In fact, if the war were to end soon and lead to a return of some flows from Russia, prices would likely drop, but such a prospect seems distant. For now, gas prices are roughly 50% higher than a year ago — at just over €40 a megawatt-hour — and will probably need to remain at current levels or higher to attract enough liquefied natural gas during the summer, Hardy said. If Europe is lucky, Chinese demand for fuel will remain weak in the coming months and give Europe a better shot at attracting shipments. BloombergNEF expects Chinese purchases to fall this year for the first time since 2022. But Europe will still have to pay up to keep attracting cargoes. Should prices fall closer to $12 per million British thermal units — about a $1 lower than where they are now — LNG would flow to Asia, where buyers are more price sensitive, according to Hardy. High enough prices could help draw in more seaborne supplies to eliminate the seasonal spread, with prices for the first few winter months already starting to normalize a bit. An additional challenge is that Ukraine also needs to import up to five times more gas than in previous seasons this year after fighting damaged a lot of its infrastructure. Governments will face a tricky tradeoff if injections proceed too slowly. Acting too late could result in the region not building up a sufficient fuel buffer, or having to spend huge amounts of money to get supplies — as Germany did in 2022. But interventions also risk jolting the market further. Germany's gas market manager shocked traders in January when it presented a proposal to subsidize unprofitable storage deals — a move that drove summer prices dramatically higher. Two months later, it has yet to clarify how or whether it plans to proceed. Meanwhile, Italy brought forward its gas storage auctions to as early as February. What Bloomberg Intelligence Says: 'European storage levels will reach about 87% full by Nov. 1, according to Bloomberg Intelligence's base case scenario which assumes no return of Russian flows via Ukraine, LNG imports rising by at least 40% on year this summer, and no changes to storage targets.' — Patricio Alvarez, senior analyst A warm spring — as is currently forecast — could help injections pick up, as could signals from Brussels that it will apply a more flexible approach to storage rules, which some EU member states are pushing for. 'The key question is whether there will be a change in regulation and if this is the case, how much time there will be to react to such a change,' said Marco Saalfrank, head of continental Europe merchant trading at Swiss utility and trader Axpo Holding AG. If a change is only communicated around mid year, 'there will be just a few months to inject, which could have an impact on prices.' --With assistance from John Ainger, Ewa Krukowska, Eva Brendel, Tom Fevrier, Joe Wertz and Archie Hunter. Trump's IRS Cuts Are Tempting Taxpayers to Cheat Google Is Searching for an Answer to ChatGPT Israel Aims to Be the World's Arms Dealer Business Schools Are Back How a US Maker of Rat-Proof Trash Bins Got Boxed in by Trump's Tariffs ©2025 Bloomberg L.P.
