Wedoany.com Report-Nov 15, Trafigura Group Pte. Ltd., has signed a long-term natural gas agreement with NuVista Energy Ltd., a leading producer of condensate-rich natural gas in the Montney formation in the Alberta Deep Basin, Canada.
Under the agreement, NuVista will supply 21,000 million British thermal units per day of natural gas to Trafigura with the purchase price indexed to the Japan Korea Marker (JKM) for a period of up to thirteen years beginning January 1, 2027.
This agreement “will support the growth of Trafigura’s natural gas business and further grow the company’s role in ensuring security of energy supply for customers worldwide,” it said in a news release.
NuVista CEO Jonathan Wright said, “For over a decade of growth, we have prioritized ensuring significant diversity in our North American natural gas sales locations to maximize returns on our condensate-rich natural gas. We are extremely pleased to now make our first entry to the world LNG [liquefied natural gas] markets with this long-term agreement with Trafigura, one of the world’s leading LNG, energy and commodities groups”.
Igor Marin, Global Head of Gas, Power and Renewables for Trafigura, said, “We’re delighted to be entering into a long-term offtake agreement with NuVista which has become a leading E&P producer in the Alberta Deep Basin. Canada’s gas producers are now creating an important new connection to [the] global LNG markets. The signing of our first agreement with NuVista reinforces our dedication to these markets and to the growth of our long-term portfolio. It also showcases our capability to supply customers globally, helping them to navigate market fluctuations and ensuring reliability, adaptability and energy stability”.
Meanwhile, Rhône Energies, a consortium composed of Entara LLC and Trafigura Pte Ltd. has completed the acquisition of the Fos-sur-Mer refinery and the Toulouse and Villette-de-Vienne terminals in southern France from Esso.
As the new owner, Rhône Energies will “oversee the full range of operations at the Fos-sur-Mer site including maintenance, asset integrity, and commercial activities, while prioritizing health, safety and environmental performance alongside ongoing social dialogue,” Trafigura said in a separate news release.
Rhone Energies CEO Nicholas Myerson and COO Derek Becht have appointed Hervé Fonlupt, former Operations Manager with Esso, as the general manager of the refinery. With 30 years of experience in the energy industry, Hervé will lead daily alongside a dedicated plant leadership team.
Myerson said, “We are delighted that the acquisition process has been successfully finalized. We are grateful for the open and constructive discussions over the past few months with both local and national authorities and are proud to welcome the refinery’s workforce to Rhône Energies. With this acquisition we join an impressive industrial ecosystem in Fos-sur-Mer where we aim to build upon the strong track record of operational excellence by developing capabilities to lead the refinery through the energy transition, while maintaining our strong commitment to meeting the energy demands of the region”.
Fonlupt said, “It is a privilege to be taking on the leadership of this site and to continue working with its highly skilled team. I believe Rhône Energies is the right partner to support the refinery in the next phase of its development. Now that the transition is complete, we are eager to embark on a new chapter while upholding our high standards of industrial, safety and environmental excellence”.
According to the release, the Fos-sur-Mer refinery is a historic site that has contributed to providing secure and affordable energy to the region since operations commenced in 1965. With a crude oil processing capacity of 140 thousand barrels per day, Fos-sur-Mer benefits from direct access to a major port and plays a significant role in producing petroleum products for distribution to the French domestic market.
Trafigura announced exclusive negotiations for the acquisition of the assets in April. Earlier, Rhône Energies said it intends to invest in the sustainability of the site to reduce its carbon intensity footprint while also investing in growth projects enabling further co-processing of biogenic feedstocks to produce renewable fuels.
