Blackstone Teams Up With Brazilian Partner To Buy $6B Gas Pipeline

The Blackstone Group teamed up with a Brazilian partner to bid on a deal to operate a natural gas pipeline network in the South American country’s northeast, according to a new report by Bloomberg. Blackstone and Patria Investimentos formed a partnership to make a non-binding offer on the company. Three other groups made similar moves, according to anonymous sources. Mubadala Development and EIG Global Energy Partners made an offer to purchase a 90 percent stake in Transportadora Associada de Gas. French Engie and its consortium made another…

China Needs New LNG Import Terminals To Keep Up With Demand

China needs new LNG import terminals so that the import pace can keep up with rising demand, according to a new report by S&P Global Platts.    Capacity at northern and eastern terminals is currently at 130 percent despite high prices from rising winter demand. Chinese players told Platts they were cautious about authorizing new shipments since the import terminals had reached bottlenecks and other constraints. “There’s a limit to how much [LNG cargoes] the companies can import, with their northern receiving terminals already running…

U.S. Output Hits All-Time High

Government data indicates American output hit an all-time high last week, signaling the resilience of North American drilling as oil prices begin another recovery. The U.S. produced 9.62 million barrels of oil per day through November 3rd, the Energy Information Administration (EIA) said today, overtaking the previous high that occurred back in June 2015. The agency’s Petroleum Status Report from last week said exports hit an all-time high at two million bpd as well. The combined effect of the reports sent West Texas Intermediate…

Oil Tycoons Make Billions In Saudi Purge

Oil tycoons are applauding Saudi Arabia’s recent anti-corruption raid, which has boosted the net worth of the world’s 21 largest oil tycoons by $1.4 billion, according to Bloomberg. The boost came on the back of increased crude prices as reports of the arrests emerged. The net worth of Saudi investor Prince Alwaleed bin Talal, on the other hand—one of the arrested princes—sunk to its lowest level in 5.5 years. His biggest asset, the Kingdom Holding Co., took most of the losses. The Bloomberg index of billionaires dropped…

Goldman’s Venezuelan “Hunger Bonds” Deal Backfires

The $2.8 billion Venezuelan bond deal made by Goldman Sachs, which brought the bank harsh criticism from its peers and activists, is now making the Wall Street major a loss as the price of the bonds plunge. Goldman bought the 2022-maturing bonds from the state-run PDVSA for 31 cents on the dollar earlier this year in what seemed like a bargain at the time. But Caracas’ opposition-controlled Congress condemned the purchase, dubbing the “hunger bonds” as a scheme to make a “quick buck off the suffering of the Venezuelan people.” …

Goldman’s Venezuelan “Hunger Bonds” Deal Backfires

The $2.8 billion Venezuelan bond deal made by Goldman Sachs, which brought the bank harsh criticism from its peers and activists, is now making the Wall Street major a loss as the price of the bonds plunge. Goldman bought the 2022-maturing bonds from the state-run PDVSA for 31 cents on the dollar earlier this year in what seemed like a bargain at the time. But Caracas’ opposition-controlled Congress condemned the purchase, dubbing the “hunger bonds” as a scheme to make a “quick buck off the suffering of the Venezuelan people.” …

OPEC Prepares For Peak Oil Demand In Late-2030s

Oil demand could peak in the 2030s if the electric car boom proceeds as promised by the world’s green energy innovators, according to OPEC. The annual release of the bloc’s World Oil Outlook points out that if just a quarter of the world’s cars run fully on batteries, demand would plateau at 109 million barrels per day between 2035 and 2040. “It is highly unlikely that electric vehicles will penetrate the passenger car segment with this strength in less than 24 years,” according to the report published on Tuesday.…

Italy May Sell Eni Stake To Pay Off National Debt

Italy could soon sell its stake in Eni to pay down debts, a source close to the matter told reporters on Monday. The price of the stake in Eni has yet to be determined, and officials from Rome have declined to comment on the proposal. The Italian Treasury owns 4.34 percent of Eni. “The idea is to get as much as possible as soon as possible, to cut the public debt causing the least possible political impact,” the source said. Italy’s financial goal for 2017 involved raising 3.4 billion euros to pay off public debt, an amount totaling to 130…

U.S. Oil Refiners Look To IRS For Major Tax Credit

Refiners in the U.S. are contemplating a claim that the addition of butane to gasoline qualifies for a US$0.50 per-gallon tax credit. The liquefied petroleum gas was defined as an alternative fuel under a now-expired 2008 law aimed at promoting cleaner fuels and, according to two attorneys as quoted by Bloomberg, refiners are still entitled to their tax credit under that law. Butane is used as additive to gasoline during the winter months to comply with government regulation about pollution-causing emissions. The Internal Revenue System considers…

Nigeria To Back OPEC Extension If Conditions Are Favorable

Nigeria would back an extension of OPEC’s production cut deal to the end of 2018 “as long as the right terms are on the table” relative to Abuja’s planned economic recovery, Oil Minister Emmanuel Ibe Kachikwu said, according to a report by Reuters. “There isn’t any reason to change what is a winning formula,” Kachikwu said, adding “there is a consensus to extend. The issue will be the duration.” So far, the bloc and ten other producers have agreed to extend the agreement through next March.…