Page 16 - NorthAmOil Week 45

NorthAmOil PROJECTS & COMPANIES NorthAmOil

ICE signs MoU to consider using Murban

futures for US crude sales to Asia

GLOBAL THE Intercontinental Exchange (ICE) said it had range of cash settled derivatives”, the ICE said.
signed a memorandum of understanding (MoU) These include outright, differential and crack dif-
with US producers Chevron and Occidental ferentials against Brent, WTI, gasoil and naph-
Petroleum, as well as commodity trader Tra- tha among others, as well as inter-commodity
figura, on using the upcoming Murban futures spreads, which will launch alongside Murban
contract to price US crude oil being sent to Asia. futures, according to the statement.
ICE Futures Europe’s president, Stuart Wil- “The Murban Futures Contract is a positive
liams, told the ADIPEC virtual forum this week development in enhancing transparency for oil
that the companies were exploring the use of the markets and very relevant to us as an active par-
UAE-based Murban benchmark as the ICE pre- ticipant in crude oil trading in the Arabian Gulf
pares to launch the futures contract in March. and as the largest exporter of US crude,” Trafig-
It is thought that using the new contract could ura’s head of crude for Asia, Daniel Yuen, said in
give Asian buyers an easier way to hedge against the statement.
physical purchases of US crude oil, also allowing Meanwhile, Oxy Energy Services’ president,
them to avoid using the Brent benchmark for Fred Forthuber, welcomed the upcoming launch
hedging. of the Murban futures contract as a “great step in
“We’re starting to see interest from not just the evolution of the oil market”. Noting that his
Middle East crude exporters to Asia but we’re company was one of the largest exporters of US
seeing other firms, particularly those exporting crude to Asia, he said it looked forward to explor-
light sweet crude, pay attention,” Williams said. ing opportunities to use the new benchmark.
According to a November 10 ICE statement, The US ships more than 3mn barrels per
ICE Murban Crude Oil Futures will be a physi- day (bpd) of crude globally, including to major
cally delivered contract with delivery at Fujairah Asian buyers China, South Korea and Taiwan,
in the UAE on a free-on-board (FOB) basis. ICE having only begun unrestricted crude exports
Murban Futures will be “complemented with a in late 2015.™

ENERGY TRANSITION

Enbridge sets net-zero emissions target

NORTH AMERICA CALGARY-BASED Enbridge has joined the known as Scope 3 emissions. For now, the
growing list of energy companies to adopt a company has said it would address those by
target of net-zero greenhouse gas (GHG) emis- helping suppliers and customers to cut emis-
sions. The company is now aiming to achieve this sions in line with the recommendations of the
by 2050, it announced on November 6, with an United Nations’ Intergovernmental Panel on
intermediate target of reducing emissions inten- Climate Change.
sity by 35% by 2030. Enbridge has already been investing in
The pipeline giant is the largest North Amer- renewable energy in recent years, and currently
Enbridge recently ican company to adopt a net-zero target. It fol- has the capacity to deliver more than 2,000
built a solar plant to lows in the footsteps of European super-majors MW of net-zero power to customers in the
help power one of its including Royal Dutch Shell, Total, BP and Rep- US, Canada and Europe. In addition to further
compressor stations. sol – while their US counterparts, Chevron and investments in renewables, the company said it
ExxonMobil, have said they would not take this would pursue improvements to its infrastruc-
route. Among other North American pipeline ture, carbon offset credits and renewable energy
companies, meanwhile, Oklahoma-based Wil- certificates.
liams also recently unveiled a net-zero by 2050 In one recent example of what the company
target. is doing to reduce emissions, it was recently
“It’s a very public demonstration of our announced that construction had been com-
level of commitment to making progress on pleted on the Lambertville solar project in New
these important criteria and issues that matter Jersey. This solar plant will be used to partially
to society and to our stakeholders,” Enbridge’s power a compressor station on Enbridge’s Texas
chief sustainability officer, Peter Sheffield, told Eastern Transmission pipeline system. The
Bloomberg. company is now evaluating its other compres-
Enbridge’s plan covers its own emissions, sor stations to assess their suitability for similar
but does not include those of its customers, solar installations.™

P16 www. NEWSBASE .com Week 45 12•November•2020