2023-11-29 22:11

Nov 29 (Reuters) - Activist investor Elliott Investment Management revealed a $1 billion stake in U.S. refiner Phillips 66 (PSX.N) on Wednesday, calling for a boardroom overhaul and criticizing management for taking its "eye off the ball" on refining assets. Phillips 66 is the third-largest independent U.S. refiner, owning eight refining complexes across the country. Two other U.S. refineries, Wood River and Borger, are owned by a 50% joint venture between Phillips 66 and Canada's Cenovus Energy (CVE.TO). Below are details of all refineries owned or operated by Phillips 66: U.S. REFINERIES: WOOD RIVER, Roxana, Illinois, refining capacity: 356,000 barrels per day (bpd) Largest Phillips 66 refinery by operating capacity. Produces gasoline, diesel, aviation fuel, petrochemical feedstocks, asphalt and fuel-grade petroleum coke. Built in 1917 and spread across about 2,200 acres, the refinery is a key supplier of fuel to the U.S. Midcontinent region. BORGER, Borger, Texas, capacity: 149,000 bpd Produces transportation fuels, petrochemical coke and sulfur, natural gas liquids, and solvents. Built in 1926, the refinery distributes products in West Texas, New Mexico, Colorado and the Midcontinent region. SWEENY, Old Ocean, Texas, capacity: 265,000 bpd Mainly produces transportation fuels. Also produces petrochemical feedstocks, home heating oil and fuel-grade petroleum coke. Purchased by Phillips 66 in 1947. Products are supplied to the Midcontinent region, southeastern and eastern United States. Exports from this refinery primarily go to Latin America. LAKE CHARLES, Westlake, Louisiana, capacity: 264,000 bpd Produces transportation fuels, off-road diesel, home heating oil and feedstocks for lubricants. Products are supplied domestically in the southeastern and eastern United States and exported to Latin America and Europe. BAYWAY, Linden, New Jersey, capacity: 258,500 bpd Located on the New York Harbor, Bayway produces transportation fuels, residual fuel oil, home heating oil and petrochemical feedstocks. Refined products are distributed across the East Coast. PONCA CITY, Ponca City, Oklahoma, capacity: 208,000 bpd Built in 1918, the refinery produces transportation fuels and petroleum coke which are distributed mainly in the Midcontinent region. LOS ANGELES: Carson and Wilmington, California, capacity: 139,000 bpd Two sites linked by pipeline, producing California Air Resources Board-grade gasoline and fuel-grade petroleum coke. Supplies fuel in California, Nevada and Arizona. FERNDALE, Ferndale, Washington: 105,000 bpd Produces transportation fuels and small amounts of residual fuel oil for customers in the northwest U.S. BILLINGS, Billings, Montana, capacity: 66,000 bpd Produces transportation fuels that are distributed to customers in Montana, Wyoming, Idaho, Utah, Colorado and Washington. Also produces fuel-grade petroleum coke. *SAN FRANCISCO: Santa Maria, Wilmington, California and Rodeo, Rodeo, California, capacity: 120,200 bpd Phillips 66's San Francisco operations consisted of two sites: Santa Maria refinery in Wilmington, California and Rodeo refinery in Rodeo, California. Santa Maria was shut in February as part of Phillips 66's plans to convert the complex to renewable diesel production. INTERNATIONAL REFINERIES: HUMBER, North Lincolnshire, United Kingdom, total throughput: 245,000 bpd Produces transportation fuels, petrochemical feedstocks, home heating oil and petroleum coke. Light oils are distributed mainly in the UK while other products are exported. MiRO, Karlsruhe, Germany, total throughput: 61,000 bpd Produces transportation fuels, petrochemical feedstocks, home heating oil, bitumen, and petroleum coke. Supplies fuel in Germany, Switzerland, France and Austria. *Note: San Francisco, and other capacity data, is based on data as of Jan. 1, 2023, prior to the Santa Maria closure. Converted Rodeo refinery is expected to produce over 50,000 bpd of renewable transportation fuels upon completion in 2024. Sources: Company filings, U.S. Energy Information Administration https://www.reuters.com/business/energy/phillips-66s-refining-operations-come-under-activist-radar-2023-11-29/

2023-11-29 21:49

Nov 30 (Reuters) - A look at the day ahead in Asian markets. If this week has so far been strangely listless for Asian markets, that could be about to change suddenly on Thursday as investors brace for a deluge of top-tier economic data and policy events from across the continent. Among the highlights, South Korea's central bank sets interest rates, China releases its official manufacturing and service sector purchasing managers index reports for November, and India announces its third quarter growth figures. The latest industrial production and retail sales data from both Japan and South Korea are on tap too, all of which could move their respective markets, especially currencies. All else equal, the risks for Asian markets on Thursday may be tilted to the upside, even though stock markets around the world again struggled on Wednesday. That's largely because the ongoing fall in the dollar and U.S. bond yields continues to loosen financial conditions. In theory, this should boost animal spirits and the allure of riskier, higher-yielding assets. U.S. financial conditions are the loosest since early September and have eased 100 basis points in a month, according to Goldman Sachs. The bank's global and emerging market indexes ticked up a bit last week, but financial conditions are also looser by around 100 bps from a month ago. U.S. rates futures markets are now pricing in more than 100 basis points of rate cuts next year starting in May, and the two-year Treasury yield is its lowest since July - it has slumped nearly 40 basis points this week alone. The dollar on Wednesday hit its lowest since Aug. 10, and most Asian and regional currencies are taking advantage. Two of the best-performers are at the polar opposite ends of the 'carry' spectrum - the New Zealand dollar and Japanese yen. The 'kiwi' dollar got an extra boost on Wednesday following the central bank's 'hawkish hold' - policymakers kept the key cash rate at a relatively high 5.50%, but unexpectedly signaled that it could be raised again if inflation doesn't moderate. Remarkably, Japanese interest rates are still negative, but maybe not for much longer. Expectations the Bank of Japan will soon end its negative rate policy has pulled the yen up from the depths, and in the process, eased pressure on the central bank to support the currency via direct FX market intervention. South Korea's central bank is expected to keep its base rate on hold at 3.50% and leave it there until at least the middle of next year. But as the Reserve Bank of New Zealand showed on Wednesday, policymakers retain the ability to surprise. Indian GDP growth, meanwhile, is expected to have slowed to a 6.8% annual rate in the July-September period from 7.8%, while Chinese factor activity likely contracted again in November but at a slower pace. Here are key developments that could provide more direction to markets on Thursday: - South Korea interest rate decision - China official PMIs (November) - India GDP (Q3) https://www.reuters.com/markets/asia/global-markets-view-asia-pix-2023-11-29/

2023-11-29 21:27

Nov 29 (Reuters) - The U.S. government will cut off cryptocurrency companies from the broader U.S. economy if they fail to block and report illicit money flows, Deputy Treasury Secretary Wally Adeyemo warned the industry on Wednesday. Speaking at an event hosted by the Blockchain Association, Adeyemo said that crypto companies need to do more to curtail the flow of illicit finance, and that the lack of action across the sector presents a risk to the U.S. "Our actions over the last year send a clear message: we will not hesitate to bring to bear tools across government to protect our national security," Adeyemo said in prepared remarks. The Biden administration on Tuesday sent a letter to Congress, requesting new legislation that would grant Treasury the authority to police crypto marketplaces used by actors the U.S. government deems illicit, Adeyemo said. The move comes after the U.S. in October issued sanctions aimed at disrupting funding for Palestinian militant group Hamas following deadly attacks in Israel, singling out a Gaza-based cryptocurrency exchange among other targets. Last week, Binance chief Changpeng Zhao pleaded guilty to breaking U.S. anti-money laundering laws as part of a $4.3 billion settlement, and stepped down as CEO of the world's largest crypto exchange, conceding that he had "made mistakes." Prosecutors said Binance broke U.S. anti-money laundering and sanctions laws and failed to report more than 100,000 suspicious transactions with organizations the U.S. described as terrorist groups including Hamas, al Qaeda and the Islamic State of Iraq and Syria, authorities said. Binance said in response that it had worked hard to make the platform "safer and even more secure." https://www.reuters.com/technology/cybersecurity/us-will-be-forced-curtail-crypto-if-industry-fails-act-illicit-finance-threats-2023-11-29/

2023-11-29 21:00

WINNIPEG, Manitoba, Nov 29 (Reuters) - Alberta's Capital Power is not planning to build new natural gas-fired power plants in Canada as Prime Minister Justin Trudeau's proposed electricity regulations to fight climate change make new investments in such facilities unviable, CEO Avik Dey said. The concerns raised by Capital (CPX.TO), Alberta's second-biggest power generator, mirror those of Alberta Premier Danielle Smith, who on Monday said the province would defy the federal government's proposed clean electricity regulations (CER). Ottawa's regulations aim to eliminate emissions on a net basis from the country's power grid by 2035. "Am I looking at building new capacity? The answer is no, today, because of the ambiguity of the CER," Dey told Reuters, adding the company has no plans to buy any Canadian plants either. The CER in its current form does not justify investment in a new gas-fired plant meant to operate 30 years, he said. Capital Power's previously unreported position on new plants underscores how the Trudeau Liberal government's draft power regulations risk curtailing investment in a grid that Ottawa expects to face growing demand as more Canadians buy electric cars. Unlike other provinces with hydro or nuclear power, Alberta burns high-emitting natural gas to produce most of its electricity. Smith has warned the regulations would lead to grid brownouts and blackouts, a scenario that Dey said he sees as well. Delaying the federal net-zero goal by a decade to 2045 along with changes to the prescribed end of life for plants, restrictions on peak-use plants and use of offsets could make a net-zero grid realistic and change Capital's position, Dey said. "If those aren't changed, (CER) does not work for a place like Alberta," Dey said. Claims that the regulations risk power outages are false as they are flexible enough to ensure grid reliability, said Oliver Anderson, spokesperson for Canada's environment minister. The Canadian government is collecting industry feedback, including from Capital Power, to produce final regulations that are both ambitious and realistic, Anderson said. While Capital is not planning new plants, it is currently adding gas-fired capacity to existing facilities in Alberta and Ontario. Under the CER, some natural gas-fired plants can keep operating past 2035 but under emissions limits that require use of carbon capture and a 20-year cap on the lifetime of plants commissioned before 2025. Smith also said on Monday her government is considering creating its own power-generating company "of last resort" to keep natural gas-fired power plants running in Alberta. Dey said while a government-owned generator would add another player to the market, it is unclear if the idea will chill investment. "I don't know that I would sit here today saying it's either threatening or emboldening investment decisions in the province because it is very hypothetical," Dey said. Simon Dyer, deputy executive director of the Pembina Institute climate think tank, said a government power generator would create unnecessary red tape. "Alberta looks completely out of touch, not just with the national conversation but the global conversation," Dyer said. By contrast to its concerns about the future of Canada's gas-fired power, Capital Power is actively acquiring mid-life natural gas-fired plants in the United States. Those plants will provide critical supply when wind and solar power is insufficient and Capital is seeking more such purchases in the western U.S. and Midwest, Dey said. Edmonton-based Capital Power this month bought two U.S.-based natural gas-fired generating plants, even though costs of batteries, an alternative way to manage renewables' intermittency, are dropping. "One size, one solution doesn't fit all," Dey said. https://www.reuters.com/business/energy/capital-power-ceo-says-not-planning-new-gas-fired-plants-due-trudeaus-2023-11-29/

2023-11-29 20:50

TORONTO, Nov 29 (Reuters) - First Quantum Minerals (FM.TO) said on Wednesday it is too early and challenging to bring a new partner into its flagship Panama copper project as the Canadian company declared force majeure on output from the mine. The comments were made by First Quantum Minerals CFO Ryan MacWilliam at an annual mining conference organized by Scotiabank, according to a note prepared by the Canadian bank and reviewed by Reuters. The future of First Quantum's Cobre Panama mine, which accounts for about 1% of global copper output, became uncertain after Panama President Laurentino Cortizo on Tuesday announced the closure of the mine. This followed the country's top court declaring First Quantum's contract to own and operate the mine unconstitutional. MacWilliam's remarks are the first from the company on the future of the mine since the court's ruling. First Quantum suspended the jobs of 7,000 contract staff at Cobre Panama copper mine due to force majeure, according to a separate internal memo reviewed by Reuters on Wednesday, citing disruptions at its main port by protesters as the cause of a shutdown in operations. The head of the union that represents Cobre Panama mine workers, Michael Camacho, confirmed the content of the company document. When asked for comment on CFO MacWilliam's remarks, First Quantum referred to the Scotiabank note. Scotiabank said it had no additional comment beyond what it had published. Panama has seen unprecedented public protests after the government signed a new contract with First Quantum for its Cobre Panama mine. The protesters choked supplies to the mine, forcing First Quantum to suspend the mine last week. MacWilliam told the conference that given the events in Panama, it remains unclear when Cobre Panama will be able to resume operations. The Cobre Panama mine's workers staged protests in different parts of the country earlier on Wednesday, seeking answers on the future of their job posts. Bringing in a new investor to help fortify First Quantum's balance sheet has been suggested as a likely solution to balance its financial risks. The protests have wiped out about C$11 billion ($8.1 billion) from First Quantum's market value. On Wednesday, the stock was down about 10%. First Quantum supports more than 40,000 indirect and direct job posts in Panama. Separately, the company said in a statement on Wednesday it was interested in pursuing dialogue with the Panama government, and warned of environmental damage if the mine were not shut in an orderly manner. China's Jiangxi Copper Co Ltd (600362.SS) is First Quantum's biggest shareholder. The mine closure also has consequences for the Central American nation, as Cobre Panama contributes about 5% to Panama's economy. First Quantum, which has spent over $10 billion to develop the mine, has launched two separate tracks of international arbitration to protect its assets, the CFO said, which accounted for about 46% of its third quarter earnings. ($1 = 1.3594 Canadian dollars) https://www.reuters.com/markets/commodities/first-quantum-cfo-says-it-is-too-early-consider-bringing-partner-panama-project-2023-11-29/

2023-11-29 20:37

LONDON, Nov 29 (Reuters) - Commercial ships face increasing dangers at sea after armed groups have attacked and seized vessels in waters around the Red Sea and off the coast of Yemen, adding to perils for seafarers, shipping officials said on Wednesday. An attempted hijacking of a commercial vessel in the Gulf of Aden on Sunday appears to have been carried out by armed Somali pirates and not Yemeni Houthis, despite the firing of missiles from Houthi-controlled territory in Yemen afterwards, the Pentagon said on Monday. The incident is the latest in a series of attacks in Middle Eastern waters since a brutal war between Israel and the Palestinian Islamist group Hamas broke out on Oct. 7. On Nov. 19, Houthis seized the Galaxy Leader car carrier which was taken to the Yemeni port of Hodeidah, the vessel's owner said. Both vessels had ownership links to Israeli business magnates, according to shipping records. The International Chamber of Shipping association said the "attacks must stop immediately, and the innocent seafarers released". "In all cases, these vessels are conducting their right of freedom of navigation and innocent passage," the ICS said in a statement. An Israeli container shipping line said on Sunday it expected longer sailing times for its vessels. "In light of the threat to safe transit of global trade in the Arabian and Red Seas, ZIM is taking temporary proactive measures to ensure the safety of its crews, vessels, and customers' cargo by re-routing some of its vessels," ZIM said. U.S. maritime administration MARAD said in an advisory on Sunday that vessels faced multiple threats after the attacks. "Exercise caution when transiting these areas and remain cognizant of evolving threats in this region," MARAD said. Insurance industry sources said they expected war risk premiums to rise in the area, especially for Israel-linked shipping. https://www.reuters.com/world/middle-east/red-sea-attacks-ships-spark-safety-concerns-sailors-2023-11-29/