LNG Action Around the Globe

Energy News Beat

We present this month insights and commentary covering North America and the Global Natural Gas market in this new edition of our newsletter.

With geopolitics flaring in various areas around the world, all eyes have been on the global market. Whatever risks near the Strait of Hormuz, the LNG market has weathered the near storm conditions and carried on. A bit further south, several LNG supply deals sealed by Oman LNG L.L.C.with various suppliers. Meanwhile, the markets in Asia were active earlier on in the spot market as they took advantage of lower than usual prices to secure much needed gas supply.

We have a quick brief on the current status of the long awaited Mountain Valley Pipeline; Takeaways from the 30th edition of the FLAME conference; Commentary on Spain’s future role within the energy ecosystems of Europe and Africa; and last but not least discussion on if Vietnam will be able to eventually move away from coal and what this would entail for its overall energy mix.

We hope you enjoy these articles and interviews, and they give you greater insight into the energy market and industry all with the goal of increasing your knowledge and helping you make better energy decisions.

Source: Linkedin.com

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Large Crude Inventory Build Rocks Oil Prices

Energy News Beat

Crude oil prices went lower today after the U.S. Energy Information Administration reported an inventory increase of 7.3 million barrels for the week to April 26.

This compared with a substantial draw of 6.4 million barrels for the previous week that pushed prices temporarily higher last week.

In gasoline, the authority reported an inventory rise of 300,000 barrels for last week, which compared with a modest draw of 600,000 barrels for the week before.

Gasoline production averaged 9.4 million barrels daily in the week to April 26, which compared with 9.1 million barrels daily during the previous week.

In distillate fuels, the EIA estimated an inventory draw of 700,000 barrels for the reporting period, with production averaging 4.5 million barrels daily.

Last week’s figures compared with an inventory build of 1.6 million barrels for the previous week, when production averaged 4.8 million barrels daily.

Last year, there was substantial concern that distillate production was consistently below demand prospects but now it appears the tables have turned and fears are rising about possible oversupply.

Reuters reported earlier this week that fuel traders were in a rush to secure storage space for their distillate stocks along the East Coast as demand underwhelmed. The report suggested warmer than usual winter was the culprit behind lower diesel and heating oil demand.

This lower demand pushed profit margins for refiners down substantially during the first quarter of the year, affecting their quarterly bottom lines, the report also said.

Oil prices, meanwhile, slipped further down today on the American Petroleum Institute’s latest weekly inventory report that showed a 4.9-million-barrel increase in crude oil stocks for the week to April 26. Support for lower prices also came from continued expectations of a ceasefire between Hamas and Israel.

Countering the decline, OPEC crude oil production declined by 100,000 barrels daily in April, according to a Reuters survey. The survey showed lower exports of crude from Iran, Iraq, and Nigeria, with the cartel’s total output at 26.39 million barrels daily during last month.

Source: Oilprice.com

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Cenovus Tops Earnings Forecast as Refining Jumps to Record

Energy News Beat

One of Canada’s biggest oil and gas companies, Cenovus Energy (NYSE: CVE), booked higher-than-expected earnings for the first quarter of 2024 amid strong oil and gas production and record throughput volumes at its refineries.

Cenovus reported on Wednesday nearly doubled earnings per share of $0.45 (C$0.62) for Q1 2024 compared to the same period of 2023. The earnings were higher than the average analyst estimate of $0.39 (C$0.54), according to LSEG data cited by Reuters.

For the first quarter of 2024, refining throughput for Cenovus stood at 655,200 barrels per day (bpd)—a record volume – as Cenovus continues to improve its downstream reliability, the company said.

Crude throughput in the Canadian refining segment was 104,100 bpd in the first quarter, compared with 100,300 bpd in the fourth quarter of 2023.

In U.S. refining, crude throughput was 551,100 bpd in the first quarter, compared with 478,800 bpd in the fourth quarter.

“Throughput in the quarter increased primarily due to improved operating performance and availability across the company’s operated and non-operated refining assets, in addition to lower levels of planned maintenance when compared with the prior quarter,” Cenovus said.

The company also boosted first-quarter earnings thanks to a higher operating margin and a gain on asset divestitures in the first quarter of 2024.

At the end of last year, Cenovus said it expects to spend more capital in 2024 compared to 2023 to boost upstream production and capture better margins in the downstream segment.

“We will continue to progress strategic initiatives in our base business in 2024 that will enhance our integrated operations and further drive our ability to grow total shareholder returns, even in periods of price volatility,” Cenovus president and CEO Jon McKenzie said at the time.

Earlier this year, Cenovus chief commercial officer Drew Zieglgansberger said at the annual investor day that the company would boost its energy production by 19% over the next five years, to 950,000 boepd by 2028, in line with pipeline capacity growth.

Source: Oilprice.com

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U.S. LNG Exports Continue to Fall as Freeport Plant Struggles With Outages

Energy News Beat

Exports of liquefied natural gas (LNG) from the United States fell in April for a fourth month in a row, as the Freeport export facility continues to struggle with operational issues and outages, according to data from financial firm LSEG       cited by Reuters.

U.S. LNG exports dropped to 6.19 million metric tons in April, down from 7.61 million tons exported in March, per LSEG data released on Wednesday.

Europe continued to be the top export destination for American LNG, but its share of all U.S. sales fell to 52.5% of the total volume, down from about 57% in March. Asia kept its second spot, receiving 32.6% of total U.S. LNG exports, relatively flat month-on-month.

Due to problems at Freeport LNG, America’s LNG exports have been falling this year each month compared to the previous month.

Freeport LNG, which has three natural gas-processing units, or trains, has been operating without at least one of these since January 2024, amid recurring mechanical issues and maintenance.

Last week, Freeport LNG Development LP reported an outage at its third train, which is right now the only one not under maintenance, Natural Gas Intelligence reported.

Freeport LNG has been operating below 80% of its capacity due to technical problems in recent months, which has reduced overall LNG exports out of America.

As a result, only five LNG cargoes departed in April from the Quintana, Texas, terminal, carrying a total of 330,000 tons, per the LSEG data quoted by Reuters. This compares to 21 cargoes with a total of 1.42 million tons exported from Freeport LNG in December.

“We still believe Freeport will not reach its typical summer utilization near 90% until June, at the earliest, given its previous struggles to complete maintenance in a timely manner,” Energy Aspects analyst David Seduski wrote in a note to clients last week, as carried by Reuters.

Source: Oilprice.com

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When Worlds Collide – U.S. Gulf Coast Refiners Face Challenges To Accessing Heavier Crude Oil

Energy News Beat

The prospect of decreased crude oil supplies from Mexico, the top international supplier to the U.S. Gulf Coast (USGC), is creating uncertainty among heavy crude-focused refineries. Mexico’s state-owned energy company, Petróleos Mexicanos (Pemex), instructed its trading unit to cancel up to 436 Mb/d of crude exports for April to supposedly focus on processing domestic oil at its new 340-Mb/d Dos Bocas refinery and/or its existing plants. While the refinery’s startup is likely not nearly as imminent as Pemex says, the cancellation of Mexican crude imports could be problematic for U.S. refiners with plants built to run heavy crude, a necessary ingredient to optimize operations and yields. Adding to the complexity of the situation is the upcoming startup of the Trans Mountain Pipeline expansion (TMX) and the recent reinstatement of U.S. sanctions on Venezuelan crude. In today’s RBN blog, we’ll examine the potential fallout resulting from Pemex’s decision at a time when heavy crudes elsewhere are also becoming less available.

Mexico’s energy ministry has stated that Dos Bocas will process about 179 Mb/d of crude oil this year, with plans to reach full capacity at 340 Mb/d; however, RBN’s downstream consulting practice, Refined Fuels Analytics (RFA), sees the future of Dos Bocas much differently. Previous announcements of its imminent startup have yet to result in any notable operations and we don’t see the facility reaching consistent levels of meaningful fuel output until 2026, with full ramp-up stretching to 2028. Assuming Dos Bocas does make it there (which certainly isn’t a given), our expectations are that utilization will only average about 60%. (See Here I Go Again for a detailed examination of Dos Bocas’ prospects.) There continue to be mixed signals as Pemex reversed at least 330 Mb/d of the planned cut for May, according to news reports, due to lower demand from domestic refineries.

Overall, Pemex has projected domestic crude oil processing will increase from 713 Mb/d in 2023 to an average of 1.04 MMb/d in 2024, with local refineries, including Dos Bocas, aiming for 1.7 MMb/d by year-end (a prospect we think is unachievable). Let’s take a step back and delve into the various grades of Mexican crude oil. Mexico produces and exports four distinct quality grades, ranging from light to heavy:

Olmeca, the lightest among them, boasts an API gravity of 38-39 and a sulfur content of 0.73% to 0.95% by weight, making it a valuable feedstock for lubricants and petrochemicals. Although Olmeca shares some similar product yields as Eagle Ford crude, the latter has lower sulfur content, particularly important for the naphtha cut used in gasoline production.
Isthmus falls into the medium-heavy category, with a typical API gravity of 32-33 degrees and sulfur content of 1.8%. Isthmus yields commendable amounts of gasoline and intermediate distillates such as diesel and jet fuel.
Maya, considered a heavy, high-sulfur grade, boasts an API gravity of 21-22 degrees and 3.4% to 3.8% sulfur. Maya produces lower yields of gasoline and diesel in simple refineries when compared to lighter crudes, necessitating high-conversion units for optimal processing.
Altamira, the heaviest and most sour, has an API gravity of 15.5-16.5 and a sulfur content of 5.5% to 6%. Similar to Maya, Altamira yields lower gasoline and diesel in simple refining setups compared to lighter crude oils, making it suitable for asphalt production due to its physical properties.

See Figure 1 below for more details around quality for these types of crude grades. (As we noted in The Weight, crude with a higher API gravity is lighter, or less dense, while oil with a lower API gravity is heavier, or denser.)

Figure 1. Typical Qualities of Pemex Crude Oils. Source: Pemex

Mexico’s export cancellations are expected to predominantly impact volumes of it’s flagship grade, Maya, while shipments of other grades like Isthmus and Olmeca may also see reductions; however, uncertainties persist regarding Pemex’s ability to enact these export cuts. In fact, Pemex is now offering more crude cargoes to customers after fires recently struck two of its refineries (the Salina Cruz refinery and the Minatitlan refinery), disrupting the country’s plan to reduce exports and boost domestic fuel production. Maya dominates the Mexican export market, and it averaged 612 Mb/d in 2023. To further exasperate the issue, the availability of Maya crude has been dwindling for some time (See Maya Mia!). These developments have repercussions on imports not only in the U.S., but also in Europe and Asia, where lesser volumes of Maya are shipped.

The Mexican export reduction comes at a time when OPEC and its allies are already curbing production, potentially further escalating oil prices, which are currently near a six-month peak. This tightening of physical supplies, particularly a heavier, sour grade like Maya, exacerbates the strain. Further, Venezuelan exports are expected to decline following the reinstatement of U.S. sanctions on its oil industry. Venezuela’s oil exports rose to the highest levels since early 2020 in March, ahead of the April 18 expiration of a six-month general license that allowed the country to freely sell its crude. The U.S. Department of Treasury issued a new license April 17 requiring companies doing oil and gas business in Venezuela, including international oil producers, to wind down those operations by May 31. New business or investments that would have been authorized under the expired license will not be allowed.

The most apparent alternative for Maya crude would be Canadian heavy crudes, although the impending TMX startup adds complexity, potentially reducing for a time the availability of Canadian crude in the USGC via the Keystone Pipeline. TMX, which is expected to commence commercial operations on May 1, recently completed construction in southern British Columbia, concluding a decade-long project marked by delays and cost overruns. (Additional delays remain a distinct possibility, and shippers have expressed concerns that the pipeline will not be fully operational by May 1.) The pipeline is set to provide service for contracted volumes after finishing a drilling project on the final remaining segment in the Fraser Valley (red dashed oval in Figure 2 map below).

Figure 2. Trans Mountain Pipeline and Related Pipelines and Refineries. Source: RBN

With a capacity of 590 Mb/d and a US$25 billion investment, the expansion (dashed black-and-green line) parallels the original pipeline (solid green line), connecting Edmonton, AB, to Canada’s west coast at Westridge and Burnaby, BC, while also integrating with refineries in the Pacific Northwest via the Puget Sound pipeline system. This infrastructure serves as a crucial conduit for exporting larger volumes of Western Canadian crude oil to both overseas markets and the U.S. West Coast. While TMX is expected to decrease total heavy crude available to the USGC in the immediate future, it could increase total heavy crude availability by incentivizing more Canadian production. Even in the short term, increased Canadian crude flows to Asia and the U.S. West Coast via TMX would displace heavy crude from Latin America that currently feeds those refineries, making those flows available to the USGC.

Amid ongoing OPEC+ production cuts of 2.2 MMb/d that are expected to continue through Q2, the combined effects of these trends may compel USGC refineries to rely more heavily on domestic crude, potentially tightening U.S. exports moving forward. However, transitioning feed slates is easier said than done, particularly for deep-conversion refineries built to run heavy crude, which cannot readily adjust their crude distillation unit (CDU) configurations from one day to the other. A shortage of Maya crude directly impacts refineries with coking setups, prompting them to seek alternatives to maintain utilization rates. Failure to secure suitable replacements may result in decreased refinery utilization rates.

The extent to which an individual refinery can lighten up its crude slate varies by site. Switching to lighter crudes would increase costs given that light crude is more expensive than heavy crude. However, the light/heavy crude differential continues to narrow and may narrow further on the USGC as measured by the West Texas Intermediate (WTI)-Western Canadian Select (WCS) spread in Houston. Narrower heavy/light differentials are expected to incentivize some USGC refineries to shift toward lighter crude slates. Further, we expect minimal impact to overall crude runs and some increases in Latin American imports to the USGC, excluding Venezuela.

In closing let us note two other events that will/could play important roles in the heavy crude market. First, Mexican elections are scheduled to take place in early June. While it looks like Mexico’s current President Andres Manuel Lopez Obrador (also known by his initials AMLO) will be succeeded by his party mate, Claudia Sheinbaum, she has very different (and less friendly) views toward the oil industry, and it is certainly possible that she could divert investment away from completing Dos Bocas (and upgrading/maintaining existing refineries). This would result in lower domestic runs and more Maya available for export — assuming production isn’t also negatively impacted by her policies.

One other thing to mention: The very fact of the impending election might be a reason that Pemex is announcing the crude export cuts to support the optimistic outlook for Dos Bocas. Once victory is assured for the incumbent party, we might hear more realistic assessments of the project’s prospects and a return to normal levels of exports. While the impacts of the election are very uncertain, another event, the planned shutdown of LyondellBasell’s 268-Mb/d Houston refinery in Q1 2025, seems like a done deal. Upon closure, it will remove more than 200 Mb/d of heavy crude demand from the USGC market, making that amount available to other refiners.

“When Worlds Collide” was written by Powerman 5000 and appears as the third song on Powerman 5000’s second major-label studio album, Tonight the Stars Revolt! The lyrics in the song address social class problems in the world. The title comes from the 1933 novel of the same name written by Edwin Blamer and Philip Wylie and the 1951 science fiction film directed by Rudolph Mate that was based on the novel. Initially released as a single in July 1999, it went to #16 on the Billboard Mainstream Rock Tracks Singles chart. It has been used in video games — including Tony Hawk’s Pro Skater 1+2 and WWE Smackdown vs. Raw — and was featured in the film Little Nicky. In 2020, Powerman 5000 re-recorded the song and released it as a digital single. Personnel on the record were: Spider One (Michael Cummings) (vocals), Adam 12, M.33 (guitars), Dorian 27 (bass), and Al 3 (drums).

Tonight the Stars Revolt! was recorded in 1998-99 at Sunset Sound Studios, The Chop Shop Studios, Music Grinder Studios in Los Angeles, and Sound City Studios in Van Nuys. Produced by Sylvia Massey and Ulrich Wild, the album was released in July 1999 and went to #29 on the Billboard 200 Albums chart. It has been certified Platinum by the Recording Industry Association of America. Three singles were released from the LP.

Powerman 5000 is an American rock band formed in Boston in 1991 by Spider One, along with drummer Al Pahanish Jr. (Al3), bassist Dorian Heartsong (Dorian 27) and guitarist Adam 12. Their music is a combination of industrial rock and nu-metal. Spider One is the younger brother of Rob Zombie. They have released 11 studio albums, one compilation album, three EPs, and 24 singles. Their music has been featured in several video games, television shows and film soundtracks. Twenty-seven members have passed through the band since its formation, with Spider One being the only original member in the current lineup. They continue to record and tour and will release their 12th studio album, Abandon Ship, in May. They will begin a U.S. tour in late April.

Source: Rbnenergy.com

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TotalEnergies considers moving stock listing to New York over favorable oil and gas views in U.S.

Energy News Beat

(Bloomberg) – TotalEnergies SE is increasingly making noise about moving its stock listing to New York, adding to chatter around European giants potentially being attracted by U.S. investors’ greater enthusiasm for oil and gas companies.

The French energy giant is considering the switch “in part because ESG policies in Europe have more weight,” Chief Executive Officer Patrick Pouyanne told a French senate hearing on climate-change goals Monday. “We are losing European shareholders,” while U.S. investors are buying the stock, he said.

The company will “seriously” study such a step and present its findings to the board in September, Pouyanne told analysts last week, expanding on an idea he first disclosed in an interview with Bloomberg Opinion earlier this month.

His comments are sure to cause discomfort around Europe’s major bourses. Speculation is already buzzing about the future of Shell Plc’s presence on the London exchange, while signs this week of investor resistance to Glencore Plc’s proposed coal spinoff might reignite talk of a U.S. listing.

“Europe’s virtuous attitude when it comes to ESG norms, free trade or say on pay may have been naive at times in front of trading partners that put economic interests above all,” said Eric Meyer, head of RBC Capital Markets in France.

A third of European mutual funds exclude oil and gas, compared with a negligible number of their U.S. peers with that view, Deutsche Bank AG analysts wrote in a March note, citing Morningstar Direct data.

The divergence over environmental, social and governance measurements shows up in valuations, with TotalEnergies’ stock priced at eight times earnings expected a year from now, against 12 times for U.S. giant Exxon Mobil Corp.

And considerations over ESG are not the only factor for European resources companies weighing their options, said RBC Capital’s Meyer.

“When there is a notable valuation gap between Wall Street and Europe, temptation is high to follow the money,” he said. “This is particularly true for the oil and gas industry, which is way more part of the fabric of the U.S. economy, more populated and better followed by investors.”

A representative for Euronext Paris, where Total is listed, declined to comment.

Source: Worldoil.com

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Germany Set to Pay More Coal Plants to Prevent Blackouts

Energy News Beat

(Bloomberg) — Germany’s coal phase-out plans face a potential setback after the energy regulator predicted the country will need a lot more fossil-fuel power plants on standby to help keep the lights on in the coming years.

The need for so-called reserve capacity to cover shortfalls in wind and solar generation during the 2026/27 winter period is set to reach 9.2 gigawatts, double the amount put aside for the last heating season, the regulator said Tuesday. That’s even more than the 8.3 gigawatts of mainly coal-fired backup deployed in 2022, when Russia curbed pipelined natural gas supplies to Europe.

While Germany hopes to phase out coal entirely by 2030 — eight years before a legal deadline — many companies have already warned it might not have enough alternative power sources to do so by then. The country’s grid-reserve units are mainly coal and gas plants, with batteries only providing a fraction of the backup power. Germany shuttered its remaining nuclear plants last year.

Keeping Standby German Coal Plants Is Too Costly, Says Operator

Europe’s largest economy has made huge strides in the transition to renewables — which now make up half of the country’s generation — but it’s still not enough to meet demand when the weather’s calm and the sun isn’t out. The need for more reserve plants is further heightened by delays in the country’s grid expansion, which means electricity can’t be fully transported to regions with high consumption.

To help shrink its reliance on coal, the government wants to build 10 gigawatts of new gas power plants that can later switch to hydrogen. However, as details of the program aren’t even sketched out yet, it’s unlikely that these units will be running before the end of the decade.

Source: Financialpost.com

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Test Only

Meyer Werft to build another LNG-powered cruise ship for Carnival

Energy News Beat

Germany’s Meyer Werft has won an order to build another LNG-fueled vessel for Miami-based Carnival Cruise Line, a unit of Carnival.

The world’s largest cruise company said on Tuesday it has signed an agreement with Meyer Werft to build a fifth Excel class cruise ship for its namesake Carnival Cruise Line brand.

This vessel is set for delivery in 2028.

In mid-February Carnival had announced the first newbuild order placed in five years with news that a fourth Excel-class ship would join the Carnival Cruise Line fleet in Spring 2027.

This new announcement confirms an 11th Excel-class ship for the corporation’s fleet across four of its brands, and the fifth to be sailed by Carnival Cruise Line.

Carnival did not reveal the price of the contract.

The latest Excel class vessel, Carnival Jubilee, was said to be worth about $1 billion.

This order is contingent upon financing, which is expected to be completed later this year, Carnival said.

Image: Carnival

Joining current Carnival Cruise Line Excel-class ships Mardi Gras, Carnival Celebration, and Carnival Jubilee, the two new 180,000-ton ships will carry over 6,400 guests and be powered on a liquefied natural gas (LNG) technology platform.

Since 2018, Meyer Werft and Meyer Turku have built nine cruise ships with LNG propulsion on a joint technical platform for four cruise lines in the Carnival portfolio.

Source: Lngprime.com

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Macron may ignore the French Parliament if CETA is rejected

Energy News Beat

 

With the French Senate rejecting the EU-Canada Comprehensive Economic and Trade Agreement (CETA), and the National Assembly possibly doing the same, just ahead of the European elections, Macron’s government could ignore the parliament’s decision. However, the opposition is denouncing this as an anti-democratic move.

Following the rejection of CETA on Thursday 21 March, Les Écologistes senator Yannick Jadot warned French President Emmanuel Macron in the chamber: “If the Senate vote has no impact […],  and if the government does not refer the matter to the European Commission, and does not notify it, you will be responsible for building distrust in politics.”

After organising a vote on the ratification of the agreement in the Senate, the green group announced that it wanted to take it to the lower house, the National Assembly – with votes expected on 30 May, just nine days before the European elections, 6-9 June.

In 2019, when the text was first submitted to the National Assembly, CETA was narrowly approved, despite Macron’s majority. However, since the start of his second term in 2022, Macron’s party has lost a significant number of seats in the lower house.

Also, the agricultural crisis has dealt a severe blow to support for free trade agreements, which have been accused of pitting European and non-European farmers against each other. Therefore, given the current political circumstances, it seems likely that the text will be rejected by the National Assembly in May.

Up to now, only Cyprus has rejected CETA, with nine other member states yet to vote, but 17 have already given their backing.

To ratify the agreement with Canada, the European Commission needs the approval of all the member countries.

A categorical refusal by the French Parliament would postpone the possibility of ratification in the medium term, or even the continuation of the temporary agreement, which has been in force since 2017.

France might not notify Brussels

Interviewed on France Info on Monday 25 March, the head of the Renaissance list (Renew group) in the European elections, Valérie Hayer, suggested that in such a scenario, it would be up to the government “to see what position will be taken.”

In her view, CETA could continue to be applied, even if the French Parliament rejects it.

If a member state’s parliament rejects the agreement, it is up to the government to notify the European Commission. The agreement, even if temporary, must then be ‘denounced’, as noted in the minutes of the 2016 Council of the EU.

Then “the necessary steps will be taken in accordance with EU procedures,” it states.

According to the co-director of the Velben Institute, a think tank critical of free trade, the European executive could then resubmit the agreement to the European Parliament and the Council. In other words, the temporary agreement that has been in force since 2017, let alone its final ratification, would be in jeopardy.

At the European Council meeting held on the same day as the Senate vote, European Commission President Ursula von der Leyen said she ‘took note’ of the vote and was waiting to see how France would deal with the result.

There is no obligation on member states to notify the European Commission of the situation, as demonstrated by Cyprus. After the text was rejected by its parliament, the government did not send anything to Brussels, hoping for another favourable vote.

“Denial of democracy”

Hayer’s comments caused quite a stir. Left Member of the European Parliament (MEP) Leïla Cheibi denounced her comments saying it was a “denial of democracy.”

Other parties including the Rassemblement National (RN, ID) and the right (Les Républicains/EPP),  also voted overwhelmingly to reject CETA in the Senate.

The French government reacting to the rejection of CETA denounced the political opportunism of the opposition parties.

“It was a political stunt played out before our very eyes in the Senate. The Republican and Communist senators have used CETA as a political manoeuvre in the middle of a European election campaign,” said French Minister for Foreign Trade, Franck Riester, after the vote.

A high-risk vote

For the government, a rejection by parliament jeopardises the temporary agreement, even though 90% of the final agreement has already been in force since 2017, only the investment part will be included if it is ratified by the EU.

On the day of the Senate vote, Macron reiterated at the European Council Summit in Brussels that this vote “has no consequences for the provisional implementation of CETA.”

“The Senate vote does not help the cause, does not help our agriculture. There can be no French agriculture without exports,” he lamented.

The government is now hoping to sway public opinion between now and 30 May, particularly on agricultural issues, which are most sensitive in France.

Riester on Monday (25 March) had a meeting with stakeholders,  where Agriculture Minister Marc Fesneau said he wanted to “build a philosophy of action on these trade treaties.”

“We have a vested interest [in ratifying this agreement], first and foremost in agriculture and agri-food,” he insisted, denouncing the “petty manoeuvres of the opponents.”

The vote on 30 May still has to take place. According to the French news website Contexte,  Riester suggested that the government might not pass the bill on to the lower house, thereby preventing it from holding a vote.

He nevertheless assured stakeholders that CETA will “continue its progress.” The National Assembly “will have to make a decision […] when the time comes,” he said.

However, a parliamentary rejection nine days before the European elections will be a blow to the Macron majority and the survival of CETA in France and the EU.

Source: Euractiv.com

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