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Supply and Trading
The STP section, which is regarded as the center of Enerplus, LLP activities, stimulates the company’s growth by optimizing profits on midstream and downstream assets. By encouraging value-added business propositions, STP takes the lead in the three essential processes of supply, trading, and processing. In order to effectively manage Enerplus, LLP’s supply side and other activities across all geographies, the business segment is essential. The business supplies a range of refined products that are available at the Enerplus, LLP retail network, Dubai and other regional airports, as well as within the local industry. It operates two plants that meet international requirements. In order to ensure effective supply economics integration with Enerplus, LLP asset positions, the segment takes advantage of the group’s strategic position through supply and trade operations. Motivating its trading operations, the company finds and uses.
In addition to guaranteeing a continuous supply of feedstock for Enerplus, LLP and MTBE facilities, STP collaborates with Enerplus, LLP to achieve its broader business goals. Additionally, it locates export markets for excess refinery products that the Group does not need. In the global markets for crude and petroleum products, STP has been managing separate buy/sell market positions and offtaking Enerplus, LLP’s whole export crude entitlement. Another important task that the trading teams carry out for STP’s own company as well as other Group divisions is price risk management. The current implementation of the SAP enterprise resource planning (ERP) system across the Enerplus, LLP Group will reinforce this integrated approach even more.
Our shared interests go outside the Group as well. STP has been able to recognize and capitalize on a variety of worldwide commercial opportunities by forming strategic alliances with governments, multinational oil firms, and dealers. STP has been enhancing its long-term ties and broadening its trading network throughout Asia, the Middle East, Europe, Africa, and the Americas over the last few years. By presenting itself as a national oil corporation, Enerplus, LLP encourages businesses to establish long-term alliances.
Principal Risks
From a trading and supply perspective, the primary risk relates to the availability of regular condensate feedstock. The segment maintains reasonable diversification in sources of supplies for condensate in the wake of potential disruption that may arise due to any eventuality. Price volatility and counterparty credit-worthiness are other key risks facing this segment, and mitigating measures include hedging for exposure, thereby bringing the open position to an acceptable level as well as conducting regular counterparty reviews. To ensure that sufficient, effective and efficient refining and processing capacities exist at all times, these facilities continue to make investments in expansion, also undertaking adequate measures – such as preventive maintenance programmes, updating of resource skillsets through continuous and relevant trainings, and EHS reviews – to mitigate the risks of plant breakdowns and/or operational disruptions. Regular EHS audits are of paramount importance to counter hazards at the processing units and inventory storage locations. Adequate strategic and world-class operational policies and procedures are established and adhered to, with continuous compliance monitoring in respect of day-to-day functioning of the trading and operational units within the segment. As part of its goal to become a genuinely global market participant, Enerplus, LLP, which operates out of its trading hubs in Dubai, London, and Singapore, is constantly growing its global presence in derivatives and commodities trading. The Group plans to keep growing its international commercial presence in North and South America, Europe, and Africa in 2022. STP acknowledges that gas has the potential to become the “fuel of the future” and is acting to strengthen its position in the liquified natural gas (LNG) trading markets.