Marine fuel global weekly market update

Market: Biofuels, E-fuels, Emissions, Fertilizers, Hydrogen, Natural gas, Oil products, Petrochemicals
15/05/23

A weekly Argus news digest of interest to the conventional and alternative marine fuel markets. To speak to our team about accessing the stories below and access to Argus Marine Fuels, please contact: marinefuels@argusmedia.com.

Alternative marine fuels

12 May First biofuel bunker supply announced in Middle East Japan's Inpex Corporation and the Astomos Energy Corporation have signed a deal to supply ...

12 May Biomethane supplier ReFuels lists in Oslo Dutch energy supplier ReFuels listed today on the Oslo Stock Exchange (...

12 May European ammonia production remains uncompetitive Domestic ammonia production remains uncompetitive with imports into Europe, even as ...

11 May Hoegh Autoliners agree to green ammonia deal Norwegian-based shipping company Hoegh Autoliners and alternative fuels supplier North Ammonia have ...

11 May South Korea launches first LNG bunkering vessel South Korean shipbuilding firm Hyundai Heavy Industries has completed the construction of the country's ...

11 May Vopak opens new biofuel feedstock storage facility Dutch infrastructure provider Vopak has opened 16 new tanks to store renewable feedstocks for biofuels ...

11 May Japan's Astomos to receive biofuel for VLGC Japanese LPG importer Astomos has agreed with domestic upstream firm Inpex to receive mixed biofuel for its ...

11 May Toyota Tsusho starts commercial bunker biofuel supplies Japanese trading house Toyota Tsusho in April started commercial deliveries of marine biofuel to ...

10 May H2 plans firm up in Central America and the Caribbean Countries in Central America and the Caribbean are advancing plans to move towards renewable, and in some cases low-carbon...

10 May Marubeni to sell Chinese low-carbon methanol in Japan Japanese trading house Marubeni plans to start selling low-carbon methanol produced in China in ...

10 May Asian UCO to US trade continues despite customs dispute Biofuel feedstock used cooking oil (UCO) is set to continue flowing from Asia ...

10 May Cepsa looks into biofuels from microalgae Spanish oil and gas company Cepsa and the Canary Islands governmental research body Instituto Tecnologico de Canarias (ITC) are looking into ...

10 May Darling renewable diesel sales volumes up in 1Q Darling Ingredients boosted its sales of renewable diesel by nearly ...

9 May Algeria eyes H2 to green 4mn-5mnt/yr ammonia exports Algeria plans to substitute renewable hydrogen into its existing 4-5mnt/yr of ammonia production based on ...

Conventional marine fuels

12 May Panama bunker sales at 5-year low for April Panama's April bunker sales dipped below 400,000t for the first time in five years, probably because of strong ...

12 May Europe diesel demand down 4pc on year in Feb Diesel deliveries fell by 4pc year on year in ...

12 May Chinese product exports to rise in May Chinese exports of gasoline, diesel and jet fuel are on course to rise this month following the…

12 May Oman's O Bunkering signs supply deal in Duqm Oman-based bunker trading firm O Bunkering signed a deal with Marsa Al Duqm Investments (Marsa), a subsidiary of ...

12 May Japan's bonded bunker fuel demand strengthens in March Japan's March bonded marine fuel sales hit 80,000 b/d for the first time ...

12 May Weaker coal fundamentals pressure Pacific Panamax rates Freight rates for Pacific dry bulk Panamax have fallen to an 11-week low on reduced coal demand ...

12 May Exmar shipping profits jump with rates in 1Q Belgium-based LPG shipowner Exmar's shipping arm increased its profits in the first quarter ...

12 May Petrobras to review fuel pricing policy next week Brazil's state-controlled Petrobras will review its fuel pricing policy next ...

11 May Singapore's fuel oil inventories exceed six-month lows Singapore's onshore fuel oil stocks fell to over six-month lows with a drop in imports and rise ...

11 May Higher runs, sanctions to buoy clean tankers: d'Amico Rising refinery throughput and higher tonne-mile demand caused by ...

11 May Panocean dry bulk profits fall further South Korea-based operator Panocean's profits fell in the first quarter …

11 May Tonne mile growth firms Torm tankers profits in 1Q Product tanker owner Torm benefited from firmer freight rates in ...

11 May Euronav crude tanker profits surge in 1Q Shipowner Euronav's profits were buoyed in the first quarter of …

11 May Hapag-Lloyd installs more scrubbers in fleet Container shipping firm Hapag-Lloyd said its demand for low-sulphur bunker fuel grades diminished in the first quarter ...

11 May German heating oil attracts premium over diesel at ARA The price of German heating oil barges at the Amsterdam-Rotterdam-Antwerp (ARA) hub has been higher than diesel barges ...

11 May Brazil diesel demand, Russian imports up in April Modest growth in Brazilian domestic diesel consumption in April led to lower-than-expected sales, particularly among ...

10 May Lack of Pakistan purchases pressures Asian HSFO markets Singapore high-sulphur fuel oil (HSFO) margins have remained under pressure as Pakistan continues to ...

10 May Increased vessel orders firm KHI's FY22 revenues Japanese shipbuilder Kawasaki Heavy Industries (KHI) posted an increase in revenues from its ...

10 May Asian UCO to US trade continues despite customs dispute Biofuel feedstock used cooking oil (UCO) is set to continue flowing from Asia to ...

9 May Spain diesel demand drop leads fuel deliveries lower Spanish road fuel deliveries by storage and pipeline operator Exolum fell in April when a dip in ...

9 May TFG Marine expands US Gulf operations The bunker fuel supply joint venture TFG Marine will expand ...

9 May EU refinery runs at post-pandemic high European traders narrowly built their stockpiles of every major product in April, especially ...

8 May Open arbitrage prompts China to import diesel Chinese refiners are importing diesel to take advantage of an open arbitrage window and granted import quotas...

8 May Jones Act owner OSG swings to profit in 1Q US-based Jones Act tanker owner Overseas Shipholding Group (OSG) swung to profit in the first quarter on fewer layup days for its ...

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News

04/10/24

Global bio-bunker demand to pick up, US left behind

New York, 4 October (Argus) — Tightening vessel carbon intensity indicator (CII) scores and looming 2025 FuelEU marine regulation are expected to raise biodiesel demand for bunkering, but non-competitive US prices should continue to weigh down on US bio-bunker demand. Houston B30, a blend of used cooking methyl ester (Ucome) and very low-sulphur fuel oil (VLSFO), in September averaged at $821/t, a $45/t premium to B30 sold in Amsterdam-Rotterdam-Antwerp, and a $55/t premium to B24 sold in the west Mediterranean hub of Gibraltar and Algeciras (see chart) . Houston B30 was also priced at $115/t and $61/t premium to B24 sold in Singapore and Guangzhou, China, respectively. The price premium would continue to incentivize ship owners with global, ocean-going fleets to pick Asia first for their biodiesel bunker purchases, followed by northwest Europe and western Mediterranean. US demand for biodiesel for bunkering would continue to stagnate unless the US passes a legislation allowing Renewable Identification Number (RIN) credit under the US Renewable Fuel Standard (RFS) program be used by ocean-going vessels fueling with biodiesel in US ports. The legislation could level US' price playing field. Two bipartisan bills were put forward in support of renewable fuel for ocean-going vessels, one in the US Senate this year and one in the US House of Representatives last year, but they are currently dead in the water. Conventional marine fuels are priced cheaper than biodiesel and green varieties of LNG, ammonia, methanol, and hydrogen. But tightening International Maritime Organization (IMO) and EU regulations are forcing the hand of ship operators to consider green fuels to avoid hefty penalties and having their vessels suspended from trading. Ship owners whose vessels are outfitted with LNG-burning engines, are poised to have the lowest marine fuel expense heading into 2025, as fossil LNG is currently ship owners' cheapest low-carbon fuel option. But retrofitting a vessel to burn LNG could range from $5-$35mn, depending on the size of the vessel. Biodiesel, a plug-and-play fuel that does not require a vessel retrofit, is the second cheapest low-carbon fuel option after fossil LNG. IMO's CII regulation came into force in January 2023 and requires vessels over 5,000 gt to report their carbon intensity, which is then scored from A to E. The scoring levels are lowered yearly by about 2pc, so even a vessel with no change in CII could drop from C to D in one year. If a vessel receives a D score three years in a row or E score in the previous year, the vessel owner must submit a corrective actions plan. E scoring vessels could be prohibited from entering some ports' territorial waters, but this penalty is yet to be imposed on any E vessels. In 2023, the IMO reported that 40pc of the vessels scored A or B, 27pc scored C, 19pc scored D or E and 14pc were unresponsive. The EU's FuelEU maritime regulation will require ship operators traveling in, out and within EU territorial waters to gradually reduce their greenhouse gas (GHG) intensity on a lifecycle basis, starting with a 2pc reduction in 2025, 6pc in 2030 and so on until getting to an 80pc drop, compared with 2020 base year levels. It imposes a penalty of €2,400/t ($2,629/t) of VLSFO equivalent energy for vessel fleets exceeding its GHG limits. By Stefka Wechsler Biodiesel blends* Houston less global ports $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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News

US tops expectations with 254,000 jobs in Sep

04/10/24

News

04/10/24

US tops expectations with 254,000 jobs in Sep

Houston, 4 October (Argus) — The US added more jobs than expected in September and the unemployment rate ticked down, signs the labor market is strengthening heading into the US presidential election. US nonfarm payrolls rose by 254,000 workers last month, and the jobless rate fell to 4.1pc, the Labor Department reported Friday. Gains in August were revised up by 17,000 to 159,000 and those in July were revised up by 55,000 to 144,000. September's job gains were much higher than the 140,000 estimated by economists in a Trading Economics survey. Job gains blew past expectations in the same month the Federal Reserve began cutting interest rates for the first time since 2020, citing concerns that a weakening labor market might pull down the overall economy. Odds of a quarter point rate cut at the next Fed meeting in November rose to 91pc today from about 68pc Thursday, according to fed funds futures markets, while odds of a half-point cut fell to 9pc. The Fed last month penciled in 50 basis points of cuts in the remainder of this year. Job gains were higher than the average monthly gains of 203,000 over the prior 12 months, the Labor Department reported. Employment continued to move higher in food services and drinking establishments, health care, government, social assistance and construction. The labor market was little affected by Hurricane Francine, which made landfall in Louisiana on 11 September, during the reference periods for the surveys that contribute to the report. Gains in restaurants and drinking places rose by 69,000 jobs, much higher than the average 14,000 added over the prior 12 months. Health care added 45,000 jobs, below the monthly average of 57,000. Government added 31,000 compared with monthly averages of 45,000. Social assistance added 27,000. Construction added 25,000, near the monthly average. Manufacturing lost 7,000 jobs, most of them in the auto industry. The unemployment rate fell from 4.2pc in August, still higher than the five-decade low of 3.4pc posted in early 2023. Average hourly earnings rose by 4pc in the 12 months through September, up from 3.8pc through August. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Ocean Petro Gulf to operate Jafza bitumen terminal

04/10/24

News

04/10/24

Ocean Petro Gulf to operate Jafza bitumen terminal

Mumbai, 4 October (Argus) — Dubai-based trading firm Ocean Petro Gulf (OPG) has leased an oil products and bitumen storage facility terminal in the Jebel Ali Free Zone (Jafza) from energy logistics firm Tristar, and will be the operator, according to market sources. OPG is planning to expand by building a 10,000t bitumen storage facility at the terminal in the near term. OPG has agreed with Tristar to construct the bitumen storage tank on expectations of rising demand in that location. The terminal was previously owned by Shell and was acquired by Tristar in mid-2022. The terminal has been leased out to OPG as of October under a long-term operator arrangement, but the duration of the lease was undisclosed. The terminal currently has a bitumen storage capacity of 11,000t, and can import and export about 350,000 t/yr of oil products. The operatorship agreement also includes an integrated 90,000 t/yr polymer modified bitumen (PMB) plant, drums filling facility and an emulsion plant. The terminal also has a bitumen and PMB testing facility. By Sathya Narayanan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Nis steps up bitumen, restarts PMB output at Pancevo

04/10/24

News

04/10/24

Nis steps up bitumen, restarts PMB output at Pancevo

London, 4 October (Argus) — Serbian refiner Nis has stepped up bitumen production and supply at its 110,000 b/d Pancevo refinery after taking delivery of a cargo of bitumen-rich Iraqi Kirkuk crude. A market participant said the Kirkuk cargo was shipped from a Mideast Gulf loading point. A political stand-off since March 2023 has meant northern Iraq crude cannot be supplied into the Mediterranean region via the pipeline from Kirkuk to Ceyhan, southeast Turkey. The switch to the bitumen-rich crude, after lighter grades had been run through Pancevo in recent months, has also allowed Nis to restart its polymer-modified bitumen (PMB) manufacturing plant at Pancevo this week. The higher quality grade, which is produced by adding polymers like styrene-butadiene-styrene (SBS) in the initially produced bitumen mix, is increasingly used on some road, highway and airport projects. The PMB plant had been shut since June because the lighter crudes feeding the refinery failed to yield the right specifications and quality of PMBs after mixing with SBS. Nis plans to run another bitumen-yielding Iraqi crude, Basrah Medium, along with Kirkuk this month, helping significantly boost bitumen production for supply into the country's domestic and export markets — mainly Romania and Bosnia-Herzegovina. The heavier crudes will yield very high-sulphur grades of petcoke, the market participant said. By Keyvan Hedvat Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

UK confirms $28.5bn funding for two CCS, H2 clusters

04/10/24

News

04/10/24

UK confirms $28.5bn funding for two CCS, H2 clusters

Hamburg, 4 October (Argus) — The UK government has finalised a commitment to provide £21.7bn ($28.5bn) over the next 25 years to two planned clusters for carbon capture and storage (CCS) and connected projects, including for hydrogen production. The government has reached "commercial agreement with industry" for development of the clusters, it said today. The funding will go to the HyNet cluster in northwest England and the East Coast cluster in England's northeastern Humber and Teesside regions. The two projects were selected as "Track 1" priority clusters in 2021 and could together store some 650mn t of CO2. They could attract £8bn of private investment, the government said today. "The allocation of funding marks the launch of the UK's CCS industry," according to Italy's integrated Eni, which leads the development of HyNet's CO2 transport and storage system. Eni in February gave a start date of 2027 for HyNet. The East Coast cluster is led by the Northern Endurance Partnership, a joint venture between BP, TotalEnergies and Norwegian state-controlled Equinor. A range of projects will connect to the two hubs to transport and permanently sequester the carbon. These will include hydrogen production projects and supporting infrastructure. HyNet will involve projects developed by EET Hydrogen , a subsidiary of Indian conglomerate Essar, which is planning to bring a 350MW plant for hydrogen production from natural gas with CCS online by 2027 and another 700MW facility by 2028. The hydrogen will be partly used at EET Hydrogen's sister company EET Fuels at its 195,000 b/d Stanlow refinery but some will also be delivered to industrial consumers in the area. The HyNet cluster includes plans for 125km of new pipelines to transport hydrogen. The East Coast cluster involves Equinor's [600MW H2H Saltend] project and BP's 160,000 t/yr H2Teesside venture . German utility Uniper's 720MW Humber H2ub (Blue) project, UK-based Kellas Midstream's 1GW H2NorthEast plant and a retrofit facility from BOC , which is part of industrial gas firm Linde, could also connect to the cluster for CO2 storage. All the projects are due to enter into operation before the end of this decade. The funding confirmation for the CCS hubs "is a vital step forward, catapulting hydrogen towards long-term certainty we need in the UK", industry body the Hydrogen Energy Association's chief executive Celia Greaves said. The previous government last year picked two "Track 2" carbon capture clusters that are scheduled to start operations by 2030 — the Acorn facility in Scotland and the Viking project in northeast England. By Stefan Krumpelmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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