Total eyes further HVO expansion
Total said today that it plans to add an additional 300,000 t/yr of hydrotreated vegetable oil (HVO) production capacity in Europe. It is also considering introducing HVO capacity at refineries in Texas and South Korea to help meet its goal to produce 5mn t/yr by 2030.
The 300,000 t/yr of extra production capacity in Europe will come from co-processing at existing facilities. The firm plans to bring the production on stream in 2022-24. This is in on top of 400,000 t/yr of HVO production at the Grandpuits refinery near Paris, which Total plans to convert to a biorefinery by 2024.
The company said it is also evaluating the possibility of co-processing HVO at its 240,000 b/d Port Arthur refinery in Texas and 240,000 b/d Daesan refinery in South Korea. It estimates that the co-processing projects in Europe and Texas would cost around $500/t, while the estimated cost for the Grandpuits and Daesan projects is $750/t. This compares with capital expenditure (capex) of around $600/t for Total's existing 500,000 t/yr HVO plant at La Mede.
Total said La Mede remains in a "ramp-up phase" and will produce around 300,000t of HVO this year. La Mede's capex is significantly lower than Finnish refiner Neste's Singapore unit and US refiner Valero's Saint Charles plant, according to Total.
The company said it plans to run 70pc of its feedstock at Grandpuits from used cooking oil (UCO) and animal fats (tallow). At a standard conversion rate of 1.13t of feedstock to 1t of HVO, this would amount to around 315,000 t/yr of UCO and tallow at Grandpuits. Total said it has already secured 50pc of the supplies needed.
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Venezuela's Maduro open to talks with the US
Venezuela's Maduro open to talks with the US
Caracas, 2 July (Argus) — Venezuelan leader Nicolas Maduro plans to talk with US envoys on Wednesday to discuss allowing the South American country to increase oil exports in exchange for free and fair elections, he said late on Monday. But Maduro's call for dialogue comes less than a month before the 28 July election in which polls show him up to 40 percentage points behind his main challenger. It is also after the US rescinded a six-month reprieve on sanctions in April, accusing Venezuela of violating a commitment to hold a fair vote. Maduro said that the US had sought dialogue with him "for two months in a row", and, "after thinking about it, I have accepted". The head of the pro-Maduro assembly elected in 2020, Jorge Rodriguez, will represent him in the talks, Maduro said. The US State Department declined to directly confirm Maduro's statement but said that the US welcomed "dialogue in good faith, and we support the Venezuelan people's desire for competitive and inclusive elections on July 28." The US ties sanctions relief to Maduro's observing the 2023 Barbados agreement with the Venezuelan opposition, which promised to hold a competitive presidential election. The US in April reimposed sanctions against Venezuela because the Maduro government did not allow the main opposition contender, Maria Corina Machado, to run for president. Former Venezuelan diplomat Edmundo Gonzalez is the sole presidential candidate representing the opposition Unitary Platform. "We are clear-eyed that democratic change will not be easy, and certainly requires a serious commitment," the US State Department said. "This is something that we will continue to focus on when we will engage in dialogue with with a broad range of Venezuelan actors." Venezuela in recent weeks has barred an additional 10 city mayors from running for office for 15 years after they expressed support for Gonzalez, according to the CNE electoral authority and the comptroller general's office. During the first six months of 2024 Maduro has arrested 39 people connected to Gonzalez's campaign, the last one as recently as 30 June, a campaign source told Argus, using figures from Venezuelan non-governmental organizations. Police over the weekend also detained Machado for several hours while leaving a rally for Gonzalez. Venezuela's oil output increased by around 4pc in May to 911,700 b/d from 878,000 b/d in April as drilling campaigns showed results after three months of flat production, according to the oil ministry. But US sanctions are expected to keep a cap on much additional growth. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UK bitumen production at highest since July 2021
UK bitumen production at highest since July 2021
London, 2 July (Argus) — UK bitumen production in April hit its highest in nearly three years even though there is only one remaining bitumen-producing refinery in the country, in Eastham. The UK government's latest provisional data showed production at 68,000t in April, up by 7pc compared with the same month last year. Bitumen production declined overall last year by 147,000t on the year to just 373,000t, the lowest since records began in 1995, after UK energy company Prax Group ceased all bitumen production at its Lindsey refinery in the northeast of England in early 2023. In January-April this year, the UK produced 77,000t of bitumen, a decrease of 10,000t from the same period last year. UK consumption in April was at 122,000t, up 7,000t since the other refineries in the UK closed by April 2023. With the UK's general election taking place on 4 July, parties have made promises which could support bitumen consumption. The UK government this year committed £8.3bn ($10.52bn) to fill potholes and resurface roads by 2034, and the UK opposition party Labour last month pledged to keep this plan in place if elected while additionally funding councils £320m over five year by deferring the planned A27 Arundel bypass works in Sussex. Asphalt Industry Alliance (AIA) in March 2024 published a report stating that the total number of potholes filled in 2022 was 1.4mn, down from 1.7mn in 2021 and the equivalent of one every 22 seconds. Spending on pothole repairs fell to £93.7mn last year from £107.4mn in 2021. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Prompt European gasoline forward curve in contango
Prompt European gasoline forward curve in contango
London, 2 July (Argus) — Prompt Eurobob gasoline time spreads have entered a contango structure — where prompt values are at a discount to forward prices — signalling the weakest structure for the time of year since the pandemic year of 2020. July Eurobob swaps were at a 75¢/t discount to August swaps at the close on 1 July. The spread had been in a relatively shallow backwardation — when prompt prices are at a premium to later dates — in recent sessions, although it has been narrowing steadily from $6.50/t on 1 June. It is uncommon for the forward structure to be in contango at this time of year. In the corresponding session last year the July swap was at a $19/t premium to the August swap, and since 2009 the current scenario has occurred only twice — in 2020 when much of Europe was under Covid-19 lockdown measures, and in 2016 when the front of the curve was pressured by high European inventories and high US supply. The contango structure reached $5.50/t on both occasions. The recent move builds on weakness exhibited last month , when the front of the forward curve between June and July moved into contango, a structure which was maintained through the rest of June. Demand for gasoline has failed to meet traders' expectations this European summer. Stock levels have been robust, particularly in the US where high refinery utilisation rates have boosted supply and stifled the requirement for European product. This was shown in gasoline crack spreads to North Sea Dated crude in June , which moved sharply lower — counter-seasonally — to an average of $14.87/bl, $5.83/bl lower than in May and down by $9.68/bl compared with year ago. There are already signs of this reversing however. In early trading today the front of the forward curve strengthened, with July marked at parity to August, according to brokers. Discounts in the spot barge market at the Amsterdam-Rotterdam-Antwerp (ARA) hub have narrowed relative to August Eurobob swaps today, indicating firmer demand, with participants saying there is a more workable transatlantic arbitrage. By Jonah Sweeney Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
France approves HVO100 at fuel stations
France approves HVO100 at fuel stations
London, 1 July (Argus) — France has approved the sale of transport fuels made from 100pc renewable raw materials such as pure hydrotreated vegetable oil, or HVO100, at fuel stations, according to Finnish biofuel producer Neste. Pure biofuel sales had so far been limited to logistics companies with fuel supply networks, said Neste. German filling station operators have been permitted to sell B10 and HVO for the past month . In May , the EU mandated that new heavy-duty vehicles (HDVs) from 2030 will require 45pc greenhouse gas (GHG) cuts for 2030-34, 65pc for 2035-39 and 90pc as of 2040, compared with fleet averages in 2019. The revised law covers most trucks, urban buses, long-distance buses and trailers. As hard-to-electrify vehicles, HDV owners often turn to biofuels like HVO to reduce GHG emissions. The EU will assess a "possible" methodology for registering HDVs running exclusively on "CO2 neutral fuels" in 2027, as well as examining the role of "sustainable renewable" fuels and a carbon correction factor (CCF). CO2-neutral fuels lack a clear definition but can refer to e-fuels, renewable fuels of non-biological origin (RFNBO), recycled carbon fuels, and some biofuels. All new cars and vans registered in Europe must be zero emission by 2035 , and CO2 emissions for new cars and vans must be cut by 55pc and 50pc by 2030. European diesel demand fell sharply in France, and in smaller consumers Norway and Sweden, in January-March this year . The declines, closely linked to economic activity, reflect weak economic growth, but also falling diesel vehicle sales in favour of gasoline. There appear to be signs of a diesel demand recovery in the second quarter, Argus Consulting said last week , as French diesel demand grew by 8pc on the year to 610,000 b/d in April, although gasoline growth again outpaced it, rising by 14pc to 270,000 b/d. By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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