Houston Ship Channel reopens to vessel traffic: Update

Market: Agriculture, Biofuels, Chemicals, Coal, Coking coal, Crude oil, Freight, LPG, Metals, Natural gas, Oil products, Petrochemicals, Petroleum coke
17/02/21

Updates status of the Houston Ship Channel and Port of Houston

The Houston Ship Chanel and Port of Houston reopened to all vessel traffic at 10:30am ET today, according to the US Coast Guard, after closing yesterday at 7:30pm because of freezing weather in the area.

As of 10:30 today, six vessels were waiting to enter the channel, and four vessels were waiting to exit the channel, according to shipping agency Moran Shipping.

The Texas ports of Galveston and Texas City, which closed to all vessel traffic at 7pm on 14 February, remained closed today. The ports of Port Arthur, Beaumont and Orange closed to all vessel traffic yesterday at 4:30pm, while Corpus Christi closed to all vessel traffic yesterday at 11:50pm, and Freeport closed today at 7:45am.

Today is the fourth straight day that Texas ports have been restricted because of freezing weather.

By Michael Connolly

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12/11/24

EU steelmakers ask for scrap export curbs

London, 12 November (Argus) — European steel producers association Eurofer continues to lobby the European Commission to curb scrap exports as the industry looks to decarbonise. On 12 November, Eurofer reiterated its view that the commission "recognise steel scrap as a strategic secondary raw material under the critical Raw Material Act, ensure the robust implementation and effective enforcement of the revised EU Waste Shipment Regulation to ensure compliance with the EU environmental standards in third countries and avoid circumvention, while securing a sustainable and diversified raw materials supply by leveraging bilateral Free Trade Agreements, granting reciprocal market access and eliminating illegal export bans and other distortions." EU scrap consumption is due to increase significantly in the coming years. "Scrap exports to third countries without comparable environmental and social standards [therefore] need to be restricted to ensure that the use of ferrous scrap generated in the EU contributes to sustainability objectives aligned with the EU ones," Eurofer said. The EU has long been a net exporter of ferrous scrap, with outflows of the material standing just shy of 11mn t in the first eight months of this year, customs figures show. Last year the EU exported 17.67mn t of ferrous scrap, a 5pc rise on the year. The bloc's trade has always been heavily focused on Turkey, the world's largest importer of ferrous scrap, with annual trade ranging from over half to two-thirds of total exported volumes in the past five years. Turkey, with around three-quarters of steel production based on electric arc furnace route, is heavily reliant on European-origin material. Turkey's share of EU exports increased in recent years after the UK left the EU, but the share of shipments from the bloc started rising from the second half of the mid-2010s, when Russia, another major ferrous scrap supplier to Turkey, started restricting exports. Russian exports of scrap to Turkey fell from around 2.5mn t in 2018, to 1.9mn t in 2019 and 2021 and to just over 400,000t in 2022-24. The EU's major trading partners for scrap include Egypt, India and Pakistan, all of which are third countries to the EU and non-OECD countries whose import volumes have been increasing as Asia continued to grow its steelmaking capacities, mostly through the IF (induction furnace) route. The EU's intention to restrict scrap exports has been deeply unsettling for the many developing markets' representatives, as much as its movement towards the implementation of CBAM (Carbon Border Adjustment Mechanism), which will reduce the possibility of exports to the EU from countries where steelmaking processes and carbon emissions are not compliant with the EU's stricter standards. By Corey Aunger and Katya Ourakova Annual EU-27 ferrous scrap exports metric tonnes Country 2020 2021 2022 2023 2024 Turkey 11,247,281.0 12,676,091.0 10,327,403.0 10,088,491.0 6,826,876.0 Egypt 1,076,930.0 1,810,866.0 1,431,831.0 1,570,352.0 1,237,722.0 India 443,130.0 294,994.0 1,108,881.0 1,906,608.0 576,008.0 Pakistan 853,178.0 727,466.0 700,879.0 731,182.0 371,943.0 Switzerland 455,034.0 511,098.0 463,440.0 339,894.0 355,709.0 Norway 314,627.0 294,956.0 396,933.0 451,873.0 309,299.0 Morocco 197,803.0 329,901.0 556,417.0 442,498.0 258,630.0 UK 361,741.0 307,281.0 307,173.0 275,125.0 203,786.0 US 622,523.0 574,264.0 316,077.0 694,507.0 182,064.0 Moldova (Rep. of) 251,184.0 344,609.0 79,788.0 192,964.0 179,579.0 Republic of North Macedonia 74,951.0 106,400.0 112,176.0 165,404.0 115,626.0 Bangladesh 107,611.0 149,570.0 700,108.0 388,936.0 91,410.0 Total 16,371,459 18,542,680 16,843,989 17,674,602 10,822,245 2024 data for January to August — Customs and Eurostat data Turkey's total and European scrap imports, 2010-24 Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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California RD plant signals later start up

12/11/24

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12/11/24

California RD plant signals later start up

New York, 12 November (Argus) — An long-delayed project to convert a Bakersfield, California, oil refinery to produce renewable diesel (RD) has been given another extension for start up. Global Clean Energy Holdings, working to open a 15,000 b/d RD refinery, and trading house Vitol agreed last week to adjust the terms of a supply and offtake deal singed in June. The initial agreement said that Vitol could exit the agreement if the refinery was not producing at least 5,000 b/d of renewable diesel by the end of October, but that deadline has now been moved to 15 December. Global Clean Energy told Argus last month that it still has "plans in place to complete the remaining work and start up the facility" despite recently cancelling an agreement with its principal contractor. Vitol, after an initial three-year term, can now request up to three one-year extensions of the contract, up from two in the initial deal. The agreement, which cleared the way for former business partner ExxonMobil to exit, stipulates that Vitol will be the exclusive supplier of feedstocks to the plant and exclusive marketer of all fuel and environmental attributes. The revised agreement also says that if Global Clean Energy modifies its credit agreement to allow for more than $330mn in debt financing, then the renewable fuels producer will have to pay Vitol an additional fee that increases as more funds are borrowed. Global Clean Energy declined to clarify whether it had already triggered the obligation to pay Vitol the excess fee, saying that it could not provide more information ahead of filing its quarterly investor report "in the near future." If the plant begins operations as planned, it will have to contend with a challenging investment environment for biorefineries given recently low environmental credit prices and uncertainty around how president-elect Donald Trump will enforce a new federal clean fuels tax credit. At the same time, California regulators agreed last week to update the state low-carbon fuel standard, including by setting stricter carbon intensity targets that start next year. The regulatory updates lifted the prices of credits used for program compliance, which are a crucial source of revenue for companies bringing lower-carbon fuels like renewable diesel into the state. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Finnish, Baltic gas demand falls on year in October

12/11/24

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12/11/24

Finnish, Baltic gas demand falls on year in October

London, 12 November (Argus) — Aggregate Finnish and Baltic gas consumption dropped by nearly 24pc on the year in October, but still reached a six-month high as the heating season began. Combined demand in Finland, Estonia, Latvia and Lithuania last month rose to 3.19TWh from 2.61TWh in September , in line with the typical seasonal progression, but was well below the 4.18TWh consumed a year earlier and the average of roughly 5.2TWh in 2018-21 ( see consumption graph, data and download ). Demand in all four individual countries was lower on the year, with the biggest drop in Lithuania, where consumption fell by more than 600GWh. In October 2023, the region's biggest consumer Achema had briefly resumed full production at both of its ammonia production units at Jonava , boosting Lithuanian demand that month. Despite the year-on-year drop, this was the fifth consecutive month-on-month increase after demand hit a near two-year low in May. Cumulative demand in the first 10 months of the year totalled 35TWh, well up from 30.3TWh a year earlier. That said, strong demand in the first quarter when the region experienced a prolonged cold snap supported a slightly skewed figure. If only considering April-October, demand of 18.5TWh was slightly below last year's 18.9TWh and well under the 30TWh average in 2018-21. This may indicate a more structural decline in the region's gas demand, particularly with power-sector demand falling as higher nuclear and renewables output cuts into the room left available for gas in the generation stack. Gas-fired power generation in the four countries totalled 186GWh last month, Fraunhofer ISE data show. This was well below 307GWh in October 2023, and the second lowest for any October since at least 2018 ( see gas-fired power graph ). Gas-fired output was lower on the year in all four countries, with roughly 40GWh drops in Lithuania, Finland and Latvia. Onshore wind production in Finland, by far the region's largest overall power producer, jumped by more than 1TWh on the year, more than offsetting lower nuclear and hydro output. This allowed Finland to net export around 150GWh of power, having net imported nearly 300GWh in October 2023, according to Fraunhofer data. Prices on the regional GET Baltic exchange averaged €41.74/MWh in October, up by 3pc on the month but 18pc down on the year. The price on the exchange "increasingly correlates with" the TTF, a correlation that will likely strengthen as GET Baltic trading migrates to the larger EEX platform next year , chief executive Giedre Kurme said. This transition will "create opportunities for competition, more liquid trading and price convergence", and "we are already seeing increased interest from international participants in the Baltic-Finland region", Kurme said. Firms traded 708GWh on the exchange in October, the most for any month since February, and all transactions were on the daily market. The joint Latvian-Estonian market accounted for 43pc of total trades, followed by Lithuania at 31pc and Finland at 26pc, GET Baltic said. Maintenance continues to limit Finnish LNG sendout Extensive maintenance on the Balticconnector pipeline this month, which makes all southbound capacity from Finland towards Estonia unavailable, continues to limit sendout from Finland's Inkoo LNG terminal. After maintenance on the 14-27 October gas days took exit capacity towards Estonia fully off line, this capacity is again unavailable because of further maintenance on 4-17 November. Without southward pipeline capacity, sendout from Inkoo must fall to levels that only the domestic market can absorb. Inkoo received the 145,000m³ Arctic Princess just before the maintenance started on 3 November, and the next scheduled delivery is not until 28 November ( see LNG data and download ). Sendout is likely to remain low even after the end of maintenance so as not to fully deplete stocks before the next arrival. Sendout from Inkoo averaged 23 GWh/d on 4-11 November. In contrast, sendout from Lithuania's Klaipeda terminal has jumped to 104 GWh/d this month, helping to plug the Baltic supply gap left by no southward inflows from Finland. Sendout from Klaipeda has been higher this month than the 85 GWh/d in October and 80 GWh/d on 1-11 October last year. Klaipeda has already received two cargoes this month, on 4 and 12 November, and will receive a further two on 21 and 29 November, the terminal's schedule shows. This suggests that sendout is likely to remain brisk for the rest of this month, helping to meet higher regional demand as the weather turns colder and limits the need for strong withdrawals from storage early in the winter season. By Brendan A'Hearn FinBalt gas consumption by country GWh Gas-fired power generation by country GWh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Algerian bitumen importers eye resumed Spain flows

12/11/24

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12/11/24

Algerian bitumen importers eye resumed Spain flows

London, 12 November (Argus) — Algerian bitumen importers are getting ready to resume cargo imports from Spain after the Algerian government signalled last week that trade can restart for the first time in more than two years. The government's decision in June 2022 to suspend a friendship and co-operation treaty with Spain, linked to Madrid's public recognition of Morocco's autonomy plan for Western Sahara, led to the immediate cancellation of previously agreed bitumen cargo movements from Spain to Algeria. In a notice issued by the Bank of Algeria on 6 November, Algerian firms were told they could resume trade with their Spanish counterparts under the usual transaction rules, and both state-owned and private Algerian bitumen importers say they are now free to discuss deals to buy and bring Spanish cargoes to their facilities for supply into the domestic market. No such deals are understood to have been concluded yet, but private importers into western Algerian import terminals like Ghazaouet, Oran and Arzew are well placed because of their relative proximity to Spanish export terminals at Tarragona, Huelva and Cadiz compared with existing supply sources in Italy and even more so when compared with cargoes shipped from Greece or Turkey. Ship brokers said freight rates for standard 5,000t bitumen tanker cargo movements from Tarragona — site of a 1.2mn t/yr Asesa bitumen refinery held in a 50-50 joint venture by Repsol and Moeve, formerly Cepsa, — to Ghazaouet are around $35/t, compared with around $50/t for the Augusta, Italy, to Ghazaouet route. Spanish and international bitumen trading and supply firms are still examining the Algerian developments and seeking clearance "on all sides", as one said today, before resuming bitumen cargo discussions with their Algerian counterparts. That could mean the actual restart of Spain-Algeria flows takes until early 2025. Demand for now may be hindered by a pre-winter slowdown in Algerian road construction and bitumen-consuming activity as weather conditions gradually worsen. Algerian state-owned Sonatrach, which imports cargoes into a raft of bitumen terminals along the country's Mediterranean coast, is largely dependent on substantial term flows from Sonatrach Raffineria Italiana's (SRI) 170,000 b/d refinery and export terminal at Augusta, Sicily, and occasionally takes Greek cargoes from Motor Oil Hellas' Agioi Theodoroi refinery and export terminal at Corinth. Sonatrach is less likely than private Algerian buyers to seek Spanish cargoes, on which it had been highly reliant until 2020 before it switched in a big way to Augusta after it bought the refinery there from ExxonMobil in 2018. Algerian market participants said the recent slippage in bitumen cargo prices linked to Mediterranean high-sulphur fuel oil (HSFO) declines and seasonally weakening bitumen cargo differentials to the regional HSFO cargo prices — coupled with a late season slippage in cross-Mediterranean freight rates over the past few weeks — are all factors conducive to resumed imports from Spain. Spanish fob cargo premiums to Mediterranean HSFO cargoes have dropped from around $10/t in mid-October to $2-3/t last week, while outright prices for Spanish bitumen exports have slipped from $498-499/t fob to $458/t over the same period. By Keyvan Hedvat Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Negotiators positive on remaining Article 6 talks

12/11/24

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12/11/24

Cop: Negotiators positive on remaining Article 6 talks

Baku, 12 November (Argus) — Negotiators have a "positive attitude" towards outstanding talks on Article 6 of the Paris Agreement taking place at the UN Cop 29 climate conference in Baku, Azerbaijan, bolstered by the finalisation of crediting mechanism standards yesterday. The adoption of two key Article 6.4 standards on Monday night kicks off remaining talks on a very positive note, Switzerland's lead negotiator on international carbon markets under Article 6, Simon Fellermeyer, said. The approval has set the mood for remaining negotiations, lead Article 6 negotiator for New Zealand Jacqui Ruesga added. Article 6 of the Paris accord aims to help set rules on global carbon trade. Negotiators have already seen a more constructive attitude to discussions since the failed talks at Cop 28 in Dubai last December, Ruesga said. This was spurred on by disappointment at the lack of outcome last year, and supported by a number of informal meetings organised in the lead-up to June's Bonn climate conference, as well as increasing direction from heads of delegation on the subject. Divergence persists on some issues, but negotiators still have this positive attitude, Ruesga said. Different sides have also begun communicating the reasons behind their positions more clearly, Article 6 negotiator for Colombia Adriana Gutierrez added, which she hopes will help bring a result this year. Outstanding questions include how to deal with reporting inconsistencies and credit authorisations. Countries also still disagree on the question of whether Article 6.2's international registry should be capable of holding internationally transferable mitigation outcome (Itmo) units, or simply provide an accounting function. But talks on this point are progressing along the lines of deciding which potential functions of the registry could be integrated or dropped in the view of opposing sides, Ruesga said. The first ever Itmo transfer, which took place between Switzerland and Thailand earlier this year , would have been much easier through such a registry, Fellermeyer said. Gutierrez expects most remaining topics to be concluded ahead of Cop 30 in Belem, Brazil, next year. But some smaller, more technical elements are "bound to stick through" to the next summit, Ruesga said. There is not much appetite to reopen most elements for discussion next year, Fellermeyer said, meaning it could be that they are either concluded in Baku or left in a state of "constructive ambiguity". Agreement in Baku on the remaining Article 6 elements is important to give confidence to potential participants, Fellermeyer said, having encountered parties who declined to cooperate through the mechanism owing to a lack of visibility on the rules. By Victoria Hatherick Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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