Curacao sells Venezuelan asphalt batch

Market: Crude oil, Oil products
30/07/21

Curacao's state-owned RdK released a batch of asphalt-quality bitumen in the first sale of inventory left behind by Venezuela's state-owned PdV.

The 73,000 tons of AC-30 bitumen loaded yesterday aboard the Hong Kong-flagged Da Ming Shan asphalt tanker, which ship-tracking services indicate is currently in Willemstad.

RdK did not identify the buyer or the value of the transaction. The vessel is currently on a time-charter contract with trading firm Gunvor.

RdK told Argus it expects to earn 60mn Curacao and Sint Maarten guilders ($33.5mn) from the sale of the varied inventory.

"Proceeds generated by the sale of all the products will be used to invest to guarantee the long-term sustainable future of the company," RdK said.

PdV had operated Curacao's 335,000 b/d Isla refinery and Bullen Bay terminal under a long-term lease that expired in December 2019. The Dutch-controlled Caribbean island's long efforts to find a new refinery operator have so far come up dry.

RdK is currently in the process of closing its money-losing refinery utilities subsidiary CRU as of 30 September.

PdV has been the target of US oil sanctions since January 2019.

By Patricia Garip

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18/11/24

Cop: Progress on actions to cut emissions uncertain

Baku, 18 November (Argus) — Progress on mitigation — actions to cut greenhouse gas emissions — is uncertain at the UN Cop 29 climate summit, as talks on a specific text related to the issue are at risk to be pushed back to 2025, losing any progress made in the past year. Some countries had proposed using the mitigation work programme — a work stream focused on reducing emissions — to progress the commitment made at Cop 28 in 2023 to "transition away" from fossil fuels. But talks have stalled and could end without a conclusion at the summit. Developed countries as well as developing nations including some small island states and countries in Latin America — such as Brazil, Colombia, Peru, Mexico — have expressed disappointment about how mitigation talks were going. New Zealand called on countries to follow up on last year's decision on mitigation at Cop 28 and Norway added that these issues deserved "more than silence on mitigation". Switzerland complained that mitigation was "held up by a select few", and said that the discussion was critical for increased commitments for next year's 2035 Nationally Determined Contributions (NDCs). NDCs are countries' climate plans that include emissions reduction targets. Cop parties are due to submit new versions by February 2025. The US also said that Cop 29 needed to "reaffirm the historical Global Stocktake decision" taken last year. And developed nations, led by the EU, called for the discussion to continue this week — the second week of Cop 29. But countries including Bolivia, Iran and Saudi Arabia, for the Arab Group, pushed back on this. The mitigation work programme is "not… open to reinterpretation", Saudi Arabia's representative said today. The country said earlier that it did not want new targets to be imposed, complaining about the "top-down approach" taken by developed countries. India reminded developed countries that they have yet to deliver on their new finance commitment — a crucial step for more ambitious NDCs in developing nations. But "Cop 29 cannot and will not be silent on mitigation", the summit's president, Mukhtar Babayev said today. "On mitigation we have been clear that we must make progress, "he said, adding that he has asked ministers from Norway and South Africa to consult on what an outcome on mitigation could look like. EU climate commissioner Wopke Hoekstra today said that it is "imperative that we send a strong signal this week for the next round of NDCs", he said. Points related to mitigation — including transitioning away from fossil fuels and phasing out inefficient fossil fuels subsidies — are currently mentioned in the draft text for the new finance goal, known as the new collective quantified goal (NCQG). It is the key issue at Cop 29. Developed countries agreed to deliver $100bn/yr in climate finance to developing nations over 2020-25, and Cop parties must decide on the next stage — including the amount. Developed countries are likely push for the fossil fuel language to stay in the finance goal text, especially if mitigation talks stall elsewhere. But countries such as Saudi Arabia have long opposed this, while developed countries have received some criticism for still not having given an amount for the new finance target. By Georgia Gratton, Prethika Nair and Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: G20 momentum key to Cop climate finance outcome

18/11/24

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18/11/24

Cop: G20 momentum key to Cop climate finance outcome

Baku, 18 November (Argus) — The outcome of the G20 leaders' summit in Brazil taking place on Monday and Tuesday on climate financing will be key to the success of the UN Cop 29 climate conference in Baku, Azerbaijan, summit president Mukhtar Babayev said today. "We cannot succeed without [the G20], and the world is waiting to hear from them," Babayev said. The leaders' summit takes place at the beginning of the second week of the Cop 29 conference. Progress at Cop 29 last week towards agreeing a new climate finance target for developing countries — the so-called NCQG — was not sufficient, Babayev said. He is concerned that parties are not moving towards each other fast enough. Little progress was made in the first week on three main areas of disagreement: the amount of climate finance which should be provided, how it should be structured, and which countries should contribute. Babayev urged G20 leaders, including US president Joe Biden who will be present in Brazil, to send a "positive signal of commitment to solving the climate crisis," and deliver clear mandates for Cop 29. The talks in Baku move from the technical to the political phase this week. Ministers typically have more authority to move red lines. But parties should focus on wrapping up less contentious issues early in the week so as to leave time for major political decisions, according to Simon Stiell, executive secretary of UN climate body the UNFCCC. Babayev expects talks on the amount of climate financing which will be on the table to continue until the last day of the summit at the end of this week, he said. The Cop presidency has invited former and upcoming Cop hosts the UK and Brazil to advise and "ensure an ambitious and balanced package of negotiated outcomes." Both countries have in the past week communicated more ambitious emissions reduction targets, which have been broadly welcomed. The EU today called for the Cop presidency to step up its role in the process. "We do need a presidency to lead, to steer us in the direction of a safe landing ground," European commissioner for climate action Wopke Hoekstra said. Hoekstra declined to be drawn on the amount of climate financing that the EU would like to see. Developing countries have pushed for a high goal of $1.3 trillion/yr, well above the previous target of $100bn/yr. The EU today reiterated instead its desire for the base of contributor countries to be enlarged beyond the current roster of countries defined as developed under the UNFCCC, and for as much private finance to be mobilised as possible to add to public finance. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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German diesel demand at year-high with winter shift

18/11/24

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18/11/24

German diesel demand at year-high with winter shift

Hamburg, 18 November (Argus) — Traders in Germany noted a significant increase in diesel demand at the start of the past week because of lower prices and the transition to winter-grade fuel. Spot sales of heating oil and gasoline rose, particularly in the south and southwest. Middle distillates in Germany traded on 11-12 November at lower prices than in the week prior, pressured by declining Ice gasoil futures. But these rose in the following days. There is uncertainty in the market around the potential impact of US President-elect Donald Trump's trade policy from January. The upcoming switch to winter diesel in Germany could be leading to increased demand. Most tank storage and refinery operators have, since 1 November, been offering diesel and gasoline in winter quality. Only winter-grade fuel can be dispensed from 16 November. Consumers in recent weeks have been ordering smaller amounts of diesel, waiting for the switch to winter specification before replenishing stocks, traders told Argus . Consequently, diesel spot volumes reported to Argus increased to the highest this year on 11 November. Traded quantities of heating oil and gasoline also rose. But buying interest for middle distillates and gasoline weakened as the week went on. This month has seen high imports into northern Germany and elevated refinery production. On the Rhine river, falling water levels at the Kaub bottleneck has led to increased freight rates from Amsterdam-Rotterdam-Antwerp (ARA) to destinations on the Upper Rhine. But demand for shipping space from importers in mid-November is so weak that the effect of low water levels on the rates was dampened, shipowners said. Water levels are forecast to rise in the coming days. TotalEnergies' 240,000 b/d Leuna refinery in eastern Germany, close to the border with Czech Republic, ended a maintenance shutdown in the past week. The shutdown had only minor effects on product availability but lasted longer than expected because of technical problems when ramping up. Leuna producing again marks the end of this year's maintenance season in Germany. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US west coast refiners boost Canadian TMX intake

18/11/24

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18/11/24

US west coast refiners boost Canadian TMX intake

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Canadian TMX crude finds favour in China

18/11/24

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18/11/24

Canadian TMX crude finds favour in China

London, 18 November (Argus) — Canadian heavy crude exported from the country's west coast has become a steady supply source for Chinese refiners in the six months since the opening of the Trans Mountain Expansion (TMX) pipeline in May, even as refiners elsewhere in Asia-Pacific have been more cautious about embracing the new flows. China-bound exports of Canadian heavy sour crude delivered along the TMX pipeline to Vancouver climbed to a fresh high of around 240,000 b/d in October, analytics platform Vortexa data show (see graph). This left average TMX loadings to China at around 150,000 b/d in June-October. The 590,000 b/d TMX project started loading cargoes in May. While Chinese refiners have been quick to embrace the convenience of the shortened time to import crude from Canada's Pacific coast, this has not been the case for other Asian refiners. China looked set to absorb all the October TMX exports to Asia-Pacific. Exports to other Asian destinations — South Korea, India, Japan and Brunei — averaged just 37,000 b/d in June-October. Weak refining margins may have encouraged Chinese buyers to turn to TMX-shipped crude, which has become their cheapest supply source not under sanctions. Private-sector Rongsheng has become a key buyer to meet its spot requirements of 4mn-6mn bl/month for the 800,000 b/d ZPC refinery in Zhejiang. The firm now buys between three and seven cargoes a month, or 53,000-125,000 b/d, of TMX crude, mainly Access Western Blend (AWB), a heavy sour grade with a higher total acid number (TAN) than Cold Lake, the other heavy sour TMX export. China's largest state-owned refiner Sinopec has also been a consistent buyer of AWB for its 470,000 b/d Maoming and 540,000 b/d Zhenhai refineries, and the increased Chinese buying of Canadian crude has displaced some of the country's usual intake from the Mideast Gulf . Rongsheng in the past bought large amounts of UAE grades including medium sour Upper Zakum through monthly spot tenders. Upper Zakum exports to China fell to around 380,000 b/d in June-October from just over 430,000 b/d in January-May and 615,000 b/d in 2023. The steep drop from last year might also be down to lower availabilities after Abu Dhabi's state-owned Adnoc started to divert more Upper Zakum to its domestic Ruwais refinery late last year as part of its crude flexibility project. But Iraqi Basrah Heavy flows to China have risen this year from 2023, defying early expectations that the heavy sour grade would be squeezed out by TMX crude. Traders in Asia-Pacific say medium sour grades have been most affected, including US Mars, with Asian imports this year falling to the lowest since the grade started moving to the region in 2017. Stuttering start Demand for TMX crude has not picked up as quickly elsewhere in Asia. Early interest surfaced from India, with private-sector Reliance Industries receiving a 2mn bl cargo of AWB in July, but no crude shipments have left Vancouver for India since then. Indian refiners may be wary of AWB's high TAN and the logistical challenges facing shipments. The July cargo made its way to India after three ship-to-ship transfers and the voyage took nearly two months. Reliance may instead prefer even cheaper Venezuelan crude. Flows to South Korea appear to have dried up after just under 3mn bl of Cold Lake loaded in July-August for the country, with Vortexa data showing no departures for South Korea since. A cargo of Cold Lake was exported in August to Japan, and another in September to Brunei. Interest from Asian refiners other than China and India is likely to be focused on Cold Lake rather than the more acidic AWB, which would be harder to process at their plants. By Fabian Ng TMX Vancouver exports to Asia-Pacific Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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