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Illinois river work to hamper 2023 coke transit

  • Market: Freight, Petroleum coke
  • 07/12/22

Lock and dam closures will block vessel transit and curb southbound Illinois river petroleum coke shipments for part of 2023.

Closures at the Brandon Road, Dresden Island and Marseilles locks and dams are planned from 1 June through 30 September, according to the US Army Corps of Engineers (Corps). The closures threaten to hinder coke transport by barge from some midcontinent refineries.

Major carrier American Commercial Barge Line (ACBL) has set final barge departure dates from terminals along the Illinois from 17-24 May, depending on origin.

The work is part of a Corps plan to repair eight lock and dam sites waterway. The repair schedule included a brief closure in 2019 followed by an extended closure in 2020, forcing ExxonMobil's 240,000 b/d Joliet refinery to rely on rail and truck transportation for coke shipments, a source said. Some coke was also held in temporary storage.

The refinery is planning to manage coke shipments and storage in the same way during next year's lock and dam closures, the source said.

Other coke-producing refineries north of the affected locks and dams include the 167,000 b/d Citgo Lemont and 430,000 b/d BP Whiting refineries, which may also need to make adjustments to coke shipments.

"Everyone is getting ready" and working out plans of how best to manage the closures, another source said.

Historically low water levels on the Mississippi river have already been slowing petroleum coke shipments by barge recently, with barge groundings resulting in delays and barges having to be loaded more lightly.


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Caracas, 10 July (Argus) — The Venezuelan government under President Nicolas Maduro continues to threaten and harass opposition candidates ahead of 28 July national elections, where it trails in polls by as much as 60 percentage points. Since late June dozens of opposition campaign workers have been arrested under unclear charges, with many of them being released, according to figures compiled by non-governmental organisation (NGO) Acceso a la Justicia. A motorcade for opposition candidate Maria Corina Machado, who has been blocked from registering for the election, was stopped by police in Trujillo state in late June as well. Machado was detained for about an hour but said she was not told why she was held. Last week Unitary Platform party (PUD) presidential candidate Edmundo Gonzalez said he was harassed by government workers when boarding a flight on nationally-owned airline Conviasa, who blamed him for the imposition of US sanctions. In a webcast after the incident he said he received a letter from airline employees explaining how they are directed to harass the opposition ahead of time, using government-approved scripts. On Monday, attorney general Tarek William Saab ratcheted-up tensions even further, claiming in a televised address that the political opposition was trying to hire right-wing paramilitaries in Colombia to assassinate Maduro and attack power infrastructure in Zulia state. The harassment comes as national polls continue to show Maduro trailing Gonzalez by double-digits. A new poll released Wednesday by Meganalisis has Gonzalez garnering nearly 72pc of the votes to about 12pc for Maduro. The opposition and Venezuelan human rights NGO Laboratorio de Paz say the tactics violate the Barbados-Qatar agreements Maduro signed with PUD and the US to insure a partial lifting of oil sanctions in exchange of "free and fair" elections. The US has since reimposed sanctions. Maduro has already denied the right to vote to 5mn voting-age Venezuelans living abroad and disinvited the EU's electoral observation team for the elections. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Ship-to-ship transfers resume in GOM after storm


09/07/24
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09/07/24

Ship-to-ship transfers resume in GOM after storm

Calgary, 9 July (Argus) — Ship-to-ship transfers of crude, refined products and other commodities off the Texas coast resumed Tuesday after Hurricane Beryl postponed operations on Saturday. The US National Weather Service (NWS) forecast workable conditions with winds of 5-10 knots (6-12 mph) for the remainder of the week off the Texas coast from Corpus Christi to Beaumont after Hurricane Beryl brought gusts of up to 95 mph on Sunday and Monday. Ship-to-ship transfers, also referred to as lighterings and reverse lighterings, typically are postponed when sustained winds exceed 25 mph. Due to draft restrictions at ports in Texas, ship-to-ship transfers are required to fully load 2mn bl very large crude carriers (VLCCs). The transfer typically is from an Aframax or Suezmax at designated zones near Corpus Christi, Galveston and Beaumont-Port Arthur. Prolonged delays can prevent crude tanker tonnage from becoming available and exert upward pressure on freight rates, while also adding to demurrage fees. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Flooding closes upper Mississippi locks


08/07/24
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08/07/24

Flooding closes upper Mississippi locks

Houston, 8 July (Argus) — High water levels in the Mississippi River have caused all lock and dams to close between Bellevue, Iowa, and Gladstone, Illinois, according to the US Army Corps of Engineers (Corps). Lock and Dams (L&D) 12-18 are closed as of 8 July, the Corps said. Water levels have reached the top of L&D 12 in Bellevue and L&D 11 in Dubuque, according to the National Weather Service. The outflow at L&D 16 was at 255,000 cubic feet per second (cfs) as of 8 July, about 68pc more than the average of 80,000cfs this time of year, the Corps said. It will be another two weeks until L&D 20 reopens, but L&Ds 11-15 could reopen as early as this weekend, the Corps said. About 15 inches of rain fell in Dubuque over the past week, bringing the expected forecast up to 22.1ft, according to the National Oceanic and Atmospheric Administration. Flooding at Dubuque and other locations along the river are expected to drop from major to moderate levels this week. L&D 19 reopened on 8 July as it fellow flood stage at 16ft, the Corps said. L&Ds 19, 21, and 22 are expected to remain open. The river widens around the locks, allowing for a greater outflow at higher water levels. By Trajan Greenwell Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Beryl enters GOM, heading towards Texas: Update


05/07/24
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05/07/24

Beryl enters GOM, heading towards Texas: Update

Updates hurricane watch and status of Texas ports and lightering zones. New York, 5 July (Argus) — Hurricane Beryl weakened to a tropical storm as it crossed the Yucatan Peninsula and entered the Gulf of Mexico on Friday afternoon, with a likely second landfall in Texas on Monday. Maximum sustained winds have dropped to near 65mph, the National Hurricane Center said in a 5pm ET advisory, but the tropical storm is forecast to strengthen to a hurricane again as it moves over the Gulf of Mexico, with forecasts pointing to a landfall late Sunday or early Monday from far northeastern Mexico to the eastern Texas coast. The National Hurricane Center issued a hurricane watch from the mouth of the Rio Grande River to Sargent, Texas, about 80 miles southwest of Houston. Heavy rainfall of 4-8 inches is expected by Sunday into next week. The US Coast Guard changed the status of the port of Corpus Christi, Texas — a key US oil export hub — to "X-ray" at 3pm ET Friday, meaning gale force winds are expected to arrive at the port within 48 hours. All commercial traffic and transfer operations can continue during X-ray, but the Coast Guard said ocean-going commercial vessels greater than 500 gross tons should make plans to depart the port. Corpus Christi is also home to three refineries totaling 800,000 b/d of capacity. Citgo said it is implementing its hurricane preparedness plan at its 165,000 b/d refinery there. The ports of Houston, Texas City, Galveston and Freeport were set to port condition Whiskey at 5:05pm ET Friday, meaning gale force winds are expected to arrive within 72 hours. The ports remain open to all commercial traffic. Ship-to-ship transfers off the Texas coast proceeded as normal on Friday but will be postponed off Corpus Christi beginning Sunday. The US National Weather Service (NWS) forecast winds up to 90mph and waves up to 32 ft at the Corpus Christi lightering area on Sunday and Monday before calmer conditions return Tuesday. Ship-to-ship transfers are expected to be postponed at the Galveston Offshore Lightering Area early next week due to the same conditions. Most of Mexico's Gulf coast ports were closed today and many offshore oil production operations. The impact to US Gulf oil and gas operations so far appears to be limited, with BP determining forecasts "indicate Hurricane Beryl no longer poses a significant threat" to its offshore platforms in the Gulf of Mexico. Shell had taken the precaution of shutting in production and evacuating all staff from its Perdido platform and its Whale development, which is scheduled to begin operations later this year. "We have safely paused some of our drilling operations, but there are currently no other impacts on our production across the Gulf of Mexico," the company said late on Thursday. Earlier this week, Beryl was a Category 5 storm, which made it the strongest on record for the month of July, as it left a trail of destruction in the Caribbean. By Stephen Cunningham, Tray Swanson and Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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US coke exports to China fall to 2024 low in May


05/07/24
News
05/07/24

US coke exports to China fall to 2024 low in May

Washington, 5 July (Argus) — US green petroleum coke exports to China dropped to their lowest level so far this year in May, although shipments were still up from May 2023. The US exported 271,800t to China, the lowest volume since December 2023. Exports were down by 16pc from April and 22pc lower than the 10-year average for May, according to US customs data compiled by Global Trade Tracker (GTT). But shipments were 18pc higher than a year earlier, when oversupply in China led US exports to the country to fall to a 17-month low. Stockpiles of imported coke at Chinese ports have been at historic highs for more than a year , as domestic refinery production recovered and consumption stagnated on a weak property market and abundant coal. These market conditions have slowed Chinese importers' appetite for US coke. Exports to China were particularly low from Los Angeles, California, at 86,700t. This was the lowest volume since August and 44pc lower than the average over the previous 12 months. This export volume likely reflected a 40-50 day turnaround at PBF Energy's 156,000 b/d Martinez, California, refinery, a key supplier to China. Coke production in PADD 5 was down by 9pc in the first four months from the year-earlier period, according to the latest data from the US Energy Information Administration. West coast exports to China still totalled 160,200t, nearly 60pc of the monthly US export volume and flat with April levels, as shipments from the San Francisco, California, region rose. Exports from the US Gulf coast fell to 111,600t, their lowest level since January. US exports to China are likely to fall further following the Chinese government's decision in late May to ban high-sulphur petroleum coke consumption as part of its decarbonisation plan. Although enforcement mechanisms are not yet clear, the policy uncertainty has already dampened import demand. But there could be some bump in shipments in the short term, as companies with term agreements seek to speed up loading ahead of any possible enforcement. Some expect the government could apply new tariffs to coke with more than 3pc sulphur, and China's Custom Administration was heard to have held a meeting on high-sulphur coke on 28 June. But it was not yet clear what if any action officials plan to take. As Chinese demand waned, a greater proportion of US coke exports went to India in May, with the country taking 629,300t. Shipments to India accounted for 23pc of total US exports, up from 19pc in April and 21pc a year earlier. But Indian demand was not particularly strong, as the country's general elections from 19 April-1 June weighed on cement demand. US exports to India were down by 6pc from a year earlier. Exports to Turkey, on the other hand, jumped by 85pc on the year, making it the second-largest destination in May with 11pc of total shipments. Turkish buyers were seeking more US mid-sulphur coke following the reinstatement of US sanctions on Venezuela and competitive discounts to Russian coal . By Lauren Masterson US coke exports by destination mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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