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Idemitsu completes biofuel trial for bunkering vessels

  • Market: Biofuels, Oil products
  • 05/09/24

Japanese refiner Idemitsu has completed a test of mixed biofuel using fatty acid methyl ester (Fame) for bunkering vessels in the Hokkaido area ahead of commercial use.

Idemitsu carried out a trial for 10 months starting in September 2023, using a 24pc Fame mixture of used cooking oil collected from convenience stores in Hokkaido with existing marine fuel oil. The mixed biofuel can be used in the same applications as existing marine fuel oil without any changes to equipment specifications or operating conditions in cold climates, Idemitsu said.

Mixed biofuel is able to cut 20pc of carbon dioxide compared with existing marine fuel oil. But there has been difficulty in using it in sub-zero temperatures, which results in solidification and oxidation.

Idemitsu will increase use of the bio-mixed marine fuel to areas other than Hokkaido, in its effort to achieve the country's 2050 decarbonisation goal.


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05/09/24

Pemex unbilled debts to suppliers climb

Pemex unbilled debts to suppliers climb

Mexico City, 5 September (Argus) — Service providers for Mexico's Pemex are unable to submit new invoices for services performed nearly a year ago even as the state-owned company also struggles to pay down past bills, sources say. These unsubmitted invoices do not appear in Pemex's financial records or in its monthly supplier debt reports, three Pemex suppliers who work mostly in the northern region of the Gulf of Mexico told Argus . Pemex provides vendors a system to submit bills for review and processing, leading to an invoice codifying payments and discounts (Copades). At this stage, Pemex certifies the pending invoice, making it part of the company's monthly supplier report —a transparency measure implemented in 2021. Pemex reduced its overdue debts to service providers by 6pc from May-July, with Ps126.4bn ($6.78bn) in unpaid invoices as of 31 July, down from Ps133.9bn in May. But a significant amount of unbilled work remains because Pemex has not issued the necessary Copades for vendors to begin the payment process, and some of the bills date back to work performed in September, according to two of the vendors. Without the Copades, companies must classify these debts as uncollectible, one vendor said. The issue is concentrated in Mexico's northeast maritime region, where Pemex produces about half of its crude and gas output, according to the vendors. This region includes the Cantarell and Ku-Maloob-Zap fields. Pemex has requested vendors to perform tasks in the area, but the company then claims there is no budget allocated for those bills, the vendors said. This unbilled work adds to Pemex's recognized debt to suppliers, but the size of this unrecognized debt is impossible to estimate, the vendors added. Pemex's unpaid invoices and short-term vendor debts stand at record-high levels, despite receiving over $70bn in government support since 2019. By Edgar Sigler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Roadblocks across Colombia cut LPG supply


05/09/24
News
05/09/24

Roadblocks across Colombia cut LPG supply

Bogota, 5 September (Argus) — Colombia's LPG shortages are worsening as a fourth day of protests and roadblocks over higher diesel prices are limiting production and distribution. Protesters have completely blocked roads to processing plants in the key Cusiana and Cupiagua fields, preventing trucks from moving supply. Those two fields along with the Ty Gas processing plant handle 41pc of the country's LPG supply, LPG association (Agremgas) director Sara Velez told Argus . Colombia uses about 60,000 metric tonnes (t)/month of LPG. The Cusiana plant that produces about 15,000t/month of LPG is flaring 100t/d of LPG that cannot be transported, Velez said. "If Cusiana is unable to move out the LPG, it may force it to shut in, affecting natural gas as well," Velez said. Blockades are also preventing LPG produced at the 250,000 b/d Barrancabermeja and the 200,000 b/d Cartagena refineries from reaching distributors. The refineries produce 24pc of the country's LPG supply, equivalent to 14,400t/month. Adding to troubles, multiple rebel attacks have put sections of the country's 220,000 b/d Cano Limon-Covenas and the 120,000 b/d Bicentenario crude pipelines out of service for repairs, restricting crude supply to the refineries. The smaller LPG field of Capacho controlled by Canadian oil company Parex shut in 5,000 b/d of oil equivalent (boe/d), or about 10pc of its Colombian output. That reduced LPG supplies to the Arauca department, the LPG association added. The departments of Caqueta, Cundinamarca and Valle del Cauca have inventories for four days. Another 28 departments have LPG inventory for one or two days. Velez has called on the government to create a safe corridor to help LPG reach consumers. The LPG shortage is also affecting industries. Fenavi, the country's poultry association, consumes 42mn kg/yr of LPG, which is equivalent to state-controlled Ecopetrol's monthly LPG production. The LPG is used to warm the poultry, but the association also said that blockades have also cut supplies of feed and could put the chickens at risk of starvation. The country produces 1.8mn tonnes/yr of chickens and 1.6bn eggs/yr. In Colombia 1.2mn families already still cook with wood, and the current shortage will likely increase that number. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Gold Standard releases two new shipping methodologies


04/09/24
News
04/09/24

Gold Standard releases two new shipping methodologies

London, 4 September (Argus) — Carbon registry Gold Standard has launched its Methodology for Reducing Methane Emissions from Combustion Engine Exhaust and its Methodology for Marine Fuels and Bio Bunkers, aimed at reducing the environmental impact of shipping operations. The two new methodologies will add to Gold Standard's existing Retrofit Energy Efficiency Measures in Shipping methodology and Methodology for Emission Reduction by Shore-side or Offshore Electricity Supply System. The Methodology for Marine Fuels and Bio Bunkers was developed by biofuels trading firm Alcom, and will serve as a guideline for obtaining carbon credits from the use of marine biodiesel blends. The methodology currently only applies to marine biodiesel blends comprising used cooking oil methyl ester (Ucome), with a scope covering biofuel production to be used within the maritime industry across all sea vessel types and covering the entire chain of emissions on a well-to-wake basis. Only the biofuel component that has been loaded on to the vessel and blended with fossil fuels can be eligible for carbon credits under this methodology. Gold Standard's Methodology for Reducing Methane Emissions from Combustion Engine Exhaust was developed in partnership with consulting group Fremco and technology company Daphne Technology. The methodology aims to reduce methane emissions stemming from maritime and stationary land-based internal combustion engines that utilise natural gas or other methane-rich fuels. It will also mandate real-time measurements before and after the abatement system to ensure "robust monitoring of emission reductions". By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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SE Asia could supply 12pc of global SAF by 2050: Report


04/09/24
News
04/09/24

SE Asia could supply 12pc of global SAF by 2050: Report

London, 4 September (Argus) — Southeast Asia could have the capability to supply around 12pc of global demand for sustainable aviation fuel (SAF) by 2050, according to a report by not-for-profit association the Roundtable on Sustainable Biomaterials (RSB). This would be equivalent to 45.7mn t out of an estimated 380mn t, based on the Air Transport Action Group's forecast for how much SAF will be needed to meet net-zero targets in 2050. The RSB expects rice husks and straw to provide 36.9pc of feedstocks for SAF production in southeast Asia, followed by palm oil residues at 11.8pc. Around three-quarters of potential SAF feedstock can be sourced from post-consumer and agricultural waste, including cassava (9.3pc), sugarcane bagasse (6.4pc) and municipal solid waste (8.6pc), the RSB said. The report expects Indonesia, Thailand, Vietnam, Malaysia and the Philippines together to account for about 90pc of the region's SAF supply in 2050. All five, except Vietnam , participate in CORSIA , a scheme that obligates members to buy SAF or buy offset credits to offset their emissions. The RSB assessed feedstocks on availability and sustainability, using 12 social and environmental criteria including the region's "significant risk" of deforestation and water stress. SAF accounted for just 0.2pc of global commercial aviation fuel use in 2023, but demand is poised to rise sharply on the back of upcoming blending mandates worldwide, particularly the EU's ReFuelEU mandate under which fuel suppliers will need to blend at least 2pc SAF in their jet fuel deliveries next year. Some 43 international airlines are committed to using 13mn t/yr of SAF by 2030 to meet their regulatory and voluntary targets, and demand for SAF from the corporate sector has increased through book and claim approaches . Unblended SAF, which is completely free of fossil fuels, could reduce the aviation sector's emissions by 84pc over the fuel's lifecycle, according to the RSB. Policies aligning Regional policies in southeast Asia are beginning to reflect global trends, with several countries adopting or exploring SAF mandates, said RSB. Indonesia and Malaysia, with their established biofuel industries, have "laid the groundwork" for SAF production, "leveraging their abundant agricultural resources" such as palm oil, while Thailand and the Philippines have initiated policy frameworks and pilot projects to explore SAF potential, although commercial production is "still nascent", the report said. Singapore "stands out" with its comprehensive approach to SAF, the RSB said. The report highlights Singapore's National Sustainable Air Hub Blueprint launched in February 2024, which outlines a strategy to achieve net zero domestic and international aviation emissions by 2050. The blueprint also includes the introduction of a SAF levy for flights departing from Singapore in 2026. 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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US Coast guard restricts lower Mississippi drafts


03/09/24
News
03/09/24

US Coast guard restricts lower Mississippi drafts

Houston, 3 September (Argus) — The US Coast Guard (USGC) set new towing and draft restrictions for the lower Mississippi River on 31 August, as water levels continue to decline. For southbound traffic from Tiptonville, Tennessee, to near Greenville, Mississippi, barge drafts must remain under 10.5ft and no more than six barges wide, according to the USGC. From Greenville to Tunica, Mississippi, southbound barge drafts must be under 10ft. Boats can tow six barges wide, but no more than four of those barges can be loaded. Northbound movement from Tunica to Tiptonville must keep drafts below 10ft and cannot be more than six barges wide and no more than four barges loaded. These new restrictions arrived five days after the previous draft restriction issued by the USGC. Memphis, Tennessee, water levels fell below the low water threshold of -5ft over the holiday weekend, at nearly -6ft as of 3 September according to the National Weather Service (NWS). As many as six other points on the lower Mississippi River are at their low water thresholds with others expected to reach their thresholds this week. Low water has already spurred an increase in southbound tariff values, which will likely be exacerbated as US crop harvests progress. The next 48hrs in the Memphis area is forecast to receive no rain, while the southern half of Mississippi and most of Louisiana may see 0.5-2 inches of rainfall, according to NWS. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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