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Japanese navy orders tankers for East China Sea patrols

  • Market: Oil products
  • 21/05/20

Japan's defence ministry has placed an order for two oil tankers, its first such dedicated vessels to support patrolling navy vessels particularly in the East China Sea area.

Japanese shipbuilder Shin Kurushima Dockyard has received an order from the ministry to build two 4,900 deadweight tonne tankers for delivery targeted in April and July 2022. The two tankers are expected to be able to carry around 30,000 bl each of marine fuel and will be built at the firm's Hashihara shipyard in Ehime prefecture's Imabari.

The Japanese government had allocated ¥6bn ($55mn) for the planned construction of Japan's first dedicated navy tankers as part of the country's ¥5 trillion defense budget in the April 2019-March 2020 fiscal year. The navy is aiming to secure refuelling capability for its patrol vessels at frontline bases, particularly in Okinawa, without private-sector co-operation.

Tensions have re-escalated between Tokyo and Beijing over the growing presence of Chinese coast guard vessels in the disputed East China Sea area. The Japanese government earlier this month formally lodged a protest with the Chinese government, claiming a local fishing boat off the disputed Diaoyu, or Senkaku, islands was harassed by a Chinese coast guard vessel.

Tokyo was hoping the planned April visit by Chinese President Xi Jinping would help improve Sino-Japanese relations and revive an agreement on joint natural gas development in the East China Sea. But the visit was cancelled in March as both countries needed to prioritise the battle against the Covid-19 pandemic.


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20/02/25

Oil, biofuel lobbies unite for ‘robust’ RFS: Update

Oil, biofuel lobbies unite for ‘robust’ RFS: Update

Updates with comments from trade groups, details throughout. New York, 20 February (Argus) — Oil and biofuel groups, at loggerheads years ago over the federal Renewable Fuel Standard (RFS), have united around a call for US regulators to set "robust" biofuel blend mandates for future years. A diverse coalition of 11 trade associations — including the American Petroleum Institute, Clean Fuels Alliance America, farm groups, and fuel marketers — said in a Wednesday letter to the Environmental Protection Agency (EPA) that the RFS is a way to "advance liquid fuels" and "ensure consumers have a choice of how they fuel their vehicles". They want EPA, which is behind schedule on setting volume mandates for 2026, to set multiyear standards that better reflect recent growth in feedstock availability and production capacity than past RFS regulations. "We're trying to send a signal to the administration: hey, we're in more agreement than we used to be," American Petroleum Institute vice president of downstream policy Will Hupman told Argus . "We want to work constructively with you on this. We understand we're going to need all energy sources and supplies." The letter reflects the increasingly aligning interests of groups that formerly split over biofuels. Many oil companies that opposed the RFS in its early years have since invested heavily in fuels like renewable diesel, making strong government biofuel mandates crucial for their businesses, too. And producers of petroleum and biofuel products alike fear that rising electric vehicle adoption, aided by policies during the administration of President Joe Biden, could curb liquid fuel demand. It is unclear how durable any coalition of oil, biofuel, and farm groups will prove, especially for more divisive issues like RFS exemptions for small refineries. The oil industry is not united either, since small merchant refiners with less ability to blend biofuels have generally been more hostile to the RFS than larger integrated companies. The American Fuel and Petrochemical Manufacturers, which did not sign the letter, said that it looks forward "to engaging with EPA and other stakeholders to set realistic and achievable RFS standards anchored in the law". Still, the letter reflects some attempt among the signatories to downplay disagreements that surfaced around past RFS rules, signaling to President Donald Trump's administration that it need not delay program updates. The groups say they support, for instance, "strong, steady volumes" of not just biomass-based diesel and advanced biofuels but conventional biofuels too. While refiners can meet conventional obligations by blending excess amounts of lower-carbon fuels from other program categories, oil interests have previously criticized EPA for setting conventional requirements above expected corn ethanol consumption. The prior US administration set a plan for proposing new RFS volumes next month and finalizing them by the end of 2025 , though it is unclear whether Trump officials plan to meet that timeline. Two biofuel groups have sued EPA over its delays setting new mandates, a process which in the past has resulted in the government and industry coming to a negotiated agreement around a new timeline. Under the RFS program, EPA sets annual mandates for blending different types of biofuels into the conventional fuel supply. Refiners comply by blending biofuels themselves or buying credits from those who do. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US cites 'energy emergency' to expedite water permits


20/02/25
News
20/02/25

US cites 'energy emergency' to expedite water permits

Washington, 20 February (Argus) — President Donald Trump's administration is citing an "energy emergency" as the basis to fast-track nearly 700 water permits, including those tied to a tunnel for Enbridge's Line 5 pipeline, LNG infrastructure projects, solar farms and electric transmission lines. Trump declared a national energy emergency on his first day in office, unlocking permitting powers that are typically used in response to natural disasters. The US Army Corps of Engineers has subsequently reclassified hundreds of permit applications for review under expedited emergency procedures, in a move that environmentalists say they plan to challenge in court based on violations of the Clean Water Act and Endangered Species Act. "The Trump administration is planning to skirt legally-required review processes in order to fast-track permits for dirty energy projects under the guise of an energy ‘emergency'", Sierra Club policy director Mahyar Sorour said. The Corps is responsible for issuing water permits for projects that cross streams, rivers, wetlands and other water bodies. Issuing permits sometimes requires the agency to prepare a detailed environmental review that is open to comment and can take years to finish. The water permits classified for emergency treatment include a repair project for Sabine Pass LNG in Louisiana, dredging for Elba Island LNG in Georgia, temporary construction related to Port Arthur LNG in Texas, solar projects in dozens of states, and pipeline projects ExxonMobil is pursuing in Texas. Enbridge delayed construction of a protective tunnel for its Line 5 pipeline to 2026 because of water permitting delays . But environmentalists say the administration cannot cite an energy emergency — which they say does not exist — as justification to bypass permitting rules prescribed by the US Congress. The Corps has also provided emergency treatment to projects with no apparent connection to energy production, such as a housing project in southern California and a gold mine in Idaho, according to an online database. The Corps did not respond to detailed questions but said it was "in the process of reviewing active permit applications relative to the executive order." Congress is continuing to lay groundwork for a bipartisan permitting bill that supporters say could make it faster and cheaper to build pipelines, power plants, electric transmission lines, renewable energy projects and transportation infrastructure. But Democratic leaders are threatening to vote against such a bill so long as Trump continues to "pause" billions of dollars in funding for clean energy projects provided by the Inflation Reduction Act and other laws. "Until the administration shows it will honor its oath to faithfully and impartially execute the laws, we can have zero confidence that any legislative compromise on permitting reform will be executed lawfully," US senator Sheldon Whitehouse (D-Rhode Island) said at a permitting hearing on 19 February. Oil industry and renewable groups are continuing to push for a comprehensive permitting bill, which they say would bring down project costs and help the US meet surging electricity demand from data centers and manufacturers. Permitting changes are "needed for all technologies, and they are needed to meet our energy demand in the future," Business Council for Sustainable Energy president Lisa Jacobson said. "You can't walk away from those facts or that imperative." By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Guyanese refinery not off the table: Minister


20/02/25
News
20/02/25

Guyanese refinery not off the table: Minister

Georgetown, 20 February (Argus) — Guyana's tentative plans to start a venture with a US midstream company to refine its oil overseas and bring it back into the country for storage and distribution does not necessarily mean a domestic refinery is no longer an option. "I would not put it off the table," natural resources minister Vickram Bharrat told Argus today on the sidelines of the Guyana Energy Conference and Supply Chain Expo in Georgetown, Guyana. "But what we were told by many companies is that a 30,000 b/d refinery might not be economical, that we may have to do 50,000 b/d or 100,000 b/d." Such a refinery would require a guarantee for sufficient feedstock before a company would agree to build it, he said. The government may be in a better position to pursue both options when the ExxonMobil-led consortium behind the giant offshore Stabroek block development has six floating production storage and offloading (FPSO) units up and running in the next few years, he said. Chevron-Exxon dispute not a concern Guyana is not taking sides in the dispute between ExxonMobil and Chevron over the future of Hess' 30pc stake in Staebroek, Bharrat said, as it has "no particular preference" as to how it plays out. Chevron's pending $53bn takeover of Hess was largely driven by its stake in Staebroek, but ExxonMobil argues it has a right of first refusal for Hess' share. An international arbitration case will resolve the issue in May. "Our position was clear from the start," Bharrat said. "If that was not going to affect the operations in Guyana — and we were told it will not — then we are fine." Guyana has a "good relationship" with Hess, which has agreed to buy carbon credits from the government, he said. "We have no issue with Chevron coming in either," he said. "Chevron would add value to the Guyana basin." With general elections coming up in Guyana later this year, there are signs the opposition party may seek to renegotiate oil contracts. But Bharrat said the current administration is not renegotiating the Stabroek production sharing agreement it signed previously. Bharrat repeated his enthusiasm for the country's natural gas potential, including a plan for a gas processing facility which could help the company diversify the economy away from its oil wealth. "That project will cater for a small amount of fertilizer production, especially for local consumption, because we import a lot of fertilizer and we're expanding our agricultural sector," he said. Guyana's relatively new entry into global oil markets means the threat of the "oil curse" — in which oil-rich countries tend to have less economic and social stability — still looms large. But Bharrat said that so far "... we've been doing a good job." Other up-and-coming oil producers such as Namibia and neighboring Suriname have visited Guyana to learn how the government has developed its oil sector in such a short period of time, he said. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UK bitumen output up in Jan-Nov 2024 as demand drops


20/02/25
News
20/02/25

UK bitumen output up in Jan-Nov 2024 as demand drops

London, 20 February (Argus) — UK refinery bitumen output rose sharply in the first 11 months of 2024, contrasting with a significant fall in consumption caused by limited government investment in new infrastructure projects. Bitumen production in the first 11 months of last year jumped by nearly a quarter, according to official data, directly reflecting output at the only bitumen-producing refinery, the Shell-Nynas joint venture in northwest England. The 105,700 b/d Lindsey refinery in northeast England stopped making the product in early 2023, with Prax Group ending its production to focus on mainstream oil products. Prax bought the refinery from TotalEnergies in 2020. The latest UK data show a 23pc rise in bitumen output in the January-to-November 2024 period to 434,000t, from 352,000t in the same period of 2023. Output levels fell by 11pc to 82,000t in the three months from September to November, from 91,000t in the same period of 2023. UK consumption levels fell by 12pc in the first 11 months of 2024 to 1.29mn t from 1.46mn t in the same period of 2023. This reflects lack of government funding for construction activity. There is a lack of optimism in the UK construction sector regarding this year's activity and demand prospects. UK annual bitumen consumption has been falling steadily since 2021, when it stood at 1.84mn t. It was 1.56mn t in 2022 and 1.54mn t in 2023. The demand fall is part of an overall downward trend in UK refined products consumption . Between 2018 and 2023, UK product deliveries for domestic consumption have fallen by 12pc, while products output fell by 14pc. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Kuwait produces, exports record oil products in 2024


20/02/25
News
20/02/25

Kuwait produces, exports record oil products in 2024

Dubai, 20 February (Argus) — Kuwait's oil product output and exports reached record highs in 2024, driven by the full ramp-up of the 615,000 b/d al-Zour refinery. Figures from the Joint Organisations Data Initiative (Jodi) show Kuwait's refinery production, excluding LPG, averaged 1.21mn b/d last year, up by 22pc from 2023 and the highest since Jodi records began in 2002. Output rose after al-Zour reached capacity in February, which brought Kuwait's total refining capacity to close to 1.42mn b/d. State-owned KPC had gradually started up the refinery's three 205,000 b/d crude distillation units in November 2022, March 2023 and December 2023, but it took until 2024 to reach full capacity after a string of technical issues throughout 2023. Al-Zour's ramp up resulted in Kuwait's fuel oil production rising by 51pc on the year. At full capacity, the plant is geared to produce 11mn-12mn t/yr (194,000-212,000 b/d) of very-low sulphur fuel oil (VLSFO). Kuwait's naphtha output rose by 24pc, there was an 18pc rise in diesel production and a 12pc increase in kerosene. Gasoline was the only fuel recording a fall in production in 2024, by 4pc on the year. This could have been affected by an issue at one of Kuwait's reformers, which saw KPC seek rare gasoline imports in October , but the extent of the disruption could not be confirmed. Record output also led to all-time high refined products exports from Kuwait in 2024. These rose by 28pc on the year to an average 968,000 b/d, according to Jodi. Fuel oil exports, mostly VLSFO, rose by 44pc, closely followed by gasoil with a 40pc rise. Kpler data show Kuwait sent around 57pc, or 48,000 b/d, of its VLSFO exports to the UAE in 2024, filling a supply gap there while the Fort Energy's 82,000 b/d Fujairah refinery operations were halted during May-September because of a lack of feedstock. Kuwait exported 17,000 b/d to Qatar and 12,000 b/d to Singapore. The latter had been top destination for Kuwaiti VLSFO in 2023, receiving 52pc or 39,000 b/d. KPC holds a VLSFO term contract with state-owned QatarEnergy (QE) and ExxonMobil. Kuwait's diesel exports to Europe rose by 24pc on the year to 107,000 b/d in 2024, and jet exports rose by 33pc to 186,000 b/d. KPC had sold term middle distillate supplies for delivery during 2024 to south and east Africa, northwest Europe and to Pakistan . It negotiated term deals for 2025 . Gasoline's already low export rates decreased further last year as rising domestic demand capped available supplies. Kuwait turned into a marginal net exporter of gasoline in 2022, following completion of the Clean Fuels Project (CFP) in 2021. The CFP integrated and expanded Kuwait's other two refineries Mina Abdullah and Mina al-Ahmadi, which now have a combined capacity of 800,000 b/d. New winds Kuwait has established a trading subsidiary KPCT, and recently appointed its key leadership . The Dubai-based entity is due to start commercial operations in the second quarter. KPCT will begin by trading KPC's share of output from the 230,000 b/d Duqm refinery, a 50:50 joint venture with Oman's state-owned OQ, along with oil products from its own refining system. KPC aims to grow its share of the African market this year. "We have a good market share in a lot of African countries. In some of them, we are the sole supplier", KPC's managing director for international marketing Sheikh Khaled Ahmad al-Sabah said. "We will keep maintaining those market shares, and there are other big opportunities in other countries which we are pursuing." By Ieva Paldaviciute Refinery output 000 b/d 2024 2023 ±% Gasoline 73 76 -4 Naphtha 214 173 24 Jet-Kerosine 290 259 12 Gasoil 345 293 18 Fuel Oil 290 192 51 Total output 1,212 992 22 JODI Total refinery output excludes LPG Exports 000 b/d 2024 2023 ±% Gasoline 4 12 -65 Naphtha 217 176 24 Jet-Kerosine 270 234 15 Gasoil 328 235 40 Fuel Oil 149 103 44 Total exports 968 759 28 JODI Total product exports excludes LPG Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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