Japanese shipbuilders tap decarbonisation potential

Market: Emissions, Fertilizers, LPG, Natural gas, Oil products
26/04/21

The global decarbonisation drive is prompting Japanese shipbuilders to speed up development of greener vessels in efforts to ride out a tough market and gain an edge over Chinese and South Korean rivals.

Japanese shipbuilder Tsuneishi Shipbuilding has agreed to a capital tie-up with rival shipbuilder Mitsui E&S Shipbuilding. Tsuneishi is expected to acquire a 49pc share in Mitsui E&S Shipbuilding by October after obtaining regulatory approval.

Tsuneishi said the capital tie-up is expected to enable it to jointly speed up development of next-generation ships using alternative fuels, as well as autonomous vessels. Tsuneishi recently developed an LNG-fuelled Kamsarmax bulk carrier.

The international shipping industry is working to reduce its greenhouse gas (GHG) emissions by at least 50pc by 2050 from 2008 levels, driving a fuel shift among global shipping firms and shipowners.

Japanese joint venture Nihon Shipyard last month completed development of an ammonia-fuelled very-large crude carrier, only a few months after the venture's January launch by shipbuilders Imabari Shipbuilding and Japan Marine United (JMU).

Japan aims to commercialise a zero-carbon emitting vessel by 2028 under a roadmap released last year to realise the global shipping industry's GHG reduction target. The transport ministry this month also began discussions to decarbonise its domestic shipping operations.

Japan's new GHG reduction pledge is also expected to offer new business opportunities for the shipbuilding industry. Japanese premier Yoshihide Suga last week announced a new 2030 commitment to reduce GHG emissions by 46pc from 2013 levels, compared with 26pc previously, prompting Japanese carbon dioxide (CO2) emitting-industries to further speed up decarbonisation efforts.

Shipbuilder JMU has agreed with Japanese wind power developer Venti Japan to discuss the possibility of developing a floating wind mill project offshore northwest Japan's Akita prefecture.

Shin Kurushima Sanoyas Shipbuilding has also obtained in-principle approval from Japanese classification society ClassNK for its newly-developed liquified CO2 transport vessel, aiming to tap growing demand for carbon capture and storage business opportunities. The company was launched earlier this year after Japanese shipbuilder Shin Kurushima Dockyard took over rival Sanoyas Shipbuilding.

By Rieko Suda

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12/05/25

Ukrainian gas imports double in May

London, 12 May (Argus) — Ukraine's gas imports have nearly doubled in the first 10 days of May from April, although still only the Polish and Hungarian routes are being used. Ukraine's net imports — after netting off inflows and outflows to and from Moldova — averaged 140 GWh/d on 1-10 May, nearly double the 73 GWh/d average in April, the latest available data from transmission system operators show. The increase has been driven by flows from Hungary at VIP Bereg rising to near full capacity of 103 GWh/d from 60 GWh/d, and a smaller 12 GWh/d increase from Poland ( see flows graph ). Net flows to Moldova also fell to 13 GWh/d from 23 GWh/d, leaving more gas in Ukraine. But imports would need to ramp up significantly to match the 4.6bn m³ that state-owned incumbent Naftogaz estimated would be needed over the entire summer. If Ukrainian net imports remain at 140 GWh/d until 15 October, around the typical start of the heating season, then cumulative net imports would reach around 22TWh, or around 2.1bn m³ using Ukraine's standard 10.5 kWh/m³ conversion rate. VIP Bereg is already flowing at near maximum capacity, as is the interconnection point with Poland, meaning that any additional flows will need to arrive from Slovakia at Budince or from Romania at Isaccea, both particularly expensive transit routes. Demand for third-quarter capacity along the Bereg route continues to outstrip available capacity, with the auction now in its sixth day and still not concluded. So far, Naftogaz has announced few public supply deals, although it has contracted 300mn m³ of LNG from Poland's Orlen , with some market participants saying Orlen would supply as much as 1bn m³. The firm has €410mn in funds from the European Bank for Reconstruction and Development , which it hopes will finance the purchase of around 1bn m³. But it is unclear where funding for additional purchases will come from, and the government does not intend to increase household or business tariffs to cover Naftogaz's higher costs. Even if Ukraine imports as much as Naftogaz said it will need, the country could still face shortages in the winter . Ukraine started the injection season in mid-April at the lowest stock level in at least a decade , and while Naftogaz managed to restore more than half of the output it lost in February following attacks on its production infrastructure, Ukrainian production still remains well below pre-2022 levels. Hungary maintains pivotal hub role Hungary has become an increasingly important transit hub over the past year, and Ukraine's import needs have increased its prominence further. With VIP Bereg at a 99pc utilisation rate this month and continued exports northward to Slovakia, Hungary has been pulling in more gas from other sources to maintain these flows. Inflows from Serbia at Horgos, where Russian gas arrives into Hungary through Turkish Stream, rose to 244 GWh/d on 1-10 May from 223 GWh/d in April, just below the point's technical capacity of 246 GWh/d. And inflows from Austria have also increased considerably, rising to 139 GWh/d from 92 GWh/d, while receipts from Romania more than doubled to 40 GWh/d from 19 GWh/d ( see Hungarian flows graph ). Hungarian prompt prices have risen to a premium over Austria and Romania in order to attract more gas ( see prices graph ). Slovakia remains at a premium to Hungary, though, driven by the need to incentivise flows from Hungary now that Russian transit through Ukraine has ceased. Hungarian transmission tariffs remain significantly cheaper than in Slovakia or Romania, so demand for Hungarian capacity at quarterly auctions last week held strong . The bookings suggest that the recent flow configuration is set to continue in the second half of summer, with all import capacity from Serbia booked and most available capacity from Austria. The export route from Romania to Ukraine remains unpopular, not just because of the high transmission tariffs paid in Romania and Moldova, but also because of the conditional nature of the flows. An equal amount of gas must be brought into Romania at Negru Voda 1 as is exported at Isaccea 1, as they are part of the same Trans-Balkan Pipeline string. Additionally, anyone hoping to bring gas from Greece or Bulgaria up to Ukraine must secure capacity in as many as 10 or more auctions, which take place simultaneously given that the transit route crosses in and out of Moldova several times. Even one failed auction could make exports along this route impossible. By Brendan A'Hearn Hungarian DA vs nearby markets €/MWh Ukrainian net flows by point GWh Hungarian net flows by point GWh Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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EU, UK diesel imports from Mideast, India fall in April

12/05/25

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12/05/25

EU, UK diesel imports from Mideast, India fall in April

London, 12 May (Argus) — Arrivals of diesel and other gasoil in the EU and UK edged lower in April, with high imports from Saudi Arabia's port of Yanbu not fully making up for lower supply from the Mideast Gulf and India. Data from Vortexa show total arrivals at 4.3mn t, lower by 3pc from March on a daily average basis and by 7pc on the year. The Mideast Gulf is the region that has supplied the most to the EU and UK so far this year, stepping up to fill a gap created by weak US arrivals. But market participants said the arbitrage from the Mideast Gulf was shut for most of April. Arrivals from the Mideast Gulf were around 1mn t, dropping by 24pc on a daily average basis from March but only marginally falling from April 2024. Exports from the region probably fell because of maintenance at the 400,000 b/d Rabigh refinery. Geopolitical tensions may have harmed transit through the Bab el-Mandeb strait. The EU and UK imported the largest amount from Saudi Arabia, at 1.3mn t or around 29pc of total arrivals. Around 68pc of Saudi Arabian arrivals, or about 780,000t, came from the Red Sea port of Yanbu, the largest amount from there since December 2020. Yanbu is just south of the Suez Canal, and market participants often treat it similarly to a Mediterranean port when calculating arbitrage economics. Arrivals from India dropped sharply in April, again probably driven by poor arbitrage economics. Arrivals fell by 45pc on the month on a daily average basis and by 33pc on the year, to 455,000t. Only five tankers arrived in the EU and UK from India, compared with 13 in April 2024. Reliance's 1.36mn b/d Jamnagar refinery conducted maintenance on a crude unit in April, and domestic demand reached an all-time high. Imports from the US, the EU's and UK's largest supplier in 2024, remained muted. Arrivals rose by 17pc on the month on a daily average basis to 562,000t, but were still only half the amount of April last year. Spain was the largest EU/UK importer, with 745,000t, the highest since May 2024. Imports may have risen because of maintenance at Repsol's 135,000 b/d Puertollano and 180,000 b/d Tarragona refineries . German arrivals were 493,000t, the highest since January 2023, up by 13pc on the year and more than double levels of March. Shell began to close its 147,000 b/d Wesseling refinery in March, and a turnaround took place at the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery. Demand stepped up, with households taking advantage of lower prices to stockpile product. By Josh Michalowski Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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US shale M&A faces headwinds on oil price rout

12/05/25

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12/05/25

US shale M&A faces headwinds on oil price rout

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Australian PM reaffirms climate priority in new cabinet

12/05/25

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12/05/25

Australian PM reaffirms climate priority in new cabinet

Sydney, 12 May (Argus) — Australian prime minister Anthony Albanese has reaffirmed renewable energy commitments with cabinet picks after the Labor party's election victory on 3 May. Chris Bowen, who led key changes to the safeguard mechanism , the capacity investment scheme (CIS) and fuel efficiency standards for new passenger and light commercial vehicles, remains minister for climate change and energy. Madeleine King, the minister for resources and northern Australia, retains her cabinet position, while Tanya Plibersek, previously the minister for environment, is now the minister for social services and is replaced by Murray Watt, formerly the minister for workplace relations. In the previous term, Plibersek failed to establish an environment protection authority and reform the Environment Protection and Biodiversity Conservation Act, which was an election promise in 2022, after intervention from Western Australian state minister Roger Cook. Environmental lobby group the Australian Conservation Foundation (ACF) has welcomed Watt, who was also the minister for agriculture for two years to 2024, into his new role. "Having a former agriculture minister in environment increases the opportunities for co-operation on the shared challenges facing nature protection and sustainable agriculture," the ACF said. The ACF also welcomed Chris Bowen in returning to his role as environment minister for his "clear mandate" to continue the energy transition. Josh Wilson remains assistant minister for climate change and energy. Participants in the renewable energy carbon credit industry are urging the new Department of Climate Change, Energy, the Environment and Water to speed up the creation of new Australian Carbon Credit Unit (ACCU) methods in the new government term. They are also seeking greater transparency in ACCU data base , which requires legislative change. And renewable energy companies and lobby groups will be closely following a review of Australia's National Electricity Market wholesale market settings , which will need to be changed following the conclusion of the CIS tenders in 2027 and as Australia transitions to more renewables from its ageing coal-fired plants. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Saudi Aramco cuts dividend after fall in 1Q profit

12/05/25

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12/05/25

Saudi Aramco cuts dividend after fall in 1Q profit

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