Malaysia set to reopen international borders from March
Malaysia is looking to fully reopen its borders next month, in a potential boost to jet fuel demand.
A government advisory council in Malaysia has agreed to reopen the country to international travellers from as early as 1 March, without the need for a compulsory quarantine.
But visitors will still need to undergo Covid-19 tests before and after arriving in the country, said the council's chairman, former Malaysian prime minister Muhyiddin Yassin today.
More details of the reopening will be provided soon.
The country's international borders have been largely shut to travellers since the start of the pandemic, although it has also undertaken some travel initiatives such as a tourism bubble and travel lane with Singapore.
Malaysia is largely a net exporter of jet fuel, although it also imports the refined product. Latest GTT customs data showed that its imports of jet fuel in November had outpaced its exports at 71,900 b/d, with export volumes that month at 53,200 b/d, almost half of its volumes in October and September.
Malaysia is the latest country in southeast Asia that plans to ease border restrictions, after almost two years of strict travel rules.
Thailand has resumed its quarantine-free arrival programme for vaccinated visitors from this month, while the Philippines will reopen to vaccinated foreign tourists later this week.
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Dangote refinery starts Nigerian gasoline sales
Dangote refinery starts Nigerian gasoline sales
Lagos, 16 September (Argus) — Nigeria's 650,000 b/d Dangote refinery has started selling gasoline to the domestic market with state-owned oil firm NNPC as the sole offtaker. NNPC said earlier today that it is paying Dangote in US dollars for September gasoline loadings. The firm's previously announced crude-for-gasoline swap programme with Dangote will be settled in the local currency and will start on 1 October, it added. NNPC published a Dangote gasoline ex-refinery price of $736/t, or 898.78 naira/litre ($0.55/l), based on spot prices from 13 September. This equates to N842.61/l plus a Dangote premium of N56.17/l. Gasoline prices "are not set by government but negotiated directly between parties on an arm's length", in line with the provisions of Nigeria's Petroleum Industry Act, NNPC said. Dangote provided videos of gasoline loading onto NNPC branded trucks at its gantry on the outskirts of Lagos on 15 September. NNPC issued a statement the previous day saying it had "deployed over 100 trucks, with hundreds more en route" for the start of gasoline sales. Dangote previously said the refinery has the capacity to load 2,900 trucks a day, in addition to three single point mooring (SPM) facilities, 25km offshore, that can load product onto 20,000-130,000t tankers. NNPC has supplied gasoline to the domestic market almost exclusively since 2017, relying heavily on imports from overseas because of the parlous state of its own refineries. The start of gasoline loadings at Dangote will enable Nigeria to significantly reduce its dependence on gasoline imports. NNPC's statement today about gasoline pricing comes against a backdrop of President Bola Tinubu adopting a gradual reduction of the country's longstanding gasoline subsidy instead of his stated policy goal of removing it in one fell swoop. His administration made that decision in response to a cost-of-living crisis and social unrest following last year's initial attempt to remove the subsidy. Based on Dangote's ex-refinery price, regulatory fees of N9.96/l, distribution costs of N15/l and a margin of N26.48/l, NNPC said it has arrived at an estimated retail price of N950.22/l for gasoline in Lagos. That is 11pc higher than the level to which it hiked prices at its Lagos retail stations on 3 September. The company attributed that hike to the government reducing the extent to which it subsidises gasoline. Still ramping up Dangote said previously that it expects to be able to produce 57mn l/d (365,000 b/d) of gasoline at full capacity, more than enough to cover Nigerian demand, which it estimated at about 33mn l/d. But industry sources told Argus the refinery was only able to supply NNPC with 16mn l of gasoline over the weekend. The refinery is still some way off reaching capacity, with crude feedstock supply falling by 34pc on the month to 185,000 b/d in August, according to Argus tracking. Argus reported last week that Dangote is yet to complete the start-up of its residual fluid catalytic cracker (RFCC), which is holding the refinery back from hitting its gasoline production capacity. Test runs may have started on the unit, but it is unlikely to be fully operational until October or November. NNPC said it supplied Dangote with 4.8mn bl of crude in August, down from 5.1mn bl in July. It said it will supply the refinery with 5.4mn bl this month and 11.7mn bl in October. The projected crude supply for October is a slight increase from the 11.3mn bl that NNPC announced on 5 September but a touch lower than the volume outlined by Nigeria's coordinating minister of the economy Wale Edun. "From 1 October, NNPC will commence the supply of approximately 385,000 b/d of crude oil to the Dangote refinery, which will be paid for in naira," Edun said on 15 September. In return, the Dangote refinery will supply gasoline and diesel "of equivalent value to the domestic market to be paid for in naira", Edun said. "Diesel will be sold in naira by the Dangote refinery to any interested offtaker," he said. But gasoline "will only be sold to NNPC. NNPC will then sell to various marketers for now". By Adebiyi Olusolape and George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Shipping sector seeks flexibility, voyage optimisation
Shipping sector seeks flexibility, voyage optimisation
Singapore, 16 September (Argus) — A multi-fuel approach is needed to tackle the complexities of energy transition in the shipping sector, said delegates at last week's Appec conference in Singapore. With energy transition in the early stages, delegates agreed that conventional fuels will be used in tandem with a mix of low to zero carbon fuels in a flexible and cost-efficient way. "I think we're moving from a world where we have only one homogeneous choice to a world of heterogeneity when it comes to alternative fuels," said the head of maritime safety, sustainability and technical at Australian resources firm BHP Ashima Taneja. Chartering dual-fuelled vessels is "about creating that flexibility," Taneja added. "Energy efficient technologies will definitely be a very strong component of hitting the 2030 targets," said the chief operating officer of Singapore bunker supplier and marine logistics firm Equatorial Marine Fuel Choong Sheen Mao, adding that "marine fuels will play a very significant role". "Running ships on a mix of alternative fuels and fossil fuel will provide "a bit more longevity to these conventional fuels" said Choong. Maritime participants want to ensure that safety standards and infrastructure for alternative fuel bunkering are ready, with seafarers well trained to handle various fuels. Shipping firms need to have the "confidence" that multi-fuel bunkering procedures will remain largely similar regardless of port, said the director of decarbonisation and net zero pathways at the Maritime and Port Authority of Singapore New Wei Siang. Port agreements, like digitally-enabled green shipping corridors , serve as a vital collaboration that support the maritime industry in testing solutions and syncing knowledge. "Emission reduction is not just changing fuels. It is also how to use your ship more efficiently," said the head of sustainability, decarbonisation and marine fuels at Singapore container shipping firm Pacific International Lines Chia Yujin. More fuel could be saved through green shipping corridors if ships "have clear visibility over port congestion situation at the end of the voyage, and… can adjust our speed to match our arrival," he added. "A lot can be achieved by using alternative fuels… when price support is there but also focusing on other initiatives such as voyage optimisation, just running your feet more efficiently. That can help you achieve those targets involved," according to Taneja. "We almost cannot use a one size fits all approach," said the managing director of Nigerian trading and logistics firms Cabipa Chibuzor DU Chiadikobi, noting that "emerging" economies remain a step behind in the energy transition journey. "I'm quite sure that shipowners want to have that guarantee that even if we make the transition to alternative fuel, certain destinations will be able to have the port infrastructure and, most importantly, the alternative fuel for them to be able to bunker." "At the end of the day, shipping is still a business," said Choong. "We have to be competitive and you only can be competitive when there is a level playing field." By Cassia Teo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Calif refinery work behind gasoline rise: Regulator
Calif refinery work behind gasoline rise: Regulator
Houston, 13 September (Argus) — Current refinery maintenance is driving a "significant" gasoline price increase in California and a "troubling" lack of supply, the state's Division of Petroleum Market Oversight (DPMO) said in a letter to governor Gavin Newsom (D) today. Several maintenance events at refineries across California and declining gasoline inventories are contributing to the increased prices, which are most noticeable in the north of the state, the DPMO said in the 13 September letter. "California is once again seeing a significant spike in gasoline prices," it said. This is the first instance of the DPMO commenting on emerging price increases in California, fulfilling its mandated role of state petroleum market watchdog established with its creation as an independent agency within the California Energy Commission (CEC) last year. It is not clear what refinery maintenance DPMO is referring to. PBF Energy reported a hydrocracker malfunction at its 160,000 b/d Torrance refinery this week while Marathon Petroleum's 365,000 b/d Los Angeles plant, the largest in California, was shutting units in August and flaring earlier this month. Valero reported a power outage at its 85,000 b/d Wilmington refinery in late August. Spot market gasoline prices have "surged" while crude and national average gasoline prices have declined, the DPMO said. Retail prices have not reached the record highs of price spikes in 2022 and 2023, but there is a growing gap compared to the US national average, the agency said. The average retail price of gasoline in northern California averaged $5.02/USG on 12 September, $1.92/USG higher than the rest of the country and a $1.48/USG premium in late August, according to DPMO data. "In current market conditions, California refiners may seek to sell gasoline at prices far exceeding any increase in their own input costs," the DPMO said. The refining industry has been in Newsom's cross hairs since last year's passage of SB X1-2, his bill aimed at combating what he views as price gouging by refiners. This garnered significant push back from companies and industry groups for what they see as a politically motivated misdiagnosis of what makes California retail prices higher than other states' prices. On 15 August, Newsom unveiled a proposal to require refiners to hold minimum inventories of gasoline. An initial information hearing on that proposal is scheduled for 18 September. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Hurricane Francine brings rain to the lower Miss. River
Hurricane Francine brings rain to the lower Miss. River
Houston, 13 September (Argus) — Hurricane Francine dropped 4-8 inches of rain around the lower Mississippi River, raising forecast water levels on the river and potentially improving shipping conditions for barges. Points between Cairo, Illinois, and Vicksburg, Mississippi, that were at their low water thresholds over the week are now forecast to exit those thresholds in the coming week according to the National Weather Service (NWS). Increased rainfall from Hurricane Francine has locations like Greenville, Mississippi and Helena, Arkansas entering regular water levels as soon as this weekend. Other locations, such as Memphis, Tennessee, will see a bump in water levels, but will remain at its low water threshold, said NWS. The US Coast Guard has not made any changes to the draft and towing restrictions since 10 September when they changed the point for heavier loading from Greenville, Mississippi, to Vicksburg for southbound limits. More water is likely to enter the lower Mississippi River through its tributaries in the coming days, after Francine has passed the Mississippi Delta. The storm made landfall as a hurricane on the Louisiana coast the evening of 11 September but downgraded to a tropical storm as it moved northward. 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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