Generic Hero BannerGeneric Hero Banner
Latest market news

UAE tightens HSFO bunker regulations

  • Market: Oil products
  • 20/11/22

Vessels refuelling with high-sulphur fuel oil (HSFO) at all United Arab Emirates (UAE) ports will now have to submit a copy of an International Air Pollution Prevention (IAPP) certificate, proving that the ship has a working scrubber, the country's Ministry of Energy has said.

The ministry has issued a notice requesting port authorities to confirm receipt of an IAPP certificate before delivering bunker fuel with a sulphur content above 0.5pc, the limit introduce by International Maritime Organisation (IMO) as of 1 January 2020. Scrubbers are exhaust gas cleaning systems that allow ships to continue burning cheaper HSFO as a bunker fuel without contravening IMO regulations.

While the majority of shipping companies, mindful of reputational risks, comply with the IMO regulation, policing all vessels is a difficult challenge.

"There was a concern by the UAE authorities that some shipowners continued buying the cheaper fuel, without even having a scrubber on board," one Fujairah bunker trader said. Delivered HSFO bunker prices in the UAE port of Fujairah, the world's third-largest bunkering centre, have in recent weeks been around $275-300/t cheaper than 0.5pc sulphur bunker fuel.

The share of HSFO in bunker sales in Fujairah has been rising as more scrubber-equipped vessels have been put into use over the past three years. HSFO now accounts for around 20pc of Fujairah's 600,000-650,000 t/month of bunker sales, according to Argus estimates.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
25/02/25

Deadline nears for Dutch marine fuel parallel claims

Deadline nears for Dutch marine fuel parallel claims

London, 25 February (Argus) — Shipowners bunkering in the Netherlands have just three days to register the required data to make a so-called "parallel claim" for use of advanced biodiesel blends last year under the EU's emissions trading system (ETS). But with the deadline fast approaching, it is still not certain if parallel claims can be applied across the board for 2024 emissions, according to the Dutch Emissions Authority (NEa). The legal basis for these claims within the scope of the ETS scope will be provided by an amendment to the Emissions Trading Regulation, NEa said. Until such an amendment has been ratified, no "rights can be derived" for parallel claims, it added. Market participants told Argus that the 28 February data entry deadline will apply primarily to Dutch-flagged vessels and international vessels that disembark in the Netherlands most frequently during a reporting year. Parallel claims refer to advanced fatty acid methyl ester (Fame) marine biodiesel blends bunkered in the Netherlands, which are eligible for both Dutch renewable HBE-G tickets and a zero CO2 emission factor under the EU ETS. HBE-G tickets are a class of Dutch renewable fuels units used by companies that bring liquid or gaseous fossil fuels into general circulation and are obligated to pay excise duty/energy tax on fuels. These tickets are typically obtained by the bunker fuel supplier, and the process would usually include submitting Proof of Sustainability (PoS) documentation. The shipowner buying advanced Fame marine biodiesel blends would typically not receive the PoS at the point of delivery. But PoS documentation is generally required for EU ETS purposes, including obtaining a zero CO2 emission factor for eligible biofuels. The Netherlands' Ministry of Infrastructure and Water Management has decided to allow parallel claims for maritime fuels, and the NEa said it communicated instructions on this to relevant bookers last month. But the uncertainty surrounding the application of parallel claims for 2024 could weigh on marine biodiesel demand in the Netherlands, where regional price dynamics have led to a shift in demand away from northwest Europe and towards Singapore. Prolonged uncertainty could further support demand in Singapore, where parallel claims would usually not be necessary under EU ETS and FuelEU Maritime regulations. The International Sustainability and Carbon Certification (ISCC) recently issued a framework for a Proof of Compliance (PoC) document, intended to address challenges arising from the unavailability of PoS documentation for downstream operators, such as airlines and shipowners. NEa said it expects a temporary solution such as the PoC to be available for compliance year 2025. In the longer run, the plan is for the Union database to facilitate claims, it said. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

India’s bitumen imports, consumption slip in 2024


25/02/25
News
25/02/25

India’s bitumen imports, consumption slip in 2024

Mumbai, 25 February (Argus) — India's bitumen consumption in 2024 fell by 4pc on the year, while imports fell by 16pc on the year, as national elections and delays in the disbursement of project funds by some state governments hampered project works. Consumption totalled 8.44mnt in 2024, down from a record high of 8.81mnt in 2023 , according to preliminary oil ministry data. Imports totalled 2.8mnt in 2024, down from 3.32mnt in 2023 , the data showed. State governments have been using the infrastructure funds for other verticals and subsidy schemes, said market participants, and this has delayed the disbursement of project funds. Imports also fell as higher outstanding payment receivables from contractors forced importers to not sell cargoes on a credit basis, but contractors were not ready to purchase on cash basis because of the fund crunch. "Inventories are adequate and demand for cargoes is good but we cannot sell on credit as payment outstanding is higher," a major Indian importer said, adding that they would be immediately sold out if they sell with a longer-than-usual credit period. Meanwhile, vessel-owning traders have been importing cargoes to avoid vessel idling costs. This has increased inventories in some parts of the country. "Demand is not that great, and tanks are high," a west coast India-based importer said. "We are selling on credit [to offload stocks], so the shipment turnaround time is less. [But] that doesn't mean it is all profitable, the margins are bad," the importer added. Some Middle East cargoes earmarked for southeast Asia were also redirected to India in the last quarter as the price arbitrage window was closed. This increased inventories for the short term, but this did not increase import volumes for the year as overall demand was weak, market participants added. Indian importers expect consumption in 2025 to be higher than last year, with some expecting it to surpass 2023 levels as there are projects pending. But this will be contingent on the timely disbursement of funds . Some market participants are expecting imports to surge this year as demand for imported cargoes is stronger because of competitive offers, compared to cargoes from state-controlled refiners. This could pressure refiners to cut production, which would in turn support imports, the participants added. Bitumen production rose by 1pc on the year in 2024 to 5.2mn t, from 5.13mn t in 2023. This is unlikely to change in 2025 as there will not be any capacity augmentation for bitumen, but producers are mulling output cuts and may instead import cargoes at a relatively cheaper levels from the Middle East, a source close to a state-controlled refinery told Argus . By Sathya Narayanan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Reopening New Zealand refinery could cost $4bn: Study


25/02/25
News
25/02/25

Reopening New Zealand refinery could cost $4bn: Study

Sydney, 25 February (Argus) — Reopening New Zealand's mothballed 135,000 b/d Marsden Point refinery (MPR) could take six years and cost up to NZ$7.3bn ($4.2bn), according to a government-commissioned study. MPR, New Zealand's only refinery that is located north of largest city of Auckland, was converted to an oil product import terminal in 2022. The interim report, which was commissioned by New Zealand's National-led government last year, cited Australian professional services firm Worley's estimates that reestablishing refining would require NZ$4.9bn-7.3bn. This imposes significant risks and costs on MPR owner Channel Infrastructure, which has imported oil products since refining ended in 2022. A reopening would provide more resilience against quality issues with imported fuels, increase stockholding and provide local employment. But this is offset by a dependence on crude imports, with MPR becoming a single point of failure risk, and increased greenhouse gas emissions associated with refining. Fuel Security Study The Ministry of Business, Innovation and Employment on 25 February separately released a Fuel Security Study, which found that fuel security remains threatened by supply disruption. It recommends that the nation instead focus on increased storage and zero-emission vehicles instead of reopening MPR. The strategies considered for improving New Zealand's fuel supply security included reopening the refinery or building a new one, increasing jet fuel and diesel storages, expanding trucking capacity to mitigate against infrastructure failures, investing in biofuels production and increasing uptake of zero-emissions transport. Resurrecting MPR or building a new refinery for locally produced crude would be inefficient given either expense or the limited effectiveness that a new facility would have in supplying all fuel types required, the study found. The most cost-effective security enhancement is increasing storage levels of diesel and jet fuel, while gasoline was less of a concern given generally high stocks, with more gasoline storages to be converted to other fuels as demand falls owing to electric vehicle (EV) uptake. EVs will likely diminish New Zealand's reliance on gasoline but diesel use will taper off more slowly given less advanced alternatives, while jet fuel demand is likely to rise without other realistic options in the short term. Biofuels were found to be viable for securing domestic jet fuel and diesel supply, but further study is required and developing this sector would cost more. About 70pc of New Zealand's fuel imports are from Singapore or South Korea, exposing the country to shipping disruptions, but fuel companies' ability to adjust supply chains would mitigate any major impacts, the study said. Internally, the threat of natural disasters impacting pipelines or import terminals should lead to more thorough planning for such events. New Zealand would carefully weigh the costs and benefits of the actions suggested in the fuel study, associate energy minister Shane Jones said on 25 February, including considering the creation of energy precincts and special economic zones to spur a domestic biofuels sector. Jones, a member of the NZ First party in coalition with National, added that creating such zones with special regulations and investment support could help attract overseas investors. By Tom Major Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Gasoline price in southern Germany down on ample supply


24/02/25
News
24/02/25

Gasoline price in southern Germany down on ample supply

Hamburg, 24 February (Argus) — Suppliers in southern Germany are lowering gasoline prices compared with the nationwide average on ample supply and slow demand. Gasoline availability in Southern Germany has remained sufficient enough to cover local demand even though refinery outages hampered supply, because demand has remained slow, around Karlsruhe especially. This has forced some suppliers to keep prices well below the national average. Gasoline prices in the region have fallen significantly compared with the rest of the of Germany with discounts of over €2,20/100l in the past week. Production at the Bayernoil consortium's 215,000 b/d Vohburg-Neustadt refinery in Bavaria and the Miro joint venture's 310,000 b/d Karlsruhe refinery is still restricted. Both facilities experienced technical problems within days of each other at the end of January. While a third of Miro's production capacity is expected to remain offline until the beginning of March, the operators of the Bayernoil refinery began the process of bringing the affected units back online on Sunday. Meanwhile, suppliers in Cologne are selling gasoline with a premium of up to €1,60/100l to the national average. This sudden price jump points toward reduced availability at Shell's 334,000 b/d Rhineland refinery complex. Although traders in the region have not reported any gasoline shortages, the upcoming end of crude refining at the 147,000 b/d Wesseling plant of the Rhineland refinery in March could already be having an effect on prices. By Natalie Muller Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Grangemouth refinery site to get $253mn in public funds


24/02/25
News
24/02/25

Grangemouth refinery site to get $253mn in public funds

Edinburgh, 24 February (Argus) — The UK government has committed £200mn ($253mn) for investment in clean energy for the site where UK-Chinese firm Petroineos' 150,000 b/d Grangemouth refinery, due to be permanently shut this year, is located. The government said on 23 February that it will work alongside private sector partners to develop new industries and leverage additional funding through the £200mn in public investment allocated from the UK's National Wealth Fund (NWF). The NWF was set up last year by the government to support investment in clean energy industries and mobilise private sector involvement across the UK. "The funding will be available for co-investment with the private sector to help unlock Grangemouth's full potential and secure our clean energy future," UK prime minister Keir Starmer said. Petroineos is planning to close the Grangemouth refinery in Scotland, this year and turn it into an import terminal because of high costs and declining fuel demand in Europe. Refineries in Europe have long faced competitiveness issues from larger and newer refineries in other regions including the Mideast Gulf, Asia-Pacific and Africa. Around 30 refineries have closed in Europe since 2000, while 2.5mn b/d of crude distillation capacity was added outside the region in the past three years alone. Only around 65 workers will be retained by Petroineos to run the terminal once the Grangemouth refinery closes. The government committed to provide a training guarantee for the staff at the refinery to gain new skills at local colleges. UK union Unite welcomed the announcement, saying that the "significant investment should be the start of a real industrial plan for Grangemouth that both safeguards Scotland's energy security and delivers the jobs of the future." But the union warned that clear timescales for the development of Grangemouth and details on jobs were needed. Unite is supporting the conversion of the refinery into a biorefinery for the production of sustainable aviation fuel (SAF). Petroineos said last year that it did not deem the refinery conversion viable, after having considered it. The firm did not immediately reply to a request for comment following the release of the new government funding. The UK government announcement comes after Scotland's first minister John Swinney committed to allocate £25mn from the proceeds of the Scottish offshore wind leasing round ScotWind to establish a just transition fund for Grangemouth. "The aim is to expedite any of the potential solutions that will be set out in the Project Willow report, as well as other proposals that will give Grangemouth a secure and sustainable future," he said last week. Project Willow is a feasibility study commissioned by the UK and Scottish governments to identify long-term industrial options for the site. The report is due to be released this spring. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more