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New Israeli tanker attack raises Mideast Gulf tensions

  • Market: Crude oil, Oil products
  • 20/02/23

Iran's foreign ministry has dismissed accusations levelled against it by Tel Aviv that it was behind an attack on an Israeli-owned oil tanker in the Arabian Sea earlier this month.

The Liberia-flagged Campo Square oil product tanker was targeted by an "airborne object" late on 10 February while it was sailing around 300 miles off the coasts of India and Oman, its management company Eletson confirmed to Argus today. Oil analytics firm Vortexa says the vessel is linked with ship management company Zodiac Maritime, which is part of the Ofer Global conglomerate owned by Israeli billionaire real estate and shipping magnate Eyal Ofer.

Israeli prime minister Benjamin Netanyahu on 19 February accused Iran of being behind the attack on the vessel, saying the incident "struck at the international freedom of navigation".

"We reject this accusation," Iranian foreign ministry spokesman Nasser Kanaani said. "The Zionist regime is used to making accusations, but Iran will continue its efforts to maintain the security and freedom of navigation in international waters," he added.

As a country that "endangers the security of others and does not adhere to the security of other countries", Israel "has no right to make accusations against others", Kanaani said.

According to Eletson, the incident took place while the vessel was free of cargo and resulted only in "minor damage". The ship and crew are all safe "and proceeding as per planned passage," it said. Vortexa today put the vessel in the Red Sea, travelling towards the Suez Canal.

Move to sea

The attack comes amid rising tensions in the region, particularly between Iran and its arch-rival Israel, as talks between Tehran and Washington aimed at reviving the 2015 Iran nuclear deal remain deadlocked.

"On the Iranian front, our efforts are unceasing for the simple reason that Iran's acts of aggression are unceasing," Netanyahu told a cabinet meeting. In addition to the tanker incident, "Iran attacked an American base in Syria. Iran continues to send deadly weapons that attack masses of innocent civilians far from its borders", he said.

Israel "will not allow Iran to obtain nuclear weapons, and we will not allow it to entrench on our northern border", he said, in reference to Lebanon's Iran-backed Islamist militant group Hezbollah. "We are doing, and will do, everything to defend our people, and we are responding forcefully to the attacks against us."

This latest incident appears to represent the latest chapter in an ongoing shadow war between the two countries that has moved to sea, with several vessels, linked either to the UAE or Israel, having come under attack in the Mideast Gulf in recent years.

In November last year, the Pacific Zircon, which is managed by Eastern Pacific Shipping (EPS), was hit by a projectile off the Omani coast. EPS is owned by Idan Ofer, Eyal's younger brother. Prior to that, in July 2021, there was an attack on the Japanese-owned product tanker Mercer Street, which is managed by Zodiac Maritime. And earlier that year, Israel blamed Iran for an explosion on an Israeli-owned car carrier vessel in the Gulf of Oman. Iran has denied involvement in all three incidents.


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30/08/24

South Korea to require use of SAF for flights from 2027

South Korea to require use of SAF for flights from 2027

Singapore, 30 August (Argus) — South Korea said it plans to require all international flights departing from its airports to use a mix of 1pc sustainable aviation fuel (SAF) from 2027. This comes as more countries are adopting SAF mandates in accordance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Singapore earlier this year announced a 1pc SAF blending mandate from 2026 , with plans to increase to 3-5pc by 2030, subject to global developments and wider SAF availability and adoption. The Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport announced the 'SAF Expansion Strategy' on 30 August, which includes a target for South Korea to capture 30pc of the global blended SAF export market. While not explicitly stated in the statement, some South Korean refineries expect co-processed SAF to be allowed to meet the country's mandate, sources said. This is important as the country already produces small quantities of SAF via co-processing at existing refining facilities, with three of South Korea's four domestic refineries planning to produce SAF through co-processing by the end of this year . Key strategies The ministries outlined three key strategies to achieve the SAF consumption target — gradual expansion of domestic SAF demand, ensuring a stable domestic supply capacity, and establishing a SAF-friendly legal and institutional environment. Airlines can already refuel with SAF at Korean airports, making South Korea the 20th country to do so as part of their plan to increase domestic SAF demand. The country had tested six flights using 2-4pc imported blended SAF between South Korea and Los Angeles since August 2023. An incentive system is being developed to encourage public and private adoption of SAF, with benefits such as preferential allocation of transport rights, reduced airport facility usage fees and the introduction of airline carbon mileage system for passengers and other benefits. A mid- to long-term roadmap for the gradual expansion of domestic SAF demand will be prepared in early 2025, the ministries said. The country's strategy to secure stable domestic supply capabilities includes considering investment support for domestic SAF production such as tax credits. South Korea's four domestic refineries already plan to invest 4 trillion won ($3bn) in renewable fuels, including SAF by 2030, the ministries said. The government estimates a Hydrotreated Esters and Fatty Acids (HEFA) SAF plant with a production capacity of up to 250,000 t/yr will require an investment of approximately W1 trillion. The supply-side strategy also aims to ease regulations on waste recycling to increase the availability of domestic feedstocks for SAF production. Another strategy is to diversify feedstock and SAF production technology options, with pre-testing expected later this year. The government plans to explore alternative feedstock like microalgae and production pathways such as e-SAF, with a view to developing supply chains. South Korea plans to establish a national standard, certification and testing method for SAF with preparation planned for December 2024. By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Libyan crude production slips below 600,000 b/d


30/08/24
News
30/08/24

Libyan crude production slips below 600,000 b/d

Dubai, 30 August (Argus) — Libya's crude output has fallen to below 600,000 b/d, less than half what the country was producing just a month ago, according to figures reported by state-owned oil company NOC. Production has plummeted in recent days after Libya's eastern-based administration announced a blockade on oil output and exports in response to moves by its rival, the Tripoli-based Presidential Council, to replace the central bank governor. Libya produced 591,024 bl on 28 August, NOC said, down from 783,422 bl on 27 August and 958,979 bl on 26 August, NOC said. Production is almost certain to have fallen further on 29-30 August. It represents a more than halving of output in the space of just a month. Production stood at 1.28mn bl on 20 July, NOC said, while Argus assessed the July average at 1.2mn b/d. Total losses over 26-28 August amounted to around 1.5mn bl, worth just over $120mn. NOC said. All of Libya's eastern oil terminals — Es Sider, Ras Lanuf, Zueitina, Marsa el Hariga and Marsa el Brega — received instructions to stop operations at 15:00 local time on 29 August, according to port agents in the country. Some tankers have managed to load crude since the blockade was announced at the start of the week. The New Amorgos and Ohio loaded at Zueitina and Es Sider, respectively, and have since sailed from the country. Five more tankers were scheduled to load crude in the country from today, according to Kpler tracking, four of them in the east. The clash between the rival east and west political factions in Libya had been brewing for over week before the blockade announcement. The eastern-based Libyan National Army (LNA) has imposed several politically motivated oil blockades in the past few years. The LNA ordered the shutdown of the El Sharara field earlier this month, resulting in the loss of around 250,000 b/d of output. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Australia's Qantas records higher fuel costs in 2023-24


30/08/24
News
30/08/24

Australia's Qantas records higher fuel costs in 2023-24

Singapore, 30 August (Argus) — Australian airline Qantas Airways recorded a higher fuel bill in the 2023-24 fiscal year to 30 June, as more flights, sustainable aviation fuel (SAF) expenses and carbon offset programmes weighed on costs. Qantas saw its fuel costs rise by 17pc from a year earlier to A$5.32bn ($3.62bn) in 2023-24, according to the company's full-year financial results released on 29 August. The airline group's passenger carrying capacity was up by 21pc on the previous year, with growth in domestic and international capaicty. This saw the group's overall fuel consumption grow to 29mn bl (79,000 b/d), or 18pc up on the previous year. Qantas expects fuel costs in the first half of 2024-25 to remain stable from a year earlier at about A$2.7bn, including hedging and gross carbon costs, with the group forecasting to consume 15.6mn bl of fuel, including SAF. Qantas forecasts domestic group capacity to rise to 104pc of pre-Covid 19 pandemic capacity in the first half of 2024-25. Its international capacity guidance, excluding Jetstar Asia, is expected to rise by about 16pc from the previous year to achieve 102pc of pre-Covid levels in the first half. The group's passenger carrying capacity, measured by available seat kilometres (ASKs), was up on a year earlier by 21pc to 141mn ASK by 2023-24, although this was still about 93pc of pre-Covid levels. Qantas has agreements to offtake SAF, renewing its agreement to buy SAF for flights out of London Heathrow and doubling the size of its corporate customer SAF programme in 2023-24. But the group saw its 2023-24 profit fall, with underlying profit before tax down by 16pc on the previous year to A$2.08bn. By Cara Wong Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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India lifts curbs on use of sugarcane juice for ethanol


30/08/24
News
30/08/24

India lifts curbs on use of sugarcane juice for ethanol

Mumbai, 30 August (Argus) — The Indian government is allowing sugar mills and distilleries to use sugarcane juice and sugar syrup to produce ethanol during the November 2024-October 2025 supply year. The government in December last year halted the use of sugarcane juice and sugar syrup for ethanol production in the 2023-24 supply year, as insufficient rainfall in key growing regions led to a surge in domestic sugar prices and a shortage of the sweetener. Sugar mills and distilleries can also produce ethanol from B-heavy and C-heavy molasses. The food ministry's order added that it will, in co-ordination with the oil ministry, periodically review the diversion of sugar to ethanol production in relation to the production of sugar in the country to ensure the availability of sugar for domestic consumption throughout the year. The government also allowed the Food Corporation of India to sell rice to distilleries for ethanol production during August-October but capped the limit at 2.3mn t of rice. India had suspended supplies of excess rice to distilleries for ethanol production in July 2023 because of food availability and concerns about rising prices. Distilleries will be allowed to load rice during August-October subject to allocation of ethanol to the distilleries by oil marketing companies, the government order said. Of the total ethanol used for blending in gasoline in India, around 61pc comes from B-heavy molasses, 20pc from sugar syrup, 11pc from surplus rice, 6pc from damaged food grains and maize and 2pc from C-heavy molasses. India has a set a goal to increase ethanol blending in gasoline to 20pc by 2025, as part of efforts to reduce its dependence on crude imports. Ethanol blending in gasoline was 13.3pc during November 2023-July 2024 and 15.8pc during July 2024, oil ministry data show. Oil marketing companies buy ethanol from ethanol producers like sugar mills and distilleries to blend with gasoline. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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UK eyes new environmental guidance for oil, gas: Update


29/08/24
News
29/08/24

UK eyes new environmental guidance for oil, gas: Update

Adds comment from Shell London, 29 August (Argus) — The UK government will develop new environmental guidance for oil and gas firms, in the light of a recent Supreme Court decision that ruled consent for an oil development was unlawful, as the scope 3 emissions — those from burning the oil produced — were not considered. The ruling means that "end use emissions from the burning of extracted hydrocarbons need to be assessed", the government said today. The government will consult on the new guidance and aims to conclude the process "by spring 2025", it said today. It will in the meantime halt and defer the assessment of any environmental statements related to oil and gas extraction and storage activities until the new guidance is in place, including statements that are already being assessed. The Supreme Court in June ruled that Surrey County Council's decision to permit an oil development was "unlawful because the end use atmospheric emissions from burning the extracted oil were not assessed as part of the environmental impact assessment". The government also confirmed that it will not challenge judicial reviews brought against the development consent granted to the Jackdaw and Rosebank oil and gas fields in the North Sea. A judicial review in the UK is a challenge to the way in which a decision has been made by a public body, focusing on the procedures followed rather than the conclusion reached. Environmental campaign groups Greenpeace and Uplift launched legal challenges in December seeking a judicial review of the government's decision to permit Rosebank. Norway's state-owned Equinor and London-listed Ithaca hold 80pc and 20pc of Rosebank, respectively. Greenpeace in July 2022 separately filed a legal challenge against the permitting of Shell's Jackdaw field. "This litigation does not mean the licences for Jackdaw and Rosebank have been withdrawn", the government said. The Labour government, voted into office in July , pledged not to issue any new oil, gas or coal licences, but also promised not to revoke existing ones. Equinor is "currently assessing the implications of today's announcement and will maintain close collaboration with all relevant stakeholders to advance the project. Rosebank is a vital project for the UK and is bringing benefits in terms of investment, job creation and energy security", the company told Argus today. Shell is "carefully considering the implications of today's announcement... we believe the Jackdaw field remains an important development for the UK, providing fuel to heat 1.4mn homes and supporting energy security, as other older gas fields reach the end of production", the company told Argus . North Sea oil and gas production "will be a key component of the UK energy landscape for decades to come", the government said today. The UK government introduced a climate compatibility checkpoint in September 2022, designed to ensure that oil and gas licensing fits UK climate goals. The UK has a legally-binding target of net zero emissions by 2050. The checkpoint, though, does not take into account scope 3 emissions. These typically make up between 80pc and 95pc of total oil and gas company emissions. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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