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Russian base oil exports on the decline: DYM Resources

  • Market: Oil products
  • 22/02/23

Russian base oil exports in 2022 were behind 2021 levels for every month of the year and are unlikely to recover this year, trading firm DYM Resources told the Argus Global Base Oils Conference today.

DYM Resources' managing director Denis Varaksin attributed the decline to challenging export conditions resulting from Moscow's invasion of Ukraine, and said European buyers took only around 60,000t of Russian product in the second half of 2022 compared with around 90,000t a year earlier.

Although Russia had attempted to shift export patterns to other destinations, these are plagued with difficulties, he said. Notable alternative markets include Turkey, which has doubled its imports of Russian products to more than 120,000t but that is probably unable to absorb more base oil products.

Nigeria is another of Russia's traditional export destination, but the west African country's base oil imports fell in 2022 by between 20,000-30,000t to 260,000-270,000t. A weakening currency may limit Nigeria's ability to import.

India is another potential alternative market with a large import appetite. But discounted Iranian-origin products could be competitive with Russian base oils, which are affected by limited freight capacity and high insurance rates.

Sending Russian product to South America face the same issues, and these shipments more than halved in 2022 to 20,000t. With buyers in north America shunning Russian products, exports will probably continue to decline in 2023.

This could cause Europe to lose its buffer of base oil supply, although new suppliers have entered the Group I market that traditionally made up the majority of imports from Russia.


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21/02/25

Republicans target US energy rules for disapproval

Republicans target US energy rules for disapproval

Washington, 21 February (Argus) — Republican leaders in the US House of Representatives hope to disapprove at least seven energy-related measures issued under former president Joe Biden using a filibuster-proof process created under the Congressional Review Act. House majority leader Steve Scalise (R-Louisiana) on Thursday released a list of 10 rules that his party has prioritized as "potential targets" for disapproval votes, which require only a simple majority to pass in each chamber. Republicans previously used the law in 2017 to successfully unwind more than a dozen rules, and they hope to do so again to repeal Biden-era rules they say will unnecessarily raise costs on businesses and consumers. A US Environmental Protection Agency (EPA) regulation that implements a $900/t charge on oil and gas sector methane leaks is among the rules that Republicans want to disapprove. If those implementing rules are scrapped, it would provide a temporary reprieve from a 31 August deadline for operators having to pay billions of dollars in potential fees on methane emitted in 2024. Republicans hope to vote later this year to permanently end the methane charge, which was created by the Inflation Reduction Act. House Republicans also hope to disapprove an offshore oil and gas safety rule for drilling in deepwater "high pressure, high temperature" environments that Scalise's office says will increase "burdens on energy operations". Other rules that Republicans will target for disapproval are energy conservation for gas water heaters, energy efficiency labeling standards and air pollution restrictions on rubber tire manufactures. Two of the energy measures House Republicans say they plan to target might not qualify for disapproval under the Congressional Review Act, which can only be used on a "rule". The first is a waiver that would allow California to boost in-state sales of electric vehicles and plug-in hybrids, and that President Donald Trump's administration has tried to make eligible for repeal. The second is the US Commodity Futures Trading Commission's decision to release voluntary guidance for exchanges that allow trading of carbon offset futures. 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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Atoba to offtake SAF from Haffner Energy in France


21/02/25
News
21/02/25

Atoba to offtake SAF from Haffner Energy in France

London, 21 February (Argus) — French renewable fuel producer Haffner Energy announced a new sustainable aviation fuel (SAF) long-term offtake agreement with SAF aggregator Atoba Energy. The two companies will also collaborate on SAF production, although Haffner is yet to disclose further details of the partnership. Atoba will offtake "a good proportion" of SAF from Haffner's 60,000 t/yr production facility at Paris-Vatry airport, Haffner global chief marketing officer Marcella Franchi told Argus . "[The partnership with Atoba] will facilitate the financing of our SAF projects, starting with Paris-Vatry", chief executive Philippe Haffner said. The Paris-Vatry project is a collaboration between the French firm and production pathway developer LanzaJet. The plant, which is due to begin operations in 2028, will use an alcohol-to-jet production pathway. To meet EU SAF regulations, the feedstock will be advanced, drawn from Annex 9 list A of the EU Renewable Energy Directive (RED II). The ATJ pathway will convert syngas, produced from the feedstock's initial treatment, into ethanol, which will then be turned into SAF using LanzaJet's processes. Last year, Haffner revealed it is creating a SAF spin-off entity called SAF Zero. Haffner will license its SAF production technology to the entity and "aims to remain a shareholder" in SAF Zero. The latter will license Haffner's technology for an upfront fee and royalty agreement. In addition, Haffner has undisclosed SAF projects for biogenic SAF and e-SAF in the US, Europe, Africa and Asia-Pacific. EU-wide SAF mandates kicked in at 2pc this year, rising to 6pc by 2030. By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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


20/02/25
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20/02/25

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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