Hurricane Florence prompts EPA fuel waiver
US environmental officials waived summer fuel requirements three days early as Hurricane Florence churned toward the North and South Carolina coasts.
The Environmental Protection Agency (EPA) waived federal requirements to sell summer blend gasoline with a lower Reid Vapor Pressure (RVP) ahead of the category 4 storm's expected landfall late this week.
The waiver allows the sale of winter-grade gasoline more prone to evaporation in summer months, as well as blends of summer and winter gasoline, in North and South Carolina evacuation zones. The summer fuel season ends 15 September.
Florence was in position to strengthen as it moved from south of Bermuda toward evacuating US Atlantic coastlines. The storm was forecast to strengthen to 145 mph winds before weakening as it hit the coast. Hurricane Florence was shifting south compared to early tracks that estimated the storm moving up into Virginia.
Lashing winds risk power outages, and expected heavy rains could further disrupt fuel distribution in the region.
North and South Carolina operate no major US refineries but serve as a throughway to major refined products pipelines supplying the Atlantic coast. Both Kinder Morgan's 600,000 b/d Plantation Pipeline and Colonial Pipeline's 2.5mn b/d trunk line system move US Gulf coast refinery production through South Carolina to Greensboro terminals before continuing into Virginia. Colonial's system delivers into the New York Harbor market.
Colonial today expected to continue operating through the storm.
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Vertex Energy files for bankruptcy, seeks sale
Vertex Energy files for bankruptcy, seeks sale
Houston, 25 September (Argus) — Specialty refiner Vertex Energy has filed for chapter 11 bankruptcy in a US court following a failed foray into renewable fuels production at its 88,000 b/d Mobile, Alabama, refinery. Vertex has entered into a restructuring support agreement with its lenders and secured $80mn of new funding to finance its day-to-day business operations, the company said late Tuesday. The refiner is also considering a "more value-maximizing sale transaction" and expects to confirm its chapter 11 bankruptcy plan by the end of the year, according to the 24 September press release. Vertex announced in May this year that it would "pause" renewable diesel production at its Alabama refinery and return the unit to producing fossil fuel products. The company later said it would use a third quarter turnaround to return the Alabama plant's converted hydrocracking unit to processing fossil fuel feedstocks and be back online in the fourth quarter. Vertex also operates a re-refinery near New Orleans, Louisiana, that produces low-sulfur vacuum gas oil (VGO) and multiple used motor oil (UMO) processing plants and collection facilities along the Gulf coast. Refiners have faced mixed fortunes in recent years with their investments in renewable fuels after a glut of new supply flooded markets and depressed renewable credit prices. US independent refiner Delek announced in August that it is temporarily idling three biodiesel plants in Texas, Arkansas and Mississippi as it explores alternative uses for the sites. Chevron said earlier this year it was indefinitely closing two biodiesel plants in Wisconsin and Iowa due to market conditions. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Container lines to impose US strike surcharges
Container lines to impose US strike surcharges
New York, 24 September (Argus) — Container ship owners Maersk, CMA CGM and Hapag-Lloyd warned their clients that if a looming port strike takes place, they would implement port disruption surcharges for container cargo moving to and from the US east and Gulf coast terminals. If a International Longshoremen's Association (ILA) strike takes place, CMA CGM's surcharge will go into effect on 11 October. The company will charge $1,500 per twenty-foot container unit (TEU) and $3,000 per forty-foot container unit for cargo moving from Latin America and the Caribbean to the US east and Gulf coasts. CMA CGM's surcharge for exports from the US east and Gulf coasts to Latin America and the Caribbean will be $800 per TEU and $1,000 per forty-foot container unit. Hapag-Lloyd's surcharge of $1,000 per TEU will apply from 18 October to all imports to the US east and Gulf coast. Maersk will implement its surcharge on 21 October. It will include $1,500 per TEU, $3,000 per forty-foot container unit and $3,780 per forty-five-foot container unit for cargo moving in and out of US east and Gulf coasts. Its surcharges are subject to regulatory approval for containers departing from China. The company is prioritizing import container movements before disruptions take place and asking its customers to expedite documentation and customs clearance to retrieve cargo promptly. It warns that strike disruptions will affect terminal operators' ability to monitor refrigerated containers and encourages its customers to plan accordingly to avoid the risk of loss to temperature-controlled cargo. The surcharges would cover higher operational costs that will be incurred due to service disruptions, the companies say. They are exploring alternative routing options. A possible strike could cause some of the container ship cargo to be re-routed to US west coast ports, Canada and Mexico, and then transported on rail or truck to the US Gulf and east coasts. The contract between the ILA and the United States Maritime Alliance (USMX) is set to expire on 30 September. The current six-year agreement covers approximately 25,000 port workers employed in container and roll-on/roll-off operations at ports from Maine to Texas. The USMX reiterated its willingness to reenter discussions with the ILA on a new master contract. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Draught limits tighten on lower Mississippi River
Draught limits tighten on lower Mississippi River
Houston, 23 September (Argus) — The US Coast Guard (USGC) placed further restrictions on traffic on the lower Mississippi River as water levels continue to deteriorate. The USCG on 22 September announced that all northbound traffic cannot have draught deeper than 9.5ft from Tunica, Louisiana, to Greenville, Mississippi. For Greenville to Tiptonville, Mississippi, barges must remain above a 9ft draught, the shallowest draught channel allowed for the lower Mississippi River by the US Army Corps of Engineers. All northbound transit also cannot load more than four barges wide or configure more than five barges wide. Southbound traffic from Tiptonville to Greenville cannot be more than six barges wide or deeper than 9.5ft. Greenville to Tunica southbound barges can load as deep as 10ft but cannot be more than seven barges wide. All locations between Cairo, Illinois, and Greenville fell back to their low water threshold over the weekend as rainfall from Hurricane Francine flowed down the river. More grain has moved downriver this year compared with last year as the US Department of Agriculture (USDA) expects higher US grain exports in the 2024-25 marketing year. Around 367,000 short tons of grain moved for the week ended 14 September, which is about double the same period a year earlier, the USDA said. Both south and northbound movement is expected to see a heavier pace in October. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
UN pact reiterates Cop 28 fossil fuels transition goal
UN pact reiterates Cop 28 fossil fuels transition goal
Edinburgh, 23 September (Argus) — Heads of states and governments have adopted a pact that includes wording agreed at last year's UN Cop 28 climate summit on "transitioning away from fossil fuels". The 'Pact for the future' was agreed yesterday, ahead of the UN general assembly which is starting tomorrow. In the section focusing on climate change, the pact reuses the entire energy section from the Cop 28 outcome text, including recognising "the need for deep, rapid and sustained reductions in greenhouse gas emissions in line with 1.5°C pathways" and "transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner". Russia sought to defer the adoption of the pact, saying other delegations did not back the text and calling support for the document "hypocritical". But Moscow drew only limited support from countries such as Venezuela, Syria and Iran. Climate groups welcomed the mention of fossil fuels in the pact, but pointed out that the Cop 28 text, which was adopted after lengthy negotiations in Dubai last year, has yet to translate into concrete plans for transitioning away from fossil fuels, including from richer nations. At the start of this year, major oil producer Saudi Arabia described the energy section of the Cop 28 text as an "a la carte" menu and said developed countries should take the lead in phasing down fossil fuels production. The UN described yesterday's pact as the "culmination of an inclusive, years-long process to adapt international co-operation to the realities of today and the challenges of tomorrow". It is the "most wide-ranging international agreement" in many years and "aims above all to ensure that international institutions can deliver in the face of a world that has changed dramatically since they were created", the UN said. It includes topics such as peace and security, sustainable development, climate and finance, digital co-operation, youth and future generations, and human rights and gender. Heads of states and governments agreed to accelerate reform of the international financial architecture to mobilise additional financing for sustainable development goals, inviting multilateral development banks "to present options and recommendations on new approaches to improve access to concessional finance for developing countries". They also committed to support developing countries to attract private-sector investment in sustainable development through the use of public financing. Public financing from developed countries is at the heart of current negotiations to set a new climate finance goal to support developing countries — to build on the previous $100bn/yr target . The new goal, the so-called new collective quantified goal (NCQG), should be agreed during the Cop 29 talks in November this year, but technical negotiations have failed to progress. At the end of last week, Germany signalled that the new financial target will likely be agreed "at the last minute" during the summit and complained that the focus of Cop 29 should not only be on finance but also on progressing ambitions on mitigation — actions to reduce emissions. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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