Brazilian firms win more fuel terminals
Brazilian firms bid aggressively today for one greenfield and five brownfield fuel terminals in the northern state of Para, raising around R448mn ($116mn) in signing bonuses.
The winners include some of the same domestic companies that picked up four terminals in a 22 March fuel terminal auction.
State-controlled Petrobras, Ipiranga and Cosan-Shell joint venture Raizen remained a driving force behind today's auction
Tequimar, the fuel tanking subsidiary of Brazilian conglomerate Ultra Group, sat out last month's offer, but today pledged a winning R180.5mn signing bonus for the greenfield Vila do Conde terminal.
The area is suitable for 4mn t/yr of new storage capacity, according to Antaq. The terminal lease runs for an initial 25 years with an optional extension for up to 70 years.
The five brownfield terminals awarded today are located at the Miramar chemicals port complex in Belem. The winners already operate around 207,000m³ of combined storage capacity at the port.
Ipirianga, one of Brazil's largest fuel distributors, pledged R87mn for the BEL 04 terminal. Fuel storage capacity is projected grow to 864,000 m³/yr over the life of the lease, also with an initial 15-year period and the option for extension up to 70 years.
Petroleo Sabba, part of the Raizen group, pledged R60mn for BEL 02B. Consorcio Latitude, comprised of Ipiranga and Petroleo Sabba, pledged R40mn for the BEL 02A terminal. The two areas have initial 15-year leases with the possibility of extensions for up to 70 years.
Petrobras' fuel distribution subsidiary Petrobras Distribuidora (BR) won the BEL 08 terminal with a signing bonus of R50mn, and the firm's transport subsidiary Transpetro picked up the BEL 09 terminal with a winning bid of R30mn. The leases for the areas have an initial 20-year term with the option to extend up to 70 years. Storage capacity at BEL 09 is expected to grow to 530,000 t/yr with a focus on LPG.
The total investment for the six terminals is estimated at around R430mn, according to Brazilian waterways regulator Antaq.
"In each of the auctions, our expectations were exceeded," Brazil's infrastructure minister Tarcisio Gomes de Freitas said today, adding that the areas are key to ensuring fuel supply in Brazil's north, northeast and center-west regions.
With today's auction, Brazilian president Jair Bolsonaro met his administration's goal of auctioning 23 concessions during the first 100 days of his term that started in January.
Despite struggles with other reforms such as pensions, the government has already held successful auctions for airports, seaports, highways and railways.
The government is currently finalizing concession terms for other fuel terminals in Santos and Paranagua ports for auction later this year, government officials said today.
With no new refining capacity planned before 2023 at the earliest, Brazil will continue to rely on fuel imports well into the next decade. The government's infrastructure plan reflects the need for greater import capacity to meet projected demand growth.
Opening Brazil's ports has been under discussion since 2013, but only gained traction in the final weeks of former president Michel Temer's two-year term.
Related news posts
US trucking index at 18-month high in August: ATA
US trucking index at 18-month high in August: ATA
Houston, 25 September (Argus) — US trucking freight volumes rose in August to the highest level since February 2023, the American Trucking Association (ATA) said. The ATA's seasonally adjusted Truck Tonnage Index (TTI) rose in August by 1.8pc from a month earlier and by 0.7pc from a year earlier. The index has increased on a monthly and yearly basis only twice in the past 18 months, last doing so in May 2024 . August's "robust gain" indicates freight levels are rebounding from a bottom, according to ATA economist Bob Costello. The TTI's month-to-month movement so far this year also shows the freight market is "at an inflection point," Costello said. The US trucking industry contracted in 2023 and initially got off to a slow start this year. Last week, the Federal Reserve cut its target lending rates for the first time in four years , suggesting the worst inflationary pressures may be over. The TTI is calculated monthly using a survey of ATA membership to estimate seasonally-adjusted trends in the value of US truck freight. Trucking comprises roughly three-quarters of tonnage carried by all modes of transportation in the US, and so can serve as an indicator of the health of the transportation sector and the economy at large. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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.
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