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Mediterranean ECA may be proposed next year: IMO

  • Spanish Market: Oil products
  • 23/05/19

A proposal for an Emissions Control Area (ECA) across the Mediterranean could be submitted next year, the International Maritime Organisation (IMO) said.

The IMO's head of air pollution and energy efficiency, Edmund Hughes, told S&P Global Platts' Bunker Fuel Conference in Amsterdam that there were discussions over a possible ECA in the Mediterranean for nitrous oxide (NOx) and sulphur emissions.

ECAs aim to cut emissions from ships near land in the hope of improving human health and mitigating pollution of the seas caused by shipping.

The onus for creating a proposal for a Mediterranean ECA would be on the 22 member states of the Barcelona Convention, he said.

The Italian and French environment ministries recently issued a joint call for the introduction of an ECA in the Mediterranean, although Cyprus, Greece, and Malta have previously opposed the move. The Barcelona Convention holds its annual meeting in December.

US President Donald Trump's administration has expressed scepticism over a sulphur cap on emissions from ships to be imposed by the IMO next year. From 1 January, 2020, ship's bunker fuel will be allowed to contain no more than 0.5pc sulphur, down from 3.5pc now.

The White House has advocated a slower implementation, so that "IMO 2020 occurs in a manner that is not harmful to consumers and the global economy". But Hughes told the conference the IMO's sulphur cap regulation would go ahead as planned on 1 January 2020.

Hughes said it was up to member states to determine how the IMO's new rules were enforced.

"The level of penalties is very much the prerogative of the port state's government," he said, adding that governments were reviewing their penalties to ensure they were tough enough financially to offset any commercial advantage from using non-compliant fuel oil.

The IMO last week agreed a standard format for reporting the availability of compliant fuel oil.


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07/05/25

IMO GHG pricing falls short on green methanol, ammonia

IMO GHG pricing falls short on green methanol, ammonia

New York, 7 May (Argus) — The International Maritime Organization's (IMO) proposed global greenhouse gas (GHG) pricing mechanism might not drive significant uptake of green methanol and green ammonia by 2035, given current market prices. Despite introducing penalties on high-emission fuels use and tradable surplus credits for low-emission fuels, the mechanism does not sufficiently close the cost gap for green alternatives. Under the system, starting in 2028 ship operators will face a two-tier penalty: $100/t CO₂e for emissions between the base and direct GHG intensity limit, and $380/t CO₂e for those exceeding the looser base limit. These thresholds will tighten annually through 2035. Ship operators can earn tradable credits for overcompliance when their GHG emissions fall below the direct limit. Assuming a surplus CO₂e credit value of $72/t — mirroring April 2025's average EU emissions trading system price — green ammonia would earn about $215/t in surplus credits in 2028 (see chart) . This barely offsets its April spot price of $2,830/t VLSFO equivalent in northwest Europe. Bio-methanol would receive about $175/t in credits, offering minimal relief on its $2,318/t April spot price. Currently, unsubsidized northwest Europe bio-LNG sits mid-range among bunker fuel options under IMO's emissions framework. While more expensive than HSFO, grey LNG, and B30 bioblends, the bio-LNG is cheaper than B100 (pure used cooking oil methyl ester), green ammonia, and bio-methanol. To become cost-competitive with unsubsidized bio-LNG — priced at $1,185/t in April 2025 — green ammonia and bio-methanol prices would need to fall by 57pc and 49pc, respectively, to around $1,220/t VLSFOe and $1,180/t VLSFOe by 2028. Unless green fuel prices drop significantly or fossil fuel prices rise, the IMO's structure alone provides insufficient economic incentive to accelerate green ammonia and bio-methanol adoption at scale. By Stefka Wechsler NW Europe, fuel prices plus IMO penalties and credits Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India, Saudi Arabia plan two Indian refineries


07/05/25
07/05/25

India, Saudi Arabia plan two Indian refineries

Mumbai, 7 May (Argus) — India and Saudi Arabia are to collaborate on the development of two integrated refinery and petrochemical plants in India. The plan was announced after Indian prime minister Narendra Modi met Saudi counterpart Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 pledged to invest $100bn in India in several sectors including energy and petrochemicals. No further details have been provided but the projects could be Indian state-run BPCL's planned facility in Andhra Pradesh and oil firm ONGC's refinery project in Gujarat, according to industry participants. Plans for a 1.2mn b/d refinery in Ratnagiri alongside the UAE's Adnoc have been abandoned because of logistical and land acquisition challenges, industry participants say. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU-Vorhaben gegen Russland könnten AdBlue-Preis erhöhen


07/05/25
07/05/25

EU-Vorhaben gegen Russland könnten AdBlue-Preis erhöhen

Hamburg, 7 May (Argus) — Die Europäische Kommission bereitet derzeit Gesetzesvorschläge vor, die den Import von russischem Gas verbieten würde. Zeitgleich plant die EU auch, zusätzliche Zölle auf russische Düngemittelimporte zu erheben, die bereits ab Sommer greifen könnten. Dies könnte die Produktionskosten von AdBlue sowohl für Primärproduzenten als auch für Auflöser erhöhen. Aus für russische Gasimporte in die EU Mit dem Verbot sollen alle russischen Gasimporte in die EU bis Ende 2027 eingestellt werden. Bereits geschlossene Spotverträge sollen nur noch bis Ende 2025 genehmigt sein. Dies geht aus einem Vorschlag vom 6. Mai hervor. Derzeit bezieht die EU noch knapp 19 % ihres Gasbedarfs aus Russland — und das obwohl bereits zum 1. Januar 2025 die Importe über die Ukraine beendet wurden. Deutschland hatte bereits zuvor den direkten Gasimport aus Russland im Jahr 2022 eingestellt. Der Vorschlag wird im Juni präsentiert, ein endgültiger Beschluss könnte jedoch erst später gefasst werden. Primärproduzenten von AdBlue in ganz Europa dürften sich dann mit höheren Gaspreisen konfrontiert sehen. Denn diese Hersteller produzieren ihren eigenen Harnstoff, den sie dann mit destilliertem Wasser zu AdBlue vermischen. Anfang Mai haben die TTF Gaspreise als Reaktion auf den Vorschlag etwas angezogen. Noch halten sie sich jedoch auf einem verhältnismäßig niedrigen Niveau, nachdem sie Ende April ihren niedrigsten Stand seit Juli 2024 erreichten. Bereits in der Vergangenheit haben europäische Hersteller ihre Produktion sowohl von Harnstoff als auch von AdBlue aufgrund von hohen Gaspreisen mehrfach unterbrochen. So hatten jüngst die SKW Stickstoffwerke Piesteritz eine ihrer zwei Ammoniakanlagen zwischen Mitte Januar und Ende Februar außer Betrieb genommen, nachdem die Gaspreise in Europa stark gestiegen waren. Lang erwartete Zölle auf russischen Harnstoff Am 14. Mai wird die EU darüber hinaus über zusätzliche Zölle auf russische Düngemittelimporte abstimmen. Der Gesetzesentwurf von Januar sieht vor, ab dem 1. Juli 2025 Zölle in Höhe von 40 €/t auf russische Düngemittel zu erheben. Die Zölle würden dann jährlich erhöht werden, bevor sie letztendlich zum 1. Juli 2028 auf 315 €/t steigen werden. AdBlue-Produzenten mit Löseanlagen beziehen ihren Harnstoff oftmals aus nicht-EU Ländern wie beispielsweise Russland, um von den dort niedrigeren Preisen zu profitieren. Dies erlaubt es Auflösern, AdBlue mit teils hohen Abschlägen zu Primärproduzenten anzubieten. Viele Händler verzichten öffentlich bereits seit dem Beginn des Krieges in der Ukraine freiwillig auf russische Harnstoffimporte. Tatsächlich beziehen einzelne Produzenten weiterhin russisches Produkt, welches teils über Drittländer importiert wird, um das Herkunftsland zu verschleiern. Sollte der Import von russischen Mengen durch die Zölle teurer und somit unprofitabel werden, könnten sich Auflöser dazu gezwungen sehen, entweder europäisches Produkt zu beziehen oder andere Quellen zu erschließen. Die geplante Einführung vom CO2-Grenzausgleichssystem zum 1. Januar 2026 könnte den Import aus nicht-EU Ländern allerdings ebenfalls verteuern. Unabhängig davon, ob Auflöser sich für europäischen oder nicht-europäischen Harnstoff entscheiden, dürfte dies entsprechend zu einem Anstieg ihrer Produktionskosten und somit der AdBlue-Großhandelspreise führen. Primärproduzenten befürworten deshalb die Einführung der Zölle. Von Natalie Müller Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

Spanish base oils under force majeure after power cut


07/05/25
07/05/25

Spanish base oils under force majeure after power cut

London, 7 May (Argus) — Spanish firm Repsol declared force majeure on its domestic base oil operations last week, the day after a massive power outage disrupted industrial infrastructure across the Iberian peninsula, the company told Argus today. Repsol has since resumed production at its Spanish base oil plants, but the force majeure remains in place. Its duration will depend on how successfully output can be ramped up and whether the base oil material meets quality specifications, the company said. The nationwide blackout disrupted operations at Repsol's 80,000 t/yr Group I unit in Puertollano and its 135,000 t/yr Group I and 630,000 t/yr Group II and III units in Cartagena. It shares the Cartagena units in a joint venture with South Korean producer SK Enmove. The power outage in Spain has further tightened already constrained global Group III supplies. Bahrain's state-owned Bapco is carrying out a 45-day turnaround at its 400,000 t/yr Group III unit in Sintra, and SK Enmove is poised to start maintenance at its 1.3mn t/yr Groiup III plant in Ulsan, South Korea in mid-May. Europe is a net importer of Group III product, with only 13pc of the region's estimated 7mn t/yr of nameplate base oil production capacity dedicated to the higher-quality grade. Tight supply, combined with seasonally high finished lubricant demand due to the spring oil change, is likely to continue to support Group III prices. By Christian Hotten & Gabriella Twining Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Asian airlines divert, cancel flights to avoid Pakistan


07/05/25
07/05/25

Asian airlines divert, cancel flights to avoid Pakistan

Singapore, 7 May (Argus) — Asian airlines have announced diversions or cancellation of flights to avoid the Pakistani airspace, against the backdrop of escalating tensions between India and Pakistan. Most regional airlines' flights have been avoiding the airspace above Pakistan and neighboring west India regions since 6 May, according to data from FlightRadar24. Just a handful of flights flew over Pakistan shortly after Pakistan's Airports Authority issued a safety notice to pilots, known as Notam, announcing the reopening of airspace over Lahore and Karachi on 7 May. Pakistan announced a 48-hour closure of its airspace on 6 May, suspending all domestic and international flights following India's attacks on nine targets in Pakistan . India's flag carrier Air India has cancelled all its flights to and from domestic stations including Jammu, Srinagar, Leh, Jodhpur, Amrisar, Bhuj, Jamnagar, Chandigarh and Rajkot, until at least noon of 7 May. Singapore Airlines Group's Singapore Airlines (SIA) and budget arm Scoot have also been avoiding Pakistani airspace and using alternative flight paths since 6 May, according to the group. Two major Taiwanese airlines also announced their protocols in response to the situation. Taiwan's Eva Air said on 7 May that flights to and from Europe region might be influenced because of the closure of Pakistan's airspace. Fellow Taiwanese airline China Airlines have also cancelled or diverted at least six flights between Taiwan and Europe since 6 May in response to the escalating tensions. Escalating conflicts could cause prolonged disruptions on flight schedules between the Middle East and Pakistan, as well as between Asia and Europe. This comes at a time when regional airlines are already negatively impacted by flight disruptions in the Middle East . Pakistan is a typical jet fuel importer in South Asia. The country has imported around 6,600 b/d jet fuel in the first quarter of 2025, according to Pakistan's Oil Companies Advisory Council (OCAC). Pakistan's state-owned PSO has a market share of 99pc of the country's jet fuel market. By Lu Yawen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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