Citgo charters products tanker from USGC to Aruba
Citgo, the US refining subsidiary of Venezuela state-owned oil company PdV, booked the tanker Star Kestrel today to carry a refined products cargo from the US Gulf coast, according to shipbrokers.
The 51,228 dwt Panamanian-flagged medium range tanker is scheduled to load in the next two days and will travel to the Caribbean island of Aruba, according to multiple shipbrokers. The deal was concluded at a premium rate of $650,000 lump sum, $150,000 above where Argus assesses the route.
Citgo leases a mothballed 280,000 b/d refinery and terminal on Aruba.
The booking was rare as Citgo has been largely absent from the US Gulf coast spot shipping market since the US imposed sanctions on its parent company on 28 January.
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Australia's Qantas records higher fuel costs in 2023-24
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.
India lifts curbs on use of sugarcane juice for ethanol
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.
Salvage teams to get access to leaking Red Sea tanker
Salvage teams to get access to leaking Red Sea tanker
Dubai, 29 August (Argus) — Yemen's Houthi rebels have agreed to allow salvage teams to reach a Suezmax tanker that is unmanned, on fire and leaking oil in the Red Sea after it was targeted by the militant group last week, Iran's mission to the UN said late Wednesday. Some countries asked for tugboats and rescuers to be able to access the area "with a temporary ceasefire", Iran's mission said. The Houthis have agreed to the request "given the humanitarian and environmental considerations", it said. The Greek-flagged Sounion was sailing from Iraq to Greece carrying a cargo of close to 1mn bl of Basrah Heavy crude when it was attacked on 21 August. Three projectiles were fired at the vessel, causing it to lose engine power. The crew comprising two Russian and 23 Filipino sailors were rescued soon after by EU member naval forces and evacuated to Djibouti, the nearest safe port of call. Houthi spokesman Mohamad Abdulsalam confirmed the comments from the Iranian mission, posting on social media platform X that the group had given permission for the Sounion to be towed "after numerous international parties especially European ones" had reached out to them on the issue. The move came just a day after the Pentagon said an attempt at salvaging the vessel had been thwarted after tugboats were warned away by the Houthis. "We are aware of a third party that attempted to sent two tugs to the vessel to help salvage, but they were warned away by the Houthis and threatened with being attacked, which again demonstrates their blatant disregard for not only human life, but also for the potential environmental catastrophe this presents," the Pentagon's press secretary, Pat Ryder, said on 27 August. The EU's naval mission in the region said the ship had been on fire since 23 August. No end in sight The targeting of the Sounion is the latest in a long line of Houthi attacks on commercial shipping in and around the Red Sea. The group said its attacks are in support of the Palestinians following Israel's offensive in Gaza. The Houthis claim to only attack vessels that are going to or from Israel, or ships that are Israeli owned. But many of the vessels that have been targeted since the campaign started in November last year have not had an obvious link to Israel, including the Sounion . Despite efforts by the international community to stop the attacks, the Houthis have reiterated that their campaign will continue until Israel ends its military offensive in Gaza. "The burning of the [ Sounion ] is an example of Yemen's seriousness in targeting any ship that violates the Yemeni decision to prevent any ship from crossing to the ports of occupied Palestine," Abdulsalam said on X. The "aim is to exert pressure on the Zionist enemy to stop its aggression in Gaza", he said. "All shipping companies linked to the Zionist enemy must realise that their ships will remain vulnerable to Yemeni strikes… until the aggression stops and the siege on Gaza is lifted." By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Sweden to up biofuel mandates again after slashing them
Sweden to up biofuel mandates again after slashing them
London, 28 August (Argus) — Sweden's government announced that the country will raise its greenhouse gas (GHG) reduction obligations to 10pc for gasoline and diesel from 6pc, with changes due to come into effect on 1 July next year according to Swedish bioenergy association Svebio. The country announced in May last year that it was planning to lower GHG reduction mandates for 2024-2026 to 6pc for both diesel and gasoline, from 30.5pc for diesel and 7.8pc for gasoline in 2023. The government at the time said this was because higher GHG reduction targets in Sweden, compared with the rest of the EU, were pushing diesel prices up at the pump. The biofuels industry in Sweden welcomed the new 10pc mandate, as it will support domestic demand for its fuels. The drop in Sweden's mandates to 6pc had a significant effect on domestic biofuels usage and wider biofuel prices in Europe, particularly hydrotreated vegetable oil (HVO). Because fatty acid methyl ester (Fame) biodiesel has a 7pc physical blend wall into diesel under the EU Fuel Quality Directive, Sweden relied on drop-in HVO to meet its high diesel mandates. As a result of the 2024 mandate cuts, HVO deliveries were down by 95pc on the year in June and total biofuels deliveries were down by 79pc in the same period, according to data from government data provider Statistics Sweden . Lower mandates in Sweden cut domestic HVO demand, redirecting supplies to the wider European market, pushing values down as a result. Prices for HVO Class II fob ARA range, made from used cooking oil, were down by $715.42/t year on year, or 31.5pc, on 27 August. Tomas Ekbom, programme director at Svebio, told Argus that Sweden's government understood it could not rely mainly on the electrification of the transport sector to meet targets and that biofuels had a larger role to play. He added that the government likely also considered that it would be too costly to pay for credits if, in the end, EU targets were missed. Sweden's government estimates that the country will meet its Effort Sharing Regulation commitments for 2030 — a binding emissions reduction target for domestic transport (excluding aviation), buildings, agriculture, small industry and waste of 50pc compared with 2005 levels — by implementing this new 10pc reduction obligation, as well as a new climate action plan. But the parliament previously abolished GHG reduction levels for 2027-2030, taking a wait and see approach. And ministers did not include any plans to scale up the mandated levels from 10pc. The re-cast Renewable Energy Directive requires a 14.5pc GHG reduction target, or 29pc share of renewables by energy content, for transport fuels by 2030. Sweden's new obligation will allow fuel suppliers to credit electricity from public charging stations towards meeting their emissions reduction obligations, but how this will work in practice remains unclear. Last year, battery electric vehicles were 5.75pc of Sweden's total passenger car fleet and plug-in hybrid electric vehicles were 5.37pc of the fleet, based on data from the EU's alternative fuels observatory. Sweden will also include a proposal in its 2025 budget to reduce fuel taxes to reduce impact on fuel prices at the pump. The gasoline tax will be reduced by 0.75 krona/litre ($0.07) next year while the diesel tax will be increased by 0.11 krona/litre ($0.01) — the EU minimum. By Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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