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PdV ships petroleum coke to Cuba

  • Spanish Market: Petroleum coke
  • 27/11/19

Venezuela's state-owned PdV is shipping petroleum coke to Cuba to reduce stockpiles of the oil byproduct at the 940,000 b/d CRP refining complex in Falcon state, according to multiple company officials.

The Malta-flagged bulk carrier Lagonda departed from the 305,000 b/d Cardon refinery's terminal on 24 November bound for Cienfuegos in Cuba carrying 26,000 metric tons of coke, the officials said.

A bill of lading dated 23 November seen by Argus values the shipment at $1.7mn with Cienfuegos as the final destination. The buyer is listed as Cuba's state-owned oil company Cupet.

PdV officials at the CRP complex said the cargo officially earmarked for delivery at Cienfuegos is intended to circumvent US sanctions against Venezuela and likely will be re-exported from Cuba either to Portugal, Italy, Spain or Turkey where PdV has shipped coke in previous years.

PdV plans to continue shipping coke to Cuba, the officials said. But it is unclear if these shipments will generate any cash revenue for PdV.

The coke shipment comes on the heels of a wave of PdV oil shipments to the island in October and early November, a move that enabled PdV to clear out a backlog of crude that the company was unable to market largely because of US sanctions.

PdV's shipments to Cuba are invoiced under longstanding bilateral agreements in place since 2000 between Caracas and Havana that mandate delivery of Venezuelan crude oil and oil products as payment for the deployment of Cuban advisers in a range of areas, including security.

In recent months, the US government has expanded its Venezuela sanctions onto Cuba, which is already the target of US economic sanctions for nearly six decades.

PdV has been trying for several years to reduce stocks of up to 15mn tons of coke accumulated mainly at its Jose oil processing and terminal complex in Anzoategui state. Smaller volumes of coke are also stockpiled at the CRP complex, the officials said.

At least three contracts signed since 2016 with operators in Italy and Turkey to refurbish coke handling systems and reduce stocks have made little if any progress, oil ministry and PdV officials acknowledge.

Coke, a byproduct of upgrading tar-like Orinoco oil into lighter crude, has accumulated quickly at Jose since a 2009 fire temporarily halted exports. Mammoth coke dunes at Jose have drawn criticism from environmentalists and nearby communities.

The CRP, which includes the Cardon refinery and nearby 635,000 b/d Amuay refinery, currently is operating at about 11pc of its nameplate capacity, the officials added.


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04/11/24

US railroad-labor contract talks heat up

US railroad-labor contract talks heat up

Washington, 4 November (Argus) — Negotiations to amend US rail labor contracts are becoming increasingly complicated as railroads split on negotiating tactics, potentially stalling operations at some carriers. The multiple negotiating pathways are reigniting fears of 2022, when some unions agreed to new contracts and others were on the verge of striking before President Joe Biden ordered them back to work . Shippers feared freight delays if strikes occurred. This round, two railroads are independently negotiating with unions. Most of the Class I railroads have traditionally used the National Carriers' Conference Committee to jointly negotiate contracts with the nation's largest labor unions. Eastern railroad CSX has already reached agreements with labor unions representing 17 job categories, which combined represent nearly 60pc of its unionized workforce. "This is the right approach for CSX," chief executive Joe Hinrichs said last month. Getting the national agreements on wages and benefits done will then let CSX work with employees on efficiency, safety and other issues, he said. Western carrier Union Pacific is taking a similar path. "We look forward to negotiating a deal that improves operating efficiency, helps provide the service we sold to our customers" and enables the railroad to thrive, it said. Some talks may be tough. The Brotherhood of Locomotive Engineers and Trainmen (BLET) and Union Pacific are in court over their most recent agreement. But BLET is meeting with Union Pacific chief executive Jim Vena next week, and with CSX officials the following week. Traditional group negotiation is also proceeding. BNSF, Norfolk Southern and the US arm of Canadian National last week initiated talks under the National Carriers' Conference Committee to amend existing contracts with 12 unions. Under the Railway Labor Act, rail labor contracts do not expire, a regulation designed to keep freight moving. But if railroads and unions again go months without reaching agreements, freight movements will again be at risk. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

CSX forecasts softer 4Q rail demand


17/10/24
17/10/24

CSX forecasts softer 4Q rail demand

Washington, 17 October (Argus) — Eastern US railroad said it expects that fourth quarter commodity market conditions will be mixed, limiting some freight demand. "Going into the fourth quarter, near-term conditions look modestly more challenging," chief executive Joe Hinrichs said on Wednesday. But the railroad expects "modest volume growth", supported by a few segments including chemicals and agriculture. But lower locomotive fuel prices and the impact of international coking coal prices, which are linked to export rail contracts, could drive a decrease in total revenue during the fourth quarter. He estimated that impact at roughly $200mn compared with last year's fourth quarter revenue of $3.68bn. CSX expects to see a carryover of year-over-year momentum in chemicals, agriculture and food, forest products and minerals, while metals and automotive will continue to be challenged. Demand for metals shipments is predicted to soften through the end of the year. Interest in shipments, particularly steel, is soft because of "sluggish demand, ample supply and low commodity prices", chief commercial officer Kevin Boone said. A weaker-than-anticipated automotive market contributed to the drop in metals demand. Consumer demand for automotive products has been reduced by high retail prices and interest rates, which has led to increased dealer inventories and slower production, Boone said. But CSX expects that an "interest rate easing cycle will help these markets normalize," Boone said. Metals and equipment volume fell in the second quarter, primarily because of lower steel and scrap shipments. Shipments of metals and equipment fell by 9pc to about 64,000 carloads compared with the same three months in 2023. Revenue dropped to $208mn, down by 8pc from a year earlier. Automotive volume dropped in the second quarter because of lower North American vehicle production, CSX said. Automotive traffic fell to 301,000 railcars loaded, down by 2pc from the third quarter 2023. Automotive revenue dropped to $98mn, down by 3pc compared with a year earlier. The outlook for fertilizer shipments is mixed following the third quarter as a decline in long-haul phosphates shipments persisted. Volume was negative, but the railroad was able to haul some profitable spot shipments. Shipments of fertilizer fell to 45,000 carloads in the third quarter, down by 4pc from a year earlier. Fertilizer revenue dropped to $118mn, down by 5pc from a year earlier. CSX expects growth in some market segments. Chemicals freight demand is expected to continue growing following "consistent, broad strength across plastics, industrial chemicals, LPGs, and waste. That demand helped boost chemicals volume by 9pc compared with a year earlier. Chemicals revenue rose to $727mn in the second quarter, up by 13pc compared with a year earlier. Agricultural and food products shipping demand is expected to continue growing, led by demand for grain and feed ingredients from the Midwest for supplies. That follows a third quarter when higher ethanol shipments, as well as increased overall volume helped raise volume by 9pc from the third quarter of 2023. Revenue from shipping agricultural and food products rose to $416mn, up by 11pc from a year earlier. CSX expects intermodal growth to continue with the trucking market falling, which would help drive more container freight to rail. Intermodal shipments are goods shipped in containers and trailers between different modes of transportation. The 1-3 October strike by the International Longshoremen's Association (ILA) did impact intermodal traffic, but the railroad was pleased with the "relatively quick short-term solution", Boone said. International intermodal volume during the third quarter rose because of higher east-coast port traffic. Domestic volume was mostly flat. Overall intermodal volume during the quarter increased by 3pc compared with a year earlier. But lower revenue per container helped reduce total intermodal revenue by 2pc to $509mn. CSX does not expect a major shift in coal volume through the end of the year as coal markets seem relatively stable and utility stockpiles are sufficient, Boone said. Rising natural gas prices are also unlikely to stimulate a "near-term step-up in volumes". Export coal demand has been consistent lately, particularly from buyers in Asia. But revenue per railcar for export coal could make a modest single digit drop, as contracts are tied to international coal benchmarks and prices fell earlier this year. Expport coal voume rose to 11.1mn short tons (10.1mn metric tonnes) in the second quarter on higher demand for thermal and coking coal. But domestic coal deliveries fell to 10.2mn st, down by 12pc from a year earlier, on lower deliveries to power plants and lake and river terminals. Rail coal volume fell by 2pc from a year earlier, while revenue dropped by 7pc to 553mn st. Total CSX profits rose to $894mn, up by 8pc compared with third quarter 2023. Revenue increased to $3.6bn, up by 1pc. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

USWC coke qualities shift on TMX


09/10/24
09/10/24

USWC coke qualities shift on TMX

Houston, 9 October (Argus) — The quality of some California-origin petroleum cokes has shifted in recent months as an influx of Canadian crude shipping via the TMX pipeline has adjusted refiner's crude slates and displaced imports from Latin America and the Middle East. Coke output at PBF Energy's 156,400 b/d Martinez, California, refinery has risen in sulphur content over recent months as the refinery has tripled imports of heavy Canadian crude, reportedly replacing some domestic crude that produces lower sulphur coke. This California crude is heard to now be moving to other refineries, including Phillips 66's 139,000 b/d Carson, California, refinery — typically a 4.5pc sulphur coke producer — where coke output has been trending lower in sulphur content. California's Canadian crude imports from January-July totalled 16.9mn bl, more than double the level imported in the same period last year, according to the latest US Energy Information Administration (EIA) data. Canadian crude accounted for 9pc of California's crude imports in the first seven months, up from 4pc in the same period the year prior. The state's imports of Canadian crude in June and July, the first two months of full TMX operations, were up nearly fivefold on the year. PBF's Martinez imported 676,000 bl of Canadian crude from June-July, more than quadruple the amount in the same two months of of 2023. Additionally, the sulphur content of Martinez's Canadian crude imports was significantly higher on the year, averaging 1.4pc compared with 0.6pc in June-July 2023. At the same time, the refiner also increased sour Ecuadorian crude imports by 95pc on the year. Martinez's crude imports had an average sulphur content of 1.3pc in June-July, up from 0.9pc a year prior. The refinery's coke was recently heard to be reaching more than 2.5pc sulphur compared with less than 2pc previously. On the other hand, Phillips 66's Carson refinery's coke quality was recently heard to be around or even below 3pc sulphur, down from its typical 4.5pc, even as it increased its Canadian crude imports to over 1mn bl in June-July, up from none in the same period last year. Carson's Canadian crude imports' sulphur content in June-July averaged 2.6pc, with the refinery's overall crude imports reaching an average of 1.4pc sulphur, down from 1.7pc in the same two months in 2023. Carson also did not import any sour Saudi Arabian crude in June-July, compared with 2.4mn bl in the same period last year, and it dropped sour Mexican-origin crude imports in the same two months by 26pc on the year. At the same time, Carson increased purchases of sweet Guyanese crude to 1.5mn bl — reaching a third of the refinery's crude imports — compared with none in June-July 2023. But Carson and Martinez's coke sulphur content may soon increase as TMX crude becomes more common on the US west coast, market participants said. This could leave Asian buyers searching for 2pc and 4.5pc sulphur cokes to substitute the material they had previously sourced from the US west coast. By Delaney Ramirez Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Kinder Morgan to shut Tampa terminals Tuesday


07/10/24
07/10/24

Kinder Morgan to shut Tampa terminals Tuesday

Houston, 7 October (Argus) — Kinder Morgan is planning to shut its terminals and fuel racks in Tampa, Florida, on Tuesday as the region prepares for Hurricane Milton to make landfall Wednesday evening . "We will continue to monitor the storm's path and make any adjustments as needed," Kinder Morgan said in a statement on Monday. Kinder operates the Port Sutton, Tampa Bay Stevedores and Tampaplex terminals in Tampa's Hillsborough Bay and the Port Manatee terminal further south in the Tampa Bay. The terminals handle a wide range of bulk products including fertilizers, scrap metal, petroleum coke and coal according to Kinder Morgan's website. Kinder's Tampa refined products terminal has 1.8mn bls of storage and is connected to the Central Florida Pipeline (CFPL) which transports gasoline, diesel, ethanol and jet fuel to Orlando, including to Orlando International Airport. The airport said today that it will cease operations the morning of 9 October in advance of the hurricane. By Nathan Risser Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Nis steps up bitumen, restarts PMB output at Pancevo


04/10/24
04/10/24

Nis steps up bitumen, restarts PMB output at Pancevo

London, 4 October (Argus) — Serbian refiner Nis has stepped up bitumen production and supply at its 110,000 b/d Pancevo refinery after taking delivery of a cargo of bitumen-rich Iraqi Kirkuk crude. A market participant said the Kirkuk cargo was shipped from a Mideast Gulf loading point. A political stand-off since March 2023 has meant northern Iraq crude cannot be supplied into the Mediterranean region via the pipeline from Kirkuk to Ceyhan, southeast Turkey. The switch to the bitumen-rich crude, after lighter grades had been run through Pancevo in recent months, has also allowed Nis to restart its polymer-modified bitumen (PMB) manufacturing plant at Pancevo this week. The higher quality grade, which is produced by adding polymers like styrene-butadiene-styrene (SBS) in the initially produced bitumen mix, is increasingly used on some road, highway and airport projects. The PMB plant had been shut since June because the lighter crudes feeding the refinery failed to yield the right specifications and quality of PMBs after mixing with SBS. Nis plans to run another bitumen-yielding Iraqi crude, Basrah Medium, along with Kirkuk this month, helping significantly boost bitumen production for supply into the country's domestic and export markets — mainly Romania and Bosnia-Herzegovina. The heavier crudes will yield very high-sulphur grades of petcoke, the market participant said. By Keyvan Hedvat Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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