Total mulling Grandpuits biorefinery conversion: Update

Spanish Market: Biofuels, Crude oil, Oil products
12/06/20

Updates comment from Total in final paragraph

French labour union CGT said Total is considering the conversion of its 93,000 b/d Grandpuits oil refinery to a biorefinery, and that a final decision will be made in the autumn.

At a meeting yesterday with the refinery's workers, Total's European refining and chemicals director Michel Charton raised the possible conversion of the plant to produce hydro-treated vegetable oil (HVO), similar to Total's former 160,000 b/d refinery at La Mede. Other uses could include carbon capture and storage (CCS), bio-plastics or the recycling of polypropylene.

Total is considering the future of Grandpuits because of long-standing problems with the pipeline that provides around 90pc of its crude feedstock. According to the CGT, Charton said the cost of repairing the 260km Pipeline d'Ile de France (Plif), which connects the plant with the Atlantic port of Le Havre, is an initial €250mn-300mn ($285mn-340mn).

Additionally the cost of a planned full turnaround at Grandpuits, planned for 2021, will inform Total's decision. The CGT said Charton also raised poor refining margins, large global stocks of oil products and the refinery's inland positioning that means it can only serve the domestic market.

Total said it would not comment on yesterday's meeting as it was private, but said that the "longer term future of Grandpuits rests on the viability of the pipeline."

By Adam Porter

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11/04/25

Renovabio: Usinas alertam distribuidoras inadimplentes

Sao Paulo, 11 April (Argus) — Grandes grupos do setor sucroalcooleiro começaram a alertar clientes de que poderão deixar de fornecer etanol a distribuidoras em desconformidade com a Política Nacional de Biocombustíveis (Renovabio) e normas da Agência Nacional do Petróleo, Gás Natural e Biocombustíveis (ANP). As informações foram confirmadas à Argus participantes do mercado, entre traders , corretores e funcionários da área de inteligência de mercado de companhias do setor de distribuição, que dizem que as comunicações começaram no fim de março. Segundo as fontes, que falaram sob a condição de anonimato, Atvos, Evolua e Raízen teriam começado a comunicar distribuidoras inadimplentes em suas metas de aposentadoria de créditos de descarbonização (Cbios) de que elas correm o risco de não poder mais adquirir etanol via contratos de fornecimento de longo prazo, regidos pela resolução nº 946/2023 (que modificou a antiga 67/2011) da ANP. Todas as companhias citadas foram procuradas pela Argus, mas decidiram não comentar sobre o assunto ou não responderam até o fechamento desta reportagem. A movimentação das usinas vem com o fim da carência de 90 dias para a entrada em vigor de pontos da nova lei que endurece punições contra distribuidoras inadimplentes (Lei nº 15.082/2024). A norma, apesar de sancionada no fim de 2024, ainda não foi regulamentada pelo governo federal. A lei determina que o descumprimento das metas individuais estabelecidas pelo Conselho Nacional de Política Energética (CNPE) constitua crime ambiental e leve à revogação da autorização para o exercício de atividade do distribuidor, além da cobrança de multa, que pode chegar a R$500 milhões. Ela também proíbe agentes da cadeia de comercializar com essas empresas nesta situação. Mas a aplicação imediata de parte das sanções enfrenta obstáculos legais. Em resposta a questionamentos feitos pela ANP, representantes da Procuradoria Federal junto à autarquia reforçaram entendimento de que a nova lei não deve retroagir. Isso significa que sanções mais duras só valeriam para metas não cumpridas a partir do ciclo de 2025, sendo aplicadas apenas em 2026. Apesar da limitação para o enforcement imediato por parte do regulador, os grandes grupos do setor de açúcar e etanol já começaram a se movimentar para cumprir com suas obrigações legais. Segundo fontes, uma primeira medida estaria relacionada ao fechamento dos próximos contratos de fornecimento, que vão de 1º de junho de um ano a 31 de maio do ano subsequente e vinculariam o fornecimento à situação das distribuidoras compradoras. Batalha jurídica Das 160 distribuidoras com metas estabelecidas no Renovabio, 60 iniciaram o ciclo de 2025 com menos Cbios aposentados do que deveriam. Destas, 13 já entraram na Justiça contra o programa e hoje mantêm alguma decisão liminar favorável às suas causas, segundo dados disponibilizados pela própria autarquia. Raízen e Evolua, líderes do setor sucroalcooleiro no Centro-Sul, são joint-ventures entre produtores e as distribuidoras Shell e Vibra ‒ ambas em conformidade com o Renovabio e críticas às distorções provocadas por distribuidoras regionais inadimplentes. Segundo dados da ANP, as 3 maiores distribuidoras do país têm sofrido com uma perda de participação de mercado nos últimos anos, saindo de um total de 66pc em 2022 para 62pc em 2024. Parte do movimento é justificado por elas pelo não atendimento de empresas concorrentes ao Renovabio e alegadas fraudes no cumprimento do mandato de mistura de biodiesel no diesel. Neste período de 2 anos, o share somado das 5 maiores inadimplentes em Cbios avançou de 5,5pc para 6,5pc. A Associação Nacional de Distribuidores de Combustíveis (ANDC), que representa distribuidoras regionais de pequeno e médio porte, protocolou, em fevereiro, petição à ANP denunciando a atitude de alguns fornecedores de biocombustíveis de recusar a venda de produto. O grupo argumenta que "o poder de polícia cabe ao poder público" e que a atitude das produtoras "fere a defesa da ordem econômica". Na ocasião, o órgão regulador respondeu que as listas divulgadas por ela com as distribuidoras que respondem a processos administrativos sancionadores "não podem ainda ser consideradas para fins de restrição no suprimento de combustíveis", já que a nova lei dos Cbios ainda não foi regulamentada. A ANDC reclama de "falta de participação social" nas discussões sobre a regulamentação do Renovabio e no próprio comitê governamental do programa. A associação diz que, depois dessas movimentações, não observou casos de produtores de biocombustíveis negando a venda de produto para distribuidoras. Por Amance Boutin e Marcos Mortari Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2025. Argus Media group . Todos os direitos reservados.

Opec+ overproducers cast doubt on compensation pledges

11/04/25

Opec+ overproducers cast doubt on compensation pledges

Output is set to rise in the coming months, with Kazakhstan and Iraq unlikely to live up to commitments to rein in production, writes Aydin Calik London, 11 April (Argus) — The Opec+ alliance's planned production increases in April and May should, in theory, be offset by pledges to compensate for past overproduction, particularly by Kazakhstan and Iraq. But there are few signs that either country will significantly reduce output in the coming weeks. If anything, Kazakhstan has signalled that production will continue at or near record levels of around 1.8mn b/d , putting it some 300,000 b/d above its Opec+ target. Opec+ members subject to targets cut output by 90,000 b/d to 33.93mn b/d in March, according to Argus estimates, but this was still 80,000 b/d above the group's collective crude production target of 33.85mn b/d. The decision by a core group of eight Opec+ members to accelerate the return of 2.2mn b/d of production cuts is a key reason for the recent slide in oil prices, alongside US tariff announcements. But Opec+ has stressed that its implied output increase of 137,000 b/d for April and another 411,000 b/d in May should be cancelled out by compensation-related cuts of 249,000 b/d for April and 309,000 b/d in May. In reality, this is unlikely to happen — the group's output is set to rise. Kazakhstan is the main reason why Opec+ has exceeded its target over the past two months. Kazakh production has surged following a major output increase at the Chevron-led Tengiz field in January — part of the field's future growth project (FGP). Tengiz production rose to a record 901,000 b/d in March, compared with previous levels of 600,000-660,000 b/d. The increase came several months earlier than anticipated, Kazakh officials say, and they have subsequently asked international oil companies that operate Tengiz and the Kashagan oil field to reduce output. But the answer has so far been negative. "Unfortunately, we have not yet agreed with them to the reduction, because for them it is a very challenging action, especially Chevron, [which] spent $50bn on the FGP project. They told us it's not possible for them to reduce [output]," deputy energy minister Alibek Zhamauov said this week. Kazakhstan will try to reduce production from smaller fields operated by domestic producers such as state-controlled Kazmunaigaz, Zhamauov said. But any decrease from these fields will not be enough to offset the rise from Tengiz. Target practice Iraq's output dipped below its 4mn b/d target in March at 3.98mn b/d, but this was still well above the country's effective target of 3.88mn b/d under its compensation plan. If Iraq's past production record is anything to go by, its output is unlikely to fall much further in the months ahead. While Kazakhstan and Iraq are unlikely to see much change in their production, members such as Saudi Arabia and the UAE are set to drive the alliance's output higher. The biggest increase is expected from Saudi Arabia, which will see its 8.98mn b/d target rise by 222,000 b/d by May, offset only marginally by its compensation plans. Riyadh has already signalled that it is preparing to increase production after state-controlled Saudi Aramco cut the official formula price of its May-loading crude exports. The largest cut was for buyers in Asia-Pacific, Saudi Arabia's biggest market. Formula prices can indicate intentions on output, as producers fine-tune how affordable their crude is for marginal refiners. The second-largest production increase is set to come from the UAE, which has long been eager to raise output . The UAE will see its target rise by 103,000 b/d by May, which will also only be offset marginally by its compensation plan. Russia is also scheduled to deliver a significant production increase over the next two months, with its target rising by 105,000 b/d. But all of this increase will be cancelled out if the country sticks to its compensation plan. Opec+ crude production mn b/d Mar Feb* Mar target† ± target Opec 9 21.22 21.36 21.23 -0.01 Non-Opec 9 12.71 12.66 12.62 0.09 Total Opec+ 18 33.93 34.02 33.85 0.08 *revised †includes additional cuts where applicable Opec wellhead production mn b/d Mar Feb* Mar target† ± target Saudi Arabia 8.98 8.93 8.98 0.00 Iraq 3.98 4.05 4.00 -0.02 Kuwait 2.42 2.43 2.41 0.01 UAE 2.91 2.93 2.91 -0.00 Algeria 0.92 0.92 0.91 0.01 Nigeria 1.49 1.58 1.50 -0.01 Congo (Brazzaville) 0.26 0.24 0.28 -0.02 Gabon 0.20 0.22 0.17 0.03 Equatorial Guinea 0.06 0.06 0.07 -0.01 Opec 9 21.22 21.36 21.23 -0.01 Iran 3.34 3.38 na na Libya 1.36 1.39 na na Venezuela 0.87 0.84 na na Total Opec 12^ 26.79 26.97 na na *revised †includes additional cuts where applicable ^Iran, Libya and Venezuela are exempt from production targets Non-Opec crude production mn b/d Mar Feb* Mar target† ± target Russia 8.97 8.96 8.98 -0.01 Oman 0.75 0.75 0.76 -0.01 Azerbaijan 0.47 0.47 0.55 -0.08 Kazakhstan 1.79 1.76 1.47 0.32 Malaysia 0.36 0.36 0.40 -0.04 Bahrain 0.18 0.18 0.20 -0.02 Brunei 0.10 0.09 0.08 0.02 Sudan 0.02 0.02 0.06 -0.04 South Sudan 0.07 0.07 0.12 -0.05 Total non-Opec 12.71 12.66 12.62 0.09 *revised †includes additional cuts where applicable Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Participants mostly support IMO GHG pricing mechanism

11/04/25

Participants mostly support IMO GHG pricing mechanism

London, 11 April (Argus) — International shipping organisations and market participants mostly support the global greenhouse gas (GHG) pricing mechanism approved today at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting, but some raised concerns. The structure approved by the IMO establishes that ships must reduce their fuel intensity by a "base target" of 4pc in 2028 against 93.3 gCO2e/MJ, the latter representing the average GHG fuel intensity value of international shipping in 2008. Emissions above this target will be charged at $380/tCO2e. The levels defined by the approved regulation are achievable, according to a market participant, who said the gradually increasing targets may allow the market to properly adapt to the transition. The International Chamber of Shipping (ICS) secretary general Guy Platten said the sector is already investing billions of dollars in 'green' technology, so the agreement gives certainty that sustainable marine fuels producers need. "The world's governments have now come forward with a comprehensive agreement which, although not perfect in every respect, we very much hope will be formally adopted later this year," he said. The European Shipowners (ECSA) secretary general Sotiris Raptis agreed the draft "is not perfect", but he celebrated progress towards a net zero emissions target, saying "it is a good starting point for further work" and pointing out that it may ensure the necessary investment in production of clean fuels. During a press briefing, IMO secretary general Arsenio Dominguez said ships operating in international waters will be obliged to comply with the regulations after adoption, despite the US' refusal to engage with the discussions . Adoption of the pricing mechanism will be discussed and voted on in October. Offering a counterview, the Global Maritime Forum said the agreed measures may not be strong enough to reach IMO targets. "The GHG intensity targets create uncertainty as to whether the strategy's emissions reduction checkpoints for 2030 and 2040 will be met," it said. "As currently designed, measures are unlikely to be sufficient to incentivise the rapid development of e-fuels such as e-ammonia or e-methanol , which will be needed in the long run due to their scalability and emission reduction potential." It said that failure to invest in these fuels would put at risk the target of at least 5pc zero- and near-zero emission fuel use by 2030 and the industry's entire 2050 net-zero goal. The World Shipping Council's vice president Bryan Wood-Thomas praised the agreement and said one benefit of it is the pricing system that is "more aggressive" if a vessel fails to meet the GHG intensity standard. "But you also have a fee system that gives investors more confidence in actual revenue [from using cleaner fuels]," he said. The Brazilian representative told Argus the fact that some countries thought the agreement was too ambitious while others indicated it was not ambitious enough show the group may have reached a balance that can be possible to comply. About the Brazilian position, the representative said the country "was never against an agreement". "We were only against some aspects of the agreement, and we think that the membership has heard our concerns, and that's why we ended up pretty happy with the results", he said. Brazil voted in favour of the agreement today. By Hussein Al-Khalisy, Madeleine Jenkins, Natália Coelho, and Gabriel Tassi Lara. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Q&A: IMO GHG scheme in EU ETS could be 'challenging'

11/04/25

Q&A: IMO GHG scheme in EU ETS could be 'challenging'

London, 11 April (Argus) — Delegates have approved the global greenhouse gas (GHG) pricing mechanism proposal at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting. Argus Media spoke to ministerial adviser and Finland's head representative at the IMO delegation talks, Anita Irmeli, on the sidelines of the London MEPC meeting. What is your initial reaction to the text? We are happy and satisfied about the content of the agreed text, so far. But we need to be careful. This week, all member states were able to vote. But in October, when adaption will take place, only those states which are parties to Marpol Annex VI will be able to vote if indeed a vote is called for, and that changes the situation a little bit. Here when we were voting, a minority was enough — 40 votes. But if or when we vote in October, then we need two thirds of those party to Marpol Annex VI to be in favour of the text. Will enthusiasm for the decision today remain by October? I'm pretty sure it will. But you never know what will happen between now and and the next six months. What is the effect of the decision on FuelEU Maritime and the EU ETS? Both FuelEU Maritime and the EU ETS have a review clause. This review clause states that if we are ambitious enough at the IMO, then the EU can review or amend the regulation. So of course, it is very important that we first consider if the approved Marpol amendments are ambitious enough to meet EU standards. Only after that evaluation, which won't be until well after October, can we consider these possible changes. Do you think the EU will be able to adopt these the text as it stands today? My personal view is that we can perhaps incorporate this text under FuelEU Maritime, but it may be more challenging for the EU ETS, where shipping is now included. What was the impact of US President Donald Trump's letter on the proceedings? EU states were not impacted, but it's difficult to say what the impact was on other states. By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

IMO approves two-tier GHG pricing mechanism

11/04/25

IMO approves two-tier GHG pricing mechanism

London, 11 April (Argus) — Delegates have approved the global greenhouse gas (GHG) pricing mechanism proposal at the International Maritime Organization's (IMO) 83rd Marine Environment Protection Committee (MEPC) meeting, pending an adoption vote at the next MEPC in October. The proposal passed by a majority vote, with 63 nations in favor including EU states, the UK, China and India, and 16 members opposed, including Mideast Gulf states, Russia, and Venezuela. The US was absent from the MEPC 83 meeting, and 24 member states abstained. The proposal was accompanied by an amendment to implement the regulation, which was approved for circulation ahead of an anticipated adoption at the October MEPC. Approval was not unanimous, which is rare. If adoption is approved in October at a vote that will require a two-thirds majority, the maritime industry will become the first transport sector to implement internationally mandated targets to reduce GHG emissions. The text says ships must initially reduce their fuel intensity by a "base target" of 4pc in 2028 ( see table ) against 93.3 gCO2e/MJ, the latter representing the average GHG fuel intensity value of international shipping in 2008. This gradually tightens to 30pc by 2035. The text defines a "direct compliance target", that starts at 17pc for 2028 and grows to 43pc by 2035. The pricing mechanism establishes a levy for excessive emissions at $380 per tonne of CO2 equivalent (tCO2e) for ships compliant with the minimum 'base' target, called Tier 2. For ships in Tier 1 — those compliant with the base target but that still have emission levels higher than the direct compliance target — the price was set at $100/tCO2e. Over-compliant vessels will receive 'surplus units' equal to their positive compliance balance, expressed in tCO2e, valid for two years after emission. Ships then will be able to use the surplus units in the following reporting periods; transfer to other vessels as a credit; or voluntarily cancel as a mitigation contribution. IMO secretary general Arsenio Dominguez said while it would have been more preferable to have a unanimous outcome, this outcome is a good result nonetheless. "We work on consensus, not unanimity," he said. "We demonstrated that we will continue to work as an organization despite the concerns." Looking at the MEPC session in October, Dominguez said: "Different member states have different positions, and there is time for us to remain in the process and address those concerns, including those that were against and those that were expecting more." Dominguez said the regulation is set to come into force in 2027, with first revenues collected in 2028 of an estimated $11bn-13bn. Dominguez also said there is a clause within the regulation that ensures a review at least every five years. By Hussein Al-Khalisy, Natália Coelho, and Gabriel Tassi Lara IMO GHG reduction targets Year Base Target Direct Compliance Target 2028 4% 17% 2029 6% 19% 2030 8% 21% 2031 12% 25% 2032 17% 30% 2033 21% 34% 2034 26% 39% 2035 30% 43% Source: IMO Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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