Japanese shipbuilders tap decarbonisation potential

Spanish Market: Emissions, Fertilizers, LPG, Natural gas, Oil products
26/04/21

The global decarbonisation drive is prompting Japanese shipbuilders to speed up development of greener vessels in efforts to ride out a tough market and gain an edge over Chinese and South Korean rivals.

Japanese shipbuilder Tsuneishi Shipbuilding has agreed to a capital tie-up with rival shipbuilder Mitsui E&S Shipbuilding. Tsuneishi is expected to acquire a 49pc share in Mitsui E&S Shipbuilding by October after obtaining regulatory approval.

Tsuneishi said the capital tie-up is expected to enable it to jointly speed up development of next-generation ships using alternative fuels, as well as autonomous vessels. Tsuneishi recently developed an LNG-fuelled Kamsarmax bulk carrier.

The international shipping industry is working to reduce its greenhouse gas (GHG) emissions by at least 50pc by 2050 from 2008 levels, driving a fuel shift among global shipping firms and shipowners.

Japanese joint venture Nihon Shipyard last month completed development of an ammonia-fuelled very-large crude carrier, only a few months after the venture's January launch by shipbuilders Imabari Shipbuilding and Japan Marine United (JMU).

Japan aims to commercialise a zero-carbon emitting vessel by 2028 under a roadmap released last year to realise the global shipping industry's GHG reduction target. The transport ministry this month also began discussions to decarbonise its domestic shipping operations.

Japan's new GHG reduction pledge is also expected to offer new business opportunities for the shipbuilding industry. Japanese premier Yoshihide Suga last week announced a new 2030 commitment to reduce GHG emissions by 46pc from 2013 levels, compared with 26pc previously, prompting Japanese carbon dioxide (CO2) emitting-industries to further speed up decarbonisation efforts.

Shipbuilder JMU has agreed with Japanese wind power developer Venti Japan to discuss the possibility of developing a floating wind mill project offshore northwest Japan's Akita prefecture.

Shin Kurushima Sanoyas Shipbuilding has also obtained in-principle approval from Japanese classification society ClassNK for its newly-developed liquified CO2 transport vessel, aiming to tap growing demand for carbon capture and storage business opportunities. The company was launched earlier this year after Japanese shipbuilder Shin Kurushima Dockyard took over rival Sanoyas Shipbuilding.

By Rieko Suda

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03/01/25

Eni ready for FID on Mozambique’s Coral Norte FLNG

London, 3 January (Argus) — Italian energy firm Eni is ready to take a final investment decision (FID) on its planned 3.4mn t/yr Coral Norte floating liquefaction (FLNG) terminal in Mozambique, should the project receive authorisation from the country's government, the firm has told Argus . Eni said it expects the government's approval to be "imminent", although it did not provide a more detailed timeline. The firm said in June 2023 that it planned to start operations at the FLNG in the second half of 2027. Eni already operates Mozambique's 3.4mn t/yr Coral Sul FLNG, which started operations in late 2022 and is at present the country's only LNG terminal. Coral Norte is set to be installed 20km north of Coral Sul. There are also two onshore terminals planned for Mozambique — the TotalEnergies-led 13.1mn t/yr Mozambique LNG project and ExxonMobil's 18mn t/yr Rovuma LNG project. Both are located in the Cabo Delgado province and have been halted because of security concerns. TotalEnergies reached a financial close on their Mozambique project in 2019 and declared force majeure in 2021, though project partner Bharat Petroleum (BPCL) said in late October 2024 the force majeure could be lifted in January or February this year because of an improvement in the security situation. And ExxonMobil said in November last year it was planning to take FID on the Rovuma project at the start of 2026. By Cerys Edwards Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Abu Dhabi's Adnoc raises January sulphur price by $9/t

03/01/25

Abu Dhabi's Adnoc raises January sulphur price by $9/t

London, 3 January (Argus) — Abu Dhabi's state-owned Adnoc set its January official sulphur selling price (OSP) for the Indian subcontinent at $174/t fob Ruwais, up by $9/t from its December OSP of $165/t fob. Adnoc's January OSP implies a delivered price of $191-193/t cfr India, with the freight cost for a 40,000-45,000t shipment to the east coast of India having last been assessed at $17-19/t on 19 December. The announced OSP fob price has risen by $97/t in the space of a year, from $77/t fob Ruwais in January last year. By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brasil busca leilão de hidrovias e terminais portuários

03/01/25

Brasil busca leilão de hidrovias e terminais portuários

Sao Paulo, 3 January (Argus) — O governo federal planeja uma série de leilões de terminais portuários e hidrovias para 2025, totalizando R$8,5 bilhões. O Ministério de Portos e Aeroportos e a Agência Nacional de Transportes Aquaviários (Antaq) serão responsáveis pelos leilões, buscando parcerias público-privadas (PPPs) que aumentarão a eficiência e expandirão as opções de transporte do país. O Brasil espera realizar 21 leilões e uma concessão em 2025. Muitas áreas do país carecem de infraestrutura adequada para o transporte de grãos e fertilizantes e são altamente dependentes do transporte rodoviário para o fluxo de carga. Portos PAR14: O terminal do porto de Paranaguá, no Paraná, movimenta e armazena granéis vegetais sólidos, como soja, farelo de soja, açúcar, trigo e milho. O leilão está programado para o primeiro trimestre de 2025, com um investimento estimado de R$529,2 milhões e uma concessão de 35 anos. O terminal terá capacidade para movimentar 6,8 milhões de toneladas (t)/ano. PAR15: Esse outro terminal de Paranaguá se concentra na movimentação e armazenamento de granéis vegetais. O projeto prevê investimentos de R$293,2 milhões e terá capacidade para movimentar 4 milhões de t/ano. O período de concessão será de 35 anos e o leilão está programado para 21 de fevereiro. PAR25: Outro terminal em Paranaguá voltado para a movimentação e armazenamento de granéis vegetais. Com capacidade para movimentar 4,3 milhões de t/ano, espera-se que os investimentos cheguem a R$564,1 milhões. O terminal será concedido por 35 anos e o leilão está programado para o segundo trimestre. MCP01: Localizado no porto de Santana, no Amapá, movimenta granéis sólidos vegetais, especialmente madeira. O terminal foi objeto de um leilão realizado em 2018, mas nenhuma proposta foi apresentada e o projeto foi reavaliado. Um novo leilão está programado para o segundo trimestre, com investimentos esperados de R$84,6 milhões e um período de concessão de 25 anos. VDC29: Um terminal no porto de Vila do Conde, no Pará, com um investimento estimado de R$716 milhões. Terá capacidade para movimentar 7 milhões de t/ano, com foco na movimentação e armazenamento de granéis vegetais sólidos, especialmente soja e milho. O leilão está programado para o terceiro trimestre, com um prazo de concessão de 25 anos. POA26: No porto de Porto Alegre, no Rio Grande do Sul, será usado para movimentar e armazenar granéis sólidos vegetais e minerais. O período de concessão será de dez anos, com investimentos estimados em R$21,1 milhões. O leilão está programado para o terceiro trimestre. SSB01: O leilão desse terminal no porto de São Sebastião, em São Paulo, está programado para o quarto trimestre. O prazo da concessão será de 35 anos, com um investimento de R$544,8 milhões. Seu foco será a movimentação e o armazenamento de granéis sólidos vegetais e minerais, com uma capacidade estimada de 4,3 milhões de t/ano. IQI16: O terminal está localizado no porto do Itaqui, no Maranhão, com um leilão programado para o quarto trimestre. A área será dedicada ao armazenamento e movimentação de granéis minerais sólidos, especialmente fertilizantes. O período de concessão será de 25 anos, com um investimento estimado em R$63,9 milhões. Canal de acesso aos portos de Paranaguá e Antonina: O projeto de concessão da infraestrutura de acesso aquaviário aos portos do estado do Paraná é inédito no Brasil. O Capex é estimado em R$1,1 bilhão, com um prazo de concessão de 25 anos. O leilão está programado para o segundo trimestre. A concessão abrangerá as funções de administração portuária relacionadas à gestão da infraestrutura, expansão, manutenção e operação do canal de acesso aos portos do Paraná. Hidrovias Hidrovia do Rio Madeira: Importante para o transporte de grãos e combustíveis, tem uma extensão navegável de 1.075 km, ligando a cidade de Porto Velho, em Rondônia, a Itacoatiara, no Amazonas. A Hidrovia do Madeira movimentou mais de 10 milhões de t em 2023, mas pode movimentar mais de 25 milhões de t/ano, de acordo com a Antaq. Os termos do projeto de concessão ainda estão sendo desenvolvidos e o leilão está programado para o segundo trimestre, com um prazo de 10 a 20 anos. Hidrovia do Paraguai: A hidrovia é importante para o transporte de minério de ferro e soja. Tem 1.323 km de extensão e vai da cidade de Ponta Porã, em Mato Grosso do Sul, até a cidade de Cáceres, em Mato Grosso. A via movimentou mais de 7 milhões de t em 2023, com potencial para atingir mais de 25 milhões de t/ano, de acordo com a Antaq. A hidrovia também conecta o Brasil à Argentina, Uruguai e Paraguai. O modelo de leilão também está sendo desenvolvido e está programado para o quarto trimestre. O período de concessão seria de 10 a 20 anos. Por João Petrini Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2025. Argus Media group . Todos os direitos reservados.

Viewpoint: India bitumen demand growth prospects mixed

03/01/25

Viewpoint: India bitumen demand growth prospects mixed

Singapore, 3 January (Argus) — Prospects of India's 2025 bitumen consumption growth are mixed, as state governments' delayed disbursement of project funds are likely to persist and weigh on demand while the many incomplete projects could boost consumption. India is a net bitumen importer and the biggest consumer of Middle East origin bitumen, especially from Iran. India's bitumen consumption had touched record highs in 2022 and 2023 and surpassed 8mn t/yr, despite prolonged payment delays, as importers had offered atypically longer credit terms to road contractors. All importers and traders are "struggling with payment recovery", an Indian importer said. Many contractors are demanding credit as several state governments have not released funds, the importer added. "Demand is not bad, but it really depends on funding. Demand won't increase by a lot [next year], but it should be quite stable [to 2024]." High inventory pressure forced importers to offer atypically bigger discounts to liquidate cargoes, which squeezed their profit margins, especially as import costs increased given a supply crunch in Iran. But there is no dearth of projects as many were delayed because of funding constrains, importers said. Some state-controlled refiners anticipate consumption to grow next year, albeit marginally. Refiners were previously forced to offer larger discounts against listed values to attract more customers, which weighed on their profit margins this year. This could continue into 2025 would ultimately pressure refiners to reduce bitumen output and increase production of other higher valued oil products. Indian refiners typically produce around 5mn t/yr, which accounts for around 55-60pc of total bitumen consumption. "We are only expecting a 3-4pc increase in demand on year as no new major road projects have been announced, so it is hard to see a larger growth," a source close to a state-refiner said. "But imports will increase if we reduce production, given growth will still be in [the] positive. So next year will not be that fantastic in comparison and there would not be any capacity augmentation for bitumen." This indicates that the central government's expectation that Indian bitumen consumption will rise by 14pc on the year to 10mn t during the ongoing financial year ending March 2025 could be at risk. Limited Middle East exports Vacuum bottom feedstock supply has been erratic in Iran, and feedstock transportation from national refineries to private bitumen producers has also been delayed this year, which market participants expect to persist in the coming year. This will limit feedstock availability and in turn bitumen output, increasing export cost especially for higher priced VG40 grade, which is imported by India. Tight supply has also increased congestions at the Bandar Abbas port, forcing vessel owners and importers to incur higher demurrage, increasing costs and weighing on import appetite. There are also fears that the new Trump administration may impose more sanctions and other political measures on Iran next year, further clouding the export outlook. Iranian central bank's recent announcement to phase out the Nima foreign exchange platform has increased uncertainty on the rials' value against the US dollar as importers and exporters will now have to trade based on mutually agreed exchange rates, with the free market rate still depressed. Meanwhile, Baghdad's recent directive to stop oil and other oil products from entering Iran, unless the exports are licensed by state-owned Somo, could also limit drummed bitumen exports as bitumen producers do not typically possess a Somo licence. Iraqi drums are generally transshipped out of Bandar Abbas. The recent upgrade of Bahrain's state-owned Sitra refinery to 380,000 b/d from 267,000 b/d will primarily boost middle distillate and naphtha output, weighing on bitumen production. Middle East cargoes are also typically exported to southeast and east Asia during low demand periods in India. Seaborne prices in Asia rose to multi-year highs in 2022 and import appetite for relatively cheaper Middle East-origin bulk cargoes increased, which continued in 2023. Appetite from Asia this year was mostly from China and Vietnam, as other buyers preferred Asia-origin cargoes because of compatible specifications and proximity. "The Middle East-Asia arbitrage is closed, and we will see very little-to-no cargoes from the UAE to Asia," a southeast Asia-based trader said. This is because Middle East-origin cargo cfr prices are not likely to be competitive to Asian cargoes, with supply and loading constraints in Iran adding to the uncertainties. By Maedeh Mazinani, Sathya Narayanan and Chloe Choo Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: Road auctions may buoy Brazil asphalt demand

02/01/25

Viewpoint: Road auctions may buoy Brazil asphalt demand

Sao Paulo, 2 January (Argus) — Demand for asphalt in Brazil is expected to remain elevated in 2025, boosted by a number of highway projects planned to be tendered this year. The Ministry of Transportation expects to seek tenders in 15 auctions this year . Overall, the Brazilian Association of Highway Concessionaires looks for 3,000km worth of roadway projects to be awarded at the federal level, along with another 4,000km at the state level. That is up from 10 auctions for projects covering 4,000km of paving work at the federal and state level last year. This anticipation of such an active paving year is upending the conventional wisdom that a year without elections means less asphalt demand. Typically, paving work on public streets and highways is more concentrated during election years, when mayors and governors focus their public budgets on infrastructure work to appease voters. President Luiz Inacio Lula da Silva's administration has asked lawmakers to allocate R$12.8bn for the National Department of Transportation Infrastructure in 2025, up by nearly R$240mn from the amount approved for 2024. The National Congress is expected to take up the annual budget law in February, after the parliamentary recess, and may make considerable changes. State-controlled Petrobras expects to sell around 2.7mn t of asphalt in 2025, or 1pc more than its 2024 projections. This past year was record-breaking for the Brazilian asphalt market, with more than 2.76mn tons of asphalt sold through October, according to oil regulator ANP. This was 10pc more than what was sold in the same period in 2023, in a year in which asphalt demand reached its highest level since 2014. Asphalt imports increased in 2024 as a result. Brazil's asphalt sales exceeded local production by an average of 18pc, boosting the purchase of imported material earlier in the year. US Gulf coast exports to Brazil reached an all-time high in October , according to data from Kpler. During the first 11 months of 2024, Brazil imported 300mn t of asphalt, also primarily from the US Gulf. By Julio Viana Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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