Marine fuel global weekly market update

Spanish Market: Biofuels, E-fuels, Fertilizers, Hydrogen, Natural gas, Oil products, Petrochemicals
26/05/23

A weekly Argus news digest of interest to the conventional and alternative marine fuel markets. To speak to our team about accessing the stories below and access to Argus Marine Fuels, please contact: marinefuels@argusmedia.com.

Alternative marine fuels

26 May French biodiesel imports continue to rise French biodiesel imports hit a new record in …

26 May Ecopetrol plans to hike H2 output by 2040 Colombia's state-controlled oil company Ecopetrol plans to produce ...

26 May Hydrogen-powered vessel enters NW Europe service Netherlands-based shipowner Future Proof Shipping (FPS) launched its hydrogen-powered, zero-emissions …

25 May TotalEnergies says HVO not for marine fuel sector The bunker sector is unlikely to adopt hydrotreated vegetable oil (HVO) in marine fuel blends, because …

25 May ExxonMobil to supply B30 in ARA ExxonMobil has signed an agreement to supply Hapag-Lloyd vessels with B30 marine fuel in the Amsterdam-Rotterdam-Antwerp (ARA) region.

25 May Spanish biodiesel feedstock patterns shift Demand patterns for biodiesel and hydrotreated vegetable oil (HVO) feedstocks in Spain are shifting as …

25 May Still waiting for zero-emission vessels: Study A recent report by governments trying to support zero-emissions ocean shipping found there were still no …

25 May Cruise giant Carnival picked LNG to cut particulates Cruise line operator Carnival Corporation said today that it has backed LNG over other alternative fuels as it …

25 May Singapore eyes growing role in alternative marine fuels Singapore is looking to play a bigger role in the alternative marine fuels industry, ahead of the …

25 May Charter practices reward fuel inefficiency: Report Underlying principles in most marine standard charter party terms reward fuel inefficiency …

25 May Cepsa expands waste feedstock sources for biofuels Spanish integrated energy firm Cepsa and Spanish association of co-operatives Agro-Alimentarias will work together to identify…

24 May China' methanol prices sink on weak demand, oversupply Chinese methanol prices have sunk to a more than two-year low, under pressure from persistently …

24 May Florida's Jaxport, Eagle LNG grow bunkering ambitions Higher LNG production capacity at US firm Eagle LNG's Maxville small-scale LNG production facility, alongside more …

24 May Spanish firm eyes green ammonia in Brazil's Piaui Spanish solar energy company Solatio plans to develop two renewable ammonia production plants in the northeast Brazilian state of Piaui that could together produce …

24 May Spanish biodiesel exports hit record high in 1Q Spanish biodiesel exports are rising further with shipments leaving Spain at a record pace in the first quarter of this year.

24 May Norwegian biofuels blending down in 2022 Blending of biofuels in Norway's transport sector fell by 55mn litres to …

24 May Dual-fuel engines to spur investment in 'greener' ships The implementation of dual-fuel engines in ships should encourage investment to build "greener vessels", according to …

24 May TotalEnergies buys 20pc of biogas start-up Ductor TotalEnergies has bought a 20pc stake in Finnish-based biogas start-up Ductor and will work with it to co-develop between 15 and 20 anaerobic digestion facilities to produce …

23 May BarMalGas to develop Germany's Rostock LNG German fuel distributor BarMalGas has taken over the Rostock LNG project and has scheduled construction to begin …

23 May NWE biofuels demand from scrubberless vessels to rise Vessels traveling in EU territorial waters without scrubbers next year may start using more biofuels …

23 May Spain's Ignis plans 850,000 t/yr green ammonia plant Spanish renewables firm Ignis plans to develop a €1bn ($1.08bn) green ammonia plant with capacity to produce …

23 May Trafigura sees potential for H2 derivatives in shipping Green hydrogen derivatives offer a more viable alternative to conventional bunkers than biofuels…

23 May Titan supplies LNG to ship in Kiel first Dutch small-scale LNG firm Titan completed the first ship-to-ship transfer in the German port of Kiel to a …

23 May Japan's MHI, Nihon Shipyard partner for LCO2 carrier Japanese engineering firm Mitsubishi Heavy Industries (MHI) and Nihon Shipyard have started a study for joint development of an ocean-going liquefied carbon dioxide (LCO2) carrier.

23 May China exports less biodiesel, UCO in April China's biodiesel exports fell by 17pc from 215,000t in March to …

22 May China's Dalian begins work on LNG-fuelled ship China's Dalian Shipbuilding Industry (DSIC) has begun work on a new dual-fuel container vessel, while another …

Conventional marine fuels

26 May Petrobras loses ground to diesel imports in April Diesel produced in Brazil ceded ground to imports in April, as …

26 May Singapore's gasoil imports poised to rebound in May Singapore's gasoil imports are on course to rebound in May from …

26 May Japan to end oil product subsidy in September Japan's trade and industry ministry (Meti) will end its oil product subsidy at the end of September, in consideration of …

26 May Fire extinguished on Shell bitumen barge A Shell-chartered bitumen barge caught fire in the early hours of Friday at …

25 May Singapore fuel oil stocks fall to over nine-month lows Singapore's onshore fuel oil stocks fell for a seventh consecutive week to over …

25 May Diesel demand sinks again in Italy Italian diesel and gasoil consumption slowed by 7pc month on month in …

25 May Nigerian diesel prices fall ahead of Dangote production Nigerian automotive gas oil (AGO) prices have fallen in recent days as the sooner than expected start-up of the 650,000 b/d Dangote refinery added to the …

26 May UK refinery output declined on lower demand in April Total refinery output in the UK fell by 17pc in April from March, according to …

23 May Monjasa bunker sales at record high Danish marine fuel trading and supply firm Monjasa's global bunker sales reached a record high …

23 May PetroPeru offers fuel oil tender for June State-owned PetroPeru will accept offers for one high-sulphur residual fuel oil (HSFO) cargo …

23 May Shipowner Navigator Gas' profits slip in 1Q New-York listed LPG Shipowner Navigator Gas' profits declined on the year in …

22 May Asian LSFO markets to ease further with rising inflows Singapore low-sulphur fuel oil (LSFO) margins rose to three-month highs last week on …

22 May Tight market supports HSFO margins in Europe Rising demand and tight supply are bolstering high-sulphur fuel oil margins in northwest Europe.

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20/12/24

US House votes to avert government shutdown

Washington, 20 December (Argus) — The US House of Representatives voted overwhelmingly today to extend funding for US federal government agencies and avoid a partial government shutdown. The Republican-controlled House, by a 366-34 vote, approved a measure that would maintain funding for the government at current levels until 14 March, deliver $10bn in agricultural aid and provide $100bn in disaster relief. Its passage was in doubt until voting began in the House at 5pm ET, following a chaotic intervention two days earlier by president-elect Donald Trump and his allies, including Tesla chief executive Elon Musk. The Democratic-led Senate is expected to approve the measure, and President Joe Biden has promised to sign it. Trump and Musk on 18 December derailed a spending deal House speaker Mike Johnson (R-Louisiana) had negotiated with Democratic lawmakers in the House and the Senate. Trump lobbied for a more streamlined version that would have suspended the ceiling on federal debt until 30 January 2027. But that version of the bill failed in the House on Thursday, because of opposition from 38 Republicans who bucked the preference of their party leader. Trump and Musk opposed the bipartisan spending package, contending that it would fund Democratic priorities, such as rebuilding the collapsed Francis Scott Key Bridge in Baltimore, Maryland. But doing away with that bill killed many other initiatives that his party members have advanced, including a provision authorizing year-round 15pc ethanol gasoline (E15) sales. Depending on the timing of the Senate action and the presidential signature, funding for US government agencies could lapse briefly beginning on Saturday. Key US agencies tasked with energy sector regulatory oversight and permitting activities have indicated that a brief shutdown would not significantly interfere with their operations. But the episode previews potential legislative disarray when Republicans take full control of Congress on 3 January and Trump returns to the White House on 20 January. Extending government funding beyond 14 March is likely to feature as an element in the Republicans' attempts to extend corporate tax cuts set to expire at the end of 2025, which is a key priority for Trump. The Republicans will have a 53-47 majority in the Senate next month, but their hold on the House will be even narrower than this year, at 219-215 initially. Trump has picked two House Republican members to serve in his administration, so the House Republican majority could briefly drop to 217-215 just as funding for the government would expire in mid-March. Congress will separately have to tackle the issue of raising the debt limit. Conservative advocacy group Economic Policy Innovation Center projects that US borrowing could reach that limit as early as June. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US government agencies set to shut down

20/12/24

US government agencies set to shut down

Washington, 20 December (Argus) — US federal agencies would have to furlough millions of workers and curtail permitting and regulatory services if no agreement is reached by Friday at 11:59pm ET to extend funding for the government. US president-elect Donald Trump and his allies — including Tesla chief executive Elon Musk — on 18 December upended a spending deal US House of Representatives speaker Mike Johnson (R-Louisiana) had negotiated with Democratic lawmakers in the House and the Senate. Trump endorsed an alternative proposal that Johnson put together, but that measure failed in a 174-235 vote late on Thursday, with 38 Republicans and nearly every Democrat voting against it. Trump via social media today indicated he would not push for a new funding bill. "If there is going to be a shutdown of government, let it begin now, under the Biden Administration, not after January 20th, under 'TRUMP,'" he wrote. There was little to indicate as of Friday morning that Trump, Republican congressional leadership and lawmakers were negotiating in earnest to avert a shutdown. The House Republican conference is due to meet in the afternoon to weigh its next steps. President Joe Biden said he would support the first funding deal that Johnson negotiated with the Democratic lawmakers. "Republicans are doing the bidding of their billionaire benefactors at the expense of hardworking Americans," the White House said. Any agreement on funding the government will have to secure the approval of the House Republican leadership and all factions of the Republican majority in the House, who appear to be looking for cues from Trump and Musk on how to proceed. Any deal would then require the support of at least 60 House Democrats to clear the procedural barriers, before it reaches the Senate where the Democrats hold a majority. The same factors will be in play even if the shutdown extends into early 2025. The Republicans are set to take the majority in the Senate when new Congress meets on 3 January. But their House majority will be even slimmer, at 219-215, requiring cooperation of Democratic lawmakers and the Biden administration. What happens when the government shuts down? Some agencies are able to continue operations in the event of a funding lapse. Air travel is unlikely to face immediate interruptions because key federal workers are considered "essential," but some work on permits, agricultural and import data, and regulations could be curtailed. The US Federal Energy Regulatory Commission has funding to get through a "short-term" shutdown but could be affected by a longer shutdown, chairman Willie Phillips said. The US Department of Energy, which includes the Energy Information Administration and its critical energy data provision services, expects "no disruptions" if funding lapses for 1-5 days, according to its shutdown plan. The US Environmental Protection Agency would furlough about 90pc of its nearly 17,000 staff in the event of a shutdown, according to a plan it updated earlier this year. The Interior Department's shutdown contingency plan calls for the Bureau of Land Management (BLM) to furlough 4,900 out of its nearly 10,000 employees. BLM, which is responsible for permitting oil, gas and coal activities on the US federal land, would cease nearly all functions other than law enforcement and emergency response. Interior's Bureau of Safety and Environmental Enforcement, which oversees offshore leases, would continue permitting activities but would furlough 60pc of its staff after its funding lapses. The US Bureau of Ocean Energy Management will keep processing some oil and gas exploration plans with an on-call group of 40 exempted personnel, such as time-sensitive actions related to ongoing work. The shutdown also affects multiple other regulatory and permitting functions across other government agencies, including the Departments of Agriculture, Transportation and Treasury. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Investment funds cut net long positions on Ice TTF

20/12/24

Investment funds cut net long positions on Ice TTF

London, 20 December (Argus) — Investment funds have cut their TTF gas net long positions on the Intercontinental Exchange (Ice) by nearly 50TWh from their historic peak at the end of November, while commercial undertakings' positions have moved strongly in the opposite direction. Investment funds' net long position had climbed steadily from 202TWh in the week ending 18 October to an all-time high of nearly 294TWh by 29 November. But in the two weeks since that point, their net position has dropped again by 48TWh ( see graph ), leaving their 246TWh net long position at the smallest since 8 November, according to Ice's latest commitments of traders report. However, only around 30pc of the decrease in the net long position came from closing long positions, with the large majority coming from opening up more shorts. Total long contracts were cut to 445TWh on 13 December from 461TWh on 29 November, but short contracts jumped to 200TWh from 167TWh in the same period. Such a large trimming of the net long position contributed to falling prices over the period — the benchmark Argus TTF front-month price fell from €48.45/MWh at the start of the month to €41.10/MWh at the close on 13 December. The front-quarter, front-season and front-year contracts all fell by roughly the same amount, as the entire price curve shifted down. While investment funds reduced their net long position over these two weeks, commercial undertakings — predominantly utilities — moved in the opposite direction, with their net short position falling to 37TWh from 102TWh. This was driven entirely by opening up more long contracts, which jumped to 947TWh from 877TWh, while shorts increased by just 5TWh between 29 November and 13 December to 984TWh. Commercial undertakings' total open interest therefore soared to 1.93PWh by the end of last week, triple the volume of investment funds' total open interest. Investment funds have in the past two weeks bought "risk reduction" contracts — generally used for hedging purposes — for the first time since May 2021. This suggests that some investment funds hold physical positions that they want to hedge their exposure to, although the volumes are small at around 300GWh for both shorts and longs. While utilities' positions in the futures markets are mostly risk-reducing to offset the risk held in physical positions, investment funds' positions are typically not risk-reducing because they are bets on the direction of prices. That said, utilities and other commercial undertakings such as large industrial buyers have increasingly set up trading desks that compete with hedge funds to capitalise on price trends and volatility in recent years. Risk reduction contracts account for around 69pc of commercial undertakings' open interest, meaning the other 31pc of contracts — amounting to 600TWh — were more speculative in nature. This 600TWh of speculative total open interest is only just below the 645TWh held by investment funds. By Brendan A'Hearn ICE TTF net positions TWh Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Viewpoint: EU at crossroad on H2 rules, competitiveness

20/12/24

Viewpoint: EU at crossroad on H2 rules, competitiveness

London, 20 December (Argus) — The new team of EU commissioners will enter 2025 bent on reversing the bloc's economic stagnation and the flight of industry to cheaper parts of the globe, which have been salient themes in 2024. Hydrogen industry participants will keenly monitor Brussels' choice of interventions, which promise to restart the sector's engine, but must avoid undermining faith in rules. Pledges from re-elected president Ursula von der Leyen to tackle overcomplexity and "structurally high energy prices" both concern hydrogen, and her notion of a pivotal moment for the EU rings true for the hydrogen market because of its connection to industry and because stubborn costs and underwhelming growth in 2024 undermined confidence. Frequent vows for urgency, simplicity and speed have worn thin, and the European Commission's latest reformist push could flatter to deceive. But multiple warning shots fired last year — including from the European Court of Auditors and respected former Italian prime minister and president of the European Central Bank Mario Draghi — pile on pressure to tweak hydrogen policy in 2025. The auditors' report urged a "reality check" and strategy review, cautioning Europe could spectacularly miss its targets, while Draghi stressed cost-efficient decarbonisation to protect European industry — a view shared by member states and energy-intensive companies. Von der Leyen's "Clean Industrial Deal", promised inside 100 days of her new term, could set the tone. But some, like chemicals firm BASF, have already voted with their feet by relocating jobs outside Europe. For hydrogen, the commission's easiest reform might be setting realistic 2030 targets to replace the 20mn t/yr renewable hydrogen supply, since industry deems it impossible and the commission's own notes predict a 3mn-6mn t/yr market. But this is hardly the most pressing change and would not help morale. A more radical move would be to somehow relax the renewable hydrogen definition, which many market participants consider overly burdensome. The bloc's biggest economy, Germany, put its weight behind changes in September, saying "reality has now shown these requirements were still too high". Berlin's volte-face could hand Brussels an easier climb down. But reopening that can of worms would dent the investment climate and distract from the low carbon hydrogen rules coming in 2025. All this makes radical change risky, but postponing certain aspects might be slightly more palatable. Brussels must also decide to maintain or soften its 2030 mandates for renewable hydrogen. Several countries and companies want openness to hydrogen from other low-carbon production pathways, which are backed in the US, Canada, the UK and others. Some have more fundamentally urged freedom to find the cheapest route towards cutting CO2. The first interpretation of the industry mandates from the Netherlands highlights the difficulty balancing mandates with fair competition versus competitors inside and outside the bloc. But loosening rules would frustrate first movers that took pains to comply. Moreover, some firms champion the EU's forte of creating demand via rules over subsidies that cannot last forever nor compete with the US. "Don't blink, because people will invest money against 2030 mandates," Spanish integrated Moeve's director and chief executive Maarten Wetselaar urged Brussels recently. EU policymakers accept they must cut hydrogen costs and are weighing options with member states. "The market has changed, and we are probably more technology neutral and more colour friendly than we used to be... this is realism," commission deputy director general for energy Mechthild Worsdorfer said in November. But Worsdorfer opposed "changing anything right now" after the "intense" debates to settle definitions. Commission and members will "find the right balance", Worsdorfer said, but hydrogen participants need clarity sooner rather than later. By Aidan Lea Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Shell and Prax call off deal on German refinery stake

20/12/24

Shell and Prax call off deal on German refinery stake

Hamburg, 20 December (Argus) — Shell's planned sale of its 37.5pc stake in Germany's 226,000 b/d Schwedt refinery to UK energy firm Prax has fallen through. "Both parties have taken the decision not to proceed with the transaction," Prax said, without elaborating. The refinery will continue to operate as normal, it said. Shell said the companies had reached the end of an agreed timeframe for closing the deal. It said it is still looking to sell the stake. The deal with Prax, which was announced a year ago , was initially due to be completed in the first half of 2024. Shell owns its stake in Schwedt through the PCK joint venture, which also includes Italy's Eni and Rosneft Deutschland, one of the Russian firm's two German subsidiaries. Shell previously attempted to sell its PCK share to Austria-based Alcmene in 2021 but that deal failed to complete after Rosneft Deutschland exercised its pre-emption rights later that year. Rosneft was unable to buy the stake after the German government placed its two German subsidiaries under trust administration in 2022 in the wake of Moscow's invasion of Ukraine, forcing Shell to seek an alternative buyer. In October, a court in Germany rejected a complaint by Rosneft Deutschland against Shell's plan to sell its PCK stake to Prax. By Svea Winter Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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