Marine fuel global weekly market update
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
7 July IMO sets 2050 net zero target in revised GHG strategy The International Maritime Organisation adopted a revised greenhouse gas (GHG) emissions strategy today at the 80th meeting of its Marine Environment Protection Committee (MEPC 80) in London.
7 July IMO revised GHG strategy gets mixed reactions The International Maritime Organisation's (IMO) adoption of its revised greenhouse gas (GHG) strategy today has received mixed reactions from industry and nation states.
7 July Q&A: HVO blend in Swedish diesel could drop below 1pc The Swedish government proposed to cut the country's greenhouse gas (GHG) reduction quota mandate for gasoline and diesel to 6pc for 2024-26, from the previously legislated 30pc for diesel and 7.8pc for gasoline in 2024. This could see the share of HVO blended in the country's diesel pool fall below 1pc by volume, Swedish Bioenergy Association's (Svebio) program director and biofuel expert Tomas Ekbom told Argus.
7 July Taiwan's WHL sets elevated GHG shipping emissions goals Taiwan-based container shipping company Wan Hai Lines' (WHL) has set itself greenhouse gas (GHG) emissions targets for 2030 and 2050 above that currently mandated by the International Maritime Organisation (IMO).
7 July LNG Canada expansion faces electrification hurdle LNG Canada is weighing whether to move forward with expansion of its liquified natural gas (LNG) export facility in British Columbia, with electricity access a key obstacle.
7 July UK government faces new legal challenge on emissions Three environmental organisations have filed a request for a judicial review of the UK government's revised net zero strategy, which was released at the end of March.
6 July Elbehafen LNG undergoes brief maintenance after storm Germany's 2.7mn t/yr Elbehafen LNG terminal was set to undergo "several hours" of works today, as high winds damaged some of the terminal's equipment, state-owned terminal operator Deutsche Energy Terminal said today.
6 July IMO GHG outcome still unclear ahead closing plenary The International Maritime Organisation's (IMO) greenhouse gas (GHG) strategy is due to be adopted tomorrow, but progress made towards tougher targets and potential economic measures such as carbon levies remains unclear.
6 July Biofuel Express to sell Neste's HVO in Denmark Scandinavian biofuel distributer Biofuel Express will sell Neste's hydrotreated vegetable oil (HVO), called ‘My Renewable Diesel', in Denmark, according to an agreement between the two companies.
6 July Japan's Mitsui buys into Danish renewable energy firm Japanese trading firm Mitsui has acquired a stake in Danish Kasso MidCo, an affiliate of Danish renewable energy firm European Energy.
6 July BP invests in WasteFuels global biomethanol network BP has committed to invest $10mn in Californian sustainable fuels company WasteFuel to develop a global network of biomethanol plants.
7 July Taiwan's WHL sets elevated GHG shipping emissions goals Taiwan-based container shipping company Wan Hai Lines' (WHL) has set itself greenhouse gas (GHG) emissions targets for 2030 and 2050 above that currently mandated by the International Maritime Organisation (IMO).
6 July Japan's Mitsui buys into Danish renewable energy firm Japanese trading firm Mitsui has acquired a stake in Danish Kasso MidCo, an affiliate of Danish renewable energy firm European Energy.
5 July Kairos LNG bunker vessel grounded near Amsterdam The 7,500m³ Kairos LNG bunker vessel was grounded earlier today near Amsterdam in the Netherlands and has since returned to port, German shipping operator Bernhard Schulte Shipmanagement (BSM) confirmed.
5 July Orsted reach agreement for second methanol-powered SOV Danish energy company Orsted has reached an agreement with vessel operator Esvagt for the supply of a second methanol-powered service operational vessel (SOV), following the development of the world's first methanol-powered SOV by the same collaboration last year.
5 July Volvo to use biodiesel based fuel for ocean freight Swedish carmaker Volvo, in conjunction with freight companies Maersk, Kuehne and Nagel and DB Schenker, will receive material for the production of its cars from container ships using renewable biodiesel-based fuel.
5 July Shipper ONE more than halves CO2 emissions Japanese container shipping company Ocean Network Express (ONE) cut its CO2 emissions by 58.5pc to 9.39mn metric tonnes (t) in 2022 from a 2008 baseline, through lower fuel consumption, operational improvements, and the use of biofuel.
5 July Marathon files permit to up Detroit refinery rates US independent refiner Marathon Petroleum has filed for a permit to operate its 140,000 b/d Detroit, Michigan, refinery at higher utilization rates than are currently allowed under air pollution requirements.
5 July CNOOC's Ningbo supplies LNG bunker vessel Chinese state-controlled CNOOC's 6mn t/yr Ningbo LNG terminal filled an LNG bunkering vessel to operate in China's Ningbo-Zhoushan port on 11 June, the firm said.
4 July Dutch HBE bookings down on significant 2022 carry over Dutch oil companies booked 1.63mn of 2023 renewable fuel units (HBE) into the Energy for Transport Register (REV) by 1 July, down by around 61pc compared with the same time last year. But the number of HBEs carried over from the previous compliance year was 58pc higher than a year earlier.
4 July Marine fuel output location key for GHG: South Korea South Korea highlighted during International Maritime Organisation (IMO) discussions the need to consider the location of future alternative marine fuel production sites carefully in order to hit greenhouse gas (GHG) targets given that many states are reliant on imports.
3 July Mabanaft acquires Oiltanking Copenhagen terminal Integrated trading company Mabanaft has agreed to buy tank storage provider Oiltanking's liquid storage Copenhagen terminal, and is looking to provide additional capacity for low carbon fuels such as sustainable aviation fuel (SAF), advanced biofuels and hydrogen.
3 July Divisions continue to delay IMO GHG strategy The International Maritime Organisation (IMO) began the 80th meeting of the Marine Environment Protection Committee (MEPC 80) in London today, with member states deeply divided on emissions.
3 July South Korea's HSHI receives order for LNG carrier pair South Korean shipbuilder Hyundai Samho Heavy Industries (HSHI) has received an order for two LNG carriers.
3 July Ammonia specialist Amogy develops Singapore operations US-based ammonia fuel cell specialist Amogy will begin operations in Singapore, as the company expands its strategic focus on Asian markets.
Conventional marine fuels
7 July Brazil's gasoline, diesel imports rise in June Heated demand for gasoline in the domestic market drove the increase in Brazil's motor fuel imports in June.
7 July Mexico ups regular gasoline, diesel tax offsets Mexico's finance ministry this week increased the deduction on the excise tax (IEPS) for regular gasoline and diesel despite declines in US retail prices.
7 July Japan's Mizushima refinery halts operations after fire Japanese refiner Eneos has halted refining operations at its 150,000 b/d in its Mizushima-A refinery because of a fire that broke out on 5 July.
6 July Drought in Argentina hinders VLSFO demand Argentina very low-sulphur fuel oil (VLSFO) sales for the first quarter declined by 12pc because of continuous drought conditions that have curbed bunker demand.
6 July Greek finished diesel exports running out of road Greece may struggle to maintain its customary level of diesel exports to its Mediterranean neighbours unless it can find an alternative feedstock to semi-processed Russian gasoil.
6 July China's CNOOC completes first LNG bunkering reload Chinese state-controlled CNOOC hasreloaded and delivered LNG to a customer for the first time using its 30,000m³ LNG bunkering carrier Hai Yang Shi You 301.
6 July Diesel prompt premiums spike in northwest Europe Front-month Ice gasoil futures spiked at $18.50/t above the second-month contract at the close of trading on 5 July, marking the highest premium for prompt delivery since strike action shut most of France's refineries at the end of March. But traders are expecting a boost in supply later this month with fresh gasoil cargoes on the way to Europe from east of Suez.
6 July Venezuela ends diesel subsidy for most drivers Venezuela has lifted an almost full subsidy on diesel for most drivers and is charging 32¢/l ($1.21/USG), according to a notice from state-owned PdV to the association of retail stations.
6 July PetroPeru offers two fuel oil cargoes State-owned PetroPeru has issued a tender for two high-sulphur residual fuel oil (HSFO) cargoes totaling 210,000 bl for later this month.
6 July Singapore's light distillate stocks at seven-month low Singapore's onshore oil product inventories fell to a two-week low of 41.84mn bl in the week to 5 July, because of drops in light and middle distillate stocks.
6 July Japan's Cosmo sells HSFO on coker issues Japanese refiner Cosmo Oil has sold rare high-sulphur fuel oil (HSFO) cargoes, after coker unit issues at its 100,000 b/d Sakai refinery resulted in excess residuals from its Yokkaichi plant.
5 July Monjasa boosts Singapore bunker operations Denmark fuels trader and terminal operator Monjasa has expanded its Asia bunkering operations in Singapore.
5 July Fire at Bayernoil refinery to hit gasoil production A fire has curtailed production at the 86,000 b/d Neustadt refinery in Germany, part of the 207,000 b/d Bayernoil complex.
5 July Canada's west coast port workers on strike Port operations on Canada's west coast have slowed significantly as port workers have been on strike since 1 July.
5 July Kuwait's al-Zour launches final crude distillation unit The third and final crude distillation unit (CDU) of Kuwait's new 615,000 b/d al-Zour refinery has started, refinery operator Kipic said on 5 July.
5 July Biofuel Express to sell Neste's HVO in Denmark Scandinavian biofuel distributer Biofuel Express will sell Neste's hydrotreated vegetable oil (HVO), called ‘My Renewable Diesel', in Denmark, according to an agreement between the two companies.
4 July WAF diesel imports down as Indian volumes slow in June West African diesel cargo imports hit a four-month low in June as Indian supply dried up.
3 July Dutch refineries ramped up in April Oil products refining and trading activity in the Netherlands picked up significantly in April, with surging middle distillate refinery yields and an apparent hindrance to gasoline production caused by limited naphtha imports.
3 July Brazil's diesel, gasoline sales up in May Brazil's diesel consumption increased in May as the domestic economy strengthened, while gasoline sales jumped as favorable economics boosted its consumption against ethanol at the pump.
3 July Jodi: UK refinery output and demand fell again in May UK refinery output and oil demand fell on an annual basis in May, but the rate of contraction slowed compared with April amid a mixed economic picture.
3 July Kuwait' al-Zour refinery unit fire put out Kuwait's state-owned Kipic said that a fire that broke out earlier at Unit 12 of the 615,000 b/d al-Zour refinery was put out on 2 July with no injuries reported, according to state news agency Kuna.
Related news posts
South Korea to require use of SAF for flights from 2027
South Korea to require use of SAF for flights from 2027
Singapore, 30 August (Argus) — South Korea said it plans to require all international flights departing from its airports to use a mix of 1pc sustainable aviation fuel (SAF) from 2027. This comes as more countries are adopting SAF mandates in accordance with the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Singapore earlier this year announced a 1pc SAF blending mandate from 2026 , with plans to increase to 3-5pc by 2030, subject to global developments and wider SAF availability and adoption. The Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport announced the 'SAF Expansion Strategy' on 30 August, which includes a target for South Korea to capture 30pc of the global blended SAF export market. While not explicitly stated in the statement, some South Korean refineries expect co-processed SAF to be allowed to meet the country's mandate, sources said. This is important as the country already produces small quantities of SAF via co-processing at existing refining facilities, with three of South Korea's four domestic refineries planning to produce SAF through co-processing by the end of this year . Key strategies The ministries outlined three key strategies to achieve the SAF consumption target — gradual expansion of domestic SAF demand, ensuring a stable domestic supply capacity, and establishing a SAF-friendly legal and institutional environment. Airlines can already refuel with SAF at Korean airports, making South Korea the 20th country to do so as part of their plan to increase domestic SAF demand. The country had tested six flights using 2-4pc imported blended SAF between South Korea and Los Angeles since August 2023. An incentive system is being developed to encourage public and private adoption of SAF, with benefits such as preferential allocation of transport rights, reduced airport facility usage fees and the introduction of airline carbon mileage system for passengers and other benefits. A mid- to long-term roadmap for the gradual expansion of domestic SAF demand will be prepared in early 2025, the ministries said. The country's strategy to secure stable domestic supply capabilities includes considering investment support for domestic SAF production such as tax credits. South Korea's four domestic refineries already plan to invest 4 trillion won ($3bn) in renewable fuels, including SAF by 2030, the ministries said. The government estimates a Hydrotreated Esters and Fatty Acids (HEFA) SAF plant with a production capacity of up to 250,000 t/yr will require an investment of approximately W1 trillion. The supply-side strategy also aims to ease regulations on waste recycling to increase the availability of domestic feedstocks for SAF production. Another strategy is to diversify feedstock and SAF production technology options, with pre-testing expected later this year. The government plans to explore alternative feedstock like microalgae and production pathways such as e-SAF, with a view to developing supply chains. South Korea plans to establish a national standard, certification and testing method for SAF with preparation planned for December 2024. By Deborah Sun Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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.
Brazil's Bndes backs reforestation firm
Brazil's Bndes backs reforestation firm
Sao Paulo, 29 August (Argus) — Brazil's Bndes development bank approved R160mn ($28.7mn) in financing for reforestation company Mombak, which will use the funding for projects in Para state that will generate carbon offsets to be sold in the international market. The company has planted over 3mn native tree species in Para as part of its broader efforts to recover degraded areas in the Amazon basin where deforestation levels are highest. Mombak will receive R80mn from the Bndes' Climate fund and another R80mn from the banks' Finem line of credit. This is not Mobak's first project to sell carbon offsets. The company has a deal with Microsoft for 1.5mn offsets and with automobile racing firm McLaren. The funding is part of a partnership between Bndes and the environment ministry to reduce deforestation in an area known as the "deforestation arch" in the Amazon, with the goal of recovering 6mn hectares (ha) of degraded area in this region by 2030 and 18mn ha by 2050. This environmentally vulnerable region has received R1bn in financing since it was officially targeted at the Cop 28 UN climate talks. Mombak was founded in 2021 by former executives from Brazilian tech companies 99 and Nubank. The company has raised roughly R1bn in capital to invest in reforestation projects. It also received backing from the Canada Pension Plan Investment Board, Bain Capital, French insurance company AXA and the Rockefeller Foundation. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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