Marine fuel global weekly market update

Spanish Market: Biofuels, E-fuels, Fertilizers, Hydrogen, Natural gas, Oil products, Petrochemicals
07/08/23

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

New York, 4 August World Kinect bunker sales slump but profit is up US-based fuel supplier World Kinect, formerly known as World Fuel Services, boosted its profit in the second quarter from a year earlier, as its cost cutting outpaced falling sales.

Singapore, 4 August Methanex hikes China methanol contract price, cuts Asia Canada-based methanol producer Methanex has hiked its China Posted Contract Price (CPCP) for August, but lowered its Asian Posted Contract Price (APCP) for a fifth consecutive month.

London, 3 August Brooge Energy moves ahead with UAE green ammonia plant Cayman Islands-based Brooge Renewable Energy has completed a feasibility study on an export-focused green ammonia project in Abu Dhabi in the UAE.

London, 3 August Thyssenkrupp Uhde to collaborate on green ammonia FSPO German chemical engineering firm Thyssenkrupp Uhde will collaborate with a consortium to develop a green ammonia and hydrogen floating production and offloading vessel (FPSO) by 2027.

London, 3 August Italiy's Hysytech to develop Swedish bio-LNG project Italian energy engineering company Hysytech has been awarded a contract to upgrade a Swedish biogas site to produce liquefied biomethane (bio-LNG).

Houston, 3 August PBF 2Q margins down, first renewable fuel sales US independent refiner PBF's margins were more than halved in the second quarter, but overall profits were only marginally down from the same period in 2022.

London, 3 August Global LNG output rebounds in July Aggregate LNG output from producers rebounded in July, both on the year and the month, supported by quicker exports from the US and Australia.

London, 3 August S Korea's HHI receives order for two LNG carriers South Korean shipbuilder Hyundai Heavy Industries (HHI) has received a new order for two LNG carriers.

Brussels, 2 August EU consults on ETS implementation The European Commission has published further draft technical legislation for consultation, notably allowing for the inclusion of maritime and further aviation emissions in the bloc's emissions trading system (ETS), as well as an additional scheme covering road transport and building emissions.

New York, 1 August Fuel oil bunkering to linger despite new GHG rule The International Maritime Organisation (IMO)'s revised greenhouse gas (GHG) regulation for marine fuel will dent residual fuel oil demand, but the market could persist on demand from oil tanker and dry bulk vessel owners, and on production from decarbonised petroleum refineries.

Sao Paulo, 1 August Brazil's Bndes expands sustainable biofuels financing Brazil's state-owned development bank Bndes has expanded sustainability-linked financing available to the biofuel sector to R3.5bn ($730mn), after approving an R1.5bn boost in the loans to producers that agree to reduce their carbon footprints.

London, 31 July SK's Hanwha Ocean receives LNG carrier order South Korean shipbuilder Hanwha Ocean has received a construction order for an LNG carrier to be delivered before March 2027.

Conventional marine fuels

London, 4 August Ban squeezes Europe's HSFO supply The EU ban on Russian fuel oil imports has been a bigger problem for Europe than for Russia — unsurprising, considering Russian high-sulphur fuel oil (HSFO) accounted for a much bigger share of EU imports than of Russian exports.

London, 4 August Unit to restart at ExxonMobil's UK Fawley refinery ExxonMobil said it will return a unit online at its 270,000 b/d Fawley refinery in the UK this coming weekend after a turnaround.

London, 4 August Croatian VGO imports at record in July: Vortexa Croatia's vacuum gasoil (VGO) imports were 69,000t in July — the highest on record — and other major European consumers raised their receipts, according to data from Vortexa.

Kingston, 4 August Drought effects to cost Panama Canal $200mn The Panama Canal is projecting fiscal year 2024 revenues to be $200mn less than its initial $4.9bn estimate, its administrator Ricaurte Vasquez said.

London, 3 August Russian sanctions squeeze HSFO supplies in the EU The EU ban on Russian fuel oil imports has been a bigger problem for Europe than for Russia — unsurprising, considering Russian high-sulphur fuel oil (HSFO) accounted for a much bigger share of EU imports than of Russian exports.

London, 3 August Drop in fuel oil pressures ARA stocks Independently-held oil product stocks at the Amsterdam-Rotterdam-Antwerp (ARA) oil trading hub fell marginally in the week to 2 August, according to Insights Global, to 5.68mn t. A near 6pc dip in fuel oil inventories drove the downturn.

New York, 3 August Panama Canal delays boost clean rates to Chile, Peru The longest delays in at least two years at the Panama Canal's Panamax locks are causing clean tanker operators to charge premium rates to take US Gulf coast refined product shipments across the canal to South America's Pacific coast, or avoid canal transits altogether.

New York, 2 August Peru HSFO exports double on production spike Peru high-sulphur fuel oil (HSFO) exports nearly doubled in the first five months of the year on significantly higher production.

Singapore, 2 August Kuwaiti al-Zour August LSFO offers to weaken Kuwaiti state-owned KPC's low-sulphur fuel oil (LSFO) offers from its 615,000 al-Zour refinery are expected by market participants to slow this month because of reduced production.

London, 2 August Scorpio Tankers bullish despite drop in rates Scorpio Tankers' profits fell in the second quarter of 2023 on lower vessel earnings amid weaker summer demand, but the product tanker owner remains bullish about the market because of robust product demand and low inventories leading to record levels of seaborne exports.

New York, 1 August Clean tanker demand to rise ‘significantly': Ardmore A drawdown of European diesel stocks is expected to increase EU import demand for refined products, boosting ton-mile demand for product tankers in the process, according to tanker owner Ardmore Shipping.

New York, 1 August Norwegian Cruise reports first profit since 2019 US-based Norwegian Cruise Line (NCL) reported its first profit since 2019 as passenger demand continues to rise after the Covid-19 pandemic.

London, 1 August Gibraltar suspends port operations after oil spill Operations have been halted at the port of Gibraltar today following an oil spill.

Houston, 1 August US Gulf coast VGO-LSFO premium nears 2-month high US Gulf coast low sulphur VGO premiums to low sulphur fuel oil (LSFO) extended to $11.25/bl this week behind gains in both markets.

New York, 1 August Panama Canal delays expected to increase Wait times for vessels transiting Panamax and Neopanamax locks at the Panama Canal — the key route for US Gulf exports of LPG to Asia-Pacific — will "invariably increase" owing to additional water-conservation measures as drought conditions affect the waterway, according to the Panama Canal Authority (ACP).

Hamburg, 1 August Rising Rhine water levels lower freight rates Rising Rhine river water levels have allowed for an increase in loading capacity on barges and have reduced freight rates for journeys from the Amsterdam-Rotterdam-Antwerp (ARA) hub to inland destinations.

Shanghai, 31 July China's fuel oil output rises in January-June China produced 27.07mn t fuel oil in the first half of this year, up by 11pc on the year, according to National Bureau of Statistics (NBS) data.

London, 31 July Saudi Bahri shipping profits up in 2Q Saudi Arabian state-owned shipping firm Bahri's profits rose year on year in the second quarter, boosted by higher revenues in the crude and chemicals transportation sectors.

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22/11/24

Cop 29 goes into overtime on finance deadlock

Developing countries' discontent over the climate finance offer is meeting a muted response, writes Caroline Varin Baku, 22 November (Argus) — As the UN Cop 29 climate conference went into overtime, early reactions of consternation towards a new climate finance draft quickly gave way to studious silence, and some new numbers floated by developing nations. Parties are negotiating a new collective quantified goal — or climate finance target — building on the $100bn/yr that developed countries agreed to deliver to developing countries over 2020-25. The updated draft of the new finance goal text — the centrepiece of this Cop — proposes a figure of $250bn/yr by 2035, "from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources". This is the developed country parties' submission, the Cop 29 presidency acknowledged. Developing nations have been waiting for this number for months, and calling on developed economies to come up with one throughout this summit. They rejected the offer instantly. "The [$250bn/yr] offered by developed countries is a spit in the face of vulnerable nations like mine," Panama's lead climate negotiator, Juan Carlos Monterrey Gomez, said. Negotiating group the Alliance of Small Island States called it "a cap that will severely stagnate climate action efforts". The African Group of Negotiators and Colombia called it "unacceptable". This is far off the mark for developing economies, which earlier this week floated numbers of $440bn-600bn/yr for a public finance layer. They also called for $1.3 trillion/yr in total climate finance from developed countries, a sum which the new text instead calls for "all actors" to work toward. China reiterated on 21 November that "the voluntary support" of the global south was not to be counted towards the goal. A UN-mandated expert group indicated that the figure put forward by developed countries "is too low" and not consistent with the Paris Agreement goals. The new finance goal for developing countries, based on components that it covers, should commit developed countries to provide at least $300bn/yr by 2030 and $390bn/yr by 2035, it said. Brazil indicated that it is now pushing for these targets. The final amount for the new finance goal could potentially be around $300bn-350bn/yr, a Somalian delegate told Argus . A goal of $300bn/yr by 2035 is achievable with projected finance, further reforms and shareholder support at multilateral development banks (MDBs), and some growth in bilateral funding, climate think-tank WRI's finance programme director, Melanie Robinson, said. "Going beyond [$300bn/yr] would even be possible if a high proportion of developing countries' share of MDB finance is included," she added. All eyes turn to the EU Unsurprisingly, developed nations offered more muted responses. "It has been a significant lift over the past decade to meet the prior goal [of $100bn/yr]," a senior US official said, and the new goal will require even more ambition and "extraordinary reach". The US has just achieved its target to provide $11bn/yr in climate finance under the Paris climate agreement by 2024. But US climate funding is likely to dry up once president-elect Donald Trump, a climate sceptic who withdrew the US from the Paris accord during his first term, takes office. Norway simply told Argus that the delegation was "happier" with the text. The EU has stayed silent, with all eyes on the bloc as the US' influence wanes. The EU contributed €28.6bn ($29.8bn) in climate finance from public budgets in 2023. Developed nations expressed frustration towards the lack of progress on mitigation — actions to cut greenhouse gas emissions. Mentions of fossil fuels have been removed from new draft texts, including "transitioning away" from fossil fuels. This could still represent a potential red line for them. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Opinion: Bridging the divide

22/11/24

Opinion: Bridging the divide

Cop summits put the gap between developed and developing countries in stark relief and demand a strong moderator Baku, 22 November (Argus) — The UN's Cop climate summits always involve a high-stakes test of multilateralism. But the Cop 29 gathering that is crawling towards its conclusion in Baku this week has pushed this concept to its limit. The summit faced serious challenges even before it kicked off. Azerbaijan took on the presidency relatively late in the day and the country's president, Ilham Aliyev, irritated some delegates with an opening speech that lauded oil and gas as a "gift from God" and railed against "western fake news". His comments on European nations' Pacific island territories prompted France's energy minister to boycott the talks, while the Cop chief executive was caught on film trying to facilitate fossil fuel deals. And the broader geopolitical background for the gathering was, of course, "grim", as EU climate commissioner Wopke Hoekstra noted, even before delegates tackled the summit's key discussion topic — money. At the heart of this year's Cop is the need to agree a new climate finance goal — a hugely divisive subject at the best of times. Discussions start with countries' wealth, take into account historical responsibility for emissions, and often end up with accusations of neocolonialism and calls for reparations. Figuring out who pays for what is crucial to advancing any kind of meaningful energy transition — and is hence a regular Cop sticking point. Developing countries have long argued that they are not able to decarbonise or implement energy transition plans without adequate financing, and they are prepared to hold other issues hostage to achieve this. Equally, developed countries will not budge on finance until stronger emissions cuts are pledged. Cop summits throw the developed/developing world divide into stark relief as well as shine an unforgiving light on weak management and oversight of Cop debate — an event where every country has an equal vote and needs a strong moderator to bridge that deepening developed and developing world division. This year's summit falls between two much more heavily-hyped Cops, and next year's host Brazil has already taken centre stage, boosted by also holding the G20 presidency. Cop 29 president Mukhtar Babayev asked Brazil and 2021 host the UK to help ensure a balanced outcome, while a strong focus on climate at this week's G20 summit in Rio de Janeiro lent some support to discussions in Baku. More challenges loom. US president-elect Donald Trump has threatened to pull the US — the world's second-largest greenhouse gas emitter — out of the UN Paris Agreement for a second time, and there are fears that fellow G20 member Argentina might quit too. But the Cop process has dealt with some of these challenges before — it is built to withstand a term or two of an unsympathetic world leader, and any exits from the Paris accord could galvanise others to step up their policy commitments, several delegates in Baku suggest. And the issue overshadowing it all — and the reason nearly 200 countries still turn up each year — is not going away. The world has already warmed by around 1.3°C above pre-industrial levels and this year is set to smash last year's record as the hottest. Leaders from both developed and developing countries spoke of catastrophic floods, droughts, heatwaves and storms. It has become a truism, but when it comes to the tricky issue of money, the only thing more daunting than the cost of tackling climate change is the cost of ignoring it. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Brazil eyes $300bn/yr for climate finance goal

22/11/24

Cop: Brazil eyes $300bn/yr for climate finance goal

Baku, 22 November (Argus) — Brazil has set out a suggestion of "at least" $300bn/yr in climate finance to be provided by developed countries to developing nations. Brazilian representatives set out their proposal today, in response to a draft text on a new climate finance goal. Brazil's proposal of $300bn/yr in climate finance by 2030 and $390bn/yr by 2035 are in line with the recommendations of a UN-mandated expert group. Negotiations at Cop are continuing late into the evening of the official last day of the conference, with no final texts in sight. Discussions centre around the new collective quantified goal (NCQG) — the climate financing that will be made available to developing countries in the coming years to help them reduce emissions and adapt to the effects of climate change. The presidency draft text released this morning put the figure at $250bn/yr by 2035, with a call for "all actors" to work towards a stretch goal of $1.3tn/yr. Representatives of developing countries have reacted angrily to the figure put forward in the text, saying it is far too low. Brazil's proposal appears to call for all of the $300bn-$390bn to be made up of direct public financing, which could then mobilise further funding to reach the $1.3tn/yr. It was inspired by the findings of a UN report, Brazil said. The UN-backed independent high-level group on climate finance today said that the $250bn/yr figure was "too low," and recommended the higher $300bn-390bn/yr goal. Brazil's ask would be a significant step up in the required public financing. The $250bn/yr target includes direct public financing and mobilised private financing, and potentially includes contributions from both developed and developing countries. Wealthier developing countries have been hesitant to see their climate financing fall in this category, which they say should be made up exclusively of developed country money, in line with the Paris Agreement. But $300bn/yr would represent an increase in ambition, Brazil said, while the $250bn/yr called for in the draft text would be very similar to the $100bn/yr goal set in 2009, after taking into account inflation. Delegates at Cop look set to continue discussions into the night. A plenary session planned for late in the evening, which would have allowed parties to express their positions in public, has been cancelled, suggesting groups still have differences to hammer out. By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Blenders credit extension stalled in US Senate

22/11/24

Blenders credit extension stalled in US Senate

New York, 22 November (Argus) — A push for US lawmakers to extend various biofuel incentives before the end of the year has met resistance in the Senate. A growing coalition of biofuel and soybean groups has endorsed extending for one year a $1/USG federal tax credit for blenders of biomass-based diesel, which would otherwise expire after December and be replaced by the Inflation Reduction Act's carbon-intensity-based "45Z" credit. But lawmakers have various other priorities in the final weeks of this legislative session, and a staffer with the Democratic-controlled US Senate Finance Committee confirmed that prospects for a deal to extend biofuel tax credits are slim. "Republicans have showed very little interest in working with Democrats on much of anything related to tax," said Ryan Carey, chief communications advisor and deputy policy director at the Committee on Finance. "Their focus is primarily on the next Congress, when they're going to attempt to pass an extension of the first Trump tax law on a partisan basis." Another Senate office acknowledged on background that it is "unlikely" Congress will come to any major tax deal before the end of the year. Congress has other priorities for its brief lame duck session before president-elect Donald Trump begins his second term, including government funding, the federal debt limit, and a new farm bill. Tax policy could still fit into an end-of-year package, with some less controversial tax provisions and a bipartisan business tax proposal backed by Senate Finance Committee chair Ron Wyden (D-Oregon) still under discussion. But prolonging the biodiesel blenders credit — plus other biofuel credits benefiting sustainable aviation fuel and cellulosic fuels that some groups have also pushed to extend — appears to be a tougher lift. With Trump in the White House and Republicans set to control both chambers of Congress, Republicans are now preparing major tax policy legislation next year to prolong tax cuts passed during Trump's first term that are set to expire at the end of 2025. Lawmakers are likely to look at repealing some Inflation Reduction Act clean energy subsidies to help offset the cost of that proposal. Republicans on the House tax-writing committee this week requested public input on the 45Z credit specifically, a signal that they are at least open to modifications — and are already looking to tax policy next year. Biofuel subsidies are seen by analysts and lobbyists as less likely targets for repeal than other Inflation Reduction Act credits, given support for the industry among farm state lawmakers. But the request-for-information this week suggested that Republicans are wary of elements of the current 45Z credit and could support changes that benefit agribusiness. Even biofuel groups generally supportive of the 45Z credit's structure have been frustrated by President Joe Biden's administration, which has yet to issue guidance clarifying how it will calculate the carbon intensities of different fuels and feedstocks. By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Cop: Drafts point to trade-off on finance, fossil fuels

22/11/24

Cop: Drafts point to trade-off on finance, fossil fuels

Baku, 22 November (Argus) — The new draft on the climate finance goal from the UN Cop 29 climate summit presidency has developed nations contributing $250bn/yr by 2035, while language on fossil fuels has been dropped, indicating work towards a compromise on these two central issues. There is no mention of fossil fuels in either the new draft text on the global stocktake — which follows up the outcome of Cop 28 last year, including "transitioning away" from fossil fuels — or in the new draft for the climate finance goal. Developed countries wanted a reference to moving away from fossil fuels included, indicating that not having one would be a red line. The new draft text on the climate finance goal would mark a substantial compromise for developing countries, with non-profit WRI noting that this is "the bridging text". Parties are negotiating the next iteration of the $100bn/yr that developed countries agreed to deliver to developing nations over 2020-25 — known as the new collective quantified goal (NCQG). The new draft sets out a figure of $250bn/yr by 2035, "from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources". It also notes that developed countries will "take the lead". It sets out that the finance could come from multilateral development banks (MDBs) too. "It has been a significant lift over the past decade to meet the prior, smaller goal... $250bn will require even more ambition and extraordinary reach," a US official said. "This goal will need to be supported by ambitious bilateral action, MDB contributions and efforts to better mobilise private finance, among other critical factors," the official added. India had indicated earlier this week that the country was seeking around $600bn/yr for a public finance layer from developed countries. Developing countries had been asking for $1.3 trillion/yr in climate finance from developed countries, a sum which the new text instead calls for "all actors" to work toward. The draft text acknowledges the need to "enable the scaling up of financing… from all public and private sources" to that figure. On the contributor base — which developed countries have long pushed to expand — the text indicates that climate finance contributions from developing countries could supplement the finance goal. It is unclear how this language will land with developing nations. China yesterday reiterated that "the voluntary support" of the global south is not part of the goal. The global stocktake draft largely focuses on the initiatives set out by the Cop 29 presidency, on enhancing power grids and energy storage, though it does stress the "urgent need for accelerated implementation of domestic mitigation measures". It dropped a previous option, opposed by Saudi Arabia, that mentioned actions aimed at "transitioning away from fossil fuels". Mitigation, or cutting emissions, and climate finance have been the overriding issues at Cop 29. Developing countries have long said they cannot decarbonise or implement an energy transition without adequate finance. Developed countries are calling for substantially stronger global action on emissions reduction. By Georgia Gratton and Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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