Latest Market News

Hengyuan's Malaysian refinery completes LRCCU repairs

  • Spanish Market: Oil products
  • 04/07/24

China-based independent Hengyuan Refining (HRC) has completed repairs at the long residue catalytic cracking unit (LRCCU) at its Malaysian 156,000 b/d Port Dickson refinery on 30 June.

The LRCCU was shut after a leakage at a carbon monoxide boiler on 19 June. It is a gasoline production unit and typically uses residual fuel as a feedstock to produce full-range catalytic cracked gasoline (CCG).

Inspection activities for HRC's hydrogen manufacturing unit and Euro4Mogas facilities were also complete.

The refinery has restarted the units and is "recovering to its normal operational level", said HRC.

The LRCCU issue had prompted HRC to offer rare and prompt straight-run fuel oil cargoes, and buy gasoline cargoes for June and July loading.

The Port Dickson refinery houses two crude distillation units, a LRCCU, two naphtha treaters, a merox plan, two reformers and a gasoil treatment plant. Approximately 85pc of its oil products are sold domestically in Malaysia.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

US services contract in June, signal broad weakening


03/07/24
03/07/24

US services contract in June, signal broad weakening

Houston, 3 July (Argus) — Economic activity in the US services sector contracted in June by the most since 2020 while a report earlier this week showed contraction in manufacturing, signaling a broad-based slowdown in the economy as the second quarter came to an end. The Institute for Supply Management's (ISM) services purchasing managers index (PMI) registered 48.8 in June, down from 53.8 in May. Readings above 50 signal expansion, while those below 50 signal contraction for the services economy. The June services PMI "indicates the overall economy is contracting for the first time in 17 months," ISM said. "The decrease in the composite index in June is a result of notably lower business activity, a contraction in new orders for the second time since May 2020 and continued contraction in employment." The business activity/production index fell to 49.6 from 61.2. New orders fell by 6.8 points to 47.3. Employment fell by 1 point to 46.1. Monthly PMI reports can be volatile, but a services PMI above 49 over time generally indicates an expansion of the overall economy. "Survey respondents report that in general, business is flat or lower, and although inflation is easing, some commodities have significantly higher costs," ISM said. The prices index fell by 1.8 points to 56.3, showing slowing but robust price gains. ISM's manufacturing PMI fell to 48.5 in June from 48.7 in May, ISM reported on 1 July. It was the third consecutive month of contraction and marked a 19th month of contraction in the past 20 months. Wednesday's weaker than expected ISM report, together with a Wednesday report showing initial jobless claims last week rose to their highest in two years, slightly increase the odds that the Federal Reserve may lower its target rate later this year after maintaining it at 23-year highs since last year in an effort to stem inflation. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Mexico economy showing 'timid growth': IMEF


03/07/24
03/07/24

Mexico economy showing 'timid growth': IMEF

Mexico City, 3 July (Argus) — Indicators of Mexico's non-manufacturing and manufacturing sectors suggested the economy recovered "some dynamism" in June, while maintaining the slow pace of growth of the second quarter, according to domestic financial association IMEF. "The trend suggested by the IMEF indicators suggest a moderate growth for the second quarter of the year," IMEF said. "The economy finds itself in an evident pause compared with the solid dynamism observed during 2022 and a large part of 2023." Manufacturing "stagnated" in the second quarter, it said. "It is very probable that economic activity will undergo additional slowdown in the second half of the year that will extend into 2025." IMEF's June manufacturing purchasing managers index (PMI) increased by 0.4 points to 49.5 points, still beneath the 50-point breakeven that shows contraction. This has been the third consecutive month of contraction. PMI adjusted to compensate for variations in company size was more positive, growing by 0.8 points to 51.2 in June, the group said. Manufacturing accounts for about a fifth of the Mexican economy. The non-manufacturing PMI, which covers the lion's share of the economy, rose by 0.6 points to 51 in June, marking a 29th month of expansion, IMEF said. Adjusted for company size, the headline services PMI rose by 0.9 to 5.18. Economic activity in Mexico continues to surprise downwards. After growth came in at an annual 1.6pc in the first quarter from a year earlier, the first data for April showed a monthly contraction of 0.6pc, IMEF said. Headwinds and tailwinds IMEF representatives highlighted growing market uncertainty following the Mexican election and ahead of the US presidential election in November. On the upside, said IMEF, Mexico should benefit from continued strength in the US economy, adding the incoming administration looks to bring down the current fiscal deficit, which is equal to 5.9pc of GDP. It will not reach the government's 3pc target for the budget coming out in November, but progress is expected with next year's budget and moving forward. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Oman's Duqm refinery on track to run above capacity


03/07/24
03/07/24

Oman's Duqm refinery on track to run above capacity

Dubai, 3 July (Argus) — Oman's 230,000 b/d Duqm refinery is looking to operate at 10pc above nameplate capacity and is considering diversifying its product portfolio, according to its operator. Omani-Kuwaiti joint venture OQ8's chief executive David Bird told Argus the capacity expansion would be pursued in the near term, with some already opening up in coking and hydrocracker units. The 10pc crude capacity increase is "my COO's [key performance indicator] for this year and I think we all have very high confidence that we'll be able to sweat the assets further," Bird said. "We may even look at intermediate feedstocks and bring in VGOs and residues in order to load up these two conversion units." The $9bn refinery, which hit capacity in February, uses feedstock comprised of 65pc Kuwaiti crude and 35pc Omani crude. Bird said Duqm may add new products to its existing, middle distillates-focused, output of jet fuel, gasoil, naphtha and LPG. "We are looking at structuring, doing something with naphtha," he said. "We are evaluating either reformate or gasoline, which have already gone through feasibility and are now under stage-gate review to decide if we should pursue those investment decisions." Bird also pointed to possibilities in base oils, which he said will be needed "as long as things are moving." "The Middle East has a unique opportunity to capitalize on Group I and Group III base oils," he said, noting Duqm's proximity to growing demand markets in Africa. "If Duqm was to look at expanding capacity, which definitely would still be in middle-distillate oriented space, we would talk about another hydrocracker that might be orientated towards base oil," Bird said. Oman is also developing a petrochemical complex with Saudi Arabia's Sabic and Kuwaiti state-owned KPI, which will use some of the Duqm refinery's production as feedstock. Feasibility for the project has concluded and has been "intimately evaluated" along with a naphtha upgrade, and Bird described them as "very complimentary." Close eye on Europe Bird said that while there is a "huge thirst of our products right at our doorstep", Duqm cargoes are finding their way to destinations that were not previously envisaged. Around 45pc of Duqm's diesel goes to east Africa, but loadings for Europe have begun more recently. Duqm can make European grade winter-specification diesel and is on track to capitalise on demand during the switch from summer grade this year. "When it comes to winter-spec diesel, if the arbitrage opens we can supply that competitively versus anyone else," Bird said. "So we always have an eye on Europe but we're also going to make sure that we are active in markets that are closer to home." By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Venezuela's Maduro open to talks with the US


02/07/24
02/07/24

Venezuela's Maduro open to talks with the US

Caracas, 2 July (Argus) — Venezuelan leader Nicolas Maduro plans to talk with US envoys on Wednesday to discuss allowing the South American country to increase oil exports in exchange for free and fair elections, he said late on Monday. But Maduro's call for dialogue comes less than a month before the 28 July election in which polls show him up to 40 percentage points behind his main challenger. It is also after the US rescinded a six-month reprieve on sanctions in April, accusing Venezuela of violating a commitment to hold a fair vote. Maduro said that the US had sought dialogue with him "for two months in a row", and, "after thinking about it, I have accepted". The head of the pro-Maduro assembly elected in 2020, Jorge Rodriguez, will represent him in the talks, Maduro said. The US State Department declined to directly confirm Maduro's statement but said that the US welcomed "dialogue in good faith, and we support the Venezuelan people's desire for competitive and inclusive elections on July 28." The US ties sanctions relief to Maduro's observing the 2023 Barbados agreement with the Venezuelan opposition, which promised to hold a competitive presidential election. The US in April reimposed sanctions against Venezuela because the Maduro government did not allow the main opposition contender, Maria Corina Machado, to run for president. Former Venezuelan diplomat Edmundo Gonzalez is the sole presidential candidate representing the opposition Unitary Platform. "We are clear-eyed that democratic change will not be easy, and certainly requires a serious commitment," the US State Department said. "This is something that we will continue to focus on when we will engage in dialogue with with a broad range of Venezuelan actors." Venezuela in recent weeks has barred an additional 10 city mayors from running for office for 15 years after they expressed support for Gonzalez, according to the CNE electoral authority and the comptroller general's office. During the first six months of 2024 Maduro has arrested 39 people connected to Gonzalez's campaign, the last one as recently as 30 June, a campaign source told Argus, using figures from Venezuelan non-governmental organizations. Police over the weekend also detained Machado for several hours while leaving a rally for Gonzalez. Venezuela's oil output increased by around 4pc in May to 911,700 b/d from 878,000 b/d in April as drilling campaigns showed results after three months of flat production, according to the oil ministry. But US sanctions are expected to keep a cap on much additional growth. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more