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Consortium makes progress on US NH3 bunker vessel

  • Spanish Market: Fertilizers
  • 20/09/24

A group of companies continue to make progress on developing a ship-to-ship ammonia bunkering vessel for the US east coast, targeting to begin commercial operations by 2030.

The consortium received in principle approval in August for their ammonia bunker vessel from US classification society the American Bureau of Shipping (ABS). The seven companies comprise Japanese trading house Sumitomo, ABS, Hong Kong-based shipping firm Fleet Management, American ship management company TOTE Services, Danish shipping firm AP Moller Maresk, Maresk's decarbonisation research institute Maersk Mc-Kinney Moller Center for Zero Carbon Shipping (MMMCZCS) and the US' Georgia Ports Authority. US marine engineering firm Vard Marine US also took part in barge design and engineering.

The bunker vessel is designed to be capable of supplying fuel ammonia to Norwegian shipping company Hoegh Autoliners' car carriers, as well as an ammonia-fuelled container vessels developed by MMMCZCS. This will be the first ammonia bunkering vessel in the US, Sumitomo said.

The partners expect to operate the ship on the east coast of the US such as Jacksonville port in Florida and Brunswick and Savannah ports in Georgia. These ports are increasingly receiving container ships and car carriers, with Sumitomo expecting demand for fuel ammonia for such vessels to grow in the future.

Sumitomo is in charge of building a supply chain of green or blue ammonia for bunkering. It now plans to buy blue ammonia from the US Gulf of Mexico region, without specifying volumes.

The company aims to enhance its carbon neutral marine fuel and ammonia bunkering businesses with the US project. It has also participated in an ammonia bunkering project in Singapore, aiming to commercialise it by the mid-2020s.


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23/09/24

Draught limits tighten on lower Mississippi River

Draught limits tighten on lower Mississippi River

Houston, 23 September (Argus) — The US Coast Guard (USGC) placed further restrictions on traffic on the lower Mississippi River as water levels continue to deteriorate. The USCG on 22 September announced that all northbound traffic cannot have draught deeper than 9.5ft from Tunica, Louisiana, to Greenville, Mississippi. For Greenville to Tiptonville, Mississippi, barges must remain above a 9ft draught, the shallowest draught channel allowed for the lower Mississippi River by the US Army Corps of Engineers. All northbound transit also cannot load more than four barges wide or configure more than five barges wide. Southbound traffic from Tiptonville to Greenville cannot be more than six barges wide or deeper than 9.5ft. Greenville to Tunica southbound barges can load as deep as 10ft but cannot be more than seven barges wide. All locations between Cairo, Illinois, and Greenville fell back to their low water threshold over the weekend as rainfall from Hurricane Francine flowed down the river. More grain has moved downriver this year compared with last year as the US Department of Agriculture (USDA) expects higher US grain exports in the 2024-25 marketing year. Around 367,000 short tons of grain moved for the week ended 14 September, which is about double the same period a year earlier, the USDA said. Both south and northbound movement is expected to see a heavier pace in October. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Vancouver sulphur exports rise 20pc in Aug


23/09/24
23/09/24

Vancouver sulphur exports rise 20pc in Aug

London, 23 September (Argus) — Sulphur exports from Canada's Vancouver port reached 320,000t in August, rising by 20pc from July. Exports in August went to China at 180,000t, Australia at 69,000t, the US at 50,000t and New Zealand at 21,000t. Last month's bumper exports pushed the total for the first eight months of this year 15pc above the same period last year at 2.27mn t, on disruptions to loading schedules in July last year because of a 13-day strike . An anticipated port strike this year has so far been averted. But the risk remains, as there has been no update regarding the progress of negotiations between the International Warehouse and Longshore Union Canada and the British Columbian Maritime Employers Association. Both parties are awaiting a ruling by the Canadian Industrial Relations Board, following a hearing that ran from 11-17 September. Neither party has issued a 72-hour strike or lockout notice . September's rail strikes were also short-lived this year, and the disruption minimal . Wildfires pose a further risk, after they caused outages last year to delivery schedules from production sites to Vancouver port. While the impact has been limited this year, with some oil sands operations reducing staffing, there is still some time before the risk of them abates . There is also more de-blocking taking place, with product melted from long-term storage at Alberta's substantial sulphur blocks to reduce block size and move stored product to export markets. This is expected to accelerate, and maintain higher exports despite reducing production from some oils sands plants and upgraders, as new forming capacity lifts remelting and reforming. The new South Cheecham priller is finally operational after long-standing operational issues from January to May . By Maria Mosquera Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

MET Group aims to become global energy company


23/09/24
23/09/24

MET Group aims to become global energy company

Houston, 23 September (Argus) — Switzerland-based MET Group strives to become a global integrated energy company with a footprint across Europe, Asia and the US, its chief executive Benjamin Lakatos told Argus . MET dreamed of entering the LNG market for 16-17 years but knew that it had to "grow up" first, its chief executive Benjamin Lakatos told Argus on the sidelines of the Gastech conference in Houston last week. The firm now has a sufficient size to take on fob contracts, Lakatos said — it signed its first long-term deal for US LNG on a fob basis in July. MET's revenue was nearly €25bn ($28bn) in 2023. The firm has already been buying spot LNG for 4-5 years. It has long-term regasification capacity in Germany, Spain and Croatia, and unloaded LNG in eight countries last year. MET is now setting its sights on the Asian market, where it is looking to start both gas sales and gas supply sourcing through its subsidiary in Singapore that opened last year. It is also looking for additional potential US LNG supply. "But we don't want to do it too fast," Lakatos said. Lakatos did not exclude the possibility of getting involved in the upstream sector as well. Owning upstream assets and having fixed costs "is a kind of insurance against market de-efficiencies", Lakatos said — by which he means "too big" price differentials, for example between Europe and the US. In the medium term, firms can only stay competitive in LNG if they are involved "in all three key regions — Asia, US sourcing, Europe", Lakatos said. "We need to play this optimisation between the three territories." A large part of the value in selling LNG will start to shift between continents, he said. But while this strategy is "easy to execute and understand" for the largest global companies, it is more challenging for smaller ones such as MET, Lakatos said. Lakatos said that although he would like to see a convergence of global gas prices over time, the market's structure is too segmented to allow this. Today, only a few companies are involved in the whole US LNG value chain, from extracting the gas, to liquefying it, shipping it and then regasifying the supply and selling it to Europe. "Everyone has his own home currency or price reference, everyone is asking for relatively big risk securities." MET's number one priority within Europe for the next five years is growing its sales in the retail sector, Lakatos said. The firm is starting to push higher retail sales in France. It will also restart in Germany and is targeting higher sales in Italy and Spain too. The MET head described his firm's trading style as "a little bit opportunistic", with traders taking advantage of changing price differentials. MET is also interested in the Baltics because it believes that the region is undervalued by international investors owing to the geopolitical situation, Lakatos said. "Investors do not consider the very stabilising factors such as the EU and Nato membership of these countries, or the euro currency." One of the business areas MET will be looking at in the Baltics is fertilisers. Expanding into fertilisers MET is trying to expand its value chain into the European fertilisers sector, in view of declining European gas consumption, as it strives to stay competitive. Lakatos said he is concerned that Europe will soon become heavily dependent on imports of fertiliser, just as it is on gas imports. Without support, the heavily gas-intensive European fertiliser industry will continue to struggle because of high gas prices, Lakatos said. MET is working on a new product for fertiliser companies, in which it would have the option of supplying either ammonia or natural gas, as both can be used to run the plants. The firm has spoken to potential suppliers but it will take 1-2 years to build up its expertise, Lakatos said. By Natasha Fielding Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Japan pushes abatement approach to energy transition


23/09/24
23/09/24

Japan pushes abatement approach to energy transition

Tokyo, 23 September (Argus) — Japan is keen to promote its energy transition approach, focused on carbon abatement technologies, to the wider coal-reliant Asia-Pacific region. The country has accelerated development of carbon abatement technologies to keep fossil fuels in its energy mix and boost energy security and economic growth. Japan, with its G7 counterparts, pledged to phase out "unabated" coal-fired plants by 2035, or "in a timeline consistent with keeping a limit of a 1.5°C temperature rise within reach, in line with countries' net zero pathways". This is a major step for Japan, a resource-poor country. But legislative progress aimed at developing value chains for carbon capture and storage (CCS) and cleaner fuels, such as hydrogen and ammonia, might have encouraged Tokyo to commit, especially since the G7 text allows for some wiggle room. To ensure continued use of its abated thermal power plants, trade and industry ministry has requested ¥11.2bn ($79mn) to support CCS projects, including exploration of CO2 storage sites, for 2025-26, up sharply from the ¥1.2bn budgeted for 2024-25. Japan has yet to set a date to achieve the phase-out target. But it had already promised not to build new unabated coal-fired plants at last year's UN Cop 28 climate talks, while pledging to phase out "inefficient" coal-fired plants by 2030. Less than 5pc of Japan's operational coal fleet has a planned retirement year, according to analysis by Global Energy Monitor, and these might comprise the oldest and least efficient plants. Coal capacity built in the last decade, following the Fukushima-Daiichi nuclear disaster, is unlikely to receive a retirement date without a countrywide policy that calls for a coal exit. Japan's coal demand could decline, to some extent, under global divestment pressure. But the fuel remains key, as the government sees renewables and nuclear as insufficient to meet rising power demand driven by the growth of data centres needed to enable artificial intelligence. Continental divide The country is keen to extend its vision for "various" and "practical" pathways, including abatement technologies, to coal-reliant southeast Asia. This stems from Tokyo's sceptical view about promoting a more European approach to the energy transition — driven by wind and solar power — to Asian countries. Japan stresses the importance of more diversified pathways, including thermal power with abatement. The country aims to spur decarbonisation in Asia-Pacific through a platform called the Asia Zero Emission Community (Azec) initiated in 2022. Asia-Pacific accounts for more than half of global greenhouse gas (GHG) emissions, at 17.178bn t of CO2 equivalent, according to the IEA. In Jakarta last month, 11 Azec countries emphasised the need to co-operate "to decarbonise coal power generation". The platform sets out options such as biogas, hydrogen and ammonia, and retrofitting with CCS and carbon capture, utilisation and storage. Japan's industries have already committed to carbon abatement at coal-fired plants in Asia, leveraging their technological know-how. Tokyo has pledged to provide about $70bn to support decarbonisation globally. This funding is part of wider financial assistance to help mobilise the estimated $28 trillion that Asia requires. To secure the funding, Japan has already issued part of a $139bn climate transition bond and aims to strengthen the financial support through the Asia Zero Emission Centre, the latest Azec initiative, under which transitional finance will be studied further, a trade and industry ministry official told Argus . Japan is on track to reduce its GHG emissions by 46pc by the April 2030-March 2031 fiscal year from its 2013-14 level, and hit its net zero emissions goal by 2050. By Motoko Hasegawa and Yusuke Maekawa Japan CO2 emissions by sector Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

India's Fact raises volume sought in NPS tender


23/09/24
23/09/24

India's Fact raises volume sought in NPS tender

London, 23 September (Argus) — Indian fertiliser importer Fact has raised the quantity of 20-20-0+13S it is seeking under a tender by 10,000t to 50,000t. The tender is to close on 25 September. Fact had originally sought two 20,000t cargoes of 20-20-0+13S, one cargo each for delivery to Kakinada and Tuticorin. The total volume sought has now been raised to 50,000t. The minimum quantity for either port should not fall below 20,000t, Fact said. The company continues to seek an arrival laycan for both cargoes of 1-31 December. By David Maher Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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