Viewpoint: Asia bio-bunkers to gain from EU regulations

Spanish Market: Biofuels, Oil products
16/12/24

New regulations in Europe should support Asian demand for marine biodiesel in 2025.

The scope of emissions covered under the EU's Emissions Trading System (ETS) will rise to 70pc next year from 40pc this year, and this will be accompanied by the introduction of the FuelEU Maritime regulations at the turn of the year.

FuelEU Maritime requires a reduction of greenhouse gas (GHG) intensity of fuels by 2pc in 2025 and up to 80pc by 2050, against a 2020 baseline level of 91.16 grammes of CO2 equivalent (gCO2e) per MJ.

These upcoming regulatory changes in Europe should support buying interest for marine biodiesel blends because biofuels compliant with the EU's Renewable Energy Directive (RED) will have a zero CO2 emissions factor under the ETS next year. And waste-based biodiesel produced from feedstocks such as used cooking oil (UCO), which typically provide higher GHG emissions against fossil comparators under RED than crop-based biofuels, will be a viable alternative for many shipowners looking to reduce the GHG intensity of their conventional vessels.

The regulations will not only support demand for marine biodiesel in Europe. They encompasses various flexibility mechanisms, aimed at supporting shipowners in meeting the required reductions, including a system that allows two or more vessels to create a pool in which compliance can be achieved across all vessels within the group as long as the total overall compliance balance of the pool is positive.

Vessels operating between Asia and Europe will have half of energy consumed on those voyages subject to FuelEU Maritme regulations. The energy consumed from a marine biodiesel blend bunkered in Singapore, for example, could be mass balanced to be fully accounted for under this scope. Shipowners with vessels operating on the east-west route could therefore look to bunker marine biodiesel in Singapore or other parts of Asia, and then pool that vessel along with other vessels in their fleet that operate solely within Europe to achieve compliance using a non-European bunkered product.

This dynamic will be supported by anti-dumping duties (ADD) imposed on Chinese biodiesel imports into Europe. The European Commission announced earlier this year provisional ADD measures on China-origin biodiesel and hydrotreated vegetable oil (HVO), with definitive measures set for mid-February 2025. In anticipation of the provisional duties, exports of Chinese biodiesel to the EU fell by over 50pc to 563,440t in the first half of this year compared with the same period of 2023.

At the same time, exports of Chinese biodiesel to Singapore hit a monthly high of 16,500t in August, which was mainly attributed to marine biodiesel blends being bunkered at the port. This pushed Argus price assessments of B24 dob Singapore, a blend comprising used cooking oil methyl ester (Ucome) and very low sulphur fuel oil (VLSFO), to an average discount of about $90/t against B30 Ucome dob ARA in August-October.

The more competitive pricing led to a shift in voluntary demand for marine biodiesel blends away from the Amsterdam-Rotterdam-Antwerp (ARA) hub in northwest Europe and towards Singapore. Marine biodiesel blend sales in Singapore hit a monthly high of 116,200t in October, according to data from the local maritime and port authority.

The option to bunker marine biodiesel blends in Asia to meet European regulations will not be limited to Singapore. China's Zhoushan Port Authority said it will obtain a domestic blend permit by the end of this year, which will pave the way for suppliers to provide marine biodiesel blends to local and international shipowners.

By Hussein Al-Khalisy

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13/03/25

Açúcar: Mudança tributária abre espaço diplomático

Sao Paulo, 13 March (Argus) — A isenção das importações de açúcar no Brasil é avaliada como uma tentativa de demonstrar aos Estados Unidos disposição em realizar acordos comerciais com o país, após o governo norte-americano sinalizar a possibilidade de aumentar as tarifas sobre alguns produtos brasileiros . Ao retirar as tarifas sobre o açúcar, o Brasil abre espaço para negociar a possibilidade de manutenção das tarifas de etanol, de acordo com Renato Cunha, presidente da Associação dos Produtores de Açúcar, Etanol e Bioenergia das regiões Norte e Nordeste (NovaBio). Etanol e açúcar são mercados correlatos no Brasil e as negociações dos dois costumam estar interligadas. Ambos são derivados da cana-de-açúcar e a produção de um produto ocorre em detrimento do outro. O governo brasileiro anunciou em 6 de março a eliminação dos impostos para importações de itens considerados essenciais, como o açúcar, milho, azeite, café e óleo de soja, com o intuito de reduzir os preços dos alimentos, em meio à aceleração da inflação. No caso do açúcar, o efeito sobre a inflação tende a ser limitado. O Brasil – maior produtor e exportador mundial de açúcar – é autossuficiente na produção do adoçante e as importações representam volumes mínimos no mercado. O Brasil exportou cerca de 33,5 milhões de t em 2024, alta de 23,8pc em comparação com 2023, a partir de uma produção de 42,4 milhões de t na safra 2023-24, de acordo com a Unica. Vantagens competitivas do açúcar brasileiro Mesmo que a isenção de tarifas para importar açúcar – que antes eram de até 14pc – facilite a abertura de novos mercados e crie eventuais oportunidades para os consumidores brasileiros, o produto nacional ainda é mais barato, pelos custos de produção mais baixos em relação a outros países. Os custos para produzir açúcar no Brasil são de aproximadamente 15¢/lb (equivalente a R$1,92/kg), enquanto na Tailândia – segundo maior exportador de açúcar – eles estão próximos de 21,5¢/lb, segundo participantes de mercado. Na Índia e Austrália, terceiro e quarto maiores exportadores, os custos são de aproximadamente 22,4¢/lb e 18,3¢/lb, respectivamente. Para que haja uma redução efetiva dos preços do açúcar, é necessária uma revisão nos custos de toda a cadeia produtiva até as gôndolas do mercado, disse José Guilherme Nogueira, presidente da Organização de Associações de Produtores de Cana do Brasil (Orplana). Para Nogueira, é importante se atentar a fatores além da produção, como custos de frete e seguro, áreas passíveis de atuação do governo. Como a produção é suficiente para o consumo nacional e há um grande volume excedente, o açúcar brasileiro acaba sendo majoritariamente exportado, sem o mercado externo representar efetivamente uma concorrência para o consumidor brasileiro. O preço do açúcar cristal branco registrou uma média de R$155,3/ saca de 50kg em janeiro - ou $24,9/sc na paridade de exportação, com a cotação média do dólar norte-americano a R$6,02 – segundo o indicador do Centro de Estudos Avançados em Economia Aplicada (CEPEA/Esalq). Em janeiro de 2024, os preços no mercado nacional estavam R$145,04/sc, em média, e $29,5/sc, considerando uma taxa cambial média de R$4,91. Isso mostra que mesmo com o dólar mais alto neste ano, o mercado doméstico de açúcar segue remunerando mais que o mercado externo, em comparação com o mesmo período no ano passado. Por Maria Albuquerque Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2025. Argus Media group . Todos os direitos reservados.

Nigeria's port authority raises import tariffs

13/03/25

Nigeria's port authority raises import tariffs

London, 13 March (Argus) — The Nigerian Ports Authority (NPA) has raised tariffs by 15pc on imports "across board", taking effect on 3 March, according to a document shown to Argus . The move comes as the independently-owned 650,000 b/d Dangote refinery continues to capture domestic market share through aggressive price cuts, pushing imported gasoline below market value in the country. Sources said that Dangote cut ex-rack gasoline prices to 805 naira/litre (52¢/l) today, from between 818-833N/l. The rise in NPA tariffs may add on additional cost pressures onto trading houses shipping gasoline to Nigeria, potentially affecting price competitiveness against Dangote products further. The move would increase product and crude cargo import costs, according to market participants. But one shipping source said the impact would be marginal as current costs are "slim", while one west African crude trader noted that the tariffs would amount to a few cents per barrel and represent a minor rise in freight costs. Port dues in Nigeria are currently around 20¢/bl, the trader added. One shipping source expects oil products imports to continue to flow in, because demand is still there. Nigeria's NNPC previously said the country's gasoline demand is on average around 37,800 t/d. Over half of supplies come from imports, the country's downstream regulator NMDPRA said. According to another shipping source, Dangote supplied around 526,000t of gasoline in the country, making up over half of product supplied. The refinery also supplied 113,000t of gasoil — a third of total total volumes in the country — and half of Nigeria's jet at 28,000t. By George Maher-Bonnett and Sanjana Shivdas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Экспортная пошлина на нефть в Казахстане в марте выросла

13/03/25

Экспортная пошлина на нефть в Казахстане в марте выросла

Riga, 13 March (Argus) — Ставка экспортной пошлины на нефть в Казахстане в марте увеличилась до $78/т с $77/т — в феврале. Среднее значение котировок сорта Kebco (cif Аугуста) и Североморского датированного в период мониторинга цен с 20 декабря по 20 февраля составило $78/барр. по сравнению с $77/барр. — в период предыдущего мониторинга, по данным министерства финансов Казахстана. С сентября 2023 г. ежемесячная ставка пошлины на экспорт нефти и нефтепродуктов в Казахстане меняется при изменении средней мировой цены на $1/барр. вместо прежних $5/барр. в пределах диапазона $25—105/барр. При средней рыночной цене нефти $25—105/барр. размер ставки вывозной таможенной пошлины рассчитывается по следующей формуле: ВТП=Ср*К, где ВТП — размер ставки вывозной таможенной пошлины на нефть и нефтепродукты в долларах США за тонну; Ср — средняя рыночная цена нефти за предшествующий период; К — поправочный коэффициент 1. При значении средней рыночной цены на нефть до $25/барр. размер ставки вывозной таможенной пошлины равен нулю. При цене свыше $105/барр. применяются ставки вывозной пошлины в диапазоне от $115/т до $236/т. Средняя рыночная цена определяется министерством финансов Казахстана ежемесячно на основании мониторинга котировок Kebco и Североморского датированного в течение двух предыдущих месяцев. Полученный результат мониторинга в соответствии с поправками математически округляется до целого числа. ________________ Больше ценовой информации и аналитических материалов о рынках нефти и нефтепродуктов стран Каспийского региона и Центральной Азии — в еженедельном отчете Argus Рынок Каспия . Вы можете присылать комментарии по адресу или запросить дополнительную информацию feedback@argusmedia.com Copyright © 2025. Группа Argus Media . Все права защищены.

Northwest European renewable fuel ticket prices rise

12/03/25

Northwest European renewable fuel ticket prices rise

London, 12 March (Argus) — The price of renewable fuel tickets in the UK and the Netherlands has firmed in recent trading sessions, but tickets remain a more competitive option to comply with domestic renewable fuel mandates than physical biofuels blending. Tickets are tradeable credits primarily generated by the sale of biofuel-blended fuels and are used to help obligated parties meet mandates for the use of renewable energy in transport. In the Netherlands, "other" and advanced renewable fuel units (HBE-Os and HBE-Gs) hit a more than three-week high of €11.10/GJ on 6 March, while in the UK, non-crop renewable transport fuel certificates (RTFCs) reached 26.25 pence/RTFC on 5 March, the highest level since 29 January. Despite the increase, RTFCs are at a discount to the like-for-like blend value of used cooking oil methyl esther (Ucome) biodiesel and hydrotreated vegetable oil (HVO) Class II ( see graph ). And in the Netherlands, HBE-Gs remain well below the like-for-like blend value of palm oil mill effluent (Pome) oil-based HVO (Class IV). This typically discourages obligated parties to physically blend biofuels. Biodiesel and HVO prices increased on higher feedstock costs, market participants said. The premiums of HVO Class II and IV against the HVO-escalated 7-28 day Ice gasoil price reached $800/m³ and $785/m³, respectively, on 7 March, the highest since 12 February. Meanwhile, the Argus Ucome biodiesel fob ARA price rose to $1,453.24/t on 4 March, its highest since 3 December. And last week, the Argus UCO fob ARA assessment hit its highest level since October 2022, driven by low supply in the ARA region and a stronger euro against the US dollar. A closed arbitrage with China, Europe's biggest importer of UCO, is putting further pressure on supply in the region, market participants said. UCO trade flows shifted away from Europe last year as significant amounts of Chinese product moved to the US at the expense of flows elsewhere. But there may be some relief for European buyers in 2025 as US buyers wait for clarity on the Inflation Reduction Act's carbon intensity-based 45Z credit. President Donald Trump's doubling of pre-existing tariffs on Chinese imports to the US to 20pc is yet to have an impact on the European market, although participants said it could put a ceiling on further price gains. SAF blending pressures HBE-IXBs HBE-IXB tickets — generated by blending biofuels made from feedstocks listed in Annex IX part B of the EU's Renewable Energy Directive — have been moving in the opposite direction. The Argus Netherlands HBE-IXB price softened to its lowest since October last year on 13 February, at €9.50/GJ (see graph) . It has since risen slightly, reaching €9.75/GJ on 11 March. The tickets are under pressure from stronger supply as some are being offered by sustainable aviation fuel (SAF) blenders, market participants said. Biofuels in aviation benefit from a 1.2x multiplier, in addition to the double counting rule for waste feedstocks. An EU-wide SAF mandate — ReFuelEU — came into effect on 1 January, replacing national obligations. Under the mandate, fuel suppliers will need to include 2pc SAF in their jet fuel deliveries in 2025, rising to 6pc in 2030. UCO-based hydrotreated esters and fatty acids synthesised paraffinic kerosine (HEFA-SPK) is the most common type of SAF available today. In the Netherlands, blending HEFA-SPK SAF into jet fuel can generate HBE-IXBs. But the Dutch ministry of infrastructure is consulting on its second draft to transpose the recast RED III . If the current draft is implemented, the Netherlands will introduce greenhouse gas (GHG) emissions reduction mandates from 2026 for land, inland shipping and maritime shipping. The first draft also included an aviation subcategory, but it was removed in February . GHG-quota by blending less lucrative in Germany The increase in biodiesel and HVO prices in the ARA region has not had an impact on German GHG certificates. Buying GHG certificates remains more cost effective than physical blending for fuel suppliers. But market participants anticipate prices rising from the end of March, which could reverse this trend. Overall blending in Germany is expected to increase this year to generate new GHG tickets, after carry-over was frozen, forcing producers to build their GHG balance from scratch in order to fulfil their 2025 quotas. Many market participants remain focused on their 2024 balance for now, and demand for advanced biofuels and HVO in Germany has been slow so far this year. By Evelina Lungu Ucome and HVO Class II versus RTFCs p/litre Advanced FAME 0 versus German €/t CO2e Ucome and HVO Class II versus HBE-IXB €/GJ HVO Class IV versus HBE-G €/GJ Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Chevron to produce Group III+ base oils in US

12/03/25

Chevron to produce Group III+ base oils in US

London, 12 March (Argus) — Chevron said it will begin Group III+ base oils production in the US, becoming the first domestic producer of these grades in North America. The Group III+, named NEXBASE 4 XP, will be produced at Chevron's 25,000 b/d base oils plant in Pascagoula, Mississippi, from the fourth quarter of 2026. Chevron will join Malaysian state-owned Petronas and South Korean Producer SK Enmove as the only global producers of Group III+, and could compete with these for market share in North America. "NEXBASE 4 XP will be globally available, starting with hubs across Europe, which will help customers optimise supply logistics and costs," said Chevron base oils general manager Alicia Logan. Use of Group III+ base oils in premium grade lubricants is rising as equipment manufacturers seek to meet the latest engine approvals. The new production will add to Chevron's portfolio of Group II, Group II+ and Group III base oils. Chevron in 2022 acquired Finish refiner Neste's Group III business , including 250,000 t/yr of Group III nameplate capacity from Finland's 197,000 b/d Porvoo refinery and 180,000 t/yr or 45pc of base oil nameplate capacity from Bahrain's 262,000 b/d Sitra refinery through a joint-venture agreement with Bapco. By Gabriella Twining Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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