Generic Hero BannerGeneric Hero Banner
Latest market news

IMO says sulphur cap transition extremely smooth

  • : Oil products
  • 21/01/29

The transition to low-sulphur marine fuels has been extremely smooth, the International Maritime Organisation (IMO) said, with only a tiny number of reported cases of fuel unavailability and no reported cases of safety issues.

The IMO's 0.5pc sulphur cap kicked in at the start of last year, banning the use of marine fuels with a sulphur content above 0.5pc unless a ship is installed with technology such as the exhaust cleaning systems known as scrubbers. Many participants voiced fears about disruption arising from the supply and quality of new IMO-compliant blends.

But, the IMO said there were just 55 cases of 0.5pc fuel oil being unavailable when required in 2020, when around 60,000 ships were in service globally, and it said it said it has received no reports of safety issues linked to the low-sulphur fuels.

"All indications are that there have been no significant issues with supply," said the IMO's head of air pollution and energy efficiency Roel Hoenders.

Others have reported disputes over quality. Law firm Hill & Dickinson said in December that while these were rare, they have occurred all over the world, and shipping association Bimco said last year a significant number of shipping industry participants had reported quality issues from the new blends.

Lloyd's Register's Fuel Oil Bunker Analysis and Advisory Service (Fobas) said in August that the most common problem was high sediment levels, and that around a quarter of issues reported between January-July 2020 were down to sulphur content.

Since the IMO cap was introduced, 0.5pc fuel oil has become the dominant marine fuel, displacing 3.5pc sulphur fuel oil (HSFO). Demand for the latter began to rise later in 2020 as more ships were retrofitted with scrubbers and returned to sea.


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.

25/05/05

Mexico's manufacturing contraction deepens in April

Mexico's manufacturing contraction deepens in April

Mexico City, 5 May (Argus) — Activity in Mexico's manufacturing sector shrank for a 13th straight month in April, with declines accelerating in production and new orders, according to a survey of purchasing managers. The manufacturing purchasing managers' index (PMI) fell to 45.5 in April from 46.9 in March, finance executives' association IMEF said, moving further below the 50-point threshold that separates growth from contraction. US tariffs imposed since March are adding pressure to Mexico's manufacturing sector, which makes up about a fifth of the national economy. The auto industry, responsible for roughly 18pc of manufacturing GDP, may be the hardest hit by the new measures, including a 25pc tariff on auto parts that took effect 3 May. Mexico remains the top exporter of vehicles to the US, supplying 23pc of all US auto imports in 2024. But IMEF said tariffs compound broader, mostly domestic headwinds, including reduced public spending and investor uncertainty stemming from sweeping legal and regulatory reforms. New investment has stalled since late 2024. The PMI index for new orders fell by 2.5 points to 41.8, the lowest since June 2020. Production dropped by 2.5 points to 43.6, while employment fell by 0.6 point to 46.4. New orders and production have now been in contraction for 14 straight months, and employment for 15. Inventories saw the steepest drop in April, falling 4 points to 46.3 — sliding from expansion to contraction — as manufacturers accelerated shipments after tariff implementation dates were confirmed. IMEF's non-manufacturing PMI — which covers services and commerce — remained in contraction for a fifth consecutive month but edged up by 0.5 points to 49.0 in April. Within that index, new orders rose by 0.6 points to 48.1, employment increased 1.3 points to 48.6 and production held steady at 47.5. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Alcmene withdraws ExxonMobil Miro shares offer


25/05/05
25/05/05

Alcmene withdraws ExxonMobil Miro shares offer

Hamburg, 5 May (Argus) — Austrian company Alcmene has withdrawn from its plans to buy ExxonMobil's share in German refining joint venture Miro. Alcmene told ExxonMobil of the withdrawal on 29 April, putting an end to a drawn-out sales process. ExxonMobil agreed in October 2023 to sell its 25pc stake in Miro, which operates the 310,000 b/d Karlsruhe refinery in Germany. The sale was initially put on hold by a court order following a petition by fellow shareholder Shell in April 2024. The court in Karlsruhe dismissed ExxonMobil's appeal in the final instance in July, prohibiting the company from selling its stakes without prior agreement by Shell. Shell holds 32.25pc in the venture, Russian state-controlled Rosneft has 24pc and US firm Phillips 66 has 18.75pc. Rosneft's German business has been under state trusteeship since September 2022. Rosneft plans to sell all of its German assets. By Natalie Müller and Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Sunoco to buy Canadian fuel distributor Parkland:Update


25/05/05
25/05/05

Sunoco to buy Canadian fuel distributor Parkland:Update

Adds details on proxy fight, other background. Houston, 5 May (Argus) — US infrastructure operator and fuel distributor Sunoco said it will buy Canadian refiner and fuel retailer Parkland in a $9.1bn cash and stock deal. The deal comes as Parkland faces a proxy fight from its largest shareholder Simpson Oil, which was calling for a vote to change the board of directors at a now-cancelled 6 May shareholder meeting. The agreement with Sunoco "creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas," said Michael Jennings, executive chairman of Parkland. The transaction will further diversify Sunoco's portfolio and geographic footprint and increase cash flow generation for reinvestment and distribution growth, Sunoco and Parkland said. Parkland owns about 4,000 retail and commercial locations in Canada, the US and the Caribbean region, as well as the 55,000 b/d refinery in Burnaby, British Columbia. The refinery produces conventional oil products and has 4,000 b/d of co-processing capacity, meaning both petroleum and biogenic feedstocks are used. Sunoco said it is committed to continue investment in the refinery which supplies fuel to southwestern BC, including the Vancouver area. Under the deal, Sunoco will keep a Canadian headquarters in Calgary and "significant employment levels" in Canada, the companies said. The transaction is expected to close in the second half of the year. Sunoco is part of the Dallas-based Energy Transfer family of companies but is publicly traded under its own ticker symbol. Parkland has planned a special meeting of its shareholders on 24 June, to approve the transaction. The annual general meeting of Parkland shareholders, which was originally scheduled for 6 May has been cancelled. Proxy fight building before deal Parkland in March said it was conducting a review of strategic alternatives including a possible sale of the company. The review was led by a special committee of the board of directors. Parkland long-time chief executive Bob Espey announced on 16 April that he would step down sometime this year with the timing depending on the completion of the strategic review or the appointment of a new chief executive. Simpson Oil, which holds about 20pc of Parkland shares, called for a strategic review of Parkland in 2024 and re-iterated its concerns in a letter to the Parkland board of directors in February. Parkland and Simpson Oil have been mired in a dispute related to a 2019 governance agreement. Simpson Oil said on 2 May that it had the support of more than 60pc of Parkland's shareholders which would enable it to take control of the Parkland board of directors. An official vote would have taken place at the now-cancelled shareholders meeting. Simpson Oil on Monday urged Parkland to "respect the democratic process" and allow the 6 May shareholders meeting to proceed as scheduled. "Delaying the meeting and pushing forward with any transaction ahead of board transition represents a clear breach of fiduciary duty—an obvious attempt to cling to power and sidestep shareholder will," Simpson Oil said in a press release. Simpson Oil also called for all 11 incumbent directors to resign immediately. In 2023, activist investor hedge fund Engine Capital said that Parkland should consider shedding assets "that create unnecessary complexity and detract from its underlying value." Engine Capital said at the time that the Burnaby refinery is a "volatile and more capital-intensive refinery" that should be sold or spun off. Parkland last year sold its Canadian commercial propane business to Avenir Energy for C$115mn. Sunoco, meanwhile, has been growing its footprint in North America. The company [last year acquired] (https://direct.argusmedia.com/newsandanalysis/article/2530270) pipeline and terminal operator NuStar Energy for $7.3bn. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Alcmene zieht sich aus Miro-Kauf von Esso zurück


25/05/05
25/05/05

Alcmene zieht sich aus Miro-Kauf von Esso zurück

Hamburg, 5 May (Argus) — Das österreichische Mineralölunternehmen Alcmene hat sich aus der geplanten Übernahme von Essos Anteilen an der Miro in Karlsruhe zurückgezogen. Bereits zuvor wurde der Kauf durch eine gerichtliche Verfügung auf Eis gelegt. Alcmene hat Esso am 29. April über ihre Entscheidung, von ihrem Rücktrittsrecht Gebrauch zu machen, informiert. Damit findet die Übernahme endgültig nicht statt. Esso, das deutsche Tochterunternehmen von ExxonMobil, gab den Verkauf ihres 25 %-gen Anteils an der Miro (310.000 bl/Tag) im Oktober 2023 bekannt, mit geplanter Übernahme durch Liwathon-Tochter Alcmene im ersten Quartal 2024. Die Übernahme verzögerte sich zunächst, nachdem Anteilseigner Shell dagegen eine einstweilige Verfügung beantragte. Der Widerspruch von Esso wurde vom Oberlandesgericht in Karlsruhe im Juli 2024 abgelehnt und der Verkauf an Alcmene ohne Zustimmung von Shell in letzter Instanz verboten. Seitdem war unklar, ob und wie die Übernahme voranschreiten könnte. Shell hält 32,25 % an der Miro, gefolgt von Rosneft Deutschland mit 24 % und Phillips 66 mit 18,75 %. Rosneft Deutschland, das deutsche Tochterunternehmen der russischen Rosneft, befindet sich seit September 2022 unter der Treuhand der Bundesnetzagentur. Rosneft plant, alle seine deutschen Vermögenswerte zu verkaufen. Von Natalie Müller und Fenella Rhodes Senden Sie Kommentare und fordern Sie weitere Informationen an feedback@argusmedia.com Copyright © 2025. Argus Media group . Alle Rechte vorbehalten.

Sunoco to buy Canadian fuel distributor Parkland


25/05/05
25/05/05

Sunoco to buy Canadian fuel distributor Parkland

Houston, 5 May (Argus) — US firm Sunoco agreed to buy Canadian fuel distributor and retailer Parkland in a deal valued at $9.1bn, the companies said Monday. Sunoco, an energy infrastructure and fuel distribution company, will acquire all outstanding shares of Parkland in a cash and equity transaction. This deal "creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas," said Michael Jennings, executive chairman of Parkland. The transaction will further diversify Sunoco's portfolio and geographic footprint and increase cash flow generation for reinvestment and distribution growth, the companies said. Parkland owns a 55,000 b/d refinery in Burnaby, British Columbia, which produces conventional oil products and has 4,000 b/d of co-processing capacity, meaning both petroleum and biogenic feedstocks are used. Sunoco said it is committed to continue investment in the refinery which supplies fuel to southwestern BC, including the Vancouver area. Parkland owns about 4,000 retail and commercial locations in Canada, the US and the Caribbean region. Under the deal, Sunoco will keep a Canadian headquarters in Calgary and "significant employment levels" in Canada, the companies said. The transaction is expected to close in the second half of the year. Parkland has planned a special meeting of its shareholders on 24 June, to approve the transaction. The annual general meeting of Parkland shareholders, which was originally scheduled for 6 May has been cancelled. Parkland in March said it was conducting a review of strategic alternatives including a possible sale of the company. The review was led by a special committee of the board of directors. Parkland last year sold its Canadian commercial propane business to Avenir Energy for C$115mn. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

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