Gulf coast refiners start shutdowns for Ida: Update 2

: Oil products
21/08/27

Updates with refinery shutdowns, Ida forecast intensity.

A number of US Gulf coast refinery operators started shutdown operations ahead of Hurricane Ida, which is forecast to make landfall along the northern Gulf coast on 29 August and has already triggered residential evacuations.

Phillips 66's 250,000 b/d Alliance refinery in Belle Chasse, and Shell's 225,000 b/d refinery in Norco all started safe and orderly shutdown operations this afternoon in preparations for the storm's arrival, according to the companies.

ExxonMobil's 500,000 b/d refinery in Baton Rouge, Louisiana, and its 362,000 b/d refinery in Beaumont, Texas, started preparations for the storm yesterday, but had not begun shutdown operations, according to the companies. Marathon Petroleum today declined to say if preparations have begun for its 565,000 b/d refinery in Garyville, Louisiana, but said it has plans and procedures in place for severe weather.

Representatives did not respond from: Delek's 80,000 b/d refinery in Krotz Springs, Louisiana; Valero's 215,000 b/d refinery in St Charles, Louisiana, and its 135,000 b/d Meraux refinery in Chalmette, Louisiana; PBF Energy's 190,000 b/d refinery in Chalmette; and Citgo's 425,000 b/d refinery in Lake Charles.

A hurricane warning is in effect for the Louisiana coast and a storm surge warning is in effect for parts of the Louisiana, Mississippi and Alabama coasts, according to the National Hurricane Center, which has forecast Ida's arrival as a Category 4 storm, with wind speeds between 130-156 mph (209-251 km/h).

St Charles Parish in Louisiana today issued a recommended evacuation for all its residents no later than tomorrow evening.

By Jason Metko

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.

24/11/26

Norden agrees marine biodiesel deal with Meta

London, 26 November (Argus) — Danish shipping company Norden has agreed with tech giant Meta to utilise marine biodiesel blends on operated vessels. The deal is based on Norden's book-and-claim, a system that can be used to deliver proof of sustainability (PoS) documentation to customers to offset the latter's scope 3 emissions and fulfil their voluntary demand. The PoS can be obtained on a mass-balance system, allowing shipowners flexibility with regards to the port at which a blend can be bunkered. Norden did not specify which marine biodiesel blends it will use as part of this agreement, but said the biofuel will be ISCC-certified and will have an 80-90pc greenhouse gas (GHG) emissions reduction potential. The agreement follows recent drops in Argus assessments for marine biodiesel blends comprising Advanced Fatty acid methyl ester (Fame) 0 in the ARA trading and refining hub. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Nigeria restarts Port Harcourt refinery: Update

24/11/26

Nigeria restarts Port Harcourt refinery: Update

Recasts and adds details throughout London, 26 November (Argus) — Nigeria's state-owned NNPC said today it has restarted its 210,000 b/d Port Harcourt refinery after three and a half years offline. Product loadings began today after the plant's smaller, 60,000 b/d capacity crude distillation unit (CDU) came into operation. This gradual restart had been planned by Italian engineering firm Maire Tecnimont, which has been rehabilitating the plant under a $1.5bn contract, although a number of deadlines announced by NNPC have been missed. Refined products from Port Harcourt will add to the gasoline that has been supplied since September from the 650,000 b/d Dangote refinery. Product imports are likely to fall, an industry source said. Nigerian downstream regulator NMDPRA's head Farouk Ahmed said products from Port Harcourt will be made available nationwide and would stoke price competition. Nigeria's National Bureau of Statistics (NBS) reported an average national gasoline price of 1,185/litre (70¢/l) for October, a rise of 88pc on the year and 15pc from September. The price of diesel, which has been deregulated since 2003, was an average N1,441/l in October, NBS said, up by 43pc on the year and by 2pc on the month. The Dangote Group dropped its ex-gantry gasoline prices on Sunday, 24 November, to N970/l from N990/l. Nigerian importers already appear under pressure to compete with Dangote on product pricing, which the Port Harcourt start-up may exacerbate. A local trader said he has found gasoline trading economics most workable when lifting from Dangote ex-single point mooring (SPM) and delivering to coastal ports such as Port Harcourt and Warri in Nigeria's southeast, where truck deliveries from Dangote would prove uneconomic. Nigeria's presidency and NMDPRA's Ahmed urged NNPC to now bring back online its 125,000 b/d Warri and 110,000 b/d Kaduna refineries, which have been closed since 2019. NNPC has opened a combined tender for operating and maintaining these. The outcome of a similar tender for Port Harcourt is unclear. Nigeria would become a net products exporter when Warri and Kaduna come online, NMDPRA's Ahmed said today. A source at the regulator said exports might become vital to Nigerian refiners. "The patronage for petroleum products is low and Nigeria is oversupplied," the source said, attributing the latest Dangote price cut to competition with imports and weak demand. The prospect of Port Harcourt running at its nameplate capacity is in doubt, sources said. It would at best reach 40-50pc of capacity, the industry source said, which would focus on mainly local gasoline deliveries. Port Harcourt was shut in 2020 after several years of low capacity utilisation. NNPC previously said it expects the initial 60,000 b/d phase to produce 12,000 b/d of gasoline, 13,000 b/d of diesel, 8,600 b/d of kerosine, 19,000 b/d of fuel oil and 850 b/d of LPG in the first year of resumed operations. By Adebiyi Olusolape and George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Bimco develops FuelEU clause for charter parties

24/11/26

Bimco develops FuelEU clause for charter parties

Sao Paulo, 26 November (Argus) — Danish shipping association Bimco has developed a contractual clause to support time charter parties ahead of FuelEU Maritime regulations that come into force at the beginning of 2025. The clause designates the shipowner to be the party responsible for FuelEU Maritime. Bimco said the clause is intended to be the standard applicable for most scenarios and commercial relationships. Among the recommendations, the clause states it is mandatory for a shipowner to present the vessel's compliance balance for the previous two years and in the current year. The FuelEU maritime regulation will start in 2025 and will require that ships traveling in, out of, and within EU territorial waters gradually reduce their greenhouse gas (GHG) intensity on a lifecycle basis. It will start with a 2pc reduction in 2025, 6pc in 2030, and will be 80pc by 2050, all compared with 2020 levels. The regulation applies to all commercial ships above 5,000 gross tonnes (GT) carrying passengers or cargo. "The clause we have adopted today is the result of a collaborative process between owners, charterers, Protection and Indemnity (P&I), legal experts, and other stakeholders," said Bimco's documentary committee chairman Nicholas Fell. Bimco has also already adopted a clause for emission trading allowances under the EU emissions trading system (ETS) for ship management agreements, voyage charter parties, and contracts of affreightment. By Gabriel Tassi Lara and Natália Coelho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Star Bulk expects smooth 2025 FuelEU compliance

24/11/25

Star Bulk expects smooth 2025 FuelEU compliance

New York, 25 November (Argus) — Greek ship owner Star Bulk said it expects to meet the 2025 FuelEU regulation without issue. Starting on 1 January 2025, the FuelEU regulation will require that vessel fleets travelling in EU territorial waters cap their lifecycle greenhouse gases (GHG) at 89.34 grams of CO2-equivalent per megajoule through 2029. The company plans to meet this regulation by burning B30 biofuel blends on some of its vessels. This will GHG credits for its remaining vessels that trade in and out of EU territorial waters. Star Bulk does not expect to have difficulty sourcing the B30, but warned that sourcing it could become a challenge from 2027 onward. The International Maritime Organization (IMO) should update its GHG emissions regulation for international shipping to include lifecycle emissions from the current emissions from combustion around mid-2027. The organization will require that vessels globally reduce their lifecycle GHG by at least 20pc by 2030 and by at least 70pc by 2040, compared with a 2008 baseline, and reach net-zero by 2050. This will require additional quantities of biofuel. Unlike the FuelEU regulation which applies to vessel fleets or pools travelling in EU waters, the IMO regulation will apply to individual vessels travelling in international waters. Star Bulk burned 832,371 of marine fuel in 2023, down 4pc compared with 2022. Of this quantity, 708,406t was high-sulphur fuel oil (HSFO), 36,598t very low-sulphur fuel oil (VLSFO) and 87,367t marine gasoil. About 95pc of Star Bulk's vessel fleet is outfitted with marine exhaust scrubbers. The scrubbers allow its vessels to burn HSFO in international waters. Vessels that do not have scrubbers are required by the IMO to burn marine fuel with up to 0.5pc sulphur content maximum, such as VLSFO in international waters. Star Bulk's vessels emitted 2.6mn t of CO2 in 2023, down 4pc from 2022. The company is aiming to reduce its fleet's carbon intensity ratio by 12pc by 2026, from 2019 baseline year, consistent with the IMO's carbon intensity indicator targets. In 2023, Star Bulk achieved 4.32pc reduction relative to 2019. The reduction was largely due to improved vessel performance monitoring, hull cleaning, and optimization of weather and routing, the company said. As of the end of September, Star Bulk owned 155 vessels, chartered 10 vessels and had five newbuild vessels on order to be delivered in 2025 and 2026. In April, the company finalized its merger with Eagle Bulk Shipping . By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Escalation in Ukraine fuels German oil product demand

24/11/25

Escalation in Ukraine fuels German oil product demand

Hamburg, 25 November (Argus) — Consumers in Germany stocked up on middle distillates in the past week because of escalations in the war between Russia and Ukraine. Sales of heating oil and diesel in Germany ramped up rapidly on 21 November after Russia fired an intercontinental ballistic missile into Ukraine. This reignited concerns among German traders and consumers about the possible effects on availability and pricing of oil products in Europe. Traded volumes of heating oil reported to Argus went up by 60pc day-on-day on 21 November, while diesel volumes more than doubled as traders and consumers sought to stock up, even as prices rose. Private heating oil tanks have held their levels throughout November having peaked at just above 62pc at the beginning of the month, two percentage points higher than last year's peak. Industrial diesel tanks dropped below 46pc on 10 November, the lowest in at least four years, although they have since begun to recover slightly. Diesel imports went up again in November even though imports are largely unprofitable because of high domestic refinery output and demand that is generally low. Low water levels on the Rhine river make imports by barge even less profitable. Barges that have to pass the Kaub bottleneck on their way to destinations along the Upper Rhine can only carry up to 80pc of capacity after water levels fell again at the weekend. By Natalie Müller 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