Marine fuel global weekly market update
A weekly Argus news digest of interest to the conventional and alternative marine fuel markets. To speak to our team about accessing the stories below and access to Argus Marine Fuels, please contact: marinefuels@argusmedia.com.
Alternative marine fuels
9 June Rotterdam LNG share of bunker demand to rise LNG as a share of the Rotterdam bunker market may surpass 3pc this summer as LNG prices dip below conventional marine fuels.
9 June Indonesia's palm waste exports down on month in April Indonesia's palm waste exports decreased in April on the back of International Sustainability and Carbon Certificate (ISCC) withdrawals because of alleged fraudulent practices, curtailing China's import volumes from the southeast Asian country.
9 June Demand needed to drive new fuel supply: Nor Shipping More demand is needed if zero-carbon shipping fuels are going to become the norm, shipping industry leaders told attendees at the Nor-Shipping conference in Oslo this week.
9 June Iberdrola to build green ammonia plant in Spain Spanish utility Iberdrola plans to build a green ammonia plant in the south of the country following an agreement with ammonia trader Trammo for the purchase and sale of up to 100,000 t/yr of green ammonia from 2026.
8 June Japan's Asahi Kasei buys bio-methanol from Mitsui Japanese petrochemical producer Asahi Kasei has started purchasing bio-methanol from Japanese trading house Mitsui to produce bio-engineering plastic, amid growing pressure to decarbonise.
8 June Price goal of $100/t CO2 is 'unrealistic' for DAC The much talked about goal of $100/t of CO2 for direct air capture (DAC) is "not at all realistic", and firms should be careful about "lowballing" costs, delegates heard at an industry event this week.
8 June Policy, costs make US key clean ammonia supplier The US is uniquely positioned to become a principal exporter of clean ammonia within the next decade despite price-related challenges that remain in play, delegates said Wednesday at the Argus Clean Ammonia North America Conference in Houston, Texas.
8 June Klapedia, Proman agree on methanol bunkering The Port of Klapedia in Lithuania is adding methanol bunkering capability to its operations.
8 June Japan's Mol to charter LNG-fuelled bulk carrier Japanese shipping firm Mitsui OSK Lines (Mol) has agreed to charter a new LNG-fuelled bulk carrier for utility Kansai Electric Power to deliver coal from Kansai's Maizuru power complex, targeting commissioning in 2026.
8 June Iran's methanol output dips on squeezed margins Production at methanol units in Iran is expected to dip in June, with some producers opting to cut operating rates because of weakening margins.
8 June IMO must boost emissions targets: Maritime group The head of a Norwegian maritime group said the UN's International Maritime Organization (IMO) must adopt a more ambitious emissions goal to meet a zero-emissions target by 2050.
8 June Titan LNG charters new bunkering vessel Dutch shipping firm Titan LNG has signed a long-term charter with Italian bunker supplier and shipowner Fratelli Cosulich for its 8,200m³ Alice Cosulich LNG bunkering vessel.
7 June Royal Caribbean to test biofuel on two ships US cruise ship operator Royal Caribbean will test a biofuel blend in two of its ships as part of its research on using alternative marine fuels.
7 June Monjasa's total CO2 emissions rose in 2022 Total direct CO2 equivalent emissions put out by Danish marine fuel and trading company Monjasa rose between 2021 and 2022, according to its 2022 responsibility report.
7 June VLGC owner Avance Gas enters MGC market Oslo-listed shipowner Avance Gas has purchased two newbuild LPG/ammonia vessels and entered the midsize gas carrier (MGC) market.
6 June Stena mulls sale of LNG assets Swedish shipping firm Stena is considering selling some or all of its LNG assets.
6 June X-Press Feeders orders six methanol-fuelled ships Singapore-based shipping company X-Press Feeders has ordered six 1,250TEU methanol dual-fuelled containerships.
6 June Ardmore orders 3 more CO2 capture units to MR tankers Ireland-based shipping company Ardmore Shipping will retrofit three of its Medium Range (MR) tankers with CO2 capture systems.
6 June China biodiesel sector responds to EU policy proposals Chinese biodiesel stakeholders have responded to calls from European waste-based and advanced biofuels association (Ewaba) for policy measures to address stronger Chinese biodiesel exports to the EU.
6 June WinGD partners with Mitsubishi on ammonia engines Swiss marine power company Winterthur Gas and Diesel (WinGD) has partnered with Japanese shipbuilder Mitsubishi Shipbuilding to develop ammonia-fuelled vessels.
5 June Norway's Stena mulls sale of LNG assets Norwegian shipping firm Stena Power is considering selling some or all of its LNG assets.
5 June Biofuels use in shipping has limitations: DNV Biofuels have the potential to contribute significantly to reducing carbon emissions in shipping because of their flexibility as a "drop-in fuel", but they are "unlikely to be the only solution to shipping's goal of transitioning to zero [greenhouse gas] GHG emissions in the future", according to marine certification society DNV.
5 June Singapore, Australia seek shipping corridor Singapore and Australia have opened discussions to establish a green shipping corridor by 2025.
5 June EU investigates allegations of biofuels fraud The European Commission today said it is investigating allegations of "possible fraud" related to biofuel imports from China into the EU, having received reports from a member state.
5 June Industry earmarks €18bn in biomethane investments: EBA Industry stakeholders have set aside a first tranche of €18bn ($19.2bn) in investments to scale up biomethane production in Europe, according to the first investment outlook by industry association EBA.
Conventional marine fuels
9 June US increases European diesel market share The US has been providing more than 10pc of Europe's diesel imports since the start of May, up from around 5pc last year and 7-8pc in the opening months of this year. Cargoes have probably been freed up by Russian sellers taking around half of the US' previous market share in Brazil.
9 June Asian HSFO flips into contango on lack of summer demand Singapore 180cst high-sulphur fuel oil (HSFO) markets have flipped into contango mainly as typical South Asian summer utility demand has failed to materialise, market participants said.
9 June Chinese prices signal higher gasoline, diesel exports Chinese spot diesel prices have fallen to their lowest since last year's lockdown even as international prices rally — increasing the likelihood of higher exports.
9 June Slow demand weighs on Japan's April bonded bunker sales Japan's bonded marine fuel sales fell in April, pressured by weaker delivery demand from domestic shipowners and the spot market.
9 June Japan's Tokyo VLSFO supplies tighten on lower stocks Very low-sulphur fuel oil (VLSFO) deliveries in Japan's Tokyo bay area tightened, pressured by lower stocks because of refinery turnarounds.
8 June Low Turkish, Greek diesel exports tighten Europe supply Turkish and Greek diesel cargo offers have dwindled over recent weeks, according to market participants, further stoking diesel supply tightness in the Mediterranean market.
8 June Oman's Duqm refinery offers fuel oil, naphtha Oman's 230,000 b/d Duqm refinery has offered fuel oil and a naphtha cargo as it starts up, although residual fuel offers should taper off as downstream units come on line, said market participants.
8 June UAE, Saudi May fuel oil imports from Russia fall 35pc The UAE's and Saudi Arabia's imports of Russia-origin fuel oil fell by nearly 35pc in May from April, reflecting spring maintenance at Russian refineries.
7 June Brazil diesel imports fall further in May Brazil diesel imports fell for the second consecutive month in May amid a growing preference for domestic output after state-controlled Petrobras reduced its wholesale prices on 16 May.
7 June China raises oil product exports in May on huge quotas China's oil product exports jumped to 4.89mn t in May, sharply up on the month and year on year and higher than market expectations, after huge quotas were issued in the month.
7 June Peninsula to supply bunker fuels in Egypt Marine fuel supplier Peninsula Petroleum has been awarded a bunker supply licence for Mediterranean ports by the Egyptian government.
7 June World Bank lifts Russia outlook The World Bank has significantly upgraded its outlook for the Russian economy this year, largely because of continuing energy exports.
5 June Lake Charles refinery shut 1-2 months Calcasieu Refining's 135,000 b/d Lake Charles, Louisiana, refinery may be closed for up to two months after a 3 June lightning strike caused a naphtha tank fire.
5 June Afipsky refinery resumes normal operations Independent refiner Forteinvest is resuming normal operations at its 120,000 b/d Afipsky plant ...
5 June NWE diesel price spreads point to tighter supply Northwest European diesel premiums to crude, jet fuel and intermediate feedstocks all hit their highest in more than a month last week, as did the backwardation structure in the forward curve, affirming indications from traders that supply is substantially tightening.
Related news posts
Aug wildfires in Brazilian state surge eightfold
Aug wildfires in Brazilian state surge eightfold
Sao Paulo, 26 September (Argus) — Fires in Sao Paulo, Brazil's most populous state, increased eightfold in August from the same month last year, an "alarming rate" amid extreme climate conditions that harm the sugarcane industry, sector associations said. The state had 11,628 fire outbreaks last month, more than triple the historic average of 3,550. Nearly half of the fires took place on 23 August alone, according to data from industry association Canaoeste and fire monitoring network GMG Ambiental. Fires hit 658,600 hectares. The town of Pitangueira had the most blazes, at 354. Altinopolis and Sertaozinho came in second and third, with 252 and 296, respectively. Nearly all of the most affected towns have high production of sugarcane. The groups highlighted that 20-24 August fires happened as low humidity, high temperatures and strong winds put Sao Paulo in "extreme risk" for wildfires. The data was shown in a meeting with several industry representatives, such as Canoeste, Unica and Orplana. The groups added that sugarcane producers were not responsible for the fires nor were benefiting from them, defending themselves from accusations that they could be lighting fires to accelerate harvesting — an old common practice supposedly abolished. By Maria Ligia Barros Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Gulf oil shut-ins drop as Helene nears landfall
US Gulf oil shut-ins drop as Helene nears landfall
New York, 26 September (Argus) — US Gulf of Mexico oil production shut-in levels fell today as Hurricane Helene bore down on Florida's west coast as a category 3 storm, bringing the threat of dangerous storm surge and winds. Around 441,923 b/d of US offshore oil output, or 25pc, was off line as of 12:30pm ET, according to the Bureau of Safety and Environmental Enforcement (BSEE). That is down from 29pc on Wednesday as the eastern Gulf path of the storm took it farther away from most offshore production facilities. About 363.39mn cf/d of natural gas production, or 20pc of the region's output, was also off line today, up from 17pc on Wednesday. Operators have evacuated workers from 27 offshore platforms. Helene was last about 145 miles west-southwest of Tampa, Florida, packing maximum winds of 120mph, according to a 4pm ET advisory from the US National Hurricane Center. Further intensification is likely and Helene could approach the coast at category 4 strength, with winds of at least 130mph. Landfall is expected near Port Leon on Apalachee Bay Thursday evening before Helene is forecast to turn northwestward and slow down over the Tennessee Valley on Friday and into the weekend. Earlier this week, offshore operators including BP, Equinor and Chevron took the precaution of suspending some operations and evacuating workers from offshore facilities in advance of the hurricane. Some facilities have since started back up as the hurricane's track shifted away from the main oil and gas hub in the region. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
New York picks WCI for carbon market platform
New York picks WCI for carbon market platform
New York, 26 September (Argus) — New York state will use the Western Climate Initiative (WCI) platform when administering its economy-wide carbon market, the latest sign that regulators in the state are looking to align program elements with systems in other North American carbon markets. Regulators from Quebec and New York announced the agreement on Wednesday at the International Emissions Trading Association's North American Climate Summit, an event on the sidelines of the UN General Assembly and Climate Week NYC. After a competitive process to select a platform for its market, New York state reached a deal this week to lean on the WCI for its "market registry platform, the auction platform, and financial services", New York State Department of Environmental Conservation deputy commissioner Jon Binder said. The WCI nonprofit provides the market infrastructure for California and Quebec's linked carbon market, as well as for a similar program in Washington state where regulators are weighing a potential linkage with the other two. Any eventual linkage with New York's program, which could see compliance obligations start in 2026, would be made easier by all the jurisdictions utilizing the same system for administering their respective programs. The decision does not "necessarily mean these programs are linking," but New York is "happy to keep those conversations going in that regard," Binder said. Nova Scotia, which wound down its cap-and-trade program last year, used the WCI platform for auctions without linking its programs with any other jurisdictions. "It doesn't mean that New York will link with us," said Jean-Yves Benoit, chair of the WCI board and the director general of carbon regulation and emissions data at Quebec's environment ministry. "Although I would be very happy if we issue a joint press release next year saying that." By Cole Martin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil's drought: Northern rivers still dropping
Brazil's drought: Northern rivers still dropping
Sao Paulo, 26 September (Argus) — The worst drought in Brazil's history continues to reduce river levels in the Northern Arc region, hampering navigation on rivers that are used as waterways and are important routes to transport grains and fertilizers. Madeira waterway The waterway links Rondonia state's capital Porto Velho to the Itacoatiara port, in Amazonas state. Itacoatiara port is expected to receive around 371,435 metric tonnes (t) of fertilizers in September, according to line up data from shipping agency Unimar. Status: The situation is most critical in the Madeira waterway, the second largest in the northern region, in Porto Velho. The state's ports and waterways authority (Soph) halted operations there on 23 September because the Madeira River's depth at the port reached 25cm (9.8in), the lowest since monitoring began in 1967. The Madeira River depth in Porto Velho increased to 34cm on 26 September, according to monitoring data from the Brazilian Geological Survey (SGB). Amazonas waterway It is the main waterway in Brazil's north, handling around 65pc of the region's cargo, according to the national transportation and infrastructure department (Dnit). It links Amazonas' capital Manaus to Para's capital Belem. Status: The Negro River has also been falling. The depth was at almost 13.88m at the SGB monitoring point in Manaus on 26 September — an extreme drought level and very close to the historic low of 13.64m recorded in 2023. Tapajos waterway It is an important waterway to move production from Mato Grosso state's northern area, with the Santarem port, in Para state, as a destination. The Santarem port handled nearly 4mn t of cargo in 2023, with fertilizers accounting for 578,630t, according to the Para port authority. Status: The Tapajos-Teles Pires waterway is also facing a dire situation. The national water and sanitation agency ANA declared a water shortage on the Tapajos River on 23 September. Drier weather than usual has dropped the levels of Tapajos, especially in the stretch between Itaituba and Santarem cities, in Para state, where flows are below the minimum levels observed in history. The depth of the Tapajos River at the Itaituba monitoring point, where the transfer point for the Miritituba waterway is located, was at 92cm on 26 September, below the record low of 132cm, according to SBG data. At the Santarem monitoring point, where the port of Santarem is located, the Tapajos River was at 74cm, a level considered dry. The historical minimum at the location is -55cm below the port's reference point. A level below zero does not mean the river is dry, but a negative reading indicates very low conditions. Tocantins-Araguaia waterway The Tocantins-Araguaia waterway encompasses the Araguaia and Tocantins rivers. It runs from the Barra do Garcas city, in Mato Grosso, onto the Araguaia River, or from Peixes city, in Tocantins state, onto the Tocantins River, to the port of Vila do Conde, in Para. Soybeans, corn, fertilizers, fuels, mineral oils and derivative products are transported via the northern waterways. Vila do Conde port handled 19.3mn t of cargo in 2023, according to Para port authority. Status: The SGB has two monitoring points on the Araguaia River. In the Nova Crixas city, in Goias state, the river was at 299cm, below the historical level of 310cm. In Sao Felix do Araguaia city, in Mato Grosso state, the river was at 257cm, a situation of extreme drought and close to the historical minimum level of 251cm. In September, the federal government announced investments of R500mn ($91.4mn) to carry out dredging work on stretches of rivers in Amazonas. Para's state government requested another R146mn to address problems caused by the drought. By João Petrini Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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