Idemitsu completes biofuel trial for bunkering vessels
Japanese refiner Idemitsu has completed a test of mixed biofuel using fatty acid methyl ester (Fame) for bunkering vessels in the Hokkaido area ahead of commercial use.
Idemitsu carried out a trial for 10 months starting in September 2023, using a 24pc Fame mixture of used cooking oil collected from convenience stores in Hokkaido with existing marine fuel oil. The mixed biofuel can be used in the same applications as existing marine fuel oil without any changes to equipment specifications or operating conditions in cold climates, Idemitsu said.
Mixed biofuel is able to cut 20pc of carbon dioxide compared with existing marine fuel oil. But there has been difficulty in using it in sub-zero temperatures, which results in solidification and oxidation.
Idemitsu will increase use of the bio-mixed marine fuel to areas other than Hokkaido, in its effort to achieve the country's 2050 decarbonisation goal.
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Roadblocks across Colombia cut LPG supply
Roadblocks across Colombia cut LPG supply
Bogota, 5 September (Argus) — Colombia's LPG shortages are worsening as a fourth day of protests and roadblocks over higher diesel prices are limiting production and distribution. Protesters have completely blocked roads to processing plants in the key Cusiana and Cupiagua fields, preventing trucks from moving supply. Those two fields along with the Ty Gas processing plant handle 41pc of the country's LPG supply, LPG association (Agremgas) director Sara Velez told Argus . Colombia uses about 60,000 metric tonnes (t)/month of LPG. The Cusiana plant that produces about 15,000t/month of LPG is flaring 100t/d of LPG that cannot be transported, Velez said. "If Cusiana is unable to move out the LPG, it may force it to shut in, affecting natural gas as well," Velez said. Blockades are also preventing LPG produced at the 250,000 b/d Barrancabermeja and the 200,000 b/d Cartagena refineries from reaching distributors. The refineries produce 24pc of the country's LPG supply, equivalent to 14,400t/month. Adding to troubles, multiple rebel attacks have put sections of the country's 220,000 b/d Cano Limon-Covenas and the 120,000 b/d Bicentenario crude pipelines out of service for repairs, restricting crude supply to the refineries. The smaller LPG field of Capacho controlled by Canadian oil company Parex shut in 5,000 b/d of oil equivalent (boe/d), or about 10pc of its Colombian output. That reduced LPG supplies to the Arauca department, the LPG association added. The departments of Caqueta, Cundinamarca and Valle del Cauca have inventories for four days. Another 28 departments have LPG inventory for one or two days. Velez has called on the government to create a safe corridor to help LPG reach consumers. The LPG shortage is also affecting industries. Fenavi, the country's poultry association, consumes 42mn kg/yr of LPG, which is equivalent to state-controlled Ecopetrol's monthly LPG production. The LPG is used to warm the poultry, but the association also said that blockades have also cut supplies of feed and could put the chickens at risk of starvation. The country produces 1.8mn tonnes/yr of chickens and 1.6bn eggs/yr. In Colombia 1.2mn families already still cook with wood, and the current shortage will likely increase that number. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Gold Standard releases two new shipping methodologies
Gold Standard releases two new shipping methodologies
London, 4 September (Argus) — Carbon registry Gold Standard has launched its Methodology for Reducing Methane Emissions from Combustion Engine Exhaust and its Methodology for Marine Fuels and Bio Bunkers, aimed at reducing the environmental impact of shipping operations. The two new methodologies will add to Gold Standard's existing Retrofit Energy Efficiency Measures in Shipping methodology and Methodology for Emission Reduction by Shore-side or Offshore Electricity Supply System. The Methodology for Marine Fuels and Bio Bunkers was developed by biofuels trading firm Alcom, and will serve as a guideline for obtaining carbon credits from the use of marine biodiesel blends. The methodology currently only applies to marine biodiesel blends comprising used cooking oil methyl ester (Ucome), with a scope covering biofuel production to be used within the maritime industry across all sea vessel types and covering the entire chain of emissions on a well-to-wake basis. Only the biofuel component that has been loaded on to the vessel and blended with fossil fuels can be eligible for carbon credits under this methodology. Gold Standard's Methodology for Reducing Methane Emissions from Combustion Engine Exhaust was developed in partnership with consulting group Fremco and technology company Daphne Technology. The methodology aims to reduce methane emissions stemming from maritime and stationary land-based internal combustion engines that utilise natural gas or other methane-rich fuels. It will also mandate real-time measurements before and after the abatement system to ensure "robust monitoring of emission reductions". By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
US Coast guard restricts lower Mississippi drafts
US Coast guard restricts lower Mississippi drafts
Houston, 3 September (Argus) — The US Coast Guard (USGC) set new towing and draft restrictions for the lower Mississippi River on 31 August, as water levels continue to decline. For southbound traffic from Tiptonville, Tennessee, to near Greenville, Mississippi, barge drafts must remain under 10.5ft and no more than six barges wide, according to the USGC. From Greenville to Tunica, Mississippi, southbound barge drafts must be under 10ft. Boats can tow six barges wide, but no more than four of those barges can be loaded. Northbound movement from Tunica to Tiptonville must keep drafts below 10ft and cannot be more than six barges wide and no more than four barges loaded. These new restrictions arrived five days after the previous draft restriction issued by the USGC. Memphis, Tennessee, water levels fell below the low water threshold of -5ft over the holiday weekend, at nearly -6ft as of 3 September according to the National Weather Service (NWS). As many as six other points on the lower Mississippi River are at their low water thresholds with others expected to reach their thresholds this week. Low water has already spurred an increase in southbound tariff values, which will likely be exacerbated as US crop harvests progress. The next 48hrs in the Memphis area is forecast to receive no rain, while the southern half of Mississippi and most of Louisiana may see 0.5-2 inches of rainfall, according to NWS. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Nigeria's Dangote refinery starts producing gasoline
Nigeria's Dangote refinery starts producing gasoline
Lagos, 3 September (Argus) — Nigeria's 650,000 b/d Dangote refinery has started producing gasoline, an important milestone for a country that has long been reliant on imports to meet its road fuel demand. It will not only transform the Nigerian gasoline market but the broader market across sub-Saharan Africa, Dangote Group's chief executive Aliko Dangote told local TV network Arise News today. The quality of the gasoline matches specifications in the US, he said, without elaborating. The start of gasoline output from Nigeria's newest and largest refinery coincides with an agreement between Dangote and state-owned oil producer NNPC. The exact terms have not been made public, but Nigeria's downstream regulator NMDPRA said Dangote will initially supply 25mn litres/d (160,000 b/d) of gasoline to the domestic market in September, rising to 30mn l/d from October, and that NNPC will start selling crude to Dangote in local currency rather than in dollars. NMDPRA did not specify when the crude sales in naira will begin, but the office of Nigeria's coordinating minister of the economy said last month they will start on 1 October. The Nigerian government vaguely outlined a plan for NNPC to swap crude with Dangote for gasoline on 29 July, presaging today's agreement. Crude and product sales would be denominated in dollars, reflecting international market prices, but settled in the equivalent local currency amounts, the government suggested at the time. It later said that a fully fledged programme starting in September had been worked out with the Dangote refinery. At full capacity, Dangote's gasoline production will more than cover Nigerian demand. Dangote's latest estimate for Nigeria's gasoline demand is 33mn l/d, down from a previous projection in October last year of 45mn l/d. Dangote's latest forecast is to produce 57mn l/d of gasoline at full capacity, up from a 53mn l/d target it gave last year. The company is still some way off reaching capacity though. Argus tracking shows the refinery received a little under 185,000 b/d of crude in August , down from 280,000 b/d in July and 350,000 b/d in June. Up until now, NNPC has been Nigeria's sole supplier of gasoline almost without a break since 2017, relying on imports to meet all of the country's demand. But with today's agreement, the company appears set to substitute imports with supply from Dangote. Replacing imports will cut national demand for foreign exchange, helping to stabilise the naira and bring down inflation, according to Dangote. NNPC supplied about 44mn l/d of imported gasoline to the domestic market in the final quarter of last year but cut supply to 35mn l/d in January-July this year and to just 30mn l/d in August, a source said. The decline has led to long queues at service stations in Nigerian cities for the past month. NNPC admitted recently that it owes "significant debt" to gasoline suppliers and that the "financial strain has placed considerable pressure on the company and poses a threat to the sustainability of fuel supply". 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.
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