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India, Saudi Arabia plan two Indian refineries
India, Saudi Arabia plan two Indian refineries
Mumbai, 7 May (Argus) — India and Saudi Arabia are to collaborate on the development of two integrated refinery and petrochemical plants in India. The plan was announced after Indian prime minister Narendra Modi met Saudi counterpart Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 pledged to invest $100bn in India in several sectors including energy and petrochemicals. No further details have been provided but the projects could be Indian state-run BPCL's planned facility in Andhra Pradesh and oil firm ONGC's refinery project in Gujarat, according to industry participants. Plans for a 1.2mn b/d refinery in Ratnagiri alongside the UAE's Adnoc have been abandoned because of logistical and land acquisition challenges, industry participants say. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Spanish base oils under force majeure after power cut
Spanish base oils under force majeure after power cut
London, 7 May (Argus) — Spanish firm Repsol declared force majeure on its domestic base oil operations last week, the day after a massive power outage disrupted industrial infrastructure across the Iberian peninsula, the company told Argus today. Repsol has since resumed production at its Spanish base oil plants, but the force majeure remains in place. Its duration will depend on how successfully output can be ramped up and whether the base oil material meets quality specifications, the company said. The nationwide blackout disrupted operations at Repsol's 80,000 t/yr Group I unit in Puertollano and its 135,000 t/yr Group I and 630,000 t/yr Group II and III units in Cartagena. It shares the Cartagena units in a joint venture with South Korean producer SK Enmove. The power outage in Spain has further tightened already constrained global Group III supplies. Bahrain's state-owned Bapco is carrying out a 45-day turnaround at its 400,000 t/yr Group III unit in Sintra, and SK Enmove is poised to start maintenance at its 1.3mn t/yr Groiup III plant in Ulsan, South Korea in mid-May. Europe is a net importer of Group III product, with only 13pc of the region's estimated 7mn t/yr of nameplate base oil production capacity dedicated to the higher-quality grade. Tight supply, combined with seasonally high finished lubricant demand due to the spring oil change, is likely to continue to support Group III prices. By Christian Hotten & Gabriella Twining Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Asian airlines divert, cancel flights to avoid Pakistan
Asian airlines divert, cancel flights to avoid Pakistan
Singapore, 7 May (Argus) — Asian airlines have announced diversions or cancellation of flights to avoid the Pakistani airspace, against the backdrop of escalating tensions between India and Pakistan. Most regional airlines' flights have been avoiding the airspace above Pakistan and neighboring west India regions since 6 May, according to data from FlightRadar24. Just a handful of flights flew over Pakistan shortly after Pakistan's Airports Authority issued a safety notice to pilots, known as Notam, announcing the reopening of airspace over Lahore and Karachi on 7 May. Pakistan announced a 48-hour closure of its airspace on 6 May, suspending all domestic and international flights following India's attacks on nine targets in Pakistan . India's flag carrier Air India has cancelled all its flights to and from domestic stations including Jammu, Srinagar, Leh, Jodhpur, Amrisar, Bhuj, Jamnagar, Chandigarh and Rajkot, until at least noon of 7 May. Singapore Airlines Group's Singapore Airlines (SIA) and budget arm Scoot have also been avoiding Pakistani airspace and using alternative flight paths since 6 May, according to the group. Two major Taiwanese airlines also announced their protocols in response to the situation. Taiwan's Eva Air said on 7 May that flights to and from Europe region might be influenced because of the closure of Pakistan's airspace. Fellow Taiwanese airline China Airlines have also cancelled or diverted at least six flights between Taiwan and Europe since 6 May in response to the escalating tensions. Escalating conflicts could cause prolonged disruptions on flight schedules between the Middle East and Pakistan, as well as between Asia and Europe. This comes at a time when regional airlines are already negatively impacted by flight disruptions in the Middle East . Pakistan is a typical jet fuel importer in South Asia. The country has imported around 6,600 b/d jet fuel in the first quarter of 2025, according to Pakistan's Oil Companies Advisory Council (OCAC). Pakistan's state-owned PSO has a market share of 99pc of the country's jet fuel market. By Lu Yawen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US Group II base oil margins rise for 10th week
US Group II base oil margins rise for 10th week
Houston, 6 May (Argus) — US domestic Group II base oil margins rose over feedstocks in the week ended 2 May, marking the 10th consecutive week of increases on lower energy markets and firming base oil demand. The Argus US domestic spot Group II N100 premium to four-week average low-sulphur vacuum gasoil (VGO) rose to $1.41/USG, up from $1.35/USG last week. Margins remained above year-earlier totals of $1.03/USG. The Argus US domestic spot Group II N100 premium to four-week average US Gulf coast diesel was $1.14/USG, up from $1.09/USG last week. Margins remained above year-earlier totals of 89¢/USG. During the past 10 weeks, base oil margins over VGO have risen by 42¢/USG. Margins over diesel have risen 12 of the past 13 weeks and are up by 44¢/USG in that span. Group II N100 prices were steady during the week, while mid- and high-viscosity grade prices fell by 1¢/USG. There are fewer Group II spot volumes in the domestic market because a key refiner is currently down for a planned turnaround and another seller is not running at full rates. Spot demand is mixed and base oil prices continue to experience a firm ceiling because of steady prices for downstream finished lubricants. Four-week average VGO prices continued to slip on weaker crude values and lower-priced atmospheric tower bottoms (ATBs), an alternative feedstock option. Four-week VGO values fell by 6¢/USG during the week, while four-week diesel values fell by 5¢/USG. The low-sulphur VGO premium to four-week average WTI crude narrowed to $12.13/bl from $12.20/bl the week prior. By Karly Lamm Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
