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GP Global sells bitumen assets, lines up storage sales

  • Market: Oil products
  • 05/03/21

Dubai-based commodity trading firm GP Global has sold its bitumen complex in Hamriyah, with its other UAE storage facilities lined up for sale as part of the company's debt restructuring plan, several market participants told Argus.

The Hamriyah bitumen plant, which includes a production unit and a 36,000t storage terminal for the heavy oil product used in road paving and industrial sectors, was sold to Dubai-based firm ARIA Commodities at a price indicated in the $10-20mn range.

ARIA Commodities has physical trading presence in grains, oilseeds, foodstuffs and petrochemicals.

GP Global officials declined to comment on the sale, while ARIA Commodities officials were unavailable for comment.

GP Global was forced into the restructuring drive by a failure last summer to win backing from some of its lenders, which left it short of cash.

The sale of the firm's 412,000m³ (2.6mn bl) Fujairah product storage terminal is now under discussion, with agreement likely to be reached by the end of April, market participants said.

The 204,000m³ Hamriyah product storage terminal, which handles a range of products including naphtha, pyrolysis oil, gasoil, MTBE, condensate, fuel oil, kerosine, base oil, bitumen and petrochemicals, is GP Global's another key asset in the UAE.

GP Global had yet to make significant progress by last November to sell key assets to help it stay afloat, but was at that time optimistic about talks with interested parties.

The firm still had tentative plans until late last year to nearly double capacity at its 7,600 b/d Sharjah refinery — which produces naphtha, gasoil, fuel oil and light cycle oil — to 14,000 b/d, although that investment was contingent on its restructuring and asset sales.

The firm completed its purchase of a 50,000 t/yr lubricant blending plant from Nigeria's Grand Petroleum in April last year, subsequently investing in upgrading the facility to meet international quality standards.

By Keyvan Hedvat and Elshan Aliyev


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26/02/25

BP raises oil and gas output goal in strategy reset

BP raises oil and gas output goal in strategy reset

London, 26 February (Argus) — BP has raised its 2030 target for oil and gas production to 2.3mn-2.5mn b/d of oil equivalent (boe/d) as part of a "fundamental reset" of its strategy that also entails a cut in its renewable energy investments. The 2.3mn-2.5mn boe/d goal leaves little scope for substantial output growth given that BP produced 2.36mn boe/d last year. But it is a stark change from the company's previous target to reduce production to 2mn boe/d by 2030. BP intends to dial down its overall capital expenditure (capex) to $13bn-15bn/yr through to 2027 and to sell $20bn of assets during that time to help strengthen its balance sheet. Its previous plan was to spend $14bn-18bn/yr in 2024-30. The capex cut will be driven by lower spending on renewables, while investment on oil and gas is targeted at $10bn/yr, a slight increase on the $9.8bn it spent last year. BP plans to launch 10 major new upstream projects by the end of 2027, with a further 8-10 starting up by the end of 2030. It also plans to strengthen its upstream portfolio by "reloading [its] exploration hopper". BP expects investment in what it calls its "transition" businesses to be $1.5bn-$2.5bn/yr through to 2027 — around $5bn/yr lower than previous guidance. The company plans to make selective investments in biogas, biofuels and electric vehicle charging businesses and a more focused investment in hydrogen and carbon capture and storage (CCS) assets, alongside a capital-light partnership approach to renewable power. BP announced in December last year a new joint venture with Japanese utility Jera to house the two companies' offshore wind assets, saving it an estimated $4bn in capex until the end of the decade. Along with the higher oil and gas output target and the lower energy transition spend, BP has amended its emissions reduction goal. It now expects its scope 1 and 2 emissions to be 45pc-50pc lower in 2030 than in 2019. Previously, it was targeting a 50pc cut. Downstream assets will contribute to BP's $20bn divestment target. The company has already put its 257,800 b/d Gelsenkirchen refinery in Germany up for sale , it will carry out a strategic review of its Castrol global lubricants business and it plans to bring in a partner for its Lightsource BP solar business. BP expects proceeds from the divestment programme, savings from the reduced capex and the boost to cash flow from higher oil and gas production to help it cut its net debt to $14bn-$18bn by the end of 2027, from $23bn at the end of 2024. At the same time the company plans to allocate 30pc-40pc of its operating cash flow to shareholder returns, including a dividend that it sees increasing by more than 4pc/yr. Investment bank RBC Capital Markets noted that BP's new strategy is line with expectations. "To us, much of the release looks to be BP making the right calls for the long term, but it may not please investors today," the bank said. BP's share price was down by 0.9pc just before lunchtime in London. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Saudi gasoline exports at a six-year high in 2024


26/02/25
News
26/02/25

Saudi gasoline exports at a six-year high in 2024

Dubai, 26 February (Argus) — Saudi Arabia's gasoline exports in 2024 were the highest in more than six years, as refinery upgrades and domestic demand below pre-Covid levels left more supplies available. Latest figures from the Joint Organisations Data Initiative (Jodi) put show Saudi gasoline exports at an average of 280,500 b/d in 2024, the highest since 413,000 b/d in 2018. The rise comes as Saudi gasoline demand still lags pre-pandemic 2019 levels, mainly because of higher retail prices. Demand averaged 514,000 b/d in 2024, well below 2019's 550,000 b/d and only 1pc above the 509,000 b/d in 2023. Higher retail prices have long been a concern in Riyadh, which increased the price of local refined products in 2016 and 2018 as part of a wider effort to gradually eliminate subsidies in the energy sector. In 2021, the country put a cap on prices to soften the effects of rising living costs and in hope of stimulating domestic fuel demand and economic activity. Retail gasoline prices in February to date are at the same level as June 2021, at 2.18 riyals/l ($0.58/l) for 91R and SR2.33/l for 95R gasoline, they are higher than 2019 average of $0.55/l. The demand weakness was compounded by digitalisation of several government services in Saudi Arabia since the pandemic, according to FGE analyst Palash Jain. "There are reports that indicate that transactions are increasingly shifting online and citizens are no longer required to be physically present to avail certain government services," Jain said. Saudi gasoline demand could slow further as the country expands production of electric vehicles (EVs), part of a strategy to diversify its economy away from oil. Saudi Arabia has a target of achieving 30pc EV adoption by 2030 and the country's PIF sovereign wealth fund has a 60pc stake in EV manufacturer Lucid Motors, which aims to build 150,000 vehicles a year at it factory in the country. Local refineries ramp up Gasoline output from Saudi refineries soared to a record 650,500 b/d in 2024, compared with 614,500 b/d in 2023 and 630,500 b/d in 2022, driven by higher output from the 400,000 b/d Jizan refinery on the Red Sea coast. Saudi refinery crude runs rose by 3pc on the year to a two-year high of around 2.59mn b/d in 2024, according to Jodi. Singapore emerged as a notable destination for Saudi gasoline cargoes, taking 23,000 b/d in 2024 after just 2,500 b/d in 2023, according to preliminary data from oil analytics firm Vortexa. Gasoline cargoes that loaded from Jizan were increasingly heading to Singapore in the fourth quarter of 2024. State-controlled Aramco has been replacing Arab Medium crude with a mixture of Arab Light and Arab Heavy as feedstock for Jizah, which could in theory increase gasoline yield. The UAE and Oman were among the top buyers of Saudi gasoline in 2024, with around 20pc and 13pc of the overall. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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South Korean gasoline stocks hit record highs in Jan


26/02/25
News
26/02/25

South Korean gasoline stocks hit record highs in Jan

Singapore, 26 February (Argus) — South Korean gasoline stock levels hit record highs in January, according to Korean Monthly Oil Statistics (KMOS) data. Gasoline stock levels stood at 7.69mn bl on January 2025, up by 26pc from average levels in December and 32pc higher on the year, according to KMOS. This was also above average stock levels of 5.8mn-6.1mn bl/month over 2022-24. The reason for the surge in gasoline stock levels could not be confirmed, but it could be a combination of lower export volumes and a drop in domestic consumption. Domestic gasoline consumption was at 6.98mn bl in January, down by 15pc on the month and by 13pc on the year, according to KMOS. Export volumes also fell by 9.3pc on the month and by 14pc on the year to 9.33mn bl in January. By Aldric Chew Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Australia's Rio Tinto completes Pilbara biofuel trial


26/02/25
News
26/02/25

Australia's Rio Tinto completes Pilbara biofuel trial

Sydney, 26 February (Argus) — Australia's Rio Tinto has completed a four-week trial across January and February using renewable diesel, to help decarbonise its Pilbara iron ore operations. Rio Tinto used 10mn litres of renewable diesel made from used cooking oil for the trial. The renewable diesel was sourced from Neste's Singapore biorefinery and shipped by Viva Energy to the Parker Point fuel terminal in Dampier where it was then blended with 80pc diesel. The blend was then distributed for use in rail, marine, blasting, haul trucks, surface mining equipment and light vehicles across Rio Tinto's Pilbara mining operations. "Through this trial with Neste and Viva Energy, we've gained valuable insights into how renewable diesel can help bridge the gap to widespread electrification, as well as for circumstances where electrification may not be suitable," said Rio Tinto's managing director for rail, port and core services, Richard Cohen. The trial was the first for Rio Tinto in Australia, while the company has already used renewable diesel at its Boron and Kennecott operations in the US, where 11pc of its total global fossil diesel consumption has been replaced with renewable diesel. Rio Tinto is also developing a Pongamia seed farm in Northern Queensland as part of a biofuels pilot study to explore the potential of seed oil as a feedstock for renewable diesel output. By Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Japan’s coastal shipping volumes fall in 2024


26/02/25
News
26/02/25

Japan’s coastal shipping volumes fall in 2024

Osaka, 26 February (Argus) — Volumes transported on coastal vessels in Japan fell in 2024 because of a decline in shipments of automobiles, cement and oil and chemical products. Shipping volumes on cargo ships in the domestic coastal market fell by 2.8pc on the year to around 198mn t in 2024, according to data from the Japan Federation of Coastal Shipping Associations. The decline partly reflected a drop in vehicle output in the wake of scandals over faulty safety data. Shipping volumes in the automobile sector totalled 44mn t last year, down by 11pc from 2023. Transportation of cement and feedstock materials, such as limestone, fell by 8pc to 25mn t and by 3pc to 45.6mn t respectively over the same period. But deliveries of coal and coke rose by 12pc to 18.7mn t, as coal demand from the power sector rebounded after maintenance work a year earlier. Transportation volumes of steel products increased by 4.3pc to 36.4mn t over the period. Operations of coastal tankers also slowed last year. A series of technical problems at domestic refiners created alternative demand for refined products, which would typically lead to an increase in coastal shipping. But the longer voyages needed to deliver such products to distant refineries resulted in a drop in shipping utilisation as a whole, the association said. Shipments of lighter oil products, such as gasoline, kerosine, jet fuel and diesel, fell by 2pc on the year to 58.7mn kl (1mn b/d) in 2024. Volumes fell as high prices for gasoline and kerosine capped demand for the fuels, despite government subsidies. An expansion of renewable energy also weighed on oil demand. Tanker deliveries of fuel oil fell by 10pc to 22.5mn kl, pressured by lower demand from the power sector. Shipments of chemical products dropped by 8pc to 7.2mn kl last year, while deliveries of high-pressured liquids such as LPG and vinyl chloride monomer remained steady at around 6mn t. The survey covered 58 operators that together account for more than 80pc of total coastal shipping volumes, the association said. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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