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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

Japan’s coastal shipping volumes fall in 2024

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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UK should cut emissions by 87pc over 1990-2040: CCC


26/02/25
News
26/02/25

UK should cut emissions by 87pc over 1990-2040: CCC

London, 26 February (Argus) — The UK advisory Climate Change Committee (CCC) has outlined a "feasible" pathway towards a 87pc reduction in greenhouse gas (GHG) emissions by 2040 for the country, from a 1990 baseline. This is "an ambitious target", but it is deliverable, provided action is taken rapidly", the committee said today. Electrification and "low-carbon" electricity generation would make up 60pc of the emission reduction. The CCC recommends a level of 535mn t/CO2 equivalent (CO2e) for the UK's seventh carbon budget, over 2038-42, including emissions from international aviation and shipping. A carbon budget is a cap on emissions over a certain period. They are legally binding in the UK, with the CCC required to advise the government on the levels outlined. The energy transition "will make the UK economy more resilient, by reducing dependence on volatile international fossil fuel markets", the CCC said. It sees net energy imports falling from 867TWh in 2025 to 202TWh in 2050, with the cost of achieving net zero emissions at around 0.2pc of UK GDP annually on average. Upfront investments will lead to savings, it said. The CCC expects the private sector to contribute much of the investment needed, but noted that "policy is needed to provide confidence". Ramping up renewables "UK-based renewable energy provides the bulk of generation in a larger, future electricity system", the committee said. Its pathway envisages a six-fold increase in offshore wind, to 88GW of capacity in 2040 from 15GW in 2023, while onshore wind and solar power capacity reach 32GW and 82GW, respectively, by 2040. It notes the need for nuclear power, energy storage and grid upgrades. The committee also maps a scenario where the industrial sector — often high-emitting and difficult to decarbonise — uses electricity to meet 61pc of its energy demand, "up from around 26pc today". This would allow "UK manufacturers to benefit from global demand for low-carbon goods", the CCC said. For shipping and aviation, the CCC sees a role for "low-carbon fuels", including hydrogen and bioenergy. But the latter is "constrained by the availability of sustainable sources", while the use of hydrogen is limited, the committee said. The fuel has no role in heating buildings and "only a very niche, if any, role in surface transport". Carbon removals plays a role in emission reduction, but carbon capture and storage (CCS) "is limited to sectors where there are few, or no, alternatives". CCS could be used in industrial sectors or alongside hydrogen, it noted. The CCC saw a role for bioenergy with CCS, and direct air capture, although all carbon capture technology would require developing CO2 transport and storage infrastructure and finalise business models, it said. It also flagged the need for nature-based carbon sequestration, such as new woodlands and peatland restoration. The proportion of electric vehicles (EVs) significantly increases in the committee's pathway, to three-quarters of cars and vans and almost two-thirds of heavy goods vehicles being electric by 2040 — up from 2.8pc of cars and 1.4pc of vans in 2023. The falling cost of batteries will allow EVs "to reach price parity with comparable [gasoline] and diesel cars between 2026 and 2028", the CCC said. The pathway has around half of UK homes using heat pumps by 2040, from 1pc in 2023. The UK government must now propose, by 30 June 2026, a level for the seventh carbon budget, which parliament will then approve or reject. The government has in recent months stuck to CCC advice, setting out a national climate plan which pledged an 81pc emissions cut by 2035 , in line with CCC recommendations. By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Trump's Canada, Mexico tariffs deadline looms


25/02/25
News
25/02/25

Trump's Canada, Mexico tariffs deadline looms

Washington, 25 February (Argus) — US president Donald Trump has given little indication on whether he will delay or implement his plan to impose stiff import duties on Canadian and Mexican energy commodities and other products on 4 March. Some market participants are hopeful for another extension or cancellation of Trump's executive order that would impose a 10pc tax on Canadian energy imports, a 25pc tariff on non-energy imports from Canada and a 25pc tariff on all imports from Mexico. The uncertainty over the implementation has had vast segments of the energy industry — oil and gas producers, refiners, pipeline operators, traders — bracing for potentially disruptive outcomes. The three governments are negotiating to avert a full-blown trade war, addressing Trump's pretext for imposing the tariffs — Mexico's and Canada's alleged unwillingness to cut flows of fentanyl and immigrants into the US. Trump and Canadian prime minister Justin Trudeau last spoke on 23 February, with the two leaders noting that the flow of fentanyl across the shared border had fallen in the preceding month. But Trump, speaking the following day, said that "the tariffs are going forward on time, on schedule". And on Tuesday, Trump repeated to reporters at the White House his previous off-the-cuff remarks about Canada becoming "the 51st US state". "We don't need their oil," Trump said. "We don't need their lumber." Even without the broad tariffs in place, trade disputes will pick up pace next month when Trump's 25pc tariff on all imported steel and aluminum goes into effect on 12 March. The imposition of tariffs after decades of free trade in energy across North America is expected to create legal uncertainty in contractual obligations related to the payment of tariffs and reporting requirements. The current US import duties on crude are set at 5.25¢/bl and 10.5¢/bl, depending on crude quality. The new tariff would be based on the value of the commodity — without specifying how that will be calculated and at what specific point during the transportation process. US government agencies are not expected to clarify the implementation details until Trump's executive order on tariffs goes into effect. US oil industry groups have lobbied the Trump administration to exempt energy imports from tariffs. Trump instead lowered the planned tariff on Canadian energy imports to 10pc, from the originally proposed 25pc. US lawmakers, including close Trump allies, have expressed concern about the potential impact of tariffs. But the Republican lawmakers have shied away from confronting Trump over the issue. "Texas' number one trading partner is Mexico, number two is Canada, so what happens will have an impact on us," US representative Randy Weber (R-Texas) said today at an event hosted by Politico. But Weber added that Texas governor Greg Abbott (R) is "on top of this stuff" and that "if it was going to be a problem for Texas, I think [Abbott] would have been either singing out loud, or he would have gone to talk to the president directly". Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US last year were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian producers also have expressed concern about the uncertain impact of tariffs on crude volumes trans-shipped through the US, either for exports to third country destinations from Gulf coast ports or transported on US pipelines to destinations in eastern Canada. India is a key destination for trans-shipped Canadian crude. Buyers in India loaded 150,000 b/d from the US ports last year, including around 40,000 b/d of trans-shipped Canadian heavy sour crude, data from oil analytics firms Vortexa and Kpler show. By Haik Gugarats and Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Deadline nears for Dutch marine fuel parallel claims


25/02/25
News
25/02/25

Deadline nears for Dutch marine fuel parallel claims

London, 25 February (Argus) — Shipowners bunkering in the Netherlands have just three days to register the required data to make a so-called "parallel claim" for use of advanced biodiesel blends last year under the EU's emissions trading system (ETS). But with the deadline fast approaching, it is still not certain if parallel claims can be applied across the board for 2024 emissions, according to the Dutch Emissions Authority (NEa). The legal basis for these claims within the scope of the ETS scope will be provided by an amendment to the Emissions Trading Regulation, NEa said. Until such an amendment has been ratified, no "rights can be derived" for parallel claims, it added. Market participants told Argus that the 28 February data entry deadline will apply primarily to Dutch-flagged vessels and international vessels that disembark in the Netherlands most frequently during a reporting year. Parallel claims refer to advanced fatty acid methyl ester (Fame) marine biodiesel blends bunkered in the Netherlands, which are eligible for both Dutch renewable HBE-G tickets and a zero CO2 emission factor under the EU ETS. HBE-G tickets are a class of Dutch renewable fuels units used by companies that bring liquid or gaseous fossil fuels into general circulation and are obligated to pay excise duty/energy tax on fuels. These tickets are typically obtained by the bunker fuel supplier, and the process would usually include submitting Proof of Sustainability (PoS) documentation. The shipowner buying advanced Fame marine biodiesel blends would typically not receive the PoS at the point of delivery. But PoS documentation is generally required for EU ETS purposes, including obtaining a zero CO2 emission factor for eligible biofuels. The Netherlands' Ministry of Infrastructure and Water Management has decided to allow parallel claims for maritime fuels, and the NEa said it communicated instructions on this to relevant bookers last month. But the uncertainty surrounding the application of parallel claims for 2024 could weigh on marine biodiesel demand in the Netherlands, where regional price dynamics have led to a shift in demand away from northwest Europe and towards Singapore. Prolonged uncertainty could further support demand in Singapore, where parallel claims would usually not be necessary under EU ETS and FuelEU Maritime regulations. The International Sustainability and Carbon Certification (ISCC) recently issued a framework for a Proof of Compliance (PoC) document, intended to address challenges arising from the unavailability of PoS documentation for downstream operators, such as airlines and shipowners. NEa said it expects a temporary solution such as the PoC to be available for compliance year 2025. In the longer run, the plan is for the Union database to facilitate claims, it said. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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India’s bitumen imports, consumption slip in 2024


25/02/25
News
25/02/25

India’s bitumen imports, consumption slip in 2024

Mumbai, 25 February (Argus) — India's bitumen consumption in 2024 fell by 4pc on the year, while imports fell by 16pc on the year, as national elections and delays in the disbursement of project funds by some state governments hampered project works. Consumption totalled 8.44mnt in 2024, down from a record high of 8.81mnt in 2023 , according to preliminary oil ministry data. Imports totalled 2.8mnt in 2024, down from 3.32mnt in 2023 , the data showed. State governments have been using the infrastructure funds for other verticals and subsidy schemes, said market participants, and this has delayed the disbursement of project funds. Imports also fell as higher outstanding payment receivables from contractors forced importers to not sell cargoes on a credit basis, but contractors were not ready to purchase on cash basis because of the fund crunch. "Inventories are adequate and demand for cargoes is good but we cannot sell on credit as payment outstanding is higher," a major Indian importer said, adding that they would be immediately sold out if they sell with a longer-than-usual credit period. Meanwhile, vessel-owning traders have been importing cargoes to avoid vessel idling costs. This has increased inventories in some parts of the country. "Demand is not that great, and tanks are high," a west coast India-based importer said. "We are selling on credit [to offload stocks], so the shipment turnaround time is less. [But] that doesn't mean it is all profitable, the margins are bad," the importer added. Some Middle East cargoes earmarked for southeast Asia were also redirected to India in the last quarter as the price arbitrage window was closed. This increased inventories for the short term, but this did not increase import volumes for the year as overall demand was weak, market participants added. Indian importers expect consumption in 2025 to be higher than last year, with some expecting it to surpass 2023 levels as there are projects pending. But this will be contingent on the timely disbursement of funds . Some market participants are expecting imports to surge this year as demand for imported cargoes is stronger because of competitive offers, compared to cargoes from state-controlled refiners. This could pressure refiners to cut production, which would in turn support imports, the participants added. Bitumen production rose by 1pc on the year in 2024 to 5.2mn t, from 5.13mn t in 2023. This is unlikely to change in 2025 as there will not be any capacity augmentation for bitumen, but producers are mulling output cuts and may instead import cargoes at a relatively cheaper levels from the Middle East, a source close to a state-controlled refinery told Argus . By Sathya Narayanan Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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