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26/05/18

Iran says diplomacy, negotiations continue

Iran says diplomacy, negotiations continue

Dubai, 18 May (Argus) — Iran's foreign ministry has said negotiations with Washington aimed at ending the war are continuing, even as US President Donald Trump issues increasingly incendiary rhetoric towards Tehran. Trump last week described Tehran's response to a US plan to end the war was "totally unacceptable" and a "piece of garbage" that he did not finish reading. He said the ceasefire, which has been in place since 8 April, was "on life support." At the weekend, Trump issued new threats against Tehran, saying "the clock is ticking" and that Iran had "better get moving, FAST, or there won't be anything left of them." On Monday, Iran's foreign ministry spokesman Esmail Baghaei dismissed Washington's framing of the negotiations. "After we presented our 14-point plan, the American side raised its concerns. In return, we also raised our concerns," he said. "And last week, despite the American side publicly announcing that the plan was rejected, we still received a set of amendments via our Pakistani mediators." Iran's latest response to the US was sent on Sunday 17 May, he said, and "the process continues through Pakistan." Iran's nuclear activities remain the foremost sticking point between the sides, with Trump repeatedly insisting Iran cannot be allowed to have a nuclear weapon. Iranian state media on Sunday published five conditions the US has set for Iran to secure a deal, including the shuttering of all but one nuclear facilities, and the transfer of Iran's stockpile of highly enriched uranium to the US. Baghaei today would not be drawn on the US proposals, but reiterated Iran's right to enrich uranium is protected as a signatory to the non-proliferation treaty (NPT), and is therefore up for neither negotiation nor compromise. Planning for Hormuz The unresolved situation means shipping is still disrupted through the strait of Hormuz. Trump has over the past two months repeatedly claimed agreements with Iran that he said should restore at least some traffic through the strait. But little has changed since the start of the war, prompting Washington to impose last month a blockade of its own on vessels travelling to and from Iranian ports. Argus reported in April that Iran's parliament was discussing a bill to formalise and govern Tehran's oversight and management of traffic through the strait. At that point, the bill had secured the approval from parliament's national security council, but had not been brought to parliament. Speaking at the weekend, Ebrahim Azizi, head of parliament's national security council, said this framework "to manage traffic in the strait" had been prepared, and would "be unveiled soon." "Under this framework, only commercial vessels and parties co-operating with Iran can benefit from it," Azizi said. The route will be closed to operators of Project Freedom, he said, referring a US operation to support vessels stranded in the Mideast Gulf to exit through the strait. Speaking on Monday, Baghaei said Iran is "in continuous contact with Oman and other relevant countries" as it develops this new mechanism. Iranian and Omani experts met on the matter last week, he said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Hyosung TNC starts Vietnam bio-BDO supply


26/05/18
News
26/05/18

Hyosung TNC starts Vietnam bio-BDO supply

London, 18 May (Argus) — South Korean chemical producer Hyosung TNC, a subsidiary of Hyosung Group, has begun production of bio-based 1,4-butanediol (bio-BDO) at its site near Ho Chi Minh City in Vietnam, with a capacity of 50,000 t/yr. The site will be supplied with Brazilian sugarcane as a feedstock and uses fermentation technology from US company Geno, the company announced in a LinkedIn post on 16 May. Bio-BDO is chemically identical to fossil-fuel based BDO and can be easily substituted. BDO is used in the production of polyurethanes, as a chain-extender for some methylene diphenyl diisocyanate (MDI) systems and as an intermediate chemical for polyester polyols. It is also used in the manufacture of medicines, including antibiotics. The company noted that the 50,000 t/yr plant can be scaled up to 200,000 t/yr based on demand for bio-based intermediates. But the company has not specified how it plans to achieve this. The opening of the site follows bio-based chemical producer Qore, a joint venture between US firm Cargill and German operation Helm, opening its 66,000 t/yr bio-BDO site in Iowa, US , in July 2025. The Qore plant uses dent corn as a feedstock. The European Commission (EC) implemented anti-dumping duties on imports of both bio-based and fossil-fuel based BDO in February 2026 from the US, China and Saudi Arabia . There are currently no EU anti-dumping duties on imports of Vietnamese BDO. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Argentina's YPF seeks incentives for $25bn project


26/05/15
News
26/05/15

Argentina's YPF seeks incentives for $25bn project

Montevideo, 15 May (Argus) — Argentina's state-owned YPF has applied to the government's mechanism for large investments, Rigi, for upstream oil development, it said on Friday. The company submitted the request for $25bn, making it the largest Rigi application so far, for its LLL Oil project. The plan includes drilling 1,152 wells on five blocks in the Vaca Muerta unconventional formation in the southern Neuquen province to produce 240,000 b/d by 2032, and all related infrastructure. The production would be for export via the Vmos pipeline and export project. YPF is the leader of the Vmos project, which includes eight other partners. It includes a 437km (271-mile) pipeline, six storage tanks — each with a capacity for 120,000 m³ — and a new port facility in Punta Colorada, on the coast of the southern Rio Negro province. It will start transporting 180,000 b/d at the end of this year, increasing to 550,000 b/d in 2027. It will top off at 700,000 b/d toward the end of the decade. "This is the start of a new stage," YPF chief executive Horacio Marin on the social media platform X. "Everything that we have done so far cannot compare to what is coming in the next two years." Vaca Muerta holds 16bn bl of crude, according to the US Energy Information Administration. The Argentinian government has approved 13 Rigi projects so far, including Vmos, and will accept projects for evaluation through July 2027. It is evaluating 24 projects, including the new YPF project. The Rigi provides customs, exchange and tax stability for 30 years. Companies applying must invest a minimum of $200mn. By Lucien Chauvin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

Phillips 66 moves more crude under Jones Act waiver


26/05/15
News
26/05/15

Phillips 66 moves more crude under Jones Act waiver

Houston, 15 May (Argus) — US refiner Phillips 66 shipped crude from the US Gulf coast to the US east coast on a foreign-flagged ship in late April, marking at least the second time the refiner has utilized a Jones Act waiver for crude since the start of the waivers in March. The Aframax Front Altair discharged approximately 596,700 bl of West Texas Intermediate crude at the 258,500 b/d Bayway refinery in New Jersey on 13 May after loading it from a terminal in Beaumont, Texas on 29 April. Phillips 66 in early April used a foreign-flagged Panamax vessel to move Bakken crude on the same route taken by the Aframax, the likely first instance of the company utilizing a waiver. US president Donald Trump approved the Jones Act waivers on 17 March, easing domestic shipping requirements for US-US shipments to attempt to offset surging commodity prices caused by the US-Israel war with Iran. His administration has since extended the original 60-day waivers, set to conclude on 17 May, for an additional 90 days terminating on 16 August. The waivers allow shippers to transport crude, natural gas, natural gas liquids, fertilizer, coal and other energy-related products from one US port to another without using US-built, US-crewed and US-flagged ships, as the 1920 Jones Act requires. Demand for refined products shipments via Jones Act waiver deals has outstripped crude demand since the program's inception. Major US refineries are typically pipeline fed when the supply is already domestic, benefiting only in fringe cases where a seaborne shipment can bypass some obstacle in that delivery system or otherwise work out to a cheaper $/bl rate. But places like California and Hawaii, where refinery capacity is low, have demonstrated stronger comparative demand for Jones Act waiver shipments of refined products. This demand is set to rise after international clean tanker rates loading in the US Gulf coast collapsed from mid-April on an influx of displaced Pacific tonnage post-war. The time charter equivalent rate for a US Gulf coast-Caribbean voyage, which represents the return a shipowner might expect per day, dove from an all-time high of $116,300/day on 14 April to -$688/day on 14 May. The latter rate suggests vessel operators might lose money on this voyage at current rates, but that would be less of a loss than allowing the vessel to rack up operating costs while remaining uncontracted. By David Haydon Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

News

US Gulf VLGC rates hit record $305/t on war


26/05/15
News
26/05/15

US Gulf VLGC rates hit record $305/t on war

London, 15 May (Argus) — US Gulf very large gas carrier (VLGC) freight rates climbed to $305/t on the Houston-Chiba route this week, the highest since Argus began assessments in 2013. Demand has switched to the longer US Gulf-east Asia route to replace lost supply caused by the effective closure of the strait of Hormuz. This shift led to a rush of bookings for May-loading cargoes, resulting in higher demand for Panama Canal transit slots and rising costs there. Some VLGCs were redirected on the longer Cape of Good Hope route. The rush of bookings has depleted much of the available tonnage in the US Gulf, but demand for LPG remains high with India and China facing significant shortages because of the lost Mideast Gulf supply. Chartering activity has continued in the US Gulf, but the rush of May bookings has left charterers competing for a rapidly shrinking pool of tankers, pushing the rates up. The Houston-Chiba rate hit $305/t on 13 May, with two fixtures around that level. That is more than double pre-war levels of $147/t, having accelerated through $248/t in late April and $293/t last week. The vessel shortage reflects the much longer journeys, not increased demand for VLGCs, as the loss of Mideast Gulf supply has reduced global product availability. Around half of the 120 VLGCs that loaded in the US Gulf in April were routed via the Cape of Good Hope after Neopanamax slot auction prices hit $1.076mn on 29 April — the highest since May 2024 and roughly four times pre-conflict levels. The longer routing adds more than 20 days to voyage times compared with the Panama Canal passage, occupying vessels for longer and slashing available tonnage ahead of the June loading window. Fixing activity has fallen sharply as a result with charterers securing around 24 spot and time charter bookings from the US Gulf for June to date — around one-third of the 52 fixtures completed in May — with fewer than 20 confirmed by mid-May compared with more than 40 each in the two preceding months. Vessel scarcity is likely to persist. Houston-Chiba rates are being sustained largely by exporters with long-term product contracts in place rather than by spot demand for LPG, with US supply largely unprofitable in Asia-Pacific at the current price and freight rate. Charterers have responded by swapping or delaying shipments and utilising vessels on long-term deals where available, and some traders have re-let vessels rather than use them for exports. The spot market has reached a stand-off, with remaining June cargoes likely to be fixed above the last-done level. The Ras Tanura-Chiba rate also continued to rise on limited options for east of Suez fixtures, reflecting broader vessel scarcity across the market. The underlying demand pull stems from the redirection of Asian LPG buying toward the US Gulf. Global seaborne LPG exports remain around 600,000 b/d below pre-war levels, sustaining the switch toward long-haul US Gulf loadings that has absorbed fleet capacity and compressed June availability. Conditions in the Mideast Gulf remain uncertain and the timeline for any resumption of normal shipping operations is unclear. Further rate gains are possible while June cargoes remain uncovered, although charterer reluctance to engage above current levels may cap any further gains. By Harry Heath Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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