Marine fuel global weekly market update

  • Market: Biofuels, E-fuels, Emissions, Fertilizers, Hydrogen, Natural gas, Oil products, Petrochemicals
  • 05/06/23

A weekly Argus news digest of interest to the conventional and alternative marine fuel markets. To speak to our team about accessing the stories below and access to Argus Marine Fuels, please contact: marinefuels@argusmedia.com.

Alternative marine fuels

2 June Q&A: Brazilian ethanol output may boost low-cost H2 Brazil's mines and energy ministry MME has reaffirmed its commitment to establish a legal framework for hydrogen production, which so far has just totatled about…

1 June Shell urges more action to decarbonize shipping sector Shipping volumes and CO2 emissions both ended 2021 up by 6pc from when Shell published its initial shipping decarbonization report in...

1 June Danish supplier takes on methanol-ready bunker tanker Danish marine fuel supplier Bunker One said it is ready to supply methanol as an alternative bunker fuel to ships calling at the Scandinavian ports ...

1 June Braya's biofuel refinery gets C$86mn boost from feds The 130,000 b/d refinery in Come-by-Chance, Newfoundland and Labrador is getting up to a ...

1 June EU biofuel sector calls for measures on Chinese exports European waste-based and advanced biofuels association Ewaba is calling on the EU to introduce "bold measures" on products certification, as stronger ...

1 June Eni to supply Azimut Benetti Group with HVO Eni Sustainable Mobility said its HVO fuel can reduce emissions by up to 90pc compared with conventional fossil-based bunker fuels.

1 June Indonesia cuts 1H June palm export taxes, levies Indonesia has decreased export duties and levies on palm oil products for the first half of June, after the crude palm oil (CPO) reference price ...

1 June Shipowner TCT to buy methanol vessels Dutch shipowner Tune Chemical Tankers (TCT) has placed an order with Turkish shipbuilder Tersan Shipyard to buy up to four methanol-powered vessels.

31 May Total, Belgium's TES plan $2bn e-methane plant in US TotalEnergies and Belgian start-up Tree Energy Solutions (TES) are considering a US production plant to make synthetic methane by combining ...

31 May Container ship LNG bunkering to rise: MSI LNG as a bunker fuel will likely sell at about 40pc discount to very low-sulphur fuel oil (VLSFO) in 2024, according to ...

31 May Trade body presents guide to methanol as bunker fuel Methanol retains a higher energy density compared with other alternative marine fuels such as LNG and ammonia, making it a more…

31 May Grieg Maritime buys ammonia-ready vessels The ships will be able to run on conventional bunker fuels, but will have the flexibility to run on the alternative marine fuel, when it becomes ...

31 May Transatlantic Capesize rates drop 19pc today "Ultimately in the shipping market, everyone is a price taker, and therefore you just have to fix at the best rate in front of you," Grimes said.

30 May Western Canada could export low-c ammonia to Japan Canadian midstream operator Pembina agreed with Japanese trading firm Marubeni to export low-carbon ammonia from a ...

30 May Ocean Yield to acquire ammonia-ready bulk carriers Norway-based vessel owner Ocean Yield will acquire eight or nine ammonia-ready ...

30 May Neste uses co-processed fuel in HVO tanker shipments Finnish biofuel producer Neste has started fuelling tankers Suula and Kiisla with co-processed marine fuel to ...

30 May Brazil's Acelen eyes HVO, SAF export market Abu Dhabi state-owned Acelen, which owns Brazil's largest privately-owned oil refinery, plans to build a biorefinery in Bahia state that will produce hydrotreated vegetable oil (HVO) and ...

29 May China Merchants orders more LNG carriers Chinese shipowner China Merchant Energy Shipping (CMES) has ordered two LNG carriers from state-owned shipbuilder China State Shipbuilding's (CSSC) Dalian shipyard.

Conventional marine fuels

2 June Tight market supports HSFO margins in Europe Options for replacing fuel oil imports from Russia are limited at present, tightening supply, writes Hussein al-Khalisy London, 2 June (Argus) — High-sulphur fuel oil (HSFO) margins in northwest Europe are strengthening on ...

2 June Oversupply pressures Mideast Gulf gasoil Middle distillates are piling up in the Mideast Gulf as a stream of diverted Russian exports meets output from new refineries, depressing spot market values.

1 June USGC fuel oil stocks surge in May While the EIA does not cite grade, market participants had cited increased availabilities of both low-sulphur and high-sulphur fuel oil, as ...

1 June Pakistan's PRL offers rare fuel oil on lean demand Pakistan's state-owned marketer PSO, a major fuel oil importer, has also not bought any cargoes since October last year as ...

31 May Uniper exits UAE marine fuel trading business Uniper's 67,000 b/d Fujairah refinery was sold to a consortium comprising global trading firm Montfort, a major supplier of bunker-grade…

31 May Minerva supplies bunker fuels in Egypt Marine fuel supplier Minerva Bunkering has started bunker deliveries in Egypt, with 10 vessels already refuelled.

31 May Chinese oil stocks swell as exports slow Net fuel oil imports trebled from March to 300,000 b/d last month, as ...

31 May Stocks draw as diesel demand rises Chinese diesel stocks are finally starting to drop as ...

31 May Political uncertainty hits Ecuador transmission tender These fields largely use diesel and fuel oil to generate electricity.

31 May Japan temporarily shuts 1mn b/d refining capacity Lower runs also weighed on Eneos and Cosmo's profits ...

30 May Japan's bioethanol imports remain low Japan has reduced its bioethanol purchases this year, with ...

30 May Russian 1Q bunker sales up 21pc Bunker sales at the Russian Arctic Sea ports were up 13pc at ...

30 May Low Australian LR2 prices subdue SE Asian Aframax rates The lower bunker prices would save shipowners about $9,500 on their ballasting costs.

30 May Tsakos' 1Q profit grows on doubled rates Greece-based shipowner Tsakos Energy Navigation's earnings for its fleet more than ...

29 May Singapore's fuel oil tightness to ease slightly in June Singapore's average fuel oil inventories in May have fallen to multi-year lows on ...


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News
28/03/24

'Weeks, months' to reopen Baltimore waterway: professor

'Weeks, months' to reopen Baltimore waterway: professor

Houston, 28 March (Argus) — It could take weeks or even months to clear debris and reopen the waterway under the collapsed Francis Scott Key Bridge in Baltimore, Maryland, according to a engineering professor at the nearby Johns Hopkins University. As of Wednesday, there was no official timetable for the reopening of the Port of Baltimore after a major highway bridge over the Patapsco River was hit in the early hours of 26 March by a container ship and collapsed, with the debris and ship blocking the waterway. "I'd be shocked if it's weeks, but I don't think it'll take even a year" to clear the waterway, structural engineer and Johns Hopkins professor Benjamin Schafer said Wednesday. He expects the rebuild of the bridge to take significantly longer. "I've lived through quite a few civil infrastructure projects and they're rarely less than 10 years. So I think that's what we're looking at," Schafer said. He noted that it took five years to build the original Francis Scott Key Bridge and seven years to repair the Sunshine Skyway Bridge in Tampa Bay, Florida, after a similar collapse in 1980. Still, "this is definitely not a national supply chain crisis," John Hopkins operations management professor Tinglong Dai said Wednesday. "The effect will be mostly local, mostly minimal and mostly temporary." The bridge collapse and port closure is also unlikely to trigger a global supply chain crisis, he said. The Port of Baltimore is an important but "niche" port specializing in automobile imports and exports, Dai added. "The supply chain has evolved...I have already seen a lot of rerouting happening." Automakers started adjusting their supply routes away from the top port for US vehicle imports the day of the collapse, including General Motors, Ford and Mercedes-Benz. Baltimore is also a major port for coal exports, which may start to shift to terminals to the south in Hampton Roads, Virginia. Freight rates for ships that carry coal could see increases in global markets Other commodities like asphalt and caustic soda that move through the port will see challenges, while organic agriculture imports may see less problems due to seasonal flows. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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News

Baltimore probe includes potential contaminated fuel


28/03/24
News
28/03/24

Baltimore probe includes potential contaminated fuel

New York, 28 March (Argus) — Federal authorities are examining whether the containership that crashed into the Francis Scott Key Bridge in Baltimore, Maryland, was burning contaminated marine fuel at the time of the incident. The National Transportation Safety Board (NTSB) said it will collect a sample of the fuel on board the 116,851-dwt container vessel Dali as part of its investigation into why the ship lost power and hit the bridge support early on 26 March, taking down the span. "That sample will be taken, and we will analyze the quality, any sort of contaminants, we will look at viscosity," NTSB chair Jennifer Homendy said this week. "That will be part of our investigation." Shipboard power is generally generated by turbines connected to the same engines driving propulsion. There are a number of issues related to fuel that could have led to a loss of power on the ship, according to Wajdi Abdmessih, chief executive at Seahawk Services, a marine fuel testing company based in New Jersey. The fuel on the ship could have been contaminated, as was the case last year when contaminated very low-sulphur fuel oil was found on a number of ships fueld through a Houston, Texas, bunkering operation, or it could have been a compatibility issue with the vessel's engine, where the fuel was not optimized for the equipment. "If the vessel switches between different types of fuels, compatibility and stability issues could occur, which may cause a problem with the engine," Abdmessih said. "Unstable fuel could cause increased sludging and high sediment, which could clog the filter and cause fuel starvation and engine downturns." Singapore-based Synergy Marine Group, which manages Dali , said it is taking part of this investigation but declined to comment possible causes of the accident, including possible fuel contamination. The pilots on board the vessel lost control because of a loss of propulsion, according to the Maritime and Port Authority of Singapore (MPA), which is assisting in the investigation because Dali was sailing under the Singapore flag. An issue with the ship's propulsion and auxiliary machinery was discovered during its June 2023 inspection in San Antonio, Chile , according to Equasis, a vessel information database. The problem involved the vessel's gauges and thermometers, according to the data. Its most recent inspection was in September 2023, but there are no indications of issues from the inspection. The vessel's next inspection was due in June 2024, the MPA said. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Mosaic plant sustains minor damage from fire


28/03/24
News
28/03/24

Mosaic plant sustains minor damage from fire

Houston, 28 March (Argus) — Florida-based phosphate and potash fertilizer producer Mosaic anticipates limited damage to a production plant near Tampa and minimal disruption to operations in the coming weeks following a brushfire on Monday. The brushfire ignited Monday evening during routine maintenance near Mosaic's Riverview phosphate production facility and was initially contained before rekindling Tuesday morning because of heavy winds. The fire was fully under control by Tuesday afternoon, according to local first responders. Mosaic told Argus on Tuesday the fire was not considered a threat to the facility initially, but now expects the plant sustained "limited damage to ancillary operations" and the impact could last between four to six weeks. The Riverview plant has a production capacity of 1.8mn metric tonnes (t) of processed phosphate products, and produces 30,000 t/week, according to Mosaic. The facility was producing phosphates primarily for exports to Brazil at the time of the fire, the company added. Smoke was observed Monday from the fire as a result of foam retardants used by local fire officials to cool the high-density polyethylene pipes. Polyethylene gas piping is often used for natural gas distribution. Natural gas flows delivered to the plant fell slightly Wednesday at 2.42mn cf/d, down from 2.45mn cf/d on Monday, once the fire was extinguished, according to data from Florida Gas Transmission. Flows at the plant on Thursday rebounded to 2.45mn cf/d, in line with expectations that affected phosphate output at the plant should only be temporary. By Taylor Zavala Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Long-term contracts needed to stabilise gas prices: MET


28/03/24
News
28/03/24

Long-term contracts needed to stabilise gas prices: MET

London, 28 March (Argus) — Germany and Europe need more LNG and business-to-business long-term contracts to even out supply shocks and stabilise gas prices, even as demand is unlikely to reach historical heights again, chief executive of Swiss trading firm MET's German subsidiary Joerg Selbach-Roentgen told Argus . Long-term LNG contracts have a "stabilising effect" on prices when "all market participants know there is enough coming", Selbach-Roentgen said. He is not satisfied with the amount of long-term LNG supply contracted into Germany, arguing that stabilisation remains important even now that the market has "cooled down" after the price shocks of 2022. Long-term contracts are important for the standing of German industry, Selbach-Roentgen said — not to be reliant on spot cargoes is a matter of global competitiveness for the industrial gas market, he said. The chief executive called for more long-term contracts in other areas as well, such as for industrial offtakers, either fixed price or index-driven. Since long-term LNG contracts are concluded between wholesalers and producers, the latter need long-term planning security for their projects, which usually leads to terms of about 20 years. But long-term LNG contracts in general do not represent a major risk for MET nor for industrial offtakers in Europe, Selbach-Roentgen said. LNG is a more flexibly-structured "solution" to expected demand drops in regard to the energy transition as the tail end can be shipped to companies on other continents such as Asia if European demand wanes, he said. Gas demand is not likely to recover to "historical heights" again, mostly driven by industrials "jumping ship", Selbach-Roentgen said. When talking to large industrial companies, the discussion is often about the option that they might divert investments away from the German market as the price environment is "not attractive enough" for them any longer in terms of planning security, the chief executive said. This trend started out of necessity in reaction to the price spikes but may now be connected to longer-term "strategic" considerations, he said. In addition, industrial decarbonisation — as well as industrial offtakers' risk aversion because of the volatile gas market following Russian gas supply curtailments — leads companies to invest less into longer-term gas dependencies in Germany, Selbach-Roentgen said. In addition, MET advocates for a green gas blending obligation of 1-2pc green gas or hydrogen, in line with legislative drafts under discussion by the German government. This has already met with interest by offtakers, despite uncertainties around availability and prices, and would provide a regulatory framework that allows firms to prepare for the energy transition, Selbach-Roentgen said. By Till Stehr and Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Stalling climate finance an energy security risk : WRI


28/03/24
News
28/03/24

Stalling climate finance an energy security risk : WRI

London, 28 March (Argus) — The "best bet" to achieving global energy security is through mitigation funding and multilateral cooperation, according to the World Resources Institute (WRI). WRI highlighted that governments are funding more domestic renewable energy projects but have increased oil and gas production in the name of "energy security" at home in the years following the Russia's invasion of Ukraine. The recent rebrand of energy transition funding to energy security funding has allowed some developed nations to justify domestic oil and gas licences and drag their feet on multilateral financial commitments. This is causing "real worry" among climate-vulnerable developing nations, WRI chief executive Ani Dasgupta said. He said that although the initial "shock" to the world's energy markets after the invasion of Ukraine "quickly went away", it has triggered "real worry among poorer countries that when push comes to shove, it won't be an even game, or have a fair outcome." Developing countries have long complained about the lack of access to climate funding. Richer nations have only recently met the $100bn/yr target in climate finance to developing countries agreed in 2009, while discussions on setting a new climate finance goal for 2025 at Cop 29 in Baku in November could prove difficult. President of the Republic of Congo (Brazzaville) Denis Sassou-Nguesso said last year that the $100bn/yr in climate financing to developing countries promised by rich countries "never reached us", adding that the annual UN Cop climate conferences have become little more than a talking shop. "Just after the invasion of Ukraine, every country started to think about energy security," Dasgupta said. "In theory, good things could have happened, countries could have concluded that their best bet to getting energy security is by going renewable". But it was not the case in key consumer countries or regions, Dasgupta pointed out. China bought the majority of Russian gas following the EU's withdrawal, he said, and has since upped production at coal-fired power stations despite an "extraordinary" acceleration towards renewables set for 2023-28, according to Paris-based energy watchdog IEA . In Europe, the UK and Norway continue to award new oil and gas licences . "In the US, the fossil fuel lobby argues that the best route to energy security is to invest more in fossil fuels". But the best route is to invest in more renewables, he said. "Even if the US produces a large amount of oil and gas, it is still a traded commodity, and so you have to pay a price for it that is set globally." The US special presidential co-ordinator for energy security Amos Hochstein has also suggested in September that a widening climate finance gap could ultimately threaten global security. "We have seen the percentage of dollars spent on the energy transition outside the OECD, in developing and middle income countries actually go down instead of up…" By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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