Marine fuel global weekly market update
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
9 June Rotterdam LNG share of bunker demand to rise LNG as a share of the Rotterdam bunker market may surpass 3pc this summer as LNG prices dip below conventional marine fuels.
9 June Indonesia's palm waste exports down on month in April Indonesia's palm waste exports decreased in April on the back of International Sustainability and Carbon Certificate (ISCC) withdrawals because of alleged fraudulent practices, curtailing China's import volumes from the southeast Asian country.
9 June Demand needed to drive new fuel supply: Nor Shipping More demand is needed if zero-carbon shipping fuels are going to become the norm, shipping industry leaders told attendees at the Nor-Shipping conference in Oslo this week.
9 June Iberdrola to build green ammonia plant in Spain Spanish utility Iberdrola plans to build a green ammonia plant in the south of the country following an agreement with ammonia trader Trammo for the purchase and sale of up to 100,000 t/yr of green ammonia from 2026.
8 June Japan's Asahi Kasei buys bio-methanol from Mitsui Japanese petrochemical producer Asahi Kasei has started purchasing bio-methanol from Japanese trading house Mitsui to produce bio-engineering plastic, amid growing pressure to decarbonise.
8 June Price goal of $100/t CO2 is 'unrealistic' for DAC The much talked about goal of $100/t of CO2 for direct air capture (DAC) is "not at all realistic", and firms should be careful about "lowballing" costs, delegates heard at an industry event this week.
8 June Policy, costs make US key clean ammonia supplier The US is uniquely positioned to become a principal exporter of clean ammonia within the next decade despite price-related challenges that remain in play, delegates said Wednesday at the Argus Clean Ammonia North America Conference in Houston, Texas.
8 June Klapedia, Proman agree on methanol bunkering The Port of Klapedia in Lithuania is adding methanol bunkering capability to its operations.
8 June Japan's Mol to charter LNG-fuelled bulk carrier Japanese shipping firm Mitsui OSK Lines (Mol) has agreed to charter a new LNG-fuelled bulk carrier for utility Kansai Electric Power to deliver coal from Kansai's Maizuru power complex, targeting commissioning in 2026.
8 June Iran's methanol output dips on squeezed margins Production at methanol units in Iran is expected to dip in June, with some producers opting to cut operating rates because of weakening margins.
8 June IMO must boost emissions targets: Maritime group The head of a Norwegian maritime group said the UN's International Maritime Organization (IMO) must adopt a more ambitious emissions goal to meet a zero-emissions target by 2050.
8 June Titan LNG charters new bunkering vessel Dutch shipping firm Titan LNG has signed a long-term charter with Italian bunker supplier and shipowner Fratelli Cosulich for its 8,200m³ Alice Cosulich LNG bunkering vessel.
7 June Royal Caribbean to test biofuel on two ships US cruise ship operator Royal Caribbean will test a biofuel blend in two of its ships as part of its research on using alternative marine fuels.
7 June Monjasa's total CO2 emissions rose in 2022 Total direct CO2 equivalent emissions put out by Danish marine fuel and trading company Monjasa rose between 2021 and 2022, according to its 2022 responsibility report.
7 June VLGC owner Avance Gas enters MGC market Oslo-listed shipowner Avance Gas has purchased two newbuild LPG/ammonia vessels and entered the midsize gas carrier (MGC) market.
6 June Stena mulls sale of LNG assets Swedish shipping firm Stena is considering selling some or all of its LNG assets.
6 June X-Press Feeders orders six methanol-fuelled ships Singapore-based shipping company X-Press Feeders has ordered six 1,250TEU methanol dual-fuelled containerships.
6 June Ardmore orders 3 more CO2 capture units to MR tankers Ireland-based shipping company Ardmore Shipping will retrofit three of its Medium Range (MR) tankers with CO2 capture systems.
6 June China biodiesel sector responds to EU policy proposals Chinese biodiesel stakeholders have responded to calls from European waste-based and advanced biofuels association (Ewaba) for policy measures to address stronger Chinese biodiesel exports to the EU.
6 June WinGD partners with Mitsubishi on ammonia engines Swiss marine power company Winterthur Gas and Diesel (WinGD) has partnered with Japanese shipbuilder Mitsubishi Shipbuilding to develop ammonia-fuelled vessels.
5 June Norway's Stena mulls sale of LNG assets Norwegian shipping firm Stena Power is considering selling some or all of its LNG assets.
5 June Biofuels use in shipping has limitations: DNV Biofuels have the potential to contribute significantly to reducing carbon emissions in shipping because of their flexibility as a "drop-in fuel", but they are "unlikely to be the only solution to shipping's goal of transitioning to zero [greenhouse gas] GHG emissions in the future", according to marine certification society DNV.
5 June Singapore, Australia seek shipping corridor Singapore and Australia have opened discussions to establish a green shipping corridor by 2025.
5 June EU investigates allegations of biofuels fraud The European Commission today said it is investigating allegations of "possible fraud" related to biofuel imports from China into the EU, having received reports from a member state.
5 June Industry earmarks €18bn in biomethane investments: EBA Industry stakeholders have set aside a first tranche of €18bn ($19.2bn) in investments to scale up biomethane production in Europe, according to the first investment outlook by industry association EBA.
Conventional marine fuels
9 June US increases European diesel market share The US has been providing more than 10pc of Europe's diesel imports since the start of May, up from around 5pc last year and 7-8pc in the opening months of this year. Cargoes have probably been freed up by Russian sellers taking around half of the US' previous market share in Brazil.
9 June Asian HSFO flips into contango on lack of summer demand Singapore 180cst high-sulphur fuel oil (HSFO) markets have flipped into contango mainly as typical South Asian summer utility demand has failed to materialise, market participants said.
9 June Chinese prices signal higher gasoline, diesel exports Chinese spot diesel prices have fallen to their lowest since last year's lockdown even as international prices rally — increasing the likelihood of higher exports.
9 June Slow demand weighs on Japan's April bonded bunker sales Japan's bonded marine fuel sales fell in April, pressured by weaker delivery demand from domestic shipowners and the spot market.
9 June Japan's Tokyo VLSFO supplies tighten on lower stocks Very low-sulphur fuel oil (VLSFO) deliveries in Japan's Tokyo bay area tightened, pressured by lower stocks because of refinery turnarounds.
8 June Low Turkish, Greek diesel exports tighten Europe supply Turkish and Greek diesel cargo offers have dwindled over recent weeks, according to market participants, further stoking diesel supply tightness in the Mediterranean market.
8 June Oman's Duqm refinery offers fuel oil, naphtha Oman's 230,000 b/d Duqm refinery has offered fuel oil and a naphtha cargo as it starts up, although residual fuel offers should taper off as downstream units come on line, said market participants.
8 June UAE, Saudi May fuel oil imports from Russia fall 35pc The UAE's and Saudi Arabia's imports of Russia-origin fuel oil fell by nearly 35pc in May from April, reflecting spring maintenance at Russian refineries.
7 June Brazil diesel imports fall further in May Brazil diesel imports fell for the second consecutive month in May amid a growing preference for domestic output after state-controlled Petrobras reduced its wholesale prices on 16 May.
7 June China raises oil product exports in May on huge quotas China's oil product exports jumped to 4.89mn t in May, sharply up on the month and year on year and higher than market expectations, after huge quotas were issued in the month.
7 June Peninsula to supply bunker fuels in Egypt Marine fuel supplier Peninsula Petroleum has been awarded a bunker supply licence for Mediterranean ports by the Egyptian government.
7 June World Bank lifts Russia outlook The World Bank has significantly upgraded its outlook for the Russian economy this year, largely because of continuing energy exports.
5 June Lake Charles refinery shut 1-2 months Calcasieu Refining's 135,000 b/d Lake Charles, Louisiana, refinery may be closed for up to two months after a 3 June lightning strike caused a naphtha tank fire.
5 June Afipsky refinery resumes normal operations Independent refiner Forteinvest is resuming normal operations at its 120,000 b/d Afipsky plant ...
5 June NWE diesel price spreads point to tighter supply Northwest European diesel premiums to crude, jet fuel and intermediate feedstocks all hit their highest in more than a month last week, as did the backwardation structure in the forward curve, affirming indications from traders that supply is substantially tightening.
Related news posts
Volatile energy prices risk the transition: IEF
Volatile energy prices risk the transition: IEF
Houston, 18 September (Argus) — High or volatile energy prices risk undermining emissions reductions efforts, International Energy Forum (IEF) secretary-general Joseph McMonigle said today at the Gastech conference in Houston, Texas. "If the public starts to connect high prices and volatility to the energy transition, we're in big trouble and we risk losing public support for the transition and climate policy," he said. McMonigle made his comments on a panel with several energy ministers, who discussed the issues of balancing energy security concerns with transitioning to cleaner fuel sources for electricity. When asked what he would consider a "call to action" for the global energy sector, McMonigle suggested investments in emerging technologies. "I think to allow trading of carbon credits is really important to accelerate the transition," he said. "Also, to provide financing for CCS (carbon capture and storage), which I think is one of the technologies that does not have enough investment behind it." By David Haydon Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Citgo auction result delayed amid last-minute motions
Citgo auction result delayed amid last-minute motions
Houston, 18 September (Argus) — The US court-appointed special master overseeing the auction of US refiner Citgo plans to object to a last-minute motion from the Venezuelan government to delay the sale process by four months. The Republic of Venezuela and state-owned oil company PdV filed a motion on Tuesday seeking a four-month pause in the sale of its refining subsidiary Citgo, which is being auctioned off to satisfy debts owed by PdV. Special master Robert Pincus said in a court filing today that he intends to object to Venezuela's motion for a pause. The last-minute motion from Venezuela comes days after the US District Court for the District of Delaware was expected to announce results of the winning bidder. The court asked for a second extension to the auction process in August, delaying announcing a successful bidder to on or about 16 September with a sale hearing on 7 November. But Pincus is now dealing with last-minute legal challenges filed last week outside of the Delaware courts by so-called "alter ego" claimants seeking to "circumvent" the Delaware court's sales process and "jump the line" for enforcing claims against PdV, the special master said in a filing last week. Bidders for Citgo's 804,000 b/d of refining capacity, terminals, retail fuel stations and other plants expect the assets to be sold free and clear of future claims by PdV creditors. Unresolved legal liabilities could lower the value bidders are willing to pay for Citgo, decreasing the pool of money available to those owed by PdV. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Wash. regulators plan for cap-and-trade vote
Wash. regulators plan for cap-and-trade vote
Monterey, 18 September (Argus) — Washington regulators are making a "contingency" plan in the event of a successful repeal of the state's emissions cap-and-trade program. Initiative 2117, which looks to repeal the state's cap-and-trade program and prevent any similar program from taking its place, will be on state ballots for the 5 November election. "We are doing contingency planning in case the ballot measure passes and will update our covered entities when we do have information — and I know this initiative is creating a lot of uncertainty," said Stephanie Potts, senior planner with the state Department of Ecology today at the Argus North American Biofuels, LCFS & Carbon Markets Summit in Monterey, California. The agency also remains focused on continuing to implement the program, "assuming it continues," she said. Washington's "cap-and-invest" program requires large industrial facilities, fuel suppliers, and power plants to reduce their greenhouse gas emissions by 45pc by 2030 and by 95pc by 2050, from 1990 levels. The department is in an ongoing rulemaking process to expand and amend its carbon offset protocols, and also continues work to gather input for linkage with the Western Climate Initiative, a linked carbon market between California and Quebec. Potts said Washington expects to have a linkage agreement in place by the end of next year. The uncertainty introduced by the ballot initiative over the fledgling market's future has tempered carbon credit prices and activity this year. Argus assessed Washington carbon allowances (WCAs) for December delivery at $30.25/metric tonne on 4 March, their lowest price since the program's inception in 2023. The drop in prices at that time coincided with a statement by Ecology outlining how a successful repeal would end the agency's authority over the program. Earlier this year, the state Office of Financial Management (OFM) released a fiscal impact statement on a successful repeal that assumed an effective repeal date would be 5 December. By Denise Cathey and Jessica Dell Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brazil allocates R514mn to combat fires: Correction
Brazil allocates R514mn to combat fires: Correction
Corrects value of funding in headline and lead. Sao Paulo, 18 September (Argus) — Brazil will allocate R514mn ($94.3mn) to combat fires spreading across the country, presidential chief of staff Rui Costa and environment minister Marina Silva said this week. The funds are considered "extraordinary" and not a part of the country's overall budget because they are part of a special budget authorized by the supreme court to tackle climate change. Brazil is facing severe drought in all states but two, leading to fires in several regions. The flames are likely to cut the country's 2024-25 sugarcane output , while low river levels have roiled logistics . Part of the funds will be allocated to the environment ministry to reinforce monitoring and combating fires, Costa said. The federal police and the national public security force will also receive extra resources to reinforce investigations and battle environmental crimes. The armed forces will also receive some funds to support operations to extinguish the flames. Another portion will be earmarked to buy food for families in the north that are affected by the low water levels caused by droughts. The government will also issue another provisional measure this week to ease the release of resources from the Amazon Fund, Costa said. President Luiz Inacio Lula da Silva, supreme court chief justice Luis Roberto Barroso, head of the senate Rodrigo Pacheco and lower house speaker Arthur Lira all attended the announcement as a show of unity among the branches. Brazil is also considering increasing penalties for environmental crimes, which Silva considers to be "too low" at the moment. "The sentence of two to four years in prison is light," she said. "And some judges go further and completely relax this sentence." Brazil — which is trying to bolster its image as a climate leader — is also considering creating a climate authority and technical-scientific committee to "support and coordinate the federal government's actions to combat climate change." By Lucas Parolin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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