EU eyes unchanged GII import quota for 2H 2020
The European Commission is likely to keep the Group II base oils import quota unchanged at 200,000t for the second half of this year. Its next review is scheduled for the end of the third quarter.
The continuation of the quota for the second half of this year follows discussions between the commission and member state representatives on 14-15 May.
The quota on Group II N150, N220 and N600 base oils for the first six months came into effect on 1 January. It will be renewed on 1 July.
Imports above the quota, from countries without a free trade agreement (FTA), will be subject to a 3.7pc import tax.
Commission customs data show that 150,000t of the quota had been exhausted as of 11 May, meaning that 49,000t is available until 30 June.
Widespread lockdown measures in Europe from March aimed at preventing the spread of Covid-19 meant demand contracted during the peak season. That slowdown in demand, coupled with price volatility, may have affected Group II imports in the first and second quarters.
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Panama's new president faces copper, canal issues
Panama's new president faces copper, canal issues
Kingston, 6 May (Argus) — Stand-in candidate Jose Raul Mulino will take office on 1 July as president of Panama with a challenge to decide on the future of one of the biggest copper mines in the Americas. The 64 year-old lawyer won yesterday's presidential election in the central American country, promising a "pro-investment and pro-business" policy. He won with 35pc of the vote and an about 10 percentage point lead over his next closest rival, Ricardo Lombana. But he has delivered no comment on the future on the shuttered Canadian-owned copper facility that is one pillar of the country's economy. His government will use public works projects and incentives for foreign investors to restore economic growth, Molino said, without giving details. Panama also faces a crippling drought that has lowered water levels and reduced transit through the economically important Panama Canal. First Quantum intends to meet the new government to discuss reopening the mine, the company's chairman Robert Harding said in March. "Whatever government is elected, we will work with it," Harding said. "We would like to see this mine reopen." Panama closed the $10bn Cobre Panama mine after a supreme court ruling in November that First Quantum's contract was unconstitutional. The mine accounted for 5pc of the country's economy and 1.5pc of global copper output, according to the government. The shutdown will limit the country's economic growth to 2.5pc this year against 7.5pc in 2023, the IMF has forecast. The supreme court's order to close the mine followed weeks of protests over the terms given to First Quantum in October. Protests wracked the country as opposition parties, trade unions, environmental lobbies and non-governmental organizations objected to the terms. "Although the mine's owners would be happy to negotiate a reopening with the new administration, this is a very hot and controversial matter for the new government," a senior official of the outgoing government of President Laurentino Cortizo told Argus today. "Any suggestion of negotiating a reopening would again bring people on the streets." Mulino ran with former president Ricardo Martinelli until the courts disqualified Martinelli because of a money laundering conviction. Martinelli had proposed that Panama renegotiate the contract with First Quantum to secure higher royalties and a stake. "Mulino is a mentee of Martinelli, but I doubt he would stoke public anger by seeking to reopen the mine," the official said. Cobre Panama produced 331,000 t in 2023, 5pc less than 2022 output, First Quantum said. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Mexico's long refining quest tilts in its favour
Mexico's long refining quest tilts in its favour
Mexico City, 6 May (Argus) — Mexico's six-year campaign to boost refinery output and cut its dependence on US oil imports is starting to pay off, but time will tell if it can sustain the effort. State-owned Pemex's six domestic refineries processed more than 1mn b/d of crude in March for the first time in almost eight years, boosting its gasoline and diesel output by 32pc and cutting its imports by 25pc from a year earlier. Combined with Pemex's still declining crude production, this has pulled approximately 500,000 b/d of Mexican crude exports — mostly medium and heavy sour grades — from the market compared with a 2023 peak of 1.2mn b/d in June — equivalent to the loss of about 175,000 b/d on average this year compared with 2023. The government said earlier this year that it was not planning "significant" export cuts after cancelling some term contracts. But the drop in shipments combined with the eventual start of its long-delayed 340,000 b/d Olmeca refinery, possibly in 2025, has the potential to shift global flows. At least two independent US Gulf coast refiners are sceptical of major shifts. Road fuel demand is expected to exceed capacity additions in the coming years, Marathon Petroleum chief executive Michael Hennigan said recently. Valero, which is opening a marine storage terminal in Mexico, where about 250 retail outlets carry its brand, expects demand from Mexico to remain strong and grow, chief operating officer Gary Simmons said in its latest earnings call. The impact of Mexico's shift to greater self-sufficiency will depend heavily on its ability to sustain its long-promised refinery renaissance. Mexico's crude exports have already picked up in April from March, to roughly 660,000 b/d based on ship tracking data, although still about 125,000 b/d lower than a year earlier. Energy independence Pemex's refining rates started to fall in 2014 after the previous administration chose to rely less on domestic production and focus more on opening the energy market to outside investment. President Andres Manuel Lopez Obrador vowed to make Pemex great again and build a big refinery to reach "energy independence" when he took office in late 2018. Lopez Obrador poured at least $3.7bn into maintenance alone at Pemex's ageing refineries in 2019-23, excluding major projects including uncompleted ones to add cokers at two refineries that will cost $6bn-8bn and a spiralling $16bn-20bn for the Olmeca plant. It bought out Shell's share in the Deer Park refinery in Texas , taking full control of the plant in 2022. With presidential elections set for June, it was time to show results. But Pemex has a long history of high accident rates , making refinery operations unreliable. The next administration may have to sustain some of this spending and tackle Pemex's $101.5bn debt at a time of calls for structural reform. In addition, the 330,000 b/d Salina Cruz and 315,000 b/d Tula refineries — Mexico's largest — have long struggled with elevated high-sulphur fuel oil (HSFO) production that takes up valuable storage space and makes it hard to run both plants at high rates simultaneously. Record-high exports of HSFO in March helped and Pemex is building coking units at both refineries to solve this, but they are unlikely to both start until early 2025. Attention is on whether and when the Olmeca refinery will affect Mexican demand and offer balance more permanently. Pemex said it will start producing diesel in late May, but also does not expect more than 9,000 b/d of output of all fuels this year . The refinery has missed multiple deadlines, the latest in April. Olmeca's crude unit — the first processing unit — faces "major issues", a source familiar with Pemex refinery operations says. But others say secondary processing units are ready. Pemex refinery operating rates % Domestic refineries Mar 24 Feb 24 Tula 78 80 Salina Cruz 72 40 Madero 69 60 Salamanca 62 60 Cadereyta 58 60 Minatitlan 53 50 Pemex Pemex exports, imports ’000 b/d Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Indonesia’s PIS seeks MR vessels to ship oil products
Indonesia’s PIS seeks MR vessels to ship oil products
Singapore, 6 May (Argus) — Indonesia's Pertamina International Shipping (PIS) is seeking two Medium Range (MR) vessels to ship clean oil products to Sulawesi and Central Java provinces for early-May loading. PIS — a wholly-owned subsidiary of Indonesian state-owned refiner Pertamina — has issued two spot tenders. The shipments can have a maximum unavoidable transportation loss of up to 0.07pc, according to the tenders. A 200,000 bl shipment will load either from Singapore or Malaysia's Tanjung Bin, Tanjung Langsat or Pengerang during 10-11 May, before heading to two discharge ports in Indonesia's Baubau and Semarang. The tender closed at 10am Jakarta time (3am GMT) on 6 May. The firm issued another tender that closed at 2pm Jakarta time on 3 May. The 300,000 bl shipment will load from the same potential ports during 8-9 May, before heading to Indonesia's Semarang. PIS booked the 2021-built, 34,752 deadweight tonne Bowmore at $800,000 for a 200,000 bl shipment from Singapore to two discharge ports in Indonesia's Bau Bau and Wayame with loading from 17 April, through a tender that closed on 9 April . By Sean Zhuang Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Dutch FincoEnergies supplies B100 biodiesel to HAL
Dutch FincoEnergies supplies B100 biodiesel to HAL
London, 3 May (Argus) — Dutch supplier FincoEnergies has supplied shipowner Holland America Line (HAL)with B100 marine biodiesel at the port of Rotterdam for a pilot test. This follows a collaboration between HAL, FincoEnergies' subsidiary GoodFuels, and engine manufacturer Wartsila to trial blends of B30 and B100 marine biodiesel . HAL's vessel the Rotterdam bunkered with B100 on 27 April before embarking on a journey through the Norwegian heritage fjords to test the use of the biofuel. The vessel will utilise one of its four engines to combust B100, which will reportedly cut greenhouse gas (GHG) emissions by 86pc on a well-to-wake basis compared with conventional fossil fuel marine gasoil (MGO), according to GoodFuels. There is no engine or fuel structure modification required for the combustion of B100, confirmed HAL. The B100 marine biodiesel blend comprised of sustainable feedstock such as waste fats and oils. The firms did not disclose how much B100 was supplied, or whether this is the beginning of a longer-term supply agreement. Argus assessed the price of B100 advanced fatty acid methyl ester (Fame) 0°C cold filter plugging point dob ARA — a calculated price which includes a deduction of the value of Dutch HBE-G renewable fuel tickets — at an average of $1,177.32/t in April. This is a premium of $410.20/t to MGO dob ARA prices for the same month, which narrows to $321.68/t with the inclusion of EU emissions trading system (ETS) costs for the same time period. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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