Storm heads toward Texas export, refining hub

  • Market: Biofuels, Chemicals, Crude oil, LPG, Oil products, Petrochemicals
  • 13/09/21

A storm system in the southwestern Gulf of Mexico may develop into a hurricane in the coming days as it heads toward the key refining and crude export hub of Corpus Chirsti, Texas.

Tropical storm Nicholas was located about 260 miles (420km) southeast of the mouth of the Rio Grande river that forms the US/Mexico border at about 8pm ET today, heading north at about 2 mph, with a possible landfall sometime late on 13 September near Corpus Christi.

The US Coast Guard set the Port of Corpus Christi to condition X-Ray at 6:45pm ET today, which means gale force winds were expected to arrive within 48 hours. All commercial traffic and transfer operations can continue during X-Ray, but the Coast Guard said ocean-going commercial vessels and ocean-going barges greater than 500 gross tons should make plans to depart the port.

Corpus Christi is a key US crude export port and home to several major facilities, including Citgo's 157,500 b/d refinery, Valero's 200,000 b/d refinery and Flint Hills Resources 260,000 b/d refinery.

As Nicholas continues north and moves inland, forecasters predict heavy rains for other Texas cities, including Freeport, Houston and Galveston. A hurricane watch has been issued for the Texas coast from Port Aransas to Sargent, 20 miles south of Freeport.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
28/05/24

Singapore launches commercial methanol bunkering

Singapore launches commercial methanol bunkering

Singapore, 28 May (Argus) — Singapore has launched commercial-scale methanol bunkering at the Tuas port, after a successful run of its first simultaneous methanol bunkering and cargo operation (Simops) on 27 May. Bunkering operations for shore-to-ship, ship-to-ship, and simultaneous cargo operations while bunkering methanol or alternative fuels like ammonia and hydrogen, will now be available at the Port of Singapore, the Maritime and Port Authority of Singapore (MPA) announced. This development comes after MPA's inaugural Simops of Singapore-based shipping firm X-Press Feeders' first dual-fuel engine container vessel. The Rotterdam-bound vessel was refuelled in Singapore with close to 300t of bio-methanol by MPA-licensed bunker supplier Global Energy Trading. The methanol bunkering occurred concurrently while vessel containers were restowed and loaded, and was supported by digitalisation of the bunkering process for near real-time visibility for various stakeholders. All crew members were trained to handle methanol as a marine fuel and respond to emergencies, given that safety remains a key consideration when bunkering alternative fuels. X-Press Feeders' vessel was the first of 14 dual-fuel vessels that it has ordered. The China-built vessel is equipped with a German-designed dual-fuel engine and has the flexibility to operate on green methanol. The firm plans to operate its green methanol-powered feeders mostly in the ports of Rotterdam and Antwerp-Bruges, where it has a fuel supply contract with chemical manufacturing firm OCI Global. "We look forward to working with other like-minded partners, including on the use of digital bunkering and mass flow meter solutions, to operationalise the delivery of the new marine fuels in Singapore," MPA chief executive Teo Eng Dih said. Singapore is steadily advancing towards its multi-fuel transition for maritime decarbonisation. Another ship-to-ship delivery of 1,340t of blended 20pc bio-methanol combined with 80pc of conventional methanol was completed on 24 May. The alternative fuel blend is reported to provide 31pc in CO2 equivalent savings on a tank-to-wake basis as compared to operating on conventional very-low sulphur fuel oil (VLSFO) for the same distance. The Argus -assessed price for VLSFO stood at $582.68/t delivered on board (dob) Singapore on 27 May, while prices for B24 were assessed at $720.50/t dob Singapore. By Cassia Teo Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more
News

Japanese car makers to develop new engines for HEVs


28/05/24
News
28/05/24

Japanese car makers to develop new engines for HEVs

Tokyo, 28 May (Argus) — Japanese auto producers Toyota, Mazda, and Subaru plan to develop new internal combustion engines (ICE) that can combine with electrical motors, to produce next-generation hybrid electric vehicles (HEVs). These future HEVs must have more efficient electric motor-driven engines, said Toyota's chief executive officer Koji Sato on 28 May. Conventional HEVs are primarily powered by ICEs and electric motors have been regarded as a secondary source, Sato reiterated, "But electric motors should also be seen as a primary power source and potential cruising distance powered by electrical motor should be extended." New engines will be able to utilise a variety of carbon-neutral fuels such as synthetic fuels and biofuel, Sato added. Toyota and other Japanese firms agreed to jointly carry out a feasibility study by discussing scenarios, roadmaps and necessary regulations to introduce the clean fuels around 2030. But the joint announcement did not disclose the extent of the firms' collaboration in developing the new engine. The three car makers stressed the importance of "co-creation" without further details, but each manufacturer separately introduced their own concept of the new ICE. This collaboration would be less compelling if the announcement was made by only one company, said Mazda's chief executive officer Masahiro Moro. This comment deepened market speculation that the firms might be seeking further alliance opportunities, which would involve larger co-operations. This is especially since fellow Japanese car producers Nissan and Honda recently agreed in March to start discussing a possible collaboration on the electrification of automobiles . It was also unclear if the announcement would mean that the firms will prioritise developing HEVs over the battery EVs (BEVs), with market growth of the latter having slowed over the past several months. But Sato emphasised that Toyota is committed to BEVs and ICEs, in line with its multi-pathway principle. This means the company will continue producing multiple types of EVs, including plug-in hybrid vehicles and HEVs along with BEVs to give customers a variety of choices. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Mideast Gulf gasoline premiums at four-year low


28/05/24
News
28/05/24

Mideast Gulf gasoline premiums at four-year low

Dubai, 28 May (Argus) — Gasoline premiums in the Middle East fell to levels last recorded during the Covid-19 pandemic as the region became oversupplied as a result of high refinery runs. The 92R Mideast Gulf gasoline premium declined to a four-year low of $1.80/bl on 27 May, while the backwardation in the product's market structure, where prompt-month gasoline cargoes are sold at a premium to forward months, has been narrowing in recent trading sessions. The premium was last lower in July 2020 with the steep fall in demand during pandemic lockdowns. Refinery runs have been high with the regional refinery maintenance season drawing to an end. "Many refineries are now producing at full throttle as expectations are still high for seasonal demand," a Dubai-based gasoline trader said. A 45-day turnaround at Saudi Aramco and Total's joint-venture 460,000 b/d Satorp refinery in Jubail, Saudi Arabia, will end in mid-June, adding to regional gasoline supplies. Gasoline exports from the Middle East typically head to Pakistan and east Africa, but there have been unusual flows from Saudi Arabia to west of Suez markets. Around 189,000t of Saudi gasoline arrived in the Netherlands, Latvia and Belgium in April, the highest since at least May 2019, according to Kpler data. The rare flows could have also emerged because of a relatively heavy maintenance season in Europe, but escalating freight rates and subdued domestic gasoline demand in Europe are likely to discourage arbitrage economics. Singapore was another unusual destination for gasoline cargoes from the UAE, Saudi Arabia and Oman this month, with imports touching 190,000t, only around 50,000t lower from the record volume in February. Slimmer demand from Iraq, a traditional importer, has been impacting the persistent supply glut as have higher exports from Kuwait, a significant importer in the past. Iraqi state-owned Somo has trimmed down its requirements following the start-up of the 140,000 b/d Karbala refinery, built to reduce the country's dependence on product imports. Somo's new term import requirements for May-December fell to 13.55mn bl, from the 15.82mn bl imported during October 2023-March 2024. Kuwait's exports rose to 259,000t in 2023 from zero in 2022, following the completion of the Clean Fuels Project (CFP). The resolution of a series of issues at the Mina Abdullah and Mina al-Ahmadi refineries, which curtailed exports in the first quarter, will enable state-owned KPC to make more cargoes available, adding to the regional glut, traders said. KPC recently offered non-oxygenated gasoline blendstock for loading in June. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

India offers oil, gas, CBM in special upstream round


28/05/24
News
28/05/24

India offers oil, gas, CBM in special upstream round

Mumbai, 28 May (Argus) — India is seeking bids through a special upstream bidding round for two discovered small oil and gas fields located in the Mumbai offshore region and one coal-bed methane (CBM) gas field in West Bengal. The notice inviting the bids will be launched on 28 May with submission of bids to close on 15 July, said India's upstream regulator the Directorate General of Hydrocarbons (DHG). Details about potential reserves were not provided and are likely to be in the follow-up notice. Discovered Small Fields bid rounds were launched in 2016 to boost domestic crude and gas production and reduce the country's dependency on imports. Since then 67 oil and gas fields were offered in the first round in 2016 with in-place locked hydrocarbons reserves of 40mn t of oil (293mn bl) and 22bn m³ of gas. A second round in 2018 saw 59 fields reoffered with around 189mn t of oil and oil equivalent gas. The third round in 2021 offered 75 fields with a total resource potential of around 230mn t of oil equivalent. India has also announced the ninth bidding round for 28 upstream oil and gas blocks in the ninth Open Acreage Licensing Programme. The deadline to submit bids was initially due by 29 February but was then extended to 15 May and again to 15 July . Of the 28 blocks offered, nine are onshore blocks, eight shallow-water blocks and 11 ultra-deepwater blocks across eight sedimentary basins with an area of 136,596.45 km². The DHG "carved out" five of these blocks, while the remaining 23 blocks are based on expressions of interest received from companies during the April 2022-March 2023 fiscal year. India's crude and condensate production was 589,000 b/d in 2023-24 , up by 0.5pc from the previous year, according to oil ministry data. Its dependence on crude imports rose to around 88pc in 2023-24 from 87pc the previous year. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Oversupply drops Germany's E5 gasoline prices


27/05/24
News
27/05/24

Oversupply drops Germany's E5 gasoline prices

Hamburg, 27 May (Argus) — The end of this year's maintenance season and a general oversupply are pushing down E5 gasoline prices in Germany. Meanwhile, dumping prices for diesel in the south and east are causing disruptions. Traders are offering E5 gasoline at significantly lower prices at the end of May than in April. The prices in the past week, which were €4.60/100l lower than last month, have dropped because the maintenance season in Europe is largely over and refineries have resumed production. At the same time, imports are increasing. Gasoline cargo imports from trading hub Amsterdam-Rotterdam-Antwerp to Germany steadily increased in recent weeks. German seaports received 8,500 b/d in May, according to data from Vortexa. German gasoline exports by cargo were down to 3,700 b/d. At the same time, market participants in the south and east are struggling to understand the unusually large price differences in the respective regions. According to traders, some sellers have been offering diesel with free delivery since at least the end of 2023, with prices €4-6/100l below domestic price quotations and thus far below usual purchase prices. As a result, other traders cannot compete. Furthermore, various customs offices have been made aware of this price discrepancy and asked to investigate, but a result is still pending, market participants said. The General Customs Directorate cannot not provide information on any ongoing investigations, it told Argus . The companies that offer diesel so cheaply have only been active for a short time or were not previously active in the oil market. Two of them confirmed to Argus that they sell diesel below domestic price levels, but did not provide information on who exactly imports the goods to Germany and puts them on the market, meaning who is responsible for the energy tax, EBV contribution, CO2 levy and THG costs. It was just typical trading business, they said. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more