John Stone offers renewable diesel in USGC

Market: Biofuels, Oil products
12/07/23

Marine fuel supplier John W Stone Oil Distributor has begun offering renewable diesel for vessels in the US Gulf coast.

The fuel will be supplied to international and domestic vessels as well as consumed by all of Stone Oil's own vessels. The company has been using the renewable diesel in several of its vessels, with a plan to convert the entire fleet within the next two months. Stone Oil's vessel fleet comprises 47 inland barges, 11 inland boats and three offshore units, which burn about 56,000 bl/year of marine fuel.

The company has committed a 100,000 bl tank in Port Fourchon, Louisiana, and 85,000 bl of tankage in Gretna, a suburb of New Orleans, Louisiana, for the initial storage and the distribution of the renewable diesel. The fuel can be delivered to vessels via barge or via ex-pipe. Stone Oil has a renewable diesel supply contract with a US Gulf coast refinery and has actively engaged additional suppliers. Stone Oil would not disclose the name of the US Gulf coast refinery due to an non-disclosure agreement.

The company is receiving enquiries for blended renewable diesel bunker lots. Although typical conventional marine fuel lots range between several hundred to 1,000 metric tonnes, the expectation of the lots for renewable diesel as a blend stock are expected to be smaller. International vessel owners' inquiries have been for renewable diesel blended with fuel oil or gasoil, while domestic US vessel owners are interested in pure renewable diesel. Stone Oil has seen interest from cruise lines, container ships, bulk carriers and tankers.

The renewable diesel meets ISO 8217/ ASTM D975 specifications and has International sustainability & carbon certification (ISCC) renewable diesel certification. It can reduce lifecycle greenhouse gas (GHG) emissions by up to 75pc compared with conventional fuels, the company said. "Initially the [renewable diesel] driver will be internal mandates rather than regulations, but the regulations will have a growing impact", Anthony Odak, chief operation officer of Stone Oil, told Argus.

Last week, the International Maritime Organisation (IMO) adopted a revised GHG emissions strategy. IMO members agreed to reduce GHG emissions by at least 20pc, and preferably 30pc, by 2030; by at least 70pc, and preferably 80pc, by 2040; and to net zero by 2050 from 2008 base levels.

By Stefka Wechsler

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

09/10/24

Hurricane Milton closes in on Florida: Update

New York, 9 October (Argus) — Strong winds and heavy rainfall are lashing Florida's west coast ahead of Hurricane Milton, which is forecast to make landfall late tonight as a major hurricane. The growing risk of life-threatening storm surge and flooding have sparked mass evacuations given Milton's potential to be one of the most destructive hurricanes on record to strike the region. Multiple tornado warnings have also been issued across the Florida peninsula. Milton was located about 100 miles southwest of Tampa at 4pm ET today, packing maximum sustained winds of 125mph, according to the National Hurricane Center. It was moving to the northeast at 17 mph. "On the forecast track, the center of Milton will make landfall along the west-central coast of Florida tonight, cross the Florida peninsula overnight and early Thursday, and move off the east coast of Florida over the western Atlantic Ocean on Thursday," the center said. Milton is expected to remain at hurricane strength as it sweeps over the Florida peninsula, before gradually weakening as it moves back out to sea. Fuel supplies, prices tighten Mandatory evacuations for hundreds of thousands of west coast Florida residents led to a fuel shortages in some areas ahead of the storm. The state waived four statutes regulating fuel sales, storage and distribution to shore up supplies and has been escorting fuel trucks to retail stations that have run dry. Prices for Florida CBOB delivered at Tampa and Port Everglades fell by 0.75¢/USG to $2.08/USG today, down from their highest point since mid-August on Monday at $2.18/USG. Cash differentials were stable in the gasoline cargo markets at Argus Gulf coast Colonial CBOB +10¢/USG. Florida ultra-low sulphur diesel (ULSD) delivered to Port Everglades fell by 2.23¢/USG to $2.30/USG today. Cash differentials were unchanged in the waterborne ULSD cargo markets at Argus Gulf coast Colonial ULSD +12.25¢/USG. Milton's storm surge and destructive winds in the Tampa area have the potential to significantly damage a key import hub from which refined products are sent by pipeline to the Orlando area and distributed by truck throughout the state. If terminals at the port are quick to reopen, blocked roads and flooding could prohibit fuel truck deliveries to gas stations that may not even have power. The offshore oil and natural gas hub in the Gulf of Mexico was largely spared as Milton's track took it well south of most platforms. By Stephen Cunningham, Stephanie Crawford, Cooper Sukaly and Nathan Risser Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Find out more

News

Florida waives fuel rules ahead of hurricane

09/10/24

News

09/10/24

Florida waives fuel rules ahead of hurricane

Houston, 9 October (Argus) — Florida has waived four statutes regulating the sale, storage and distribution of liquid fuels in an effort to shore up supply as the state prepares for landfall from Hurricane Milton. Florida agriculture commissioner Wilton Simpson signed an emergency order Monday that allows fuel sellers to sell a range of branded and unbranded fuels interchangeably and to blend fuels from multiple suppliers. The rules suspension will extend through 6 December or until rescinded by the commissioner. The measure will "assist with efforts to ensure adequate distribution and supply of fuel", governor Ron DeSantis (R) said Wednesday. The state has been escorting fuel trucks to retail stations that have run dry as drivers fill vehicles ahead of the hurricane, which is expected to make landfall late Wednesday or Thursday morning on the west-central coast of Florida. Because Florida has no refineries, the state must import all its gasoline, diesel and jet fuel by truck and ship, making its fuel supply particularly vulnerable to disruption when when ports and roadways are closed by a storm. An hours-of-service waiver for truck drivers directly assisting with emergency relief efforts in Florida and other Gulf coast and Atlantic coast states has be in place since Hurricane Helene made landfall in Florida late last month. By Nathan Risser Hurricane Milton projected path Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Russia to present climate strategy at Cop 29

09/10/24

News

09/10/24

Russia to present climate strategy at Cop 29

Edinburgh, 9 October (Argus) — Russia is preparing to present its climate strategy at the UN Cop 29 climate conference in Baku, Azerbaijan, in November, deputy prime minister Alexander Novak said. Novak convened a meeting with Russian ministries on climate issues on 7 October, in which a forecast for Russia's emissions rates, in line with the country's 'low emissions economic development strategy to 2050', was discussed. The strategy was approved in 2021. It is unclear whether the strategy is linked to Russia's new Nationally Determined Contribution (NDC) — a climate plan to be submitted to the UN. Cop parties are expected to publish their next NDCs to the Paris climate agreement — this time for 2035 — in November-February, as part of a cycle that requires countries to "ratchet up" their commitments every five years. Russia's president Vladimir Putin announced Russia's 2060 net zero ambitions in October 2021, but the country has not updated its NDC since 2020. The Cop 28 agreement signed in the UAE last year included an energy section calling for "transitioning away from fossil fuels in energy systems", a tripling of renewable capacity by 2030 and for "accelerating action in this critical decade", giving the direction countries need to take in the energy transition. The country's main focus is on doubling the absorptive capacity of Russia's forests and producing and exporting more gas, to replace demand for more carbon-intensive oil and coal. Russia has no plans to reduce coal and oil output. Russia's climate envoy Ruslan Edelgeriyev said in November 2022 that Moscow could achieve net zero a decade earlier than in 2060 if its access to international debt markets and technology was not blocked because of the sanctions imposed over Ukraine. While reiterating net zero ambitions last year despite the sanctions, Putin repeatedly called accelerated decarbonisation irresponsible, claiming that it contributed to Europe's energy crisis in 2021. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

African petroleum body seeks EU CO2 tax moratorium

09/10/24

News

09/10/24

African petroleum body seeks EU CO2 tax moratorium

Cape Town, 9 October (Argus) — African states must push for a moratorium on the EU's impending carbon tax when they attend the UN Cop 29 climate talks in Baku, Azerbaijan, next month, said the African Petroleum Producers Organisation (APPO). APPO's secretary-general Omar Farouk Ibrahim made the call at Africa Oil Week currently underway in Cape Town, South AFrica. "As we prepare to go to Baku for Cop 29, I invite those who represent the interests of our continent in the negotiations to sound the alarm on the implications for Africa of the planned implementation of the EU carbon border adjustment mechanism," Ibrahim said. The mess called climate change was not created by Africans, APPO's secretary-general said. Today's industrialised countries are responsible for most of the greenhouse (GHG) emissions of the past 120 years, he said. This is the time to sound the alarm and ask for a moratorium on CBAM so that Africa can benefit, he added. "That is what an energy transition is in our opinion. If we don't, we're in for trouble [as] it will stifle our industrial and economic development," according to Ibrahim. Africa deserves better — it cannot develop without fossil fuels, he concluded. By Elaine Mills Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Nigeria to halt jet imports to support Dangote refinery

09/10/24

News

09/10/24

Nigeria to halt jet imports to support Dangote refinery

London, 9 October (Argus) — Nigerian airlines have agreed to source jet fuel solely from the country's 650,000 b/d Dangote refinery rather than relying on imports from abroad, according to aviation minister Festus Keyamo. "It's a decision by the airline operators of Nigeria, with my push and my blessing, that they should only buy from Dangote refinery," Keyamo told Nigeria's Channels Television, without offering a timeframe. The Dangote refinery is fast increasing its share of Nigeria's oil product market. It started gasoline production last month and all its sales since have been to state-owned NNPC. NNPC has been using trucks to load the gasoline but Dangote's plan is to eventually supply most of its gasoline to the domestic market by sea. Dangote is already claiming a greater share of the jet fuel arriving at Nigerian ports. A quarter of the 280,000t of seaborne deliveries of jet fuel to Nigeria so far this year have come from Dangote, according to Vortexa. The refinery began selling jet to the local market back in April , enabling local fuel marketers to benefit from lower transport costs. Indian refiner Reliance is among the biggest losers. It supplied 140,000t of jet fuel to Nigeria last year, around half of the country's total seaborne imports, and a further 75,000t in the first four months this year. But it has not supplied any more since the end of April. Dangote was last heard offering jet fuel at a premium of $42/t against spot northwest European prices, according to market participants. By George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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