Marine fuel global weekly market update

  • Market: Biofuels, E-fuels, Emissions, Fertilizers, Hydrogen, Oil products, Petrochemicals
  • 12/01/23

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

1 December EU's bio-feedstock rules face reality check: Industry The EU is over-reliant on using "waste" biofuels in its plans to decarbonise the aviation, shipping and trucking sectors, while a shortfall in associated feedstock supply could risk missingemissions-reduction targets unless strategies change, the biofuels industry warns.

1 December Spain's Cepsa, C2X plan 300,000 t/yr e-methanol plant Spanish energy company Cepsa has joined Danish shipping firm AP Moller-Maersk's affiliate C2X to develop 300,000 t/yr of e-methanol production capacity, the first of several production facilities planned by C2X in Spain.

1 December Maersk Tankers orders 10 large ammonia carriers Denmark's Maersk Tankers has confirmed an order for up to 10 very large ammonia carriers (VLAC) from South Korean shipbuilder Hyundai Samho Heavy Industries.

1 December European marine biodiesel prices converge Marine biodiesel blend price spreads converged along regional lines in November, as traded values eased in the west Mediterranean but held ground in northwest European ports.

1 December Tight supplies lift bunker premiums in UAE's Fujairah Bunker premiums in the UAE's Fujairah, the world's fourth largest bunkering port, rose to their highest in 11 months because of regional refinery problems and delayed cargoes from west of Suez.

30 November Kenoil supplies first bio-MGO blend in Singapore Bunker supplier Kenoil Marine Services will supply the first ever biofuel blended with marine gasoil (MGO) in Singapore.

30 November NCL and Yara plan ammonia-fueled containership Norway-based North Sea Container Line (NCL) in a joined venture with Norway-based fertilizer producer Yara will build the world's first containership that will operate on ammonia.

30 November B24 Med prices down in second half November Mediterranean marine biodiesel blend prices trended downwards in the second half of November as subdued bunkering demand combined with easing fundamentals in the underlying markets.

30 November BV launches first rules for hydrogen vessels Classification society Bureau Veritas (BV) has released its first set of classification rules (NR678) for vessels powered by hydrogen, complimenting the existing rules (NR547) on fuel-cell powered vessels which were launched last year.

30 November Second berth at Freeport LNG restarts operations An empty LNG carrier has arrived at the second loading berth of the US' 15mn t/yr Freeport LNG export facility, suggesting the berth is back in action after being offline since June 2022.

30 November Taiwan's Formosa sells more LSFO as RFCC issue drags on Taiwanese private-sector refiner Formosa Petrochemical likely sold around 160,000t (1.03mn bl) of low-sulphur fuel oil (LSFO) after an extended turnaround at its residual fluid catalytic cracker unit (RFCC) at its 540,000 b/d Mailiao refinery, according to traders.

29 November Petroecuador's LNG tender receives no offers Petroecuador did not receive any offers for a tender to import 4.86bcf of LNG over a three and a half month period.

29 November Spain's Enagas plans 2024 LNG maintenance Spain's seven LNG terminals have added extensive maintenance for next year, with constraints set to peak in the summer, according to the latest provisional plan published by Enagas on 27 November.

29 November Biorig to invest €250mn in 10 Spanish biogas plants Spanish firm Biorig will invest €250mn ($274mn) in the development, construction, and operation of 10 biomethane production facilities in the Castilla and Leon region of northwest Spain.

27 November Preem plans further investment on refinery conversion Swedish firm Preem said it plans to invest a further 5.5bn Swedish kronor ($525mn) on converting its 210,000 b/d Lysekil refinery into a renewable fuels plant.

27 November ERGaR asks EU to pull down biomethane ‘trade barrier' Eight European biomethane associations have sent a joint letter to the European Commission asking for the extra-EU imports of biomethane and biomethane-based fuels to be "certifiable and recognized" under the Union Database.

Conventional marine fuels

1 December First public bids for fob diesel cargoes in NWE The northwest European diesel market has seen the first ever bids for fob cargoes on a public platform, as fob ARA trade has grown in importance for the region since the exclusion of Russian products by EU and UK sanctions.

1 December Spot east-west VLSFO spread halves in late November Singapore's fob very low sulphur fuel oil (VLSFO) premium over northwest Europe halved in late November, with demand for bunkers in the city state subdued.

1 December Houston Ship Channel partially closed due to fog The Houston Ship Channel partially closed at 5:30am ET today because of dense fog, halting inbound traffic in the first such closure of the region's fog season.

30 November China boosts refiners' fuel oil access Beijing has issued a surprise new batch of fuel oil import quotas...

30 November Gunvor adds newbuild tanker to its bitumen fleet International trading firm Gunvor has added a 17,779 deadweight tonne (dwt) newbuild bitumen tanker to its global fleet under what is probably a long-term charter arrangement.

30 November Singapore middle distillates stocks slip Singapore's middle distillates stocks inched lower to a five-week low following increased gasoil and jet fuel exports from the city-state.

29 November US Gulf coast MR tanker rates at all-time highs Lengthening Panama Canal transit delays have pressured Medium-Range (MR) tanker rates to record highs, prompting shipowners to remain in the US Gulf coast market and gain leverage in deals for Pacific-bound voyages that involve spiraling costs to transit the canal.

29 November US gasoline, diesel prices continue to fall: EIA Average US retail gasoline and diesel prices continued to fall during the last full week of November, according to the data from the Energy Information Administration (EIA).

29 November Spanish marine fuel sales at Algeciras rose in October Sales of marine fuels from Spain's largest port and bunker hub Algeciras turned higher on the year in October after falling in September, although total Spanish marine fuel demand continued to see sharp falls from 2022.

29 November Mideast Gulf refiners negotiate jet, gasoil term deals Mideast Gulf refiners are negotiating term jet fuel and gasoil supply deals for 2024, but different views on market prices are complicating the discussions.

29 November ExxonMobil Fawley's new hydrotreater to run from 2024 ExxonMobil's 270,000 b/d Fawley refinery in southern England will bring a new unit online next year — believed to be a hydrotreater — to boost low-sulphur diesel production by 40pc, the company told Argus today.

29 November Kuwait's al-Zour refinery now eyes mid-December restart Kuwaiti refiner Kipic has said it will take another two weeks to restart the new 615,000 b/d al-Zour refinery after the plant ran to a near halt two weeks ago.

28 November ZIM reroutes ships from Arabian and Red seas Israel-based container shipping company ZIM is diverting some of its vessels transiting the Arabian and Red seas and adding war risk insurance premiums.

28 November Large gas carrier newbuild orders rise Orders for very large ethane carriers (VLECs) and LNG carriers led the newbuild market in the week to 19 November, with orders totalling 544,000m³.

28 November Maersk sells stake in Hoegh Autoliners Danish shipping giant Moller-Maersk has sold 20mn shares in Norway's Hoegh Autoliners, cutting its stake in the firm to zero, according to an Oslo Stock Exchange filing.

28 November Sri Lanka approves China's Sinopec refinery proposal Sri Lanka has approved Chinese state-owned Sinopec's proposal to build a refinery at Sri Lanka's Hambantota district on 27 November.

27 November New Panama Canal auctions aimed at record waits The Panama Canal Authority (ACP) began new special auctions last week for vessels without reservations that have been waiting for at least ten days to transit the Panamax locks, following record delays in recent weeks.

27 November TotalEnergies Port Arthur refinery restarts TotalEnergies restarted units at its 238,000 b/d Port Arthur, Texas, refinery, on 23 November.

27 November Dry bulk dominates secondhand vessel market Dry bulk vessels made up the lion's share of deals in secondhand markets in the week to 19 November, with 27 sold compared with nine tanker deals, according to brokers.


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
02/26/24

Industria automotriz impulsaría nearshoring en México

Industria automotriz impulsaría nearshoring en México

Houston, 26 February (Argus) — Los fabricantes de automóviles ayudarán a determinar el alcance de las inversiones del nearshoring en México a medida que el impacto de este fenómeno sea más claro a lo largo de 2024 . México ha visto casi $60 mil millones en planes de inversión relacionados con el nearshoring en tan solo 10 proyectos anunciados en los últimos 12 meses. Si bien el alcance del desarrollo del nearshoring en México dependerá en gran medida de políticas generales este año, la atención ya se centra en los grandes proyectos de fabricantes de automóviles como Nissan de Japón, Kia de Corea del Sur y en los de un floreciente sector integrado por 13 fabricantes más pequeños de origen chino, como Chirey, MG, BYD, Geely, Omoda, Jetour, entre otros. La industria nacional de autopartes (INA) estima que México podría atraer hasta $44 mil millones de inversión en autopartes y proveedores automotrices a través del nearshoring en los próximos años. La reubicación o expansión de las cadenas de producción a México para estar más cerca de Estados Unidos atrae inversiones en toda la industria, dijo recientemente el presidente del INA, Francisco González. Teniendo en cuenta que el gobierno estima que México ya ha recibido $110 mil millones del nearshoring desde que comenzó el fenómeno, la asociación ha estimado que alrededor de 40pc de eso está relacionado con el sector automotriz. Nuevo León favorecido Solo el estado de Nuevo León, en la frontera norte de Texas, podría recibir $23 mil millones en los próximos años, en gran parte debido a la construcción de una gigafábrica planificada por el fabricante de vehículos eléctricos Tesla fuera de la ciudad Monterrey. Además de la inversión estimada de aproximadamente $5 mil millones de Tesla, esto atraería a una serie de fabricantes de equipos originales y otros proveedores de piezas y servicio, lo que podría llevar la inversión total hasta $15 mil millones. Sin embargo, la gigafábrica de Tesla que se construiría en Santa Catarina, en los suburbios de Monterrey, tendrá el visto bueno hasta que la planta de la misma empresa en Austin, Texas, haya completado el desarrollo de un modelo de construcción de menor costo para 2025. Pero esto no ha impedido que un gran número de fabricantes de equipos originales y otros integrantes de la cadena de suministro estén empezando a planificar la construcción de nuevas instalaciones cerca del sitio de la gigafábrica para estar listos cuando Tesla construya su planta. Entre ellos, está AGP eGlass que dijo que planea gastar $800 millones en la construcción de una planta de vidrio automotriz de alta tecnología para suministrar a fabricantes como Tesla. De los 278 proyectos automotrices registrados en 2023, un total de 54 se encuentran en Nuevo León, que lo sitúa en segundo lugar nacional, solo por debajo de Coahuila con 56 proyectos en total, y por encima de Guanajuato con 49 y Querétaro con 28. Y de las 54 inversiones registradas en Nuevo León, 23 están enfocadas en la movilidad eléctrica. Esto convierte a Nuevo León en la entidad que atrajo más proyectos de electromovilidad en 2023, por encima de Coahuila, con 19 proyectos y Guanajuato, que registró 13 proyectos de este tipo. En cuanto a la generación de empleos que se anticipa como resultado del nearshoring, el gobierno de Nuevo Leon afirma que ya ha generado más de 42,000 puestos de trabajo directamente relacionados con el sector automovilístico. By James Young Inversiones anunciadas de nearshoring para México $mn Compañía Tipo de proyecto Inversión Ubicación Anuncio Tesla** Fabricación de autos eléctricos 15,000 Nuevo León 28 Feb 23 Kia Unidad de producción 3,000 Nuevo León 15 May 23 Volkswagen Fabricación de autos eléctricos 942 Puebla 16 Feb 24 BMW Ensamblaje autos eléctricos 865 San Luis Potosí 23 Feb 23 AGP Glass Proveedor Tesla 800 Nuevo León 27 Sep 22 Volkswagen Automotriz / cadena suministro 764 Puebla 27 Oct 22 Nissan Planta de ensamblado 700 Aguascalientes 24 Dic 23 Ningbuo Tuopo Group (NTG) Ensamblaje automotriz 700 Nuevo León 28 Oct 23 ELAM-FAW Autopartes 407 Colima 30 Ene 24 Unison Shanghai Componente de autos y partes de aluminio 400 San Luis Potosí 18 Ene 24 Empresas automotrices, Análisis Económico Banorte Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read More
News

Germany passes draft carbon management strategy


02/26/24
News
02/26/24

Germany passes draft carbon management strategy

Berlin, 26 February (Argus) — Germany's economy and climate ministry today proposed legal changes that will enable the deployment of carbon capture and storage or use (CCS/CCU) and the transport and offshore storage of carbon in the country, along with the possibility of applying carbon capture to gas-fired power plants. Federal minister of economic affairs and climate action Robert Habeck presented draft "key points" for a future carbon management strategy, along with a draft amendment to the country's carbon storage law. Habeck stressed that public support for CCS/CCU will be "focused" on emissions that are difficult or impossible to avoid. Germany's government will also ratify the amendment to the London Protocol , enabling the export of CO2, Habeck said. Storing carbon will be permitted in Germany's offshore zone with the exception of protected areas. This will enable Germany to "catch up" with its European neighbours, such as Norway. "In this way, we face the responsibility instead of shifting it to others," Habeck said. But permanent carbon storage onshore will remain banned. The application of CCS to gas-fired power plants was already mentioned as a possibility in the government's draft power plant strategy, to the surprise of observers. Environmental group Germanwatch today slammed the move as having been carried out "evidently at the instigation of the [pro-business government coalition partner] FDP", adding that it might "destroy acceptance for any kind of CCS in Germany". CCS for coal-fired power generation will not be allowed. CCS for gas-fired plants will be permitted but not financially supported, the ministry said. Habeck called the decisions "pragmatic" and "responsible". Without CCS and CCU, Germany's climate targets will be "impossible to reach", he said, adding that "many industrialised countries are already making great strides in developing the technology". And CCS will be needed for the technical carbon sinks that will be necessary to achieve sufficient negative emissions. Natural sinks will not suffice, Habeck said. The ministry is working on a strategy for negative emissions that will be "a kind of sister strategy to the carbon management strategy". The draft carbon storage law will provide a legal framework for future CO2 pipeline infrastructure that is expected to be privately sponsored but within a state regulatory framework. The drafts will now be sent to other ministries, and hearings for the federal states and associations will follow. Germany plans to reach greenhouse gas neutrality in 2045. Recent documents from the European Commission detail a substantial role for carbon management for the EU to reach its climate targets. By Chloe Jardine Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Vopak builds on Singapore biofuels bunkering capacity


02/26/24
News
02/26/24

Vopak builds on Singapore biofuels bunkering capacity

Singapore, 26 February (Argus) — Storage company Vopak has commissioned 40,000m³ of capacity at its 1.34m³ Sebarok terminal in Singapore for the blending of biofuels into marine fuels. The company has been carrying out multiple trials with customers since 2022, with its existing pipeline system at Sebarok also converted to a dedicated biofuels blending service as part of the overhaul. Vopak initiated the change in response to increasing demand for blending and storage solutions at the world's largest bunkering port, where biofuel blends have increased from almost zero in 2022 to 518,000t last year, according to the Maritime and Port Authority of Singapore. "Our vision for Sebarok terminal is to be a sustainable multi-fuels hub to strengthen Singapore's position as the top bunkering hub," said Vopak's Singapore business unit president Rob Boudestijn. "As a storage and critical infrastructure services provider, this development can facilitate the entry of more biofuels companies to diversify the supply chain for marine biofuels and accelerate the decarbonisation of the shipping industry." International Maritime Organisation directives stating that all ships sailing in international waters need to reduce their greenhouse gas emissions by at least 20-30pc by 2030 compared with 2008 base levels, along with the EU integrating maritime under its emissions trading scheme from this year, have accelerated decarbonisation plans across the marine sector. By Amandeep Parmar Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

More firms join Japan-Malaysia CCS value chain study


02/26/24
News
02/26/24

More firms join Japan-Malaysia CCS value chain study

Osaka, 26 February (Argus) — Japanese firms Chugoku Electric Power and Nippon Gas Line (NGL) plan to join a study to establish a carbon capture and storage (CCS) value chain from Japan to Malaysia. Chugoku and NGL on 26 February signed an initial agreement with upstream developer Japex, engineering firm JGC, shipping firm K-Line and steel mill JFE Steel to jointly study the facilities and costs required for the potential CCS project. The partners are looking to separate and capture CO2 from JFE's steelworks and Chugoku's power generation plants, with NGL promoting the delivery of liquefied CO2 through coastal transportation in western Japan's Setouchi area to storage sites in Malaysia. The deal followed JFE's participation in the feasibility study of the Japan-Malaysia CCS value chain in June 2023. Japex, JGC and K-Line had looked for potential CO2-emitting firms, under a separate CCS value chain tie-up with Malaysia's state-owned Petronas through its subsidiary Petronas CCS Ventures. The collaboration with Petronas first began with Japex in January 2022, with JGC and K-Line joining later in July 2022. The four companies reached a key principle agreement in September 2023 to jointly develop the CCS project offshore Malaysia. The project aims to start injection and storage of CO2 emitted in Malaysia and outside Malaysia under the seabed at the end of 2028. Chugoku is looking to Malaysia as a destination for its CO2 exports and storage. The company on 19 February also signed an initial agreement with Japanese trading house Mitsui to jointly study building another CCS value chain to a planned project offshore Malaysia. Getting involved in overseas CCS projects could be inevitable for Japan, because of its limited domestic storage sites. Tokyo aims to add 6mn-12mn t/yr of CO2 storage capacity domestically and overseas from 2030, and achieve 120mn-240mn t/yr of capacity by 2050. The government previously estimated that Japan could store up to 70pc of its forecast 240mn t/yr of CO2 emissions in 2050. Japan hopes to carry out CCS projects in its territory. Japanese cabinet agreed on 13 February to support a bill outlining administrative rules for exploratory drilling and storage operations for CCS, which would require government permission to conduct, to prepare for the commercial start of CCS business by 2030. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Liberty Steel targets Australian hydrogen, CCS deals


02/26/24
News
02/26/24

Liberty Steel targets Australian hydrogen, CCS deals

Sydney, 26 February (Argus) — UK-owned producer Liberty Steel has signed separate agreements with the South Australia (SA) state government and domestic independent Santos to respectively explore the use of hydrogen and discuss carbon capture and storage (CCS) opportunities for its Whyalla steel plant in SA. Liberty could become the first domestic third-party customer for the Santos-operated 1.7mn t/yr Moomba CCS project in SA's onshore Cooper basin, which is on track to start injection in mid-2024. Santos has secured finance for its $150mn share of the $220mn project, it said on 26 February, following an initial deal signed with Liberty over the weekend. Santos and Liberty will now enter discussions for a potential term natural gas supply deal that could include abated gas from Moomba. This could help reducing residual emissions from the Whyalla steelworks during a transition period, before the plant fully moves to green hydrogen once that is available at scale, Liberty's owner GFG Alliance said on 25 February. Liberty's separate agreement with the SA government, also signed on 25 February, is for potential supplies from the government's planned 250MW green hydrogen facility near Whyalla in the Spencer Gulf region. The SA government last October chose a consortium comprising Canadian-owned infrastructure group Atco and German firm Linde's subsidiary BOC as preferred contractors for the plant, which is expected to come on line by the end of 2025 . "Today's agreement gives us and our stakeholders confidence to ramp up our efforts and commitment to the production of our 4bn t of high-quality magnetite, the establishment of a state-of-the-art green iron and green steel plant which will ultimately be powered by renewable energy and green hydrogen," GFG Alliance chairman Sanjeev Gupta said. Liberty plans to build an electric arc furnace (EAF) at Whyalla , which will replace the existing coke ovens and blast furnace and lift steel production capacity to more than 1.5mn t/yr from 1mn t/yr. The company has received a A$63.2mn ($41.4mn) grant from the Australian federal government to support the purchase and installation of the EAF. It also has A$50mn committed by the SA government for use towards the EAF, pending approval. GFG Alliance also plans to produce 7.5mn t/yr of iron pellet from locally-sourced magnetite from 2030 in a direct reduced iron plant, which would initially use a mix of natural gas and green hydrogen as the reducing agent before fully transitioning to the latter. Santos is also targeting to offer CCS services from Moomba to reduce emissions from other hard-to-abate industries such as aluminium and cement, as well as from fuels like LNG, it said. Santos owns 66.7pc of Moomba with the balance controlled by Australian independent Beach Energy, which anticipates 30pc of its equity greenhouse gas emissions will be offset by the storage . By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.