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 February Shell to close methanol unit in Wesseling, Germany Shell will shut down its 400,000 t/yr methanol unit in Wesseling, Germany, when it stops crude processing unit at the 147,000 b/d refinery there.
8 February Brazil's Bunker One tests B7 marine fuel Brazil's marine fuel distributor Bunker One and the federal university of Rio Grande do Norte have concluded tests of a 7pc biodiesel blend (B7) in marine gasoil (MGO), demonstrating the the renewable fuel's potential to help decarbonize shipping.
8 February Marine Atlantic gets first battery-powered vessel Canadian ferry operator Marine Atlantic will take delivery of its first battery-powered vessel, which will also be able to burn LNG once it becomes readily available.
8 February Carnival to reach GHG target this year Cruise operator Carnival said it expects to surpass greenhouse gas (GHG) emission intensity targets set for 2026 by the end of this year.
8 February Steam turbine LNG carrier scrappage to rise: Flex LNG The number of steam turbine LNG carriers set to be scrapped will rise to double digits over the next few years, Norwegian shipping firm Flex LNG's chief executive Oystein Kalleklev said.
8 February Kaltim's Indonesian methanol plant delays restart The restart of Indonesian producer Kaltim's 660,000 t/yr methanol plant in east Kalimantan has been delayed because of an unspecified technical issue.
7 February LNG charter rates fall further in January Prompt spot LNG charter rates posted heavy losses in January, as the ending of winter term-charters boosted availability in a well-supplied charter market.
7 February Biden LNG pause raises questions at home and abroad US government officials are seeking to reassure both its closest allies and the gas industry there is nothing to fear from president Joe Biden's freeze on new LNG export licences. But the move may still have wide repercussions for investments, the US economy, global energy security and climate goals.
7 February Shipping industry reacts to EU climate recommendation Participants in the shipping industry have reacted to the EU's latest recommendation towards achieving climate neutrality by 2050 — and called for further commitments.
7 February K-Line wins second deal to ship CO2 for Norwegian JV Japanese shipping firm Kawasaki Kisen Kaisha (K-Line) has signed another charter agreement to transport liquefied CO2 for Norway-based joint venture Northern Lights, after delivering a new vessel on an unspecified date.
6 February EU to mull 90pc GHG emissions cut by 2040 The European Commission today presented policy documents confirming its preference for a 90pc net greenhouse gas (GHG) emissions reduction by 2040 for the bloc, compared with 1990 levels.
6 February Samsung Heavy receives LNG carrier order South Korean shipbuilder Samsung Heavy Industries (SHI) has received an order to build 15 LNG carriers for unnamed shipowners in the Middle East, the firm said today.
5 February Barcelona LNG bunkering volumes jump in 2023 LNG bunkering volumes rose to all-time highs at Barcelona, Spain, last year, the port authority has said.
2 February Mediterranean B24 bunker demand may not rise in '25 Current pricing fundamentals suggest that Mediterranean demand for B24 bio-blend bunker fuel may not rise sinificantly in 2025, despite the region becoming subject to emissions charges next year.
2 February West of Suez exposure weighs on ME ammonia producers Supply contracts between Middle Eastern ammonia producers and buyers west of Suez have been on the increase in the past two years. But with recent developments in the Red Sea, greater exposure to these markets is creating logistical challenges for the region's producers.
2 February Empty LNG carrier approaches Mexico's Altamira The empty 174,000m³ LNG Enterprise — under a long-term charter with TotalEnergies — was sailing towards Mexico's Altamira today, where the planned 1.4mn t/yr Altamira Fast LNG export terminal is located.
2 February Rush for ammonia carrier newbuilds ramps up Orders for very large ammonia and LPG carriers are dominating the newbuild market this year, as gas carriers constituted 68pc of vessels ordered between 19 January and 26 January.
1 February European marine biodiesel levels buoyed by fossil gains Marine biodiesel blend prices in Europe rose in the second half of January as firming conventional fuel oil prices lent support to the products.
1 February India's ammonia demand to slow further on high stocks Indian buyers will likely continue staying out of the spot ammonia market in the coming weeks, on high inventory levels and reduced operating rates at downstream phosphate fertilizer production plants.
31 January Portugal biodiesel firm plans tenfold capacity hike Portuguese methyl-ester (Fame) biodiesel producer BioAdvance is about to open a new plant which will more than double its production of the fuel while it prepares for a tenfold increase in the new plant's capacity over the next few years.
31 January Japan's NYK to charter LNG-fuelled vessels Japanese shipping company Nippon Yusen Kaisha (NYK Line) plans to charter LNG-fuelled ships for Japanese utility Jera and steel producer JFE Steel.
30 January TFG receives LNG bunker tanker in Singapore The bunker fuel supply joint venture TFG Marine received its first LNG dual-fueled bunker tanker to operate in Singapore.
30 January CMA CGM to procure green fuels from Masdar UAE's state-owned renewable energy company Masdar has agreed to supply green alternative fuels to France-based shipping company CMA CGM.
30 January B24 Med levels hit all-time high B24 dob Algeciras-Gibraltar prices rose to $816.75/t on 29 January, its highest since the price launched, as firming fossil fuel prices combined with biofuel supply uncertainty to support values.
30 January Maersk launches first large methanol-enabled vessel Danish shipping giant Maersk will put its first large methanol-enabled vessel into service in early February on the AE7 string, which connects Asia and Europe through the Suez Canal.
29 January Global biomethane up 12pc in 2023 driven by EU, US Global biomethane production increased by 12pc in 2023 to reach almost 8bn m³, with 80pc of growth driven by the US and the EU, according to the International Energy Agency (IEA).
29 January Seatrium delivers LNG bunker vessel for Pavilion Energy Singapore-based shipbuilder Seatrium has delivered the 12,000m³ Brassavola LNG bunkering vessel to Japanese shipowner Mitsui OSK, and will begin its charter with Singaporean firm Pavilion Energy to start operating offshore Singapore in February.
Conventional marine fuels
9 February VLSFO viscosity at 4-year high in 4Q Global viscosity levels for very low-sulphur fuel oil (VLSFO) rose in the fourth quarter to the highest since at least four years, according to French classification society Bureau Veritas.
9 February Key carrier releasing upper Miss. barges Major barge carrier American Commercial Barge Line (ACBL) will begin releasing barges next week from New Orleans, Louisiana, to destinations as far as north as Dubuque, Iowa.
9 February Fast steaming by diverted vessels buoys bunker demand Some of the ships diverting around the Cape of Good Hope to avoid the risk of being attacked by Yemen-based Houthis in the Red Sea appear to be fast steaming along their new routes, boosting bunker fuel demand and prices.
9 February US refiners upbeat despite dip in earnings US refiners' fourth-quarter financial results reveal a dip in earnings from the bumper profits of 2022, but the sector remains on a profitable footing overall and is in a confident mood.
9 February Atlantic basin diesel faces tight spring European diesel markets could be facing a tight spring as refinery maintenance and disruptions in the Red Sea make resupply difficult and expensive.
9 February More strikes planned at France's Fos port in Feb Cargo operations at the French Mediterranean port of Fos-Lavera will be suspended on 16, 22, and 27 February by nationwide strikes, according to shipping agency Ferrari.
9 February Brazil diesel importers face new obstacles Brazilian fuel buyers' interest in the diesel import market may soon see some barriers, as maintenance at US refineries and repairs at production units in Russia put upward pressure on prices.
9 February West Med LSFO imports rise after Red Sea diversions A wave of low-sulphur residual product rushed to satisfy sudden west Mediterranean bunker demand in January after attacks in the Red Sea rerouted shipping.
9 February Brazil diesel, gasoline imports rise in January Brazil diesel flows from overseas rose in January over a favorable arbitrage in the final stretch of 2023, while gasoline volumes moved up as importers increased inventories ahead of the VAT-like tax ICMS hike on 1 February.
8 February Los Angeles distillates rise on weather-related outages Los Angeles distillate and jet fuel cash differentials rose this week after stormy weather and floods in the region caused operational issues for major refineries in the area.
8 February ARA stocks retreat on slower imports Independently-held oil product stocks at the Amsterdam-Rotterdam-Antwerp (ARA) trading hub fell by 2pc on the week to reach 5.21mn t on 7 February, according to consultancy Insights Global, on the back of lower imports and steady demand across the barrel.
8 February Lower refining margins hits Neste's 4Q profits Finnish refining company Neste's profits from its oil product sector were up year-on-year in the fourth quarter, but overall profits for the year were down compared to 2022 as refining margins weakened.
8 February Singapore oil product stocks fall across barrel Singapore's overall oil product stocks dropped after a sharp surge the previous week, as inventory levels fell across the barrel, showed latest data from Enterprise Singapore.
7 February Olmeca refinery unlikely to start output in Feb Mexican state-owned Pemex's 340,000 b/d Olmeca refinery will not start commercial operations in February as Pemex and the government pledged, market sources say.
7 February ExxonMobil Rotterdam refinery to start maintenance ExxonMobil will begin a maintenance turnaround at its 191,000 b/d Rotterdam refinery with several units affected from 12 February, the company confirmed today.
5 February ME Gulf MR rates surge to 19-month high on low supply Mideast Gulf clean Medium Range (MR) vessel rates surged from mid-January to hit a 19-month high on 2 February, driven by a surge in African imports and reduced vessel availability.
5 February India's gasoline demand rises in January, diesel falls India's gasoline and LPG demand consumption rose on the month in January, while demand for diesel and jet fuel declined during the month.
5 February S Korea's S-Oil sees elevated refining margins in 2024 South Korean refiner S-Oil expects regional refining margins to remain at above-average levels in 2024, because of steady demand growth and low inventories.
5 February Kuwait's al-Zour refinery hits full capacity Kuwait's 615,000 b/d al-Zour refinery has reached maximum capacity, according to operator KPIC on 4 February.
2 February US Gulf coast fuel oil diffs at 11-month high US Gulf coast low-sulphur fuel oil (LSFO) premiums to high-sulphur fuel oil (HSFO) have risen to the widest premium in 11 months amid steady bunkering demand and heavy refinery turnaround work.
2 February Japan's refinery sector dogged by oil security risk Japan's oil refining industry is expected to shrink as the country moves forward with its decarbonisation efforts. But oil still has an important long-term role to play in sustaining domestic economic activity, and Japan's ageing refineries and growing dependence on supply from a geopolitically unstable Middle East are two areas of heightened energy security concern for Tokyo.
2 February Middle East fuel oil exports to rise in first quarter Low-sulphur fuel oil exports from the Middle East will increase in the first quarter, buoyed by a refinery unit shutdown in the UAE and returning supply from the Kuwaiti market.
2 February ARA diesel above NY for first time in 15 months Diesel barges loading at ARA were priced above those loading at New York harbour on 1 February, for the first time in 15 months, as European values have been pushed up by disruption to shipping around Yemen while US values have been held down by extremely high Russian exports to Latin America.
2 February Chemical tanker rates high but volatile in 2024: Stolt Increased seaborne trade and a low orderbook could push chemical tanker rates to new highs this year, but disruptions in some of the world's key shipping routes risk volatility, according to Stolt Tankers, the chemical tanker division of Norway's Stolt-Nielsen.
2 February Sri Lanka's LIOC issues MR freight tender for LSFO Sri Lankan importer Lanka IOC (LIOC) issued a spot freight tender to move a Medium Range (MR)-sized low sulphur fuel oil (LSFO) cargo for March loading.
1 February Uruguay to increase Montevideo's port depth Argentina has approved Uruguay's long-pending request to increase depth at the port of Montevideo, allowing dredging work to begin later this year.
1 February Royal Caribbean swings to 4Q profit US-based cruise ship operator Royal Caribbean swung to a profit in the fourth quarter on strong bookings.
1 February ARA stocks rise on road fuels build up Independently-held oil product stocks at the Amsterdam-Rotterdam-Antwerp (ARA) trading hub added almost 5pc on the week to reach 5.31mn t on 31 January, on the back of strong road fuels imports, according to data from consultancy Insights Global.
1 February Fast steaming by diverted vessels buoys bunker demand Some of the ships that are diverting around the Cape of Good Hope to avoid the risk of Houthi attacks in the Red Sea appear to be fast steaming to mitigate the impact of longer journeys, boosting bunker fuel demand and prices in an already tight South African market.
1 February TotalEnergies to take on three new bitumen tankers TotalEnergies will operate three new-build 8,000 deadweight tonne (dwt) bitumen tankers, with the first to be delivered in the final quarter of 2025 and the others in 2026.
1 February Singapore light distillate stocks rise to 7-month high Singapore's onshore oil product inventories rose to a 7½-month high of 44.75mn bl in the week to 31 January, as stock levels grew across the barrel.
1 February Clean NE Asia MR rates at 13-month high on export surge Northeast Asian clean Medium Range (MR) vessel rates surged from mid-January to hit a 13-month high this week, driven by a surge in oil product exports and reduced vessel supply.
31 January India's BPCL outline refinery shutdowns for Kochi, Bina Indian state-controlled refiner Bharat Petroleum (BPCL) plans to shut its 311,000 b/d Kochi and 157,000 b/d Bina refineries for 15 days each in the April 2024-March 2025 fiscal year for scheduled maintenance and turnarounds.
31 January Mideast Gulf dirty Aframaxes eye cleaner prospects Aframax shipowners are being encouraged to clean up their vessels because of much higher earnings for similar size clean Long Range (LR) 2 tankers.
31 January Pakistan's Attock Refinery plans Feb partial shutdown Pakistan's Attock Refinery (ARL) has plans to partially shut its 53,400 b/d refinery for a month-long scheduled turnaround on 10 February, according to an ARL notice to the stock exchange.
30 January Red Sea tensions boost US Gulf-EU MR diesel flow Higher freight costs and longer voyages associated with the threat of shipping attacks in the Red Sea are deterring traders from sending diesel from the Mideast Gulf to Europe, encouraging more loads of US Gulf coast diesel to Europe instead.
30 January Maersk halts voyages to Djibouti Danish shipowner Maersk said it will temporarily cancel all bookings to Djibouti from Europe, west Africa, and the Americas
30 January European VLSFO-HSFO spread hit ten-month high The Very-low-sulphur fuel oil (VLSFO) premium to high-sulphur fuel oil (HSFO) — the so-called Hi5 spread — in northwest Europe hit nearly $140/t yesterday, its widest in ten months, supported by rising demand in the west Mediterranean region.
30 January Saipem confirms pipelay vessel incident in Australia Italian energy contractor Saipem has said an incident occurred earlier today at its Castorone vessel off the coast of Australia during normal pipe-laying operations.
30 January Spain's Bilbao refinery takes coker offline Spanish integrated energy company Repsol's Petronor subsidiary has shut a 2mn t/yr delayed coking unit at its 220,000 b/d Bilbao refinery in northern Spain for a week of maintenance.
29 January Strikes planned at France's Med Fos port in February Cargo operations at the French Mediterranean port of Fos-Lavera will be suspended on 5, 7 and 9 February by nationwide strikes, according to shipping agency Ferrari.
29 January No disruptions from Red Sea crisis: Indian refiner HPCL The disruptions to crude and oil product cargoes through the Red Sea have not affected any shipments of Indian state-controlled refiner HPCL, its chairman and managing director Pushp Joshi said.
29 January Ice gasoil prices, spreads jump after tanker attack Ice gasoil futures prices are higher today after the first significant strike by Yemen's Houthi rebels on an oil tanker raised the prospect of supply shortfalls in Europe.
29 January Asian HSFO flips into contango on oversupplied market Singapore 380cst high-sulphur fuel oil (HSFO) markets have flipped into a contango structure, because of more inflows to the city state and decreased demand from Chinese refiners.
