Vertex plans Mobile refinery turnaround in March

Market: Biofuels, Crude oil, Oil products
28/02/24

Specialty refiner Vertex Energy is planning a turnaround at its 88,000 b/d Mobile, Alabama, refinery in March as it prepares to run at full rates during the driving season.

The turnaround includes a catalyst change for the plant's catalytic reforming unit and maintenance on its crude distillation unit (CDU), the company said on an earnings call today.

Vertex did not give a time line for the work but said it aims to run the refinery at full rates by peak summer demand season, which starts on Memorial Day weekend in late May.

The company plans to run throughputs of 60,000-63,000 b/d at the Mobile plant's conventional fuel refining operations in the first quarter and run its renewable diesel units at 3,000-5,000 b/d.

Vertex processed 71,000 b/d at the Mobile refinery in the first quarter of 2023, prior to starting the plant's renewable feedstock units.

By Nathan Risser

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17/04/25

Risks rising for possible recession in Mexico: Analysts

Mexico City, 17 April (Argus) — The Mexican finance executive association (IMEF) lowered its 2025 GDP growth forecast for a second consecutive month in its April survey, citing a rising risk of recession on US-Mexico trade tensions. In its April survey, growth expectations for 2025 fell to 0.2pc, down from 0.6pc in March and 1pc in February. Nine of the 43 respondents projected negative growth — up from four in March, citing rising exposure to US tariffs that now affect "roughly half" of Mexico's exports. The group warned that the risk of recession will continue to rise until tariff negotiations are resolved, with the possibility of a US recession compounding the problem. As such, IMEF expects a contraction in the first quarter with high odds of continued negative growth in the second quarter — meeting one common definition of recession as two straight quarters of contraction. Mexico's economy decelerated in the fourth quarter of 2024 to an annualized rate of 0.5pc from 1.7pc the previous quarter, the slowest expansion since the first quarter of 2021, according to statistics agency data. Mexico's statistics agency Inegi will release its first estimate for first quarter GDP growth on April 30. "A recession is now very likely," said IMEF's director of economic studies Victor Herrera. "Some sectors, like construction, are already struggling — and it's just a matter of time before it spreads." The severity of the downturn will depend on how quickly trade tensions ease and whether the US-Mexico-Canada (USMCA) free trade agreement is successfully revised, Herrera added. But the outlook remains uncertain, with mixed signals this week — including a possible pause on auto tariffs and fresh warnings of new tariffs on key food exports like tomatoes. IMEF also trimmed its 2026 GDP forecast to 1.5pc from 1.6pc, citing persistent tariff uncertainty. Its 2025 formal job creation estimate dropped to 220,000 from 280,000 in March. The group slightly lowered its 2025 inflation forecast to 3.8pc from 3.9pc, noting current consumer price index should allow the central bank to continue the current rate cut cycle to lower its target interest rate to 8pc by year-end from 9pc. IMEF expects the peso to end the year at Ps20.90/$1, slightly stronger than the Ps21/$1 forecast in March. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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India's ONGC wins 15 blocks in upstream oil, gas bid

17/04/25

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17/04/25

India's ONGC wins 15 blocks in upstream oil, gas bid

Mumbai, 17 April (Argus) — Indian state-controlled upstream firm ONGC has won 15 of the 28 blocks offered for bidding in the ninth round under the Hydrocarbon Exploration and Licensing Policy's (HELP's) Open Acreage Licensing Policy (OALP). Three of these were with ONGC's joint venture with state-run Oil India, while another was in a consortium with BP and private-sector refiner Reliance Industries (RIL). This is the first time BP, RIL and ONGC have partnered and won a shallow-water block in the Saurashtra basin. ONGC has a 40pc stake in the consortium, with RIL and BP having 30pc each, a trading source said. RIL-BP had jointly won an ultra-deepwater block in the Krishna Godavari basin in the eighth round. Private-sector Vedanta, which had bid for all 28 oil and gas blocks, won seven blocks. Oil India won six blocks on its own and three in collaboration with ONGC. Private-sector firm Sun Petrochemicals, which had bid for seven blocks in this ninth round, did not secure any blocks. Interest from the private sector was relatively higher in this bidding round, but it remains mostly dominated by state-controlled firms. Foreign participation in the Indian exploration sector remains low. The ninth round saw 28 blocks auctioned(https://direct.argusmedia.com/newsandanalysis/article/2524414) across an area of 136,596.45 km². India has awarded 144 exploration and production blocks comprising a total area of 242,055 km² in eight previous rounds. India in March passed the Oilfields (Regulation and Development) Amendment Bill 2024 , which aims to simplify regulations, attract investment, and enhance exploration and production capabilities. It also allows granting oil leases on stable terms, along with sharing of production facilities and infrastructure. It also scrapped the windfall tax on domestic crude oil production in December 2024. The ministry said it is working on new frameworks to address challenges related to the upstream sector. India imports around 89pc of its crude requirements, despite efforts to reduce its dependency on imports. Crude imports in January-February rose by over 1pc on the year to 5.01mn b/d, oil ministry data show. During the same period, its total crude production fell by over 1pc from a year earlier to 539,000 b/d. By Roshni Devi India OALP blocks ninth bidding round Basin Type Block Area (km²) Awardee Cauvery Basin Ultra-deepwater CY-UDWHP-2022/1 9,514.63 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/2 9,844.72 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2022/3 7,795.45 ONGC Cauvery Basin Ultra-deepwater CY-UDWHP-2023/1 5,330.49 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/1 5,585.61 ONGC Saurashtra Basin Shallow water GS-OSHP-2022/2 5,453.96 ONGC - BPXA – RIL Saurashtra Basin Onland GS-ONHP-2023/1 2,939.56 Vedanta Saurashtra Basin Shallow water GS-OSHP-2023/1 ,5408.79 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/1 7,699.00 ONGC Saurashtra Basin Ultra-deepwater GS-UDWHP-2023/2 8,446.28 ONGC Saurashtra Basin Onland GS-ONHP-2023/2 2,977.28 Vedanta Saurashtra Basin Onland GS-ONHP-2023/3 2,793.08 Vedanta Cambay Basin Onland CB-ONHP-2022/2 7,13.92 ONGC- OIL Cambay Basin Shallow water CB-OSHP-2023/1 1,873.66 Vedanta Cambay Basin Onland CB-ONHP-2023/1 446 OIL Cambay Basin Onland CB-ONHP-2023/2 636 Vedanta Cambay Basin Onland CB-ONHP-2023/3 416 ONGC Cambay Basin Shallow water CB-OSHP-2023/2 477 Vedanta Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/1 9,466.85 ONGC - OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/2 9,425.84 OIL Mahanadi Basin Ultra-deepwater MN-UDWHP-2023/3 9,831.48 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/1 9,495.16 OIL Krishna-Godavari Basin Ultra-deepwater KG-UDWHP-2023/2 9,223.22 OIL Mumbai Offshore Shallow water MB-OSHP-2023/1 2,935.19 ONGC Mumbai Offshore Shallow water MB-OSHP-2023/2 1,749.74 Vedanta Assam Shelf Basin Onland AS-ONHP-2022/2 784 ONGC - OIL Assam Shelf Basin Onland AS-ONHP-2022/3 2,168.09 OIL Kutch Basin Shallow water GK-OSHP_x0002_2023/1 3,164.61 ONGC Source: Oil ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Saudi petchem expansion plans to cap naphtha exports

17/04/25

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17/04/25

Saudi petchem expansion plans to cap naphtha exports

Dubai, 17 April (Argus) — Saudi Arabia's plans to integrate downstream petrochemical units with its oil refineries could weigh on naphtha exports and gasoline blending. State-controlled Aramco recently signed a deal with Chinese state-controlled Sinopec to build and integrate a 1.8mn t/yr mix-feed ethylene steam cracker and a 1.5mn t/yr aromatics complex into the 400,000 b/d Yasref refinery. This sort of integration would typically redirect naphtha to the petrochemical units and away from the gasoline blending pool, traders said. Market participants point to a likely fall in overall Saudi naphtha exports, as has been the case since the integration of petrochemical operations at the 400,000 b/d Jizan and PetroRabigh refineries in 2021 and 2008, respectively. Joint Organisations Data Initiative (Jodi) data show Saudi naphtha exports in steady decline to 93,000 b/d in 2024, 108,700 b/d in 2023, 144,800 b/d in 2022 and 169,200 b/d in 2021. Data from Kpler show naphtha exports from the Yasref refinery at 22,000 b/d in 2024, down from 25,000 b/d a year earlier but higher than 19,000 b/d in 2022. The majority of these exports went to Indonesia, Malaysia and South Korea. Yasref has the capacity to produce 112,000 b/d gasoline but it exported only 17,000 b/d in 2024 and 26,000 b/d in 2023. Market participants said the integration may not have any immediate significant effect on gasoline output but the addition of the aromatic complex, in theory, could need pull in more heavy full-range naphtha that is otherwise used as a blendstock for gasoline production. It remains to be seen if the new mixed feed cracker would favour naphtha or LPG as a feedstock. Ethane accounts for the majority of feedstock for Saudi crackers. The shift of focus from producing transportation fuels to petrochemicals comes as Saudi gasoline demand continues to lag pre-pandemic levels and faces pressure from growing uptake of electric vehicles. Saudi gasoline demand averaged 514,000 b/d in 2024, well below the 550,000 b/d in pre-pandemic 2019, mainly because of higher retail prices . Aramco has a target to process up to 4mn b/d of crude into petrochemicals by 2030, from 1mn b/d currently. It is developing an $11bn petrochemical expansion project at the 460,000 b/d Satorp refinery joint venture with TotalEnergies. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Japan’s Mitsui invests in US e-fuel producer

17/04/25

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17/04/25

Japan’s Mitsui invests in US e-fuel producer

Tokyo, 17 April (Argus) — Japanese trading company Mitsui has invested in California-based synthetic fuel (e-fuel) producer Infinium, aiming to acquire knowledge on technology and commercialisation in the emerging sector. The investment in Infinium was conducted in March, Mitsui told Argus on 16 April, declining to disclose the specific amount. This marks Mitsui's second investment in e-fuel producers. The firm invested in California-based synthetic sustainable aviation fuel (e-SAF) producer Twelve Benefit . Infinium produces green hydrogen from water by electrolysis, and converts the hydrogen and CO2 into e-fuels by using renewable energy. The firm is planning to launch its second plant, which will specialise in e-SAF production. International Airlines Group (IAG) and American Airlines have agreed to receive the e-SAF that will be produced at the plant. E-fuels can help reduce over 90pc of greenhouse gas (GHG) emissions compared with conventional fossil fuels, and are notable as "drop-in" substitutes for conventional fuels, applicable to existing engines and infrastructures, Mitsui said. Mitsui is observing the e-SAF market. SAF is a relatively promising prospect in the renewable energy sector, on the back of the target by the UN's International Civil Aviation Organisation (ICAO) to achieve net-zero emissions in international aviation by 2050, as well as governmental policies bolstering the deployment of SAF, a representative of the firm told Argus . Japan plans to replace 10pc of the jet fuel consumed by domestic airlines with SAF in 2030. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Valero Benicia refinery closure latest Calif challenge

16/04/25

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16/04/25

Valero Benicia refinery closure latest Calif challenge

Adds details on refinery operations, California regulations. Houston, 16 April (Argus) — US refiner Valero is planning to shut or re-purpose its 145,000 b/d refinery in Benicia, California, compounding the state's fuel market challenges. The company submitted a notice to the California Energy Commission (CEC) today of its intent "to idle, restructure, or cease refining operations" at the refinery by the end of April 2026. Valero also said it continues to evaluate strategic alternatives for its remaining operations in the state, namely its 85,000 b/d Wilmington refinery. Valero said previously west coast refinery closures were likely , citing the high cost of doing business in the state given its environmental and financial regulations. California refiners in recent years have faced what the industry views as a restrictive environment for processing crude. Phillips 66 last year said it would shut its 139,000 b/d Los Angeles refinery, saying that the long-term sustainability of the refinery was uncertain and affected by market dynamics. The Phillips 66 refinery will be shut by October. Growing legislative barriers California governor Gavin Newsom last year signed two laws, SB X1-2 and AB X2-1, which added regulations in an effort to reduce retail gasoline price volatility. The measures authorized the CEC to develop and impose requirements for in-state refiners to maintain minimum stocks of gasoline and gasoline blending components. They also authorized the CEC to determine an acceptable refining margin in the state and penalize companies that exceed it. The agency is currently in the rulemaking process on some of the measures including a requirement for refiners to submit "resupply plans" 120 days before planned maintenance that must be approved by the state. Non-compliance could carry a civil penalty of $100,000-$1mn per day. Separately, the city of Benicia recently approved a safety ordinance that applies to industrial facilities that handle hazardous materials including the Valero refinery. The ordinance included new air quality monitoring programs. California air regulators in October 2024 levied an $82mn fine against Valero for emissions violations at the Benicia refinery. The Bay Area Air Quality Management District and California Air Resources Board announced the penalty for "egregious emissions violations" stemming from a 2019 inspection that discovered unreported emissions coming from the refinery's hydrogen system. Since the 1980s, 29 refineries in California have been shut or integrated with other refineries that eventually closed or converted to renewable fuels production, according to CEC data. About half of the shut refineries were smaller operations, producing less than 20,000 b/d. Chevron, the US oil major that has long complained about a hostile regulatory environment in its home state of California, is relocating its headquarters to Houston. Valero said this week it recorded a pre-tax impairment charge of $1.1bn for the Benicia and Wilmington refineries in the first quarter as it evaluates strategic alternatives. The impairment will be treated as a special item and excluded from first quarter earnings, Valero said. The Benicia refinery produces jet fuel, gasoline, diesel, and asphalt and has more than 400 employees. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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