IMO should be quicker on emissions: Marine fuels market
The International Maritime Organisation (IMO) needs to move faster on measures to meet the greenhouse gas (GHG) emissions targets, market participants have said, with the next Marine Environment Protection Committee (MPEC) meeting in September-October viewed as a key point for the group to lay out its future plans.
Delegates that attended MPEC 81 in London last month broadly welcomed the meeting's outcomes but said more needs to be done, and quicker, in order to meet the revised 2023 GHG targets adopted at MEPC 80 last year.
MEPC 81 approved LCA guidelines around the emissions of carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). It also adapted a new 'IMO net-zero framework' that will form the basis for an economic pricing mechanism.
The latter will probably be adopted at MPEC 82, scheduled for 30 September–4 October. Some in the market some expect the mechanism to be set up as a 'levy' system on fossil fuels. The IMO has said its approach to the energy transition is "fuel-agnostic", but market participants said it should look to adopt guidelines and frameworks regarding the use of biofuels in shipping as a robust short-term solution, due to their capability as a "drop-in fuel" for existing marine engines.
IMO delegates from Argentina, China, Brazil, US, Kenya, and Italy said the mechanism is crucial for meet the revised 2023 GHG emissions targets. But the delegate from Togo stressed a need to allocate and provide funding for "vulnerable nations", stating the measures adopted at MPEC 81, and the development of the economic pricing mechanism, will probably increase global shipping costs — which may disproportionately affect developing countries.
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NGL pipeline burning in La Porte, Texas: Update
NGL pipeline burning in La Porte, Texas: Update
Houston, 16 September (Argus) — A natural gas liquids (NGL) pipeline operated by Energy Transfer Partners caught fire in La Porte, Texas, this morning, sending a bright orange plume of flame hundreds of feet into the air and leading to evacuations of nearby homes and businesses. The fire started at a valve station for a 20-inch NGL line, Energy Transfer said, located in a right-of-way shared with a number of other pipelines and high voltage power lines about 17 miles southeast of downtown Houston. Energy Transfer said the line has been isolated so that the residual product in the line can safely burn itself out. "We have no timeline at this point on how long that process will take, but we are working closely with local authorities," the company said. In a broadcast press conference today La Porte officials said it would likely be many hours until the fire burns out. Energy Transfer said it was aware of reports indicating that an unknown passenger car entered the right-of-way and struck the valve location. A vehicle could be seen very close to the flaring pipeline in video broadcasts of the fire this morning. The fire was first reported at 11:24am ET by the La Porte Office of Emergency Management via the X social media platform. The fire is near the intersection of Somerton Drive and Spencer Highway. First responders, including Harris County hazardous materials officials, were on the scene at the time of the post. The right-of-way includes a refined products pipeline system, various petrochemical pipelines, a Shell butadiene line, a Chevron ethylene line and an Enbridge Energy natural gas pipeline. Chevron said its pipeline was not affected by the fire. A shelter-in-place order has been issued for the nearby San Jacinto College campus and La Porte is recommending an evacuation of all homes and businesses between Luella and Canada roads. By Michael Camarda and Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Pipeline fire reported in La Porte, Texas
Pipeline fire reported in La Porte, Texas
Houston, 16 September (Argus) — A pipeline fire is underway in La Porte, Texas, near a junction of several refined products, NGLs, chemicals, and natural gas pipelines. The fire, which was first reported at 11:24am ET by the La Porte Office of Emergency Management via the X social media platform is near the intersection of Somerton Drive and Spencer Highway, near a dense collection of pipelines. First responders, including Harris County hazardous materials officials, were on the scene at the time of the post. Large orange flames coming from a compressor station were visible on local news broadcasts and on social media. The source of the fire is not immediately clear. The right of way includes a refined products pipeline system, various petrochemicals pipelines, a Shell butadiene line, a Chevron ethylene line, as well as an Energy Transfer-owned natural gas liquids (NGLs) line and an Enbridge Energy natural gas pipeline. The city of La Porte was not immediately available for comment. A shelter in place order has been issued for the nearby San Jacinto College campus and La Porte is recomending an evacuation between Luella and Canada roads. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Energy firms on alert after flooding in Europe: Update
Energy firms on alert after flooding in Europe: Update
Adds details throughout Warsaw, 16 September (Argus) — Torrential rain has led to major flooding across large swathes of central and eastern Europe, causing power outages and significant damage to transport infrastructure in southwest Poland and the Czech Republic. Parts of Austria, Germany, Hungary, Slovakia and Romania are also affected. In Poland, most of the affected areas so far are in the southwest of the country close to the border with the Czech Republic including the towns of Jelenia Gora, Klodzko, Nysa and Glucholazy. Urban areas further down the Odra river are also at risk including the cities of Wroclaw and Opole, where elevated water levels are expected in the coming days. The Polish government held an emergency meeting earlier today and a state of emergency has since been declared in the affected areas. Polish utility company Tauron, which operates the electricity distribution network in the worst affected area, said some of its infrastructure was disconnected in several towns including Klodzko and Glucholazy. But Poland's power grid operator PSE said there has been no damage to transmission infrastructure. Likewise, Polish gas pipeline operator Gaz-System said it has not suffered any damage but remains in crisis mode. Polish train operator PKP Intercity suspended passenger rail traffic to and from the Czech Republic on 15 September until further notice, while local TV showed images of damaged road and waterways infrastructure, including bridges and dams as well as retail fuel stations. Poland's wholesale coal market, which is usually busy in the autumn, could stall in flood-hit areas for a few weeks as priority is given to the clean-up operation and repairing transport infrastructure, according to traders in the country. But Polish biofuel firm Bioagra, which operates a bioethanol plant near the flood-hit town of Nysa, told Argus that the facility continues to operate normally. In the Czech Republic, Orlen Unipetrol — operator of 108,000 b/d Litvinov and 66,000 b/d Kralupy refineries — said all its production sites continue to operate although the company has shut 11 of its service stations in the country. The firm said its crisis management team at each production site is monitoring the situation and it is in contact with authorities. Elsewhere in the Czech Republic, utility Veolia has had to shut plants in Ostrava and Krnov. Hungarian oil firm Mol — which operates service stations in Poland, the Czech Republic and Slovakia, as well as refineries in Hungary and Slovakia — told Argus that preparatory flood prevention works are underway. It is in contact with authorities and there is currently no threat to security of fuel supply, it said. Hungarian authorities expect water levels on the river Danube at Budapest to continue rising until the weekend, which could affect Veolia's 428MW gas-fired power plant at Gonyu upstream from the capital and potentially power firm MVM's 2GW Paks nuclear plant downstream from Budapest. Floods on smaller rivers Lajta and Raba in northwest Hungary are also yet to peak. Austrian refiner OMV said it has put in place precautionary safety and mitigation measures at its 193,700 b/d Schwechat refinery and two other sites at Gansendorf and Lobau in the federal state of Lower Austria, which was declared a disaster region on 15 September. No damage to property or people has been reported so far but OMV has closed four retail stations temporarily in the state as a precaution, it said. By Tomasz Stepien and Bela Fincziczki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
German heating oil demand rises as winter nears
German heating oil demand rises as winter nears
Hamburg, 16 September (Argus) — Demand for heating oil in Germany rose in the past week, as consumers build stocks in preparation for autumn and winter. Traders reported a rise in demand as temperatures dropped suddenly and prices were at the lowest since May 2023. Traded spot volumes for heating oil only increased by 3pc on the week, although this does not yet take into account volumes already planned for the coming weeks. Many traders' logistics are fully booked until the beginning of November. As a result, heating oil is being sold at higher prices and for longer loading periods in wholesale. After experiencing temperatures above 30°C the previous week, many places saw temperatures drop to around 15°C last week, with the Alps region experiencing snowfall. This sudden onset of autumn led to increased inquiries for heating oil. Low prices fuelled demand as well. Average national heating oil prices dropped by nearly €3.20/100l, making them the lowest since mid-May 2023 and slightly above prices in December 2021, before the Russian invasion of Ukraine. These low prices are primarily because of declining Ice gasoil futures and sufficient domestic supply. Shell's 187,000 b/d Godorf refinery, parts of TotalEnergies' 240,000 b/d Leuna refinery and the Scholven section of BP's 257,000 b/d Gelsenkirchen refinery are offline for maintenance or revisions, but sufficient stocks were accumulated earlier to meet current moderate demand, traders said. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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