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US Coast guard restricts lower Mississippi drafts

  • Market: Agriculture, Coal, Fertilizers, Freight, Oil products, Petroleum coke
  • 03/09/24

The US Coast Guard (USGC) set new towing and draft restrictions for the lower Mississippi River on 31 August, as water levels continue to decline.

For southbound traffic from Tiptonville, Tennessee, to near Greenville, Mississippi, barge drafts must remain under 10.5ft and no more than six barges wide, according to the USGC. From Greenville to Tunica, Mississippi, southbound barge drafts must be under 10ft. Boats can tow six barges wide, but no more than four of those barges can be loaded.

Northbound movement from Tunica to Tiptonville must keep drafts below 10ft and cannot be more than six barges wide and no more than four barges loaded.

These new restrictions arrived five days after the previous draft restriction issued by the USGC.

Memphis, Tennessee, water levels fell below the low water threshold of -5ft over the holiday weekend, at nearly -6ft as of 3 September according to the National Weather Service (NWS). As many as six other points on the lower Mississippi River are at their low water thresholds with others expected to reach their thresholds this week.

Low water has already spurred an increase in southbound tariff values, which will likely be exacerbated as US crop harvests progress.

The next 48hrs in the Memphis area is forecast to receive no rain, while the southern half of Mississippi and most of Louisiana may see 0.5-2 inches of rainfall, according to NWS.


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11/10/24

Florida fuel supply edging toward normal post-storm

Florida fuel supply edging toward normal post-storm

Houston, 11 October (Argus) — Some Florida fuel terminals and a major refined products pipeline expect to restore operations over the weekend thanks to minimal damage from Hurricane Milton, but a return to normal in Port Tampa is being hampered by power outages. Kinder Morgan's Orlando terminal is operational but the company is still assessing its Tampa area terminals and the Central Florida Pipeline (CFPL) after Hurricane Milton made landfall as a category 3 storm late Wednesday, a spokesperson said at 3pm ET Friday. Kinder plans to have its Tampa fuels rack and 16-inch CFPL pipeline online by late Saturday and the 10-inch CFPL pipeline online by the end of the weekend. The company's three Tampa bulk terminals are likely to remain offline Friday due to widespread power outages and damage to the surrounding area. The CFPL pipeline transports gasoline, diesel, ethanol and jet fuel to Orlando, including to Orlando International Airport, and is connected to Kinder's Tampa refined products terminal that has 1.8mn bls of storage. Nearly half of Florida's supply of petroleum and refined products passes through Port Tampa Bay, the majority via waterborne cargo from the US Gulf coast. Port Tampa Bay is still assessing its land and seaside operations, port officials said this morning. It re-opened for limited operations late Thursday having avoided widespread flooding, though power outages in the area remain an issue. Global Partners' Tampa terminal is without power and running on generators, the company said today. Employees are cleaning up minor damage and Global expects the facility to be "fully operational soon". Buckeye Partners' Jacksonville and Fort Lauderdale, Florida, terminals are fully operational and the company is working to restore operations at its two Tampa terminals, a Buckeye spokesperson said today. Chevron is repairing damage at its Tampa terminal, but did not give a time line for a return to normal operations. The company's Port Everglades and Panama City terminals are online and selling fuels, the company said today. Citgo expects its Tampa terminal to restore operations by mid-to-late next week, the company said today. The St Petersburg-Clearwater International airport (PIE) west of Port Tampa is expected to open at 4pm ET Friday according to the Federal Aviation Administration. The Sarasota-Bradenton International Airport further south is expected to reopen early Saturday morning. Miami airport is open and Orlando International resumed commercial flights today. Prices for Florida CBOB delivered at Tampa and Port Everglades fell by 1.87¢/USG to $2.15/USG today. Cash differentials were stable in the Florida gasoline cargo markets at Argus Gulf coast Colonial CBOB +10¢/USG. Prices for Florida ULSD delivered to Port Everglades fell by 0.44¢/USG to $2.39/USG today. Cash differentials were unchanged in the waterborne ULSD cargo markets at Argus Gulf coast Colonial ULSD +12.25¢/USG. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Feds probing fatal Pemex Deer Park accident


11/10/24
News
11/10/24

Feds probing fatal Pemex Deer Park accident

Houston, 11 October (Argus) — The US Chemical Safety and Hazard Investigation Board (CSB) and Occupational Safety and Health Administration (OSHA) are both launching independent investigations into this week's fatal accident at Pemex's 312,500 b/d Deer Park, Texas, refinery. A hydrogen sulfide (H2S) release that killed two workers and injured dozens more occurred on Thursday evening at the plant located near Houston. It also led to shelter-in-place orders for surrounding communities, which have since been lifted. The CSB will investigate the causes of the fatal release, the agency said Friday. The CSB is responsible for investigating industrial accidents in the US, such as the deadly 2022 explosion at BP's Toledo refinery in Ohio and a probe into operations at Marathon's Martinez renewable diesel plant after several fires earlier this year . A representative for CSB was not immediately available for comment. OSHA — charged with enforcing compliance with federal workplace safety laws — is also investigating the incident, and has "up to six months" to complete the investigation, according to an OSHA representative. OSHA would not stop company operations during the duration of the investigation, but "could not speak for other agencies at the site," an OSHA official told Argus. The Harris County Sheriff's department has also opened an investigation into the incident. The release occurred as workers began planned maintenance on a unit. An H2S leak was detected, resulting in several units being shut down as staff sought to secure the leak. The Deer Park refinery had previously been damaged in a February 2023 fire, resulting in two weeks of repairs. A slew of accidents at Deer Park and several other Mexican state-owned Pemex's refineries in part led Fitch Ratings to downgrade Pemex's credit rating in July 2023 . By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Brazil's drought: Northern rivers continue to drop


11/10/24
News
11/10/24

Brazil's drought: Northern rivers continue to drop

Sao Paulo, 11 October (Argus) — The worst drought in Brazil's history continues to reduce river levels in the Northern Arc region, hampering navigation on rivers that are used as waterways and are important routes to transport grains and fertilizers. Madeira waterway The waterway links Rondonia state's capital Porto Velho to the Itacoatiara port, in Amazonas state. Itacoatiara port is expected to receive around 78,100 metric tonnes (t) of fertilizers in October, according to line-up data from shipping agency Unimar. Status: The situation is critical in Porto Velho on the Madeira waterway, the second largest in the northern region. The state's ports and waterways authority (Soph) halted operations on 23 September because the Madeira River registered the lowest water level since monitoring began in 1967. The Madeira River's depth in Porto Velho decreased to 24cm on 11 October, from 48cm on 2 October, according to monitoring data from the Brazilian Geological Survey (SGB). Navigation remains suspended in the port. Amazonas waterway It is the main waterway in Brazil's north, handling around 65pc of the region's cargo, according to the national transportation and infrastructure department (Dnit). It links Amazonas' capital Manaus to Para's capital Belem. Status: The Negro River has also been falling. The depth was at 12.25m at the SGB monitoring point in Manaus on 11 October, down from 12.89m on 2 October. This is an extreme drought level and below the historic low of 12.7m recorded in 121 years of monitoring. Tapajos waterway It is an important waterway to move product from Mato Grosso state's northern area, with the Santarem port, in Para state, as a destination. The Santarem port is expected to receive 90,976t of fertilizers in October, according to line-up data from Unimar. Status: The Tapajos-Teles Pires waterway is also facing a dire situation. The national water and sanitation agency ANA declared a water shortage on the Tapajos River on 23 September. Drier than usual weather has dropped the levels of Tapajos, especially in the stretch between Itaituba and Santarem cities, in Para state, where flows are below historic minimum levels. The depth of the Tapajos River at the Itaituba monitoring point, where the transfer point for the Miritituba waterway is located, was at 86cm on 11 October, from 87cm on 2 October and below the record low of 1.32m, according to SBG data. At the Santarem monitoring point, where the port of Santarem is located, the Tapajos River was at -6cm, a level considered dry. The level was 25cm on 2 October. The historic minimum at the location is -55cm below the port's reference point. A level below zero does not mean the river is dry, but a negative reading indicates very low conditions. Tocantins-Araguaia waterway The Tocantins-Araguaia waterway encompasses the Araguaia and Tocantins rivers. It runs from the Barra do Garcas city, in Mato Grosso, into the Araguaia River, or from Peixes city, in Tocantins state, into the Tocantins River, to the port of Vila do Conde, in Para state. Soybeans, corn, fertilizers, fuels, mineral oils and derivative products are transported via the northern waterways. Vila do Conde port is expected to receive 152,800t of fertilizer in October, according to Unimar. Status: The SGB has two monitoring points on the Araguaia River. In the Nova Crixas city, in Goias state, the river was at 2.84m on 11 October, from 2.87m on 2 October. The river remains below the historical level of 3.10m. In Sao Felix do Araguaia city, in Mato Grosso state, the river was at 2.54m, from 2.55m in the prior week, a situation of extreme drought and close to the historical minimum level of 2.51m. By João Petrini Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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USDA orders west African organic soy inspections


11/10/24
News
11/10/24

USDA orders west African organic soy inspections

St Louis, 11 October (Argus) — The US Department of Agriculture (USDA) is warning organic soybean importers that product from west Africa may pose risks to consumers and is directing organic certifiers to increase inspections and testing. USDA's National Organics Program (NOP) on 27 September issued a directive to certifiers of organic soybeans and soybean meal from west Africa requiring increase oversight of the organic soybean supply chain over concerns about a lack of adequate controls in the region. Organic certifiers in west Africa are being required to increase on-site inspections and expand sample testing of organic soy products. The certifiers also by 28 October must provide NOP with descriptions of their oversight practices, as NOP evaluates whether to expand its own surveillance. Regulators took action in response to "the rapid growth of soybeans represented as organic in the region, security concerns in the region that can impede the ability for certifiers to conduct unannounced inspections, the prevalence of producer groups with thousands of members and associated issues with full traceability, feasible yields and adequate internal control systems, and known attempts to sell nonorganic soybeans from the region as organic", according to the directive obtained by Argus. The directive also prohibits certifiers from issuing time-based NOP import certificates within the region. Time-based certificates allow for multiple shipments of organic products to be certified for export over a period of time, in contrast to non-time-based certificates which are specific to each shipment. The move comes in the wake of a sharp increase in US imports of organic soybeans and soybean meal from west Africa over the past two years. Organic certification within west Africa is relatively concentrated. According to the Organic Integrity Database, Ecocert SAS certifies over half of all organic operations in the region. The next most common certifier in the countries is the Control Union Certifications, which certifies about 33pc of operations. US reliance on west African organic soy supplies has ballooned in recent years. Through September 2024, 42pc of US organic soybean meal imports and 11pc of organic whole soybean imports were sourced from west African countries, according to Argus organic import data . Two years ago, west African countries accounting for only 3.6pc of US organic soybean meal imports. Regarding what impact this directive could have on organic soy markets, Jennifer Tucker, the deputy administrator of the USDA NOP, said that "in the past, directives have led to both certifier and operation surrenders and some changes in exports as fraud was removed from the system". But "buyers who have invested in and continue to do effective due diligence and oversight on their supply chains should not be affected," she said. By Ryan Koory and Rachel Nelson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Pemex Deer Park refinery H2S leak kills 2: Update


11/10/24
News
11/10/24

Pemex Deer Park refinery H2S leak kills 2: Update

Adds comment from Mexican energy minister, context from regulatory filings. Houston, 11 October (Argus) — A hydrogen sulfide (H2S) leak at Pemex's 312,500 b/d Deer Park, Texas, refinery on 10 October killed two workers and injured 35 more. The leak occurred accidentally during maintenance, according to a regulatory filing submitted by Pemex this morning. Several units, including an amine unit, an alkylation unit, a hydrocracker and a sulphur recovery unit were promptly shut and flaring was initiated so the leak could secured. Mexican energy minister Luz Elena Gonzalez said in a press conference in Mexico City Friday morning that the refinery was expected to restart operations later today. Deadly accidents at US refineries usually require extensive regulatory investigations by federal agencies, however, which require facilities or certain units at a plant to remain shut down. H2S is an extremely hazardous gas commonly produced as a byproduct of refining, which can be processed into pure sulphur in a sulphur recovery unit (SRU) or removed by hydrotreating. Shell's Deer Park petrochemical facility, located adjacent to Pemex's refinery, said it was doing a "controlled slowdown" of its operations as of 8:52pm yesterday in response to the accident as a precaution. A flaring event was initially reported by a Deer Park Office of Emergency Management (OEM) social media account at 6:23pm ET on 10 October. A shelter in place advisory was issued for all Deer Park residents in a follow-up notice and Texas State Highway 225 running adjacent to the refinery was also closed to traffic. Areas of nearby Pasadena were also placed under a shelter in place advisory. The Deer Park shelter in place was lifted at 10pm ET. The Pemex refinery had previously reported an aromatic concentration unit (ACU) leak on 6 October. Amine units strip H2S from methane gas generated by hydrotreaters. Alkylation units produce high-octane blendstocks used in gasoline. Hydrocrackers use hydrogen, pressure, and catalyst to produce distillates and gasoline low in contaminants like sulphur. SRUs help to remove sulphur and other impurities from refinery products and gas streams. By Gordon Pollock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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