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Idemitsu completes biofuel trial for bunkering vessels

  • Market: Biofuels, Oil products
  • 05/09/24

Japanese refiner Idemitsu has completed a test of mixed biofuel using fatty acid methyl ester (Fame) for bunkering vessels in the Hokkaido area ahead of commercial use.

Idemitsu carried out a trial for 10 months starting in September 2023, using a 24pc Fame mixture of used cooking oil collected from convenience stores in Hokkaido with existing marine fuel oil. The mixed biofuel can be used in the same applications as existing marine fuel oil without any changes to equipment specifications or operating conditions in cold climates, Idemitsu said.

Mixed biofuel is able to cut 20pc of carbon dioxide compared with existing marine fuel oil. But there has been difficulty in using it in sub-zero temperatures, which results in solidification and oxidation.

Idemitsu will increase use of the bio-mixed marine fuel to areas other than Hokkaido, in its effort to achieve the country's 2050 decarbonisation goal.


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18/06/25

Israel-Iran conflict raises European middle distillates

Israel-Iran conflict raises European middle distillates

London, 18 June (Argus) — The continuing and escalating conflict between Israel and Iran is rallying European jet fuel and diesel values, due to fears of supply tightness. The rise in middle distillate values has outstripped those in crude in the past week, suggesting European jet fuel and diesel markets are pricing in the risk of substantial supply constraint arising from Israeli-Iranian tensions. This has not happened yet, with the conflict in a sixth day. Front-month Ice gasoil futures — the underlying value in Argus' European jet fuel and diesel assessments — settled at $731/t on Tuesday, 17 June, up by $45.75/t on the day. This was the highest settlement since 20 February, and the largest daily increase since the start of the Russia-Ukraine war in 2022. Argus priced cif northwest European jet fuel and fob ARA diesel at $789.75/t and $744.50/t on Tuesday, the highest assessments since January. Refining margins for cif northwest European jet fuel and diesel to North Sea Dated crude were $5.17/bl and $4.07/bl higher on the week, at $22.46/bl and $22.45/bl respectively, at Tuesday's close. This is the widest jet fuel crack in a year and the widest diesel crack since February. Although supply has not yet been affected, freight sources told Argus they expect Additional War Risk Premiums (AWRPs) in the Mideast Gulf to rise sharply in the coming days, which could weigh heavily on arbitrage economics to Europe and dissuade shippers from sending product to the region. Loadings of 10ppm diesel and jet totaled 430,000 b/d and 460,000 b/d respectively from ports in the Mideast Gulf in May, according to Kpler, or 11pc and 28pc of global daily loadings. With much of this heading to European destinations, the prospect for disruption is clear. Prompt supply concerns are also reflected through the difference between front- and second-month Ice gasoil futures contracts. The backwardation structure steepened from $9.75/t on Monday to $15/t at Tuesday close. Backwardation between the second- and third-month contracts stretched to $10/t on Tuesday, the widest since February. This suggests concern that supply issues could persist for several months. Europe was already facing unworkable diesel arbitrages for cargoes loading from east of Suez ports for northwest European destinations. Seasonal European jet fuel demand usually relies on supply from the Middle East, the largest jet fuel exporting region to Europe. By Amaar Khan and George Maher-Bonnett Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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LNG as a marine fuel demand could rise by 2035: Panel


17/06/25
News
17/06/25

LNG as a marine fuel demand could rise by 2035: Panel

New York, 17 June (Argus) — Demand for LNG as a marine fuel will increase within the next 10 years if supply is boosted by exports from the US and Russia, according to Danish bunker supplier Monjasa. An increase in US and Russian LNG exports would make it a more viable option in the marine fuel market compared with conventional bunker fuel, Monjasa chief executive, Anders Østergaard said today at the Marine Money convention in New York. "If more Russian and more American LNG would come into the global markets, then I truly believe — and we've seen that before the war between Russia and Ukraine — that the price of LNG would beat the price of both fuel oil and diesel oil," Østergaard said. Conventional marine fuels, such as high-sulphur fuel oil and very low-sulphur fuel oil, will remain the dominant fuels in the bunker market in the next 10 years like it is today, according to Østergaard. Demand for other potential alternative marine fuels, like ammonia and methanol, are not likely to pick up by 2035 because the cost to use those fuels is not competitive unless regulations to use those fuels are changed, he said. There is currently not much US LNG in the global market because of restrictions on export permits put in place during former US president Joe Biden's administration. President Donald Trump lifted the ban earlier this year and has been approving export licenses for proposed LNG terminals. The EU has relied less on Russian gas and oil imports since Russia invaded Ukraine in 2022 and it is proposing to phase out all gas and oil imports by January 2028. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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UN Bonn climate talks delayed by agenda disagreements


17/06/25
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17/06/25

UN Bonn climate talks delayed by agenda disagreements

Edinburgh, 17 June (Argus) — The start of UN climate talks in Bonn, Germany, has been delayed as a result of agenda disagreements over finance and trade measures. The Bonn technical negotiations — halfway-point talks before the UN Cop 30 conference in Brazil — were scheduled to begin on 16 June, but the plenary was suspended as parties failed to agree on an agenda. The opening meeting is due to restart later today. Bolivia — acting on behalf of the Like-Minded Group of Developing Countries (LMDC) negotiating group — proposed two additional items to the provisional agenda. The LMDC group also includes countries such as China, Saudi Arabia, Cuba and Vietnam. The group's first proposed agenda item seeks to add a line on the implementation of Article 9.1 of the Paris Agreement relating to the provision of climate finance to developing countries from developed nations. The EU opposed the agenda item as proposed by the LMDC, and asked for references to Article 9.2 and 9.3, which relate to the provision of finance by "other parties" and sources of finance. The LMDC rejected this counterproposal. Finance remains a central issue in climate negotiations. At Cop 29 last year, almost 200 countries agreed on a new goal to provide $300bn/yr in climate finance to developing nations by 2035. The Cop 29 finance outcome was significantly lower than the trillions of dollars sought by developing countries, which expressed frustration at the time. But the Cop 29 text also called on "all actors… to enable the scaling up of financing to developing country parties for climate action from all public and private sources to at least $1.3 trillion/yr by 2035". Consultations on a roadmap to achieve that level will take place in Bonn. The second agenda item proposed by the LMDC relates to "promoting international co-operation and addressing the concerns with climate change related trade-restrictive unilateral measures" — namely the EU's carbon border adjustment mechanism (CBAM). The CBAM was a point of contention during the Cop 28 and 29 talks, with countries such as China and Brazil raising concerns about its impact on developing countries. The mechanism aims to create a level playing field by imposing an effective carbon price on imports to the EU in sectors covered by the bloc's emissions trading system (ETS). This is to prevent EU-based firms from moving carbon-intensive production to non-EU jurisdictions with lower carbon costs, and to avoid EU products being replaced by more carbon-intensive imports. The European Commission expects the CBAM, when fully phased in, to capture more than half of the emissions covered by the bloc's ETS. The scheme's full implementation starts on 1 January 2026, but its impact is already starting to be felt . Six emissions-intensive industries are included under CBAM's scope at present — cement, fertilizers, iron and steel, aluminium, electricity and hydrogen. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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India's HPCL plans another expansion at Vizag refinery


17/06/25
News
17/06/25

India's HPCL plans another expansion at Vizag refinery

Mumbai, 17 June (Argus) — Indian state-owned refiner HPCL plans another expansion at its Visakhapatnam (Vizag) refinery, and will raise its capacity to 401,000 b/d in the next five years from the current 301,000 b/d, the refinery's executive director Ramanathan Ramakrishnan said. The refinery underwent an expansion in 2023 when its capacity was raised to 270,000 b/d. Crude processing at the refinery was up by 21pc on the year at 307,000 b/d in the April 2024-March 2025 fiscal year, oil ministry data show. The refinery will be processing more than 321,000 b/d of crude in the 2025-26 fiscal year and 361,000 b/d over the next five years to meet the country's increasing energy demand, Ramakrishnan said on 16 June. Under the expansion plan, the refinery will add a 9mn t crude distillation unit, a 3mn t vacuum gas oil hydrocracker, a 3.55mn t residue upgradation facility, gas turbine generators, two trains of hydrogen, a sulphur recovery unit, an isomerization unit and associated tankages and facilities. HPCL expects to commission the residue upgradation unit at its refinery by July-September 2025. While the refinery does not have a petrochemical complex due to space constraints, HPCL intends to produce specialty chemicals and continue focusing on producing gasoline and diesel. The construction of HPCL's 180,000b/d refinery in Barmer is expected to be completed soon and the plant is expected to take in crude by October. The refinery is a joint venture between HPCL with a 74pc stake and the Rajasthan state government with 26pc. HPCL also has a 190,000 b/d refinery in Mumbai, and a 226,000 b/d refinery in Punjab in a joint venture with Mittal Energy. HPCL's sales of oil products in domestic markets rose by 6pc on the year to 47.29mn t in April 2024-March 2025. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Israel’s Haifa refinery shuts after Iran missile strike


17/06/25
News
17/06/25

Israel’s Haifa refinery shuts after Iran missile strike

London, 17 June (Argus) — Israel's 197,000 b/d Haifa refinery has halted operations after a missile strike by Iran damaged its power supply over the weekend of 14-15 June, operator Bazan said. Bazan had initially continued processing crude after the attack while shutting some secondary units. But it has now shut all units, citing significant damage to the power plant that supplies electricity to the refinery complex. The site also produces petrochemicals. The company said it is working with state utility Israel Electric Corporation to restore power to the site. Israel has no domestic crude production, leaving Bazan reliant on imports to supply the refinery. The country's only other refinery is in Ashdod, with a capacity of 84,000 b/d. Other energy infrastructure targeted since the conflict started late last week includes two key gas treatment facilities and oil storage tanks in Iran. Israel has also taken its Leviathan and Karish gas fields offline as a precaution. By Aydin Calik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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