India extends ban on foreign travel

  • Market: Oil products
  • 27/11/20

India has barred international travel until the end of this year amid a rebound in Covid-19 cases.

The ban, which was imposed in late March as part of the government's initial coronavirus lockdown, will now run until at least 31 December, further hitting jet fuel demand. Indian jet fuel sales fell by 54pc from a year earlier to 81,000 b/d in the first two weeks of November, according to initial data from state-run refiners. Sales in October were down by almost half to 90,000 b/d in from 177,000 b/d in the same month last year, oil ministry data show.

India has the world's second-highest Covid-19 case count at over 9.3mn, behind only the US. Cases have rebounded to almost 45,000 a day after falling to a four-month low under 30,000 earlier this month, despite the government cutting testing by over 200,000 every day. Many tests are unreliable anyway, experts say.

Indian refiners increased domestic jet fuel prices by 1.7pc to 42,931 rupees ($92.70/by) in Delhi for the second half of November, according to state-run refiner IOC, adding to airlines' costs. Jet fuel accounts for around 40pc of costs at Indian carriers, twice as much as at foreign airlines because of higher taxes.


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28/03/24

'Weeks, months' to reopen Baltimore waterway: professor

'Weeks, months' to reopen Baltimore waterway: professor

Houston, 28 March (Argus) — It could take weeks or even months to clear debris and reopen the waterway under the collapsed Francis Scott Key Bridge in Baltimore, Maryland, according to a engineering professor at the nearby Johns Hopkins University. As of Wednesday, there was no official timetable for the reopening of the Port of Baltimore after a major highway bridge over the Patapsco River was hit in the early hours of 26 March by a container ship and collapsed, with the debris and ship blocking the waterway. "I'd be shocked if it's weeks, but I don't think it'll take even a year" to clear the waterway, structural engineer and Johns Hopkins professor Benjamin Schafer said Wednesday. He expects the rebuild of the bridge to take significantly longer. "I've lived through quite a few civil infrastructure projects and they're rarely less than 10 years. So I think that's what we're looking at," Schafer said. He noted that it took five years to build the original Francis Scott Key Bridge and seven years to repair the Sunshine Skyway Bridge in Tampa Bay, Florida, after a similar collapse in 1980. Still, "this is definitely not a national supply chain crisis," John Hopkins operations management professor Tinglong Dai said Wednesday. "The effect will be mostly local, mostly minimal and mostly temporary." The bridge collapse and port closure is also unlikely to trigger a global supply chain crisis, he said. The Port of Baltimore is an important but "niche" port specializing in automobile imports and exports, Dai added. "The supply chain has evolved...I have already seen a lot of rerouting happening." Automakers started adjusting their supply routes away from the top port for US vehicle imports the day of the collapse, including General Motors, Ford and Mercedes-Benz. Baltimore is also a major port for coal exports, which may start to shift to terminals to the south in Hampton Roads, Virginia. Freight rates for ships that carry coal could see increases in global markets Other commodities like asphalt and caustic soda that move through the port will see challenges, while organic agriculture imports may see less problems due to seasonal flows. 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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Baltimore probe includes potential contaminated fuel


28/03/24
News
28/03/24

Baltimore probe includes potential contaminated fuel

New York, 28 March (Argus) — Federal authorities are examining whether the containership that crashed into the Francis Scott Key Bridge in Baltimore, Maryland, was burning contaminated marine fuel at the time of the incident. The National Transportation Safety Board (NTSB) said it will collect a sample of the fuel on board the 116,851-dwt container vessel Dali as part of its investigation into why the ship lost power and hit the bridge support early on 26 March, taking down the span. "That sample will be taken, and we will analyze the quality, any sort of contaminants, we will look at viscosity," NTSB chair Jennifer Homendy said this week. "That will be part of our investigation." Shipboard power is generally generated by turbines connected to the same engines driving propulsion. There are a number of issues related to fuel that could have led to a loss of power on the ship, according to Wajdi Abdmessih, chief executive at Seahawk Services, a marine fuel testing company based in New Jersey. The fuel on the ship could have been contaminated, as was the case last year when contaminated very low-sulphur fuel oil was found on a number of ships fueld through a Houston, Texas, bunkering operation, or it could have been a compatibility issue with the vessel's engine, where the fuel was not optimized for the equipment. "If the vessel switches between different types of fuels, compatibility and stability issues could occur, which may cause a problem with the engine," Abdmessih said. "Unstable fuel could cause increased sludging and high sediment, which could clog the filter and cause fuel starvation and engine downturns." Singapore-based Synergy Marine Group, which manages Dali , said it is taking part of this investigation but declined to comment possible causes of the accident, including possible fuel contamination. The pilots on board the vessel lost control because of a loss of propulsion, according to the Maritime and Port Authority of Singapore (MPA), which is assisting in the investigation because Dali was sailing under the Singapore flag. An issue with the ship's propulsion and auxiliary machinery was discovered during its June 2023 inspection in San Antonio, Chile , according to Equasis, a vessel information database. The problem involved the vessel's gauges and thermometers, according to the data. Its most recent inspection was in September 2023, but there are no indications of issues from the inspection. The vessel's next inspection was due in June 2024, the MPA said. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Stalling climate finance an energy security risk : WRI


28/03/24
News
28/03/24

Stalling climate finance an energy security risk : WRI

London, 28 March (Argus) — The "best bet" to achieving global energy security is through mitigation funding and multilateral cooperation, according to the World Resources Institute (WRI). WRI highlighted that governments are funding more domestic renewable energy projects but have increased oil and gas production in the name of "energy security" at home in the years following the Russia's invasion of Ukraine. The recent rebrand of energy transition funding to energy security funding has allowed some developed nations to justify domestic oil and gas licences and drag their feet on multilateral financial commitments. This is causing "real worry" among climate-vulnerable developing nations, WRI chief executive Ani Dasgupta said. He said that although the initial "shock" to the world's energy markets after the invasion of Ukraine "quickly went away", it has triggered "real worry among poorer countries that when push comes to shove, it won't be an even game, or have a fair outcome." Developing countries have long complained about the lack of access to climate funding. Richer nations have only recently met the $100bn/yr target in climate finance to developing countries agreed in 2009, while discussions on setting a new climate finance goal for 2025 at Cop 29 in Baku in November could prove difficult. President of the Republic of Congo (Brazzaville) Denis Sassou-Nguesso said last year that the $100bn/yr in climate financing to developing countries promised by rich countries "never reached us", adding that the annual UN Cop climate conferences have become little more than a talking shop. "Just after the invasion of Ukraine, every country started to think about energy security," Dasgupta said. "In theory, good things could have happened, countries could have concluded that their best bet to getting energy security is by going renewable". But it was not the case in key consumer countries or regions, Dasgupta pointed out. China bought the majority of Russian gas following the EU's withdrawal, he said, and has since upped production at coal-fired power stations despite an "extraordinary" acceleration towards renewables set for 2023-28, according to Paris-based energy watchdog IEA . In Europe, the UK and Norway continue to award new oil and gas licences . "In the US, the fossil fuel lobby argues that the best route to energy security is to invest more in fossil fuels". But the best route is to invest in more renewables, he said. "Even if the US produces a large amount of oil and gas, it is still a traded commodity, and so you have to pay a price for it that is set globally." The US special presidential co-ordinator for energy security Amos Hochstein has also suggested in September that a widening climate finance gap could ultimately threaten global security. "We have seen the percentage of dollars spent on the energy transition outside the OECD, in developing and middle income countries actually go down instead of up…" By Madeleine Jenkins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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ACT to partner with LR, Wartsila, and UECC on CNSL


28/03/24
News
28/03/24

ACT to partner with LR, Wartsila, and UECC on CNSL

London, 28 March (Argus) — Dutch supplier ACT Group is collaborating with classification society Lloyd's Register, Finnish engine manufacturer Wartsila, and Norwegian shipping firm United European Car Carriers (UECC) on the development and evaluation of cashew nut shell liquid (CNSL) as a biofuel in marine biodiesel blends. ACT confirmed the launch of a CNSL-based biofuel called "FSI.100", which has gone through extensive engine testing with various blend combinations. The CNSL-based biofuel has now received approval from engine manufactures to be blended as a 30pc component with marine gasoil (MGO) to form a marine biodiesel blend for the purpose of further sea trials. ACT confirmed that the FSI.100 product will benefit from lower acidity, and there is potential for the product to be compatible for blending with fuel oil. CNSL is an advanced biodiesel feedstock, making it a more appealing and price competitive option to buyers compared with other biodiesel feedstocks. The development follows a report by Lloyd's Register fuel oil bunkering analysis and advisory service (FOBAS) that pointed to a correlation between engine fuel pump and injector-related damage in vessels and the presence of "unestablished" CNSL in the utilised marine fuels. By Hussein Al-Khalisy Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Baltimore bridge collapse to raise retail fuel prices


27/03/24
News
27/03/24

Baltimore bridge collapse to raise retail fuel prices

Houston, 27 March (Argus) — The collapse of the Francis Scott Key Bridge in Baltimore, Maryland, is more likely to increase regional gasoline prices than diesel due to additional freight costs and certain route restrictions. Suppliers in the region have so far signaled that the effect on broader markets will be minimal, but regional prices will likely rise, especially as peak summer demand season begins with Memorial Day weekend in late May. The bridge closure could pose more problems for gasoline supply than diesel, since gasoline cannot be transported through the Fort McHenry (I-95) and Baltimore Harbor (I-895) tunnels — the two other major roads that cross the Patapsco River at Baltimore — while there are no restrictions on diesel, according to the Maryland Transportation Authority (MTA). Fuel wholesaler Global Partners said yesterday that it would like to see hours of service waivers for trucking in the region to minimize fuel supply disruption to customers, but the Federal Motor Carrier Safety Administration (FMCSA) is yet to issue one. Elevated retail prices are likely to be limited to the immediate Baltimore area but could spill over into neighboring markets should trucking markets remain tight due to rerouting, market sources told Argus . Fuel markets in eastern Maryland can be supplied by PBF's 171,000 b/d Delaware City, Delaware, refinery and two further plants in Pennsylvania — Monroe Energy's 190,000 b/d Trainer refinery and PBF's 160,000 b/d Paulsboro refinery. To the north, United Refining runs a 65,000 b/d plant in Warren, Pennsylvania, and along the Atlantic coast Phillips 66 operates the 259,000 b/d Bayway refinery in Linden, New Jersey. PBF, Monroe and United did not immediately respond to a request for comment on whether the bridge collapse is affecting refinery operations. Phillips 66 declined to comment on commercial activities. Still, the five nearby refineries — representing all the Atlantic coast's 850,000 b/d of crude processing capacity — are unlikely to see their operations curtailed by limits in shipping products to Maryland. With no refinery in the state of Maryland, most fuels are delivered to Baltimore by Gulf coast refiners on the Colonial Pipeline. Global Partners, which operates a terminal just west of the collapsed bridge, said yesterday it is primarily supplied by the pipeline and expects product flows to continue. Several terminals in the Baltimore Harbor and the nearby Port Salisbury can also receive small vessels and barges of road fuels from Delaware and Pennsylvania, according to the Maryland Energy Administration (MEA). The Port of Baltimore — which remains closed since the collapse — took delivery of 24,000 b/d of gasoline and under 2,000 b/d of distillates from barges and small vessels in 2019, about three percent of the Atlantic coast's refining capacity. "A closure of the Port of Baltimore while the Colonial Pipeline is open would not significantly disrupt fuel supply," the MEA wrote in a 2022 analysis of liquid fuels supply in the state. 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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