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Long Beach offers $1mn award for methanol bunkering
Long Beach offers $1mn award for methanol bunkering
New York, 29 May (Argus) — The Port of Long Beach, California, is offering a $1mn award for the first ocean-going vessel to refuel with methanol at its facility. The Long Beach Harbor Commission, which sets port policies, approved the plan earlier this week. The initiative, described as the first of its kind in the US, aims to boost the use of alternative marine fuels. "This is about demonstrating that we are serious about creating a North American market for methanol bunkering and giving the industry an incentive to invest," said port chief executive Noel Hacegaba. "We are also seeing how rising fuel costs are strengthening the case for energy diversification and greater energy independence." Shipping companies competing for the award must meet several criteria, including notifying the port at least 30 days before bunkering methanol in Long Beach and allowing staff from the port to observe and verify the vessel receiving methanol. Ships must also bunker at least 2,000 metric tonnes of methanol to qualify for the prize, according to the port. There is no supplier involved in this initiative, so participating companies will be expected to arrange their own methanol supply, the port told Argus . If the challenge proves successful, the facility may launch a similar award for other alternative marine fuels. Methanol was chosen because of strong near-term interest from shipowners and other port authorities, including Singapore and Shanghai, the Port of Long Beach said. A ship burning methanol produces about 95pc less sulphur oxide emissions, 90pc less particulate matter and 50pc less nitrogen oxide, according to the port. Refueling a ship with methanol would cost about $1.5mn per call compared with around $1mn for conventional marine fuel. The $1mn award is intended to offset the higher refuelling cost and cover other expenses such as safety procedures and working with fuel suppliers, the port said. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
War halves Kuwaiti oil products output, export in March
War halves Kuwaiti oil products output, export in March
Dubai, 22 May (Argus) — Kuwait's refinery output dropped by roughly half and exports by more than half in March, following the start of the US-Iran war on 28 February, which caused damage to Kuwait's oil infrastructure. Joint Organisations Data Initiative (Jodi) updates show that Kuwait's refinery production, excluding LPG, stood at just 627,000 b/d in March, its lowest since at least October 2022. Kuwait normally produces close to 1.1mn b/d, and in February its output reached an all-time high of 1.31mn b/d, according to Jodi data that goes back to 2002. Middle distillates and naphtha output were most affected. Jet fuel production fell by 58pc and gasoil by 45pc compared with average 2025 outputs, while naphtha dropped by 73pc. Fuel oil production was down by 17pc, while gasoline was the only oil product that increased compared with 2025, by 20pc. Kuwait's refining infrastructure was repeatedly hit by Iranian drone attacks in March and April. The 346,000 b/d Mina al Ahmadi refinery was hit on 3 April , after being hit on 19 and 20 March , and on 2 March, while 454,000 b/d Mina Abdullah was also struck on 19 March . Kuwait also operates the 615,000 b/d al-Zour refinery, but no direct hits have been reported there. The exact extent of the refinery damage has not been specified, making it difficult to assess the impact on operations. But at the end of March some units were shut at Mina al Ahmadi and Mina Abdullah was fully offline — it is now set to return online by 30 June — while al-Zour was operating at around 50pc capacity. Plant run rates could have also been lowered in response to the ongoing blockade of the strait of Hormuz, which continues to prevent refineries in the Mideast Gulf from exporting oil products. Kuwait's total oil product exports dropped by 60pc in March, compared with the average in 2025, Jodi data show. Middle distillates again suffered the biggest losses, with an around 78pc drop in jet fuel and 63pc drop in diesel exports. Naphtha exports fell by 59pc and fuel oil by 32pc, with gasoline again the only product marking an increase. The war has also severely disrupted regional and global flight schedules, with most of the countries in the Middle East closing their airspace at the start of the conflict. Kuwait was the last country in the region to announce that its airspace was reopening, on 24 April — nearly two months after shutting it, and is only starting the resumption of full operations at its international airport from 1 June . The flight disruption has sharply curtailed Kuwaiti jet fuel demand, which dropped to just 1,000 b/d in March, compared with an average 19,000 b/d in 2025. By Ieva Paldaviciute Exports 000 b/d Mar-26 2025 ±% Gasoline 17 2 963 Naphtha 67 165 -59 Jet-Kerosine 57 260 -78 Gasoil 106 289 -63 Fuel Oil 87 127 -32 Total exports 334 843 -60 Total product exports excludes LPG Jodi Refinery output 000 b/d Mar-26 2025 ±% Gasoline 78 65 20 Naphtha 53 194 -73 Jet-Kerosine 110 262 -58 Gasoil 180 327 -45 Fuel Oil 206 249 -17 Total output 627 1,096 -43 Total refinery output excludes LPG Jodi Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Market flags ARA bunker quality concerns
Market flags ARA bunker quality concerns
London, 21 May (Argus) — Marine fuel buyers have raised concerns over bunker fuel quality in the Amsterdam-Rotterdam-Antwerp (ARA) hub. It comes after testing firm Veritas Petroleum Services (VPS) issued an alert on 10 May flagging elevated sediment levels in high-sulphur fuel oil (HSFO) deliveries in Rotterdam. Several market participants in ARA said some producers may have been using lower-quality blending components in recent weeks. Some suggested shale oil may have been used in marine fuel production, which they said may have contributed to higher total sediment potential (TSP) in some finished product. These assessments could not be independently confirmed. VPS has, however, identified elevated sediment levels in HSFO deliveries in Rotterdam, stating that between 6 April and 7 May it tested several cargoes with TSP measured at up to 0.90pc m/m. Higher sediment levels can increase sludge formation, reducing the efficiency of onboard fuel treatment systems. The alert also said many samples exhibited "elevated density", which may complicate treatment for vessels fitted with conventional separators. There is no clear evidence that high TSP levels have been found in bunkers beyond Rotterdam. While the ISO 8217 specification caps TSP at 0.10pc, traders said some deliveries in the region have exhibited significantly higher levels, raising the risk of off-specification cargoes. The Port of Rotterdam Authority said it "does not have a role in the quality control or operational assurance of bunker fuels and will therefore not issue specific warnings to the market", adding that responsibility lies primarily with suppliers and buyers. It referred enforcement to the Netherlands' Human Environment and Transport Inspectorate (ILT). Argus has contacted ILT for comment. The market could see an increase in claims from buyers over off-specification bunkers, one trader said, adding that affected volumes loaded on refuelling ships may need to be debunkered. Participants said higher-quality components are being diverted away from ARA to blending tanks in ports on Saudi Arabia's west coast and in Africa, contributing to tighter availability in the region. Some suppliers are maintaining fuel quality by paying higher premiums for blendstocks, while others are opting for lower-quality alternatives, they said. An analyst said this tightening is being reinforced by falling availability of mid-range sulphur fuel oil components in Europe , as refiners divert streams typically used in bunker blending into middle distillate feedstocks and process them through hydrocrackers. Distillate margins are elevated, supported by disruption to Mideast Gulf supplies, prompting European refiners to maximise diesel and jet output. Tightening availability of suitable blending components in ARA is likely to persist in the near term, raising concerns over continued variability in fuel quality. By Natália Coelho and Bob Wigin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Swiss WinGD sells first ethanol -fuelled marine engines
Swiss WinGD sells first ethanol -fuelled marine engines
Sao Paulo, 19 May (Argus) — Swiss marine engine manufacturer Winterthur Gas and Diesel (WinGD) has sold its first two ethanol-fuelled marine engines. It said last year that it would begin offering the technology . The engines will power two ore carriers to be built for China's Shandong Shipping to operate under charters for Brazilian mining group Vale. WinGD will build the engines by modifying its methanol-fuelled model, as ethanol and methanol share similar properties and combustion characteristics. "This is a clear signal that the shipboard technology and fuel infrastructure around ethanol as a marine fuel are ready, giving confidence to others considering ethanol as an option for maritime decarbonisation," said WinGD executive director of sales Volkmar Galke. Ethanol has gained traction as a marine fuel because of its potential to comply with greenhouse gas (GHG) emissions regulations. Last week, the IMO Marine Environment Protection Committee (MEPC 84) added Brazil's second-crop corn-based ethanol as a recognised fuel pathway in its life-cycle assessment (LCA) guidelines for marine fuels . Although ethanol is not a drop-in fuel, meaning vessels require retrofitting to run on it, it can absorb surplus production from countries such as Brazil. But FuelEU Maritime and the EU Renewable Energy Directive (RED III) — European regulations considered the world's most advanced for shipping — do not accept biofuels made from food crops, known as first-generation fuels, for emissions reduction because of food security risks. By Natália Coelho Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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