S-Oil commits to new FCC, petchem capacity

Spanish Market: Crude oil, Oil products, Petrochemicals
25/09/15

South Korean refiner S-Oil has made a final commitment to build a 60,000 b/d fluid catalytic cracking (FCC) unit with associated petrochemical capability, to be completed by June 2018.

S-Oil has an existing 580,000 b/d refinery and petrochemical complex at Onsan. The new FCC will adopt high-severity technology licensed by Axens. It maximizes a propylene yield ratio of up to 20pc compared with a normal yield at about 5-10pc. S-Oil has not yet finalized the final plans on propylene capacity but said output will be close to 700,000 t/yr. The new unit will take the company's total propylene capacity to about 900,000 t/yr.

The FCC will also be able to produce up to 200,000 t/yr of ethylene from an off-gas recovery unit.

S-Oil has planned to build two propylene derivative units to extend its petrochemical supply chain, including a 400,000 t/yr polypropylene unit and a 300,000 t/yr propylene oxide plant, which are targeted to start up in the second half of 2018. No investment plans have been made for ethylene downstream units.

S-Oil is majority owned by Saudi Arabia' state-owned oil firm Saudi Aramco.

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16/06/26

SE Asia needs to reassess energy policy: Clarification

The energy import bill estimate has been changed to $160bn in paragraph 4, based on a revision to the IEA report. Singapore, 16 June (Argus) — Energy shipment disruptions arising from the US-Iran war have exposed southeast Asia's structural vulnerabilities and prompted the need for a reassessment of policy strategy, Paris-based energy watchdog the International Energy Agency (IEA) said in its latest report. The Middle East accounts for 60pc of southeast Asia's crude oil imports, and 45pc of the oil products refined or consumed in the region come from Middle East crude oil, the IEA said in its Southeast Asia Energy Outlook 2026 , released today. The effective halt of energy shipments through the strait of Hormuz has therefore greatly impacted the region, leading to shortages of petrochemical feedstocks — particularly naphtha — chemical products, and LPG, a key cooking fuel in the region. Surging fuel prices have also led to higher energy bills and inflation. Southeast Asia accounts for nearly 20pc of global demand growth to 2035 under current policy settings. The region's energy import bill is projected to reach a record high $160bn this year, and is set to increase further in the decades ahead, potentially rising to $400bn, or 5pc of its economy, by 2050 based on current policy settings. The Middle East conflict has been a stress test of southeast Asia's existing energy system and a catalyst to accelerate structural change, the report said. "Diversification of energy sources and supply routes is now a central priority, with deployment of different fuels and technologies, electrification and efficiency serving as important levers to reduce import exposure and strengthen resilience," said the IEA's executive director Faith Birol. Short- and long-term responses Governments have so far mainly focused on managing short-term impacts by adopting measures to curb demand, such as promoting the use of public transport and remote working. Almost all of the region's governments have also reduced taxes on energy products or deployed price controls and subsidies. Countries have also looked to diversify fuel supply sources. A preference for domestically available energy resources is emerging, the report said, although strategic options differ across countries. Some countries can develop untapped domestic oil and gas options, although the report notes that more investment is set to flow towards other options, such as renewables. Coal accounts for about half of electricity generation in southeast Asia, and could see further upside from the renewed focus on energy security. Coal- and gas-fired power plants are likely to continue playing a role in all possible policy scenarios. More southeast Asian countries are also considering nuclear power as a diversification option, but its role will depend on how fast deployment can take place and how countries deal with long construction lead times. In the longer term, countries could strengthen collective security through co-ordinated fuel stockholding and emergency response arrangements. The region could also expand cross-border connections through the Asean Power Grid to balance supply and demand, integrate renewable power and improve system flexibility. Renewable capacity stood at 120GW in 2024 and is projected to nearly triple by 2035 under current policy settings, or grow by up to fivefold if announced targets are reached. The shift towards greater renewables is already apparent. The Philippines, for example, was the second-largest destination for China's solar exports in the first quarter of 2026. Electricity is also becoming increasingly important to the region. Electricity demand in southeast Asia is set to almost double to 2,000 TWh/yr in 2050 from 1,300 TWh/yr today. But electricity supply depends on the pace at which renewables and other low-emission power sources can be scaled up, as well as infrastructure development. Transmission and distribution networks need to more than double in length by 2050 to keep up with rising demand, and to cope with higher variability in supply and demand. Grid and storage investment needs to ramp up from $13bn today to $50bn in 2050 to meet announced pledges. This includes an estimated $27bn to 2040, to realise planned cross-border interconnections under the Asean power grid. But in turn, mobilising investment will depend on regulatory reforms and strong international public support to reduce costs of capital and crowd in private finance. By Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

US, Iran contest Hormuz status in talks

15/06/26

US, Iran contest Hormuz status in talks

Washington, 15 June (Argus) — The US and Iran have yet to reconcile differences over how to reopen the strait of Hormuz despite President Donald Trump's claim that the waterway would reopen quickly or even that it was open already. "The strait is already partially opened," Trump said on Monday, speaking alongside French president Emmanuel Macron, a day before the G7 leaders' summit in France. "Essentially, ships are starting to go out now," Trump said, adding that on 19 June — when the parties plan to sign the agreement — "it will be completely opened." But even if the deal with Iran is signed on 19 June, it appears it would only be the midpoint, not the culmination of the US-Iranian talks. Neither the US nor Iran has released the text of the agreement due to be signed on 19 June. But both sides selectively disclosed the elements of the deal that reflect their negotiating positions. Many details, including the status of Hormuz, have been left to be hashed out over the following 60 days. On the US side, key demands revolve around Tehran's nuclear program and reopening Hormuz to navigation on pre-war terms. Despite Trump's comments on Monday, vessel traffic through the strait of Hormuz has not changed since Sunday, based on AIS tracking data. This suggests shipowners are waiting for the planned signing on 19 June and further details before attempting transits. "Our expectation is that the strait is going to be opened in a toll-free way for the long term," US vice president JD Vance told CNBC on Monday, adding: "That's the sort of thing that we're going to figure out in these technical negotiations." Tehran, in turn, is eyeing a future role in controlling navigation through Hormuz, full sanctions relief and accessing a "reconstruction fund" of up to $300bn to repair damage caused by the US-Israeli strikes. According to Iran's semi-official Fars news agency, which is close to the Islamic Revolutionary Guard Corps (IRGC), under the agreement Iran would allow vessels to transit Hormuz without charge during a 60-day negotiation period,, which described the exemption as temporary. After that 60-day period fees linked to safety, navigation, environmental and insurance services could be introduced. Trump on Monday confirmed that Iran could count on relief on US sanctions, but added that "it's really a behavioral thing. If they do what they're supposed to do, that starts taking effect." Vance, in a televised interview with CBS on Monday, separately confirmed that Iran could eventually be able to access funds that he said would be ponied by its Mideast Gulf neighbors. The US would be "absolutely open to the Gulf countries investing in the reconstruction of Iran, but only if Iran ends their nuclear program," gives up its stockpile of enriched uranium and accepts an effective nuclear monitoring regime, he said. The Mideast Gulf Arab states have yet to comment on the prospect of having to pick up the tab for damages after the US-Israel war against Iran, during which their energy and civilian infrastructure took significant damage from Iranian missile and drone attacks. Trump is expected to meet with Mideast Gulf leaders on the sidelines of the G7 leaders' summit in France, which starts on Tuesday. The key outcome of three days of frantic negotiations between the US and Iran on 12-14 June is that their militaries stopped the hostilities underway since late May. In retrospect, the resumed warfare resulted from efforts by the US armed forces to enable ships to exit the Mideast Gulf through the part of Hormuz skirting the Omani coast, rather than taking the route prescribed by Tehran. The Trump administration has not disclosed whether the US military would continue efforts to wrest control of Hormuz. But the US will maintain its naval blockade of the Iranian trade until Hormuz is reopened, Trump has said. Vance on point Vance has again emerged as a key Trump administration spokesman arguing for the benefits of the undisclosed deal with Iran. Many Trump loyalists over the weekend began to express reservations about the putative deal but appeared to direct their criticism at Vance, rather than the US leader. "I am somewhat concerned that Iran's view of the agreement seems different than what the American negotiating team is claiming," senator Lindsey Graham (R-South Carolina) said on Sunday. Graham called on "the architect of the deal, vice president Vance and his negotiating partners" to present the agreement for review by the US Congress. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Regulation gap driving low German B100 prices

15/06/26

Regulation gap driving low German B100 prices

London, 15 June (Argus) — B100 marine biodiesel has been trading at very low prices at German ports this year, primarily — market participants said — because mismatched regulations have created an arbitrage between different regulatory regimes. B100, which is 100pc Advanced fatty acid methyl ester (Fame), has been selling at the German port of Hamburg for around €700-800/cbm in the first half of 2026, equivalent to about $914-1,044/t. This compares with the same fuel sold dob Netherlands, which averaged $1,210.10/t during 22 January-22 May. The lower price is achieved by two mechanisms, participants said. The first is a reduction in the total cost of the fuel, created by the value of German renewable fuel tickets generated via the German GHG quota system. Maritime supplies are not currently eligible for quota generation in Germany, since international shipping was excluded from the scope of the EU renewable energy directive (RED) III transposition into German law . But, separately, such fuels can nevertheless qualify for renewable ticket status if they are taxed as road transport fuels, under article §52 of Germany's energy tax law (EnergieStG). Some of the marine product sold at low prices meets EN14214 specifications, widely considered to be the "gold standard" for biodiesel products heading into road fuels. According to the German General Customs directorate, it is currently permissible for biofuels physically used in maritime transport to be counted towards the German GHG quota system, provided they meet the tax requirement. This interpretation has not been altered by the latest amendment to the quota system rules, which entered into force on 5 June. As a result, some market participants have been able to generate quotas from supplying advanced Fame into the marine sector, allowing buyers to benefit from an effective price discount reflecting the value of the quotas. The second mechanism enabling lower prices is the possibility of reclaiming the energy tax paid after the fuel has been used in international shipping. Under German tax law, energy products that have been demonstrably taxed can qualify for tax relief if they are subsequently used for exempt purposes, such as commercial maritime transport. This applies to biodiesel, meaning that buyers may initially pay the full taxed price and later apply for a refund once the fuel's maritime use is proven. This creates a structural inconsistency — taxation is required to generate renewable fuel tickets, while tax relief remains available after maritime use. The process can take many months, however, and can only be initiated after the fuel volume is completely used, which means those taking this path require credit lines and imposes some constraints on use of the loophole. Further, participants told Argus that obtaining the reduced price is only viable by bunkering B100 and other, more commonly used, blends such as B30 would not qualify. Many vessels do not burn B100 because of concerns about engine compatibility and the possible impact on warranties provided by engine manufacturers. Shipowners told Argus that often a prior approval from the engine manufacturer may be required to burn B100 while retaining warranty and insurance protection in case of any future issues. Some added that the US-Iran war has contributed to "liquidity pressures" for many companies, resulting in hesitation to take on the fuel while awaiting a tax rebate that will arrive many months after the fuel purchase. The German Federal Council (Bundesrat) has acknowledged the issue and indicated its intention to close what it describes as a loophole arising from the interaction of tax and quota rules. The concern is that fuels used in maritime transport are effectively being used to meet road transport decarbonisation targets, undermining the integrity of the system. While no concrete cases of abuse have been formally identified by customs authorities, the current framework allows for such outcomes. Some market participants have warned that any tightening of the rules could potentially be applied in a way that affects existing transactions, although there is no official confirmation of retroactive measures. Some suppliers that had previously offered discounted B100 have reportedly withdrawn such offers since March, reflecting growing regulatory uncertainty. By Hussein Al-Khalisy and Marcel Rothenstein Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Singapore’s bunker sales fall in May

15/06/26

Singapore’s bunker sales fall in May

Singapore, 15 June (Argus) — Total sales at the bunker hub of Singapore fell by 6.8pc on the year to 4.55mn t in May, but recovered by 4.5pc on the month from a weak April, according to data from the Maritime and Port Authority of Singapore (MPA) released today. May demand rebounded from April, when sales hit a 14-month low . Weak demand for conventional bunkers due to the US-Iran war continued to weigh on fuel supplies as well as demand from ships refuelling at the port, said local traders. Some ships have changed routes and diverted to China due to cheaper fuel options, while there were less bunkering opportunities for larger ships like VLCCs due to the reduced supplies coming out from the strait of Hormuz, said traders and a shipping broker. Very-low sulphur fuel oil (VLSFO) consumption fell by 6.5pc on the year to 2.29mn t in May, while high-sulphur fuel oil (HSFO) sales fell by 5.2pc on the year to 1.79mn t. Likewise, sales of low-sulphur marine gasoil (LSMGO) fell by 4.3pc on the year to over 327,000t. More charterers and shipowners reduced bunker purchases and took only minimal quantities for voyages, given higher prices in May. Competitive prices at other regional Asian ports, like Zhoushan, weighed on overall bunker demand in Singapore. This trend has extended to June, with spot demand remaining slow and smaller stems traded for key bunker grades, said traders and suppliers. Meanwhile, vessel arrivals rose by over 3pc on the year and almost 8pc on the month to 11,729, which provided some support to bunker demand compared with April despite cautious buying sentiment. Singapore's VLSFO sales rose by 4.7pc on the month while HSFO sales increased slightly by 0.4pc in May. LSMGO sales were also up by around 28pc on the month. On the alternative fuel front, the total volume of all alternative marine fuels bunkered in Singapore fell by 23pc on the year in May. A total of 137,800t of alternative fuels were bunkered in May and the year-to-date total stands at 650,100t. A total of 1.6mn t of alternative marine fuels was bunkered in Singapore in 2025, including all biofuel blends, B100 and LNG. The sharpest drop among all green marine fuels came from biofuels in May. Demand for biofuels in shipping plunged by 57pc on the year to 60,800t for May from a year earlier. Among the biofuel blends, VLSFO blend consumption fell by 62pc on the year to 36,400t, the lowest in more than two years. The last time B24 and B30 VLSFO blend demand fell below 30,000-40,000t was in February 2024. Stronger economics due to the rise in conventional bunker prices since the war started has also pushed ship owners to consider bunkering B100 and mass balancing to meet compliance requirements. B100 consumption in Singapore increased more than fivefold from a year earlier to a record high of 12,800t in May. Demand for LNG as a bunker fuel continued to grow, rising by 56pc on the year to a fresh monthly record high of 70,300t. The number of LNG dual-fuelled vessels in order books is higher compared with other newbuilds fuelled by other sustainable fuels, industry data show. The expected delivery of a number of newbuilds this year among key shipowners has also kept the momentum high in terms of demand. Total LNG bunker sales in Singapore stood at 263,300t on a year-to-date basis, and is on track to breach last year's total at 571,400t by the end of 2026. By Mahua Mitra and Cassia Teo Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Weak heating oil demand weighs on German prices

15/06/26

Weak heating oil demand weighs on German prices

Hamburg, 15 June (Argus) — The German heating oil market remained oversupplied last week, as weak demand and high refinery output pressured prices. Growing decoupling from the global market has also allowed domestic product to displace some imports. Buying interest remained low, with spot volumes reported to Argus still significantly below year-earlier levels. This added to supply pressure, particularly at refineries such as Bayernoil's 207,000 b/d Nuestadt-Vohburg complex. Midweek, loading of heating oil there was suspended until the eve of 14 June because of a technical fault. Oversupply at the Miro consortium's 310,000 b/d Karlsruhe refinery in southwest Germany eased slightly. Market participants reported production shifts that reduced heating oil availability, helping to stabilise prices in the region. Persistently weak domestic demand and pressure on middle distillates are coinciding with tighter global supply caused by the conflict in the Middle East. This has widened the price gap between local product and imports, including cargoes from the US. At some locations, supply routes are shifting as a result. In Magdeburg, for example, rail deliveries from nearby refineries are displacing imports from Hamburg, pushing prices below those at the northern import hub. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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S-Oil commits to new FCC, petchem capacity

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SE Asia needs to reassess energy policy: Clarification

SE Asia needs to reassess energy policy: Clarification

US, Iran contest Hormuz status in talks

US, Iran contest Hormuz status in talks

Regulation gap driving low German B100 prices

Regulation gap driving low German B100 prices

Singapore’s bunker sales fall in May

Singapore’s bunker sales fall in May

Weak heating oil demand weighs on German prices

Weak heating oil demand weighs on German prices

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