Houston Ship Channel traffic clearing: Update
Updates inbound and outbound ship traffic status.
Two-way ship traffic resumed today on the Houston Ship Channel following a fuel spill which had closed the waterway.
Outbound ship traffic resumed yesterday and inbound ship traffic resumed today, the US Coast Guard said.
But only one ship at a time can pass the area near the spill in either direction, so the Houston-Galveston Vessel Traffic Service is guiding the movements.
Earlier today, most outbound vessels had cleared the channel. Only two outbound vessels were waiting to pass the spill area as of 9:30am ET. Meanwhile, 56 inbound vessels were still waiting at that time.
Two-way tow traffic also resumed yesterday after a collision between a tanker and a barge on 10 May led to the fuel spill.
The VLGC Genesis River collided with and punctured one of two barges being pushed by a tug boat, sending an estimated 9,000 bl of reformate into the channel. The second barge was overturned and remained near the channel, according to an update yesterday. Each barge carried 25,000 bl.
Clean up operations include the deployment of 20,550 ft of product containment and absorbent boom.
Salvage teams yesterday secured the barges near the channel and were beginning to remove the remaining fuel from the vessels.
The cause of the incident remains under investigation.
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Low-carbon methanol costly EU bunker option
Low-carbon methanol costly EU bunker option
New York, 16 May (Argus) — Ship owners are ordering new vessels equipped with methanol-burning capabilities, largely in response to tightening carbon emissions regulations in Europe. But despite the greenhouse gas (GHG) emissions savings that low-carbon methanol provides, it cannot currently compete on price with grey methanol or conventional marine fuels. Ship owners operate 33 methanol-fueled vessels today and have another 29 on order through the end of the year, according to vessel classification society DNV. All 62 vessels are oil and chemical tankers. DNV expects a total of 281 methanol-fueled vessels by 2028, of which 165 will be container ships, 19 bulk carrier and 14 car carrier vessels. Argus Consulting expects an even bigger build-out, with more than 300 methanol-fueled vessels by 2028. A methanol configured dual-fuel vessel has the option to burn conventional marine fuel or any type of methanol: grey or low-carbon. Grey methanol is made from natural gas or coal. Low-carbon methanol includes biomethanol, made of sustainable biomass, and e-methanol, produced by combining green hydrogen and captured carbon dioxide. The fuel-switching capabilities of the dual-fuel vessels provide ship owners with a natural price hedge. When methanol prices are lower than conventional bunkers the ship owner can burn methanol, and vice versa. Methanol, with its zero-sulphur emissions, is advantageous in emission control areas (ECAs), such as the US and Canadian territorial waters. In ECAs, the marine fuel sulphur content is capped at 0.1pc, and ship owners can burn methanol instead of 0.1pc sulphur maximum marine gasoil (MGO). In the US Gulf coast, the grey methanol discount to MGO was $23/t MGO-equivalent average in the first half of May. The grey methanol discount averaged $162/t MGOe for all of 2023. Starting this year, ship owners travelling within, in and out of European territorial waters are required to pay for 40pc of their CO2 emissions through the EU emissions trading system. Next year, ship owners will be required to pay for 70pc of their CO2 emissions. Separately, ship owners will have to reduce their vessels' lifecycle GHG intensities, starting in 2025 with a 2pc reduction and gradually increasing to 80pc by 2050, from a 2020 baseline. The penalty for exceeding the GHG emission intensity is set by the EU at €2,400/t ($2,596/t) of very low-sulplhur fuel oil equivalent. Even though these regulations apply to EU territorial waters, they affect ship owners travelling between the US and Europe. Despite the lack of sulphur emissions, grey methanol generates CO2. With CO2 marine fuel shipping regulations tightening, ship owners have turned their sights to low-carbon methanol. But US Gulf coast low-carbon methanol was priced at $2,317/t MGOe in the first half of May, nearly triple the outright price of MGO at $785/t. Factoring in the cost of 70pc of CO2 emissions and the GHG intensity penalty, the US Gulf coast MGO would rise to about $857/t. At this MGO level, the US Gulf coast low-carbon methanol would be 2.7 times the price of MGO. By comparison, grey methanol with added CO2 emissions cost would be around $962/t, or 1.1 times the price of MGO. To mitigate the high low-carbon methanol costs, some ship owners have been eyeing long-term agreements with suppliers to lock in product availabilities and cheaper prices available on the spot market. Danish container ship owner Maersk has lead the way, entering in low-carbon methanol production agreements in the US with Proman, Orsted, Carbon Sink, and SunGaas Renewables. These are slated to come on line in 2025-27. Global upcoming low-carbon methanol projects are expected to produce 16mn t by 2027, according to industry trade association the Methanol Institute, up from two years ago when the institute was tracking projects with total capacity of 8mn t by 2027. By Stefka Wechsler Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Europe receives straight run fuel oil from Dangote
Europe receives straight run fuel oil from Dangote
London, 15 May (Argus) — A cargo of low-sulphur straight run fuel oil (LSSR) produced at Nigeria's 650,000 b/d Dangote refinery has been delivered to Europe for the first time. The 90,000t cargo was loaded at Dangote's terminal in Lekki on 25 April and discharged in Rotterdam on 13 May, according to data from trade analytics firm Kpler. The cargo will likely be used as a blendstock to produce very-low sulphur fuel oil (VLSFO), market participants said. Roughly 72pc of the fuel oil exported from Dangote has been delivered to the US since the refinery offered its first LSSR export tender in mid-February . A total of just under 620,000t has been delivered so far. Another LSSR shipment of 83,400t departed the refinery on 7 May, according to trade analytics firm Vortexa. It is scheduled to arrive in France on 22 May, but market participants say this is unlikely to be the cargo's final destination. LSSR price assessments on a fob Amsterdam-Rotterdam-Antwerp (ARA) basis have stayed at a $5/bl premium to front-month Ice Brent crude futures this week, narrowing from an 18-month high of $7.50/bl in mid-April . Maintenance work that began in the first quarter affected fluid catalytic cracking (FCC) units at some refineries. FCCs take LSSR and low-sulphur vacuum gasoil to increase gasoline yields. By Isabella Reimi and Bob Wigin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Singapore’s bunker sales hit 10-month low in April
Singapore’s bunker sales hit 10-month low in April
Singapore, 15 May (Argus) — Singapore's April bunker sales fell to a 10-month low on weak very-low sulphur fuel oil (VLSFO) demand. But consumption of high-sulphur fuel oil (HSFO) and B24 biofuel bunkers remained firm. Singapore VLSFO bunker sales fell to at least a 15-month low of 2.25mn t in April, according to data from the Maritime and Port Authority of Singapore. This came because of slower demand as more buyers turned to lower-priced HSFO. Singapore HSFO sales accounted for a 42pc share of total fuel oil sales in April, up from a 31pc share a year earlier. Disruptions in the Red Sea led to increased fuel usage by ocean-going vessels with higher rates of scrubber technology adoption, raising demand for HSFO by a greater extent than for VLSFO. Consumption of bio-blended VLSFO, or B24, climbed by 61pc on the year because buying interest gained traction, but slipped by 10pc from strong consumption in March . LNG bunker sales rose by over sixfold on the year but edged down from a record high in March . By Cassia Teo and Asill Bardh Singapore bunker sales 000t Apr-24 m-o-m ± % y-o-y ± % Jan-Apr 2024 ± % Low-sulphur fuel oil (LSFO) 2,252 -6.9 -16 10,088 -2.2 Marine fuel oil (MFO) 1,600 0.0 31 6,466 32 Low-sulphur MGO (LSMGO) 277 -11.0 -11 1,201 -3.0 Bio-blended LSFO 60 -10.0 61 186 53 Liquified natural gas (LNG) 36 -7.9 582 111 N/A MGO 9.7 88.0 -37 43 -9.2 Marine diesel oil (MDO) 0.0 N/A N/A 0.0 N/A Bio-blended MDO 0.0 N/A N/A 0.0 N/A Bio-blended marine gasoil (MGO) 0.0 N/A N/A 0.0 N/A Bio-blended LSMGO 0.0 N/A N/A 0.0 N/A Bio-blended MFO 0.0 N/A -100 0.0 -100 Ultra low sulphur fuel oil (ULSFO) 0.0 N/A N/A 0.0 N/A Bio-blended ULSFO 0.0 N/A N/A 0.0 N/A Methanol 0.0 N/A N/A 0.0 N/A Total 4,235 -4.7 -0.6 18,096 8.9 Source: MPA Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s NS United plans methanol-fuelled bulk carriers
Japan’s NS United plans methanol-fuelled bulk carriers
Tokyo, 15 May (Argus) — Japanese shipping company NS United Kaiun plans to order several methanol-fuelled Capesize bulk carriers, targeting to begin delivery from 2027, as its aims to reduce greenhouse gas (GHG) emissions from shipping raw materials for steel production. NS United Kaiun signed an initial agreement on 13 May with Japanese shipbuilders Imabari Shipbuilding and Japan Marine United and domestic vessel engineer Nihon Shipyard to build several methanol-fuelled ships of 209,000dwt each. The vessels will be equipped with dual-fuel engines, which can burn methanol and conventional marine fuel. NS United Kaiun expects the future use of green methanol will cut GHG emissions by more than 80pc compared with conventional marine fuel. The company will also co-operate with fuel developers to buy green methanol. Methanol has emerged as a potential alternative fuel as the marine sector looks to cut its GHGs. Fellow Japanese shipping firm NYK Line also plans to receive six chemical tankers over 2026-29, which will burn very-low sulphur fuel oil but will be designed to convert to use methanol. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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