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Mexico leans on private imports in fuels crisis

  • Spanish Market: Oil products
  • 15/01/19

State-owned Pemex and private-sector companies have increased the rate of gasoline imports into Mexico by a combined 36pc in January according to government data released to rebut claims of import cuts amid fuel shortages.

Fuel shortages began in late December in central and western Mexico following the government's decision to fight fuel theft by shutting down pipelines subject to repeated illegal taps and shifting fuel delivery to tank trucks.

President Andres Manuel Lopez Obrador has promised to wean Mexico off of its dependence on imported fuels in the long term, but has now called on the private sector to help with both fuel distribution and imports.

According to energy ministry (Sener) data disclosed for the first time Glencore was the largest gasoline importer in the first nine days of January with 18,500 b/d. ExxonMobil was second with 12,800 b/d and Windstar third with 9,800 b/d.

The private companies combined imported 49,700 b/d of gasoline, up by 19pc from the 41,900 b/d average rate in December.

Imports represented 78pc of the 788,000 b/d of gasoline consumed from January to October 2018 in Mexico. The portion of demand covered by imports might be even higher this month as Mexican refineries have been operating at lower than normal levels.

Pemex still brings in 94pc of the imported gasoline, with 764,800 b/d, up by 37pc from 559,000 b/d in December.

No values were disclosed for diesel or other fuels by the ministry. Its recently launched website with preliminary weekly data on fuel movements has been shut since 11 January. The shuttering of the site, estadisticashidrocarburos.gob.mx, during the height of the crisis was raised at a hearing in congress where Pemex's chief executive and the energy minister had been summoned but did not appear.

Glencore's imports showed the biggest jump following no imported volumes in December. The company started operations at its 600,000 bl Dos Bocas terminal in late August.

The rate of ExxonMobil's gasoline imports are down by 32pc from the average December rate to 12,800 b/d. The company's private rail and truck network has helped the company's Mobil-branded retail station avoid some of the fuel shortage in the rest of the country.

The third-largest importer, El Paso, Texas-based WindStar increased its gasoline imports by 27pc to 9,800 b/d in the first days of January.

Windstar's chief financial officer Reynold Gonzalez told Argus most of its imports went to Philips 66-branded stations in the north of the country, but an undisclosed volume went to other resellers in Mexico.

Marathon's subsidiary in Mexico, Tesoro, reduced its gasoline import rate by 73pc to 2,900 b/d. The company won the only successfully awarded open season of state-run Pemex.

Other international companies that are on the list of gasoline importers include Novum Energy, with 1,400 b/d, and Vitol with 200 b/d during both the first days of January and all of December.

Mexican private importers included retail group Combustibles de Oriente with 1,700 b/d as it has one of the few private fuel storage terminals in the state in Tamaulipas.

Mexican retail fuel station owners or retailers Impulsora de Productos Sustentables, Karzo, PetroTamps and Energeticos San Roberto all imported less than 1,000 b/d total.

Mexico's gasoline imports'000 b/d
Company18 Dec19 Jan*±%
Pemex559.0764.8+36.8
Glencore-18.5-
ExxonMobil18.812.8-31.9
Windstar7.79.8+27.3
Tesoro (Marathon)10.72.9-72.9
Combustibles de Oriente0.91.7+88.9
Novum1.71.4-17.6
Impulsora de Productos Sustentables0.10.9+800.0
Distribuidora de Combustibles Karzo0.50.4-20.0
Vitol0.20.2-
Grupo Petrotamps0.00.2-
Energeticos San Roberto0.00.1-
Others1.30.8-38.5
Total600.9814.5+35.5
*import rate for the first nine days of January

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19/09/24

LNG-burning vessels well positioned ahead of 2025

LNG-burning vessels well positioned ahead of 2025

New York, 19 September (Argus) — Vessels outfitted with dual-fuel LNG-burning engines are poised to have the lowest marine fuel expense heading into 2025 when the EU will tighten its marine EU emissions trading system (ETS) regulations and add a new regulation, " FuelEU", from 1 January 2025. Considering both regulations, at current price levels, fossil LNG (also known as grey LNG) will be priced the cheapest compared with conventional marine fuels and other commonly considered alternative fuels such as biodiesel and methanol. The EU's FuelEU maritime regulation will require ship operators traveling in, out and within EU territorial waters to gradually reduce their greenhouse gas (GHG) intensity on a lifecycle basis, starting with a 2pc reduction in 2025, 6pc in 2030 and so on until getting to an 80pc drop, compared with 2020 base year levels. The FuelEU GHG intensity maximum is set at 85.69 grams of CO2-equivalent per MJ (gCO2e/MJ) from 2030 to 2034, dropping to 77.94 gCO2e/MJ in 2035. Vessel pools exceeding the FuelEU's limits will be fined €2,400/t ($2,675/t) of very low-sulphur fuel oil (VLFSO) energy equivalent. GHG emissions from grey LNG vary depending on the type of marine engine used to burn the LNG, but ranges from about 76.3-92.3 gCO2e/MJ, according to non-governmental environmental lobby group Transport & Environment. This makes a number of LNG-burning, ocean-going vessels compliant with FuelEU regulation through 2034. The EU's ETS for marine shipping commenced this year and requires that ship operators pay for 40pc of their GHG generated on voyages within, in and out of the EU. Next year, the EU ETS emissions limit will increase to 70pc. Even with the added 70pc CO2 emissions cost, US Gulf coast grey LNG was assessed at $639/t VLSFOe, compared with the second cheapest VLSFO at $689/t, B30 biodiesel at $922/t and grey methanol at $931/t VLSFOe average from 1-18 September (see chart). "In 2025, we expect [US natural gas] prices to rise as [US] LNG exports increase while domestic consumption and production remain relatively flat for much of the year," says the US Energy Information Administration. "We forecast the Henry Hub price to average around $2.20/million British thermal units (mmBtu) in 2024 and $3.10/mmBtu in 2025." Provided that prices of biodiesel and methanol remain relatively flat, the projected EIA US 2025 LNG price gains would not affect LNG's price ranking, keeping it the cheapest alternative marine fuel option for ship owners traveling between the US Gulf coast and Europe. LNG for bunkering global consumption from vessels 5,000 gross tonnes and over reached 12.9mn t in 2023, according to the International Maritime Organization (IMO), up from 11mn t in 2022 and 12.6mn t in 2021. The maritime port authority of Singapore reported 111,000t of LNG bunker sales and the port authorities of Rotterdam and Antwerp reported 319,000t in 2023 from all size vessels. Among vessels 5,000 gross tonnes and over, LNG carriers accounted for 89pc of LNG bunker demand globally, followed by container ships at 3.6pc, according to the IMO. The large gap between LNG global and LNG Singapore, Rotterdam, and Antwerp bunker demand, is likely the result of most of the demand taking place at the biggest LNG export locations where LNG carriers call, such as the US Gulf coast, Qatar, Australia, Russia and Malaysia. By Stefka Wechsler USGC bunkers and bunker alternatives $/t VLSFOe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US court asked for third Citgo auction extension


19/09/24
19/09/24

US court asked for third Citgo auction extension

Houston, 19 September (Argus) — The court-appointed special master overseeing the auction of US refiner Citgo has asked the court to delay the announcement of a successful bidder to 26 September and a sale hearing to December. Special master Robert Pincus planned to make an announcement of the proposed buyer on or about 16 September followed by a November sale hearing, but last minute legal challenges derailed what have otherwise been "robust negotiations with a bidder," according to a court filing today. "The special master is continuing to negotiate sale documentation with a bidder," today's motion said. Pincus previously requested a second extension in August and a first extension in late July . By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Citgo auction result delayed amid last-minute motions


18/09/24
18/09/24

Citgo auction result delayed amid last-minute motions

Houston, 18 September (Argus) — The US court-appointed special master overseeing the auction of US refiner Citgo plans to object to a last-minute motion from the Venezuelan government to delay the sale process by four months. The Republic of Venezuela and state-owned oil company PdV filed a motion on Tuesday seeking a four-month pause in the sale of its refining subsidiary Citgo, which is being auctioned off to satisfy debts owed by PdV. Special master Robert Pincus said in a court filing today that he intends to object to Venezuela's motion for a pause. The last-minute motion from Venezuela comes days after the US District Court for the District of Delaware was expected to announce results of the winning bidder. The court asked for a second extension to the auction process in August, delaying announcing a successful bidder to on or about 16 September with a sale hearing on 7 November. But Pincus is now dealing with last-minute legal challenges filed last week outside of the Delaware courts by so-called "alter ego" claimants seeking to "circumvent" the Delaware court's sales process and "jump the line" for enforcing claims against PdV, the special master said in a filing last week. Bidders for Citgo's 804,000 b/d of refining capacity, terminals, retail fuel stations and other plants expect the assets to be sold free and clear of future claims by PdV creditors. Unresolved legal liabilities could lower the value bidders are willing to pay for Citgo, decreasing the pool of money available to those owed by PdV. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Advanced Fame marine biodiesel blends hit 9-month low


18/09/24
18/09/24

Advanced Fame marine biodiesel blends hit 9-month low

London, 18 September (Argus) — Some marine biodiesel blend prices in northwest Europe hit a year-to-date low on 17 September, owing to soft fundamentals and easing values in underlying markets. Argus assessed the prices of B30 and B100 Advanced fatty acid methyl ester (Fame) 0 dob ARA — which include a deduction of the value of Dutch renewable fuel tickets (HBE-G) — at $674.01/t and $993.87/t, respectively. At these levels, the two blends were at their lowest outright price since 29 December last year — right before values rose sharply following the halving of the Dutch HBE-G multiplier for maritime blending at the start of the year. Prices have slipped on the back lacklustre demand for marine biodiesel blends in recent months. The price of EU Emissions Trading System (ETS) allowances, for which Advanced Fame marine biodiesel blends receive a zero emission factor, have averaged $70.56/t so far this year, compared with $93.43/t in the same period last year. Consequently, the expansion of EU ETS into the shipping sector has done little to financially incentivise the uptake of marine biodiesel blends this year. On the other hand, voluntary demand for marine biodiesel blends has been steady from shipowners seeking to deliver proof of sustainability (PoS) documentation to their customers to offset the latter's scope 3 emissions. But this may have shifted geographically in recent months in favour of Singapore over ARA. Soft fundamentals in the marine biodiesel blend market has been compounded by pressure on prices in underlying crude and biodiesel markets. The front-month Ice Brent crude futures and gasoil futures contracts hit a near three-year low at 16:30 BST on 10 September. This in turn weighed on values of very-low sulphur fuel oil (VLSFO) and marine gasoil (MGO), and the former makes up 70pc of the B30 Advanced Fame dob ARA blend. VLSFO dob ARA prices have averaged $505.58/t so far in September, compared with $533.38/t on 1-18 August, having hit $483/t on 10 September, the lowest level since August 2021. Meanwhile, in the underlying biodiesel market, Advanced Fame 0 fob ARA prices were at the second-lowest level on record on 17 September, with the price marked at parity to used cooking oil methyl ester (Ucome) for the first time. Several market participants have said that low prices for German greenhouse gas (GHG) quota tickets, which can be traded on the market to meet the country's emissions reduction mandate, have discouraged buyers from physically blending advanced biodiesel, as tickets are a cheaper option. The current year GHG other ticket price hit a new historic low of $85/t CO2 equivalent (CO2e) on 13 September, down by $115/t compared with the same time last year and by $378/t compared with two years ago. Provisional EU anti-dumping duties on Chinese-origin biodiesel that came into force on 16 August have also turned European buyers away from advanced product made in China, which used to be one of the main sources of advanced biodiesel in Europe. By Hussein Al-Khalisy and Simone Burgin Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

USCG updates ongoing lower Mississippi restrictions


17/09/24
17/09/24

USCG updates ongoing lower Mississippi restrictions

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