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Palm oil producers call for clarity over tax increase

  • Spanish Market: Agriculture, Biofuels, Fertilizers
  • 30/11/20

The Malaysian estate owners' association (MEOA) is urging the national palm oil board (MPOB) to consult stakeholders and ensure transparency before raising its palm oil tax.

The MPOB cess order 2020 proposes raising levies that producers pay on crude palm oil (CPO) and crude palm kernel oil output by 5 ringgit/t ($1.23/t) from 1 January 2021. The MPOB collects 11 ringgit on each tonne produced for use in industry research and development (R&D), regulatory and promotional activities, as well as 2 ringgit/t for replanting and biofuels programmes, and 1 ringgit/t for environmental initiatives. Combined receipts from these taxes should exceed 300mn ringgit in 2020.

Additional funds accrued in 2021 will be funnelled towards essential mechanisation and automation R&D, according to the MPOB. But the industry requires clarity and input into specifics including fund management and allocation and how potential R&D projects will be prioritised, said the MEOA. The MPOB could also consider reallocating funds collected from the windfall profit levy – forecast to reach 760mn ringgit in 2020 on an average CPO price of 3,200 ringgit/t – towards mechanisation and automation research.

The public can submit feedback on the draft order until 30 November.


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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.

Kenya's NCPB receives offers in fertilizer tender


19/09/24
19/09/24

Kenya's NCPB receives offers in fertilizer tender

Istanbul, 19 September (Argus) — Kenya's NCPB has received offers against its 19 September buy tender for 245,000t of various fertilizers for the 2024-25 season under the country's fertilizer subsidy programme. There were 19 offers of 25-5-5, all within a range of 3,750-5,500 Kenyan shillings/50kg bag, equivalent to $581-852/t. There were also 19 offers of 17-17-17, ranging from KSh3,800-5,800/50kg bag. The NCPB received 23 offers of urea at KSh3,400-6,000/50kg bag, 12 offers of amsul ranging from KSh2,800-5,400/50kg bag, and 18 offers of CAN in a range of KSh2,875-4,250/50kg bag. The offers were on the basis of deliveries to NCPB depots. The tender requested the following products: 25,000t urea (500,000 x 50kg bags) 40,000t CAN 26 (800,000 x 50kg bags) 5,000t amsul (100,000 x 50kg bags) 15,000t 17-17-17 (300,000 x 50kg bags) 15,000t 25-5-5 (300,000 x 50kg bags) 35,000t 23-23-0 (700,000 x 50kg bags) 10,000t crop-specific NPK fertilizer for top dressing with a minimum nitrogen nutrient content of 26pc plus other micronutrients (200,000 x 50kg bags) 70,000t crop-specific NPK fertilizer for planting with a minimum nitrogen nutrient content of 17pc and above, a minimum phosphorus content of 29pc and above, plus other micronutrients (1,400,000 x 50kg bags) 30,000t crop-specific NPK fertilizer for planting with a minimum nitrogen nutrient content of 9-16.99pc, a minimum phosphorus content of 22-28.99pc and above, plus other micronutrients (600,000 x 50kg bags) The NCPB said agreed contracts are renewable each season for a period of two years under the subsidy programme. The tender document also states that a supplier will not be awarded for the supply of more than two fertilizer types. By Nykole King Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Pupuk Indonesia closes tender to buy amsul


19/09/24
19/09/24

Pupuk Indonesia closes tender to buy amsul

Singapore, 19 September (Argus) — State-owned Pupuk Indonesia has closed a tender to buy 30,000t of bulk standard caprolactam-grade ammonium sulphate (amsul) for shipment to two different ports by the end of October to early November. Pupuk requested that bids be submitted based on a formula price with an added premium. The range of premiums offered by participants was around $13/t, bringing delivered prices to a low-mid $150s/t cfr. Pupuk Indonesia requested for 20,000t of amsul in a single shipment to Gresik port for Petrokimia Gresik, to be delivered by the fourth week of October. It also requested for 10,000t of standard amsul in a single shipment to Cigading port for Pupuk Kujang, to be delivered by the first week of November. By Dinise Chng Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Pertamina supplies first SAF to Virgin Australia


19/09/24
19/09/24

Pertamina supplies first SAF to Virgin Australia

Singapore, 19 September (Argus) — Indonesian state-owned refiner Pertamina has supplied its first sustainable aviation fuel (SAF) to airline Virgin Australia, as part of the continuing Bali International Air Show. Pertamina is supplying around 160 kilolitres (kl) of SAF to Virgin Australia's Boeing 737 aircraft from the Ngurah Rai aviation fuel terminal in Bali for flights during 18-19 September. This was part of the 3,500 kl of blended SAF that Pertamina had sought for end-August delivery, intended to be used at the air show. The remaining volumes will be sold to other airlines and sales will be assessed before any further SAF purchases are made, a company source said. The SAF is a blend of 38.43pc synthetic kerosine produced from used cooking oil (UCO) and 61.57pc fossil jet fuel, said the director of central marketing and commerce at Pertamina Patra Niaga Maya Kusmaya. Pertamina also has plans to co-process SAF from UCO at its Cilacap refinery next year, before producing SAF by the hydrotreated esters and fatty acids pathway when its Cilacap "green refinery" comes on line, said a company source, although more details have yet to be disclosed. SAF distributed at Ngurah Rai is also managed using mass balancing, meaning that while jet fuel is mixed with SAF in the same tank as both have similar technical specifications, recording and bookkeeping for both products are managed separately. Pertamina obtained International Sustainability and Carbon Certification (ISCC) Corsia and ISCC EU RED-compliant certification for its SAF last month. The SAF supplied also meets ASTM international standards. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Gas returns to Egyptian urea plants


19/09/24
19/09/24

Gas returns to Egyptian urea plants

Amsterdam, 19 September (Argus) — Gas supplies have returned to three Egyptian urea producers that had halted output earlier this week. The three plants of Alexfert, Helwan and another unidentified producer have a combined capacity of around 1.85mn t/yr. The disruptions emerged on 16 September when state-owned Gasco sent a letter to the producers informing them that the gas supplies would be cut. Overall urea operating rates in Egypt are to remain under pressure, at likely 80pc or below, as producers grapple with the shifting feedstock situation. Algerian producer Sorfert is also set to cut production at its 1.19mn t/yr granular urea plant to minimum rates next month, with output to be lower during October because of a turnaround. By Dana Hjeij and Harry Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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