Marine fuel global weekly market update
A weekly Argus news digest of interest to the conventional and alternative marine fuel markets.
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Alternative marine fuels
24 Mar Cosco shipping receives LNG carrier Chinese state-owned shipowner Cosco Shipping Energy Transportation (CSET) received a new LNG carrier…
24 Mar Nuclear may weigh on South Korean LNG demand South Korean LNG demand may fall this summer as firmer nuclear output could help meet stronger...
24 Mar Europe could face tighter biodiesel supply While stocks in ARA and the Mediterranean remain high and demand low for crop, waste and advanced biodiesel, the lowest prices in more than…
24 Mar REG ordered to pay SK Eco Prime for off-spec Pome The Court of Amsterdam has ordered biofuels company Renewable Energy Group (REG) to pay a fine to South Korean biodiesel producer SK Eco Prime…
23 Mar EU agrees on shipping sector GHG fuel intensity cuts The European Parliament and EU member states have today agreed that the greenhouse gas (GHG) intensity of fuels used in ships over 5,000 gross tonnage (GT) should be cut by…
23 Mar Brazil biodiesel blending hike to curb diesel imports The flow of foreign diesel into Brazil is likely to slow starting …
23 Mar US methanol spot prices slide to three-month low Methanol spot prices in the US Gulf coast sank to three-month lows this week amid …
23 Mar South Korean methanol trades below SE Asian prices Methanol prices in South Korea have slipped below southeast Asian values since the start of this year, undermined by…
23 Mar Japan's Mol to develop methanol-fuelled coastal ship Japanese shipping firm Mistui OSK Line (Mol) and its partners have placed an order to build a methanol-fuelled…
23 Mar Guangzhou Shipbuilding receives order for three PCTCs Chinese state-owned shipbuilder CSSC subsidiary Guangzhou Shipbuilding International has received an order to build three…
22 Mar Italian biodiesel imports, exports hit record in 2022 Italian imports and exports of biodiesel hit record levels in 2022, largely as a result of...
22 Mar Indonesian palm oil stocks to fall in 2023-24: USDA Increased domestic consumption with higher on-road biodiesel blending is expected to...
22 Mar China Energy plans $1.5bn H2, ammonia, methanol plant State-owned China Energy Engineering Company (CEEC) has outlined plans for a plant at Jilin in northeast China producing...
22 Mar Unchartered waters in the bunkering world: FTlive Pressure is mounting on the shipping sector to decarbonise, a tall order for an industry that relies almost entirely on heavy fuel oil…
21 Mar Acme mulls options for green ammonia offtake deals Indian solar power company Acme is expanding into green fuels and is developing projects in Oman, India, Egypt and elsewhere. Argus spoke to its president…
21 Mar European refiners may turn back to natural gas Sustained lower European natural gas prices alongside the recently implemented embargo on Russian oil products could …
21 Mar Samskip orders two H2 ships Dutch container ship firm Samskip ordered two…
21 Mar Japan's NYK hastens marine fuel transition Japanese shipping firm NYK Line is accelerating the launch of new vessels using…
20 Mar Lukoil prepares for LNG debut in west Africa Lukoil's Marine 12 offshore joint venture with Italy's Eni in…
20 Mar Portugal's biofuel blending dropped in JanuaryPortuguese biofuels blending and ticket trading dropped sharply in January, suggesting that fuels retailers were holding out for lower prices before attempting to meet the…
20 Mar Gas prices to remain stable in 2023: Eesti Gaas Gas prices have come down and will remain stable for at least the next year…
19 Mar OCI inks deal to supply S Korea's LFC with bio-ammonia Chemical firm OCI Global and South Korean producer Lotte Fine Chemical (LFC) have signed an agreement for the supply of…
Conventional marine fuels
24 Mar Middle East ups Russian product imports Russian product exports to the Middle East more than doubled on the month on a daily average basis to…
24 Mar Tuapse product exports to rise Product exports from Russia's Black Sea port of Tuapse are scheduled 30pc higher…
24 Mar Fos-Lavera cut off from oil product markets by strikes No oil product tankers of Handysize class or larger have loaded or unloaded in almost…
24 Mar India's February diesel exports fall, gasoline rises India's exports of diesel in February fell from a year earlier, likely because of a surge in domestic fuel demand to at least…
23 Mar Singapore middle distillate stocks hit 1½-year high Singapore's middle distillates stocks rose further to a fresh 1½-year high of 9.63mn bl in the week…
22 Mar French strikes have muted impact on diesel prices The industrial action that has swept across France in recent weeks has left the wider European market better supplied with diesel than…
21 Mar Singapore February bunker sales firm from year earlier Singapore's bunker sales in February totalled 3.79mn t…
21 Mar Weaker Asia-Pacific demand to cap MR freight rates Freight rates for clean Medium Range (MR) tanker vessels in the Asia-Pacific could…
20 Mar China's diesel exports hit four-month low in February China's diesel exports fell to a four-month low in February as...
20 Mar Prices for newbuild oil tankers on the rise Prices for newbuild crude and oil product tankers are beginning to rise, with demand boosted by strong…
27 Mar Australia's Ampol shuts FCC unit at Lytton refinery Australian refiner Ampol has shut a fluid catalytic cracking unit (FCC) at its Lytton refinery for…
Related news posts
Canadian rail workers vote to launch strike: Correction
Canadian rail workers vote to launch strike: Correction
Corrects movement of grain loadings from a year earlier in final paragraph. Washington, 2 May (Argus) — Workers at the two major Canadian railroads could go on strike as soon as 22 May now that members of the Teamsters Canada Rail Conference (TCRC) have authorized a strike, potentially causing widespread disruption to shipments of commodities such as crude, coal and grain. A strike could disrupt rail traffic not only in Canada but also in the US and Mexico because trains would not be able to leave, nor could shipments enter into Canada. This labor action could be far more impactful than recent strikes because it would affect Canadian National (CN) and Canadian Pacific Kansas City (CPKC) at the same time. Union members at Canadian railroads have gone on strike individually in the past, which has left one of the two carriers to continue operating and handle some of their competitor's freight. But TCRC members completed a vote yesterday about whether to initiate a strike action at each carrier. The union represents about 9,300 workers employed at the two railroads. Roughly 98pc of union members that participated voted in favor of a strike beginning as early as 22 May, the union said. The union said talks are at an impasse. "After six months of negotiations with both companies, we are no closer to reaching a settlement than when we first began, TCRC president Paul Boucher said. Boucher warned that "a simultaneous work stoppage at both CN and CPKC would disrupt supply chains on a scale Canada has likely never experienced." He added that the union does not want to provoke a rail crisis and wants to avoid a work stoppage. The union has argued that the railroads' proposals would harm safety practices. It has also sought an improved work-life balance. But CN and CPKC said the union continues to reject their proposals. CPKC "is committed to negotiating in good faith and responding to our employees' desire for higher pay and improved work-life balance, while respecting the best interests of all our railroaders, their families, our customers, and the North American economy." CN said it wants a contract that addresses the work life balance and productivity, benefiting the company and employees. But even when CN "proposed a solution that would not touch duty-rest rules, the union has rejected it," the railroad said. Canadian commodity volume has fallen this year with only rail shipments of chemicals, petroleum and petroleum products, and non-metallic minerals rising, Association of American Railroads (AAR) data show. Volume data includes cars loaded in the US by Canadian carriers. Coal traffic dropped by 11pc during the 17 weeks ended on 27 April compared with a year earlier, AAR data show. Loadings of motor vehicles and parts have fallen by 5.2pc. CN and CPKC grain loadings fell by 4.3pc from a year earlier, while shipment of farm products and food fell by 9.3pc. By Abby Caplan Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
FTC clears Exxon-Pioneer deal but bars Sheffield
FTC clears Exxon-Pioneer deal but bars Sheffield
New York, 2 May (Argus) — Anti-trust regulators signaled they will clear ExxonMobil's proposed $59.5bn takeover of Pioneer Natural Resources but banned the shale giant's former chief executive officer from gaining a seat on the board. A proposed consent order from the Federal Trade Commission seeks to stop Scott Sheffield, Pioneer's former chief executive, from taking part in "collusive activity" that would potentially raise crude prices and cause US consumers to pay more at the pump. The order paves the way for ExxonMobil to close its blockbuster deal for Pioneer, which will make it the leading producer in the prolific Permian shale basin of west Texas and southeastern New Mexico. It is also the top US oil producer's biggest transaction since Exxon's 1999 merger with Mobil. ExxonMobil's Permian output will more than double to 1.3mn b/d of oil equivalent (boe/d) when the acquisition closes, before increasing to about 2mn boe/d in 2027. The FTC, which has taken a tougher line on mergers under the administration of President Joe Biden, has paid close attention to oil deals announced during the latest phase of shale consolidation. Only this week, Diamondback Energy said it had received a second request for information from the regulator over its $26bn proposed takeover of Endeavor Energy Resources. And Chevron's planned $53bn acquisition of US independent Hess has also been held up. The FTC alleged in a complaint that Sheffield exchanged hundreds of text messages with Opec officials discussing crude pricing and output, and that he sought to align production across the Permian with the cartel. His past conduct "makes it crystal clear that he should be nowhere near Exxon's boardroom," said Kyle Mach, deputy director of the FTC's Bureau of Competition. ExxonMobil said it learnt about the allegations against Sheffield from the FTC. "They are entirely inconsistent with how we do business," the company said. While Pioneer said it disagreed with the FTC's complaint, which reflects a "fundamental misunderstanding" of US and global oil markets and "misreads the nature and intent" of Sheffield's actions, the company said it would not be taking any steps to stop the merger from closing. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
CEE gas operators begin binding capacity offer process
CEE gas operators begin binding capacity offer process
London, 2 May (Argus) — Gas transmission system operators (TSOs) across central and eastern Europe have launched the start of binding incremental capacity processes aimed at facilitating larger gas flows from south to north. Romanian, Bulgarian, Hungarian, Moldovan and Ukrainian operators have published joint documents outlining the necessary conditions for participating in the upcoming annual auctions on 1 July. Bulgarian and Romanian TSOs Bulgartransgaz and Transgaz will offer an additional roughly 123 GWh/d of capacity from Bulgaria to Romania at Negru Voda 1-Kardam on top of existing available capacity of 126-142 GWh/d depending on the year ( see BG-RO table ). In the event of a successful auction and subsequent economic test, the TSOs hope to reach a final investment decision (FID) in the third quarter of this year and commission the upgrades in the third quarter of 2026. Commercial operations could begin in the fourth quarter, aligning with the start of the 2026-27 gas year. This timeline has been moved forward by one year from the original proposals earlier this year . Transgaz, along with Hungary's FGSZ, will offer up to 73 GWh/d of additional capacity from Romania to Hungary at Csanadpalota on top of existing available capacity of 5-71 GWh/d depending on the year ( see RO-HU table ), but maintained its three-tiered approach elaborated in an earlier market consultation . Depending on the level of capacity to which firms commit at the auction, capacity could increase by 9.5 GWh/d, 47.3 GWh/d or 72.5 GWh/d. The smallest project could start commercial operations in the first quarter of 2028, the middle level in the third quarter of 2028, and the highest level in the third quarter of 2029. These timelines are pushed back by roughly one year from the originally-proposed dates in the February consultation. And Transgaz, along with Ukraine's GTSOU, will offer an additional 77 GWh/d of capacity from Romania to Ukraine at Isaccea 1-Orlovka 1 on top of existing available capacity of 97-109 GWh/d depending on the year ( see RO-UA table ). The TSOs aim to reach FID in the third quarter of this year and commission the project in the fourth quarter of 2028. Commercial operations could begin in October 2028. GTSOU and its Moldovan counterpart Vestmoldtransgaz will offer 173 GWh/d towards Moldova from Ukraine at Kaushany starting from the 2027-28 gas year, while simultaneously offering 159 GWh/d of capacity from Moldova towards Ukraine at Grebenyky. By Brendan A'Hearn Available and incremental capacity at Negru Voda/Kardam GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 141 - 141 2025-26 141 - 141 2026-27 142 123 265 2027-28 142 123 265 2028-29 142 123 265 2029-30-2042 126 123 249 — Bulgartransgaz, Transgaz; numbers rounded Available and incremental capacity at Csanadpalota GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 43 - 43 2025-26 46 - 46 2026-27 71 - 71 2027-28 13 - 142 2028-29 13 - 13 2029-30 5 73 78 2030-31 34 73 107 2031-32 34 73 107 2032-33-2039 63 73 136 — FGSZ, Transgaz; numbers rounded Available and incremental capacity at Isaccea/Orlovka GWh/d/yr Gas year Available existing cap Incremental cap Total 2024-25 109 - 109 2025-26 109 - 109 2026-27 109 - 109 2027-28 109 - 186 2028-29 109 77 186 2029-30-2039 97 77 174 — GTSOU, Transgaz; numbers rounded Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Shell's 1Q profit supported by LNG and refining
Shell's 1Q profit supported by LNG and refining
London, 2 May (Argus) — Shell delivered a better-than-expected profit for the first quarter of 2024, helped by a strong performance from its LNG and oil product businesses. The company reported profit of $7.4bn for January-March, up sharply from an impairment-hit $474mn in the previous three months but down from $8.7bn in the first quarter of 2023. Adjusted for inventory valuation effects and one-off items, Shell's profit came in at $7.7bn, 6pc ahead of the preceding three months and above analysts' estimates of $6.3bn-$6.5bn, although it was 20pc lower than the first quarter of 2023 when gas prices were higher. Shell's oil and gas production increased by 3pc on the quarter in January-March and was broadly flat compared with a year earlier at 2.91mn b/d of oil equivalent (boe/d). For the current quarter, Shell expects production in a range of 2.55mn-2.81mn boe/d, reflecting the effect of scheduled maintenance across its portfolio. The company's Integrated Gas segment delivered a profit of $2.76bn in the first quarter, up from $1.73bn in the previous three months and $2.41bn a year earlier. The segment benefited from increased LNG volumes — 7.58mn t compared to 7.06mn t in the previous quarter and 7.19mn t a year earlier — as well as favourable deferred tax movements and lower operating expenses. For the current quarter, Shell expects to produce 6.8mn-7.4mn t of LNG. In the downstream, the company's Chemicals and Products segment swung to a profit of $1.16bn during the quarter from an impairment-driven loss of $1.83bn in the previous three months, supported by a strong contribution from oil trading operations and higher refining margins driven by greater utilisation of its refineries and global supply disruptions. Shell's refinery throughput increased to 1.43mn b/d in the first quarter from 1.32mn b/d in fourth quarter of last year and 1.41mn b/d in January-March 2023. Shell has maintained its quarterly dividend at $0.344/share. It also said it has completed the $3.5bn programme of share repurchases that it announced at its previous set of results and plans to buy back another $3.5bn of its shares before the company's next quarterly results announcement. The company said it expects its capital spending for the year to be within a $22bn-$25bn range. By Jon Mainwaring Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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