Marine fuel global weekly market update
A weekly Argus news digest of interest to the conventional and alternative marine fuel markets. To speak to our team about accessing the stories below and access to Argus Marine Fuels, please contact: marinefuels@argusmedia.com.
Alternative marine fuels
9 June Rotterdam LNG share of bunker demand to rise LNG as a share of the Rotterdam bunker market may surpass 3pc this summer as LNG prices dip below conventional marine fuels.
9 June Indonesia's palm waste exports down on month in April Indonesia's palm waste exports decreased in April on the back of International Sustainability and Carbon Certificate (ISCC) withdrawals because of alleged fraudulent practices, curtailing China's import volumes from the southeast Asian country.
9 June Demand needed to drive new fuel supply: Nor Shipping More demand is needed if zero-carbon shipping fuels are going to become the norm, shipping industry leaders told attendees at the Nor-Shipping conference in Oslo this week.
9 June Iberdrola to build green ammonia plant in Spain Spanish utility Iberdrola plans to build a green ammonia plant in the south of the country following an agreement with ammonia trader Trammo for the purchase and sale of up to 100,000 t/yr of green ammonia from 2026.
8 June Japan's Asahi Kasei buys bio-methanol from Mitsui Japanese petrochemical producer Asahi Kasei has started purchasing bio-methanol from Japanese trading house Mitsui to produce bio-engineering plastic, amid growing pressure to decarbonise.
8 June Price goal of $100/t CO2 is 'unrealistic' for DAC The much talked about goal of $100/t of CO2 for direct air capture (DAC) is "not at all realistic", and firms should be careful about "lowballing" costs, delegates heard at an industry event this week.
8 June Policy, costs make US key clean ammonia supplier The US is uniquely positioned to become a principal exporter of clean ammonia within the next decade despite price-related challenges that remain in play, delegates said Wednesday at the Argus Clean Ammonia North America Conference in Houston, Texas.
8 June Klapedia, Proman agree on methanol bunkering The Port of Klapedia in Lithuania is adding methanol bunkering capability to its operations.
8 June Japan's Mol to charter LNG-fuelled bulk carrier Japanese shipping firm Mitsui OSK Lines (Mol) has agreed to charter a new LNG-fuelled bulk carrier for utility Kansai Electric Power to deliver coal from Kansai's Maizuru power complex, targeting commissioning in 2026.
8 June Iran's methanol output dips on squeezed margins Production at methanol units in Iran is expected to dip in June, with some producers opting to cut operating rates because of weakening margins.
8 June IMO must boost emissions targets: Maritime group The head of a Norwegian maritime group said the UN's International Maritime Organization (IMO) must adopt a more ambitious emissions goal to meet a zero-emissions target by 2050.
8 June Titan LNG charters new bunkering vessel Dutch shipping firm Titan LNG has signed a long-term charter with Italian bunker supplier and shipowner Fratelli Cosulich for its 8,200m³ Alice Cosulich LNG bunkering vessel.
7 June Royal Caribbean to test biofuel on two ships US cruise ship operator Royal Caribbean will test a biofuel blend in two of its ships as part of its research on using alternative marine fuels.
7 June Monjasa's total CO2 emissions rose in 2022 Total direct CO2 equivalent emissions put out by Danish marine fuel and trading company Monjasa rose between 2021 and 2022, according to its 2022 responsibility report.
7 June VLGC owner Avance Gas enters MGC market Oslo-listed shipowner Avance Gas has purchased two newbuild LPG/ammonia vessels and entered the midsize gas carrier (MGC) market.
6 June Stena mulls sale of LNG assets Swedish shipping firm Stena is considering selling some or all of its LNG assets.
6 June X-Press Feeders orders six methanol-fuelled ships Singapore-based shipping company X-Press Feeders has ordered six 1,250TEU methanol dual-fuelled containerships.
6 June Ardmore orders 3 more CO2 capture units to MR tankers Ireland-based shipping company Ardmore Shipping will retrofit three of its Medium Range (MR) tankers with CO2 capture systems.
6 June China biodiesel sector responds to EU policy proposals Chinese biodiesel stakeholders have responded to calls from European waste-based and advanced biofuels association (Ewaba) for policy measures to address stronger Chinese biodiesel exports to the EU.
6 June WinGD partners with Mitsubishi on ammonia engines Swiss marine power company Winterthur Gas and Diesel (WinGD) has partnered with Japanese shipbuilder Mitsubishi Shipbuilding to develop ammonia-fuelled vessels.
5 June Norway's Stena mulls sale of LNG assets Norwegian shipping firm Stena Power is considering selling some or all of its LNG assets.
5 June Biofuels use in shipping has limitations: DNV Biofuels have the potential to contribute significantly to reducing carbon emissions in shipping because of their flexibility as a "drop-in fuel", but they are "unlikely to be the only solution to shipping's goal of transitioning to zero [greenhouse gas] GHG emissions in the future", according to marine certification society DNV.
5 June Singapore, Australia seek shipping corridor Singapore and Australia have opened discussions to establish a green shipping corridor by 2025.
5 June EU investigates allegations of biofuels fraud The European Commission today said it is investigating allegations of "possible fraud" related to biofuel imports from China into the EU, having received reports from a member state.
5 June Industry earmarks €18bn in biomethane investments: EBA Industry stakeholders have set aside a first tranche of €18bn ($19.2bn) in investments to scale up biomethane production in Europe, according to the first investment outlook by industry association EBA.
Conventional marine fuels
9 June US increases European diesel market share The US has been providing more than 10pc of Europe's diesel imports since the start of May, up from around 5pc last year and 7-8pc in the opening months of this year. Cargoes have probably been freed up by Russian sellers taking around half of the US' previous market share in Brazil.
9 June Asian HSFO flips into contango on lack of summer demand Singapore 180cst high-sulphur fuel oil (HSFO) markets have flipped into contango mainly as typical South Asian summer utility demand has failed to materialise, market participants said.
9 June Chinese prices signal higher gasoline, diesel exports Chinese spot diesel prices have fallen to their lowest since last year's lockdown even as international prices rally — increasing the likelihood of higher exports.
9 June Slow demand weighs on Japan's April bonded bunker sales Japan's bonded marine fuel sales fell in April, pressured by weaker delivery demand from domestic shipowners and the spot market.
9 June Japan's Tokyo VLSFO supplies tighten on lower stocks Very low-sulphur fuel oil (VLSFO) deliveries in Japan's Tokyo bay area tightened, pressured by lower stocks because of refinery turnarounds.
8 June Low Turkish, Greek diesel exports tighten Europe supply Turkish and Greek diesel cargo offers have dwindled over recent weeks, according to market participants, further stoking diesel supply tightness in the Mediterranean market.
8 June Oman's Duqm refinery offers fuel oil, naphtha Oman's 230,000 b/d Duqm refinery has offered fuel oil and a naphtha cargo as it starts up, although residual fuel offers should taper off as downstream units come on line, said market participants.
8 June UAE, Saudi May fuel oil imports from Russia fall 35pc The UAE's and Saudi Arabia's imports of Russia-origin fuel oil fell by nearly 35pc in May from April, reflecting spring maintenance at Russian refineries.
7 June Brazil diesel imports fall further in May Brazil diesel imports fell for the second consecutive month in May amid a growing preference for domestic output after state-controlled Petrobras reduced its wholesale prices on 16 May.
7 June China raises oil product exports in May on huge quotas China's oil product exports jumped to 4.89mn t in May, sharply up on the month and year on year and higher than market expectations, after huge quotas were issued in the month.
7 June Peninsula to supply bunker fuels in Egypt Marine fuel supplier Peninsula Petroleum has been awarded a bunker supply licence for Mediterranean ports by the Egyptian government.
7 June World Bank lifts Russia outlook The World Bank has significantly upgraded its outlook for the Russian economy this year, largely because of continuing energy exports.
5 June Lake Charles refinery shut 1-2 months Calcasieu Refining's 135,000 b/d Lake Charles, Louisiana, refinery may be closed for up to two months after a 3 June lightning strike caused a naphtha tank fire.
5 June Afipsky refinery resumes normal operations Independent refiner Forteinvest is resuming normal operations at its 120,000 b/d Afipsky plant ...
5 June NWE diesel price spreads point to tighter supply Northwest European diesel premiums to crude, jet fuel and intermediate feedstocks all hit their highest in more than a month last week, as did the backwardation structure in the forward curve, affirming indications from traders that supply is substantially tightening.
Related news posts
Rio Grande do Sul remaneja fornecimento de gás
Rio Grande do Sul remaneja fornecimento de gás
Sao Paulo, 17 May (Argus) — O fornecimento de gás natural no Rio Grande do Sul teve que ser redistribuído em razão das enchentes históricas no estado, com o diesel potencialmente voltando como combustível a usinas de energia para deixar mais gás disponível para a produção de GLP (gás de cozinha). O gasoduto Gasbol, que abastece o Sul do Brasil, não tem capacidade para atender à demanda da refinaria Alberto Pasqualini (Refap), da usina termelétrica de Canoas — controlada pela Petrobras — e das distribuidoras de gás natural da região, disse Jean Paul Prates, o então presidente-executivo da Petrobras, no início desta semana. A distribuidora de gás de Santa Catarina ajustou sua própria rede local para atender aos picos de demanda no Rio Grande do Sul por meio da malha de transporte de gás. A usina térmica de Canoas está operando com geração mínima de 150 GW, sendo 61pc provenientes de sua turbina a gás. A usina foi colocada em operação para restabelecer o fornecimento adequado de energia depois que as linhas de transmissão no Sul foram afetadas pelas enchentes. A Petrobras planeja usar um motor a diesel para aumentar a geração de energia. O atual custo variável unitário (CVU) para o diesel na usina de Canoas é de R1.115,29/MWh. A companhia petrolífera também está operando a Refap a 59pc de sua capacidade instalada máxima. Fortes chuvas no Rio Grande do Sul desde 29 de abril trouxeram inundações sem precedentes ao estado, causando uma crise humanitária e danos à infraestrutura. O clima extremo deixou 154 mortos, 98 desaparecidos e mais de 540 mil deslocados, segundo a defesa civil do estado. Por Rebecca Gompertz Envie comentários e solicite mais informações em feedback@argusmedia.com Copyright © 2024. Argus Media group . Todos os direitos reservados.
Brazil's Rio Grande do Sul reallocates gas supply
Brazil's Rio Grande do Sul reallocates gas supply
Sao Paulo, 17 May (Argus) — Natural gas supply in Brazil's Rio Grande do Sul had to be redistributed because of the historic floods in the state, with diesel potentially making its way back as an power plant fuel to leave more gas available for LPG production. Gasbol, the natural gas transportation pipeline that supplies Brazil's south, does not have capacity to meet demand from the 201,000 b/d Alberto Pasqualini refinery (Refap), state-controlled Petrobras' Canoas thermal power plant and natural gas distributors in the region, according to Petrobras' then-chief executive Jean Paul Prates said earlier this week. The Santa Catarina state gas distributor has adjusted its own local network to meet peak demand in neighboring Rio Grande do Sul via the pipeline transportation network. The Canoas thermal plant is running at its minimum generation at 150GW, with 61pc coming from its gas turbine. The plant was brought on line to reinstate proper power supply after transmission lines in the south were affected by the floods. Petrobras plans to use a diesel engine to increase power generation. The current approved fuel cost (CVU) for diesel in the Canoas plant is of R1,115.29/MWh. Petrobras is also operating Refap at 59pc of its maximum installed capacity, at 119,506 b/d. Heavy showers in Rio Grande do Sul since 29 April brought unprecedented flooding to the state, causing a humanitarian crisis and infrastructure damage. The extreme weather has left 154 people dead, 98 missing and over 540,000 people displaced, according to the state's civil defense. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Houston area refiners weather hurricane-force winds
Houston area refiners weather hurricane-force winds
Houston, 17 May (Argus) — Over 2mn b/d of US refining capacity faced destructive winds Thursday evening as a major storm blew through Houston, Texas, but the damage reported so far has been minimal. Wind speeds of up to 78 Mph were recorded in northeast Houston and the Houston Ship Channel — home to five refineries with a combined 1.5mn b/d of capacity — faced winds up to 74 Mph, according to the National Weather Service . Further South in Galveston Bay, where Valero and Marathon Petroleum refineries total 818,000 b/d of capacity, max wind speeds of 51 Mph were recorded. Chevron's 112,000 b/d Pasadena refinery on the Ship Channel just east of downtown Houston sustained minor damage during the storm and continues to supply customers, the company said. ExxonMobil's 564,000 b/d Baytown refinery on the Ship Channel and 369,000 b/d Beaumont, Texas, refinery further east faced no significant impact from the storm and the company continues to supply customers, a spokesperson told Argus . Neither Phillips 66's 265,000 b/d Sweeny refinery southwest of Houston nor its 264,000 b/d Lake Charles refinery 140 miles east in Louisiana were affected by the storm, a spokesperson said. There was no damage at Motiva's 626,000 b/d Port Arthur, Texas, refinery according to the company. Marathon Petroleum declined to comment on operations at its 593,000 b/d Galveston Bay refinery. Valero, LyondellBasell, Pemex, Total, Calcasieu and Citgo did not immediately respond to requests for comment on operations at their refineries in the Houston area, Port Arthur and Lake Charles. A roughly eight-mile portion of the Houston Ship Channel from the Sidney Sherman Bridge to Greens Bayou closed from 9pm ET 16 May to 1am ET today when two ships brokeaway from their moorings, and officials looked in a potential fuel oil spill, according to the US Coast Guard. The portion that closed provides access to Valero's 215,000 b/d Houston refinery, LyondellBasell's 264,000 b/d Houston refinery and Chevron's Pasadena refinery. By Nathan Risser Houston area refineries Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Clean hydrogen industry still upbeat but more realistic
Clean hydrogen industry still upbeat but more realistic
London, 17 May (Argus) — The clean hydrogen sector still lacks tangible progress and final investment decisions (FIDs) for projects remain few and far between, but it is reaching a moment of reckoning essential for market maturity, delegates at the World Hydrogen Summit in Rotterdam said. When asked whether they were more or less positive than a year ago, industry participants gave diverging answers, but there was widespread agreement that progress on clean hydrogen has been slower than expected. This has been "the year of doldrums", the Dutch port of Rotterdam's hydrogen supply chain programme manager Martijn Coopman said. Increasing material and financing costs, the unstable geopolitical situation and a lack of clarity on regulatory frameworks are just some of the challenges developers have faced. This is a "grim environment if you were expecting the Swiss army knife approach" to work, industry body the Australia Hydrogen Council's chief executive Fiona Simon said, alluding to the — misguided — expectation that hydrogen could be used across all sectors to help decarbonise. "We are coming to terms" on the real use and appropriate applications of hydrogen, Simon said, pointing to green steel production. "We are converging on the same concepts and same policies". The industry has reached the point where the wheat is separated from the chaff and it is becoming a lot clearer which projects will actually materialise. There is now a greater sense of "realism" underpinning discussions according to Dutch gas company Gasunie chief executive Willemien Terpstra. And this is why market participants are more optimistic than a year ago. Demanding as ever Still, delegates widely urged more policy action, especially on the demand side, which has been a recurrent theme. Spurring on demand will be key to get to more FIDs, Spanish utility Iberdrola's hydrogen development director Jorge Palomar Herrero, said. "We can have great intentions and great projects but without the demand, they are not going to happen". Even in Europe, which has pushed ahead with efforts to stimulate demand, these have not been enough to spur offtake, Herrero said. Demand-side incentives alone will likely not be enough and eventually there will have to be consumption obligations too, some said. Incentives may help to reduce project costs and kickstart production, but the amount of "carrots" needed is "phenomenal", so "sticks" will be key, the port of Rotterdam's Coopman said. Consumption mandates could help accelerate momentum in emerging markets and developing countries that have big ambitions for exports to future demand centres, the World Bank's private sector arm IFC energy chief investment officer Ignacio de Calonje said. Governments are now ready to act on these requests, according to industry body the Hydrogen Council's director for policy and partnerships Daria Nochevnik. "The penny has dropped," Nochevnik told Argus , noting that the need for demand-side action was the number one priority outcome of a ministerial-executive roundtable held in Rotterdam this week. Red and blue Governments must also remove red tape to speed things up, conference delegates said. European developers in particular are increasingly frustrated with paperwork involved in funding applications, according to German utility Uniper's vice-president for hydrogen business development Christian Stuckmann. Shortening lengthy permitting and funding processes is also high on governments' lists, Nochevnik noted. Some delegates renewed calls for a wider acceptance of "blue" low-carbon hydrogen made from natural gas with carbon capture and storage to address concerns that, if it is up to renewable hydrogen alone, things will start too late — or not at all. There appeared to be widespread consensus that this low-carbon hydrogen will have a key role to play, especially in a transitional period, as it can already deliver significant emissions reductions. But there is still a "stigma" in Europe, according to industrial gas firm Linde's vice-president for clean energy David Burns. This could hamper its adoption, which many delegates argued the world cannot afford. By Pamela Machado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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