Robust Turkish diesel exports steady European supply

  • : Oil products
  • 23/08/22

Turkish diesel cargo arrivals to the EU and UK have been steady in August, as the country establishes itself as a reliable supplier since the continent excluded Russian product and as supplies from east of Suez appeared to dry up.

The EU and UK imported 434,400t of Turkish diesel and gasoil between 1-21 August, according to Vortexa, already the third highest by volume for any month on record. Daily arrival rates suggest imports in the entire month are likely to be either the second or the highest of all time.

Turkey was the second largest diesel and gasoil supplier to Europe in the first three weeks of August, behind the US.

Turkey began ramping up its diesel and gasoil exports to Europe in earnest in April, after the EU and UK bans on Russian-origin oil products meant redirected Russian cargoes have helped match demand in a country that consumed more diesel than any European country apart from Germany and France. Turkish diesel exports have jumped as a result: they were around 320,000t in May, up by 9pc on the year, according to the latest figures from the energy market authority EPDK.

Turkish imports of Russian diesel surged to 1.097mn t that month, up from 377,000t a year earlier and the highest on record.

Turkish refineries have not faced any notable outages this summer, according to a trader in the region, which has probably enabled them to run hard and maximise diesel and gasoil production for export. European buyers made up 84pc of the Turkish diesel cargo export market between 1-21 August, according to Vortexa.

Turkey's proximity to Europe makes it a more natural supplier given the lower effect of freight rates on arbitrage economics. By contrast, Europe has struggled to pull in supplies from east of Suez in recent months. Suppliers like Saudi Arabia and India have been more able to sell into Asia-Pacific thanks in part to lower freight rates.

This is despite European refineries being plagued by unscheduled maintenance issues and heat-induced drops in run rates. These have stoked concerns around diesel supply and have helped drive diesel cargo margins up to $36.08/bl against North Sea Dated crude in the first three weeks of August, from $25.70/bl in July.

But it remains to be seen if Turkey can maintain its position among Europe's primary diesel suppliers. Russian product loadings have dropped this month because of stronger domestic demand. Diesel demand in Turkey is robust, with inflationary pressures leading buyers to front-load purchases, according to another trader operating in the region.


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24/05/23

Richmond City Council proposes Chevron refinery tax

Richmond City Council proposes Chevron refinery tax

Houston, 23 May (Argus) — The Richmond City Council in California's Bay Area has paved the way for a tax on Chevron's 245,000 b/d refinery, voting unanimously at a 21 May meeting for the city's attorney to prepare a ballot initiative. The newly proposed excise tax would be based on the Richmond refinery's feedstock throughputs, according to a presentation given by Communities for a Better Environment (CBE) at the meeting. It is a "…legally defensible strategy to generate new revenue for the city," CBE attorney Kerry Guerin said. The city has previously looked to tax the refinery, with voters passing ‘Measure T' in 2008 before it was struck down in court in 2009. This led to a 15-year settlement agreement freezing any new taxes on Chevron's refinery, but the agreement expires on 30 June 2025. The city is projecting a $34mn budget shortfall for the 2024 to 2025 fiscal year and is seeking to shore up its finances with additional revenue. Ballot initiatives allow Californian citizens to bring laws to a vote without the support of the state's governor or legislature, and the tax proposal could go to voters as early as November this year, according to CBE's Guerin. "Richmond has been the refinery town for more than 100 years, but it won't be 100 years from now," Richmond Mayor Eduardo Martinez said during the meeting. Chevron reiterates risk to renewables A tax on the refinery is the "wrong approach to encourage investment in our facility and in the city that could lead to new energy solutions and reductions in emissions from the refinery," Chevron senior public affairs representative Brian Hubinger said during the meeting's public comments. Hubinger's comment echoes prior warnings from Chevron that a potential cap on California refining profit in the process of being implemented by the California Energy Commission (CEC) would make the company less willing to investment in renewable energy . "An additional punitive tax burden reduces our ability to make investments in our facility to provide the affordable, reliable and ever-cleaner energy our community depends on every day, along with the job opportunities and emission reductions that go with these investments," Chevron said in an emailed statement. The Richmond refinery tax is a "hasty proposal, brought forward by activist interests," the company said. The company last year finished converting a hydrotreating unit at its 269,000 b/d El Segundo, California, refinery to process both renewable and crude feedstocks. The facility was processing 2,000 b/d of bio feedstock to produce renewable diesel (RD) and sustainable aviation fuel (SAF) and said it expected to up production to 10,000 b/d last year. But Chevron has so far lagged its California refining peers in terms of RD volumes with Marathon's Martinez plant running at about 24,000 b/d in the first quarter — half of its nameplate capacity — and Phillips 66's Rodeo refinery producing 30,000 b/d with plans to up runs to over 50,000 b/d by the end of the second quarter . Chevron did not immediately respond to a request for current RD volumes at its California refineries. By Nathan Risser Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Günstiger Frei-Haus Diesel wirft Fragen auf


24/05/23
24/05/23

Günstiger Frei-Haus Diesel wirft Fragen auf

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India's RIL seeks use of state-run jet fuel pipelines


24/05/23
24/05/23

India's RIL seeks use of state-run jet fuel pipelines

Mumbai, 23 May (Argus) — Indian private-sector refiner Reliance Industries (RIL) is seeking access to pipelines and storage facilities built by state-controlled firms to supply jet fuel from their refineries and depots to airports. India's Petroleum and Natural Gas Regulatory Board (PNGRB) had invited comments on the development of pipelines to distribute jet fuel to existing and planned airports, to encourage competition and reduce fuel costs. Fuel costs account for 30-40pc of Indian airlines' expenses. RIL suggested that for the common carrier pipeline scope should encompass the associated storage facilities and pumping stations at the "off-site" terminal facilities. The state-controlled refiners in their feedback to the PNGRB said they were open to declaring and developing new pipelines as common carriers. They also claimed that existing jet fuel pipelines are not monopolies as they compete with other modes of transport like roads. But state-controlled refiner IOC in its submission noted that "captive/self-use ATF pipeline being operated were designed with infrastructure of IOCL at both ends and are out of purview of [the] PNGRB Act and its congruent regulations." Hindustan Petroleum suggested that the existing jet fuel pipeline from its 190,000 b/d Mumbai refinery should not be declared as a common carrier pipeline as it will affect refinery production or transport. Bharat Petroleum suggested that all major airports be connected through at least one pipeline. For pipelines operating at more than 70pc capacity, it said the PNGRB should invite bids for a new pipeline to ensure redundancy and offset the risk of dependency on a single pipeline. India's production of jet fuel for the 2023-24 fiscal year ending 31 March rose by 14pc from a year earlier to 369,000 b/d, while demand rose by 11pc to 178,045 b/d, according to oil ministry data. RIL produces around a quarter of India's jet fuel at its 1.24mn b/d Jamnagar refinery complex and exports a large part of it. By Roshni Devi Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Somo issues first gasoil export tender: Correction


24/05/23
24/05/23

Somo issues first gasoil export tender: Correction

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Mexico crude exports up after Tula refinery outage


24/05/22
24/05/22

Mexico crude exports up after Tula refinery outage

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