Marine fuel global weekly market update

: Biofuels, E-fuels, Emissions, Fertilizers, Hydrogen, Natural gas, Oil products, Petrochemicals
23/09/18

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

15 September Beyond the bottom line for emissions reductions: LISW Industry participants are playing a waiting game to decarbonise shipping, with most reluctant or unable to act first.

14 September OCI to double US green methanol capacity Dutch fuels and gas supplier OCI Global plans to double the green methanol capacity at its Beaumont, Texas, facility to 400,000 metric tonnes (t)/yr and will add e-methanol to production for the first time.

14 September Teco 2030 to supply cell systems for six Ultramaxes Norwegian fuel cell maker Teco 2030 has signed a supply agreement with shipowner Pherousa Green Shipping to supply fuel cells for up to six zero-emissions Ultramax dry bulk carriers.

14 September Desfa extends tender to build LNG bunkering platform Greek system operator Desfa has extended the deadline for a bid tender to provide a floating small-scale jetty to load and unload small-scale LNG vessels at the 4.9mn t/yr Revithoussa facility by five days to 25 September.

14 September B30-MGO blend premium to MGO narrows to 7-month low The premium of marine biodiesel with 30pc advanced fatty acid methyl ester (Fame) and 70pc marine gasoil (MGO) in ARA on a dob basis to conventional MGO narrowed to $4.92/t on 13 September, its lowest since February.

14 September LG Chem, Eni mulling biorefinery in South Korea Italian energy firm Eni's biofuel division, Eni Sustainable Mobility, has formed a joint venture to develop a biorefinery at LG Chem's Daesan chemical complex in South Korea.

14 September Indonesia's biodiesel exports plunge in July Indonesian biodiesel exports declined sharply in July as sales to China fell.

13 September Shipping sector's decarbonisation push switches focus Efficiency, flexibility and new technologies such as modular nuclear propulsion and maritime carbon capture and storage (CCS) have taken centre stage during decarbonisation talks at the London International Shipping Week.

13 September Shipbroker launches EUA procurement service Shipbroker SSY and brokerage CF Partners have launched an EU emissions trading system (ETS) allowance (EUA) procurement service for shipping companies, ahead the sector's inclusion in the scheme.

12 September Consort Bunkers to develop ammonia bunkering tanker Singapore-based fuel supplier Consort Bunkers has agreed to develop an ammonia-fueled bunkering tanker with four East Asian-based companies.

12 September Emissions plans must match IMO strategy: Study The International Maritime Organization's (IMO) revised greenhouse gas regulation (GHG) strategy represents a major step forward in combating climate change, but the IMO's ambition must be matched by strong action from national governments and corporations to cap global warming at 1.5°C, a study by maritime consultancy University Maritime Advisory Services (UMAS) concludes.

12 September Shipping will not meet green targets: DNV The shipping industry is unlikely to meet its decarbonisation goals, with access to alternative fuel supplies in particular posing a problem, Knut Orbeck-Nilssen, chief executive of vessel classification society DNV Maritime, said at the Capital Link Forum in London today.

12 September Japan's MOL, Shell sign maritime decarbonisation deal Japan's Mitsui OSK Lines (MOL) and Shell subsidiary Shell Marine Products Singapore have signed an initial agreement to partner on alternative maritime solutions and carbon emissions.

12 September Iran says progress on revived LNG project near 50pc Iran says construction work at the revived 10.8mn t/yr Iran LNG project stands at just shy of 50pc and is on track for completion before the end of the current administration's term in office in mid-2025.

12 September PetroPeru issues ninth HSFO tender in 2023 State-owned PetroPeru issued its second 200,000 bl high-sulphur residual fuel oil (HSFO) tender this month, making it the ninth so far in 2023.

12 September ABS to open Singapore maritime electrification centerThe American Bureau of Shipping (ABS) will open an ABS electrification center in Singapore to support maritime decarbonisation projects globally.

11 September Maersk to source biomethanol from Equinor Danish shipping firm A.P. Moller-Maersk said it has signed an agreement for Norway's state-controlled Equinor to supply its new methanol-enabled feeder vessel with biomethanol.

11 September E-ammonia and biomethane to lead green fuel: Lloyd's E-ammonia and biomethane are projected to dominate among hydrogen- and biofuel-based maritime fuel consumption, respectively, by 2050, according to an analysis by classification society Lloyd's Register (LR).

11 September Japan's firms, Australia's Woodside eye CCS value chain Japanese companies have partnered Australian independent Woodside Energy to explore opportunities to develop a carbon capture and storage (CCS) value chain between the two countries.

Conventional marine fuels

15 September Agunsa extends bunker supply to Europe Chilean bunker supplier Agunsa delivered a marine gas oil (MGO) stem to drilling contractor Diamond Offshore's drillship Ocean Blackhawk in Las Palmas, Spain.

15 September Spain's Cepsa takes Huelva FCC offline for maintenance The fluid catalytic cracker (FCC) at Abu Dhabi-controlled Cepsa's 220,000 b/d Huelva refinery in southwest Spain is offline for a regular scheduled turnaround.

14 September Monjasa to offer marine biofuels in Colombia Maritime fuel trader and supplier Monjasa plans to offer 5,000-7000 metric tonnes/month of marine biofuels in Latin America, pending additional trial voyages and an increase in biofuels demand.

14 September Navigational fees to rise in Mideast Gulf Maritime services provider Middle East Navigation Service (Menas) will increase navigational fees, or dues, for ships entering the Mideast Gulf and will widen the group of vessels that will be asked to pay for the services as of 1 October 2023.

14 September ARA fuel oil stocks hit three-week high Independently held oil product stocks at the Amsterdam-Rotterdam-Antwerp (ARA) trading hub gained 1.3pc in the week to 13 September to reach 5.36mn t, according to consultancy Insights Global. An increase of almost 10pc in fuel oil inventories drove the rise.

14 September Singapore's light distillates stocks fall Singapore's light distillates stocks fell to a near two-month low in the week to 13 September, as gasoline exports increased from the city-state.

13 September KPC's plans for global oil trading desk move forward Kuwait's state-owned oil company KPC is making progress towards setting up a global trading desk, according to the company's managing director for international marketing Sheikh Khaled Al-Sabah.

13 September Crowley, Seacor to form Jones Act tanker firm Florida shipowners Crowley and Seacor Holdings have formed a new joint venture to operate Jones Act vessels, Fairwater Holdings.

13 September India, Saudi Arabia to expedite IOC refinery plan India and Saudi Arabia have agreed to accelerate Indian state-controlled refiner IOC's 1.2mn b/d West Coast Refinery project.

12 September Electrical issue shuts Cosmo Oil's Yokkaichi refinery Japanese refiner Cosmo Oil halted refining operations at its 86,000 b/d Yokkaichi plant on 9 September because of an electrical problem.

12 September Queue of empty carriers grows at Freeport LNG Four empty LNG carriers were holding offshore Texas' 15mn t/yr Freeport LNG export terminal today, as the facility's gas intake continued to suggest slower production.

11 September US, Canadian refiners start seasonal maintenance Turnarounds affecting up to 2mn b/d of North American refining capacity are planned for the remainder of this year, with the bulk of the work starting this month.

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25/12/19

Mexico central bank cuts target rate to 7pc

Mexico City, 19 December (Argus) — Mexico's central bank cut its benchmark interest rate by 25 basis points to 7pc, its lowest level since June 2022, maintaining a slower pace in the easing cycle on inflation concerns. The decision marked the eighth rate cut this year and the fourth quarter-point reduction following four consecutive half-point cuts. This year's cuts follow five quarter-point cuts in 2024 from a cyclical peak of 11.25pc in March. The board approved the cut in a 4-1 vote, with deputy governor Jonathan Heath dissenting in favor of holding the rate at 7.25pc. Heath has been the lone dissenter in the past five decisions, consistently urging greater caution. The central bank said the decision reflected "the behavior of the exchange rate, the weakness of economic activity and the possible impact of changes in global trade policies," repeating language used in its last four statements. Gabriela Siller, chief economist at Banco Base, pointed to a "significant change" in the bank's forward guidance, noting a shift toward a less dovish tone. The board said it "will consider when to make further adjustments" to the policy rate, replacing the "will consider cutting" language used in November. Mexican bank Banorte also said the central bank struck a less dovish tone, pointing to a change in its forward guidance. Annual inflation rose to 3.8pc in November from 3.57pc in October, according to statistics agency Inegi. Core inflation, which excludes volatile food and energy prices, accelerated to 4.43pc from 4.28pc. The central bank now sees headline inflation ending 2025 at 3.7pc, up from 3.5pc in its November forecast, while core inflation is projected at 4.3pc, revised from 4.1pc. It also raised its headline and core forecasts for the first two quarters of 2026, while maintaining that both will converge to its 3pc target by the third quarter. The bank said the revisions mainly reflect a "more gradual-than-expected" easing in services inflation, along with a smaller contribution from accelerating consumer goods prices. The board also addressed recent tax reforms, which it expects will have a temporary and not necessarily proportional impact on prices, adding it will update its forecasts as it conducts a comprehensive assessment of the revised tax code's effects. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australia needs electricity carbon policy: Commission

25/12/19

Australia needs electricity carbon policy: Commission

Sydney, 19 December (Argus) — The Australian government should introduce a national market-based policy to drive electricity sector decarbonisation, potentially modelled on the existing safeguard mechanism, economic research and advisory body the Productivity Commission (PC) said in a final report today. The PC had previously recommended applying the safeguard mechanism to electricity generators at the facility level, but it may be better to consider this issue separately, it noted in a final inquiry report into "investing in cheaper, cleaner energy and the net zero transformation". "Multiple policy options will need to be considered for the electricity sector, and even if a baseline-and-credit scheme is preferred, it may be better to keep this separate from the safeguard mechanism, at least at first, to avoid risks of uncertainty and disruption in the carbon credit markets that support that policy," the PC said. Currently there is little relationship between the emissions intensity of Australia's remaining coal-fired power plants and their announced retirement dates, according to the commission. Recognising the value of emissions reduction would pave the way for more emissions-intensive plants to retire earlier, it argued. Electricity excluded from safeguard mechanism Under the safeguard mechanism, facilities emitting more than 100,000t of CO2 equivalent (CO2e) in a compliance year across several sectors earn safeguard mechanism credits (SMCs) if they report scope 1 emissions below their baselines, and must surrender SMCs or Australian Carbon Credit Units (ACCUs) if their emissions are above the threshold. The electricity sector, Australia's largest emitter, is effectively excluded from the mechanism because the emissions reduction policy for the segment has been focused on renewable electricity targets. The mechanism applies a single sectoral baseline of 198mn t CO2e/yr across all electricity generators connected to Australia's main electricity grids, which is way above recent data — emissions from the electricity generation sector reached a combined 138.9mn t CO2e in the 2023-24 compliance year. A decision on whether to expand the mechanism to electricity may be considered in the upcoming safeguard mechanism review in 2026-27 . NEM review But any new policy will need to complement reforms arising from the National Electricity Market (NEM) review, which also received a final report this week . The decision will also need to be consistent with several policies and agreements already in place to support new investment or manage the exit of coal plants across Australia, the PC noted. While the existing Capacity Investment Scheme (CIS) and the proposed Electricity Services Entry Mechanism (ESEM) scheme mainly target renewable output or capacity, a least-cost emissions-reduction policy would help companies deciding when to retire coal and gas plants, according to the commission. This will be even more important if the Australian government prioritises firming auctions, which may support new gas-fired plants. Emissions policy uncertainty has been a major barrier to investment in gas-powered generation, the PC said. "Firming auctions will be more effective if project proponents know in advance how their emissions will be treated," it noted. Apart from a policy to drive electricity sector decarbonisation, the PC's final report urges the government to expand the safeguard mechanism , phase out fuel tax credits for on-road heavy vehicle operators, and reduce barriers to adopting low-emissions technology for heavy vehicles. And it also calls the government to phase out the fringe benefits tax exemption for electric vehicles (EVs), a recommendation that was criticised by industry body EV Council . By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Viewpoint: Bitumen markets eye pockets of demand

25/12/19

Viewpoint: Bitumen markets eye pockets of demand

London, 19 December (Argus) — Paving activity may strengthen in some European and north African markets in 2026, but several others are expected to see continued declines in bitumen demand. Germany could lead any recovery, market participants said, as a new government plans to expand and maintain the road network. The country — once Europe's bitumen powerhouse — had a weak 2025, but paving work is expected to lift consumption from mid-2026. German bitumen demand has fallen by more than 20pc since 2021, while France and the UK are down by over 25pc in the same period. Budget constraints and high inflation drove these declines. Sweden, Norway and Denmark — already demand drivers in 2025 — could strengthen further in 2026. Road budgets are set to rise as governments prioritise infrastructure and the value of well-maintained highways, possibly linked to higher defence spending as Nato strengthens in Europe. North Africa has also drawn European Mediterranean surplus cargoes , and market participants expect demand from the region to increase next year, led by Algeria, Morocco and some Libyan consumption. Elsewhere, there is little cause for optimism. In France, most participants expect 2026 demand to be weaker than in 2025. With the government beset by regular upheaval and parlous public finances, road spending seems an unlikely priority. Several other northwest and central European countries will also see steady to lower bitumen consumption in 2026. Meanwhile, prospects for a peace deal between Ukraine and Russia remain slim, so a large upswing in Ukrainian import demand looks unlikely next year. Export opportunities outside Europe also appear limited, as Asia-Pacific and the Middle East remain well supplied and demand there stays slow. South Africa, now reliant on imports, is more likely to source from the Mideast Gulf or Pakistan than from the Mediterranean. The prospects of shipping product to the US could improve in the coming months, with Mediterranean bitumen values currently firm relative to crude and fuel oil. But large volumes seem unlikely. Some Mediterranean cargoes moved to the US last year, but the trend was short-lived. In the bitumen freight market, several new larger tankers will enter service in 2026, increasing vessel availability in what will still be a weak market. This could weigh on freight rates but help offset higher costs from the EU ETS scheme, which comes fully into effect in 2026 after its 2024 implementation. Bitumen prices fell in 2025 and are expected to stay under pressure through winter, before seasonal gains from March 2026. Markets should see greater strength relative to fuel oil in summer as bitumen demand typically rebounds then. Demand for bitumen was generally weaker across most European countries in 2025 than in 2024, weighing on prices. Budgets came under pressure and political challenges contributed to a lack of focus on infrastructure and road maintenance spending. Bitumen prices hit historic lows in 2025, partly offsetting inflation-driven increases in building, equipment and material costs. By Jonathan Weston Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

W Australia's gas surplus outlook strengthens: Aemo

25/12/19

W Australia's gas surplus outlook strengthens: Aemo

Sydney, 19 December (Argus) — The Australian Energy Market Operator (Aemo) is forecasting a bigger gas supply surplus in Western Australia (WA) for most of 2026-30, according to its 2025 WA Gas Statement of Opportunities (GSOO) report released today. Aemo now projects that both gas supply and demand will be lower than previously expected in the period, because of cutbacks at major industrial users and downward revisions to its production forecasts. But its demand revisions were larger than its supply revisions, increasing its projected surplus. The state's gas supply will exceed demand over most of that period, except in 2028 and 2030 (see table) . It has increased its projections for the size of the surplus compared with those in its 2024 WA GSOO report. Supply side Aemo cut its WA gas supply forecast because of delays, gas reserve depletions, and decreased expected production at the Gorgon, Scarborough, and Pluto projects, it said. The market operator previously expected Australia producer Strike Energy to open its 87 TJ/d (2.3mn m³/d) West Erregulla project in 2026. But Strike only aims to make a final investment decision on the project in July-December 2026 , later than originally anticipated . Strike's West Erregulla delay lowered WA's expected gas production by 52 TJ/d in 2027 and 63 TJ/d in 2028, Aemo said. Aemo has also cut its production expectations for the Scarborough and Pluto gas fields by up to 24 TJ/d in 2030, it said. Australian developer Woodside Energy aims to process 7mn t/yr of Scarborough gas and 3mn t/yr of Pluto gas from early 2027, it said in November. Workers building a 5mn t/yr LNG train at the Pluto LNG terminal plan to launch a strike on 6 January. Their current enterprise bargaining agreement with Australian engineering firm Bechtel will expire on 19 December, Argus understands. Planned maintenance and lower utilisation at the Gorgon project contributed to a 16 TJ/d cut to Aemo's forecasts, it said. The project's owners — which include Chevron, ExxonMobil, Shell, Osaka Gas, Tokyo Gas and Jera — will modify its three-train Gordon LNG terminal as part of a A$3bn ($1.98bn) project, it said in December. Reserve downgrades and depletions at the Walyering, Beharra Springs, Macedon, and Varanus Island fields mostly account for the rest of the supply revisions, Aemo said. The Walyering and Beharra Springs field reserve downgrades cut Aemo's WA supply forecast by 5 TJ/d in 2026 and 23 TJ/d in 2029, it added. Demand side The closure of nickel mining and alumina refining operations cut Aemo's 2026-30 demand forecast, the operator said. But demand will still rise over that period, from 1,085 TJ/d in 2026 to 1,295 TJ/d, because of new mining and processing activity, it said. US producer Alcoa opted to permanently close its 2.2mn t/yr Kwinana alumina refinery on 30 September , after it paused the site in July 2024. It has not announced a full closure timeline yet, Alcoa Australia president Elsabe Muller told Argus at the time. Australian miner IGO has also paused its Forrestania and Cosmos nickel projects over recent years. Multiple developers including Australian producers Iluka Resources , Cobalt Blue , and RZ Resources will develop critical mineral mining or processing projects in WA over the coming years. By Avinash Govind WA projected gas surplus TJ/d Year Surplus (2024 WA GSOO) Surplus (2025 WA GSOO) 2026 4 54 2027 5 20 2028 -12 -89 2029 5 132 2030 -2 -11 *GSOO refers to Gas Statement of Opportunities Source: Australian Energy Market Operator Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Energy Transfer halts plans for Lake Charles LNG

25/12/18

Energy Transfer halts plans for Lake Charles LNG

Houston, 18 December (Argus) — US midstream firm Energy Transfer is suspending development of its planned 16.5mn t/yr (2.2 Bcf/d) Lake Charles LNG export terminal in Louisiana to focus on natural gas pipeline expansions, the company said today. The pivot allows the company to reallocate capital to gas pipeline projects that provide "superior risk/return profiles", Energy Transfer said. The company separately said it will increase the capacity of its planned Desert Southwest expansion of the Transwestern pipeline, allowing it to move more gas from west Texas' Permian basin to the southwestern US. The decision to scrap Lake Charles LNG follows a month of dissonance from company executives about moving forward with the facility. Energy Transfer co-chief executive Mackie McCrea told investors in early November that the company would not be able to reach a final investment decision (FID) until it sold off 80pc of equity shares in the project. But Amy Chen Davis, vice president of Lake Charles LNG, told an industry event on 10 December that the company was in talks with potential partners and would reach a final decision in early 2026. The company said earlier this year it planned an FID by the end of 2025. The midstream firm has sought for years to convert the existing Lake Charles import facility into an export terminal. Shell signed on with a 50pc stake in 2019 but pulled out the following year as part of cost-cutting measures during the Covid-19 pandemic. McCrea had signaled to investors that the company was being cautious with entering the LNG export industry. "When you're chasing billions of dollars in projects, several of which we've already announced, we've got to be careful stepping out on something like this," McCrea said on 5 November. "We're not an LNG company like we compete with. We're a pipeline company that has a regas facility converting part of it to LNG." Investor MidOcean Energy had signed a preliminary agreement to fund 30pc of Lake Charles LNG's construction costs in exchange for 30pc of offtake, but the firms never finalized the deal. Suspension of the project also may set back the efforts of Saudi Aramco, which holds a 49pc stake in MidOcean, to develop an LNG portfolio. MidOcean has a share in Peru's 4.45mn t/yr Pampa Melchorita LNG export plant and the Shell-led 14mn t/yr LNG Canada export terminal in British Columbia. Pipeline project in focus Meanwhile, Energy Transfer said it will upsize capacity on the Desert Southwest expansion. The company said it will increase the expansion's capacity by 800mn cf/d to 2.3 Bcf/d to satisfy additional demand in the southwestern US. Energy Transfer reached an FID on Desert Southwest in August. The expansion is one of several projects working to increase gas transportation capacity out of the Permian, where a steady increase in crude-driven activity — and commensurate rise in associated gas output — has outpaced the increase in gas takeaway capacity. This has created a local gas supply glut and some of the lowest gas prices in the US. By Tray Swanson Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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