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Maersk to invest $500mn in Southeast Asia supply chain

  • : Biofuels, E-fuels, Emissions, Oil products
  • 23/12/04

Danish shipping giant Maersk said today it will invest over $500mn in its supply chain infrastructure in southeast Asia, including in 'green' fuels.

The company aims to optimise its warehousing and distribution by increasing its haulage truck capacity, adding 480,000m² of warehouse space by 2026. The investment will also cover the construction of green fuel infrastructure, and the addition of electric vehicles in transport by mid-2024.

The investment will mainly target Maerk's logistics and services arm, but the company will also expand its maritime network and establish a green fuels infrastructure for its future fleet, it said.


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25/02/03

Pemex can partially bypass US tariffs with Asia sales

Pemex can partially bypass US tariffs with Asia sales

Mexico City, 2 February (Argus) — Mexico's state-owned oil company Pemex can sidestep the US' 25pc tariff on Mexican imports by redirecting crude to other international buyers, particularly in Asia, market sources say. Pemex primarily sells crude under evergreen or long-term contracts, allowing it to set prices and volumes buyers must accept, one former executive at Pemex's trading arm PMI told Argus . These agreements vary in duration, with some being indefinite and others requiring a minimum purchase period. The 25pc tariff imposed by US president Donald Trump's administration could simply be added to Pemex's benchmark price and leave US buyers to decide whether to accept it. If they decline, Pemex could offer its crude at a discount to other buyers. "Pemex would rather sell at a discount elsewhere than absorb most or all of the tariff to keep exporting to the US," the former PMI executive said. Pemex has more flexibility than Canadian heavy crude producers, whose output is primarily transported through pipeline to US refiners in the midcontinent. Pemex can more easily divert shipments to Europe or Asia rather than Texas, where most of its crude is consumed. Pemex exported about 806,200 b/d of crude in 2024, a 22pc drop from 2023, according to company data. The US took around 505,000 b/d, or 60pc, of Mexico's crude exports in 2024, vessel tracking data show. Pemex is a key supplier of heavy crude and high-sulphur fuel oil (HSFO) to US Gulf coast refiners, which are also optimized to convert HSFO — a low-value byproduct — into higher-value fuels like gasoline and diesel. The state-owned company exported around 130,000 b/d of HSFO to the US in 2024, down from 163,000 b/d in 2023, according to Vortexa. Pemex typically sells fuel oil at a discount relative to its high-sulphur Mayan crude to Texas refiners. Domestically, Pemex supplies HSFO to state-owned utility CFE, which uses it for power generation. Pemex owns the 312,500 b/d Deer Park refinery in Texas, which processes Maya crude, but does not disclose how much crude it supplies to the facility. Pemex exported around 67,000 b/d of crude to the Deer Park refinery in 2024, according to Vortexa data. In the medium term, Pemex could lower shipping costs to Asia by upgrading infrastructure at its Salina Cruz port on Mexico's Pacific coast, the former PMI executive said. "It wouldn't require a large investment, just improved pipeline capacity to move crude from the Gulf to the Pacific," he said. By Édgar Sígler Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tariffs to hit North American energy trade


25/02/02
25/02/02

Trump tariffs to hit North American energy trade

Washington, 2 February (Argus) — US president Donald Trump is set to disrupt the integrated North American energy market with tariffs of 10pc on Canadian energy imports and 25pc on Mexico-sourced energy commodities, effective on 4 February. Trump on Saturday issued executive orders that would impose taxes of 25pc on all imports from Mexico and 25pc on all non-energy imports from Canada, effective on 4 February. Most energy commodities imported from Canada would be subject to a lower, 10pc tariff. Imported goods in transit before 12:01am ET on 1 February would not be subject to those levies. The Canada energy exemption applies to "crude oil, natural gas, lease condensates, natural gas liquids, refined petroleum products, uranium, coal, biofuels, geothermal heat, the kinetic movement of flowing water and critical minerals". Trump and the White House did not explain why he made a slight concession on the Canadian energy commodities. The US-Canada energy trade is particularly vulnerable to tariffs, for both sides. More than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Conversely, many refineries in the US midcontinent have no practical alternative to the Canadian crude. Industry group the American Petroleum Institute said on Saturday that it would "continue to work with the Trump administration on full exclusions that protect energy affordability for consumers, expand the nation's energy advantage and support American jobs". Trump imposed tariffs on Canada and Mexico, as well as on China, by declaring a "national emergency" related to alleged inability of those countries to stem the flow of migrants and illegal drug fentanyl to the US. The White House in previous decades has used emergency declarations to impose sanctions against foreign countries, and US courts have stayed away from challenging the executive branch on such declarations and their economic applications. The choice of an emergency declaration also is meant to prevent the US Congress, which retains primary authority over US international trade, from intervening legislatively to remove tariffs. Congressional Republicans, at any rate, quickly hailed Trump's decision. By contrast, Democratic lawmakers and state officials denounced the tariffs and cited inflationary effects of the import taxes. Tit for tat Canada's prime minister Justin Trudeau said on Saturday that his country's energy exports to the US would factor in with other retaliatory measures, possibly in the form of export taxes. "There are a number of different industries and regions of the country that can have greater leverage over the US," Trudeau said. "One thinks of the oil industry for example." Alberta premier Danielle Smith said on Saturday that she would oppose efforts to ban or to tax exports to the US. Trudeau said he would hold consultations with regional and business leaders before taking any counter-measures. But he added, "no one part of the country should be carrying a heavier burden than another." Trudeau said that Canada would apply a 25pc import tax on C$30bn ($21bn) worth of imports from the US on 4 February, followed by a 25pc tariff on an additional C$125bn worth of imports on 25 February. Denouncing Trump's punitive tariffs and his frequent derogatory comments about the US' northern neighbor, Trudeau, in comments directed at a US audience, said: "From the beaches of Normandy to the mountains of the Korean Peninsula, from the fields of Flanders to the streets of Kandahar, we have fought and died alongside you." Mexico's president Claudia Sheinbaum likewise criticized Trump's action, characterizing as "slander" the text of his executive orders, which alleged that Mexico's government was an instrument of the country's drug cartels. But Mexico did not unveil specific countermeasures against Trump's tariffs. "I instruct the secretary of economy to implement Plan B, which we have been working on, including tariff and non-tariff measures in defense of Mexico's interests," Sheinbaum said on Saturday. Trump's executive orders call for raising US tariffs if Canada and Mexico retaliate. Effects to be felt across the economy The North American energy industry is an obvious casualty of Trump's trade war. But its effects will be felt in automobile manufacturing, agriculture, steel, aluminum, potash and every other sector of the economy in all three countries. Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. Tariffs on Canadian and Mexican imports also will disrupt years of free-flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. North American steel trading costs could rise by as much at $5.3bn across the three nations, since Mexico and Canada are expected to issue reciprocal tariffs against the US, as it did when Trump issued tariffs in his first term. The tariffs could also disrupt US corn and soybean sales, since China and Mexico account for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture data. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump tariffs on Canada, Mexico to include oil: Update


25/01/31
25/01/31

Trump tariffs on Canada, Mexico to include oil: Update

Updates with comments from Trump, plan for 10pc crude tariff. Washington, 31 January (Argus) — President Donald Trump said late Friday he will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico on 1 February, with crude imports likely to be taxed at a lower 10pc rate. Trump separately plans to impose tariffs on imports from China on 1 February. Asked if his Canada tariffs would include crude imports, Trump said, "I'm probably going to reduce the tariff a little bit on that," he told reporters at the White House. "We think we're going to bring it down to 10pc." Trump, who previously tied tariffs on imports from Canada, Mexico and China to their alleged inability to stem the flow of drugs and migrants into the US, today insisted that the tariffs he plans to impose on Saturday in fact have a strictly economic rationale and are non-negotiable. The tariffs expected on Saturday "are not a negotiating tool", Trump said. "No, it's pure economic … we have big deficits with all three of them." Trump, in a wide ranging gaggle with reporters, separately mentioned that he would impose tariffs on imported chips and oil and natural gas. "That'll happen fairly soon, I think around 18 February," he said. It was not clear from his remarks if he meant that all oil and gas imports into the US would be taxed, or if he referred to supply only from Canada and Mexico. Trump said he would also raise tariffs on imported steel, aluminium and eventually copper as well. Trump brushed away criticism of potential negative impacts from his tariffs. "You will see the power of the tariff," Trump said. "The tariff is good, and nobody can compete with us, because we have by far the biggest piggy bank." The looming face-off on tariffs has unnerved US oil producers and refiners, which are warning of severe impacts to the integrated North American energy markets if taxes are imposed on flows from Canada and Mexico. Industry trade group the American Petroleum Institute has lobbied the administration to exclude crude from the planned tariffs. Canadian prime minister Justin Trudeau reiterated today that Ottawa would retaliate against US tariffs. Mexican president Claudia Sheinbaum also said her country has prepared responses to US tariffs . Nearly all of Mexico's roughly 500,000 b/d of crude shipments to the US in January-November 2024 were waterborne cargoes sent to US Gulf coast refiners. Those shipments in the future could be diverted to Asia or Europe. Canadian producers have much less flexibility, as more than 4mn b/d of Canada's exports are wholly dependent on pipeline routes to and through the US. Canadian crude that flows through the US for export from Gulf coast ports would be exempt from tariffs under current trade rules, providing another potential outlet for Alberta producers — unless Trump's potential executive action on Canada tariffs eliminates that loophole. Tariffs on imports from Canada and Mexico would most likely have the greatest impact on US Atlantic coast motor fuel markets. New York Harbor spot market gasoline prices are around $2/USG, meaning a 25pc tariff on Canadian imports could up that price by as much as 50¢/USG. This could prompt buyers in New England or other US east coast markets to look to other supply options. Canadian refiners could also start sending their product to west Africa or Latin America. US refiner Valero said that the tariffs could cause a 10pc cut in refinery runs depending on how the tariffs are implemented and how long they last. Gas, petchems, steel and ags threatened The tariffs may affect regional natural gas price spreads and increase costs for downstream consumers, but there is limited scope for a reduction in gas flows between the two countries — at least in the short term. The US is a net gas importer from Canada, with gross imports of 8.36 Bcf/d (86.35bn m³/yr) in January-October, according to the US Energy Information Administration (EIA). The US' Canadian imports far exceeded the 2.63 Bcf/d it delivered across its northern border over the same period, EIA data show. Tariffs on Canadian and Mexican imports also will disrupt years of free flowing polyethylene (PE) and polypropylene (PP) trade between the three countries, market sources said. North American steel trading costs could rise by as much at $5.3bn across the three nations, since Mexico and Canada are expected to issue reciprocal tariffs against the US, as it did when Trump issued tariffs in his first term. The tariffs could also disrupt US corn and soybean sales , since China and Mexico account for 48pc of US corn exports and 61pc of US soybean exports since 2019, according to US Department of Agriculture (USDA) data. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Canadian crude will be priced for tariffs: Phillips 66


25/01/31
25/01/31

Canadian crude will be priced for tariffs: Phillips 66

Houston, 31 January (Argus) — Western Canadian crude will continue to flow to US refiners, but at a greater discount if President Donald Trump enacts tariffs on imports from that country, Phillips 66 said today. In the event of tariffs, the Western Canadian Select (WCS) discount to US light sweet crude WTI will eventually widen to incentivize crude to move into the US, Phillips 66 executive vice president of commercial Brian Mandell said during an earnings call. WCS' discount to WTI was around $15.25/bl on Friday afternoon. In the Rocky Mountain and midcontinent regions, where refiners have fewer alternative supplies, the "crack margins will also have to do some work," he said. Mandell said that the first effect of Canadian tariffs would be the filling of the 590,000 b/d Trans Mountain Expansion (TMX) pipeline, which sends crude to Canada's west coast, followed by a replenishing of storage in western Canada. TMX has run well below its full capacity since startup in May 2024 but it is not clear how much spare capacity is left. About 374,300 b/d of crude from the combined Trans Mountain was exported via tanker in January, according to data from Vortexa. About 80pc of Canada's 5mn b/d of crude production flows downstream to US refiners, with US imports of Canadian crude reaching a record high of 4.42mn b/d in the week ending 3 January, according to the Energy Information Administration (EIA). The single largest conduit is Enbridge's 3mn b/d Mainline system, which reaches into Chicago to serve midcontinent refiners and hands off crude to other lines that go to the US Gulf coast for refining or export. The White House said today that president Donald Trump will proceed with plans to impose 25pc tariffs on imports from Canada and Mexico and 10pc on imports from China on 1 February. The White House pushed back on reports that the tariffs would be delayed and declined to say whether Trump made a decision on whether to exclude Canadian and Mexican crude from the tariffs. Mexico sends far less crude to the US. Mexican crude imports to the US averaged 450,000 b/d in November 2024, according to the most recent EIA monthly data. Mexican imports of crude into the US would likely be displaced if the tariffs are enacted, Mandell said. Mexican crude will move to Europe and maybe Asia and other crudes will come in, he said. Heavy crude prices would rise a bit on the inefficiency of logistics but those differentials should dissipate as OPEC puts more oil onto the market as the year goes on, Mandell said. US refiner Valero said yesterday that the tariffs could cause a 10pc cut in refinery runs depending on how long the tariffs go and how fast they are implemented. By Eunice Bridges Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Mexican GDP growth in 4Q lowest since 2021


25/01/31
25/01/31

Mexican GDP growth in 4Q lowest since 2021

Mexico City, 31 January (Argus) — Mexico's economy slowed in the fourth quarter to its lowest pace since early 2021, as the agriculture and industrial sectors dragged on growth. Mexico's gross domestic product (GDP) growth slowed to annualized rate of 0.6pc, statistics agency Inegi reported. This is down from an annual 1.6pc in the third quarter and 2.1pc growth in the second quarter, which was the strongest quarter last year. The result marks the slowest growth in 15 quarters for Mexico, coming in below estimates. This was largely due to annualized 4.6pc decline in the agriculture sector, swinging from 4.1pc growth in the third quarter as drought conditions return. Inegi reported the industrial component of GDP also contracted, down 1.7pc in the fourth quarter, compared with a 0.5pc expansion in the previous quarter, on slowing construction and persistent declines in the oil component. Services, meanwhile, expanded an annualized 2.1pc in the fourth quarter, compared with a 2.2pc expansion in the previous quarter. Inegi reported full-year GDP growth at 1.5pc in 2024, slowing from 3.3pc in 2023 and the lowest level since the pandemic-stricken downturn in 2020. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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