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LNG as marine fuel demand could rise by '35: Correction
LNG as marine fuel demand could rise by '35: Correction
Corrects statement on US LNG exports in paragraph 6. New York, 23 June (Argus) — Demand for LNG as a marine fuel will increase within the next 10 years if supply is boosted by exports from the US and Russia, according to Danish bunker supplier Monjasa. An increase in US and Russian LNG exports would make it a more viable option in the marine fuel market compared with conventional bunker fuel, Monjasa chief executive, Anders Østergaard said today at the Marine Money convention in New York. "If more Russian and more American LNG would come into the global markets, then I truly believe — and we've seen that before the war between Russia and Ukraine — that the price of LNG would beat the price of both fuel oil and diesel oil," Østergaard said. Conventional marine fuels, such as high-sulphur fuel oil and very low-sulphur fuel oil, will remain the dominant fuels in the bunker market in the next 10 years like it is today, according to Østergaard. Demand for other potential alternative marine fuels, like ammonia and methanol, are not likely to pick up by 2035 because the cost to use those fuels is not competitive unless regulations to use those fuels are changed, he said. The US is currently the largest global LNG exporter. Former US president Joe Biden's administration paused issuing export licenses for new LNG terminals last year. President Donald Trump lifted the ban earlier this year and has been approving export licenses for proposed LNG terminals. The EU has relied less on Russian gas and oil imports since Russia invaded Ukraine in 2022 and it is proposing to phase out all gas and oil imports by January 2028. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Qatar closes airspace as 'precaution'
Qatar closes airspace as 'precaution'
London, 23 June (Argus) — Qatar today closed its airspace in what it called a "precautionary measure". The move came after the US embassy in Qatar ordered its citizens to "shelter in place". The UK followed this, with both embassies saying the order was "out of an abundance of caution". The Qatari government said the embassies' warnings did not "necessarily reflect the existence of specific threats". The country's foreign office said the airspace closure was undertaken "based on developments in the region". Tehran said today that US airstrikes have expanded the range of legitimate military targets for its armed forces, and Qatar hosts the US' largest military base in the Middle East. Closure of Qatari airspace will make traversing the Mideast Gulf region by air more complicated. Air traffic tracking data show a complete absence of aircraft over Lebanon, Syria, Iraq and Iran, with all flights from east to west diverting either north or south of this region. By Ben Winkley Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Subsidised bio-LNG deemed eligible under FuelEU
Subsidised bio-LNG deemed eligible under FuelEU
London, 23 June (Argus) — Subsidised bio-LNG and other types of alternative fuels are deemed eligible under FuelEU Maritime Regulation, according to sources with knowledge of the matter. FuelEU allows emissions reductions supported under other legal frameworks, such as the support schemes under RED, in order to encourage greater investment in less carbon-intensive marine fuels. Under Directive (EU) 2018/2001 (RED), the greenhouse gas (GHG) reductions are counted towards member states' targets, while under FuelEU the targets are set to shipping companies. Excluding subsidised marine fuels may otherwise lead to competitive disadvantages for smaller sectors, such as European biomethane. The European Commission has not yet issued an official statement. Demand for bio-LNG has risen sharply this year with the start of FuelEU Maritime in January, requiring ship-owners to reduce their GHG emissions by 2pc in 2025, with targets steadily rising to 80pc in 2050. Subsidised, bunker dob bio-LNG in Northwest Europe was last assessed at €78.09/MWh ($89.55/MWh) on Thursday, while its unsubsidised counterpart was assessed at €93.59/MWh. By Madeleine Jenkins Bio-LNG vs Gas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US refiners boost jet production despite clouds
US refiners boost jet production despite clouds
Houston, 23 June (Argus) — Some US refiners are boosting jet fuel production despite tariff-related economic uncertainties that could affect travel demand. Marathon Petroleum, one of the largest US independent refiners, is spending millions to increase jet fuel capacity at its 253,000 b/d Robinson refinery in Illinois. The project will increase the refinery's flexibility to optimise jet output to meet growing demand, chief executive Maryann Mannen says. The company plans to spend $150mn on the project this year and another $50mn in 2026. Marathon would not disclose the planned jet capacity at the refinery but says the project will be ready by the end of 2026. Another independent refiner, CVR Energy, is increasing jet capacity at its Coffeyville, Kansas, refinery. The company is installing piping and revamping storage tanks at the 132,000 b/d facility to enable 9,000 b/d of jet output by the end of the third quarter, chief executive David Lamp says. Jet production is not subject to a Renewable Volume Obligation, which means that CVR would not need to blend biofuels into it or purchase renewable identification number (RIN) credits as it would if producing diesel. Shifting production from diesel to jet will reduce CVR's annual RINs requirements, Lamp says. At the same time, the opportunity to sell products to markets further west, where two major refineries are set to close, will continue to grow over the next few years, with jet being an important part of the mix, he says. Phillips 66 plans to shut its 139,000 b/d Los Angeles refinery by October, while independent Valero aims to close or repurpose its 145,000 b/d Benicia, California, refinery by April 2026. CVR has the capability to move products from the midcontinent to California but would need to weigh the potential benefits against the political, regulatory and cost environment in the state and, as a result, may favour other locations, it tells Argus . CVR at present produces jet at its 74,500 b/d Wynnewood, Oklahoma, refinery, shipping it primarily by truck or pipeline to midcontinent locations, but it can also move jet by rail. Another independent, Delek, has upgraded its 83,000 b/d El Dorado, Arkansas, refinery to produce jet as part of a plan to boost profitability. The company did not disclose how much jet the refinery can produce. The investments come after US refineries produced a record share of jet in 2024, reflecting higher demand relative to other transport fuels, according to the EIA. The EIA in its most recent Short-Term Energy Outlook forecasts that US jet demand will average 1.71mn b/d in 2025 and 1.73mn b/d in 2026, up from 1.7mn b/d last year. But US airlines are signalling an uncertain outlook for jet demand, with most withdrawing full-year 2025 financial guidance when reporting first-quarter earnings, as President Donald Trump's evolving tariff plans have made it difficult to predict how travel activity will develop. SAF conduct Refiners nevertheless appear bullish on aviation fuels, including renewables. Specialty refiner Calumet will expand sustainable aviation fuel (SAF) output at its Montana plant sooner than expected — reaching 120mn-150mn USG/yr by the second quarter of 2026, with plans to boost capacity to 300mn USG/yr by 2028. SAF margins have remained "stable and attractive", as the introduction of national mandates around the world compliment an already growing base of voluntary demand, chief executive Todd Borgmann says. US independent Par Pacific's planned $90mn renewable fuels facility at its 94,000 b/d Kapolei, Hawaii, refinery, is near completion. The project will produce SAF and other products, and is expected to start up in the second half of 2025. By Eunice Bridges US jet fuel demand Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
