Fog delays Houston area ports for fifth day

  • : Crude oil, LPG, Oil products, Petrochemicals
  • 19/02/05

Houston's winter fog season has created significant delays this week for vessels carrying crude, refined products and other commodities to and from Gulf coast-area facilities.

The Houston Ship Channel, a key waterway that refiners and petrochemical plants use to bring in feedstocks and ship out products, faced closures for the fifth consecutive day today.

There were 57 vessels waiting to enter the Houston Ship Channel as of 5:30pm ET today and 16 waiting to exit, according to a Houston Pilots Association dispatcher. With fog headed inland, it was unlikely that vessels would be able to move later in the day, the dispatcher said.

The October-March period that brings cooler weather to Houston also brings periods of dense fog that can close the Houston Ship Channel and other area ports for days at a time, as warmer humid Gulf air collides with colder onshore air masses.

Dense fog advisories in Houston and Galveston normally peak in the first half of February, according to National Weather Service data.

"February is kind of the worst month for us," said JJ Plunkett, port agent for the Houston Pilots Association, whose pilots help ferry vessels in and out of area ports.

But colder and drier weather is in the Houston-area forecast for 7 February, which could improve vessel movements dramatically, Plunkett said.

Houston Pilots suspended all vessel boarding operations starting at 2:02pm ET on 3 February, while Galveston Pilots suspended operations as of 12pm ET.

Vessels have been able to move in fits and starts over the last few days, alternating between inbound and outbound trips, Plunkett said.

The channel was closed for nine hours 1 February, according to shipping agency Moran Shipping, for just three and a half hours on 2 February and 90 minutes on 3 February. On 4 February the Ship Channel opened for several hours in the afternoon just for inbound traffic but has been closed since 6:25pm ET that day.

Though the record books are still open for 2019 it is unlikely that fog closures will top 2015, when they peaked at 680 total hours, Plunkett said.

Fog-related channel closure hours for Houston, Texas City and Galveston combined fell to 379 hours in 2016 and to 347 hours in 2017 before rising to 537 hours in 2018, according to a US Coast Guard report issued on 1 February.

A closure lasting over 72 hours straight can trigger concerns with refinery and other plant operators, Plunkett said. "At that point they start to get into a bind with their feedstocks or their product containment," he said.

Over 45pc of total US refining capacity is located along the US Gulf coast, according to the Energy Information Administration.

Farther east along the Gulf coast, the Sabine Pass waterway has been closed to large ships, including all LNG ships, since 2 February, and will reopen when the heavy fog lifts, the Sabine Pilots Association said. The fog likely impacted loadings at the Sabine Pass LNG export terminal, though facility owner Cheniere Energy declined to comment.

Five LNG ships are at or near Sabine Pass waiting to lift cargoes. Gas intake likely dropped when the five LNG storage tanks at Sabine Pass, which have capacity equivalent to about 17 Bcf of gas, became full.


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24/04/22

Brazil 1Q tallow exports triple on long-term contracts

Brazil 1Q tallow exports triple on long-term contracts

Sao Paulo, 22 April (Argus) — Brazilian beef tallow exports totaled 73,930 metric tonnes (t) in the first quarter, a three-fold increase from the same three-month period in 2023 on rising demand. Almost 93pc of outflows between January and March were shipped to the US, according to data from Brazil's trade ministry. Long-term contracts explain the rising flow of exports, even though spot market arbitrage was closed throughout the first quarter (see chart) . The price of tallow in the Paranagua and Santos ports was $960/t fob on 19 April, keeping the arbitrage closed to US Gulf coast buyers, where the reference product was at $901/t on a delivered inland basis. Brazilian tallow is also negotiated at a premium against soybean oil, which closed at $882/t fob Paranagua on 19 April. This scenario has been observed since the 1 December 2023 start of Argus ' tallow export price assessment. Historically, vegetable oil in Brazil was traded at a discount to tallow, but strong demand has boosted the price of animal fat. Some biodiesel plants have been purchasing used cooking oil (UCO) or pork fat as an alternative. In 2023, there were doubts about whether the outflow of tallow from Brazil would be constant. Market participants now believe that the 2024 start of operations at new renewable diesel refineries in the US should sustain exports. Local suppliers that have already signed supply guarantee contracts — some up to three years — with American buyers are also considering export opportunities with Asia, including a new renewable diesel plant in Singapore that could receive Brazilian cargoes. Expansion projects are propelling US demand, including work that would bring capacity at Marathon Petroleum's Martinez Renewables plants in California to 2.35mn m³/y (40,750 b/d)and the Phillips 66 Rodeo unit in northern Californiato 3mn m³/y. These and other new projects will increase annual US demand for tallow by 5mn t. Maintenance on the horizon Maintenance at US refineries has Brazilian sellers bracing for a short-term drop in prices. Between May and June the Diamond Green Diesel (DGD) unit in Port Arthur, Texas, will shut down for maintenance, a stoppage that could impact demand for Brazilian inputs. Market participants have already observed a slight increase in domestic tallow supply, a change they attribute to maintenance at DGD. The advance of the soybean crop in Argentina is also expected to increase the supply of feedstocks to North American plants, as some refineries are returning to soybean oil after a hiatus of several years. The soybean oil quote on the Chicago Board of Trade (CBOT) is an important reference for the price of tallow. By Alexandre Melo Renewable feedstocks in Brazil on fob basis R/t Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Colombia's electricity woes add to unrest against Petro


24/04/22
24/04/22

Colombia's electricity woes add to unrest against Petro

Bogota, 22 April (Argus) — Colombians took the streets of major cities and towns across the nation on Sunday to protest mainly against health, pension and labor changes, but potential power outages are also creating discontent. Authorities estimated that about 250,000 Colombians marched in widespread protests, sparked by changes in healthcare. Congress in April had rejected President Gustavo Petro's proposals in the sector, and the government the next day seized the two largest private-sector health insurers. Protesting healthcare workers say the government did this to implement changes through a back channel. "Regulatory noise and risk are likely to remain high amid announcements, proposals, and measures [that do not require congressional approval], aimed at changing the game's rules in strategic sectors," brokerage Credicorp Capital said. Colombians also protested being on the verge of electricity rationing like that in neighboring Ecuador as hydroelectric reservoirs remain at record-low levels. Several unions and other associations have long warned the Petro administration to take measures to offset the effects of the El Nino weather phenomenon. Electricity distributors last year called for allowing bills for energy purchased on the spot market to be deferred and for loosening price index rules, among other proposals. The national business council sent at least three letters to the president on the issue. At least nine separate letters calling for preparation to prevent blackouts were sent to the president and ministers. Several actions were only recently implemented . "There are no risk of electricity rationing in Colombia," former energy minister Irene Velez said in 2023. "We do not understand why some people are interested in generating panic." Government weather forecasts also overestimated rainfall expected for March, leading hydroelectric plants to use more water in the reservoirs than they otherwise would have, said director of the thermoelectric generation association (Andeg) Alejandro Castaneda. Reservoir levels stood at 29.5pc today, rising thanks to rains since 19 April, up from 28.75pc on 18 April. Electricity rationing is set to begin when reservoirs drop below 27pc, according to grid operator XM. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Oman’s PDO to hit 700,000 b/d crude before 2030 target


24/04/22
24/04/22

Oman’s PDO to hit 700,000 b/d crude before 2030 target

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German products demand up on supply concerns


24/04/22
24/04/22

German products demand up on supply concerns

Hamburg, 22 April (Argus) — German demand for heating oil and fuels rose sharply in the past week, with consumer concerns that conflict in the Middle East could restrict product availability were coupled with falling domestic product prices. Spot trade of heating oil, diesel and E5 gasoline submitted to Argus reached their highest weekly averages since the start of the year. The last time this amount of heating oil was traded was in December last year, and for gasoline and diesel it was at the beginning of October. Gasoline demand surged particularly in the Emsland and South regions, and middle distillates were primarily traded in Rhine-Main and Southwest. The missile attack by Iran on Israel on 13 April and Israel's drone attack on Iran on 19 April have heightened concerns of further escalation. An open conflict between Iran and Israel could affect supply of crude and gasoil from the Middle East by threatening major shipping routes of the Suez Canal, the strait of Hormuz and the eastern Mediterranean. These concerns led some German consumers to fill their tanks. Concurrently, product prices have fallen across Germany, further stimulating demand. Refineries in Karlsruhe and Neustadt-Vohburg have drawn buyers with fuel oil and gasoline prices below the German average. Heating oil at Miro's 310,000 b/d Karlsruhe traded at more than €2/100l below the national average, while gasoline at Bayernoil's 216,000 b/d Neustadt-Vohburg traded at a discount of almost €6/100l to the same average. By Johannes Guhlke Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

ExxonMobil turns up heat on climate activists


24/04/22
24/04/22

ExxonMobil turns up heat on climate activists

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