LNG as a Fuel Won't Meet Strict Carbon Regulations - analyst
Switching to liquefied natural gas (LNG) to fuel ocean-going vessels may not be enough for shippers to comply with long-term emissions regulations and they will have to find additional ways of reducing emissions, JBC Energy said on Tuesday. The International Maritime Organization (IMO) on Friday reached an agreement to cut carbon dioxide (CO2) emissions by at least 50 percent by 2050 compared with 2008 levels. Shipping accounts for 2.2 percent of world CO2 emissions, according to the IMO, the United Nations agency responsible for regulating the shipping industry.
Scrubbers 'No Silver Bullet' for Shipping -Wartsila
Global shipping fleet must cut sulfur emissions by 2020. Wartsila received record orders for sulfur scrubbers last year. Shipping industry hopes that so-called sulfur scrubbers are a quick-fix solution to compliance with drastic emissions reduction demanded by 2020 are somewhat misguided, one of the world's biggest manufacturers of the equipment told Reuters. The International Maritime Organization's (IMO) cut to the amount of sulfur the world's fleet can emit will have massive implications for shippers, oil refiners and even crude oil producers.
Bunker Throughput up in Rotterdam Port
Bunkering rose again for the first time since 2011 in Rotterdam, the biggest bunker port of Europe: 10.6 million tonnes compared to 10.4 in 2013. The whole of the increase is accounted for by marine gas oil and diesel; sales rose from 500,000 to almost 700,000 tonnes. Sales of fuel oil stabilised – after falling for years – at 9.8 million tonnes. In addition, 100,000 tonnes of lubricant were sold. Sales of marine gas oil and diesel have risen due to the more stringent sulphur requirements in the Emission Control Areas (ECAs): North Sea, Baltic Sea and the United States coasts.
Winson Oil, Unipec Snap up Gasoil Cargoes
Both traders buy over 12 million barrels in September. Oil traders Winson Oil and Unipec have snapped up over 12 million barrels of gasoil in just under two weeks and are booking vessels in Singapore to either store the fuel or export it, shipping and trading sources said on Wednesday. Winson Oil, based in Hong Kong and registered in Singapore, bought the bulk of the cargoes at over 9 million barrels in oil price agency S&P Global Platts' market since the start of September, trading data showed. Unipec, the trading arm of Chinese state oil major Sinopec, purchased the rest, the data showed.
Sinanju Orders Singapore's 1st Dual-Fuel Bunker Tanker
Singapore-based Sinanju Tankers Holdings has ordered what it says will be Singapore's first dual-fuel bunker tanker, to be powered mainly by liquefied natural gas (LNG).
Marine Diesel Oil Price-Spike Expected End of 2014
Reuters – New fuel rules for ships entering low sulphur zones around northwest Europe and North America next year could trigger a price spike in European gasoil, whilst refiners will struggle to offload unwanted fuel oil. From January 2015, ships entering "Emission Control Areas" (ECAs) in the Baltic, North Sea and English Channel and around the North American coast, will have to switch from low sulphur fuel oil (LSFO) with 1 percent sulphur content to 0.1 percent gasoil, in a crackdown on marine pollution.
Aramco Offers Rare 1.5 pct Gasoil Cargo
Aramco Trading, the trading arm of oil producer Saudi Aramco, has offered a rare gasoil cargo with a 1.5 percent sulphur content for June lifting from Rabigh, traders said on Thursday. The 500,000 barrel cargo was offered through a tender closing on May 29, with bids to stay valid until June 1. It was unclear what had led to the offer of the gasoil cargo but the 400,000 barrel Rabigh refinery is scheduled to undergo a 50-day maintenance starting Oct. 4. The offer came at a time when Saudi Aramco's gasoil consumption is about to peak as summer approaches. However, its gasoil imports are expected to be hit record low levels this year due to new refineries built in the last two years. Reporting by Seng Li Peng
New Fuel Rules Could Prompt Gasoil Price Spike
New fuel rules for ships entering low sulphur zones around northwest Europe and North America next year could trigger a price spike in European gasoil, whilst refiners will struggle to offload unwanted fuel oil. From January 2015, ships entering "Emission Control Areas" (ECAs) in the Baltic, North Sea and English Channel and around the North American coast, will have to switch from low sulphur fuel oil (LSFO) with 1 percent sulphur content to 0.1 percent gasoil, in a crackdown on marine pollution. Industry experts believe shipowners will opt for gasoil rather than using exhaust filter systems known as scrubbers or alternative fuels such as liquefied natural gas (LNG), because of high investment costs, long payback times, and the lack of suitable port infrastructure.
Winson Oil buys VLCC for Med Storage
Buys VLCC to store gasoil in Mediterranean. Hong Kong-based trader Winson Oil has bought a very large crude carrier (VLCC) to store oil in the Mediterranean as it pushes to expand its business in Europe, two company sources said. The step could boost Asian gasoil margins if the firm enters the spot market to make large purchases to fill the vessel, traders said. Winson bought the VLCC in July for $28 million and has renamed it Winson No. 5, one of the sources said on Tuesday, declining to be identified as he was not authorised to speak with media. The ship is currently docked in Shenzhen, China for repairs and maintenance and will be moved in about 1 or 2 months, ready to receive oil products.
Cargill To Deliver Low Sulfur Cargo
Cargill Inc. is in the process of shipping the first low-sulfur gas oil or diesel cargo from Southeast Asia to Europe. Traders said the company had chartered a tanker called the Young Lady, which is on its maiden clean products voyage, to lift a total of 680,000 barrels of gas oil from the Malacca II refinery in June. The Malaysian refinery is the only major refinery in Southeast Asia that can produce high-quality diesel that meets tight United States CARB and European EN590 specifications, traders said. They said the rare opportunity to export gas oil to Europe emerged because of multiple factors, including cheaper freight, closed arbitrage to the United States and low prices in the benchmark Singapore market.
Asia Distillates: Gasoil Firms as Vitol, Glencore Buy
Asia's cash premium for benchmark 500ppm gasoil stayed firm on Friday as a buying spree in the Singapore cash market continued with a total of 10 deals for 500ppm gasoil, with Vitol and Glencore buying most of the cargoes. Buying interest in the Singapore cash market would likely continue for a while, traders said, although it was not immediately clear where the cargoes will head to. Traders added that they are pinning their hopes on regional demand picking up and refinery cuts to curb supply. India's Mangalore Refinery and Petrochemicals Ltd has cut runs at its 300,000-barrels-per-day refinery after the detection of a leak in one of the plant's two hydrocrackers, a company source said. "There was a marginal leak detected in Hydrocracker-II at about 3:30 p.m.
Asia Distillates-Cracks edge down on thin demand
Asia's gasoil and jet fuel margins edged lower on Monday in the absence of most sentiment-supporting factors, with the exception of refinery maintenance, traders said. The May gasoil crack, or profit from processing a barrel of crude into the fuel, slipped 48 cents to $17.72 a barrel above Dubai crude while the jet fuel crack fell 54 cents to $15.73, Reuters data showed. The physical regrade, or the price difference between jet fuel and gasoil in Asia, widened to minus $2.32, weighed down by low demand for jet fuel, the sources said. "For the moment, there are few things to support jet fuel as the use of kerosene for heating is over," a trader said. Amid thin demand for gasoil and jet fuel in Asia, refinery maintenance in the second quarter has provided some support to the market.
Cargill To Ship Low Sulfur Cargo From SE Asia
Cargill Inc is reportedly in the process of shipping the first low-sulfur gas oil or diesel cargo from Southeast Asia to Europe. Reports say the company had chartered a tanker called the Young Lady, which is on its maiden clean products voyage, to lift a total of 680,000 barrels of gas oil from the Malacca II refinery in June. The Malaysian refinery is the only major refinery in Southeast Asia that can produce high-quality diesel that meets tight United States CARB and European EN590 specifications, traders said.
New Dutch Waterway Bunker Station
The Gorinchem Ferry Service & Damen Shipyards Group collaborate to install a modular pontoon with a jetty for the bunker station. “What started as a mooring pontoon with a small gas oil tank for the ferry service has expanded into a complete bunker station”, says Jeroen van Woerkum, Sales Manager Benelux. The work involved designing, building and installing a modular pontoon, jetty, together with supplementary activities for the bunker station along Buiten de Waterpoort in Gorinchem. That location now provides storage for 15,000 litres of gas oil, divided between two tanks.
NOL Announces Clean-air Milestone In Singapore
SINGAPORE: 12 APRIL, 2011 - NOL Group today announced a maritime milestone: its vessels will become the first to use cleaner-burning, low-sulphur gas oil in Singapore. The decision is expected to curb sulphur oxides emissions from ships by almost 90%. Sulphur oxides are considered a key component of acid rain. Ash and particulate matter emissions could be reduced by 80% to 90%. "We are proud to be the first container shipping line to convert to cleaner-burning fuel here," said Eng Aik Meng, President of APL, the NOL Group's shipping line.
Total Charters in New Barge Capacity in Germany
Total Marine Fuels in Germany has chartered in additional barge capacity to meet growing demand for fuel oil from customers in Hamburg and along the Kiel Canal. Total is the main bunker supplier in the Kiel Canal, and is currently selling in excess of 350,000 metric tons of fuel per year in the region. It has had the double-hulled, 1,450-ton capacity bunker barge Elbingerode on charter since the beginning of 2007. Now, in response to continuing increases in demand, it has supplemented that with the charter of the Spandau DT61, which has capacity for about 1,100 tons of heavy fuel oil and 100 tons of gasoil. TOTAL has a Kiel Canal bunker installation from whose four jetties it can supply all grades of heavy fuel oil…
Low-sulphur Gasoil Deliveries for July Fall at Expiry -ICE
Deliveries of low-sulphur gasoil for July fell to 1,679 lots, or 167,900 tonnes, InterContinental Exchange data showed on Wednesday. The contract expired at $442.25, up from $429 a tonne at June's expiry, when deliveries reached 3,036 lots. (Reporting by Eileen Soreng)
Iran Fuel Oil Revenue Up 30 pct
Iran has earned $1.35 billion for selling more than 3 million tonnes of fuel oil in the 10 months to Jan. 21, up 30 percent in revenue from the same period of last year, oil ministry news website Shana cited an official as saying. The OPEC member also earned $963 million in gasoil revenue during the same period, a 30 percent increase from last year, and sold 107,000 tonnes of heating oil, Shana cited Mohammadreza Mazloumi, manager of the commercial division at National Iranian Oil Products Distribution Company (NIOPDC) as saying. Iran has a target to sell 4 million tonnes of fuel oil and gasoil during the current Iranian year to March 20, 2015, he added. The Iranian year started on March 21, 2014. U.S.
Oil Traders Hearing Contango Music Again; Not Loud Yet
Traders in the Brent oil market have started to use a word that was almost forgotten in the last four years - "contango" in industry jargon, which could also be described as "music to the ears of sellers". The market has not seen a prolonged contango time structure - with front prices lower than future prices - since at least 2010. Back then, oil traders racked up hundreds of millions of dollars by storing fully loaded cargoes at sea. With each week and month that the oil was in storage, it gained in price. The opposite time structure - backwardation - then prevailed, up until this week when it reversed back to contango. This led some analysts to predict a repeat of the 2008-2009 bonanza. Bank of America Merrill Lynch said it even saw a "super-contango" returning.
GAC to support Total E&P’s drilling project in S. Africa
Leading gas & oil company, Total E&P, has appointed GAC South Africa to provide shipping and logistics support for its drilling project off the coast of South Africa, which started in June this year. Total E&P is one of the first companies to drill for oil & gas in the country. GAC South Africa is drawing on the global reach and resources of the GAC Group, and its own local expertise and experience, to provide strategic freight forwarding solutions to safely move the drilling equipment needed for the project by air, sea and road.
Jan-March Oil Shipments from Georgia's Batumi Down 54 pct
Oil and oil-related shipments from Georgia's Black Sea port of Batumi fell 53.7 percent between January and March from a year earlier, an official at the KazMunaiGas-operated terminal said on Wednesday. The official said some volumes of crude oil had been rerouted to the Baku-Tbilisi-Ceyhan pipeline and to the Caspian Pipeline Consortium this year, while some fuel oil had been sent to the port of Taman in Russia and Georgia's other Black Sea port of Kulevi. About ten Batumi terminal…
EU to Develop Sulfur Strategy
The EU is limbering up to set new restrictions on sulfur in marine fuels, if MARPOL Annex VI is not implemented quickly, explains Ian Adams, secretary general of the International Bunker Industry Association (IBIA). At the same time, the European Commission aims to clarify its own directive on sulfur limits for marine diesel oil, which have been subject to different interpretations in different countries. The EC believes that for sulfur oxide, the cost of reducing emissions from ships is now considerably lower than further abatement measures in other sectors. So shipping is in the frame, says Adams. An EU study now underway will quantify ship emissions of SO2…
EMMF: Fuel Sulphur Cap Alternatives Must be Developed
ExxonMobil Marine Fuels (EMMF), a world leading supplier of marine fuels, has warned that alternatives to a pure sulphur cap on fuels need to be investigated, made workable and used, if serious pitfalls are to be avoided. Steve Walker, Global Technical Manager of EMMF, told the recent International Bunker Conference in Rotterdam that, while any move to ensure cleaner air should be welcomed, the current EC proposal for amendment of the Sulphur in Liquid Fuels Directive has yet to look in depth at the real effect it will have on the end-user. Walker explained that, for internationally trading vessels, the current proposal would involve having three grades of fuel – 4.5 per cent sulphur bunker fuel…