Gulf Coast News

17 Jan 2020

US Refiners Grab HSFO on Back of IMO 2020

© Fotos von Schiffen / Adobe Stock

U.S. refiners are scooping up cheap high-sulfur fuel oil for processing from Russia and the Baltic states as they take advantage of new shipping rules that have cut demand for the dirtier marine fuel, according to oil traders and shipping data.U.S. refiners Valero Corp, Chevron Corp and Phillips 66 have been buying HSFO, traders said, taking advantage of their complex operations to turn HSFO blended with crude oils into products like diesel, gasoil and gasoline.This month, 2.2 million tonnes of fuel oil…

15 Jan 2020

Corpus Christi Crude Exports Boom

© Brent Coulter / Adobe Stock

U.S. crude exports from Corpus Christi, Texas, have surged to a record in recent weeks, often surpassing hubs such as Houston and Beaumont, Texas, thanks to faster-than-expected infrastructure additions.The infrastructure boom at Corpus Christi helped push crude exports there to a weekly record of 1.59 million barrels per day (bpd) in late December, more than doubling levels that held for the first eight months of last year, and above Houston's 2019 peak of 1.36 million bpd, according to vessel-tracking firm ClipperData.The heavy flows suggest that fears of a bottleneck that would impede U.S.

06 Jan 2020

Tankers Flock to US as Freight Rates Surge

© DJ / MarineTraffic.com

A flotilla of oil tankers is sailing empty from Europe and the Mediterranean toward the U.S. Gulf Coast to take advantage of surging shipping rates, according to shipping sources and Refinitiv Eikon data on Monday.Eight tankers, an unusually high number, are in the Atlantic and steaming to the United States, with capacity of up to 5.6 million barrels of oil combined, the people said. Freight rates for Aframax vessels out of the U.S. Gulf coast hit record levels last month, drawing…

03 Jan 2020

For Fireboats, The Heat is On

(Credit: Metal Shark)

These days, cost-conscious municipalities across the fruited plain, from sea to shining sea, are ordering new waterborne assets to cover their many local responsibilities. When they do, they want ‘more bang for their buck,’ combining multiple missions – and the equipment that makes it all possible – onto one hull. That’s a tall order on the typically compact patrol boat style hulls that tend to be big on performance, but short on space for equipment that can demand a significant physical footprint.

02 Jan 2020

GEV Pact with CIMC Raffles for 8 Vessels

Yantai Construction Base. Image: Global Energy Ventures Ltd

Australia-listed Global Energy Ventures (GEV) has extended a letter of intent (LOI) with Yantai CIMC Raffles Offshore to build the CNG Optimum 200 ships.The extension is for six months through to 30 June 2020. The LOI is based on a firm order for four 200 MM scf Compressed Natural Gas (CNG) ships with the option for GEV to order up to an additional four ships.The parties have executed the LOI, with the intention of entering a Shipbuilding Engineering, Procurement & Construction (EPC) contract…

31 Dec 2019

Castleton Closes Shell Shale Deal

Image: Castleton Resources

Houston-based Castleton Resources said that its subsidiary Castleton Commodities International LLC (CCI) has closed on the acquisition of the East Texas and North Louisiana Haynesville Shale assets of BG US Production Company LLC, a subsidiary of Royal Dutch Shell plc. Pro forma for the acquisition, Castleton Resources will hold approximately 222,400 net acres in the region and produce approximately 334 MMcfe/d (net). Castleton Resources is owned by CCI and Tokyo Gas America Ltd., a wholly owned subsidiary of Tokyo Gas Co., Ltd. Concurrent with the transaction, Tokyo Gas America Ltd.

26 Dec 2019

Aframax Tanker Booked at Record US-Europe Rate

© Hannes van Rijn / MarineTraffic.com

PetroChina has provisionally chartered an Aframax tanker at a record U.S.-Europe freight rate, two shipbrokers said on Tuesday, reflecting strong demand for low-sulfur U.S. crude.The Chinese oil firm tentatively chartered the Aframax-class Seamagic for 300 worldscale points, loading in the U.S. Gulf Coast. The vessel currently is moored near Pascagoula, Mississippi, according to Refinitiv Eikon data.The rate translates to about $100,000 per day, one of the shipbrokers said, surpassing the previous peak of 245 worldscale points, or about $60,700 per day, last week.

15 Nov 2019

Mammoet Signs Offshore Wind with NY Port

Image: Mammoet USA

Dutch heavy-lift firm Mammoet  has reached an agreement that will enable it to provide offshore wind services at the Port of Coeymans Marine Terminal, in New York.The collaboration allows Mammoet access to the port’s 400-acre marine terminal facility, which is owned and operated by Carver Companies , in Coeymans, New York, conveniently located along the Hudson River 100 miles North of NY City and 10 miles South of Albany, NY.Over the years, Mammoet has developed a relationship…

08 Nov 2019

U.S. Scoops up Overseas Fuel Oil in pre-IMO Push

file Image / AdobeStock / © mikes jc

The United States is taking advantage of record-low prices of one of the world's dirtiest fuels by buying record volumes, which it intends to upgrade into cleaner products before new shipping rules take effect, trading and analyst sources say.U.S. trade sources said it recently had become economical to ship fuel oil from countries such as Russia, boosting imports of the product into the United States.This comes even as prices for high-sulphur fuel oil (HSFO) on the U.S. Gulf Coast…

07 Nov 2019

Energy Transfer: VLCC Offshore Port to be Ready Early 2023

AdobeStock / © Jose Gill

Energy Transfer LP said on Thursday discussions with potential shippers to build an offshore crude export facility in Texas capable of handling supertankers were progressing on schedule, with the project expected to be in service by late 2022 or early 2023.The company has also made advances on the regulatory and permitting process for the project, Marshall McCrea, Energy Transfer's chief commercial officer, said on the company's quarterly earnings call.Plans call for the facility to be connected to Energy Transfer's Nederland…

01 Nov 2019

INSIGHTS: Loy Stewart, Jr.

Loy Stewart, Jr., President, Detyens Shipyards

Loy Stewart, Jr. is President, Detyens Shipyards. He is a 1991 graduate of the US Merchant Marine Academy in Kings Point where he earned a degree in Marine Engineering. After several months sailing on the Sealift Atlantic, Loy began working at Detyens as a Ship Superintendent and coordinated work on numerous commercial and navy contracts. In 1996, when the Detyens Shipyards were divided into separate profit centers, Loy Jr. was promoted to Profit Center Manager of the Wando facility. In 2002 he was made PCM of the Main Yard in North Charleston and promoted to Executive Vice President in 2003.

30 Oct 2019

OP/ED: Offshore Wind

Nicolette Nye, Vice President of Communications and Member Development of the National Ocean Industries Association (NOIA) in Washington, DC.

Set to Soar, Taking Offshore Support Industry With it.Offshore energy development is opening a new front in the United States -- the Atlantic seaboard, with strong winds, a shallow continental shelf and a proximity to dense population centers is driving strong interest in offshore wind development. The offshore oil and gas supply chain stands to benefit in a big way from billions in coming investment. In fact, it is already playing a role. Companies in the Gulf of Mexico, which traditionally support the offshore oil and gas sector…

29 Oct 2019

The ABC’s of DP 101

Image Credit: Beier

Dynamic Positioning has been around for a while, it is evolving and it is here to stay. Here to sort it all out are two of industry’s more familiar stakeholders who also explain what might come next.When it comes to critical offshore operations and vessel handling, this is not your grandfather’s marine industry, and it hasn’t been for some time. That’s because the bridge layout and equipment commonly found on any recently delivered offshore service vessel would be unfamiliar to the typical deck officer of just 20 years ago.

28 Oct 2019

Mitsui, Sempra Energy Sign LNG Deal

Pic: Sempra Energy

North American energy infrastructure company Sempra Energy and Japanese trader Mitsui & Co. have entered into a memorandum of understanding (MOU) under which the latter would take part in the Cameron LNG Phase 2 project in Louisiana.The MoU also encompasses a future expansion of the Energía Costa Azul (ECA) LNG project in Baja California, Mexico."This agreement signals continued momentum in the growing U.S. liquefied natural gas (LNG) export market, while reinforcing the unique competitive advantage that Sempra offers customers seeking LNG export capabilities from the Gulf Coast…

18 Oct 2019

Canadian E.Coast LNG Export Plans Progress Shell Deal

Pieridae Energy moved closer to building a liquefied natural gas (LNG) export terminal on Canada's East Coast after taking ownership of fields from Royal Dutch Shell which will feed gas into the plant, the company said.The Goldboro LNG terminal would be the first on Canada's East Coast and compete with the growing number of plants on the U.S. Gulf Coast, hoping its shorter distance to Europe and further west will help sell its LNG by cutting shipping costs.Pieridae said in a statement late on Thursday it had closed a C$190 million ($145 million) acquisition of Shell's gas assets in Alberta's Foothills region, giving it most of the gas…

18 Oct 2019

Tankers Defer Retrofits to Cash in on Record Freight Rates

© Tony Vingerhoets / Adobe Stock

Tankers that had been scheduled to install emissions-cutting equipment ahead of stricter pollution standards starting in 2020 have deferred their visits to the dry docks to capitalize on an unexpected surge in freight rates, three trade sources said.U.S. sanctions on subsidiaries of vast Chinese shipping fleet Cosco in September sparked a surge in global oil shipping rates as traders scrambled to find non-blacklisted vessels to get their oil to market.The rates for chartering a supertanker from the U.S.

18 Oct 2019

Exxon, Trafigura Tap Lower Freight Rates

A VLCC loads crude oil in the port of Corpus Christi, TX (File image / credit Port of Corpus Christi)

U.S. crude exports to Asia, which have slumped due to record freight costs, stirred on Thursday as rates slid and the premium in Asia for Russia's ESPO Blend oil sent buyers back to U.S. grades, according to market sources.Oil shipping costs for United States Gulf Coast to Asia cooled this week from record highs on the prospect of more vessels becoming available. Nearly 300 oil tankers globally were placed off limits due to U.S. sanctions on Iran and Venezuela.Seventeen supertankers returned to service in October after being sidelined for overhauls, as 11 entered drydocks.

18 Oct 2019

Tankers Defer retrofits as Record Freight Rates Beckon

File Image: A VLCC in Drydock (EuroNav)

Tankers that had been scheduled to install emissions-cutting equipment ahead of stricter pollution standards starting in 2020 have deferred their visits to the dry docks to capitalise on an unexpected surge in freight rates, three trade sources said.U.S. sanctions on subsidiaries of vast Chinese shipping fleet Cosco in September sparked a surge in global oil shipping rates as traders scrambled to find non-blacklisted vessels to get their oil to market.The rates for chartering a supertanker from the U.S.

17 Oct 2019

Kinder Morgan's Elba Island LNG up by mid-2020: CEO

Kinder Morgan's Elba Island facility (CREDIT: Kinder Morgan)

Kinder Morgan expects to bring the remaining nine units of its liquefied natural gas (LNG) export facility at Elba Island into service by the first half of next year, Chief Executive Officer Steven Kean said on Wednesday.The first unit of Kinder Morgan's Elba Island facility began producing LNG natural gas for export last month, and is one of several new U.S. projects adding to global supplies.The Houston pipeline operator plans to bring three more into service this year, with another six to start up in the first half of 2020…

10 Oct 2019

HII Expands Shipbuilder Academy Program

Pic: Huntington Ingalls Industries

America’s largest military shipbuilding company Huntington Ingalls Industries (HII) said that its Ingalls Shipbuilding division hosted a ribbon-cutting ceremony on Tuesday for its new Shipbuilder Academy site in Gulfport.Shipbuilder Academy was established in 2016 at Ingalls’ Maritime Training Academy with a mission to provide enrolled students with a strong foundation in the maritime industry and fill the current industry skills gap.Through a partnership with the Gulfport School District…

08 Oct 2019

Oxy Books Supertanker for a Record $13.25 Mln

© Ken Scott / MarineTraffic.com

Occidental Petroleum Corp provisionally chartered a supertanker to ship U.S. crude to South Korea for a new record of $13.25 million in November, three shipping sources familiar with the matter said on Monday.The Very Large Crude Carrier (VLCC) Maran Andromeda was chartered by Occidental on Friday for an estimated November 20 departure, according to one shipbroker and Refinitiv Eikon shipping data.Global shipping rates, and in particular U.S. Gulf Coast to Asia, have skyrocketed after the United States in late September imposed sanctions on two units of China's COSCO…

08 Oct 2019

Disruptions to Global Shipping Industry Explained

AdobeStock / © Kasto

Oil shipping rates are soaring following a series of sanctions on a Chinese transportation giant and limitations placed on movement of Venezuelan crude oil tankers.WHAT HAS HAPPENED TO SHIPPING RATES?The cost of chartering a supertanker to send crude oil from one country to another is rising sharply. A South Korean importer paid more than $12 million in shipping costs for one crude shipment from the U.S. Gulf Coast. This was followed by Friday's tentative charter of another crude…

07 Oct 2019

Flaring Runs Higher in Permian

Graph: Rystad Energy

Flaring and venting in the Permian Basin has stabilized in the range of 600 million to 650 million cubic feet per day (MMcfd), according to Rystad Energy’s preliminary data for the third quarter of 2019.Venting is gas release without combustion, whereas flaring is the burning of excess capacity. In New Mexico, vented and flared gas is reported separately and our research indicates that, on average, 5% to 15% of total flared and vented production stream is vented.In particular…

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