Gulf Coast News

19 Jun 2019

U.S. Refiner Phillips 66 Enters Offshore Oil Export Race

 © Lukasz Z/ Adobe Stock

U.S. oil refiner Phillips 66 is proposing a deepwater crude export terminal off the U.S. Gulf Coast, challenging at least eight other projects aiming to send U.S. shale oil to world markets, according to a memo and a source who asked not to be named.The project, called Bluewater Texas Terminal LLC, signals another major expansion of its logistics operations. The fourth largest U.S. refiner last week formed joint ventures to build pipelines linking shale fields in West Texas and North Dakota to the Cushing, Oklahoma, oil hub and the U.S.

18 Jun 2019

CMA CGM Breaks Tampa Port Vessel Record

Port Tampa Bay welcomed its largest container ship ever, the CMA-CGM DALILA. Photo: Port Tampa Bay

Florida's largest port,  Port Tampa Bay has marking a major milestone and partnership with CMA CGM as Port customers, local officials, and business leaders gather to celebrate the inaugural call of the CMA CGM DALILA at The Ports America Terminal.CMA CGM Group, a world leader in shipping and logistics, begin their weekly direct ocean carrier service between Asia and Port Tampa Bay today. CMA CGM's excellent transit times will significantly improve the competitiveness of the region's importers and exporters…

18 Jun 2019

Howard Completes Port Arthur Terminal

Texas-based midstreamer Howard Energy Partners (Hep) announced that it’s completed the expansions of its bulk liquid terminal facilities in Port Arthur and Corpus Christi, Texas.The completion of these projects increases HEP’s Gulf Coast terminal storage capacity to 2.6 million barrels with three ship docks, three barge docks, unit train loading capacity for up to two trains per day, and direct pipeline connectivity through wholly-owned pipelines to seven refineries. HEP began operating terminal facilities in mid-2014.“The substantial expansions at our Port Arthur and Corpus Christi facilities signify HEP’s commitment to designing and constructing fully-engineered facilities that are tailored to meet the exact needs of our customers…

10 Jun 2019

Fuel Futures: Diesel Will Spike on IMO2020

© bluedesign/Adobe Stock

New marine fuel rules to boost diesel prices for at least a year -analystsGlobal prices for diesel and marine fuels should rise by October ahead of a January switchover to new, very low-sulfur marine fuels, and remain higher for at least a year as refiners shift production to make more of the new fuels, analysts said.Marine fuels containing no more than 0.5% sulfur by weight, down from the 3.5% currently used, to power ocean-going vessels will be required for ships without exhaust scrubbers on Jan.

10 Jun 2019

Workboat Report: The U.S. Workboat ($33.8B) Market

Inland pushboat and barge. Source Kirby Corporation

The U.S. towing and tug business is 5,500 boats, more than 31,000 barges with an estimated total impact on U.S. GDP of $33.8 billion.“At a macro level, the bigger ships are causing downward pressure on the ship assist business because there are fewer ship calls given the increased capacity of these vessels. However, certain ports have seen tremendous growth, based on strategic location and infrastructure investments that have attracted these larger ships and been a net plus for these areas.”Kate Fuhrman…

06 Jun 2019

Natural Gas Flaring Hits Record High

Graph: Rystad Energy

As spot prices in the region have remained near or below zero, natural gas flaring and venting in the Permian Basin in Texas and New Mexico reached a new all-time high in the first quarter of 2019, averaging as much as 661 million cubic feet per day (MMcfd).According to research conducted by Rystad Energy,  this widespread waste of a valuable commodity is the result of persistent infrastructure challenges, a lack of sufficient takeaway capacity and an unexpected outage on a key…

04 Jun 2019

US Soy Exporters Scramble to Meet China Commitments

file Image / Credit: ABB

U.S. soybean exporters are facing what may be their busiest and most logistically challenging summer due to an unprecedented backlog of soybeans purchased by China that still needs to be shipped and widespread floods in the U.S. Midwest.While there is little hope for a prompt U.S.-China trade deal, some 7 million tonnes of U.S. soybeans bought before talks broke down last month will need to be delivered to Beijing in coming months, U.S. exporters and industry analysts said.China would face steep penalties if it tried to cancel the orders and…

02 Jun 2019

Canada Makes First Propane Shipment

The first shipment of Canadian propane departed RIPET on Canada’s West Coast on May 23. The facility is expected to ship approximately 1.2 million tonnes of propane annually to customers in Asia. Photo: CNW Group/AltaGas Ltd.

North American energy infrastructure company energy infrastructure company AltaGas celebrated the grand opening of its Ridley Island Propane Export Terminal (RIPET), located in Prince Rupert, British Columbia – the first marine export facility for propane in Canada.The facility began introducing propane feedstock in mid-April, and the first shipment departed the terminal on May 23, 2019 bound for Asia."The completion of this game-changing project and the shipment of our first cargo are historic milestones for AltaGas…

31 May 2019

US Oil Production Up, Needs More Pipelines

Graph: Source: U.S. Energy Information Administration liquids pipeline projects database

The rising domestic crude oil production in the United States has created a need for more pipeline capacity, revealed the US Energy Information Administration (EIA).EIA recently launched a new liquids pipeline projects database that tracks more than 200 crude oil, hydrocarbon gas liquids (HGL), and petroleum products pipeline projects."Rising domestic crude oil production has led to several changes in Gulf Coast crude oil supply and demand patterns, creating a need for more pipeline capacity…

30 May 2019

Bechtel Bags Rio Grande LNG EPC Deal

Image: NextDecade

US project management services provider Bechtel has won the engineering, procurement, and construction (EPC) contracts totaling $9.565 billion for the LNG export project developer NextDecade-led Rio Grande liquefied natural gas (LNG) project in the US.The fully wrapped lump-sum turnkey (LSTK) EPC contracts include cost, schedule, and performance guarantees, NextDecade said in its statement.The EPC contracts are for the first phase of the Rio Grande LNG project, which consists of three liquefaction trains…

23 May 2019

Tanker Market Faces Headwinds: Teekay

Pic: Teekay

Average crude tanker spot rates moderately increased during the first quarter of 2019, as some of the positive drivers from late 2018 continued into early 2019, said Teekay Tankers."These included high seasonal oil demand, the impact of winter weather delays, and relatively high global oil production prior to the full implementation of OPEC supply cuts," it said.However, spot tanker rates weakened as the quarter went on, and the market faces a number of near-term headwinds during the second quarter of 2019.The largest operator of mid-sized tankers including suezmax…

19 May 2019

VLGC Freight Rates Recover

Pic: BW LPG

The Very Large Gas Carrier (VLGC) freight rates started to recover towards the end of the first quarter as U.S. consumption reverted to seasonally lower levels pushing U.S. LPG prices down, widening the geographical LPG price arbitrage between the U.S. and the Far East.According to BW LPG, the owner and operator of liquid petroleum gas (LPG) vessels,  the recovery in VLGC freight rates was further strengthened by two occasions of fog and a temporary closure of the Houston Ship…

16 May 2019

Marine Fuel Rules to Disrupt Markets for 1-5 years

File Image: AdobeStock / © 14KT Gold

The marine industry's January 2020 shift to using very low sulfur fuel oil (VLSFO) to power ships worldwide will launch a one- to five-year disruption in oil and refined products markets, according to a study released Thursday by Boston Consulting Group.The International Maritime Organization (IMO)'s mandated switch will require fuels to have a sulfur content below 0.5%, compared with 3.5% now. It aims to improve human health by reducing air pollution from sea-going vessels.The changeover may increase profits for refiners, especially on the U.S.

10 May 2019

U.S. Refiners' 2020 Plans Now Uncertain

File Image: An aerial view of the Houston, Texas refining complex. (CREDIT: AdobeStock / © Irina K)

U.S. refiners had a plan for 2020: use their complex operations to maximize profits by making products that would comply with new international laws capping sulfur content in shipping fuels.But after a series of unexpected market moves, heavy, sour crude oil processed by U.S. refiners has become more expensive, eating up hoped-for profit windfalls before they even materialized, forcing refiners to rethink plans to invest more in heavy crude processing units.New regulations by…

09 May 2019

HII's “Signing Day” For Shipbuilder Academy Grads

Alma Bryant High School seniors (left to right) Tyler Morgan, Logan Lyons and Thomas Durgin sign paperwork, officially accepting positions at Ingalls Shipbuilding. HII photo

Huntington Ingalls Industries’ Ingalls Shipbuilding division hosted a signing day ceremony on Tuesday for the 2019 graduates of its Shipbuilder Academy program. Twenty-six high school seniors were offered full-time positions at Ingalls after successfully completing the specialized career technical education (CTE) program.“For more than 80 years, Ingalls has provided the families of our communities the opportunity to learn relevant job skills and build successful careers,” said George S. Jones, Ingalls’ vice president of operations. “Signing day is a continuation of that legacy.

09 May 2019

USCG Polar Security Cutter Details Unveiled

Artist rendering of the VT Halter Polar Security Cutter design. Illustration Credits: VT Halter Marine / Designer: Technology Associates, Inc.

The U.S. Coast Guard (USCG)’s next icebreaker is based on a German research vessel, features a unique Finnish propulsion design and is driven by American diesels, shipbuilder VT Halter Marine said.The U.S. Department of the Navy has awarded VT Halter Marine of Pascagoula, Mississippi, as the prime contractor of a $745,940,860 fixed-price incentive-firm contract for the detail design and construction of the U.S. Coast Guard (USCG) PSC (formerly the Heavy Polar Icebreaker).VT Halter Marine is teamed with Technology Associates, Inc.

08 May 2019

Tellurian to Decide on Louisiana Driftwood LNG Project in 2019

Tellurian Inc confirmed on Wednesday it still plans to make a final investment decision to build its proposed $30 billion Driftwood liquefied natural gas (LNG) export project in Louisiana in 2019:* The company, in a first-quarter earnings statement, said it was on track to make a final investment decision in 2019, start construction in 2019 and begin operations in 2023.* Driftwood is designed to produce 27.6 million tonnes per annum (MTPA) of LNG or about 4 billion cubic feet per day (bcfd) of natural gas. One billion cubic feet of gas is enough to fuel about 5 million U.S. homes for a day.* The company has said the first phase will likely comprise 16.6 MTPA.* Driftwood is one of more than a dozen U.S.

02 May 2019

Kirby Posts 2019 Q1 Results

David Grzebinski, Kirby’s President and Chief Executive Officer

Kirby Corporation announced net earnings attributable to Kirby for the first quarter ended March 31, 2019 of $44.3 million, or $0.74 per share, compared with earnings of $32.5 million, or $0.54 per share, for the 2018 first quarter. Excluding certain one-time charges, 2018 first quarter net earnings attributable to Kirby were $37.9 million, or $0.63 per share. Consolidated revenues for the 2019 first quarter were $744.6 million compared with $741.7 million reported for the 2018 first quarter.David Grzebinski…

01 May 2019

Panama Canal Expansion Allows More NGL Transists

Pic: Panama Canal Authority

In June 2016, the Panama Canal Authority, the body that operates the Panama Canal, opened a third set of locks that facilitated transit of larger ships, the first such expansion since the canal was completed in 1914.In the years since the canal was expanded, the largest change in petroleum flows through the canal has been the increase of hydrocarbon gas liquids (HGL), especially propane, from the U.S. Gulf Coast to destinations in Asia. HGL represents all natural gas liquids (NGL)…

29 Apr 2019

Port NOLA Names Mike Stolzman as GM

Image: Port NOLA

The New Orleans Public Belt Railroad Corporation (NOPB), a wholly owned subsidiary of the Port of New Orleans (Port NOLA), has named M.D. (Mike) Stolzman as its new General Manager, effective immediately.Stolzman, a veteran railroad executive with extensive short line and Class I rail experience, will report to Brandy D. Christian, President and CEO of Port NOLA and CEO of NOPB, which is a Class III railroad on the nation’s fourth largest rail gateway that connects with six Class…

26 Apr 2019

US Oil Sees Growing Reach

© Hans Fairhurst / MarineTraffic.com

Two cargoes of U.S. crude oil have been booked to sail to Australia, trade sources and data companies said, highlighting the increasing global reach of exports from the United States.Aframax tanker Esther Spirit loaded U.S. oil in early April at Enterprise Houston Terminal and is scheduled to discharge at Kwinana in Western Australia on May 20, ship-tracking data from Refinitiv and Vortexa showed.BP Plc chartered the Silver Sun, an Aframax, to load from the U.S. Gulf Coast this week to Kwinana for $2.35 million, according to a shipbroker and Refinitiv data.

24 Apr 2019

MOL, Reliance to Co-Own World’s 6 Largest Ethane Carrier

Very Large Ethane Carrier the Ethane Crystal. Pic: Mitsui O.S.K. Lines

The international shipping company based in Tokyo Mitsui O.S.K. Lines Ltd (MOL) and Reliance Ethane Holding (REHPL) a 100% subsidiary of Reliance Industries Ltd(RIL) and based in Singapore agreed to co-owning of six very large ethane carriers (VLECs) which are currently fully owned by REHPL.VLEC is designed for transportation of liquified ethane which has over 80,000m3 of tank capacity. The vessels which transport liquified ethane at - 92 degrees have GTT Mark III membrane system…

16 Apr 2019

INSIGHTS: Metal Shark's Chris Allard

Metal Shark CEO Chris Allard

A naval architect and graduate of the Webb Institute, Co-Owner/CEO Chris Allard introduced the engineering-centric approach that has fueled Metal Shark’s growth; driving innovation and transforming the company from a regional builder to a globally recognized industry leader.A member of the ownership team since 2005, Mr. Allard has overseen the expansion of Metal Shark from several employees to over 350. Under Mr. Allard’s direction, Metal Shark has successfully captured over $500…

Maritime Reporter Magazine Cover Jun 2019 - 80th Anniversary World Yearbook

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