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Tuesday, November 13, 2018

Kuwait News

How Refiners Plan to Grapple With Fuel Oil Output After 2020

© christian42 / Adobe Stock

High-sulphur fuel oil (HSFO), essentially the leftovers of an oil refiner's output, will still flow from refineries around the world even after new rules start up in 2020 curtailing its use in the global shipping fleet, a Reuters survey showed.Sixty percent of the 33 refineries contacted by Reuters in a global survey will still produce HSFO in 2020 although the supply will tighten as 70 percent of these refiners plan to reduce their output.Starting that year, ships will have to use marine fuel…

Saudi Arabia Halts Red Sea Oil Exports after Tanker Attacks

© Lasse Pape / MarineTraffic.com

Saudi Arabia said on Thursday it was suspending oil shipments through a strategic Red Sea lane after Yemen's Iran-aligned rebels attacked two tankers in the waterway, underscoring the risk of an escalation in tensions in the region.Brent crude futures rose 59 cents to $74.52 a barrel by 1008 GMT, extending their rally into a third day but falling from a 10-day high in earlier trading.Saudi Arabia and arch-foe Iran have been locked in a three-year proxy war in Yemen, which lies on one side of the Bab al-Mandeb strait at the southern mouth of the sea…

Golar FSRU Golar Freeze Lined Up for Jamaican Project

Golar Freeze. Photo: Emerson

Norwegian shipping company Golar LNG Partners is deploying a floating storage and regasification unit (FSRU) to Jamaica for up to 15 years from the fourth quarter of 2018."FSRU Golar Freeze will shortly arrive offshore Jamaica where she will service a 15-year charter for an energy and logistics company," the partner company of Golar LNG Limited said in a stock market annoucement.From commencement of commercial operations, expected during January, 2019, hire will be receivable at the full daily base rate…

Gunvor Halts Refinery Upgrade for New Shipping Fuels

© corlaffra / Adobe Stock

Global energy trader Gunvor Group has put on hold plans to upgrade its Rotterdam refinery that intended to make the plant more competitive ahead of new global rules on shipping fuel quality, it said on Tuesday, citing market conditions.Global oil and shipping companies are looking at options to cope with the new standards that come into effect in 2020.The U.N. International Maritime Organization (IMO) will ban ships using fuel with a sulphur content higher than 0.5 percent, compared to 3.5 percent now…

Middle East Oil & Gas Shipping Routes are at Risk

© Igor Groshev / Adobe Stock

Saudi Arabia said on Thursday it was suspending oil shipments through the Red Sea after Yemen's Iran-aligned Houthis attacked two crude tankers, underscoring risks caused by the conflict in the world's top oil exporting region.Iran, in its row with the United States over sanctions, has also threatened to block the Strait of Hormuz, the other major strategic shipping route for oil from the region and the main route for Iranian crude exports.Below are facts about region's shipping routes:Bab al-MandebAny move to block the Bab al-Mandeb…

US, Iraq, Kuwait Complete Trilateral Exercise

Photo: United States Navy

The U.S. Navy and Coast Guard completed a trilateral exercise with Iraqi navy and Kuwaiti navy partners in the Northern Arabian Gulf, August 15.The exercise focused on improving collective proficiency in maritime security tactics between the three nations and ensuring the freedom of navigation throughout the U.S. 5th Fleet area of operations. Participants included the guided-missile destroyer USS The Sullivans (DDG 68), U.S. coastal patrol ships USS Tempest (PC 2) and USS Chinook (PC 9), U.S.

Rising Supply Dents Oil Gains

Oil prices fell for a third day on Thursday, following a surprise increase in U.S. crude inventories that added to existing concern about the rapid rise in global crude supply.Saudi Arabia, Russia, Kuwait and the United Arab Emirates have increased production, as agreed at a meeting in June, to help to compensate for an anticipated shortfall in Iranian crude supplies once U.S. sanctions come into force later this year.Brent crude futures were last down 33 cents at $72.06 a barrel by 1200 GMT, while U.S. crude futures fell 55 cents to $67.11."There's been a lot of bearish news over the last week. We've seen the OPEC July numbers increasing quite drastically month-on-month and along with that…

Higher US Export, Lower Fleet Growth Aid LPG Exports

Pic: Avance Gas

The Middle East is the most active export market of LPG exports on very large gas carriers(VLGC), said Norway-based LPG shipping firm Avance Gas.Oslo-listed Avance Gas said in a statement that traditionally Saudi Arabia was the largest exporter, but though growing LNG production from mid-2000 combined with increased petrochemical use of LPG in Saudi Arabia, resulted in Qatar and UAE becoming the largest exporters.Today Qatar and UAE each export about 10 million tons annually, Saudi Arabia 8-9 million tons and Kuwait 4-5 million tons.

Milaha Rolls Out Sri Lanka-Bangladesh Feeder Service

Photo: Milaha

Qatar-based maritime transport and logistics conglomerate Milaha is launching a direct feeder service between Sri Lanka and Bangladesh. "Milaha has announced the launch of a direct feeder service between Sri Lanka and Bangladesh. Colombo and Chittagong will be the 7th and 8th new ports of call for Milaha this year, and is part of the significant service expansion since the beginning of 2017," says a statement from the company. The new service, called BCX, will be operated via two vessels of effective capacity 1…

Rising US LNG Exports Boost Interest in Natgas Futures

© Anatoly Kolodey / Adobe Stock

A surge in speculative interest in the U.S. liquefied natural gas (LNG) export boom has pushed open interest in natural gas futures to an all-time high, traders said on Thursday. Open interest, which measures the number of contracts outstanding, in the Henry Hub front-month hit 386,826 on the New York Mercantile Exchange on Wednesday, topping the previous high of 366,383 set in May 2016, according to Reuters data going back to 1990. "There has been a narrative around the market that the LNG exports are going to be the difference maker this winter…

Kuwait Signs LNG Import Deal With Shell

Photo: Shell

Kuwait Petroleum Corp. (KPC) has signed a 15-year liquefied natural gas import deal with Royal Dutch Shell Plc to help the oil exporting nation meet growing domestic energy demand. A report in Bloomberg said that the sales purchasing agreement with Shell International Trading Middle East Ltd. will start in 2020. The contract will cover 2 million to 3 million metric tons of LNG a year. The volumes delivered under the contract will be used to fire up KPC’s power stations. A press…

Hyundai Heavy Bags Canadian Facility Order

Photo: Hyundai Heavy Industries

South Korean shipbuilding giant Hyundai Heavy Industries (HHI) has won a design contract worth about $500 million for a liquefaction unit to be used for Steelhead LNG’s Kwispaa LNG export project in Canada’s British Columbia, reported Yonhap. Hyundai Heavy will conduct a front-end engineering design (FEED) for the hull of the At-Shore LNG (ASLNG) and build the LNG liquefaction facility for Steelhead LNG Corp., the company said in a statement. The ASLNG facility, scheduled to begin operations in 2024 on the coast of Vancouver…

Hyundai Heavy Industries, KOTC Ink Gas Carriers Deal

Photo: Kuwait Oil Tanker Company S.A.K

Kuwait Oil Tanker Company (KOTC) has signed a contract with South Korean shipbuilder Hyundai Heavy Industries (HHI) for three very large gas carries (VLGC). The three 84,000 cbm LPG carriers are expected to start delivery in 2019. The contract worth USD 213.36 million to build three immense gas tankers is part of a major KOTC fleet overhaul. The deal entails the construction of three liquefied gas tankers at a cost of USD 71.12 million per tanker, the marine transport company said in a statement to KUNA.

Distillate Demand Boost from Shipping Sulphur Rules to be Brief

File Image: A typical Middle East Refinery (CREDIT: MELCAL)

A sharp increase in demand for distillates following new shipping fuel rules will fade quickly, the International Energy Agency said on Monday. New rules implemented by the International Maritime Organization (IMO) will significantly cut the amount of sulphur that the world's ships can burn in their engines from 2020, leading to a close to 1 million barrel per day (bpd) rise in gasoil consumption at the expense of high-sulphur fuel oil. While ships can continue to burn higher sulphur fuel if they install scrubbers…

U.S. Crude Exports to Asia Slump as WTI Outperforms

File Image: the U.S. crude export hub of Corpus Christi, TX is upgrading its facilities for anticipated growth. (CREDIT: Port of Corpus Christi)

Exports of U.S. crude oil to Asia appear to be starting to struggle under the weight of a narrowing discount for its domestic benchmark crude to international grades and efforts by other suppliers to maintain competitiveness. Vessel-tracking and port data suggest Asian imports of U.S. crude were equivalent to about 560,000 barrels per day (bpd) in February, down sharply from 676,190 bpd in January. March's figure may be even weaker with data compiled by Thomson Reuters Oil Research and Forecasts pointing to Asian imports of only about 290,000 bpd.

Kuwait Oil Tankers Inks Financing for Eight Tankers

Kuwait Oil Tanker Company said on Thursday it had signed a 140 million dinar ($467 million) financing deal with three local banks for eight oil tankers, state news agency KUNA reported.   The 10-year financing was obtained from Warba, Ahli United and Kuwait International banks, KUNA said.   Reporting by Ali Abdelati

Kuwait Oil Tanker Signs Financing Deal for 8 Tankers

Photo: Kuwait Oil Tanker Company S.A.K

Kuwait Oil Tanker Company (KOTC) said on Thursday it had signed a 140 million dinar ($467 million) financing deal with three local banks for eight oil tankers, state news agency KUNA reported. The 10-year financing was obtained from Warba, Ahli United and Kuwait International banks, KUNA said. Earlier, KOTC and South Korean construction firm Hyundai Heavy Industries have co-signed a contract worth USD 213.36 million to build three immense gas tankers, as part of a major KOTC fleet overhaul.

Milaha Eyes Global Expansion

Photo: Qatar Navigation Q.P.S.C.

Qatar Navigation (Milaha) is planning to expand operations and capabilities in Qatar and overseas as part of its long term plan to improve efficiency and profitability. During the General Assembly meeting, Sheikh Ali bin Jassim bin Mohammad Al Thani, Chairman of Milaha’s Board of Directors presented an overview of the company’s activities and financial results for 2017 along with highlights of business plans for the year 2018. "The Chairman underlined the impact of industry-wide and geopolitical challenges on the company’s financial performance…

Iraq's Southern Oil Exports Fall in March

© Esbjörn Strid / Adobe Stock

Oil exports from southern Iraq have fallen by 70,000 barrels per day (bpd) this month, according to shipping data and an industry source, suggesting OPEC's second-largest producer is heading for a third month of lower shipments. Southern Iraqi exports in the first 21 days of March averaged about 3.36 million bpd, compared to 3.43 million bpd in February, shipping data followed by Reuters and independent tracking by an industry source showed. The fall suggests there is still no…

Oil Plus bags $1.5 mi Middle East Deals

 Clarke Shepherd, global business development director at Oil Plus. Photo courtesy Oil Plus

Oil Plus has secured contracts worth more than $1.5m over the past three months and has significantly expanded its footprint in the Middle East. The company has also reported a strong start to the year with sales up by 285% compared to the last quarter of 2017. Due to the surge of new business, the Newbury-based company, which employs in excess of 30 people, plans to recruit another eight over the next 12 months. The contracts will see Oil Plus deliver reservoir souring modelling…

US Navy to Commission Amphibious Transport Dock Ship Portland

Official U.S. Navy file photo.

The Navy will commission its newest amphibious transport dock, the future USS Portland (LPD 27), during a 10 a.m. PDT ceremony Saturday, April 21, at the Port of Portland, Marine Terminal 2 in Portland, Oregon. Deputy Secretary of Defense Patrick M. Shanahan will deliver the ceremony's principal address. Bonnie Amos, wife of the 35th Commandant of the Marine Corps, retired Gen. James F. Amos, serves as the ship's sponsor. "USS Portland enters service in a period of dynamic security challenges…

Milaha Rolls Out Qatar-Iraq Direct Container Feeder Service

Photo: Qatar Navigation Q.P.S.C. (Milaha)

Qatar-based maritime transport and logistics conglomerate Milaha has announced the launch of a direct container feeder service between Qatar and Iraq. The new service, which will be an expansion of the existing Qatar-Kuwait service that the company launched last year, will follow a Hamad Port-Umm Qasr (Iraq)-Shuwaikh (Kuwait)-Hamad Port rotation, and will be initially served by one vessel with a 1,015 TEU capacity and 110 reefer plugs. The service will have a transit time of 2 days…

Sanctions spell the end of OPEC output deal

© Douglas Knight / Adobe Stock

President Donald Trump’s decision to withdraw from the nuclear agreement with Iran marks the end of the current output agreement between OPEC and its allies.OPEC is likely to insist the current agreement remains in effect, at least for now, but the prospective removal of several hundred thousand barrels per day of Iranian exports from the market will require a major adjustment.Saudi Arabia has already promised to "mitigate" the impact of any potential supply shortages, in conjunction with other suppliers and consumer countries…

Maritime Reporter Magazine Cover Nov 2018 - Workboat Edition

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