IMO 2020: Countdown to Cutting SOx Emissions
International Maritime Organization (IMO) has been preparing ahead of the implementation date. From 1 January 2020, under IMO's MARPOL convention for the prevention of pollution from ships.Accordingly, the sulfur content of fuel oil used by ships operating outside designated emission control areas shall not exceed 0.50% - representing an 80% cut from the current 3.50% limit. New requirements for ships to cut sulfur oxide emissions enter into effect on 1 January 2020, marking a sea change in fuel used by ships…
Vitol Builds Refinery for New Ship's Fuel
Vitol, the world's largest independent oil trader, has started building a small oil refinery at its storage terminal in Malaysia that will provide low-sulfur fuel for ships, a senior company official said on Monday.The project consists of a crude distillation unit that can process 30,000 barrels per day of crude and is located on the same site as Vitol's oil storage terminal at Tanjung Bin in the southern Malaysian state of Johor, Vitol Asia's President and Chief Executive Officer Kho Hui Meng said.A construction unit under China National Petroleum Corp (CNPC) is handling the project which will involve moving a second-hand CDU from China to the site…
Fire burns out of control at Philadelphia refinery
A fire was burning out of control at an oil refinery in Pennsylvania on Friday morning, a Philadelphia fire department official said, as local media reported a series of explosions on site.NBC Philadelphia said the "massive" blaze at the 335,000 barrels per day Philadelphia Energy Solutions refinery was visible from miles away and triggered explosions that were felt as far away as South Jersey.The crude section at the Girard Point portion of the refinery was shut down due to the fire, intelligence provider Genscape said.There were no immediate reports of casualties at the complex, which the NBC affiliate said employs around 1,000 people.A company spokeswoman was not immediately available for comment.Three fire stations and a hazardous materials response crew were mobilised, the fire depart
India to Evacuate Thousands as Cyclone Nears West Coast
Indian authorities are preparing to evacuate 300,000 people along the western coast as a severe cyclone is expected to make landfall on Thursday morning in the state of Gujarat.Storm Vayu, which formed in the Arabian Sea, is likely to cross the Gujarat coast with gust speeds as high as 135 kmph (84 mph), the India Meteorological Department said in a statement.It also warned the cyclone could further delay the progress of the annual monsoon rains over the rest of India, as the storm was drawing rain clouds from over the sea.The arrival of the monsoons on the southern coast of Kerala was already about a week late this year.Gujarat Chief…
Svitzer: 5 year Contract with Oil Refinery
Svitzer Caribbean Dominicana won a 5-year contract with Limetree Bay Refining, LLC, commencing June 15, 2019.The company expands its market coverage providing tugboat services to some of the key oil refineries and terminals in the region – South Riding Point Terminal in Bahamas, Nustar Terminal in Statia, Buckeye Terminal in St. Lucia and now Limetree Bay Refining in St. Croix, US Virgin Islands.Svitzer Caribbean Dominicana adds this contract for two tugs to the company’s portfolio and believes Limetree Bay Refining will benefit from adding these young vessels to their operation, providing increased capabilities and overall service offerings.
Hyundai Heavy Sells Oil Stake to Saudi Aramco
South Korean shipyard Hyundai Heavy Industries sells its share of oil refinery Hyundai Oilbank to Saudi Arabian oil giant Saudi Aramco.According to a press release, Saudi Aramco’s subsidiary, Aramco Overseas Company B.V (AOC) will purchase a 17% stake in South Korea's Hyundai Oilbank, a subsidiary of Hyundai Heavy Industries Holdings.The investment is valued at approximately $ 1.25 billion, it said.AOC’s’s investment in South Korea’s Hyundai Oilbank will support Saudi Aramco’s…
IMO 2020: Shell, HES to Resurrect Refinery
Royal Dutch Shell has struck a deal with Dutch tank terminal firm HES International to partially restart a German oil refinery mothballed since 2011 in response to new restrictions on marine fuels, two trading sources told Reuters.A new cap set by the International Maritime Organization (IMO) that will cut the sulfur content in shipping fuel to 0.5 percent from 3.5 percent from next year is set to be one of the biggest fundamental events to hit oil markets in years.HES Wilhelmshaven Tank Terminal is in the process of reinstalling the vacuum distillation unit (VDU) at Wilhelmshaven to produce low-sulfur bunker fuels ahead of the implementation of the IMO rules…
BP to Supply Crude to St. Croix Refinery
BP Plc's trading arm on Friday entered a tolling agreement with the owners of an idled oil refinery in St. Croix, U.S. Virgin Islands, cementing plans to bring the plant back online six years after it was idled by previous owners, the company said.Under BP's tolling agreement with Limetree Bay Refining LLC, owner of the idled Hovensa refinery, BP will supply the facility with crude and sell its products, low-sulfur fuels that will meet an International Maritime Organization mandate in 2020, it said in a statement.BP declined to comment further.
TechnipFMC Wins EPC Contract with Egypt's MIDOR
Oil and gas industry company TechnipFMC has signed a major Engineering, Procurement, and Construction (EPC) contract by Middle East Oil Refinery (MIDOR) for the modernization and expansion of their existing complex near Alexandria, Egypt.Middle East Oil Refinery (Midor), considered to be Africa's most advanced refinery, is a unit of Egyptian General Petroleum Corporation.This EPC contract covers the debottlenecking of existing units as well as the delivery of new units including a Crude Distillation Unit…
Petrofac Consortium Awarded USD 4bn Project in Thailand
Petrofac, the international oil and gas services provider, leading a consortium with Saipem and Samsung Engineering, has received an award notification for Thai Oil Public Company Limited’s (Thai Oil) Clean Fuels Project on the East coast of Thailand.The overall project value is around US$4 billion, of which Petrofac’s share is around US$1.4 billion, and will be completed over a period of approximately four years.The project will transform the existing oil refinery in Sriracha, Chonburi, into an environmentally-friendly facility, which will produce higher quality transportation fuels.
Exxon Mobil Eyes Major Investment at Singapore Refinery
Exxon Mobil Corp is considering a multi-billion dollar investment at its Singapore refinery, the company's largest, ahead of new global shipping fuel regulations starting in 2020, a senior executive said on Wednesday."We are currently assessing a multi-billion project in our integrated manufacturing facility here in Singapore," Matt Bergeron, vice president of Asia Pacific Fuels Business at Exxon, said at a bunkering conference."Should the project proceed, we plan to implement…
EnSolve Wins Patent for Ship Emission Scrubbing Tech
EnSolve Biosystems said it earned a patent from the U.S Patent & Trade Office for its EnScrub technology. The technology addresses contaminants from the aqueous effluent of sulfur oxide (SOx) scrubber systems for ships and oil refineries.Jason Caplan, EnSolve’s CEO said: “This patent includes claims for both Maritime and land-based applications. In fact, we have successfully employed the EnScrub technology for SOx scrubber systems on ships as well as scrubbers at a major oil refinery in China.”When asked if EnSolve plans to commercialize the technology on its own or seek a strategic partner…
Idled St. Croix Refinery to Restart, Produce Fuels by 2020
Owners of an idled oil refinery in St. Croix, U.S. Virgin Islands, which was once one of the world's largest refineries, plan to invest $1.4 billion to refurbish and restart a portion of the plant, they said on Monday. ArcLight Capital Partners, a private equity firm that owns 80 percent of Limetree Bay Terminals LLC, expects the former Hovensa plant to be able to process 200,000 barrels per day of crude and deliver fuels to market by January 2020, officials told a news conference in St. Croix. The Boston-based company spent two years studying the market and developed "a refinery profile we see thriving in the current marketplace," said John Erhard, an ArcLight partner. The refinery would supply low-sulfur fuels under an International Maritime Organization mandate that begins in 2020.
Indonesia Blames Coal Ship for Spill
A coal ship that dropped anchor off the coast of the Indonesian port city of Balikpapan on Borneo island was likely to blame for an oil spill, after dragging a pipeline more than 100 metres and causing it to crack, an energy ministry official said. Indonesia declared a state of emergency this week after the spill and fire killed five fishermen. The environment ministry said the oil covered an area of nearly 13,000 hectares and had polluted 60 km of coastal ecosystems, including mangrove wetlands and marine mammal habitats. "We suspect the pipe was dragged by the ship that caught fire," Oil and Gas Director General Djoko Siswanto told reporters on Thursday.
Oil Spill Blaze Kills Two off Borneo Island
Thick black smoke rose from a fire at sea near Indonesia's Balikpapan Bay on Saturday (March 31) which had claimed the lives of at least 2 fishermen, local media reported police as saying. Video footage uploaded to a social media website showed thick plumes of dark smoke rising from the fierce fire as people on fishing boats watch from a distance. Indonesia's state owned oil and gas company Pertamina, who have an oil refinery nearby, said in a statement that they had found no leaks at their refinery and that the incident had not halted their operations.
Essar UK to Buy More US Crude in 2018
Essar UK, one of Britain's biggest oil refiners, will buy more U.S. crude this year after testing it last year, showing how rising output from the United States is squeezing out traditional European suppliers from the North Sea and Africa. Essar took at least three cargoes U.S. crude in 2017 for its 200,000 barrel-per-day (bpd) Stanlow oil refinery. "We will continue to take U.S. cargoes because we find value in them," Chief Executive Officer Srinivasalu Thangapandian told Reuters at a Platts middle distillates conference in Antwerp.
Oil Heist Uncovered at Shell's Biggest Refinery
Police say 17 arrested in connection with oil theft; 11 charged; Shell expects "short delay" in operations due to case. Eleven men were charged in a Singapore court on Tuesday in connection with a large-scale oil theft at Shell's biggest refinery, while police said they were investigating six other men arrested in a weekend raid. Police in the island-state said on Tuesday they had detained 17 men, whose ages ranged from 30 to 63, and seized millions of dollars in cash and a small tanker during their investigations into theft at the Pulau Bukom industrial site…
Flurry of Vessels Booked After Dutch Refinery Outage
At least 10 tankers booked from Mideast to Europe; freight rate for clean tankers up 11 percent from Monday. Oil traders are rushing to secure vessels to ship refined fuel from the Middle East to Europe after a Dutch refinery outage made the route profitable, pushing freight rates to multi-month highs, traders and shipbrokers said on Thursday. At least 10 long-range tankers able to carry 55,000 to 75,000 tonnes of jet fuel and diesel have been provisionally booked to head to Europe, with at least four of them taken by Royal Dutch Shell, two shipbrokers said.
Asia Traders Consider Diesel, Jet Fuel Trades to Europe
Rise in enquiries on booking long-range vessels; shipping rates likely to go up. Traders in Asia are considering shipping diesel and jet fuel to Europe after a fire at that region's largest oil refinery disrupted supplies and boosted fuel margins, five traders and shipbrokers said on Tuesday. Two shipbrokers said they had seen a rise in enquiries on booking long-range vessels to ship the fuels to Europe after Royal Dutch Shell shut most of the units at its 404,000 barrels per day Pernis refinery in Rotterdam following a fire in the power supply system on July 29.
Mexico's Pemex Sees Restart of Salina Cruz Refinery
Mexican state oil producer Pemex said on Thursday that it expects to restart operations on July 30 at Salina Cruz, its largest oil refinery, after it was hit last week hit by flooding and subsequent fire that forced a shutdown of the plant. The program contemplates three-way actions: Restarting operations; cleaning and rehabilitation of the affected site and general maintenance, taking advantage of the shutdown of the process. This last activity would allow for the advancement of the maintenance that was scheduled for next April…
Market Volatility Affects Sovcomflot
Sovcomflot is one of the world’s leaders in energy shipping as well as in servicing offshore upstream oil and gas projects. It has reported lower time charter equivalent revenue (TCE) of USD 1,142.2 million (2015: USD 1,240.1 million), EBITDA of USD 706.5 million (2015: USD 780.1 million) and net profit of USD 206.8 million (2015: USD 354.5 million). Sergey Frank, President and CEO of Sovcomflot said: “Sovcomflot has delivered a solid set of results for 2016, despite market volatility in a year that has severely tested our industry.
PetroChina Dalian Refinery Exports First Australian-spec Diesel Cargo
PetroChina's Dalian oil refinery exported on Feb. 27 a 40,000 tonne cargo of diesel fuel with that met Australian fuel quality specifications, the first shipment of its kind from China, according to a statement posted on the website of the state assets regulator on Monday. (Reporting by Beijing Monitoring Desk; Editing by Christian Schmollinger)
Hyundai Heavy Back in the Black
The South Korean shipbuilder Hyundai Heavy Industries (HHI) has reported a net profit of KRW 682.3 billion (USD 596.6 million) for the full year of 2016, returning from a loss of KRW 1.36 trillion (USD 1.18 billion) seen in the full year 2015. Operating profit for 2016 totaled 1.64 trillion won, up from a loss of 1.54 trillion won for 2015. HHI also announced consolidated 4Q 2016 results. During the October-December period of 2016 HHI racked up 10.3427 trillion won in sales and 437.7 billion won in operating profits, posting quarterly profits for four straight quarters.