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: Oil Refining Capacity to Grow at Record Pace
Global oil refining capacity is set to increase at its fastest pace on record this year, possibly boosting stocks of products such as diesel, gasoline and marine fuel, the International Energy Agency said.Oil refining capacity will rise by 2.6 million barrels per day (bpd) and demand for refined products by around 1.1 million bpd, the IEA said in a monthly report.It was not clear yet what that meant for margins, which slumped as the price of crude rose last year, said the Paris-based IEA…
ScanOcean, Neste Pact for Low-Sulfur Bunker Fuel
Finland oil refining and marketing company Neste Corporation and Swedish bunker and marine fuels provider ScanOcean AB enter into cooperation in delivering Neste’s low-sulfur marine fuel. ScanOcean AB is now an official reseller for Neste’s 0.1% marine fuel products on the East Coast of Sweden. The low-sulfur marine fuel is one of Neste’s high quality products."The re-seller partnership with ScanOcean is part of our marine fuel strategy as it is our aim to continually offer customers better services both locally and globally.
Russia's Rosneft Signs Oil and Gas Deal with China
Russian oil giant Rosneft said that China National Chemical, known as ChemChina, agreed to purchase 2.4 million tons a year of crude oil. That amount is equivalent to 6% of Rosneft's total exports to China in 2017.Crude oil from Eastern Siberia will be transported to a Russian Far East port by pipeline and will reach China via Russia’s Pacific port of Kozmino.The deal allows for increasing crude oil supplies to China’s market, which is a strategic one for Rosneft, the Russian…
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…
No Delays to Implementing 2020 Sulphur Cap -IMO Official
The International Maritime Organization (IMO) will not delay implementing a reduction in the amount of sulphur in marine fuel in 2020, an IMO official said on Tuesday."I can categorically say there will not be a delay," said Edmund Hughes, the head of air pollution and energy efficiency at the IMO, during the Asia Pacific Petroleum Conference (APPEC) in Singapore.IMO, the United Nations' shipping agency, will require that vessels start in 2020 using fuel oil with 0.5 percent sulphur…
Shell Ships 'Slurry Oil' from Singapore to UAE
In an unusual arbitrage move, Shell International Eastern Trading Company (SIETCO) has chartered a tanker to ship up to 80,000 tonnes of slurry oil from Singapore to Ruwais in the United Arab Emirates (UAE).Shell has chartered the tanker Maersk Prosper to load 80,000 tonnes of fuel oil from Singapore on Aug. 18 to 20 and for discharge into Ruwais at a $450,000 fee, according to data from two shipbroker reports and a trade source with knowledge of the matter.Ruwais in the UAE is the site of Abu Dhabi National Oil Corp's (ADNOC) 800…
Bahri Tanker NCC Amal Carries Chemical Cargo to China
National Shipping Company of Saudi Arabia (Bahri) announced the transportation of the first chemical shipment from Aramco Trading Company (ATC), a wholly-owned subsidiary of Saudi Aramco that trades refined, liquid chemical and polymer products, via ‘NCC Amal,’ a 45,000 DWT Bahri chemical tanker which left Port of Rabigh heading to China. The shipment, which contains 25,000 metric tonnes of paraxylene (PX) and 20,000 metric tonnes of monoethylene glycol (MEG), marks the completion of Phase II of the Petro Rabigh Company (PRC) project…
Russia Ramps up Fuel Exports in Fight for European Market
Russia plans to sharply increase fuel exports and carve out a larger share of the European market following an extensive $55 billion modernisation of its refineries, companies' plans and analysts' reports show. Russia embarked on a modernisation of its biggest refineries in 2011 following a fuel shortage crisis. It also changed its tax system to favour production of cleaner and higher-quality fuel. The modernisation, which has not been completed yet, led to a surge in output of light products and exports, which has hurt European refineries' margins.
Hyundai Heavy Bags LPG Storage Tank Deal in Nigeria
Hyundai Heavy said it plans to start to build the tanks in May and is set to deliver the tanks to Nigeria's Dangote Oil Refining Company, Africa's largest refinery, beginning in April 2019. The 15 cylindrical tanks - each being eight meters in diameter and 95 meters in length - can hold 75,000 cubic meters of LPG, according to Hyundai Heavy. The 15 gas cylinders w ill be installed at Dangote Oil Reining’s refining and petrochemical plant near Lagos in southwestern Nigeria. The Korean company manufactures and sells ships…
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…
What Hurricanes Teach Us About Energy Security
After a few years of relative calm, the 2017 hurricane season wreaked havoc in the Atlantic and the Gulf of Mexico, causing widespread damage and human suffering, and exposing the vulnerabilities and strengths of American energy security. As the flood waters from Hurricane Harvey receded and Gulf coast residents embarked on the arduous road to recovery, the offshore energy industry took stock and counted its losses and blessings. Offshore energy facilities faired remarkably well compared to onshore energy facilities, many of which suffered catastrophic damage from flood waters.
Antwerp Port Acquires NMP
Antwerp Port Authority is to acquire Nationale Maatschappij der Pijpleidingen (NMP) from its current shareholders Ackermans & van Haaren and Electrabel. With the takeover Antwerp Port Authority will gain ownership and control of 720 km of pipelines, 90% of which serve the chemical and petrochemical companies in the port of Antwerp and its hinterland. The Port Authority is paying 44 million euros for the NMP shares. “Pipelines are the ideal mode of transport for the chemical industry and oil refining,” explains Port Authority CEO Jacques Vandermeiren.
Asia VLCC Rates Fall to Four-year Low
Freight rates for very large crude carriers (VLCCs) on Asian routes show little sign of reviving although Hurricane Harvey, which threatens to ravage the U.S. Gulf coast oil refining industry over the weekend, could provide a fillip, brokers said. That came as average weighted VLCC freight rates on all routes sank to their lowest in four years this week to around $9,000 per day. Rates are even lower on some routes after CPC fixed a VLCC late Thursday for a trip from the Middle East to Taiwan at 36.75 on the Worldscale measure and S-Oil fixed a VLCC to South Korea at W36.
Catfines: Uncertainty Must Be Addressed
Earlier this year the International Organization for Standardization (ISO) published a revised edition of its ISO 8217 specifications for marine fuels, which still maintains a 60 mg/kg limit for catfines (catalytic fines). It’s not rare to hear comments about this threshold being on the high side. A recent test conducted by the Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) takes the debate to a new level. It shows that a number of bunker samples delivered in Fujeirah…
Oil Firm Evacuate Workers as Storm Approaches Texas
Oil companies evacuate workers as storm takes aim at Texas. Royal Dutch Shell, Anadarko Petroleum and Exxon Mobil announced they were curbing some oil and gas output on Wednesday at facilities in the Gulf of Mexico ahead of a storm expected to hit the Texas coast later this week. The U.S. National Hurricane Center (NHC) issued a hurricane watch Wednesday for much of the Texas coast, calling for slow-moving Tropical Depression Harvey to intensify as it nears landfall. Shell said it was evacuating all personnel from the roughly 100…
The Evolving ATB Jones Act Business Model
Today’s ATB play seemingly has legs for the long haul, as operators build and market needs fluctuate. The refined product trades are always in flux. Similarly, the supply patterns for products (and for chemicals derived from oil refining) are subject to constant change. At the same time, the distribution of refined petroleum products sees great benefit from the efficiency of Articulated Tug Barges (ATBs), which have the flexibility to adjust to dynamic supply programs between refineries and myriad distribution facilities dotting the coastline. It wasn’t always like that.
MXB Begins Physical Operations in Mumbai
Matrix Bharat Pte. Ltd. (MXB), a supplier of marine fuels in India, has begun physical operations in Mumbai. In conjunction with this, MXB has commenced operations on Jawahar Dweep, an island off the southeastern coast of Mumbai. MXB is a joint venture between Matrix Marine Fuels and Bharat Petroleum Corporation Ltd. (BPCL), one of India’s largest PSU (state owned) oil refining and marketing companies. The company will provide physical products at Mumbai’s Outer Port Limits (OPL), servicing vessels that are waiting to berth, as well as vessels making bunker-only-calls.
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.
Op/Ed: Shipping's Energy Challenge
There is no more economically and environmentally efficient way of transporting the world’s goods than by sea. Compared to air or road freight, based on per ton of cargo shipped, shipping’s carbon footprint is small. Yet with the 60,000 or so ships that transport 80 percent of the world’s goods emitting about 1.12bn tons of CO2 each year, almost 4.5 percent of all global greenhouse gas emissions, it is unequivocal that we need a viable way of reducing our environment impact. As other sectors reduce their carbon footprint shipping’s is likely to increase as an overall percentage.
Iran’s Gasoline Imports Plunge
Iran's gasoline imports decreased from 12 million liters per day (ml/d) in the first half of current fiscal year to 4 ml/d currently, says Seyyed Mohsen Ghamsari, the director for international affairs of the National Iranian Oil Company (NIOC). “The current figure for gasoline imports stands at four million liters,” he highlighted, expecting further decline in imports of the oil product in the second half of the current year. Ghamsari said fuel oil and liquefied petroleum gas (LPG) are also being shipped abroad with the figure for fuel oil being more than two million tons per month.
Challenges in Brazil Could Benefit Tanker Markets
Brazil stays in the spotlight - Tanker Research & Consulting department at Poten & Partners takes a look at the tanker market in the country. The Rio Olympics were successfully concluded on August 21. Ten days later, on Wednesday, August 31, Brazil’s Senate voted 61-20 to remove Dilma Rousseff as president of the most populous country in Latin America. Ms. Rousseff was accused of using illegal bookkeeping maneuvers to cover up a growing budget deficit. Interim president (and former vice president) Michel Temer will finish out her term, which runs through the end of 2018.
Saudi Aramco, Shell to Break up, Divide Motiva Assets
Shell and Saudi Aramco on Wednesday announced plans to break up Motiva Enterprises LLC and divide up the assets, almost two decades after the U.S. oil refining and marketing joint venture was formed. Under the terms of a non-binding letter of intent, Saudi Aramco will retain the Motiva name, assume sole ownership of the Port Arthur, Texas refinery, the biggest in the United States, and retain 26 distribution terminals, according to a statement. It will also have an exclusive license to use the Shell brand for gasoline and diesel sales in Texas…