Platts News

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…

16 Oct 2019

BIMCO’s Sand to Offer Boxship Insight in Athens

Caption: Accumulated container volumes on the Far East – Europe trade lane are up 4.6% y-o-y. The CCFI has fallen to an index level of 987, down -9% from the same period last year. 2 (Chart: BIMCO)

BIMCO’s Chief Shipping Analyst, Peter Sand, will be speaking and providing the audience with unique insights on the container market at the European Shipping Seminar on November 27, 2019 in Athens, Greece.The European Shipping Seminar, hosted by S&P Global Platts, will discuss the various topics relating to the commercial shipping markets and take a deep dive into how the shipping industry will navigate its way through the uncertain environment of the IMO 2020 Sulphur Cap.Container shipping outlookBIMCO has persistently stressed that trade wars and protectionism are negative for shipping.

09 Oct 2019

ICE Reports Milestone Trading of LNG Contracts

Image: ICE

Intercontinental Exchange, operator of global exchanges and clearing houses and provider of data and listings services,  reported new milestones in the trading of the TTF natural gas and JKM LNG (Platts) contracts.In September, TTF Futures and Options hit an all-time monthly volume record of more than two million lots (2,023,848), equivalent to 1,484 TWh. TTF Futures set a new daily volume record on September 10 of 193,695 lots, equivalent to 142.1 TWh.TTF is the most liquid European natural gas benchmark…

11 Sep 2019

IBIA, S&P Partner to Encourage IMO2020

Graph: S&P Global Platts

The International Bunker Industry Association (IBIA) and price-reporting agency S&P Global Platts are to work together to help market participants across the shipping ecosystem prepare ahead of the implementation of the International Maritime Organization (IMO) low sulfur marine fuel regulations in January 2020.Unni Einemo, Director of IBIA and its representative at the IMO said: "We are very pleased to work with S&P Global Platts in bringing industry stakeholders the tools they…

09 Sep 2019

New Ship Emission Regs: Dirty Fuel Down but Not Out

File Image / AdobeStock / © dbvirago

Asia's spot premium for 380-centistoke (cst) high-sulphur fuel oil (HSFO) is expected to ease gradually from its recent record highs as shippers adopt cleaner marine fuels next year to meet new, tougher rules on emissions from ships.But as the deadline approaches, analysts and traders agree that demand for the dirtier HSFO will not die out completely as an increasing number of ships get equipped with sulphur-cleaning devices in the coming years to combat pollution.Starting Jan.

01 Aug 2019

Global LNG Demand 16% Up in Q2

Pic: GasLog

Global liquefied natural gas (LNG) demand was 86 million tonnes (mt) in the second quarter, compared with 74 mt in the second quarter of 2018, an increase of 16%, said GasLog Ltd.The Monaco-headquartered international owner, operator and manager of liquefied LNG carriers said that higher European imports (up 110% year-on-year) accounted for most of the growth, while demand from Northeast Asia (Japan, China, South Korea and Taiwan) was flat year-on-year, according to Poten.Natural…

30 Jul 2019

ICE Launches More Marine Futures Contracts

Image: International Maritime Organization

Intercontinental Exchange (ICE), the operator of global exchanges and clearing houses and provider of data and listings services, launched a further nine Marine Fuel 0.5% futures contracts in advance of the implementation of the 0.5% sulfur cap by the International Maritime Organization (IMO) in January 2020.The American company that owns exchanges for financial and commodity markets announced that its new futures contracts expand the existing suite of Marine Fuel contracts launched…

12 Jul 2019

U.S. Oil Makes it to Ukraine, a blow to Moscow

© RealPhotoItaly/Adobe Stock

U.S. crude exports are gaining traction in Europe as even Ukraine turns into a significant consumer of American barrels at the expense of Russian supplies amid heightened U.S. political pressure on Moscow and problems over contaminated Russian oil.Ukraine this month received its first ever barrels from the United States, according to Refinitiv Eikon flows data, as the tanker Wisdom Venture unloaded 80,000 tonnes of Bakken crude in Odessa on July 6 for the Kremenchug refinery,…

23 May 2019

Shipowners See Increase in IMO-Compliant Fuels, But Doubts Persist

Shipowners, who are facing one of the biggest changes in the oil industry in decades, are seeing more fuels that will be compliant with new rules on sulphur emissions from ships, but some say the way forward is far from clear.The United Nations shipping agency the International Maritime Organization (IMO) will from January 2020 limit the sulphur content in fuel ships use to 0.5%.With the exception of some zones around northwest Europe and North America known as Emission Control Areas where maximum sulphur content is restricted to 0.1% sulphur, the current global cap is 3.5%.The sulphur switch will be a mammoth task as it requires adapting the 300 million tonne a year bunker fuel market…

12 Apr 2019

U.S. LNG Shipments Fall to Six-Month Nadir

cheneire's Sabine Pass Terminal. CREDIT: Cheneire

U.S. shipments of liquefied natural gas are expected to fall to their lowest level in six months in April, after a leading U.S. supplier shut units for maintenance at a time when a glut of supply has driven some worldwide prices to near three-year lows.Based on exports through April 10, the United States is on track to sell roughly 91.5 billion cubic feet per day (bcfd) of natural gas as LNG, which would be the lowest since October. That compares with an estimated record 139.8 bcfd shipped in March…

08 Apr 2019

Platts to Launch Marine Fuel Derivatives Prices

S&P Global Platts will publish assessments for financially settled derivatives contracts that settle against its physical 0.5 percent sulphur marine fuel assessments in Asia, the Middle East, Europe and the United States from May 2, it said.Platts launched physical marine fuel 0.5 percent cargo and barge assessments  globally on January 2, 2019.(Reporting by Ahmad Ghaddar; Editing by Jan Harvey)

06 Mar 2019

Torm Joins Inatech for IMO 2020 Bunker App

Pic: Torm

Danish product tanker operator Torm has joined Glencore subsidiary Inatech on an app to tackle the anticipated complex bunkering landscape in shipping post-2020.Inatech, which specialises in energy trading risk management systems, has built the ‘Smart Trader’ app to enable companies to map their entire fleet of ships and visualise best routes given sea and port conditions to achieve lowest prices for the desired quality of fuel.The toolkit leverages bunker alerts and pricing data from S&P Global Platts…

11 Dec 2018

Trafigura Boosts LNG Volumes by 22%

 File Photo: Singapore LNG Corporation (SLNG)

Geneva based commodity trading company Trafigura increased its liquefied natural gas (LNG) traded volumes by 22% to 9.9 million mt in its financial year ending September 30 2018, driven by sales to China and South Korea, with the Asian share of our LNG business jumping to 30 percent.According to the annual report from the multinational commodity trading company, which is legally registered in Singapore,  the big story in the LNG market in 2018 was a surge in demand in Asia. In China…

09 Dec 2018

Tellurian in LNG Supply Deal with Vitol

Pic: Vitol

Tellurian announced that its subsidiary, Tellurian Trading, has entered into a Memorandum of Understanding (MOU) with Vitol to supply 1.5 million tonnes per annum of liquefied natural gas (LNG) from Tellurian Trading’s LNG offtake capacity at the proposed Driftwood LNG export terminal.According to a press release, the transaction price is based on the Platts Japan Korea Marker (JKM) and is for a minimum term of 15 years.Under the MOU, Tellurian and Vitol have agreed to negotiate a LNG Sale and Purchase Agreement (SPA) under which Vitol will purchase LNG free on board (FOB).

02 Nov 2018

Big Oil Set to Cash in on IMO 2020 Rules

File Image (CREDIT AdobeStock / © bvigaro

The world's biggest oil traders are gearing up to cash in on big disruptions that could hit the shipping fuel market in just over a year due to new U.N.-mandated environmental rules.International Maritime Organization (IMO) regulations will cut the limit for sulphur in marine fuels globally from 3.5 percent to 0.5 percent from the start of 2020."We're going to hopefully facilitate the new rules in 2020 by helping out the industry and the participants in general to have a reasonably smooth transition…

01 Nov 2018

Cautious Consolidation for OSV Companies Brings Market Change

A Gulfmark offshore support vessel (CREDIT: Gulfmark)

Will a rising tide in the offshore oil markets float all the boats? In the U.S. Gulf of Mexico, that remains to be seen.Offshore services, exploration and production are on a roll. In early October, yet another business combination of big drillers was announced. In a sign of optimism, Ensco announced its plan for an all-stock acquisition of Rowan Offshore, worth around $2.4 billion. The new company will be domiciled in the United Kingdom, but will have a large presence in Houston.

01 Jun 2018

AGL Decision on LNG Import Terminal Expected in FY2019

AGL Energy Ltd, Australia's biggest power producer, expects to make a final investment decision on the country's first liquefied natural gas (LNG) import terminal in the financial year of 2019, a company official said on Friday.The A$250 million ($189 million) project will consist of a leased floating storage and regasification unit (FSRU) and jetty at Crib Point in the southeastern state of Victoria. The terminal will handle up to 130 to 140 petajoules a year, or 2.6 million tonnes of LNG, by 2020 or 2021."We are working to progress the project to a final investment decision in the financial year 2019 and are on track to do that," said Phaedra Deckart…

01 Jun 2018

LNG Prices Climb on Limited Supply

© donvictori0 / Adobe Stock

Asian spot liquefied natural gas (LNG) prices rose this week to their highest since February as buying interest from China remained firm and as supply is expected to be limited during maintenance in August.Spot prices for July delivery in Asia were at $9.60 per million British thermal units (Btu) this week, gaining 40 cents from the previous week and are at the highest for this time of the year since 2014.Higher oil prices had been deterring some buyers from snapping up cargoes in the spot market in recent weeks but some of them may now need to cover their requirements promptly…

04 Jan 2018

Chelsea Technologies' Sea Sentry Secures ClassNK Certification

Photo: Chelsea Technologies

Chelsea Technologies announced that its Sea Sentry wash water monitoring system for ship exhaust gas cleaning systems has been certified by ClassNK, verifying compliance with IMO Annex VI wash water discharge regulations. Accurate monitoring for compliance with environmental regulations is a vital prerogative for the international shipping industry, particularly ahead of the 2020 global sulphur cap. Owners and operators are under increasing scrutiny to not only install costly compliance technologies but also to provide accurate data to demonstrate compliance…

09 Jan 2018

US Could Get First LNG Import from Russia despite Sanctions

Christopher De Margerie (Photo: SCF Group)

A vessel that may be carrying liquefied natural gas from Russia's new Yamal LNG export terminal could be heading to the United States despite sanctions against the company that operates the Russian facility, according to a report by S&P Global Platts and Thomson Reuters shipping data. The tanker Chris. De Margerie picked up a cargo from Novatek PAO's Yamal facility, Russia's second LNG export terminal, on Dec. 9 and dropped it off at National Grid Plc's Isle of Grain LNG facility near London on Dec. 28, according to Thomson Reuters data.

01 Feb 2018

Essar UK to Buy More US Crude in 2018

© Christopher Halloran / Adobe Stock

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.

14 Feb 2018

North Sea Crude-Forties Slips to Lowest Since mid-2017

File Image: CREDIT Fendercare

North Sea Forties crude differentials weakened on Wednesday to the lowest since mid-2017.   Gunvor sold a cargo from floating storage. Such sales are often seen as a sign of a plentifully supplied market.   PLATTS WINDOW Forties: Glencore bought from Gunvor a cargo loading on a ship-to-ship transfer basis from the Blue Pride on Feb. 28-March 2 at dated Brent minus 65 cents.   Gunvor also offered a Feb. 25-27 cargo at dated Brent minus 70 cents, meaning on average Forties was worth dated minus 70 cents, equalling the mid-2017 low reached on Monday. (Reporting by Alex Lawler

19 Apr 2018

Freeport LNG Delays Start of Texas Export Terminal

(Photo: Freeport LNG)

Freeport LNG, a privately held U.S. liquefied natural gas company, said on Thursday it pushed back the projected start date for its $13 billion export terminal under construction in Texas by about nine months to around Sept. 1, 2019.Freeport LNG now expects the first liquefaction train to enter service around Sept. 1, 2019, with the second and third trains seen in service around Jan. 1 and May 1, 2020, respectively, said Zdenek Gerych, a spokesman at Freeport.Previously, the three…

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