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Friday, 08 September 17
MIXED SIGNALS ON REFINERY PREPARATIONS FOR 2020 FUEL CHANGES - IBIA
A recent consultancy survey has suggested that some 85% of refiners have not made plans for how to deal with the expected dramatic fall in global demand for high sulphur fuel oil (HSFO) in 2020. However, some refineries have made recent announcements showing that they are making production changes, or are thinking about it.
In July, reports emerged that a new survey conducted by consulting company KBC found only 15% of oil refiners know how they are going to handle the shift in demand associated with the drop in the global sulphur limit for marine fuels from today’s 3.50% to 0.50% at the start of 2020. KBC surveyed refiners across the US, Europe, the Former Soviet Union and South Africa about their attitudes to the upcoming regulation.
A report published by KBC in April this year says the 2020 sulphur limit for marine fuels will likely see more than 2 million barrels per day (b/d) of HSFO become “stranded in the market” as ships shift to low sulphur fuels to comply. The KBC report said industry feedback indicated that maybe 10-15% of ships will have installed scrubbers that will enable them to continue to use HSFO compliantly by 2020.
A key observation in the KBC and several other reports is that refiners need to find an outlet for HSFO because it is an inevitable by-product of refinery operations, and if they cannot dispose of it they will be forced to cut overall production or even shut down. The least complex refineries with a high HSFO yield are most at risk, while complex refineries with fluid catalytic cracking and coking conversion facilities can reduce their HSFO yield to 3% or less of the total output.
The problem facing the refining industry, and by extension the marine fuels industry, is that major refinery conversions to reduce HSFO and produce more low sulphur distillate fuels are costly and take time to implement, meaning big investments that haven’t already been planned and approved are unlikely to be operational in time for 2020. And as the uptake of scrubbers may increase fast after 2020, demand for, and hence the value of HSFO could recover, creating uncertainty for refiners contemplating their options. Other tweaks are possible in the short term, such as using sweet crude oil as feedstock, but it is expected that the price differential between light sweet and heavy sour crude oils will increase.
Meanwhile, some refiners are signalling that they are taking notice of the International Maritime Organization’s decision to implement the 0.50% sulphur limit in 2020, and are planning changes in their production profiles in response to the impact of regulation.
One is the management of the Rheinland refinery in Wesseling, Germany, owned by the oil major Shell. It is currently investigating the possibility of expanding the residue processing plant at this refinery because “the high-sulfur residues used so far for the manufacture of marine fuels will no longer be marketable” as a result of the IMO’s 2020 sulphur regulation.
The refinery, which has an overall annual capacity of around 16-17 million tonnes, has yet to submit formal official documents for these plans but has held initial talks with politicians and environmental associations to present preliminary plans for a potential investment project. It means no detailed information is yet available about the scale, cost and timing of the project and it is uncertain if it will be ready in time for 2020. The refinery management said further talks are planned.
Another refiner, Par Petroleum, has gone public with plans to upgrade its Hawaii refinery to cut HSFO output and produce more high-value ultra low sulphur diesel (ULSD) and jet fuel at the plant. The plan is adding a 10,000 barrels per day diesel hydrotreater at the 93,000 b/d plant, which will reduce fuel oil product yields at the refinery by 4%, CEO Joseph Israel told S&P Global Platts in an interview in early August.
Although the refinery’s HSFO output is mainly used by local power stations to make electricity on Hawaii or shipped to the Far East, the refiner’s decision is linked to expectations of lower demand and a very low price for HSFO from the start of 2020, and better margins for ULSD.
The unit is slated to come online in the first quarter of 2019, and the cost of construction is said to be kept low, at $27 million, because the refinery already has a hydrogen plant with sufficient capacity and is currently making more hydrogen than the refinery uses.
The 2020 sulphur limit is expected to push up demand for low sulphur distillates to blend compliant marine fuels. S&P Global Platts said global demand for ULSD is expected to rise by 3.5 million b/d by 2020.
For the Par refinery, an important consideration for the investment was that the new refinery unit will have the flexibility to switch between making jet fuel or ULSD, depending on the margins at the time. At present, no jet fuel is produced locally, but it accounts for about half of all transportation fuels consumed in Hawaii.
It seems the 2020 sulphur regulation impact is increasingly on the radar for refiners, but while they may struggle to find markets for HSFO that has previously gone into the marine fuel pool in 2020, that does not guarantee that they will focus on producing compliant marine fuels. Some will, if they think the price is right and marine fuels will become a lucrative market, others will focus on inland markets.
by Unni Einemo, IBIA
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Thursday, 14 September 17
THE FIRM COAL TRADE IS SUPPORTING SUPRAS; FIXING AROUND LOW $13000 WITH DELIVERY THAILAND - FEARNLEYS
Supramax
This week has brought Supras firm rates and numerous orders. Scrap orders from Cont to Med still pay $11000 and Fertilizer from Baltic t ...
Thursday, 14 September 17
KOMIPO INVITED BIDS FOR 5700 NAR BITUMINOUS COAL FOR BORYEONG POWER PLANT; 390K MT FOR NOV LOADING
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued an another new tender for 390,000 Metric Tons of Bituminous coal ...
Wednesday, 13 September 17
U.S. COAL EXPORTS FOR THE FIRST SIX MONTHS OF 2017 WERE 55% HIGHER COMPARED TO THE SAME PERIOD IN 2016 - EIA
COALspot.com: EIA expects the share of U.S. total utility-scale electricity generation from natural gas to fall from an average of 34% in 2016 to a ...
Wednesday, 13 September 17
SOME THOUGHTS ON NORTH KOREA, US & CHINA - THEODORE NTALAKOS
The trade volume between North Korea and China is more than $5 billion per year. 83% of North Korea's exports end up in China; similarly, about ...
Tuesday, 12 September 17
NEWCASTLE FOB PRICES ROSE STRONGLY AND ARE NOW THREATENING TO BREAK THROUGH US$100/T - DANIEL HYNES
COALspot.com: The rise in crude oil market supported further gains in thermal coal, says Daniel Hynes Senior Commodity Strategist at ANZ.
Acco ...
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Showing 1941 to 1945 news of total 6871 |
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- Mjunction Services Limited - India
- Africa Commodities Group - South Africa
- Sojitz Corporation - Japan
- Iligan Light & Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Electricity Generating Authority of Thailand
- Energy Development Corp, Philippines
- India Bulls Power Limited - India
- Chettinad Cement Corporation Ltd - India
- Aboitiz Power Corporation - Philippines
- Heidelberg Cement - Germany
- Bayan Resources Tbk. - Indonesia
- Maheswari Brothers Coal Limited - India
- ICICI Bank Limited - India
- Singapore Mercantile Exchange
- Vedanta Resources Plc - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Oldendorff Carriers - Singapore
- Binh Thuan Hamico - Vietnam
- Commonwealth Bank - Australia
- Intertek Mineral Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- GAC Shipping (India) Pvt Ltd
- PetroVietnam Power Coal Import and Supply Company
- Electricity Authority, New Zealand
- Thai Mozambique Logistica
- European Bulk Services B.V. - Netherlands
- International Coal Ventures Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Economic Council, Georgia
- Sree Jayajothi Cements Limited - India
- Price Waterhouse Coopers - Russia
- Chamber of Mines of South Africa
- Mercator Lines Limited - India
- Vizag Seaport Private Limited - India
- Australian Coal Association
- Makarim & Taira - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Salva Resources Pvt Ltd - India
- Minerals Council of Australia
- Agrawal Coal Company - India
- The University of Queensland
- White Energy Company Limited
- Pipit Mutiara Jaya. PT, Indonesia
- Eastern Energy - Thailand
- Coalindo Energy - Indonesia
- The State Trading Corporation of India Ltd
- Sical Logistics Limited - India
- Ceylon Electricity Board - Sri Lanka
- Leighton Contractors Pty Ltd - Australia
- Bukit Makmur.PT - Indonesia
- Eastern Coal Council - USA
- Ind-Barath Power Infra Limited - India
- Uttam Galva Steels Limited - India
- Australian Commodity Traders Exchange
- Meralco Power Generation, Philippines
- Siam City Cement - Thailand
- Power Finance Corporation Ltd., India
- Karbindo Abesyapradhi - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- VISA Power Limited - India
- Marubeni Corporation - India
- Holcim Trading Pte Ltd - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Billiton Holdings Pty Ltd - Australia
- Orica Mining Services - Indonesia
- Orica Australia Pty. Ltd.
- Simpson Spence & Young - Indonesia
- Bharathi Cement Corporation - India
- Edison Trading Spa - Italy
- Deloitte Consulting - India
- Global Business Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Aditya Birla Group - India
- Port Waratah Coal Services - Australia
- Kaltim Prima Coal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Essar Steel Hazira Ltd - India
- Therma Luzon, Inc, Philippines
- Gujarat Electricity Regulatory Commission - India
- Meenaskhi Energy Private Limited - India
- Mintek Dendrill Indonesia
- Jaiprakash Power Ventures ltd
- Semirara Mining and Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- SMC Global Power, Philippines
- Jorong Barutama Greston.PT - Indonesia
- PowerSource Philippines DevCo
- Toyota Tsusho Corporation, Japan
- Mercuria Energy - Indonesia
- GVK Power & Infra Limited - India
- Interocean Group of Companies - India
- Sindya Power Generating Company Private Ltd
- CIMB Investment Bank - Malaysia
- Krishnapatnam Port Company Ltd. - India
- Coal and Oil Company - UAE
- McConnell Dowell - Australia
- Kobexindo Tractors - Indoneisa
- Altura Mining Limited, Indonesia
- Karaikal Port Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Bangladesh Power Developement Board
- Alfred C Toepfer International GmbH - Germany
- Antam Resourcindo - Indonesia
- Attock Cement Pakistan Limited
- Trasteel International SA, Italy
- Maharashtra Electricity Regulatory Commission - India
- Bhatia International Limited - India
- Indian Oil Corporation Limited
- Coastal Gujarat Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Global Green Power PLC Corporation, Philippines
- Bhushan Steel Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- Semirara Mining Corp, Philippines
- Samtan Co., Ltd - South Korea
- Malabar Cements Ltd - India
- Jindal Steel & Power Ltd - India
- Central Java Power - Indonesia
- London Commodity Brokers - England
- Wilmar Investment Holdings
- Larsen & Toubro Limited - India
- Bulk Trading Sa - Switzerland
- Bhoruka Overseas - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Romanian Commodities Exchange
- Manunggal Multi Energi - Indonesia
- South Luzon Thermal Energy Corporation
- Kideco Jaya Agung - Indonesia
- SN Aboitiz Power Inc, Philippines
- Merrill Lynch Commodities Europe
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Savvy Resources Ltd - HongKong
- Barasentosa Lestari - Indonesia
- Indika Energy - Indonesia
- Goldman Sachs - Singapore
- Renaissance Capital - South Africa
- Central Electricity Authority - India
- Sinarmas Energy and Mining - Indonesia
- Rio Tinto Coal - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- Directorate General of MIneral and Coal - Indonesia
- Pendopo Energi Batubara - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Baiduri Energy - Indonesia
- Videocon Industries ltd - India
- Rashtriya Ispat Nigam Limited - India
- Petron Corporation, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Straits Asia Resources Limited - Singapore
- Kohat Cement Company Ltd. - Pakistan
- Indo Tambangraya Megah - Indonesia
- Lanco Infratech Ltd - India
- New Zealand Coal & Carbon
- IEA Clean Coal Centre - UK
- Baramulti Group, Indonesia
- Banpu Public Company Limited - Thailand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Timah Investasi Mineral - Indoneisa
- Sakthi Sugars Limited - India
- Tamil Nadu electricity Board
- Medco Energi Mining Internasional
- PTC India Limited - India
- Xindia Steels Limited - India
- SMG Consultants - Indonesia
- Grasim Industreis Ltd - India
- Standard Chartered Bank - UAE
- Ambuja Cements Ltd - India
- Cement Manufacturers Association - India
- Tata Chemicals Ltd - India
- Wood Mackenzie - Singapore
- Dalmia Cement Bharat India
- PNOC Exploration Corporation - Philippines
- Globalindo Alam Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Metalloyd Limited - United Kingdom
- Formosa Plastics Group - Taiwan
- Star Paper Mills Limited - India
- Indogreen Group - Indonesia
- Madhucon Powers Ltd - India
- Anglo American - United Kingdom
- Independent Power Producers Association of India
- CNBM International Corporation - China
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Georgia Ports Authority, United States
- Parliament of New Zealand
- Kartika Selabumi Mining - Indonesia
- GMR Energy Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Thiess Contractors Indonesia
- Miang Besar Coal Terminal - Indonesia
- The Treasury - Australian Government
- Ministry of Mines - Canada
- San Jose City I Power Corp, Philippines
- Carbofer General Trading SA - India
- Indonesian Coal Mining Association
- Siam City Cement PLC, Thailand
- MS Steel International - UAE
- Planning Commission, India
- Gujarat Sidhee Cement - India
- Ministry of Finance - Indonesia
- Posco Energy - South Korea
- Borneo Indobara - Indonesia
- Kumho Petrochemical, South Korea
- Parry Sugars Refinery, India
- Indian Energy Exchange, India
- Energy Link Ltd, New Zealand
- Latin American Coal - Colombia
- Kepco SPC Power Corporation, Philippines
- Ministry of Transport, Egypt
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