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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, 07 September 17
CAPESIZE: EARNINGS FOR THE BIG SHIPS KEEP UP NICELY AS DIPS ARE MODERATE AND SHORT-LIVED - FEARNLEYS
Supramax
Fewer activities in the Atlantic in start of the week with the US holidays. Owners were asking around low USD 20k for trip ex USG to Far ...
Thursday, 07 September 17
TALK OF CONSTRAINTS ON CHINESE COAL OUTPUT PUSHED PRICES HIGHER - DANIEL HYNES
Commodity markets were largely higher as a weaker USD boosted investor appetite.
According to Daniel Hynes, Senior Commodity Strategist at ANZ ...
Wednesday, 06 September 17
LAYTIME - CHARTERERS' RIGHTS & PORT COSTS - NORTH P&I CLUB
KNOWLEDGE TO ELEVATE
In a recent London Arbitration decision (18/17) the Tribunal had to consider whether the owners were entitled to recover ...
Wednesday, 06 September 17
SHIPPING MARKET INSIGHT - STELIOS KOLLINTZAS
The impact of Hurricane Harvey, which made landfall on 25th of August in South East coastline of Texas area has been the major concern of the shipp ...
Tuesday, 05 September 17
COAL: A STRONG MOVEMENT IN THE COAL MARKET OVER THE SUMMER MONTHS - GEORGE LAZARIDIS
We have been witnessing a strong movement in the coal market over the summer months something that has not only helped boost prices for the commodi ...
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Showing 1951 to 1955 news of total 6871 |
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- Sree Jayajothi Cements Limited - India
- Electricity Generating Authority of Thailand
- Chettinad Cement Corporation Ltd - India
- Siam City Cement PLC, Thailand
- IEA Clean Coal Centre - UK
- Medco Energi Mining Internasional
- Coalindo Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Videocon Industries ltd - India
- Kobexindo Tractors - Indoneisa
- Eastern Coal Council - USA
- Asmin Koalindo Tuhup - Indonesia
- Sarangani Energy Corporation, Philippines
- Semirara Mining and Power Corporation, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Sojitz Corporation - Japan
- Ministry of Transport, Egypt
- Mercuria Energy - Indonesia
- Goldman Sachs - Singapore
- Singapore Mercantile Exchange
- GMR Energy Limited - India
- Star Paper Mills Limited - India
- Parliament of New Zealand
- Global Business Power Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Marubeni Corporation - India
- Deloitte Consulting - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- LBH Netherlands Bv - Netherlands
- Eastern Energy - Thailand
- Karbindo Abesyapradhi - Indoneisa
- Ceylon Electricity Board - Sri Lanka
- Indika Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Agrawal Coal Company - India
- Petron Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Timah Investasi Mineral - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- VISA Power Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Interocean Group of Companies - India
- Power Finance Corporation Ltd., India
- Ambuja Cements Ltd - India
- Globalindo Alam Lestari - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Jindal Steel & Power Ltd - India
- Kaltim Prima Coal - Indonesia
- Mercator Lines Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Formosa Plastics Group - Taiwan
- Indogreen Group - Indonesia
- Commonwealth Bank - Australia
- Tata Chemicals Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Coal and Oil Company - UAE
- SMC Global Power, Philippines
- Kideco Jaya Agung - Indonesia
- New Zealand Coal & Carbon
- Directorate Of Revenue Intelligence - India
- White Energy Company Limited
- PNOC Exploration Corporation - Philippines
- Renaissance Capital - South Africa
- Romanian Commodities Exchange
- Bulk Trading Sa - Switzerland
- CIMB Investment Bank - Malaysia
- Lanco Infratech Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Siam City Cement - Thailand
- Bhoruka Overseas - Indonesia
- ICICI Bank Limited - India
- Sakthi Sugars Limited - India
- South Luzon Thermal Energy Corporation
- GVK Power & Infra Limited - India
- Coastal Gujarat Power Limited - India
- Bhatia International Limited - India
- Australian Coal Association
- Karaikal Port Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- McConnell Dowell - Australia
- Alfred C Toepfer International GmbH - Germany
- Meenaskhi Energy Private Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bukit Makmur.PT - Indonesia
- Sical Logistics Limited - India
- PTC India Limited - India
- Orica Mining Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- IHS Mccloskey Coal Group - USA
- Carbofer General Trading SA - India
- Larsen & Toubro Limited - India
- OPG Power Generation Pvt Ltd - India
- Attock Cement Pakistan Limited
- Indonesian Coal Mining Association
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- Economic Council, Georgia
- Latin American Coal - Colombia
- Cigading International Bulk Terminal - Indonesia
- Bharathi Cement Corporation - India
- Price Waterhouse Coopers - Russia
- Leighton Contractors Pty Ltd - Australia
- MS Steel International - UAE
- Billiton Holdings Pty Ltd - Australia
- Bangladesh Power Developement Board
- San Jose City I Power Corp, Philippines
- Dalmia Cement Bharat India
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- CNBM International Corporation - China
- Trasteel International SA, Italy
- The Treasury - Australian Government
- Neyveli Lignite Corporation Ltd, - India
- Madhucon Powers Ltd - India
- Kepco SPC Power Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Antam Resourcindo - Indonesia
- European Bulk Services B.V. - Netherlands
- Cement Manufacturers Association - India
- Minerals Council of Australia
- Aditya Birla Group - India
- Makarim & Taira - Indonesia
- Xindia Steels Limited - India
- Planning Commission, India
- Africa Commodities Group - South Africa
- Bhushan Steel Limited - India
- Borneo Indobara - Indonesia
- Malabar Cements Ltd - India
- SMG Consultants - Indonesia
- Edison Trading Spa - Italy
- Wilmar Investment Holdings
- India Bulls Power Limited - India
- The University of Queensland
- Krishnapatnam Port Company Ltd. - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kumho Petrochemical, South Korea
- Binh Thuan Hamico - Vietnam
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Mines - Canada
- Altura Mining Limited, Indonesia
- Thiess Contractors Indonesia
- Port Waratah Coal Services - Australia
- Vedanta Resources Plc - India
- Posco Energy - South Korea
- Standard Chartered Bank - UAE
- Bukit Baiduri Energy - Indonesia
- Savvy Resources Ltd - HongKong
- Iligan Light & Power Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Aboitiz Power Corporation - Philippines
- Barasentosa Lestari - Indonesia
- Tamil Nadu electricity Board
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- Bukit Asam (Persero) Tbk - Indonesia
- Mjunction Services Limited - India
- The State Trading Corporation of India Ltd
- GAC Shipping (India) Pvt Ltd
- Semirara Mining Corp, Philippines
- Global Green Power PLC Corporation, Philippines
- Merrill Lynch Commodities Europe
- Uttam Galva Steels Limited - India
- Central Java Power - Indonesia
- Jaiprakash Power Ventures ltd
- Samtan Co., Ltd - South Korea
- Georgia Ports Authority, United States
- Oldendorff Carriers - Singapore
- Chamber of Mines of South Africa
- Metalloyd Limited - United Kingdom
- Essar Steel Hazira Ltd - India
- Vizag Seaport Private Limited - India
- Indian Energy Exchange, India
- Grasim Industreis Ltd - India
- Indian Oil Corporation Limited
- Baramulti Group, Indonesia
- Ministry of Finance - Indonesia
- Salva Resources Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Central Electricity Authority - India
- Manunggal Multi Energi - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Intertek Mineral Services - Indonesia
- Independent Power Producers Association of India
- Gujarat Sidhee Cement - India
- Anglo American - United Kingdom
- ASAPP Information Group - India
- Global Coal Blending Company Limited - Australia
- TNB Fuel Sdn Bhd - Malaysia
- Pendopo Energi Batubara - Indonesia
- Heidelberg Cement - Germany
- SN Aboitiz Power Inc, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Mintek Dendrill Indonesia
- Rio Tinto Coal - Australia
- Indo Tambangraya Megah - Indonesia
- Australian Commodity Traders Exchange
- Directorate General of MIneral and Coal - Indonesia
- Meralco Power Generation, Philippines
- International Coal Ventures Pvt Ltd - India
- Wood Mackenzie - Singapore
- Simpson Spence & Young - Indonesia
- Electricity Authority, New Zealand
- London Commodity Brokers - England
- Bayan Resources Tbk. - Indonesia
- Riau Bara Harum - Indonesia
- TeaM Sual Corporation - Philippines
- PowerSource Philippines DevCo
- Parry Sugars Refinery, India
- Energy Link Ltd, New Zealand
- Energy Development Corp, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Thai Mozambique Logistica
- Jorong Barutama Greston.PT - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
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