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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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Monday, 09 October 17
INDONESIAN COAL PRICE REFERENCE HITS NEW HIGH FOR 2017
COALspot.com: Indonesian coal benchmark price surges 2.13% in October month over month, the latest ministerial decree showed.
The benchmark pr ...
Monday, 09 October 17
INDIA'S COAL IMPORTS UP 10% IN SEPT AS POWER PLANTS FACE FUEL SHORTAGE - PTI
Coal imports rose by 9.5 per cent to 18.33 million tonnes (MT) in September, after having registered year-on-year decline for five months in a row, ...
Friday, 06 October 17
U.S. WEEKLY COAL OUTPUT HAS REBOUNDED AFTER DECLINING 5 WEEKS IN A ROW
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 15.3 million short tons ...
Wednesday, 04 October 17
SHIPPING MARKET INSIGHT - GEORGE ILIOPOULOS
During the past couple of months the dry bulk market has displayed particularly strong momentum and we have been witnessing steady appetite and act ...
Tuesday, 03 October 17
VIETNAM'S COAL-FIRED THERMAL POWER DEPENDENT ON CHINA - VIETNAMNET BRIDGE
A report from the Green Innovation and Development Centre (GreenID) showed that, as of the end of last year, of 27 coal-fired thermopower plants, 1 ...
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Showing 1921 to 1925 news of total 6871 |
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- South Luzon Thermal Energy Corporation
- Deloitte Consulting - India
- Krishnapatnam Port Company Ltd. - India
- Bhushan Steel Limited - India
- Sical Logistics Limited - India
- PowerSource Philippines DevCo
- Merrill Lynch Commodities Europe
- Sindya Power Generating Company Private Ltd
- Chamber of Mines of South Africa
- Kohat Cement Company Ltd. - Pakistan
- Gujarat Mineral Development Corp Ltd - India
- GMR Energy Limited - India
- Malabar Cements Ltd - India
- Lanco Infratech Ltd - India
- Vedanta Resources Plc - India
- Straits Asia Resources Limited - Singapore
- Essar Steel Hazira Ltd - India
- Planning Commission, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Meenaskhi Energy Private Limited - India
- Leighton Contractors Pty Ltd - Australia
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- White Energy Company Limited
- Manunggal Multi Energi - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Kumho Petrochemical, South Korea
- Heidelberg Cement - Germany
- Orica Mining Services - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- VISA Power Limited - India
- Interocean Group of Companies - India
- Tamil Nadu electricity Board
- Billiton Holdings Pty Ltd - Australia
- Borneo Indobara - Indonesia
- Eastern Energy - Thailand
- Indika Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Africa Commodities Group - South Africa
- CIMB Investment Bank - Malaysia
- Kalimantan Lumbung Energi - Indonesia
- Cement Manufacturers Association - India
- GAC Shipping (India) Pvt Ltd
- Riau Bara Harum - Indonesia
- Electricity Authority, New Zealand
- Toyota Tsusho Corporation, Japan
- Indonesian Coal Mining Association
- Australian Commodity Traders Exchange
- SMC Global Power, Philippines
- Georgia Ports Authority, United States
- Indogreen Group - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Coalindo Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Chettinad Cement Corporation Ltd - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- MS Steel International - UAE
- Trasteel International SA, Italy
- Global Coal Blending Company Limited - Australia
- Bhatia International Limited - India
- Port Waratah Coal Services - Australia
- New Zealand Coal & Carbon
- India Bulls Power Limited - India
- Medco Energi Mining Internasional
- TNB Fuel Sdn Bhd - Malaysia
- Videocon Industries ltd - India
- Siam City Cement PLC, Thailand
- Ambuja Cements Ltd - India
- Wilmar Investment Holdings
- The Treasury - Australian Government
- Ministry of Finance - Indonesia
- Samtan Co., Ltd - South Korea
- Global Green Power PLC Corporation, Philippines
- Tata Chemicals Ltd - India
- PTC India Limited - India
- Petron Corporation, Philippines
- CNBM International Corporation - China
- Australian Coal Association
- Ind-Barath Power Infra Limited - India
- Simpson Spence & Young - Indonesia
- Independent Power Producers Association of India
- Coastal Gujarat Power Limited - India
- Bhoruka Overseas - Indonesia
- Thai Mozambique Logistica
- Uttam Galva Steels Limited - India
- Bayan Resources Tbk. - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Anglo American - United Kingdom
- Jindal Steel & Power Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Ministry of Mines - Canada
- Aditya Birla Group - India
- International Coal Ventures Pvt Ltd - India
- Xindia Steels Limited - India
- Parry Sugars Refinery, India
- Karaikal Port Pvt Ltd - India
- Mercator Lines Limited - India
- IEA Clean Coal Centre - UK
- Orica Australia Pty. Ltd.
- Dalmia Cement Bharat India
- Rio Tinto Coal - Australia
- Mercuria Energy - Indonesia
- Pendopo Energi Batubara - Indonesia
- Renaissance Capital - South Africa
- McConnell Dowell - Australia
- Bukit Makmur.PT - Indonesia
- Power Finance Corporation Ltd., India
- Bulk Trading Sa - Switzerland
- Karbindo Abesyapradhi - Indoneisa
- Sinarmas Energy and Mining - Indonesia
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- ICICI Bank Limited - India
- Kobexindo Tractors - Indoneisa
- Meralco Power Generation, Philippines
- Agrawal Coal Company - India
- Alfred C Toepfer International GmbH - Germany
- Sarangani Energy Corporation, Philippines
- Latin American Coal - Colombia
- Grasim Industreis Ltd - India
- Energy Development Corp, Philippines
- Carbofer General Trading SA - India
- SMG Consultants - Indonesia
- Siam City Cement - Thailand
- The State Trading Corporation of India Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Asmin Koalindo Tuhup - Indonesia
- Directorate Of Revenue Intelligence - India
- Sakthi Sugars Limited - India
- Makarim & Taira - Indonesia
- Goldman Sachs - Singapore
- Bharathi Cement Corporation - India
- Romanian Commodities Exchange
- Coal and Oil Company - UAE
- SN Aboitiz Power Inc, Philippines
- Wood Mackenzie - Singapore
- Marubeni Corporation - India
- Singapore Mercantile Exchange
- Bangladesh Power Developement Board
- Baramulti Group, Indonesia
- Commonwealth Bank - Australia
- Semirara Mining and Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Indo Tambangraya Megah - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Parliament of New Zealand
- Kaltim Prima Coal - Indonesia
- ASAPP Information Group - India
- Maharashtra Electricity Regulatory Commission - India
- Globalindo Alam Lestari - Indonesia
- Intertek Mineral Services - Indonesia
- GVK Power & Infra Limited - India
- Jaiprakash Power Ventures ltd
- Kepco SPC Power Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Savvy Resources Ltd - HongKong
- Miang Besar Coal Terminal - Indonesia
- London Commodity Brokers - England
- Indian Energy Exchange, India
- Therma Luzon, Inc, Philippines
- The University of Queensland
- Petrochimia International Co. Ltd.- Taiwan
- Star Paper Mills Limited - India
- Ceylon Electricity Board - Sri Lanka
- Salva Resources Pvt Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Altura Mining Limited, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- IHS Mccloskey Coal Group - USA
- PNOC Exploration Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Price Waterhouse Coopers - Russia
- Larsen & Toubro Limited - India
- Formosa Plastics Group - Taiwan
- Antam Resourcindo - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Energy Link Ltd, New Zealand
- Sree Jayajothi Cements Limited - India
- PetroVietnam Power Coal Import and Supply Company
- OPG Power Generation Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- Vizag Seaport Private Limited - India
- Mintek Dendrill Indonesia
- Posco Energy - South Korea
- AsiaOL BioFuels Corp., Philippines
- Iligan Light & Power Inc, Philippines
- Semirara Mining Corp, Philippines
- Madhucon Powers Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- LBH Netherlands Bv - Netherlands
- Standard Chartered Bank - UAE
- Global Business Power Corporation, Philippines
- Thiess Contractors Indonesia
- Economic Council, Georgia
- Edison Trading Spa - Italy
- Pipit Mutiara Jaya. PT, Indonesia
- Sojitz Corporation - Japan
- Electricity Generating Authority of Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Oldendorff Carriers - Singapore
- Eastern Coal Council - USA
- Mjunction Services Limited - India
- Cigading International Bulk Terminal - Indonesia
- San Jose City I Power Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Barasentosa Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- Ministry of Transport, Egypt
- Maheswari Brothers Coal Limited - India
- Minerals Council of Australia
- Attock Cement Pakistan Limited
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