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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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- Deloitte Consulting - India
- Trasteel International SA, Italy
- Bhatia International Limited - India
- Makarim & Taira - Indonesia
- Kartika Selabumi Mining - Indonesia
- Lanco Infratech Ltd - India
- New Zealand Coal & Carbon
- Energy Development Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Tata Chemicals Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Iligan Light & Power Inc, Philippines
- Merrill Lynch Commodities Europe
- Sojitz Corporation - Japan
- Vizag Seaport Private Limited - India
- CNBM International Corporation - China
- Uttam Galva Steels Limited - India
- Planning Commission, India
- Maharashtra Electricity Regulatory Commission - India
- Banpu Public Company Limited - Thailand
- European Bulk Services B.V. - Netherlands
- Edison Trading Spa - Italy
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- Global Green Power PLC Corporation, Philippines
- ICICI Bank Limited - India
- Independent Power Producers Association of India
- Chamber of Mines of South Africa
- Kepco SPC Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Manunggal Multi Energi - Indonesia
- Altura Mining Limited, Indonesia
- Coalindo Energy - Indonesia
- Videocon Industries ltd - India
- Power Finance Corporation Ltd., India
- Africa Commodities Group - South Africa
- Therma Luzon, Inc, Philippines
- Mercuria Energy - Indonesia
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Bayan Resources Tbk. - Indonesia
- LBH Netherlands Bv - Netherlands
- Sarangani Energy Corporation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Ministry of Finance - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Orica Australia Pty. Ltd.
- Standard Chartered Bank - UAE
- Aboitiz Power Corporation - Philippines
- Billiton Holdings Pty Ltd - Australia
- Alfred C Toepfer International GmbH - Germany
- Larsen & Toubro Limited - India
- Thiess Contractors Indonesia
- Heidelberg Cement - Germany
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Essar Steel Hazira Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Commonwealth Bank - Australia
- PNOC Exploration Corporation - Philippines
- Price Waterhouse Coopers - Russia
- Bukit Asam (Persero) Tbk - Indonesia
- Bangladesh Power Developement Board
- Marubeni Corporation - India
- Agrawal Coal Company - India
- Bukit Makmur.PT - Indonesia
- Anglo American - United Kingdom
- Sical Logistics Limited - India
- Madhucon Powers Ltd - India
- Sakthi Sugars Limited - India
- Interocean Group of Companies - India
- Bharathi Cement Corporation - India
- South Luzon Thermal Energy Corporation
- Timah Investasi Mineral - Indoneisa
- Oldendorff Carriers - Singapore
- VISA Power Limited - India
- MS Steel International - UAE
- Indika Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Thai Mozambique Logistica
- Jorong Barutama Greston.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- Tamil Nadu electricity Board
- Carbofer General Trading SA - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kideco Jaya Agung - Indonesia
- Orica Mining Services - Indonesia
- The University of Queensland
- Mintek Dendrill Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Dalmia Cement Bharat India
- Baramulti Group, Indonesia
- Neyveli Lignite Corporation Ltd, - India
- India Bulls Power Limited - India
- SMG Consultants - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Ind-Barath Power Infra Limited - India
- Savvy Resources Ltd - HongKong
- Samtan Co., Ltd - South Korea
- Riau Bara Harum - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- London Commodity Brokers - England
- Holcim Trading Pte Ltd - Singapore
- Ceylon Electricity Board - Sri Lanka
- White Energy Company Limited
- Directorate General of MIneral and Coal - Indonesia
- Malabar Cements Ltd - India
- International Coal Ventures Pvt Ltd - India
- Australian Commodity Traders Exchange
- Cement Manufacturers Association - India
- Posco Energy - South Korea
- Bukit Baiduri Energy - Indonesia
- Energy Link Ltd, New Zealand
- GVK Power & Infra Limited - India
- ASAPP Information Group - India
- The Treasury - Australian Government
- Semirara Mining Corp, Philippines
- Sindya Power Generating Company Private Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vedanta Resources Plc - India
- Singapore Mercantile Exchange
- Sree Jayajothi Cements Limited - India
- Aditya Birla Group - India
- Wood Mackenzie - Singapore
- Borneo Indobara - Indonesia
- Global Business Power Corporation, Philippines
- Goldman Sachs - Singapore
- GMR Energy Limited - India
- Maheswari Brothers Coal Limited - India
- PTC India Limited - India
- Kapuas Tunggal Persada - Indonesia
- Jaiprakash Power Ventures ltd
- Bulk Trading Sa - Switzerland
- IHS Mccloskey Coal Group - USA
- SMC Global Power, Philippines
- Eastern Coal Council - USA
- Australian Coal Association
- Parliament of New Zealand
- Indogreen Group - Indonesia
- Mercator Lines Limited - India
- SN Aboitiz Power Inc, Philippines
- Indian Energy Exchange, India
- Siam City Cement - Thailand
- San Jose City I Power Corp, Philippines
- Port Waratah Coal Services - Australia
- Rashtriya Ispat Nigam Limited - India
- Kumho Petrochemical, South Korea
- Petron Corporation, Philippines
- Wilmar Investment Holdings
- Kobexindo Tractors - Indoneisa
- Simpson Spence & Young - Indonesia
- Bhushan Steel Limited - India
- The State Trading Corporation of India Ltd
- Electricity Generating Authority of Thailand
- Central Electricity Authority - India
- Intertek Mineral Services - Indonesia
- Rio Tinto Coal - Australia
- TeaM Sual Corporation - Philippines
- Indonesian Coal Mining Association
- Globalindo Alam Lestari - Indonesia
- Karaikal Port Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Xindia Steels Limited - India
- Siam City Cement PLC, Thailand
- Sinarmas Energy and Mining - Indonesia
- Gujarat Sidhee Cement - India
- Antam Resourcindo - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Electricity Authority, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Straits Asia Resources Limited - Singapore
- PowerSource Philippines DevCo
- Indian Oil Corporation Limited
- Minerals Council of Australia
- Indo Tambangraya Megah - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Binh Thuan Hamico - Vietnam
- Georgia Ports Authority, United States
- Grasim Industreis Ltd - India
- Latin American Coal - Colombia
- Renaissance Capital - South Africa
- Karbindo Abesyapradhi - Indoneisa
- Attock Cement Pakistan Limited
- Economic Council, Georgia
- Ministry of Mines - Canada
- OPG Power Generation Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Pendopo Energi Batubara - Indonesia
- Central Java Power - Indonesia
- Meralco Power Generation, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- McConnell Dowell - Australia
- Mjunction Services Limited - India
- Ministry of Transport, Egypt
- Asmin Koalindo Tuhup - Indonesia
- Star Paper Mills Limited - India
- Coal and Oil Company - UAE
- IEA Clean Coal Centre - UK
- Formosa Plastics Group - Taiwan
- Bahari Cakrawala Sebuku - Indonesia
- Barasentosa Lestari - Indonesia
- Parry Sugars Refinery, India
- Directorate Of Revenue Intelligence - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- GN Power Mariveles Coal Plant, Philippines
- Meenaskhi Energy Private Limited - India
- Medco Energi Mining Internasional
- Ambuja Cements Ltd - India
- Chettinad Cement Corporation Ltd - India
- Global Coal Blending Company Limited - Australia
- Toyota Tsusho Corporation, Japan
- Eastern Energy - Thailand
- Romanian Commodities Exchange
- Coastal Gujarat Power Limited - India
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