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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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Friday, 01 September 17
U.S COAL OUTPUT DIPS WEEK OVER WEEK, SAYS EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 16.7 million short ton ...
Thursday, 31 August 17
SUPRAMAX: INDO TO CHINA COAL TRIPS AT AROUND $9000, DELIVERY THAILAND - FEARNLEYS
Supramax
A bit slow start to the week with UK holidays on Monday. Still strong rates for cargoes out of Black Sea, where front hauls where done $ ...
Tuesday, 29 August 17
WEEKLY SHIPPING MARKET ANALYSIS - ALLIED
In the aftermath of Hurricane Harvey, one of the worst disasters to hit Texas, we are now looking to get a clearer picture of the possible disrupti ...
Tuesday, 29 August 17
U.S WEEKLY COAL OUT UP 3.4% WEEK OVER WEEK TO APPROX. 17 MMST, SAYS EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totalled an estimated 17 million short tonne ...
Thursday, 24 August 17
SUPRAMAX: LOW $10K FOR INDO COAL TRIPS TO INDIA; AROUND $10K FOR INDO TO CHINA TRIPS - FEARNLEYS
Supramax
This week Supras from the Black Sea on fhaul have seen numerous orders and improving rates.
53-57k dwt vessels have been fixed at e ...
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Showing 1956 to 1960 news of total 6871 |
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- Trasteel International SA, Italy
- Bhushan Steel Limited - India
- Makarim & Taira - Indonesia
- GMR Energy Limited - India
- Kepco SPC Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Eastern Energy - Thailand
- Billiton Holdings Pty Ltd - Australia
- Bayan Resources Tbk. - Indonesia
- Metalloyd Limited - United Kingdom
- Barasentosa Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Manunggal Multi Energi - Indonesia
- Kartika Selabumi Mining - Indonesia
- Banpu Public Company Limited - Thailand
- Borneo Indobara - Indonesia
- Indonesian Coal Mining Association
- Singapore Mercantile Exchange
- Thiess Contractors Indonesia
- Central Electricity Authority - India
- Toyota Tsusho Corporation, Japan
- Parry Sugars Refinery, India
- Larsen & Toubro Limited - India
- Baramulti Group, Indonesia
- Attock Cement Pakistan Limited
- Standard Chartered Bank - UAE
- Sree Jayajothi Cements Limited - India
- Mjunction Services Limited - India
- Maharashtra Electricity Regulatory Commission - India
- PNOC Exploration Corporation - Philippines
- Sical Logistics Limited - India
- Rashtriya Ispat Nigam Limited - India
- Sindya Power Generating Company Private Ltd
- Simpson Spence & Young - Indonesia
- PowerSource Philippines DevCo
- Bharathi Cement Corporation - India
- Ministry of Mines - Canada
- SMC Global Power, Philippines
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Edison Trading Spa - Italy
- ICICI Bank Limited - India
- Petron Corporation, Philippines
- Kapuas Tunggal Persada - Indonesia
- Bukit Makmur.PT - Indonesia
- Global Green Power PLC Corporation, Philippines
- Aditya Birla Group - India
- Indogreen Group - Indonesia
- Agrawal Coal Company - India
- The State Trading Corporation of India Ltd
- Tamil Nadu electricity Board
- Posco Energy - South Korea
- AsiaOL BioFuels Corp., Philippines
- Semirara Mining and Power Corporation, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Pendopo Energi Batubara - Indonesia
- Planning Commission, India
- Gujarat Mineral Development Corp Ltd - India
- Central Java Power - Indonesia
- Binh Thuan Hamico - Vietnam
- Mintek Dendrill Indonesia
- Orica Mining Services - Indonesia
- Thai Mozambique Logistica
- Straits Asia Resources Limited - Singapore
- Altura Mining Limited, Indonesia
- Madhucon Powers Ltd - India
- Orica Australia Pty. Ltd.
- CNBM International Corporation - China
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Jaiprakash Power Ventures ltd
- White Energy Company Limited
- Holcim Trading Pte Ltd - Singapore
- Independent Power Producers Association of India
- Meenaskhi Energy Private Limited - India
- Intertek Mineral Services - Indonesia
- Iligan Light & Power Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Therma Luzon, Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Indo Tambangraya Megah - Indonesia
- TeaM Sual Corporation - Philippines
- Renaissance Capital - South Africa
- Interocean Group of Companies - India
- Chettinad Cement Corporation Ltd - India
- Latin American Coal - Colombia
- Heidelberg Cement - Germany
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Semirara Mining Corp, Philippines
- Carbofer General Trading SA - India
- Ministry of Transport, Egypt
- PetroVietnam Power Coal Import and Supply Company
- IHS Mccloskey Coal Group - USA
- Meralco Power Generation, Philippines
- Sakthi Sugars Limited - India
- Malabar Cements Ltd - India
- MS Steel International - UAE
- OPG Power Generation Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Energy Link Ltd, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Coal Blending Company Limited - Australia
- SMG Consultants - Indonesia
- Electricity Authority, New Zealand
- ASAPP Information Group - India
- Globalindo Alam Lestari - Indonesia
- Wilmar Investment Holdings
- CIMB Investment Bank - Malaysia
- McConnell Dowell - Australia
- Lanco Infratech Ltd - India
- Parliament of New Zealand
- European Bulk Services B.V. - Netherlands
- Bukit Baiduri Energy - Indonesia
- Medco Energi Mining Internasional
- Ceylon Electricity Board - Sri Lanka
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Grasim Industreis Ltd - India
- Coal and Oil Company - UAE
- Krishnapatnam Port Company Ltd. - India
- London Commodity Brokers - England
- TNB Fuel Sdn Bhd - Malaysia
- Alfred C Toepfer International GmbH - Germany
- Commonwealth Bank - Australia
- Global Business Power Corporation, Philippines
- Savvy Resources Ltd - HongKong
- Bulk Trading Sa - Switzerland
- Economic Council, Georgia
- Rio Tinto Coal - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vedanta Resources Plc - India
- Samtan Co., Ltd - South Korea
- Port Waratah Coal Services - Australia
- Minerals Council of Australia
- Asmin Koalindo Tuhup - Indonesia
- Energy Development Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Coalindo Energy - Indonesia
- Oldendorff Carriers - Singapore
- Vizag Seaport Private Limited - India
- Dalmia Cement Bharat India
- Marubeni Corporation - India
- Indian Energy Exchange, India
- Cement Manufacturers Association - India
- India Bulls Power Limited - India
- Australian Coal Association
- Directorate General of MIneral and Coal - Indonesia
- Bhoruka Overseas - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- The University of Queensland
- Mercator Lines Limited - India
- Romanian Commodities Exchange
- Merrill Lynch Commodities Europe
- Georgia Ports Authority, United States
- Karbindo Abesyapradhi - Indoneisa
- Anglo American - United Kingdom
- Kumho Petrochemical, South Korea
- Essar Steel Hazira Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Coastal Gujarat Power Limited - India
- Ministry of Finance - Indonesia
- Wood Mackenzie - Singapore
- South Luzon Thermal Energy Corporation
- Price Waterhouse Coopers - Russia
- Riau Bara Harum - Indonesia
- Australian Commodity Traders Exchange
- Salva Resources Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Uttam Galva Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kaltim Prima Coal - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Power Finance Corporation Ltd., India
- International Coal Ventures Pvt Ltd - India
- Africa Commodities Group - South Africa
- The Treasury - Australian Government
- Indika Energy - Indonesia
- Videocon Industries ltd - India
- Formosa Plastics Group - Taiwan
- SN Aboitiz Power Inc, Philippines
- GVK Power & Infra Limited - India
- Gujarat Sidhee Cement - India
- Neyveli Lignite Corporation Ltd, - India
- Kohat Cement Company Ltd. - Pakistan
- Xindia Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- GAC Shipping (India) Pvt Ltd
- Goldman Sachs - Singapore
- Bhatia International Limited - India
- Siam City Cement - Thailand
- Maheswari Brothers Coal Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Bangladesh Power Developement Board
- Sinarmas Energy and Mining - Indonesia
- Karaikal Port Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- IEA Clean Coal Centre - UK
- Siam City Cement PLC, Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Jindal Steel & Power Ltd - India
- Sojitz Corporation - Japan
- Ambuja Cements Ltd - India
- Electricity Generating Authority of Thailand
- New Zealand Coal & Carbon
- Indian Oil Corporation Limited
- Chamber of Mines of South Africa
- Star Paper Mills Limited - India
- PTC India Limited - India
- Deloitte Consulting - India
- Leighton Contractors Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Sarangani Energy Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- San Jose City I Power Corp, Philippines
- Eastern Coal Council - USA
- Mercuria Energy - Indonesia
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