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