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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, 14 August 17
IN A PARIS AGREEMENT WORLD, COAL WILL MEET GROWING ASIAN ENERGY NEEDS - BENJAMIN SPORTON
When providing 41% of the world’s electricity, 85% of global cement, 74% of the world’s steel and 60% of the world’s aluminum, co ...
Friday, 11 August 17
KOMIPO INVITES COAL BIDS FOR BORYEONG POWER PLANT
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued an another new tender for total 1,280,000 Metric Tons of Bitumino ...
Friday, 11 August 17
U.S WEEKLY COAL OUTPUT ALMOST FLAT WEEK OVER WEEK, EIA SAYS
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 16.1 million short tonn ...
Thursday, 10 August 17
GLOBAL COAL PRODUCTION FELL SIGNIFICANTLY IN 2016 - IEA
COALspot.com: Global coal production fell significantly in 2016, while global trade in natural gas was up. These are two of the key messages in Wor ...
Thursday, 10 August 17
ANOTHER ACTIVE WEEK FOR THE PANAMAXES WITH INCREASING RATES IN BOTH HEMISPHERES - FEARNLEYS
Supramax
Both basins have remained fairly flat, could say slightly to the negative. A quiet start of the week in the Pacific with holidays in Sin ...
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Showing 1971 to 1975 news of total 6871 |
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- Ministry of Finance - Indonesia
- Indogreen Group - Indonesia
- Agrawal Coal Company - India
- New Zealand Coal & Carbon
- Toyota Tsusho Corporation, Japan
- Borneo Indobara - Indonesia
- Meenaskhi Energy Private Limited - India
- Vizag Seaport Private Limited - India
- Bhoruka Overseas - Indonesia
- PTC India Limited - India
- Coalindo Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Ministry of Transport, Egypt
- The Treasury - Australian Government
- Siam City Cement PLC, Thailand
- Larsen & Toubro Limited - India
- Medco Energi Mining Internasional
- Mercator Lines Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Anglo American - United Kingdom
- Maheswari Brothers Coal Limited - India
- Formosa Plastics Group - Taiwan
- TeaM Sual Corporation - Philippines
- Tamil Nadu electricity Board
- Karaikal Port Pvt Ltd - India
- Edison Trading Spa - Italy
- Makarim & Taira - Indonesia
- Cement Manufacturers Association - India
- Global Coal Blending Company Limited - Australia
- Latin American Coal - Colombia
- Aditya Birla Group - India
- Karbindo Abesyapradhi - Indoneisa
- Australian Commodity Traders Exchange
- McConnell Dowell - Australia
- Sakthi Sugars Limited - India
- Ambuja Cements Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Heidelberg Cement - Germany
- Essar Steel Hazira Ltd - India
- Mercuria Energy - Indonesia
- Independent Power Producers Association of India
- Sindya Power Generating Company Private Ltd
- Energy Link Ltd, New Zealand
- Wilmar Investment Holdings
- Metalloyd Limited - United Kingdom
- Standard Chartered Bank - UAE
- Siam City Cement - Thailand
- Krishnapatnam Port Company Ltd. - India
- GVK Power & Infra Limited - India
- Chamber of Mines of South Africa
- Ind-Barath Power Infra Limited - India
- Bukit Makmur.PT - Indonesia
- Ministry of Mines - Canada
- Asmin Koalindo Tuhup - Indonesia
- Marubeni Corporation - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Baramulti Group, Indonesia
- ICICI Bank Limited - India
- Bhatia International Limited - India
- Africa Commodities Group - South Africa
- CIMB Investment Bank - Malaysia
- Kalimantan Lumbung Energi - Indonesia
- Eastern Energy - Thailand
- Kideco Jaya Agung - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Timah Investasi Mineral - Indoneisa
- Parliament of New Zealand
- Manunggal Multi Energi - Indonesia
- Gujarat Electricity Regulatory Commission - India
- TNB Fuel Sdn Bhd - Malaysia
- Bhushan Steel Limited - India
- Ceylon Electricity Board - Sri Lanka
- San Jose City I Power Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Barasentosa Lestari - Indonesia
- Tata Chemicals Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Dalmia Cement Bharat India
- Sarangani Energy Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Altura Mining Limited, Indonesia
- Coastal Gujarat Power Limited - India
- Malabar Cements Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Rio Tinto Coal - Australia
- Vedanta Resources Plc - India
- Jindal Steel & Power Ltd - India
- Kartika Selabumi Mining - Indonesia
- London Commodity Brokers - England
- Videocon Industries ltd - India
- Directorate Of Revenue Intelligence - India
- Wood Mackenzie - Singapore
- Energy Development Corp, Philippines
- Mjunction Services Limited - India
- Power Finance Corporation Ltd., India
- GMR Energy Limited - India
- Iligan Light & Power Inc, Philippines
- Thiess Contractors Indonesia
- White Energy Company Limited
- Bukit Baiduri Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Straits Asia Resources Limited - Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sojitz Corporation - Japan
- Savvy Resources Ltd - HongKong
- Bukit Asam (Persero) Tbk - Indonesia
- CNBM International Corporation - China
- Riau Bara Harum - Indonesia
- Salva Resources Pvt Ltd - India
- PowerSource Philippines DevCo
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Leighton Contractors Pty Ltd - Australia
- Indian Energy Exchange, India
- Uttam Galva Steels Limited - India
- Xindia Steels Limited - India
- Global Green Power PLC Corporation, Philippines
- Singapore Mercantile Exchange
- Kobexindo Tractors - Indoneisa
- Madhucon Powers Ltd - India
- Bayan Resources Tbk. - Indonesia
- India Bulls Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Deloitte Consulting - India
- Jaiprakash Power Ventures ltd
- Romanian Commodities Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Economic Council, Georgia
- MS Steel International - UAE
- Goldman Sachs - Singapore
- Simpson Spence & Young - Indonesia
- Trasteel International SA, Italy
- ASAPP Information Group - India
- Renaissance Capital - South Africa
- Global Business Power Corporation, Philippines
- Mintek Dendrill Indonesia
- SMG Consultants - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Therma Luzon, Inc, Philippines
- Binh Thuan Hamico - Vietnam
- Vijayanagar Sugar Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Intertek Mineral Services - Indonesia
- Posco Energy - South Korea
- Gujarat Mineral Development Corp Ltd - India
- Carbofer General Trading SA - India
- Sree Jayajothi Cements Limited - India
- Australian Coal Association
- Gujarat Sidhee Cement - India
- Chettinad Cement Corporation Ltd - India
- Planning Commission, India
- The University of Queensland
- Banpu Public Company Limited - Thailand
- Samtan Co., Ltd - South Korea
- LBH Netherlands Bv - Netherlands
- Merrill Lynch Commodities Europe
- South Luzon Thermal Energy Corporation
- Price Waterhouse Coopers - Russia
- GN Power Mariveles Coal Plant, Philippines
- AsiaOL BioFuels Corp., Philippines
- Interocean Group of Companies - India
- Attock Cement Pakistan Limited
- Globalindo Alam Lestari - Indonesia
- Orica Mining Services - Indonesia
- Meralco Power Generation, Philippines
- Bulk Trading Sa - Switzerland
- Bharathi Cement Corporation - India
- Minerals Council of Australia
- European Bulk Services B.V. - Netherlands
- GAC Shipping (India) Pvt Ltd
- Holcim Trading Pte Ltd - Singapore
- PetroVietnam Power Coal Import and Supply Company
- Commonwealth Bank - Australia
- Semirara Mining Corp, Philippines
- Eastern Coal Council - USA
- SMC Global Power, Philippines
- Petron Corporation, Philippines
- Star Paper Mills Limited - India
- Central Electricity Authority - India
- Neyveli Lignite Corporation Ltd, - India
- Kapuas Tunggal Persada - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- VISA Power Limited - India
- Indian Oil Corporation Limited
- International Coal Ventures Pvt Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Electricity Authority, New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sical Logistics Limited - India
- Semirara Mining and Power Corporation, Philippines
- Lanco Infratech Ltd - India
- Antam Resourcindo - Indonesia
- IHS Mccloskey Coal Group - USA
- Georgia Ports Authority, United States
- IEA Clean Coal Centre - UK
- Thai Mozambique Logistica
- Bangladesh Power Developement Board
- Central Java Power - Indonesia
- Parry Sugars Refinery, India
- Port Waratah Coal Services - Australia
- Kepco SPC Power Corporation, Philippines
- Electricity Generating Authority of Thailand
- Grasim Industreis Ltd - India
- Orica Australia Pty. Ltd.
- Indonesian Coal Mining Association
- The State Trading Corporation of India Ltd
- Kumho Petrochemical, South Korea
- Coal and Oil Company - UAE
- Rashtriya Ispat Nigam Limited - India
- OPG Power Generation Pvt Ltd - India
- Pendopo Energi Batubara - Indonesia
- SN Aboitiz Power Inc, Philippines
- Billiton Holdings Pty Ltd - Australia
- Oldendorff Carriers - Singapore
- Indika Energy - Indonesia
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