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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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Wednesday, 09 August 17
THE KEY IMPORTERS OF U.S. COAL FOR THE FIRST FIVE MONTHS OF 2017 ARE THE NETHERLANDS, INDIA AND JAPAN - PETER SAND, BIMCO
US seaborne coal exports have turned years of negative growth around and seem to be climbing for a third quarter in a row. The increase in total vo ...
Wednesday, 09 August 17
INDONESIAN COAL PRICE REFERENCE INCREASE COULD CONTINUE IN THE COMING MONTHS
COALspot.com: Indonesian coal benchmark price rose 6.36% in August, government data showed.
The benchmark price of Indonesian thermal ...
Wednesday, 09 August 17
COAL HAS GAINED AROUND 40% OVER THE PAST TWELVE MONTHS; IRON ORE HAS MOVED FROM AROUND $50/T IN AUGUST 2016 TO OVER $70/T TODAY - INTERMODAL
During the summer’s peak, and with the markets remaining relatively quiet, we can argue that most markets have built solid foundations to enj ...
Tuesday, 08 August 17
THE BULLISH RIDE CONTINUES ON FOR THE IRON ORE MARKET - GEORGE LAZARIDIS
The bullish ride continues on for the iron ore market, with most in the market now eyeing the possibility for further gains to be had as Chine ...
Tuesday, 08 August 17
COAL SALES DESTINATION IS DOMINATED BY DEVELOPING COUNTRIES IN ASIA - ADARO
COALspot.com: Adaro Energy has produced 13.27 million tonnes of coal during the second quarter of 2017, from the mines PT Adaro Indonesia, PT Semes ...
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Showing 1976 to 1980 news of total 6871 |
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- Jindal Steel & Power Ltd - India
- Indian Energy Exchange, India
- Meralco Power Generation, Philippines
- Central Electricity Authority - India
- Intertek Mineral Services - Indonesia
- Mercuria Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Eastern Coal Council - USA
- Leighton Contractors Pty Ltd - Australia
- Gujarat Sidhee Cement - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- European Bulk Services B.V. - Netherlands
- Bukit Makmur.PT - Indonesia
- Trasteel International SA, Italy
- Pendopo Energi Batubara - Indonesia
- Power Finance Corporation Ltd., India
- Bhushan Steel Limited - India
- GVK Power & Infra Limited - India
- Miang Besar Coal Terminal - Indonesia
- Ambuja Cements Ltd - India
- Star Paper Mills Limited - India
- The State Trading Corporation of India Ltd
- Australian Coal Association
- Central Java Power - Indonesia
- Formosa Plastics Group - Taiwan
- White Energy Company Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Cement Manufacturers Association - India
- Australian Commodity Traders Exchange
- Semirara Mining Corp, Philippines
- Simpson Spence & Young - Indonesia
- Edison Trading Spa - Italy
- Coalindo Energy - Indonesia
- Bharathi Cement Corporation - India
- Banpu Public Company Limited - Thailand
- Kobexindo Tractors - Indoneisa
- Indonesian Coal Mining Association
- Thai Mozambique Logistica
- Orica Australia Pty. Ltd.
- Global Business Power Corporation, Philippines
- Baramulti Group, Indonesia
- Salva Resources Pvt Ltd - India
- Timah Investasi Mineral - Indoneisa
- VISA Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- IHS Mccloskey Coal Group - USA
- AsiaOL BioFuels Corp., Philippines
- Binh Thuan Hamico - Vietnam
- Global Coal Blending Company Limited - Australia
- Sical Logistics Limited - India
- Eastern Energy - Thailand
- Bayan Resources Tbk. - Indonesia
- Sindya Power Generating Company Private Ltd
- Coastal Gujarat Power Limited - India
- GMR Energy Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Independent Power Producers Association of India
- Manunggal Multi Energi - Indonesia
- International Coal Ventures Pvt Ltd - India
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Makarim & Taira - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Economic Council, Georgia
- London Commodity Brokers - England
- San Jose City I Power Corp, Philippines
- Mintek Dendrill Indonesia
- Karbindo Abesyapradhi - Indoneisa
- New Zealand Coal & Carbon
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Anglo American - United Kingdom
- Siam City Cement - Thailand
- Goldman Sachs - Singapore
- Sree Jayajothi Cements Limited - India
- Marubeni Corporation - India
- The University of Queensland
- Latin American Coal - Colombia
- Kumho Petrochemical, South Korea
- SN Aboitiz Power Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Electricity Authority, New Zealand
- Oldendorff Carriers - Singapore
- Ministry of Finance - Indonesia
- Savvy Resources Ltd - HongKong
- India Bulls Power Limited - India
- Borneo Indobara - Indonesia
- CIMB Investment Bank - Malaysia
- Globalindo Alam Lestari - Indonesia
- CNBM International Corporation - China
- Kartika Selabumi Mining - Indonesia
- Therma Luzon, Inc, Philippines
- Vedanta Resources Plc - India
- Aditya Birla Group - India
- Xindia Steels Limited - India
- Metalloyd Limited - United Kingdom
- Minerals Council of Australia
- Parry Sugars Refinery, India
- Vizag Seaport Private Limited - India
- Kapuas Tunggal Persada - Indonesia
- ICICI Bank Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Madhucon Powers Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Sojitz Corporation - Japan
- Krishnapatnam Port Company Ltd. - India
- Thiess Contractors Indonesia
- Kaltim Prima Coal - Indonesia
- Standard Chartered Bank - UAE
- Mjunction Services Limited - India
- Maheswari Brothers Coal Limited - India
- Orica Mining Services - Indonesia
- McConnell Dowell - Australia
- PetroVietnam Power Coal Import and Supply Company
- Medco Energi Mining Internasional
- Asmin Koalindo Tuhup - Indonesia
- Commonwealth Bank - Australia
- Directorate General of MIneral and Coal - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- GAC Shipping (India) Pvt Ltd
- Aboitiz Power Corporation - Philippines
- Ministry of Transport, Egypt
- Essar Steel Hazira Ltd - India
- Indogreen Group - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Tata Chemicals Ltd - India
- Energy Link Ltd, New Zealand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Pipit Mutiara Jaya. PT, Indonesia
- Global Green Power PLC Corporation, Philippines
- Georgia Ports Authority, United States
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Heidelberg Cement - Germany
- Gujarat Mineral Development Corp Ltd - India
- Holcim Trading Pte Ltd - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Semirara Mining and Power Corporation, Philippines
- Bangladesh Power Developement Board
- Indo Tambangraya Megah - Indonesia
- Parliament of New Zealand
- Bukit Baiduri Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- IEA Clean Coal Centre - UK
- Tamil Nadu electricity Board
- Deloitte Consulting - India
- Bahari Cakrawala Sebuku - Indonesia
- Renaissance Capital - South Africa
- Price Waterhouse Coopers - Russia
- South Luzon Thermal Energy Corporation
- Chamber of Mines of South Africa
- Karaikal Port Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Kepco SPC Power Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Grasim Industreis Ltd - India
- Coal and Oil Company - UAE
- PTC India Limited - India
- Sakthi Sugars Limited - India
- Siam City Cement PLC, Thailand
- Barasentosa Lestari - Indonesia
- Mercator Lines Limited - India
- Uttam Galva Steels Limited - India
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Energy Development Corp, Philippines
- Carbofer General Trading SA - India
- Bulk Trading Sa - Switzerland
- Altura Mining Limited, Indonesia
- Petron Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Vijayanagar Sugar Pvt Ltd - India
- Planning Commission, India
- Antam Resourcindo - Indonesia
- Iligan Light & Power Inc, Philippines
- Riau Bara Harum - Indonesia
- Merrill Lynch Commodities Europe
- Africa Commodities Group - South Africa
- Ministry of Mines - Canada
- Petrochimia International Co. Ltd.- Taiwan
- Indika Energy - Indonesia
- Posco Energy - South Korea
- Malabar Cements Ltd - India
- Kideco Jaya Agung - Indonesia
- Lanco Infratech Ltd - India
- Samtan Co., Ltd - South Korea
- Wilmar Investment Holdings
- OPG Power Generation Pvt Ltd - India
- Interocean Group of Companies - India
- Toyota Tsusho Corporation, Japan
- Bhatia International Limited - India
- SMC Global Power, Philippines
- Videocon Industries ltd - India
- Larsen & Toubro Limited - India
- ASAPP Information Group - India
- Romanian Commodities Exchange
- Rio Tinto Coal - Australia
- Agrawal Coal Company - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sarangani Energy Corporation, Philippines
- Billiton Holdings Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Wood Mackenzie - Singapore
- Straits Asia Resources Limited - Singapore
- Bhoruka Overseas - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Dalmia Cement Bharat India
- LBH Netherlands Bv - Netherlands
- Port Waratah Coal Services - Australia
- Ceylon Electricity Board - Sri Lanka
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Attock Cement Pakistan Limited
- Indian Oil Corporation Limited
- SMG Consultants - Indonesia
- Jaiprakash Power Ventures ltd
- MS Steel International - UAE
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