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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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Tuesday, 08 August 17
KOMIPO INVITES BIDS FOR 5200 AND 5700 NAR COAL FOR Q4 2017
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued an another new tender for 420,000 Metric Tons of Bituminous coal ...
Monday, 07 August 17
INDIA'S THERMAL COAL IMPORTS HAVE FALLEN BY 16% YEAR-ON-YEAR IN THE FIRST FIVE MONTHS OF THIS YEAR
COALspot.com: The second quarter of 2017 was characterized by volatility in the coal market driven by policy measures and weather disruptions say A ...
Monday, 07 August 17
BUMA SIGNED $385 MILLION WORTH OF NEW CONTRACT WITH PT PADA IDI
COALspot.com: PT Delta Dunia Makmur Tbk., has announced that its subsidiary, PT Bukit Makmur Mandiri Utama ("BUMA"), has entered into min ...
Monday, 07 August 17
THE SHIPPING INDEXES BOUNCE BACK THIS PAST WEEK
COALspot.com: The Freight market rose this past week compared to the previous week, as BDI, Cape and Panamax indexes show a positive trend week ove ...
Friday, 04 August 17
U.S. WEEKLY COAL OUTPUT UP 4.4% W/W - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 16.1 million short tonn ...
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Showing 1981 to 1985 news of total 6871 |
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- Krishnapatnam Port Company Ltd. - India
- Aditya Birla Group - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indian Energy Exchange, India
- Deloitte Consulting - India
- Oldendorff Carriers - Singapore
- Kalimantan Lumbung Energi - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Rio Tinto Coal - Australia
- Semirara Mining and Power Corporation, Philippines
- Petron Corporation, Philippines
- Madhucon Powers Ltd - India
- Chettinad Cement Corporation Ltd - India
- Vedanta Resources Plc - India
- European Bulk Services B.V. - Netherlands
- Pendopo Energi Batubara - Indonesia
- Georgia Ports Authority, United States
- Jindal Steel & Power Ltd - India
- Latin American Coal - Colombia
- Aboitiz Power Corporation - Philippines
- Thai Mozambique Logistica
- Xindia Steels Limited - India
- Billiton Holdings Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
- San Jose City I Power Corp, Philippines
- Holcim Trading Pte Ltd - Singapore
- Wood Mackenzie - Singapore
- Siam City Cement - Thailand
- Eastern Energy - Thailand
- CNBM International Corporation - China
- Borneo Indobara - Indonesia
- Maheswari Brothers Coal Limited - India
- Eastern Coal Council - USA
- CIMB Investment Bank - Malaysia
- Posco Energy - South Korea
- Bharathi Cement Corporation - India
- Vijayanagar Sugar Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Malabar Cements Ltd - India
- Goldman Sachs - Singapore
- Intertek Mineral Services - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Bhatia International Limited - India
- Uttam Galva Steels Limited - India
- Indian Oil Corporation Limited
- Essar Steel Hazira Ltd - India
- Coal and Oil Company - UAE
- Sojitz Corporation - Japan
- Global Green Power PLC Corporation, Philippines
- Thiess Contractors Indonesia
- OPG Power Generation Pvt Ltd - India
- Ministry of Transport, Egypt
- Electricity Authority, New Zealand
- Mercuria Energy - Indonesia
- Ministry of Mines - Canada
- Ambuja Cements Ltd - India
- Toyota Tsusho Corporation, Japan
- Iligan Light & Power Inc, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Edison Trading Spa - Italy
- Wilmar Investment Holdings
- Ceylon Electricity Board - Sri Lanka
- Vizag Seaport Private Limited - India
- Semirara Mining Corp, Philippines
- Indika Energy - Indonesia
- Agrawal Coal Company - India
- Standard Chartered Bank - UAE
- Jaiprakash Power Ventures ltd
- Larsen & Toubro Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Manunggal Multi Energi - Indonesia
- New Zealand Coal & Carbon
- Power Finance Corporation Ltd., India
- Timah Investasi Mineral - Indoneisa
- London Commodity Brokers - England
- Sakthi Sugars Limited - India
- Cement Manufacturers Association - India
- Economic Council, Georgia
- PowerSource Philippines DevCo
- Lanco Infratech Ltd - India
- Kepco SPC Power Corporation, Philippines
- Bulk Trading Sa - Switzerland
- Independent Power Producers Association of India
- GVK Power & Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- ICICI Bank Limited - India
- Carbofer General Trading SA - India
- Riau Bara Harum - Indonesia
- Price Waterhouse Coopers - Russia
- IEA Clean Coal Centre - UK
- Rashtriya Ispat Nigam Limited - India
- Port Waratah Coal Services - Australia
- Cigading International Bulk Terminal - Indonesia
- Africa Commodities Group - South Africa
- Romanian Commodities Exchange
- Marubeni Corporation - India
- SN Aboitiz Power Inc, Philippines
- Therma Luzon, Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Bhoruka Overseas - Indonesia
- Mintek Dendrill Indonesia
- Bayan Resources Tbk. - Indonesia
- The University of Queensland
- Orica Mining Services - Indonesia
- Directorate Of Revenue Intelligence - India
- Ind-Barath Power Infra Limited - India
- GMR Energy Limited - India
- Trasteel International SA, Italy
- LBH Netherlands Bv - Netherlands
- Bukit Baiduri Energy - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Coalindo Energy - Indonesia
- Parry Sugars Refinery, India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Karaikal Port Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Kohat Cement Company Ltd. - Pakistan
- Mjunction Services Limited - India
- India Bulls Power Limited - India
- Leighton Contractors Pty Ltd - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Videocon Industries ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Grasim Industreis Ltd - India
- Antam Resourcindo - Indonesia
- Meralco Power Generation, Philippines
- SMG Consultants - Indonesia
- Simpson Spence & Young - Indonesia
- Tata Chemicals Ltd - India
- Interocean Group of Companies - India
- Planning Commission, India
- Miang Besar Coal Terminal - Indonesia
- The State Trading Corporation of India Ltd
- Alfred C Toepfer International GmbH - Germany
- AsiaOL BioFuels Corp., Philippines
- Indogreen Group - Indonesia
- Baramulti Group, Indonesia
- Salva Resources Pvt Ltd - India
- The Treasury - Australian Government
- Bahari Cakrawala Sebuku - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- IHS Mccloskey Coal Group - USA
- Heidelberg Cement - Germany
- Directorate General of MIneral and Coal - Indonesia
- Energy Development Corp, Philippines
- Karbindo Abesyapradhi - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Ministry of Finance - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Anglo American - United Kingdom
- Parliament of New Zealand
- Metalloyd Limited - United Kingdom
- White Energy Company Limited
- Energy Link Ltd, New Zealand
- Chamber of Mines of South Africa
- Sree Jayajothi Cements Limited - India
- Electricity Generating Authority of Thailand
- Altura Mining Limited, Indonesia
- Australian Coal Association
- Renaissance Capital - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- McConnell Dowell - Australia
- Bhushan Steel Limited - India
- Binh Thuan Hamico - Vietnam
- Makarim & Taira - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Kartika Selabumi Mining - Indonesia
- Kobexindo Tractors - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Minerals Council of Australia
- SMC Global Power, Philippines
- Formosa Plastics Group - Taiwan
- Gujarat Electricity Regulatory Commission - India
- MS Steel International - UAE
- Dalmia Cement Bharat India
- Mercator Lines Limited - India
- VISA Power Limited - India
- Commonwealth Bank - Australia
- Bukit Makmur.PT - Indonesia
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Straits Asia Resources Limited - Singapore
- Global Business Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Central Java Power - Indonesia
- Coastal Gujarat Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Kumho Petrochemical, South Korea
- PTC India Limited - India
- Merrill Lynch Commodities Europe
- Indo Tambangraya Megah - Indonesia
- Sindya Power Generating Company Private Ltd
- Australian Commodity Traders Exchange
- Sarangani Energy Corporation, Philippines
- Gujarat Sidhee Cement - India
- Medco Energi Mining Internasional
- PNOC Exploration Corporation - Philippines
- Meenaskhi Energy Private Limited - India
- Siam City Cement PLC, Thailand
- Indonesian Coal Mining Association
- Sinarmas Energy and Mining - Indonesia
- Kaltim Prima Coal - Indonesia
- Bangladesh Power Developement Board
- International Coal Ventures Pvt Ltd - India
- Singapore Mercantile Exchange
- Attock Cement Pakistan Limited
- Star Paper Mills Limited - India
- TeaM Sual Corporation - Philippines
- Tamil Nadu electricity Board
- Samtan Co., Ltd - South Korea
- ASAPP Information Group - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kideco Jaya Agung - Indonesia
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