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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, 04 August 17
IMPORTED COAL CONTINUES TO BE A COMPETITIVE, SAFE AND RELIABLE ENERGY SOURCE FOR GERMANY - VDKI
COALspot.com: Worldwide hard coal production in 2016 declined by 3.8% to 6.7 billion tonnes.
According to the Germany Coal Importers Associati ...
Thursday, 03 August 17
SUPRAMAX: INDO TO CHINA COAL ROUNDS ARE GETTING FIXED AROUND MID $8000 - FEARNLEYS
In the Pacific rates have remained weak and under pressure this week with most routes softening.
Indo/China coal rounds are getting fixed arou ...
Thursday, 03 August 17
BUMI RESOURCES COAL SALES RELATIVELY FLAT AT 41.5 MILLION TONS IN 1H' 17; REPORTS US$162.3 MILLION PROFIT IN FIRST SEMESTER
COALspot.com: The BUMI Resources, Indonesia’s one of the largest coal producer, has reported a net income of $162.3 million in 1H’ 17 c ...
Wednesday, 02 August 17
SHIPPING MARKET INSIGHT - GIANNIS ANDRITSOPOULOS
During the duration of the first half of the year, the dry bulk market saw intense buying interest that boosted SnP prices significantly. We saw a ...
Monday, 31 July 17
KOMIPO INVITES BIDS FOR 750K MT OF 5,700 KCAL/KG NAR COAL
COALspot.com: South Korea state-owned utility Korea Midland Power (KOMIPO) issued a new tender for 750,000 Metric Tons of Bituminous coal for its B ...
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Showing 1986 to 1990 news of total 6871 |
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- Holcim Trading Pte Ltd - Singapore
- Meralco Power Generation, Philippines
- CIMB Investment Bank - Malaysia
- Cigading International Bulk Terminal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Bahari Cakrawala Sebuku - Indonesia
- The Treasury - Australian Government
- Minerals Council of Australia
- Kumho Petrochemical, South Korea
- Miang Besar Coal Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- South Luzon Thermal Energy Corporation
- Mercator Lines Limited - India
- Kaltim Prima Coal - Indonesia
- Carbofer General Trading SA - India
- Attock Cement Pakistan Limited
- Thai Mozambique Logistica
- Gujarat Electricity Regulatory Commission - India
- Essar Steel Hazira Ltd - India
- Global Coal Blending Company Limited - Australia
- Standard Chartered Bank - UAE
- Mintek Dendrill Indonesia
- Heidelberg Cement - Germany
- Africa Commodities Group - South Africa
- Ceylon Electricity Board - Sri Lanka
- Sree Jayajothi Cements Limited - India
- CNBM International Corporation - China
- Globalindo Alam Lestari - Indonesia
- Jaiprakash Power Ventures ltd
- GMR Energy Limited - India
- Billiton Holdings Pty Ltd - Australia
- Krishnapatnam Port Company Ltd. - India
- Riau Bara Harum - Indonesia
- Semirara Mining Corp, Philippines
- Global Green Power PLC Corporation, Philippines
- Siam City Cement - Thailand
- Directorate General of MIneral and Coal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Karbindo Abesyapradhi - Indoneisa
- Toyota Tsusho Corporation, Japan
- Intertek Mineral Services - Indonesia
- Eastern Coal Council - USA
- European Bulk Services B.V. - Netherlands
- Sojitz Corporation - Japan
- Economic Council, Georgia
- Manunggal Multi Energi - Indonesia
- Aditya Birla Group - India
- Directorate Of Revenue Intelligence - India
- Central Electricity Authority - India
- Oldendorff Carriers - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- OPG Power Generation Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Medco Energi Mining Internasional
- India Bulls Power Limited - India
- GVK Power & Infra Limited - India
- Posco Energy - South Korea
- Grasim Industreis Ltd - India
- Bukit Baiduri Energy - Indonesia
- Australian Commodity Traders Exchange
- Savvy Resources Ltd - HongKong
- Romanian Commodities Exchange
- Wilmar Investment Holdings
- International Coal Ventures Pvt Ltd - India
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Anglo American - United Kingdom
- Dalmia Cement Bharat India
- Marubeni Corporation - India
- Bukit Makmur.PT - Indonesia
- VISA Power Limited - India
- Ministry of Transport, Egypt
- GAC Shipping (India) Pvt Ltd
- Timah Investasi Mineral - Indoneisa
- New Zealand Coal & Carbon
- Edison Trading Spa - Italy
- Alfred C Toepfer International GmbH - Germany
- Ind-Barath Power Infra Limited - India
- Sinarmas Energy and Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Port Waratah Coal Services - Australia
- Iligan Light & Power Inc, Philippines
- Thiess Contractors Indonesia
- Chettinad Cement Corporation Ltd - India
- Mjunction Services Limited - India
- ASAPP Information Group - India
- Meenaskhi Energy Private Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Altura Mining Limited, Indonesia
- Coal and Oil Company - UAE
- Commonwealth Bank - Australia
- Sical Logistics Limited - India
- Formosa Plastics Group - Taiwan
- Banpu Public Company Limited - Thailand
- Petron Corporation, Philippines
- Orica Australia Pty. Ltd.
- Planning Commission, India
- Ambuja Cements Ltd - India
- Gujarat Sidhee Cement - India
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- Singapore Mercantile Exchange
- Vizag Seaport Private Limited - India
- Lanco Infratech Ltd - India
- Bharathi Cement Corporation - India
- Interocean Group of Companies - India
- Binh Thuan Hamico - Vietnam
- Electricity Authority, New Zealand
- Chamber of Mines of South Africa
- SMC Global Power, Philippines
- Coalindo Energy - Indonesia
- London Commodity Brokers - England
- Borneo Indobara - Indonesia
- Parry Sugars Refinery, India
- IEA Clean Coal Centre - UK
- PNOC Exploration Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- Indonesian Coal Mining Association
- Karaikal Port Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Siam City Cement PLC, Thailand
- Sarangani Energy Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Bangladesh Power Developement Board
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- GN Power Mariveles Coal Plant, Philippines
- Global Business Power Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Indika Energy - Indonesia
- TeaM Sual Corporation - Philippines
- Pendopo Energi Batubara - Indonesia
- Malabar Cements Ltd - India
- SN Aboitiz Power Inc, Philippines
- Metalloyd Limited - United Kingdom
- Tata Chemicals Ltd - India
- Antam Resourcindo - Indonesia
- Renaissance Capital - South Africa
- Deloitte Consulting - India
- Sindya Power Generating Company Private Ltd
- Latin American Coal - Colombia
- Mercuria Energy - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Indo Tambangraya Megah - Indonesia
- Wood Mackenzie - Singapore
- Indian Oil Corporation Limited
- Neyveli Lignite Corporation Ltd, - India
- Bhoruka Overseas - Indonesia
- Trasteel International SA, Italy
- Independent Power Producers Association of India
- Energy Development Corp, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Semirara Mining and Power Corporation, Philippines
- MS Steel International - UAE
- Bayan Resources Tbk. - Indonesia
- White Energy Company Limited
- Sakthi Sugars Limited - India
- Simpson Spence & Young - Indonesia
- Videocon Industries ltd - India
- Indogreen Group - Indonesia
- Aboitiz Power Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- Energy Link Ltd, New Zealand
- ICICI Bank Limited - India
- Ministry of Finance - Indonesia
- Vedanta Resources Plc - India
- Rio Tinto Coal - Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bulk Trading Sa - Switzerland
- Eastern Energy - Thailand
- Indian Energy Exchange, India
- Baramulti Group, Indonesia
- Central Java Power - Indonesia
- Electricity Generating Authority of Thailand
- Goldman Sachs - Singapore
- Madhucon Powers Ltd - India
- PetroVietnam Power Coal Import and Supply Company
- Cement Manufacturers Association - India
- Maheswari Brothers Coal Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Bhatia International Limited - India
- The University of Queensland
- Gujarat Mineral Development Corp Ltd - India
- The State Trading Corporation of India Ltd
- Parliament of New Zealand
- IHS Mccloskey Coal Group - USA
- Orica Mining Services - Indonesia
- Coastal Gujarat Power Limited - India
- Ministry of Mines - Canada
- Salva Resources Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Australian Coal Association
- Bhushan Steel Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Jorong Barutama Greston.PT - Indonesia
- PowerSource Philippines DevCo
- McConnell Dowell - Australia
- Agrawal Coal Company - India
- Jindal Steel & Power Ltd - India
- Power Finance Corporation Ltd., India
- Star Paper Mills Limited - India
- Samtan Co., Ltd - South Korea
- Kideco Jaya Agung - Indonesia
- Xindia Steels Limited - India
- Georgia Ports Authority, United States
- Merrill Lynch Commodities Europe
- Barasentosa Lestari - Indonesia
- PTC India Limited - India
- Tamil Nadu electricity Board
- Uttam Galva Steels Limited - India
- Makarim & Taira - Indonesia
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