We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 31 July 17
THE PORT OF NEWCASTLE SHIPPED 17.08 PERCENT LESS COAL IN JUNE 2017 COMPARED TO ITS MAY LOADING
COALspot.com: The Port of Newcastle, Australia’s major trading ports, and the world’s largest coal export port has shipped $AU 1,442.8 ...
Monday, 31 July 17
THE FREIGHT MARKET DECLINE THIS PAST WEEK
COALspot.com: The Freight market decline this past week compared to the previous week, as BDI and Panamax indexes show a negative trend week over w ...
Friday, 28 July 17
U.S. WEEKLY COAL PRODUCTION UP 1.4% WEEK OVER WEEK - EIA
COALspot.com – U.S., the world’s second largest coal producers have produced approximately totaled an estimated 15.5 million short tonn ...
Thursday, 27 July 17
CAMPBELL SHIPPING APPOINTS ISS FOR GLOBAL HUSBANDRY REPRESENTATION SERVICES CONTRACT - ISS
COALspot.com: Inchcape Shipping Services (ISS) is delighted to announce that it has secured a global husbandry representation contract with Campbel ...
Thursday, 27 July 17
A VOLATILE WEEK IN THE CAPE MARKET - FEARNLEYS
Supramax
The black sea still performing well although bit fewer fixtures concluded/reported. Rates lie somewhere around 18 -19 on front-haul . Bo ...
|
|
|
Showing 1991 to 1995 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- CIMB Investment Bank - Malaysia
- Timah Investasi Mineral - Indoneisa
- Oldendorff Carriers - Singapore
- Uttam Galva Steels Limited - India
- Barasentosa Lestari - Indonesia
- Indika Energy - Indonesia
- Romanian Commodities Exchange
- McConnell Dowell - Australia
- Latin American Coal - Colombia
- Bukit Makmur.PT - Indonesia
- Coalindo Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- SMG Consultants - Indonesia
- GMR Energy Limited - India
- Bharathi Cement Corporation - India
- Billiton Holdings Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Orica Australia Pty. Ltd.
- Vedanta Resources Plc - India
- Holcim Trading Pte Ltd - Singapore
- Thai Mozambique Logistica
- Neyveli Lignite Corporation Ltd, - India
- Attock Cement Pakistan Limited
- SMC Global Power, Philippines
- Gujarat Sidhee Cement - India
- Mjunction Services Limited - India
- Bhoruka Overseas - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Ministry of Mines - Canada
- Therma Luzon, Inc, Philippines
- Power Finance Corporation Ltd., India
- Sical Logistics Limited - India
- White Energy Company Limited
- Altura Mining Limited, Indonesia
- Indonesian Coal Mining Association
- Antam Resourcindo - Indonesia
- Deloitte Consulting - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PNOC Exploration Corporation - Philippines
- Electricity Authority, New Zealand
- Coal and Oil Company - UAE
- Global Business Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Medco Energi Mining Internasional
- Lanco Infratech Ltd - India
- Essar Steel Hazira Ltd - India
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Gujarat Electricity Regulatory Commission - India
- VISA Power Limited - India
- PTC India Limited - India
- Meralco Power Generation, Philippines
- Bhushan Steel Limited - India
- Rashtriya Ispat Nigam Limited - India
- Wood Mackenzie - Singapore
- Semirara Mining Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Wilmar Investment Holdings
- Baramulti Group, Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Energy Link Ltd, New Zealand
- Coastal Gujarat Power Limited - India
- Standard Chartered Bank - UAE
- Minerals Council of Australia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kumho Petrochemical, South Korea
- Kartika Selabumi Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Orica Mining Services - Indonesia
- Rio Tinto Coal - Australia
- Sree Jayajothi Cements Limited - India
- India Bulls Power Limited - India
- GVK Power & Infra Limited - India
- Star Paper Mills Limited - India
- Planning Commission, India
- Pipit Mutiara Jaya. PT, Indonesia
- Economic Council, Georgia
- Eastern Coal Council - USA
- Georgia Ports Authority, United States
- MS Steel International - UAE
- ASAPP Information Group - India
- Parliament of New Zealand
- Interocean Group of Companies - India
- Xindia Steels Limited - India
- Ceylon Electricity Board - Sri Lanka
- Mercuria Energy - Indonesia
- Sindya Power Generating Company Private Ltd
- Malabar Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Electricity Generating Authority of Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- OPG Power Generation Pvt Ltd - India
- Salva Resources Pvt Ltd - India
- Marubeni Corporation - India
- Australian Commodity Traders Exchange
- Siam City Cement PLC, Thailand
- Global Coal Blending Company Limited - Australia
- Agrawal Coal Company - India
- Banpu Public Company Limited - Thailand
- Kapuas Tunggal Persada - Indonesia
- Renaissance Capital - South Africa
- Kaltim Prima Coal - Indonesia
- Grasim Industreis Ltd - India
- Maheswari Brothers Coal Limited - India
- Central Electricity Authority - India
- Vijayanagar Sugar Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Maharashtra Electricity Regulatory Commission - India
- Bhatia International Limited - India
- ICICI Bank Limited - India
- Madhucon Powers Ltd - India
- Indian Energy Exchange, India
- Cigading International Bulk Terminal - Indonesia
- Energy Development Corp, Philippines
- The State Trading Corporation of India Ltd
- Indo Tambangraya Megah - Indonesia
- New Zealand Coal & Carbon
- Videocon Industries ltd - India
- Petron Corporation, Philippines
- Trasteel International SA, Italy
- Chamber of Mines of South Africa
- Miang Besar Coal Terminal - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Independent Power Producers Association of India
- Merrill Lynch Commodities Europe
- Goldman Sachs - Singapore
- CNBM International Corporation - China
- SN Aboitiz Power Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Globalindo Alam Lestari - Indonesia
- Price Waterhouse Coopers - Russia
- Jindal Steel & Power Ltd - India
- Indian Oil Corporation Limited
- Formosa Plastics Group - Taiwan
- Mintek Dendrill Indonesia
- Sakthi Sugars Limited - India
- GN Power Mariveles Coal Plant, Philippines
- The Treasury - Australian Government
- Petrochimia International Co. Ltd.- Taiwan
- Kohat Cement Company Ltd. - Pakistan
- San Jose City I Power Corp, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Iligan Light & Power Inc, Philippines
- Eastern Energy - Thailand
- TeaM Sual Corporation - Philippines
- Manunggal Multi Energi - Indonesia
- Siam City Cement - Thailand
- Aboitiz Power Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- LBH Netherlands Bv - Netherlands
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Heidelberg Cement - Germany
- Semirara Mining and Power Corporation, Philippines
- Meenaskhi Energy Private Limited - India
- Larsen & Toubro Limited - India
- The University of Queensland
- Global Green Power PLC Corporation, Philippines
- Anglo American - United Kingdom
- Thiess Contractors Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Sojitz Corporation - Japan
- AsiaOL BioFuels Corp., Philippines
- Kobexindo Tractors - Indoneisa
- Tata Chemicals Ltd - India
- Samtan Co., Ltd - South Korea
- Bangladesh Power Developement Board
- Bayan Resources Tbk. - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ministry of Transport, Egypt
- PowerSource Philippines DevCo
- Ambuja Cements Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Vizag Seaport Private Limited - India
- Carbofer General Trading SA - India
- Krishnapatnam Port Company Ltd. - India
- Borneo Indobara - Indonesia
- Ind-Barath Power Infra Limited - India
- Indogreen Group - Indonesia
- Chettinad Cement Corporation Ltd - India
- Posco Energy - South Korea
- Mercator Lines Limited - India
- Savvy Resources Ltd - HongKong
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- Port Waratah Coal Services - Australia
- Central Java Power - Indonesia
- Pendopo Energi Batubara - Indonesia
- Binh Thuan Hamico - Vietnam
- Commonwealth Bank - Australia
- Karaikal Port Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- TNB Fuel Sdn Bhd - Malaysia
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- Tamil Nadu electricity Board
- Simpson Spence & Young - Indonesia
- Kideco Jaya Agung - Indonesia
- Edison Trading Spa - Italy
- Toyota Tsusho Corporation, Japan
- Singapore Mercantile Exchange
- Australian Coal Association
- Bulk Trading Sa - Switzerland
- Intertek Mineral Services - Indonesia
- Parry Sugars Refinery, India
- Bukit Asam (Persero) Tbk - Indonesia
- Bukit Baiduri Energy - Indonesia
- Makarim & Taira - Indonesia
- Cement Manufacturers Association - India
- Jaiprakash Power Ventures ltd
- Ministry of Finance - Indonesia
- GAC Shipping (India) Pvt Ltd
- Karbindo Abesyapradhi - Indoneisa
- Aditya Birla Group - India
|
| |
| |
|
