Tag: refineries

The worldwide demand for cleaner shipping fuel could drive the value of Middle East crude to its lowest ever levels, despite fact that supplies are squeezed. This highlights the fact that the 2020 sulphur cap will hurt countries like Saudi Arabia and Iraq that produce high sulphur fuel.

Because of the alarming rising levels seen on Mississippi River, Bloomberg informs that the Morganza Floodway may be opened for the third time in the history, increasing the possibilities of flooding a large part of rural Louisiana and affecting refineries in the region.

For the second year in a row, industry in the Port of Rotterdam has released less CO2 into the atmosphere. This becomes clear from new figures presented by the Dutch Emissions Authority. The sector has reduced its emissions by 13.6%, namely 4.2 million tonnes over the course of the past two years. The key driver of this decrease is the closure of several outdated coal-fired plants in mid-2017.

Six petrochemical storage tanks caught fire at the International Terminal Co. storage farm at Houston's sprawling Deer Park refining complex, on March 17. The fire spread quickly, and managed to affect a total of seven filled. These tanks include gasoline, xylene, naphtha and lubricant base oil. All employees are accounted for, and no injuries have been reported.

Sinopec’s subsidiary refinery in Singapore's province of Hainan delivered its first shipment of low-sulphur bunker fuel, complying withe upcoming IMO 2020 sulphur cap regulation. Namely, a ship with 2,200 tonnes of low-sulphur fuel departed the Hainan refinery in late February heading to Ningbo on the east coast. The fuel will be put to pilot use at a maritime institution in Shanghai.

Hellenic Petroleum, one of Greece's biggest oil refiners, informed on February 28 that two of its three refineries are already ready to comply with the 2020 sulphur cap. Specifically, its refineries in Elefsina and Thessaloniki have adjusted to the new rules. As for the third refinery in Aspropyrgos, which produces high sulphur fuel oil, it will comply with the new rules in November.

IUMI, the International Union of Marine Insurance, forces refineries to test on low sulphur fuels ahead of the introduction of the global sulphur cap on 2020. IUMI stated that fuel testing is undertaken by the end-user but this has to change. IUMI is calling for regulation that obliges refineries to guarantee the quality of their fuel and for vessel operators to improve their systems, processes and training to protect their vessels against the potential impact of using low sulphur bunkers.

EIA published that the implementation of new regulations on marine fuel will affect crude oil and petroleum product markets the following decade. The Administration focuses mainly on the long-term implications of the market changes that will involve changes to ships, marine fuels, refining, and some infrastructure in the next six to eight years.

Saudi Aramco aims to invest up to $1.6 billion for about for up to 19.9% of Hyundai Oilbank from Hyundai Heavy Industries Holdings, which owns 91.13% of Hyundai Oilbank. The latter has 650,000 barrels per day of refining capacity in the southwestern city of Daesan and plans to expand its petrochemical business. Saudi Aramco will probably value Hyundai Oilbank at 10 trillion won, or 36,000 won per share.

Gibson Shipbrokers published a Weekly Tanker Market Report, on January 25, based on EIA's recent report that 2019 is expected to see the largest wave of refinery capacity additions. Gibson expects that 2.6 million b/d of new capacity will initiate operations this year. In terms of pure volumes, this is an optimistic sign for the product tanker market. Yet, the report focuses on how global product flows shape up.