A weekly Argus news digest of interest to the conventional and alternative marine fuel markets. To speak to our team about accessing the stories below and access to Argus Marine Fuels, please contact marinefuels@argusmedia.com.
Alternative marine fuels
30 June GHG emissions high on agenda at MEPC 80 The 80th meeting of the Marine Environment Protection Committee (MEPC 80) will begin on 3 July with greenhouse gas (GHG) emissions high on the agenda, but member states have struggled to find consensus on proposals in the run up to the event.
30 June Japan’s KHI delivers VLGC to Kline Japanese shipbuilder Kawasaki Heavy Industries (KHI) has delivered an LPG-fuelled LPG and ammonia carrier to domestic shipping firm Kawasaki Kisen Kaisha (Kline), promoting decarbonisation through the use of LPG and introduction of ammonia.
30 June Japanese firms to develop liquefied CO2-ammonia carrier Japanese shipowner Nippon Yusen Kaisha (NYK Line) and shipbuilder Mitsubishi Shipbuilding have obtained n approval in principle (AIP) to develop a carrier that can ship both ammonia and liquefied CO2.
29 June Gas chips away at diesel market China’s LNG-fuelled truck fleet is growing in response to LNG’s rising price advantage over diesel as a transport fuel and the country’s long-term goal of decarbonising transportation.
29 June Coolco exercises option for two new LNG carriers LNG carrier owner and manager Coolco exercised an option to purchase two 174,000m³ LNG carriers from the investing arm of Eastern Pacific Shipping.
29 June India’s green H2 subsidies may not be enough India has shed light on plans to subsidise green hydrogen production, but support for individual projects is less generous than in other countries, raising questions over whether it will be enough to significantly improve project economics.
29 June Yara, BASF plan US blue ammonia plant The renewable arm of Norwegian fertilizer producer Yara Clean Ammonia and German chemicals giant BASF have announced plans to joitly develop a 1.2-1.4mn t blue ammonia production facility in the US Gulf.
29 June Petronas, Mol develop liquefied CO2, FSO vessels Malaysia’s state-owned Petronas and Japanese shipping firm Mitsui OSK Line (Mol) have won approvals to develop liquefied carbon dioxide (CO2) carriers and a floating storage and offloading (FSO) vessel.
28 June Indonesia to enforce B35 blending from 1 August Indonesia’s mandate of blending 35pc biodiesel (B35) with road transport fuel will be enforced from 1 August 2023, according to the director of bioenergy at the energy ministry Edi Wibowo.
28 June GoodFuels supplies biofuel to NYK ro-ro Dutch biofuels supplier GoodFuels supplied biofuel for bunkering at the port of Vlissingen, the Netherlands, to a ro-ro vessel owned by Japanese shipping company NYK.
28 June Petrobras tests bio-bunker fuel Brazilian state-controlled Petrobras started testing its bio-bunker production with 24pc of non-fossil fuel this week after positive results with a 10pc blend ealier this year.
28 June CIMC SOE launches Fratelli Cosulich LNG carrier The 8,200m³ Paolina Cosulich LNG bunkering vessel was launched from China’s CIMC SinoPacific Offshore and Engineering shipyard for Italian bunker supplier and shipowner Fratelli Cosulich on 26 June.
28 June Gasum supplies LNG to ship in Iceland for first time Finnish energy company Gasum completed the first ship-to-ship transfer in the Icelandic port of Reykjavik to a cruise ship on 21 June.
28 June Spanish biodiesel imports at five year low in April Spanish biodiesel imports dropped in April to the lowest since October 2017, with domestic producers citing poor demand and releases from storage alongside continued margin pressure. But it appears production did not decline, with record exports as firms fought for market share.
28 June South Korea to begin biofuels trials in August South Korea announced on 28 June that itis beginning biofuels trials for bunkering and jet fuel in August, ahead of previously announcd mandate plans for its use in these sectors.
28 June Methanex cuts Asia methanol contract price for July Canada-based methanol producer Methanex has lowered its Asian Posted Contract Price (APCP) for a fourth consecutive month in July.
27 June Wartsila to retrofit Stena vessels for methanol engines Swedish ferry operator Stena Line has contracted Finnish engineering firm Wartsila to convert some of its fleet to methanol-fuelled engines.
27 June More LNG bunkering points added in Japan A Japanese group plans to start ship-to-ship LNG bunkering in Osaka and Setouchi in the April 2026-March 2027 fiscal year with the launch of a new LNG bunkering ship in west Japan, in addition to operations at Ise/Mikawa bay and Tokyo bay.
27 June Wartsila to retrofit Stena vessels for methanol engines Swedish ferry operator Stena Line has contracted Finnish engineering firm Wartsila to convert some of its fleet to methanol-fuelled engines.
26 June Maersk orders 6 methanol dual-fuel ships Danish shiping firm AP Moller-Maersk has ordered six 9,000 TEU methanol dual-fuel vessels.
26 June Marine 2030 emissions could be cut 28-47pc: Delft Shipping emissions could be cut by 28-47pc by 2030, relative to 2008 levels, according to a report by consultancy CE Delft, with half the cuts coming from lower speeds, a quarter from wind-assisted propulsion and another quarter from green ammonia.
26 June IMO discussions start ahead of key GHG meeting International Maritime Organisation (IMO) member states are meeting behind closed door to progress the revision of the organisation’s greenhouse gas (GHG) strategy, ahead of the 80th meeting of the Marine Environment Protection Committee (MEPC 80) next week.
26 June H2 Green Steel turns attention to shipping industry Swedish low-carbon steelmaker H2 Green Steel is looking into supplying renewable hydrogen to Swedish ferry operator Gotland Company.
26 June Weak US LNG deliveries could weigh on European sendout Maintenance at the 33mn t/yr Sabine Pas LNG export terminal throughout this month has led to a drop in US loadings and coupled with an open inter-basin arbitrage that has also pulled supply away from Europe could mean early-July LNG sendout at Europe’s regasification terminals will slow.
Conventional marine fuels
30 June China’s fuel oil output continues to fall in May China’s fuel oil production in May fell to 4.38mn t (911,000 b/d) from April’s 4.96mn t, after setting a new monthly record of 5.15mn t in March, according to National Bureau of Statistics (NBS) data.
30 June Long-term US refining decline outweighs 2022 growth US refiners expanded capacity in 2022 for the first time in two years following multiple pandemic-era closures and conversions, but the growth is unlikely to change a long term downward trajectory.
30 June Singapore’s light distillates stocks slip Singapore’s light distillates stocks slipped further to a six-month low in the week to 28 June, as naphtha exports increased.
30 June European diesel maret tightens European diesel supply has tightened, leading to a rally in refining margins and prompt prices relative to those further forward.
29 June Mexico to fete promised refinery amid output dip Mexico will ceremonially inaugurate the under-construction 340,000 b/d Olmeca refinery on 1 July as promised by President Andres Manuel Lopez Obrador under his nationalist energy policy, amid a dip in national refining output.
29 June Union issues west Canada port strike notice The International Longshore and Warehouse Union (ILWU) Canada division gave Canada’s British Columbia Maritime Employers Association (BCMEA) a 72-hour strike notice yesterday.
29 June Chinese oil demand downside risks intensify Chinese oil demand remained high in May but emerging signs of weakness suggest a significant pullback is on the cards.
29 June ARA oil product stocks hit 25-week low Independently-held oil product stocks at the Amsterdam-Rotterdam-Antwerp (ARA) hub shed 2pc in the week to 28 June, hitting .77mn t, according to consultancy Insights Global, and their lowest since 5 January. An 8pc drop in jet inventories drove the downturn, settling at 758,000t.
29 June Phillips 66 to restore west Texas fuel supply US independent refiner Phillips 66 plans to restore fuel supply to customers of its 149,000 b/d Borger, Texas, refinery after placing gasoline and diesel buyers on allocation earlier this month.
29 June China diesel exports to rise despite quota limits China is starting to raise exports of diesel in response to weak domestic demand and improving arbitrage economics.
29 June Heavy sour diffs firm on HSFO strength Heavy sour crude prices in the US Gulf coast are rising compared with light sweet crude in Cushing, Oklahoma, alongside higher high-sulphur fuel oil (HSFO) prices and more favorable margins.
28 June Mexico fuel oil exports at record high Mexican residual fuel oil exports in January-May rose to a record for the five-month period on strong demand from the US, the Nethrlands and Singapore, but Asian demand is poised to ease.
28 June India’s BPCL plans partial shutdown at Mumbai refinery Indian state-controlled refiner Bharat Petroleum (BPCL) plans to partially shut its 240,000 b/d Mumbai refinery from mid-September for maintenance, a company official told Argus on 28 June.
28 June Russia grabs bigger slice of Turkey’s diesel imports Turkey’s diesel imports declined on the month in April, with Russia taking a bigger share, according to the latest data from Turkish energy regulator EPDK.
28 June Diesel demand in France subdued in May Diesel demand in France appears low, as subdued construction activity and broader industrial confidence lags in the EU’s second largest economy.
28 June Petrobras to increase R diesel output Brazil’s state-controlled Petrobras will more than double its co-processed diesel production capacity to 12.3mn l/d (77,365 b/d) from 5mn l/d this year.
27 June South Korean gasoil exports rise to 9-month high in May South Korea’ gasoil exports hit a nine-month high in May, in tandem with higher gasoil production during the month.
26 June Carnival pares losses, expects to turn profit US cruise ship operator Carnival’s pared its losses below $500mn in its latest quarter for the first time since early 2020 when Covid-19 struck and it expects smoother sailing ahead on strong bookings.
26 June Suez Canal Authority updates fixed rebate scheme The Suez Canal Authority (SCA) has released an updated version of its fixed rebate scheme, according to ship agent Leth Agencies.
