MOL Trials LNG-Fuelled Tugboat at Kobe
Japanese shipping company Mitsui O.S.K. Lines (MOL) has taken part in the first bunkering of liquefied natural gas (LNG) into a tugboat at the Port of Kobe, Japan.At the Port of Kobe, the tugboat “Ishin” was bunkered with LNG. It is the first LNG-fuelled tugboat in Japan and it is operated by a MOL group subsidiary, Nihon Tug-Boat.LNG fuel for the trial was hauled by a tanker truck from the Himeji LNG Plant of Osaka Gas, and, via a truck-to-ship system, was used to supply Ishin, berthed at Kobe Port’s Shinko Pier No.4. MOL Marine Co.
Cosmo Oil Builds IMO-compliant Fuel Stocks at Chiba Port
Japan’s third-largest oil refining company, Cosmo Oil, , has started building stocks of very-low-sulfur fuel oil (VLSFO) for supply to domestic marine fuel markets from next month (October 2019) ahead of the IMO 2020 mandate requiring ships globally to reduce their bunker fuel sulfur content to 0.5% from the current 3.5% from January 2020.Cosmo Oil is using VLSFO produced at its residue desulfurizer (RDS) unit at its Chiba refinery near Tokyo to build the stocks, Cosmo Oil’sPresident Shunichi Tanaka said on Sunday…
Euronav to Store Low-Sulfur Oil
The crude oil tanker company Euronav has purchased a total of 420,000 metric tons of compliant fuel oil and marine gasoil so far, the company revealed as it detailed its IMO 2020 sulfur cap plans. In aggregate the purchase value of very low sulfur fuel oil (VLSFO) has been at $447 per metric ton compared to a bunker price (HFO-3.5% Sulfur content) of $400 per metric ton over the same procurement period.According to the Belgium shipping company, the oil is currently aboard a ultra large crude carrier (ULCC) Oceania, a vessel built in 2003, and will soon be on its way to Singapore.
Green Group Asks Cosco to Avoid HFO in Arctic
Clean Arctic Alliance has sent its second letter to Cosco, in which the NGOs urge the Chinese liner company to make public what fuel types its vessels use in the Arctic.Responding to reports that the 190m-long COSCO-owned cargo vessel Tian’en is due to arrive in the Swedish port of Gävle on August 18, having traversed the Arctic’s Northern Sea Route between the Pacific and the Atlantic, Clean Arctic Alliance Lead Advisor Sian Prior said: “Earlier this year, the Clean Arctic Alliance wrote to COSCO requesting it make public the nature of the fuel that the Tian’en…
FLNG Innovations Boost Gas Industry Growth
Liquefied natural gas (LNG) technologies, such as floating LNG (FLNG) innovations, driven by its shorter construction lead times and lower capital investment costs, are increasingly becoming a viable option for increased gas deployments.FLNG helps mitigate siting constraints that shore-based infrastructure may face, pointed out the Kansas City-based engineering firm Black & Veatch.The provider of engineering, procurement and construction (EPC) services for energy also stressed…
Vitol Builds Refinery for New Ship's Fuel
Vitol, the world's largest independent oil trader, has started building a small oil refinery at its storage terminal in Malaysia that will provide low-sulfur fuel for ships, a senior company official said on Monday.The project consists of a crude distillation unit that can process 30,000 barrels per day of crude and is located on the same site as Vitol's oil storage terminal at Tanjung Bin in the southern Malaysian state of Johor, Vitol Asia's President and Chief Executive…
Fuel Futures: Diesel Will Spike on IMO2020
New marine fuel rules to boost diesel prices for at least a year -analystsGlobal prices for diesel and marine fuels should rise by October ahead of a January switchover to new, very low-sulfur marine fuels, and remain higher for at least a year as refiners shift production to make more of the new fuels, analysts said.Marine fuels containing no more than 0.5% sulfur by weight, down from the 3.5% currently used, to power ocean-going vessels will be required for ships without exhaust scrubbers on Jan.
Belships Hedges 2020 Fuel Oil Prices
Norwegian shipping company Belships has has entered into an agreement to hedge the price differential between compliant 0.5% sulphur fuel oil (VLSFO) and 3.5% sulphur fuel oil (HSFO).The secured exposure is for 24,000 tons of bunkers for the full calendar year 2020. The volume equals the annual fuel consumption of about four vessels. The fixed price differential is USD 198 per ton, with monthly settlements in 2020.The company's trading fleet will be physically ready by January 2020 to comply with the IMO Sulphur Cap 2020…
Oil Shipments from Georgia's Batumi Port Drop
Oil and oil-related shipments from Georgia's Black Sea port of Batumi dropped 24 percent in the first four months of 2019 from a year earlier, an official at a KazMunaiGas-operated terminal at the port said on Wednesday.Shipments of crude oil and refined oil products from Batumi have fallen in recent years, partly because Azerbaijan prefers to send its oil through the Baku-Tbilisi-Ceyhan pipeline or via its own terminal at the Georgian port of Kulevi, rather than from Batumi…
Aramco Buys Shell's Stake in Saudi JV
The Saudi Arabian Oil Company (Saudi Aramco) is planning to buy oil major Shell's 50% stake in Saudi Aramco Shell Refining Co (SASREF), a Saudi refining complex developed as a joint venture between the two oil companies, for $631 million.Abdulaziz Al-Judaimi, Saudi Aramco‘s Senior Vice President of Downstream, said: “The partnership with Shell has led to a strong record of performance and delivery of refined products. Saudi Aramco will take full ownership and integrate the refinery into its growing Downstream portfolio.
Oil Edges Above $71
Oil held above $71 a barrel on Tuesday, supported by falling Venezuelan and Iranian exports and fighting in Libya that raised concerns of more supply threats, outweighing expectations of higher U.S. inventories.In Libya, fighting between Khalifa Haftar's Libyan National Army and the internationally-recognised government has raised the prospect of lower supplies from another OPEC member. U.S. sanctions on two others, Iran and Venezuela, are cutting shipments."Collapsing Venezuelan oil output and sanctioned Iranian exports have a put big question mark over supply…
Study Shows LNG Forming Pathway to IMO 2050
Greenhouse Gas (GHG) reductions of up to 21% are achievable now from LNG as a marine fuel, compared with current oil-based marine fuels over the entire life-cycle from Well-to-Wake (WtW).An independent study report confirms that emissions of other local pollutants, such as sulphur oxides (SOx), nitrogen oxides (NOx) and particulate matter (PM), are close to zero when using LNG compared with current conventional oil-based marine fuels.The study, commissioned by SEA\LNG and SGMF, was conducted by leading data and consultancy provider thinkstep according to ISO standards.
Rystad Expects Oil Price Rally in H1 of 2020
The energy research and business intelligence company Rystad Energy expects that a short-lived price rally through the first half of 2020 as oil prices approach $70 a barrel.It will then lose momentum and be replaced by a need for additional production cuts by Russia and the cartel of oil producing countries, OPEC, the Norway-headquartered firm said.“We retain our bullish stance for the second half of 2019 and first half of 2020 as we anticipate OPEC+ to extend production cuts through 2019…
IMO 2020: Exxon Mobil Projects 25% Decline in High-Sulfur Fuels
Exxon Mobil Corp expects high-sulfur fuel oil demand to fall 25 percent by 2025, as a new set of emission regulations from the International Maritime Organization capping sulfur content in shipping fuel at 0.5% kicks in in 2020, a top-level official at the U.S. oil and gas company said on Monday.The International Energy Agency has forecast high-sulfur fuel oil demand to fall 60 percent next year, while marine gas oil demand to more than double.Exxon's forecast comes as its refining business is struggling to find enough heavy crude to make fuel oil and other distillates…
HazSub Spill Response Plans
On August 18, 1990, the Oil Pollution Act of 1990 (OPA 90) was enacted into law. Section 4202 of that Act amended the Federal Water Pollution Control Act (FWPCA or Clean Water Act) to require tank vessels and marine transportation-related facilities to prepare and submit to the US Coast Guard plans for responding, to the maximum extent practicable, to a worse case discharge, and to a substantial threat of such a discharge, of oil or a hazardous substance carried in bulk as cargo.
IMO 2020: Shell, HES to Resurrect Refinery
Royal Dutch Shell has struck a deal with Dutch tank terminal firm HES International to partially restart a German oil refinery mothballed since 2011 in response to new restrictions on marine fuels, two trading sources told Reuters.A new cap set by the International Maritime Organization (IMO) that will cut the sulfur content in shipping fuel to 0.5 percent from 3.5 percent from next year is set to be one of the biggest fundamental events to hit oil markets in years.HES Wilhelmshaven…
Hedge Funds Buying Oil Despite Trump's OPEC Comments
Hedge funds continued to boost their bullish position in crude and fuels last week despite a call from U.S. President Donald Trump for OPEC to "relax and take it easy".Hedge funds and other money managers were net buyers of an extra 16 million barrels of Brent crude futures and options in the week to Feb. 26, according to ICE Futures Europe.Fund managers have been net buyers of 155 million barrels of Brent futures and options since Dec. 4, increasing their net long position in 11 out of the last 12 weeks (https://tmsnrt.rs/2EJUvB4).Funds were net buyers in the week to Feb.
Spanish Port Hosts First LNG Operations
The port of Ferrol hosted its first liquefied natural gas (LNG) bunkering operation recently which saw two ferries filled with LNG by Repsol in the port’s Mugardos terminal.Recently built by Turkish shipyard Tersan, the Samnøy and Huftarøy ferries received 178 cubic metres of fuel from five tanks in total. The Samnøy received about 110 cubic metres of fuel, whereas the Huftarøy was supplied with 68 cubic metres.The two operations were carried out on the outer jetty, which…
LNG Bunkering Takes Off in Rotterdam
The throughput of LNG - liquefied natural gas - as bunker fuel in the Rotterdam bunker port increased considerably from 1,500 to 9,500 tonnes in 2018.Meanwhile, the sale of bunker oil - fuel for shipping - in the bunker port decreased from 9.9 million m3 to 9.5 million m3. The decrease can almost entirely be ascribed to the decline in sales of heavy fuel oil from 8.3 million m3 to 7.9 million m3.The Port of Rotterdam Authority suspects that the decline in bunker volumes in Europe’s largest bunker port is a consequence of the increased scale and use of modern vessels in container shipping.
FLNG Market Grows a CAGR of +93%
Global floating liquefied natural gas (FLNG) market is growing at a CAGR of +93% during forecast period 2019-2026 as the demand for natural gas has been rising as it is a preferred fuel in power generation in various industries.According to a report from Research N Reports, the demand comes from mainly for the regions such as North America, Europe, China, Japan, Southeast Asia and India.Natural gas is cleaner, safer, and more cost-effective than other fuels. It has the potential to significantly reduce greenhouse gas (GHG) emissions…