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.
PDVSA Oil Port Paralyzed by Another Blackout
Venezuela's main oil export port of Jose and the country's four crude upgraders have been unable to resume operations following a massive power blackout on Monday, according to industry workers and a union leader close to the facilities.The most recent oil shipment for export, on the carrier Dragon chartered by Russia's Rosneft, left Jose, which is owned by state-run PDVSA, on March 24, according to Refinitiv Eikon vessel-tracking data and PDVSA's trade documents."There is no electricity…
Euronav to Deploy ULCC for LSFO Storage
Euronav, one of the largest tanker companies in the world, will deploy one of its two ultra large crude carriers (ULCC) to store cleaner marine fuel ahead of a major regulatory change in 2020, the Belgium-headquartered group said on Friday.From January 2020, the International Maritime Organization (IMO) will ban ships from using fuels with a sulphur content above 0.5 percent, compared with 3.5 percent now, in one of the biggest changes in the oil market in decades.Only ships fitted…
Oil, Gas Majors Join Blockchain Consortium
A group of seven major oil and gas companies, including ExxonMobil Corp., Chevron Corp. and ConocoPhillips, announced a partnership to establish the first industry blockchain consortium in the United States.With several use cases across the industry value chain, the consortium intends to conduct proofs of concept with this emerging technology in 2019, said a press release from OOC Oil & Gas Blockchain Consortium.The OOC Oil & Gas Blockchain Consortium was founded to advance industry blockchain technology learnings for the purpose of driving industry standards…
UAE, Greece, USA: Worst Vessel Dumpers
The United Arab Emirates (UAE), Greece and the United States of America (USA) top the list of country dumpers of ocean-going commercial vessels in 2018, according to new data released today by the NGO Shipbreaking Platform.UAE owners were responsible for the highest absolute number of ships sold to South Asian shipbreaking yards in 2018: there were 61 ships in total.Greek owners, beached 57 vessels out of a total of 66 sold for demolition. American owners closely followed with…
AsiaPac Oil and Gas Industry Looks Up
Confidence in the outlook for Asia Pacific’s oil and gas industry has more than doubled in the past two years, according to new research published by DNV GL, the technical advisor to the oil and gas industry.According to a new research from DNV GL, three quarters (76%) of senior oil and gas professionals in Asia Pacific are optimistic about the industry’s growth in 2019, compared with 58% in 2018 and 30% in 2017. The proportion of industry leaders who are confident in their own organizations’ prospects has also risen from 59% last year to 74% in 2019.
Zhenhua Buys First LNG Cargo from Chevron
China's state-run Zhenhua Oil purchased its first liquefied natural gas (LNG) cargo from Chevron Corp to supply a South China-receiving terminal that it won access to in a recent auction, according to Zhenhua officials on Thursday.The 100-million-cubic-meter cargo was purchased at about $0.30 per million British thermal unit discount to Japan Korea Marker (JKM) quotes on a delivered basis, the officials added.The cargo, discharged at CNOOC's Yuedong terminal in Shenzhen, was sourced from the Australian Gorgon project operated by Chevron.Zhenhua and its local partner Longkou agreed in September
Singapore Petroleum Builds New Oil Storage, Distribution Center
Singapore Petroleum Company, a subsidiary of PetroChina International, said in a statement on Friday it completed a new oil products storage and distribution terminal on Jurong Island, an artificial island off Singapore's southwest coast.The terminal "will allow us to develop our marketing network and to serve the growing needs of our customers in Singapore," Xia Hongwei, managing director of PetroChina International (Singapore) said in the statement.The terminal comprises 10 storage tanks with a total capacity of 50,000 cubic meters for gasoline and gasoil.The terminal is connected via pipeli
ENN Starts First Phase of Zhoushan LNG Import Terminal
Chinese gas distributor ENN Energy Holdings has begun operations at the first phase of its Zhoushan liquefied natural gas (LNG) import terminal, Vice President Ma Shenyuan said, speaking at a commencement ceremony for the terminal on Friday.As ENN aims to ramp up winter supplies in eastern China, the tanker 'Asia Integrity' docked at the Zhoushan terminal on the same day, bringing 145,000 cubic meters of LNG from Australia supplies to mark the launch of China's first privately…
Synergy Group Launches iCALL Help Line
Synergy Group has launched a new counselling service aimed at improving mental health support for sea- and shore-based maritime personnel.iCALL is a free psychological helpline for the worldwide maritime community available 24/7 in nine different languages via phone, email and the chat-based nULTA App.“Numerous studies into the psychological health of seafarers have shown that large numbers of seafarers suffer from obvious manifestations of impaired psychological well being such as social isolation and depression…
Chevron Eyes Houston Ship Channel for 2nd US Gulf Refinery
Chevron Corp wants to build or buy a refinery along the U.S. Gulf Coast to process crude oil from its rapidly growing Permian Basin operations, a senior executive said on Tuesday.The company would like to have refining operations on the Houston Ship Channel, in the western part of the U.S. Gulf, to complement an existing eastern Gulf refinery in Mississippi that makes lubricants and other materials, Pierre Breber, Chevron's head of downstream and chemicals, said."Something on the ship channel side could make a lot of sense for our company…
China LNG Tariff Casts Shadow Over New US Export Terminals
China set a 10 percent tariff on U.S. liquefied natural gas (LNG) imports, extending a trade dispute into energy and casting a shadow over U.S. export terminals that would propel the United States into the world's second-largest LNG seller.Beijing on Tuesday said it would tax U.S. products worth $60 billion effective Sept. 24 in retaliation for tariffs imposed by U.S. President Donald Trump in an escalating trade war.The rate was smaller than the 25 percent tariff China had touted earlier, which offered some relief and helped shares in listed U.S.
PDVSA to Reopen Damaged Port Dock by Month's End
PDVSA expects to reopen the south dock of Venezuela's main oil port Jose by the end of September, easing strains on crude exports delayed due to a tanker collision last month, according to internal trade documents from the state-run oil firm seen by Reuters.Last week, PDVSA began diverting tankers to Puerto la Cruz for loading, but the South American country's crude exports have remained slow in recent weeks as few customers have accepted the 500,000-barrel-per-cargo maximum neighboring terminals can handle.Besides Puerto la Cruz…
PDVSA to Divert Tankers to Nearby Port after Collision
Venezuela's state-run PDVSA is organizing a contingency plan to address its latest oil-export problem following a minor accident last week at the country's main crude terminal, two sources from the firm told Reuters on Friday.A tanker collision that damaged Jose port's South dock and forced its closure has added to delays in loading crude for export, especially to customers such as Russia's Rosneft and U.S.-based Valero Energy Corp and Chevron Corp.Oil tankers that were assigned…
Roll Group Awarded Contract for Shipment of Three Boilers
Roll Group has been awarded a contract by Fagioli and Macchi for the transportation of three large boilers for the Gulf Coast Growth Ventures project. Presently the voyage from Porto Marghera (Italy) to Corpus Christi (USA) is scheduled to take place between August and September 2019. Each of the three boilers weigh in excess of 1000 metric tons.The dimensions of the boilers to be transported in 2019 are all identical with a length of 30.30m, a width of 16.40m and a height of 22.70m.
Transocean Signs 11 Well Contract with Chevron Australia
The international provider of offshore contract drilling services for oil and gas wells Transocean announced that the ultra-deepwater semisubmersible GSF Development Driller I was awarded an 11-well contract (approximately 955 days) commencing offshore Australia in the first half of 2019 with Chevron Australia.The estimated firm contract backlog, excluding integrated services, is approximately USD 158 million. Additionally, the contract includes four one-well options.Two days ago…
China's Tariffs on US Oil Would Disrupt $1 Bln Monthly Business
China's threat to impose duties on U.S. oil imports will hit a business that has soared in the last two years, and which is now worth almost $1 billion per month.In an escalating spat over the United States' trade deficit with most of its major trading partners, including China, U.S. President Donald Trump said last week he was pushing ahead with hefty tariffs on $50 billion of Chinese imports, starting on July 6.China said Friday it would retaliate by slapping duties on several American commodities, including oil.Investors expect the spat to come at the expense of U.S.
C-MAP Wins Chevron Shipping Contract
Following a competitive tender, Chevron Shipping Company LLC (CSC) has selected smart shipping solutions from C-MAP, a provider of commercial marine charting and cloud-based software solutions for fleet management and route optimization.CSC will deploy C-MAP’s onboard platform that employs advanced algorithms and customized ship performance models to deliver voyage optimization. The platform, called Integrated Maritime Suite (IMS), enables users to optimize routes to get the fastest arrival times…
Gorgon LNG Export Plant Shuts Third Unit for Maintenance
Chevron's Gorgon liquefied natural gas (LNG) export facility in Australia shut down its third production unit on Wednesday for a planned maintenance lasting up to Dec. 25, trade sources said. Chevron declined to comment on operational matters. Several traders said the plant would resume output on Dec. 25 but some sources said the maintenance period could vary, with a potential return after one week. Work seeks to help address what is expected to be a long-term issue related to the plant's heat-exchangers, limiting the project's productive capacity.
Mark Ross Named OCIMF Chairman
Chevron Shipping Company president Mark Ross has been appointed as chairman of the Oil Companies International Marine Forum (OCIMF). The OCIMF Annual General Meeting voted on Tuesday to support the Executive Committee’s appointment of Ross, who has served as OCIMF vice-chair since 2015. Ross succeeds Shell’s Dr. Grahaeme Henderson, who stepped down as OCIMF chaurman in November after three years in the role. “I am honored to be working with OCIMF members to advance our priorities,” Ross said.
Asian LNG Spot Prices Jump on Chinese, Japanese Demand
Asian LNG spot prices jumped this week on strong demand from core importing countries including China and Japan. Spot prices <LNG-AS> for February delivery leapt 70 cents to $11.20 per million British thermal units (mmBtu). Malaysia's Petronas sold a January cargo to Japanese trading giant JERA an estimated $11 per mmBtu, trade sources said. JERA is contracted to take 5.2 million tonnes per year of LNG from Chevron's Wheatstone export project which has been offline for the past four weeks as part of the plant's complex start up procedure.
Gorgon LNG Faces Scrutiny on Delayed Carbon Capture Project
The state of Western Australia has ordered an inquiry into a delay in burying carbon dioxide emissions at Chevron Corp's Gorgon liquefied natural gas (LNG) project, which could lead to a change in conditions on the project.The state approved the $54-billion Gorgon project in 2009 on the condition that at least 80 percent of carbon dioxide released in its gas processing operations over a five-year rolling average period would be buried."It has become apparent there needs to be a clearly defined start point for the commencement of the five-year rolling average…
GTT Bags Korean Order for Three New LNG Carriers
GTT has received an order from a South Korean shipyard regarding the design of the LNG tanks of 3 new LNG carriers. The deliveries are due in the first semester of 2020. GTT will design the LNG tanks of the units, each having a capacity of 174,000 m3. The tanks will be equipped with the membrane containment system Mark III Flex, a sea-proven technology developed by GTT. This insulation system guarantees a Boil-Off Rate of 0.085%V/day. It has already been used to equip 48 vessels in service today.
Chevron Shipping Awards Oil, LNG Contract to GAC
US-based Chevron Shipping Company (CSC) has awarded the Dubai-based GAC Group a global three-year ship agency contract for both crude and LNG vessels. The new agreement secures the provider of shipping, logistics and marine services GAC’s status as Chevron’s exclusive global agent in a partnership that spans more than 20 years, more than 15 of which have seen GAC as its sole global agent. Operations will be overseen by GAC Hub Agency offices in Dubai, Houston and Singapore with support from GAC’s network of offices and approved agents worldwide.
Sempra Energy to Build Liquid Fuel Terminal in Mexico
Sempra Energy announced that its Mexican subsidiary, Infraestructura Energética Nova, S.A.B. de C.V. (IEnova), plans to develop, build and operate a receipt, storage and send-out liquid fuels marine terminal at the La Jovita Energy Hub in Ensenada, Mexico. With an expected investment of approximately USD 130 million, the new Baja Refinados liquid fuels terminal will have an initial storage capacity of 1 million barrels of gasoline and diesel that will increase the fuel supply capacity and reliability in Baja California.
Grindrod Sells Off Bunker Division
South African ship owner Grindrod has sold its bunker division, Unicorn Bunker Services (Pty) Ltd., for an undisclosed sum to new co-owners WOESA (Women in Oil and Energy South Africa) and Linsen Nambi.Financed through the Industrial Development Corporation (IDC), the deal creates the nations first 100 percent black ship owners and facilitates the participation of black women and black youth in the maritime sector.Unicorn Bunker Services was established in 2006 a division of Grindrod Freight Services and operates three bunker tankers in the ports of Durban and Cape Town under contract to BP…