Jurong Port Buys Lim Family's Stake in Universal Terminal
Singapore port operator Jurong Port has completed its acquisition of a stake in a major oil storage terminal in the city-state from the family behind collapsed oil trader Hin Leong Trading Pte Ltd, a port spokesman said on Saturday.The spokesman said government-owned Jurong Port had completed the purchase of a 41% stake in Universal Terminal from the Lim family. He declined to give details on the transaction.A lawyer for the family did not immediately respond to a Reuters email…
China Ramps up US Oil Purchases Ahead of Trade Deal Review
U.S. crude oil shipments to China will rise sharply in coming weeks, U.S. traders and shipbrokers and Chinese importers said, as the world’s top economies gear up to review a January deal after a prolonged trade war.Chinese state-owned oil firms have tentatively booked tankers to carry at least 20 million barrels of U.S. crude for August and September, the people said, moves that may ease U.S. concerns that China’s purchases are trending well short of purchase commitments under the Phase 1 of the trade deal.China had emerged as a top U.S.
PDVSA Changes Oil Deals to Include Shipping as Sanctions Bite
Venezuelan state-run oil firm PDVSA has begun offering to ship its own oil, figuring in the costs in crude supply deals to help customers who have struggled to hire vessels to carry the country’s oil due to U.S. sanctions, according to company documents seen by Reuters.The United States has blacklisted vessel owners, shipping operators and threatened to sanction any tanker facilitating the country’s oil exports as it tightens restrictions on trade with the South American country.Washington has been trying to weaken socialist President Nicolas Maduro by choking the OPEC member’s oil exports…
China to Be Self-reliant in IMO-compliant Fuel
Chinese refiners have the capacity to produce 18.1 million tonnes of low-sulphur fuel oil (LSFO) this year, which would make the country self-sufficient in the new shipping fuel, an official with state major PetroChina said on Monday.China has been striving to reduce its reliance on bunker fuel imports and is aiming to create its own marine fuel hub to supply northern Asia.About 20 refineries, mostly under state-run Sinopec Corp, PetroChina, CNOOC and Sinochem, installed equipment to produce 0.5% sulfur fuel that meets International Maritime Organization (IMO) rules that came into force at the
Sembcorp Begins Proceedings Against Hin Leong Affiliate
Sembcorp Industries on Monday said its Sembcorp Cogen unit had begun legal proceedings to assert ownership over some gasoil reserves stored in tanks at Singapore's Universal Terminal, partly owned by oil trader Hin Leong Trading Pte Ltd.Just last week, Sembcorp Cogen terminated its gasoil supply and storage agreement with Hin Leong Trading, which is being monitored by Singaporean authorities.Sembcorp Cogen on April 24 obtained a court order to restrain Universal Terminal from moving…
China's Bunker Fuel Demand Plummets
China's marine fuels sales fell by as much as 50% in February as the rapidly spreading coronavirus and prolonged Lunar New Year break strangled freight movement in and out of the global manufacturing powerhouse, trade sources said.The epidemic, which has killed almost 3,000 people and infected about 80,000 in China alone, triggered the sharpest contraction on record for Chinese factory activity in February and caused massive port congestion because of labor shortages.The resulting plunge in freight demand has knocked 40% off Asian prices for very low-sulphur fuel oil (VLSFO) since early Januar
Coronavirus Paralyzes Oil, Gas Sales into China
Short-term sales of crude oil and liquefied natural gas into China almost ground to a halt this week as the coronavirus slows economic activity and cuts demand and buyers ponder legal action to avoid having to honor purchase agreements, trade sources said.Typically, trade would have revived after the Lunar New Year holiday at the end of January, but China has extended the break into February to try to contain the fast-spreading coronavirus, which has claimed nearly 500 lives.As a result…
China Tax Waiver for Cleaner Ship Fuel Exports
China has approved a long-awaited tax waiver on exports of cleaner ship fuel, paving the way for refiners to boost output, though Beijing may initially limit shipments to focus on growing its coastal marine fuel market, state refiner officials say.Ships globally have switched to lower sulphur fuels, or use emissions-removing devices, to comply with new rules imposed by the International Maritime Organization this year.China's State Council, or cabinet, gave the go-ahead to waive taxes on the 0.5% or very low sulphur fuel oil (VLSFO)…
China Stocks up on VLSFO Ahead of IMO2020 Deadline
Chinese marine fuel suppliers have signed up short-term deals to buy very low-sulphur fuel oil from companies like oil major Shell, Germany's Uniper and U.S. commodities trader Freepoint ahead of a new standard on emissions for the global shipping industry that kicks in on Jan. 1.While China's state refiners have pledged to produce a combined 14 million tonnes of the fuel for 2020 that complies with the tighter rules set by the International Maritime Organization (IMO), Beijing…
Milorad Doljanin New CEO of Avenir LNG
UK-based small-scale liquefied natural gas (LNG) supplier Avenir LNG announced that Milorad Doljanin will assume the role of Chief Executive Officer with effect December 13th, 2019.According to a press release from the shipping venture backed by Stolt-Nielsen, Golar LNG and Höegh LNG, Doljanin joined in August 2019 as COO.He brings 15 years of LNG trading and commercial experience with PetroChina, Gazprom, EON and BP.Commenting on his appointment, Milorad said “This is an exciting time for Avenir LNG…
BAM Bags 2nd JV Contract in Canada
JGC-Fluor joint venture has awarded BJM the contract for the construction of the LNG Canada MOF, a material offloading facility to support the realization of a LNG export facility in Kitimat on the west coast of Canada, British Columbia (approximately 600 km north-west of Vancouver).BJM is a joint venture between BAM International (the operating company of Royal BAM Group active outside Europe), JJM Construction (Canada) and Manson Construction (USA).The project is part of the overall LNG Canada project.
PetroChina Starts Gasoline Exports to India
China's PetroChina International Co Ltd shipped a cargo of 92 octane gasoline to India, marking the company's first direct refined oil shipment to the country, its parent company China National Petroleum Corp (CNPC) said in a statement on Tuesday.A tanker, departing from Qinzhou Port in China's south province Guangxi, will deliver the gasoline to India's state-owned Hindustan Petroleum Corp Ltd, according to CNPC.The statement did not mention the volume of the export.PetroChina International clinched its first long-term contract to provide gasoline to Hindustan Petroleum in March, CNPC said.Ea
U.S. Sanctions Bite; Traders Shun 300 Tankers
Nearly 300 oil tankers globally have been placed off limits as companies fear violating U.S. sanctions against Iran and Venezuela, driving freight rates to new highs, industry sources said.The move has taken roughly 3% of the global oil tanker fleet out of the market, according to industry sources and data on Refinitiv Eikon, sending rates soaring to secure tankers to ship oil, particularly to Asia."Freight rates are going through the roof and people are getting very nervous with the cost of shipping…
PDVSA Insists it's Still Working with BSM
Venezuela's state-run oil company PDVSA said on Thursday it has not halted business with maritime firm Bernhard Schulte Shipmanagement (BSM), even after the German firm said it would remove the crews that have been operating 10 of 15 PDVSA vessels over unpaid fees and return the tankers.On Tuesday, PDVSA's maritime arm PDV Marina declared an emergency due to lack of staff to immediately receive the 10 vessels BSM proposed to return to Venezuelan ports due to unpaid bills of at…
BAM International Begins Kitimat Wharf Contract
The Hague-based BAM International, together with JJM Construction (Canada) and Manson Construction (USA), has received the full order to build the new Rio Tinto BC Works Terminal A on behalf of LNG Canada.The mobilisation and construction works being carried out by BAM and its partners for the Rio Tinto Terminal A expansion have started. BAM expects to complete this project in Autumn 2020.The project is valued at CAD 135 million, with BAM’s share amounting to 50% and JJM and Manson covering the other 50%.
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
Build It and They Will Buy: The New World of LNG Canada
The first major liquefied natural gas (LNG) project to be approved globally in five years will be built in Canada, but its underlying philosophy appears to be more closely allied to the Australian concept of "she'll be right, mate."The LNG Canada project was given the green light on Tuesday by Royal Dutch Shell, which is leading the $31 billion venture along with partners Petronas, Mitsubishi, PetroChina and Korea Gas.What makes the first export plant on Canada's west coast different…
Unipec Suspends US Oil Imports as Trade Spat Intensifies
China's Unipec, the trading arm of state oil major Sinopec, has suspended crude oil imports from the United States due to a growing trade spat between Washington and Beijing, three sources familiar with the situation said on Friday.The sources declined to be identified as they are not authorised to speak to the media.It is not clear how long the temporary halt will last, but one of the sources said Unipec has no new bookings of U.S. crude until at least October.Unipec and Sinopec, Asia's largest refiner and biggest buyer of U.S.
Supertanker Hauling Saudi Crude U-turns After Recent Attack
A supertanker carrying Saudi Arabian crude has turned around near the Bab El-Mandeb strait, days after the world's top exporter said it was suspending all oil shipments through the strait following an attack by Yemen's Iran-aligned Houthi movement on two other ships.The Khuzama, a Very Large Crude Carrier (VLCC) transporting about 2 million barrels of oil, has made a U-turn and is now sailing east - ClipperData and Reuters vessel tracking data.Yemen, where a Saudi-led coalition has been battling the Houthis in a three-year war, borders the strait, which connects the Gulf of Aden to the Red Sea
Ice-Breaking LNG Carrier Vladimir Rusanov First Call at PetroChina LNG Jiangsu Terminal
Mitsui O.S.K. Lines (MOL) announced that the Ice-Breaking LNG Carrier "Vladimir Rusanov", which is jointly owned by MOL and China COSCO Shipping Corporation Limited for the Yamal LNG project, made its first call at PetroChina LNG Jiangsu Terminal in China on 17 July.A ceremony celebrating this milestone was held on 19 July.At the end of March 2018, the vessel started transportation services for LNG produced by the Yamal LNG plant at Sabetta port in Russia. For its latest voyage…
US Oil Exports to India Soar Ahead of Iran Sanctions
U.S. crude oil exports to India hit a record in June and so far this year are almost double last year's total as the Asian nation's refiners move to replace supplies from Iran and Venezuela in a win for the Trump administration.U.S. President Donald Trump's administration has been pressuring its allies to cut imports of Iranian goods to zero by November and India's shift advances the U.S. administration efforts to use energy to further its political goals.The United States has become a major crude exporter…
Petronas Buys Stake in Canadian LNG Export Project
Malaysia's state-owned oil and gas company Petroliam Nasional Bhd said on Thursday it is buying a 25 percent stake in a Canadian liquefied natural gas (LNG) export project, nearly a year after cancelling its own planned terminal.The company, known as Petronas, scrapped plans to build a $36 billion ($28 billion) LNG export terminal in British Columbia last year over concerns of a glut in the market that led to depressed fuel prices.But surprisingly strong demand from China, South Korea and India has erased those concerns…
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.
Dynagas Announces TC for LNG Carrier Pair
Dynagas LNG Partners has announced that a Partnership has entered into a new three year charter agreement with Statoil ASA (Statoil) for the employment of the Arctic Aurora, its 2013-built, 155,000 cubic meter, tri-fuel diesel engine, ice class liquefied natural gas (LNG) carrier. The Arctic Aurora is currently, and has been since 2013, on charter to Statoil. The Extended Charter is expected to commence in the third quarter of 2018 in direct continuation of the Current Charter…
Restrata, Agility Partnership in Training at REP, Iraq
Restrata, a global leader in consultancy and training services, has partnered with leading logistics provider Agility to offer specialised training for oil and gas sector employees at the Rumaila Energy Park (REP) in southern Iraq. The REP's new training centre will offer a wide range of courses related to health and safety and oil and gas industry operations. All training courses meet international standards, are accredited, and include transportation, catering and security services.
Unipec, Largest Dirty Tanker in Spot Charterer
China’s Unipec remained the top spot charterer of dirty tankers and VLCCs in the first half of 2016, according to Poten & Partners. In stock of the spot market activity in the dirty tanker market nothing (much) has changed between 2015 and 2016. The top seven charterers are exactly the same as last year. Unipec is still on top and even expanded its lead slightly (from 13.4% of the total in 2015 to 13.8% in 2016 YTD). Not surprisingly, the leading charterers hail from China (Unipec, Petrochina), India (IOC, Reliance), complemented by the super-majors and the leading traders.