Pilot Thomas Logistics Expands Gulf Coast Reach
Fuel, lubricants and petroleum solutions provider Pilot Thomas Logistics (PTL) and its family of companies including Radcliff/Economy, Maxum Petroleum and Economy Boat Store, announced that PTL has received authorization from MSD Victoria to perform over the water transfers in the Houston-Galveston and Texas City Sectors. The authorization expands and extends the service area that now encompasses the entire Western Gulf Coast from Brownsville, Texas to Lake Charles, La."We’ve had early operational success in Brownsville…
Offshore Oil Wells, Ports Shut as Hurricane Sally Advances on U.S. Gulf
Energy companies, ports and refiners raced on Monday to shut down as Hurricane Sally grew stronger while lumbering toward the central U.S. Gulf Coast, the second significant hurricane to shutter oil and gas activity over the last month.The hurricane is disrupting oil imports and exports as the nation's sole offshore terminal, the Louisiana Offshore Oil Port (LOOP), stopped loading tanker ships on Sunday, while the port of New Orleans closed on Monday.The U.S. government said 21%…
US Energy Exports Severely Disrupted by Hurricane Laura
Oil and gas exports from the United States have been severely disrupted by Hurricane Laura, with nearly a million barrels per day (bpd) of crude exports likely reduced this week by closures of U.S. Gulf Coast terminals and disruptions at ports.The hurricane also temporarily suspended operations at several liquefied natural gas (LNG) facilities in the world’s third largest exporter of the super-cooled gas, with shipments on track to fall to their lowest in 18 months.Laura made landfall early Thursday near the Texas-Louisiana border…
US Oil Exports to Europe Rebound
The United States has increased oil supply to Europe in July for the first month since May, making up for output cuts from OPEC+ members, according to traders and Refinitiv Eikon data.U.S. crude supply to Europe reached nearly 31 million barrels in July, according to Refinitiv Eikon data as of July 24. With crude prices back above $40 a barrel, U.S. producers have rushed to claim market share while the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is still cutting supply drastically.U.S.
Port Houston Tops Container Record
Container activity at Port Houston surged in 2019, logging an 11% increase to better the port's previous record. This marks the 18th consecutive year of container growth at the U.S. Gulf Coast's largest container port.Among the nation’s top 10 container ports, Port Houston was 2019’s fastest-growing, according to data from maritime sector data vendor IHS Markit PIERS.Port Houston nearly hit the 3 million mark for 20-foot equivalent units (TEU), recording 2,987,291 TEU.Executive…
Corpus Christi Crude Exports Boom
U.S. crude exports from Corpus Christi, Texas, have surged to a record in recent weeks, often surpassing hubs such as Houston and Beaumont, Texas, thanks to faster-than-expected infrastructure additions.The infrastructure boom at Corpus Christi helped push crude exports there to a weekly record of 1.59 million barrels per day (bpd) in late December, more than doubling levels that held for the first eight months of last year, and above Houston's 2019 peak of 1.36 million bpd, according to vessel-tracking firm ClipperData.The heavy flows suggest that fears of a bottleneck that would impede U.S.
U.S.-Europe Tanker Rates at Record Highs
Rates for Aframax-class crude oil tankers leaving the U.S. Gulf Coast hit a record this week, according to three shipbrokers, reflecting strong demand in Europe and the Mediterranean for low-sulfur crude.Equinor ASA and Unipec, the trading arm of China's top refiner Sinopec, provisionally chartered Aframax tankers Everest Spirit and Nordorchid, respectively, this week at rates of 245 worldscale points, according to one broker and Refinitiv Eikon data. Both vessels are headed to Europe.The worldscale rate translates to about $60…
Energy Transfer: VLCC Offshore Port to be Ready Early 2023
Energy Transfer LP said on Thursday discussions with potential shippers to build an offshore crude export facility in Texas capable of handling supertankers were progressing on schedule, with the project expected to be in service by late 2022 or early 2023.The company has also made advances on the regulatory and permitting process for the project, Marshall McCrea, Energy Transfer's chief commercial officer, said on the company's quarterly earnings call.Plans call for the facility to be connected to Energy Transfer's Nederland…
Exxon, Trafigura Tap Lower Freight Rates
U.S. crude exports to Asia, which have slumped due to record freight costs, stirred on Thursday as rates slid and the premium in Asia for Russia's ESPO Blend oil sent buyers back to U.S. grades, according to market sources.Oil shipping costs for United States Gulf Coast to Asia cooled this week from record highs on the prospect of more vessels becoming available. Nearly 300 oil tankers globally were placed off limits due to U.S. sanctions on Iran and Venezuela.Seventeen supertankers returned to service in October after being sidelined for overhauls, as 11 entered drydocks.
Disruptions to Global Shipping Industry Explained
Oil shipping rates are soaring following a series of sanctions on a Chinese transportation giant and limitations placed on movement of Venezuelan crude oil tankers.WHAT HAS HAPPENED TO SHIPPING RATES?The cost of chartering a supertanker to send crude oil from one country to another is rising sharply. A South Korean importer paid more than $12 million in shipping costs for one crude shipment from the U.S. Gulf Coast. This was followed by Friday's tentative charter of another crude…
Occidental Tentatively Fixes VLCC for Record $13.25 mln to Asia
Occidental Petroleum Corp provisionally chartered a supertanker to ship U.S. crude to South Korea for a new record of $13.25 million in November, three shipping sources familiar with the matter said on Monday.The Very Large Crude Carrier (VLCC) Maran Andromeda was chartered by Occidental on Friday for an estimated Nov. 20 departure, according to one shipbroker and Refinitiv Eikon shipping data.Global shipping rates, and in particular U.S. Gulf Coast to Asia <TD-LPP-SIN>, have skyrocketed after the United States in late September imposed sanctions on two units of China's COSCO…
VLCC Rates Surge as U.S. Sanctions COSCO
Freight rates to ship U.S. crude to Asia continued to surge, with costs to charter a supertanker rising to a record $12 million on Thursday, shipping sources familiar with the matter said.South Korea's top refiner, SK Energy, tentatively chartered the supertanker Maxim to ship U.S. crude to South Korea in November for a record $10 million earlier in the week but that fixture has since failed, the sources said.The company now has conditionally booked the Pacific M at a new record of $12.35 million…
AEC Collaborates with ABS for ULEC
American Ethane Company (AEC) is collaborating with ABS, the global provider of classification and technical advisory services to the marine and offshore industries, on a next generation fleet of Ultra Large Ethane Carriers (ULEC).ABS is actively supporting AEC and its shipping project partners, who will build, own and operate a fleet of ULECs to transport 7.2 MTPA of US ethane to China.“ABS is a world leader in the classification of gas carriers and classes the majority of the large ethane carriers built to date…
Fire Erupts at Exxon's Baytown complex; 37 Hurt
Exxon Mobil Corp said it was fighting a fire that erupted on Wednesday at its Baytown, Texas, refining and chemical plant complex injuring 37 people and sending nearby residents indoors.As many as 37 people were being treated for non-life threatening injuries amid efforts to put out the fire, according to Exxon spokeswoman Sarah Nordin. Available air monitoring information showed "no adverse impact at this time," she said.More than three dozen people were treated for minor burns, none requiring hospitalization, said plant manager Jason Duncan in an afternoon media briefing.
National Hurricane Center Miami Issues Hurricane Watch
A Storm Surge Watch is in effect for: Mouth of the Pearl River to Intracoastal City. A Hurricane Watch is in effect for: Mouth of the Mississippi River to Cameron. A Tropical Storm Watch is in effect for: Mouth of the Mississippi River northward to the Mouth of the Pearl River.A Storm Surge Watch means there is a possibility of life-threatening inundation from rising water moving inland from the coastline in the indicated locations during the next 48 hours. For a depiction of areas at risk please see the National Weather Service Storm Surge Watch/Warning Graphic available at hurricanes.gov.
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.
Trafigura Sends More Asian Gasoline to Americas
Commodity trader Trafigura is shipping this month a second newly built crude tanker with Asian gasoline onboard to South America amid strong demand in the West, four industry sources who closely monitor petrol trade flows said on Thursday.Although it is not uncommon for traders to use a brand new crude tanker of 150,000 deadweight tonnage (dwt) to ship clean fuels such as diesel, it is rare to use them for gasoline because of the sheer size."South America likely needs gasoline more than gasoil now.
Kinder Morgan quits Crude Export Venture
Kinder Morgan Inc has dropped out of a recently proposed U.S. Gulf Coast deepwater crude export venture, the project's leader Enbridge Inc said on Monday.The $800 million project, known as Texas COLT, is one of eight similar projects proposing facilities that would move U.S. shale to overseas markets by loading supertankers able to carry up to 2 million barrels apiece.Pipeline operators Enbridge and Kinder Morgan disclosed plans to build an crude export terminal off Freeport, Texas, in January, and filed permit applications with the U.S. Maritime Administration.
First U.S. Crude Cargoes Head to China Since Trade Breakthrough
Three cargoes of U.S. crude are heading to China from the U.S. Gulf Coast, trade sources said on Monday, the first departures since late September and a 90-day pause in the two countries' trade war that began last month.The vessels left Galveston, Texas, last month and are scheduled to arrive at Chinese ports between late January and early March, according to shipbrokers and vessel tracking data. The shipments mark a change since Chinese buyers largely began avoiding U.S. oil during the trade dispute that flared last summer."It looks like China has resumed purchasing U.S.
Moda Midstream Loads First Supertanker at South Texas Terminal
Moda Midstream LLC, owner of a U.S. Gulf Coast crude export terminal, on Thursday began partially loading the first supertanker at its Ingleside, Texas, facility, the company said.The Houston-based operator, which purchased the facility from Occidental Petroleum Corp. in August, recently installed equipment capable of loading up to 80,000 barrels of crude oil per hour onto Very Large Crude Carriers, or VLCCs, which carry up to 2 million barrels.At a depth of 47 feet, the waterway near the terminal is deep enough to allow the company to load only 1.2 million barrels onto supertankers.
Hamburg Süd Begins Seasonal Service for Mangos and Grapes
German shipping company Hamburg Süd is resuming its weekly direct service from Peru’s Port of Paita to Philadelphia just in time for the forthcoming mango and grape season in South America.The international logistics service provider said in a press release that with a transit time of eleven days, the service provides exporters in Peru and US importers a premium product designed specifically with these sensitive cargoes in mind.The release quoted Frank Smet, Chief Commercial Officer…
Argus Adds New Marine Fuel Price Assessments
Oil price reporting agency Argus has launched five new price assessments for low-sulphur marine fuels, ahead of new global rules capping the amount of sulphur in marine fuels, also known as bunkers.International Maritime Organization (IMO) regulations will cut the limit for sulphur in bunker fuels globally from 3.5 percent to 0.5 percent from the start of 2020."Argus is pleased to be taking the lead in bringing price transparency that enables this large and emerging oil market to advance trading in preparation for the IMO 2020 required fuels…
U.S. Pipeline Operators Reap Hefty Profits from Bottlenecks in Texas
Some of the biggest pipeline operators in the United States have supercharged earnings this year by buying deeply discounted shale in West Texas oilfields and selling it at a premium at Gulf Coast ports.These companies are taking advantage of extraordinary markdowns in West Texas where surging production and a lack of pipeline space sent the regional price for oil in late August $23 per barrel below the coastal price in Houston.Record profits illustrate the divide between the haves - those with guaranteed pipeline space - and the have nots, producers that must sell oil at the wellhead.
Gulfport’s Long Road Back From Hurricane Katrina
When Jonathan Daniels, executive director of the Mississippi State Port Authority at Gulfport spoke to the audience at the annual state of the port luncheon July 27, 2018 at the newly rebuilt Island View Casino, he had a lot to offer in terms of jobs. And he had two aces in the hole: SeaOne, an untested compressed liquefied gas company and Yilport, a terminal company operated by an ambitious Turkish port developer. Both had letters of intent dating back two years with much to do.As has been the case since before Daniels took over from Don Allee in 2013…
Magellan Bids to Build U.S. GoM Oil Export Terminal
Magellan Midstream Partners LP on Thursday became the latest company to join a crowded group looking to build an oil export terminal on the U.S. Gulf Coast designed to load supertankers.U.S. oil exports are expanding rapidly, but volumes are constrained because the country's shores have limited capability to load giant vessels that can carry about 2 million barrels of crude oil.Numerous companies - including private equity firm Carlyle Group and commodities merchant Trafigura…
BBC Chartering Joins Seaboard to Create “Andino Service”
As part of their mission to improve services for shippers moving cargo between the US Gulf Coast, Jamaica, and ports in Ecuador, Peru and Chile, Seaboard Marine and BBC Chartering are pleased to announce a new strategic cooperation which will be marketed as “Andino Service.”A press release from the international shipping company based in Leer, Germany said that beginning as early as November 2018, BBC and the ocean transportation service provider in North America Seaboard Marine…