Refinery

Refineries Loom Over With Record Oil Product Exports

  • Chinese refineries are battling weak profit margins from the slump in fuel demand.
  • It is caused by lockdowns aimed at containing the coronavirus pandemic.
  • China’s refineries processed the equivalent of 13.1 million bpd in April.
  • Modern, low-cost refineries show fuel exports at a record-high 8 million tonnes in April.
  • China exported 1.72 million bpd of refined products, up 15.1% from the same period in 2019.
  • The margin for gasoil ended at a profit of $3.45 a barrel on May 15 just over $12.79...

https://mfame.guru/refineries-loom-over-with-record-oil-product-exports/

First VLSFO Produced By Asia’s Top Oil Refinery!

In a  major development, a chinese refinery and one of the largest in Asia has started producing VLSFO, reports Reuters.

What is it?
  • Asia’s top oil refinery Sinopec said on Monday that its Guangzhou refinery is able to produce very low-sulphur fuel oil (VLSFO) for the marine bunker fuel market
  •  The 1,600-tonne cargo was Guangzhou’s first batch of VLSFO production and was delivered to the storage tank at Sinopec Fuel Oil Sales Co via pipeline
  • The marine fuel at Guangzhou refinery was mixed with...

http://mfame.guru/first-vlsfo-produced-by-asias-top-oil-refinery/

Market Tends To Over Read VLSFO Production, Says Analyst

According to an oil analyst, low sulfur fuel oil production to meet global bunker demand post-2020, may have a shortfall, reports Ship & Bunker.

LSFO shortfall

The capacity for very low sulfur fuel oil production to meet the gap in global bunker demand, 

“post-2020 may have been overplayed,” an oil analyst has said.

Asian refiners

An Asia-focused analyst at Facts Global Energy said that it has been relatively easy for Asian refiners to increase their VLSFO output as regional plants process a lot of...

http://mfame.guru/market-tends-to-over-read-vlsfo-production-says-analyst/

Refinery News: Europe Set To Face Autumn Turnarounds

  • Planned refinery turnarounds in Europe have been ramped up, with refineries in both Northwest Europe and the Mediterranean.
  • This undergoing work coincides with large-scale maintenance in Russia.
  • Q2/H1 results are on multi-year low benchmark refining margins and problems with Russian crude supplies due to contamination and the outage of the Druzhba pipeline.

According to an article published in Platts, planned refinery turnarounds in Europe have been building up, with several sites planning...

http://mfame.guru/refinery-news-europe-set-to-face-autumn-turnarounds/

Texas Storage Operator Now in Compliant Marine Fuel Production Race

Texas storage operator launches own crude processing facility to produce low-sulfur marine fuels ahead of 2020, reports Reuters.

50,000 bpd of low sulphur

A U.S. Gulf Coast fuel storage operator is launching its own crude processing facility to make 50,000 barrels per day (bpd) of low-sulfur fuels beginning in 2020.

Texas International Terminals plans to operate its own crude distillation unit (CDU) at a site in Galveston, Texas, producing bunker and gasoil for affiliate GCC Bunkers, which will...

http://mfame.guru/texas-storage-operator-now-in-compliant-marine-fuel-production-race/

Vitol’s Malaysian Refinery Set To Meet IMO Demand

  • Work started last month on Vitol’s new refinery in Malaysia to produce marine fuel compliant with the International Maritime Organisation (IMO) 0.5pc sulphur cap.
  • The new refinery will have a 35,000 b/d crude distillation unit and is expected to be ready by the third quarter of 2020.
  • Vitol’s 82,000 b/d refinery Fujairah site announced its readiness to offer IMO-complaint low-sulphur fuel oil (LSFO).
  • German firm Uniper’s simple crude processing facility in Fujairah has been able to produce LSFO...

http://mfame.guru/vitols-malaysian-refinery-set-to-meet-imo-demand/

IMO 2020 Challenges Global Refinery Industry’s Capacity

  • IMO decided to strictly enforce use of bunker fuels with a sulfur content of 0.5% from the existing 3.5% limit, from 2020.
  • Refineries do not have sufficient production capacity to meet compliant bunker fuels demand.
  • HSFO demand to drop from around 3.3 million bpd and fall within the range of 0.3 to 1 million bpd in 2020, leading to disappearing of substantial quantities of HSFO.
  • The surge in ULSFO demand would pressurise refineries to increase capacity utilisation of coker, residue fluid...

http://mfame.guru/imo-2020-challenges-global-refinery-industrys-capacity/

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