In 2025, the global diesel price will be supported by refinery closures
Analysts and traders said that the global diesel market would likely see a price boost in 2025 due to the closing of around 1% of the refining capacity. This will offset the current weakness of the market and the structural downward pressure caused by the shift towards cleaner fuels. Markets end 2024 in a shaky state, despite the peak season demand. Margins in key energy hubs around the world, such as Singapore, Northwest Europe, and the Gulf of the United States, have fallen from November's high levels, due to the return of some refineries after maintenance shutdowns.
ExxonMobil Mulls "multi-billion" Dollar Singapore Refinery Expansion
ExxonMobil said on Tuesday it plans to make a final investment decision in 2019 on what it called a "multi-billion dollar" project that would expand its clean fuel and lubricant output at its Singapore refinery. The project is aimed at increasing the competitiveness of ExxonMobil's Singapore refining-petrochemical complex, which is one of the company's largest integrated fuels, lubricant base stocks and chemicals production sites in the world, the company said in a statement. If the project proceeds, the new output is expected in 2023, the company said, without disclosing exactly how much it plans to invest.
Gunvor's Rotterdam Oil Storage is for Sale
Trading house Gunvor is looking to sell a stake in more of its Rotterdam oil storage, two sources told Reuters, after offloading a chunk last year to a subsidiary of state oil giant Saudi Aramco. Gunvor acquired a significant amount of storage in Rotterdam, Europe's deepest port and a hub for its oil trading, when it purchased the 88,000-barrels-per-day Rotterdam refinery from Kuwait Petroleum International in 2016. It sold its stake in crude oil storage at the Maasvlakte Olie Terminal late last year to Saudi Aramco Overseas Co.
Distillate Demand Boost from Shipping Sulphur Rules to be Brief
A sharp increase in demand for distillates following new shipping fuel rules will fade quickly, the International Energy Agency said on Monday. New rules implemented by the International Maritime Organization (IMO) will significantly cut the amount of sulphur that the world's ships can burn in their engines from 2020, leading to a close to 1 million barrel per day (bpd) rise in gasoil consumption at the expense of high-sulphur fuel oil. While ships can continue to burn higher sulphur fuel if they install scrubbers…
Exxon to Expand Rotterdam Hydrocracker
ExxonMobil said on Thursday it would invest more than $1 billion to expand the hydrocracker operations at its Rotterdam refinery, giving it the capacity to make more high-performance lubricating oils and greases. Citing growing demand for "base stock" products and low-sulphur diesel, the company's president of refining and supply, Jerry Wascom, said in a statement he expected the expansion to increase competitiveness and profitability. Spokesman Richard Scrase said the investment would be at least $1 billion, and the company would add 600 workers to the 650 currently at the refinery during a three-year construction phase.
ExxonMobil to Expand Rotterdam Hydrocracker
ExxonMobil will expand the hydrocracker unit at its Rotterdam refinery to upgrade heavier byproducts into cleaner, higher-value finished products, including EHCTM Group II base stocks and ultra-low sulfur diesel, to meet growing global market demand. The refinery, operated by Esso Nederland BV, will use ExxonMobil’s proprietary hydrocracking technology and be the first to produce EHC Group II base stocks in Europe. Base stocks are the primary ingredients used in the production of high-quality lubricating oils and greases.
Gunvor to Close Crude Unit at Rotterdam Refinery
Swiss-based trading house Gunvor plans to close a crude distillation unit at the 88,000 barrel per day (bpd) Rotterdam refinery, which it is in the final stages of purchasing from Kuwait Petroleum, the refinery union told Reuters. The FNV union's Egbert Schellenberg said the decision would mean cutting 25 percent of the refinery's roughly 350-strong workforce. The closure is part of a plan to end lubricants production at the site, union and trade sources said, and operate the remaining distillation capacity of around 50,000 bpd in conjunction with Gunvor's nearby Antwerp refinery.
Gunvor Nears Deal to Buy KPI's Rotterdam Refinery
Kuwait Petroleum International (KPI) and Swiss-based trading house Gunvor said on Thursday they had entered the final stage of talks on the sale of KPI's Europoort refinery in Rotterdam. The deal for the 88,000 barrels per day refinery is still subject to regulatory approval and an employee consultation process. "The sale would allow the refinery to continue in line with Gunvor's integration and optimization strategies," the companies said in a statement. (Reporting by Ron Bousso)
Kuwait Petroleum Aims to Boost Outlets for Its Fuels in Europe
Kuwait Petroleum International (KPI) is planning more investments in Europe, including into storage terminals and other oil-related facilities to help to provide more outlets for the fuels it produces. Khaled Al-Mushaileh, KPI's vice president Europe, told the Platts refining conference in Brussels that his company views Europe as an important market and plans to expand in retail and downstream sectors. KPI, a subsidiary of Kuwait's national oil company Kuwait Petroleum Corporation, currently owns two refineries in Europe and has more than 4,000 Q8 petrol service stations across the continent, according to its website.
ExxonMobil Outlines Rotterdam Upgrade Plan
Exxon Mobil Corp plans to add high-quality lubricants production to its 190,000 barrel per day (bpd) Rotterdam refinery, the company said on Thursday. Exxon is also considering expanding production of high-quality fuels such as diesel at Rotterdam, an investment in the struggling European refining sector that would follow a $1 billion project announced last year to expand diesel output at its 320,000 bpd Antwerp refinery. The company said the upgrades remain subject to regulatory approval by Dutch authorities and funding approval by its Dutch affiliate, Esso Nederland BV.
KPI Cancels Investment, May Sell Reinfery
Converting to storage terminal, closure also options. Union says conversion would cut jobs to 80 from 350. Plant has been for sale before, but small size makes finding buyer difficult. Kuwait Petroleum International has cancelled a planned $1.4 billion investment in its 88,000 barrel per day (bpd) Rotterdam refinery and may sell it, a spokesman said, as Europe's refiners struggle with overcapacity and global competition. "Now we have to look at all other options," spokesman Jan Maarten van der Steen said on Monday, adding that the company was talking to banks including HSBC about managing a possible sale.
