Singapore's middle distillate stocks fell to a 4-mos low, as exports rise

Singapore's inventories of middle distillates fell further to a fresh four-month low of around 8 million barrels, official data on Thursday showed, as net exports of both diesel/gasoil and jet fuel/kerosene rose, said Hydrocarbonprocessing.

Gasoil/diesel and jet fuel/kerosene stocks held at key oil storage hub Singapore were 8.081 million barrels in the week ended Dec. 20, compared with 8.641 million barrels the previous week, data from Enterprise Singapore showed.

Net exports of diesel/gasoil surged by almost 75% from a week earlier, fuelled by an 87% gain in total exports. The largest contributor for the week was Australia, in line with earlier market expectations, as some buyers there may have needed to stock up ahead of a new mandate in the country next year for minimum fuel inventory levels.

Singapore's exports to Australia have rebounded in both October and November, after a dip in September, Kpler shiptracking data showed. This increase could be only until year-end, as long as refiners do not tap in to their safety stockpiles after hitting the minimum requirements, two trade sources said.

Exports to Indonesia were also robust, as demand there was supported by lower domestic production during the refinery maintenance season, which is expected to last until January. Volumes to Malaysia dipped for the week, with imports from the country also dropping back to zero.

South Korea was the most notable contributor, after steady volume of export sales from key refineries there in December. Gasoil/diesel exports from South Korea to Singapore have been steadily climbing since September, Kpler and LSEG shiptracking data showed.

On the jet fuel/kerosene front, net exports grew by close to 43% week on week. Volumes to regional destinations such as Malaysia, Philippines, Sri Lanka and Vietnam were most prevalent, given the earlier demand requirements via open market spot tenders from some importers.

We remind, Russia more than doubled railway exports of gasoline in the first 17 days of December from the same period in November on lifted fuel embargo and rising production, while domestic demand is seasonally falling, data provided by two market sources and Reuters calculations showed.

mrchub.com

Eni has agreed to sell a 9% stake in its low-carbon and retail unit Plenitude to Energy Infrastructure Partners (EIP) through a deal that values the unit at 10 billion euros ($11 billion) including debt, the Italian energy company said.

Under the agreement, EIP will invest in Plenitude through a capital increase of up to 700 million euros, which, post-transaction, would give the Swiss fund approximately 9% of the company. The initial capital increase will amount to 500 million euros, with the option for EIP to go up to 700 million euros by early 2024.

"The transaction implies an equity value of Plenitude post money of up to around 8 billion euros and an enterprise value of over 10 billion euros," Eni said in a statement.

The deal is expected to set an indication for the price of Plenitude in a potential future listing on the Milan stock exchange after the energy group had to postpone an initial public offering (IPO) in June last year.

Financial analysts said the deal could provide a rich valuation floor for the group's low-carbon business. "Eni's decision to postpone the Plenitude IPO was a smart move, with today's equity valuation above the 6-7 billion euros that Eni received when they were planning the listing," broker Bernstein said.

After the transaction, the group is under no pressure to list the unit and could wait for the right market conditions to take it public.

Under Chief Executive Claudio Descalzi, Eni is applying what it calls a "satellite" approach to create independent units specializing in specific activities and able to attract investors focused on those businesses.

The energy group could use a similar strategy to grow other units including its biofuel business, dubbed Enilive.

"Thanks to this transaction we highlight the value of Plenitude within Eni, we strengthen Plenitude's financial structure to further support its energy transition and growth path, and we establish a long-term partnership with a leading international financial investor," Descalzi said in the statement.

We remind, Russia more than doubled railway exports of gasoline in the first 17 days of December from the same period in November on lifted fuel embargo and rising production, while domestic demand is seasonally falling, data provided by two market sources and Reuters calculations showed.

mrchub.com

The European Union said it would begin an anti-dumping investigation into biodiesel imports from China, which the bloc's industry says has slashed domestic production, said Hydrocarbonprocessing.

In August, it began investigating whether biodiesel from Indonesia was circumventing EU duties by going through China and Britain. The latest investigation, prompted by a complaint from producer group the European Biodiesel Board (EBB), will cover the period from Oct. 1, 2022 to Sept. 30 2023.

The probe will take up to 14 months, with the possibility of provisional duties being imposed within eight months. "EU producers have submitted evidence of biodiesel imports from China coming into the EU at artificially low prices and claim that these imports are seriously harming their industry because they cannot compete with such low prices," the European Commission said in a statement.

China has been the biggest biodiesel exporter to the 27-member bloc in 2023, the EBB said in a separate statement. "In 2023, Chinese dumped imports have caused a collapse in the market and production sites closed in several member states," the EBB added.

In addition to the possible transit of Indonesian biodiesel, there were structural imbalances in biodiesel trade with China, with prices not reflecting the advanced or waste-based biofuel categories that most cargoes have been classified as, it said.

China "firmly opposes protectionist behaviour that abuses trade remedy measures," Chinese Ministry of Commerce spokesperson Shu Jueting said when asked about the investigation at a regular press conference.

Biodiesel is among the alternative fuels promoted to reduce carbon emissions in transport. The EU's industry, which the Commission says is worth 31 billion euros ($34 billion) a year, has been the subject of regular disputes with trading partners.

It can be made using palm oil and shipments from Indonesia have been caught up in EU measures to restrict imports of commodities linked to deforestation. In a separate trade dispute with Beijing, the Commission in September launched a probe into Chinese electric vehicle imports it says are benefiting from state subsidies.

We remind, Russia more than doubled railway exports of gasoline in the first 17 days of December from the same period in November on lifted fuel embargo and rising production, while domestic demand is seasonally falling, data provided by two market sources and Reuters calculations showed.

mrchub.com

Topsoe, a global leader in carbon emission reduction technologies, has been selected by Essar Oil UK, a leading integrated downstream energy company, to be a technology licensor for its carbon capture facility, based in Stanlow, North West England, said Hydrocarbonprocessing.

Topsoe will deliver its SNOX™ technology for the removal of nitrogen oxides, sulfur dioxide, carbon monoxide, dust and other contaminants from the flue gas emitted in the production process. Topsoe’s technology will be one of a number of integrated licensed solutions supporting Essar’s plant, and will contribute to reducing their CO2 footprint.

Elena Scaltritti, CCO, Topsoe, said: “We are thrilled to have been chosen as technology licensor for Essar Oil UK and support them in meeting their decarbonization targets. The agreement represents a landmark step for Topsoe’s development in the United Kingdom, and we look forward to working with Essar on this important project, which is a great example of how the fossil industry can decarbonize itself.”

Deepak Maheshwari, CEO of Essar Oil UK, said: “We are ready to move into the next phase of Essar Oil UK’s decarbonization strategy. With an investment of $1.2 billion, Essar Oil UK is positioned to be the world’s first low carbon refinery. The industrial carbon capture facility, combined with our upcoming hydrogen fuel switching project, will reduce the refinery’s CO2 emissions by 95%. Topsoe is a valuable partner in this endeavor. With Topsoe’s SNOX™ technology we are getting a well proven and highly sustainable flue-gas treatment.”

We remind, Topsoe is pleased to have signed an MoU with Standard Gas, a decarbonization technology company, to collaborate on a UK-based project to produce renewable natural gas and methanol from residual waste feedstocks.

mrchub.com

Russia more than doubled railway exports of gasoline in the first 17 days of December from the same period in November on lifted fuel embargo and rising production, while domestic demand is seasonally falling, data provided by two market sources and Reuters calculations showed, said Hydrocarbonprocessing.

Russia temporarily banned exports of gasoline from Sept. 21 to cope with a domestic market shortage. Exceptions were made for fuel supplied under inter-governmental agreements, including with members of the Moscow-led Eurasian Economic Union.

Restrictions on gasoline exports were lifted from Nov. 17 as "saturation of the domestic market has been ensured and a surplus in the supply of motor gasoline has been created", according to the energy ministry.

According to Reuters calculations based on Rosstat data, the average daily production of gasoline at Russian refineries from December 1-17 totalled 130,311 metric tons, up by 4.8% from November and 6.5% from December 2022.

In the first 17 days of this month, Russian refineries exported by rail about 250,000 metric tons of gasoline versus 111,000 metric tons in the same period of November, data from market sources showed.

About a third of those volumes (nearly 83,000 metric tons) was supplied to the Russian Baltic port of Ust-Luga. During December 1-17, Russia almost tripled gasoline exports to Uzbekistan, which signed in November an agreement on oil and oil product supplies to ensure stable supplies.

About 20,000 metric tons of gasoline were shipped by rail this month for export via the Russian Arctic port of Murmansk, data from the market sources showed.

Traders expect further growth of gasoline exports from Russia, as domestic demand is traditionally falling during the winter months.

We remind, Topsoe, a global leader in carbon emission reduction technologies, has been selected by Essar Oil UK, a leading integrated downstream energy company, to be a technology licensor for its carbon capture facility, based in Stanlow, North West England.

mrchub.com