Kuwait's KPC ramps up high-sulfur fuel oil tenders for October

Kuwait Petroleum Corp (KPC) has ramped up its spot tenders for high-sulfur fuel oil (HSFO) sales this month, with the latest one closing on Friday, said trade sources, said Hydrocarbonprocessing.

The increase in HSFO export tenders came as domestic requirements for HSFO to be used for power generation eased.

In its latest spot tender, KPC is offering 80,000 metric tons of 380-cst HSFO with 2.5% maximum sulfur content, for loading between Oct. 29 and 30, said trade sources.

The tender closes on Friday at noon Kuwait time, with validity until 23:00 Kuwait time. This came on top of three spot HSFO tenders issued for October loading so far, each of 60,000 tons.

The number of HSFO cargoes offered for October has risen compared to previous months this year, with typically zero to two HSFO cargoes offered per month, tender records showed.

We remind, Navigator CO2 Ventures has canceled its Heartland Greenway pipeline project aimed at capturing 15 million metric tons of carbon dioxide annually from Midwest ethanol plants and storing it permanently underground, the company said on Friday, citing "unpredictable" state regulatory processes. The cancellation of one of the biggest projects of its kind is a setback to the development of carbon capture and storage (CCS) projects in the U.S., which are a pillar of President Joe Biden's climate strategy. It is also a blow to the ethanol industry, which sees CCS as key to cutting emissions from producing the fuel.

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China's fuel oil imports eased for a third consecutive month in September, hitting the lowest in the year so far, data from the General Administration of Customs showed on Friday, said Hydrocarbonprocessing.

Imports have eased in the third quarter amid high inventory levels, as bunker hub Zhoushan is well-supplied with local output and previous import purchases. Total fuel oil imports were down 25% from August at 1.04 million metric tons in September, though still 3% higher compared to the same month last year.

The imports included purchases under ordinary trade, which is subject to import duty and consumption tax, as well as imports into bonded storage. Imports tapered off in Q3 after extending robust gains through the first half of 2023, when independent refiners ramped up purchases for refinery feedstock usage.

Meanwhile, exports of low sulfur marine fuels, measured mostly by sales from bonded storage for vessels plying international routes, totaled 1.47 million tons in September, down 5% from August and easing 23% from a year earlier. Marine fuel sales have also trended steady to lower at other key global bunker hubs, with Singapore sales stable and Fujairah sales weakening in September.

Meanwhile, China's Sinopec Corp has also applied to the government to swap some of its marine fuel export quotas for allowances to export light products. The refiner has asked to swap a quota to export 800,000 metric tons of low-sulfur fuel oil, part of the 3 million tons of marine fuel quota recently issued by Beijing, for a similar amount of allowances for light product exports.

The table below shows China's fuel oil imports and exports in metric tons. The exports section largely captures China's low sulfur oil bunkering sales along its coast.

We remind, Navigator CO2 Ventures has canceled its Heartland Greenway pipeline project aimed at capturing 15 million metric tons of carbon dioxide annually from Midwest ethanol plants and storing it permanently underground, the company said on Friday, citing "unpredictable" state regulatory processes. The cancellation of one of the biggest projects of its kind is a setback to the development of carbon capture and storage (CCS) projects in the U.S., which are a pillar of President Joe Biden's climate strategy. It is also a blow to the ethanol industry, which sees CCS as key to cutting emissions from producing the fuel.

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The president of BASF Canada, Apala Mukherjee, has been appointed chair of the board of directors of trade group Chemistry Industry Association of Canada (CIAC), said the company.

In her new role at CIAC, Mukherjee succeeds Helder Botelho, head of operations at LANXESS Canada. Mukherjee has been leading BASF Canada since March 2021.

Rocky Vermani, senior vice president of sustainability and innovation at NOVA Chemicals, has been appointed as vice-chair of CIAC’s board.

We remind, Senior Vice President, Care Chemicals North America, BASF Corporation, Florham Park, will, as President, assume responsibility for the Division South & East Asia, ASEAN & ANZ, BASF South East Asia Pte. Ltd., Singapore, effective February 1, 2024, said the company. The current head of the Division, Carola Richter (50), has decided to leave the company. Klaus Welsch (60), President, Mega Projects Asia, BASF (China) Company Ltd., Shanghai, will retire effective December 31, 2023.

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LyondellBasell acquired its 50% share from De Paauw Sustainable Resources (DPSR) CEO Roy de Paauw and ING Corporate Investments, said the company.

DPSR is a plastics waste recycling company based out of the Netherlands. The Dutch plastic recycling firm engages in the procurement, processing, and trade of post-consumer and post-industrial plastic packaging waste. DPSR runs manufacturing plants situated in Hengelo and Enschede, the Netherlands, with an annual processing capability that matches the quantity of plastic packaging waste produced by more than 1.7 million Dutch residents annually.

“Investing in DPSR aligns with our strategy to increase our access to plastic waste feedstock, which supports our integrated hub strategy that allows us to build scale and expand our production and offering of CirculenRecover products,” says Yvonne van der Laan, LyondellBasell executive vice president, Circular and Low Carbon Solutions. “Demand for recycled plastics continues to grow as consumers and brand owners ask for sustainable materials. Through this collaboration, we can further expand our CirculenRecover portfolio of mechanically recycled polymers, creating solutions for our customers”.

DPSR was founded in 1956 and has over time built up an extensive network of plastic waste sources, processing waste into recycled polypropylene (PP) and low-density polyethylene (LDPE) materials. It maintains its independence and commitment as a reliable plastic recycling partner. The LyondellBasell partnership enhances its capabilities, offering more options for plastic waste recycling and expanding production to meet growing demand.

“With a great team of driven employees, we have steadily built our business over the years by responsibly and carefully finding new use for used plastics," says Roy de Paauw, CEO of DPSR. "I greatly appreciate the cooperation we had with ING CI. I am proud that LyondellBasell is participating in our company and that we are now joining forces to recycle even more plastic waste into high-quality raw material."

We remind, LyondellBasell announced its investment in the first close of the Lombard Odier Investment Managers (LOIM) Plastic Circularity Fund SCSPp, said the company. This fund will focus on investments providing solutions to reduce pollution from plastic waste and decrease greenhouse gas emissions in the plastic value chain.

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Honeywell introduced Experion Solution Suites (ESS), an end-to-end automation software package for licensed Honeywell UOP units, said Hydrocarbonprocessing.

The ready-now technology offers embedded process solutions within Honeywell’s flagship ExperionPKS automation platform.

“Experion Solution Suites is a fully developed knowledge system which removes the risk of translation from process experts to control experts by embedding UOP Inside Honeywell Automation,” said Chad Briggs, vice president and general manager of Projects and Automation Solutions at Honeywell Process Solutions. “This offering de-risks investments and can increase schedule flexibility by 10 to 12 weeks allowing operators to get trained earlier and ready for any abnormal situation during start up and commissioning.”

Automating engineering labor allows Experion Solution Suites to accelerate project development during detailed design and implementation. This can also reduce the total cost of ownership over the lifecycle of the asset by decreasing hours of manual effort and human error that can lead to unplanned downtime.

Honeywell’s new technology includes pre-configured control design, graphics, alarms, startup/shutdown sequences and process digital twins within scope of UOP licenses. This design minimizes risk for owners to ensure day-one readiness and reduced time to full capacity.

ESS is currently available for Ecofining, Ethanol-to-Jet, Oleflex-C3 (PDH), Aromatic and Naphtha Complex technologies, and will soon be available for most UOP licensed units including Methanol-to-Jet, Carbon Capture and Hydrogen Purification units.

We remind, Litasco, a trading arm of Russia's No.2 oil producer Lukoil, said that it had not received any offer for its refinery in Bulgaria and there were no talks to sell it, amid mounting pressure from Bulgarian authorities. Lukoil has already sold its oil refinery on the Italian island of Sicily, ISAB, to Cypriot private equity firm G.O.I. Energy. Although Lukoil has not directly been targeted by Western sanctions on Russia, the ISAB refinery was affected by an embargo on Russian crude oil as banks were reluctant to finance procurement for a Russia-related company.

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