2024.09.18

Saudi Aramco wants to be a major LNG player

Saudi Aramco, the world’s largest oil producer, aims to become a key player in the liquefied natural gas (LNG) market, according to Abdulkarim Al-Ghamdi, head of its natural gas business. Speaking at the GasTech conference in Houston, Al-Ghamdi highlighted Aramco’s growing LNG ventures, including its $500 million acquisition of a minority stake in MidOcean Energy in 2022, later increased to 49%. In June, Aramco signed a non-binding agreement for a 20-year LNG offtake from NextDecade’s Rio Grande LNG project in Texas. These moves mark Aramco's strategic entry into the global LNG industry.

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HMM ends 20-year hiatus with four MR tanker order of $208m

South Korea’s HMM has ended a nearly 20-year break in ordering MR product tankers, securing up to four 50,000-dwt newbuildings from Hyundai Mipo Dockyard for $52 million each. The tankers are scheduled for delivery in 2027, with the early delivery dates being unusual given HD HMD’s full orderbook until late 2028. HMM is investing $17.85 billion through 2030 to enhance its global position in green shipping and logistics. The company aims to achieve net-zero carbon emissions by 2045 and expand its fleet from 36 to 110 vessels. HMM’s strategic plan includes diversifying into eco-friendly energy transportation and strengthening its market presence across various shipping sectors. HMM is the largest liner company in South Korea, with a diverse presence across the dry bulk, tanker, gas and car carrier sectors. In the tanker business, it controls 14 VLCCs and three MRs. HMM is considered a state-owned company, as its primary shareholders, Korea Development Bank and Korea Ocean Business Corp

[SLOW] Weekly Clean Tanker Research _ MR newbuilding price

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Insurers warn of increased risk from dark fleet oil tankers

Marine insurers are raising concerns about the rising risks posed by a shadow fleet of tankers transporting oil from sanctioned countries such as Russia and Iran. Ilias Tsakiris, chair of the hull committee at the International Union of Maritime Insurers, highlighted the challenges in identifying responsible parties in the event of accidents due to the opaque ownership of these vessels. Known as the "dark fleet," these ships are often operated by questionable entities and lack transparency, making it difficult to assess liability. Following Western sanctions, Russia has assembled around 700 such vessels to maintain its oil exports, which experts warn are aging and pose significant environmental hazards.

[SLOW] OFAC Sanction Tanker List

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Two Sinochem refineries in Shandong declared bankrupt by Chinese court

A Chinese court has declared two Sinochem-owned refineries in Shandong province bankrupt after creditors could not agree on restructuring plans. The refineries, Shandong Huaxing Petrochemical Group and Zhenghe Group Co Ltd, were ruled bankrupt by the Dongying court on September 14. Combined, these refineries have a crude oil processing capacity of 220,000 barrels per day. Earlier reports indicated that Sinochem had shut down two of its three Shandong refineries due to high crude oil costs and weak fuel market demand. Shandong refineries operated at about 56.4% capacity in August, reflecting the challenging market conditions.

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[SLOW] https://slowspace.io/ _ Port Dos Bocas

Mexican oil industry challenges and tanker demand

UK shipbroker Gibsons has highlighted issues in Mexico’s oil industry that may reduce tanker usage. Pemex’s Olmeca refinery, inaugurated in 2022, is operating at only 60% of its 340,000 bpd capacity. President-elect Claudia Sheinbaum plans to cap oil production while supporting Pemex. Data shows that the refinery processed 65,000 bpd in July, producing mainly diesel. Additionally, Mexico’s crude shipments have fallen to 850,000 bpd due to underinvestment in oil exploration and production. Gibsons warns that the full operation of Mexico's Olmeca refinery will reduce U.S. imports of clean products, significantly impacting tanker demand. Additionally, Mexico's declining oil production will limit seaborne exports, particularly medium and heavy crude grades that U.S. refiners rely on. Gibsons suggests that this could be offset by imports from Canada, the Middle East, and Atlantic regions, potentially leading to longer-haul shipments. However, the brokerage remains skeptical, noting Pemex's ongoing production issues and reliance on government support to manage debt, making it uncertain when these changes will take effect.

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U.S. to purchase 6 million barrels of oil for strategic reserve amid lower prices

The Biden administration plans to buy up to 6 million barrels of oil for the Strategic Petroleum Reserve (SPR) as crude prices remain relatively low. The announcement, expected soon, will focus on deliveries to the Bayou Choctaw site in Louisiana for early 2025. This purchase would match the largest made since the 2022 sale of 180 million barrels, which was prompted by the global energy crisis following Russia's invasion of Ukraine. With oil prices now below the $79.99 per barrel target for buybacks, the U.S. aims to replenish its reserve, which currently holds 380 million barrels.

[SLOW] EIA - Crude Oil Outlook _ US SPR inventory