Latest news with #HSFO
Business Recorder
4 days ago
- Business
- Business Recorder
Pakistan Refinery receives EPCF bids for major expansion
Pakistan Refinery Limited (PRL) has received formal bids from companies interested in handling the Engineering, Procurement, Construction, and Finance (EPCF) work for PRL's Refinery Expansion and Upgrade Project (REUP). The refinery, a key player in Pakistan's energy sector, disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Monday. 'PRL has received Engineering, Procurement, Construction & Finance (EPCF) bids for its Refinery Expansion & Upgrade Project (REUP). PRL is in the process of evaluating these EPCF bids and will provide further updates in due course as necessary,' read the notice. PRL is a hydro-skimming refinery based in Karachi, Pakistan. Established in 1960, PRL processes imported and local crude oil into products such as furnace oil, diesel, kerosene, jet fuel, and gasoline, with a daily capacity of 50,000 barrels. The refinery operates at two locations: the main facility at Korangi Creek and crude oil berthing and storage at Keamari. With a cost of around $1.7 billion, PRL is spearheading transformative Refinery Expansion & Upgrade Project (REUP), aimed at doubling the crude processing capacity from the existing 50,000 to 100,000 barrels per day, with zero production of high sulphur furnace oil (HSFO) in five years after the project achieves its financial close. The project is designed to achieve zero furnace oil production, redirecting efforts towards maximising the production of highly profitable products, such as petrol and diesel, to Euro V standards. Earlier in February, the PRL board approved a Rs3.15 billion loan from its parent company, Pakistan State Oil Limited (PSO), to finance the company's Front-End Engineering Design (FEED) of the REUP.
Business Recorder
20-05-2025
- Business
- Business Recorder
Saudi poised to increase summer crude burn for power as fuel oil becomes costly
SINGAPORE: Saudi Arabia is expected to burn more crude oil for power generation this summer than last as it ramps up output after OPEC+ eases supply controls and as fuel oil has become costly, analysts and trade sources said. By burning more crude, the OPEC kingpin could ease some concerns over global oversupply after OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, agreed to increase production by nearly 1 million barrels per day (bpd) in April, May and June. Wood Mackenzie expects Saudi Arabia to consume 465,000 to 470,000 bpd of crude for power generation this year, up 10,000 to 15,000 bpd from 2024, while several traders also said they expect an increase. FGE's estimate is at 423,000 to 428,000 bpd, stable to higher than last year. The Middle East typically burns crude and high-sulphur fuel oil (HSFO) for power between June and August when air conditioning demand spikes. While analysts have cut oil price forecasts this year after OPEC+'s decision to expedite output hikes stoked fears about rising supply, refiners' profits from producing HSFO from Dubai crude reached a record $4.45 a barrel. 'Lower crude prices and higher HSFO cracks are expected to shift some power generation demand from fuel oil to crude burn,' said Priti Mehta, a senior research analyst for short term refining and oils at Wood Mackenzie. Saudi Arabia's energy ministry and Saudi Aramco did not respond to requests for comment. Saudi Arabia's oil production quota for June is at 9.367 million bpd, up from 9.034 million bpd in April, OPEC data showed. 'Saudi Arabia may well have an incentive to produce more crude but not to export it and burning it for power generation is one good option in this context,' said David Wech, chief economist at analytics firm Vortexa. China's April refinery output fell 1.4% year-on-year Meanwhile, high prices are likely to cap Saudi Arabia's fuel oil consumption for power generation this year while its imports from Russia are unlikely to breach last year's record, said analysts and trade sources. The kingdom has turned to importing more discounted Russian fuel oil for summer burn since 2023 as prices for Russian barrels declined following Moscow's invasion of Ukraine. Saudi Arabia primarily generates electricity from natural gas, followed by oil, with minimal contribution from renewables. However, the country has launched renewables projects and signed deals to expand its gas network and production at its Jafurah gas field. 'Further increases in liquid burn for 2025 will be restricted due to approximately 6 gigawatts of renewable energy power plants coming online and the commencement of operations at the Jafurah shale gas field later in the year,' Woodmac's Mehta said. Rystad Energy expects Saudi Arabia to slash crude use and tap more gas for power generation towards 2030.
Zawya
20-05-2025
- Business
- Zawya
Saudi poised to increase summer crude burn for power as fuel oil becomes costly
SINGAPORE - Saudi Arabia is expected to burn more crude oil for power generation this summer than last as it ramps up output after OPEC+ eases supply controls and as fuel oil has become costly, analysts and trade sources said. By burning more crude, the OPEC kingpin could ease some concerns over global oversupply after OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, agreed to increase production by nearly 1 million barrels per day (bpd) in April, May and June. Wood Mackenzie expects Saudi Arabia to consume 465,000 to 470,000 bpd of crude for power generation this year, up 10,000 to 15,000 bpd from 2024, while several traders also said they expect an increase. FGE's estimate is at 423,000 to 428,000 bpd, stable to higher than last year. The Middle East typically burns crude and high-sulphur fuel oil (HSFO) for power between June and August when air conditioning demand spikes. While analysts have cut oil price forecasts this year after OPEC+'s decision to expedite output hikes stoked fears about rising supply, refiners' profits from producing HSFO from Dubai crude reached a record $4.45 a barrel. "Lower crude prices and higher HSFO cracks are expected to shift some power generation demand from fuel oil to crude burn," said Priti Mehta, a senior research analyst for short term refining and oils at Wood Mackenzie. Saudi Arabia's energy ministry and Saudi Aramco did not respond to requests for comment. Saudi Arabia's oil production quota for June is at 9.367 million bpd, up from 9.034 million bpd in April, OPEC data showed. "Saudi Arabia may well have an incentive to produce more crude but not to export it and burning it for power generation is one good option in this context," said David Wech, chief economist at analytics firm Vortexa. Meanwhile, high prices are likely to cap Saudi Arabia's fuel oil consumption for power generation this year while its imports from Russia are unlikely to breach last year's record, said analysts and trade sources. The kingdom has turned to importing more discounted Russian fuel oil for summer burn since 2023 as prices for Russian barrels declined following Moscow's invasion of Ukraine. Saudi Arabia primarily generates electricity from natural gas, followed by oil, with minimal contribution from renewables. However, the country has launched renewables projects and signed deals to expand its gas network and production at its Jafurah gas field. "Further increases in liquid burn for 2025 will be restricted due to approximately 6 gigawatts of renewable energy power plants coming online and the commencement of operations at the Jafurah shale gas field later in the year," Woodmac's Mehta said. Rystad Energy expects Saudi Arabia to slash crude use and tap more gas for power generation towards 2030.
Reuters
20-05-2025
- Business
- Reuters
Saudi poised to increase summer crude burn for power as fuel oil becomes costly
SINGAPORE, May 20 (Reuters) - Saudi Arabia is expected to burn more crude oil for power generation this summer than last as it ramps up output after OPEC+ eases supply controls and as fuel oil has become costly, analysts and trade sources said. By burning more crude, the OPEC kingpin could ease some concerns over global oversupply after OPEC+, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, agreed to increase production by nearly 1 million barrels per day (bpd) in April, May and June. Wood Mackenzie expects Saudi Arabia to consume 465,000 to 470,000 bpd of crude for power generation this year, up 10,000 to 15,000 bpd from 2024, while several traders also said they expect an increase. FGE's estimate is at 423,000 to 428,000 bpd, stable to higher than last year. The Middle East typically burns crude and high-sulphur fuel oil (HSFO) for power between June and August when air conditioning demand spikes. While analysts have cut oil price forecasts this year after OPEC+'s decision to expedite output hikes stoked fears about rising supply, refiners' profits from producing HSFO from Dubai crude reached a record $4.45 a barrel. "Lower crude prices and higher HSFO cracks are expected to shift some power generation demand from fuel oil to crude burn," said Priti Mehta, a senior research analyst for short term refining and oils at Wood Mackenzie. Saudi Arabia's energy ministry and Saudi Aramco ( opens new tab did not respond to requests for comment. Saudi Arabia's oil production quota for June is at 9.367 million bpd, up from 9.034 million bpd in April, OPEC data showed. "Saudi Arabia may well have an incentive to produce more crude but not to export it and burning it for power generation is one good option in this context," said David Wech, chief economist at analytics firm Vortexa. Meanwhile, high prices are likely to cap Saudi Arabia's fuel oil consumption for power generation this year while its imports from Russia are unlikely to breach last year's record, said analysts and trade sources. The kingdom has turned to importing more discounted Russian fuel oil for summer burn since 2023 as prices for Russian barrels declined following Moscow's invasion of Ukraine. Saudi Arabia primarily generates electricity from natural gas, followed by oil, with minimal contribution from renewables. However, the country has launched renewables projects and signed deals to expand its gas network and production at its Jafurah gas field. "Further increases in liquid burn for 2025 will be restricted due to approximately 6 gigawatts of renewable energy power plants coming online and the commencement of operations at the Jafurah shale gas field later in the year," Woodmac's Mehta said. Rystad Energy expects Saudi Arabia to slash crude use and tap more gas for power generation towards 2030.
Arabian Post
16-05-2025
- Business
- Arabian Post
Fujairah Port's Marine Fuel Sales Surge to 14-Month Peak
Marine fuel sales at the Port of Fujairah climbed to their highest level in over a year in April, marking a second consecutive month of growth and reinforcing the port's status as a key global bunkering hub. Excluding lubricants, total sales reached 669,378 cubic metres, equivalent to approximately 663,000 metric tons, according to data from the Fujairah Oil Industry Zone released by S&P Global Commodity Insights. This performance represents a 4.6% increase over March's 639,811 cubic metres and a 20.8% rise from February's record low of 554,117 cubic metres. The rebound aligns with a broader recovery in global shipping activity and increased demand for marine fuels, particularly high-sulphur fuel oil , amid fluctuating oil prices and evolving environmental regulations. HSFO sales at Fujairah experienced a significant uptick, rising 17.9% month-on-month to 168,140 cubic metres in March, and continued to show strength into April. This growth is largely attributed to the increased use of exhaust gas cleaning systems, or scrubbers, by shipowners seeking cost-effective compliance with the International Maritime Organization's 0.5% sulphur cap. The price differential between HSFO and low-sulphur alternatives has made scrubber-fitted vessels more economically viable, driving demand for HSFO. Despite the gains in HSFO, low-sulphur fuel oil remains the dominant marine fuel at Fujairah, accounting for approximately 67.3% of total sales in March. However, LSFO volumes have faced downward pressure due to increased competition from neighboring ports and fluctuating global supply chains. In April, LSFO sales totaled 442,392 cubic metres, down 13.9% year-on-year and 2.1% lower than in March. The port's strategic initiatives to diversify fuel offerings and invest in alternative energy sources are also influencing sales dynamics. In July 2024, FOIZ allocated 54,000 square metres of land for the construction of a biofuel processing plant, signaling a commitment to sustainable fuel solutions. The facility, developed in partnership with Bahrain-based Mercantile and Maritime Group, aims to produce B24 biofuel blends, which combine 24% fatty acid methyl ester with 0.5% sulphur marine fuel. These blends can reduce carbon dioxide emissions by 15–20%, aligning with the IMO's decarbonization targets. See also Dubai Billionaire Sentenced in Major Financial Crime Case Fujairah's position as the world's third-largest bunkering hub remains solid, with 2024 sales totaling 7.6 million cubic metres, up 1.9% from the previous year. This growth outpaced China's Zhoushan port, which reported 7.26 million tons in the same period. The increase in sales is attributed to higher refueling demand in the first half of 2024 and larger delivery volumes, as shipping disruptions elsewhere prompted more liftings at key bunker ports globally. However, the port faces challenges, including competition from neighboring ports like Khor Fakkan and Jebel Ali, which have attracted some demand due to competitive pricing. Additionally, geopolitical tensions and global shipping uncertainties continue to impact fuel demand patterns. Despite these hurdles, Fujairah's strategic location and ongoing investments in infrastructure and alternative fuels position it to adapt to the evolving maritime fuel landscape. The port's commitment to transparency and data sharing through partnerships with organizations like S&P Global Commodity Insights enhances its appeal to global traders and investors. By providing detailed inventory levels and sales data, Fujairah enables market participants to make informed decisions, fostering a more efficient and responsive bunkering market.
