World News
ExxonMobil Antwerp Refinery Upgrade Will Make More Low-Sulfur Fuel
ExxonMobil's planned upgrades at its Antwerp refinery are likely to have a positive impact on the company's bottom line, in part by allowing the company to sell more low-sulfur marine fuel, investment analysis firm Trefis says in a Forbes.com column.
The refinery's new delayed corker will improve the yield of the low-sulfur fuel, as well as diesel, which commands higher margins, while reducing the amount of bitumen and high-sulfur marine fuel oil produced.
"Thereby, it would also strengthen the competitive position of Exxon's other refineries in Europe by taking heavy residue from these refineries as input and converting it into usable transportation fuel," Trefis says.
The $1 billion upgrade, announced earlier this month, will allow ExxonMobil to help meet the growing demand for diesel from European automobiles, which have been shifting away from gasoline.
The investment comes as Exxon's downstream margins have fallen due to industry overcapacity, low demand, and high crude prices, and as several European refineries are closing in the face of economic pressures.
Some European refineries said earlier this year that they are reducing their throughputs and considering upgrades in response to the falling demand for heavy fuel oil (HFO).
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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