Tampa:
Genscape reported the shutdown of a 131,000 barrel/d fluidic catalytic cracking unit (FCC) at the Phillips 66 Bayway, N.J., refinery on Jan. 31. Despite increased heating and activity levels observed from the unit shortly following the shutdown, the FCC remained offline as of Feb. 2.
First-quarter Tampa molten contracts were valued at $282/lt CFR, rising $99/lt from the prior $183/lt CFR agreement.
Refinery rates moved lower for the week ending Jan. 28, the U.S. Energy Information Administration (EIA) reported, the sector’s fourth consecutive week of declining utilization.
Operable capacity stood at 86.7 percent during the period, a 1.0-point decrease from 87.7 percent posted one week earlier. The current rate topped the year-ago 82.3 percent, while trailing the five-year average of 86.9 percent.
Crude inputs were also down at an average 15.248 million barrels/d, the EIA said, falling 249,000 barrels/d from the prior week’s 15.497 million barrels/d rate.
U.S. Gulf:
The United Steelworkers union (USW) has extended contract talks with lead oil company negotiator Marathon Petroleum Corp. beyond a Feb. 1 strike deadline, Reuters reported, shifting to a rolling 24-hour deadline in the hope of reaching an updated employment contract.
The prior contract, covering approximately 30,000 USW workers, expired on Feb. 1. The USW reportedly rejected a proposal offered ahead of the deadline that included a nine percent pay raise, due over three years. The USW’s prior employment contract, negotiated in 2019, provided an 11 percent pay raise.
USW members went on strike in February 2015 after failing to reach an updated agreement. The nationwide strike lasted approximately six weeks, while workers at the Marathon Galveston Bay, Texas, refinery ended their work stoppage in July 2015.
Motiva restarted the 85,000 barrel/d VPS-2 crude distillation unit (CDU) at the company’s Port Arthur, Texas, refinery on Jan. 28, Genscape noted. The CDU and an associated vacuum distillation unit (VDU) were taken offline for maintenance on Jan. 10.
Citgo on Jan. 27 successfully restarted a 174,000 barrel/d CDU and an 85,000 barrel/d VDU at the Corpus Christi, Texas, refinery on Jan. 27, after the units were shut on Jan. 25. A 69,000 barrel/d fluidic catalytic cracking unit (FCC) at the facility has been on a planned turnaround since Jan. 17.
ExxonMobil Corp. restarted a 116,000 barrel/d FCC at the company’s Baton Rouge, La., plant on Feb. 1. The unit was taken offline for planned maintenance on Jan. 6.
Price ideas on the Gulf export sulfur market continued to be reported in the $290-$300/mt FOB range, unmoved from the prior report.
Brazil:
Sources quoted last-done Brazil spot at $355-$357/mt CFR, unchanged from the previous week.
Canada:
Genscape reported a sulfur recovery unit shutdown at the Irving Oil refinery in St. John, N.B., on Jan. 27. The shutdown was preceded by a bout of excess emissions. An activity ramp-up observed shortly after the unit went offline resulted in a successful restart on the evening of Jan. 28.
Last-done business at Vancouver remained at $280/mt FOB for the week. New offers heard closer to $300/mt FOB hinted at likely firming in the next round of business, sources said.
Alberta sulfur netbacks were flat at $167-$210/mt FOB, and included values netting back from sales of both molten and prilled material.
West Coast:
Valero on Jan. 28 restarted the 40,000 barrel/d catalytic reformer at the company’s Benicia, Calif., refinery, Genscape reported. The unit had been offline since Jan. 18.
Increased activity was observed from a 31,000 barrel/d catalytic reformer at the PBF Energy plant in Martinez, Calif., during the week, although the unit remained shy of normal operating levels. Decreased activity had been observed from the facility’s 158,000 barrel/d crude section since Jan. 8.
Solid sulfur indications on material loading from the West Coast held steady at $280/mt FOB, sources said. Contracts for molten sulfur were noted in the $230-$245/lt FOB range for Q1, above the $160-$170/lt FOB price for fourth-quarter 2021.
China:
An ongoing tax crackdown focused on China’s independent teapot refineries could have a chilling effect on domestic Chinese refinery utilization, Platts reported,reducing onshore sulfur supply and setting the stage for a potential demand uptick for imported product.
Two facilities located in the northern Liaoning province, bordering North Korea, were already in violation of China’s strict tax policies governing the sale of oil products, according to a Jan. 19 announcement from China’s State Taxation Administration (STA). An unapproved capacity expansion completed in April 2021 was among the offenses detailed against the companies.
More independent refineries were expected to come under the STA’s microscope in the months ahead, including units located in Shandong province, home to approximately 50 percent of China’s teapot refiners.
Sources expected a largely quiet China sulfur market due to the country’s Feb. 1 Lunar New Year holiday. Last-done continued to be reported at $335/mt CFR, with firmer values indicated for the next round of business.
ADNOC:
Abu Dhabi National Oil Co. offers for February loading were reported firming to $320/mt FOB Ruwais, up $20/mt FOB from $300/mt FOB in January.