Neste Singapore diesel line shuts over tools failure, elevating world provide disruption considerations.
A manufacturing line at Neste’s Singapore biorefinery, devoted to renewable diesel for the US market, has been quickly shut on account of technical points, 5 biofuel merchants stated Oct. 17.
The unplanned stoppage occurred in the course of the plant’s restart after scheduled upkeep work. The deliberate outages at its Singapore refinery throughout a six-week turnaround within the third quarter and a four-week upkeep shutdown in Rotterdam had been anticipated to restrict renewables gross sales, making extra downtime a key draw back threat.
The affected manufacturing line produces renewable diesel that meets necessities set for the US market.
The refinery’s sustainable aviation gasoline manufacturing on the new line stays unaffected.
In line with sources, Neste has notified its US prospects of the potential influence on their deliveries for the rest of 2024.
The incident occurred over the past quarter by which imported biofuels can profit from the US blender tax credit score, which implies Neste may miss out on gross sales throughout this era.
The refinery is without doubt one of the main services of the world’s largest producer of renewable diesel and jet gasoline.
Neste confirmed later to S&P World Commodity Insights that restore work has commenced to handle the technical points and convey the road again on-line.
The corporate stated:
After the third-quarter deliberate upkeep shutdown and associated start-up in October, Singapore’s first manufacturing line encountered an unexpected tools failure that led to the shutdown of the manufacturing line on the refinery.
“The impacted manufacturing line produces renewable diesel that meets the necessities set for the US market. Restore work has commenced. Neste’s US prospects have been notified of the influence on their deliveries for the rest of 2024,”
Neste stated that its renewable diesel deliveries to prospects outdoors of the US proceed as deliberate, as the corporate can also be producing renewable diesel at its refineries in Finland and the Netherlands, in addition to by a joint operation in California.
In its Q2 report launched July, Neste forecast its world SAF gross sales volumes would complete 500,000-700,000 mt, revising down its higher band forecast by 30% however sustaining optimistic development outlooks for Q3 and This fall.
This was led by a fall in diesel costs which has severely impacted gross sales costs, whilst prices for waste and residue feedstocks have stayed steady and market premiums for renewable merchandise have remained weak,
The full gross sales quantity for the Renewable Merchandise enterprise is now anticipated to succeed in round 3.9 million mt with a variation of 5%, a lower from the earlier forecast of 4.4 million mt.
Neste now forecasts the typical renewable comparable gross sales margin to be round $360-$480/mt, considerably decrease than the prior outlook of $480-$580/mt.
Platts, a part of Commodity Insights, assessed renewable diesel value of manufacturing (PFAD) at $1,582.80/mt on Oct. 17, down $15.18 from the earlier evaluation.
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Neste Singapore diesel line shuts over tools failure, elevating world provide disruption considerations. supply
