Page 13 - LatAmOil Week 04 2023

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Bowman was referring to the fact that the plant, Oni will eventually turn out enough synthetic
which is being built in Chile’s Magallanes region, gasoline to meet the needs of about 1mn drivers
will use green hydrogen produced using wind per year, according to Bowman.
power and via the extraction of carbon dioxide HFI built its green hydrogen plant in a
from the atmosphere as feedstock for synthetic remote and thinly populated region of the
motor fuels. The facility will be the largest green country that is widely seen as an ideal spot for
hydrogen plant in Latin America, and it will be the installation of the wind turbines that will be
capable of turning out 350 tonnes per year (tpy) used for electricity generation and the facilities
of synthetic methanol and 130,000 litres per year for extracting carbon dioxide from the atmos-
(lpy) of synthetic gasoline, she said. phere. Winds in the area can sometimes reach
The plant’s output can be used as a substitute speeds of up to 100 km per hour.
for existing varieties of motor fuel, including Bowman told Xinhua last week that she
conventional gasoline produced from crude oil hoped the Haru Oni plant could help trans-
and synthetic gasoline made from natural gas form the area into an innovation hub, with
and coal, without any need to convert existing similar projects following suit. Its ambitions
vehicles, she added. have already attracted the attention of Siemens
The new production stream will be function- Energy (Germany), the other firm behind this
ally equivalent to 93-octane gasoline and highly project.
similar to conventional benzine, though free of Siemens has already expressed support
impurities, she stated. It will also have the advan- for HFI’s plans, and it has said it will help the
tage of being a major contributor to decarboni- Chilean company increase production of car-
sation, as it will reduce particle matter emissions bon-neutral fuel to 55mn lpy by 2024, after
by 90%, she said. which it hopes to exceed 550mn lpy by 2026.
Construction of the plant began in 2021, and The Haru Oni plant is set to play a role in
the facility made its first delivery of green hydro- Chile’s goal to become a world leader in the pro-
gen-based synthetic gasoline in late 2022. Haru duction of green hydrogen by 2050. ™

GLOBAL
IEA expects an inflection in oil markets

in 2023, when demand will exceed supply

THE International Energy Agency (IEA) changes in price and volume will be temporary
reports that oil demand this year will grow by while the market and Russia find new routes
1.9mn barrels per day, to a record 101.7mn bpd, and customers for its oil products. A similar
and supply by 1mn bpd, to 101.1mn bpd, in its thing happened in the first months of the war
first monthly report for 2023 released on Janu- in Ukraine where Russian exports fell as trad-
ary 18. Russia’s federal budget is already under ers avoided buying the Urals blend and the dis-
pressure from tumbling oil and gas revenues count increased then as well. However, after a
but with a bit of luck a rise in oil prices in the few months traders in Asia – in India and China
second half of this year could take some of the in particular – stepped in to buy the very cheap
pressure off. Russian oil driven by market forces. Analysts
The oil market has already been hit by the assume that something similar will happen
oil price cap scheme and EU embargo on the now, but where the export volumes and prices
import of Russian crude that went into effect will settle remains a matter of debate.
on December 5. It will receive a second blow The IEA predicts that there will be a turning
when a similar two-speed embargo and price point in the international oil market in the mid-
cap regime is introduced by the EU on February dle of this year. The latest IEA’s Monthly Oil Sta-
5 that will further affect supplies. However, oil tistics report including October 2022 data shows
prices for Brent rose to $85 after the IEA released that for the main areas within the OECD:
its report on January 18. · Total OECD production of crude oil, NGL
So far, the EU ban on crude has led to a fall in and refinery feedstocks increased by 4.3% in
Russia’s exports of crude as international tanker October 2022 compared to October 2021.
companies shy away from Russian oil, afraid · Refinery gross output of total products
of secondary sanctions. The discount on the grew by 1.9% on a year-on-year basis.
Russian Urals blend of oil has also blown out to · Net deliveries of total products decreased
almost 50% against the benchmark Brent blend. by 1.5% in October 2022 compared to October
However, analysts speculate that these 2021.

Week 04 25•January•2023 www. NEWSBASE .com P13