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Argus Media: Panama MGO sales up but VLSFO demand dominates

‘High-sulphur resid was replaced by VLSFO sales in Panama, because VLSFO sells at a discount to MGO,’ reports Argus Media.

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Stefka Wechsler of global energy and commodity price reporting agency Argus Media on Monday (2 March) issued a report analysing the domination of VLSFO in Panama bunker sales due to a VLSFO-MGO discount :

January 2020 0.1% sulphur marine gasoil (MGO) sales at the Panama Canal accounted for 14% of total marine fuel demand and 86% of residual fuel oil.

The share of MGO sales in Panama was up from 9% in January 2019 and January 2018 and 11% of total marine fuel sales in 2019.

The Panama port authority did not break down residual fuel oil sales into 0.5% sulphur maximum and 3.5% sulphur maximum. But local suppliers estimate demand for very low sulphur fuel oil (VLSFO) with 0.5% sulphur and high-sulphur fuel oil (HSFO) with 3.5% sulphur at 73-82% and 4-13% respectively of total Panama marine fuel demand.

By comparison, in the US suppliers estimate VLSFO at 57-62% of total marine fuel demand, HSFO at 5% and MGO at 33-38%. Data from the port authority of Singapore, the biggest bunkering port in the world, showed VSFO, HSFO and MGO sales at 71%, 19%, and 10% respectively for total January demand.

Panama sold 67,606t of MGO in January, up from 44,716t in January 2019. Fuel oil sales reached 409,733t in January, compared with 393,965t in January last year. Taking into account suppliers estimates, VLSFO sales were around 348,300-389,200t and HSFO around 20,500-61,500t the first month of this year.

The International Maritime Organization (IMO) regulation effective 1 January capped bunker fuel sulphur emissions content at 0.5% from 3.5%. Starting this year, high-sulphur resid is only sold to vessels outfitted with scrubbers. High-sulphur resid was mostly replaced by VLSFO sales in Panama, because VLSFO sells at a discount to MGO. The Argus-assessed Panama VLSFO–MGO discount averaged $31/t in February compared with $23/t in January. The VLFO–HSFO premium narrowed to $154/t in February from $273/t in January.

Panama, which does not have an operational refinery, relies on oil imports. Data from oil analytics firm Vortexa shows Panama importing residual fuel oil from the US Gulf coast, Peru, Ecuador, Chile, Argentina and Colombia. The bulk of Panama’s diesel imports — over 65% — are sourced from the US Gulf coast. Panama also imported diesel from Canada, China, Ecuador, South Korea and Russia among others.


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Argus Media
Published: 3 Match, 2020

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Biofuel

BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

Bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier “Berge Lyngor”, which was bunkered in Singapore in early May.

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BHP and GCMD trial multi-feedstock B100 bio bunker fuel on bulk carrier

BHP and the Global Centre for Maritime Decarbonisation (GCMD) on Wednesday (3 June) said they have blended biofuels from two distinct feedstocks—used cooking oil and waste animal fats —and introduced the lower-emissions marine fuel into a BHP-chartered bulk carrier as part of a pilot project.

The bio-blend in the BHP and GCMD pilot is being used on a BHP-chartered bulk carrier Berge Lyngor, owned and operated by Berge Bulk, transporting BHP iron ore from Western Australia to China. When run on bio-blend, the vessel has the potential to reduce well-to-wake greenhouse gas emissions by approximately 79 per cent per voyage compared to sailing on very low sulphur fuel oil (VLSFO).

The vessel bunkered in Singapore in early May with a B100 bio-blend comprising 50 percent tallow-derived biodiesel, sourced and supplied by HAMR Energy, and 50 per cent used cooking oil (UCOME) supplied by Mitsui & Co Energy Trading Singapore (METS).

Mitsui also blended the fuel and Dan-Bunkering coordinated and executed the bunkering operation, which was performed by Global Energy’s barge MT Maple.

The BHP and GCMD pilot will assess how biofuels from multiple feedstocks can be blended, handled, and introduced under real-world operating conditions using existing used cooking oil bunkering infrastructure.

At the same time, insights from this pilot will help identify solutions to challenges related to fuel quality, handling, traceability, and onboard vessel performance.

Biofuels for global shipping today rely heavily on used cooking oil – a feedstock whose availability is approaching its projected limits. Biofuel from waste animal fats presents a promising option to expand the supply of lower-emissions marine fuels.

The outcomes of the pilot are expected to shed light on the practical steps to integrate biofuel blends from different feedstocks into existing supply chains. The diversity of biofuels will provide shipowners and operators with greater flexibility to optimise fuel procurement based on cost, availability, and lifecycle emissions performance.

Biofuels derived from different feedstocks can exhibit varying properties that may impact operations, including potential corrosion from oxidation, fuel system clogging caused by wax formation, which this pilot aims to assess.

The pilot will trace and verify the biofuel blend’s integrity aimed at bolstering confidence in emissions reductions reporting. The pilot will also provide insights into how robust tracing can support future marine fuel supply chains where biofuels from multiple feedstocks with varying lifecycle greenhouse gas emissions footprints are blended together.

This project is co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund (MINT).

 

Photo credit: Global Centre for Maritime Decarbonisation
Published: 3 June, 2026

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Biofuel

NYK starts one-year B100 bio bunker fuel trial on car carrier

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices.

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NYK starts one-year B100 bio bunker fuel trial on car carrier

Japanese shipping firm NYK on Tuesday (2 June) said it has commenced a one-year long-term trial involving the continuous use of 100% biofuel (B100) on an NYK-operated car carrier. 

In this trial, NYK will operate a car carrier continuously on B100 for one year to evaluate the impact on engines, fuel supply systems, and operational practices. High-purity biofuels such as B100 are known to be susceptible to degradation from oxygen, light, and heat, raising concerns about the stability of such fuels during long-term use.

In this trial, the biofuel primarily comprises FAME (Fatty Acid Methyl Ester) derived from used cooking oil and similar feedstocks.

The initiative is designed to evaluate the fuel’s effects on the vessel’s equipment and verify operational safety under real-world conditions. 

Through this effort, NYK seeks to accumulate technical expertise that will support the broader use of high-purity biofuels and further accelerate efforts to reduce greenhouse gas (GHG) emissions.

NYK has been advancing the use of biofuels through various initiatives. In 2024, the company conducted a trial using biofuel blend B24 and subsequently expanded practical usage to B30. However, the company said there remains limited global experience with the long-term continuous use of B100.

“By collecting long-term operational data through this trial, NYK aims to accumulate valuable technical insights to support both the safe operation of vessels and the wider adoption of high-purity biofuels,” it said. 

 

Photo credit: NYK
Published: 3 June, 2026

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Ammonia

AM Green plans to build green ammonia plant at Indian port

Initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes, says VOC Port Authority.

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VO Chidambaranar (VOC) Port Authority on Friday (29 May) said it has signed a Memorandum of Understanding (MoU) with India’s ammonia producer AM Green Ammonia to collaborate in the development of a green ammonia production plant.

The plant will have a capacity of one million tonnes per annum (MTPA) at Tuticorin.

The initiative also includes development of green ammonia handling, storage and bunkering infrastructure, pilot bunkering operations, safety procedures and training programmes. 

The project is expected to support the development of green fuel corridors connecting VOC Port with major ports in Europe and Asia, thereby strengthening India’s position in the global green fuels value chain.

VOC Port also signed a Memorandum of Understanding (MoU) with Bureau Veritas (India) Pvt. Ltd., to collaborate on Green Port certification, emissions accounting, ESG reporting, safety validation, development of green bunkering practices, and establishment of a Centre of Excellence for green fuels and sustainability.

The port also plans for an upcoming 750 m³ green methanol bunkering facility.

 

Photo credit: Naveed Ahmed on Unsplash
Published: 3 June, 2026

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