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Argus Media: INE contract targets IMO 2020 bunker fuel market

Futures contract part of efforts by Zhoushan to create an international bunkering hub rivaling Singapore.

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Global energy and commodity price reporting agency Argus Media on Tuesday (23 July) provided a bunker industry update informing readers the Shanghai International Energy Exchange (INE), a subsidiary of SHFE, is working on developing its own 0.5%S marine fuel futures contract:

China aims to list a new 0.5pc sulphur marine fuels futures contract by the end of this year.

The Shanghai Futures Exchange (SHFE) hopes the contract will give producers and trading firms a means to hedge their exposure to the new physical market emerging for 0.5pc sulphur bunker fuel. The SHFE's INE subsidiary expects to complete listing preparation work for the contract by the end of this year in order to get approval from national securities regulator the CSRC and to launch in early 2020.

The contract will work around the physical settlement of positions in bonded storage tanks where tax is only paid when the fuel is removed, like China's INE crude futures contract.

The INE aims to match its marine fuels contract to the incoming 0.5pc sulphur bunker fuel required by International Maritime Organisation (IMO) rules from 1 January 2020. It will be open to international investors but denominated in yuan, introducing an element of foreign exchange risk for offshore participants.

There is already a bunker fuel futures contract listed on the SHFE. The SHFE changed the delivery basis to bonded from domestic delivery last year, to boost its relevance to international bunker trade, and succeeded in boosting liquidity from close to zero to more than 800,000 lots of daily trade and 200,000 lots (2mn t) of open interest.

The SHFE allows delivery of both 3.5pc sulphur and 0.5pc sulphur bunker fuel into the existing contract. Either may be delivered to settle open positions, but only 3.5pc sulphur fuel is used because it is less valuable than the 0.5pc sulphur fuel grade. The latter commands a $138.98/t premium to the former at Zhoushan in Zhejiang province this month, Argus physical assessments show, down from a premium of $173.61/t in June.

The SHFE considered incorporating a premium for 0.5pc sulphur marine fuels into its futures contract, to attract liquidity. But it appears to have ditched that plan in favour of creating a new contract from scratch, perhaps to avoid the challenge of creating a dynamic market differential for each grade. Creating a new contract entails a far lengthier approvals process.

The futures contract proposal is part of a drive by the Zhoushan city government to create an international bunkering hub to rival Singapore. Bunker fuel trade at Zhoushan has grown rapidly, to 3.593mn t (60,000 b/d) last year from just 910,000t in 2016. But, Chinese bunker fuel traders still use Singapore swaps for their hedging purchases. Using a Chinese futures contract in China — even if physically settled — should better capture local market fundamentals, provide a regional arbitrage tool and be easier to access than Singapore swaps markets.

The Chinese bunker market is in its infancy and is dominated by a handful of state-owned firms. Only a dozen companies have bunkering licences at Zhoushan, where state-controlled PetroChina's bunkering arm, Chimbusco, is by far the largest trader. Refuelling at Zhoushan is far costlier than using Singapore because the government collects nearly Yn2,000/t ($44/bl) in fuel oil consumption and value-added taxes that it currently does not refund — even on bunker sales into the export market.

In contrast, the government does rebate taxes paid on gasoline, diesel and jet exported under quotas issued by the commerce ministry. This is about to change. A lobbying campaign by state-owned oil firms and the Zhejiang government is likely to persuade Beijing to announce rebates for bunker exports by the end of this year.

Source: Argus Media
Published: 24 July, 2019

 

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Winding up

Singapore: High Court to hear Norvic Shipping Asia winding up application on 31 July

Application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to Government Gazette notice.

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An application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to a Tuesday (21 July) notice on the Government Gazette.

It noted the winding up application is directed to be heard before the Judge sitting in the General Division of the High Court at 10am on 31 July.

Any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the solicitors of the applicant’s, Oon & Bazul LLC, on payment of the regulated charge for the same.

The Applicant’s address is Hiridostraat 5, Gebouw Prismatrium, 1101CW Amsterdam, The Netherlands.

The Applicant’s solicitors are Oon & Bazul LLC of 103 Penang Rd, #04-04/05/06 Singapore 238467. 

Queries on the winding up application may be directed to the following email addresses: [email protected] and [email protected].

 

Photo credit: Manifold Times
Published: 22 July, 2026

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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