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ENGINE: East of Suez Bunker Fuel Availability Outlook (30 June 2026)

VLSFO availability tight in Singapore; availability good across several Sri Lankan ports; bunker demand picks up in Fujairah.

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ENGINE East of Suez 1

The following article regarding regional bunker fuel availability outlook for the East of Suez region has been provided by online marine fuels procurement platform ENGINE for publication on Singapore bunkering publication Manifold Times:

  • VLSFO availability tight in Singapore
  • Availability good across several Sri Lankan ports
  • Bunker demand picks up in Fujairah

Singapore and Malaysia

VLSFO availability in Singapore remains under strain, with recommended lead times continuing to vary widely across suppliers. While some suppliers can deliver in around nine days, others are quoting lead times of more than four weeks. Although the lower end of the range is unchanged, the upper end has extended further from around three weeks previously.

Recommended lead times for HSFO have narrowed to 7–11 days, compared with 5–13 days last week. For LSMGO, suppliers are advising lead times of 3–8 days, versus 6–10 days a week ago.

The port’s residual fuel oil inventories have averaged 18% lower so far in June than across May, according to the latest data from Enterprise Singapore. Stocks have fallen below 17 million bbls amid a sharp 37% drop in Singapore’s net fuel oil imports so far this month. Imports declined by 849,000 bbls, while exports increased by a modest 127,000 bbls.

Singapore’s middle distillate inventories have also continued to decline, averaging 7.89 million bbls so far this month. Stocks are 14% below previous levels, leaving inventories at multi-year lows.

Bunker fuel availability in Malaysia’s Port Klang remains mixed. VLSFO supply is generally sufficient, particularly for smaller prompt stems. However, LSMGO availability remains constrained, while HSFO continues to face supply pressure, leaving both grades relatively tight.

East Asia

Despite subdued bunker demand, VLSFO availability in Zhoushan remains under pressure. Recommended lead times have lengthened from 7–10 days last week to 7–12 days, contributing to the recent increase in the benchmark price. Lead times for both LSMGO and HSFO have extended to 5–7 days, up from just three days previously.

Bunker fuel supply across northern China presents a mixed picture. Suppliers in Dalian and Qingdao have ample stocks of VLSFO and LSMGO, although HSFO availability in Qingdao remains limited. In Tianjin, all major bunker grades continue to face supply constraints, while VLSFO and HSFO availability is tight in Shanghai. LSMGO supply in Shanghai, however, remains relatively stable.

Supply tightness also persists across several ports in southern China. Both VLSFO and LSMGO remain constrained in Fuzhou. Xiamen has adequate VLSFO availability but tighter LSMGO supply, while both grades remain constrained in Yangpu and Guangzhou.

Hong Kong’s bunker market remains stable, with recommended lead times for all major bunker grades holding at around seven days, broadly unchanged in recent weeks.

Meanwhile, bunker fuel availability remains steady across Taiwan’s key ports of Hualien, Keelung, Taichung and Kaohsiung. Recommended lead times for both VLSFO and LSMGO remain at around two days across all four ports, largely unchanged from last week.

Demand in South Korea’s bunker market has softened recently, according to a local trader. Across the country’s southern ports – including Busan, Ulsan, Masan, Onsan, Yeosu and Kwangyang – recommended lead times for VLSFO and LSMGO have narrowed to 4–6 days, from 4–9 days last week. HSFO lead times have also shortened to 4–6 days, compared with 4–9 days a week earlier.

Supply conditions have also improved at western ports, including Incheon, Daesan, Dangjin, Pyeongtaek and Taean. Recommended lead times for VLSFO and LSMGO have narrowed to 4–6 days, down from 4–9 days last week. HSFO availability remains stable, with lead times reduced to 4–6 days from 4–9 days previously.

Weather-related disruptions remain a concern across South Korea. Delays are forecast at Busan, Ulsan and Yeosu on 1 and 5 July, and at Daesan on 4 July.

In Japan, bunker demand has strengthened as expected, supported by some of the most competitive bunker prices in Asia. Enquiries have risen sharply, according to a Japan-based trader. VLSFO availability remains extremely tight, with limited supply capacity for July, while MGO availability has tightened suddenly and significantly.

The trader advised buyers to secure spot requirements immediately due to the severe supply squeeze and limited July allocations, with Japanese refineries expected to prioritise domestic energy demand.

At major Japanese ports including Tokyo, Chiba, Kawasaki, Kashima, Nagoya, Yokkaichi and Oita, VLSFO and LSMGO remain in short supply, with only a limited number of suppliers able to offer these grades. HSFO is comparatively more available, with recommended lead times of around 7–10 days.

VLSFO and LSMGO availability remains tight in Osaka, Kobe and Mizushima. Recommended lead times for these grades are around 7–10 days, while HSFO requires around 5–7 days.

Indonesia’s bunker market, by contrast, remains well supplied. VLSFO availability is stable across Jakarta, Surabaya, Balikpapan and Cigading, where suppliers are generally quoting lead times of around 2–3 days.

Oceania

A temporary fuel excise cut introduced to help shield Australians from the impact of the oil crisis is set to expire on 30 June. From 1 July, fuel excise rates will increase. However, the change will affect only vessels operating domestically, as international vessels remain fully exempt from fuel excise and GST, according to an Australia-based trader.

In Western Australia, VLSFO availability remains steady at Kwinana and Fremantle, where suppliers are generally recommending lead times of around seven days. Bunker operations at both ports continue to be supported by a single supplier, with deliveries carried out exclusively by barge.

Supply conditions along Australia’s east coast differ by port. In New South Wales, Port Kembla can facilitate VLSFO deliveries by either truck or pipeline, while suppliers in Sydney have adequate stocks of both VLSFO and LSMGO. HSFO supply remains comparatively tighter in Sydney, with suppliers typically requesting around seven days of advance notice.

In Queensland, VLSFO and LSMGO remain readily available in Brisbane and Gladstone, with recommended lead times of around seven days.

Further south, suppliers in Melbourne and Geelong continue to hold healthy VLSFO inventories. However, bunker operations at both ports rely on a single barge, resulting in lead times of approximately one week.

HSFO availability is becoming increasingly constrained in both Melbourne and Brisbane.

One supplier is currently offering all bunker grades in Brisbane, Sydney and Melbourne with lead times of around five days. In Dampier, bunker deliveries continue to rely on truck-assisted pipeline operations, making advance scheduling and berth confirmation particularly important, according to a market source.

Across the Tasman Sea, bunker fuel availability in New Zealand remains broadly stable. VLSFO is readily available in Tauranga and Auckland, where suppliers are recommending lead times of about four days. At Marsden Point, both VLSFO and LSMGO can be delivered directly to vessels via pipeline infrastructure.

Weather continues to pose an operational risk across New Zealand. Bunker deliveries are particularly vulnerable to disruption in Wellington and ports across the South Island, where adverse weather conditions can periodically affect supply operations.

South Asia

The onset of the monsoon is expected to disrupt bunker operations at several Indian ports in the coming days, with weather-related delays likely to affect delivery schedules. Disruptions are forecast at Kandla and Sikka between 1–4 July, while rough sea conditions could hamper bunker operations at Mumbai, Cochin and Visakhapatnam from 30 June to 4 July.

In Sri Lanka, bunker market conditions remain stable, with sufficient inventories of all major bunker fuel grades in Colombo and Hambantota. At least one supplier is recommending lead times of around six days.

Rough weather conditions may intermittently disrupt bunker operations at Colombo and Trincomalee between 1–4 July, potentially affecting bunker delivery schedules.

Middle East

Bunker fuel availability has improved across all major grades in Fujairah, with several suppliers now able to accommodate prompt delivery requests. The improvement follows the signing of a memorandum of understanding between Iran and the US that includes the reopening of the Strait of Hormuz.

Before the agreement, suppliers were grappling with tight cargo availability as lower imports restricted replenishment volumes for bunker barges. The supply situation has since eased following the arrival of a small batch of cargoes in recent days, with additional deliveries expected shortly, according to a Middle East-based source.

Bunker demand in Fujairah has also picked up, the source added.

Most suppliers in Fujairah are currently able to offer prompt VLSFO stems, while a smaller number have LSMGO available. HSFO remains comparatively tight, although some suppliers continue to offer the grade.

Supply conditions have also improved at the neighbouring UAE bunker hub of Khor Fakkan, where both VLSFO and HSFO availability has strengthened.

Elsewhere in the UAE, port operations at Jebel Ali, Hamriyah, Dibba and Sharjah are continuing without disruption, according to Inchcape Shipping. Ports in Ras Al Khaimah are also operating normally, although the RAK Ports Authority has continued to impose a marine risk surcharge on vessels calling at its ports, harbours and anchorages since March.

In Kuwait, operations at the ports of Shuaiba and Shuwaikh continue uninterrupted.

No official operational advisories have been issued by Saudi Arabian ports. In Jeddah, VLSFO and LSMGO availability remains relatively stable. However, adverse weather conditions could disrupt bunker operations in Jeddah on 1 July and in Yanbu between 1–3 July.

In Qatar, all ports remain operational, according to Inchcape Shipping. However, VLSFO and LSMGO continue to be in tight supply at Ras Laffan.

“Regional ports remain operational with no major port closures reported. Shipping activity through the Strait of Hormuz is gradually recovering following the recent de-escalation; however, some owners and operators remain cautious, and occasional schedule adjustments may still occur,” an Oman-based trader said.

Oman continues to offer strong prompt availability of LSMGO. One supplier is recommending lead times of just 2–3 days at the major ports of Duqm, Muscat, Sohar and Salalah. However, high wave activity forecast in Salalah between 30 June and 4 July could temporarily disrupt bunkering operations, according to a source.

In Egypt, port operations remain normal. At Port Suez, HSFO inventories are tight, while VLSFO stocks are close to depletion.

Further south, both VLSFO and LSMGO remain difficult to secure in Djibouti. Meanwhile, port and bunker operations across Jordan, Iraq, Cyprus, Pakistan and Lebanon continue to run normally, according to shipping agency Inchcape Shipping.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 1 July, 2026

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Methanol

China: Zhejiang completes first ship-to-ship methanol bunkering operation at shipyard

Zhejiang Free Trade Zone PetroChina Fuel Oil’s bunker tanker “JIA CHEN 17” supplied 795 mt of methanol to a newly built 5,900 TEU Maersk methanol dual-fuel container vessel.

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China: Zhejiang completes first ship-to-ship methanol bunkering at shipyard

China (Zhejiang) Pilot Free Trade Zone on Tuesday (30 June) said it has completed the province’s first ship-to-ship (STS) methanol bunkering operation at a shipyard, marking a new milestone in Zhoushan’s efforts to expand its portfolio of alternative marine fuel bunkering services.

The operation took place recently at Qingshan West Berth No. 2 of Tsuneishi Group (Zhoushan) Shipbuilding, where Zhejiang Free Trade Zone PetroChina Fuel Oil’s bunker tanker JIA CHEN 17 supplied 795 metric tonnes (mt) of methanol to the newly built 5,900 TEU methanol dual-fuel container vessel MAERSK FLINDERS.

The bunkering operation was completed in approximately 5.5 hours, making it significantly more efficient than truck-to-ship methanol bunkering, which authorities said would have taken around nine times longer to deliver the same volume

According to local authorities, the operation is the first of its kind at a shipyard berth in Zhejiang Province, filling a gap in on-site bunkering capabilities for shipbuilding and repair yards. Zhoushan has previously conducted truck-to-ship methanol bunkering, truck- and ship-to-ship LNG bunkering, and blended biofuel bunkering operations.

The demonstration project forms part of Zhejiang’s strategy to develop green marine fuel bunkering under the China (Zhejiang) Pilot Free Trade Zone Bulk Commodity Resource Allocation Hub Development Plan, which calls for pilot bunkering of alternative fuels including green methanol, liquid hydrogen and ammonia.

Earlier this year, the China (Zhejiang) Pilot Free Trade Zone‘s Zhoushan Administrative Committee identified three priority projects: the world’s first anchorage ammonia bunkering operation, Zhejiang’s first shipyard-based STS methanol bunkering operation, and simultaneous LNG bunkering alongside cargo operations at Yongzhou Terminal, Ningbo-Zhoushan Port.

Authorities said the shipyard-based STS model offers operational advantages over both ship-to-ship and anchorage STS bunkering. In addition to reducing inter-island transport and lowering overall costs, conducting the operation alongside at the shipyard minimises weather-related disruptions and improves operational safety and schedule certainty.

 

Photo credit: China (Zhejiang) Pilot Free Trade Zone
Published: 2 July, 2026

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Business

JERA establishes LNG, lower-carbon fuels and shipping unit in Singapore

As a wholly owned company, JERA GES will develop and manage JERA’s long-term LNG, upstream, lower-carbon fuels, and shipping portfolio.

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Swapnil Bapat on Unsplash

Japan’s power generation company JERA on Wednesday (1 July) announced the establishment of JERA Global Energy Solutions (JERA GES). 

As a wholly owned company, JERA GES will develop and manage JERA’s long-term LNG, upstream, lower-carbon fuels, and shipping portfolio. 

As global energy markets become increasingly volatile and complex, JERA has launched JERA GES, creating a vertically integrated LNG company which can quickly respond to the market needs while maintaining security of supply for Japan as its highest priority.

As JERA’s exclusive long-term LNG origination platform, JERA GES brings together an integrated strategy, portfolio management capabilities, and a focus on market development. With these, JERA GES will focus on developing a stable and diversified long-term LNG portfolio that balances supply sources with market opportunities, while advancing lower-carbon fuels such as ammonia and hydrogen. 

JERA GES will be headquartered in Singapore, with integrated operations in Japan and across the globe where it has investments. The company will maintain close coordination with JERA’s power generation and domestic energy market functions.

As part of JERA’s integrated LNG platform, JERA GES will work with JERA Global Markets (JERAGM), JERA’s exclusive global trading and optimization business. JERA GES will manage long-term LNG portfolio strategy and development, and JERAGM will continue to provide trading and optimisation capabilities that support portfolio flexibility and market responsiveness.

Together, the two companies will manage JERA’s LNG portfolio across different time horizons, combining long-term portfolio resilience with short-term market agility to unlock further growth and maximise value for JERA.

Irtiza H. Sayyed has been appointed Chief Executive Officer of JERA GES and will lead the company’s overall business development and execution. Ryosuke Tsugaru, JERA’s Chief Low Carbon Fuel Officer, will provide strategic direction from JERA headquarters and ensure close alignment with JERA’s broader LNG and lower-carbon fuels strategy.

Yukio Kani, JERA’s Global CEO and Chair, said: “The establishment of JERA GES represents an important step in strengthening JERA’s operating model for the next phase of its growth. By bringing greater focus, accountability and specialization to our long-term LNG and lower-carbon fuels portfolio, JERA is better positioned to respond to changing market conditions while continuing to support stable energy supply. 

“Together, JERA GES and JERAGM bring distinct and highly complementary capabilities to JERA, combining long-term portfolio management with world-class trading and optimization to create a stronger, more integrated LNG platform. I look forward to seeing both organizations continue to deliver long-term value for JERA.”

JERA GES will gradually assume responsibility for JERA’s existing long-term LNG and lower-carbon fuel business activities in line with the relevant transfer schedule. JERA will manage this transition carefully, maintaining continuity for existing business relationships and communicating any changes directly to relevant stakeholders.

Through JERA GES, JERA will connect its global LNG capabilities with the development of future energy solutions. This dedicated platform will support JERA’s growth in global energy markets and contribute to its mission of providing cutting-edge solutions to the world’s energy issues.

 

Photo credit: Swapnil Bapat on Unsplash
Published: 2 July, 2026

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Shipping Corridor

BV and Shenzhen Port Group to advance green shipping corridor development

Through resource sharing and complementary capabilities, they will jointly develop green shipping projects to deliver replicable and scalable outcomes.

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BV and Shenzhen Port Group to advance green shipping corridor development

Bureau Veritas Marine & Offshore (BV) on Tuesday (30 June) said it signed a strategic cooperation agreement with Shenzhen Port Group on 29 June in Shenzhen, China.

The two parties engaged in in-depth discussions on strengthening collaboration across key sectors and jointly advancing the development of green shipping corridors.

Under the agreement, both parties will leverage their respective strengths and resources to deepen collaboration focused on the development of green shipping corridors and related businesses. Through resource sharing and complementary capabilities, they will jointly develop green shipping projects to deliver replicable and scalable outcomes.

Bureau Veritas will provide professional technical support to Shenzhen Port Group and industry players at large, helping them navigate evolving maritime regulatory policies and translate emerging international rules into practical, implementable measures to align domestic and global industry standards.

Backed by its comprehensive global business footprint, BV offers end-to-end testing, inspection and certification services covering the entire green fuel industrial chain, spanning renewable energy production to bunkering infrastructure for marine fuels. It has also built extensive hands-on experience in numerous domestic green fuel projects.

Alex Gregg-Smith, President of Bureau Veritas Marine & Offshore, said: Global decarbonization of the shipping industry requires concerted efforts and in-depth collaboration across the entire industrial value chain. 

“As a world-class port conglomerate, Shenzhen Port Group boasts strengths that are highly complementary to Bureau Veritas’s expertise in technical services and standard-setting. Deepening our partnership is of great significance for the green transition of the shipping sector. We hope this collaboration will serve as a catalyst to align domestic and international standards and jointly develop viable pathways for low-carbon maritime trade.”

Hu Zhaoyang, Secretary of the Party Committee and Chairman of the Board at Shenzhen Port Group, stated: “Bureau Veritas Marine & Offshore is a globally recognized authoritative body in the maritime sector, with a wealth of decarbonization solutions and practical experience for the global shipping industry. Its vision aligns perfectly with Shenzhen Port Group’s green development strategy. 

“Building on this agreement, we will further expand all-round cooperation across relevant fields, and maximize the combined value of Shenzhen Port Group’s diverse industrial application scenarios and BV’s authoritative technical certification capabilities to achieve mutual benefit through complementary strengths.”

 

Photo credit: Bureau Veritas Marine & Offshore
Published: 2 July, 2026

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