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Argus: ARA B100-MGO bunker fuel average weekly spread flips to discount

Spread of marine biodiesel with 100pc advanced FAME in ARA on a dob basis to conventional MGO flipped to a $70.28/t discount in the week to 15 September for the first time since January.

Published

12 months ago

September 20, 2023

Admin

The spread of marine biodiesel with 100pc advanced fatty acid methyl ester (FAME) in ARA on a dob basis to conventional marine gasoil (MGO) flipped to a $70.28/t discount in the week to 15 September for the first time since January. This factors in the value of Dutch renewable fuel units (HBEs) that can be claimed for the blending of advanced biofuels.

18 September 2023

Conventional MGO prices have firmed in ARA, averaging $964/t in the week to 15 September, the strongest weekly level since November 2022. MGO levels firmed on the back of tightening gasoil supply in northwest Europe, resulting in distillate blendstocks getting redirected towards road-fuel diesel grades commanding a greater premium and away from MGO supply. Market participants also noted tighter availability of conventional MGO in recent trading sessions in line with tighter supply of blending components.

B100 levels, which incorporate a discount based on the double counting of advanced HBEs, slipped on lacklustre demand for the product, according to market participants, who had previously mentioned that the price of B100 weighed on bunker fuel demand compared with conventional bunker fuels and B30 marine biodiesel blends. This may now change if B100 continues to price at a discount to MGO.

Further, the EU emissions trading scheme (ETS) is scheduled to commence next year, which may provide an additional incentive for shipowners to switch to B100. Argus estimates that a B100 blend comprising 100pc advanced fame will not be subject to ETS costs, as ETS emissions will be calculated on a tank to wake basis.

Shipowners running vessels with scrubbers may still opt to burn high-sulphur fuel oil (HSFO) and pay for the CO2 costs, according to market participants. B100 commanded a premium of $36.29/t against dob HSFO when CO2 costs are factored on the week to 15 September, according to Argus calculations. But B100 also flipped to a discount of $2/t to dob HSFO with CO2 costs on 15 September for the first time since April. Further, HSFO availability has been tight in northwest Europe in recent sessions, resulting in dob HSFO levels firming to $603/t on 15 September — the highest since June 2022. Shipowners with vessels that are not fitted with scrubbers are unable to utilise HSFO or even VLSFO in Emission Control Areas (ECA), but are able to burn B100.

Photo credit and source: Argus Media
Published: 20 September, 2023

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LNG dual-fuel tugs begin operations in Hong Kong Terminal

Built by Cheoy Lee Shipyards, “LNG Sentinel I” and “LNG Sentinel II” were specifically designed for service at the Hong Kong LNG Terminal Limited import terminal.

Published

1 month ago

July 30, 2024

Admin

LNG dual-fuel tugs begin operations in Hong Kong Terminal

A pair of dual fuel (diesel and LNG) RAstar 4200-DF standby vessels have recently entered service with Hongkong Salvage & Towage (HKST), according to naval architect company Robert Allan Ltd recently.

Built by Cheoy Lee Shipyards, LNG Sentinel I and LNG Sentinel II were specifically designed for service at the Hong Kong LNG Terminal Limited (HKLTL) import terminal.

Featuring a unique electrical propulsion system with Z-drives that can receive power from both diesel and dual fuel (diesel and LNG) propulsion gensets, these vessels will help maintain a safety zone around the terminal and assist with berthing of LNG carriers to the jetty.

They will also transport personnel plus equipment between Hong Kong and the floating regasification and storage unit (FSRU) and jetty. Their standby duties may include emergency towing of the FSRU, fire-fighting, spill response, and rescue.

Working closely with both HKST and Cheoy Lee Shipyards through the design process was key to enabling Robert Allan to design this vessel pair that are customised for the missions for which they will be tasked.

These vessels are the 8th and 9th LNG dual fuel tugs completed to five different Robert Allan designs, with three classification societies, and for service on three continents.

Photo credit: Robert Allan Ltd
Published: 30 July 2024

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LiqTech, Danbee Marine partner on marine scrubber water treatment solutions for South Korean market

‘We are excited to expand our presence in the Korean ship building market through this partnership agreement with Danbee Marine who has a strong network in the South Korea marine market,’ said Fei Chen, CEO of LiqTech International.

Published

1 month ago

July 29, 2024

Admin

Filtration company LiqTech International on Thursday (25 July) said it has entered into a partnership agreement with and Danbee Marine, a South Korean-based maritime representative to the shipping industry, to market LiqTech's marine scrubber water treatment solutions within South Korea.

Established in 2009, Danbee Marine, has been focused on delivering fuel treatment chemicals to reduce fuel consumption and emissions within the Korean maritime market.

“Danbee Marine has a strong presence and foothold with major ship owners and shipyards with a deep insight into marine engineering and equipment. The addition of LiqTech's compact and efficient marine scrubber water treatment system offering is a synergistic extension of their existing product offerings,” LiqTech said in a statement.

According to LiqTech, its marine scrubber water treatment system for both closed-loop and hybrid scrubbers “outperforms discharge limits regulated by the IMO Marpol VI”.

LiqTech's solutions remove unburned fuel oil, soot particles, ash, and heavy metals from marine scrubber wastewater and take an active role in reducing world pollution.

Since LiqTech's first marine installations in 2017, the company has successfully installed retrofit and new-build marine scrubber water treatment systems on more than 170 large commercial ships for many global ship owners.

“Furthermore, ship owners have gained tremendous fuel savings leveraging LiqTech's water treatment units, providing for enhanced ROI,” the firm said.

“We are excited to expand our presence in the Korean ship building market through this partnership agreement with Danbee Marine who has a strong network in the South Korea marine market,” said Fei Chen, CEO of LiqTech International.

“As the second largest ship building market in the world, we have had a presence with a small number of key customers, including Hyundai Merchant Marine over the years, but have lacked the large-scale presence across a wide variety of ship builders that Danbee can provide.”

“I look forward to working with the capable team at Danbee to deliver our advanced and proven marine scrubber water treatment solutions to help ship owners and ship builders in South Korea fulfil regulatory requirements.”

Photo credit: Felix Fuchs on Unsplash
Published: 29 July, 2024

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Singapore: Annual general meetings scheduled for Xihe Holdings subsidiaries

Annual general meetings of companies/creditors will be held for Xin Chun Shipping (Pte) Ltd and Xin Dun Shipping (Pte) Ltd on 11 July and 9 July respectively, according to Government Gazette notices.

Published

3 months ago

June 24, 2024

Admin

Notices were published on the Government Gazette on Friday (21 June) regarding scheduled annual meetings for two Xihe Holdings subsidiaries Xin Chun Shipping (Pte) Ltd and Xin Dun Shipping (Pte) Ltd.

Annual general meetings for Xin Chun Shipping are to be held on 11 July at the following times:

For the company: 10.00 am
For the creditors: 11.00 am

Annual general meeting for Xin Dun Shipping are to be held on 9 July at the following times:

For the company: 10.00 am
For the creditors: 11.00 am

AGENDA