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Argus Media: Asian LSFO margins exceed two-year lows on high supply

Singapore low-sulphur fuel oil margins against Dubai crude values have fallen to over two-year lows, against higher inflows to the city-state and demand, according to Argus Media.

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Singapore low-sulphur fuel oil (LSFO) margins against Dubai crude values have fallen to over two-year lows, against higher inflows to the city-state and demand possibly taking a hit from recessionary fears moving forward.

15 December 2022

Margins fell to $7.82/bl on 13 December, the lowest levels since the $7.72/bl on 2 November 2020, according to Argus’ assessments.

The fall is likely the result of higher low-sulphur residual inflows to Singapore from the west of Suez and Asia-Pacific this month, market participants said, estimating it to be around 2mn t. Total low-sulphur residual inflows to Singapore in December are projected to be around 2.35mn t so far, higher than the average of 2.18mn t/month in 2021, according to data from oil analytics firm Vortexa.

Incremental LSFO inflows to Singapore from Kuwait – and expectations of more to come – is likely pressuring margins as well, traders said. Kuwait’s state-owned KPC sold the first 100,000t (645,000 bl) LSFO cargo from its new 615,000 b/d Al-Zour refinery for 28-29 November loading. The cargo was likely sold to BP and loaded on the tanker Ridgebury Nicholas A from Kuwait over the same dates, and Fleetmon data shows the tanker’s current position is in the Malacca Strait.

Al-Zour is a topping refinery which produces LSFO mainly for local power plants, with the excess to be exported. Al-Zour is projected to produce 10-12mn t of LSFO per year when all units come online, sources close to the company said, of which around 5mn t/year will be exported after domestic power generation and bunker demand is fulfilled. Apart from the LSFO cargo, KPC has sold two 80,000t heavy fuel oil (HFO) cargoes for December-loading, with one more 80,000t cargo for 20-21 December loading in the process of being sold.

India’s state-controlled BPCL also recently resumed its VLSFO exports, offering three 20,000t cargoes for November and December-loading, its first offers since March. The first cargo has likely been discharged in Singapore in end-November, according to Vortexa data.

Singapore’s onshore residual fuel oil inventories were at three-week highs of 20.306mn bl in the week to 7 December, according to Enterprise Singapore data, also just slightly lower than average inventory levels in December 2021 at around 20.375mn bl. Projected higher inflows to the city-state could increase supplies to higher than year-earlier levels, depressing margins.

Market participants also noted that bunker suppliers clearing stocks with the year-end closing of books could contribute to more sales and an injection of supplies into markets, though one said that not all companies’ financial years conclude in December. Traders also said that fears of an impending recession have not hit bunker demand yet but could be factored into crack and spread values from January onward.

Delivered premiums, or the price of VLSFO bunkers over cargo, have been trending upwards so far in December to an average of $36/t compared to $29/t in November as a result of tight prompt supplies, according to Argus data.

Availabilities are now improving, local traders said, although premiums are also set to spike during the festive period for prompt deliveries as is typically the case. But overall demand sentiment is increasingly turning bearish going into the new year.

“I expect demand to be down significantly in the first quarter of next year relative to this year”, a local trader said.

But VLSFO bunker prices in Singapore are currently significantly lower than in competing ports in South Korea and to a lesser extent, China, which could shift some demand to the city-state.

Singapore noted a strong increase in bunker sales in November but is set to see total consumption this year decline by about 2mn t relative to 2021, to about 48mn t.

By Sarah Giam and Sammy Six

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Photo credit and source: Argus Media
Published: 16 December, 2022

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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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