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Argus Media: B30-MGO blend premium to MGO narrows to seven-month low

Premium of marine biodiesel with 30pc advanced Fame and 70pc marine gasoil (MGO) in ARA on a dob basis to conventional MGO narrowed to $4.92/t on 13 September, its lowest since February.

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The premium of marine biodiesel with 30pc advanced fatty acid methyl ester (Fame) and 70pc marine gasoil (MGO) in ARA on a dob basis to conventional MGO narrowed to $4.92/t on 13 September, its lowest since February.

14 September 2023

Marine biodiesel blends with MGO as the conventional fuel component may gain traction ahead of the EU emissions trading system (ETS) scheme which begins next year. Shipowners looking to minimise their ETS costs may turn to the marine biodiesel blend. Argus calculations showed that a B30 blend comprising Fame and MGO was assessed at a $79.95/t discount to conventional MGO when CO2 ETS costs are factored in, the lowest recorded since 1 February.

Some participants have told Argus that it may become more cost-efficient to utilise marine biodiesel blends with MGO for vessels without scrubbers in Emission Control Areas (ECA). ECA zones limit the sulphur content of fuels vessels can burn to 0.1pc, with the Mediterranean being the latest addition to ECA zones globally. Market participants reported sufficient supply of the B30 MGO blend in ARA. But some noted tighter prompt availability of the blended product, reporting a required notice period of 7-10 days for delivery by barge.

Conventional dob MGO prices in ARA averaged an outright price of $932.28/t so far this month, a $47/t increase on August’s average. At this level, MGO was at its highest monthly average since November 2022. MGO values firmed in recent sessions on the back of tight gasoil supply in the region. Tighter gasoil supply may incentivise refiners to redirect distillate blendstocks away from the MGO pool towards diesel products that generally command a higher premium. Market participants have also reported tightening availability of MGO in recent sessions because of lower supplies of blending components at the hub.

By Hussein Al-Khalisy

Photo credit and source: Argus Media
Published: 18 September, 2023

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Biofuel

Singapore: Sea Oil Petroleum receives ISCC EU certification, mulls increasing product portfolio

‘Sea Oil seeks to do its part for climate change by giving options to support to our end users,’ says Steve Goh, Head of Trading.

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Singapore-based bunker trading firm Sea Oil Petroleum Pte Ltd (Sea Oil), a wholly owned subsidiary of Thailand-listed Sea Oil Public Company Limited, has received International Sustainability and Carbon Certification (ISCC) EU certification, learned Manifold Times.

ISCC EU is a certification scheme that verifies compliance with the sustainability criteria for biofuels and bioliquids within the European Union. It ensures that biomass and biofuels used in the EU meet specific environmental and social requirements, including greenhouse gas emission reductions and traceability throughout the supply chain.

The milestone, which took place on 22 May after two months of processing, was reflective of the company’s aim to expand its bunker fuel product offerings to clients seeking sustainable solutions, Steve Goh, Head of Trading at Sea Oil, told the bunkering publication.

“It is important for the bunkering sector to remain relevant, adapt, and play an active role in supporting shipping’s decarbonisation journey,” said Mr Goh while adding that, “this is in line with our group’s green initiative and sustainability drive.”

“As such, Sea Oil seeks to do its part for climate change by giving options to support to our end users.

“By achieving ISCC EU certification, Sea Oil will be in a better position to provide green marine fuel solutions to customers embarking on this journey towards net zero.”

Manifold Times in May reported Sea Oil welcoming a Senior Bunker Trader to its team.

The company started 2025 with an expanded team on both international and local fronts.

Sea Oil Petroleum may be reached at: [email protected]

Related: Singapore: Sea Oil Petroleum boosts Asia and international presence with new Senior Bunker Trader
Related: Singapore: Sea Oil Petroleum enters 2025 with international representatives, expanded team

 

Photo credit: Sea Oil Petroleum
Published: 10 July 2025

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Port & Regulatory

India: DGS seeking for comments for proposed national biofuel bunkering guidelines

Guidelines to align Indian practices with international conventions, contributing to a modern, resilient, and environmentally conscious maritime ecosystem.

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The Directorate General of Shipping (DGS), Mumbai on 3 July issued a notice inviting comments from stakeholders on the draft circular on Biofuel bunkering Guidelines.

“Increasing global emphasis on decarbonising the maritime sector has accelerated the adoption of biofuels as a sustainable alternative to conventional marine fuels,” it explained.

“Biofuels, particularly drop-in types such as Fatty Acid Methyl Esters (FAME), Fatty Acid Ethyl Esters (FAEE), Straight Vegetable Oils (SVO), Hydrotreated Vegetable Oils (HVO), Bio-FT-diesel (bio-Fischer-Tropsch diesel) and Biomass-to-Liquid (BTL) fuels, offer considerable benefits by reducing lifecycle greenhouse gas emissions without necessitating major modifications to existing shipboard fuel systems.

“However, the absence of standardised national guidelines for biofuel bunkering operations in India introduces potential challenges related to safety, fuel quality assurance, environmental protection, and operational consistency.”

The proposed circular aims to bridge these gaps by establishing a clear regulatory framework for permitting, operational protocols, safety management, documentation, environmental safeguards, training requirements, and enforcement mechanisms specific to biofuel bunkering.

By implementing these guidelines, the Directorate seeks to ensure safe and reliable bunkering practices, promote the use of cleaner fuels in alignment with India’s environmental commitments, and support the growth of sustainable maritime infrastructure.

The guidelines are crucial for facilitating the responsible uptake of biofuels in the shipping sector, aligning Indian practices with international conventions, contributing to a modern, resilient, and environmentally conscious maritime ecosystem.

The full draft circular on biofuel bunkering guidelines can be obtained from DGS’ website here. Comments and inputs should be sent to: [email protected] and CC to: [email protected] by 18/07/2025.

 

Photo credit: Directorate General of Shipping
Published: 10 July 2025

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Newbuilding

Singapore: Pinnacle Marine’s first B100 fuelled utility boat starts 1,000-hour research trial

Newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.

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The 50th vessel constructed by local boat builder Pinnacle Marine (Singapore) Pte Ltd, namely President 100, is starting 1,000 hours of real-time research trials in collaboration with several parties from Wednesday (9 July) onwards, it says.

Powered by B100 biodiesel, the newbuilding operated by Prestige Ocean Pte Ltd will capture data on bunker fuel emissions, marine fuel behaviour, and performance.

It will be participating in trials with Maritime Energy & Sustainable Development Centre of Excellence (MESD), Weichai Singapore, China Classification Society, Pacific International Lines (PTE) Ltd, Abo Shoten, Ltd. / 株式会社安保商店 , Abo Singapore, Wilmar International, Gulf Marine, Amspec Testing & Services, and AYK Engineering and Consulting.

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The President 100, Pinnacle Marine’s first full biodiesel utility boat, was launched on Tuesday in the presence of over 100 guests.

“Our latest vessel, President 100, merges legacy and future. Named after our first aluminium boat (“President”) and inspired by B100 biodiesel, it leads the charge for our next 50 vessels — many of which will embrace green technology,” stated Pinnacle Marine in a LinkedIn post.

“The launch was amazing, with strong turnout from across the maritime sector — authorities, shipowners, operators, agencies, chandlers, researchers, offshore engineers, and petrochemical suppliers.”

It added: “We’re excited to see how it paves the way for wider adoption of B100 biodiesel — a cleaner, sustainable path for Singapore’s harbour craft sector.”

 

Photo credit: Pinnacle Marine (Singapore) Pte Ltd
Published: 9 July 2025

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