Biofuel

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.

Published

2 years ago

September 18, 2023

Admin

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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Alternative Fuels

SMW 2025: Singapore to launch new standard for electric harbour craft this week

MPA and Enterprise Singapore will launch the Technical Reference 136 to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft, says minister.

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March 24, 2025

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SMW 2025: Singapore to launch new standard for electric harbour craft this week

Minister of State for Transport Murali Pillai on Monday (24 March) said Singapore will launch a new standard for electric harbour crafts this week as part of Maritime and Port Authority of Singapore’s (MPA) efforts in facilitating decarbonisation for domestic harbour craft to achieve the republic’s national target of net-zero emissions by 2050.

“MPA and Enterprise Singapore will launch the new Technical Reference 136 this week to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft,” Murali said during his speech at the opening ceremony of the Singapore Maritime Week 2025 (SMW 2025).

“This will enhance the safety and interoperability of electric harbour craft charging infrastructure.”

This is one of the initiatives MPA is undertaking to prepare for the bunkering of alternative marine fuels and decarbonising Singapore’s domestic maritime sector.

The minister said Singapore is taking steps to support the use of various fuels by the industry and position Singapore as a leading bunkering hub for alternative fuels.

“Over the past two years, we have supported trials of alternative fuels such as ammonia and methanol. These have contributed to the development of new technical references and IMO guidelines to enable the safe and efficient use of these marine fuels,” he said.

“MPA and Enterprise Singapore published the new Technical Reference 129 on Methanol Bunkering earlier this month, and we plan to launch a new standard for ammonia bunkering later this year.”

He added MPA has also recently allowed licensed bunker tankers to carry and deliver biofuels up to B30.

“Pilots for up to B100 are ongoing, and we welcome bunker suppliers to engage in these pilots,” he said.

At the opening ceremony of SMW 2025, Senior Minister Lee Hsien Loong, together with Murali, also launched Singapore’s first Maritime Digital Twin, an advanced simulation model developed by MPA in partnership with the Government Technology Agency of Singapore (GovTech) that integrates real-time data to enhance decision-making and improve management of maritime operations in Singapore waters.

Murali said the digital twin will integrate data from different sources and provide a platform for information sharing. This will enable the development of tools to optimise port efficiency and reliability above, at and below the sea surface.

“For example, the digital twin will enable scenario simulations and dispersion modelling, which can inform standard operating procedures for the safe bunkering of alternative fuels such as methanol and ammonia,” he said.

The minister added MPA will roll out the digital twin to pilot users later this year, before progressive implementation for the wider industry.

“In future, we can extend this to the global maritime ecosystem through our Green and Digital Shipping Corridors with other countries and ports,” he said.

Photo credit: Maritime and Port Authority of SingaporePublished: 24 March, 2025

Alternative Fuels

TFG Marine welcomes first of four ‘L’ series IMO type II bunkering tankers of Consort Bunkers

TFG Marine to operate Consort Bunkers’ bunkering tanker “Pearl Lavender”, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, at Singapore port from April onwards.

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March 24, 2025

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TFG Marine welcomes first of four 'L' series IMO type II bunkering tankers of Consort Bunkers

Global marine fuel supply and procurement firm TFG Marine on Friday (21 March) said it attended the delivery ceremony of bunker tanker Pearl Lavender at China Merchants Jinling shipyard in Nanjing.

The IMO type II chemical bunkering tanker newbuilding is amongst others under long-term time charter from Singapore-based bunker supplier and logistics services provider Consort Bunkers Pte Ltd (Consort).

"This state of the art vessel, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, will be operational at the Port of Singapore from April 2025, further advancing our product offering to our client base in the APAC region," said TFG Marine.

"As the first of four barges in this order, this investment builds on our commitment to low-carbon fuel bunkering infrastructure, reinforcing our vision for a multi-fuel future.

"With methanol, biofuels, ammonia, and other alternative fuels playing an increasingly significant role alongside traditional marine fuels, we continue to support the industry's transition towards cleaner energy solutions."

Manifold Times previously reported that Consort first contracted six ‘L’ series 6,500 dwt IMO Type II bunker tankers with China Merchants Jinling Shipyard (Nanjing) Co., Ltd. in April 2023.

The ‘L’ series of bunker tanker newbuildings gained recognition from the China Association of The National Shipbuilding Industry (CANSI) as amongst the Chinese shipbuilding sector’s top 10 innovative vessels for 2024.

Last year, TFG Marine announced the signing of a long-term time charter agreement with Singapore-based bunker supplier and logistics services provider Consort Bunkers for four newbuild bunker tankers.

Photo credit: TFG Marine
Published: 24 March, 2025

Alternative Fuels

Molgas commences bio-LNG bunkering operations in Port of Zeebrugge

First deliveries of bio-LNG started in January, with multiple operations running smoothly through its logistics network and more deliveries are expected in the coming weeks, says Molgas.

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3 days ago

March 21, 2025

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Molgas commences bio-LNG bunkering operations in Port of Zeebrugge

Madrid-headquartered Molgas Energy Group on Thursday (20 March) said it has started the supply of bio-LNG at the Port of Zeebrugge.

The first deliveries of bio-LNG started in January, with multiple operations running smoothly through its logistics network.

“More deliveries are already scheduled in the coming weeks,” it said in a social media post.

The company said the expansion marked a significant step forward in its commitment to delivering sustainable and low-carbon energy solutions across Europe.

“The Port of Zeebrugge as a key hub for bio-LNG fuelled vessels dealing with FuelEU Maritime, enabling us to serve the marine customers efficiently,” it said.

“Through our Multi Truck to Ship (MTTS) process, we successfully manage deliveries of 200-300 tonnes simultaneous to the vessels operation (SIMOPS), demonstrating our operational excellence and flexibility.”

Photo credit: Molgas Energy
Published: 21 March, 2025