Connect with us

Business

Argus Media: China’s Zhoushan bunker sales up 15pc in 2020

Bonded bunker sales at Zhoushan increased by 15pc from a year earlier, thanks to rising imports of iron ore and other bulk commodities as well as increased efficiencies.

Admin

Published

on

5e16c2fc7aa8e 1578550012 1

Global energy and commodity price reporting agency Argus Media on Friday (8 January) published a summary of market mechanisms behind the increase in bunker sales at China’s Zhoushan bunkering port throughout 2020:

Bonded bunker sales at China’s largest bunkering port of Zhoushan totalled 4.73mn t in 2020, up by 620,000t or around 15pc from a year earlier, thanks to rising imports of iron ore and other bulk commodities as well as increased efficiencies, according to data from major bunker suppliers at the port.

December sales at Zhoushan in the eastern province of Zhejiang rose by 120,000t or 26pc from a month earlier to 583,000t. Demand was driven by a rise in sales of very low sulphur fuel oil (VLSFO), as bunker suppliers cleared storage space for new supplies from domestic refineries. The Chinese government awarded a 5mn t VLSFO export quota for 2021 to refiners Sinopec, CNPC, CNOOC, Sinochem and Zhejiang Petroleum and Chemical (ZPC).

China’s total iron ore imports rose by 6.5pc to 1.13bn t in 2020. Zhoushan is one of the three biggest iron ore arrival ports in China, together with Caofeidian and Jingtang. Bulk carriers and other vessels tend to bunker in either Singapore or Zhoushan, depending on prices, timing, availability and other factors.

The number of bunker spot trades reported to Argus at Zhoushan also rose. Spot volumes of VLSFO, high-sulphur fuel oil (HSFO) and marine gasoil (MGO) trades reached a combined 883,000t in 2020, equivalent to nearly 3,700t per trading day, more than 2½ times the daily average of 1,400t in 2019. Argus started using a volume-weighted average (VWA) methodology to assess the delivered-on-board bunker market in June 2019.

Zhoushan’s bunker volumes were also boosted by an increase in processing efficiency, after upgrades to its electronic platform for the outer port limit (OPL), where most international bunkering takes place.

The International Maritime Organisation (IMO) 2020 rules, which cap marine fuel sulphur content at 0.5pc, have also helped China expand its bunker volumes. The government awarded 10mn t of VLSFO export quotas for 2020, cutting bunker costs and reducing its dependence on imports. The availability of domestic VLSFO for the bunker sector also helped narrow the premium to the Singapore market — the differential between Zhoushan and Singapore VLSFO bunker spot prices — from an average of $26/t in 2019 to just $7/t in 2020.


Photo credit and source:
Argus Media
Published: 11 January, 2021

Continue Reading

Alternative Fuels

Singapore-based Golden Island, Qingdao Port team up on alternative bunker fuels

Agreement covers green methanol, green ammonia and bio-LNG, with cooperation spanning fuel production and transportation through to storage, sales and bunkering.

Admin

Published

on

By

Golden Island, Qingdao Port team up on green methanol, ammonia and bio-LNG

Singapore bunker supplier Golden Island Pte Ltd on Monday (21 September) said it has signed a strategic framework agreement with Qingdao Port International Co Ltd to collaborate on the supply of alternative marine fuels.

The agreement covers green methanol, green ammonia and bio-LNG, with cooperation spanning fuel production and transportation through to storage, sales and bunkering.

“By combining our MPA-licensed bunkering capabilities with Qingdao Port’s incredible logistics and strategic hub position, we are building something truly robust for the global shipping industry’s low-carbon future,” the company said in a statement. 

Qingdao Port International, which operates five major port areas in China, will bring its logistics network, storage facilities and customs clearance capabilities to the partnership.

Golden Island is licensed by the Maritime and Port Authority of Singapore (MPA) to conduct methanol bunkering and is ISCC EU-certified.

The companies are also engaging with container liners, bulk carriers, oil tankers and cruise ships regarding the adoption of alternative marine fuels.

 

Photo credit: Golden Island Pte Ltd
Published: 22 September, 2026

Continue Reading

Ammonia

HD HHI and HD KSOE secure ABS AiP for ammonia bunkering vessel design

ABS awarded approval in principle for the basic design of a 22,000 CBM bunkering vessel capable of supplying ammonia as marine fuel.

Admin

Published

on

By

HD HHI and HD KSOE secure ABS AiP for ammonia bunkering vessel

Classification society ABS on Monday (21 September) said it has awarded HD Hyundai Heavy Industries (HD HHI) and HD Korea Shipbuilding & Offshore Engineering (HD KSOE) approval in principle (AIP) for the basic design of a 22,000 CBM bunkering vessel capable of supplying ammonia as marine fuel.

The approval is the result of a joint development project initiated earlier this year. ABS reviewed the design’s general arrangement, machinery arrangement, ammonia cargo handling system and fuel supply system against applicable class and international requirements.

Gareth Burton, ABS Senior Vice President, Global Engineering, said: “Bunkering infrastructure is a critical step for any marine fuel to scale, and it has to be implemented with safety designed in from the start.

“This AIP reflects the industry’s need for fuel flexibility while advancing the safe bunkering of ammonia. ABS is proud to support HD HHI and HD KSOE as they develop technologies that expand fuel flexibility.”

Ryu Hong-Ryeul, Chief Technical Officer (CTO) of HD HHI, said: “As ammonia rapidly emerges as a viable low-carbon alternative fuel, demand for ammonia bunkering vessels is expected to grow in line with the increasing adoption of ammonia-fuelled ships. 

“This AIP marks a significant milestone toward the commercialisation of ammonia bunkering vessels.”

ABS and the HD Hyundai group have worked together across a range of technologies supporting ammonia as a marine fuel. Recent projects have included AIP for HD KSOE’s ammonia cargo handling and bunkering system and initial review for HD HHI’s machinery arrangement in engine room.

 

Photo credit: ABS
Published: 22 September, 2026

Continue Reading

Alternative Fuels

J-ENG completes land-based testing of hydrogen-fuelled marine engine

Engine will be installed on a 17,500 DWT multipurpose vessel to be built by Onomichi Dockyard for MOL and MOL Drybulk, with onboard demonstration testing scheduled to begin in April 2028.

Admin

Published

on

By

12 2

Japan Engine Corporation (J-ENG) on Friday (18 September) said it has completed land-based testing of the world’s first hydrogen-fuelled engine for large commercial vessels, the 6UEC35LSGH.

During factory testing, the engine achieved a hydrogen co-firing rate of at least 95%, reducing GHG emissions by more than 95% compared with conventional heavy-fuel-oil engines.

By adopting a high-pressure direct injection system, which injects fuel directly into the cylinder at high pressure, J-ENG said the engine achieves stable hydrogen combustion. 

Safety measures were also implemented, including a robust structure to prevent hydrogen leakage and double-walled piping for hydrogen supply lines. 

“Approval testing was conducted in the presence of ClassNK and was completed successfully,” the company said. 

The engine will be installed on a 17,500 DWT multipurpose vessel to be built by Onomichi Dockyard for Mitsui O.S.K. Lines and MOL Drybulk.

Hydrogen fuel will be supplied to the engine through a marine hydrogen fuel system, consisting of marine hydrogen fuel tanks and a fuel supply system, developed and manufactured by Kawasaki Heavy Industries.

In addition, Nippon Kaiji Kyokai (ClassNK) will conduct safety assessments throughout each stage of the engine’s development and the vessel’s design, construction and operation.

The vessel will then undergo sea trials before onboard demonstration testing begins in April 2028. 

Kawasaki will also develop and manufacture bunkering equipment for supplying liquefied hydrogen to vessels. 

“The demonstration will further evaluate the engine’s durability and performance under actual operating conditions,” J-ENG added.

 

Photo credit: J-ENG
Published: 22 September, 2026

Continue Reading

Trending