Business

Argus Media: IMO 2020 marine fuel switch intensifies ahead of deadline

0.5% sulphur marine fuel oil grade could account for 65% of all marine fuel oil bought globally this month.

Published

7 years ago

November 13, 2019

Admin

Global energy and commodity price reporting agency Argus Media on Tuesday (12 November) provided a marine fuels industry update:

Demand for 0.5pc sulphur marine fuel oil is ramping up in most of the world's largest ports, and the grade could account for 65pc of all marine fuel oil bought globally this month.

In Singapore, the world's largest bunkering hub, more than 43pc of delivered marine fuel deals received by Argus so far in November have been for 0.5pc fuel oil, and 0.1pc sulphur marine gasoil (MGO) accounted for 21pc. Demand for these two grades has been rising because they will be compliant with the International Maritime Organisation (IMO) 0.5pc sulphur cap, which is effective from 1 January. The remaining Singapore deals were for high-sulphur marine fuel oil (HSFO), which will not be compliant with the IMO rule.

In China's bunkering fulcrum of Zhoushan, 0.5pc fuel oil has made up 37pc of deals received by Argus in November; HSFO and MGO made up 31pc and 32pc, respectively.

Sales of 0.5pc fuel oil have increased sharply in the Middle East's main bunkering location of Fujairah, UAE, where it is available from seven suppliers. Shipowners have been topping up fuel tanks with 200-500t of HSFO rather than filling them, to avoid being left with non-compliant fuel next year.

Suppliers in the Amsterdam-Rotterdam-Antwerp (ARA) hub in northwest Europe have received an increasing number of enquiries for 0.5pc fuel oil this month. There has not been a drop in the number of enquiries for HSFO, the typical volumes requested have fallen from 2,000-3,000t to around 400t. HSFO will still be used by ships fitted with exhaust cleaning systems known as scrubbers.

Spanish integrated Cepsa's launch of 0.5pc fuel oil supply in Gibraltar and Algeciras last week increased availability in the Mediterranean market. Cepsa said the ratio of HSFO to 0.5pc fuel oil is 80:20, and it expects 0.5pc to become the main fuel this month. It started offering the product in Barcelona this week. Two suppliers in Las Palmas said the HSFO-0.5pc demand split is 60:40. One said this will flip to 30:70 or 20:80 by the end of the month.

Uptake of 0.5pc has been slower in the eastern Mediterranean. A supplier in Malta gauged it to 20-25pc of total demand and forecast it to reach 70pc by mid-December. Suppliers in Piraeus, Greece, started to receive requests for 0.5pc fuel oil last week. Motor Oil Hellas (MOH) has adapted its 175,000 b/d Corinth refinery to supply more compliant fuel. Hellenic Petroleum, the other refiner supplying the port, will start offering the grade from late November. In Istanbul, 0.5pc fuel oil has accounted for around 20-25pc of sales in November, according to two suppliers. They expect it to reach 70pc by mid-December.

Sales of 0.5pc fuel oil increased in Russia's far east in October and November. Four suppliers have been selling the grade on a limited basis. Shipowners' typical requested amount of HSFO has fallen to 200-300t. Suppliers in Baltic Sea ports, such as St Petersburg, have received a small number of 0.5pc fuel oil requests, but expect an uptick later this month.

Demand for 0.5pc fuel oil has lagged in North America, partly because of high prices. In South America, Brazil has made the switch to 0.5pc and MGO; state-controlled Petrobras stopped offering HSFO on 1 October. It said it produces enough 0.5pc fuel oil to meet domestic demand and exports the surplus. Argentinian suppliers have stopped offering HSFO in favour of 0.5pc fuel oil, but the opposite is the case in Peru and Ecuador where 0.5pc fuel oil is not yet available.

Globally, some shipowners have started buying 0.5pc fuel oil or MGO now so they have compliant fuel in at least one of a ships' tanks by mid-December, giving enough time to expel high-sulphur residues before the turn of the year. One shipowner with global reach said it bought 75pc HSFO and 25pc 0.5pc fuel oil in October. It expects 0.5pc to account for 65pc in November, 90pc in December and 100pc by January.

Source: Argus Media / Erik Hoffman and Enes Tunagur
Published: 14 November, 2019

Bunker Fuel

Huanghua Port expands bunkering capabilities with dedicated fuel oil terminal

Previously, bunkering vessels serving Huanghua Port were required to replenish marine fuel oil at other ports, including Tianjin, before returning to carry out bunkering operations, often resulting in delays.

Published

10 hours ago

June 16, 2026

Admin

Huanghua Port has strengthened its marine fuel supply infrastructure with the commissioning of its first dedicated, all-weather bunker terminal, a move aimed at improving vessel turnaround times and supporting growing shipping activity at the port, according to China-based news outlets on Thursday (11 June).

On 9 June, bunker tanker Heng Feng You 165 completed fuel loading operations at the terminal in the Huanghua Port Comprehensive Port Area before proceeding to an anchorage to provide bunkering services to waiting cargo vessels.

According to local authorities, the new facility addresses a longstanding bottleneck in the port’s marine fuel supply chain.

Yao Meichen, Deputy Director of the Cangzhou Municipal Ocean and Port Administration Bureau said bunkering vessels serving Huanghua Port were required to replenish marine fuel oil at other ports previously, including Tianjin, before returning to carry out bunkering operations, often resulting in delays for vessels awaiting bunkers.

As cargo throughput and vessel traffic have increased in recent years, the absence of a specialised bunker terminal became a constraint on port efficiency. To address the issue, local authorities invested RMB 266 million (USD 39 million) to develop Huanghua Port’s first dedicated marine fuel oil terminal and actively pursued regulatory approvals for both a domestic transfer export bonded warehouse and a liquid bonded storage facility.

The terminal, which entered service at the end of last year, features a dedicated 5,000-dwt berth and storage tanks with a combined capacity of 66,000 cubic metres. It has a designed annual throughput capacity of 820,000 tonnes and primarily handles marine gasoil as well as 120 CST and 180 CST fuel oils.

Authorities said the facility has been operating smoothly since its launch and is capable of ensuring a stable supply of bunker fuel for vessels calling at the port.

The bunkering infrastructure will be further enhanced following approval from Shijiazhuang Customs for the establishment of both the domestic transfer export bonded warehouse and liquid bonded storage facilities. The additions are expected to strengthen Huanghua Port’s ability to provide bunkering services to international-going vessels.

“The commissioning of the marine fuel oil terminal has completely changed the previous situation of off-site fuel supply and ships queuing for fuel, achieving benefits for both bunkering vessels and cargo ships,” said Dong Xianke, General Manager of Cangzhou Bohai New Area Gangkun Marine Fuel Co., Ltd., the terminal’s operator.

Photo credit: David Yu from Pixabay
Published: 16 June, 2026

Methanol

China: Chimbusco takes delivery of new methanol bunkering vessel in Zhoushan

Company says commissioning of “Zhong Ran LV Neng 85” will further enhance its service capabilities in green methanol bunkering in major domestic ports.

Published

10 hours ago

June 16, 2026

Admin

Chimbusco takes delivery of new methanol bunkering vessel in Zhoushan

China Marine Bunker (PetroChina) (Chimbusco) recently took delivery of its first bunkering vessel in China to deliver methanol to dual-fuel ships.

The 8,500-dwt duplex stainless steel chemical tanker Zhong Ran LV Neng 85 was successfully delivered in Zhoushan.

The company said the commissioning of this new ship will further enhance Chimbusco’s service capabilities in green methanol bunkering in major domestic ports and expand its national marine new energy service and support network

During the delivery period, Chimbusco said it focused on safe operations and conducted special training for all crew members of the vessel.

The training covered methanol bunkering operation specifications, prevention of collisions between commercial and fishing vessels, daily vessel reporting, and voyage report filling standards.

Manifold Times previously reported the launching of the bunkering vessel at Taizhou Fangzhen Shipbuilding Wharf in Zhejiang.

The floating out of the ship comes after Chimbusco has obtained methanol bunkering licences for Shanghai Port and Ningbo Port.

Photo credit: China Marine Bunker (PetroChina) (Chimbusco)
Published: 16 June, 2026

LNG Bunkering

CCEC and CMA CGM form joint venture to build and operate LNG bunkering vessel

Each party will hold a 50% ownership stake in the joint venture, which has been established for the purpose of constructing, chartering, and operating one 20,000 cbm dual-fuel LNG bunkering vessel.

Published

11 hours ago

June 16, 2026

Admin

Capital Clean Energy Carriers Corp. (CCEC), an international owner of ocean-going gas vessels, on Friday (12 June) announced the formation of a joint venture company with CMA CGM.

Each party will hold a 50% ownership stake in the joint venture, which has been established for the purpose of constructing, chartering, and operating one 20,000 cbm dual-fuel LNG bunkering vessel.

The joint venture marks CCEC’s entry into the LNG bunkering segment, the company’s first vessel dedicated to marine fuel supply.

In connection with this transaction, the joint venture has entered into a shipbuilding contract with Nantong CIMC Sinopacific Offshore & Engineering (CIMC SOE) for the construction of the vessel at a contract price of USD 82.8 million, with delivery expected in the third quarter of 2028.

Incorporating the latest technologies, the vessel is designed to enable safe and reliable LNG transfers across a wide range of operating conditions. Advanced emissions reduction systems, combined with highly efficient dual-fuel power generation, are designed to help the vessel meet applicable environmental standards of the global shipping industry.

In addition, the joint venture is expected to enter into a 12-year time charter with a joint venture company formed between CMA CGM and TotalEnergies, commencing upon delivery of the vessel from the shipyard.

Jerry Kalogiratos, CEO of Capital Clean Energy Carriers, commented: “This joint venture marks CCEC’s entry into LNG bunkering — a natural extension of our gas platform from carriage into marine fuel supply.

“Working alongside counterparties of the calibre of CMA CGM and TotalEnergies, we can help build the infrastructure that allows LNG to deliver a cleaner emissions profile, alongside security and diversity of supply, while opening a new, long-term contracted revenue stream for the Company through the Joint Venture.”

Christine Cabau, Executive Vice President Operations and Assets of CMA CGM, said: “Together with Capital Clean Energy Carriers and TotalEnergies, we are committed to building a reliable and high-performance LNG bunkering supply chain, which is essential to ensuring the availability and reliability of fuels such as LNG that represent the first step in the decarbonization of our industry.”

Photo credit: Scott Graham
Published: 16 June, 2026