Business

Argus Media: Korean bunkers tighten with cargo, barge constraints

Domestic refiners are especially short of bunker supplies after cutting output or reducing refinery throughput this year because of weaker margins, it said.

Published

6 years ago

November 30, 2020

Admin

Sammy Six of global energy and commodity price reporting agency Argus Media on Friday (27 November) published a summary on the tightening supply of bunker fuel in South Korea as refineries are reducing output due to weaker refining margins:

Bunker supplies in South Korea are tightening with cargo and barge availability constraints.

Domestic refiners Hyundai Oilbank and S-Oil, which have a refining capacity of 650,000 b/d and 669,000 b/d respectively, are especially short of bunker supplies after cutting output or reducing their refinery throughput for much of this year because of weaker margins. This has led to lower output of most refined products, including very-low sulphur fuel oil (VLSFO).

Demand for middle distillates is also surging ahead of winter. This has led to limited supplies of fuel oil and gasoil bunkers in Busan, the country’s largest bunker port.

Only SK Energy, which operates an 840,000 b/d refinery in Ulsan, is still offering, according to various market participants in Singapore and South Korea.

GS Caltex, which has a refinery capacity of 790,000 b/d, produces less VLSFO compared with the other three South Korean refiners and mainly focuses on high-sulphur fuel oil.

“If you take out two out of only four producers of VLSFO, you will be stretched”, said one Singapore trader.

“Like elsewhere, refineries don’t want to hold too much inventory in their tanks now because of the upcoming end of the financial year”, according to a Singapore supplier.

There are a few independent bunker suppliers operating in South Korea, such as GS Global, Olive and Mabong, but they only have limited volumes available.

“The few barrels available are mainly going for contract bunkers, with limited availability of spot barrels as a result”, according to one Singapore buyer.

South Korea also struggles with a lack of barge availability. “South Korea, similar to Japan, is always tight with barges, as each time they need to be cleared by customs after loading from the system and before supplying vessels”, according to another Singapore buyer.

Argus assessed the premium of VLSFO in South Korea over Singapore at $29.90/t yesterday, the highest since 3 September 2020. The premium has averaged $13.40/t so far this year.

Photo credit and source: Argus Media
Published: 30 November, 2020

Biofuel

Petrochina International blends over 30,000 mt of marine biofuel since March

Company has been developing marine biofuel blending operations at China (Zhejiang) Pilot Free Trade Zone, leveraging storage and logistics facilities at its Aoshan base.

Published

1 day ago

September 21, 2026

Admin

Zhoushan completes China’s first batch of marine biofuel blending under pilot programme

Petrochina International Co Ltd recently said it has blended more than 30,000 metric tonnes (mt) mt of biofuel since completing the country’s first biofuel marine fuel blending operation on 13 March.

The company said the milestone demonstrates its ability to conduct continuous and large-scale biofuel marine fuel blending operations.

The company has been developing marine biofuel blending operations at China (Zhejiang) Pilot Free Trade Zone, leveraging storage and logistics facilities at its Aoshan base.

Its latest product, B24 marine fuel containing 24% biofuel component, meets relevant International Maritime Organization (IMO) requirements and marine fuel standards, according to the company. It said the product can be supplied for bunkering vessels operating on international routes.

It has used its global trading network to secure feedstock supplies and support cost control and supply security for the blending operations, it added.

The company said the large-scale blending of its marine biofuel products marks a development in China’s marine biofuel blending market.

It plans to work with upstream and downstream businesses within its group to support the development of Zhoushan Port as a major bonded marine fuel bunkering hub and contribute to its parent group’s transition towards lower-carbon energy.

Manifold Times previously reported China (Zhejiang) Pilot Free Trade Zone launching the first pilot programme for marine biofuel blending in China with the completion of the first batch of B24-HSFO.

The launch was marked with the blending of 2,000 mt of biodiesel and 6,300 mt of high sulphur fuel oil (HSFO) in storage tank F-02 of Sinochem-Xingzhong Oil Staging (Zhoushan), producing 8,300 mt of B24-HSFO.

Manifold Times also reported the first cross-regional bonded bunkering operation of blended biofuel in East China was successfully completed at the Meishan Port Area of Ningbo-Zhoushan Port.

The B24-HSFO used in the bunkering operation was supplied by the Aoshan Petroleum Base in Zhoushan from the first pilot programme for marine biofuel blending in China.

Photo credit: Sinochem-Xingzhong Oil Staging (Zhoushan)
Published: 21 September, 2026

Winding up

Singapore: Final general meetings scheduled for Dromond Shipping, related firms

A member is entitled to attend the meetings and should notify the liquidators’ team office via email no later than 48 hours prior to the meeting.

Published

1 day ago

September 21, 2026

Admin

The final general meetings of Dromond Shipping Pte Ltd and related companies have been scheduled to take place on 19 October, according to the company’s liquidator on a notice posted on Friday (18 September) on the Government Gazette.

The other companies are Tidewater Emergency Response Services Pte Ltd, Tidewater Production Solutions Pte Ltd and Tidewater Salvage Pte Ltd.

The final general meetings of the members of the companies will be held via electronic means on 19 October 2026 at 2.00 pm, 2.30 pm, 3.00 pm and 3.30 pm (Singapore time), respectively.

The meetings are being held for the purpose of having accounts laid before the members showing the manner in which the winding up of the respective companies has been conducted and how the property of the respective companies has been disposed of and to hear any explanation that may be given by the liquidators.

The details of the liquidator is as follows:

Tan Kim Han
Joint and Several Liquidators
137 Amoy Street, #02-03, Far East Square
Singapore 049965

Note: A member is entitled to attend the above meeting and should notify the Liquidators’ team office via email to [email protected] or [email protected] no later than 48 hours prior to the meeting.

Photo credit: steve pb from Pixabay
Published: 21 September, 2026

Ammonia

NYK wraps up first STS ammonia bunkering operation in Japan

Ammonia fuel was transferred from the ammonia carrier “Shoei Maru” via the STS method to an ammonia-fuelled medium gas carrier, scheduled for delivery in November 2026.

Published

1 day ago

September 21, 2026

Admin

NYK wraps up first STS ammonia bunkering operation in Japan

NYK Line, on Thursday (17 September) with Japan Marine United Corporation, Nihon Shipyard Co Ltd, Mitsubishi Gas Chemical Company, and Kokuka Sangyo Co Ltd, has completed the world’s first ship-to-ship (STS) ammonia bunkering operation to an ammonia-fuelled vessel.

At a quay within Japan Marine United Corporation’s Ariake Shipyard, ammonia fuel was transferred from the ammonia carrier Shoei Maru via the STS method to an ammonia-fuelled medium gas carrier (AFMGC) scheduled for delivery in November 2026.

The operation was conducted in preparation for sea trials of the AFMGC using fuel ammonia.

“This achievement represents an important initiative that has put into practice an operation essential for the future practical deployment of ammonia-fuelled vessels,” the company said.

The bunkering operation was conducted following extensive discussions among the companies involved. Safe operating procedures and work processes were established prior to the operation, enabling the transfer to be completed safely. Through this initiative, we have accumulated practical insights regarding safe fuel supply operations.

This operation serves as a pioneering example of the fuel-supply framework that will be required for the widespread adoption of ammonia-fuelled vessels.

The AFMGC is currently in the final stage of construction and is scheduled for delivery in November 2026.

“The successful completion of this operation marks a significant milestone toward the broader commercial use of fuel ammonia and the practical deployment of ammonia-fuelled vessels. It also represents an important step forward in establishing an ammonia supply chain,” the company added.

Photo credit: NYK
Published: 21 September, 2026