Bunker Fuel

Argus Media: Shipping sector seeks flexibility, voyage optimisation

Delegates at last week’s Appec conference in Singapore said a multi-fuel approach is needed to tackle the complexities of energy transition in the shipping sector.

Published

7 months ago

September 17, 2024

Admin

A multi-fuel approach is needed to tackle the complexities of energy transition in the shipping sector, said delegates at last week's Appec conference in Singapore.

16 September 2024

With energy transition in the early stages, delegates agreed that conventional fuels will be used in tandem with a mix of low to zero carbon fuels in a flexible and cost-efficient way. "I think we're moving from a world where we have only one homogeneous choice to a world of heterogeneity when it comes to alternative fuels," said the head of maritime safety, sustainability and technical at Australian resources firm BHP Ashima Taneja. Chartering dual-fuelled vessels is "about creating that flexibility," Taneja added.

"Energy efficient technologies will definitely be a very strong component of hitting the 2030 targets," said the chief operating officer of Singapore bunker supplier and marine logistics firm Equatorial Marine Fuel Choong Sheen Mao, adding that "marine fuels will play a very significant role". "Running ships on a mix of alternative fuels and fossil fuel will provide "a bit more longevity to these conventional fuels" said Choong.

Maritime participants want to ensure that safety standards and infrastructure for alternative fuel bunkering are ready, with seafarers well trained to handle various fuels. Shipping firms need to have the "confidence" that multi-fuel bunkering procedures will remain largely similar regardless of port, said the director of decarbonisation and net zero pathways at the Maritime and Port Authority of Singapore New Wei Siang. Port agreements, like digitally-enabled green shipping corridors, serve as a vital collaboration that support the maritime industry in testing solutions and syncing knowledge.

"Emission reduction is not just changing fuels. It is also how to use your ship more efficiently," said the head of sustainability, decarbonisation and marine fuels at Singapore container shipping firm Pacific International Lines Chia Yujin. More fuel could be saved through green shipping corridors if ships "have clear visibility over port congestion situation at the end of the voyage, and… can adjust our speed to match our arrival," he added.

"A lot can be achieved by using alternative fuels… when price support is there but also focusing on other initiatives such as voyage optimisation, just running your feet more efficiently. That can help you achieve those targets involved," according to Taneja.

"We almost cannot use a one size fits all approach," said the managing director of Nigerian trading and logistics firms Cabipa Chibuzor DU Chiadikobi, noting that "emerging" economies remain a step behind in the energy transition journey. "I'm quite sure that shipowners want to have that guarantee that even if we make the transition to alternative fuel, certain destinations will be able to have the port infrastructure and, most importantly, the alternative fuel for them to be able to bunker."

"At the end of the day, shipping is still a business," said Choong. "We have to be competitive and you only can be competitive when there is a level playing field."

By Cassia Teo

Photo credit and source: Argus Media
Published: 17 September, 2024

Up Next

China Changjiang Bunker conducts on-site research on methanol bunkering

Don't Miss

Norden and BHP enter bio bunker fuel deal for voyage from Australia to Rotterdam

Bunker Fuel

TMD Energy becomes first Malaysian bunker supplier to list on NYSE American

Straits Energy Resources’ subsidiary announces that its shares have been listed on 21 April, becoming the first Malaysian marine bunker supplier to achieve a listing on a major US exchange.

Published

19 hours ago

April 22, 2025

Admin

TMD Energy Limited (TMD Energy), a Malaysia and Singapore-based provider of integrated marine bunkering services and a Straits Energy Resources Berhad (SER) subsidiary, on Tuesday (22 April) announced that its shares have been listed on 21 April and began trading on the NYSE American under the ticker symbol “TMDE”.

Dato’ Sri Ron Ho Kam Choy, Chairman, Executive Director, and Chief Executive Officer of TMD Energy, said: “We are proud to become the first Malaysian marine bunker supplier to achieve a listing on a major US exchange, reinforcing our position as one of the industry’s leading players.

“Leveraging Malaysia’s strategic location along major shipping routes including the Straits of Malacca and the South China Sea, as well as resilient demand for bunker fuel in the region and globally, we are well positioned for further expansion. On top of that, TMD Energy is also the first Malaysian company to list on the NYSE American.

“Our listing in NYSE American will help us to enhance our international profile, expand our reach, capture new markets, and deliver sustainable, higher returns to our shareholders.”

TMD Energy’s share price opened at USD 3.26 on Monday, rising to an all-time high of USD 4.12 on its market debut before closing at USD 3.63, which was 11.69% higher than its initial public offering (IPO) price of USD 3.25 per share. This gave the company a market capitalisation of USD 83.85 million (equivalent to approximately MYR 367.2 million) on its first day as a publicly listed company.

TMD Energy’s IPO was priced at USD 3.25 per share, and total gross proceeds (excluding the over-allotments) before deducting underwriting discounts and other related expenses were approximately USD 10.08 million (equivalent to approximately MYR 44.13 million).

Proceeds from the IPO will be used for the purchase of cargo oil; defraying listing expenses; and working capital and other general corporate purposes.

The company has granted the underwriter a 45-day option to purchase up to an aggregate of 465,000 additional shares to cover over-allotments at the IPO price, If the underwriter exercises their option to purchase the additional shares in full, the total gross proceeds before deducting underwriting discounts and other related expenses from the offering are expected to be approximately USD 11.59 million.

Dato’ David Yoong Leong Yan, Executive Director of TMD Energy, said: “Our debut on the NYSE American is a key milestone in our journey of growth. While continuing to drive strong organic growth, as part of our strategic growth initiatives, we remain focused on identifying and pursuing strategic mergers and acquisition opportunities that align with our long- term vision and strengthen our regional presence.”

Manifold Times previously reported SER announcing its proposal to list its oil bunkering segment via the listing and quotation of the ordinary shares in its 76.68%-owned subsidiary, TMD Energy, on the New York Stock Exchange American (NYSE American).

TMD Energy and its subsidiaries (TMD Energy Group) are mainly involved in marine fuel bunkering services specialising in the supply and marketing of marine gas oil and marine fuel oil to various types of ships and vessels at sea. In addition, the company provides vessel chartering services and vessel management services.

TMD Energy Group operates in 19 ports across Malaysia, with a fleet of 15 well-maintained bunkering vessels with capacities ranging from 540 dwt to 7,820 dwt, of which nine are double-bottom and double-hull vessels with an average cargo-carrying capacity of 4,200 dwt each. Its customers include ship owners and operators, shipping lines, logistics and freight companies, as well as oil and gas traders or brokers.

TMD Energy’s growth strategy includes expanding its market presence across Southeast Asia, growing its bunkering fleet, providing ship management services to external customers and diversifying its fuel offering to include eco-friendly alternative fuels such as biodiesel.

TMD Energy is part of SER, a Fortune Southeast Asia 500 company listed on the ACE Market of Bursa Malaysia Securities.

Photo credit: TMD Energy
Published: 22 April, 2025

LNG Bunkering

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

After departing from Saijo Shipyard, LNG fuel will be supplied directly to “Verde Heraldo” through shore-to-ship bunkering at Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

Published

19 hours ago

April 22, 2025

Admin

New MOL vessel to be supplied LNG bunker fuel in Japan before voyage to Australia

Mitsui OSK Lines (MOL) on Friday (18 April) said the naming and delivery ceremony for the LNG-fuelled Capesize bulker, which MOL ordered for JFE Steel Corporation, was held at the Saijo Shipyard of Imabari Shipbuilding.

The vessel was named the Verde Heraldo, which means “Green Pioneer” in Spanish, by JFE Steel President and CEO Masayuki Hirose. MOL executives including President & CEO Hashimoto were also on hand for the ceremony.

After departing from Saijo Shipyard, LNG fuel will be supplied directly to the vessel through shore-to-ship bunkering at the Senboku Terminal of Osaka Gas, and is then scheduled to sail for Australia.

The Verde Heraldo will sail under long-term transport contracts to supply raw materials for JFE Steel's mills, providing both reduced environmental impact and safe and reliable marine transport services.

About Verde Heraldo

LOA: 299.99 m
Breadth: 50.00 m
Draft: 18.436 m
Deadweight tonnage: 210,321 tonnes
Shipyards: Imabari Shipbuilding and Nihon Shipyard

Photo credit: Mitsui OSK Lines
Published: 22 April, 2025

Business

ENGINE: Adverse weather keeps bunker operations suspended in Zhoushan’s OPL area

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended due to rough weather; some suppliers expect to fully resume operations in OPL area by 22 April.

Published

19 hours ago

April 22, 2025

Admin

Bunker deliveries at Zhoushan’s Tiaozhoumen and Xiazhimen outer anchorages have been suspended since Saturday due to rough weather, according to a source on Monday (21 April).

However, bunker operations have resumed this morning at Zhoushan’s more sheltered Xiushandong anchorage and the inner anchorage of Mazhi.

The port is currently experiencing strong wind gusts of 24–27 knots and swells approaching one meter.

Several suppliers expect to fully resume bunkering operations in the OPL area by tomorrow (22 April), the source said.

By Tuhin Roy

Photo credit: Manifold Times
Published: 22 April, 2025