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Argus Media: Singapore scrubber spread dips to 10-month low on weaker bunker demand

Scrubber or Hi-5 spread, or the price difference between VLSFO and HSFO, in Singapore reached $154.04/t on 22 February, a 10-month low, says Argus.
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The scrubber or Hi-5 spread, or the price difference between very-low sulphur fuel oil (VLSFO) and high-sulphur fuel oil (HSFO), in Singapore reached $154.04/t on 22 February, a 10-month low.

23 February, 2023

The scrubber spread has gradually fallen since peaking at almost $600/t in July last year, in a reversal of fortune for vessels operating a scrubber. Recessionary fears have dampened demand for bunkers across all grades, which typically narrows the quality spread, but HSFO prices have held up better than VLSFO.

Argus assessed the average premium of VLSFO bunkers over the cargo price in 2022 at $43.34/t, which has fallen to an average of $15.91/t so far in February. The premium of HSFO bunkers over the cargo price averaged $24.75/t in 2022 and has averaged $15.75/t so far in February.

Margins for 180cst HSFO against Dubai crude values in Singapore have been firming since November last year, reaching about six-month highs of -$13.52/bl on 22 February. Margins were last higher at -$12.73/bl on 15 August last year. But Singapore 0.5pc sulphur marine fuel margins fell to over two-year lows in mid-December 2022 and were at over one-month lows of $7.22/bl on 22 February.

“Despite lots of discounted residual Russian barrels in the region, most trading houses here cannot touch them due to self-sanctioning”, said a Singapore trader. This has led to a two-tier pricing market for the product since western sanctions on Russia came into effect.

“The strength in HSFO is also due to more scrubbers out there because of the high spread last year, boosting demand”, said another trader.

Market participants were initially expecting HSFO prices to be depressed because of more Russian inflows, mostly of the high-sulphur grade diverted to Asia-Pacific after EU sanctions on Russian oil product imports. But some returning south Asian utility demand, particularly from Bangladesh, could have supported markets, they said. Fuel oil arrivals to Bangladesh in February are projected to be around three-month highs of 194,500t (1.25mn bl), according to Vortexa data.

But northeast Asia is also likely not taking much VLSFO to meet utility demand, with ample LNG inventories and LNG prices having come off since September 2022. LNG stocks at Japan’s main utilities are also high at 2.63mn t, according to its trade and industry ministry’s weekly survey, up by 56pc compared with stocks at the end of February 2022.

The influx of VLSFO cargoes from Kuwait’s new 615,000 b/d al-Zour refinery is also likely weakening VLSFO markets. Kuwait’s state-owned KPC has sold a total of 1.14mn t of VLSFO for loading over November 2022-April 2023, some of which have headed to Singapore. It is offering 360,000-450,000t more of VLSFO for loading over March-May.

Lean inflows

Low-sulphur residual inflows to Singapore from Europe were lean this month as European refiners upgraded more low-sulphur feedstocks into gasoline, with low-sulphur fuel oil inflows to Singapore in March still projected by traders to be around average volumes of 2mn t. The incremental inflows from Kuwait, along with weaker LSFO bunker demand, could have depressed markets as well.

But how long the spread will stay narrow for remains to be seen, as more HSFO is expected to arrive in Singapore by mid-March, said traders.

Sammy Six and Sarah Giam

 

Photo credit and source: Argus Media
Published: 24 February, 2023

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Legal

Shell Singapore charged over Pulau Bukom oil leaks, reporting delays

Shell faces four charges under Singapore’s Prevention of Pollution of the Sea Act over two 2024 oil discharge incidents at its Pulau Bukom facility.
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2 MPA craft (left) supporting Shell craft in the clean up operations of the oil sheens taken on 28 Dec 9am

Shell Singapore has been charged over two incidents in 2024 involving oily mixtures discharged into Singapore waters from its facilities at Pulau Bukom, according to media reports on Tuesday (22 September). 

The company faces four charges under the Prevention of Pollution of the Sea Act, including allegations that it failed to report the discharges to the port master immediately. 

The first incident occurred on 20 October 2024, when approximately 40 metric tonnes (mt) of oily mixture was discharged through a hole in a pipeline at the Shell Singapore Energy and Chemicals Park at about 8am.

Shell is accused of reporting the incident to the port master at about 12.55pm, several hours after the discharge occurred. 

The second incident took place between 26 and 28 December 2024. An estimated 485kg to 956kg of oil mixture was discharged into Singapore waters from the same facility.

Shell is accused of failing to report the incident immediately, with notification to the port master made at about 11.50am on 26 December 2024, according to the charges.

Singapore’s pollution-prevention regulations require occupiers of such facilities to report oil or oily-mixture discharges into Singapore waters “without delay and to the fullest extent possible”.

Shell’s representative requested an eight-week adjournment at the 22 September hearing, citing the need to obtain internal instructions, appoint counsel and locate historical records. The company said the business associated with the incidents had been divested in 2025.

The case was adjourned to October. Shell is also facing prosecution by Singapore’s National Environment Agency over the same incidents.

Related: Shell reports up to 40 mt of slop leaked from pipeline into Singapore waters
Related: Singapore: No new oil sightings after recent pipeline leak and bunkering incidents
Related: Singapore: Clean-up of oil from Shell pipeline leak to be completed in days
Related: Singapore: Oil leak at Pulau Bukom stopped; cleanup of oil sheens completed

 

Photo credit: Maritime and Port Authority of Singapore
Published: 25 September, 2026

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Incident

MPA probes Singapore Strait collision involving fishing vessel, bulk carrier

MPA says there were no reported injuries among the crew of either vessel in the incident involving China-registered fishing vessel “Lu Qing Yuan Yu” and Panama-registered bulk carrier “First Margaux” .

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Panama-registered bulk carrier “First Margaux”

The Maritime and Port Authority of Singapore (MPA) on Tuesday (22 September) said it is investigating the incident involving the China-registered fishing vessel Lu Qing Yuan Yu and the Panama-registered bulk carrier First Margaux in the Singapore Strait on 17 September.

MPA said there were no reported injuries among the crew of either vessel or pollution arising from the incident and navigational traffic was not affected.

Videos circulating on social media showed the bulk carrier colliding with the fishing vessel.  

“The fishing vessel took on water during the incident but remained afloat and stable, with the crew taking measures to manage the situation onboard,” MPA said. 

The vessel was subsequently towed to Raffles Reserved Anchorage for assessment. 

Essential crew remained onboard to support the tow, while the Singapore Civil Defence Force supported the transfer of other crew to shore. 

MPA added it also issued navigational safety broadcasts to keep other vessels clear of the tow and escorted the vessel into port with a MPA craft.

 

Photo credit: MarineTraffic / Arnold Pohen
Published: 25 September, 2026

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Mass Flowmeter

TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Bunker barge “Kingston Trader” is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.
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TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Global marine fuel supply and procurement firm TFG Marine on Thursday (24 September) said its bunker barge Kingston Trader is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.

The company said the latest installation brings the proportion of TFG Marine’s fleet equipped with MFMs to approximately 88%, marking another step in the continued rollout of this technology across its global bunkering operations.

“The barge will operate in Jamaica through our local partnership with Scott Petroleum, becoming the first bunkering vessel in the region equipped with this technology and bringing greater accuracy, transparency and assurance to fuel measurement for customers across the Caribbean,” TFG Marine said in a social media post. 

“Together with Scott Petroleum, we look forward to working collaboratively with the Maritime Authority of Jamaica, the The Port Authority of Jamaica, Petrojam Limited and other stakeholders to share our experience of MFM technology, explore its wider benefits and support the continued development of bunkering standards across the region.” 

Manifold Times previously reported TFG Marine continuing to expand MFM technology across its US Gulf Coast bunker fleet with Buffalo B414 and Buffalo B304 being fitted with the equipment. 

Last year, TFG Marine announced it reached a key milestone in its global digitalisation programme with the installation of an ISO 22192-compliant MFM on the Buffalo 404, a barge on time charter from American bunker barge company Buffalo Marine Service Inc.

The installation was part of TFG Marine’s wider strategy to equip close to 90% of its global bunkering fleet with MFMs by 2026 as a commitment towards improving data integrity, streamlining operations and strengthening trust in marine fuel transactions.

Related: TFG Marine advances global MFM rollout with two US Gulf bunker barges
Related: TFG Marine installs first ISO-certified mass flow meter on US Gulf bunkering barge

 

Photo credit: TFG Marine
Published: 25 September, 2026

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