Business

Argus Media: Singapore spot bunker demand falters on high prices

Singapore is very expensive these days and owners are trying to avoid purchasing VLSFO unless they have no other choice, remarked a London-based broker.

Published

3 years ago

June 15, 2022

Admin

Record-high and continuously-rising outright bunker prices are deterring ship owners from buying on the spot market in Singapore, according to several market participants.

14 June, 2022

Record-high and continuously-rising outright bunker prices are deterring ship owners from buying on the spot market in Singapore, according to several market participants.

The price of delivered very-low sulphur fuel oil (VLSFO) in Singapore has averaged $1,117/t so far this month, up by 19pc from its average in May, according to Argus data.

Bunker prices have rallied strongly in line with Brent crude prices since Russia's invasion of Ukraine in March, with sanctions resulting in a severe tightening of crude and product supplies, and an ongoing change in trade flows.

Shipowners are reducing the quantity of fuel purchased in the spot market as a result, hoping for flat prices to cool down. But this is unlikely, given tightening balances in the face of geopolitical uncertainty.

"Spot demand has definitely been poor," said one local trader.

"We can feel the impact of high flat prices weighing on average demand," remarked a local supplier.

Argus has reported an average of eight spot bunkers deals per day so far this month, down from 10 in May.

Shipowners that purchase bunker fuel based on contracts are heard to have been maximising contract liftings. But owners of vessels that tramp — which do not have a fixed schedule, itinerary or ports of call — need to buy fuel on the spot market regardless of price.

"We have very few options here – when ships need bunkers, I need to buy, timing is everything," said one buyer.

"Singapore is very expensive these days and owners are trying to avoid purchasing VLSFO unless they have no other choice, and so many enquiries are much smaller than you would usually expect," remarked a London-based broker.

The higher outright prices also mean that larger cargoes can lead to some owners having issues with outsized credit exposure.

Physical suppliers, meanwhile, are struggling with increasing operating costs, which are depressing their profit margins.

Bunker barges that supply fuel to ships burn low-sulphur marine gasoil (LSMGO). LSMGO prices have risen even more than VLSFO given a lack of availabilities of middle distillates.

"Launch boat operators have been increasing their fuel surcharge and launch fees," said one local gasoil trader.

It is not only Singapore where bunker prices are high, with tight availabilities seen across other ports in Asia, such as South Korea, Japan and China.

VLSFO prices in Fujairah have traded at a discount of up to $107.50/t to Singapore since the middle of May, but that discount is now narrowing again as local supplier Uniper is heard to be tight on product.

Despite slowing spot demand in Singapore, the city state's consumption in May rebounded to over 4mnt, according to data from the Maritime and Port Authority (MPA).

By Sammy Six

Photo credit and source: Argus Media
Published: 15 June, 2022

LNG Bunkering

Singapore: MPA launches EOI to expand LNG bunkering services amid growing demand

MPA is seeking proposals to explore scalable solutions for sea-based LNG reloading to complement existing onshore LNG bunkering storage and jetty capacities and e/bio-methane supply as a marine fuel.

Published

1 day ago

December 13, 2024

Admin

The Maritime and Port Authority of Singapore (MPA) has launched an Expression of Interest (EOI) to explore scalable solutions for sea-based liquefied natural gas (LNG) reloading to complement the existing onshore LNG bunkering storage and jetty capacities and the supply of e/bio-methane as marine fuel in the Port of Singapore.

MPA said LNG bunkering in Singapore has grown from 16,000 tonnes delivered in 2022 to over 385,000 tonnes delivered from January to October 2024.

According to the EOI, demand for LNG bunkering is expected to grow further with a growing global fleet of LNG dual-fuelled vessels and competitive LNG bunker prices.

“The EOI seeks to gather proposals on three areas: to scale up sea-based reloading operations, including ship-to-bunker barge LNG operations; to facilitate the supply of LNG alternatives such as liquefied bio-methane; and to develop floating platform concepts to enhance bunkering safety and efficiency,” MPA added.

“The EOI proposals should also include mitigation measures to address the issue of methane slip on a well-to-wake basis.”

Participants in the EOI do not need to be an existing LNG bunkering licensee. Participants are required to propose models for operationalising sea-based LNG reloading starting from 2025. Participants selected will be required to conduct trials in Singapore to validate the proposed solution’s operational feasibility and safety.

“Insights gained from the EOI and trials will inform MPA’s review of the LNG licensing framework, including enhancements to supply to better serve the industry’s bunkering needs,” it said.

Note: Interested parties can visit the MPA website for details and submission guidelines. Proposals must be submitted by 28 February 2025, 1pm (Singapore time).

Photo credit: Manifold Times
Published: 13 December, 2024

Events

Malaysia: 12th PorTech Asia Summit to bring together leaders in port industry

Event, which will be held on 9 to 10 January, will tackle important topics in the port industry including challenges and opportunities for Asian Port Industry as well as sustainable green development of ports.

Published

1 day ago

December 13, 2024

Admin

Malaysia: 12th PorTech Asia Summit to bring together leaders in port industry

The 12th PorTech Asia Summit is now just one month away, with doors opening at Berjaya Times Square Hotel in Kuala Lumpur, Malaysia on 9 to 10 of January.

The summit is organised and hosted by Shine Consultant and co-organised by ASEAN Ports Association (APA).

Themed Smart, Green, Multi-win, the summit will gather leaders and experts in the field of port technology around the world to discuss and promote the innovation and development of the port industry in the digital era.

Some speakers who were invited to share their unique insights and valuable experiences in their respective fields include:

Dato' Monaliza Binti Suhaimi, General Manager, Johor Port Authority
YBhg. Dato' Dr. Vijayaindiaran A/LR.Viswalingam, General Manager, Penang Port Commission
Uematsu Hisataka, President, Port of Yokohama, Japan
Vineet Mahajan, Vice President & Head of Sustainability, DP World APAC
Liu Chang Man, Vice President, Shanghai International Port (Group) Co., Ltd
Sushil Kumar Singh, Chairman, Mumbai Port Authority and Deendayal Port Authority
Mazlim Bin Husin, Chief Commercial Officer, Kuantan Port
Mohd Khairul Azizat Johari, Head of Facility Management, Johor Port Berhad, Malaysia
Budi Cahyono, Vice President Director, PT Jakarta International Container Terminal
Eun-kyoung Park, General Manager, Overseas Business Department, Busan Port Authority
Ivan Fantin, Vice President, Chief Lean Officer, APM Terminals, Maersk
Desmond Ong, Chief Digital Officer, Jurong Port, Singapore

Agenda

Day 1: 9 January

Session 1: Challenges and Opportunities for Asian Port Industry

Session 2: Blending Old and New: Port Construction and Upgrade Projects

Day 2: 10 January

Session 3 Forum: Efficiency Improvement and Business Innovation Driven by Digital Intelligence

Session 4 Forum: Green & Safety - Building Sustainable Development Capacity of Ports

Shine Consultant is inviting representatives from government and port authorities, industry associations, port terminal owners, digital solution providers, port machinery and equipment suppliers, research institutions, professional service organizations, and other relevant institutions to attend the summit.

Participants will have the opportunity to exchange ideas with industry leaders and jointly explore the future trends and innovative pathways of the port industry.

Interested parties may contact:

Jenny Wu
Tel: (86 21) 6095 7179
E-mail: [email protected]
Company: Shine Consultant International Ltd.

Or scan QR code to register. Interested parties may also register here.

qr code portech

Photo credit: Shine Consultant
Published: 13 December, 2024

LNG Bunkering

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Firm will supply cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel currently being built at Nantong CIMC Sinopacific Offshore & Engineering shipyard in China.

Published

1 day ago

December 13, 2024

Admin

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Wärtsilä Gas Solutions, part of technology group Wärtsilä, on Friday (13 December) said it has won a contract to supply Cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel.

The vessel is being built at the Nantong CIMC Sinopacific Offshore & Engineering shipyard in China, for global energy company Vitol.

“Wärtsilä’s ability to engineer, design and deliver a complete system, including the Boil-Off Gas (BOG) management, integrated fuel supply, custody transfer and bunkering transfer systems, was central to the contract award,” Wärtsilä said, adding the order was booked by the company in Q4, 2024.

Richie Zhu, Sales Manager, Wärtsilä Gas Solutions, China, said: “LNG is today an important marine fuel and is rapidly becoming the preferred choice for owners and operators seeking more sustainable fuel options. The market for LNG bunkering vessels is increasing in line with this trend, and we have established a leading position in supplying modern and reliable systems that optimise overall cargo handling efficiency for such vessels.”

Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

The time charter agreement with Avenir is for one newbuild 20,000 m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total.

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Photo credit: Wärtsilä
Published: 13 December, 2024