Business

Argus Media: South Korean bunker prices soar on supply shortfall

Refining company Hyundai Oilbank knows they’re the only ones that can still offer spot supplies for May so prices are through the roof, says one trader.

Published

4 years ago

May 20, 2022

Admin

Several South Korean refineries are unable to deliver bunker supplies for the rest of this month, leading to sharply higher prices relative to other parts of the region.

19 May, 2022

The price of South Korean very low-sulphur fuel oil (VLSFO) hit a record premium to Singapore values of $220/t on 18 May, having risen from more typical levels of about $20-25/t since 11 May, according to Argus data.

The shortage of bunker supply in South Korea is so severe that yesterday VLSFO there was assessed almost at parity to low-sulphur marine gasoil (LSMGO), a premium bunker product that usually commands a much higher price. Argus assessed South Korean VLSFO at $1,164/t yesterday and LSMGO at $1,185/t.

South Korea’s refining sector is dominated by four companies — S-Oil, SK energy, GS Caltex and Hyundai Oilbank. Of those, only Hyundai Oilbank is understood to still have spot supplies on offer for May delivery. The others have either run out or are being hampered by outages.

S-Oil, which operates the 669,000 b/d Onsan refinery in Ulsan, is heard to be having some issues with its residue fluid catalytic cracking (RFCC) unit, although this could not be confirmed. Market sources told Argus that the refinery requires maintenance, and this has led to a decline in output.

Meanwhile, SK Energy’s 840,000 b/d refinery in Ulsan is understood to have been under maintenance for a while, with the company only offering product for June delivery onwards. And GS Caltex has reportedly sold out of VLSFO for May.

“Hyundai know they’re the only ones that can still offer spot supplies for May so prices are through the roof,” said one trader.

Most of the bunkering taking place in South Korea at the moment is therefore restricted to term volumes. The constraints on VLSFO production from S-Oil and SK Energy, also partly connected to an interruption in supply of low-sulphur crude, is not expected to ease until the end of May or early June.

South Korea is one of the largest bunker supply hubs and producers of VLSFO in Asia-Pacfic, with most bunkering taking place in the country’s southern ports of Ulsan and Busan.

No official data on the country’s bunker fuel demand are available, but December 2021 total sales were estimated by various market sources at 800,000-850,000t, of which about 590,000t was VLSFO.

By Sammy Six and Maiko Nakashima

Photo credit and source: Argus Media
Published: 20 May, 2022

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

10 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

10 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

Published

10 hours ago

July 21, 2026

Admin

PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post.

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024.

Photo credit: Pacific International Lines
Published: 21 July, 2026