Connect with us

Business

Bunker One accuses rival of unfair competition with Russian oil

The supplier has raised concerns at a meeting with authorities about ”unfair competitive advantages” in Danish waters. The company denies the allegations.

Admin

Published

on

Bunker One

The following article on Manifold Times was originally written by Danish independent online media ShippingWatch; which has given the Singapore bunkering publication permission to post the article for its readers:

BY PETER THOMSEN, LIV ALMER, METTE GRUBE CONDRUP
Published: 3 April 2024

Latvian Fast Bunkering has been accused by Bunker One of engaging in unfair competition because the Latvian oil company has apparently been supplying ships with Russian bunker oil in the waters off Skagen in Denmark for months.

Bunker One made the accusation at a closed meeting with the Danish Transport Authority in November, according to documents which ShippingWatch has gained.

”This (the supply of Russian bunker oil, ed.) gives them an unfair competitive advantage over the many companies that do not trade with Russian bunker oil – and that this option should be stopped, ” the Danish Transport Authority summarizes in a report to the Ministry of Foreign Affairs.

Both Russian fuel and the ongoing servicing of tankers with Russian oil have long been a point of contention among several of the suppliers active at Reden near Skagen.

As one of the key operators, Bunker One itself has refused to supply Russian oil, claiming that it could damage the company’s reputation.

Chief executive Peter Zachariassen tells ShippingWatch that ”Bunker One does not generally relate to other suppliers’ behavior in the market” and therefore chooses not to comment on the accusations.

Fast Bunkering initially did not respond to ShippingWatch’s inquiries, but has returned after the publication of this article.

The company denies having been ”involved in the delivery of Russian marine fuel at Skagen (Red, ed.) for months and that it gives our company an unfair advantage”.

“These allegations are not true, ” writes chairmain Aleksei Volkov in a written comment to ShippingWatch.

He also emphasizes that the Latvian bunker company’s operations have not involved the import of Russian bunker oil since the area became subject to sanctions in February 2023.

“We have conducted our business within the Scandinavian bunker market under fair and competitive conditions,” Volkov writes.

In short, the oil trade has been considered among the primary revenue streams funding the Russian war effort in the country, which according to recent casualty figures has cost the lives of 31,000 Ukrainian soldiers.

The central role of trade in the Russian economy has meant that since the end of 2022, the sale of Russian crude oil as well as petroleum products has been subject to sanctions and price caps to curb Russian energy export cash flows.

However, the increasing pressure of sanctions over the past year has sent the shipping industry into a sea of gray areas when it comes to transporting and servicing the continued oil trade on European territory.

The issue has previously divided the Danish industry, with some suppliers refusing to sell fuel to ships traveling to and from Russia - even if they comply with all sanctions - while others have sent the decision to set the trade fenceposts to Christiansborg and others.

Trading is ”certainly legal”

In its warnings to the Danish Transport Authority, Bunker One has emphasized that Fast Bunker’s deliveries have only affected competition, but not necessarily illegal in relation to, for example, sanctions against Russia. According to the report to the agency, the Middelfart-based bunker company emphasized that the transaction ”is certainly legal”.

In practice, Bunker One is one of the subsidiaries of the United Shipping & Trading Company group (USTC) owned by billionaire Torben Østergaard, just like Dan Bunkering, for example.

“In December 2023, the Danish Transport Authority received a confirmation from Bunker One about their view on the case,” the agency writes in a written comment and adds:

“The Danish Transport Agency has not itself been in contact with Fast Bunkering about the case, as the agency is only the competent authority in relation to the ban on Russian ships calling at Danish ports.”

The Danish Competition and Consumer Authority states that it does not comment on “any pending cases until a decision has been made”. The agency does not wish to comment on whether the specific case is under consideration.

Bunker One: Not our policy

At Bunker One, CEO Peter Zachariassen does not comment on whether Fast Bunkering, in the company’s view, is currently gaining an unfair competitive advantage.

In the comment sent to ShippingWatch, the CEO does not reject the Danish Transport Authority’s interpretation of the contact between the Danish bunker operator and the authorities, but distances himself from the process.

“That employees at a meeting with the Danish Transport Authority, in connection with knowledge sharing about expectations for future bunkering of green fuels and the importance for Danish commercial ports, have inadvertently mentioned other suppliers, is not Bunker One’s policy or position,” writes Peter Zachariassen in a written comment.

 

Photo credit: Bunker One
Source: ShippingWatch
Published: 9 May 2024

Continue Reading

Business

Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Sanket joined Sing Fuels in 2016 as a Credit Manager and has ‘immersed himself’ in all departments; will drive company to expand into areas like sustainability and biofuels.

Admin

Published

on

By

Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Singapore-based provider of marine fuel solutions Sing Fuels on Saturday (7 December) said Sanket Naik, was recently promoted to Managing Director of Sing Fuels. 

The firm said Sanket joined Sing Fuels in 2016 as a Credit Manager. 

“He immersed himself across all departments, ranging from investment to business development, gaining a 360-degree understanding of the business and serving as a key driver of growth and success at Sing Fuels,” Sing Fuels said in a social media post. 

“As Managing Director, Sanket is poised to drive Sing Fuels 3.0, expanding into areas like sustainability and biofuels, ensuring we stay at the forefront of industry innovation.”

 

Photo credit: Sing Fuels
Published: 9 December, 2024

Continue Reading

Alternative Fuels

DNV: Use of ammonia as a bunker fuel among highlights in IMO MSC 109

Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted and interim guidelines for the general use of ammonia as fuel were approved during session.

Admin

Published

on

By

RESIZED CHUTTERSNAP on Unsplash

Classification society DNV on Saturday (7 December) shared a statutory news article that provides a summary of the 109th session of the International Maritime Organization’s (IMO) Maritime Safety Committee (MSC 109) including adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel and approved draft interim guidelines for ammonia as a marine fuel.

The following is an excerpt from the news update relating to bunker fuels:

The 109th session of the IMO’s Maritime Safety Committee (MSC 109) was held from 2 to 6 December 2024. Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted, and interim guidelines for the general use of ammonia as fuel were approved. The IGF Code was amended to improve the safety of ships using natural gas as fuel. MSC 109 further approved draft SOLAS amendments to enhance the safety of pilot transfer arrangements and progress was made on the new safety code for Maritime Autonomous Surface Ships.

Meeting highlights

  • Adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel
  • Adopted amendments to the IGF Code for ships using natural gas as fuel
  • Approved draft interim guidelines for ammonia as fuel
  • Approved draft amendments to SOLAS Regulation V/23 and the related performance standards to improve the safety of pilot transfer arrangements
  • Advanced the non-mandatory Code on Maritime Autono- mous Surface Ships (MASS)

Amendments to mandatory instruments 

Ammonia cargo as fuel (IGC Code) MSC 109 adopted amendments to Paragraph 16.9.2 of the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) to enable the use of ammonia as fuel on ammonia carriers.

An MSC circular to encourage the voluntary early implementation of the amendments to Chapter 16 was approved. 

The amendments will enter into force on 1 July 2026.

Safety of ships using natural gas as fuel (IGF Code)

MSC 109 adopted amendments to the International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code), based on experience with the code since its entry into force in 2017.

The amendments include:

  • Clarified application provisions
  • Alignment with the IGC Code on suction wells for fuel tanks extending below the lowermost boundary of the tank
  • Alignment with the IGC Code on discharge from pressure relief valves to discharge to tanks under certain conditions
  • Clarified requirements to fire insulation for deck structures in relation to fuel tanks on open deck
  • Clarified requirements for hazardous ducts through non-hazardous spaces and vice versa
  • Updated requirements for the hazardous zone radius for fuel tank vent mast outlets, increasing to 6 metres for zone 1 and 4 metres for zone 2

The amendments will enter into force on 1 January 2028.

Goal-based new ship construction standards

Goal-based standards (GBS) for the new construction of bulk carriers and oil tankers are, conceptually, the IMO’s rules for class rules. Under the GBS, IMO auditors use guidelines to verify the construction rules for bulk carriers and oil tankers of class societies acting as Recognized Organizations (Resolution MSC.454(100)).

Initial GBS verification of Biro Klasifikasi Indonesia (BKI) BKI has requested GBS verification of their ship construction rules for bulk carries and oil tankers. MSC 109 agreed that the BKI rules comply with the GBS, provided non-conformities and observations are rectified and verified in a new audit.

North Atlantic wave data (IACS Recommendation No. 34, Revision 2) MSC 109 noted that IACS is currently undertaking a review of its Common Structural Rules (CSR) for bulk carriers and oil

tankers to reflect advances in data, materials, technologies and calculation methodologies. The CSR are implemented in the individual class rules of the IACS members, which are subject to compliance with the GBS.

MSC 109 further noted that IACS has now issued a revision of the North Atlantic wave data to ensure more scientific data as a basis for the rule formulas in the CSR. The new scatter diagram in Revision 2 of IACS Recommendation No. 34 shows the probability of occurrence of different sea states and is based on wave data from advanced hindcast wave models combined with ships’ AIS data for all SOLAS vessels in the period from 2013 to 2020.

MSC 109 agreed that an observation from the initial CSR audit in 2015, that the scatter diagram in Revision 1 of IACS Recommendation No. 34 was based on past statistics, was now considered addressed.

MSC 109 further invited IACS to provide more information about the assumptions, modelling and technical background for Revision 2 of IACS Recommendation No. 34, and agreed that the GBS audit of the revision to follow should be carried out in conjunction with the consequential rule changes in the CSR.

New technologies and alternative fuels 

Identification of gaps in current IMO instruments MSC 109 continued its consideration of potential alternative fuels and new technologies to support the reduction of GHG emissions from ships from a safety perspective. The intention is to identify safety obstacles, barriers and gaps in the current IMO instruments that may impede the use of the various alter- native fuels and new technologies.

MSC 109 agreed to add “swappable traction lithium-ion battery containers” to the list of alternative fuels and new technologies. The list already includes fuels and technologies such as ammonia, hydrogen, fuel cell power installations, nuclear power, solar power, wind power, lithium-ion batteries and supercapacitor energy storage technology.

Recommendations to address each of the identified barriers and gaps in the IMO regulatory framework will be considered in a Correspondence Group until MSC 110 (June 2025). Application of the IGF Code

MSC 109 agreed on draft amendments to SOLAS to clarify that the IGF Code applies to ships using gaseous fuels, whether they are low-flashpoint or not. The term “gaseous fuels” was added to the definitions in SOLAS Regulation II-1/2 and to the application provisions of SOLAS Regulations II-1/56 and 57.

The draft amendments are expected to enter into force on 1 January 2027, subject to adoption by MSC 110 (June 2025).

Carriage of cargoes and containers

Ammonia as fuel

MSC 109 approved draft interim guidelines for the safety of ships using ammonia as fuel.

Ships carrying liquefied gases in bulk (IGC Code)

MSC approved draft amendments to the IGC Code to incorporate the large number of Unified Interpretations developed since the latest major review of the code, which entered into force in 2016. The primary objective of the draft amendments is to remove ambiguity and promote the consistent implementation of the IGC Code requirements.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 9 December, 2024

Continue Reading

Methanol

Methanol Institute welcomes HIF Global as its newest member

HIF Global will collaborate with industry leaders, policymakers, and stakeholders to promote the adoption of methanol-based solutions and e-Fuels in the transition to a low-carbon future.

Admin

Published

on

By

HIF Global joins Methanol Institute as its newest member

The Methanol Institute (MI) on Thursday (5 December) welcomed HIF Global as its newest member. 

HIF Global is an innovator in the production of e-Fuels, offering sustainable alternatives to fossil fuels that are compatible with today’s transportation and industrial infrastructure.

As part of MI’s membership, HIF Global will collaborate with other industry leaders, policymakers, and stakeholders to promote the adoption of methanol-based solutions and e-Fuels in the transition to a low-carbon future.

MI said HIF Global’s pioneering approach combines renewable energy with technology to produce green hydrogen through electrolysis and capture CO₂ from atmospheric, biogenic, and industrial sources. 

These components are then synthesised to create e-Fuels, including e-Methanol for ships, e-SAF for planes, and e-Gasoline for cars, which are crucial to decarbonizing global transportation and reducing greenhouse gas emissions.

At the heart of HIF Global’s operations is HIF Haru Oni in Magallanes, Chile, the world’s first operating e-Fuels facility, which was inaugurated in December 2022. The company is scaling its production globally, with projects underway in the United States, Chile, Australia, Uruguay and Brazil. Its most advanced commercial-scale project, the HIF Matagorda e-Fuels Facility in Texas, is designed to produce 1.4 million metric tons (466 million gallons/1.76 billing liters) of e-Methanol annually once fully operational.

“We are thrilled to welcome HIF Global to the Methanol Institute,” said CEO of MI Greg Dolan. 

“HIF Global’s work in e-Fuels, particularly e-Methanol, is a crucial contribution to the energy transition. Their innovative approach underscores methanol’s potential as a key solution for decarbonizing transportation and industry, and we look forward to collaborating to accelerate this transformation.”

Cesar Norton, President and CEO of HIF Global, said: “e-Fuels are essential to achieving a sustainable future. We applaud the Methanol Institute for their leadership in methanol markets and join them to drive forward the vision to expand e-Methanol based e-Fuels that support our global circular economy.”

“Together we will advance the energy transition by pioneering e-Methanol solutions that utilize existing infrastructure to inspire innovation and reduce costs.”

 

Photo credit: Methanol Institute
Published: 9 December, 2024

Continue Reading
Advertisement
  • Aderco advert 400x330 1
  • v4Helmsman Gif Banner 01
  • Consort advertisement v2
  • SBF2
  • RE 05 Lighthouse GIF
  • EMF banner 400x330 slogan

OUR INDUSTRY PARTNERS

  • SEAOIL 3+5 GIF
  • Triton Bunkering advertisement v2
  • Singfar advertisement final
  • HL 2022 adv v1
  • 102Meth Logo GIF copy


  • Synergy Asia Bunkering logo MT
  • E Marine logo
  • Auramarine 01
  • Trillion Energy
  • endress
  • Mokara Final
  • Energe Logo
  • CNC Logo Rev Manifold Times
  • PSP Marine logo
  • Central Star logo
  • 400x330 v2 copy
  • Headway Manifold
  • VPS 2021 advertisement
  • Advert Shipping Manifold resized1

Trending