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CIMB requests for Hontop Energy restructuring amid suspicious transactions with BP

CIMB is looking to recover USD 105 million that it has lent to the company and Hontop owes approximately USD 470 million to seven creditors, reports Reuters

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The High Court of Singapore has approved Malaysian bank CIMB’s application for Hontop Energy, the trading arm of Chinese independent refiner China Wanda Holding Group Co Ltd, to be placed under judicial management, reports Reuters.

According to the filing, CIMB is looking to recover USD 105 million that it has lent to the company and Hontop owes approximately USD 470 million to seven creditors. 

RSM Corporate Advisory Pte Ltd has allegedly been nominated to take on the role of interim judicial manager.

The transactions that raised CIMB’s suspicions, as outlined in the filing, included a series of cargoes that Hontop said it would be selling to BP but failed to disclose vital information on these deals to CIMB. 

On one account, CIMB was notified that one of these deals were structured on an ‘open account’ basis whereby the cargo would be shipped and delivered before payments are made.   

However, when CIMB requested for BP to fulfil their payments, CIMB was informed that the payment terms of the cargo had been structured under a separate agreement between BP and Hontop. 

Additionally, BP had not received payments from Hontop and therefore BP claimed it was not liable to pay either Hontop or CIMB for the cargo.


Photo credit: Stevepb
Published: 6 July, 2020

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Bunker Fuel Quality

Report: Integr8 warns changes in VLSFO bunker fuel blends could trigger ‘problematic fuels’ wave

Firm said its new report shows that over 45% of global VLSFO supply would not meet RM380 2024 requirements of ISO 8217:2024 specification without adjustments to blend recipes and the changes could lead to a spike in ‘problematic fuels.’

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Report: Integr8 warns changes in VLSFO bunker fuel blends could trigger problematic fuels wave

The introduction of the ISO 8217:2024 specification has brought renewed focus on viscosity limits, with a significant proportion of VLSFOs currently failing to meet the updated standards, according to Integr8 Fuels on Tuesday (14 January). 

This was based on the firm’s latest Bunker Quality Trends report, offering insights into the evolving landscape of marine fuels. Drawing on comprehensive data from over 130 million metric tons (mt) of deliveries, the report provides an in-depth analysis of critical quality issues, regulatory implications, and market trends.

“Data from the report shows that over 45% of global VLSFO supply would not meet the RM380 2024 specification without adjustments to blend recipes,” it said.

“These changes could lead to a spike in problematic fuels, as was observed during the IMO 2020 transition, potentially affecting fuel stability and other critical parameters.”

Regions like Singapore and Houston are flagged as hotspots for adjustments, with over two-thirds of VLSFO in Singapore requiring reformulation. 

“Buyers are urged to adapt charterparty wording to ensure suppliers comply with the latest standards to reduce the risk of critical handling issues,” Integr8 Fuels said.

Other key developments highlighted in the report are:

The Smart Way to Meet Compliance Targets: Plan Biofuel Bunkering on a Fleet or Pool Level

When it comes to compliance with environmental regulations, FuelEU Maritime doesn’t specify a fixed biofuel percentage. The focus is on reducing the greenhouse gas (GHG) intensity across a vessel’s voyages over the course of a calendar year. The target is a 2% reduction in GHG intensity between two EU ports, which translates to around 3% biofuel blended with VLSFO or HSFO, or 2% biofuel with MGO. 

However, it’s more efficient to take larger biofuel quantities on select vessels and transfer compliance surpluses across your fleet or between ships in multiple fleets, which is also known as pooling. The most common biofuel grades stocked by suppliers are B24 and B30 blends, and pure B100. Their availability varies by port and region. Shipowners are advised to carefully manage their biofuel strategies and check the GHG intensity figures in Proof of Sustainability documents provided by suppliers.

Barge Bottlenecks: The Sulphur Compliance Challenge in Southern Europe

Sulphur compliance for VLSFO remains a pressing concern, with 2.4% of supplies exceeding the 95% confidence limits for ISO 8217 Table 2 parameters in the past six months. Geographical variances are significant, with higher non-compliance risks reported in bunker hubs such as Rotterdam and Balboa compared to Singapore. Infrastructure constraints, including the practice of switching between HSFO and VLSFO on the same barges, are identified as contributing factors. The report underscores the importance of data- driven procurement and robust supplier practices to mitigate these risks.

Rising Automotive Fuel Blends Are Driving Flash Point Risks in the Med

The integration of automotive diesel into bunkering pools has led to heightened risks of flash point non-compliance, particularly in the Mediterranean. Automotive fuels often have a minimum flash point of 55°C, below the 60°C threshold mandated for marine fuels under SOLAS regulations. The report identifies specific ports where these risks are most prevalent and calls for enhanced due diligence when purchasing in regions reliant on automotive diesel imports. Ensuring DMA specifications are met is critical to avoiding costly compliance breaches.

Biofuels and LNG: Key Players in the Future of Fuel Compliance

The report highlights the growing role of biofuels and LNG as transitional solutions for meeting stringent emissions regulations, such as FuelEU Maritime and the upcoming Mediterranean Emission Control Area (Med ECA). While LNG remains a reliable option due to its consistent quality and negligible SOx emissions, biofuels are gaining momentum as suppliers expand blending capabilities globally. 

The report cautions buyers about potential operational risks, such as biofuel-related cold flow challenges in colder climates and the limited availability of LNG bunker vessels. The introduction of the Med ECA from 1 May 2025 will likely boost LNG bunker demand in the region, however, the delivery of LNG bunker vessels is failing to keep up with growing demand, tightening the LNG supply chain.

Note: The full Bunker Quality Trends Report Q1 2025 by Integr8 can be found here.

 

Photo credit: Integr8 Fuels
Published: 15 January, 2025

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Bunker Fuel

Viroque Energy completes its first physical bunker supply operation in Colombia

Significant milestone involved the logistics coordination and delivery of 416 mt of VLSFO to an international client in an operation in Cartagena de Indias, Colombia.

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Viroque Energy completes its first physical bunker supply operation in Colombia

Energy firm Viroque Energy, a new supplier for bunker services in South America, on Monday (13 January) said it successfully completed its first physical bunker supply operation in Cartagena de Indias, Colombia. 

The significant milestone involved the logistics coordination and delivery of 416 mt of Very Low Sulphur Fuel Oil (VLSFO) to an international client. 

The company said the operation reinforced its worldwide operational coverage and commitment as maritime industry suppliers in ‘one of Latin America’s most dynamic spots in terms of trading and commerce’.

“As part of our mission to provide high-quality marine fuels, this achievement reflects our dedication to supporting shipowners and maritime clients with efficient, high-quality, and reliable solutions tailored to their needs, now in America,” it said in a social media post. 

Viroque Energy’s portfolio includes VLSFO and Marine Gas Oil (MGO). 

Note: For inquiries or further details, contact [email protected].

 

Photo credit: Viroque Energy
Published: 15 January, 2025

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Alternative Fuels

Höegh Autoliners names LNG-powered RoRo ship “Höegh Sunlight” in China

Firm’s fourth Aurora Class newbuild “Höegh Sunlight” began its LNG-powered maiden voyage to Europe, fully loaded with Chinese cargo after a naming ceremony at Taicang Haitong Auto Terminal.

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Höegh Autoliners names LNG-powered RoRo ship before commencing first voyage

Höegh Autoliners on Tuesday (14 January) said its fourth Aurora Class newbuild, Höegh Sunlight, was named at a ceremony at Taicang Haitong Auto Terminal. 

The 9,100 CEU Höegh Sunlight commenced its LNG-powered maiden voyage to Europe, fully loaded with Chinese cargo, shortly after the fireworks. 

“We now have four of the world’s largest and most environmentally friendly car carriers sailing the seas,” the firm said in a social media post. 

“Today’s celebrations are not only marking the handover of a ship; they once again underline our relentless quest toward a greener future—and a transformed industry.”

Höegh Autoliners names LNG-powered RoRo ship “Höegh Sunlight” in China

The Höegh Sunlight will reduce carbon emissions by 58 percent per transported car compared to the current industry average. 

In 2027, when the first Aurora is powered entirely by clean ammonia, nearly all carbon emissions will be eliminated. 

CEO, Andreas Enger, said: “Taking delivery of four of the world’s largest and most environmentally friendly PCTCs within six months is a decisive step to renew the company and our industry. We are pleased to celebrate this milestone with customers and partners during her first cargo operation in Taicang.” 

COO, Sebjørn Dahl, said: “Never in our nearly 100-year history have we built so many vessels in one newbuild programme, such large vessels, so technically advanced, so green, and so many at the same time and at this speed. We are indeed an agile, bold, and professional team at Höegh Autoliners.”

 

Photo credit: Höegh Autoliners
Published: 15 January, 2025

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