Business

ENGINE: Americas Bunker Fuel Availability Outlook

Barge operator ups fuel surcharges on East Coast; lingering gasoil tightness supports New York prices;
West Coast fuel oil tight amid refinery constraints.

Published

3 years ago

June 10, 2022

Admin

Resized Americas Bunker Fuel Availability Outlook image for Manifold Times

The following article regarding bunker fuel availability in the Americas region has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

9 June 2022

Barge operator ups fuel surcharges on East Coast
Lingering gasoil tightness supports New York prices
West Coast fuel oil tight amid refinery constraints

North America

Prompt VLSFO and LSMGO has been tight with some suppliers in Houston this week, pushing their earliest delivery dates further ahead to 4-5 days. One supplier’s earliest delivery date for LSMGO is six days out.

Tight gasoil supply on the US East Coast continues to prop up New York’s LSMGO price, which still hovers well over $100/mt above levels in Houston and Balboa.

A barge operator on the East Coast hiked fuel surcharges to 72% from 1 June, following a previous increase to 51% from 1 April. This means that 72% of the cost of fuel is now added on top to cover barging costs in New York, Philadelphia and other ports covered by the operator.

VLSFO availability looks tight in Los Angeles and Long Beach for the rest of the month, a source says. There are some openings, but availability is patchy and it is hard to estimate when the earliest delivery date is.

HSFO is currently unavailable with one supplier in Los Angeles. It can be sourced but delivery dates beyond 24 June now look more likely, a source says.

Fuel oil supply has been under pressure on the US West Coast. A 10-week strike of 500 steelworkers at the 257,000 b/d capacity Richmond refinery had left refinery managers and contract workers to run operations until the strike ended and steelworkers gradually started returning to the refinery this month.

The refinery is scheduled for a crude distillation unit (CDU) maintenance between 15 June and 31 July, according to Wood Mackenzie, which could continue to take some production capacity out of the market and keep supply tight.

Another refinery in the region, the 166,000 b/d capacity refinery in Torrance has been undergoing a CDU maintenance since 18 May, which is scheduled to end on 2 July.

Latin America

VLSFO has tightened considerably in Panama, pushing Cristobal and Balboa’s prices far above Houston’s.

A supplier in Panama has limited availability for deliveries of all grades, even into the second half of June. Its earliest delivery date is 11 days out. Another can deliver VLSFO with seven days of lead time in Balboa and five days in Cristobal.

Prompt VLSFO availability has also become tighter in Zona Comun. A supplier there needs seven days of lead time. Another supplier can deliver from six days onwards.

VLSFO is tight for prompt dates in Santos, with the earliest delivery around eight days out.

Photo credit: ENGINE
Published: 10 June, 2022

Winding up

Singapore: Annual general meetings scheduled for Xihe Holdings subsidiaries

Development includes Da Xin Tankers, Dong Sheng Tankers, Dong Ya Tankers and Hua Zhong Shipping; meetings will be held electronically on 7 and 8 May, according to Government Gazette notices.

Published

21 hours ago

April 23, 2025

Admin

Several notices were published on the Government Gazette on Tuesday (22 April) regarding the annual general meetings of the companies and creditors to be held electronically on 22 April for Xihe Holdings subsidiaries.

The subsidiaries are Dong Sheng Tankers Pte Ltd, Da Xin Tankers Pte Ltd, Dong Ya Tankers Pte Ltd, and Hua Zhong Shipping Pte Ltd.

Annual general meeting for Dong Sheng Tankers are to be held on 8 May at the following times:

For the company: 2pm

Annual general meetings for Da Xin Tankers are to be held on 7 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Dong Ya Tankers are to be held on 8 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Hua Zhong Shipping are to be held on 7 May at the following times:

For the company: 2pm
For the creditors: 3pm

The agenda for all the meetings are:

To receive an update on the liquidation.
To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up

Manifold Times previously reported on the winding up of Da Xin Tankers, Dong Ya Tankers and Hua Zhong Shipping Pte Ltd and the appointment of the joint and several liquidators of the firms.

Photo credit: Drew Beamer
Published: 23 April, 2025

LNG Bunkering

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

Company says it is the first gas utility company in Japan to offer LNG bunker fuel at its terminal to vessels and is also exploring the potential of replacing LNG with e-methane as a marine fuel.

Published

21 hours ago

April 23, 2025

Admin

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

Osaka Gas on Monday (21 April) said it has launched its shore-to-ship LNG bunkering service, becoming the first gas utility company in Japan to offer liquefied natural gas (LNG) at its terminal to vessels.

The first delivery took place today at Osaka Gas’ Senboku LNG Terminal in Takaishi City, Osaka Prefecture, where LNG was supplied to Verde Heraldo, a bulker operated by Mitsui OSK Lines (MOL).

Manifold Times previously reported that the bulker will sail under long-term transport contracts to supply raw materials for JFE Steel Corporation's mills.

With the launch of the shore-to-ship service, in addition to its existing truck-to-ship LNG bunkering service—operational since 2019—Osaka Gas enhances its LNG fuel delivery capabilities to address the current scarcity of facilities in Japan that can supply LNG to vessels.

The company’s future plans include the introduction of a ship-to-ship LNG bunkering service utilising a dedicated LNG bunkering vessel, scheduled to commence in fiscal 2026.

These supply methods aim to provide a stable and flexible LNG fuel supply to an increasing number of LNG-fuelled vessels as the maritime industry transitions away from heavy fuel oil.

This growth in LNG-fuelled vessels is driven by global decarbonisation trends and the International Maritime Organization’s target to achieve net zero greenhouse gas emissions by 2050. Through its LNG bunkering services, Osaka Gas is well-positioned to contribute to maritime industry sustainability.

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

In addition to expanding LNG fuel supply to vessels, Osaka Gas is exploring the potential of replacing LNG with e-methane as a marine fuel.

Photo credit: Osaka Gas
Published: 23 April, 2025

Alternative Fuels

Japan: J-ENG begins co-firing of first full-scale marine engine with ammonia

Company says the first Japanese-developed and manufactured commercial full-scale, low-speed, ammonia-fuelled two-stroke engine has started co-firing operation with ammonia.

Published

21 hours ago

April 23, 2025

Admin

Japan: J-ENG begins co-firing of first full-scale marine engine with ammonia

Japan Engine Corporation (J-ENG) on Monday (21 April) said the first Japanese-developed and manufactured commercial full-scale, low-speed, ammonia-fuelled two-stroke engine has started co-firing operation with ammonia, which will be installed in a vessel.

J-ENG is developing the engine under the “Green Innovation Fund Project: Next-generation Ship Development” of the New Energy and Industrial Technology Development Organization (NEDO).

Since May 2023, when J-ENG started the world's first ammonia co-firing operation of a large, low-speed, two-stroke engine in a test engine, J-ENG has obtained many results and knowledge, including stable operation at high ammonia co-firing rates and safe handling of ammonia, through various test operations over a period of about a year and a half.

J-ENG will conduct verification operations on the full-scale engine and plans to ship the engine in October of this year. The engine will be installed on an Ammonia-fuelled Medium Gas Carrier (AFMGC) and then demonstration operations of the vessel will be carried out then.

In order to accommodate a wide variety of ammonia-fueled vessels, J-ENG is also concurrently developing an ammonia-fueled engine with a cylinder bore of 60cm, following the first engine with a 50cm cylinder bore mentioned above, for several promising follow-on projects.

Furthermore, after achieving the development and social implementation of these engines, the company has decided to construct a new plant with the support of a subsidy project by the Ministry of the Environment and the Ministry of Land, Infrastructure, Transport and Tourism through the GX Economic Transition Bonds.

The new plant, which is scheduled for completion in 2028, will expand the production of ammonia fuel engines (in the product mix with fuel oil engines) and promote the spread and expansion of zero-emission ships.

“J-ENG, as a first mover of next-generation fuel engines, will contribute to the development of the Japanese shipping and shipbuilding industries through the early launch and expansion of these engines, and at the same time, contribute to the reduction of greenhouse gases (GHG) in international shipping and the achievement of carbon neutrality by 2050,” the company said on its website.

Photo credit: Japan Engine Corporation
Published: 23 April, 2025