Business

ENGINE: Americas Bunker Fuel Availability Outlook

Bunker supply improves in Houston area; bad weather still disrupting GOLA bunkering; VLSFO and LSMGO supply normal in Zona Comun.

Published

10 months ago

February 10, 2023

Admin

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:

Bunker supply improves in Houston area
Bad weather still disrupting GOLA bunkering
VLSFO and LSMGO supply normal in Zona Comun

North America

VLSFO and LSMGO availability has improved in the Houston area and bunker locations off the US Gulf Coast. A lead time of 3-5 days is generally recommended, down from last week’s 5-8 days.

But securing stems for very prompt dates (0-3 days) can be harder in Houston as some suppliers have packed delivery schedules, a source says. Demand for prompt stems has been slower this week, while many buyers have been rushing to secure bunkers for dates further out.

On 28 January, Valero’s 255,000 b/d nameplate capacity Houston refinery started a 35-day turnaround period for four processing units, according to market intelligence provider Industrial Info Resources (IIR). The refinery produces bunker fuels, ultra-low sulphur diesel, gasoline and other products.

Valero was unable to comment on the refinery maintenance when ENGINE reached out to. However, sources have informed that Valero has been offering VLSFO and LSMGO grades as normal in the Houston bunker market in recent days, a source said.

VLSFO and LSMGO availability is said to be normal in the East Coast port of New York. Recommended lead times are about four days for both grades.

Rough weather continues to disrupt bunkering in the Galveston Offshore Lightering Area (GOLA). Most suppliers have pulled back prompt offers due to intermittent bad weather conditions, a trader says.

GOLA is currently experiencing wind gusts of 25 knots, with winds forecasted to intensify to gale-force on Friday and Saturday.

All grades remain tight for prompt delivery dates in the West Coast ports of Long Beach and Los Angeles. A long lead time of at least 10-12 days is generally recommended for VLSFO and LSMGO. But some suppliers can supply LSMGO stems of 500 mt or less in Long Beach with shorter lead times.

Bunker fuel availability remains normal in Mexico’s Manzanillo. Recommended lead times are about five days for HSFO, VLSFO and LSMGO.

Caribbean and Latin America

Securing VLSFO and LSMGO for very prompt dates (0-3 days) can be possible in Panama’s Balboa and Cristobal, but these offers are generally quoted on a subject to enquiry basis, a source says. However, securing larger quantities of 500 mt or above can be difficult on a very prompt basis.

Certain suppliers can deliver VLSFO stems in Balboa with lead times of 6-7 days, while LSMGO stems can be delivered within three days. Another supplier's earliest delivery date is 13 days out in Balboa. And yet another will need a lead time of four days to deliver in Cristobal.

The low sulphur grades are also tight with a supplier in Jamaica's Kingston, which has its earliest delivery date 11-12 days out.

VLSFO and LSMGO availability is normal for deliveries in Trinidad. Very prompt deliveries with a lead time of 2-3 days are possible in the port.

Availability is also normal for deliveries at Argentina’s Zona Comun anchorage. One supplier requires four days of lead time to deliver VLSFO and LSMGO stems. However, strong wind gusts are forecast in Zona Comun and could disrupt bunker deliveries over the weekend.

By Nithin Chandran and Debarati Bhattacharjee

Photo credit and source: ENGINE
Published: 10 February, 2023

Methanol

China: Cosco Shipping and bp to explore collaboration in methanol bunker fuel

Duo signed a MoU in Shanghai to expand their scope of strategic cooperation into new areas including lubricant supply, methanol bunker fuel supply for bunkering and offshore wind supply chain.

Published

6 hours ago

December 11, 2023

Admin

China: Cosco Shipping and bp to explore collaboration into methanol bunker fuel

Cosco Shipping on Thursday (7 December) said it has signed a Memorandum of Understanding (MoU) with bp to expand their scope of strategic cooperation into new areas on 5 December in Shanghai.

“This includes Castrol Marine lubricants and hydrocarbons transportation, offshore equipment as well as exploring collaboration opportunities in areas such as methanol supply for bunkering and offshore wind supply chain,” Cosco said.

“Together, both parties will further capitalize on the business advantages of both parties, enhance synergies, and achieve complementary advantages and common development.”

William Lin, bp Group Executive Vice President, and Lin Ji, Executive Vice President of COSCO SHIPPING, witnessed the signing. Simon Yang, bp Group Senior Vice President and bp China President, and Chen Wei, Deputy Head of the Operations Division of COSCO SHIPPING, signed the document on behalf of the two parties.

Cosco said bp has been operating in China since the early 1970s and is one of the leading foreign-invested companies in China’s energy industry.

“bp and Cosco Shipping have a longstanding history of cooperation, including the transportation of energy products, offshore equipment manufacturing services, and the supply of marine fuels and lubricants,” it added.

Photo credit: Cosco Shipping
Published: 11 December, 2023

Methanol

Maersk to deploy first large methanol-powered vessel on Asia-Europe trade lane in 2024

Ship will enter service on the AE7 string connecting Asia and Europe, which includes port calls in Shanghai and Tanjung Pelepas in Malaysia, with Ningbo in China, being its first destination.

Published

6 hours ago

December 11, 2023

Admin

Maersk to deploy first large methanol-powered vessel on Asia-Europe trade lane in 2024

A.P. Moller - Maersk (Maersk) on Thursday (7 December) said it was about to launch the first of its 18 large methanol-enabled vessels currently on order.

On 9 February 2024, the ship will enter service on the AE7 string connecting Asia and Europe, which includes port calls in Shanghai, Tanjung Pelepas, Colombo and Hamburg, with Ningbo, China, being its first destination.

“The container vessel built by Hyundai Heavy Industries (HHI) in South Korea has a nominal capacity of 16,000 containers (TEU) and is equipped with a dual-fuel engine enabling operations on methanol as well as biodiesel and conventional bunker fuel,” the firm said.

Maersk added it has secured sufficient green methanol to cover the vessel’s maiden voyage and continues to work diligently on 2024-25 sourcing solutions for its methanol-enabled vessel fleet.

“Deploying the first of our large methanol-enabled vessels on one of the world’s largest trade lanes, Asia - Europe, is a landmark in our journey towards our Net-Zero target. With the vessel’s capacity of 16,000 containers, this will make a significant impact in our customers’ efforts to decarbonise their supply chains, and we are looking forward to introducing more methanol-enabled vessels on this and other trades during 2024,” Karsten Kildahl Chief Commercial Officer at Maersk, said.

Ahead of its deployment, the vessel will be named at the shipyard in end January 2024. The following two sister vessels will be deployed in the first half of 2024 with naming events taking place in Yokohama, Japan, and Los Angeles, USA. Maersk said it was expected to take delivery of four additional sister vessels in the second half of 2024.

At the time of deployment of the first large vessel, it will be the only second container vessel in the world that can sail on green methanol, the first being the feeder vessel Laura Maersk which entered service in September this year.

Overview of Maersk vessels on order

Maersk has 24 container vessels on order
All vessels currently on order will be equipped with dual-fuel engines and will be able to operate on green methanol
12 of the vessels on order have a capacity of 16,000 TEU (Twenty-foot Equivalent Unit containers)
6 of the vessels on order have a capacity of 17,000 TEU
6 of the vessels on order have a capacity of 9,000 TEU
Since 2021, Maersk has had a policy of only ordering new vessels able to operate on green fuels

About Maersk’s AE7 service string

The AE7 string connects Asia and Europe through the Suez Canal
The AE7 string has the following port calls: Ningbo, Shanghai, Nansha, Yantian (all China), Tanjung Pelepas (Malaysia), Colombo (Sri Lanka), Port Tangiers (Morocco), Felixstowe (UK), Hamburg (Germany), Antwerp (Belgium), London Gateway (UK), Le Havre (France), Port Tangiers, Jeddah (Saudi Arabia), Abu Dhabi (UAE) and Jebel Ali (UAE)

Photo credit: A.P. Moller - Maersk
Published: 11 December, 2023

VLSFO

ENGINE: Petrobras’ new bunker price mechanism adds to Brazil market shake-up

With a new pricing mechanism now in place since 1 November, Petrobras bunker prices can change anytime throughout the day and final prices will depend on enquiries, a source says.

Published

6 hours ago

December 11, 2023

Admin

Since Brazilian petroleum firm and bunker supplier Petrobras shifted from posted bunker prices to indicative prices, Santos’ VLSFO discounts to Brazilian and foreign ports have narrowed.

Petrobras started issuing indicative bunker prices for Brazilian ports on 1 November, shifting from its usual pricing mechanism of posted prices. These posted prices were mostly fixed in nature, and did not tend to change despite movements in underlying crude values.

With a new pricing mechanism now in place, Petrobras bunker prices can change anytime throughout the day and final prices will depend on enquiries, a source says. The new pricing has been reflected in Brazilian bunker price dynamics.

Santos’ VLSFO price discount to Zona Comun’s VLSFO has come down from peak levels of $50/mt in September to around $35/mt in October and November and has further slid to just $4/mt.

VLSFO prices have also changed rapidly between Brazilian ports in recent weeks. Rio Grande’s VLSFO premium over Santos momentarily shrunk from nearly $40/mt in November to just $8/mt earlier this week, but then widened back to $42/mt.

Some argue that Petrobras decided to change the pricing mechanism because of the rise in competition in the Brazilian market. In recent months, several suppliers such as Ipiranga and Bunker One have expanded their Brazilian bunker operations, offering new grades and entering new ports in Brazil. Raizen also started VLSFO supply in the port of Itaqui and São Luiz in July this year.

Another source says that competition is mostly between Brazilian ports - as opposed to with foreign ports. Ships calling in Brazil will be able to pick and choose bunker-only ports with the best offers. Meanwhile, those vessels calling in Argentina will ideally pick bunkers from Zona Comun rather than Brazilian ports, the source adds.

By Nithin Chandran

Source: ENGINE
Photo credit: Gabriel Martins on Unsplash
Published: 11 December, 2023