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ENGINE: Americas Bunker Fuel Availability Outlook

LSMGO tight in NOLA; VLSFO and LSMGO readily available in Balboa; VLSFO supply tight in Paranagua.

Published

2 years ago

August 4, 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:

3 August 2023

LSMGO tight in NOLA
VLSFO and LSMGO readily available in Balboa
VLSFO supply tight in Paranagua

North America

Demand for all fuel grades has remained good in Houston this week. Availability of VLSFO and LSMGO for prompt dates is normal in the port, with lead times of 3-4 days advised. A few suppliers are also able to offer HSFO stems for prompt delivery dates there.

LSMGO and VLSFO prices have shot up in Houston partly due to the high cost of replenishment cargoes, a source says. It is likely that bunker fuel blenders' access to fuel oil supply has been limited as a result of an increase in summer demand from the power sector.

The US fuel oil supply, or implied demand increased by a massive 64% in July, from an average of 169,000 b/d in June to nearly 277,000 b/d in July, according to data from the Energy Information Administration (EIA).

VLSFO and LSMGO availability is normal in Beaumont. One supplier is able to offer both fuel grades with a lead time of three days. Demand has been low in Bolivar Roads this week. Availability is normal for prompt delivery dates.

Availability of VLSFO and LSMGO is normal for prompt dates in the Galveston Offshore Lightering Area (GOLA), a source says. Most suppliers can deliver HSFO stems with a longer lead time of 5-7 days. The offshore area is forecast to experience favourable weather conditions through this week, which would allow smooth bunker deliveries there.

Most suppliers can offer VLSFO for prompt dates at the New Orleans Outer Anchorage (NOLA) with a recommended lead time of 3-5 days. Availability of LSMGO can be tight there, but prompt deliveries are possible on a subject to enquiry basis.

LSMGO prices in the West Coast ports of Long Beach and Los Angeles have spiked this week. However, a few suppliers are able to offer the fuel grade within seven days in the ports. VLSFO can be available with a shorter lead time of 5-6 days due to low demand in the ports.

Demand for VLSFO and LSMGO in the East Coast port of New York has improved for prompt dates this week. Availability is also good, and most suppliers are able to deliver stems with a lead time of 3-4 days. For HSFO, there has been more demand for delivery dates further out.

Caribbean and Latin America

Some suppliers in Panama's Balboa port can supply VLSFO and LSMGO for very prompt delivery dates. One supplier is able to deliver stems for both fuel grades immediately. HSFO stems can also be secured with a longer lead time of 6-7 days. In Cristobal, one supplier can deliver VLSFO and LSMGO stems with a lead time of three days.

Prompt availability of VLSFO and LSMGO remains normal off Trinidad.

VLSFO and LSMGO demand has picked up for delivery dates further out in Jamaica’s Kingston. Most suppliers are able to offer these stems.

Bunker operations have been running smoothly at Zona Comun anchorage in Argentina. Calmer weather is forecast over the weekend. However, strong winds of up to 28 knots are again expected to hit the region from Monday onwards, which could delay bunkering or trigger a suspension there. Some suppliers are not quoting for prompt stems as they fear potential delays in barge product loadings and deliveries over the next week, a source says.

Currently, few suppliers can deliver VLSFO and LSMGO stems in Zona Comun with a lead time of 6-7 days.

Prompt availability of VLSFO remains tight in Brazilian ports. One supplier requires at least eight days of lead time to deliver VLSFO stems in Brazil’s Paranagua. Demand for VLSFO and LSMGO stems has been low in other Brazilian ports like Rio Grande, Rio de Janeiro and Santos.

By Debarati Bhattacharjee

Photo credit and source: ENGINE
Published: 4 August, 2023

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Alternative Fuels

SMW 2025: Singapore to launch new standard for electric harbour craft this week

MPA and Enterprise Singapore will launch the Technical Reference 136 to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft, says minister.

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SMW 2025: Singapore to launch new standard for electric harbour craft this week

Minister of State for Transport Murali Pillai on Monday (24 March) said Singapore will launch a new standard for electric harbour crafts this week as part of Maritime and Port Authority of Singapore’s (MPA) efforts in facilitating decarbonisation for domestic harbour craft to achieve the republic’s national target of net-zero emissions by 2050.

“MPA and Enterprise Singapore will launch the new Technical Reference 136 this week to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft,” Murali said during his speech at the opening ceremony of the Singapore Maritime Week 2025 (SMW 2025).

“This will enhance the safety and interoperability of electric harbour craft charging infrastructure.”

This is one of the initiatives MPA is undertaking to prepare for the bunkering of alternative marine fuels and decarbonising Singapore’s domestic maritime sector.

The minister said Singapore is taking steps to support the use of various fuels by the industry and position Singapore as a leading bunkering hub for alternative fuels.

“Over the past two years, we have supported trials of alternative fuels such as ammonia and methanol. These have contributed to the development of new technical references and IMO guidelines to enable the safe and efficient use of these marine fuels,” he said.

“MPA and Enterprise Singapore published the new Technical Reference 129 on Methanol Bunkering earlier this month, and we plan to launch a new standard for ammonia bunkering later this year.”

He added MPA has also recently allowed licensed bunker tankers to carry and deliver biofuels up to B30.

“Pilots for up to B100 are ongoing, and we welcome bunker suppliers to engage in these pilots,” he said.

At the opening ceremony of SMW 2025, Senior Minister Lee Hsien Loong, together with Murali, also launched Singapore’s first Maritime Digital Twin, an advanced simulation model developed by MPA in partnership with the Government Technology Agency of Singapore (GovTech) that integrates real-time data to enhance decision-making and improve management of maritime operations in Singapore waters.

Murali said the digital twin will integrate data from different sources and provide a platform for information sharing. This will enable the development of tools to optimise port efficiency and reliability above, at and below the sea surface.

“For example, the digital twin will enable scenario simulations and dispersion modelling, which can inform standard operating procedures for the safe bunkering of alternative fuels such as methanol and ammonia,” he said.

The minister added MPA will roll out the digital twin to pilot users later this year, before progressive implementation for the wider industry.

“In future, we can extend this to the global maritime ecosystem through our Green and Digital Shipping Corridors with other countries and ports,” he said.

Photo credit: Maritime and Port Authority of SingaporePublished: 24 March, 2025

Alternative Fuels

TFG Marine welcomes first of four ‘L’ series IMO type II bunkering tankers of Consort Bunkers

TFG Marine to operate Consort Bunkers’ bunkering tanker “Pearl Lavender”, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, at Singapore port from April onwards.

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TFG Marine welcomes first of four 'L' series IMO type II bunkering tankers of Consort Bunkers

Global marine fuel supply and procurement firm TFG Marine on Friday (21 March) said it attended the delivery ceremony of bunker tanker Pearl Lavender at China Merchants Jinling shipyard in Nanjing.

The IMO type II chemical bunkering tanker newbuilding is amongst others under long-term time charter from Singapore-based bunker supplier and logistics services provider Consort Bunkers Pte Ltd (Consort).

"This state of the art vessel, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, will be operational at the Port of Singapore from April 2025, further advancing our product offering to our client base in the APAC region," said TFG Marine.

"As the first of four barges in this order, this investment builds on our commitment to low-carbon fuel bunkering infrastructure, reinforcing our vision for a multi-fuel future.

"With methanol, biofuels, ammonia, and other alternative fuels playing an increasingly significant role alongside traditional marine fuels, we continue to support the industry's transition towards cleaner energy solutions."

Manifold Times previously reported that Consort first contracted six ‘L’ series 6,500 dwt IMO Type II bunker tankers with China Merchants Jinling Shipyard (Nanjing) Co., Ltd. in April 2023.

The ‘L’ series of bunker tanker newbuildings gained recognition from the China Association of The National Shipbuilding Industry (CANSI) as amongst the Chinese shipbuilding sector’s top 10 innovative vessels for 2024.

Last year, TFG Marine announced the signing of a long-term time charter agreement with Singapore-based bunker supplier and logistics services provider Consort Bunkers for four newbuild bunker tankers.

Photo credit: TFG Marine
Published: 24 March, 2025

Sanctions

US OFAC sanctions first Chinese teapot refinery and oil tankers over Iranian links

Shandong Shouguang Luqing Petrochemical and its chief executive officer were added to OFAC’s sanctions list for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil.

Published

6 hours ago

March 24, 2025

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The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday (20 March) sanctioned a “teapot” oil refinery and its chief executive officer for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil, including from vessels linked to Ansarallah, commonly known as the Houthis, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL).

Shandong Shouguang Luqing Petrochemical Co., Ltd (Luqing Petrochemical), a teapot refinery in Shandong Province, has purchased millions of barrels of Iranian oil worth approximately half a billion dollars.

Luqing Petrochemical received Iranian oil transported by shadow fleet vessels, some of which have been sanctioned for their role transporting Iranian petroleum linked to the Houthis and MODAFL, including the MEHLE (IMO: 9191711) and the KOHANA (IMO: 9254082). In mid-2022, Luqing Petrochemical was identified as a buyer of Iranian oil associated with the Iranian military and Iranian military forces.

Luqing Petrochemical is being designated pursuant to E.O. 13902 for operating in the petroleum sector of the Iranian economy. PRC national Wang Xueqing serves as the chief executive officer and legal representative of Luqing Petrochemical, and is being concurrently designated pursuant to E.O. 13902 for having acted or purported to act for or on behalf of, directly or indirectly, Luqing Petrochemical.

“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” said Secretary of the Treasury Scott Bessent.

“The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”

OFAC additionally imposed sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil, comprising part of Iran’s “shadow fleet” of tankers supplying teapot refineries like Luqing Petrochemical.

Iranian crude oil is transported to teapot refineries via a “shadow fleet” of vessels that usually engage in deceptive shipping practices, including automatic identification system (AIS) manipulation.

OFAC sanctioned eight vessels that constitute part of this fleet, including the Comoros-flagged NATALINA 7 (IMO: 9310147), Panama-flagged CATALINA 7 (IMO: 9310159), AURORA RILEY (IMO: 9181649), and VIOLA (IMO: 9254915), San Marino-flagged MONTROSE (IMO: 9281695), Barbados-flagged VOLANS (IMO: 9422988) and BRAVA LAKE (IMO: 9232876), and the currently unflagged TITAN (IMO: 9293741).