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ENGINE: East of Suez Bunker Fuel Availability Outlook (16 Jan 2024)

VLSFO availability remains tight in Singapore; VLSFO and LSMGO tight in several Chinese ports; LSMGO availability good in Omani ports.

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RESIZED ENGINE East of Suez

The following article regarding regional bunker fuel availability outlook for the East of Suez region has been provided by online marine fuels procurement platform ENGINE for publication on Singapore bunkering publication Manifold Times:

  • VLSFO availability remains tight in Singapore
  • VLSFO and LSMGO tight in several Chinese ports
  • LSMGO availability good in Omani ports

Singapore

Prompt VLSFO availability remains tight in Singapore amid strong demand for the grade. At least eight suppliers are grappling with tight delivery schedules, which has added to the supply pressure. Lead times for VLSFO have increased from 9-13 days last week, to 8-17 days now. In contrast, HSFO maintains lead times of 7-10 days, while LSMGO requires a shorter 3-8 days lead time.

Singapore sold about 51.27 million mt of conventional bunker fuels in 2023 - the highest yearly volumes since 2013, according to preliminary figures from the Maritime and Port Authority of Singapore. This increase is attributed to the increase in number of vessels arriving for bunkers in 2023.

Total bio-bunker sales touched 524,000 mt in 2023, an increase from 140,000 mt in 2022.

Looking at the fuel stock situation in Singapore, residual fuel oil stocks have averaged 10% higher this month compared to December, according to Enterprise Singapore's data. In contrast, middle distillate stocks have seen a 13% decrease so far in January.

China and East Asia

In Zhoushan, VLSFO availability remains tight due to a lack of product supply available with suppliers and delays in the arrival of resupply cargoes. This has stretched lead times to seven days for the grade.

The other two grades - LSMGO and HSFO - remain more readily available with shorter lead times of 3-5 days.

In Dalian, VLSFO and LSMGO supply has tightened, and all three bunker grades are under pressure in nearby Tianjin, with deliveries subject to inquiry. Qingdao is experiencing tight prompt availability of VLSFO and LSMGO, while HSFO supply is subject to firm inquiry.

The southern Chinese ports of Shanghai and Xiamen are facing tight availability for VLSFO and LSMGO, while HSFO availability is constrained in Shanghai. Guangzhou is grappling with a tight supply for both VLSFO and LSMGO, and in Fuzhou, both grades are subject to inquiry. Meanwhile, bunker supply is relatively better in Yangpu.

Hong Kong is also facing a shortage of stocks amid high demand, pushing lead times to almost two weeks now. Bad weather conditions are forecast on Wednesday and may disrupt bunker operations in the port.

In South Korean ports, VLSFO and LSMGO supply has been tight, despite slower demand this week. Recommended lead times vary widely between 4-9 days for both grades in South Korean ports.

High winds and waves are expected to impact bunkering in the South Korean ports of Ulsan, Onsan, Busan, Daesan, Taean, and Yeosu between 18-21 January, potentially affecting bunker deliveries.

In Japan, sluggish bunker demand due to cold weather conditions is observed, with varying lead times across ports. Lead times of 7-8 days are recommended in Tokyo and Chiba, 7-8 days in Osaka and Kobe, and longer 10-11 days in Oita. The harsh winter has led Japanese refineries to redirect their supply towards heating demand, resulting in reduced availability for bunkers.

All grades remain in tight availability in Nagoya, Yokkaichi and Mizushima.

Adverse weather conditions are forecast in Subic Bay (Philippines) between 16-17 January and intermittently in Ho Chi Minh and Hai Phong (Vietnam) between 17-21 January, posing potential challenges for bunker deliveries.

South Asia

Kandla, situated on India's northwest coast, has good availability of VLSFO and LSMGO, with prompt supply available. However, several other Indian ports, including Mumbai, Cochin and Chennai, are grappling with supply challenges for both grades.

Suppliers in Visakhapatnam, Paradip and Haldia have nearly depleted their VLSFO and LSMGO stocks, a source says.

Middle East

Persistent attacks on commercial ships in the Red Sea have prompted several shipping companies to reroute vessels via the southern tip of Africa rather than the shorter Suez Canal route. Despite concerns in the Red Sea, Fujairah continues to witness an uptick in demand.

This has kept prompt availability tight for all grades in Fujairah. Most suppliers are recommending lead times of 7-10 days.

A similar scenario is observed in the UAE port of Khor Fakkan, where lead times of 7-10 days are recommended for all fuel grades. On the other hand, LSMGO remains readily available for prompt supply in nearby Omani ports, including Sohar, Salalah, Duqm, and Muscat.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 17 January 2024

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LNG Bunkering

Singapore: MPA launches EOI to expand LNG bunkering services amid growing demand

MPA is seeking proposals to explore scalable solutions for sea-based LNG reloading to complement existing onshore LNG bunkering storage and jetty capacities and e/bio-methane supply as a marine fuel.

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RESIZED SG bunker tanker

The Maritime and Port Authority of Singapore (MPA) has launched an Expression of Interest (EOI) to explore scalable solutions for sea-based liquefied natural gas (LNG) reloading to complement the existing onshore LNG bunkering storage and jetty capacities and the supply of e/bio-methane as marine fuel in the Port of Singapore.

MPA said LNG bunkering in Singapore has grown from 16,000 tonnes delivered in 2022 to over 385,000 tonnes delivered from January to October 2024. 

According to the EOI, demand for LNG bunkering is expected to grow further with a growing global fleet of LNG dual-fuelled vessels and competitive LNG bunker prices. 

“The EOI seeks to gather proposals on three areas: to scale up sea-based reloading operations, including ship-to-bunker barge LNG operations; to facilitate the supply of LNG alternatives such as liquefied bio-methane; and to develop floating platform concepts to enhance bunkering safety and efficiency,” MPA added.

“The EOI proposals should also include mitigation measures to address the issue of methane slip on a well-to-wake basis.”

Participants in the EOI do not need to be an existing LNG bunkering licensee. Participants are required to propose models for operationalising sea-based LNG reloading starting from 2025. Participants selected will be required to conduct trials in Singapore to validate the proposed solution’s operational feasibility and safety. 

“Insights gained from the EOI and trials will inform MPA’s review of the LNG licensing framework, including enhancements to supply to better serve the industry’s bunkering needs,” it said. 

Note: Interested parties can visit the MPA website for details and submission guidelines. Proposals must be submitted by 28 February 2025, 1pm (Singapore time).

 

Photo credit: Manifold Times
Published: 13 December, 2024

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LNG Bunkering

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Firm will supply cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel currently being built at Nantong CIMC Sinopacific Offshore & Engineering shipyard in China.

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Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Wärtsilä Gas Solutions, part of technology group Wärtsilä, on Friday (13 December) said it has won a contract to supply Cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel.

The vessel is being built at the Nantong CIMC Sinopacific Offshore & Engineering shipyard in China, for global energy company Vitol.

“Wärtsilä’s ability to engineer, design and deliver a complete system, including the Boil-Off Gas (BOG) management, integrated fuel supply, custody transfer and bunkering transfer systems, was central to the contract award,” Wärtsilä said, adding the order was booked by the company in Q4, 2024. 

Richie Zhu, Sales Manager, Wärtsilä Gas Solutions, China, said: “LNG is today an important marine fuel and is rapidly becoming the preferred choice for owners and operators seeking more sustainable fuel options. The market for LNG bunkering vessels is increasing in line with this trend, and we have established a leading position in supplying modern and reliable systems that optimise overall cargo handling efficiency for such vessels.”

Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

The time charter agreement with Avenir is for one newbuild 20,000 m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total. 

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Related: Vitol secures LNG bunker vessel trio with time charter deal and newbuilding order

 

Photo credit: Wärtsilä
Published: 13 December, 2024

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Newbuilding

UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

Vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from CIMC Raffles Offshore Engineering.

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UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

United European Car Carriers (UECC) on Wednesday (11 December) said it has further expanded its fleet of eco-friendly car carriers with the addition of the dual-fuel LNG newbuild Blue Aspire.

The vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from a Chinese shipyard.

The 200-metre long Pure Car and Truck Carrier (PCTC), delivered from CIMC Raffles Offshore Engineering, has capacity for nearly 7000 vehicles on 12 cargo decks.

UECC will operate the vessel together with another five vessels on a route between the Mediterranean and Northern Europe, traversing the Turkish ports of Yenikoy and Autoport, the German port of Cuxhaven, and Zeebrugge, Belgium every 4.5 days.

“Deployment of the Blue Aspire will boost tremendously capacity and sailing frequency on this busy trade route, currently serviced by five vessels, while further enhancing the sustainability of the UECC fleet,” said the company’s COO Per Christian Mørk.

The latest fleet addition will increase to six the number of UECC-operated vessels plying the North-South network, taking in a total of 10 ports on two routes, after the recent deployment of the renamed Auto Way that was acquired by UECC’s joint owner Wallenius Lines from Höegh Autoliners earlier this year.

It will also boost the size of UECC’s owned and chartered fleet to 15 PCTCs, including five dual and multi-fuel LNG vessels - three with battery hybrid capability - delivered in the past decade, with another two multi-fuel LNG newbuilds currently on order that are set for delivery in 2028 and options for two similar units.

“We are expanding our fleet with greater capacity and cargo-carrying flexibility to provide a more efficient service for clients in response to increasing demand as we see longer-term growth potential in this market,” Mørk explained.

Mørk said sustainability is now a key priority in procurement of maritime transport services to meet the environmental goals of vehicle manufacturers amid new green regulations - including FuelEU Maritime and the EU ETS - that provide a commercial incentive to reduce the cost of GHG emissions.

“UECC is catering to this market requirement with an eco-friendly fleet geared to minimizing the environmental footprint of vessel operations with progressive reductions in carbon intensity, in line with regulation, through adoption of energy-efficient technologies and alternative fuels,” he says.

Mørk noted that, while LNG can reduce emissions by around 25% compared with conventional fossil fuels, there is potential to greatly enhance environmental performance on LNG-fuelled vessels like Blue Aspire by switching to liquefied biomethane (LBM) that offers net-zero potential.

UECC is now increasing application of the latter fuel on its dual-fuel LNG PCTCs after recently securing an LBM supply agreement with Titan Clean Fuels that is forecast to cut its overall fleet emissions by 75,000 tons in 2025.

“The Blue Aspire therefore represents a valuable addition to the UECC fleet that underpins our market commitment to sustainability, while contributing to decarbonization of shipping,” Mørk concludes.

Related: Titan to supply biomethane bunker fuel to UECC multi-fuel ships with new deal

 

Photo credit: United European Car Carriers
Published: 13 December, 2024

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