Bunker Fuel

ENGINE: East of Suez Bunker Fuel Availability Outlook (23 April 2024)

Bunker supply is good in South Korean ports; steady VLSFO and LSMGO supply across several Australian ports; bunker demand dips in Fujairah.

Published

5 months ago

April 24, 2024

Admin

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:

Bunker supply is good in South Korean ports
Steady VLSFO and LSMGO supply across several Australian ports
Bunker demand dips in Fujairah

Singapore and Malaysia

Lead times for VLSFO in Singapore have shown significant fluctuations in recent weeks. Currently, most suppliers are suggesting up to 10 days for the grade, while some can accommodate stems within six days.

Prompt HSFO availability in Singapore has improved, with recommended lead times now ranging between 6-10 days, down from 8-14 days last week. For LSMGO, lead times vary widely between 2-8 days in Singapore.

According to Enterprise Singapore's latest data, Singapore's residual fuel oil stocks have averaged 3% higher so far this month compared to March. Despite a 13% decline in the port's net fuel imports this month, the port's fuel oil stocks have remained steady at 21 million bbls. Fuel oil imports in the port have decreased by 334,000 bbls this month, while fuel oil exports have increased by 190,000 bbls. Singapore's middle distillate stocks have also risen by 3% this month to multi-month highs of 10.67 million bbls.

Prompt bio-bunker availability is tight in Singapore, according to two sources.

At Malaysia's Port Klang, VLSFO and LSMGO remain in abundant supply, with some suppliers able to arrange prompt deliveries for smaller quantities. However, the availability of HSFO is tight due to the limited supply available with suppliers.

China, East Asia and Oceania

Tight barge availability has constrained the supply of all grades in Zhoushan, with suppliers suggesting lead times of around 4-8 days for VLSFO and LSMGO, and 6-7 days for HSFO.

In the Taiwanese ports of Hualien, Kaohsiung, Taichung, and Keelung, VLSFO and LSMGO remain readily available amid normal bunker demand. Lead times of about two days are recommended for the grades – almost unchanged from last week.

All grades of bunker fuel are readily available in Hong Kong, with lead times of seven days recommended. Adverse weather conditions are forecast to impact Hong Kong on Friday, which could potentially impact deliveries.

In South Korean ports, all bunker grades remain readily available. Most suppliers are advising lead times of 4-5 days for all grades, which is similar to last week. Rough weather conditions are forecast intermittently throughout this week, which could affect bunker deliveries in the South Korean ports of Ulsan, Onsan, Busan and Yeosu.

In the ports of Kwinana and Fremantle in Western Australia, VLSFO and LSMGO supply is good. Lead times of 7-8 days are recommended in both ports. Heading to Sydney in New South Wales, LSMGO is readily available, while HSFO availability is restricted.

In Victoria, Melbourne has abundant VLSFO and LSMGO stocks, and Geelong also has ample availability of VLSFO. Nevertheless, prompt HSFO supply faces challenges in both Melbourne and Geelong. Moving to Queensland, both the ports of Brisbane and Gladstone boast sufficient stocks of VLSFO and LSMGO, with suggested lead times of 7-8 days. HSFO availability remains limited in Brisbane.

Unfavourable weather conditions are forecasted in the Thai port of Koh Sichang until Wednesday and the Vietnamese port of Hai Phong until Saturday, as well as in the Kiwi port of Tauranga until Friday. Bad weather could make bunker deliveries difficult in these ports.

South Asia

VLSFO and LSMGO availability continues to be limited in Indian ports, with the majority of suppliers facing supply shortages.

Ports including Mumbai, Kandla, Tuticorin, Chennai, Cochin, Visakhapatnam, Haldia, and Paradip are experiencing shortages of VLSFO and LSMGO, resulting in uncertain delivery schedules depending on availability.

On the flipside, the Sri Lankan port of Trincomalee has ample VLSFO, LSMGO and HSFO supply available.

Middle East

Bunker demand in Fujairah has reduced after a slight increase last week, but prompt availability of all grades remains limited due to backlogs caused by recent adverse weather conditions. Suppliers are recommending unchanged lead times of 7-10 days across all grades. Similar lead times are advised in the UAE port of Khor Fakkan.

In Saudi Arabia's Jeddah port, VLSFO and LSMGO supply remains good. However, in Djibouti, some suppliers are facing VLSFO shortages, while LSMGO supply is normal there.

LSMGO is readily available in Omani ports such as Sohar, Salalah, Muscat, and Duqm.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 24 April 2024

Up Next

Argus Media: USGC LNG-VLSFO discount to steady itself

Don't Miss

‘Big opportunity’ for bunker traders, suppliers on upcoming FuelEU regulation, forecasts OceanScore

Biofuel

Argus Media: Bunkering sector needs deeper dive into B24 bio bunker fuel market

‘As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector,’ says Mahua Chakravarty of Argus.

Published

16 hours ago

October 4, 2024

Admin

Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Ahead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:

MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?

B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.

It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.

B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).

As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.

MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?

Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.

We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.

This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.

MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?

The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.

As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.

We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.

The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.

Participants are encouraged to register for the free event via the custom link here.

Photo credit: Argus Media
Published: 4 October 2024

Bunker Fuel

Brazil: Raízen launches new bunkering operation in Itaqui

Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.

Published

16 hours ago

October 4, 2024

Admin

Brazil: Raízen launches new bunkering operation in Itaqui

Brazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).

The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).

“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.

In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.

Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).

Photo credit: Raízen
Published: 4 October, 2024

Business

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

Oberholtzer, a finance executive with over 25 years of experience, joins Infineum from Shell, where he has held various senior positions including Senior Vice President of Shell Finance for Chemicals and Products.

Published

16 hours ago

October 4, 2024

Admin

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

International fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.

Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.

Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.

During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.

In 2011, he joined Shell’s Mergers and Acquisitions team in the U.S., leading key projects such as the launch of Shell Midstream Partners and the Eagle Ford divestment. He subsequently managed finance teams in Trading & Supply, covering European Gas & Power, Global Crude, and Global Products & Operations.

Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”

Photo credit: Infineum
Published: 4 October, 2024