Connect with us

Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

VLSFO supply continues to be tight in Singapore, keeping its price at slight premiums over other key ports like Zhoushan and Fujairah.

Admin

Published

on

post 49344

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:

5 January, 2022

  • Fuel oils tight in key ports
  • Fujairah hit by rough weather
  • China ups low sulphur fuel oil quotas

VLSFO supply continues to be tight in Singapore, keeping its price at slight premiums over other key ports like Zhoushan and Fujairah.

The earliest delivery date for VLSFO and HSFO380 stems in Singapore is 10-12 days ahead, compared to 5-6 days for the more ample LSMGO grade. HSFO380 continues to be tight as fewer suppliers offer it, while VLSFO supply has been squeezed partly as a result of fewer cargo inflows.

Singapore’s net fuel oil imports – which include both high and low sulphur grades - fell by 30% on the month in December and contributed to draw stock levels down to their lowest in three months, Enterprise Singapore data showed last week.

Gale-force winds hit Fujairah from the west on Tuesday, delaying some bunker operations and incoming cargo replenishments. The winds are set to normalise briefly on Wednesday before intensifying towards a peak of 37 knots on Thursday.

Bunker fuel availability was already tight in the UAE port, especially HSFO380. The earliest delivery date for the high sulphur grade is about 12 days ahead, compared to nine days for VLSFO and LSMGO stems.

A shortage of VLSFO cargo volumes in Fujairah has made barge loading schedules more unpredictable, sources say. Most suppliers are unwilling to commit to bigger stems, pushing up price premiums for larger quantities.

In Zhoushan, bunker fuel availability is mixed. VLSFO and HSFO380 grades are tight with suggested lead times of up to seven days. LSMGO availability is normal and prompt product is readily available.

Meanwhile, restrictions on container handling have been implemented in in Zhoushan’s adjoining port of Ningbo after a rise in Covid-19 cases, a source says.

China’s Ministry of Commerce has allocated 30% more low sulphur fuel oil for export in the first allotment of quotas for this year than it did last year, Reuters reports. The fuel will mostly end up in Zhoushan and other Chinese bunker ports and be sold for “export” as duty-free bonded bunkers.

Five suppliers were awarded quotas, with state-run Sinopec taking over 60% of the total. China recently allowed suppliers in Guangzhou and Shenzhen to supply bonded bunker fuels in a move to grow them as more competitively priced bunker ports - as it has with Zhoushan in recent years.

All fuel grades remain tight in South Korean ports. The earliest delivery date for VLSFO in the country’s southern Busan, Ulsan and Yeosu ports has been pushed back to 11-13 days out.

 

Photo credit: ENGINE
Published: 5 January, 2022

Continue Reading

Alternative Fuels

SMW 2024: All hands on deck to overcome net-zero fuel transition challenges, says panellists

Ammonia is touted as the long-term fuel solution, but safety concerns and novel technology could hinder its widespread application.

Admin

Published

on

By

SMW 2024: All hands on deck to overcome net-zero fuel transition challenges, says panellists

The article ‘All hands on deck to overcome net-zero fuel transition challenges: panellists’ was first published on Issue 4 of the Singapore Maritime Week 2024 Show Dallies; it has been reproduced in its entirety on Singapore bunkering publication Manifold Times with permission from The Nutgraf and the Maritime and Port Authority of Singapore:

By Matthew Gan

Ammonia is emerging as the key net-zero fuel of the future, but the maritime industry faces several challenges in its large-scale adoption.

A critical concern is safety. Ammonia poses safety  risks because of the high volume of explosive engine combustions, and the gas’ toxicity.

“Safety is the most crucial thing – both environmental and operator safety,” said Mr Hiroki Kobayashi, Chief Executive Officer at heavy industries firm IHI Asia Pacific, at the Net-Zero Fuel Pathways Panel during the Accelerating Digitalisation and Decarbonisation Conference on Wednesday.

Given the focus on safety, a substantial proportion of resources should be spent on ensuring ammonia technology is safe, added Mr Nicolas Brabeck, Managing Director at energy provider MAN Energy Solutions Singapore.

What will help, noted Mr Kenneth Widell, Senior Project Manager (Smart Technology Hub) at marine and energy solutions provider Wartsila, is having stakeholders share information on safe ammonia usage.

Another challenge is training seafarers to use novel technology. But panellists agreed that it should not deter the industry from pursuing the widespread adoption of ammonia.

“All this is new to us, but we can start training early, collect feedback, and adjust accordingly,” said Mr Leonardo Sonzio, Vice-President and Head of Fleet Management and Technology at global shipping company Maersk.

Stakeholders should also collaborate more, said Mr Robert van Nielen, Vice-President (Growth) at liquid storage logistics provider Advario. “There are many things to set up – supply chains, logistics, safety protocols and training – but we need to transition. And if we want to make this change in time, we must work together,” he said.

As moderator Mr Knut Orbeck-Nilssen, Chief Executive Officer (Maritime) at registrar and classification society DNV, put it in his closing remarks: “The fuel of the future, really, is collaboration.”

Singapore Maritime Week 2024 was organised by Maritime and Port Authority of Singapore from 15 to 19 April. 

 

Photo credit: Knut Orbeck-Nilssen / DNV
Article credit: The Nutgraf/ Maritime and Port Authority of Singapore
Published: 24 April 2024

Continue Reading

LNG Bunkering

TotalEnergies announces FID for first LNG bunkering hub in the Middle East

LNG production from LNG liquefaction plant in port of Sohar, as part of Marsa project, is expected to start by first quarter 2028 and is primarily intended for LNG bunkering in the Gulf.

Admin

Published

on

By

TotalEnergies announces FID for first LNG bunkering hub in the Middle East

Energy company TotalEnergies and Oman National Oil Company on Monday (22 April) announced the Final Investment Decision (FID) for the Marsa LNG plant project.

TotalEnergies had signed a Sale and Purchase Agreement (SPA) with Oman LNG to offtake 0.8 Mtpa of LNG for ten years from 2025, making the company one of the main offtaker of Oman LNG's production.

Finally, TotalEnergies (49%) and OQ Alternative Energy (51%), the national renewable energy champion, have confirmed being at an advanced stage of discussions to jointly develop a portfolio of up to 800 MW, including the 300 MWp solar project that will supply Marsa LNG.

Through their joint company Marsa Liquefied Natural Gas (Marsa), TotalEnergies (80%) and OQ (20%) launch the integrated Marsa LNG project which combines:

  • upstream gas production: 150 Mcf/d of natural gas, coming from the 33.19% interest held by Marsa in the Mabrouk North-East field on onshore Block 10, which will provide the required feedstock for the LNG plant. Block 10 production started in January 2023 and reached plateau in April 2024. The FID allows Marsa LNG to extend its rights in Block 10 until its term in 2050.
  • downstream gas liquefaction: a 1 Mt/y capacity LNG liquefaction plant will be built in the port of Sohar. The LNG production is expected to start by first quarter 2028 and is primarily intended to serve the marine fuel market (LNG bunkering) in the Gulf. LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies (80%) and OQ (20%).
  • renewable power generation: a dedicated 300 MWp PV solar plant will be built to cover 100% of the annual power consumption of the LNG plant, allowing a significant reduction in greenhouse gas emissions.

The Marsa LNG plant will be 100% electrically driven and supplied with solar power, positioning the site as one of the lowest GHG emissions intensity LNG plants ever built worldwide, with a GHG intensity below 3 kg CO2e/boe. (for reference, the average emission intensity of LNG plants is around 35 kg CO2e/boe - this represents a reduction in emissions of more than 90%).

The main Engineering, Procurement and Construction contracts have been awarded to Technip Energies for the LNG plant and to CB&I for the 165,000 m3 LNG tank.

The Marsa LNG project will generate long-term employment opportunities and significant socio-economic benefits for the city of Sohar and the region.

The first LNG bunkering hub in the Middle East

The ambition of the Marsa LNG project is to serve as the first LNG bunkering hub in the Middle East, showcasing an available and competitive alternative marine fuel to reduce the shipping industry's emissions. 

“We are proud to open a new chapter in our history in the Sultanate of Oman with the launch of the Marsa LNG project, together with our partner OQ, demonstrating our long-term commitment to the country. We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the Sultanate on a new scale in the sustainable development of its energy resources”, said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“This very innovative project illustrates our pioneer spirit and showcases the relevance of our integrated multi-energy strategy, with the ambition of being a responsible player in the energy transition. By paving the way for the next generation of very low emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy.”

 

Photo credit: TotalEnergies
Published: 24 April 2024

Continue Reading

Biofuel

Carras “Aquataurus” bulker becomes world’s first vessel to receive ABS Biofuel-1 notation

Notation is assigned to vessels that use a biofuel blend of up to and including 30% bio fuel in compliance with IMO and ABS requirements, says ABS.

Admin

Published

on

By

Carras “Aquataurus” bulker becomes world’s first vessel to receive ABS Biofuel-1 notation

Carras (Hellas) S.A. received the ABS Biofuel-1 notation for its Aquataurus ultramax bulk carrier, the first vessel in the world to qualify, according to the classification society on Tuesday (23 April).

The notation is assigned to vessels that use a biofuel blend of up to and including 30% biofuel in compliance with IMO and ABS requirements.

ABS said biofuels’ suitability with existing power generation systems makes them a drop-in solution without the need for equipment retrofits or vessel redesign. 

The Aquataurus is equipped with a Wartsilla main engine and three auxiliary Yanmar engines and will serve trade routes worldwide.

“We are very proud to support Carras (Hellas) S.A. in their initiative to use biofuels as part of their sustainability strategy. Drop-in biofuels are a ‘here-now’ solution since they take advantage of existing fuel transport and bunkering infrastructure. ABS is well-positioned to use our deep industry knowledge of alternative fuels to support clients along their decarbonization journey,” said Stamatis Fradelos, ABS Vice President, Regulatory Affairs.

“Carras (Hellas) S.A. is pleased to be working with ABS to support our common goal of  reducing fleet emissions for the benefit of the environment. The use of biofuels allows shipowners to reduce their fleet carbon intensity without the cost of expensive retrofits or investments in newbuildings, and we are excited to be pioneers, together with ABS, of obtaining the assignment of the Biofuel-1 notation to Aquataurus,” said Captain Costas Liadis, President of Carras (Hellas) S.A.

 

Photo credit: ABS
Published: 24 April 2024

Continue Reading
Advertisement
  • v4Helmsman Gif Banner 01
  • Aderco advert 400x330 1
  • SBF2
  • EMF banner 400x330 slogan
  • RE 05 Lighthouse GIF
  • Consort advertisement v2

OUR INDUSTRY PARTNERS

  • Triton Bunkering advertisement v2
  • Singfar advertisement final
  • 102Meth Logo GIF copy
  • HL 2022 adv v1


  • intrasea
  • Auramarine 01
  • E Marine logo
  • Energe Logo
  • Uni Fuels logo advertisement white background
  • Golden Island logo square
  • Kenoil
  • Central Star logo
  • pro liquid
  • MFA logo v2
  • VPS 2021 advertisement
  • Advert Shipping Manifold resized1
  • Headway Manifold
  • 400x330 v2 copy

Trending