Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

Singapore’s MPA traces contaminated HSFO origin to Khor Fakkan; two Korean refiners halt flows to bunker market amid low stocks; HSFO particularly tight major bunker hubs

Published

3 years ago

May 11, 2022

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:

10 May 2022

Singapore’s MPA traces contaminated HSFO origin to Khor Fakkan
Two Korean refiners halt flows to bunker market amid low stocks
HSFO particularly tight major bunker hubs

Singapore

HSFO availability remains “super tight” in Singapore. Recommended lead times are up to two weeks. Some suppliers can offer with shorter lead time but priced at a premium, a trader says. Recommended lead times for VLSFO are around 10-13 days, while LSMGO has a shorter lead time of 4-7 days.

Bunker demand is said to be normal in Singapore, sources say.

The Maritime and Port Authority of Singapore (MPA) launched an investigation into HSFO contamination in the port when alarms were raised in March. The MPA has now found that HSFO contaminated with organic chlorides was loaded at the UAE's Port of Khor Fakkan before being shipped as cargo to Malaysia’s storage facility in Tanjong Pelepas, where it was further blended and later delivered to storage facilities in Singapore.

As a preventive measure, the MPA has made Chlorinated Organic Compounds testing mandatory as part of its fuel quality measures.

Singapore’s weekly middle distillate stocks plunged 11% lower in the week to 4 May, when they were only at half their levels of a year earlier, according to Enterprise Singapore. Residual fuel oil inventories, meanwhile, grew by 6% on the week.

Singapore increased its fuel oil imports from Brazil, Venezuela and Japan in the first week of May compared to the monthly average for April, according to cargo tracker Vortexa.

Nearly half of its fuel oil exports were bound for China in the first week. Cargoes have also increasingly departed for Saudi Arabia, ahead of its summer season and peak demand for fuel oil to power air-conditioning systems.

East Asia

Bunker demand has been stronger in Hong Kong in the weeks since quarantine restrictions were lifted. The flow of enquiries was good in April and that trend has continued into this month, a trader says. This contributed to tighten supply into May.

VLSFO availability has later improved in Hong Kong as suppliers have brought in replenishment cargoes to cater to the pickup in demand, sources say. Recommended lead times are around 5-7 days. A supplier expects a VLSFO replenishment cargo to arrive by 13 May, a source says.

HSFO is tight in Hong Kong as only available with some suppliers. LSMGO availability is good, and some suppliers can offer prompt deliveries.

In South Korean ports, bunker fuel availability is tight across all grades. Two refineries have stopped offering bunker fuels for the rest of the month due to low inventories and pressure to meet domestic fuel demand. Recommended lead times are around 7-10 days across all grades.

Demand is said to be normal in South Korean ports.

Availability of VLSFO and HSFO is tight in Zhoushan, sources say. Recommended lead times for VLSFO are around 10 days, while some supplier can offer limited prompt deliveries. LSMGO availability is better and prompt deliveries is possible. Bunker demand has picked up this month, sources say.

In the Philippines’ Manila, availability for LSMGO is normal with recommended lead times at around three days.

South Asia

Bunker fuel availability remains normal in India’s Mumbai. Some suppliers can offer prompt limited deliveries. In Mundra, VLSFO and HSFO availability is normal and recommended lead times are around 6-7 days. LSMGO still remains out of stock, a trader says. Bunker demand is said to be normal.

Bunker deliveries in Indian ports of Visakhapatnam and Kakinada were suspended on Tuesday morning due to Cyclone Asani.

In Colombo, availability is slightly tight across all grades. A supplier has run out of LSMGO, while VLSFO is in better stock. Another supplier can offer both grades, but prompt deliveries are made difficult by a busy barge schedule, sources say.

HSFO is tight due to lack of product availability in Colombo. A supplier expects a replenishment cargo to arrive next week, a source says.

Middle East

In Fujairah, prompt deliveries are slightly difficult to find, a trader says. Recommended lead times for VLSFO and LSMGO are around seven days.

HSFO remains tight in Fujairah, as in many other key regional ports. Recommended lead times are up to two weeks, with more prompt deliveries incurring higher price premiums, sources say.

Bunker fuel availability is normal in the Omani ports of Duqm and Sohar, where a supplier can offer prompt deliveries, sources say.

Photo credit and source: ENGINE
Published: 11 May, 2022

Business

Shell MGO bunker heist: Bunker clerk pleads guilty to helping Sentek acquire misappropriated fuel

Wong Wai Meng, who received more than USD 286,000 from Sentek Marine & Trading for his assistance, pleaded guilty to 12 counts of intentionally helping the firm acquire the misappropriated marine gas.

Published

11 hours ago

December 2, 2024

Admin

A bunker clerk, Wong Wai Meng, who received more than USD 286,000 (SGD 384,681) from Singapore-based Sentek Marine & Trading (Sentek) for his assistance, pleaded guilty to 12 counts of intentionally helping the company acquire misappropriated marine gas oil, The Straits Times reported on Friday (29 November).

The 58-year-old Singaporean was employed at the Sentek when he assisted in acquiring more than 28,000 metric tonnes (mt) of the misappropriated fuel worth USD 13.58 million (SGD 18.26 million).

Wong committed the offences over 46 occasions between August 2014 and December 2017.

Wong is among the three bunker clerks previously employed by Sentek, who were charged for offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and the Prevention of Corruption Act (PCA).

Another bunker clerk among the three charged, Wong Kuin Wah, 61, was sentenced to seven years and six months’ jail on 18 November for his role in misappropriating more than 27,000 tonnes of gas oil worth around USD 12.8 million (SGD 17.2 million).

The third individual who was charged, Boo Pu Wen, reportedly passed away in July 2023 and had his charges abated following his death, meaning Boo’s court proceedings over his 19 charges at the time came to an end.

Former Shell employees, who were key members of a group who dishonestly misappropriated fuel from Shell Pulau Bukom, were sentenced to jail in court earlier.

Earlier coverage of developments by Manifold Times regarding the Shell MGO bunker heist can be found below:

Photo credit: Katrin Bolovtsova
Published: 2 December, 2024

Biofuel

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

Fingerprinting identifies feedstock origins of FAME-based biofuels used in shipping industry; can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity.

Published

12 hours ago

December 2, 2024

Admin

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

The Global Centre for Maritime Decarbonisation (GCMD) on Monday (2 December) released its latest report, presenting a new technique that creates a fingerprint for Fatty Acid Methyl Esters(FAME) bio bunker fuels.

This fingerprint identifies the feedstock origins of the FAME-based biofuels used in the shipping industry.

GCMD said FAME fingerprinting is needed as the shipping sector is increasingly using biofuels, such as FAME, to reduce its GHG emissions. With that, concerns have arisen regarding the legitimacy of biofuels and whether they are truly sustainable.

Industry bodies are seeing a rising number of cases mislabelling biofuels purported to be made from recycled oils and fats, while suspicions persist that they might be produced from cheaper and less sustainable virgin oils.

“To address these concerns, FAME fingerprinting can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity. By providing a physical validation method that complements existing certification schemes, FAME fingerprinting can help justify the green premium with genuine environmental benefits and safeguard the integrity of marine fuels supply chain,” GCMD said.

FAME fingerprinting is based on the principle that the fatty acid profile of FAME is unique to its feedstock and can be preserved during feedstock transesterification to produce FAME. The "fingerprint" can then be compared against a database of known fatty acid profiles to identify the feedstock origin.

GCMD worked with VPS who modified existing fuel testing methods to carry out sample analyses using a gas chromatograph with flame-ionisation detection, an instrument commonly found in fuel test laboratories.

The analysis takes about an hour, comparable to the turnaround time for current marine fuel quality testing in the supply chain.

“We have tested this method on a variety of FAME samples from different suppliers, including virgin oils, used cooking oils, palm oil mill effluent, beef tallow and food waste and were able to identify the feedstock origins for each sample,” GCMD added.

Manifold Times previously reported Captain Rahul Choudhuri, President, Strategic Partnerships at marine fuels testing company VPS, forecasting the use of finger printing technology today will likely establish a blueprint of how future alternative bunker fuels’ feedstocks are authenticated.

Captain Choudhuri said this when he gave an update of VPS’ biofuels finger printing trials with GCMD.

Note: The full report, titled ‘Rapid forensic analysis of FAME-based biofuels: Potential use of its fingerprint as a fraud detection tool’, can be downloaded here.

Photo credit: Global Centre for Maritime Decarbonisation
Published: 2 December, 2024

Methanol

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

Korean firm’s MoU with AE Risinājumi will see construction of Latvia’s first commercial-scale green methanol production plant, which will supply green methanol to ships in EU’s maritime fleet.

Published

12 hours ago

December 2, 2024

Admin

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

South Korean clean energy firm PLAGEN on Friday (29 November) signed an MOU with Latvian company, AE Risinājumi, for the production of green methanol in Latvia at the “2024 Latvia-Korea Business Forum” hosted by the President of Latvia.

The agreement will result in the construction of Latvia's first commercial-scale green methanol production plant, which will supply green methanol to ships in the EU's maritime fleet, contributing to the reduction of greenhouse gas emissions from maritime transportation.

PLAGEN's MoU aims to produce 20,000 metric tonnes (mt) of green methanol per year and will begin feasibility studies in the first half of 2025, and full-scale production will begin in 2028.

With 53% of Latvia's land area covered by forests, timber production and wood processing make a significant contribution to Latvia’s economic production, which generates a large amount of forest residues and wood wastes. In addition, Latvia also has an abundance and low price of renewable electricity from wind power.

Latvia is one of the most competitive countries in the European Union, as it can produce clean methanol at a competitive price by using abundant wood waste as a raw material and renewable electricity from cheap wind power.

The use of abundant forest residues and wood wastes as a feedstock and cheap renewable electricity from wind power makes it possible to produce green methanol with a competitive price, making Latvia is one of the most competitive countries in the EU.

In the European Union, the European Emissions Trading Scheme (EU-ETS) will come into effect in 2025, requiring shipping companies to purchase carbon credits for their greenhouse gas emissions.

In addition, the EU is implementing FuelEU Maritime, which aims to reduce greenhouse gas emissions by 2% below the 2020 average by 2025 and 80% by 2050. This is expected to result in an energy transition to green methanol.

In July 2023, the International Maritime Organization (IMO) adopted a revised strategy that calls for reducing greenhouse gas (GHG) emissions from ships to net-zero by or around 2050, and plans to introduce full-scale regulations from 2027, and shipping companies have begun ordering methanol-powered ships fueled by green methanol, a carbon-neutral fuel.

“We expect to start producing green methanol in Latvia in 2028, which will reduce greenhouse gas emissions from EU maritime transport vessels and contribute significantly to the revitalization of the Latvian economy and national energy security,” said John Kyung, CEO of PLAGEN.

In November 2024, PLAGEN completed the purchase of an industrial complex and received a government permit for the construction of the country's first green methanol plant in Dongjeom Industrial Complex in Taebaek City, Gangwon-do.

The project, which will produce 10,000 mt per year, is scheduled to begin construction in the first half of 2025 and begin production in the second half of 2027.

Photo credit: PLAGEN
Published: 2 December, 2024