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ENGINE: East of Suez Bunker Fuel Availability Outlook

Availability improves in Hong Kong; bad weather triggers suspension and delays in Zhoushan; VLSFO availability remains tight in Fujairah amid refinery maintenance.

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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:

28 June 2022

  • Availability improves in Hong Kong
  • Bad weather triggers suspension and delays in Zhoushan
  • VLSFO availability remains tight in Fujairah amid refinery maintenance

 

Singapore

Bunker fuel availability remains tight across all grades in Singapore. VLSFO is particularly tight and prompt deliveries remain difficult to find.

Recommended lead times are around 12-15 days for VLSFO and 9-10 days for HSFO, while LSMGO requires a shorter lead time of 8-9 days.

Singapore’s middle distillate stocks rose to fresh multi-week highs, while fuel oil stocks have recovered in its latest week and remain above last month’s average, according to Enterprise Singapore.

The port’s fuel oil imports fell by a massive 39% in the week to 22 June. But its average imports in June until last week have outweighed May's average.

 

East Asia

VLSFO and LSMGO availability has improved in Hong Kong as more replenishment stocks arrive, sources say. Recommended lead times are around 4-5 days.

Prompt deliveries are tight in South Korean ports. Recommended lead times across all grades are around 14-17 days in southern and western South Korean ports.

Bunker deliveries remain suspended amid bad weather in Zhoushan. Rough weather has disrupted bunker operations in Zhoushan since the weekend. However, calmer weather conditions expected from Thursday could help in restoring operations, sources say.

Suppliers are offering VLSFO and LSMGO earliest deliveries from 30 June as the weather is expected to calm down, a source says. VLSFO availability has improved in Zhoushan, while HSFO availability remains tight as only some suppliers can offer the grade.

VLSFO availability is tight in Shanghai as most suppliers are almost out of stock, but one supplier has sufficient availability of the grade and can offer deliveries from 30 June onwards. LSMGO is more readily available for prompt dates.

LSMGO availability is normal in the Philippines’ Manila, where a supplier can offer prompt deliveries.

VLSFO availability is normal in Indonesia’s Jakarta and Surabaya. Recommended lead times are around 3-5 days.

 

South Asia

Bunker fuel availability remains normal in India’s Mumbai, despite maintenance at the Indian state-owned Bharat Petroleum Corporation's (BPCL) Mumbai refinery. BPCL has halved crude processing capacity at its Mumbai refinery to conduct maintenance work that commenced on 10 June and is expected to go on for 20-25 days.

Prompt VLSFO and LSMGO stems are available with some suppliers in Mumbai.

VLSFO and LSMGO availability has improved in Vishakhapatnam on India's east coast.

In Sri Lanka’s Colombo, availability is slightly tight across all grades. Recommended lead times for VLSFO and LSMGO are around eight days. A supplier can offer deliveries for prompt dates.

 

Middle East

All fuel grades are in tight availability for prompt dates in Fujairah. VLSFO and LSMGO prompt deliveries are more difficult to find.

A major refinery is still undergoing maintenance in Fujairah. This has tightened VLSFO availability. The refinery is a key source of VLSFO for the domestic bunker market and exports, sources say

The refinery is likely to restart operations by the end of this week, which could take some pressure off the bunker market, a trader says.  A supplier can offer VLSFO from 8 July onwards. Recommended lead times for VLSFO and LSMGO are around 10-12 days, while HSFO has a shorter lead time of five days.

LSMGO availability is tight in Saudi Arabia’s Jeddah, making lead times unpredictable.

 

Photo credit and source: ENGINE
Published: 29 June, 2022

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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. 

Related: Singapore-registered bunker tankers can transport up to B30 biofuels from 7 March
Related: Singapore releases new standard on methanol bunkering, gears up for multi-fuel future

 

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

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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.

Related: TFG Marine to charter Consort Bunkers newbuild methanol bunker tankers in Singapore
Related: Consort Bunkers ‘L’ series newbuildings amongst top 10 ‘innovative achievements’ of Chinese shipbuilders
Related: Consort Bunkers ordering up to 20 x IMO Type II bunker tankers in region of USD $350 million

 

Photo credit: TFG Marine
Published: 24 March, 2025

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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.

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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).

 

Photo credit: tommao wang on Unsplash
Published: 24 March, 2025

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