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ENGINE: East of Suez Bunker Fuel Availability Outlook

Record wide Singapore Hi5 spread amid tight VLSFO; weather disruptions in Chinese ports; supply to improve with refinery back online in Fujairah.

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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:

5 July 2022

  • Record wide Singapore Hi5 spread amid tight VLSFO
  • Weather disruptions in Chinese ports
  • Supply to improve with refinery back online in Fujairah

 

Singapore

VLSFO supply has been acutely tight for weeks in Singapore’s bunker market, with high price premiums quoted for prompt delivery dates. Prompt stems have typically been priced $30-50/mt higher than for dates further out, sources say.

Tight VLSFO supply has contributed to widen Singapore’s Hi5 spread to all-time highs of more than $570/mt this week.

Suppliers’ earliest delivery dates vary from 14-17 days out for VLSFO, while their earliest dates for HSFO are slightly shorter at 10-13 days, and much shorter for LSMGO at 5-7 days.

Sources in Singapore’s bunker market point to a lack of incoming VLSFO cargo flows as a reason for the grade being tight. VLSFO supply is set to remain tight through July, one says. Fuel oil inflows in July will “at best” be similar to June, and once it has arrived in Singapore, much of this product will still need to be blended into VLSFO, so any supply relief will not be imminent.

 

East Asia

Suppliers in Hong Kong have been working to clear a bunker backlog this week, while suppliers in Zhoushan face around three days of weather disruptions.

Typhoon Chaba swept across Hong Kong with strong winds and rains on Friday, before making landfall in south China. Bunkering was suspended in several ports in the region, including Hong Kong and Guangzhou, but had resumed by Monday.

Massive delays are expected to put pressure on bunker supply capacity in Hong Kong until at least Wednesday, a source said. VLSFO and LSMGO supply had improved in Hong Kong with replenishment cargoes arriving last week, but prompt availability has tightened somewhat as suppliers work through backlogs.

There are no significant backlogs in Guangzhou, but a supplier is running low on VLSFO and only expects to the resupplied in mid-July, keeping availability tight, a source said.

Suppliers in Zhoushan have been bracing for gale and bunker disruptions from Tuesday until Thursday evening. A lull with less wind on Thursday morning could provide a relief and allow for more bunkering.

VLSFO is tight in Zhoushan and recommended lead times can vary greatly between suppliers, ranging from 7-12 days.

Prompt supply is tight across grades in South Korea, but lead times for fuel oil grades are shorter than in Singapore and Zhoushan. Recommended lead times are around 5-6 days for all grades in both western ports like Incheon and southern ports like Busan.

 

Middle East

Recommended lead times have grown longer in Fujairah this week. Around 10 days is now advised for VLSFO and LSMGO, and eight days for HSFO. Maintenance work at a local refinery has capped production and limited some volumes from streaming to the bunker market recently. Availability could improve as the refinery has come back online and ramps up production.  

The port’s heavy distillate and residual fuel oil stocks rose 8% and to multi-week highs last week, but still averaged lower across June than in May, according to Fujairah Oil Industry Zone and S&P Global data.

 

Photo credit and source: ENGINE
Published: 6 July, 2022

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Digital platform

Ofiniti eBDN solution chosen by FincoEnergies for marine biofuel ops in ARA region

Development takes place on the back of complex logistics and opaque operational processes experienced by the marine (bio)fuel market; which Ofiniti’s FuelBoss eBDN solution seeks to simplify.

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FincoEnergies MT

Rotterdam-based FincoEnergies, an independent, leading supplier of (bio)fuels and decarbonisation services for the transport sector, will be adopting Ofiniti’s FuelBoss eBDN technology, with operational support from VT Group.

The development takes place on the back of complex logistics and opaque operational processes experienced by the marine (bio)fuel market; which Ofiniti’s FuelBoss eBDN solution seeks to simplify.

“Schedules are becoming increasingly tighter as demand for sustainable biofuels grows,” explains Leon Arets, Trading & Operations Director at FincoEnergies.

“We’re adopting a platform that enhances structure and responsiveness. This digital leap allows us to not only scale efficiently but also deliver greater transparency and operational excellence to our clients.”

A spin-off from global assurance and risk management leader DNV, Ofiniti brings together deep industry know-how with cutting-edge technology. Its flagship platform, FuelBoss, is designed to replace cumbersome manual processes with streamlined digital workflows that boost efficiency and data reliability.

“Our work with LNG suppliers laid the groundwork,” notes Oliver Brix Sparsø, Global Director of Sales at Ofiniti. “But this collaboration with FincoEnergies and VT Group marks the first large-scale commitment to digital delivery workflows for biofuels. It’s a turning point for the region.”

FincoEnergies’ mission, Decarbonising the transport industry together, is grounded in collaboration and innovation. The partnership with Ofiniti and VT Group exemplifies this spirit, combining technological leadership with operational expertise.

“As operators, we continuously look for ways to improve life on board and support our partners,” adds Wouter van Reenen, Business Development Manager at VT Group. “FuelBoss is a strong fit for our operations and those of our chartering clients.”

Related: Ofiniti to digitalise Azane ammonia bunkering operations across Scandinavia
Related: Ofiniti to roll out e-BDNs for Golden Island methanol bunkering operations in Singapore
Related: Global Fuel Supply to adopt FuelBoss by Ofiniti for e-BDN in West Africa
Related: Ofiniti appoints Oliver Brix Sparsø as new Global Director of Sales
Related: Ofiniti acquires Singapore-based Angsana Technology to advance digital bunkering solutions
Related: Singapore: FuelBoss by Ofiniti becomes sixth whitelisted e-BDN solution
Related: Digital bunkering platform Ofiniti successfully spun out from DNV
Related: FuelBoss to continue under new DNV company Ofiniti

 

Photo credit: Ofiniti
Published: 17 June 2025

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Business

China: Shanghai Zhongran and PetroChina Shanghai Port to promote bunker fuel blending business

Development will help improve Shanghai Port’s bonded ship fuel supply industry, noted the Shanghai Customs Inspection Office.

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Shanghai Zhongran and PetroChina Shanghai Port meeting

A meeting between representatives of Shanghai Zhongran, Shanghai Port Energy, PetroChina Shanghai Port, and Hongkou Customs took place at the Shanghai Customs Inspection Office on Thursday (12 June).

According to Shanghai Zhongran, the meeting’s objective was to discuss the implementation of a high-sulfur and low-sulfur fuel blending business at Shanghai.

During the meeting, a member of the Shanghai Customs Inspection Office stated it will take the opportunity of PetroChina Shanghai Port to carry out this business to promote the development of enterprises in Hongkou District.

The development will improve the utilisation rate of Shanghai Zhongran bonded storage tanks, improve storage functions, and help improve Shanghai Port’s bonded ship fuel supply industry.

After the meeting, PetroChina Shanghai Port submitted a formal application to Hongkou Customs.

Moving forward, Hongkou Customs will formulate a reconciliation plan, open a special account book, and promote the implementation of this business.

 

Photo credit: Shanghai Zhongran
Published: 17 June 2025

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Newbuilding

NYK Group’s first methanol-fuelled bulk carrier “Green Future” delivered

Vessel is the first bulk carrier in the NYK Group to be equipped with a dual-fuel engine that uses methanol and fuel oil.

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Green Future MT

NYK Group on 13 May received delivery of Green Future, the company’s first methanol dual-fuel bulk carrier, at the TSUNEISHI Factory of TSUNEISHI SHIPBUILDING Co., Ltd. where a naming and delivery ceremony was also held, it said on Thursday (14 June).

The vessel will be chartered by NYK Bulk & Projects Carriers Ltd., an NYK Group company, from KAMBARA KISEN Co., Ltd.

It is the first bulk carrier in the NYK Group to be equipped with a dual-fuel engine that uses methanol and fuel oil.

“Methanol has a lower environmental impact than fuel oil, and by using bio-methanol and e-methanol produced using hydrogen derived from renewable energy sources and recovered carbon dioxide, the vessel achieves significant reductions in greenhouse gas emissions,” it said.

Vessel Particulars
LOA: 199.99 m
Breadth: 32.25 m
Depth: 19.15 m
Deadweight: approx. 65,700 metric tons
Capacity: approx. 81,500 m3
Draft: 13.8 m

Related: Tsuneishi delivers world’s first methanol dual-fuel Ultramax bulker to NYK
Related: Japan: NYK to time-charter its first methanol-fuelled bulk carrier

 

Photo credit: NYK Group
Published: 17 June 2025

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