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ENGINE: East of Suez Bunker Fuel Availability Outlook

Availability improves in Zhoushan; India’s windfall tax on gasoil to drive LSMGO prices higher; prompt VLSFO and LSMGO deliveries in Fujairah remain tight.

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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:

12 July 2022

  • Availability improves in Zhoushan
  • India’s windfall tax on gasoil to drive LSMGO prices higher
  • Prompt VLSFO and LSMGO deliveries in Fujairah remain tight

 

Singapore

VLSFO supply has been persistently tight in Singapore's bunker market for weeks, with high price premiums incurred for prompt delivery dates. Prompt stems have typically been priced $40-50/mt higher than for dates further out, while premiums can go as high up to $100/mt, sources say.

The port’s Hi5 spread is at $550/mt and still lingering around all-time highs amid tight VLSFO supply.

Recommended lead times are around 12-15 days for VLSFO and 10-13 days for HSFO, while LSMGO lead times are shorter at 6-9 days.

 

East Asia

Weather conditions in Zhoushan are calmer this week, allowing suppliers to clear backlogs from previous weather-triggered suspensions. VLSFO availability has improved slightly in the Chinese port, and some suppliers can offer limited quantities for prompt dates, sources say.

Recommended lead times in Zhoushan for VLSFO are around six days, down from at least seven days last week. LSMGO remains readily available.

VLSFO availability is tight in Shanghai as a supplier is almost out of stock, adding pressure on others’ supply.

Availability is normal across all grades in Hong Kong after some suppliers received replenishment stocks last week. Recommended lead times for VLSFO and LSMGO are around 4-5 days. Some suppliers can offer HSFO for prompt dates in Hong Kong. HSFO is typically rare to find for prompt dates as the grade is only available with certain suppliers, sources say.

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

 

South Asia

The Indian government has announced a windfall tax of up to 18% on gasoil at the refinery level. The tax is expected to drive LSMGO prices higher and possibly weaken bunker demand.

Mundra on the northwest coast, is not expected to be directly impacted as the port only offers fuel oil grades. Meanwhile, in Visakhapatnam on the east coast, the tax is expected to push higher LSMGO price by around $250/mt, a source says.

Availability of VLSFO and LSMGO is normal in Mumbai.

In Sri Lanka’s Colombo, prompt VLSFO and LSMGO stems are available with some suppliers. Recommended lead times are around 4-5 days.

 

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 local refinery in Fujairah has been undergoing maintenance work in recent weeks. Production levels have yet to return to normal, sources say.

Recommended lead times for VLSFO and LSMGO are around 10-12 days, while HSFO has a shorter lead time of eight days.

LSMGO and VLSFO availability are normal in Iraq’s Basra. A supplier can offer delivery on prompt dates, sources say.

 

Photo credit and source: ENGINE
Published: 13 July, 2022

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Environment

Singapore, Indonesia and Malaysia conduct table-top exercise to strengthen oil spill response

Exercise focused on several aspects including collaboration between government agencies and oil spill response firms to optimise oil spill response resources for incidents in Straits of Malacca and Singapore.

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The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF. As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS). The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS. The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026. Photo credit: Maritime and Port Authority of Singapore Singapore, Indonesia and Malaysia conducts table-top exercise to strengthen oil spill response

The Maritime and Port Authority of Singapore (MPA) on Tuesday (11 February) conducted a table-top exercise (TTX) with Indonesia and Malaysia to enhance regional coordination and strengthen response capabilities for oil spills. 

The exercise brought together over 20 representatives from MPA, Indonesia’s Directorate General of Sea Transportation, Malaysia’s Environment Department, and oil spill response experts from ITOPF.

As part of Singapore’s chairmanship of the Revolving Fund Committee (RFC) from April 2022 until March 2027, MPA led the TTX to foster collaboration between the littoral States of Indonesia, Malaysia and Singapore. 

The RFC, established through a memorandum of understanding (MOU) between the three littoral States and the Malacca Strait Council (MSC) in 1981, is a funding mechanism allowing each littoral State to draw cash advance from the Fund to combat oil spill from ships in the Straits of Malacca and Singapore (SOMS).

The exercise focused on coordination procedures to ensure swift and clear communication between the littoral States during an oil spill incident, rapid deployment of oil spill response assets by the littoral States, and collaboration between government agencies and oil spill response companies to optimise oil spill response resources for incidents in the SOMS.

The response strategies and asset deployment plans tested during the TTX will be exercised during a Ground Deployment Exercise between the three littoral States and ITOPF in 2026.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 12 February, 2025

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LNG Bunkering

South Korea’s HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping.

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South Korean HJSC scores LNG bunkering vessel order from H-Line Shipping

HJ Shipbuilding & Construction (HJSC) has secured its first order of the year with a contract worth KRW 127.1 billion (USD 87.6 million) to build an 18,000㎥ LNG bunkering vessel for H-Line Shipping. 

The contracted vessel is a large-scale LNG bunkering ship measuring 144 meters in length, 25.2 meters in width, and 12.8 meters in depth. It is capable of supplying up to 18,000㎥ of LNG in a single operation to LNG-fuelled ships. 

Equipped with two independent LNG tanks certified by the International Maritime Organization (IMO), the vessel features a dual-fuel propulsion system that allows it to operate on both eco-friendly LNG and marine diesel oil. This advanced system ensures both stability and operational efficiency while effectively reducing carbon emissions.

Yoo Sang-cheol, CEO of HJSC, said, “As global LNG demand and supply continue to grow, the LNG bunkering vessel market will see steady expansion.” 

“We will focus on strengthening our expertise in building eco-friendly, high-value-added ships, securing a competitive edge that aligns with our legacy as a leader in shipbuilding.”

This achievement follows the company's success in 2014 when it built the world’s first 5,100㎥ LNG bunkering vessel for Japan’s NYK Line.

“This accomplishment also reinforces South Korea’s shipbuilding industry's efforts to enhance competitiveness by securing high-efficiency, environmentally friendly vessels in the global market,” HJSC said. 

“Notably, with the anticipated expansion of oil and natural gas drilling and the resumption of LNG exports under the second Trump administration in the US, the market for crude oil carriers, LNG carriers, and LNG bunkering vessels is expected to see significant growth.”

“This trend is likely to benefit the country’s highly competitive shipbuilding industry.”

 

Photo credit: HJ Shipbuilding & Construction
Published: 12 February, 2025

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Bunker Fuel

AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Firm announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay of South Africa.

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AMSOL tanker “Uhambo” commences offshore bunkering operations in Algoa Bay

Marine services provider AMSOL recently announced that its product tanker Uhambo has started offshore bunkering operations in Algoa Bay, signalling that the service has resumed in the maritime bay in South Africa.  

“Now flying the South African flag and an important platform for the ongoing training and development of tanker-endorsed South African seafarers, the Uhambo has commenced offshore bunkering operations in Algoa Bay, delivering locally refined marine fuel on behalf of its oil industry client,” the company said in a statement shared with Manifold Times

In November 2024, the South African Revenue Services (SARS) released new protocols including amendments under sections 21, 60, and 120 of the Customs and Excise Act. Some amendments pertain to the storage of imported bonded fuel goods in designated customs and excise storage warehouses.

SARS' move was anticipated to facilitate bunkering to resume off Algoa Bay, which has been shut down since September 2023

AMSOL’s Chief Commercial Officer Graham Dreyden, said: “Our ability to comply with stringent operating regulations and legislation as well as international maritime and marine standards underpins AMSOL’s track record.”

“This is the case for operations in Algoa Bay and we have worked closely with authorities and relevant stakeholders to ensure all legislative requirements for offshore bunkering operations are met.”

AMSOL’s CEO Dan Ngakane said he is positive about the growth of the company and its broader impact. 

“We have acquired five vessels in the last 4 years in order to meet the needs of our clients in the region for reliable and professional, risk managed marine solutions,” he said.

“In leading growth in the South African maritime sector, we remain committed to meeting the highest standards for environmental protection, safety and compliance whilst developing the talent required to keep our industry growing and moving forward.”

AMSOL said it is the only marine services business operating in the region with a proven track record in effective management of risk-mitigated fuel transfers through a portfolio of services that include in-port bunker delivery, offshore bunkering, ship-to-ship fuel transfer services and offshore terminal management.

Related: ENGINE: SARS releases final rules for South Africa’s offshore bunkering
Related: SARS seeks public comments on amendments to bonded bunker fuel storage regulations
Related: South African Revenue Service issues media statement on detention of bunkering vessels
Related: ENGINE: Algoa Bay bunkering at a standstill as authority detains barges – sources
Related: ENGINE: Algoa Bay closure spurs surge in bunker calls at nearby ports

 

Photo credit: AMSOL
Published: 12 February, 2025

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