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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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Winding up

Singapore: Liquidators arrange creditors meeting for Otto Marine Limited

Meeting will be held from 3pm on 24 July at 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095, according to Government Gazette notice.

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A meeting for creditors of Otto Marine Limited, which is in liquidation, has been scheduled to take place on 24 July, according to a Government Gazette notice on Thursday (11 July). 

The meeting will be held from 3pm at 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095

The agenda of the meeting will be as follows:

  • To update on the liquidation administration;
  • To approve the Liquidators’ fees and disbursements;
  • To approve the declaration of preferential dividend(s) pursuant to Section
  • 328(1)(b) to 328(1)(f) of the Companies Act, Cap. 50;
  • To consider and if thought fit, to appoint a committee of inspection; and
  • Any other business.

The details of the liquidators are as follows: 

Chee Yoh Chuang
Lin Yueh Hung
Liquidators
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095

 

Photo credit: steve pb from Pixabay
Published: 12 July, 2024

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LNG Bunkering

Titan completes first STS LNG bunkering operation in Cuxhaven

Port of Cuxhaven in Germany had previously only seen LNG operations conducted via truck and currently only permits LNG bunkering at one berth, says Titan.

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Titan completes first STS LNG bunkering operation in Cuxhaven

LNG bunker fuel supplier Titan on Thursday (11 July) said it completed the first-ever LNG bunkering operation by ship in the port of Cuxhaven.

Titan’s bunker vessel Optimus successfully delivered LNG to dredger Vox Ariane operated by its long-term client Van Oord. 

“Our ship-to-ship bunkering in Cuxhaven represents a pioneering step in the region's LNG infrastructure development, as the port had previously only seen LNG operations conducted via truck and currently only permits LNG bunkering at one berth,” it said in a social media post. 

“LNG infrastructure development is part of a broader trend, with more ports across Germany adopting LNG operations to support shipping’s clean fuels transition.”

Titan added the improved LNG bunkering capabilities in Cuxhaven, a Niedersachsen Ports GmbH & Co. KG port, also opened up the pathway to maritime decarbonisation via liquified biomethane (LBM) and then renewable e-methane going forward.

 

Photo credit: Titan
Published: 12 July, 2024

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LNG Bunkering

UECC “Auto Achieve” receives first LNG bunker fuel delivery by barge in home country

Firm said it received the first ever supply of LNG by barge to their multi-fuel LNG battery hybrid car carrier in the Port of Drammen, Norway.

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UECC “Auto Achieve” receives first LNG bunker fuel delivery by barge in home country

Norwegian roll-on/roll-off shipping line United European Car Carriers (UECC) on Wednesday (10 July) said it received the first ever supply of LNG by barge to their multi-fuel LNG battery hybrid car carrier Auto Achieve in the Port of Drammen on 4 July.

The firm said this was the first time UECC received LNG by barge to any of their vessels in their home country Norway. 

“We also believe that it was the first time LNG was delivered by barge to any vessel in Drammen, and most likely the entire Oslofjord,” UECC said in a social media post.

The LNG was supplied by the Molgas Energy Holding vessel Pioneer Knutsen, owned by Knutsen Group OAS.

“UECC is very pleased to see the expansion of the LNG barge network in Norway,” it said. 

 

Photo credit: UECC
Published: 12 July, 2024

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