Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

Fujairah bunkering inches closer to normal operation; bunker demand sluggish in China’s bunker hub – Zhoushan; Singapore’s Hi5 spread narrows further.

Published

3 years ago

August 17, 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:

16 August 2022

Fujairah bunkering inches closer to normal operation
Bunker demand sluggish in China’s bunker hub - Zhoushan
Singapore’s Hi5 spread narrows further

Singapore

VLSFO and HSFO supply remains “super tight” for prompt dates in Singapore. Recommended lead times are around 9-12 days.

Bunker demand has been normal in Singapore so far this week. A series of VLSFO and LSMGO stems were fixed at the beginning of the week, while HSFO fixtures have been fewer.

Singapore’s residual fuel oil inventories have been drawn for five consecutive weeks amid lower imports and have averaged 12% lower so far this month than in July, while its middle distillate stocks are up by 3% on the month, according to Enterprise Singapore.

Tightening HSFO availability prospects and a steep decline in Singapore’s VLSFO price in recent weeks have contributed to narrow the port’s Hi5 spread to $220/mt, which is less than half its peak above $570/mt around mid-July.

LSMGO remains more readily available, and its lead times remain steady at 4-6 days.

East Asia

VLSFO and LSMGO availability is normal in China’s Zhoushan and Shanghai. Prices of the two grades in Zhoushan have come under pressure in recent weeks due to ample stocks in the port and weak demand, sources say.

Securing HSFO for prompt dates in Zhoushan and Shanghai is slightly difficult as fewer suppliers offer the grade, sources say.

Suppliers in Zhoushan struggled to deliver stems outside of the port’s outer limit (OPL) and Tiaozhoumen anchorage on Tuesday due to rough weather conditions, sources say.

Availability is normal across HSFO, VLSFO and LSMGO grades in Hong Kong as suppliers have ample stocks. Recommended lead times are around 4-5 days.

Bunker fuel availability is normal across all grades in South Korea’s Busan. Recommended lead times for VLSFO and LSMGO is around five days.

VLSFO and LSMGO availability is tight for prompt dates in Vietnamese ports. A supplier can offer VLSFO for prompt dates but on cash in advance basis, sources say.

LSMGO availability is normal in Philippines' Manila. A supplier can offer deliveries for prompt dates.

South Asia

Availability of LSMGO and VLSFO remains normal in India’s Mumbai. Prompt VLSFO supply is tight in Mundra on India’s northwest coast and requires around six days of lead time, while HSFO has a shorter lead time of 3-4 days.

VLSFO supply is almost out of stock in Visakhapatnam and Kakinada on India’s east coast, where a supplier expects to receive replenishment stock by next week. LSMGO is more readily available.

Bunker fuel availability is normal in Colombo and Trincomalee, and some suppliers can offer VLSFO and LSMGO for prompt dates, sources say. HSFO availability is normal, but typically requires at least 4-5 days of lead time as the grade is supplied by a smaller number of suppliers.

Middle East

Bunker operations in Fujairah have nearly normalised after the port’s terminals were hit with heavy flooding in late July. Barge loading delays and congestion have come down in Fujairah as more terminals have resumed normal operations, sources say

VLSFO and LSMGO availability is tight in Fujairah for prompt dates. Some suppliers can offer VLSFO for prompt dates, but these are typically priced higher. Prompt stems have typically been priced $50-55/mt higher than for dates further out, while in some cases premiums can go even higher, a source says.

Recommended lead times for VLSFO and LSMGO are around six days. HSFO availability is normal, and some suppliers can offer limited quantities for prompt dates.

VLSFO and LSMGO availability is normal in Oman’s Sohar. Some suppliers resumed VLSFO offers from last week after Sohar's sole barge was able to load the fuel from Fujairah, sources say.

VLSFO availability is normal in Saudi Arabia’s Jeddah, while LSMGO is said to be tight, according to sources.

Photo credit and source: ENGINE
Published: 17 August, 2022

Biofuel

Ulsan Port aims to become leading bio bunker fuel supply hub in Northeast Asia

UPA’s Director Byeong-gu Kim unveiled comprehensive plans to promote marine biofuel adoption centered on Ulsan Port at 2nd Forum on the Commercialization of Biofuels for Maritime Vessels in Seoul.

Published

12 hours ago

April 25, 2025

Admin

Ulsan Port aims to become leading bio bunker fuel supply hub in Northeast Asia

Ulsan Port Authority (UPA) on Thursday (24 April) said it is looking to position the port as a leading biofuel supply hub in Northeast Asia.

UPA, Korea’s port operator for energy and petrochemical logistics, emphasised its strategic role in building a stable marine biofuel supply chain aligned with tightening global regulations.

UPA's Director Byeong-gu Kim unveiled comprehensive plans to promote marine biofuel adoption centered on Ulsan Port at a recent biofuel forum in Seoul, highlighting the port's strategic advantages including its world-class petrochemical infrastructure, extensive storage facilities, and specialised handling expertise.

The presentation showcased UPA's commitment to developing the necessary facilities and operational frameworks to become Northeast Asia's “premier biofuel bunkering destination”.

“As IMO environmental regulations intensify, Ulsan Port Authority is strategically positioned to lead the transition to alternative fuels,” stated UPA President Jae-young Byeon.

“Marine biofuels represent a practical alternative that can be implemented immediately without requiring new vessel construction or retrofitting. UPA will continue to strengthen port-centered biofuel supply networks and create a competitive eco-friendly marine fuel market through our advanced infrastructure and technical expertise.”

Chief Executive of the Korea Maritime Cooperation Center (KMC), Hong Sun-bae, emphasised that “the strategic partnership between the shipping industry and the logistics sector has become more important than ever in this era of climate-friendly economic transition.”

The 2nd Forum on the Commercialisation of Biofuels for Maritime Vessels, hosted by the Ministry of Oceans and Fisheries and co-organized by UPA and KMC, drew around 300 key stakeholders from across the shipping, energy, terminal, shipbuilding, and finance sectors.

The event underscored the increasing urgency of eco-friendly fuel adoption, following the International Maritime Organization (IMO)'s approval of mid-term greenhouse gas reduction measures.

Expert sessions featured actionable insights and market intelligence from key players in the maritime and energy sectors:

Key outcomes from the 83rd Marine Environment Protection Committee (MEPC83) by Team Leader Dae-jung Hwang of KMC
Biofuel utilisation and demonstration cases by Manager Dae-sik Seo of HMM
Current usage status and challenges of B100 biofuel by Manager Min-guk Jang of G-Marine Service
Market outlook for marine biofuels by Chief Surveyor Jae-hoon Lim of DNV
Case studies of biofuel applications for marine engines by Team Leader Jae-yup Seo of HD Korea Shipbuilding & Offshore Engineering
Global marine biofuel market trends and bunkering developments by Senior Manager Yul-kyung Hong of Hyundai Fuels

Photo credit: Ulsan Port Authority
Published: 25 April, 2025

Shipping Corridor

SFOC report proposes green methanol-fuelled Korea-Europe shipping corridor

Corridor will run between Pyeongtaek Port—the largest hub for automobile imports and exports in South Korea—and major European ports of Bremerhaven, Antwerp, Zeebrugge, and Southampton.

Published

12 hours ago

April 25, 2025

Admin

SFOC report proposes green methanol-fuelled Korea-Europe green shipping corridor

Korean non-government organisation Solutions for Our Climate (SFOC) on Wednesday (23 April) released a report proposing the establishment of a green methanol-fuelled South Korea-Europe shipping corridor.

The proposed corridor will run between Pyeongtaek Port—the largest hub for automobile imports and exports in South Korea—and major European ports of Bremerhaven, Antwerp, Zeebrugge, and Southampton, presenting strategic pathways for the decarbonization of the maritime sector.

South Korea has announced its “Greenship-K Program” to accelerate the adoption of eco-friendly vessels and set a national goal to achieve a 100% reduction in greenhouse gas (GHG) emissions from shipping by 2050.

Focusing on a green methanol-fuelled Pure Car and Truck Carrier (PCTC) operation model, the report quantitatively assessed the potential for greenhouse gas reduction along key routes. Notably, the Bremerhaven–Pyeongtaek route alone is estimated to reduce more than 1.4 million tonnes of CO₂ emissions annually, given its high cargo volume.

The report proposed the adoption of green methanol as the primary fuel for the corridor, with a long-term goal to transition toward e-methanol. This shift is expected to reduce CO₂ emissions by more than 70% compared to conventional fossil fuel use.

Beyond fuel switching, the report emphasised the importance of securing a stable green fuel supply chain, establishing supportive legal and institutional frameworks, and fostering close public-private cooperation among shipping companies, cargo owners, port operators, and fuel suppliers to make the corridor a viable reality.

“With these foundational elements in place, Pyeongtaek Port is well positioned to become the starting point of Korea’s transition toward a decarbonised maritime sector,” SFOC said.

Note: The full report by SFOC can be viewed here and it is also available in Korean here.

Photo credit: Solutions for Our Climate
Published: 25 April, 2025

Biofuel

MASH Makes powers first vessel trial with bio bunker fuel from carbon-negative process

NORDEN and MASH Make completed the world’s first commercial vessel trial using B20 blend produced from a carbon-negative process; vessel operated on a roundtrip voyage from Singapore to Brazil.

Published

12 hours ago

April 25, 2025

Admin

MASH Makes powers first vessel trial with bio bunker fuel from carbon-negative process

Global shipping company DS NORDEN and renewable energy company MASH Makes on Thursday (21 April) successfully completed the world’s first commercial vessel trial using biofuel produced from a carbon-negative process.

The vessel operated on a roundtrip voyage from Singapore to Brazil, successfully using 65 tonnes of fuel blend with 20% MASH Makes biofuel in its auxiliary engine.

“This trial proves that MASH Makes’ biofuel is suitable for marine engines, and it marks an important milestone towards bringing the fuel into our operation,” said Henrik Røjel, Head of Decarbonisation and Climate Solutions, NORDEN.

The trial demonstrated that MASH Makes’ biofuel is technically a drop-in fuel, compatible with existing systems and capable of reducing reliance on fossil fuels in specific marine applications.

The results point to a practical path for shipowners to cut emissions without waiting for new infrastructure.

If the new agreement by the International Maritime Organization (IMO) to cap and price excess emissions globally is ratified in October 2025, MASH Makes offers a solution that enables shipowners to start significantly reducing their emissions well before the agreement takes effect in 2028.

“Our biofuel meets the technical requirements of the shipping industry and can be used in unmodified engines. It’s a seamless, scalable alternative ready to cut emissions today,” said MASH Makes CEO Jakob Bejbro Andersen.

Unlike emerging fuels like green hydrogen or ammonia, which require new infrastructure, MASH Makes biofuel integrates directly with existing systems.

NORDEN acquired a minority stake in MASH Makes in 2023 to strengthen its future supply of renewable fuels. Since the acquisition, the two companies have worked closely together to validate the biofuel for marine usage.

Photo credit: DS NORDEN
Published: 25 April, 2025