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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.

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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:

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

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Business

Methanol Institute welcomes StormFisher as newest member

Company produces clean hydrogen, e-methane, e-methanol, and green ammonia, creating local energy security, and providing export opportunities to Asia Pacific and European markets.

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Methanol Institute welcomes StormFisher as newest member

The Methanol Institute (MI) on Monday (22 April) welcomed StormFisher Hydrogen Ltd. as its newest member. 

According to Mi, StormFisher Hydrogen Ltd. develops, owns, and operates electrolysis-based clean fuel production facilities in North America. 

“With its track record in developing and operating clean fuel facilities, StormFisher serves its customers with a sustainable and reliable fuel supply, to meet the needs of traditionally hard to decarbonize sectors,” it said. 

The company produces clean hydrogen, e-methane, e-methanol, and green ammonia, creating local energy security, and providing export opportunities to Asia Pacific and European markets.

MI CEO Greg Dolan, said: "With their expertise in developing and operating clean fuel facilities, StormFisher is a valuable addition to MI's membership. As the clean energy transition continues to gain pace, StormFisher's e-methanol production will be part of the net-carbon neutral future."

"Our company is excited to join the Methanol Institute and collaborate on developing the eMethanol market and shaping supportive policies globally," said StormFisher CEO Jud Whiteside. "Working together, we can drive methanol's potential as a key solution for decarbonization and sustainability."

Related: Methanol Institute: Progress as a marine fuel continues across supply chain (Week 15, 8-14 April 2024)
Related: Methanol Institute and SEA-LNG unite against EU trade barriers to biomethane and biomethanol fuels\

 

Photo credit: Methanol Institute
Published: 25 April 2024

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Alternative Fuels

SMW 2024: All hands on deck to overcome net-zero fuel transition challenges, says panellists

Ammonia is touted as the long-term fuel solution, but safety concerns and novel technology could hinder its widespread application.

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SMW 2024: All hands on deck to overcome net-zero fuel transition challenges, says panellists

The article ‘All hands on deck to overcome net-zero fuel transition challenges: panellists’ was first published on Issue 4 of the Singapore Maritime Week 2024 Show Dallies; it has been reproduced in its entirety on Singapore bunkering publication Manifold Times with permission from The Nutgraf and the Maritime and Port Authority of Singapore:

By Matthew Gan

Ammonia is emerging as the key net-zero fuel of the future, but the maritime industry faces several challenges in its large-scale adoption.

A critical concern is safety. Ammonia poses safety  risks because of the high volume of explosive engine combustions, and the gas’ toxicity.

“Safety is the most crucial thing – both environmental and operator safety,” said Mr Hiroki Kobayashi, Chief Executive Officer at heavy industries firm IHI Asia Pacific, at the Net-Zero Fuel Pathways Panel during the Accelerating Digitalisation and Decarbonisation Conference on Wednesday.

Given the focus on safety, a substantial proportion of resources should be spent on ensuring ammonia technology is safe, added Mr Nicolas Brabeck, Managing Director at energy provider MAN Energy Solutions Singapore.

What will help, noted Mr Kenneth Widell, Senior Project Manager (Smart Technology Hub) at marine and energy solutions provider Wartsila, is having stakeholders share information on safe ammonia usage.

Another challenge is training seafarers to use novel technology. But panellists agreed that it should not deter the industry from pursuing the widespread adoption of ammonia.

“All this is new to us, but we can start training early, collect feedback, and adjust accordingly,” said Mr Leonardo Sonzio, Vice-President and Head of Fleet Management and Technology at global shipping company Maersk.

Stakeholders should also collaborate more, said Mr Robert van Nielen, Vice-President (Growth) at liquid storage logistics provider Advario. “There are many things to set up – supply chains, logistics, safety protocols and training – but we need to transition. And if we want to make this change in time, we must work together,” he said.

As moderator Mr Knut Orbeck-Nilssen, Chief Executive Officer (Maritime) at registrar and classification society DNV, put it in his closing remarks: “The fuel of the future, really, is collaboration.”

Singapore Maritime Week 2024 was organised by Maritime and Port Authority of Singapore from 15 to 19 April. 

 

Photo credit: Knut Orbeck-Nilssen / DNV
Article credit: The Nutgraf/ Maritime and Port Authority of Singapore
Published: 24 April 2024

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LNG Bunkering

TotalEnergies announces FID for first LNG bunkering hub in the Middle East

LNG production from LNG liquefaction plant in port of Sohar, as part of Marsa project, is expected to start by first quarter 2028 and is primarily intended for LNG bunkering in the Gulf.

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TotalEnergies announces FID for first LNG bunkering hub in the Middle East

Energy company TotalEnergies and Oman National Oil Company on Monday (22 April) announced the Final Investment Decision (FID) for the Marsa LNG plant project.

TotalEnergies had signed a Sale and Purchase Agreement (SPA) with Oman LNG to offtake 0.8 Mtpa of LNG for ten years from 2025, making the company one of the main offtaker of Oman LNG's production.

Finally, TotalEnergies (49%) and OQ Alternative Energy (51%), the national renewable energy champion, have confirmed being at an advanced stage of discussions to jointly develop a portfolio of up to 800 MW, including the 300 MWp solar project that will supply Marsa LNG.

Through their joint company Marsa Liquefied Natural Gas (Marsa), TotalEnergies (80%) and OQ (20%) launch the integrated Marsa LNG project which combines:

  • upstream gas production: 150 Mcf/d of natural gas, coming from the 33.19% interest held by Marsa in the Mabrouk North-East field on onshore Block 10, which will provide the required feedstock for the LNG plant. Block 10 production started in January 2023 and reached plateau in April 2024. The FID allows Marsa LNG to extend its rights in Block 10 until its term in 2050.
  • downstream gas liquefaction: a 1 Mt/y capacity LNG liquefaction plant will be built in the port of Sohar. The LNG production is expected to start by first quarter 2028 and is primarily intended to serve the marine fuel market (LNG bunkering) in the Gulf. LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies (80%) and OQ (20%).
  • renewable power generation: a dedicated 300 MWp PV solar plant will be built to cover 100% of the annual power consumption of the LNG plant, allowing a significant reduction in greenhouse gas emissions.

The Marsa LNG plant will be 100% electrically driven and supplied with solar power, positioning the site as one of the lowest GHG emissions intensity LNG plants ever built worldwide, with a GHG intensity below 3 kg CO2e/boe. (for reference, the average emission intensity of LNG plants is around 35 kg CO2e/boe - this represents a reduction in emissions of more than 90%).

The main Engineering, Procurement and Construction contracts have been awarded to Technip Energies for the LNG plant and to CB&I for the 165,000 m3 LNG tank.

The Marsa LNG project will generate long-term employment opportunities and significant socio-economic benefits for the city of Sohar and the region.

The first LNG bunkering hub in the Middle East

The ambition of the Marsa LNG project is to serve as the first LNG bunkering hub in the Middle East, showcasing an available and competitive alternative marine fuel to reduce the shipping industry's emissions. 

“We are proud to open a new chapter in our history in the Sultanate of Oman with the launch of the Marsa LNG project, together with our partner OQ, demonstrating our long-term commitment to the country. We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the Sultanate on a new scale in the sustainable development of its energy resources”, said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“This very innovative project illustrates our pioneer spirit and showcases the relevance of our integrated multi-energy strategy, with the ambition of being a responsible player in the energy transition. By paving the way for the next generation of very low emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy.”

 

Photo credit: TotalEnergies
Published: 24 April 2024

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