Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

Strong demand and stocks drawn in Singapore; OPL bunkering still suspended in Zhoushan; mostly good availability in Indian ports.

Published

2 years ago

December 2, 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:

30 November 2022

ENGINE: East of Suez Bunker Fuel Availability Outlook

Strong demand and stocks drawn in Singapore
OPL bunkering still suspended in Zhoushan
Mostly good availability in Indian ports

Singapore

Singapore has been witnessing robust VLSFO demand lately, which has contributed to tighten availability of the grade in the port, with lead times now stretching to almost two weeks ahead. Recommended lead times for HSFO are shorter at 7-9 days, and shortest for LSMGO at 5-7 days.

Residual fuel oil stocks in Singapore have averaged 5% lower so far in November than in October, according to Enterprise Singapore. This has brought the stocks further below their five-year average position for the time of the year. The stock draw has come despite a 13% increase in net imports this month, and could be a sign of strong demand for fuel oil.

East Asia

Bunker operations in Zhoushan’s outer port limits have been suspended amid bad weather since Sunday, putting a strain on the port's supply capacity. Bunkering might resume on 2 December, when calmer weather is forecast, a source says.

The port had been pricing VLSFO at elevated levels to other major Asian hubs since the beginning of November, but its price recently flipped to a discount to Singapore. The Chinese bunkering hub has been seeing sluggish bunker demand of late, a source says.

Recommended lead times for both VLSFO and LSMGO in Zhoushan are 2-3 days, and a longer seven days are advised for HSFO.

Weather-induced disruptions continue to hamper bunker operations across the southern ports of South Korea, sources say. Recommended lead times for all grades for both southern and western South Korean ports are 4-5 days, but the deliveries in the southern ports might be delayed due to bad weather.

Availability remains okay across all grades in Hong Kong with lead times of seven days. Some suppliers have been grappling with tight barge schedules, a source says.

South Asia

VLSFO availability in India’s Mumbai remains steady with lead times of 2-3 days advised.

Availability of VLSFO is good in Mundra on India's northwest coast and requires lead times of 2-3 days. Recommended lead times for VLSFO delivery in Kandla are 2-3 days.

While VLSFO availability is good in Cochin and Chennai on India's southern coast, VLSFO availability is subject to inquiry in nearby Tuticorin.

Lead times of 2-3 days for VLSFO are recommended in Visakhapatnam on the east coast.

Suppliers in Paradip on India’s east coast have almost run out of VLSFO. VLSFO can be delivered in Haldia with recommended lead times of 2-3 days.

Availability across all grades remains good in the Sri Lankan port of Colombo with lead times of six days recommend.

Middle East

Suppliers in Fujairah continue to grapple with weak demand so far this month. A source says that most suppliers and buyers are holding back transactions until the G7 price cap on Russian oil comes into effect to answer more questions around future supply-demand dynamics. This has contributed to weaken in the Fujairah bunker market.

Recommended lead times for both VLSFO and LSMGO in Fujairah are similar at around nine days, and HSFO requires shorter lead times of seven days.

LSMGO remains readily available in the Omani ports of Duqm and Sohar, with short lead times of around two days possible.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 2 December, 2022

Bunker Fuel

China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October

Global marine bunker development will be among main topics of discussion at the 7th International Petroleum and Natural Gas Enterprises Conference (IPEC).

Published

1 day ago

October 11, 2024

Admin

China: Zhoushan to host 7th IPEC commodities, bunker conferences on 16 to 17 October

The 7th International Petroleum and Natural Gas Enterprises Conference (IPEC) is taking place at Zhoushan, Zhejiang province, China between 16 to 17 October.

The agenda, provided by the Zhoushan High-tech Zone Administrative Committee to foreign event media partner Singapore bunkering publication Manifold Times, is as follows:

16 October

Registration and sign-in for participating guests
Meetings between Zhejiang Provincial and Zhoushan Municipal leaders with VIPs

17 October

Morning

Plenary Session of the Conference (Oriental Hall, Zhoushan International Conference Center)

Leader’s speech, guest keynote speech, signing of major projects

Discussion Topics [*17 October, 2pm to 5pm]

Focus Topic Meeting: Global marine bunker development*
Location: Haitian Hall, Haizhongzhou International Hotel, Zhoushan

14:00-14:05 - Opening of the Meeting

14:05-14:15 - Speech by Leaders

14:15-14:30 - Announcement of "Top Ten Global Bunkering Ports" and "Top Ten Global Bunkering Companies"

14:30-14:40 - Announcement of Construction Work of Northeast Asia Bonded Marine Fuel Bunkering Hub

14:40-14:50 – Launch ceremony of Zhoushan "White-list" Bunker Barge Mass Flow Meter System Pilot Certification Programme

14:50-15:10 - Signing Ceremony

15:10-16:10 - Keynote speech

16:10-16:35 - Coffee break

16:35-17:05 - Roundtable forum (Topic: Facing green and low-carbon transformation in global shipping, how do marine fuels change in response to the trend?)

17:05-17:35 - Roundtable forum (Topic: The road to develop high-quality offshore fuel bunkering metering under the new developments)

17:35-17:40 - Moderator’s summary

Utilising financial innovation, futures and spot cooperation to promote the construction of a hub for the allocation of bulk commodity resources*
Location: Putuo Hall, Zhoushan International Conference Center

Open development of global shipping trade*
Location: Donghai Hall, Hilton Zhoushan

International iron ore trade development*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan

Development of China's new chemical materials industry during the “15th Five-Year Plan”*
Location: Banquet Hall 1/3, The Westin Zhujiajian Resort, Zhoushan

Development of non-ferrous metal mining industry*
Location: Lianhua Ocean Hall, Hilton Zhoushan

16 and 17 October
International maritime law of the free trade port (zone)
Location: Fortune Hall, Zhoushan CaiFu Hotel

Photo credit: Zhoushan High-tech Zone Administrative Committee
Published: 11 October, 2024

Alternative Fuels

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

‘It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,’ says Vitol’s Head of Asia Mike Muller during a panel discussion.

Published

2 days ago

October 11, 2024

Admin

SIBCON 2024: Vitol anticipates securing LNG bunker licence in Singapore

Energy trader Vitol’s Head of Asia Mike Muller on Wednesday (9 October) said the company is anticipating being granted a LNG bunker licence in Singapore soon.

“It would be unthinkable not to deploy at least one of the three barges Vitol has on order in Singapore,” he said.

Mike Muller made the announcement during the Viewing the Energy Transition Through the Lens panel discussion at the 23rd Singapore International Bunkering Conference (SIBCON).

“We expect to see growth in LNG use as a bunker fuel for at least another decade, and probably longer,” he added.

On the increasing uptake of biofuels, he said Vitol is seeing demand for biofuel blended bunkers in Singapore roughly doubling every year at the moment, heading for around 1 million mt this year and maybe 2 million mt next year.

“Demand for 100% biofuel from shipping customers is also starting to pick up as of this year and we have led the way in commissioning new IMO type 2 barges to fulfil this demand - indeed an important Asian customer of ours has taken three deliveries of B100 UCOME biofuel just in recent weeks here in Singapore,” Muller explained.

Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

The time charter agreement with Avenir is for one newbuild 20,000m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Photo credit: Vitol
Published: 11 October, 2024

Bunker Fuel

SIBCON 2024: Bunker players sign SCMA pledge to drive progress within Maritime Singapore

Bunker players involved include Consort Bunkers, Equatorial Marine Fuel, Golden Island, Hong Lam Marine, Kenoil Marine Services, Marubeni International Petroleum and Sinopec Fuel Oil.

Published

2 days ago

October 11, 2024

Admin

SIBCON 2024: Bunker players sign SCMA pledge to drive progress within Maritime Singapore

Some 10 bunker players on Tuesday (8 October) signed a pledge with Singapore Chamber of Maritime Arbitration (SCMA) at the 23rd Singapore International Bunkering Conference and Exhibition (SIBCON).

The bunker players involved are Consort Bunkers Pte Ltd, Equatorial Marine Fuel Management Services Pte Ltd, Fratelli Cosulich Bunkers (S) Pte Ltd, Global Energy Trading Pte Ltd, Golden Island Pte Ltd, Hong Lam Marine Pte Ltd, Kenoil Marine Services Pte Ltd, Marubeni International Petroleum (S) Pte Ltd, Sinopec Fuel Oil (Singapore) Pte ltd and Victory Pte Ltd.

SCMA and the pledgees will work together to promote and enhance the capabilities and opportunities within the Maritime Singapore community and ecosystem.

Among the aspirational goals embodied by the SCMA Pledge is that the pledgees give preferential consideration, where appropriate, for the use of the SCMA Arbitration Rules for the resolution of their maritime or international trade disputes.

The bunker players may also use its best endeavours to support the Maritime Singapore community and ecosystem, including contributing to the development and dissemination of best practices as well as providing support and opportunity to young maritime legal and dispute resolution professionals in the form of internships, mentorships, and educational seminars aimed at fostering the next generation of maritime leaders.

SCMA, a specialist arbitration institution, is the only arbitration institution in Singapore focused on maritime and international trade disputes.

It offers the maritime and international trade sectors a set of arbitration rules and guidelines which are flexible and cost effective.

Users of SCMA arbitration include maritime companies, international traders and commodity companies for the resolution of their disputes such as those involving charterparty, bunker, commercial sales, cargo, oil and gas, shipbuilding and ship repair.

Photo credit: Singapore Chamber of Maritime Arbitration
Published: 11 October, 2024