Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

VLSFO and LSMGO tight in Singapore; demand still weak in Zhoushan; LSMGO availability good across Oman.

Published

2 years ago

December 7, 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:

6 December 2022

VLSFO and LSMGO tight in Singapore
Demand still weak in Zhoushan
LSMGO availability good across Oman

Singapore

Steady demand in Singapore has contributed to tighten the port’s bunker market. Recommended lead times in Singapore for VLSFO now stretch to 11-13 days as most suppliers are fully booked for prompt dates. But some suppliers can still offer prompt dates at a price premium, a source says.

Availability of LSMGO has become tighter in the port, with lead times now stretching to 10-12 days. Lead times for HSFO vary between suppliers and are in a wide range of 6-10 days.

Singapore's inventories of both middle distillates and residual fuel oil have been draw, according to Enterprise Singapore. Singapore’s middle distillate stocks averaged 3% lower in November than in October. Residual fuel oil stocks averaged 5% lower despite an increase in imports.

East Asia

Zhoushan has been grappling with weather-related disruptions since last week. Bad weather is likely to impact bunker operations persistently throughout the winter, a source says.

Recommended lead times for VLSFO in Zhoushan are 3-5 days. Notably, the Chinese bunkering hub has been plagued with very weak demand for a while now.

Availability of HSFO is getting tighter in Zhoushan, as most suppliers are running low on stocks. Recommended lead times for HSFO in the port vary as availability is currently subject to enquiry.

Meanwhile, LSMGO has the shortest lead times in Zhoushan at 2-3 days.

Meanwhile, VLSFO supply remains steady in Hong Kong, with lead times of around five days. But prompt dates for the grade are a little difficult to lock in as barge availability remains tight, a source says.

Weather disruptions might hamper bunker operations in the South Korean ports of Ulsan, Onsan, Daesan, Taean and Yeosu across the week, sources say. VLSFO and LSMGO grades are available on prompt dates across South Korean ports, with short lead times of three days advised. Recommended lead times for HSFO are longer and vary between 5-9 days in South Korean ports.

LSMGO availability is normal in the Philippines' Manila, with lead times of three days.

VLSFO and LSMGO availability is normal in Indonesian ports. One supplier can supply prompt stems.

South Asia

Availability of VLSFO remains steady in India’s Mumbai, with lead times of around five days.

VLSFO availability remains good across Mundra and Kandla on the northwest coast, with lead times of three days.

Cochin and Chennai on India's southern coast both have VLSFO readily available. Prompt dates for both VLSFO and LSMGO remain available in Visakhapatnam on India’s southwestern coast.

Meanwhile, lead times for VLSFO in Paradip on India’s east coast are subject to enquiry. Haldia has good availability of VLSFO.

Availability across VLSFO and LSMGO remains normal in the Sri Lankan port of Colombo with short lead times of three days. Only one supplier can offer HSFO in the port, and with lead times of only three days, a source says.

VLSFO availability remains good in Trincomalee.

Middle East

Recommended lead times for VLSFO in Fujairah have increased to 10 days, from seven previously, as availability has been getting tighter due to delays at loading terminals.

Fujairah’s LSMGO requires lead times of around nine days, while shorter lead times of six days are advised for HSFO in the UAE port.

Availability of prompt dates for VLSFO remains good in Oman’s Sohar, where it is delivered via barge. Lead times of around three days are recommended.

Suppliers can offer LSMGO in the Omani ports of Muscat, Duqm, Salalah and Sohar via truck, with prompt deliveries in 1-2 days possible.

By Tuhin Roy

Photo credit and source: ENGINE
Published:7 December, 2022

Legal

Shell MGO bunker heist: Bunker clerk gets jail time for helping Sentek acquire misappropriated fuel

Wong Wai Meng was sentenced to seven years, four months and two weeks’ jail on 10 January for helping the company acquire more than 28,000 mt of the misappropriated fuel worth USD 13.58 million.

Published

13 hours ago

January 13, 2025

Admin

A bunker clerk, who was previously employed by Sentek Marine & Trading (Sentek), was sentenced to seven years, four months and two weeks’ jail for helping the company acquire more than 28,000 metric tonnes (mt) of the misappropriated fuel worth USD 13.58 million (SGD 18.26 million), The Straits Times reported on Friday (10 January).

Wong Wai Meng, was working for Singapore-based firm Sentek at the time of the offences.

Wong, who received more than USD 286,000 from the company for his assistance, pleaded guilty in November 2024 to 12 counts of intentionally helping the company acquire the misappropriated fuel.

He committed the offences over 46 occasions between August 2014 and December 2017.

Wong is among the three bunker clerks previously employed by Sentek, who were charged for offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and the Prevention of Corruption Act (PCA).

Another bunker clerk among the three charged, Wong Kuin Wah, 61, was sentenced to seven years and six months’ jail on 18 November for his role in misappropriating more than 27,000 tonnes of gas oil worth around USD 12.8 million (SGD 17.2 million).

The third individual who was charged, Boo Pu Wen, reportedly passed away in July 2023 and had his charges abated following his death, meaning Boo’s court proceedings over his 19 charges at the time came to an end.

Former Shell employees, who were key members of a group who dishonestly misappropriated fuel from Shell Pulau Bukom, were sentenced to jail in court earlier.

Earlier coverage of developments by Manifold Times regarding the Shell MGO bunker heist can be found below:

Photo credit: Katrin Bolovtsova
Published: 13 January, 2025

Winding up

Singapore: Liquidator issue notice of intended dividend for Parakou Shipping

Creditors will need to produce proofs of debt to liquidator of Parakou Shipping by 24 January, according to Government Gazette notice.

Published

13 hours ago

January 13, 2025

Admin

A notice to declare intended dividend of Parakou Shipping Pte Ltd to its creditors has been posted on the Government Gazette on Friday (10 January).

The following are the details of the notice of intended dividend for the first dividend:

Name of Company : Parakou Shipping Pte Ltd (In Creditors’ Voluntary Liquidation)

Address of Registered Office : c/o KordaMentha, 16 Collyer Quay, #30-01, Singapore 049318

Last Day of Receiving Proofs : 24 January 2025 (if not already lodged)

Name of Liquidator : Cameron Duncan

Address : c/o KordaMentha, 16 Collyer Quay, #30-01, Singapore 049318

Photo credit: steve pb from Pixabay
Published: 13 January, 2025

Alternative Fuels

DNV: LNG dominates alternative-fuel vessel orderbook for 2024

According to DNV, LNG was the industry’s alternative fuel of choice by year-end; 264 LNG vessel orders were placed in 2024, over double that of 2023 which was 130 orders.

Published

13 hours ago

January 13, 2025

Admin

The maritime industry’s exceptional newbuilding year 2024 drove a significant rise in orders for alternative-fuelled vessels, according to the latest data from DNV’s Alternative Fuels Insights (AFI) platform.

A total of 515 such ships were ordered, representing a 38% year-on-year increase compared to 2023, underscoring the industry's growing commitment to decarbonization.

The growth in alternative-fuelled vessel orders has been heavily driven by the container and car carrier newbuild boom over the last three years. In 2024, 69% of all container ship orders were for ships capable of being powered by alternative fuels, driven by cargo owners responding to consumer demands for more sustainable practices and liner companies preparing to replace older tonnage. The preferred fuel choice for this segment was LNG (67%). In total the container and car carrier segments made up 62% of all alternative fuel orders in 2024.

Knut Ørbeck-Nilssen, CEO Maritime at DNV, said: “As we work towards decarbonizing the industry, we are encouraged by the growth in alternative fuel vessels over the past few years. While recent figures are promising, we must keep pushing forward.”

“The technological transition is underway, but supply of alternative fuel is still low. As an industry we need to work with fuel suppliers and other stakeholders to ensure that shipping has access to its share of alternative fuels in the future. It is also important that the safety of seafarers is ensured as we make this transition. This will require investment in upskilling and training.”

LNG was not the only fuel on shipowners’ minds as 2024 saw them betting on multiple alternative fuels. 166 methanol orders were added (32% of the AFI orderbook), reflecting shipping’s growing interest in a diverse fuel pool as it strives to reduce greenhouse gas emissions. Most of these methanol orders (85) were in the container segment.

While methanol drove newbuilding orders for alternative-fuelled vessels at the beginning of the year, LNG was the industry’s alternative fuel of choice by year-end. The number of LNG vessel orders placed in 2024 was 264, over double that of 2023 (130).

Ammonia saw promising momentum in the earliest months of the year and continued to grow throughout 2024. A total of 27 orders were placed for ammonia-fueled vessels. The first non-gas carrier ammonia-fuelled vessels orders were placed in 2024 (10), mainly in the bulk carrier segment (5). While still in its early stages, this provides further evidence of ammonia's emergence in the alternative fuel market.

Deliveries and bunkering

The number of LNG-fuelled ships in operation doubled between 2021 and 2024, with a record number of deliveries (169) in 2024. By the end of 2024, 641 LNG-powered ships were in operation. According to the AFI orderbook, this number is expected to double by the end of the decade.

While the bunkering infrastructure for some alternative fuels remains underdeveloped, LNG bunkering is maturing. The number of LNG bunker vessels in operation grew from 52 to 64 over the last year, with continued growth expected in 2025. The significant gap between LNG bunkering supply and demand is expected to widen over the next five years based on the AFI orderbook.

Addressing this challenge by developing the appropriate infrastructure for alternative fuels – both for vessels and bunkering - can create demand signals to stimulate long-term fuel production. With the EU regulatory package, Fit for 55, setting requirements on a large network of ports to have LNG bunkering infrastructure, it is expected that the availability of LNG in ports will increase.

Jason Stefanatos, Global Decarbonization Director at DNV, said: “Market conditions, infrastructure development, fuel production updates, and cargo owners' needs are all shaping the demand for different fuels, both in the short and long term.”

“The shifting trends in LNG and methanol orders this year might be due to the slow development of green methanol production. In the long run, green methanol has potential to be part of the energy mix along with ammonia.”

“In parallel, LNG offers a vital bridging fuel option benefiting from existing infrastructure and short-term emissions reductions while being capable of acting as a long-term solution as well, assuming RNG (Renewable Natural Gas) will be available and provided at a competitive price.”

Photo credit: DNV
Published: 13 January, 2024