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ENGINE: East of Suez Bunker Fuel Availability Outlook

OPL bunkering suspended in Zhoushan; demand weak in Hong Kong; availability good across several Indian ports.

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ENGINE East of Suez Bunker Fuel Availability Outlook

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:

14 February 2023

  • OPL bunkering suspended in Zhoushan
  • Demand weak in Hong Kong
  • Availability good across several Indian ports

 

Singapore

Bunker demand has been normal in Singapore so far this week. Availability of VLSFO and HSFO grades has improved slightly, with lead times shortening from 8-10 days last week to 7-8 days for VLSFO and 6-9 days for HSFO now.

Prompt LSMGO availability has improved. Lead times of 2-3 days are now advised, down from 5-6 days last week.

Singapore’s residual fuel oil stocks have averaged 3% higher so far this month than in January, according to Enterprise Singapore. The build has come despite a 17% decline in net imports. Both imports and exports are down this month.

Meanwhile, Singapore’s middle distillate stocks have averaged 11% lower so far in February than on average in January.

 

East Asia

Bad weather has kept bunkering suspended in Zhoushan’s outer port limits (OPL) area since Monday, according to White Whale Shipping Agency.

Weather-related disruptions have led to bunker congestion in the Chinese bunkering hub. OPL bunkering is likely to resume in Zhoushan from Wednesday evening, when calmer weather is forecast.

Some suppliers in Zhoushan are running low on VLSFO and LSMGO, while others have stocks. However, this has not led to tightness as demand remains very low, a source says.

VLSFO and LSMGO stems require 3-5 days of lead time in the Chinese bunkering hub. Availability of HSFO remains normal in the port, with lead times of 5-7 days.

However, strong wind gusts of 19-26 knots and waves up to a metre are forecast to hit Zhoushan between Friday and Tuesday next week, which might trigger yet another bunker suspension.

Strong winds and swells are forecast in Hong Kong, which could hamper bunkering until the beginning of next week.

Availability remains normal across all grades in Hong Kong, while demand has weakened of late, a source says. Recommended lead times are seven days across all fuel grades in the port. While lead times for VLSFO and LSMGO have gone up from 3-4 days last week, lead times for HSFO have been unchanged at seven days in both weeks.

Lead times for all grades across southern South Korean ports vary widely, with the shortest requiring three days and the longest needing almost 11 days. However, lead times are short in western South Korean ports at four days but are priced at a premium, a source says.

A source says rough weather might impact bunkering across the South Korean ports of Ulsan, Onsan, Daesan, Taean and Yeosu between 14-15 February and from 19 February onwards.

Bad weather might disrupt bunker operations in the Philippine port of Subic Bay throughout the week.

Strong wind gusts between 39-40 knots are forecast to hit the Thai ports of Koi Sichang and Leam Chabang on 17 February, which might hamper bunkering operations.

 

South Asia

Mumbai has good availability of VLSFO and LSMGO, with prompt dates available.

VLSFO and LSMGO can be delivered with around 2-3 days of lead time in several Indian ports, including Kandla on the northwest coast, Cochin and Chennai on the southern coast, and Visakhapatnam on the southwestern coast.

Availability of grades are subject to enquiry in Tuticorin in the southeast coast and Haldia on the eastern coast of India.

LSMGO availability remains good across the Sri Lankan ports of Colombo and Trincomalee, with prompt dates available.

 

Middle East

Most suppliers in Fujairah have been clearing backlogs created due to bad weather last week. This has contributed to slight tightness in the UAE port’s bunker market, which might persist until 19 February. However, some suppliers can offer prompt dates, a source says.

Lead times of around 11 days are recommended for HSFO, six days for VLSFO and four days for LSMGO in Fujairah.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 15 February, 2023

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Biofuel

Chimbusco and SPG complete first biofuel bunkering operation in Northern China

Chimbusco’s “DA YUAN YOU 8” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes of B24 biofuel at Qingdao Port.

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Chimbusco and SPG achieves first biofuel bunkering operation in Northern China

China Marine Bunker (PetroChina) Co Ltd (Chimbusco) and Shandong Port Group (SPG) recently said they successfully completed the first B24 biofuel bunkering operation in Northern China on 14 June.

Chimbusco’s “DA YUAN YOU 8 ” tanker refuelled the “HMM VANCOUVER” with 1,300 metric tonnes (mt) of B24 biofuel at Qingdao Port.

Chimbusco said the successful bunkering operation not only marks a milestone in the bonded biofuel bunkering business for international voyage vessels in northern China but also represents a critical milestone in the green and low-carbon transformation of the shipping industry around the Bohai Sea and throughout northern China. 

B24 biofuel is a blend of 24% waste cooking oil and 76% high-sulphur fuel oil. Authoritatively certified, the company said this fuel can significantly reduce carbon emissions from vessel operations by up to 20%, providing shipowners with an efficient and convenient low-carbon solution to comply with increasingly stringent International Maritime Organization (IMO) emission reduction regulations. 

Since the beginning of this year, Chimbusco said it has achieved top records of bunkering volumes in the green fuel sector. From the first successful operation at Ningbo-Zhoushan Port in eastern China to subsequent bunkering operations in Shenzhen, Xiamen, and other major ports across the country, the company has further consolidated its regular supply capabilities. 

During this in-depth cooperation with SPG’s Qingdao Port, Chimbusco’s “Green Energy Label” made its debut at the operation site. 

“This further confirms that Chimbusco is deploying green fuel bunkering services to help Chinese ports accelerate the construction of a maritime green energy supply network,” the company said. 

 

Photo credit: Shandong Port Group
Published: 20 June, 2025

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Ammonia

Korea to develop global standards for discharge of toxic effluent from ammonia-fuelled ships

KR and major Korean shipyards such as HD Hyundai Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Samho and Samsung Heavy Industries will be part of the group.

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Korea to develop global standards for discharge of toxic effluent from ammonia-fuelled ships

Classification society Korean Register (KR) said it has launched a joint working group to establish international standards for the safe discharge of toxic ammonia effluent generated from ammonia-fuelled ships.

Major Korean shipyards such as HD Hyundai Heavy Industries, HD Korea Shipbuilding & Offshore Engineering, HD Hyundai Samho, Samsung Heavy Industries, Hanwha Ocean, and the Korea Testing & Research Institute (KTR) will be part of the group. 

KR said ammonia is attracting attention as an eco-friendly alternative fuel that does not emit carbon dioxide, a greenhouse gas, but due to its strong toxicity and concerns about marine pollution, it is essential to establish separate safety standards. 

In particular, ammonia effluent generated from wet treatment systems currently has no clear treatment standards, which causes considerable technical and operational uncertainty in ship design and operation.

Accordingly, the group aims to establish international standards related to the storage, treatment, and discharge of ammonia wastewater generated from ships and to officially propose this to the International Maritime Organization (IMO) through the Korean government.

The launch of this consultative body is a follow-up measure to a proposal by KR and the Korean government to the IMO in 2024 for the need to establish safety standards for ammonia effluent, which was officially approved at the 83rd IMO Marine Environment Protection Committee (MEPC) in April 2025. The group plans to propose a draft standard to the IMO in 2026 and lead international discussions.

Kim Tae-seong, Head of the KTR headquarters, said: “We will provide reliable scientific data to establish ammonia wastewater management guidelines and treatment standards. We will actively cooperate to secure the international competitiveness of the domestic shipbuilding and shipping industries.”
Kim Kyung-bok, Vice President of KR, said: “This consultative body is a symbolic case of our shipbuilding and shipping industries joining forces to lead the establishment of international safety standards based on our country’s advanced technologies.”

“KR will continue to support the development of alternative fuel safety standards and international standardisation efforts together with our government.”

 

Photo credit: Korean Register
Published: 20 June, 2025

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Legal

Florida bunker supplier indicted over alleged USD 5 mil SEA Card fuel purchase fraud

Owner of Independent Marine Oil Services, allegedly submitted fake invoices to US Navy ships and other vessels through the SEA Card Program, which allows US vessels to purchase fuel from suppliers at ports.

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RESIZED Pepi Stojanovski from Unsplash

The US Department of Justice recently said a federal grand jury in Miami returned an indictment recently charging a Florida business owner with multiple counts of wire fraud, money laundering, and forgery for his alleged role in orchestrating a scheme to defraud the US Department of Defense and other federal agencies. 

He allegedly did so by submitting altered and fake invoices to US Navy ships and other vessels through the SEA Card Program, which allows US vessels to purchase critical fuel from suppliers at ports around the world.

According to court documents filed in the Southern District of Florida, between August 2022 and January 2024, Jasen Butler, 37, of Jupiter, Florida, the owner of Independent Marine Oil Services LLC, submitted dozens of falsified documents to multiple U.S. warships — including the USS Patriot — demanding and receiving over USD 5 million dollars in payments for phony expenses that Butler had not incurred. 

These ships were attempting to purchase fuel in international ports such as Saudi Arabia, Singapore, and Croatia, among others. Butler also concealed his identity from government officials by using a false name and feigning employment by a fictitious fuel division of a different company. As alleged in the indictment, Butler used the millions in fraud proceeds to personally enrich himself and purchase multiple properties, including in Florida and Colorado. 

“This indictment sends a clear, public message: the Antitrust Division and its Procurement Collusion Strike Force under President Trump will not rest until all who defraud the brave men and women of the U.S. military and the American taxpayers receive swift justice,” said Assistant Attorney General Abigail A. Slater of the Justice Department’s Antitrust Division.

“Our office is steadfast in its commitment to prosecute individuals that seek to unjustly profit at the expense of the U.S. military,” said U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida. “Such fraud undermines military readiness and jeopardizes the dedicated service members who selflessly defend our country.”

“Mr. Butler’s alleged involvement in unlawfully submitting fraudulent invoices related to U.S. naval ships receiving fuel during port visits is an affront to the warfighter and taxpayer,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS remains committed to thoroughly investigating those who commit fraud impacting the Department of Navy.”

“Those who exploit the Department of Defense for personal gain — by inflating costs, falsifying bids, or manipulating the contracting process — will be relentlessly pursued and held accountable,” said Special Agent in Charge Jason Sargenski of the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS), Southeast Field Office. 

“DCIS and our law enforcement partners remain unwavering in our mission to protect taxpayer dollars and preserve the integrity of DoD contracts that directly support our nation’s warfighters.”

If convicted, Butler faces maximum penalties of 20 years in prison for each count of wire fraud, up to 10 years for each count of forgery, and up to 10 years for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The case was investigated by the Coast Guard Investigative Service, Defense Criminal Investigative Service, and Naval Criminal Investigative Service.

 

Photo credit: Pepi Stojanovski from Unsplash
Published: 20 June, 2025

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