Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

LSMGO availability good in Singapore; demand weak in Zhoushan; several ports face weather disruptions.

Published

2 years ago

February 22, 2023

Admin

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:

21 February 2023

LSMGO availability good in Singapore
Demand weak in Zhoushan
Several ports face weather disruptions

Singapore

Singapore has been witnessing steady bunker demand so far this week. Availability of prompt dates for VLSFO and HSFO remains tight in the port, with recommended lead times of 7-9 days and 8-9 days, respectively. This is almost same as the previous week’s 7-8 days and 6-9 days, respectively.

Residual fuel oil stocks in Singapore have averaged 2% higher so far in February than in January, according to Enterprise Singapore. The port’s net fuel oil imports have declined 6% so far this month than across January. Both fuel oil imports and exports are down this month.

Meanwhile, Singapore’s middle distillate stocks are down 11% lower so far this month amid few incentives to store product in a backwardated market.

The port’s LSMGO price currently lingers around multi-month low levels after having lost a massive $122/mt since the beginning of this month. The downward LSMGO price trend in Singapore has largely mirrored front-month Singapore 10ppm gasoil futures.

Singapore 10ppm is in backwardation, with nearly $8/mt between the front- and second-month contracts. Its second-to-third month spread is slightly wider at around $9/mt. LSMGO stems need lead times of 2-3 days, steady with prior week.

Strong wind gusts between 19-22 knots are forecast in Singapore on 26 February, which may hit bunkering operations.

East Asia

Bunkering has resumed at Zhoushan's slightly sheltered Xiushandong anchorage and at the inner anchorage of Mazhi after being suspended by bad weather on Monday evening, according to White Whale Shipping Agency.

Meanwhile, rough weather has kept bunkering halted in the Tiaozhoumen and Xiazhimen anchorages. The port is currently witnessing strong wind gusts of up to 17 knots.

Bunkering operations are likely to resume in the Tiaozhoumen and Xiazhimen anchorages from morning tomorrow when calmer weather is forecast.

Fuel availability remains tight for prompt dates across all grades in Zhoushan, but recent bouts of weather disruptions have hit bunker demand and by extension prevented further tightness in the port. VLSFO and LSMGO stems require lead times of 3-5 days, and HSFO needs 5-7 days.

However, strong wind gusts of 19-24 knots and swells of close to a metre are forecast to hit the Chinese bunkering hub between 24-25 February, which might lead to another bunker suspension.

Strong wind gusts and swells are also forecast to hit Hong Kong between 21-22 February and towards the beginning of next week, which might impact bunkering operations in the port.

Availability remains good across all grades in Hong Kong, while demand has been sluggish. VLSFO and LSMGO stems require lead times of around four days in the port, down from seven days previously. Prompt dates for HSFO are, however, subject to enquiry, a source says.

Bunker demand remains sluggish across South Korean ports, a source says. Lead times across all grades in southern South Korean ports are 4-8 days, down from a wide range of 3-11 days in the prior week. Meanwhile, stems require 3-4 days in western South Korean ports, almost same as the last week’s around four days.

Bad weather is forecast intermittently through the week in the South Korean ports of Ulsan, Onsan, Daesan, Taean and Yeosu, which may hamper bunkering, a source says.

Bad weather might disrupt bunker operations in the Philippine port of Subic Bay between 25-28 February.

The Thai ports of Koi Sichang and Leam Chabang are likely to experience adverse weather conditions between 26-28 February, which might hamper delivery of stems.

South Asia

VLSFO and LSMGO remains readily available in India’s Mumbai, with short lead times of 2-3 days.

Availability of VLSFO and LSMGO remains good in Kandla on India’s northwest coast, with lead times of 2-3 days advised.

Cochin and Chennai on the southern coast of India have good availability of both VLSFO and LSMGO, with lead times of 2-3 days recommended. Meanwhile, availability of both the grades remains subject to enquiry in Tuticorin.

Prompt dates are available for both VLSFO and LSMGO in Visakhapatnam on India’s southwestern coast.

Availability of the grades in Haldia on India’s east coast is subject to enquiry.

However, the Indian ports of Kandla, Sikka and Mundra are struggling with congestion and backlogs, which is only expected to ease by 27 February, a source says.

LSMGO and HSFO are readily available in the Sri Lankan port of Colombo, with prompt dates possible.

Middle East

Availability across all grades remains tight in Fujairah as several suppliers are working to clear backlogs created by rough weather conditions over the weekend. A source says suppliers are working through choppy weather conditions to prevent congestion at the port.

Normal bunker demand at the UAE port has contributed further to the tightness of the port. Lead times of around seven days are recommended across all grades in the port now. While lead times are up for VLSFO (around six days) and LSMGO (around four days) from the previous week, it has come down for HSFO (almost 11 days).

Availability of LSMGO remains very good in the Omani ports of Muscat, Salalah, Sohar and Duqm, with prompt dates available.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 22 February, 2022

Alternative Fuels

SMW 2025: Singapore to launch new standard for electric harbour craft this week

MPA and Enterprise Singapore will launch the Technical Reference 136 to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft, says minister.

Published

6 hours ago

March 24, 2025

Admin

SMW 2025: Singapore to launch new standard for electric harbour craft this week

Minister of State for Transport Murali Pillai on Monday (24 March) said Singapore will launch a new standard for electric harbour crafts this week as part of Maritime and Port Authority of Singapore’s (MPA) efforts in facilitating decarbonisation for domestic harbour craft to achieve the republic’s national target of net-zero emissions by 2050.

“MPA and Enterprise Singapore will launch the new Technical Reference 136 this week to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft,” Murali said during his speech at the opening ceremony of the Singapore Maritime Week 2025 (SMW 2025).

“This will enhance the safety and interoperability of electric harbour craft charging infrastructure.”

This is one of the initiatives MPA is undertaking to prepare for the bunkering of alternative marine fuels and decarbonising Singapore’s domestic maritime sector.

The minister said Singapore is taking steps to support the use of various fuels by the industry and position Singapore as a leading bunkering hub for alternative fuels.

“Over the past two years, we have supported trials of alternative fuels such as ammonia and methanol. These have contributed to the development of new technical references and IMO guidelines to enable the safe and efficient use of these marine fuels,” he said.

“MPA and Enterprise Singapore published the new Technical Reference 129 on Methanol Bunkering earlier this month, and we plan to launch a new standard for ammonia bunkering later this year.”

He added MPA has also recently allowed licensed bunker tankers to carry and deliver biofuels up to B30.

“Pilots for up to B100 are ongoing, and we welcome bunker suppliers to engage in these pilots,” he said.

At the opening ceremony of SMW 2025, Senior Minister Lee Hsien Loong, together with Murali, also launched Singapore’s first Maritime Digital Twin, an advanced simulation model developed by MPA in partnership with the Government Technology Agency of Singapore (GovTech) that integrates real-time data to enhance decision-making and improve management of maritime operations in Singapore waters.

Murali said the digital twin will integrate data from different sources and provide a platform for information sharing. This will enable the development of tools to optimise port efficiency and reliability above, at and below the sea surface.

“For example, the digital twin will enable scenario simulations and dispersion modelling, which can inform standard operating procedures for the safe bunkering of alternative fuels such as methanol and ammonia,” he said.

The minister added MPA will roll out the digital twin to pilot users later this year, before progressive implementation for the wider industry.

“In future, we can extend this to the global maritime ecosystem through our Green and Digital Shipping Corridors with other countries and ports,” he said.

Photo credit: Maritime and Port Authority of SingaporePublished: 24 March, 2025

Alternative Fuels

TFG Marine welcomes first of four ‘L’ series IMO type II bunkering tankers of Consort Bunkers

TFG Marine to operate Consort Bunkers’ bunkering tanker “Pearl Lavender”, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, at Singapore port from April onwards.

Published

6 hours ago

March 24, 2025

Admin

TFG Marine welcomes first of four 'L' series IMO type II bunkering tankers of Consort Bunkers

Global marine fuel supply and procurement firm TFG Marine on Friday (21 March) said it attended the delivery ceremony of bunker tanker Pearl Lavender at China Merchants Jinling shipyard in Nanjing.

The IMO type II chemical bunkering tanker newbuilding is amongst others under long-term time charter from Singapore-based bunker supplier and logistics services provider Consort Bunkers Pte Ltd (Consort).

"This state of the art vessel, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, will be operational at the Port of Singapore from April 2025, further advancing our product offering to our client base in the APAC region," said TFG Marine.

"As the first of four barges in this order, this investment builds on our commitment to low-carbon fuel bunkering infrastructure, reinforcing our vision for a multi-fuel future.

"With methanol, biofuels, ammonia, and other alternative fuels playing an increasingly significant role alongside traditional marine fuels, we continue to support the industry's transition towards cleaner energy solutions."

Manifold Times previously reported that Consort first contracted six ‘L’ series 6,500 dwt IMO Type II bunker tankers with China Merchants Jinling Shipyard (Nanjing) Co., Ltd. in April 2023.

The ‘L’ series of bunker tanker newbuildings gained recognition from the China Association of The National Shipbuilding Industry (CANSI) as amongst the Chinese shipbuilding sector’s top 10 innovative vessels for 2024.

Last year, TFG Marine announced the signing of a long-term time charter agreement with Singapore-based bunker supplier and logistics services provider Consort Bunkers for four newbuild bunker tankers.

Photo credit: TFG Marine
Published: 24 March, 2025

Sanctions

US OFAC sanctions first Chinese teapot refinery and oil tankers over Iranian links

Shandong Shouguang Luqing Petrochemical and its chief executive officer were added to OFAC’s sanctions list for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil.

Published

6 hours ago

March 24, 2025

Admin

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday (20 March) sanctioned a “teapot” oil refinery and its chief executive officer for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil, including from vessels linked to Ansarallah, commonly known as the Houthis, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL).

Shandong Shouguang Luqing Petrochemical Co., Ltd (Luqing Petrochemical), a teapot refinery in Shandong Province, has purchased millions of barrels of Iranian oil worth approximately half a billion dollars.

Luqing Petrochemical received Iranian oil transported by shadow fleet vessels, some of which have been sanctioned for their role transporting Iranian petroleum linked to the Houthis and MODAFL, including the MEHLE (IMO: 9191711) and the KOHANA (IMO: 9254082). In mid-2022, Luqing Petrochemical was identified as a buyer of Iranian oil associated with the Iranian military and Iranian military forces.

Luqing Petrochemical is being designated pursuant to E.O. 13902 for operating in the petroleum sector of the Iranian economy. PRC national Wang Xueqing serves as the chief executive officer and legal representative of Luqing Petrochemical, and is being concurrently designated pursuant to E.O. 13902 for having acted or purported to act for or on behalf of, directly or indirectly, Luqing Petrochemical.

“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” said Secretary of the Treasury Scott Bessent.

“The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”

OFAC additionally imposed sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil, comprising part of Iran’s “shadow fleet” of tankers supplying teapot refineries like Luqing Petrochemical.

Iranian crude oil is transported to teapot refineries via a “shadow fleet” of vessels that usually engage in deceptive shipping practices, including automatic identification system (AIS) manipulation.

OFAC sanctioned eight vessels that constitute part of this fleet, including the Comoros-flagged NATALINA 7 (IMO: 9310147), Panama-flagged CATALINA 7 (IMO: 9310159), AURORA RILEY (IMO: 9181649), and VIOLA (IMO: 9254915), San Marino-flagged MONTROSE (IMO: 9281695), Barbados-flagged VOLANS (IMO: 9422988) and BRAVA LAKE (IMO: 9232876), and the currently unflagged TITAN (IMO: 9293741).