Business

ENGINE: East of Suez Bunker Fuel Availability Outlook

Prompt VLSFO and HSFO supply tight in Singapore; bad weather hinders bunkering in Zhoushan; LSMGO availability good in Omani ports.

Published

2 years ago

April 19, 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:

18 April 2023

Prompt VLSFO and HSFO supply tight in Singapore
Bad weather hinders bunkering in Zhoushan
LSMGO availability good in Omani ports

Singapore

Demand has been slow in Singapore so far this week. All bunker grades remain tight in the port. Lead times of 10-12 days are recommended for VLSFO deliveries – slightly lower than last week's 11-13 days, while HSFO requires 4-11 days – marginally up from 3-10 days last week.

LSMGO supply is said to be normal there, requiring lead times of 3-7 days – almost unchanged from last week.

Singapore’s residual fuel oil stocks have averaged 6% higher so far this month than in March, according to Enterprise Singapore. Stocks are higher despite a 51% drop in net imports. Exports are up by a massive 55%, while imports are down by 18% to a nine-month low. This has pushed the port’s trade balance further into net exports this month.

Meanwhile, Singapore’s middle distillate stocks have declined by 6% so far this month over March levels.

East Asia

Bunker deliveries have resumed at Zhoushan's slightly more sheltered Xiushandong anchorage and at the port's inner anchorage of Mazhi on Tuesday after being suspended by rough weather since Sunday, a source says.

Meanwhile, bunkering is still suspended at the port’s Tiaozhoumen and Xiazhimen anchorages. Calmer weather conditions from Friday could allow bunkering to fully resume across anchorages.

Lead times of 5-7 days are generally recommended for VLSFO and HSFO deliveries in the Chinese bunkering hub – unchanged from last week. LSMGO availability is good, with lead times of 3-5 days.

In Hong Kong, HSFO availability has become more limited and subject to enquiry. But availability of VLSFO and LSMGO has improved in the port. Lead times have halved from past week's 8-9 days to around four days now.

Meanwhile, availability across all bunker fuel grades have improved in South Korean ports. While lead times for all grades have shortened in southern South Korean ports from 3-10 days last week to 3-7 days now, lead times across all fuel grades are even shorter in western South Korean at 4-5 days.

South Korean ports have been pricing VLSFO very competitively recently, which might spur further demand in the days to come, a source says.

Rough weather conditions are forecast between 21-24 April and could trigger intermittent suspensions or disrupt deliveries in the ports in the South Korean ports of Ulsan, Onsan, Daesan, Taean and Yeosu.

Adverse weather conditions are also predicted to hamper bunker deliveries in the Thai port of Koh Sichang between 21-22 April, the Vietnamese port of Hai Phong between 21-23 April, and the Kiwi port of Tauranga on 22 April.

South Asia

VLSFO and LSMGO availability remains good in India's Visakhapatnam and Kandla, with shorter lead time of 2-3 days.

Cochin and Chennai on the southern coast of India also have good availability, while VLSFO and LSMGO remain subject to availability in Mumbai. Both grades remain subject to enquiry in Tuticorin and Haldia ports. One supplier in Paradip is running low on VLSFO stocks.

However, bad weather may disrupt bunkering in India’s west coast ports of Sikka and Kandla between 20-22 April and 19-22 April, respectively, and in the southwestern port of Visakhapatnam on 19-22 April, a source says.

The Sri Lankan ports of Colombo and Trincomalee have good availability of LSMGO, with prompt dates available.

Middle East

Prompt availability of all bunker fuel grades is tight in Fujairah as several suppliers are still grappling with loading delays caused by bad weather last week. Demand has been good in the port, a source says. Lead times of 5-7 days are recommended across all grades – similar to last week. However, some suppliers can offer prompt stems for all grades depending on the quantity, a source says.

Lead times of 5-7 days are also advised across all fuel grades in another UAE port of Khorfakkan - unchanged over the last couple of weeks.

The Omani ports of Muscat, Salalah, Sohar and Duqm have LSMGO readily available.

By Tuhin Roy

Photo credit and source: ENGINE
Published: 19 April, 2023

LNG Bunkering

Singapore: MPA launches EOI to expand LNG bunkering services amid growing demand

MPA is seeking proposals to explore scalable solutions for sea-based LNG reloading to complement existing onshore LNG bunkering storage and jetty capacities and e/bio-methane supply as a marine fuel.

Published

1 day ago

December 13, 2024

Admin

The Maritime and Port Authority of Singapore (MPA) has launched an Expression of Interest (EOI) to explore scalable solutions for sea-based liquefied natural gas (LNG) reloading to complement the existing onshore LNG bunkering storage and jetty capacities and the supply of e/bio-methane as marine fuel in the Port of Singapore.

MPA said LNG bunkering in Singapore has grown from 16,000 tonnes delivered in 2022 to over 385,000 tonnes delivered from January to October 2024.

According to the EOI, demand for LNG bunkering is expected to grow further with a growing global fleet of LNG dual-fuelled vessels and competitive LNG bunker prices.

“The EOI seeks to gather proposals on three areas: to scale up sea-based reloading operations, including ship-to-bunker barge LNG operations; to facilitate the supply of LNG alternatives such as liquefied bio-methane; and to develop floating platform concepts to enhance bunkering safety and efficiency,” MPA added.

“The EOI proposals should also include mitigation measures to address the issue of methane slip on a well-to-wake basis.”

Participants in the EOI do not need to be an existing LNG bunkering licensee. Participants are required to propose models for operationalising sea-based LNG reloading starting from 2025. Participants selected will be required to conduct trials in Singapore to validate the proposed solution’s operational feasibility and safety.

“Insights gained from the EOI and trials will inform MPA’s review of the LNG licensing framework, including enhancements to supply to better serve the industry’s bunkering needs,” it said.

Note: Interested parties can visit the MPA website for details and submission guidelines. Proposals must be submitted by 28 February 2025, 1pm (Singapore time).

Photo credit: Manifold Times
Published: 13 December, 2024

Events

Malaysia: 12th PorTech Asia Summit to bring together leaders in port industry

Event, which will be held on 9 to 10 January, will tackle important topics in the port industry including challenges and opportunities for Asian Port Industry as well as sustainable green development of ports.

Published

1 day ago

December 13, 2024

Admin

Malaysia: 12th PorTech Asia Summit to bring together leaders in port industry

The 12th PorTech Asia Summit is now just one month away, with doors opening at Berjaya Times Square Hotel in Kuala Lumpur, Malaysia on 9 to 10 of January.

The summit is organised and hosted by Shine Consultant and co-organised by ASEAN Ports Association (APA).

Themed Smart, Green, Multi-win, the summit will gather leaders and experts in the field of port technology around the world to discuss and promote the innovation and development of the port industry in the digital era.

Some speakers who were invited to share their unique insights and valuable experiences in their respective fields include:

Dato' Monaliza Binti Suhaimi, General Manager, Johor Port Authority
YBhg. Dato' Dr. Vijayaindiaran A/LR.Viswalingam, General Manager, Penang Port Commission
Uematsu Hisataka, President, Port of Yokohama, Japan
Vineet Mahajan, Vice President & Head of Sustainability, DP World APAC
Liu Chang Man, Vice President, Shanghai International Port (Group) Co., Ltd
Sushil Kumar Singh, Chairman, Mumbai Port Authority and Deendayal Port Authority
Mazlim Bin Husin, Chief Commercial Officer, Kuantan Port
Mohd Khairul Azizat Johari, Head of Facility Management, Johor Port Berhad, Malaysia
Budi Cahyono, Vice President Director, PT Jakarta International Container Terminal
Eun-kyoung Park, General Manager, Overseas Business Department, Busan Port Authority
Ivan Fantin, Vice President, Chief Lean Officer, APM Terminals, Maersk
Desmond Ong, Chief Digital Officer, Jurong Port, Singapore

Agenda

Day 1: 9 January

Session 1: Challenges and Opportunities for Asian Port Industry

Session 2: Blending Old and New: Port Construction and Upgrade Projects

Day 2: 10 January

Session 3 Forum: Efficiency Improvement and Business Innovation Driven by Digital Intelligence

Session 4 Forum: Green & Safety - Building Sustainable Development Capacity of Ports

Shine Consultant is inviting representatives from government and port authorities, industry associations, port terminal owners, digital solution providers, port machinery and equipment suppliers, research institutions, professional service organizations, and other relevant institutions to attend the summit.

Participants will have the opportunity to exchange ideas with industry leaders and jointly explore the future trends and innovative pathways of the port industry.

Interested parties may contact:

Jenny Wu
Tel: (86 21) 6095 7179
E-mail: [email protected]
Company: Shine Consultant International Ltd.

Or scan QR code to register. Interested parties may also register here.

qr code portech

Photo credit: Shine Consultant
Published: 13 December, 2024

LNG Bunkering

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Firm will supply cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel currently being built at Nantong CIMC Sinopacific Offshore & Engineering shipyard in China.

Published

1 day ago

December 13, 2024

Admin

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Wärtsilä Gas Solutions, part of technology group Wärtsilä, on Friday (13 December) said it has won a contract to supply Cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel.

The vessel is being built at the Nantong CIMC Sinopacific Offshore & Engineering shipyard in China, for global energy company Vitol.

“Wärtsilä’s ability to engineer, design and deliver a complete system, including the Boil-Off Gas (BOG) management, integrated fuel supply, custody transfer and bunkering transfer systems, was central to the contract award,” Wärtsilä said, adding the order was booked by the company in Q4, 2024.

Richie Zhu, Sales Manager, Wärtsilä Gas Solutions, China, said: “LNG is today an important marine fuel and is rapidly becoming the preferred choice for owners and operators seeking more sustainable fuel options. The market for LNG bunkering vessels is increasing in line with this trend, and we have established a leading position in supplying modern and reliable systems that optimise overall cargo handling efficiency for such vessels.”

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 20,000 m3 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: Wärtsilä
Published: 13 December, 2024