Bunker Fuel

ENGINE: Europe & Africa Bunker Fuel Availability Outlook (10 July 2024)

HSFO supply tightens in Rotterdam; poor bunker demand off Malta; VLSFO is tight in Nacala and Maputo.

Published

5 months ago

July 11, 2024

Admin

The following article regarding Europe and Africa bunker fuel availability has been provided by online marine fuel procurement platform ENGINE for post on Singapore bunkering publication Manifold Times:

HSFO supply tightens in Rotterdam
Poor bunker demand off Malta
VLSFO is tight in Nacala and Maputo

Northwest Europe

HSFO supply has tightened in Rotterdam and in the wider ARA hub, with traders recommending lead times of 5-7 days, up from 3-5 days last week. Some suppliers are unsure when the replenishment cargoes will arrive to ease supply of the grade, a trader told ENGINE. Overall, bunker demand has been low in the ARA hub.

Availability of VLSFO and LSMGO remains normal in the ARA hub, with lead times unchanged at 3-5 days.

The ARA’s independently held fuel oil stocks have averaged 8% lower coming into July than across June, according to Insights Global data.

The region has imported 177,000 b/d of fuel oil in July so far, down from 235,000 b/d of fuel oil imported in June, according to data from cargo tracker Vortexa. The ARA imported low-sulphur fuel oil (LSFO) and HSFO in a 69/31 ratio coming into July, which is similar to the 65/35 ratio in June.

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have declined by 2% coming into July. The region has imported 709,000 b/d of gasoil so far this month, a significant increase from the 356,000 b/d imported in June, according to Vortexa data.

According to GAC Hot Port News, a port officers' strike in the French ports of Fos, Lavera, and Marseilles began on 2 July and is expected to last indefinitely. The strike has had no impact on bunkering so far in the French ports, a trader told ENGINE.

All grades remain in good supply for prompt delivery in the German port of Hamburg. A trader recommends lead times of 3-5 days across all grades, which has been consistent in the past several weeks.

Off Skaw, bunker fuel is available mostly for non-prompt delivery dates. All three grades are available for lead times of 7–10 days. Adverse weather is forecast off Skaw on Wednesday, which may cause bunkering disruptions in the area.

Mediterranean

Bunker fuel availability is normal in Gibraltar, with lead times consistent over the last few weeks at 3-5 days. Despite good supply, demand has been muted, a trader said. Bunkering was proceeding normally on Wednesday, but wind gusts of up to 21 knots are forecast for Friday and may impact bunkering.

The Canary Islands’ port of Las Palmas continues to face subdued bunker demand, a trader told ENGINE. Lead times remain unchanged from last week’s 3-5 days. Availability is normal across all grades.

Demand has been poor in other Mediterranean ports like Piraeus, Malta Offshore and Istanbul, a trader said.

Availability is normal in the Greek port of Piraeus, where lead times of 3–4 days are recommended across all grades, a trader said. Weather-induced bunkering disruptions may occur between Wednesday and last through the weekend in the port area, a source said.

Demand is low off Malta despite good availability across all three bunker grades. Lead times are similar to Piraeus, with a trader recommending 3–4 days for optimal coverage from suppliers. Rough weather is forecast for Friday and Saturday, which could impact bunkering in the area, according to a source.

Availability is said to be normal in Turkey’s Istanbul port, a trader said. Securing prompt delivery may not be difficult in the port, with traders recommending lead times of 3–4 days for all grades. Bunkering may be impacted between Wednesday and Saturday due to adverse weather conditions forecast in the area.

Africa

LSMGO availability continues to be tight for prompt supply in Durban, with lead times of up to two weeks recommended by traders. VLSFO availability is slightly better in Durban and Richards Bay, with traders recommending relatively shorter lead times of 7–10 days.

Meanwhile, South African ports have been facing congestion and backlogs due to stormy weather this week. High swells are forecast in Cape Town until Saturday, while Port Elizabeth's container terminal is experiencing heavy congestion, says South Africa’s Transnet National Ports Authority (TNPA). The TNPA has deployed vessels on standby to assist ships wherever needed.

Strong gale-force wind gusts of up to 50 knots have been forecast in certain South African port areas this week, according to a recent update from the TNPA. Swells of more than three metres disrupted vessel traffic in Cape Town and several other South African ports on Wednesday.

Port Elizabeth, located in South Africa's eastern province, is witnessing congestion at one of its terminals, while Cape Town on the southwest coast has a backlog of three vessels at berth today, the TNPA stated.

There has not been any impact on bunkering so far and no diversion of bunker demand has been noticed, a trader told ENGINE.

The global container liner Maersk has issued an advisory about the extreme weather in South Africa. An extreme weather forecast over the next few days, especially between Cape Town and Port Elizabeth, will impact vessel movement and cause delays, the advisory said. It added that the worst impact is expected in Port Elizabeth.

Bunkering is operating smoothly in Mozambique’s Nacala and Maputo ports, a source said.

Nacala is witnessing steady demand across all grades, but HSFO is running very tight in the port. On the other hand, VLSFO and LSMGO availability is good in the port.

In Maputo, the availability of VLSFO and LSMGO is tight, with both grades facing low demand, a source said.

By Manjula Nair

Photo credit and source: ENGINE
Published: 11 July 2024

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Shell MGO bunker heist: Bunker clerk pleads guilty to helping Sentek acquire misappropriated fuel

Wong Wai Meng, who received more than USD 286,000 from Sentek Marine & Trading for his assistance, pleaded guilty to 12 counts of intentionally helping the firm acquire the misappropriated marine gas.

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A bunker clerk, Wong Wai Meng, who received more than USD 286,000 (SGD 384,681) from Singapore-based Sentek Marine & Trading (Sentek) for his assistance, pleaded guilty to 12 counts of intentionally helping the company acquire misappropriated marine gas oil, The Straits Times reported on Friday (29 November).

The 58-year-old Singaporean was employed at the Sentek when he assisted in acquiring more than 28,000 metric tonnes (mt) of the misappropriated fuel worth USD 13.58 million (SGD 18.26 million).

Wong 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: 2 December, 2024

Biofuel

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

Fingerprinting identifies feedstock origins of FAME-based biofuels used in shipping industry; can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity.

Published

6 hours ago

December 2, 2024

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Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

The Global Centre for Maritime Decarbonisation (GCMD) on Monday (2 December) released its latest report, presenting a new technique that creates a fingerprint for Fatty Acid Methyl Esters(FAME) bio bunker fuels.

This fingerprint identifies the feedstock origins of the FAME-based biofuels used in the shipping industry.

GCMD said FAME fingerprinting is needed as the shipping sector is increasingly using biofuels, such as FAME, to reduce its GHG emissions. With that, concerns have arisen regarding the legitimacy of biofuels and whether they are truly sustainable.

Industry bodies are seeing a rising number of cases mislabelling biofuels purported to be made from recycled oils and fats, while suspicions persist that they might be produced from cheaper and less sustainable virgin oils.

“To address these concerns, FAME fingerprinting can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity. By providing a physical validation method that complements existing certification schemes, FAME fingerprinting can help justify the green premium with genuine environmental benefits and safeguard the integrity of marine fuels supply chain,” GCMD said.

FAME fingerprinting is based on the principle that the fatty acid profile of FAME is unique to its feedstock and can be preserved during feedstock transesterification to produce FAME. The "fingerprint" can then be compared against a database of known fatty acid profiles to identify the feedstock origin.

GCMD worked with VPS who modified existing fuel testing methods to carry out sample analyses using a gas chromatograph with flame-ionisation detection, an instrument commonly found in fuel test laboratories.

The analysis takes about an hour, comparable to the turnaround time for current marine fuel quality testing in the supply chain.

“We have tested this method on a variety of FAME samples from different suppliers, including virgin oils, used cooking oils, palm oil mill effluent, beef tallow and food waste and were able to identify the feedstock origins for each sample,” GCMD added.

Manifold Times previously reported Captain Rahul Choudhuri, President, Strategic Partnerships at marine fuels testing company VPS, forecasting the use of finger printing technology today will likely establish a blueprint of how future alternative bunker fuels’ feedstocks are authenticated.

Captain Choudhuri said this when he gave an update of VPS’ biofuels finger printing trials with GCMD.

Note: The full report, titled ‘Rapid forensic analysis of FAME-based biofuels: Potential use of its fingerprint as a fraud detection tool’, can be downloaded here.

Photo credit: Global Centre for Maritime Decarbonisation
Published: 2 December, 2024

Methanol

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

Korean firm’s MoU with AE Risinājumi will see construction of Latvia’s first commercial-scale green methanol production plant, which will supply green methanol to ships in EU’s maritime fleet.

Published

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December 2, 2024

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PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

South Korean clean energy firm PLAGEN on Friday (29 November) signed an MOU with Latvian company, AE Risinājumi, for the production of green methanol in Latvia at the “2024 Latvia-Korea Business Forum” hosted by the President of Latvia.

The agreement will result in the construction of Latvia's first commercial-scale green methanol production plant, which will supply green methanol to ships in the EU's maritime fleet, contributing to the reduction of greenhouse gas emissions from maritime transportation.

PLAGEN's MoU aims to produce 20,000 metric tonnes (mt) of green methanol per year and will begin feasibility studies in the first half of 2025, and full-scale production will begin in 2028.

With 53% of Latvia's land area covered by forests, timber production and wood processing make a significant contribution to Latvia’s economic production, which generates a large amount of forest residues and wood wastes. In addition, Latvia also has an abundance and low price of renewable electricity from wind power.

Latvia is one of the most competitive countries in the European Union, as it can produce clean methanol at a competitive price by using abundant wood waste as a raw material and renewable electricity from cheap wind power.

The use of abundant forest residues and wood wastes as a feedstock and cheap renewable electricity from wind power makes it possible to produce green methanol with a competitive price, making Latvia is one of the most competitive countries in the EU.

In the European Union, the European Emissions Trading Scheme (EU-ETS) will come into effect in 2025, requiring shipping companies to purchase carbon credits for their greenhouse gas emissions.

In addition, the EU is implementing FuelEU Maritime, which aims to reduce greenhouse gas emissions by 2% below the 2020 average by 2025 and 80% by 2050. This is expected to result in an energy transition to green methanol.

In July 2023, the International Maritime Organization (IMO) adopted a revised strategy that calls for reducing greenhouse gas (GHG) emissions from ships to net-zero by or around 2050, and plans to introduce full-scale regulations from 2027, and shipping companies have begun ordering methanol-powered ships fueled by green methanol, a carbon-neutral fuel.

“We expect to start producing green methanol in Latvia in 2028, which will reduce greenhouse gas emissions from EU maritime transport vessels and contribute significantly to the revitalization of the Latvian economy and national energy security,” said John Kyung, CEO of PLAGEN.

In November 2024, PLAGEN completed the purchase of an industrial complex and received a government permit for the construction of the country's first green methanol plant in Dongjeom Industrial Complex in Taebaek City, Gangwon-do.

The project, which will produce 10,000 mt per year, is scheduled to begin construction in the first half of 2025 and begin production in the second half of 2027.

Photo credit: PLAGEN
Published: 2 December, 2024