Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Supply remains tight in Gibraltar Strait ports; ARA fuel oil and gasoil stocks fall; calmer weather helps clear Algoa Bay backlog.

Published

3 years ago

June 9, 2022

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:

8 June 2022

Supply remains tight in Gibraltar Strait ports
ARA fuel oil and gasoil stocks fall
Calmer weather helps clearing Algoa Bay backlog

Northwest Europe

Availability of LSMGO seems normal in ARA ports and some suppliers are offering prompt deliveries. Fuel oils can be in tight supply for prompt dates with recommended lead times of around four days for VLSFO and a minimum of seven days for HSFO, sources say.

The ARA’s independently held fuel oil stocks dropped in the week to 2 June, after gradually adding weight in most weeks since slumping to a low in April, according to Insights Global.

Fuel oil stocks in the region dropped by 240,000 bbls to 6.68 million bbls in the week to 2 June, and gasoil stocks fell by 120,000 bbls to 11.24 million bbls.

Russia remained the ARA’s top source for fuel oil imports in May, followed by the UK, Algeria and France, according to cargo tracker Vortexa.

Bunker fuel availability is normal in the German port of Hamburg with recommended lead times of around five days across fuel grades, a source says.

In Bremerhaven, supply of LSMGO is said to be good while prompt deliveries of VLSFO and HSFO are more difficult to find there, a source says. One supplier can typically offer prompt VLSFO and HSFO, depending on quantity.

Mediterranean

Bunker supplies are under pressure in the Gibraltar Strait ports, particularly for HSFO, sources say.

Prompt volumes of HSFO can be difficult to find in Gibraltar, where prices have been trading higher premiums over Rotterdam this week. But the recommended lead time for HSFO stems in Gibraltar is similar to that in Rotterdam at around 5-7 days.

Prompt supply of VLSFO is also difficult to find in Gibraltar, and one supplier is waiting for replenishment set to arrive around 15 June, a source says.

Bunker congestion in Gibraltar has eased this week, with three vessels waiting for space at anchorage on Wednesday, down from 11 on Tuesday, according to port agent MH Bland. Two suppliers are experiencing 2-14 hours of delays.

In Ceuta, a supplier has halted deliveries at anchorage for a week from Monday while its barge is at drydock for maintenance, a source says. Meanwhile, bunkering operations are running smoothly in Ceuta with no reported congestion this week.

In Malta, availability of VLSFO and LSMGO is normal, and some suppliers can offer prompt deliveries, a source says. However, strong winds and gusts forecast for Thursday and Friday could cause some offshore bunker disruptions. Seatrans Shipping agency expects only Area 4 of the island state’s six offshore bunkering areas will be operational during high winds from Thursday evening to Friday morning.

Africa

Favourable weather conditions in Algoa Bay during week has helped in clearing some bunker backlogs, where four vessels were in line to bunker on Wednesday, down from six on Tuesday and nine on Monday, Rennies Ships Agency says.

However, strong winds are forecast in Algoa Bay on Sunday and could disrupt some bunker operations, a source says.

Suppliers in Algoa Bay have been working through a considerable backlog of vessels through this week. Bunker supply capacity improved from Friday following the removal of daylight restrictions on Thursday. These restrictions were imposed to investigate and clean up an oil spilled during a ship-to-ship transfer in late May.

Availability of VLSFO and LSMGO are currently tight in Durban, but suppliers are expecting replenishment around 10 June, a source says.

Photo credit: ENGINE
Published: 9 June, 2022

LNG Bunkering

Japan: MOL’s third LNG-fuelled ferry “Sunflower Kamuy” starts operation in Oarai

“Sunflower Kamuy” will serve the Oarai-Tomakomai route between Ibaraki Prefecture and Hokkaido as a replacement for the Sunflower Daisetsu, says MOL.

Published

1 day ago

January 24, 2025

Admin

Japan: MOL third LNG-fuelled ferry “Sunflower Kamuy” starts operation in Oarai

Mitsui O.S.K. Lines (MOL) on Thursday (23 January) announced that the LNG-fuelled ferry Sunflower Kamuy, owned by MOL and operated by its group company MOL Sunflower, entered service in Oarai.

The vessel will be the third LNG-fuelled ferry operated by MOL Sunflower, following the Sunflower Kurenai and Sunflower Murasaki, which have been in service on the Osaka-Beppu route from 2023.

Sunflower Kamuy will serve the Oarai-Tomakomai route between Ibaraki Prefecture and Hokkaido as a replacement for the Sunflower Daisetsu.

Along with the sister vessel Sunflower Pirka, scheduled to enter service in early summer 2025, MOL Sunflower will operate a fleet of four LNG-fuelled ferries on the Oarai-Tomakomai route and the Osaka-Beppu route within 2025.

MOL Sunflower operates 10 ferries and 4 RoRo vessels on six routes throughout Japan, from Hokkaido to Kyushu, providing service for both logistics and passengers in Japan.

Photo credit: Mitsui O.S.K. Lines
Published: 24 January, 2025

Winding up

Singapore: Notice of preferential dividend issued for Asia-Pacific Shipyard

Creditors will need to submit proofs to liquidators of Asia-Pacific Shipyard Pte Ltd by 6 February, according to a Government Gazette notice.

Published

1 day ago

January 24, 2025

Admin

A notice of preferential dividend for Otto Marine Limited, which is in liquidation, was published on the Government Gazette on Friday (9 September).

The following are details of the notice:

Name of Company : Asia-Pacific Shipyard Pte Ltd (In Creditors’ Voluntary Liquidation)
Unique Entity No./Registration No. : 197300183MAddress of Registered Office : 8 Wilkie Road, #03-08 Wilkie Edge, Singapore 228095

Last Day for Receiving Proofs : 6 February 2025

Name of Liquidators : Ng Kian Kiat and Yap Hui Li

Address of Liquidators : c/o RSM SG Corporate Advisory Pte. Ltd., 8 Wilkie Road #03-08, Wilkie Edge, Singapore 228095

Photo credit: Drew Beamer
Published: 24 January, 2024

LNG Bunkering

SEA-LNG report: Number of LNG-fuelled vessels in operation up by over 33% in 2024

Based on its latest ‘View from the Bridge’ report, SEA-LNG reported an annual vessel growth of over 33% to 638 LNG-fuelled vessels in operation worldwide in 2024.

Published

1 day ago

January 24, 2025

Admin

SEA-LNG report: Number of LNG-fuelled vessels in operation up by over 33% in 2024

Industry coalition SEA-LNG on Thursday (24 January) reported an annual vessel growth of over 33% to 638 LNG-fuelled vessels in operation worldwide in 2024.

This was one of the findings of SEA-LNG’s annual ‘View from the Bridge’ report, highlighting 2024 as another year of growth for the LNG pathway.

Analysing data from SEA-LNG members, the report found that global market adoption and growth reached record heights in 2024.

Looking forward, over 1,200 vessels are expected to be operating by the end of 2028. In 2024, LNG dual-fuelled vessels accounted for 70% of alternative fuelled tonnage ordered, excluding LNG Carriers, up from 43% in 2023.

This record expansion follows the growing availability of LNG bunker fuel beyond the traditional bunkering hubs. Currently, LNG bunkers are accessible in approximately 198 ports worldwide, and plans are underway for bunkering facilities in an additional 78 ports. This comes as over 60 LNG bunkering vessels are operating today, marking a 22% increase from 2023.

The ‘View from the Bridge’ report also highlights how the LNG pathway took a significant step in 2024, with liquified biomethane delivering on decarbonisation and regular renewable e-methane supplies expected in 2026.

SEA-LNG members are prepared to offer biomethane bunkers in some 70 ports globally, with multiple bunkering operations already taking place.

A highlight was the successful biomethane bunkering pilot as part of the Methane Track within the Rotterdam-Singapore Green and Digital Shipping Corridor (GDSC). This was the first practical delivery of any international Green Corridor since they were announced as part of the Clydebank Declaration at COP 26 in Glasgow.

Peter Keller, chairman of SEA-LNG, said: “Our latest View from the Bridge reaffirms the importance of the LNG pathway as a practical and realistic route to shipping’s decarbonisation now. We continue to believe that the shipping industry is heading towards a successful multi-fuel future where LNG will always play a critical role.”

“To deliver net zero by 2050 across the global shipping fleet, a basket of fuels is required and the LNG pathway will continue to lead the way. This is not a case of my fuel versus your fuel but rather which fuel best allows the industry to reach its stated goals. The LNG pathway provides the path to net zero.”

SEA-LNG’s latest report also highlights that 2024 has seen considerable progress in addressing methane slip. “Advances in eliminating methane slip, in combination with biomethane and e-methane, provide a clear, effective, and viable long-term pathway towards net zero emissions. Shipowners and operators can be confident that the vessels ordered today are future-proofed for their lifespan.”

“With a proven track record of technical improvements to reduce methane slip and upstream emissions, coupled with tighter regulations from global and regional authorities, we continue to believe methane slip will be a non-issue by the end of this decade,” Keller continued.

FuelEU Maritime will be a key regulation in advancing shipping industry decarbonisation, heading into 2025. According to analysis from SEA-LNG, FuelEU Maritime creates a favourable environment for the LNG pathway.

With the ability to achieve GHG emissions reductions of up to 23%, LNG-fuelled vessels are compliant until 2039. The use of liquefied biomethane and e-methane can extend compliance through to 2050 and beyond.

Note: The full report is available for download here.

Photo credit: SEA-LNG
Published: 24 January, 2025