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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Prompt HSFO remains tight in Gibraltar; ARA fuel oil, gasoil stocks increase; VLSFO, LSMGO supply normal in Durban.

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ENGINE Europe

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:

10 August 2022

  • Prompt HSFO remains tight in Gibraltar
  • ARA fuel oil, gasoil stocks increase
  • VLSFO, LSMGO supply normal in Durban

 

Northwest Europe

Supply of LSMGO is said to be normal in ARA ports this week, where several suppliers can offer prompt deliveries of the grade, sources say.

Prompt supply of VLSFO and HSFO can be hard to find in Rotterdam and other ARA ports this week, they say. The recommended lead time for LSMGO in Rotterdam is three days, while VLSFO and HSFO deliveries may require up to seven days, they say. Amsterdam and Antwerp have similar lead times for these grades.

Independently held fuel oil stocks in the ARA increased by 430,000 bbls to 7.52 million bbls last week, Insights Global data shows. The stocks have to their highest level in five weeks amid signs of higher non-Russian inflows.

Russia dropped down from the top of the list of the ARA's biggest fuel oil sources in the first week of August, while inflows from other regions went up, according to data from cargo tracker Vortexa.

With most European Union countries preparing to phase out imports of Russian oil products within eight months after an embargo was approved in June, refineries and oil traders in northwest Europe eventually have to switch to non-Russian oil.

To replace Russian fuel oil imports, several buyers have looked to the UK, Colombia, Germany, Finland, Poland and Sweden for imports this month, according to Vortexa.

Gasoil inventories in the ARA added weight last week, increasing 130,000 bbls to 11.19 million bbls, according to Insights Global data.

HSFO can be tight for prompt delivery off Skaw, while suppliers are offering LSMGO for prompt deliveries, a source says.

Bunker supply is said to be normal in Hamburg, where some suppliers can offer prompt deliveries, a source says. Recommended lead times for VLSFO, HSFO and LSMGO are around five days, the source adds.

LSMGO availability is normal in Bremerhaven, while VLSFO and HSFO deliveries remain subject to enquiries.

 

Mediterranean

Bunkering at Las Palmas' weather-exposed outer anchorage has resumed on Wednesday amid calmer weather conditions, according to port agent MH Bland. The port’s outer anchorage has been closed for bunker operations since 3 August amid strong winds and heavy swells. Swells have reduced to a moderate level of 1.1 metres on Wednesday from 1.4 metres on Tuesday, and 1.9 metres last week, MH Bland says.

Prompt bunker deliveries have been difficult to find in Las Palmas this week, and recommended lead times for all grades have gone up to seven days, a source says.

Bunker backlogs have been reduced in Gibraltar, with three vessels waiting to bunker at anchorage on Wednesday morning, down from nine last week, according to port agent MH Bland. One supplier experienced up to 36 hours of delays on Wednesday.

Supply of VLSFO and LSMGO is said to normal in Gibraltar, where some suppliers can offer delivery on prompt dates, sources say. HSFO availability is slightly tight in the region, they say.

Recommended lead times for VLSFO and LSMGO deliveries in Gibraltar are around 4-5 days, while HSFO may require longer lead times of around seven days, a source says.

Ceuta's bunker backlog from earlier this week has been cleared. A supplier had faced temporary technical issues. The issue has been resolved, and the supplier is fully operational in Ceuta, shipping agent Jose Salama & Cia says. Two vessels were due to arrive for bunkers in Ceuta on Wednesday. Bunker availability is said to be normal in the port, and suppliers can offer prompt deliveries, a source says.

Availability of VLSFO and LSMGO is said to be normal in Algeciras, but prospects for HSFO delivery are subject to enquiries, a source says. Algeciras remained fully operational on Wednesday with slight congestion reported at its inner and outer anchorages, MH Bland says.

All ports in Malta and offshore bunkering areas are open for supply, with no backlogs reported, according to Seatrans Shipping agency. Seven vessels were scheduled to arrive for bunkers on Wednesday. There is good demand for VLSFO and LSMGO in ports and off Malta and suppliers have mostly filled up their delivery schedules for the week.

Supply of VLSFO and LSMGO is tight in Piraeus this week, where prompt deliveries can be difficult to find. Some suppliers are expecting replenishment next week, which could ease the supply pressure, a source says.

 

Africa

Bunkering resumed in Algoa Bay on Tuesday after being suspended on Monday amid harsh weather conditions, according to Rennies Ships Agency.

However, there are concerns about possible disruptions between Thursday and Monday due to forecast of strong winds and heavy swells in the region. Eight vessels are scheduled to arrive for bunkers in Algoa Bay and Port Elizabeth this week, Rennies says.

Availability of VLSFO and LSMGO is said to be normal in Algoa Bay and Durban, where suppliers can offer deliveries on prompt dates, a source says. Recommended lead times for the two grades are 5-7 days, the source adds.

 

Photo credit: ENGINE
Published: 11 August, 2022

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Methanol

Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Firm ordered a 65,700-dwt methanol dual-fuel dry bulk carrier with Tsuneishi Shipbuilding; MOL signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027.

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Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Japanese shipowner Kambara Kisen has ordered a 65,700-dwt methanol dual-fuel dry bulk carrier newbuilding from Tsuneishi Shipbuilding Co., Ltd, according to Mitsui O.S.K. Lines (MOL) on Wednesday (20 September).

MOL said it signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027. 

The vessel will be designed to use e-methanol produced primarily by synthesising recovered CO2 and hydrogen produced using renewable energy sources, and bio-methanol derived from biogas. 

The vessel's design maximises cargo space while ensuring sufficient methanol tank capacity set to allow the required navigational distance assuming various routes, at the same time maximising cargo space. 

MOL added the vessel is expected to serve mainly in the transport of biomass fuels from the east coast of North America to Europe and the U.K. and within the Pacific region, as well as grain from the east coast of South America and the U.S. Gulf Coast to Europe and the Far East.

Details on the time-charter contract:

Shipowner: Kambara Kisen wholly owned subsidiary
Charterer: MOL Drybulk Ltd.
Charter period 2027: -

Details on the newbuilding methanol dual fuel bulk carrier:

LOA: About 200 m
Breadth: About 32.25 m
Draft: About 13.80 m
Deadweight: About 65,700 MT
Hold capacity: About 81,500m3
Shipyard: Tsuneishi Shipbuilding Co., Ltd.

Photo credit: Mitsui O.S.K. Lines
Published: 22 September, 2023

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Methanol

Argus Media: Alternatives may drive methanol market growth

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand, according to Argus.

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RESIZED Argus media

The growth of sustainable alternatives to traditional methanol production sources likely will shape the market over the next several years, industry leaders said this week at the Argus Methanol Forum.

20 September 

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand.

"The aim is to be net zero by 2050 but [those solutions are] expensive today and one of the main challenges to build e-methanol or bio-methanol plants is a huge queue for these pieces of equipment that aren't available," Anita Gajadhar, executive director for Swiss-based methanol producer Proman, said.

Bio-based and e-methanol plants of commercial scale, like Proman's natural gas-fed 1.9 million metric tonne/yr M5000 plant in Trinidad and Tobago, are not ready today.

"But that's not to say 10 years from now they won't be there," Gajadhar added.

Smaller projects are popping up. Dutch fuels and gas supplier OCI Global announced plans last week to double the green methanol capacity at its Beaumont, Texas, facility to 400,000 t/yr and will add e-methanol to production for the first time. Production will use feedstocks such as renewable natural gas (RNG), green hydrogen and biogas.

The globally oversupplied methanol market will not get any major supply additions starting in 2024 until 2027. But that oversupply will not last long, Gajadhar said.

Global demand has slowed this year, driven by stagnate economic growth and higher interest rates, according to industry observers.

As much as half of methanol demand is tied to GDP growth, with total methanol demand estimates at 88.9mn t globally in 2023. This is essentially flat from 2022, but up from 88.3m t in 2021 and 87.7mn t in 2020, Dave McCaskill, vice-president of methanol and derivatives for Argus Media's consulting service, said.

Demand is not expected to rebound to 2019 levels of 89.6mn t until 2024 or 2025, he added.

The period of oversupply combined with lackluster demand places methanol in a transition period, Gajadhar said, which opens the door for sustainable feedstock alternatives to shape market growth.

Danish container shipping giant Maersk and French marine logistics company CMA-CGM announced earlier this week a partnership to drive decarbonization in shipping. The partnership seeks to develop fuel and operations standards for bunkering with alternative fuels. The companies will develop net-zero solutions, including new technology and alternative fuels.

Maersk has previously ordered dual-fuel methanol-powered vessels and CMA-CGM LNG-propelled vessels.

The demand for alternative feedstock-derived fuels is there, but the ability to scale-up such production lags. Certified lower-carbon methanol produced using carbon capture and sequestration — also known as blue methanol— can ramp up much more quickly, according to Gajadhar.

By Steven McGinn

Photo credit and source: Argus Media
Published: 22 September, 2023

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Biofuel

Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Firm expanded its biofuel testing this summer in Europe to two additional ships — Royal Caribbean International’s “Symphony of the Seas” and Celebrity Cruises’ “Celebrity Apex”.

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Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Royal Caribbean Group on Tuesday (19 September) said it successfully completed over 12 consecutive weeks of biofuel testing in Europe. 

Royal Caribbean International’s Symphony of the Seas became the first ship in the maritime industry to successfully test and use a biofuel blend in Barcelona to meet part of her fuel needs. 

The company confirmed onboard technical systems met operational standards, without quality or safety concerns, demonstrating the biofuel blend is a reliable “drop in” supply of lower emission energy that ships can use to set sail across Europe and beyond. 

The tests across Europe also provided valuable data to understand the availability and scalability of biofuel in the region, the firm added. 

Jason Liberty, president and CEO, Royal Caribbean Group, said: “This is a pivotal moment for Royal Caribbean Group’s alternative fuel journey.”

“Following our successful trial of biofuels this summer, we are one step closer to bringing our vision for net-zero cruising to life. As we strive to protect and promote the vibrant oceans we sail, we are determined to accelerate innovation and improve how we deliver vacation experiences responsibly.”

President of the Port of Barcelona, Lluís Salvadó, said: “Royal Caribbean’s success is a clear example of how commitment to innovation makes possible the development of solutions to decarbonise the maritime sector.”

“In this case, it involves the cruise sector and focuses on biofuels, an area in which the Port of Barcelona is already working to become an energy hub, producing and supplying zero carbon fuels, such as green hydrogen and ammonia, and of other almost zero-carbon alternative fuels, such as methanol, biofuels or synthetic fuels. Innovation and collaboration between ports and shipping companies is key to accelerate the decarbonisation of maritime transport.”

The company began testing biofuels last year and expanded the trail this summer in Europe to two additional ships — Royal Caribbean International’s Symphony of the Seas and Celebrity Cruises’ Celebrity Apex

The sustainable biofuel blends tested were produced by purifying renewable raw materials like waste oils and fats and combining them with fuel oil to create an alternative fuel that is cleaner and more sustainable. The biofuel blends tested are accredited by International Sustainability and Carbon Certification (ISCC), a globally recognized organization that ensures sustainability of biofuels and verifies reductions of related emissions.

With Symphony of the Seas departing from the Port of Barcelona and Celebrity Apex departing from the Port of Rotterdam, both ships accomplished multiple sailings using biofuel and contributed critical data on the fuel’s capabilities. 

“These results will help accelerate Royal Caribbean Group’s plans to continue testing the use of different types of biofuels on upcoming European sailings this fall. The company is exploring strategic partnerships with suppliers and ports to ensure the availability of biofuel and infrastructures to advance the maritime energy transition,” the firm said. 

Photo credit: Royal Caribbean Group 
Published: 22 September, 2023

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