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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Bunkering suspended in Gibraltar; ARA fuel oil, gasoil inventories add weight; bunker supply normal in Algoa Bay and 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:

21 September 2022

  • Bunkering suspended in Gibraltar
  • ARA fuel oil, gasoil inventories add weight
  • Bunker supply normal in Algoa Bay and Durban

 

Northwest Europe

LSMGO is readily available in the ARA hub with several suppliers now offering prompt deliveries, sources say. The recommended lead time for LSMGO delivery in Rotterdam and other ports in the ARA is around three days.

Securing VLSFO and HSFO stems for prompt dates can be difficult, especially for HSFO. Some suppliers are running low on fuel oil in storage and await resupply, sources say. Recommended lead times for VLSFO and HSFO deliveries in the ARA region are around 5-7 days.

Independently held fuel oil inventories in the ARA added some weight last week. The stocks increased by 30,000 bbls to 7.16 million bbls in the week to 15 September, according to Global Insights.

According to cargo tracker Vortexa, 260,000 b/d of fuel oil was imported in the region in the first fortnight of this month, up from 162,000 b/d in August.

Russian fuel oil imports accounted for about a quarter of ARA's fuel oil imports in July, but nothing was imported throughout August or so far this month.

Signs of higher non-Russian inflows could have contributed the increase in fuel oil stocks. Vortexa has picked up fuel oil cargoes flowing into the ARA from the UK, Greece, Germany, Saudi Arabia and other sources.

The region’s gasoil stocks increased by 150,000 bbls, to 12.44 million bbls last week.

Some suppliers can offer limited quantities of VLSFO and HSFO off Skaw, but prompt availability is tight. Recommended lead times for the two grades are around seven days, a source says.

 

Mediterranean

Bunker operations have been halted in Gibraltar since Tuesday as local authorities are working to clear debris and an oil sheen formed by residual fuel oil from the recently damaged OS 35 bulk carrier.

Some quantities of unpumpable VLSFO and residues from the dirty fuel tanks of OS 35 have escaped booms, Gibraltar Port Authority (GPA) says.

On 30 August, the OS 35 collided with LNG carrier Adam LNG while it was trying to navigate out of the Bay of Gibraltar. Bunker operations were halted in Gibraltar after the incident and resumed on 9 September.

With bunkering suspended in Gibraltar, bunker calls are expected to rise in nearby ports such as Algeciras, Ceuta, Las Palmas and Malta.

Congestion has built up at inner and outer anchorages in Algeciras, while bunkering is progressing normally in other nearby ports, port agent MH Bland says.

No congestion has been reported in Ceuta, while one supplier experienced 4-6 hours of delay on Wednesday, MH Bland says.

Nine vessels were due to arrive bunkers in Malta on Wednesday, up from eight on Tuesday, according to Seatrans Shipping agency.

Bunker supply is said to be normal in Gibraltar Strait ports as of now, but LSMGO availability is slightly tight in Algeciras, a source says. Some suppliers can offer VLSFO and LSMGO in Las Palmas for prompt dates.

Availability across all fuel grades is said to be good in Gibraltar, but bunker delivery timings will depend on when the port reopens for bunkering, sources say.

VLSFO supply is tight for prompt delivery in Spain’s Valencia, while LSMGO availability is normal, a source says. Some suppliers can offer limited quantities of VLSFO and LSMGO in Barcelona.

 

Africa

Bunker operations resumed at anchorages in Algoa Bay on Tuesday after being suspended on Monday due to bad weather, Rennies Ships Agency says.

Conducive weather conditions have helped suppliers to clear the bunker backlogs in Algoa Bay. 24 vessels are scheduled to arrive for bunkers in the bay between Wednesday and Sunday, shipping agent Sturrock Grindrod says.

Meanwhile, vessels over 90,000 gross registered tonnes (GRT) will no longer be required to hire tugboats while bunkering in Algoa Bay. The tugboat requirement has initially been lifted for a three-month trial period. This will ease bunker restrictions for large vessels and expedite operations in Algoa Bay, a source says.

Bunker supply is said to be normal in Algoa Bay and Durban, with some suppliers offering prompt deliveries of VLSFO and LSMGO. Recommended lead times for the two grades in Durban are around seven days.

By Shilpa Sharma

 

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

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Business

Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Sanket joined Sing Fuels in 2016 as a Credit Manager and has ‘immersed himself’ in all departments; will drive company to expand into areas like sustainability and biofuels.

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Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Singapore-based provider of marine fuel solutions Sing Fuels on Saturday (7 December) said Sanket Naik, was recently promoted to Managing Director of Sing Fuels. 

The firm said Sanket joined Sing Fuels in 2016 as a Credit Manager. 

“He immersed himself across all departments, ranging from investment to business development, gaining a 360-degree understanding of the business and serving as a key driver of growth and success at Sing Fuels,” Sing Fuels said in a social media post. 

“As Managing Director, Sanket is poised to drive Sing Fuels 3.0, expanding into areas like sustainability and biofuels, ensuring we stay at the forefront of industry innovation.”

 

Photo credit: Sing Fuels
Published: 9 December, 2024

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Alternative Fuels

DNV: Use of ammonia as a bunker fuel among highlights in IMO MSC 109

Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted and interim guidelines for the general use of ammonia as fuel were approved during session.

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RESIZED CHUTTERSNAP on Unsplash

Classification society DNV on Saturday (7 December) shared a statutory news article that provides a summary of the 109th session of the International Maritime Organization’s (IMO) Maritime Safety Committee (MSC 109) including adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel and approved draft interim guidelines for ammonia as a marine fuel.

The following is an excerpt from the news update relating to bunker fuels:

The 109th session of the IMO’s Maritime Safety Committee (MSC 109) was held from 2 to 6 December 2024. Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted, and interim guidelines for the general use of ammonia as fuel were approved. The IGF Code was amended to improve the safety of ships using natural gas as fuel. MSC 109 further approved draft SOLAS amendments to enhance the safety of pilot transfer arrangements and progress was made on the new safety code for Maritime Autonomous Surface Ships.

Meeting highlights

  • Adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel
  • Adopted amendments to the IGF Code for ships using natural gas as fuel
  • Approved draft interim guidelines for ammonia as fuel
  • Approved draft amendments to SOLAS Regulation V/23 and the related performance standards to improve the safety of pilot transfer arrangements
  • Advanced the non-mandatory Code on Maritime Autono- mous Surface Ships (MASS)

Amendments to mandatory instruments 

Ammonia cargo as fuel (IGC Code) MSC 109 adopted amendments to Paragraph 16.9.2 of the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) to enable the use of ammonia as fuel on ammonia carriers.

An MSC circular to encourage the voluntary early implementation of the amendments to Chapter 16 was approved. 

The amendments will enter into force on 1 July 2026.

Safety of ships using natural gas as fuel (IGF Code)

MSC 109 adopted amendments to the International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code), based on experience with the code since its entry into force in 2017.

The amendments include:

  • Clarified application provisions
  • Alignment with the IGC Code on suction wells for fuel tanks extending below the lowermost boundary of the tank
  • Alignment with the IGC Code on discharge from pressure relief valves to discharge to tanks under certain conditions
  • Clarified requirements to fire insulation for deck structures in relation to fuel tanks on open deck
  • Clarified requirements for hazardous ducts through non-hazardous spaces and vice versa
  • Updated requirements for the hazardous zone radius for fuel tank vent mast outlets, increasing to 6 metres for zone 1 and 4 metres for zone 2

The amendments will enter into force on 1 January 2028.

Goal-based new ship construction standards

Goal-based standards (GBS) for the new construction of bulk carriers and oil tankers are, conceptually, the IMO’s rules for class rules. Under the GBS, IMO auditors use guidelines to verify the construction rules for bulk carriers and oil tankers of class societies acting as Recognized Organizations (Resolution MSC.454(100)).

Initial GBS verification of Biro Klasifikasi Indonesia (BKI) BKI has requested GBS verification of their ship construction rules for bulk carries and oil tankers. MSC 109 agreed that the BKI rules comply with the GBS, provided non-conformities and observations are rectified and verified in a new audit.

North Atlantic wave data (IACS Recommendation No. 34, Revision 2) MSC 109 noted that IACS is currently undertaking a review of its Common Structural Rules (CSR) for bulk carriers and oil

tankers to reflect advances in data, materials, technologies and calculation methodologies. The CSR are implemented in the individual class rules of the IACS members, which are subject to compliance with the GBS.

MSC 109 further noted that IACS has now issued a revision of the North Atlantic wave data to ensure more scientific data as a basis for the rule formulas in the CSR. The new scatter diagram in Revision 2 of IACS Recommendation No. 34 shows the probability of occurrence of different sea states and is based on wave data from advanced hindcast wave models combined with ships’ AIS data for all SOLAS vessels in the period from 2013 to 2020.

MSC 109 agreed that an observation from the initial CSR audit in 2015, that the scatter diagram in Revision 1 of IACS Recommendation No. 34 was based on past statistics, was now considered addressed.

MSC 109 further invited IACS to provide more information about the assumptions, modelling and technical background for Revision 2 of IACS Recommendation No. 34, and agreed that the GBS audit of the revision to follow should be carried out in conjunction with the consequential rule changes in the CSR.

New technologies and alternative fuels 

Identification of gaps in current IMO instruments MSC 109 continued its consideration of potential alternative fuels and new technologies to support the reduction of GHG emissions from ships from a safety perspective. The intention is to identify safety obstacles, barriers and gaps in the current IMO instruments that may impede the use of the various alter- native fuels and new technologies.

MSC 109 agreed to add “swappable traction lithium-ion battery containers” to the list of alternative fuels and new technologies. The list already includes fuels and technologies such as ammonia, hydrogen, fuel cell power installations, nuclear power, solar power, wind power, lithium-ion batteries and supercapacitor energy storage technology.

Recommendations to address each of the identified barriers and gaps in the IMO regulatory framework will be considered in a Correspondence Group until MSC 110 (June 2025). Application of the IGF Code

MSC 109 agreed on draft amendments to SOLAS to clarify that the IGF Code applies to ships using gaseous fuels, whether they are low-flashpoint or not. The term “gaseous fuels” was added to the definitions in SOLAS Regulation II-1/2 and to the application provisions of SOLAS Regulations II-1/56 and 57.

The draft amendments are expected to enter into force on 1 January 2027, subject to adoption by MSC 110 (June 2025).

Carriage of cargoes and containers

Ammonia as fuel

MSC 109 approved draft interim guidelines for the safety of ships using ammonia as fuel.

Ships carrying liquefied gases in bulk (IGC Code)

MSC approved draft amendments to the IGC Code to incorporate the large number of Unified Interpretations developed since the latest major review of the code, which entered into force in 2016. The primary objective of the draft amendments is to remove ambiguity and promote the consistent implementation of the IGC Code requirements.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 9 December, 2024

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Methanol

Methanol Institute welcomes HIF Global as its newest member

HIF Global will collaborate with industry leaders, policymakers, and stakeholders to promote the adoption of methanol-based solutions and e-Fuels in the transition to a low-carbon future.

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HIF Global joins Methanol Institute as its newest member

The Methanol Institute (MI) on Thursday (5 December) welcomed HIF Global as its newest member. 

HIF Global is an innovator in the production of e-Fuels, offering sustainable alternatives to fossil fuels that are compatible with today’s transportation and industrial infrastructure.

As part of MI’s membership, HIF Global will collaborate with other industry leaders, policymakers, and stakeholders to promote the adoption of methanol-based solutions and e-Fuels in the transition to a low-carbon future.

MI said HIF Global’s pioneering approach combines renewable energy with technology to produce green hydrogen through electrolysis and capture CO₂ from atmospheric, biogenic, and industrial sources. 

These components are then synthesised to create e-Fuels, including e-Methanol for ships, e-SAF for planes, and e-Gasoline for cars, which are crucial to decarbonizing global transportation and reducing greenhouse gas emissions.

At the heart of HIF Global’s operations is HIF Haru Oni in Magallanes, Chile, the world’s first operating e-Fuels facility, which was inaugurated in December 2022. The company is scaling its production globally, with projects underway in the United States, Chile, Australia, Uruguay and Brazil. Its most advanced commercial-scale project, the HIF Matagorda e-Fuels Facility in Texas, is designed to produce 1.4 million metric tons (466 million gallons/1.76 billing liters) of e-Methanol annually once fully operational.

“We are thrilled to welcome HIF Global to the Methanol Institute,” said CEO of MI Greg Dolan. 

“HIF Global’s work in e-Fuels, particularly e-Methanol, is a crucial contribution to the energy transition. Their innovative approach underscores methanol’s potential as a key solution for decarbonizing transportation and industry, and we look forward to collaborating to accelerate this transformation.”

Cesar Norton, President and CEO of HIF Global, said: “e-Fuels are essential to achieving a sustainable future. We applaud the Methanol Institute for their leadership in methanol markets and join them to drive forward the vision to expand e-Methanol based e-Fuels that support our global circular economy.”

“Together we will advance the energy transition by pioneering e-Methanol solutions that utilize existing infrastructure to inspire innovation and reduce costs.”

 

Photo credit: Methanol Institute
Published: 9 December, 2024

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