Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

VLSFO, HSFO supply slightly tight in Gibraltar Strait ports; Russia becomes the ARA’s biggest fuel oil source again; Bunker supply normal in Durban and Algoa Bay.

Published

2 years ago

October 20, 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:

19 October 2022

VLSFO, HSFO supply slightly tight in Gibraltar Strait ports
Russia becomes the ARA’s biggest fuel oil source again
Bunker supply normal in Durban and Algoa Bay

Northwest Europe

Prompt supply of LSMGO and VLSFO is said to be normal in Rotterdam and other ports in the ARA hub, sources say. Recommended lead times for the two grades in Rotterdam are 3-4 days, while HSFO requires longer lead times of 5-7 days, a source says.

Meanwhile, independently held fuel oil and gasoil inventories in the ARA dropped last week, according to Insights Global data. The region’s fuel oil stocks decreased by 460,000 bbls to 6.65 million bbls in the week to 13 October and remained below their five-year average position.

Russia has regained its position of top fuel oil exporter to the ARA, according to Vortexa cargo tracking data. Most of the region’s fuel oil imports have come from Russia so far in October, and some quantities have arrived from other countries including Estonia, Colombia, France, Bulgaria and Poland.

This came as a surprise as there were no Russian fuel oil volumes imported to the ARA in July, August and September, Vortexa data shows. EU countries have agreed to phase out imports of Russian crude oil and oil products towards embargo deadlines by December and February, respectively. This means that there is still scope for fuel oil and gasoil inflows until February.

The region’s gasoil stocks decreased by a significant 1.43 million bbls to 12.38 million bbls last week. And the stocks continue to be far below their five-year average position.

Supply of VLSFO and LSMGO is normal off Skaw, a source says. Recommended lead times for VLSFO and LSMGO deliveries are around seven days. HSFO requires a longer lead time of around 10 days.

Bunker supply is said to be tight across key ports in France including Dunkirk and Le Havre as nation-wide strike over pay hike disputes has hit the supply chain. Workers at ExxonMobil’s two French refineries ended strike late last week, while workers at TotalEnergies' three refineries are still on strike.

Workers at ExxonMobil's 140,000 b/d Fos and 240,000 b/d Port Jerome refineries are gradually returning to work after a strike action that lasted more than three weeks. These refineries could take 2-3 weeks to fully restart operations, a company spokesperson told Reuters.

Mediterranean

Securing prompt delivery of VLSFO can be slightly difficult in Gibraltar, a source says. One supplier in the Gibraltar Strait expects to be low on VLSFO stocks until around 24 October.

Gibraltar’s VLSFO price is at a slight discount to Las Palmas, while at premiums over other regional ports including Algeciras, Malta and Ceuta. Prompt supply of LSMGO is said to be normal in Gibraltar, while HSFO remains subject to enquiries.

Availability of VLSFO and LSMGO is said to be normal in Algeciras, Malta, Ceuta and Las Palmas, sources say.

Bad weather conditions have raised concerns over smooth bunker deliveries in Las Palmas. Swells of 1.5 metres hit Las Palmas on Wednesday. Strong swells are forecast on Thursday and Friday, which could disrupt deliveries at the port's weather-exposed anchorages.

Minimal congestion has been reported in Gibraltar and Algeciras this week, according to port agent MH Bland. Bunker operations are running normally in Ceuta. Eight vessels were due to arrive for bunkers on Wednesday, shipping agent Jose Salama & Cia said.

All bunkering areas are open for supply in Malta. 10 were due to arrive for bunkers in and off Malta on Wednesday, up from seven on Tuesday, according to Seatrans Shipping agency.

Prompt supply of VLSFO and LSMGO is said to be tight in the Spanish port of Huelva, a source says.

Africa

No bunker backlogs were reported in Algoa Bay on Wednesday, according to shipping agent Sturrock Grindrod. Gale-force winds of up to 38 knots are forecast to hit the region on Thursday, which could disrupt smooth bunker deliveries. Eight vessels are scheduled to arrive for bunkers in Port Elizabeth and Algoa Bay this week, Sturrock Grindrod says.

Bunker supply is said to be normal in Algoa Bay. VLSFO continues to be priced considerably lower than in nearby Durban.

In Durban, availability of VLSFO and LSMGO is said to be normal. Recommended lead times for both the grades are around seven days.

Port and rail workers at South Africa’s logistic company Transnet ended a strike this week. Transnet reached a three-year wage deal with one of the two unions that represent the majority of its workers. A resolution to the strikes is expected to ease cargo congestion in Durban and other South African ports, and allow for exports from the country to pick up again.

By Shilpa Sharma

Photo credit and source: ENGINE
Published: 20 October, 2022

Biofuel

Argus Media: Bunkering sector needs deeper dive into B24 bio bunker fuel market

‘As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector,’ says Mahua Chakravarty of Argus.

Published

2 days ago

October 4, 2024

Admin

Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Ahead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:

MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?

B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.

It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.

B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).

As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.

MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?

Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.

We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.

This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.

MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?

The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.

As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.

We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.

The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.

Participants are encouraged to register for the free event via the custom link here.

Photo credit: Argus Media
Published: 4 October 2024

Bunker Fuel

Brazil: Raízen launches new bunkering operation in Itaqui

Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.

Published

2 days ago

October 4, 2024

Admin

Brazil: Raízen launches new bunkering operation in Itaqui

Brazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).

The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).

“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.

In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.

Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).

Photo credit: Raízen
Published: 4 October, 2024

Business

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

Oberholtzer, a finance executive with over 25 years of experience, joins Infineum from Shell, where he has held various senior positions including Senior Vice President of Shell Finance for Chemicals and Products.

Published

2 days ago

October 4, 2024

Admin

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

International fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.

Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.

Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.

During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.

In 2011, he joined Shell’s Mergers and Acquisitions team in the U.S., leading key projects such as the launch of Shell Midstream Partners and the Eagle Ford divestment. He subsequently managed finance teams in Trading & Supply, covering European Gas & Power, Global Crude, and Global Products & Operations.

Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”

Photo credit: Infineum
Published: 4 October, 2024