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ENGINE: Europe & Africa Bunker Fuel Availability Outlook (29 May 2024)

LSMGO supply has tightened in the ARA; sluggish bunker demand in Piraeus; HSFO tightens in Nacala.

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RESIZED ENGINE Europe and Africa

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:

  • LSMGO supply has tightened in the ARA
  • Sluggish bunker demand in Piraeus
  • HSFO tightens in Nacala

Northwest Europe

Availability of HSFO and VLSFO is normal in Rotterdam and in the wider ARA hub, with a trader recommending lead times of 3-5 days for both grades. LSMGO prompt supply has been relatively tighter in the ARA hub.

The ARA’s independently held fuel oil stocks have averaged 6% higher so far this month than across April, according to Insights Global data.

The ARA’s fuel oil stocks have grown to their bulkiest monthly level since April 2021. The region has imported 281,000 b/d of fuel oil so far this month, up from 252,000 b/d of fuel oil imported in April, according to data from cargo tracker Vortexa.

The UK and the US have emerged as the ARA's biggest fuel oil import source so far this month, each accounting for 13% of the region’s total imports. Nigeria has ranked second, accounting for 11% of the total imports. Other import sources have been Algeria and Lithuania (10% each).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 8% so far this month.

In England’s Immingham port, bunker fuel supply is mostly good for non-prompt delivery dates. Lead times of 6-8 days are recommended for LSMGO and VLSFO, according to a source. Strong wind gusts of up to 28 knots are forecast for Thursday and may impact bunkering in the region.

Availability is normal in the German port of Hamburg, according to a trader, with prompt delivery dates available across all grades. The trader recommends lead times of 3-5 days for all grades.

Off Skaw, very prompt supply (0-2 days) is difficult to secure for all grades, a trader said. Lead times of 7-10 days are generally advised for all grades in the port. Bad weather is forecast off Skaw on Friday, which may impact bunkering.

Mediterranean

All grades remain in good supply for prompt dates in Gibraltar, a trader said. Lead times of 2-4 days are recommended for all grades. Congestion has eased in the port coming into this week. Only two vessels were waiting for bunkers on Tuesday, significantly down from 11 last Friday, according to a source. Bunkering delays from suppliers led to severe congestion last week.

Congestion has increased in Las Palmas amid high bunker demand, according to a trader. Very prompt supply (0–2 days) can be difficult to secure, with some suppliers able to offer grades for deliveries this weekend. Red Sea vessel diversions have led to higher bunkering demand in the Canary Island port, the trader said. Availability is mostly normal across all bunker grades, with lead times of 4-6 days advised.

Other Mediterranean ports, such as Piraeus, Malta Offshore and Istanbul, continue to witness low demand. Bunker demand has been particularly slow this week, a trader said.

Bunker fuel availability is good in the Greek port of Piraeus, a trader told ENGINE. Lead times of 3-4 days are advised across all bunker grades. Calm weather is forecast in the port for the rest of the week, making it conducive to bunkering.

Availability is also good off Malta, the trader said, with similar lead times of 3-4 days recommended. Adverse weather is forecast in the area over the weekend, which may complicate bunkering in the area.

Turkey’s Istanbul port has normal availability, with lead times of 3-4 days advised across all grades.

Africa

VLSFO availability is good in the South African ports of Richards Bay and Durban. A trader recommends lead times of 7-10 days in the port. 

Similarly, LSMGO availability is normal in Durban, with a trader recommending lead times of 7-10 days for optimal coverage from suppliers. Strong wind gusts up to 31 knots are forecast in Durban on Friday and may complicate bunker deliveries there.

Mozambique’s Nacala has reported steady demand across all grades this week, according to a source. HSFO tightness seen last week still persists. Previously, prompt VLSFO availability was limited due to high demand, but the grade's supply has now improved. LSMGO availability is relatively good in Nacala.

In Maputo, VLSFO demand continues to remain high in the port. VLSFO availability, which was dry for prompt delivery in Maputo last week, has improved now. LSMGO availability is also good in the port, with steady demand reported.

By Manjula Nair

 

Photo credit and source: ENGINE
Published: 30 May 2024

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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.

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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

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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.

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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

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Mass Flowmeter

TFG Marine completes MFM installation on bunkering vessel “MT Hakkasan”

Firm announced the addition of another vessel to its fleet equipped with a fully calibrated, ISO 22192-certified mass flow meter, in Port Louis, Mauritius.

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TFG Marine completes MFM installation on bunkering vessel “MT Hakkasan”

Global marine fuel supply and procurement firm TFG Marine TFG Marine on Thursday (23 January), announced the addition of another vessel to its fleet equipped with a fully calibrated, ISO 22192-certified mass flow meter, in Port Louis, Mauritius.

The installation was done after months of collaboration with Swiss-based mass flow meter partner, Endress+Hauser Group, and certification specialists, Metcore International Pte Ltd. 

“The MT Hakkasan, a supply vessel operated under our TFG Marine-GRM (Group Roland Maurel) joint venture, is the first of its kind to feature this cutting-edge technology at the rapidly growing Indian Ocean bunkering hub,” TFG Marine said.

This latest installation further demonstrates our commitment to equipping our fleet with mass flow meter technology, enabling us to deliver marine fuel with the highest levels of efficiency, accuracy, and transparency from another one of our operating sites.

We look forward to continuing to roll out this advanced technology, providing our global customer base with a superior bunkering experience, wherever we operate.

Manifold Times previously reported TFG Marine carrying out preparatory inspection works with Endress+Hauser on the MT Hakkasan, the first of TFG Marine-GRM joint-venture’s bunkering vessels in the region to be fitted with a fully calibrated and ISO 22192 compliant MFM.

Related: TFG Marine and Endress+Hauser to install MFM on bunkering vessel in Mauritius

 

Photo credit: TFG Marine
Published: 24 January, 2025

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