Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Russian fuel oil flows into the ARA again, Gibraltar Strait grapples with weather disruptions; bunker supply normal in Algoa Bay and Durban.

Published

2 years ago

December 15, 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:

14 December 2022

Russian fuel oil flows into the ARA again
Gibraltar Strait grapples with weather disruptions
Bunker supply normal in Algoa Bay and Durban

Northwest Europe

Bunker fuel availability is said to be normal for all fuel grades in the ARA hub, with several suppliers offering prompt deliveries of LSMGO in the region. Recommended lead times for LSMGO and VLSFO in Rotterdam are 3-4 days, while HSFO requires around 5-6 days, sources say.

The ARA's independent fuel oil stocks have averaged 1% higher so far this month than in November, according to Insights Global data. Stocks have increased despite signs of a drop in net imports. Meanwhile, Russia has once again emerged as the top fuel oil import source for the region in December.

According to cargo tracker Vortexa, Russia has accounted for 37% of total fuel oil inflows to the ARA so far in December. This is the first time since August that Vortexa has picked up a Russian fuel oil cargo arrival in the ARA. Other sources of fuel oil imports to the region this month have included the UK, Finland, France, Denmark, Poland and Germany.

The ARA’s average gasoil stocks have also increased this month, but remain far below their five-year average position. This comes as gasoil imports to the region have increased by a significant 274,000 b/d over November levels. Russia remains the top gasoil import source for the ARA.

Strike action at BP's Rotterdam refinery ended last week, which is set to further boost bunker fuel supply in the ARA, according to sources. The strike had left BP’s 393,800 b/d nameplate capacity at Rotterdam refinery idled for nearly two weeks.

Supply of VLSFO and LSMGO is said to be normal off Skaw, requiring lead times of around seven days, a source says. Prompt availability of HSFO is tight and may require longer lead times, the source adds.

Mediterranean

Key ports in the Gibraltar Strait are facing weather-related disruptions this week. Bunker fuel supply across all grades is said to be normal in the region, but adverse weather conditions could delay deliveries there, sources say.

Suppliers are working to clear bunker backlogs in Gibraltar after bunkering resumed from a one-day suspension on Wednesday. All suppliers experienced delays on Wednesday due to bad weather, according to port agent MH Bland. 18 vessels were waiting to bunker in the port.

Suppliers in Algeciras and Ceuta have also been struggling to deliver stems due to adverse weather conditions. Anchorage bunkering has been suspended in Ceuta on Wednesday. Weather is forecast to remain rough in Ceuta until Saturday, which could cause more delays.

Meanwhile, bunker operations are running normally in other regional bunker locations such as Malta, Las Palmas and Tenerife. All ports and one in six bunkering areas off Malta were operational on Wednesday morning, Seatrans Shipping agency says.

With Gibraltar, Algeciras and Ceuta facing weather-related disruptions, bunker calls are expected to rise in other ports in the Gibraltar Strait and wider Mediterranean region, sources say. An average of eight vessels have arrived to bunker in Malta each day this week, which is almost the same as last week.

With robust demand in Malta this week, securing prompt deliveries of VLSFO and LSMGO can be difficult there, a source says. Prompt delivery prospects for the two grades are expected to improve from next week, the source adds.

Bunker fuel supply is also steady in Las Palmas, sources say.

And in the Greek port of Piraeus, availability of VLSFO and LSMGO is said to be normal, a source says.

Africa

Suppliers are working to clear bunker backlogs in Algoa Bay as bunkering resumed on Wednesday after being suspended for two days, Rennies Ships Agency says. Four vessels were waiting to bunker at anchorage and 14 more are scheduled to arrive in Algoa Bay and Port Elizabeth for bunkers this week, Rennies says.

Bunker supply is steady in South Africa’s Durban and Algoa Bay. Recommended lead times for VLSFO and LSMGO deliveries in Durban are around seven days, a source says.

Prompt supply of VLSFO and LSMGO is normal in Mozambique’s Nacala, a source says. Four vessels are due to arrive for bunkers in Nacala this week. Suppliers can offer prompt delivery of LSMGO in nearby Maputo, while VLSFO availability is said to be tight this week, the source adds.

By Shilpa Sharma

Photo credit and source: ENGINE
Published: 15 December, 2022

Winding up

Singapore: Annual general meetings scheduled for Xihe Holdings subsidiaries

Development includes Da Xin Tankers, Dong Sheng Tankers, Dong Ya Tankers and Hua Zhong Shipping; meetings will be held electronically on 7 and 8 May, according to Government Gazette notices.

Published

21 hours ago

April 23, 2025

Admin

Several notices were published on the Government Gazette on Tuesday (22 April) regarding the annual general meetings of the companies and creditors to be held electronically on 22 April for Xihe Holdings subsidiaries.

The subsidiaries are Dong Sheng Tankers Pte Ltd, Da Xin Tankers Pte Ltd, Dong Ya Tankers Pte Ltd, and Hua Zhong Shipping Pte Ltd.

Annual general meeting for Dong Sheng Tankers are to be held on 8 May at the following times:

For the company: 2pm

Annual general meetings for Da Xin Tankers are to be held on 7 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Dong Ya Tankers are to be held on 8 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Hua Zhong Shipping are to be held on 7 May at the following times:

For the company: 2pm
For the creditors: 3pm

The agenda for all the meetings are:

To receive an update on the liquidation.
To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up

Manifold Times previously reported on the winding up of Da Xin Tankers, Dong Ya Tankers and Hua Zhong Shipping Pte Ltd and the appointment of the joint and several liquidators of the firms.

Photo credit: Drew Beamer
Published: 23 April, 2025

LNG Bunkering

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

Company says it is the first gas utility company in Japan to offer LNG bunker fuel at its terminal to vessels and is also exploring the potential of replacing LNG with e-methane as a marine fuel.

Published

21 hours ago

April 23, 2025

Admin

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

Osaka Gas on Monday (21 April) said it has launched its shore-to-ship LNG bunkering service, becoming the first gas utility company in Japan to offer liquefied natural gas (LNG) at its terminal to vessels.

The first delivery took place today at Osaka Gas’ Senboku LNG Terminal in Takaishi City, Osaka Prefecture, where LNG was supplied to Verde Heraldo, a bulker operated by Mitsui OSK Lines (MOL).

Manifold Times previously reported that the bulker will sail under long-term transport contracts to supply raw materials for JFE Steel Corporation's mills.

With the launch of the shore-to-ship service, in addition to its existing truck-to-ship LNG bunkering service—operational since 2019—Osaka Gas enhances its LNG fuel delivery capabilities to address the current scarcity of facilities in Japan that can supply LNG to vessels.

The company’s future plans include the introduction of a ship-to-ship LNG bunkering service utilising a dedicated LNG bunkering vessel, scheduled to commence in fiscal 2026.

These supply methods aim to provide a stable and flexible LNG fuel supply to an increasing number of LNG-fuelled vessels as the maritime industry transitions away from heavy fuel oil.

This growth in LNG-fuelled vessels is driven by global decarbonisation trends and the International Maritime Organization’s target to achieve net zero greenhouse gas emissions by 2050. Through its LNG bunkering services, Osaka Gas is well-positioned to contribute to maritime industry sustainability.

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

In addition to expanding LNG fuel supply to vessels, Osaka Gas is exploring the potential of replacing LNG with e-methane as a marine fuel.

Photo credit: Osaka Gas
Published: 23 April, 2025

Alternative Fuels

Japan: J-ENG begins co-firing of first full-scale marine engine with ammonia

Company says the first Japanese-developed and manufactured commercial full-scale, low-speed, ammonia-fuelled two-stroke engine has started co-firing operation with ammonia.

Published

21 hours ago

April 23, 2025

Admin

Japan: J-ENG begins co-firing of first full-scale marine engine with ammonia

Japan Engine Corporation (J-ENG) on Monday (21 April) said the first Japanese-developed and manufactured commercial full-scale, low-speed, ammonia-fuelled two-stroke engine has started co-firing operation with ammonia, which will be installed in a vessel.

J-ENG is developing the engine under the “Green Innovation Fund Project: Next-generation Ship Development” of the New Energy and Industrial Technology Development Organization (NEDO).

Since May 2023, when J-ENG started the world's first ammonia co-firing operation of a large, low-speed, two-stroke engine in a test engine, J-ENG has obtained many results and knowledge, including stable operation at high ammonia co-firing rates and safe handling of ammonia, through various test operations over a period of about a year and a half.

J-ENG will conduct verification operations on the full-scale engine and plans to ship the engine in October of this year. The engine will be installed on an Ammonia-fuelled Medium Gas Carrier (AFMGC) and then demonstration operations of the vessel will be carried out then.

In order to accommodate a wide variety of ammonia-fueled vessels, J-ENG is also concurrently developing an ammonia-fueled engine with a cylinder bore of 60cm, following the first engine with a 50cm cylinder bore mentioned above, for several promising follow-on projects.

Furthermore, after achieving the development and social implementation of these engines, the company has decided to construct a new plant with the support of a subsidy project by the Ministry of the Environment and the Ministry of Land, Infrastructure, Transport and Tourism through the GX Economic Transition Bonds.

The new plant, which is scheduled for completion in 2028, will expand the production of ammonia fuel engines (in the product mix with fuel oil engines) and promote the spread and expansion of zero-emission ships.

“J-ENG, as a first mover of next-generation fuel engines, will contribute to the development of the Japanese shipping and shipbuilding industries through the early launch and expansion of these engines, and at the same time, contribute to the reduction of greenhouse gases (GHG) in international shipping and the achievement of carbon neutrality by 2050,” the company said on its website.

Photo credit: Japan Engine Corporation
Published: 23 April, 2025