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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

ARA gasoil stocks grow to one-year highs ahead of sanctions; bunkering normal in most Gibraltar Strait ports; fuel supply normal in South African ports.

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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:

1 February 2023

  • ARA gasoil stocks grow to one-year highs ahead of sanctions
  • Bunkering normal in most Gibraltar Strait ports
  • Fuel supply normal in South African ports

 

Northwest Europe

Supply of LSMGO is normal in Rotterdam and in the wider ARA bunkering hub. Securing prompt deliveries of VLSFO and HSFO can be slightly difficult there, but some suppliers can deliver for prompt dates depending on the quantity, a source says.

Recommended lead times for LSMGO delivery in Rotterdam are around three days, sources say. VLSFO requires lead times of around 4-5 days and a period of six days for HSFO.

The ARA’s independently held gasoil stocks have risen to one-year highs this month as importers in the region have pulled large volumes from Russia ahead of the EU's ban on imports of refined Russian oil products. The inventories have averaged 17% higher so far this month than in December, according to Insights Global data.

Russia remains the top source for gasoil imports in the ARA with 38% of the total, according to cargo tracker Vortexa.

The ARA’s independent fuel oil stocks have also averaged 6% higher so far this month than in December and have risen slightly above their five-year average position for the year, Insights Global data shows.

Following the EU's ban on imports of seaborne Russian crude oil from 5 December, the EU will also ban imports of refined Russian oil products from 5 February. Unlike the crude oil ban, which has a 45-day wind-down period for oil purchased above a $60/bbl price cap, there is no wind-down period for refined oil product imports, a spokesperson from the European Commission has confirmed to ENGINE.

This means that European importers will have to have to look for alternative, non-Russian sources of gasoil, diesel and fuel oil imports in just four days.

In Germany’s Hamburg, supply of VLSFO and LSMGO is said to be normal, while HSFO delivery prospects remain subject to enquiry, a source says.

Bunker fuels supply remains normal-to-tight for prompt dates off Skaw, requiring lead times of up to seven days, a source says. Securing HSFO deliveries for prompt dates can be difficult there, the source adds.

Bunker fuel supply is currently said to be normal across French ports. Recent refinery worker strikes in France have not had major impacts on bunker fuel availability and deliveries, according to sources.

Workers all over France are protesting the government’s plans to reform the country's retirement system, including bumping up the retirement age from 62 to 64. A nation-wide strike was carried out in France on Tuesday.

Availability of VLSFO is normal in the UK’s port of Southampton, a source says.

 

Mediterranean

Prompt supply of LSMGO is said to be normal in Gibraltar. But securing large volumes of VLSFO and HSFO for prompt dates can be slightly difficult there, sources say.

Lead times of 3-4 days are advised for LSMGO delivery in Gibraltar, and around five days for VLSFO. HSFO may require a longer period of around six days, a source says.

Bunkering is moving ahead as normal in most ports in the Gibraltar Strait. Bunker operations at anchorages resumed in Algeciras and Ceuta on Wednesday after being disrupted earlier this week due to bad weather.

Wind speed reduced to a moderate level of 12-14 knots in Algeciras on Wednesday, from more than 22 knots on Tuesday, and suppliers were delivering stems at the port’s outer anchorage, according to port agent MH Bland.

In Ceuta, favourable weather conditions have allowed suppliers to offer bunker deliveries at anchorage on Wednesday. Suppliers were working to clear bunker backlogs in Ceuta, according to shipping agent Jose Salama & Co.

One vessel was waiting to bunker at anchorage in Ceuta on Wednesday, down from five on Tuesday. Eleven more vessels were due to arrive for bunkers in Ceuta on Wednesday.

Meanwhile, bad weather has kept bunkering limited in Las Palmas. Even as the outer anchorage is technically open for bunker operations, suppliers are not delivering stems there due to weather-related risks, according to MH Bland.

Bunker deliveries via ex-pipe at berth or by barge at Las Palmas' inner anchorage are available, MH Bland says. However, the inner anchorage has a limited bunker capacity of only one vessel at a time.

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

Bunkering is progressing normally in Malta's ports and offshore areas. No congestion has been reported in Malta this week, according to Seatrans Shipping agency.

Availability of VLSFO and LSMGO is said to be normal in the Greek port of Piraeus, while HSFO is tight for prompt dates, a source says.

 

Africa

Bad weather has complicated bunker deliveries in Algoa Bay this week. Strong winds of up to 30 knots hit the bay on Wednesday, disrupting smooth bunker deliveries there, according to sources.

Bunker operations were kept on standby in Algoa Bay on Tuesday. Operations resumed for a short period on Wednesday morning, but were halted again in the evening, the source says. Calmer weather is forecast on Thursday, which might help suppliers to deliver stems and clear backlogs in Algoa Bay, the source adds.

Bunker fuel supply is said to be normal in Algoa Bay, but deliveries remain subject to weather conditions.

Supply of VLSFO and LSMGO is also normal in Durban, with recommended lead times of around seven days.

Bunkering is going ahead as normal in Mozambique’s Nacala and Maputo ports. A total of seven vessels are scheduled to arrive to bunker across the two ports this week, unchanged from last week. Availability of VLSFO and LSMGO is said to be normal in both locations.

By Shilpa Sharma

 

Photo credit and source: ENGINE
Published: 2 February, 2023

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Biofuel

China Shipping & Sinopec Suppliers completes first biofuel bunkering op of passenger ship in Dalian

Firm successfully refuelled passenger ship “Chang Shan Dao” owned by Cosco Shipping Ferry with B24 bio bunker fuel on 29 November at Dalian Cruise Port.

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China Shipping & Sinopec Suppliers completes first biofuel bunkering op of passenger ship in Dalian

China Shipping & Sinopec Suppliers Co., Ltd. on Wednesday (29 November) successfully refuelled passenger ship "Chang Shan Dao" owned by Cosco Shipping Ferry Co., Ltd. with B24 bio bunker fuel at the Dalian Cruise Port. 

The occasion marked the first biofuel bunkering operation for passenger ships in China. 

The B24 biofuel oil used was blended with 24% biofuel and 76% conventional low-sulphur fuel oil.

Sinopec China Shipping Fuel Supply, which is responsible for the bunkering operation, is a bunker supply firm jointly established by Sinopec Group and COSCO Shipping Group.

According to Li Zhi, Deputy Party Secretary and Deputy General Manager of China Shipping & Sinopec Suppliers Co., Ltd., the biofuel bunkering business is another step in the company's active business of the group's development strategy. 

The bunkering operation after the firm completed the first bonded biofuel bunkering operation of a domestic ship on 7 September. 

Disclaimer: The above article published by Manifold Times was sourced from China’s domestic market through a local correspondent. While considerable efforts have been taken to verify its accuracy through a professional translator and processed from sources believed to be reliable, no warranty is made regarding the accuracy, completeness and reliability of any information.

Photo credit: China Shipping & Sinopec Suppliers
Published: 8 December, 2023

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Alternative Fuels

Singapore, Tianjin to pilot and trial alternative bunker fuels following shipping corridor MoU

Singapore – Tianjin Green and Digital Shipping Corridor will serve as a valuable testbed for both countries to pilot and trial digital solutions, alternative fuels and technologies, amongst others.

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Singapore, Tianjin to pilot and trial alternative bunker fuels following shipping corridor MoU

The Maritime and Port Authority of Singapore (MPA) and the People’s Republic of China’s Tianjin Municipal Transportation Commission on Wednesday (6 December) signed a memorandum of understanding (MoU) to establish the Singapore – Tianjin Green and Digital Shipping Corridor.

Mr Teo Eng Dih, Chief Executive, MPA, and Mr Wang Zhinan, Director General, Tianjin Municipal Transportation Commission, signed this MoU.

The MoU marked the first Green and Digital Shipping Corridor established between Singapore and China to support the decarbonisation, digitalisation and growth of the maritime industry between Singapore and the Bohai Region. 

The Singapore – Tianjin Green and Digital Shipping Corridor will serve as a valuable testbed for both countries to pilot and trial digital solutions, alternative bunker fuels and technologies, and facilitate talent development to support the decarbonisation and digitalisation of shipping. 

Singapore and Tianjin will work with the research community, the  institutes of higher learning, and industry stakeholders such as shipping lines, port operators, shipbuilders, classification societies, and bunker suppliers to enable more efficient port clearance through digital exchanges, encourage the offtake of zero or near-zero greenhouse gas emission fuels and adoption of new fuel technologies, spur innovation and support the growth of the maritime startups community, and facilitate manpower training and professional development.

The establishment of the Singapore – Tianjin Green and Digital Shipping Corridor reaffirms the strong commitment by Singapore and Tianjin to accelerate maritime decarbonisation and digitalisation. Singapore will also be exploring the establishment of similar collaboration with other maritime and port ecosystems within China.

Photo credit: Maritime and Port Authority of Singapore
Published: 8 December, 2023

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Decarbonisation

Report highlights routes-based action plan methodology to accelerate uptake of clean bunker fuels

NextGEN Connect-GreenVoyage2050 collaboration, which includes Singapore, emphasises the important role of regional energy hubs in enabling the inclusive adoption of clean marine fuels.

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Report highlights routes-based action plan methodology to accelerate uptake of clean bunker fuels

The Maritime and Port Authority of Singapore (MPA) on Thursday (7 December) said the NextGEN Connect-Green Voyage2050 Project identified a key role for regional hubs to help connect large demand clusters and remote locations, with regional fuel supply sources, in order to enable a more inclusive and effective transition to a low-carbon maritime future. 

The project is a collaboration between Singapore, Norway and the International Maritime Organization (IMO). 

These findings were unveiled in the Lloyd’s Register Maritime Decarbonisation Hub (LR MDH) report titled Routes-based Action Plans: A Toolkit launched at the Voyage to Net-Zero Forum, which was organised by MPA, at the 28th United Nations Climate Change Conference (COP28/CMP8/CMA5) yesterday.  

The report was developed following a workshop discussion that was held from 5 to 6 October 2023 in Singapore, with the participation of 40 stakeholders representing ports and National Administrations across Asia, based on the concept of the LR MDH’s First Movers Framework for green corridors. The workshop simulated the process steps of the routes-based action plan methodology, addressing the limitations in its application in the wider Asian context. Additional engagements with stakeholders from the Pacific are envisaged to further refine the methodology. 

“One of the key findings in our report highlighted the varying pace of decarbonisation efforts across the Asian region and the need for regional coordination among governments to establish energy clusters that will serve both as demand centres and energy producing hubs” said Charles Haskell, Director at LR MDH. 

The creation of energy producing hubs includes defining a strategy that brings together demand from different countries at different developmental stages across the region to build up investment cases for implementing energy infrastructure at scale, all the while taking into consideration the economic and social benefits for local communities. 

The report also emphasised that routes-based action plans should be steered by national governments to give confidence to the industry’s infrastructure investment decisions, with development banks and regional funds needing to play a part to help tailor financing solutions to support infrastructure development. 

“If we truly want to achieve a net-zero future where no one is left behind, we cannot focus only on existing first mover initiatives. We must also study locations where the energy infrastructure is still in its infancy”, added Charles Haskell. 

Essential to driving the implementation of routes-based action plans, as highlighted in the report, is the pooling of resources and capacity building to develop the business case for building the necessary infrastructure for regional hubs that include Least Developed Countries (LDCs) and Small Island Developing States (SIDS). This will require regional coordination and collaboration involving governments and all stakeholders across the maritime supply chain.

Mr. Teo Eng Dih, Chief Executive of MPA, said: “As we steer toward a sustainable maritime future, fostering a collective and inclusive approach is imperative in the development of green corridors and the energy transition to decarbonise international shipping.”

“The NextGEN Connect-GreenVoyage2050 collaboration emphasises the important role of regional energy hubs in enabling the inclusive adoption of clean marine fuels, particularly for LDCs and SIDSs. MPA looks forward to continuing its collaboration with IMO, Ministry of Climate and Environment of Norway and LR MDH to pilot solutions to reduce GHG emissions from ships and drive innovative transformations in the maritime industry.”

Sveinung Oftedal, Chief Negotiator of the Norwegian Ministry of Climate and Environment, said: “Separate routes for emission-free ferries and ships can play an essential role in stimulating early action to adopt zero or near-zero emission technologies and fuels, and hence are an important step towards decarbonising shipping. There is currently a significant volume of maritime traffic between Asian countries, and our workshop was a great forum to discuss opportunities the decarbonisation of maritime shipping can bring and how efforts can be linked to countries’ wider energy transition.”

Jose Matheickal, IMO Director of Partnerships and Projects, said: “Supporting developing countries, including SIDS and LDCs, in their efforts to implement the 2023 IMO Strategy on the Reduction of GHG Emissions from Ships is imperative to the decarbonisation of the maritime sector. IMO is pleased to provide, through this collaboration, practical support around the development and subsequent implementation of National Action Plans and route-based actions in line with IMO’s MEPC RESOLUTION.366(79) that encourages Member States to undertake these voluntary actions to facilitate the achievement of greener shipping and reduced emissions.” 

Note: ‘Routes-based action Plans: a toolkit’ can be found here

Photo credit: Maritime and Port Authority of Singapore
Published: 8 December, 2023

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