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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

ARA gasoil stocks rise on Asian and US inflows; bunkering resumes partly in Gibraltar; prompt supply tight in Nacala amid strong demand.

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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:

15 February 2023

  • ARA gasoil stocks rise on Asian and US inflows
  • Bunkering resumes partly in Gibraltar
  • Prompt supply tight in Nacala amid strong demand

 

Northwest Europe

Prompt supply of LSMGO is said to be tight in the ARA bunkering hub at the moment. The product has a recommended lead time of around four days in Rotterdam, a source says.

Lead times of 4-5 days are advised for VLSFO delivery in Rotterdam, while HSFO requires around 5-6 days. HSFO delivery prospects in the region are subject to enquiries, a source says.

The ARA’s independently held gasoil stocks - which include diesel and heating oil - have averaged 13% higher so far this month than in January. The region’s gasoil inventories have risen to their highest level in the past year and are slightly above their five-year average position for this time of year, according to Insights Global data.

The EU's ban on imports of refined Russian oil products kicked in with a hard deadline from 5 February and Vortexa has not picked up any gasoil cargo inflows from Russia so far this month.

Saudi Arabia has emerged as the top source for gasoil and diesel imports to the ARA, accounting for 28% of the region’s total this month, Vortexa data shows. In addition to Saudi Arabia, importers in the ARA have pulled large volumes of gasoil and diesel from far-away Indian ports (15% of total) so far this month, and China (14%), and smaller volumes from a range of other sources including Japan (9%), the US and South Korea (7%).

The ARA’s independent fuel oil stocks have averaged 2% lower so far this month than in January and have remained below their five-year average position for the year. No Russian fuel oil cargo imports to the ARA have been picked up by Vortexa since January. This indicates that Russian fuel oil imports were phased out in January, after making up 10% of the ARA's total in December.

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

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

 

Mediterranean

Bunker deliveries in most Gibraltar Strait ports will remain subject to weather conditions in the coming days as the weather is forecast to deteriorate through this week, sources say.

Bunkering resumed partly on Tuesday in Gibraltar and in the adjacent port of Algeciras. This has helped suppliers to clear some of their backlogs in the region, sources say.

Gibraltar's bunker backlog halved from 16 vessels on Tuesday morning to eight vessels on Wednesday morning, according to port agent MH Bland. A huge bunker backlog had built in port at the start of this week as bunkering was suspended since Thursday last week.

Suppliers in Gibraltar have been busy clearing their bunker backlog and are not offering new deliveries for prompt dates. One supplier in the region is not fixing new stems until the end of next week.

While the weather remains a concern in Gibraltar and Algeciras this week, several vessels have been diverted to receive bunkers at alternative locations. Alternative bunker locations in the wider Mediterranean region include Las Palmas, Tenerife, Sines, Lisbon, Kali Limenes and Piraeus.

Suppliers in Portuguese and Greek ports have seen an uptick in demand in recent days. Bunker-only calls have increased in the Portuguese ports of Lisbon and Sines.

Demand has also picked up Las Palmas, where one supplier is completely booked for prompt deliveries. Bunker operations are running normally in Las Palmas. Strong winds and high swells are forecast to hit the port on Friday, which could complicate deliveries at its outer anchorage.

Bunkering has been limited in Malta this week, according to MH Bland. Only one in six bunkering areas off Malta are open for supply due to rough weather conditions. Suppliers in Malta are not taking any new offers. A jetty in Valletta has been damaged by rough weather and is expected to limit product loadings and bunkering in Valletta and in bunker locations off Malta for a week, according to sources.

Bunker operations have been suspended in Turkey’s Port of Iskenderun since Monday last week after a deadly earthquake hit Turkey and Syria, according to sources. Iskenderun's port infrastructure suffered a severe damage from the earthquake, which was followed by a major fire incident on 6 February.

It might take weeks or months for Iskenderun to resume bunkering and other port operations, a source says. Meanwhile, bunkering is progressing as normal in Istanbul, a source says.

 

Africa

Bunkering has been going ahead as normal in Algoa Bay this week amid conducive weather conditions, according to Rennies Ships Agency. There is forecast of favourable weather until Sunday morning.

15 vessels are scheduled to arrive for bunkers in Port Elizabeth and Algoa Bay for the rest of the week, Rennies says.

Bunker fuel availability is said to be normal in Algoa Bay and normal-to-tight in Durban. Recommended lead times for VLSFO and LSMGO deliveries in Durban are around seven days, a source says.

Meanwhile, supply of the two grades is currently tight in Mozambique’s Nacala port amid strong demand, a source says. Five vessels are expected to arrive for bunkers in Nacala this week.

Supply of VLSFO and LSMGO is said to be normal in Mozambique’s capital port city of Maputo. Five vessels are due to arrive for bunkers there this week.

Bunkering deliveries are going ahead as normal across the two ports in Mozambique.

By Shilpa Sharma

 

Photo credit and source: ENGINE
Published: 16 February, 2023

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Vessel Arrest

Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

Panama-registered vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

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Malaysia: MMEA detains tanker for illegal anchoring in East Johor waters

The Malaysian Maritime Enforcement Agency (MMEA) on Tuesday (28 November) said a Panama-registered tanker has been detained for illegally anchoring in East Johor waters on 27 November.

MMEA Tanjung Sedili Zone acting director Maritime Cmdr Mohd Najib Sam said the tanker was detained by a patrol boat at 11am at 15.8 nautical miles northeast of Tanjung Penawar.

The captain of the vessel failed to produce any documents that permission had been obtained to anchor in Malaysian waters. 

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The vessel was operated by 17 crew members, aged between 21 to 58 years, from Pakistan, India and Bangladesh.

The case will be investigated under Section 491B(1)(L) of the Merchant Shipping Ordinance 1952 for anchoring without permission. If found guilty, individuals may be fined not exceeding MYR 100,000 or face an imprisonment term of not more than two years, or both.

Manifold Times previously reported law firm Oon & Bazul LLP sharing on steps shipowners should keep in mind before anchoring and conducting STS operations in Malaysian waters to avoid detention.

Related: Oon & Bazul to shipowners: Measures to take before anchoring, conducting STS ops in Malaysian waters

Photo credit: Malaysian Maritime Enforcement Agency
Published: 29 November, 2023

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Alternative Fuels

DNV paper outlines bunkering of alternative marine fuels for boxships

Third edition of its paper series focuses on LNG, methanol and ammonia as alternative bunker fuel options for containerships; explores bunkering aspects for LNG and methanol.

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DNV paper outlines bunkering of alternative marine fuels for boxships

Classification society DNV recently released the third edition of its paper series Alternative fuels for containerships, focused on LNG, methanol and ammonia as alternative bunker fuel options for containerships.

In its updated paper series, DNV examined the different alternative marine fuel options and provided an overview of the most important technical and commercial considerations for the containership sector.

It explored the bunkering technology for LNG, bunkering infrastructure for methanol, and availability and infrastructure of ammonia. 

Building on the foundation laid in the second edition, which focused on the most important aspects of methanol as a fuel, this latest third edition delves deeper  – exploring the technical intricacies and commercial considerations associated with adopting methanol as an alternative fuel for containerships.

Furthermore, it provides an overview of crucial aspects related to ammonia and discusses its potential as an alternative fuel for containerships.

Amongst others, the new edition of the paper looks at the following aspects:

  • Technical design considerations for methanol
  • Commercial implications of adopting methanol as an alternative fuel
  • Ammonia's potential as an alternative fuel
  • Availability, infrastructure and ship fuel technology for ammonia
  • Major updates based on the latest IMO GHG strategy decisions at the MEPC 80 meeting

Note: The third edition of DNV’s full paper titled Alternative Fuels for Containerships can be found here.

Related: DNV paper outlines bunkering infrastructure of alternative fuels for boxships

Photo credit: DNV
Published: 29 November, 2023

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Alternative Fuels

EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Tool is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering.

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EDF, LR and Arup launch tool scoring ports’ potential to produce and bunker electrofuels

Lloyd’s Register (LR) Maritime Decarbonisation Hub and Environmental Defense Fund (EDF), in collaboration with Arup, on Tuesday (28 November) introduced the Sustainable First Movers Initiative Identification Tool, a system to help shipping stakeholders align investment decisions that support the maritime energy transition away from fossil fuels.

The tool, which is presented in a preliminary findings report – The Potential of Ports in Developing Sustainable First Movers Initiatives – scores a port’s potential to produce and bunker electrofuels while delivering local environmental and community benefits in alignment with the global temperature target of 1.5 degrees Celsius set by the Paris Agreement.

“Ports can play an important role in kickstarting shipping’s decarbonisation process even before global policies are established,” said Marie Cabbia Hubatova, Director, Global Shipping at Environmental Defense Fund.

“By considering the impact sustainable first mover initiatives can have on port-side communities, climate, environment and economies, resources can be better directed to locations where these initiatives will make the biggest difference.”

With close to two billion people living near coastal zones globally, the role of, and impacts on local port communities must be intentionally considered as the sector decarbonises globally. Ports can play a crucial role in ensuring shipping decarbonisation efforts are done in a way that has positive impacts on port communities.

The preliminary phase of the Sustainable First Movers Initiative Identification Tool analyses 108 ports in the Indo-Pacific region according to five criteria including land suitability, air quality, renewable energy surplus, economic resilience and ship traffic.

It is also applied to three different port scenarios, including ports exploring fuel production and bunkering, ports exploring fuel exports, and ports exploring fuel imports and bunkering. The combined criteria and scenario evaluation determines which ports have the greatest potential (high potential) for sustainable first mover initiatives to lead to significant emissions reductions and positive impacts in nearby communities, such as improved air quality and economic resilience.

“The transition to clean energy supply for shipping can be achieved only if stakeholders act together. Identifying potential port locations is the first step in this process,” said Dr Carlo Raucci, Consultant at Lloyd’s Register Maritime Decarbonisation Hub. “This approach sets the base for a regional sustainable transition that considers the impacts on port-side communities and the need to avoid regions in the Global South lagging behind.”

Regions in the Global South are fundamental in driving the decarbonisation of shipping. To make this transition effective, the rate at which different countries adopt and scale up electrofuels must be proportional to the difference in capital resources globally to avoid additional costs being passed on to local communities. Sustainable first mover initiatives can play an important role in making this happen by ensuring the sector’s decarbonisation is inclusive of all regions and by engaging all shipping stakeholders, including port-side communities.

“There’s a huge opportunity for early adopter shipping decarbonisation initiatives to unlock benefits for people and planet – shaping the way for a more equitable transition in the 2030s,” said Mark Button, Associate, Arup. “Our collective approach shows that taking a holistic view of shipping traffic, fuel production potential and port communities could help prioritise action at ports with the greatest near-term potential.”

The tool can be customised according to stakeholders’ needs and goals and is dependent on scenario desirability. The next phase of this work will include the selection and detailed assessment of 10 ports to help better understand local needs and maximise the value offered by sustainable first mover initiatives. 

LR and EDF carried out a joint study on ammonia as shipping fuel, and LR and Arup have collaborated on The Resilience Shift study focused on fuel demand for early adopters in green corridors, ports, and energy systems, amongst many other projects.

Photo credit: Lloyd’s Register
Published: 29 November, 2023

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