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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

ARA replaces Russian with Saudi fuel oil imports; HSFO supply improves in Gibraltar; Mozambican ports mostly unscathed after cyclone hit.

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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 March, 2023

  • ARA replaces Russian with Saudi fuel oil imports
  • HSFO supply improves in Gibraltar
  • Mozambican ports mostly unscathed after cyclone hit

 

Northwest Europe

VLSFO and LSMGO delivery capacity is still under pressure with several suppliers in Rotterdam, a source says. Barge loading delays at oil terminals have held back delivery schedules. One supplier is Rotterdam waited at least two days to load a barge earlier this week, the source adds.

Recommended lead times for LSMGO delivery in Rotterdam are around three days, which is longer than usual, a source says. Lead times of around five days are advised for VLSFO deliveries in the ARA region, and up to six days for HSFO.

Meanwhile, the ARA’s independently held fuel oil stocks have averaged 9% higher so far this month than in February, according to Insights Global data.

In the absence of Russian inflows, Saudi Arabia has become the ARA’s top fuel oil import source this month, according to cargo tracker Vortexa. Fuel oil imports from Saudi Arabia have accounted for 35% of the region’s total. Other sources of fuel oil imports have been Lithuania (23%), Denmark (12%), Poland and Estonia (9% each).

The region’s gasoil inventories have averaged 1% higher so far this month than in February, supported by non-Russian inflows. Most of these import volumes have been sourced from Singapore (26%), Qatar (16%), the UK, Spain and Turkey (10% each).

In Germany’s Hamburg, supply of VLSFO and LSMGO is said to be normal, requiring lead times of around 5-6 days, a source says. Delivery prospects for HSFO are subject to enquiries, the source adds.

Availability of VLSFO and LSMGO grades is normal-to-tight for delivery off Skaw, while HSFO supply remains tight there, a source says. Lead times of up to seven days are advised for VLSFO and LSMGO deliveries.

In France, extended strike action by refinery workers has started to impact bunker supply to some ports, according to sources. Workers in France are protesting the government's plans to reform the country's retirement system, including raising the retirement age from 62 to 64.

Strikes by workers unions continued for an eighth day on Wednesday, and were fuelled further on Saturday after the French Senate voted in favour of President Emmanuel Macron's pension reform plan.

Securing bunker deliveries is currently difficult in the ports of Dunkirk and Le Havre on the French Atlantic Sea coast, a source says. Bunker supply in these ports is subject to delivery dates and quantities.

 

Mediterranean

HSFO supply has improved from last week in Gibraltar, sources say. One supplier in Gibraltar can offer all fuel grades with lead times of around 3-4 days, a source says. That is down from recommended lead times of up to six days last week.

HSFO supply has also improved in Malta, while it is still tight for prompt dates in Las Palmas, a source says.

Bunker operations are running normally in Las Palmas, but heavy swells are forecast to hit the port on Friday, which could complicate deliveries.

A bit of congestion was reported in Gibraltar on Wednesday morning, when seven vessels were waiting to bunker, port agent MH Bland says. Some congestion was reported in Algeciras as well, while no backlog was reported in Ceuta and Malta, MH Bland says.

Bunker fuel availability is currently normal off Malta, a source says. Some suppliers can offer prompt deliveries of all the fuel grades.

VLSFO is still tight in the Greek port of Piraeus, while availability of HSFO and LSMGO is said to be normal there.

Prompt delivery schedules are under pressure in Barcelona, a source says One supplier is completely booked for prompt dates.

 

Africa

Supply of VLSFO and LSMGO is said to be normal in Durban and Algoa Bay, requiring lead times of up to seven days, sources say.

Strong winds and heavy swells are forecast to hit the bay between Wednesday and Friday. This could complicate deliveries and hold back some of the eight vessels scheduled to arrive for bunkers this week. Bunkering was in progress on Wednesday morning, with one vessel receiving fuel at anchorage, Rennies Ships Agency says.

Meanwhile, Cyclone Freddy hit central Mozambique on Sunday, but did not have any impact on bunker deliveries in Nacala and Maputo, a source says. Bunker operations are running smoothly across the two ports in Mozambique, where a total of five are due to arrive for bunkers this week, down from seven last week.

By Shilpa Sharma

 

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

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Methanol

Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Firm ordered a 65,700-dwt methanol dual-fuel dry bulk carrier with Tsuneishi Shipbuilding; MOL signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027.

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Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Japanese shipowner Kambara Kisen has ordered a 65,700-dwt methanol dual-fuel dry bulk carrier newbuilding from Tsuneishi Shipbuilding Co., Ltd, according to Mitsui O.S.K. Lines (MOL) on Wednesday (20 September).

MOL said it signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027. 

The vessel will be designed to use e-methanol produced primarily by synthesising recovered CO2 and hydrogen produced using renewable energy sources, and bio-methanol derived from biogas. 

The vessel's design maximises cargo space while ensuring sufficient methanol tank capacity set to allow the required navigational distance assuming various routes, at the same time maximising cargo space. 

MOL added the vessel is expected to serve mainly in the transport of biomass fuels from the east coast of North America to Europe and the U.K. and within the Pacific region, as well as grain from the east coast of South America and the U.S. Gulf Coast to Europe and the Far East.

Details on the time-charter contract:

Shipowner: Kambara Kisen wholly owned subsidiary
Charterer: MOL Drybulk Ltd.
Charter period 2027: -

Details on the newbuilding methanol dual fuel bulk carrier:

LOA: About 200 m
Breadth: About 32.25 m
Draft: About 13.80 m
Deadweight: About 65,700 MT
Hold capacity: About 81,500m3
Shipyard: Tsuneishi Shipbuilding Co., Ltd.

Photo credit: Mitsui O.S.K. Lines
Published: 22 September, 2023

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Methanol

Argus Media: Alternatives may drive methanol market growth

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand, according to Argus.

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RESIZED Argus media

The growth of sustainable alternatives to traditional methanol production sources likely will shape the market over the next several years, industry leaders said this week at the Argus Methanol Forum.

20 September 

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand.

"The aim is to be net zero by 2050 but [those solutions are] expensive today and one of the main challenges to build e-methanol or bio-methanol plants is a huge queue for these pieces of equipment that aren't available," Anita Gajadhar, executive director for Swiss-based methanol producer Proman, said.

Bio-based and e-methanol plants of commercial scale, like Proman's natural gas-fed 1.9 million metric tonne/yr M5000 plant in Trinidad and Tobago, are not ready today.

"But that's not to say 10 years from now they won't be there," Gajadhar added.

Smaller projects are popping up. Dutch fuels and gas supplier OCI Global announced plans last week to double the green methanol capacity at its Beaumont, Texas, facility to 400,000 t/yr and will add e-methanol to production for the first time. Production will use feedstocks such as renewable natural gas (RNG), green hydrogen and biogas.

The globally oversupplied methanol market will not get any major supply additions starting in 2024 until 2027. But that oversupply will not last long, Gajadhar said.

Global demand has slowed this year, driven by stagnate economic growth and higher interest rates, according to industry observers.

As much as half of methanol demand is tied to GDP growth, with total methanol demand estimates at 88.9mn t globally in 2023. This is essentially flat from 2022, but up from 88.3m t in 2021 and 87.7mn t in 2020, Dave McCaskill, vice-president of methanol and derivatives for Argus Media's consulting service, said.

Demand is not expected to rebound to 2019 levels of 89.6mn t until 2024 or 2025, he added.

The period of oversupply combined with lackluster demand places methanol in a transition period, Gajadhar said, which opens the door for sustainable feedstock alternatives to shape market growth.

Danish container shipping giant Maersk and French marine logistics company CMA-CGM announced earlier this week a partnership to drive decarbonization in shipping. The partnership seeks to develop fuel and operations standards for bunkering with alternative fuels. The companies will develop net-zero solutions, including new technology and alternative fuels.

Maersk has previously ordered dual-fuel methanol-powered vessels and CMA-CGM LNG-propelled vessels.

The demand for alternative feedstock-derived fuels is there, but the ability to scale-up such production lags. Certified lower-carbon methanol produced using carbon capture and sequestration — also known as blue methanol— can ramp up much more quickly, according to Gajadhar.

By Steven McGinn

Photo credit and source: Argus Media
Published: 22 September, 2023

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Biofuel

Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Firm expanded its biofuel testing this summer in Europe to two additional ships — Royal Caribbean International’s “Symphony of the Seas” and Celebrity Cruises’ “Celebrity Apex”.

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Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Royal Caribbean Group on Tuesday (19 September) said it successfully completed over 12 consecutive weeks of biofuel testing in Europe. 

Royal Caribbean International’s Symphony of the Seas became the first ship in the maritime industry to successfully test and use a biofuel blend in Barcelona to meet part of her fuel needs. 

The company confirmed onboard technical systems met operational standards, without quality or safety concerns, demonstrating the biofuel blend is a reliable “drop in” supply of lower emission energy that ships can use to set sail across Europe and beyond. 

The tests across Europe also provided valuable data to understand the availability and scalability of biofuel in the region, the firm added. 

Jason Liberty, president and CEO, Royal Caribbean Group, said: “This is a pivotal moment for Royal Caribbean Group’s alternative fuel journey.”

“Following our successful trial of biofuels this summer, we are one step closer to bringing our vision for net-zero cruising to life. As we strive to protect and promote the vibrant oceans we sail, we are determined to accelerate innovation and improve how we deliver vacation experiences responsibly.”

President of the Port of Barcelona, Lluís Salvadó, said: “Royal Caribbean’s success is a clear example of how commitment to innovation makes possible the development of solutions to decarbonise the maritime sector.”

“In this case, it involves the cruise sector and focuses on biofuels, an area in which the Port of Barcelona is already working to become an energy hub, producing and supplying zero carbon fuels, such as green hydrogen and ammonia, and of other almost zero-carbon alternative fuels, such as methanol, biofuels or synthetic fuels. Innovation and collaboration between ports and shipping companies is key to accelerate the decarbonisation of maritime transport.”

The company began testing biofuels last year and expanded the trail this summer in Europe to two additional ships — Royal Caribbean International’s Symphony of the Seas and Celebrity Cruises’ Celebrity Apex

The sustainable biofuel blends tested were produced by purifying renewable raw materials like waste oils and fats and combining them with fuel oil to create an alternative fuel that is cleaner and more sustainable. The biofuel blends tested are accredited by International Sustainability and Carbon Certification (ISCC), a globally recognized organization that ensures sustainability of biofuels and verifies reductions of related emissions.

With Symphony of the Seas departing from the Port of Barcelona and Celebrity Apex departing from the Port of Rotterdam, both ships accomplished multiple sailings using biofuel and contributed critical data on the fuel’s capabilities. 

“These results will help accelerate Royal Caribbean Group’s plans to continue testing the use of different types of biofuels on upcoming European sailings this fall. The company is exploring strategic partnerships with suppliers and ports to ensure the availability of biofuel and infrastructures to advance the maritime energy transition,” the firm said. 

Photo credit: Royal Caribbean Group 
Published: 22 September, 2023

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