Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

ARA fuel oil stocks grew with UK imports in March; rough weather disrupts Gibraltar Strait bunkering; availability normal in Durban and Algoa Bay.

Published

2 years ago

April 6, 2023

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:

5 April 2023

ARA fuel oil stocks grew with UK imports in March
Rough weather disrupts Gibraltar Strait bunkering
Availability normal in Durban and Algoa Bay

Northwest Europe

Fixing prompt VLSFO and LSMGO stems can be difficult in Rotterdam and in the wider ARA hub as delivery capacity is still under pressure with several suppliers there, sources say. Recommended lead times for the two grades in Rotterdam are around 3-5 days.

HSFO availability is slightly better than last week in the region, but prompt supply remains subject to enquiries, sources say. Lead times of up to four days are advised for the grade.

In Belgium’s Ghent, prompt supply of LSMGO is said to be tight. Two suppliers have been running low on stocks this week, a source says.

The ARA’s independently held fuel oil stocks averaged 9% higher in March than in February as importers pulled large volumes from the UK and other places to substitute banned Russian product.

The UK emerged as the top source for the ARA’s fuel oil imports in March, going by the Vortexa data. Fuel oil imports from the UK accounted for 13% of the region’s total imports. Other sources of fuel oil imports were Saudi Arabia (12%), Poland (10%), Germany (9%) and Denmark (8%).

The ARA's gasoil inventories averaged nearly 1% lower in March than in February. France became the ARA's top gasoil import source in March and accounted for 27% of its total. Other sources of gasoil imports were the UK (20%), Brazil (8%), Norway (6%) and Spain (5%).

Availability of VLSFO and LSMGO is said to be tight for prompt delivery off Skaw, requiring lead times of up to seven days, a source says. Delivery prospects for HSFO are subject to enquiries, the source adds.

Mediterranean

Rough weather conditions have disrupted bunkering in key Gibraltar Strait ports this week. Strong winds and swells forced a bunker suspension in Gibraltar and at Algeciras’ outer anchorage on Wednesday, according to port agent MH Bland says.

Algeciras’ more sheltered inner anchorage was open for bunker operations on Wednesday “but with minimum inbound movements” of vessels, MH Bland says.

Bunkering was also suspended at anchorage in Ceuta, where four vessels were scheduled to arrive for bunkers on Wednesday.

The weather is forecast to remain bad in Algeciras, Ceuta and Gibraltar until Friday, which could cause bunker delays, depending on the intensity and direction of waves and swells.

Bunker deliveries have been suspended at Las Palmas’ outer anchorage since Tuesday. Deliveries at the port’s more sheltered inner anchorage have also been halted since Tuesday on instruction from the harbour master, MH Bland said.

While bunkering remains halted in Las Palmas, bunker calls could be diverted to the nearby port of Tenerife, where moderate weather conditions are expected this week.

Bunker fuels availability is said to be normal in Gibraltar, Algeciras and Ceuta, but deliveries will remain subject to weather conditions, sources say. Two suppliers can offer deliveries for prompt dates, a source says.

Meanwhile, continued spells of rough weather in Gibraltar Strait ports could divert more vessels to the Portuguese ports of Lisbon and Sines for bunker-only calls. LSMGO and VLSFO availability is normal in Lisbon and Sines, a source says.

Fuel supply is also normal off Malta, but pressure on delivery barge schedules has tightened prompt availability, a source says.

Bunker supply of all grades is normal in the Greek port of Piraeus, a source says.

Africa

Supply of VLSFO and LSMGO is said to be normal in Durban and Algoa Bay. Lead times of up to seven days are advised for deliveries in these two locations, a source says.

However, supply of VLSFO is said to be tight in Cape Town, where securing deliveries for prompt dates can be difficult, a source says.

Bunkering resumed in Algoa Bay on Tuesday after being suspended for a day due to bad weather, according to Rennies Ships Agency. Weather conditions are forecast to remain conducive until Friday morning. However, strong winds and swells are forecast to hit the bay in periods between Friday and Sunday, which could complicate deliveries there. Eight vessels are due to arrive for bunkers in Port Elizabeth and Algoa Bay this week, Rennies says.

By Shilpa Sharma

Photo credit and souce: ENGINE
Published: 6 April, 2023

Biofuel

Argus Media: Bunkering sector needs deeper dive into B24 bio bunker fuel market

‘As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector,’ says Mahua Chakravarty of Argus.

Published

2 days ago

October 4, 2024

Admin

Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Ahead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:

MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?

B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.

It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.

B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).

As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.

MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?

Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.

We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.

This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.

MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?

The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.

As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.

We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.

The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.

Participants are encouraged to register for the free event via the custom link here.

Photo credit: Argus Media
Published: 4 October 2024

Bunker Fuel

Brazil: Raízen launches new bunkering operation in Itaqui

Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.

Published

2 days ago

October 4, 2024

Admin

Brazil: Raízen launches new bunkering operation in Itaqui

Brazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).

The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).

“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.

In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.

Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).

Photo credit: Raízen
Published: 4 October, 2024

Business

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

Oberholtzer, a finance executive with over 25 years of experience, joins Infineum from Shell, where he has held various senior positions including Senior Vice President of Shell Finance for Chemicals and Products.

Published

2 days ago

October 4, 2024

Admin

Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

International fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.

Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.

Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.

During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.

In 2011, he joined Shell’s Mergers and Acquisitions team in the U.S., leading key projects such as the launch of Shell Midstream Partners and the Eagle Ford divestment. He subsequently managed finance teams in Trading & Supply, covering European Gas & Power, Global Crude, and Global Products & Operations.

Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”

Photo credit: Infineum
Published: 4 October, 2024