Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

HSFO tight in ARA and Gibraltar Strait ports; VLSFO supply improves in Ceuta; bad weather disrupts bunkering in Algoa Bay.

Published

1 year ago

June 15, 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:

14 June, 2023

HSFO tight in ARA and Gibraltar Strait ports
VLSFO supply improves in Ceuta
Bad weather disrupts bunkering in Algoa Bay

Northwest Europe

LSMGO availability has improved in ARA ports this week, with lead times of 3-4 days recommended to ensure full coverage from suppliers, a source says. VLSFO lead times range between 4-7 days.

Securing HSFO for very prompt dates (0-2 days), meanwhile, can be difficult in ARA ports. Availability has been tight for prompt delivery in the ARA in recent weeks, a trader says. Recommended lead times for HSFO are about 5-7 days.

Multiple factors such as the Russian import ban, a sweetening of EU refineries' crude slates, and the Kurdish export suspension have contributed to tighten of HSFO supply in the ARA hub, a source says.

According to cargo tracker Vortexa, Europe’s crude imports were predominately sour before EU sanctions on seaborne Russian crude imports in December 2022, and refined Russian oil products in February 2023. Russian Urals, a medium-sour crude, accounted for almost 17% of Europe’s seaborne imports in the year before the Russia invaded Ukraine in February 2022.

Since the EU banned crude imports from Russia, these slates shifted to sweet and sour grades from alternative countries. About 38% of Europe’s crude imports in May were made up of light-sweet grades, followed by medium-sour (25%) and light-sour (15%), Vortexa data shows. The majority of these imports arrived from the US.

After growing for three consecutive months, the ARA's fuel oil stocks have come down sharply amid lower import flows so far this month, according to Insights Global data. Most of the fuel oil cargoes have arrived from Mexico, France and the UK this month, Vortexa data shows.

VLSFO and LSMGO availability is normal for delivery off Skaw. On the other hand, HSFO supply is relatively tighter, this is because of limited supply of the grade in the area, a source says. Recommended lead times for all grades remain unchanged at 7-10 days.

Bunker fuel availability is normal in the German ports of Hamburg and Bremerhaven, with recommended lead times of five days.

Mediterranean

VLSFO and LSMGO availability remains in normal in Gibraltar and Algeciras. Lead times of 3-5 days are generally recommended in both locations.

VLSFO supply has improved in Ceuta with the arrival of a replenishment cargo, a source says. Supply was “super tight” last week as a supplier was running low on stocks. A lead time of up to five days is recommended for VLSFO and LSMGO deliveries there.

Prompt HSFO supply is tighter than for low sulphur grades across Gibraltar Strait ports, with lead times of 5-7 days recommended for HSFO now. Some argue that availability of the grade has tightened as a refinery in Gibraltar is operating at reduced rates.

Minimum congestion was reported in Gibraltar, Algeciras and Ceuta on Wednesday, according to port agent MH Bland. Strong wind gusts of up to 23 knots are forecast to hit Gibraltar Bay next Monday, and could delay operations until Tuesday.

Availability is normal in Portuguese ports of Lisbon and Sines, a supplier says. Lead times of up to seven days are recommended for VLSFO and LSMGO supply.

Bunker fuel availability across all grades is tight for very prompt delivery dates off Malta. Some suppliers require at least three days of lead times for VLSFO and LSMGO deliveries there, a source says.

HSFO, VLSFO and LSMGO availability is normal in the Greek port of Piraeus.

Africa

VLSFO and LSMGO availability is normal in the South African ports of Durban and Cape Town, and at the Algoa Bay anchorage by Port Elizabeth, where lead times of up to seven days are recommended, a source says.

Bunkering was fully suspended in Algoa Bay on Wednesday due to rough weather conditions, according to Rennies Ships Agency. Strong winds and heavy swells are forecast to continue until Thursday, which could cause further delays and disruptions.

By Nithin Chandran

Photo credit and source: ENGINE
Published: 15 June, 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

18 hours 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

18 hours 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

18 hours 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