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ENGINE: Europe & Africa Bunker Fuel Availability Outlook

HSFO supply tight in ARA and Gibraltar Strait; low sulphur supply normal in Ceuta, Las Palmas; bad weather disrupts bunkering in Algoa Bay.

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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:

21 June 2023 

  • HSFO supply tight in ARA and Gibraltar Strait
  • Low sulphur supply normal in Ceuta, Las Palmas
  • Bad weather disrupts bunkering in Algoa Bay

 

Northwest Europe

Securing prompt delivery of HSFO grade can be difficult in Rotterdam and in the wider ARA hub. Tight availability of the product has pushed Rotterdam’s HSFO price higher in recent weeks. The grade's price has shot up by around $60/mt since 1 June, and flipped to a rare premium over Gibraltar.

Lead times of minimum 5-7 days are now recommended for HSFO bunker deliveries in the ARA, a source says. Suppliers are not offering stems for prompt dates there as several are running low on stocks, the source adds.

Multiple factors have contributed to the recent HSFO tightness in the ARA, according to various sources. A lack of access to banned Russian fuel oil imports, and crude oil to feed refineries, has rendered the ARA less resilient to supply shocks.

Since the EU banned crude imports from Russia, EU refineries have been shifting to sweet and sour grades from the US and other alternative sources. The recent Kurdish crude export suspension has prevented around 450,000 b/d of sour crude from reaching refineries in the EU and other destinations.

Shell's 404,000 b/d Pernis refinery - Europe's biggest - was offline for a three-month maintenance that was scheduled to end by late May. But a leak forced Shell to shut down two crude distillation units (CDUs) last week, Argus Media reported. Shell has been working to restart one of the CDUs that is "operating as normal" in recent days.

A recent draw of the ARA’s fuel oil stocks has added to the supply pressure in the bunkering hub. The ARA’s independently held fuel oil stocks averaged 11% lower in the first three weeks of this month, and dropped to their lowest monthly average since March, according to Insights Global data.

VLSFO requires around 5-6 days for full coverage from suppliers in the ARA.

Availability of LSMGO is better than for HSFO and VLSFO, with lead times of 3-4 days advised.

Supply of VLSFO and LSMGO is normal for delivery off Skaw, while HSFO is said to be relatively tighter. Lead times of up to seven days are advised for VLSFO and LSMGO. HSFO requires up to 10 days for delivery there, a source says.

Bunker fuel availability is normal in the German ports of Hamburg and Bremerhaven, with recommended lead times of five days. Meanwhile, bunker demand is said to be weak in both ports, a source says.

 

Mediterranean

VLSFO and LSMGO availability remains normal in Gibraltar and Algeciras, requiring lead times of around 3-4 days. However, securing very prompt delivery of HSFO can be difficult there. Lead times of 5-7 days are generally recommended to ensure full coverage from all suppliers in the region.

Minimum congestion was reported in Gibraltar, Algeciras, Ceuta and Malta on Wednesday, according to port agent MH Bland. Strong winds gusts of up to 26 knots are forecast to hit Gibraltar Bay in periods between Friday and Saturday, which could cause some delays.

Bunker operations are running normally in Las Palmas. Bunker fuel supply is normal there and in Ceuta. Lead times of up to five days are recommended for VLSFO and LSMGO deliveries in Ceuta.

Bunker demand has been weak in Malta so far this week, while availability is normal for all the main fuel grades, a source says.

In the Greek port of Piraeus, supply of HSFO and LSMGO is said to be normal for prompt dates, while VLSFO is currently tight. VLSFO supply is likely to improve by the end of this week, when replenishment stocks are expected to arrive, a source says.

 

Africa

Bunkering has been suspended in Algoa Bay since Monday due to bad weather conditions. Two vessels were waiting to receive bunkers at anchorage on Wednesday morning, according to Rennies Ships Agency. 20 vessels are scheduled to arrive for bunkers in Algoa Bay and Port Elizabeth in the remaining days of the week, it says. Heavy swells of up to 3.5 metres are forecast to continue until Friday morning, which could cause further delays and disruptions.

Meanwhile, bunker fuel supply is said to be normal in Durban and other South African ports. Lead times of up to seven days are advised for VLSFO and LSMGO deliveries in Durban, a source says.

Bunkering is progressing normally in Mozambique’s Nacala and Maputo ports amid conducive weather conditions, a source says. Bunker supply is said to be normal in both locations. A total of seven vessels are scheduled to arrive for bunkers across the ports this week, the source adds.

By Shilpa Sharma

 

Photo credit and source: ENGINE
Published: 22 June, 2023

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Business

Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Sanket joined Sing Fuels in 2016 as a Credit Manager and has ‘immersed himself’ in all departments; will drive company to expand into areas like sustainability and biofuels.

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Singapore: Sing Fuels appoints Sanket Naik as Managing Director

Singapore-based provider of marine fuel solutions Sing Fuels on Saturday (7 December) said Sanket Naik, was recently promoted to Managing Director of Sing Fuels. 

The firm said Sanket joined Sing Fuels in 2016 as a Credit Manager. 

“He immersed himself across all departments, ranging from investment to business development, gaining a 360-degree understanding of the business and serving as a key driver of growth and success at Sing Fuels,” Sing Fuels said in a social media post. 

“As Managing Director, Sanket is poised to drive Sing Fuels 3.0, expanding into areas like sustainability and biofuels, ensuring we stay at the forefront of industry innovation.”

 

Photo credit: Sing Fuels
Published: 9 December, 2024

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Alternative Fuels

DNV: Use of ammonia as a bunker fuel among highlights in IMO MSC 109

Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted and interim guidelines for the general use of ammonia as fuel were approved during session.

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RESIZED CHUTTERSNAP on Unsplash

Classification society DNV on Saturday (7 December) shared a statutory news article that provides a summary of the 109th session of the International Maritime Organization’s (IMO) Maritime Safety Committee (MSC 109) including adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel and approved draft interim guidelines for ammonia as a marine fuel.

The following is an excerpt from the news update relating to bunker fuels:

The 109th session of the IMO’s Maritime Safety Committee (MSC 109) was held from 2 to 6 December 2024. Amendments to the IGC Code to enable the use of ammonia cargo as fuel were adopted, and interim guidelines for the general use of ammonia as fuel were approved. The IGF Code was amended to improve the safety of ships using natural gas as fuel. MSC 109 further approved draft SOLAS amendments to enhance the safety of pilot transfer arrangements and progress was made on the new safety code for Maritime Autonomous Surface Ships.

Meeting highlights

  • Adopted amendments to the IGC Code to enable the use of ammonia cargo as fuel
  • Adopted amendments to the IGF Code for ships using natural gas as fuel
  • Approved draft interim guidelines for ammonia as fuel
  • Approved draft amendments to SOLAS Regulation V/23 and the related performance standards to improve the safety of pilot transfer arrangements
  • Advanced the non-mandatory Code on Maritime Autono- mous Surface Ships (MASS)

Amendments to mandatory instruments 

Ammonia cargo as fuel (IGC Code) MSC 109 adopted amendments to Paragraph 16.9.2 of the International Code for the Construction and Equipment of Ships Carrying Liquefied Gases in Bulk (IGC Code) to enable the use of ammonia as fuel on ammonia carriers.

An MSC circular to encourage the voluntary early implementation of the amendments to Chapter 16 was approved. 

The amendments will enter into force on 1 July 2026.

Safety of ships using natural gas as fuel (IGF Code)

MSC 109 adopted amendments to the International Code of Safety for Ships Using Gases or Other Low-flashpoint Fuels (IGF Code), based on experience with the code since its entry into force in 2017.

The amendments include:

  • Clarified application provisions
  • Alignment with the IGC Code on suction wells for fuel tanks extending below the lowermost boundary of the tank
  • Alignment with the IGC Code on discharge from pressure relief valves to discharge to tanks under certain conditions
  • Clarified requirements to fire insulation for deck structures in relation to fuel tanks on open deck
  • Clarified requirements for hazardous ducts through non-hazardous spaces and vice versa
  • Updated requirements for the hazardous zone radius for fuel tank vent mast outlets, increasing to 6 metres for zone 1 and 4 metres for zone 2

The amendments will enter into force on 1 January 2028.

Goal-based new ship construction standards

Goal-based standards (GBS) for the new construction of bulk carriers and oil tankers are, conceptually, the IMO’s rules for class rules. Under the GBS, IMO auditors use guidelines to verify the construction rules for bulk carriers and oil tankers of class societies acting as Recognized Organizations (Resolution MSC.454(100)).

Initial GBS verification of Biro Klasifikasi Indonesia (BKI) BKI has requested GBS verification of their ship construction rules for bulk carries and oil tankers. MSC 109 agreed that the BKI rules comply with the GBS, provided non-conformities and observations are rectified and verified in a new audit.

North Atlantic wave data (IACS Recommendation No. 34, Revision 2) MSC 109 noted that IACS is currently undertaking a review of its Common Structural Rules (CSR) for bulk carriers and oil

tankers to reflect advances in data, materials, technologies and calculation methodologies. The CSR are implemented in the individual class rules of the IACS members, which are subject to compliance with the GBS.

MSC 109 further noted that IACS has now issued a revision of the North Atlantic wave data to ensure more scientific data as a basis for the rule formulas in the CSR. The new scatter diagram in Revision 2 of IACS Recommendation No. 34 shows the probability of occurrence of different sea states and is based on wave data from advanced hindcast wave models combined with ships’ AIS data for all SOLAS vessels in the period from 2013 to 2020.

MSC 109 agreed that an observation from the initial CSR audit in 2015, that the scatter diagram in Revision 1 of IACS Recommendation No. 34 was based on past statistics, was now considered addressed.

MSC 109 further invited IACS to provide more information about the assumptions, modelling and technical background for Revision 2 of IACS Recommendation No. 34, and agreed that the GBS audit of the revision to follow should be carried out in conjunction with the consequential rule changes in the CSR.

New technologies and alternative fuels 

Identification of gaps in current IMO instruments MSC 109 continued its consideration of potential alternative fuels and new technologies to support the reduction of GHG emissions from ships from a safety perspective. The intention is to identify safety obstacles, barriers and gaps in the current IMO instruments that may impede the use of the various alter- native fuels and new technologies.

MSC 109 agreed to add “swappable traction lithium-ion battery containers” to the list of alternative fuels and new technologies. The list already includes fuels and technologies such as ammonia, hydrogen, fuel cell power installations, nuclear power, solar power, wind power, lithium-ion batteries and supercapacitor energy storage technology.

Recommendations to address each of the identified barriers and gaps in the IMO regulatory framework will be considered in a Correspondence Group until MSC 110 (June 2025). Application of the IGF Code

MSC 109 agreed on draft amendments to SOLAS to clarify that the IGF Code applies to ships using gaseous fuels, whether they are low-flashpoint or not. The term “gaseous fuels” was added to the definitions in SOLAS Regulation II-1/2 and to the application provisions of SOLAS Regulations II-1/56 and 57.

The draft amendments are expected to enter into force on 1 January 2027, subject to adoption by MSC 110 (June 2025).

Carriage of cargoes and containers

Ammonia as fuel

MSC 109 approved draft interim guidelines for the safety of ships using ammonia as fuel.

Ships carrying liquefied gases in bulk (IGC Code)

MSC approved draft amendments to the IGC Code to incorporate the large number of Unified Interpretations developed since the latest major review of the code, which entered into force in 2016. The primary objective of the draft amendments is to remove ambiguity and promote the consistent implementation of the IGC Code requirements.

 

Photo credit: CHUTTERSNAP on Unsplash
Published: 9 December, 2024

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Methanol

Methanol Institute welcomes HIF Global as its newest member

HIF Global will collaborate with industry leaders, policymakers, and stakeholders to promote the adoption of methanol-based solutions and e-Fuels in the transition to a low-carbon future.

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HIF Global joins Methanol Institute as its newest member

The Methanol Institute (MI) on Thursday (5 December) welcomed HIF Global as its newest member. 

HIF Global is an innovator in the production of e-Fuels, offering sustainable alternatives to fossil fuels that are compatible with today’s transportation and industrial infrastructure.

As part of MI’s membership, HIF Global will collaborate with other industry leaders, policymakers, and stakeholders to promote the adoption of methanol-based solutions and e-Fuels in the transition to a low-carbon future.

MI said HIF Global’s pioneering approach combines renewable energy with technology to produce green hydrogen through electrolysis and capture CO₂ from atmospheric, biogenic, and industrial sources. 

These components are then synthesised to create e-Fuels, including e-Methanol for ships, e-SAF for planes, and e-Gasoline for cars, which are crucial to decarbonizing global transportation and reducing greenhouse gas emissions.

At the heart of HIF Global’s operations is HIF Haru Oni in Magallanes, Chile, the world’s first operating e-Fuels facility, which was inaugurated in December 2022. The company is scaling its production globally, with projects underway in the United States, Chile, Australia, Uruguay and Brazil. Its most advanced commercial-scale project, the HIF Matagorda e-Fuels Facility in Texas, is designed to produce 1.4 million metric tons (466 million gallons/1.76 billing liters) of e-Methanol annually once fully operational.

“We are thrilled to welcome HIF Global to the Methanol Institute,” said CEO of MI Greg Dolan. 

“HIF Global’s work in e-Fuels, particularly e-Methanol, is a crucial contribution to the energy transition. Their innovative approach underscores methanol’s potential as a key solution for decarbonizing transportation and industry, and we look forward to collaborating to accelerate this transformation.”

Cesar Norton, President and CEO of HIF Global, said: “e-Fuels are essential to achieving a sustainable future. We applaud the Methanol Institute for their leadership in methanol markets and join them to drive forward the vision to expand e-Methanol based e-Fuels that support our global circular economy.”

“Together we will advance the energy transition by pioneering e-Methanol solutions that utilize existing infrastructure to inspire innovation and reduce costs.”

 

Photo credit: Methanol Institute
Published: 9 December, 2024

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