Business

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

HSFO supply tight across major bunker ports; VLSFO and LSMGO steady in most Mediterranean ports; VLSFO and HSFO availability tight in Nacala.

Published

2 years ago

July 20, 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:

19 July 2023

HSFO supply tight across major bunker ports
VLSFO and LSMGO steady in most Mediterranean ports
VLSFO and HSFO availability tight in Nacala

Northwest Europe

Prompt supply of HSFO has been tight in Rotterdam and in the wider ARA hub. Securing large stem sizes of the grade can be even more challenging in the bunkering hub. Most suppliers in Rotterdam are hesitant to offer stem sizes of more than 3,000 mt of HSFO due to limited product availability.

Tight availability of HSFO in Rotterdam has contributed to narrow the port’s Hi5 spread to just $60/mt now, almost half of what it was in April. Recommended lead times for HSFO and VLSFO deliveries remain unchanged from last week at 5-7 days, a source says. Bunker buyers looking to lift HSFO stems in the ARA should ideally consider a longer lead time, another source says.

Meanwhile, LSMGO is readily available in Rotterdam and in the wider ARA hub, with lead times of 2-3 days recommended for the grade.

HSFO supply has been tight in the region despite an increase in its fuel oil stocks. The ARA's independent fuel oil stocks have averaged 6% higher so far this month than across June. The inventories have grown to their bulkiest monthly level since June 2021, according to Insights Global data.

On the other hand, the region’s independent gasoil inventories - which include diesel and heating oil – have declined by 11% so far this month and to their lowest monthly level since last December.

VLSFO and LSMGO supply remains normal for delivery off Skaw, a source says. HSFO supply is relatively tighter there. Recommended lead times for all grades remain unchanged at 7-10 days. Barge availability is said to be normal off Skaw, the source adds.

LSMGO availability is normal in the Norwegian ports of Bergen and Mongstad, a trader says.

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

Mediterranean

HSFO availability remains tight in Gibraltar Strait ports. Lead times of up to seven days are recommended to ensure full coverage from suppliers in the region. VLSFO and LSMGO availability is relatively better across Gibraltar, Algeciras and Ceuta, with lead times of 3-5 days recommended.

Minimum congestion was reported in Gibraltar, Algeciras and Ceuta on Wednesday, according to port agent MH Bland. One supplier in Gibraltar and three in Algeciras were behind schedule.

VLSFO and LSMGO availability is also normal in Las Palmas, with recommended lead times of 2-4 days, a source says. Meanwhile, HSFO availability has been tight in Las Palmas amid limited product availability. One supplier expects to receive replenishment cargo on 21 July, which could ease some supply pressure there, a source says.

VLSFO and LSMGO availability is said to be normal in the Portuguese ports of Lisbon and Sines. Bunker fuel availability also remains steady for prompt supply off Malta and in the Greek port of Piraeus.

Africa

VLSFO and LSMGO availability remains 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. Deliveries could resume from Thursday afternoon, when improved weather conditions are forecast.

VLSFO supply is tight in Mozambique's Nacala port, with limited product availability until 28 July, a source says. HSFO availability is even tighter there, with delivery dates stretching to mid-August. Meanwhile, LSMGO is readily available in the port.

In Maputo, VLSFO and LSMGO availability is normal for prompt dates.

By Nithin Chandran

Photo credit and source: ENGINE
Published: 20 July, 2023

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Several notices were published on the Government Gazette on Tuesday (22 April) regarding the annual general meetings of the companies and creditors to be held electronically on 22 April for Xihe Holdings subsidiaries.

The subsidiaries are Dong Sheng Tankers Pte Ltd, Da Xin Tankers Pte Ltd, Dong Ya Tankers Pte Ltd, and Hua Zhong Shipping Pte Ltd.

Annual general meeting for Dong Sheng Tankers are to be held on 8 May at the following times:

For the company: 2pm

Annual general meetings for Da Xin Tankers are to be held on 7 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Dong Ya Tankers are to be held on 8 May at the following times:

For the company: 10am
For the creditors: 11am

Annual general meetings for Hua Zhong Shipping are to be held on 7 May at the following times:

For the company: 2pm
For the creditors: 3pm

The agenda for all the meetings are:

To receive an update on the liquidation.
To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up

Manifold Times previously reported on the winding up of Da Xin Tankers, Dong Ya Tankers and Hua Zhong Shipping Pte Ltd and the appointment of the joint and several liquidators of the firms.

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LNG Bunkering

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

Company says it is the first gas utility company in Japan to offer LNG bunker fuel at its terminal to vessels and is also exploring the potential of replacing LNG with e-methane as a marine fuel.

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Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

Osaka Gas on Monday (21 April) said it has launched its shore-to-ship LNG bunkering service, becoming the first gas utility company in Japan to offer liquefied natural gas (LNG) at its terminal to vessels.

The first delivery took place today at Osaka Gas’ Senboku LNG Terminal in Takaishi City, Osaka Prefecture, where LNG was supplied to Verde Heraldo, a bulker operated by Mitsui OSK Lines (MOL).

Manifold Times previously reported that the bulker will sail under long-term transport contracts to supply raw materials for JFE Steel Corporation's mills.

With the launch of the shore-to-ship service, in addition to its existing truck-to-ship LNG bunkering service—operational since 2019—Osaka Gas enhances its LNG fuel delivery capabilities to address the current scarcity of facilities in Japan that can supply LNG to vessels.

The company’s future plans include the introduction of a ship-to-ship LNG bunkering service utilising a dedicated LNG bunkering vessel, scheduled to commence in fiscal 2026.

These supply methods aim to provide a stable and flexible LNG fuel supply to an increasing number of LNG-fuelled vessels as the maritime industry transitions away from heavy fuel oil.

This growth in LNG-fuelled vessels is driven by global decarbonisation trends and the International Maritime Organization’s target to achieve net zero greenhouse gas emissions by 2050. Through its LNG bunkering services, Osaka Gas is well-positioned to contribute to maritime industry sustainability.

Osaka Gas launches shore-to-ship LNG bunkering service at its terminal

In addition to expanding LNG fuel supply to vessels, Osaka Gas is exploring the potential of replacing LNG with e-methane as a marine fuel.

Photo credit: Osaka Gas
Published: 23 April, 2025

Alternative Fuels

Japan: J-ENG begins co-firing of first full-scale marine engine with ammonia

Company says the first Japanese-developed and manufactured commercial full-scale, low-speed, ammonia-fuelled two-stroke engine has started co-firing operation with ammonia.

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Japan: J-ENG begins co-firing of first full-scale marine engine with ammonia

Japan Engine Corporation (J-ENG) on Monday (21 April) said the first Japanese-developed and manufactured commercial full-scale, low-speed, ammonia-fuelled two-stroke engine has started co-firing operation with ammonia, which will be installed in a vessel.

J-ENG is developing the engine under the “Green Innovation Fund Project: Next-generation Ship Development” of the New Energy and Industrial Technology Development Organization (NEDO).

Since May 2023, when J-ENG started the world's first ammonia co-firing operation of a large, low-speed, two-stroke engine in a test engine, J-ENG has obtained many results and knowledge, including stable operation at high ammonia co-firing rates and safe handling of ammonia, through various test operations over a period of about a year and a half.

J-ENG will conduct verification operations on the full-scale engine and plans to ship the engine in October of this year. The engine will be installed on an Ammonia-fuelled Medium Gas Carrier (AFMGC) and then demonstration operations of the vessel will be carried out then.

In order to accommodate a wide variety of ammonia-fueled vessels, J-ENG is also concurrently developing an ammonia-fueled engine with a cylinder bore of 60cm, following the first engine with a 50cm cylinder bore mentioned above, for several promising follow-on projects.

Furthermore, after achieving the development and social implementation of these engines, the company has decided to construct a new plant with the support of a subsidy project by the Ministry of the Environment and the Ministry of Land, Infrastructure, Transport and Tourism through the GX Economic Transition Bonds.

The new plant, which is scheduled for completion in 2028, will expand the production of ammonia fuel engines (in the product mix with fuel oil engines) and promote the spread and expansion of zero-emission ships.

“J-ENG, as a first mover of next-generation fuel engines, will contribute to the development of the Japanese shipping and shipbuilding industries through the early launch and expansion of these engines, and at the same time, contribute to the reduction of greenhouse gases (GHG) in international shipping and the achievement of carbon neutrality by 2050,” the company said on its website.

Photo credit: Japan Engine Corporation
Published: 23 April, 2025