Bunker Fuel

ENGINE: Europe & Africa Bunker Fuel Availability Outlook

Availability is tight off Skaw; demand improves in Piraeus and Malta; VLSFO supply available for non-prompt dates in Durban.

Published

1 year ago

April 25, 2024

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:

Availability is tight off Skaw
Demand improves in Piraeus and Malta
VLSFO supply available for non-prompt dates in Durban

Northwest Europe

Availability across all grades is normal in the ARA hub. Securing prompt deliveries for HSFO is difficult in the ARA, with traders advising lead times of 4-6 days for the grade. Lead times of 4-5 days are recommended for VLSFO, while LSMGO has shorter lead times of 3-5 days in the ARA.

The ARA’s independently held fuel oil stocks have averaged 5% lower so far this month than across March, according to Insights Global data.

The region has imported 237,000 b/d of fuel oil so far this month, down from 254,000 b/d in March, according to data from cargo tracker Vortexa. The ARA has imported low-sulphur fuel oil (LSFO) and HSFO in a 32/68 ratio so far this month, compared to 45/55 ratio last month.

Mexico has emerged as the ARA’s biggest fuel oil import source so far this month, accounting for 23% of the region’s total imports. Both Lithuania and the UK are holding the second position, with each accounting for 15% of the total ARA’s imports. Other import sources have been the US (9%) and France (7%).

The ARA hub’s independent gasoil inventories — which include diesel and heating oil — have increased by 3% so far this month. Gasoil stocks have risen to their highest levels since June last year.

Availability in the German port of Hamburg is normal, with prompt delivery dates available across all grades. Lead times of 3-5 days are recommended for all fuel grades.

Off Skaw, all three grades remain in tight supply for the second consecutive week. The tightness has shown no signs of abatement. Extended lead times of 10-14 days are recommended for all grades. Bad weather is forecast off Skaw on Sunday and next Monday, which could complicate bunker deliveries.

Mediterranean

Bunker fuel availability is said to be normal in Gibraltar, but securing grades for prompt supply may still be a challenge. Most traders are recommending lead times of 4-6 days for all three grades. Wind gusts between 12-23 knots are forecast to hit Gibraltar from Thursday onwards, which could delay bunker operations until Saturday. Winds at the higher end of that range can pose problems to bunker deliveries by barge.

Slight congestion was reported in Gibraltar on Wednesday, where nine vessels were waiting to receive bunkers, unchanged from Tuesday, according to a source.

Other Mediterranean ports, such as Piraeus, Malta Offshore and Istanbul, have seen improvements in demand this week, following a patch of low demand in recent weeks, according to a trader.

Availability across all grades is good in the Greek port of Piraeus, a trader said. But rough weather is forecast in the port till Friday, which could affect bunkering in the area.

Prompt availability is good off Malta despite bad weather challenges, a trader said. Wind gusts of up to 26 knots are forecast for Thursday and are expected to intensify to 35 knots on Saturday.

The Turkish port of Istanbul has normal availability of all bunker fuel grades, a trader said. Prompt deliveries are available across all grades, but adverse weather conditions until Saturday may impact delivery schedules.

Africa

Availability of VLSFO and LSMGO is good for non-prompt delivery in Durban, with a trader recommending lead times of 7-10 days for both fuel grades. VLSFO availability is also good in Richards Bay, where lead times are similar to those in Durban.

Bad weather conditions are forecast in Durban until Sunday, which could hamper deliveries.

The South African Revenue Service (SARS) has recently requested a second round of public feedback on the proposed amendments to bunkering rules in Algoa Bay. SARS, however, has not provided any clarity on how soon bunkering could resume.

Offshore bunkering has been suspended in Algoa Bay since last September, when SARS detained bunker barges due to import duty disputes. Since then, bunker supply has been limited to in-port deliveries by a supplier in Port Elizabeth, where supply is only available via trucks.

By Manjula Nair

Photo credit and source: ENGINE
Published: 25 April 2024

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COSCO SHIPPING YANGPU was supplied approximately 900 metric tonnes (mt) of methanol marine fuel by Chimbusco at Pier 1 of COSCO Shipping Heavy Industry.

The operation started on 7 May but was postponed due to unfavourable weather from the Jianghuai Cyclone.

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COSCO Shipping said the operation marked an important achievement in green and low-carbon transformation in shipping, from ship construction and ecological layout of the entire green fuel industry chain of the company.

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He said the milestone was achieved by Shell’s LNG bunker barge Haugesund Knutsen supplying the Mein Schiff Relax cruise ship.

“Barcelona, one of Europe and the Mediterranean’s leading cruise ports, is also a key LNG bunkering location for Shell as we help more cruise ships transition to lower-emission fuels,” he said in a social media post.

“A huge thank you to Royal Caribbean Group for their trust, and to Knutsen and Port of Barcelona for their collaboration in making this bunkering safe and efficient.”

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Belmar said LNG is leading the way as the preferred alternative bunker fuel in the cruise industry.

“At Shell, we’re proud to support LNG fuelling needs at 26 locations worldwide, including major cruise ports like Bahamas, Barcelona, Canaveral, Everglades, Jamaica, Miami, Singapore, Southampton, and Tenerife,” he added.

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IGU report: Global LNG bunkering fleet grows to 56 operational vessels by 2024

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IGU report: Global LNG bunkering fleet grows to 56 operational vessels by 2024

The global operational LNG bunkering and bunkering-capable small-scale vessel fleet reached 56 units at the end of December 2024 with further support from expanding infrastructure and regulatory drivers such as the IMO’s ban of heavy fuel oil in Arctic shipping and the EU’s FuelEU Maritime regulation.

This was nine more vessels than in 2023, with a total added capacity of 82,900 cubic metres (m3).

This was one of the major highlights in the 2025 World LNG report by the International Gas Union (ICU), which was launched at the 29th World Gas Conference (WGC2025) in Beijing on Thursday (22 May).

IGU report: Global LNG bunkering fleet grows to 56 operational vessels by 2024

The LNG bunkering fleet is concentrated in Europe with the highest capacity of operational bunkering vessels. This is followed by Asia/Asia Pacific and then North America, both of which have seen rapid expansions in the past five years.

As of the end of 2024, Europe has the highest bunkering capacity, with a total of 190,757 cm across 25 vessels currently in operation within the region.

Asia/Asia Pacific has the second-highest bunkering capacity, with a total of 179,700 m3 across 17 vessels in operation. From that, China currently has five operational LNG bunkering vessels while South Korea currently provides STS bunkering services with four bunkering vessels. Singapore currently has three bunkering vessels in operation.

North America continued its progress toward becoming a significant region in the LNG bunkering market in 2024, reaching a total capacity of 86,400 m3 across 10 operational vessels by year-end.

The report noted: “2024 was a significant year for LNG bunkering. Bunker users were quick to capture the reductions in both fuel costs and carbon emissions from using LNG, taking advantage of lower LNG prices relative to other marine fuels in 2024. Lower prices and an emerging LNG-fuelled fleet were catalysts in the large uptake in LNG bunker volumes.”

The Port of Singapore, which is the largest bunkering port in the world, recorded 463,900 tonnes of LNG bunkered in 2024, almost four times the 110,900 tonnes in 2023. The Port of Rotterdam, the second-largest bunkering port in the world, also recorded a 52% increase in bunkered LNG, from 620,000 cm in 2023 to 941,366 cm in 2024.”

IGU also said the newcomer in STS LNG bunkering is the Middle East with the LNG bunkering vessel Green Zeebrugge.

“The ship moved at the end of 2024 to Dubai and has performed the first ever LNG bunkering in the Middle East. This area is identified as a potential new LNG bunkering hub with Oman, the UAE, and Qatar as the main bunkering locations.”

Note: The ‘2025 World LNG Report’ can be downloaded here.

Photo credit: International Gas Union
Published: 23 May, 2025