Business

ENGINE: Pertamina revamps Indonesia bunker strategy to attract demand with VLSFO pricing

Pertamina plans to reduce its VLSFO offer price for ocean-going vessels by about 30%; devised a synergy programme between subsidiaries Pertamina Patra Niaga and Kilang Pertamina International.

Published

2 years ago

May 15, 2023

Admin

Indonesia’s-state-owned energy firm Pertamina plans to reduce its VLSFO offer price for ocean-going vessels by about 30%.

Pertamina has devised a synergy programme between its two subsidiaries Pertamina Patra Niaga (commercial and trading arm) and Kilang Pertamina International (refining arm). Bunker sales to ocean-going vessels will be marketed by both firms, Pertamina Patra Niaga’s company representative tells ENGINE.

With the new programme, the company’s VLSFO sales to ocean-going vessels will be exempted from value-added tax (VAT). This means the 11% VAT, which was previously applicable, will be waived off.

In the initial stage, this exemption will only be applicable to VLSFO sales in the Indonesian ports of Jakarta, Surabaya and Balikpapan. The company will subsequently extend this strategy to cover LSMGO sales, and also expand it to cover other Indonesian ports down the line, the company representative said.

The new strategy is somewhat similar to the Chinese bunker model. In February 2020, the Chinese government waived its 13% VAT on fuel oil sold to Chinese and foreign vessels involved in international trade, in multiple coastal ports. This included the bunkering hub of Zhoushan. The move was aimed at making Zhoushan’s bunker fuel prices, and particularly VLSFO, more competitive against ports like Singapore.

Besides waiving VAT, Pertamina has revised its bunker pricing mechanism by shifting from a “cost-based pricing” model to a more market-linked pricing system, the company’s representative says.

Its current cost-based pricing mechanism emphasises the cost of production at the refinery level and profit margins, while a market-linked pricing system would factor in more wider supply-demand fundamentals beyond the company’s production and operations.

Pertamina looks to benefit from its new pricing strategy by boosting bunker sales to ocean-going vessels, which has been lacking in the past due to significant price gaps between Indonesia and other regional bunker hubs such as Singapore, Pertamina said.

Jakarta’s VLSFO premium over Singapore’s currently stands at a whooping $280/mt.

By Nithin Chandran

Source: ENGINE
Photo credit: ENGINE / Pertamina
Published: 15 May, 2023

Biofuel

NYK to launch Japan’s first antioxidant for biodiesel bunker fuel in August

When added to biofuel, BioxiGuard slows progression of oxidative degradation and helps deter issues such as metal corrosion, strainer blockage, and cleaning-system fouling often triggered by oxidised fuel.

Published

16 hours ago

May 22, 2025

Admin

Japan’s first antioxidant by NYK for biodiesel bunker fuel set to release in August

Nippon Yuka Kogyo (Nippon Yuka), an NYK Group company specialising in chemical R&D as well as the manufacture and sale of chemical products, on Wednesday (21 May) announced the upcoming release of BioxiGuard, the Japan’s first antioxidant specially developed for marine biodiesel, from 10 August.

NYK said compared with conventional petroleum-based fuels, biofuel contains a higher proportion of unsaturated fatty acids, making it more susceptible to oxidative degradation. Once oxidised, the biofuel can produce acidic substances and sludge, adversely affecting vessel fuel efficiency by reducing the fuel’s calorific value.

Developed by Nippon Yuka based on property analyses of the biofuel used in NYK-operated vessels, BioxiGuard is specifically formulated to enhance the oxidation stability of biodiesel. When added to biofuel, BioxiGuard slows the progression of oxidative degradation and helps deter issues such as metal corrosion, strainer blockage, and cleaning-system fouling often triggered by oxidised fuel.

According to laboratory tests conducted by Nippon Yuka researchers, the addition of BioxiGuard at a concentration of 1 part per 500 resulted in an approximate 50% reduction in the rate of biofuel degradation compared to untreated biofuel.

This significant improvement underscores the potential for vessel operators to not only extend the useful life of biofuel on board but also maintain more stable and cost-effective vessel operations.

Photo credit: NYK
Published: 22 May, 2025

Wind-assisted

Dealfeng to equip Singapore-based Hung Ze’s chemical tankers with rotor sails

Project marks Chinese firm Dealfeng’s first overseas commercial contract for its wind-assisted propulsion technology which entails equipping a new series of 14,000 DWT chemical tankers with Dealfeng Rotor Sails.

Published

16 hours ago

May 22, 2025

Admin

Singapore-based Hung Ze chemical tankers to be equipped with Dealfeng rotor sails

Dealfeng, a Chinese provider of wind-assisted propulsion systems, on Tuesday (20 May) said it has assigned a cooperation agreement with Singapore-based shipowner Hung Ze Shipping.

The partnership will equip a new series of 14,000 DWT chemical tankers with Dealfeng® Rotor Sails.

Each vessel will feature a 5m x 24m Dealfeng Rotor Sail installed on its forecastle deck. Collaborating with maritime software leader NAPA, the project will utilise route optimisation systems to maximise the efficiency of wind-assisted voyages, further enhancing fuel savings and emissions reduction while improving overall energy performance.

“The first vessel in the series is scheduled for delivery with the rotor sail system in the fourth quarter of 2025. Preliminary calculations indicate that the technology will achieve approximately 8% fuel savings on the vessel’s trading routes,” the company said in a social media post.

The project marked Dealfeng’s first overseas commercial contract for its wind-assisted propulsion technology.

Dealfeng, a clean energy technology company specialising in the R&D, manufacturing, and EPC services of shipborne energy-saving systems, has long focused on developing Wind Assisted Propulsion Systems (WAPS). Its core product, the Rotor Sail, harnesses wind energy via the Magnus effect to provide auxiliary propulsion for vessels.

Tailored to different ship types, the system offers fuel and carbon emission reductions of 5%–25%, with even greater efficiency under favorable wind conditions. Dealfeng’s Rotor Sail technology has obtained certifications from multiple classification societies and has been successfully deployed across numerous vessels, accumulating years of operational experience that validate its safety, reliability, and effectiveness.

Hung Ze operates a diverse fleet ranging from 5,000 DWT vessels to MR product tankers.

Photo credit: Dealfeng
Published: 22 May, 2025

Newbuilding

Höegh Autoliners latest LNG dual-fuel PCTC en route to Shanghai for bunkering

The 9,100 CEU “Höegh Sunrise”, currently sailing the seas, is on its way to Shanghai for bunkering before sailing to Japan and then towards Europe.

Published

16 hours ago

May 22, 2025

Admin

Höegh Autoliners latest LNG dual-fuel PCTC en route to Shanghai for bunkering

Höegh Autoliners on Tuesday (20 May) said its latest liquefied natural gas (LNG) dual-fuel pure car and truck carrier has departed China Merchants Heavy Industry’s yard, ready to commence its commercial operations.

The 9,100 CEU Höegh Sunrise, currently sailing the seas, is on its way to Shanghai for bunkering before sailing to Japan and then towards Europe.

The PCTC is the fifth in a series of 12 Aurora Class vessels built by the shipyard in China. The first eight Auroras are or will be equipped with engines primed to run on LNG and low-sulphur oil.

These vessels can be converted to run on ammonia later. By 2027, Höegh Autoliners said the four last vessels of the series will be able to run net zero on ammonia directly from the yard when delivered.

Manifold Times previously reported the naming ceremony of Höegh Autoliner’s fourth Aurora Class newbuild, Höegh Sunlight, at Taicang Haitong Auto Terminal.