Connect with us

Business

ENGINE: Wide Hi5 spreads spur Clean Marine to gear up for flurry of scrubber orders

Shipowners have recently been eager to book scrubber retrofits to take advantage of wide Hi5 spreads in the coming months and years, according to ENGINE.

Admin

Published

on

184 1

The following is an article written by Erik Hoffman from online marine fuel procurement platform ENGINE on Clean Marine increasing the capacity of its scrubber installations to meet demand with evidence from the past six months of Hi5 (low sulphur fuel oil vs high sulphur fuel oil) spreads and future projections of these staying wide which could trigger another flurry of scrubber orders:

The past few months have been a wild rollercoaster for energy prices and the spreads between them.

Hi5 spreads have blown wide open for sustained periods. Who would have thought that the IMO 2020 peak spreads could be surpassed? Well last summer, Hi5 spreads in Singapore and other major bunker ports did just that. They topped previously unthinkable highs.

Singapore’s Hi5 spread leapt up from less than $100/mt in early May to an all-time record of $575/mt in July. That was way beyond anyone’s expectations and more than $200/mt above the previous peak levels seen right after the IMO 2020 sulphur cap came into force.

ENGINE

Hi5 spreads in Singapore, Fujairah and Rotterdam in the past year

Shipowners have recently been eager to book scrubber retrofits to take advantage of wide Hi5 spreads in the coming months and years. As we all know, the lead-up to IMO 2020 saw peak interest in scrubber investments and shipowners lining up to get vessels retrofitted or built with scrubbers in shipyards. Orderbooks were filling up fast and scrubber manufacturers were fully booked months ahead.

Evidence from the past six months of Hi5 spreads and future projections of these staying wide could very well trigger another flurry of scrubber orders. Clean Marine is now increasing capacity to meet that demand.

“We are now ramping up our scrubber installations fully because we believe momentum is building,” Clean Marine’s Nicholas Hvide Macleod says, “Hi5 spreads look very lucrative going forward.”

Looking ahead in the paper market, Singapore’s Hi5 spread is projected to hold above $190/mt on average next year. The port’s current delivered bunker spot spread is about $285/mt, and in recent months we have seen that the Hi5 spread in the spot market has overperformed by around $100/mt above its paper equivalent.

If we look at current fuel cost savings for a scrubber-fitted non-eco Capesize tanker bunkering HSFO in Singapore with the current spot discount of $285/mt to VLSFO, its fuel cost savings run up to $14,250/day if it consumes 50 mt/day of HSFO. This means that its scrubber can be paid back in about 17 months.

The months and years ahead of us are also poised to serve up wide spreads, with strong refining margins and lots of HSFO produced as a by-product. This should weigh on HSFO prices, while distillates and other VLSFO blendstocks further up the barrel are running low in storage and could be depleted further as sanctions on Russian oil products come into force in two months.

In fact, Singapore’s Hi5 spread has averaged $351/mt in the past six months and is forecast to remain wide in part due to favourable HSFO supply-demand dynamics in the foreseeable future.

 

Photo credit: Chris Pagan on Unsplash / ENGINE
Published: 13 December, 2022

Continue Reading

Winding up

Singapore: Liquidators arrange creditors meeting for Otto Marine Limited

Meeting will be held from 3pm on 24 July at 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095, according to Government Gazette notice.

Admin

Published

on

By

steve pb from Pixabay

A meeting for creditors of Otto Marine Limited, which is in liquidation, has been scheduled to take place on 24 July, according to a Government Gazette notice on Thursday (11 July). 

The meeting will be held from 3pm at 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095

The agenda of the meeting will be as follows:

  • To update on the liquidation administration;
  • To approve the Liquidators’ fees and disbursements;
  • To approve the declaration of preferential dividend(s) pursuant to Section
  • 328(1)(b) to 328(1)(f) of the Companies Act, Cap. 50;
  • To consider and if thought fit, to appoint a committee of inspection; and
  • Any other business.

The details of the liquidators are as follows: 

Chee Yoh Chuang
Lin Yueh Hung
Liquidators
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095

 

Photo credit: steve pb from Pixabay
Published: 12 July, 2024

Continue Reading

LNG Bunkering

Titan completes first STS LNG bunkering operation in Cuxhaven

Port of Cuxhaven in Germany had previously only seen LNG operations conducted via truck and currently only permits LNG bunkering at one berth, says Titan.

Admin

Published

on

By

Titan completes first STS LNG bunkering operation in Cuxhaven

LNG bunker fuel supplier Titan on Thursday (11 July) said it completed the first-ever LNG bunkering operation by ship in the port of Cuxhaven.

Titan’s bunker vessel Optimus successfully delivered LNG to dredger Vox Ariane operated by its long-term client Van Oord. 

“Our ship-to-ship bunkering in Cuxhaven represents a pioneering step in the region's LNG infrastructure development, as the port had previously only seen LNG operations conducted via truck and currently only permits LNG bunkering at one berth,” it said in a social media post. 

“LNG infrastructure development is part of a broader trend, with more ports across Germany adopting LNG operations to support shipping’s clean fuels transition.”

Titan added the improved LNG bunkering capabilities in Cuxhaven, a Niedersachsen Ports GmbH & Co. KG port, also opened up the pathway to maritime decarbonisation via liquified biomethane (LBM) and then renewable e-methane going forward.

 

Photo credit: Titan
Published: 12 July, 2024

Continue Reading

LNG Bunkering

UECC “Auto Achieve” receives first LNG bunker fuel delivery by barge in home country

Firm said it received the first ever supply of LNG by barge to their multi-fuel LNG battery hybrid car carrier in the Port of Drammen, Norway.

Admin

Published

on

By

UECC “Auto Achieve” receives first LNG bunker fuel delivery by barge in home country

Norwegian roll-on/roll-off shipping line United European Car Carriers (UECC) on Wednesday (10 July) said it received the first ever supply of LNG by barge to their multi-fuel LNG battery hybrid car carrier Auto Achieve in the Port of Drammen on 4 July.

The firm said this was the first time UECC received LNG by barge to any of their vessels in their home country Norway. 

“We also believe that it was the first time LNG was delivered by barge to any vessel in Drammen, and most likely the entire Oslofjord,” UECC said in a social media post.

The LNG was supplied by the Molgas Energy Holding vessel Pioneer Knutsen, owned by Knutsen Group OAS.

“UECC is very pleased to see the expansion of the LNG barge network in Norway,” it said. 

 

Photo credit: UECC
Published: 12 July, 2024

Continue Reading
Advertisement
  • Consort advertisement v2
  • Aderco advert 400x330 1
  • RE 05 Lighthouse GIF
  • SBF2
  • v4Helmsman Gif Banner 01
  • EMF banner 400x330 slogan

OUR INDUSTRY PARTNERS

  • SEAOIL 3+5 GIF
  • Triton Bunkering advertisement v2
  • 102Meth Logo GIF copy
  • Singfar advertisement final
  • HL 2022 adv v1


  • E Marine logo
  • PSP Marine logo
  • Cathay Marine Fuel Oil Trading logo
  • Uni Fuels logo advertisement white background
  • Golden Island logo square
  • Synergy Asia Bunkering logo MT
  • Auramarine 01
  • 300 300
  • Central Star logo
  • MFA logo v2
  • VPS 2021 advertisement
  • Headway Manifold
  • 400x330 v2 copy
  • Advert Shipping Manifold resized1

Trending