Business

EXCLUSIVE: Singapore top bunker suppliers reveal monthly sales volume

The majority of Singapore’s top ten suppliers shared with Manifold Times their estimated monthly sales volumes during 2017.

Published

7 years ago

January 16, 2018

Admin

Singapore bunker sales volume surpassed the 50 million metric tonne (mt) mark in 2017; the first year mass flowmeters (MFM) was officially adopted for all fuel oil bunkering operations.

The total volume of bunkers sold at the port of Singapore grew 4.2% to 50.6 million mt in 2017, compared to 48.6 million mt in 2016.

A survey conducted by Manifold Times with various company sources revealed the estimated monthly bunker sales volume for the various top 10 Singapore bunker suppliers in 2017 below:

Sentek Marine & Trading – 330,000 to 350,000 metric tonne (mt)
Petrochina International – 300,000 mt
Chemoil International – 290,000 mt
Shell Eastern Trading – No data
Equatorial Marine Fuel Management Services – 230,000 mt
Exxonmobil Asia Pacific – No data
BP Singapore – No data
Ocean Bunkering Services – 160,000 mt
**Global Energy Trading – 250,000 mt (total sales, including Singapore deliveries)
**Total Marine Fuels – 220,000 mt

**Figures double checked with respective firms

Overall, market sentiments believe the introduction of MFM technology in Singapore as the key reason for the increase.

“The growth in volume is a sign owners and bunker buyers welcome the implementation of the MFM,” says Simon Neo, Executive Director at Singapore-based bunker broking firm Piroj International.

“MFM technology provides shipowners and buyers with the confidence which the bunker market needs. Also with the tight regulation of the MPA (Maritime and Port Authority of Singapore), players cannot play around with the quantity delivered which was a key complaint for many years prior to 2017.”

Desmond Chong, general manager of Singapore supplier Sinanju Tankers Holdings, suggests the growth in Singapore bunker sales volumes to be “A vote of confidence from shipowners and bunker buyers placed on MFM systems and the exemplary regulatory framework governing the bunker industry.”

“It is often claimed that MFM systems brings about increased transparency and efficiency to the Singapore bunkering industry and now the statistics prove so. This is clear evidence MFM bunkering is preferable over the traditional tank gauging and the right direction for the world’s largest bunkering port to embark on,” he explains.

Favourable cargo movement and developments at Asia further add onto the positive benefits MFM technology bring to the market, notes Frederic Vazzoler, the global sales and development director at Total Marine Fuels.

“The use of MFM systems in bunkering and the transparency the technology brings are pull factors to get vessels bunkering in Singapore,” he says.

“However, the increased arbitrage cargo movement to Asia has also resulted in more bunker product at Singapore; shipowners’ appetite for lifting fuel at the republic has also increased due to more intra-Asia business developments.”

In short, the success of MFM bunkering in Singapore should also be credited to the application of TR48 (Technical Reference for Bunker Mass Flow Metering), says the Managing Director of MFM consultancy Metcore International.

“TR48 provides the platform of a more concise system for marine fuel measurement, metering, and monitoring operations,” explains Darrick Pang.

“TR48 is more than just measurement alone as it also covers areas such as security of measurement to provide the trust and confidence [for bunkering operations]. The next step will be to provide continual monitoring and maintenance of the MFM systems which is just as important as the good start we have had.

“In view of Singapore's stellar bunker sales performance, I would not be surprised to see more ports globally introducing MFM systems and applying a similar TR48 infrastructure to their bunkering operations going forward.”

Manifold Times earlier reported Singapore-based independent international ship management firm Thome Group registering no bunker quantity dispute case in Singapore during 2017.

Business

Shell MGO bunker heist: Bunker clerk pleads guilty to helping Sentek acquire misappropriated fuel

Wong Wai Meng, who received more than USD 286,000 from Sentek Marine & Trading for his assistance, pleaded guilty to 12 counts of intentionally helping the firm acquire the misappropriated marine gas.

Published

8 hours ago

December 2, 2024

Admin

A bunker clerk, Wong Wai Meng, who received more than USD 286,000 (SGD 384,681) from Singapore-based Sentek Marine & Trading (Sentek) for his assistance, pleaded guilty to 12 counts of intentionally helping the company acquire misappropriated marine gas oil, The Straits Times reported on Friday (29 November).

The 58-year-old Singaporean was employed at the Sentek when he assisted in acquiring more than 28,000 metric tonnes (mt) of the misappropriated fuel worth USD 13.58 million (SGD 18.26 million).

Wong committed the offences over 46 occasions between August 2014 and December 2017.

Wong is among the three bunker clerks previously employed by Sentek, who were charged for offences under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act (CDSA) and the Prevention of Corruption Act (PCA).

Another bunker clerk among the three charged, Wong Kuin Wah, 61, was sentenced to seven years and six months’ jail on 18 November for his role in misappropriating more than 27,000 tonnes of gas oil worth around USD 12.8 million (SGD 17.2 million).

The third individual who was charged, Boo Pu Wen, reportedly passed away in July 2023 and had his charges abated following his death, meaning Boo’s court proceedings over his 19 charges at the time came to an end.

Former Shell employees, who were key members of a group who dishonestly misappropriated fuel from Shell Pulau Bukom, were sentenced to jail in court earlier.

Earlier coverage of developments by Manifold Times regarding the Shell MGO bunker heist can be found below:

Photo credit: Katrin Bolovtsova
Published: 2 December, 2024

Biofuel

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

Fingerprinting identifies feedstock origins of FAME-based biofuels used in shipping industry; can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity.

Published

8 hours ago

December 2, 2024

Admin

Singapore: GCMD introduces new technique for FAME bio bunker fuel fingerprinting

The Global Centre for Maritime Decarbonisation (GCMD) on Monday (2 December) released its latest report, presenting a new technique that creates a fingerprint for Fatty Acid Methyl Esters(FAME) bio bunker fuels.

This fingerprint identifies the feedstock origins of the FAME-based biofuels used in the shipping industry.

GCMD said FAME fingerprinting is needed as the shipping sector is increasingly using biofuels, such as FAME, to reduce its GHG emissions. With that, concerns have arisen regarding the legitimacy of biofuels and whether they are truly sustainable.

Industry bodies are seeing a rising number of cases mislabelling biofuels purported to be made from recycled oils and fats, while suspicions persist that they might be produced from cheaper and less sustainable virgin oils.

“To address these concerns, FAME fingerprinting can be used as a potential tool to detect fraud in marine fuel supply chains and ensure biofuel authenticity. By providing a physical validation method that complements existing certification schemes, FAME fingerprinting can help justify the green premium with genuine environmental benefits and safeguard the integrity of marine fuels supply chain,” GCMD said.

FAME fingerprinting is based on the principle that the fatty acid profile of FAME is unique to its feedstock and can be preserved during feedstock transesterification to produce FAME. The "fingerprint" can then be compared against a database of known fatty acid profiles to identify the feedstock origin.

GCMD worked with VPS who modified existing fuel testing methods to carry out sample analyses using a gas chromatograph with flame-ionisation detection, an instrument commonly found in fuel test laboratories.

The analysis takes about an hour, comparable to the turnaround time for current marine fuel quality testing in the supply chain.

“We have tested this method on a variety of FAME samples from different suppliers, including virgin oils, used cooking oils, palm oil mill effluent, beef tallow and food waste and were able to identify the feedstock origins for each sample,” GCMD added.

Manifold Times previously reported Captain Rahul Choudhuri, President, Strategic Partnerships at marine fuels testing company VPS, forecasting the use of finger printing technology today will likely establish a blueprint of how future alternative bunker fuels’ feedstocks are authenticated.

Captain Choudhuri said this when he gave an update of VPS’ biofuels finger printing trials with GCMD.

Note: The full report, titled ‘Rapid forensic analysis of FAME-based biofuels: Potential use of its fingerprint as a fraud detection tool’, can be downloaded here.

Photo credit: Global Centre for Maritime Decarbonisation
Published: 2 December, 2024

Methanol

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

Korean firm’s MoU with AE Risinājumi will see construction of Latvia’s first commercial-scale green methanol production plant, which will supply green methanol to ships in EU’s maritime fleet.

Published

8 hours ago

December 2, 2024

Admin

PLAGEN to produce and supply green methanol bunker fuel with Latvia plant

South Korean clean energy firm PLAGEN on Friday (29 November) signed an MOU with Latvian company, AE Risinājumi, for the production of green methanol in Latvia at the “2024 Latvia-Korea Business Forum” hosted by the President of Latvia.

The agreement will result in the construction of Latvia's first commercial-scale green methanol production plant, which will supply green methanol to ships in the EU's maritime fleet, contributing to the reduction of greenhouse gas emissions from maritime transportation.

PLAGEN's MoU aims to produce 20,000 metric tonnes (mt) of green methanol per year and will begin feasibility studies in the first half of 2025, and full-scale production will begin in 2028.

With 53% of Latvia's land area covered by forests, timber production and wood processing make a significant contribution to Latvia’s economic production, which generates a large amount of forest residues and wood wastes. In addition, Latvia also has an abundance and low price of renewable electricity from wind power.

Latvia is one of the most competitive countries in the European Union, as it can produce clean methanol at a competitive price by using abundant wood waste as a raw material and renewable electricity from cheap wind power.

The use of abundant forest residues and wood wastes as a feedstock and cheap renewable electricity from wind power makes it possible to produce green methanol with a competitive price, making Latvia is one of the most competitive countries in the EU.

In the European Union, the European Emissions Trading Scheme (EU-ETS) will come into effect in 2025, requiring shipping companies to purchase carbon credits for their greenhouse gas emissions.

In addition, the EU is implementing FuelEU Maritime, which aims to reduce greenhouse gas emissions by 2% below the 2020 average by 2025 and 80% by 2050. This is expected to result in an energy transition to green methanol.

In July 2023, the International Maritime Organization (IMO) adopted a revised strategy that calls for reducing greenhouse gas (GHG) emissions from ships to net-zero by or around 2050, and plans to introduce full-scale regulations from 2027, and shipping companies have begun ordering methanol-powered ships fueled by green methanol, a carbon-neutral fuel.

“We expect to start producing green methanol in Latvia in 2028, which will reduce greenhouse gas emissions from EU maritime transport vessels and contribute significantly to the revitalization of the Latvian economy and national energy security,” said John Kyung, CEO of PLAGEN.

In November 2024, PLAGEN completed the purchase of an industrial complex and received a government permit for the construction of the country's first green methanol plant in Dongjeom Industrial Complex in Taebaek City, Gangwon-do.

The project, which will produce 10,000 mt per year, is scheduled to begin construction in the first half of 2025 and begin production in the second half of 2027.

Photo credit: PLAGEN
Published: 2 December, 2024