Business

IBIA: Changes afoot

Increased willingness at latest IMO ISWG-GHG sessions to develop fuel lifecycle assessment guidelines that account for well to wake GHG emissions, says IBIA director.

Published

3 years ago

June 13, 2022

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The International Bunker Industry Association (IBIA) on Friday (10 June) published an article by IBIA director, Unni Einemo, who writes about the growing appetite towards maritime decarbonisation and the introduction of a GHG fuel standard, amongst others:

Is there appetite for change in the marine fuels and shipping industry? There are signs that there is.

The IBIA Board of Directors and Secretariat has seen a number of changes recently. Since the last issue of World Bunkering, Henrik Zederkof’s allotted time as our Chair has come to an end. He showed exceptional drive and commitment to the focus areas he outlined for IBIA in 2020. We are lucky to have another driven individual step into the role; Timothy Cosulich, who became the Chair on 1 April this year. In his first Chair’s Letter for World Bunkering, he sets out the Association’s goals for the year ahead.

Work set in motion two years ago continues. We have set up two out of five planned Regional Boards, one for Asia and one for Africa. This allow issues specific to each region to be more thoroughly examined. Also continuing is a focus on decarbonisation, to ensure our industry understands what’s coming and plays a part in necessary changes. Our work on bunker licensing and Mass Flow Meters also continues. A new area of focus outlined by Timothy is integrity, with an initial task to update and strengthen the IBIA Code of Ethics.

Some of these areas are underpinned by the desire for improving transparency in our sector. But what exactly does ‘transparency’ mean? I think it is about building an environment where stakeholders feel comfortable and confident in their dealings with each other. Confidence that they are treated fairly. It means putting in place mechanisms that help build trust, where good practices are rewarded and bad practices are penalised.

Our Licensing and MFM Working Group have just completed analysis of a joint IBIA and BIMCO survey into industry experiences and attitudes. You can read about the key findings in this issue. Two things stand out to me: The percentage of deliveries associated with disputes about quantity (1.61%) and quality (0.98%) was relatively low, yet a clear majority of respondents were in favour of bunker licensing programmes and MFMs as tools to improve transparency and trust in the bunker supply industry. Respondents included a large share of traders and suppliers, over half of the total, so it isn’t just bunker buyers that want this.

When it comes to decarbonisation, I am also witnessing growing appetite for taking steps to get this major transition underway, both in the industry and among Member States at the IMO. The latest IMO intersessional working groups on greenhouse gases (ISWG-GHG) have signalled increasing willingness to develop fuel lifecycle assessment (LCA) guidelines that will take well to wake GHG emissions into account as a basis for new regulatory moves to cut shipping’s GHG emissions. At the moment, regulations account only for tank to wake emissions. I am also seeing agreement emerging that the IMO must put a price on CO2 or CO2 equivalents, though exactly how this will be done still needs to be worked out. And there is growing support for introducing a GHG fuel standard to gradually increase the share of low carbon or renewable fuels used by shipping; which I believe is a crucial regulatory signal to ensure that there will be demand for such fuels even if the price is high.

There is even willingness among shipping organisations and IMO Member States to push for a net-zero GHG target by 2050, when the IMO revises its GHG strategy in 2023. This is a huge commitment compared to the 50% reduction agreed in the initial strategy in 2018.

We all know that stakeholders need to work together to help us reach GHG reduction goals. To that effect, IBIA has recently signed a Coalition partner contract with the Global Centre for Maritime Decarbonisation (GCMD), and we hope this partnership will be a positive way of ensuring we’re all pulling (or pushing) in the same direction without too much duplication of effort.

I mentioned changes in the IBIA Secretariat. The Regional Manager for IBIA Asia, Alex Tang, left us in April to take up a new position with Intertek Lintec. At the end of April, Noraini Binte Salim left her position as Office Manager for IBIA Asia for family reasons. We are grateful to both for their hard work and dedication to IBIA. As this issue goes to print, we are in the process of recruiting their replacements and look forward to welcoming them to the team.

Photo credit and source: International Bunker Industry Association
Published: 13 June, 2022

Alternative Fuels

SMW 2025: Singapore to launch new standard for electric harbour craft this week

MPA and Enterprise Singapore will launch the Technical Reference 136 to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft, says minister.

Published

6 hours ago

March 24, 2025

Admin

SMW 2025: Singapore to launch new standard for electric harbour craft this week

Minister of State for Transport Murali Pillai on Monday (24 March) said Singapore will launch a new standard for electric harbour crafts this week as part of Maritime and Port Authority of Singapore’s (MPA) efforts in facilitating decarbonisation for domestic harbour craft to achieve the republic’s national target of net-zero emissions by 2050.

“MPA and Enterprise Singapore will launch the new Technical Reference 136 this week to provide guidelines for the development and operation of charging and battery swap systems for electric harbour craft,” Murali said during his speech at the opening ceremony of the Singapore Maritime Week 2025 (SMW 2025).

“This will enhance the safety and interoperability of electric harbour craft charging infrastructure.”

This is one of the initiatives MPA is undertaking to prepare for the bunkering of alternative marine fuels and decarbonising Singapore’s domestic maritime sector.

The minister said Singapore is taking steps to support the use of various fuels by the industry and position Singapore as a leading bunkering hub for alternative fuels.

“Over the past two years, we have supported trials of alternative fuels such as ammonia and methanol. These have contributed to the development of new technical references and IMO guidelines to enable the safe and efficient use of these marine fuels,” he said.

“MPA and Enterprise Singapore published the new Technical Reference 129 on Methanol Bunkering earlier this month, and we plan to launch a new standard for ammonia bunkering later this year.”

He added MPA has also recently allowed licensed bunker tankers to carry and deliver biofuels up to B30.

“Pilots for up to B100 are ongoing, and we welcome bunker suppliers to engage in these pilots,” he said.

At the opening ceremony of SMW 2025, Senior Minister Lee Hsien Loong, together with Murali, also launched Singapore’s first Maritime Digital Twin, an advanced simulation model developed by MPA in partnership with the Government Technology Agency of Singapore (GovTech) that integrates real-time data to enhance decision-making and improve management of maritime operations in Singapore waters.

Murali said the digital twin will integrate data from different sources and provide a platform for information sharing. This will enable the development of tools to optimise port efficiency and reliability above, at and below the sea surface.

“For example, the digital twin will enable scenario simulations and dispersion modelling, which can inform standard operating procedures for the safe bunkering of alternative fuels such as methanol and ammonia,” he said.

The minister added MPA will roll out the digital twin to pilot users later this year, before progressive implementation for the wider industry.

“In future, we can extend this to the global maritime ecosystem through our Green and Digital Shipping Corridors with other countries and ports,” he said.

Photo credit: Maritime and Port Authority of SingaporePublished: 24 March, 2025

Alternative Fuels

TFG Marine welcomes first of four ‘L’ series IMO type II bunkering tankers of Consort Bunkers

TFG Marine to operate Consort Bunkers’ bunkering tanker “Pearl Lavender”, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, at Singapore port from April onwards.

Published

6 hours ago

March 24, 2025

Admin

TFG Marine welcomes first of four 'L' series IMO type II bunkering tankers of Consort Bunkers

Global marine fuel supply and procurement firm TFG Marine on Friday (21 March) said it attended the delivery ceremony of bunker tanker Pearl Lavender at China Merchants Jinling shipyard in Nanjing.

The IMO type II chemical bunkering tanker newbuilding is amongst others under long-term time charter from Singapore-based bunker supplier and logistics services provider Consort Bunkers Pte Ltd (Consort).

"This state of the art vessel, capable of carrying methanol, biogrades up to B100, as well as conventional fuels, will be operational at the Port of Singapore from April 2025, further advancing our product offering to our client base in the APAC region," said TFG Marine.

"As the first of four barges in this order, this investment builds on our commitment to low-carbon fuel bunkering infrastructure, reinforcing our vision for a multi-fuel future.

"With methanol, biofuels, ammonia, and other alternative fuels playing an increasingly significant role alongside traditional marine fuels, we continue to support the industry's transition towards cleaner energy solutions."

Manifold Times previously reported that Consort first contracted six ‘L’ series 6,500 dwt IMO Type II bunker tankers with China Merchants Jinling Shipyard (Nanjing) Co., Ltd. in April 2023.

The ‘L’ series of bunker tanker newbuildings gained recognition from the China Association of The National Shipbuilding Industry (CANSI) as amongst the Chinese shipbuilding sector’s top 10 innovative vessels for 2024.

Last year, TFG Marine announced the signing of a long-term time charter agreement with Singapore-based bunker supplier and logistics services provider Consort Bunkers for four newbuild bunker tankers.

Photo credit: TFG Marine
Published: 24 March, 2025

Sanctions

US OFAC sanctions first Chinese teapot refinery and oil tankers over Iranian links

Shandong Shouguang Luqing Petrochemical and its chief executive officer were added to OFAC’s sanctions list for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil.

Published

6 hours ago

March 24, 2025

Admin

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) on Thursday (20 March) sanctioned a “teapot” oil refinery and its chief executive officer for purchasing and refining hundreds of millions of dollars’ worth of Iranian crude oil, including from vessels linked to Ansarallah, commonly known as the Houthis, and the Iranian Ministry of Defense of Armed Forces Logistics (MODAFL).

Shandong Shouguang Luqing Petrochemical Co., Ltd (Luqing Petrochemical), a teapot refinery in Shandong Province, has purchased millions of barrels of Iranian oil worth approximately half a billion dollars.

Luqing Petrochemical received Iranian oil transported by shadow fleet vessels, some of which have been sanctioned for their role transporting Iranian petroleum linked to the Houthis and MODAFL, including the MEHLE (IMO: 9191711) and the KOHANA (IMO: 9254082). In mid-2022, Luqing Petrochemical was identified as a buyer of Iranian oil associated with the Iranian military and Iranian military forces.

Luqing Petrochemical is being designated pursuant to E.O. 13902 for operating in the petroleum sector of the Iranian economy. PRC national Wang Xueqing serves as the chief executive officer and legal representative of Luqing Petrochemical, and is being concurrently designated pursuant to E.O. 13902 for having acted or purported to act for or on behalf of, directly or indirectly, Luqing Petrochemical.

“Teapot refinery purchases of Iranian oil provide the primary economic lifeline for the Iranian regime, the world’s leading state sponsor of terror,” said Secretary of the Treasury Scott Bessent.

“The United States is committed to cutting off the revenue streams that enable Tehran’s continued financing of terrorism and development of its nuclear program.”

OFAC additionally imposed sanctions on 19 entities and vessels responsible for shipping millions of barrels of Iranian oil, comprising part of Iran’s “shadow fleet” of tankers supplying teapot refineries like Luqing Petrochemical.

Iranian crude oil is transported to teapot refineries via a “shadow fleet” of vessels that usually engage in deceptive shipping practices, including automatic identification system (AIS) manipulation.

OFAC sanctioned eight vessels that constitute part of this fleet, including the Comoros-flagged NATALINA 7 (IMO: 9310147), Panama-flagged CATALINA 7 (IMO: 9310159), AURORA RILEY (IMO: 9181649), and VIOLA (IMO: 9254915), San Marino-flagged MONTROSE (IMO: 9281695), Barbados-flagged VOLANS (IMO: 9422988) and BRAVA LAKE (IMO: 9232876), and the currently unflagged TITAN (IMO: 9293741).