Business

Integr8: Off-spec VLSFO sulphur bunker deliveries 14 times higher in ARA than Singapore

Chris Turner of Integr8 explored data from 60 million mt of supply from last six-months to highlight regions, fuel grades and ports that present highest risk of off-specification situations.

Published

1 year ago

May 25, 2023

Admin

Ship operators are 14 times more likely to experience VLSFO sulphur levels exceeding 0.50% with certain suppliers in ARA than in Singapore, Integr8 Fuels research revealed on Wednesday (24 May).

Integr8 Fuels released its latest Bunker Trends Quality Report 2023 where the firm’s Bunker Quality and Claims Manager, Chris Turner, explored data from 60 million metric tonnes (mt) of supply from the last six-months to highlight the regions, fuel grades and ports that present the highest risk of off-specification situations.

With the marine fuels landscape growing ever more complex amidst a backdrop of tightening regulations and a fragmented supply chain, there are many factors that must be considered when buying bunkers, the firm said.

“Focus has again fallen on quality since the high-profile contamination incidents in Singapore, and the new Mediterranean Sea ECA’s Sulphur cap drop that is looming for many tanker, dry bulk, container, and cruise ship operators in 2025,” it added.

Recent research conducted by Integr8 Fuels reveals several regional and parametric trends with regards to fuel quality and consistency. Key findings of the trading company’s second Bunker Quality Trends report, include:

VLSFO obtained in ARA is approximately 14 times more likely to have Sulphur levels exceeding 0.50% than Singapore, although with careful buying we can avoid this risk
The epicentre for hidden losses associated with density remains in a popular Southeast Asian port
There are continued challenges of non-homogenous VLSFO blends in the industry

The report provides an in-depth assessment of key trends across all commercial fuel grades and key ports, answering questions such as, how likely am I to be faced with an off-specification situation, what are the most problematic parameters, which ports pose the highest risk, and what steps should I take when faced with a claim?

Integr8 also delves into the hidden losses that are often not considered when purchasing, and the author issues a note of caution as to the suitability of quality time bars in outlying supply locations, where delays in reporting can create significant time pressures when submitting a claim.

Chris Turner, Bunker Quality and Claims Manager for Integr8 Fuels, said “Whilst fuel quality remains good overall, pockets of problems remain, and data-driven buying remains the first line of defence to proactively protect buyers against most of the issues we see in the industry. We hope this report will provide ship operators and bunker buyers with the information and tools they need to mitigate risk and make smart buying decisions.”

Coinciding with the release of this report, Integr8 Fuels launched a new website that provides visitors with access to a plethora of bunker industry stats and content. The new information hub provides access to critical data sets that should be used when determining how, where, and when to bunker, which could ultimately assist buyers in making savings, as well as avoiding costly delays or claims.

“Our goal is to support our clients by providing clarity in what has become an increasingly complex marketplace. With so many different sources of data, and, in the case of pricing, a lack of official benchmarking system, it can be difficult to determine the right buying strategy or confidently assess performance,” said Pablo Di Nieri, Integr8’s Chief Commercial Officer.

“That’s why we have teams of research analysts and technical experts monitoring the market and producing valuable resources which users can access via our new website, along with regularly updated bunker pricing and quality information. Whilst data is not a silver bullet in avoiding all issues, the case for smart, proactive buying strategies remains a very strong one.”

Note: Download a copy of Bunker Trends Quality report for free on Integr8 Fuels’ website here.

Photo credit: Integr8 Fuels
Published: 25 May, 2023

Winding up

Singapore: Annual general meeting set for Xihe Holdings subsidiary

Annual general meetings will be held on 23 September for Nan Chiau Maritime to receive an update on firm’s liquidation, according to Government Gazette notice.

Published

16 hours ago

September 10, 2024

Admin

A notice was published on the Government Gazette on Monday (10 September) regarding the annual general meetings to be held on 23 September for Xihe Holdings subsidiary Nan Chiau Maritime Pte Ltd.

Annual general meetings for Nan Chiau Maritime are to be held at the following times:

For the company: 2pm
For the creditors: 3pm

The agenda for all the meetings are:

To receive an update on the liquidation.
To receive an account of the Liquidators’ acts and dealings, and of the conduct of the winding up.

The following are the details of the liquidator:

Ho May Kee
Liquidator
c/o 8 Marina View
#40-04/05 Asia Square Tower 1
Singapore 018960

Xihe Holdings Pte Ltd and its subsidiaries are owned by the Lim family, who are also the owners of the embattled Hin Leong Trading.

Manifold Times previously reported several resolutions for the firm were passed by written means, including winding-up the company.

Manifold Times also reported directors of Nan Chiau Maritime declaring the company’s inability to continue business.

Photo credit: Jo_Johnston from Pixabay
Published: 10 September, 2024

Methanol

Methanex to acquire OCI Global international methanol business

Transaction includes OCI’s interest in two methanol facilities in Beaumont, Texas, a low-carbon methanol production and marketing business and a currently idled methanol facility in Netherlands.

Published

16 hours ago

September 10, 2024

Admin

Methanex to acquire OCI Global international methanol business

Methanex Corporation (Methanex) on Sunday (8 September) announced that it has entered into a definitive agreement to acquire OCI Global’s (OCI) international methanol business for USD 2.05 billion.

The transaction includes OCI’s interest in two world-scale methanol facilities in Beaumont, Texas, one of which also produces ammonia. The transaction also includes a low-carbon methanol production and marketing business and a currently idled methanol facility in the Netherlands.

“This is a unique opportunity to create value by acquiring two highly attractive North American methanol assets that will further strengthen our global production base and we expect it will be immediately accretive to free cash flow per share,” said Rich Sumner, President and Chief Executive Officer of Methanex.

“The Beaumont plants benefit from access to North America’s abundant and favourably-priced supply of natural gas feedstock, and are expected to increase our global methanol production by over 20 percent.”

“We believe the transaction will provide significant long-term value to Methanex shareholders while aligning with our strategic objectives of industry leadership, operational excellence, and financial resiliency,” said Mr. Sumner.

“From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing.”

Nassef Sawiris, Executive Chairman of OCI, added, “We are pleased with the opportunity to achieve a significant ownership position and are highly confident in Methanex’s ability to create enduring value for shareholders. As the global leader committed to safety and operational excellence, we identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023.”

As part of the transaction, Methanex will acquire the following:

A methanol facility in Beaumont, Texas with an annual production capacity of 910,000 tonnes of methanol and 340,000 tonnes of ammonia. This plant was restarted in 2011 and since that time the plant has been upgraded with USD 800 million of capital for full site refurbishment and debottlenecking.
A 50 percent interest in a second methanol facility also in Beaumont, Texas, operated by the joint venture Natgasoline LLC (Natgasoline). The Natgasoline plant was commissioned in 2018 and has an annual capacity of 1.7 million tonnes of methanol, of which Methanex’s share will be 850,000 tonnes.
OCI HyFuels, which produces low-carbon methanol and sells industry-leading volumes with trading and distribution capabilities for renewable natural gas (RNG). With nine years of experience in the low-carbon methanol business and with an array of blue-chip customers, this will enhance Methanex’s existing Low Carbon Solutions function with additional expertise in this developing segment.
A methanol facility in Delfzijl, Netherlands with an annual capacity to produce 1 million tonnes of methanol. This facility is not currently in production due to unfavourable pricing for natural gas feedstock.

Closing of the transaction is expected in the first half of 2025. The transaction has been approved by the boards of directors of both companies and is subject to receipt of certain regulatory approvals and other closing conditions including TSX approval for the issuance of Methanex shares to OCI.

The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction.

Photo credit: OCI Global
Published: 10 September, 2024

Alternative Fuels

Corvus Energy gas-safe marine fuel cell system receives type approval by DNV

Firm said the system is the first Fuel Cell System designed to be inherently gas-safe, making it the safest fuel cell system in the market.

Published

16 hours ago

September 10, 2024

Admin

Corvus Energy gas-safe marine fuel cell system receives type approval by DNV

Corvus Energy, supplier of energy storage systems (ESS) for maritime applications, on Wednesday (4 September) announced that the Corvus Pelican Fuel Cell System has received Type Approval from classification society DNV.

The system, which was developed through the three-year-long H2NOR project, is the first Fuel Cell System (FCS) designed to be inherently gas-safe, making it the safest fuel cell system in the market.

Corvus Energy said receiving type approval from DNV confirmed that the Corvus Pelican Fuel Cell System meets the most stringent performance and safety standards required by the maritime industry.

Olaf Drews, Head of Engines & Pressurized Equipment Maritime, said: “It is a special fuel cell system, because the Pelican uses nitrogen for inerting of the fuel cell space.”

“It is the first fuel cell system that uses this technology and this brings it to a very preferred safety level. This is a milestone, and we look forward to the first ship project.”

Despite technology improvements and advancements in battery electric vessels, most vessels cannot achieve zero-emission operations for extended periods of time using batteries alone. For vessels on longer routes and vessels that are unable to charge often enough, we need to add clean fuel and fuel cells to enable extended zero-emission capabilities.

CEO of Corvus Energy, Fredrik Witte, said: “Toyota’s unsurpassed knowledge in developing high-quality and efficient fuel cells, in addition to the strong collaboration and high level of maritime experience among the partners in this development project, has been key.”

“This is a milestone for net zero shipping. We now have a high-quality range extender to add to our existing ESS portfolio with the scalability and the safety needed to be a real driver in the future of marine decarbonization.”

The first Corvus Pelican Fuel Cell System is produced and ready to be installed onboard MS Skulebas, a 35-meter fishing and training vessel owned by Vestland County and operated by Måløy Upper Secondary School in Norway.

The vessel already has a 1 MWh battery system onboard. By adding the Corvus Pelican Fuel Cell System and hydrogen storage, the vessel will be able to operate for four days on zero emission.

Photo credit: Corvus Energy
Published: 10 September, 2024