Connect with us

Business

Interview: Hafnia shares IMO 2020 preparations, promotes transparency for bunkering operations

‘We support MFMs for bunker deliveries at Singapore and that goes for other tech as well; Hafnia is onboard any initiatives improving transparency in the bunker supply chain,’ says Bunker Manager.

Admin

Published

on

KSO Photo v1

The following interview is part of pre-event coverage for the upcoming Singapore International Bunkering Conference and Exhibition (SIBCON) 2020, where Manifold Times is an official media partner:

 

Hafnia is one of the world’s leading oil product tanker owners and operators. The company provides transportation of oil and oil products to leading national and international oil companies, major chemical companies, as well as trading and utility companies. Hafnia operates a fleet of 178 vessels in pools and is a part of BW Group – an international shipping group that has worked in oil and gas transportation, floating gas infrastructure, environmental technologies and deep-water production for over 80 years.

Hafnia Bunker Services, which operates within Hafnia, purchases bunkers for part of the BW Group fleet; the company also acts as brokers for its pool partners and third-party members in order to enjoy synergies associated with economies of scale for its alliance members.

 Manifold Times recently spent time with Kasper Sørensen, Bunker Manager at Hafnia, who shared with the Singapore bunker publication how Hafnia prepared for IMO, as well as his thoughts and actions in the face of other events in the past year.

 MT: What did Hafnia do to prepare for IMO 2020, and how has that preparation paid off to date?

We formed an internal IMO 2020 committee years before the event in order to prepare for the technical side of the transition. This committee was responsible for considering whether to adopt a scrubber based approach for compliance. We didn’t choose the scrubber route for various reasons and have been happy with that decision.

Our IMO 2020 committee also discussed what kind of problems one can expect with the new types of marine fuels. So far, the preparation has proven to be useful and has helped deal with most of the issues that have come up.

On the commercial side of the transition preparation, we had to ensure our terms and conditions were up to the standards required of our typical bunker contracts. We decided to formalise our strong relationships by establishing partnerships with bunker suppliers, which meant more term contracts. We believe this commercial strategy makes sense for both bunker suppliers and ourselves.

Another difficult task was managing expectations of all stakeholders, both on and off-shore, while also ensuring we were not underestimating the impact of the transition in Q4 2019. We had expected this period to be a squeeze both in terms of product but also for barges.

We also spent a long time vetting counterparties to ensure they had the size and firepower to withstand hits even if the market went against them. It is all fine and well having a lucrative contract, but it doesn’t make much sense if they go bust two months after IMO 2020.

 MT: Do you feel there is any difference between bunker procurement pre and post-IMO 2020? In what ways?

On the technical side, bunker buyers are now required to have an even deeper knowledge of the supply chain. We now need to understand different product characteristics for bunkers that have emerged around the market with IMO 2020 in order to make fully informed decisions.

The product we get from various suppliers and markets are not uniform, creating many different challenges. There is now a lot of focus on fuel handling. As a result, we have introduced certain restrictions on how much fuel our vessels can carry of any one batch at a given time as part of our risk management practises.

Further, we now, more than ever, have to consider prioritising quality over fuel prices. Just making buying decisions based purely on prices no longer makes much sense, as now we must also consider other factors such as quality and availability of product. It isn’t much use if you have a very good price but cannot use the product.

 MT: Were there any unexpected events (e.g. Covid-19, etc.) which affected the bunker buying process in 2020? How did Hafnia overcome associated challenges?

Of course, the coronavirus (Covid-19) was a big curveball in 2020. In terms of the bunker side of things, we capitalised on us being both a strong and reliable counterpart that have also liaised with other strong and reliable counterparties.

As such, we have the luxury of being able to choose counterparts from the top shelf – to fit our profile. During the IMO 2020 transition, we were an attractive counterpart because of our strong financial status and name, which was further bolstered by our strong 2020 results.

 MT: Have the commodity trading mishaps in Singapore affected the way Hafnia purchases bunkers and operate as a bunker broker? How so?

The case of Hin Leong and the other commodity trading firms just emphasises the importance of knowing who you are dealing with and having proper K.Y.C. (know your customer) and general terms and conditions.

 MT: Thoughts on mass flow meters and the installation of MFM onboard Hafnia tankers to measure fuel delivered at other ports?

We do not have plans to install MFMs onboard our tankers to measure fuel received during bunker deliveries.

We buy bunkers for more than 450 ships. In terms of volume, this means we purchase about 2.5 million metric tonnes of marine fuels a year, including for our third-party members. Out of the total amount, we lift between 30% to 40% of marine fuel from the port of Singapore.

Singapore is the only place that mandates the use of MFMs for bunker deliveries. We are a strong supporter of this. We also encourage any other new technologies that improve the transparency in the supply chain.

 MT: What do you think is the next big thing that will happen in the Singapore or global bunkering sector?

We think there will be further consolidation on both sides of the table for bunker suppliers and buyers, and we are playing an active role in this via our Bunker Alliance.

We also expect more new fuels to materialise and, hopefully, more transparency through digitalisation efforts and other technology initiatives that improve the performance of the industry and its procedures.

As a company purchasing bunkers, we are keen to see and support any activity that promotes transparency in the industry.

 

Photo credit: Hafnia
Published: 2 October, 2020

 

Continue Reading

LNG Bunkering

Malaysia: Port of Tanjung Pelepas achieves milestone with first SIMOPS LNG bunkering op

LNG bunker vessel “MT Paolina Cosulich” refuelled LNG dual-fuel container ship “Bangkok Express”, operated by Hapag-Lloyd AG at the port.

Admin

Published

on

By

Malaysia: Port of Tanjung Pelepas achieves milestone with first SIMOPS LNG bunkering op

Port of Tanjung Pelepas (PTP) on Sunday (16 February) said it successfully conducted its first Simultaneous Operations (SIMOPS) of liquefied natural gas (LNG) bunkering.

This significant achievement involved the LNG dual-fuel container ship Bangkok Express, operated by Hapag-Lloyd AG, and the LNG bunker vessel MT Paolina Cosulich.

“This milestone underscores PTP's dedication to enhancing our competitive edge in the global market by facilitating clean and efficient maritime operations,” the port said in a social media post.

“We are proud to have partnered with PETCO Trading Labuan Co., Ltd. (PTLCL) and Hapag-Lloyd on this pioneering initiative.”

Manifold Times previously reported the port also achieving its first LNG bunkering operation last year. 

The port completed its first-ever ship-to-containership methanol bunkering operation in November last year. 

Manifold Times previously reported the port achieving its first LNG bunkering operation last year. 

Related: Malaysia: Port of Tanjung Pelepas achieves milestone with first methanol bunkering op
Related: Malaysia: Port of Tanjung Pelepas completes first LNG bunkering operation
Related: Malaysia: Tanjung Pelepas selected to join P41 initiative to achieve green bunkering hub ambition
Related: Port Of Tanjung Pelepas joins G2G decarbonisation scheme between Malaysia and Australia

 

Photo credit: Port of Tanjung Pelepas
Published: 18 February, 2025

Continue Reading

LNG Bunkering

Kunlun Energy wraps up first STS offshore LNG bunkering operation in Hong Kong

Kunlun Energy, a red-chip controlled by PetroChina, said its bunkering vessel refuelled container ship “Zim Haifa Blue Stone” with 2,200 metric tonnes of LNG bunker fuel in a seven-hour operation.

Admin

Published

on

By

Kunlun Energy wraps up first STS offshore LNG bunkering op in Hong Kong

Kunlun Energy, a red-chip controlled by PetroChina, on Monday (17 February) said it completed Hong Kong’s first ship-to-ship (STS) offshore liquefied natural gas (LNG) bunkering operation on 14 February. 

Kunlun Energy's 8,300 m3 capacity LNG bunkering vessel refuelled the container ship Zim Haifa Blue Stone with 2,200 metric tonnes (mt) of LNG in a seven-hour operation. 

The bunkering vessel involved in the operation is operated by a Kunlun Energy subsidiary. 

According to a PetroChina official, the receiving vessel Zim Haifa Blue Stone departed from Busan, South Korea, on 3 February and passed through Qingdao, Shanghai, and Ningbo before arriving in Hong Kong on 12 February. 

Its final destination is Istanbul, Turkey. This refuelling operation can meet the ship's fuel needs for the entire journey. 

“The successful implementation of this "ship-to-ship" offshore LNG bunkering operation is another example of Kunlun Energy's efforts to help improve the international shipping hub of the Guangdong-Hong Kong-Macao Greater Bay Area,” Kunlun Energy said. 

“It is expected to attract more green-fuel vessels to pass through Hong Kong, encourage more environmentally friendly companies to conduct business in Hong Kong, accelerate transformation and technological innovation in the shipping industry, and promote the construction of Hong Kong as a green and smart port.”

“This operation holds significant importance for Hong Kong's push toward a green and sustainable shipping industry.”

 

Photo credit: Kunlun Energy
Published: 18 February, 2025

Continue Reading

Biofuel

Wallenius Wilhelmsen successfully completes its first biofuel bunkering trial in Japan

“M/V Tamesis” bunkered 400 metric tonnes of B24 VLSFO blended biofuel, supplied by Mitsubishi Corporation Energy at Port of Yokohama.

Admin

Published

on

By

Wallenius Wilhelmsen successfully completes its first biofuel bunkering trial in Japan

Wallenius Wilhelmsen on Monday (17 February) said it has successfully completed its first biofuel bunkering trial at the Port of Yokohama in Japan.

M/V Tamesis bunkered 400 metric tonnes (mt) of B24 VLSFO blended biofuel, supplied by Mitsubishi Corporation Energy. 

This milestone is part of Wallenius Wilhelmsen’s ongoing efforts to reduce its environmental impact and promote sustainability in shipping.

“As part of our commitment to reducing greenhouse gas emissions, we have expanded our locations for biofuel supply. Since 2023, the expansion has included key ports in Belgium, Korea and Singapore,” the company said.

“Expanding to Japan enhances our ability to operate more efficiently and sustainably across our global network.”

Wallenius Wilhelmsen has set ambitious emission reduction targets to reach net-zero by 2040. This includes a 40% absolute reduction of well-to-wake greenhouse gas emissions by 2030 compared to our 2022 baseline, as approved by the Science Based Targets initiative.

Yasuyuki Sakurai, Senior Manager, the Orcelle Accelerator taskforce at Wallenius Wilhelmsen, said: “Achieving these targets require a major shift in energy sources from conventional fuels to low and zero-carbon alternatives. Expanding supply locations and securing sufficient biofuels remain a priority, and we are pleased to have conducted our first B24 VLSFO blended biofuel bunkering trial in Yokohama.”

“While our Reduced Carbon Service customers fully support our mass-balance concept, ensuring sufficient biofuel usage across our entire fleet and trade lanes is key to achieving our long-term sustainability goals.”

Mitsuo Ueda, General Manager of Mitsubishi Corporation Energy, said: “In anticipation of growing demand for biofuel in the marine sector, we have begun storing biofuel at our oil terminal in Onahama (Fukushima Prefecture) and supplying B24 in Tokyo Bay using our barges.:

“We deeply admire Wallenius Wilhelmsen’s leadership in the decarbonisation of the shipping industry and remain committed to playing our part in creating a more sustainable future. We will continue striving to meet industry needs through a stable supply of biofuels and contribute to the realisation of a carbon-neutral society.”

This milestone was achieved through close collaboration between Wallenius Wilhelmsen’s Energy Sourcing team and the Orcelle Accelerator taskforce, which has worked for the past two years to establish biofuel bunkering capabilities in Japan.

 

Photo credit: Wallenius Wilhelmsen
Published: 18 February, 2025

Continue Reading
Advertisement
  • Zhoushan Bunker
  • SBF2
  • Consort advertisement v2
  • Sea Trader & Sea Splendor
  • Aderco Manifold Website Advert EN
  • v4Helmsman Gif Banner 01
  • EMF banner 400x330 slogan
  • RE 05 Lighthouse GIF

OUR INDUSTRY PARTNERS

  • E MARINE LOGO
  • SEAOIL 3+5 GIF
  • HL 2022 adv v1
  • Triton Bunkering advertisement v2
  • Singfar advertisement final


  • Auramarine 01
  • Central Star logo
  • PSP Marine logo
  • 300 300
  • Synergy Asia Bunkering logo MT
  • Mokara Final
  • metcore
  • endress
  • Energe Logo
  • CNC Logo Rev Manifold Times
  • LabTechnic
  • Advert Shipping Manifold resized1
  • Headway Manifold
  • 400x330 v2 copy
  • VPS 2021 advertisement

Trending