In an exclusive interview with Singapore-based bunkering publication Manifold Times, Anders Grønborg, CEO, and Jesper Sørensen, Head of Alternative Fuels & Carbon Markets, KPI OceanConnect, shared insights into its recent results for the financial year 2023/2024 and its plans, including the company’s focus for the bunkering market in Asia, particularly in Singapore, for the upcoming financial year: 

MT: With an increased volume of 9% to 12 million mt in FY 2023/24, what does KPI OceanConnect aim to achieve for FY 2024/2025?  

Grønborg: Our aim for the next year is to stand side-by-side with our clients. From complying with all regulations and adopting alternative fuels to trading with conventional bunker fuel, our aim is to continue to anticipate and support our clients with their evolving needs.

In tangible terms, this could mean more offices in strategic locations around the world or hiring more people to bring in the right expertise. Having met our financial and market share targets last year, this next chapter is an exciting time of growth and consolidation for KPI OceanConnect.

MT: KPI OceanConnect’s Alternative Fuels & Carbon Markets team delivered several low-carbon fuel bunkering firsts for clients around the world during FY 2023/24, what can the industry expect from KPI OceanConnect in the coming months for alternative bunker fuels?  

Sørensen: We are focusing on greater volumes of alternative fuels, driven by global regulations, to help the industry make informed decisions on their energy transition. As an intermediary, we will continue to play an active role in connecting the dots between bunker suppliers and buyers to aggregate demand, build infrastructure and scale for the uptake of these fuels.

With this partnership approach, we can exchange knowledge on best practices and give bunker buyers and suppliers the confidence to invest in alternative fuel infrastructure development.

MT: How did the firm reach its milestone of having 100 biofuel supply locations around the world? Does the firm aim to take it to a higher number of locations in the coming FY? If yes, could you share with us the goal and locations? 

Sørensen: We recognize the importance of ensuring the right fuel is available for our clients on their trade lanes. To enable this, we have actively been partnering up with suppliers across the world to ensure that we can complete trials and deliveries of biofuels (and LNG) for our clients.

MT: The company has noted that marine fuel demand has been rising along the route via South Africa in its statement on the FY. Is the company taking any steps to leverage this and how?  

Grønborg: What we have seen is customers taking on more fuel in Asia as they travel on the East-West route, and volumes have been rising for those vessels that are able to bunker that much. Elsewhere along the route, we have seen increased volumes, in particular in Durban and Las Palmas.

We have always been able to supply in these locations and clients have asked us to do so in the past, but as routes have been forced to change, the demand in these locations has increased. For us it means working with our partners to make sure we have the volumes they want, wherever they want them.

MT: What will be KPI OceanConnect’s focus for the bunkering market in Asia, particularly in Singapore, for FY 2024/2025? 

Sørensen: When it comes to the Asian bunkering market, we are still in the relatively early days of transitioning to alternative fuels. This is because there is currently little regulatory or financial incentive to adopt these future fuels.

Still, there are clear indicators that China will continue to build up its LNG and biofuel infrastructure, which means that it will be able to better support regional players who are first movers.

Singapore is a key bunkering hub and we have been working closely with the MPA to understand its plans to encourage the uptake of alternative fuels and establish the necessary infrastructure.

As a market leader across the region, we see it as our role to support our stakeholders by sharing our knowledge and insight on alternative fuels.

By working in partnership with suppliers, we can help them find a market and reassure ship owners and operators that they will be able to access fuel supplies as they adopt new technologies.

This may mean working with multiple suppliers to ensure bunker buyers can meet their fuel demands. As a marine energy service and solutions provider, we have the scale, resources and reach to be able to connect both sides of the equation and continue fuelling global trade.

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Photo credit: KPI OceanConnect
Published: 23 August, 2024