Alternative Fuels

Interview: PS Energy Group gears up for 2023 with sustainable bunker fuel products and digital transformation

The group subsidiary’s CNC Petroleum plans to upgrade its 566 mt capacity “Marine Dignity” with a larger capacity barge to cater to market demand; to launch a marine bunkering app to improve transparency and customer service.

Published

2 years ago

February 16, 2023

Admin

In an exclusive interview with Singapore-based bunkering publication Manifold Times, last mile fuel distribution company PS Energy Group recently shared its digitalisation milestones and triumphs of 2022, exciting plans in the pipeline for 2023, its challenges and how the firm overcame them.

PS Energy Group also took the opportunity to reveal updates on the expansion of its barge fleet and new sustainable bunker fuel products through the firm’s subsidiary, coastal and marine bunkering business, CNC Petroleum.

MT: What company milestones have PS Energy and CNC Petroleum achieved in 2022 and why are these developments significant to the companies?

PS Energy Group has achieved several milestones in 2022. Our digitalisation efforts, with our cloud- based business platform, has been implemented from top to bottom, in both our inland arm, PS Energy and coastal and marine bunkering business, CNC Petroleum. It enabled us not just to sustain our business despite the difficult market conditions but to scale within and outside Singapore. It is integral to the company’s digital fuel distribution services by providing one convenient digital platform for our entire operations including sales, finance, order processing, fuel deliveries, supply tracking and management, and customer services.

Our exponential growth was recognised, with us being bestowed with the Enterprise 50 (E50) award last year, as well as our inclusion in the Top Fastest Growing Companies in 2023 by The Strait Times.

Other remarkable milestones include expanding our fuel offerings into sustainable fuel and the acquisition last year of an additional barge, CNC 5, further strengthening our footprint in the coastal bunkering segment in Singapore.

All these are significant milestones, and we expect them to support and sustain our growth trajectory in the coming years.

MT: How have these developments in 2022 led to the business direction for 2023?

Some of what we have accomplished last year are the fruits brought by executing our multiple-year growth plans started in 2019. Our business direction for this year is to continue executing all these, including our digital transformation, market expansion through strategic acquisitions and internationalisation, and expansion into sustainable fuels.

MT: What is the business direction, in regard to bunkering, for 2023 and why is this the planned route?

The same is happening in our bunkering business, where we continue to execute these growth plans. For example, we are planning to upgrade our 566 mt capacity Marine Dignity with a larger capacity barge to cater to the additional market demand. In terms of our digitalisation strategy, we are launching a marine bunkering app, to improve transparency and our customer service. We have also very recently expanded our sustainable bunker fuel offerings to the coastal and marine market with our MGO B7 and MGO B20 biodiesels.

MT: How long has the company taken to decide on the planned route? What are the challenges and solutions embarking on this path?

We have embarked in digitalising our business as far back as 2014 when we implemented an advanced delivery and management system (ADAMS). In 2019, we accelerated the growth of the company after completing our buyout from NSL. That year saw us joining the inaugural Enterprise Singapore (ESG) Scale-up Programme, which was instrumental for our multiple year growth plans. The steps we did in the last three years helped us counter the upheavals and very difficult market conditions caused by the COVID-19 pandemic and the unprecedented oil price volatility brought by the Russia-Ukraine war.

MT: Does the business environment in Singapore promote the path of PS Energy and CNC Petroleum and what are the contributing factors making it so?

The Singapore oil and gas sector is one of the largest in the world and it has a very established industry, ecosystem, and players. We are able to fill a gap in the industry value chain, specifically in the last mile fuel distribution. It was an area that wasn’t served well enough by the major players. That niche cleared the path for our business model. There’s opportunity to scale and the market demands innovation in fuel distribution including digital delivery services. Most recently, in line with the MPA circular to support the use of sustainable fuel in the industry, we have also started to offer sustainable bunker fuels through one of our floating kiosks, the first company in Singapore to do so.

Finally, the financial and continuous support of our anchor bank, UOB, as well as different Singapore government agencies such as the Enterprise Singapore has also helped tremendously in making our business thrive.

MT: In the area of your expertise, what is your bunker industry forecast for 2023?

Compared to the last three years, we see 2023 as a much better year for our business. As we focus more on last mile fuel distribution, we foresee the demand in this sector to be very stable this year. Uncertainties and volatility in the market will continue because of the Russia-Ukraine war and banks will continue to be cautious of the market. However, all these we are able to capitalise on, and actually highlights the advantages of our digitalisation transformation.

Photo credit: PS Energy Group
Published: 16 February, 2023

LNG Bunkering

Singapore: MPA launches EOI to expand LNG bunkering services amid growing demand

MPA is seeking proposals to explore scalable solutions for sea-based LNG reloading to complement existing onshore LNG bunkering storage and jetty capacities and e/bio-methane supply as a marine fuel.

Published

1 day ago

December 13, 2024

Admin

The Maritime and Port Authority of Singapore (MPA) has launched an Expression of Interest (EOI) to explore scalable solutions for sea-based liquefied natural gas (LNG) reloading to complement the existing onshore LNG bunkering storage and jetty capacities and the supply of e/bio-methane as marine fuel in the Port of Singapore.

MPA said LNG bunkering in Singapore has grown from 16,000 tonnes delivered in 2022 to over 385,000 tonnes delivered from January to October 2024.

According to the EOI, demand for LNG bunkering is expected to grow further with a growing global fleet of LNG dual-fuelled vessels and competitive LNG bunker prices.

“The EOI seeks to gather proposals on three areas: to scale up sea-based reloading operations, including ship-to-bunker barge LNG operations; to facilitate the supply of LNG alternatives such as liquefied bio-methane; and to develop floating platform concepts to enhance bunkering safety and efficiency,” MPA added.

“The EOI proposals should also include mitigation measures to address the issue of methane slip on a well-to-wake basis.”

Participants in the EOI do not need to be an existing LNG bunkering licensee. Participants are required to propose models for operationalising sea-based LNG reloading starting from 2025. Participants selected will be required to conduct trials in Singapore to validate the proposed solution’s operational feasibility and safety.

“Insights gained from the EOI and trials will inform MPA’s review of the LNG licensing framework, including enhancements to supply to better serve the industry’s bunkering needs,” it said.

Note: Interested parties can visit the MPA website for details and submission guidelines. Proposals must be submitted by 28 February 2025, 1pm (Singapore time).

Photo credit: Manifold Times
Published: 13 December, 2024

LNG Bunkering

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Firm will supply cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel currently being built at Nantong CIMC Sinopacific Offshore & Engineering shipyard in China.

Published

1 day ago

December 13, 2024

Admin

Wärtsilä wins LNG systems order for Vitol bunkering newbuild vessel

Wärtsilä Gas Solutions, part of technology group Wärtsilä, on Friday (13 December) said it has won a contract to supply Cargo Handling and Fuel Gas Supply systems for a new 12,500 m3 LNG bunkering vessel.

The vessel is being built at the Nantong CIMC Sinopacific Offshore & Engineering shipyard in China, for global energy company Vitol.

“Wärtsilä’s ability to engineer, design and deliver a complete system, including the Boil-Off Gas (BOG) management, integrated fuel supply, custody transfer and bunkering transfer systems, was central to the contract award,” Wärtsilä said, adding the order was booked by the company in Q4, 2024.

Richie Zhu, Sales Manager, Wärtsilä Gas Solutions, China, said: “LNG is today an important marine fuel and is rapidly becoming the preferred choice for owners and operators seeking more sustainable fuel options. The market for LNG bunkering vessels is increasing in line with this trend, and we have established a leading position in supplying modern and reliable systems that optimise overall cargo handling efficiency for such vessels.”

Manifold Times previously reported Vitol securing three LNG Bunkering Vessels (LNGBV) through its shipping company, Vitol International Shipping Pte Ltd (VIS).

The vessels were secured via a seven to ten year time charter agreement with Avenir LNG Limited (Avenir) and an order for two vessels at the CIMC Sinopacific Offshore & Engineering Co. Ltd shipyard in Nantong, China.

The time charter agreement with Avenir is for one newbuild 20,000 m3 LNGBV. The time charter will commence at delivery from the shipyard in China in Q4 2026 and will serve a period of seven years with options to extend up to ten years in total.

Vitol also ordered one 12,500 m3 and one 20,000 m3 LNGBV at the CIMC SOE shipyard in China. The vessels will be delivered in Q4 2026 and Q3 2027 respectively.

Photo credit: Wärtsilä
Published: 13 December, 2024

Newbuilding

UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

Vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from CIMC Raffles Offshore Engineering.

Published

1 day ago

December 13, 2024

Admin

UECC deploys LNG dual-fuel newbuild “Blue Aspire” on key European route

United European Car Carriers (UECC) on Wednesday (11 December) said it has further expanded its fleet of eco-friendly car carriers with the addition of the dual-fuel LNG newbuild Blue Aspire.

The vessel is set to boost vessel capacity on its key European North-South trading network from mid-December this year after recent delivery from a Chinese shipyard.

The 200-metre long Pure Car and Truck Carrier (PCTC), delivered from CIMC Raffles Offshore Engineering, has capacity for nearly 7000 vehicles on 12 cargo decks.

UECC will operate the vessel together with another five vessels on a route between the Mediterranean and Northern Europe, traversing the Turkish ports of Yenikoy and Autoport, the German port of Cuxhaven, and Zeebrugge, Belgium every 4.5 days.

“Deployment of the Blue Aspire will boost tremendously capacity and sailing frequency on this busy trade route, currently serviced by five vessels, while further enhancing the sustainability of the UECC fleet,” said the company’s COO Per Christian Mørk.

The latest fleet addition will increase to six the number of UECC-operated vessels plying the North-South network, taking in a total of 10 ports on two routes, after the recent deployment of the renamed Auto Way that was acquired by UECC’s joint owner Wallenius Lines from Höegh Autoliners earlier this year.

It will also boost the size of UECC’s owned and chartered fleet to 15 PCTCs, including five dual and multi-fuel LNG vessels - three with battery hybrid capability - delivered in the past decade, with another two multi-fuel LNG newbuilds currently on order that are set for delivery in 2028 and options for two similar units.

“We are expanding our fleet with greater capacity and cargo-carrying flexibility to provide a more efficient service for clients in response to increasing demand as we see longer-term growth potential in this market,” Mørk explained.

Mørk said sustainability is now a key priority in procurement of maritime transport services to meet the environmental goals of vehicle manufacturers amid new green regulations - including FuelEU Maritime and the EU ETS - that provide a commercial incentive to reduce the cost of GHG emissions.

“UECC is catering to this market requirement with an eco-friendly fleet geared to minimizing the environmental footprint of vessel operations with progressive reductions in carbon intensity, in line with regulation, through adoption of energy-efficient technologies and alternative fuels,” he says.

Mørk noted that, while LNG can reduce emissions by around 25% compared with conventional fossil fuels, there is potential to greatly enhance environmental performance on LNG-fuelled vessels like Blue Aspire by switching to liquefied biomethane (LBM) that offers net-zero potential.

UECC is now increasing application of the latter fuel on its dual-fuel LNG PCTCs after recently securing an LBM supply agreement with Titan Clean Fuels that is forecast to cut its overall fleet emissions by 75,000 tons in 2025.

“The Blue Aspire therefore represents a valuable addition to the UECC fleet that underpins our market commitment to sustainability, while contributing to decarbonization of shipping,” Mørk concludes.

Photo credit: United European Car Carriers
Published: 13 December, 2024