Bunker Fuel

JLC China Bunker Fuel Market Monthly Report (May 2024)

Country sold about 1.62 million mt of bonded bunker fuel in May, with the daily sales slipping by 3.42% month on month to 52,416 mt due to tepid bunkering demand, according to JLC’s data.

Published

6 months ago

June 12, 2024

Admin

JLC China Bunker Market Monthly Report (May 2024)

Beijing-based commodity market information provider JLC Network Technology Co. recently shared its JLC China Bunker monthly report for May 2024 with Manifold Times through an exclusive arrangement:

Bunker Fuel Demand

China sees another fall in bonded bunker fuel sales in May

China saw another fall in its bonded bunker fuel sales in May, due to tepid bunkering demand, despite larger LSFO production.

The country sold about 1.62 million mt of bonded bunker fuel in the month, with the daily sales slipping by 3.42% month on month to 52,416 mt, JLC’s data indicates.

Bonded bunker fuel sales by Chimbusco and SinoBunker dropped to 480,000 mt and 55,000 mt in May, while those by Sinopec (Zhoushan) and China Changjiang Bunker (Sinopec) climbed to 590,000 mt and 36,000 mt, respectively. In the meantime, suppliers with regional bunkering licenses sold 463,900 mt of bonded bunker fuel, sliding from 468,100 mt in April, the data shows.

Though refiners ramped up LSFO production, the barge capacity at domestic ports was relatively tight amid lingering supervision of bunker barges, which dragged down the country’s bonded bunker fuel sales.

China’s bonded bunker fuel exports increase in April, but sales decline

China’s bonded bunker fuel exports continued to increase in April, but the actual sales decreased as bunkering demand was relatively weak and domestic refiners cut LSFO production.

The country exported 1.73 million mt of bonded bunker fuel in April, jumping by 321,100 mt or 22.74% month on month, with the daily exports significantly up by 26.83% to 57,777 mt, JLC estimated, with reference to data from the General Administration of Customs of PRC (GACC).

Heavy bunker fuel exports were about 1.64 million mt in the month, accounting for 94.41% of the total, while light bunker fuel exports were 96,900 mt, accounting for 5.59%.

However, the country’s bonded bunker fuel sales dropped in April, as domestic LSFO supply tightened when refineries’ unit maintenance peaked. Meanwhile, Chinese customs strengthened the supervision of bunker barges, dampening ports’ bunkering business to some extent. The country sold about 1.63 million mt of bonded bunker fuel in the month, with the daily sales down by 7.48% month on month to 54,270 mt, JLC’s data shows.

Bonded bunker fuel exports are not equal to bonded bunker fuel sales, as the exports refer to the volume of cargoes flowing into bonded tanks while the sales refer to the actual volume of bunkering.

On a year-on-year comparison, China’s bonded bunker fuel exports soared by 21.08% in April.

China exported a total of 6.17 million mt of bonded bunker fuel in January-April, slipping by 4.07% from the corresponding period in 2023. Specifically, heavy bunker fuel exports were roughly 5.80 million mt, accounting for 93.98%, while light bunker fuel exports were 371,400 mt, accounting for 6.02%.

JLC China Bunker Market Monthly Report (May 2024)

Domestic-trade heavy bunker fuel demand contracts in May

Domestic-trade heavy bunker fuel demand contracted in May, as the shipping market remained lukewarm. Domestic-trade heavy bunker fuel demand was estimated at 390,000 mt in the month, falling by 30,000 mt or 7.14% from the previous month, JLC’s data shows.

In contrast, domestic-trade light bunker fuel demand came in at 140,000 mt in May, up by 10,000 mt or 7.69% month on month. Shipowners increased their purchases as power generation demand picked up amid warmer weather.

Bunker Fuel Supply

China’s bonded bunker fuel imports fall in April

China’s bonded bunker fuel imports fell in April, as most distributors showed lower buying interest in bonded high-sulfur fuel oil (HSFO) when their inventory was relatively high.

The country imported about 341,000 mt of bonded bunker fuel in the month, a cut of 11.04% month on month and 17.61% year on year, JLC estimated, with reference to data from the GACC.

As Chinese Customs strengthened the supervision of bunker barges, the barge capacity at ports in East China declined and most companies saw a drop in their bonded bunker fuel sales, leading to a build-up of HSFO. In this case, distributors reduced purchases of bonded HSFO in April, dragging down the country’s total bonded bunker fuel imports.

However, certain distributors imported LSFO to meet demand when domestic supply tightened amid a traditional maintenance season. Chinese refiners produced about 1.23 million mt of LSFO in the month, with the daily output at 41,033 mt, down by 8.81% month on month, JLC’s data shows.

Singapore topped all bonded bunker fuel suppliers to China with 204,100 mt in April, accounting for 59.84% of the total. Malaysia and South Korea ranked second and third by exporting 105,700 mt and 31,300 mt of bonded bunker fuel to China, which accounted for 31.99% and 9.17% respectively.

China tallied a total of 1.31 million mt of bonded bunker fuel imports in January-April, soaring by 24.83% from the corresponding months in 2023, slowing down from a 52.60% surge in January-March.

JLC China Bunker Market Monthly Report (May 2024)

Domestic-trade bunker fuel supply continues to tighten in May

Domestic-trade bunker fuel supply continued to tighten in May, as low-sulfur residual oil supply decreased further and blenders’ blending interest was depressed by tepid shipping demand.

Chinese blenders supplied about 410,000 mt of heavy bunker fuel in the month, descending by 20,000 mt or 4.65% from the previous month, JLC’s data shows.

At the same time, domestic-trade MGO supply settled at 150,000 mt, a loss of 10,000 mt or 6.25% from a month earlier, the data shows. Refineries’ enthusiasm for MGO production was hit by falling diesel prices.

Bunker Prices,Profits

JLC China Bunker Market Monthly Report (May 2024)

Editor
Yvette Luo
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Sales (Beijing)
Tony Tang
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Sales (Singapore)
Ginny Teo
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JLC Network Technology Co., Ltd is recognized as the leading information provider in China. We specialized in providing the transparent, high-value, authoritative market intelligence and professional analysis in commodity market. Our expertise covers oil, gas, coal, chemical, plastic, rubber, fertilizer and metal industry, etc.

JLC China Bunker Fuel Market Monthly Report is published by JLC Network Technology Co., Ltd every month on China bunker market, demand, supply, margin, freight index, forecast and so on. The report provides full-scale & concise insight into China bunker oil market.

Note: China-based commodity market information provider JLC Technology has been providing Singapore bunkering publication Manifold Times China bunker volume data since 2020. Data from earlier periods are available here.

Photo credit: JLC Network Technology
Published: 12 June 2024

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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