Korea: KSA and SK Energy start supplying bunker fuel in overseas ports

Korea Shipping Association (KSA), which represents small and mid-sized South Korean shipping companies, said it has started supplying bunker fuel SK Energy in overseas ports from Monday (1 August). 

The association and SK Energy have been conducting a pilot operation of overseas fuel oil supply in Thailand since May, and will begin full-scale overseas fuel oil supply in five Asian regions, including Taiwan, Hong Kong, Thailand, Japan, and Singapore, starting in August following the completion of the pilot operation.

Currently, overseas fuel oil supply is available in Taiwan, Hong Kong, and Thailand, and will be expanded to Japan and Singapore in the second half of this year. 

The types of oil supplied are LSFO (0.5% or less) and LSMGO (0.1% or less), and the supply price is applied separately depending on the region and volume.

“Through this new overseas fuel oil supply business promoted by the association, not only will it be possible to secure stable fuel oil supply for the association members in terms of quantity, quality, and on-time supply compared to the existing overseas supply chain, but it will also be possible to resolve supply-related claims promptly through the association and the oil refinery,” the association said. 

In addition, the foreign currency payment and credit supply system implemented by the association to strengthen management support for the association members are expected to help reduce the operating costs of the association members.

The association announced that while expanding the petroleum supply business through overseas fuel oil supply, it will also gradually proceed with preparations for the transition to an eco-friendly alternative fuel oil business in the future.

Photo credit: Lauren Seo on Unsplash
Published: 5 August, 2024