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Bunker Fuel

Revitalising JCT Oil Bank will be key to unlock Sri Lanka potential in bunkering

Dr. Prabath Weerasinghe, a Senior Lecturer at University of Ruhuna, says analysts predict the country can generate about USD 5 billion annually from bunker fuel operations by 2030 if improvements are made to JCT Oil Bank.

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Dr. Prabath Weerasinghe, a Senior Lecturer of the Department of Electrical and Information Engineering Faculty of Engineering at University of Ruhuna, shared that analysts predict the country can generate about USD 5 billion annually from bunker fuel operations by 2030 with a focused investment and improvements to Jaya Container Oil Bank Terminal (JCT Oil Bank):

Sri Lanka, strategically positioned on one of the busiest maritime routes in the world, holds immense potential to become a leading regional bunkering hub. Experts suggest that with targeted infrastructure upgrades and strategic policy initiatives, the country can generate nearly USD 5 billion annually from bunker fuel operations by 2030. The key lies in revitalising the Jaya Container Oil Bank Terminal (JCT Oil Bank) to match regional standards and meet the growing global demand for efficient bunkering services.

The Jaya Container Oil Bank Terminal, once seen as a critical asset for Sri Lanka’s maritime economy, has faced years of neglect, underutilisation, and inadequate capacity expansion. Despite its strategic location adjacent to the busy Port of Colombo, the terminal operates well below its potential. Competitors like Singapore, Fujairah, and Indian ports have surged ahead, offering large-scale fuel storage facilities, efficient refuelling systems, and world-class operational infrastructure.

The lack of consistent investment, outdated technology, and limited storage capacity at JCT Oil Bank has deterred major shipping lines and bunker operators from considering Sri Lanka as their preferred choice for refuelling.

The USD 5 Billion Vision

With global shipping volumes projected to grow steadily, the demand for bunker fuel is expected to rise exponentially. Analysts predict that with focused investment in the JCT Oil Bank Terminal, Sri Lanka could capture a significant share of the Indian Ocean bunkering market, generating approximately USD 5 billion annually by 2030.

Key improvements required to achieve this goal include:

  • Increased Storage Capacity: Expanding storage facilities to accommodate both conventional and sustainable fuels like LNG and biofuels.
  • Enhanced Distribution Networks: Modernising fuel delivery systems to reduce refuelling times and increase efficiency.
  • Policy and Regulatory Clarity: A transparent and investor-friendly policy framework to attract global players.
  • Technological Upgrades: Adoption of digital systems to streamline inventory management and improve transaction transparency.

Regional Competition: The Need for Urgency

Regional competitors like Singapore have set benchmarks in bunker fuel supply, handling nearly 50 million metric tons of bunker fuel annually. Ports in India, UAE, and Malaysia are also scaling up their bunkering capacities with substantial government backing. If Sri Lanka delays infrastructure upgrades, it risks losing market share to these emerging competitors.

Government and Private Sector Collaboration

Achieving this ambitious target requires strong collaboration between the government and private sector stakeholders. Private investment in storage infrastructure, technology integration, and distribution systems will play a crucial role. Simultaneously, the Sri Lanka Ports Authority (SLPA) must ensure that red tape is minimised, and strategic policies are implemented effectively.

The International Maritime Organisation (IMO) has set strict emission targets for the shipping industry. As a result, the demand for clean fuels like LNG, biofuels, and green ammonia is expected to rise significantly. If Sri Lanka can position the JCT Oil Bank Terminal as a hub for sustainable fuel distribution, it will secure a long-term competitive advantage in the global bunkering market.

The Roadmap to 2030

  • Short-term (2024-2026): Immediate expansion of storage capacity and improvement of refuelling facilities.
  • Medium-term (2026-2028): Adoption of advanced technologies and digital systems for seamless operations.
  • Long-term (2028-2030): Integration of sustainable fuel infrastructure and establishment of global partnerships.

Sri Lanka stands at a critical juncture. The Jaya Container Oil Bank Terminal is not just a piece of infrastructure—it represents a multi-billion-dollar economic opportunity. With the right mix of policy direction, strategic investment, and sustainable practices, Sri Lanka can re-establish itself as a leading bunkering hub in the Indian Ocean.

If the government prioritises the revival and expansion of the terminal, the country could unlock an annual revenue stream of USD 5 billion by 2030, boosting foreign exchange reserves, creating employment opportunities, and driving long-term economic stability. The time to act is now—delays will only allow regional competitors to widen the gap further.

 

Photo credit: Chathura Anuradha Subasinghe on Unsplash
Published: 9 January, 2025

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Bunker Fuel

Viroque Energy completes its first physical bunker supply operation in Colombia

Significant milestone involved the logistics coordination and delivery of 416 mt of VLSFO to an international client in an operation in Cartagena de Indias, Colombia.

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Viroque Energy completes its first physical bunker supply operation in Colombia

Energy firm Viroque Energy, a new supplier for bunker services in South America, on Monday (13 January) said it successfully completed its first physical bunker supply operation in Cartagena de Indias, Colombia. 

The significant milestone involved the logistics coordination and delivery of 416 mt of Very Low Sulphur Fuel Oil (VLSFO) to an international client. 

The company said the operation reinforced its worldwide operational coverage and commitment as maritime industry suppliers in ‘one of Latin America’s most dynamic spots in terms of trading and commerce’.

“As part of our mission to provide high-quality marine fuels, this achievement reflects our dedication to supporting shipowners and maritime clients with efficient, high-quality, and reliable solutions tailored to their needs, now in America,” it said in a social media post. 

Viroque Energy’s portfolio includes VLSFO and Marine Gas Oil (MGO). 

Note: For inquiries or further details, contact [email protected].

 

Photo credit: Viroque Energy
Published: 15 January, 2025

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Alternative Fuels

Höegh Autoliners names LNG-powered RoRo ship “Höegh Sunlight” in China

Firm’s fourth Aurora Class newbuild “Höegh Sunlight” began its LNG-powered maiden voyage to Europe, fully loaded with Chinese cargo after a naming ceremony at Taicang Haitong Auto Terminal.

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Höegh Autoliners names LNG-powered RoRo ship before commencing first voyage

Höegh Autoliners on Tuesday (14 January) said its fourth Aurora Class newbuild, Höegh Sunlight, was named at a ceremony at Taicang Haitong Auto Terminal. 

The 9,100 CEU Höegh Sunlight commenced its LNG-powered maiden voyage to Europe, fully loaded with Chinese cargo, shortly after the fireworks. 

“We now have four of the world’s largest and most environmentally friendly car carriers sailing the seas,” the firm said in a social media post. 

“Today’s celebrations are not only marking the handover of a ship; they once again underline our relentless quest toward a greener future—and a transformed industry.”

Höegh Autoliners names LNG-powered RoRo ship “Höegh Sunlight” in China

The Höegh Sunlight will reduce carbon emissions by 58 percent per transported car compared to the current industry average. 

In 2027, when the first Aurora is powered entirely by clean ammonia, nearly all carbon emissions will be eliminated. 

CEO, Andreas Enger, said: “Taking delivery of four of the world’s largest and most environmentally friendly PCTCs within six months is a decisive step to renew the company and our industry. We are pleased to celebrate this milestone with customers and partners during her first cargo operation in Taicang.” 

COO, Sebjørn Dahl, said: “Never in our nearly 100-year history have we built so many vessels in one newbuild programme, such large vessels, so technically advanced, so green, and so many at the same time and at this speed. We are indeed an agile, bold, and professional team at Höegh Autoliners.”

 

Photo credit: Höegh Autoliners
Published: 15 January, 2025

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Bunker Fuel Availability

ENGINE: East of Suez Bunker Fuel Availability Outlook (14 Jan 2025)

Availability is good for all grades in Zhoushan; several South Korean ports brace for weather disruptions; availability is good in Sri Lankan ports.

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RESIZED ENGINE East of Suez

The following article regarding regional bunker fuel availability outlook for the East of Suez region has been provided by online marine fuels procurement platform ENGINE for publication on Singapore bunkering publication Manifold Times:

  • Availability is good for all grades in Zhoushan
  • Several South Korean ports brace for weather disruptions
  • Availability is good in Sri Lankan ports

Singapore and Malaysia

VLSFO availability remains tight in Singapore, with standard lead times of about 10 days, similar to last week. Expedited deliveries within five days are available but at higher prices. HSFO lead times remain steady at 5-9 days, while LSMGO lead times have been revised to 3-9 days from 3-11 days last week.

According to Enterprise Singapore, residual fuel oil stocks in Singapore have averaged 6% lower so far this month compared to December. Fuel oil stocks have decreased to just over 21 million bbls, driven by a sharp 31% drop in the port's net fuel oil imports this month. Imports have fallen significantly by 1.10 million bbls, while exports have risen by 542,000 bbls. Middle distillate stocks in the port have also declined, averaging 15% lower this month.

At Malaysia's Port Klang, VLSFO and LSMGO supplies are abundant, with prompt small-quantity deliveries readily available. However, HSFO supply remains constrained.

East Asia

Lead times in Zhoushan remain steady for VLSFO at 3-5 days, similar to last week. LSMGO lead times have improved from six days last week to 3-5 days now, while HSFO requires 4-7 days.

Bunkering operations at Zhoushan's Tiaozhoumen and Xiazhimen outer anchorages have resumed from Monday, after being suspended for six days due to bad weather, according to a source. All anchorages in Zhoushan are now fully operational.

In Northern China, Dalian and Qingdao ports have ample VLSFO and LSMGO supplies, though Qingdao faces limited HSFO availability. HSFO and VLSFO supplies are tight in Tianjin, while LSMGO supply remains steady.

In Shanghai, LSMGO is readily available, but VLSFO and HSFO supplies are constrained. Fuzhou has strong supplies of both VLSFO and LSMGO grades, while Xiamen has good VLSFO availability but restricted LSMGO supply. Prompt deliveries of both grades remain limited at Yangpu and Guangzhou.

In Hong Kong, lead times for all fuel grades are around seven days, consistent with recent weeks. The port is forecast to experience bad weather conditions on Wednesday, which could disrupt bunker deliveries.

In Taiwan, Hualien and Taichung ports have stable VLSFO and LSMGO supplies with lead times of around two days, unchanged from last week. In Keelung, lead times of 2-3 days are recommended. At Kaohsiung, VLSFO lead times are approximately two days, but LSMGO deliveries remain challenging due to ongoing barge maintenance since late December.

Availability of all grades remains strong across South Korean ports despite high demand, with several suppliers recommending lead times of around three days, down from 4-6 days last week. However, intermittent rough weather expected this week may disrupt bunkering operations at Ulsan, Onsan, Busan, Daesan, Taean and Yeosu.

In Japan, VLSFO is readily available in major ports such as Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya and Yokkaichi, though prompt availability is limited in Mizushima. LSMGO supply is generally stable, but securing prompt deliveries can be difficult in Tokyo, Chiba, Yokohama, Kawasaki, Osaka, Kobe, Sakai, Nagoya, Yokkaichi, and Mizushima. HSFO supply is tight in all ports, and in Oita, all fuel grades are subject to availability.

In Vietnam, Hai Phong and Vung Tau ports have robust VLSFO and LSMGO supplies, with prompt deliveries readily available.

Subic Bay in the Philippines may experience inclement weather from 15-16 January, potentially disrupting bunkering operations. Similarly, adverse weather conditions could impact bunkering in Thailand's Koh Sichang and Laem Chabang ports between 16 and 18 January.

Oceania

In Western Australia, the ports of Kwinana, Fremantle and Kembla have ample VLSFO and LSMGO supplies, with typical lead times of 7-8 days. In New South Wales, Sydney has sufficient LSMGO availability, while HSFO may require longer lead times.

Victoria’s ports, Melbourne and Geelong, have abundant stocks of VLSFO and LSMGO, but securing prompt HSFO deliveries can be difficult. In Queensland, Brisbane and Gladstone maintain adequate VLSFO and LSMGO supplies with lead times of 7-8 days, although HSFO availability in Brisbane remains limited.

In New Zealand, Tauranga and Auckland have enough VLSFO stocks. Auckland also has ample LSMGO supplies. However, rough weather is expected in Tauranga on 20 January, which could disrupt bunker operations.

South Asia

VLSFO and LSMGO availability remains limited at several Indian ports, including Kandla, Mumbai, Tuticorin, Chennai and Cochin, consistent with recent weeks. Both grades are subject to availability in Visakhapatnam, while a supplier in Paradip and Haldia is nearly out of stock.

Adverse weather in Kandla and Sikka ports may disrupt bunker operations on Thursday.

In Sri Lanka, lead times of around seven days are recommended for all grades at Colombo port, almost unchanged from last week. Bad weather is forecast for Saturday, which could impact deliveries.

In contrast, Hambantota's lead times for all grades have decreased from around six days last week, to just two days now.

Middle East

In Fujairah, prompt availability remains tight, with lead times for all grades steady at 5-7 days, unchanged from last week. Similarly, suppliers in Khor Fakkan are recommending lead times of 5-7 days for all grades.

In contrast, Jeddah port in Saudi Arabia has adequate supplies of both VLSFO and LSMGO. VLSFO supply remains under pressure in Djibouti, while LSMGO is more readily available.

Omani ports, including Sohar, Salalah, Muscat and Duqm, have ample LSMGO supplies with prompt deliveries available.

By Tuhin Roy

 

Photo credit and source: ENGINE
Published: 15 January, 2025 

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