Business
The Lab: Why bunker fuel oil analysis is more important than ever
Bunkers which are compliant with ISO 8217, may in fact contain contaminants, which can result in significant operational difficulties, including engine damage.
Published
2 years agoon
By
AdminThe Lab, the independent laboratory facility opened by leading multi-disciplinary technical and scientific consultancy Brookes Bell, on Tuesday (9 August) released an article elaborating the greater importance of bunker fuel analysis today following a surge in bunker fuel quality issues in recent months:
With rising fuel costs, supply chain disruptions resulting from the war in Ukraine, and the entry onto the market of sanction-breaking oil, fuel quality issues are becoming an increasing concern for vessel owners and operators. It’s an issue we’ve seen firsthand here at The Lab. As a result, bunker fuel oil analysis is becoming more important than ever.
The rise of bunker fuel oil quality issues
It’s difficult to discern one specific reason as to why there has been a surge in bunker fuel quality issues in recent months. Certainly, the current geopolitical issues, supply chain disruptions and impacts on oil and gas producers detailed at the outset of this article won’t be helping matters.
One potential reason for the rise in bunker fuel oil quality issues could be the use of cheaper, possibly sub-standard blending components which render bunker fuel off-specification. We’ve also seen instances where insufficient clarity concerning the clauses of ISO 8217, which leads to confusion as to what levels of contaminants are ‘acceptable’.
The point is that, no matter how bunker fuel quality issues arise, the fact is that they are arising - and vessel owners and operators should be aware and prepared.
Bunker alerts
When these contaminated bunkers are identified, a bunker alert is issued by VPS - who continually monitor global fuel quality and fuel oil trends in various ports around the world.
It’s these bunker alerts which prove there has been a noticeable surge of contaminated bunkers onto the world market - with 60% more bunker alerts issued this year compared to last (note - VPS will issue a bunker alert when they have identified an off-spec parameter for three vessels within one week for the same port).
Of the bunker alerts issued by VPS in 2022, these have covered eight different ports for nine different parameters.
Some of these bunker alerts have been related to sizable incidents. Arguably the largest occurred in Singapore in March of this year, where chemically-contaminated bunker HSFO fuel was delivered to over 200 vessels.
According to reports, this resulted in major operational problems for 80 vessels - which has resulted in ongoing litigation over claims for compensation.
Bunker testing and specifications
What’s perhaps most shocking about the large-scale bunker contamination outlined above, is the point that Singapore - as the world’s largest bunkering port - has rigid sample testing procedures, governed by the Singapore Code of Practice for Bunkering (SS 600).
What’s more, these testing procedures were developed by the Maritime and Port Authority of Singapore and the Technical Committee for Bunkering under the purview of the Singapore Chemical Industry Council.
According to reports, the contamination has its roots in ‘Estonian type oil shale’ and ‘US type fracked shale oil’, with the principal contaminants being styrene and phenol.
Even more concerning, the off-spec, contaminated bunkers were not detected by the ISO 8217 testing requirements.
This is a crucially important point for vessel owners, operators and charterers to absorb - even bunkers which are compliant with ISO 8217, may in fact contain contaminants, which can result in significant operational difficulties, including engine and other component damage.
A note on biofuels
Contaminants from poor cutter stocks or bad (or deliberate) blending practices aren’t the only thing vessel owners need to worry about.
With an increasing volume of biofuels making their way onto the open market we are seeing a rise in cases of microbial contamination - this is because the fatty acid methyl esters in biofuels are hygroscopic, meaning they attract and absorb moisture.
Should your vessels be using biofuels then, it’s vital that the fuel system is kept as clean and dry as possible.
The consequences of bunker contamination
It’s important not to understate the potential negative consequences of taking on off-spec bunker fuel. Although it can be possible to burn off contaminated fuel, this isn’t always possible depending on the level and type of contamination.
In the worst case scenarios, taking on off-spec bunker fuel can result in asset damage, such as piston ring failure, cylinder liner damage, the deterioration of rubber seals, the accretion of solids on cylinder heads, the failure of gaskets and more. All of which can result in significant costs to remediate.
Damage to critical components can also lead to severe secondary consequences such as loss of propulsion, placing both the ship and crew at risk. This can impact on the safety of other vessels which may be navigating nearby, risking collisions and even groundings.
As you can see, what may seem like a single incident can quickly compound into several more.
It pays to take bunker contamination seriously.
What’s the solution?
If vessel operators must treat ISO 8217 with caution, what then is the solution?
Whilst there is talk of overhauling ISO 8217 to bring about stricter testing to identify contaminants before they pass a vessel’s manifold, as well as discussions concerning a bunker supplier licensing scheme - vessel owners and operators are advised not to wait for these developments.
Instead, prevention should be the order of the day.
Here at The Lab we strongly recommend a proactive approach to fuel management and testing.
We can carry out the full range of ISO 8217 Table 2 testing, supplemented by gas chromatography - mass spectrometry analysis (GC-MS), fourier transform infrared spectroscopy (FTIR), cleanliness and compatibility testing, and more.
Photo credit: The Lab at Brookes Bell
Published: 16 August, 2022
Biofuel
Argus Media: Bunkering sector needs deeper dive into B24 bio bunker fuel market
‘As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector,’ says Mahua Chakravarty of Argus.
Published
20 hours agoon
October 4, 2024By
AdminAhead of Argus Asia B24 Forum, Manifold Times interviewed Mahua Chakravarty, Head of Marine Fuels Pricing (Asia) of independent global energy and commodity market intelligence provider Argus Media; she explains the growing prominence of B24 bunker fuel in the marine sector and believes it is imperative for the bunkering sector to deepen its knowledge on it:
MT: Why is it important for the bunkering sector to know more about the B24 bunker fuel market?
B24 has emerged as the first alternative marine fuel that allows ship-owners and charterers a drop-in fuel option, and make greenhouse gas (GHG) savings, for their voyages into EU and territorial waters.
It has proved to be the most practical solution for ship-owners that eliminates costly retrofitting charges. The easy availability of used cooking oil methyl ester (UCOME) as a blendstock from China and southeast Asia, also adds to its overall attractiveness as an alternative fuel.
B24 consumption in the port of Singapore recorded multi-fold jumps to touch 518,000t in 2023 as ship-owners fuelled for trials in preparation for the implementation of EU-led mandates like the EU Emissions Trading Scheme (ETS) and the Carbon Intensity Index (CII) rating. In 2024, B24 demand has continued to grow with 377,800t of consumption seen up to August, according to statistics from the Maritime and Port Authority of Singapore (MPA).
As we advance into 2025, the need to understand how B24 matures in terms of market fundamentals, pricing and dynamics will be a key indicator for the marine sector. Being the first generation of new marine fuels, B24 has shown the way that biofuel blends can provide a solution for ship-owners/charterers to meet compliance mandates set by the EU and IMO.
MT: Why has Argus developed its own B24 Singapore price index? What's so special about it and why should the industry adopt it as a benchmark?
Argus was the first to launch its spot B24 delivered on board (DOB) Singapore assessment in January 2023, thus introducing price discovery for this market at its point of inception. The past 1.5 years of daily price assessments of B24, using a robust market survey approach, has built Argus’ understanding of this market from the start.
We have seen the growth of liquidity and the quest among refiners, traders, ship-owners to find pricing solutions for a nascent market. We have been at the forefront of capturing spot liquidity growth and in assessing prices for this market.
This index is now considered a key price assessment by key refiners, traders, ship-owners and other stakeholders in the market.
MT: What takeaways can each segment of the bunkering sector such as bunker buyers, bunker traders, and shipowners receive from the upcoming Argus B24 forum?
The Argus B24 Asia Forum is aimed at showcasing some of these learnings by a global team that covers key markets like Singapore, China and Europe. Our global team will present their insights on the key trends driving demand for marine biodiesel globally.
As the marine sector marches onwards with the bunkering of higher biofuel blends, this forum will allow the audience to reflect on the key factors that have driven the marine biodiesel sector. It will provide insights to make better decisions about infrastructure, pricing, feedstock-related issues and what blends are likely to be prevalent in the coming year.
We will be hosting a panel discussion at this forum that will include key players driving the marine biodiesel space in Singapore and other regions.
The Argus Asia B24 Forum will be held in The Village Hotel (The Events Centre by Far East Hospitality), Sentosa, Singapore (Google Maps) on 8 October between 4.00pm to 7.00pm Singapore Time.
Participants are encouraged to register for the free event via the custom link here.
Related: Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector
Photo credit: Argus Media
Published: 4 October 2024
Bunker Fuel
Brazil: Raízen launches new bunkering operation in Itaqui
Operation will support both coastal and oceangoing vessels at Off Port Limits, allowing the firm’s customers to avoid full port call fees and unnecessary deviations, says Paula Georgopoulos Tinoco.
Published
20 hours agoon
October 4, 2024By
AdminBrazilian energy firm Raízen has launched its new bunkering operation in Itaqui at the Outer Anchorage Area, according to Paula Georgopoulos Tinoco, Bunker Sales Coordinator at Raízen on Wednesday (3 October).
The firm is providing local supplies for the grades VLSFO380 (max. 0.5%S) and LSMGO DMA (max. 0.1%S).
“The new bunkering operation will support both coastal and oceangoing vessels with different sizes and class at the Off Port Limits, allowing our customers to avoid full port call fees and unnecessary deviations at different bunkering ports,” she said in a social media post.
In September last year, Bunker Holding subsidiary Bunker One announced that it partnered with Acelen, the largest bunker producer in the Brazilian state of Bahia, to offer the only outer anchorage bunkering operation in Brazil at the time.
Starting September 2023, vessels such as large cargo ships and tankers can be supplied in the anchorage area of the Port of Itaqui in São Marcos Bay (MA).
Related: Brazil: Bunker One and Acelen partner to launch bunkering operation outside Port of Itaqui
Photo credit: Raízen
Published: 4 October, 2024
Business
Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer
Oberholtzer, a finance executive with over 25 years of experience, joins Infineum from Shell, where he has held various senior positions including Senior Vice President of Shell Finance for Chemicals and Products.
Published
20 hours agoon
October 4, 2024By
AdminInternational fuel additives company Infineum on Thursday (3 October) announced the appointment of Mr. Rahim Oberholtzer as the new Chief Financial and Strategy Officer, effective 1 October.
Oberholtzer will succeed Mr. Philippe Creteur, who has retired at the end of September 2024, after 18 years of dedicated service to Infineum.
Oberholtzer, a seasoned finance executive with over 25 years of diverse experience, joins Infineum from Shell, where he has held various senior positions. His most recent role was Senior Vice President of Shell Finance for Chemicals and Products.
During his career, Oberholtzer has acquired extensive expertise in public accounting, investment banking, and trading. He began his professional journey at KPMG in San Francisco as an auditor. He then moved on to Merrill Lynch, focusing on mergers and acquisitions and equity offerings within the energy sector, ultimately serving as Head of Structured Finance at Merrill Lynch Commodities.
In 2011, he joined Shell’s Mergers and Acquisitions team in the U.S., leading key projects such as the launch of Shell Midstream Partners and the Eagle Ford divestment. He subsequently managed finance teams in Trading & Supply, covering European Gas & Power, Global Crude, and Global Products & Operations.
Infineum CEO Aldo Govi, said: “We are deeply grateful for Philippe’s years of dedication and excellent contribution to Infineum. At the same time, I am thrilled to welcome Rahim to our corporate leadership team.”
Photo credit: Infineum
Published: 4 October, 2024
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