Connect with us


Trafigura and partners complete live inventory financing on SGTraDex

Standard Chartered provided financing to Trafigura for its oil inventory stored by Advario, where Advario provided key data elements to enable execution of trade electronically via SGTraDex.




Trafigura and partners complete live inventory financing on SGTraDex

Trafigura, Standard Chartered and Advario on Tuesday ( 6 September) announced the completion of their first live electronic oil inventory financing via Singapore Trade Data Exchange (SGTraDex) – a common data infrastructure launched in June 2022 to facilitate trusted and secure data sharing across supply chains.

Standard Chartered provided financing to Trafigura for its oil inventory stored by energy storage company Advario, where Advario provided key data elements that enabled the execution of the trade electronically via SGTraDex. 

This paperless transaction was done by way of the Bank’s Structured Inventory Product (SIP), in which Standard Chartered obtained title of the oil purchased from Trafigura before selling it back to the leading global commodities trader within a pre-agreed timeframe. The transfer of title helped to free up Trafigura’s cash flow for a longer period of time.

Documents of transactions conducted on SGTraDex are verified using the TradeTrust framework and distributed ledger technology. The establishing of a SGTraDex data-sharing connection between oil terminals and financing banks on SGTraDex also ensures that timely and immutable inventory information is passed from the terminal to the bank without any risk of tampering or alteration.

The success of this transaction demonstrates the viability of electronic oil inventory financing in reducing the risks of double-financing and thereby helping to facilitate greater funds accessibility for a wider pool of traders, according to the companies. 

Stephan Jansma, Chief Financial Officer, Asia Pacific, Trafigura, said: “Trafigura is pleased to take a leading role in the digital transformation of commodity trade flows, together with Standard Chartered, one of our key banking partners, Advario and SGTraDex. We are working towards SGTraDex becoming a regular feature in the financing of our inventories in Singapore and other import and export flows.”

Patrick Lee, Cluster CEO, Singapore and ASEAN Markets (Malaysia, Vietnam, Thailand and Representative Offices), Standard Chartered, said: “We are proud to partner with Trafigura and Advario in executing our first live electronic oil inventory financing via the SGTraDex digital infrastructure. The success of this significant transaction underscores Standard Chartered’s commodity finance capabilities and demonstrates our commitment to supporting the growth and development of a secure and transparent digital supply chain ecosystem. Together we can play a key role in enhancing Singapore’s competitiveness as an international trade and commodity finance centre.”

Antoine Cadoux, CEO, SGTraDex, said: “We would like to congratulate Standard Chartered, Trafigura and Advario on their first live transaction on SGTraDex. All parties have been instrumental in developing our digital infrastructure and use cases. We look forward to our continued collaboration to drive adoption and develop new use cases across the industry. We are confident SGTraDex, with our mantra of openness, interoperability and security, has much to offer to ecosystem partners.”

Snehashish Chatterjee, Vice President, Advario S.E.A., said: “Advario is proud to be an integral part of providing reliable and trusted data via SGTraDex’s data sharing infrastructure in order to facilitate the secure and seamless trade of commodities. We look forward to developing this offering with key partners such as Trafigura and Standard Chartered and the wider industry.”

The firms said the successful transaction marks a major milestone in bringing actionable solutions to the ecosystem and will further boost Singapore’s status as a key global and regional trade hub.

Manifold Times previously reported on bunker suppliers utilising SGTraDex for their bunkering transactions. 

Singapore-based financial services group DBS on 2 June reportedly completed its first live transaction that was done by way of an electronic bunker delivery note on SGTraDex. 

On 3 June, Manifold Times reported Singapore bunker supplier Equatorial Marine Fuel Management Services Pte Ltd connected one third of its bunker tanker fleet to SGTraDex. 

Related: Kenoil Marine Services and DBS complete first live transaction on Singapore Trade Data Exchange (SGTraDex)
Related: Equatorial Marine Fuel links one third of bunker tanker fleet to SGTraDex in push towards trust & transparency
Related: MPA awards close to SGD 3 million to fund eight digital bunkering projects
Related: Singapore: Players complete first ‘live’ bunker delivery financing pilot with eBDN


Photo credit: Trafigura
Published: 7 September 2022

Continue Reading


Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Firm ordered a 65,700-dwt methanol dual-fuel dry bulk carrier with Tsuneishi Shipbuilding; MOL signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027.





Kambara Kisen orders methanol dual-fuel bulker from Tsuneishi Shipbuilding

Japanese shipowner Kambara Kisen has ordered a 65,700-dwt methanol dual-fuel dry bulk carrier newbuilding from Tsuneishi Shipbuilding Co., Ltd, according to Mitsui O.S.K. Lines (MOL) on Wednesday (20 September).

MOL said it signed a basic agreement on time charter for the newbuilding that is slated to be delivered in 2027. 

The vessel will be designed to use e-methanol produced primarily by synthesising recovered CO2 and hydrogen produced using renewable energy sources, and bio-methanol derived from biogas. 

The vessel's design maximises cargo space while ensuring sufficient methanol tank capacity set to allow the required navigational distance assuming various routes, at the same time maximising cargo space. 

MOL added the vessel is expected to serve mainly in the transport of biomass fuels from the east coast of North America to Europe and the U.K. and within the Pacific region, as well as grain from the east coast of South America and the U.S. Gulf Coast to Europe and the Far East.

Details on the time-charter contract:

Shipowner: Kambara Kisen wholly owned subsidiary
Charterer: MOL Drybulk Ltd.
Charter period 2027: -

Details on the newbuilding methanol dual fuel bulk carrier:

LOA: About 200 m
Breadth: About 32.25 m
Draft: About 13.80 m
Deadweight: About 65,700 MT
Hold capacity: About 81,500m3
Shipyard: Tsuneishi Shipbuilding Co., Ltd.

Photo credit: Mitsui O.S.K. Lines
Published: 22 September, 2023

Continue Reading


Argus Media: Alternatives may drive methanol market growth

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand, according to Argus.





RESIZED Argus media

The growth of sustainable alternatives to traditional methanol production sources likely will shape the market over the next several years, industry leaders said this week at the Argus Methanol Forum.

20 September 

Driven by low-carbon policies and regulations, the transportation sector — especially the marine fuels industry — could be a source of heightened demand.

"The aim is to be net zero by 2050 but [those solutions are] expensive today and one of the main challenges to build e-methanol or bio-methanol plants is a huge queue for these pieces of equipment that aren't available," Anita Gajadhar, executive director for Swiss-based methanol producer Proman, said.

Bio-based and e-methanol plants of commercial scale, like Proman's natural gas-fed 1.9 million metric tonne/yr M5000 plant in Trinidad and Tobago, are not ready today.

"But that's not to say 10 years from now they won't be there," Gajadhar added.

Smaller projects are popping up. Dutch fuels and gas supplier OCI Global announced plans last week to double the green methanol capacity at its Beaumont, Texas, facility to 400,000 t/yr and will add e-methanol to production for the first time. Production will use feedstocks such as renewable natural gas (RNG), green hydrogen and biogas.

The globally oversupplied methanol market will not get any major supply additions starting in 2024 until 2027. But that oversupply will not last long, Gajadhar said.

Global demand has slowed this year, driven by stagnate economic growth and higher interest rates, according to industry observers.

As much as half of methanol demand is tied to GDP growth, with total methanol demand estimates at 88.9mn t globally in 2023. This is essentially flat from 2022, but up from 88.3m t in 2021 and 87.7mn t in 2020, Dave McCaskill, vice-president of methanol and derivatives for Argus Media's consulting service, said.

Demand is not expected to rebound to 2019 levels of 89.6mn t until 2024 or 2025, he added.

The period of oversupply combined with lackluster demand places methanol in a transition period, Gajadhar said, which opens the door for sustainable feedstock alternatives to shape market growth.

Danish container shipping giant Maersk and French marine logistics company CMA-CGM announced earlier this week a partnership to drive decarbonization in shipping. The partnership seeks to develop fuel and operations standards for bunkering with alternative fuels. The companies will develop net-zero solutions, including new technology and alternative fuels.

Maersk has previously ordered dual-fuel methanol-powered vessels and CMA-CGM LNG-propelled vessels.

The demand for alternative feedstock-derived fuels is there, but the ability to scale-up such production lags. Certified lower-carbon methanol produced using carbon capture and sequestration — also known as blue methanol— can ramp up much more quickly, according to Gajadhar.

By Steven McGinn

Photo credit and source: Argus Media
Published: 22 September, 2023

Continue Reading


Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Firm expanded its biofuel testing this summer in Europe to two additional ships — Royal Caribbean International’s “Symphony of the Seas” and Celebrity Cruises’ “Celebrity Apex”.





Royal Caribbean completes over 12 weeks of bio bunker fuel testing in Europe

Royal Caribbean Group on Tuesday (19 September) said it successfully completed over 12 consecutive weeks of biofuel testing in Europe. 

Royal Caribbean International’s Symphony of the Seas became the first ship in the maritime industry to successfully test and use a biofuel blend in Barcelona to meet part of her fuel needs. 

The company confirmed onboard technical systems met operational standards, without quality or safety concerns, demonstrating the biofuel blend is a reliable “drop in” supply of lower emission energy that ships can use to set sail across Europe and beyond. 

The tests across Europe also provided valuable data to understand the availability and scalability of biofuel in the region, the firm added. 

Jason Liberty, president and CEO, Royal Caribbean Group, said: “This is a pivotal moment for Royal Caribbean Group’s alternative fuel journey.”

“Following our successful trial of biofuels this summer, we are one step closer to bringing our vision for net-zero cruising to life. As we strive to protect and promote the vibrant oceans we sail, we are determined to accelerate innovation and improve how we deliver vacation experiences responsibly.”

President of the Port of Barcelona, Lluís Salvadó, said: “Royal Caribbean’s success is a clear example of how commitment to innovation makes possible the development of solutions to decarbonise the maritime sector.”

“In this case, it involves the cruise sector and focuses on biofuels, an area in which the Port of Barcelona is already working to become an energy hub, producing and supplying zero carbon fuels, such as green hydrogen and ammonia, and of other almost zero-carbon alternative fuels, such as methanol, biofuels or synthetic fuels. Innovation and collaboration between ports and shipping companies is key to accelerate the decarbonisation of maritime transport.”

The company began testing biofuels last year and expanded the trail this summer in Europe to two additional ships — Royal Caribbean International’s Symphony of the Seas and Celebrity Cruises’ Celebrity Apex

The sustainable biofuel blends tested were produced by purifying renewable raw materials like waste oils and fats and combining them with fuel oil to create an alternative fuel that is cleaner and more sustainable. The biofuel blends tested are accredited by International Sustainability and Carbon Certification (ISCC), a globally recognized organization that ensures sustainability of biofuels and verifies reductions of related emissions.

With Symphony of the Seas departing from the Port of Barcelona and Celebrity Apex departing from the Port of Rotterdam, both ships accomplished multiple sailings using biofuel and contributed critical data on the fuel’s capabilities. 

“These results will help accelerate Royal Caribbean Group’s plans to continue testing the use of different types of biofuels on upcoming European sailings this fall. The company is exploring strategic partnerships with suppliers and ports to ensure the availability of biofuel and infrastructures to advance the maritime energy transition,” the firm said. 

Photo credit: Royal Caribbean Group 
Published: 22 September, 2023

Continue Reading