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VPS: Houston contaminated VLSFO bunker fuel was also supplied in Singapore

Out of 14 vessels bunkered with contaminated VLSFO, 12 of them received their fuel in Houston while two vessels received their fuel in Singapore; fuel delivered by four suppliers.

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Marine fuel testing firm VPS on Monday (7 August) delivered an update on the recent VLSFO marine fuel contamination in Houston, revealing out of 14 vessels, two vessels were supplied with contaminated fuel oil in Singapore and 12 vessels received it in Houston.  

On 10 July, VPS informed its customers and the wider market, of the presence of Dicyclopentadiene (DCPD) isomers at significantly high levels within VLSFO bunker fuel deliveries in Houston. The contaminants were detected using in-house GC-MS (Gas Chromatography – Mass Spectrometer) analytical methodologies.

Initially, VPS highlighted eleven vessels had suffered operational issues, such as loss of power and propulsion whilst at sea. These effects resulted from fuel leakage in the ICU (Injection Control Unit) units and fuel pumps not being able to develop the required fuel pressure, affecting only the Auxilary engines and not Main engines. The contaminated VLSFO had been delivered in Houston, by one single fuel supplier.

Four weeks later, VPS can now provide a further update on the spread of this fuel contamination issue: Fourteen vessels in total, have now received this contaminated fuel and suffered some form of damage to their auxiliary engines and fuel delivery systems. Twelve of the vessels received their fuel in Houston, whilst a further two vessels received their fuel in Singapore, with the fuel delivered by four suppliers.

The specific contaminants are:

  • Di-hydro dicyclopentadiene
  • Chemical CAS Number: 448-57-7
  • Tetra-hydro dicyclopentadiene
  • Chemical CAS Number: 6004-38-2

DCPD’s are unsaturated chemical compounds which can polymerise and oxidise under certain conditions. However, the rate of this polymerisation process can be reduced by the presence of inhibitors that are typically found within fuel oil.

Should these compounds start polymerising, the fuel begins to exhibit a level of stickiness and become more viscous, making it difficult for moving components, such as fuel pump plungers and the fuel injector spindles to move freely. These effects cause damage to the fuel injection system.

Over a period of time excessive sludge formation is likely to be experienced. The DCPD compounds that were detected in this fuel ranged from 3,000 to 7,000 ppm (0.3-0.7%) per delivery.

VPS employed it’s own proprietary GCMS Vacuum distillation methodology to detect DCPD, in preference to the ASTM D7845, Standard Test Method for Determination of Chemical Species in Marine Fuel Oil by GCMS. The VPS methodology is capable of detecting and measuring the DCPD and its isomers, whereas the ASTM D7845 methodology is limited to detecting only 29 chemical contaminants, which does not include DCPD species.

In addition to the fourteen vessels suffering damages from burning this fuel, a further 18 vessels who received the contaminated fuel from thirteen additional suppliers, either witnessed no adverse reactions, or simply did not provide any feedback regarding any damages.

In total, the volume of contaminated fuel delivered to the 32 vessels, was 61,494 metric tonnes. Three vessels de-bunkered the contaminated fuel prior to burning, following a “Caution” result from the VPS Chemical Screening service, highlighting the value of this pre-burn service.

A further three vessels de-bunkered the fuel after suffering initial engine damage from burning the fuel. Whilst another two vessels burnt the fuel in their main engines without issue after switching it from their auxiliary engines, where it had caused operational damage.

Figures showing sludge formation in filters (top) and ceased fuel pump plunger (bottom)

VPS: Houston contaminated VLSFO bunker fuel was also supplied in Singapore
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Related: VPS identifies new bunker fuel contamination at Houston
Related: FOBAS: Possible bunker fuel contamination in Houston and US Gulf area
Related: Viswa Group gives update on bunker fuel issues in Houston
Related: FuelTrust analysis finds fuel content discrepancies in 39% of global bunker deliveries

Photo credit: VPS
Published: 8 August, 2023

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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.

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Argus Media organises free admission ‘Argus Asia B24 Forum’ for bunkering sector

Ahead 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

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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.

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Brazil: Raízen launches new bunkering operation in Itaqui

Brazilian 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 

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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.

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Rahim Oberholtzer named as new Infineum Chief Financial and Strategy Officer

International 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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