OW Bunker confirmed an increase in demand for bunkers across the Pacific Islands, resulting from a further strengthening in trade between Australia, China, Indonesia and India and further growth in the domestic cruise industry.
OW Bunker Australia, which acts as the OW Bunker Group's purchasing centre for the region, has reported that the Pacific Islands are experiencing an increase in demand for marine fuel as Australia's commodities markets and marine tourism industries continue on a positive growth trajectory. OW Bunker has confirmed that availability of both 0.1% MGO and 3.5% fuel oil across the region is sufficient to meet demand, with a strong supply infrastructure throughout the Pacific Islands.
“Australia's economy in particular remains robust, with an influx of international investment in commodities such as iron ore and LNG significantly boosting trade from and across the region," said
Stefan Poulus, Branch Manager, OW Bunker Australia. "We have seen growth in several key bunker ports, with Port Moresby in Papua New Guinea providing a good alternative for bunkers on the Australia and New Zealand to Asia route. Increased cruise traffic has also fuelled demand across the Pacific Islands, particularly in New Caledonia, Fiji and French Polynesia. Projections for the cruise industry, particularly between Australia and New Zealand are strong, with a predicted 20% increase in traffic in the next few years, so we can anticipate that demand for bunkers will increase in line with this.”
The recent announcement of a US$2.9 billion investment from Rio Tinto (RTNTF)
in Western Australia's Port of Cape Lambert is expected to enhance the port's capacity for the export of iron ore to 203 million tonnes annually by 2015. The Great Lakes Dredge and Dock Corporation (GLDD) has also announced a US$180m contract tied to Chevron (CVX)
's Wheatstone LNG Project, which is expected to further strengthen Australia
's output and trade with Asia in particular, as the biggest consumers of Australian LNG.