Marine Fuel Oil News

06 Jun 2019

Sinopec Expands LSFO Production

Pic: Sinopec

China Petroleum & Chemical Corporation (Sinopec ), China's first large-scale production of greener low-sulfur marine fuel oil (LSFO), announced the production capability of 10 million and 15 million tons of low-sulfur marine fuel oil in 2020 and 2023.The Beijing-based Chinese oil and gas enterprise said in a press release that by January 1, 2020, Zhoushan and other China major ports will be fully covered with Sinopec product availability, and more than 50 key overseas ports, including Singapore…

01 May 2019

Onboard Fuel Compatibility Testing is Growing

Picture Credit: Tom Fisk/Pexels

Parker Kittiwake is witnessing an increase in demand for onboard fuel compatibility testing.The trend reflects the urgency in the market as shipowners and operators take a more deliberate and proactive approach to mitigating the risks of potential marine fuel oil incompatibility and stability issues associated with the impending 2020 global sulphur cap regulation.With the majority of shipowners expected to opt for very low sulphur fuels of 0.5% or less to achieve compliance, the shipping industry is seeing a rise in new blended fuels appearing on the market.

29 Apr 2019

Singapore Investigating Bunker Tampering

© Igor Groshev / Adobe Stock

The Maritime and Port Authority of Singapore (MPA) is investigating bunker craft operator Southernpec (Singapore) Pte Ltd for equipment tampering during a bunkering operation, the agency said in an email on Monday.The MPA had previously suspended Southernpec's operator licence "with effect from 25 April 2019 until further notice," it said in a statement released on Saturday."MPA is investigating the bunker craft operator and supplier ...

09 Apr 2019

MSC Boxship Spills Oil at Port of Sines

Pic: MSC

Work is ongoing to contain a “large oil spill” that contaminated waters in Port of Sines, Portugal late on Thursday night during a routine refuelling operation.MSC Sandra Panama-flagged container ship, operated by Swiss Mediterranean Shipping Company (MSC) has reported leakage of marine fuel oil while bunkering in the Sines harbour late on 4 April."The authorities were immediately informed and action was swiftly taken to minimize the environmental impact of the incident. We understand that removal of the oil from the water has progressed at a good pace…

18 Mar 2019

Sovcomflot Updates Fleet Strength

Image: PAO Sovcomflot

Russian maritime shipping company specializing in petroleum and LNG shipping Sovcomflot (SCF Group) said that Yevgeny Primakov (Icebreaker Ice-15) joined the fleet, the final vessel in a series of four new generation IBSV’s, engaged under a long-term time-charter agreement with Sakhalin Energy.The shipping company added that this makes a total fleet of 10 supply and standby vessels servicing Nogliki Base Camp (SEIC and ENL) at Sakhalin island (Sea of Okhotsk).The world’s first Aframax tanker to use LNG as her primary fuel Gagarin Prospect (114…

07 Jan 2019

Bunker Delivery Note Amendments Enter into Force

Pic: International Maritime Organization (IMO)

Amendments to the bunker delivery note relating to the supply of marine fuel oil to ships which have fitted alternative mechanisms to address sulphur emission requirements entered into force on 1 January 2019.According to a press release from International Maritime Organization (IMO), the amendment enters into force as the shipping industry counts down to 1 January 2020, when the limit for sulphur in fuel oil will be reduced to 0.50% m/m outside emission control areas (ECAs),…

06 Jan 2019

Paris and Tokyo MoUs Warn on Sulfur Cap Compliance

Pic: IMO

The Maritime Authorities of the Paris and the Tokyo Memoranda of Understanding (MoU) on Port State Control will start issuing a letter of warning from 1 January 2019 on the sulphur content of marine fuels during inspections in order to increase awareness of and to encourage timely compliance with the new requirements.According to a release from the Paris MoU, the requirement of maximum sulphur content of 0,50% m/m for marine fuel oil will enter into force on 1 January 2020, which…

13 Nov 2018

Argus Adds New Marine Fuel Price Assessments

© Nikita Starichenko / Adobe Stock

Oil price reporting agency Argus has launched five new price assessments for low-sulphur marine fuels, ahead of new global rules capping the amount of sulphur in marine fuels, also known as bunkers.International Maritime Organization (IMO) regulations will cut the limit for sulphur in bunker fuels globally from 3.5 percent to 0.5 percent from the start of 2020."Argus is pleased to be taking the lead in bringing price transparency that enables this large and emerging oil market to advance trading in preparation for the IMO 2020 required fuels…

07 Nov 2018

Saras Invests in New Bunkering Terminal

© Riccardo Arata / Adobe Stock

Italian refiner Saras is constructing a ship-refueling terminal at its Sardinia plant and will market a new, cleaner marine fuel ahead of a major regulatory change in 2020, its chief executive told Reuters.From January 2020, the International Maritime Organization (IMO) will ban ships from using fuels with a sulphur content above 0.5 percent, compared with 3.5 percent now, in one of the biggest changes in the oil market in decades.Refineries around the world have been gearing up for the switch by reducing output of high-sulphur fuel and upgrading plants to maximize production of the cleaner…

30 Oct 2018

The 2020 Global Sulphur Cap: ABS Aid for Greek Shippers

Pic: ABS

Leading Greek shipping industry stakeholders joined ABS, a global provider of classification and technical advisory services to the marine and offshore industries, for a workshop on drafting 2020 sulfur limit Ship Implementation Plans (SIP).Intended to help shipping companies and crew ready their vessels for compliance with the required sulfur content limit of 0.50% by 1 January 2020, the ABS workshop identified risks associated with design and operations of vessels in relation to the IMO regulation, including a HAZID study.

08 Jun 2018

ABS Offers Guidance on 2020 Sulfur Cap

Photo: ABS

ABS issued the ABS Advisory on Marine Fuel Oil to help industry prepare for the IMO’s 2020 global sulfur cap. The Advisory provides owners and operators with industry-leading guidance on the considerations and challenges with marine fuels, which are likely to be used in addressing the 2020 global sulfur cap requirements.“The IMO 2020 sulfur cap requirement will introduce a significant demand change from heavy fuel to low sulfur fuel almost overnight. The industry currently is debating how to prepare as the consequences of this shift are difficult to predict,“ said Dr.

30 May 2018

Former OW Bunker Manager Gets 18 Months in Jail

(File photo courtesy of OW Bunker)

A Danish court on Wednesday sentenced the former manager of OW Bunker's Singapore subsidiary to 18 months in prison after he was found guilty of granting credit outside his mandate, contributing to the bankruptcy of the marine fuel oil supplier.The 2014 bankruptcy of OW Bunker, then the world's leading supplier of marine fuel oil with a 7 percent market share, sent shockwaves through the global shipping industry and left investors and business partners scrambling to cover their losses.The city court of Aalborg said it found Lars Moller…

27 Apr 2018

Singapore Extends MFM Use

File Image (CREDIT: AdobeStock / © Seafarer81)

Following the successful completion of test-bedding the use of mass flow metering (MFM) system for delivery of distillates , the Maritime and Port Authority of Singapore (MPA) will extend the mandatory use of MFM to all bunker tankers delivering distillates1 in the Port of Singapore from 1 July 2019. Assistant Chief Executive (Operations) of MPA, Capt M Segar said this at the International Bunker Industry Association (IBIA) Asia Gala Dinner held last night (26 April 2018). The use of the MFM system will enhance transparency in the bunkering process…

27 Apr 2018

Singapore Extends Compulsory Use of Flow Meters to Distillate Barges

© Dmitry Zheltikov / Adobe Stock

Singapore will extend the mandatory use of mass-flow-meters to bunker barges delivering distillate fuels to large ships, the port authority said on Friday, ahead of an expected pick-up in the use of distillates to meet caps on sulfur content.Singapore, the world's largest marine refueling hub, became the first port to mandate the use of mass-flow-meters (MFMs) in 2017, making them compulsory for marine fuel oil bunker barges licensed by the Marine Port Authority (MPA).Along with a crackdown on short deliveries to bunker fuel customers…

05 Apr 2018

Four Bunker Barges Seized in Singapore over Unpaid Debt

Singapore law firm asks for vessels to be arrested; bunker barges owned by Vermont UM Shipping. Four marine refuelling barges owned and operated by Vermont UM Shipping Pte Ltd were seized in Singapore on Monday night, according to the website of Singapore's Supreme Court. Singaporean law firm Rajah & Tann seized the vessels over unpaid claims on behalf of its client, Malayan Banking Berhad, or Maybank, said a source with direct knowledge of the matter who declined to be identified as the person is not authorised to speak to the media. The source declined to specify the amount of the claims against Vermont UM Shipping. Rajah & Tann did not respond to an emailed request for comment. Maybank also did not respond to an emailed request for comment.

27 Mar 2018

LR Grants Approval in Principle for HHI’s LNG-fueled VLOC

South Korean shipbuilder Hyundai Heavy Industries (HHI) has received approval in principle (AiP) from Lloyd’s Register (LR) for a 250,000-deadweight-ton (dwt) class very large ore carrier (VLOC) fueled by liquefied natural gas (LNG). HHI, who has been focusing its efforts on LNG-fueled ships ahead of the International Maritime Organization’s (IMO) SOx emission limitations from 2020, set out on a joint development project (JDP) last year with LR, ship owner and operator ANANGEL and LNG supplier WOODSIDE to develop the LNG-fueled 250,000 dwt VLOC design optimized for the trade route from North West Australia to North Asia, based on the XDF engine.

13 Feb 2018

Singapore Marine Fuel Sales Surge 7.2%

© Kalyakan/Adobe Stock

Singapore's marine fuel sales set a monthly record in January after climbing to 4.606 million tonnes, up 3.2 percent from a year earlier as vessels coming to the world's largest bunkering hub loaded larger amounts of bunker fuel per vessel on average, official data showed. Compared with the previous month, sales in January were up 7.2 percent, data from the Maritime and Port Authority of Singapore (MPA) showed. The number of vessels that called at Singapore for bunkers fell by 4.4 percent from last year to 3,472 but was at an eight-month high, MPA data showed.

20 Nov 2017

Singapore Charges Defunct Bunker Supplier, Staff

A Singapore marine fuel supplier and three executives have been charged with cheating as part of a government crackdown on short deliveries of fuel to vessels in the world's largest bunkering hub. Vermont UM Bunkering Pte Ltd, two directors and a former bunker manager were charged with 150 counts of conspiracy to charge customers for more marine fuels - also known as bunkers - than actually delivered, the Corrupt Practices Investigation Bureau (CPIB) said in a statement. "Through these alleged fraudulent transactions, Vermont Bunkering had dishonestly induced its customers to make excess payments totalling over $8 million," the statement said.

12 Sep 2017

OW Bunkers Investors in Legal Action Against IPO Banks

A group of 24 Danish institutional investors in OW Bunker has decided to issue a writ against Carnegie and Morgan Stanley, accusing them of misleading investors ahead of the 2014 listing of the now bankrupt marine fuel oil supplier.   The investors, which include two of the largest pension funds in Denmark, ATP and PFA, claim they have suffered a loss of 767 million crowns ($123 million) following investment in OW Bunker shares "on the basis of a prospectus which was insufficient in material aspects".   Morgan Stanley declined to comment, while Carnegie said it did not know the details of the alleged claim.   Reporting by Stine Jacobsen

31 Aug 2017

OW Bunker Investors to Sue IPO banks

Institutional investors to sue Morgan Stanley, Carnegie. A group of institutional investors in OW Bunker said they plan to sue Morgan Stanley and Carnegie for about $80 million, accusing the two investment banks of misleading them ahead of the 2014 listing of the now bankrupt marine fuel oil supplier. Denmark's OW Bunker was valued at $1 billion when it floated in March 2014, but the company filed for bankruptcy in November that year after suffering hedging losses of almost $300 million, sending shockwaves through the global shipping and oil trading industry. "We are planning a lawsuit against the two investment banks involved in the OW Bunker IPO," Erik Bomans, partner in Deminor Recovery Services representing 30 institutional investors, told Reuters on Thursday.

15 Aug 2017

IBIA Supports Efforts to Ensure Integrity of MFM Systems

Photo: International Bunker Industry Association (IBIA)

The International Bunker Industry Association (IBIA) believes the benefits achieved from adopting mandatory use of Mass Flow Meters (MFMs) for marine fuel oil deliveries in Singapore must be protected by effective enforcement, and that using approved MFMs to measure quantity being loaded onto bunker tankers as well as that delivered to ship would address a missing link in supply chain integrity. The Singapore regulation that came into effect on 1 January 2017 was widely perceived…

18 May 2017

MXB Begins Physical Operations in Mumbai

Photo: MXB

Matrix Bharat Pte. Ltd. (MXB), a supplier of marine fuels in India, has begun physical operations in Mumbai. In conjunction with this, MXB has commenced operations on Jawahar Dweep, an island off the southeastern coast of Mumbai. MXB is a joint venture between Matrix Marine Fuels and Bharat Petroleum Corporation Ltd. (BPCL), one of India’s largest PSU (state owned) oil refining and marketing companies. The company will provide physical products at Mumbai’s Outer Port Limits (OPL), servicing vessels that are waiting to berth, as well as vessels making bunker-only-calls.

10 Apr 2017

Bomin Affirms Commitment to Baltic Bunkering Market

The Bomin Group, a global physical supplier and trader of marine fuel oil, today reaffirmed its commitment to providing physical bunkering products and services in the Baltic, including Rostock, Germany’s largest Baltic port. In line with the company’s new regional hub structure, Bomin’s Hamburg office will take responsibility for physical operations and infrastructure in the region. Bomin Deutschland is operating two state-of-the-art bunker barges in the Baltic area – MT Bergen Troll and MT Lioba – providing customers with a full range of quality products including MGO DMA 0.1 percent, RMG 380 3.5 percent, RMD 80 0.1 percent, and RME 180 3.5 percent.

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