Middle East Iran is still aiming to grow its bunker and petrochemical industry ©Babak Farrokhi
All eyes on the future
John Rickards reports a mood of optimism in the Middle East’s bunker industry despite a turbulent political scene and uncertainty over what will happen to the marine fuel market in 2020
A
ll eyes in the Middle East, as well as a fair number of bets, are currently on the future. While the 2020 sulphur cap is looming on the horizon and there remain uncertainties in major trades and the oil market itself, ports, suppliers and operators across the region are betting on growth. That is despite the ongoing sanctions imposed by the UAE, Saudi Arabia and Egypt against Qatar. Backed by its vast gas wealth, Qatar is at the heart of one of the most sudden and serious diplomatic crises this side of the Gulf has seen, and trade, including the provision of fuel, has suffered. To alleviate the difficulties experienced by operators unable to refuel elsewhere, Qatar Petroleum announced a deal this summer in collaboration with WOQOD Marine to provide ship-to-ship fuel oil bunkering for all vessels calling at Qatari ports, based out of its Ras Laffan facility. Calling the move “a first, and important, step towards self-reliance”, Qatar Petroleum CEO Saad Sherida Al-Kaabi said, “This temporary ship-to-ship fuel bunkering facility will meet our clients’ safety and commercial expectations, and will continue until a permanent solution is implemented. Qatar Petroleum is fasttracking required studies and investments to provide independent, safe, and reliable bunkering capabilities.”
While Iran has endured some bumps of its own since its re-entry to the market following the end of sanctions - and supplying fuel oil to Western operators is reportedly still difficult due to the political environment - this summer has seen it continuing to eye the future. In June, the Port and Maritime Organisation of Iran announced it was investing IRR1.6 billion in three new docks at Shahid Rajaei Port to allow calls from tankers and products carriers of up to 100,000 dwt. The move, the PMO said, would increase the country’s annual petroleum products exports, 40% of which is fuel oil, to 34 million tonnes, and follows the inauguration of phase one of its new Qeshm bunkering facilities in January. The plan is for Qeshm to become a regional bunkering hub to rival Fujairah, 120 miles away, and while its first phase has a storage capacity of only 52,600 tonnes, the long term aim is to increase this to 750,000 tonnes by completion. Qeshm Star Bunkering is a joint venture between Islamic Republic of Iran Shipping Lines, National Iranian Tanker Company and Qeshm Free Zone Organization. At the first phase launch, IRISL managing director Dr Mohammad Saeedi said: “Thanks to the sanctions removal and the execution of JCPOA, seventeen major world shipping lines call regularly at Iranian ports.
The only official magazine of IBIA, World Bunkering autumn 2017
A golden opportunity has been provided for Islamic Republic of Iran to supply the necessary fuel for the vessels which travel in the Persian Gulf.” NITC meanwhile has inked a research deal with Iran’s Research Center of Petroleum Industry (RIPI) to develop new fuels to meet the demands of 2020. RIPI will assess “novel methods” for improving fuel quality and pollution profiles for both NITC’s ships and international customers, although it’s not clear at present whether this will involve fuel oil or distillates. NITC managing director Sirous Kian Ersi said: “Regarding the importance of the issue and the fact that not much [time] is left to the 2020 deadline, we decided to tap RIPI’s technological capabilities to cap sulphur content of marine fuel and promote its quality.” In Fujairah meanwhile, Abu Dhabi Ports has been handed a 35-year concession to operate and develop infrastructure at the hub. The deal includes deepening berths to 16.5m, building an approximate 300,000 square metre storage yard, and constructing an additional 1km quay to accommodate the expected growth in the number of ships arriving at the port.
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