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Spring 2018

CYBER NIGHTMARES DEVASTATING HACKING A REAL AND PRESENT DANGER

INSIDE THIS ISSUE: ARE ON-LINE PLATFORMS THE NEW INTERMEDIARIES? REGIONAL FEATURE: CARIBBEAN PROMISE INTERVIEW: TOTAL EMISSIONS STRATEGY

THE ONLY OFFICIAL MAGAZINE OF


Editor’s letter

Reasons to be cheerful?

As we start a new year, there seems to be a refreshing air of optimism in the shipping industry. Let’s hope it lasts as both the shipping and bunker industries could do with an improvement in the economic climate to help them tackle the many challenges ahead

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ur cheerful friends at international accountant and shipping adviser Moore Stephens tell us they expect optimism to triumph over pessimism in the shipping industry during the next twelve months. Its shipping industry group partner Richard Greiner says, “According to a recent study, pessimists live longer than optimists, and shipping is short of neither. But the industry has always valued longevity as well as new blood, and it certainly ended 2017 in more optimistic mood than it closed the previous year.” Greiner explains his happy mood by pointing out: “Overall industry confidence hit a three-year high in 2017. Oil prices reached a three-year peak, while there was a 50% rise in the Baltic Dry Index over a six-month period in the second half of 2017. Finance was available from within and outside the industry. Some sanity returned to the newbuilding orderbooks, and charterers in particular displayed an appetite for new investment.” And, for the coming year, he says: “In 2018, freight rates will harden if there is a further reduction in tonnage overcapacity and an acceleration in ship demolition. Money will still be available for the right investment. Shipping will continue to be impacted by geopolitical uncertainty, which could be influenced in either a positive or negative way by elections in Brazil, Iraq, Italy, Mexico, Russia and elsewhere.” On areas directly affecting the bunker sector, Greiner predicts: “Doubts will persist about the sufficiency of lowsulphur fuel, and gas will become an increasingly attractive option for powering new and converted tonnage as the price of oil recovers.”

World Bunkering Spring 2018

Well let us hope he is right. Certainly bunker prices have shot up. Two years ago a tonne of IFO 380 might have cost you in the region US$145. In January this year the price was about $390. Given the current high prices there is a big incentive for buyers to make sure they get all the fuel they are paying for. This issue’s Quantity feature looks at the progress of mass flow meters at Singapore, and the no nonsense approach being taken towards those who chose to break the rules governing their use.

This issue’s front cover may not provide a reason to be cheerful, highlighting as it does our quite intentionally rather worrying feature on cyber security. But the recent unfortunate experiences of giants like Maersk and Clarksons should provide food for thought for the rest of us. And talking of food, publication of this issue coincides with the IBIA Dinner. Your World Bunkering team will be there and we look forward to meeting as many members as we can at what I am sure will be a highly enjoyable evening.

Unsurprisingly there are once again in this issue many references to the 2020 imposition of a 0.50% cap on sulphur in fuel. As reported in our Environment pages, the big shipowners’ bodies and major ‘green’ lobby groups have come together to call for ban on the carriage of non-compliant fuel unless scrubbers are fitted or other emission cleaning technology used. It sounds simple but IBIA is understandably finding out what you, the members, think. There could be devils hiding in the details on this one. The impending sulphur cap is also focusing minds when it comes to testing fuels. In our Testing section, deputy editor Unni Einemo reports on moves aimed at possibly producing updated ’intermediate’ ISO 8217 specifications prior to 2020. Unni notes there’s not enough time to produce a new fully revised ISO 8217 standard before 2020, but it is possible that a so-called “publicly available specification” could be ready sooner in response to a request from the IMO for ISO to “keep consistency” between the International Organization for Standardization (ISO) standard and implementation of the 0.50% sulphur limit.

David Hughes Editor

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content 7

28-30

Chairman’s Letter

Central America Going green

9 Chief Executive’s Report

15 IBIA Events Fresh opportunities ahead

16-17 Industry News DNV GL: “Oil will still be main marine fuel in 2050”

18 Africa Report Busy start to year

19 Asia Report IBIA Asia report: October to December 2017

20-21 Interview Total emissions strategy

22-23 Fuel Quantity Singapore cracks down

25-26 Caribbean Carrying on and growing

Publisher & Designer: Constructive Media ibia@constructivemedia.co.uk Editor: David Hughes anderimar.news@googlemail.com Deputy Editor: Unni Einemo unni@ibia.net Project Manager: Alex Corboude alex@worldbunkering.net On behalf of: IBIA Ltd 4th Floor 50 Liverpool Street London EC2M 4PR, UK Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 3865 Email: ibia@ibia.net Website: www.ibia.net

31 Scrubbers Will scrubbers take off?

55-59 Russia Record number of cruise ship calls at St. Petersburg

60 Testing Rushing to be ready for 2020

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32-33

Equipment and Services Focus on energy storage

Environment Peace breaks out, a bit

62-63

37-41

Legal Will the sulphur cap work?

Western Mediterranean Going for LNG

42-44 Port of Tenerife Company Profile: Ports of Tenerife

46-47

64-65 Trader ‘Disintermediation’ underway?

66-71 Company News

Lubricants Lubricating methanol

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48-49

IBIA Events Upcoming events

Innovation Hydrogen-powered vessel launched

50-51 LNG LNG infrastructure expands

52-54 Cyber Security Taking cyber security seriously

The views expressed in World Bunkering are not necessarily those of IBIA, or the publishers unless expressly stated to be such. IBIA disclaims any responsibility for advertisements contained in this magazine and has no legal responsibility to deal with them. The responsibility for advertisements rests solely with the publisher. World Bunkering is published by Constructive Media on behalf of IBIA and is supplied to members as part of their annual membership package.

72 New Members

73 Next Issue

74 Diary

Constructive Media 50 George Street, Pontypool NP4 4PR Tel: 01495 740050 Email: ibia@constructivemedia.co.uk www.worldbunkering.net


CHAIRMAN’S LETTER

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PASSING ON THE BATON

A relay race is a team effort and its success depends on every member of the team doing their best and receiving the right support. Passing the baton from one runner to the next is also crucial for success and I am confident this is happening at IBIA

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s I step down as chairman at the end of March 2018 after two interesting years I would like to extend my personal gratitude to a very hard working and talented secretariat and also to the increasing number of people who support IBIA, all on a pro bono basis. The Association is driven by the CEO who can only be successful with a supportive board and active working groups. At IBIA we are fortunate to have both. Against the backdrop of a very challenging economic environment, the three key challenges and opportunities facing the bunker industry over the past couple of years have been: preparations for 2020 global sulphur cap; the drive to improve industry practices and becoming better corporate citizens; and embracing an increasingly digital world. IBIA has not been immune to the impact of the reduced financial viability in our sector. Bunkering profitability is to a great extent dictated by the state of freight markets. Suppliers’ margins have been as low as can be remembered even by some of our more mature members. Perhaps now we can finally see some light at the end of the tunnel after the recent years of weak earnings for many ship owners.

World Bunkering Spring 2018

Although margins may slightly improve in the medium term, especially for the more astute, profitability will generally be more about reducing costs and managing cash flow. In a market that is expected to grow at less than 2% per annum in tonnage terms and with average stem sizes unlikely to return to levels seen 10 years ago, improving efficiency is paramount for survival. The skill levels of all industry professionals will need to improve to meet new challenges presented with the transition to more sophisticated technology. There will no doubt be continuing consolidation on both the buyer and seller sides potentially leading to further rationalisation of those employed in bunkering. Some industry analysts expect that we will see new winners not only among the supplier community, but also improved buying practices as well expanded testing services (in part due to the need to respond to the myriad of unknown 0.50% sulphur blends.) Over the past twelve months IBIA has provided increasing deliverables to our industry with a greater number of people seeking guidance and input from the Association as well contributing to our body of knowledge. This has led to a steady rise in membership and it’s clear that IBIA is in the ascendancy.

Further acknowledgement of the rising support for IBIA is the nomination of ten candidates for the IBIA board elections. As with most organisations, IBIA can only be as good as its members and good corporate governance is equally important. In this respect, IBIA is entering the run up to 2020 with a strong board and I wish them every success under the capable chairmanship of Michael Green.

Robin Meech Chairman 7


We look forward to connecting with IBIA members and delivering value by working with you, and for you in the year ahead

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hy do more than a thousand people choose to meet on a cold Monday evening in February in London every year? Surely, it would be simpler for everyone to communicate via social media or email or telephone. However, the IBIA Annual Dinner is as popular and as well attended today as it has ever been. We could ask the same question about all of the many events that we’ve arranged over the past year and those that are due to come over 2018. In spite of the proliferation of social media, online exchanges and the advance of Artificial Intelligence, it’s clear that people still lie at the heart of our industry. Developing personal relationships and a rapport with clients and business partners, reacquainting ourselves with former colleagues and competitors can be optimised through a combination of both face to face meetings and with the latest technology. At IBIA we see it as our role to facilitate these connections within our industry’s vast combination of networks and to create new networks that will be valued by our members. We aim to achieve this by radically overhauling our current systems; by expanding the size and geographical breadth of our membership; and by offering more events in a wider range of locations. Whether it’s online or in person, we’re investing in reaching out to the people that matter the most to us - our members. Within the first quarter of 2018, IBIA will re-launch our website and implement an entirely new membership management system. Members will benefit from a simplified means of signing up for events, joining IBIA Working Groups, subscription renewal and the ability to engage with industry peers via a range of social media channels integrated within the IBIA platform.

World Bunkering Spring 2018

IBIA continues to expand its global footprint and in 2018 we are actively working to add new membership branches with some promising opportunities in Panama, Athens, Mumbai and in Mauritius. We’d love to hear from you if this is something that you’d like to participate in. The new branches will be driven and managed by groups of local members and supported by the global IBIA secretariat. The world is changing around us but at IBIA we see these changes as opportunities to bring existing and new members together in a variety of forums where information and expertise can be shared. Two of our Working Groups, comprising a wide range of members from across the globe and from a variety of sectors, will be delivering significant value to the industry in the coming months. IBIA has received tremendous industry support for the creation of the Supplier’s Guide to Best Practice which Unni Einemo has submitted to the IMO for consideration at MEPC 72 in April. The Ethics Working Group is also gaining traction with the development of the IBIA Code of Ethics which will form a part of the IBIA Guide to Best Ethical Practice. We look forward to sharing a more detailed review of these exciting developments in the near future. This of particular relevance when one considers some of the key concerns around the implementation of the 2020 global sulphur cap. There is some concern that the new regulations will present financial incentives not to comply unless robustly enforced globally. Of equal concern is the fear that those responsible for enforcement may not be sufficiently experienced or adequately resourced when one considers that only 28 out of 89 MARPOL Annex VI signatories have any experience of enforcement.

However, there are countervailing forces and it seems likely that non-compliance will increasingly be met by pressure from cargo owners, increased public awareness and, IBIA believes, a changing mood to improve business practices. Doing the right thing, complying and actively enforcing compliance could in fact make businesses and public entities, including port operators, more attractive to the professional buyers who often are perceived to offer the most attractive business propositions. As an industry and as an association we are headed on the right course although there is clearly a fair amount hard work ahead of us all. At IBIA we can assure you that we are focused on improving the value proposition that we offer our members wherever you live and whatever the size of your business. We look forward to working with you and on your behalf over 2018.

Justin Murphy Email: justin.murphy@ibia.net Tel +44 20 3397 3850

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chief executive’s report

ON THE right COURSE FOR 2018


ibia@ibia.net Telephone: +44 (0) 20 3397 3850.

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14Bunkering AUTUMN 2016 World

Evaluate the Merits of a Bunker Claim Interpretation of specifications for bunker fuels and a guide to the question of repeatability. For sale to non-members at £35.

IBIA Glossary of Bunker and Lubricating Oil Terminology A comprehensive guide to all those complicated terms that are in daily use in the bunkering industry. For sale to non-members at £45.

IBIA Guide to Good Commercial Practice On sale to non-members at £50 per copy.

IBIA Safety Cards for vessels’ crews IBIA buyer members receive copies of the IBIA Safety Cards for distribution to their ships, giving basic, plain English advice about safe handling of bunker fuels. Please note that all of the above publications can also be downloaded by members by visiting www. ibia.net and logging into your account. Please then go to the download section of the website.

IBIA Logo Free bromide supplied for use by corporate members only.

World Bunkering Spring 2018

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IBIA EVENTS iStock

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FRESH OPPORTUNITIES AHEAD Plans are forming for a number of IBIA events throughout 2018 to excite, delight, inform and ignite healthy discussions

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his issue comes out just in time for the biggest and most eagerly anticipated IBIA event: our prestigious Annual Dinner – the only way to start London’s hectic annual IP Week in style! Our first IBIA conference this year will take place not long after in Tenerife. “IBIA’s Africa Bunkering Conference” hosted by Ports of Tenerife, will be held 20 – 22 March. Read more about this in the Africa Regional Manager’s report and preview the programme elsewhere in this issue. It promises to look at both global themes and how this region is adapting to the new low-sulphur era. Soon afterwards, on 17-19 April, we are thrilled to be hosted by the Maritime Authority of Jamaica for what is set to be one of the must attend regional events of 2018. “IBIA Caribbean Bunker Conference:

Fuelling a new era in the Caribbean” will cover essential topics for all stakeholders within the bunker buying chain and give insight into what the future holds for the Caribbean and the Americas bunkering markets. Also in April, our Singapore office is organising the IBIA Asia Gala Dinner, to be held on 26 April – find details in the Asia Regional Manager’s report. Later, when spring is about to turn into summer, we are planning a one-day conference jointly organised with BMS United in Greece. “The Future of Shipping” will take place in Athens, at the Benaki Museum, on 30 May in the week before Posidonia, one of the world’s largest Shipping exhibitions. The conference will be preceded by an IBIA training event lead by Nigel Draffin, founding IBIA member and renowned author.

Diamond SPONSOR

Other events are in the pipeline which we’ll tell you more about later, but we can reveal that the location for our Annual Convention in early November will be Copenhagen, the wonderful capital of Denmark. This country is home to some of the world’s biggest and most influential shipping and bunkering companies, making Copenhagen an ideal place for IBIA’s members to convene. We hope to see you at one or more of these IBIA events during 2018. But before all this, we look forward to meeting up with around 1,000 industry professionals for the first big event of 2018 our Annual Dinner. We are, as always, grateful to our sponsors, who have generously contributed to treating you to fine food and wine at the splendid ballroom at the Grosvenor Hotel on London’s Park Lane. Here’s to a great year ahead!

GOLD SPONSOR

SILVER SPONSORS

BRONZE SPONSORS

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COMMITTED TO BETTER ENERGY

World Bunkering Spring 2018

15


Industry News

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DNV GL: “Oil will still be main marine fuel in 2050” In 2050, oil will remain the main fuel option for trading vessels, but natural gas will step up to become the second-most widely used fuel, and new low carbon alternatives will proliferate, according to a new study by classification society DNV GL

‘M

aritime Forecast to 2050’ analyses the impact of the changing global energy system on the shipping industry through to 2050. The report explores how the expected shifts in energy production and demand, GDP growth, industrial production and regional manufacturing might change the maritime industry, and the impact on individual ship segments. The study projects that heading to 2030, shipping will continue to enjoy robust growth. From 2030 to 2050, demand continues to increase, but less rapidly – with the growth primarily in non-energy commodities, such as the container trade and non-coal bulk. In addition to the changing energy production and export patterns, shipping’s fuel mix will become much more diverse. “Big and rapid changes are happening in the way the world uses and produces energy,” says Remi Eriksen, Group President and CEO of DNV GL. “Our Energy Transition Outlook (ETO) shows that by mid-century, the energy supply mix is likely to split equally between fossil and renewables.

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Advances in energy efficiency will also see the world’s demand for energy flattening after 2030. These trends will impact all players in the maritime sector.” “In the Maritime Forecast we can see the trends of today become the paradigms of tomorrow,” says Knut Ørbeck-Nilssen, CEO of DNV GL – Maritime. “Shipping will continue its drive for greater efficiency by reducing costs, improving utilization, lowering fuel consumption, increasing vessel size, and deploying new technologies. The current wave of digitalization transforming the industry will also have a profound impact – advancing design and operation and creating new business models.” Aegean supplies at Kiel Canal Major global bunker supplier Aegean Marine Petroleum Network Inc. announced that it would commence physical supply operations on the Kiel Canal, Germany from January 2018. The operation is being managed by Aegean’s German subsidiary, OBAST Bunkering & Trading GmbH (Rostock) in partnership with local tank farm operator, UTG - Unabhängige Tanklogistik GmbH.

Aegean says that the new station is located directly on the Baltic Sea entrance to the Kiel Canal and “represents an ideal physical supply station for shipping transiting the canal and working in the wider regional market”. In Kiel, Aegean will deliver a full range of fuel grades including RMG 380, ULSFORMD 80 and Gasoil DMA (density max. 860,0). All deliveries will be made ex-pipe from the installation. “The Kiel facility represents the Aegean Group’s third storage location in Germany alongside the exclusive use of tanks in Nordenham on the River Weser and with Vopak in Hamburg” said Aegean’s president, Jonathan Mcilroy. Meanwhile the company confirmed that it had ceased physical supplies in Singapore following its decision last year that the market there was not sufficiently profitable. Marsh warns on emissions regulations Global marine insurance broker Marsh has warned shipowners of the risks of not complying with the 2020 sulphur in fuel cap. In a new report Emissions Regulations: World Bunkering Spring 2018


The broker urges: “Now is the time that decisions need to be made about how to comply with the 2020 Annex VI requirements, especially if operators know their MARPOL-applicable vessels are unable to achieve the low levels of sulphur emissions that will be required.” South Korea seizes ship over “illegal oil transfer” South Korean authorities seized the 16,500 dwt Hong Kong-flag tanker Lighthouse Winmore when she arrived Yeosu in November. It is alleged that the tanker loaded refined products in South Korea and then transferred her cargo at sea in international waters to North Korean vessels. It has been reported that the shipto-ship transfers were photographed by US satellites. This would have broken a UN Security Council resolution imposed on 11 September last year. The Lighthouse Winmore, which has crew of 25 Chinese and Myanmar nationals, was chartered by Billions Bunker Group Corp. South Korean authorities have seized a second ship suspected of supplying oil to North Korea in violation of international sanctions, officials say.

Genoil says: “It is ideally suited for the maritime market, and enables ship owners and fuel payers to capitalise on the price spread between high and low sulphur fuels, as well as ensure compliance.” Genoil has also developed a mini-GHU, which can be built alongside existing refinery infrastructure in major bunkering hubs rather than incurring the costs to develop and build all new infrastructure. The GHU unit costs between $60 million and $80 million to install per one million tons per year of capacity. At current levels, based on a spread between HFO and distillates of $179.78, and inclusive of Genoil’s process fee, margins per tonne would be $123.78, equating to monthly profits of $11,701,789 based on a production capability of 94,537 tonnes per month. The company says the GHU enables production of compliant fuel at a much lower cost than oil refiners, as well as alleviating the industry pressure on the industry’s distillate supply challenges. Genoil says it has signed a series of strategic partnerships with scientific, engineering, refining and financial organisations to fully exploit the potential of the GHU technology worldwide. Genoil says its GHU technology provides ship owners and fuel payers with a viable solution to secure compliant fuel with the same characteristics and compatibility with engines as existing HFO.

Fewer oil spills Statistics for oil spills from tankers for almost five decades show a progressive downward trend, according the International Tanker Owners Pollution Federation (ITOPF). The average number of spills greater than, or equal to, 7 tonnes in size has continuously reduced and, since 2010, averages around seven per year. For ‘large spills’, of greater than 700 tonnes, the yearly average, which was around 25 in the 1970s has reduced dramatically to less than two since 2010. In 2017, two tanker incidents resulting in spills of over 700 tonnes were reported. The first occurred in the Indian Ocean and the second, which ITOPF attended on site, occurred in the Aegean Sea. Four medium sized spills (7-700 tonnes) were also recorded in 2017. The estimated total amount of oil lost to the environment through tanker incidents in 2017 was approximately 7,000 tonnes, the majority of which can be attributed to the two large incidents. However 2018 started badly. On 6 January the Iranian-owned,164,154 dwt Panamanian-flag tanker Sanchi was in collision with the bulk carrier CF Crystal in the East China Sea. The Sanchi caught fire and sank 10 days later, leaving four separate slicks covering an area 39 square miles. All of her 32 crew were presumed dead.

At the end of December South Korean officials said a second tanker, the Panamaflagged Koti, was being held at a port near the western city of Pyeongtaek following similar allegations. Genoil says new its technology can produce 0.50%S fuel Publicly traded clean technology engineering company, Genoil says its newly developed Hydroconversion Upgrader (GHU), can convert heavy or sour crude oil into much more valuable, 0.50% compliant low sulphur oil, at a fraction of the cost of traditional refining processes.

World Bunkering Spring 2018

Oil will still be main marine fuel in 2050

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Industry News

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oncerns for the Marine Industry Marsh warns: shipowners are advised not to assume that insurance cover will continue to remain in place under all circumstances following a breach of the MARPOL Convention Annex VI after January 1, 2020


Africa Report

Busy start to year

Successful training seminar kicks off a packed programme for 2018

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n a great start to the New Year, IBIA Africa hosted a successful training seminar in partnership with Celero Training at the Ravenala Attitude Hotel, Mauritius. The training session was the first event of the week-long inaugural Mauritius Maritime Week, and was attended by Ramalingum Maistry, Chairman of the Mauritius Ports Authority. Our IBIA Chairman, Robin Meech and CEO Justin Murphy facilitated the training sessions, which were co-hosted by our partners Celero. We had a total of 42 attendees with a wide range of experience. A quarter of them had less than one year in bunkering but, by contrast, a fifth had more than 20 years in the industry. The majority of delegates were from Mauritius but also included representatives from Nigeria, Madagascar, Seychelles, Kenya and South Africa. As part of the IBIA training programmes we offer region specific programmes that take into consideration the specific needs of that particular region. We work closely with the maritime authorities and partners to ensure that the course material is relevant and informative.

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Murphy alsoattended and spoke at the Indian Ocean Ports and Logistics (IOPL) 2018 Conference and Exhibition. This was opened by the Prime Minister of Mauritius who announced ambitious plans to invest US$1 billion in the redevelopment of Port Louis and also a goal of increasing annual bunker volumes from 400,000 tonnes to 1 million tonnes. Our next event is IBIA’s Africa Bunkering Conference hosted by Ports of Tenerife to be held 20 – 22 March 2018. Tenerife, an African and European bunkering hub, is attracting considerable new investment. This timely conference offers delegates great networking opportunities with key decision makers. Delegates can participate in panel discussions with industry experts on the IMO 2020 global sulphur cap, learn about Tenerife’s future in LNG, gain insight into growth opportunities in Africa and hear from major shipowners about their technology and fuel strategies. In addition there will be on offerindustryleading training opportunities, a tour of two of Tenerife’s ports and a spectacular gala dinner.

IBIA Africa will be hosting its Annual General meeting in April of 2018 in Cape Town. If you would liketo attend and or have an interest in joining the regional Executive Committee and/or any of the IBIA Works Groups, please contact the Regional Manager (details below). We look forward to a successful 2018.

IBIA Africa Bunkering Conference 20 – 22nd March, Tenerife, Canary Islands (Training) IBIA Africa AGM 19 April, Cape Town, South Africa Should you require any further information regarding the Africa events, training or sponsorship opportunities contact:

Tahra Sergeant, IBIA Regional Manager Tel: +27 21 412 1593 Email: tahra.sergeant@ibia.net

World Bunkering Spring 2018


Asia Report

IBIA ASIA REPORT: OCTOBER TO DECEMBER 2017 Successful training seminar kicks off a packed programme for 2018

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he impending sulphur in fuel cap is of course attracting a lot of attention here in this major bunkering centre. On 11 October I was a speaker at the Argus Media Conference, covering the topic ‘IMO 2020 are we prepared?’ It was also a major theme at the IBIA Annual Convention which took place in Singapore in early November. We will be revisiting this topic throughout the year.

Events With Asia Pacific Maritime (APM) and SIBCON taking place in Singapore, this is going to be a very busy year for our Asia Region team.

We have also been busy outside Singapore and on 23 to 26 October we conducted two seminars on Mass Flow Meter (MFM) bunkering using Singapore’s Technical Reference for MFM (TR ) for Chinese shipowners in Shanghai and Shenzhen. In total the event attracted some 50 members of the local bunkering community.

Our event will highlight key topics of interest to the bunker sector with several well know industry figures agreeing to share their expertise.

Back in Singapore we attended the Monthly MFM Working Group and various Task Group meetings - covering system Integrity and security, traceability and meter selection – that are working on a review of TR48:2015 which is intended to be upgraded to a Singapore Standard. This work has carried on into the New Year. Training IBIA will continue to deliver specialised training for the bunker sector. We are offering a two-day Basic Bunkering Course and an Enhanced Bunkering Course, which also takes two days and like the Basic Course covers the relevant Singapore Standard, SS600:2014 as well as TR48:2015

Details are available at www.ibia.net/training or alternatively you may contact Nadiah at +6564720916 or nadiah@ibia.net.

World Bunkering Spring 2018

Right now our team is gearing up for APM, which runs from the 14 to 16 March. IBIA will contribute a half-day conference on Thursday March 15.

At time of going to press the line-up looks like this: • How are ship owners responding to the bunker challenges in preparing for the 2020 deadline? Ashley Noronha, Teekay Shipping Singapore • Fuel quality and quantity challenges from a fuel testing and inspection agency perspective. Rahul Choudhuri, VPS Singapore • How is Singapore positioned with the fuel availability and price in the short term and the 2020 deadline? (TBC) • Scrubber technology developments and the 2020 deadline. What is the take up rate now and will it increase? (TBC) • Mass Flow Meters - post implementation challenges and the regulatory framework. Senior official MPA

• How does cross border insolvency, as occurred in the Hanjin case affect judicial recognition and payment claims? Danny Chua, JTJB Following APM we will be concentrating on preparing for the IBIA Asia Gala Dinner, to be held on 26 April 2018. Forming part of Singapore Maritime Week and building on our successful run of IBIA Gala Dinners in Singapore over a number of years the prestigious event takes place at Goodwood Park Hotel, Singapore. We cordially invite you for a night of toasts, good cheer and gourmet delights. Tickets are still available: Individual (IBIA member): S$180.00 Individual (Non-IBIA member): S$200.00 Booking for 1 table (10 places IBIA member): S$1800.00 Booking for 1 table (10 places Non-IBIA member): S$2000.00

To purchase your tickets, visit https://ibia.net/event/ ibia-asia-gala-dinner-2018/ or contact Nadiah on +65 64720916 or email nadiah@ibia.net for more details

From left: Simon Neo (IBIA Asia), Richard Tan (Pavilion Gas), Colin Yong (MPA) Elfian Harun (MPA) and Danny Chua (JTJB) at the IBIA Annual Convention dinner party. ©Nigel Draffin

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INTERVIEW

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TOTAL EMISSIONS STRATEGY

Oil major Total clearly takes the 2020 sulphur limit seriously. So seriously, in fact, it has created a specific position to focus on it, while also keeping an eye on the longer term intentions to cut CO2 from shipping. World Bunkering’s Unni Einemo spoke to Jérôme Leprince-Ringuet about how the company is preparing for a low-emission future

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érôme Leprince-Ringuet has a jobtitle that would look strange to anybody that isn’t familiar with the International Maritime Organization regulation limiting the sulphur content in fuels used by international shipping to no more than 0.50% as of 2020. But for those who know, it makes perfect sense that as of April 2017, he was appointed Strategy/Global Cap Implementation Director at Total Marine Fuels Global Solutions. Prior to taking up this post, LeprinceRinguet worked for Total in refining, supply and marketing for over two decades. His new role is testament to the significant impact the global marine fuel sulphur cap is set to have on the refining sector. UE: We have heard a number of predictions regarding how the global fleet will comply, and levels of noncompliance. It seems most expect very limited initial use of abatement technology (scrubbers) and LNG, meaning low sulphur oil-based fuels will be the main compliance option. From a supplier’s perspective, how do you cope with this uncertainty? Do you have your own forecasts for what type of fuel demand and compliance levels we can expect?

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JLR: Let’s first recall that there is not one single solution for the shipping industry to comply with the 2020 regulation. We will have to deal with completely new fuel mixes, made of a variety of low sulphur fuels, but comprising also LNG, other alternative fuels, and a remaining share of high sulphur fuels. It is an exciting challenge for Total Marine Fuels Global Solutions, and our teams are committed to take it up! LNG has become reality for us in 2017, with Brittany Ferries and CMA CGM pioneer contracts. On the conventional fuels side, we are currently working on different scenarios with our trading and refining entities, in close interaction with our customers. UE: To what extent do you expect that Total will be ready to replace high sulphur fuel oil (HSFO) with compliant fuels in 2020, and will there be regional differences in your capacity to do so? How will you manage the transition to the 0.50% sulphur limit? JLR: Total being an integrated energy company, we are present across the marine fuel chain, from production to blending, trading, shipping and marketing. We will definitely produce low sulphur fuels that comply with IMO future regulation.

With respect to the fuel oil formulation, based on their strong historical experience, our R&D teams are currently exploring the future recipes, qualities, and associated engine performances. UE: Does Total intend to offer different products for ECA compliance and for the global limit? JLR: Our ambition is to serve the needs of our customers, and ECA compliant fuels are part of the future fuel mix. UE: Do you expect that the products will be very different from one refinery to the next, or could they be produced in a relatively uniform way to address concerns about the compatibility of 0.5%S fuel blends from different sources? JLR: Let’s remain alert to the fact that a plethora of new fuel formulations will emerge, likely to lead to issues around stability and compatibility. Obviously, each refinery has a specific production scheme, some of them will just use low sulphur crudes bottoms, others will use cracked materials, while others will leverage resid desulphurisation units. I also expect traders to enter the picture, and blend lighter components into the bunker pool.

World Bunkering Spring 2018


efinitely, there won’t be uniformity. What makes Total a trustworthy bunker supplier is our proven historical expertise in the production of all grades of fuels, similarly we will make sure that the products we offer in 2020 are safe, and do not cause any issue to on-board fuel management system and engines. UE: It seems that at present, many owners would prefer MGO over unfamiliar 0.50%S blends that do not conform to ISO 8217 distillate specs. Do you expect owners will change their minds and if they don’t, will there be enough to go around if demand in 2020 is predominantly for MGO? JLR: I do not expect owners to stick to MGO if there is a lower-price option. Again, it is a matter of trust. That’s why we need to work hand-in-hand with our customers. UE: Assuming high levels of compliance, HSFO bunker sales will shrink dramatically in 2020. Where do you expect Total will continue to offer HSFO to ships? Will Total be prepared to charter barges specifically for this purpose? JLR: HSFO demand will mostly depend on the number of vessels adopting scrubbers. Given current trends, it seems likely that there will be a large cut in the number of bunkering barges dedicated to this product. We will keep offering it in our main ports, and in all cases, our decisions will be driven by customer’s needs. Part of this HSFO market will certainly switch to term contracts. UE: Total has made a clear commitment to providing LNG as a marine fuel, in particular with the agreement to supply the CMA CGM newbuilds with LNG. The company has already said it is considering chartering on long-term basis a LNG bunkering vessel to supply CMA CGM and other customers in Europe.

INTERVIEW

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Which locations are you currently considering for LNG supply (both in Europe and elsewhere) and when is the supply infrastructure expected to be in place? JLR: The CMA CGM agreement is a major milestone in our LNG journey, making Total Marine Fuels Global Solutions the first company to supply LNG to container ships of this size. Our new bunkering vessel is expected to come into service in 2020 in Northern Europe. Others locations are under study, driven by our view that the demand will primarily grow in the major European and Asian bunkering hubs. UE: IMO has a new agenda item on “effective implementation” of the 0.50% sulphur limit to address the issues arising from the transition and encourage compliance. Do you have any thoughts on what the IMO could do and how IBIA can help the industry at the IMO? Specifically, what do you think about the proposal coming up for discussion at IMO to ban the carriage of fuel exceeding the sulphur limit unless the ship has abatement technology?

Total Marine Fuels Pte Ltd is one of the 13 founding members of the ‘Global Industry Alliance’ (GIA), a new IMO public-private initiative that aims to bring together maritime industry leaders to work towards a low-carbon future for shipping. Can you tell us a bit about Total’s involvement in this? JLR: It is extremely important that the shipping industry sets its targets and roadmap for the coming decades in terms of greenhouse gas emissions reduction. Left out of the Paris Climate Agreement, the time is now to demonstrate a commitment, not only from the IMO member States, but also through the direct involvement of the private sector. It is exactly the meaning of our participation to this initiative, as we make the climate issue an integral part of our global strategic vision. On a more personal note, I am quite impressed by the gathering of such highly experienced leaders, representing all maritime sectors and activities, and committed to make this group deliver ideas and projects with real impact.

JLR: Total, as a physical bunker supplier, does not want to substitute the authorities in enforcing the new regulation. Our commitment is to be transparent and to report on our commercial activities if authorities request it. As an IBIA member, we support the initiatives in the advocacy toward full enforcement of the global cap, among which is the idea that HSFO should not be found on board a vessel without scrubber. We also advocate for appropriate number of controls, to ensure a level playing field for all bunker suppliers and shipping companies. As such, we highly encourage Flag States to make a clear stand on how they will enforce the new regulation. UE: Looking further ahead, the IMO is under pressure to reduce CO2 emissions from shipping. Jérôme Leprince-Ringuet ©Alexandre Surre

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fuel QUANTITY

Singapore cracks down Having pioneered mandatory use of mass flow meters, the MPA is taking firm action to enforce the rules

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ver a year has passed since the use of mass flow meters (MFM) became mandatory for marine fuel oil deliveries in Singapore. According to IBIA’s regional manager, Simon Neo, the use of MFM has so far proven to be reliable and believes most shipowners would agree. He adds: “Most if not all of the suppliers in Singapore are now settled into using MFM.” Prior to Singapore’s wholesale introduction of MFM there was considerable speculation as to whether there would still be significant demand for the services of surveyors. Neo comments: “I understand that some bunker surveying companies in Singapore lost business last year as bunker buyers cut costs by not engaging them. But on the other hand, we have also heard there are other surveying companies in Singapore which are asking for more surveyors due to an increase in. demand. This could be due to many reasons but one of the most common is that ships’ engineers are not trained or well versed in MFM. Documentation checks are an important component of the MFM system, which is why a good bunker surveyor with very good knowledge of the MFM system and procedures will help make the job much easier for the engineers onboard the receiving vessel.” He adds: “There is also the sampling of the bunker fuel that been delivered to the vessel which needs to be looked at and where the surveyor’s assistance can be invaluable. Also required procedures such as the sealing and piping checks can take a fair bit of time that the engineers may not have. Carrying out these checks is very important as it is the integrity of the whole MFM system that we are talking about.”

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On the subject of the integrity of the whole system, the Maritime and Port Authority of Singapore (MPA) has taken robust action against companies where irregularities have been discovered. So has MPA tightened its procedures to stop circumvention of the MFM? Neo says: “The Technical Committee (Bunkering), Working Group for MFM and MPA together are working on tightening the procedures, system integrity, security and sealing of the MFM. These new standards will, we hope, be ready before SIBCON 2018.” In March last year, soon after MFM became mandatory, mutual liability insurer North of England P&I Association flagged up potential problems and said that ships should continue to take soundings onboard before and after bunker delivery. “The introduction of MFM for bunker operation in Singapore is a welcome development. Unfortunately it appears that although the equipment has changed, the behaviour of some unscrupulous suppliers has not,” the P&I club warned. Commenting on reports that MPA had discovered pipework irregularities, North of England said: “One implication of such piping fixture irregularities may be that they allow some quantity of bunkers to be siphoned back into the bunker tanker tanks whilst bunkering is in progress. This would mean that the amount registered on the MFM totalizer is greater than that delivered to the vessel, with the vessel receiving less than that recorded. Piping fixtures form an integral part of the MFM system, as specified in the Technical Reference for Bunker Mass Flow Metering (TR48). One of the roles of the bunker surveyor is to check the integrity of this system.”

While bunker tankers no longer accept ships’ figures based on soundings, the P&I club advised: “Soundings should still be taken onboard before and after bunker delivery and, in case of a difference between the vessel figures and the BDN, letters of protest should be issued. Bunker suppliers will not usually accept these letters of protest or will refuse to sign. But in the event of a dispute, they are evidence to show a difference between the MFM figure and the figure obtained by the sounding method. Charterers should be informed of any difference immediately.” However, while even tighter procedures may be in the offing, MPA has already showed it is not prepared to tolerate irregularities. In November it revoked the bunker supplier and bunker craft operator licences of Transocean Oil Pte Ltd, meaning that the company is no longer allowed to operate as a bunker supplier and bunker craft operator in the Port of Singapore. According to MPA, as part of its “ongoing regulatory efforts to ensure the integrity of bunkering in Singapore”, checks were conducted on Transocean in March and April last year. MPA’s investigations revealed that there were several falsifications of records and discrepancies in the stock movement logbooks on board the bunker tankers operated by Transocean, which breached the terms and conditions of their bunker supplier and bunker craft operator licences.

World Bunkering Spring 2018


Separately, Universal Energy had accumulated demerit points for delivery of bunkers that were severely aerated as well as for stoppages during bunkering operations. MPA explained that, with the demerit points accumulated, the two companies had failed to be accredited under the Accreditation Scheme for Bunker Suppliers, a key requirement for the renewal of bunker licences under the

terms and conditions of the licences. Again, both companies are no longer allowed to operate as a bunker supplier and bunker craft operator in Singapore. The MPA warned all licensed bunker suppliers and bunker craft operators to “adhere strictly to the terms and conditions of their bunker licences�. MPA said it would take firm action, including suspension or revocation of licences, against any bunker company that contravened the licensing conditions.

Mass Flow Meter used in Singapore

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fuel QUANTITY

Earlier, in August, MPA had taken tough action against two other companies. It announced that it would not be renewing the bunker supplier licences of Panoil Petroleum Pte Ltd and Universal Energy Pte Ltd when they expired on 31 August 2017. According to MPA, Panoil made unauthorised alterations on the pipelines of their bunker tankers and had accumulated demerit points for non-compliances with the bunkering procedures.


Caribbean

Carrying on and growing

Despite the devastation inflicted on parts of the region by Hurricane Maria, the Caribbean’s fuel suppliers have been looking ahead, John Rickards reports

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fforts to expand and future-proof the region’s bunkering offerings on the back of solid traffic volumes and something of a steadying in the oil market have dominated the sector. The US Virgin Islands were hit hard by Maria, particularly St Croix, which had avoided serious damage from Irma just before. Nevertheless, Limetree Bay Terminals, a joint venture between US-based Freepoint Commodities and ArcLight Energy Partners has put in a request for permission to expand with the US Army Corps of Engineers, a request which was still under consideration at the time of writing. The proposed development would add an offshore mooring and attached pipeline nearly half a mile long to service tankers of up 76-foot in draught. Requiring a trench of around 500m to be excavated through corals and sensitive habitat, the development would involve relocating an estimated 2,215 coral colonies to areas unaffected by the new pipeline. Late last summer, another Freepoint subsidiary, Caribbean Bunkers, inked a deal with Aegean Marine Petroleum to partner on selling bunkers from the terminal. Rob Peck, Freepoint’s senior managing director of global oil, said: “[Building the facility’s bunker business] will be a core strategy in our global oil platform. The St. Croix Limetree Bay Facility has brought a lot of promise to the region and continues to grow at an impressive rate. “We have worked with Aegean for a number of years and are privileged to be cooperating with a company that is so well-respected in the industry. We believe this agreement will be extremely beneficial to both companies as we expand and optimise our business in the Caribbean.”

World Bunkering Spring 2018

Aegean handles sales and marketing for fuel oil and MGO supplied by Freepoint. AMPNI Americas manager Manolis Chochlakis said: “We believe working together with Freepoint provides us both with incentives to jointly grow our presence in the region. The Aegean and Freepoint teams are experienced groups that have worked well together in the past. They will ensure our customers in the Caribbean get first class service.” Also hit hard by Maria was Puerto Rico, where the port of Yabucoa took the full force of the storm. A new bunker operation in the port, a collaboration between Ches Bunker Services and Novum Energy was announced a month before the hurricane hit. Luckily, while domestic electrical power was still being restored in the city at the start of 2018, the Buckeye Global Marine Terminals facility from which the new bunker outfit operates was back up and running two weeks after Maria and tanker trade to the island had resumed. No such issues in Jamaica, though, another country aiming to take advantage of its position on the main trades to become a major fuel hub in an increasingly busy region. Kingston-based West Indies Petroleum Ltd has been taking great strides in recent years to become an important player by adding significant shore storage and expanding

its trading capacity and reach. World Bunkering spoke to WIPL’s director Tarik Felix to find out how the company’s efforts have been paying off. WB: In business terms, how was 2017? Has the company’s expansion seen a consequent effect on volumes? TF: We acquired the Jamaica Broilers ethanol facility [in Port Esquivel] in June 2016 and completed all work on it in February 2017. All the retro-fitting is finished to make it into a multi-products terminal, storing different grades of gasoline, diesel and fuel oil. The terminal is fully operational and all the tanks are full, so we’re at 100% capacity. This has enabled us to become a stronger player in the market. We’re exporting fuel now, to the Caribbean and Central America, from the terminal and going into different markets. WB: You announced in March last year a major deal with a “massive global partner”. Nearly a year on, can you give any more details about that deal and what it’s meant to WIPL? TF: Our partner is a major player and the deal gave us access to a full range of fuel options, including jet fuel and ethanol, LPG and more, for supply to our customers.

WIPL has expanded its operations across the Caribbean ©Nigel Burgher

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Caribbean

WB: What are your expectations for 2018? TF: This year is about growth. We want to be moving more fuel into more markets in the Caribbean and Central America. We’re looking to acquire more tankers to do this. We’re part of the Jamaican Logistics Hub [initiative], which the government has been very keen to see happen, to turn Jamaica into a trading hub. The initiative is moving forward in this sector, so we’re very happy to be seeing the government’s vision coming to life. WB: The 2020 cap isn’t far off; how ready is WIPL and the rest of the region?

The result of the spill was the announcement of a four-year plan to massively overhaul its aging infrastructure at a total cost of around US$2.36bn. A full “assets integrity assessment” had been called for two years before by the thennewly appointed Energy Minister Nicole Olivierre, who was sharply critical of falling production levels and said, “It is therefore time to take a serious look at Petrotrin to determine its capability to exploit its hydrocarbon resources… The country cannot wait forever for the company to get its act together. The clock is counting down on Petrotrin.”

TF: I can’t speak for the rest of the region, but we’re ready for 2020. We’ve set up our terminal with 2020 in mind. We’ve done all the necessary work in terms of piping and equipment for 2020 so we will definitely be compliant. And we’ll have full supply for the market in 2020, including ‘eco’ fuel products.

While Ms Olivierre was sacked from the post a year later, similar sentiments were heard again this autumn at the appointment of a new chairman and board by Prime Minister Dr Keith Rowley, who called the company’s situation “very serious”. With huge debts and liabilities “the company cannot now discharge”, leaving the burden on the Finance Ministry if the situation cannot be turned around.

In the southern Caribbean, Trinidad and Tobago has seen some shifts in its bunkering sector. Curacao’s Curoil announced last April that it was adding the island state to its offshore supply locations, alongside Curacao, Bonaire and Aruba. The company has been slowly spreading its coverage in recent years, piggybacking on cruise demand.

Next year, Petrotrin faces a debt repayment of US$850m, with a smaller tranche due shortly afterwards. A major spill in the Gulf of Paria could, Rowley said, bankrupt the country, and at the same time, Petrotrin was refining oil at a loss, the state paying to import oil for the company to refine, rather than producing its own.

Not every course of expansion and improvement runs as smoothly, however necessary it might be. State-run Petrotrin announced last spring that it was to re-enter the bunker supply market from Pointe-a-Pierre, taking the 6,936 dwt tanker Valme B on an initial year’s hire, with the aim of improving the company’s profitability and bringing bunker traffic into the domestic market, and that it was aiming to purchase its own bunker barge to add to its capabilities.

“Oil is in the ground and if you don’t drill you don’t get it,” Rowley said. “Petrotrin has not been drilling, has not been able to drill largely because of its serious financial constraints, and if you don’t deal with those financial constraints your very existence is to be questioned.”

Three weeks after making the announcement, though, one of the company’s storage tanks, which had been deemed at high risk of accident by an earlier survey (local press reports since 2003, the same year the company launched a US$18m upgrade of the Pointe-a-Pierre refinery), ruptured, despite a repair contract for it apparently being filed the year before. The incident saw the spill of an uncertain amount of oil - some reports suggest 20,000 barrels, others have Petrotrin refusing to say. Some of the oil escaped containment booms to reach the Venezuelan coast.

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Petrotrin couldn’t be reached for comment on the status of its bunkering business or its outlook for the year ahead. However, it seems safe to say that if the infrastructure upgrades go ahead as planned, and Petrotrin’s trading position strengthens as a result, the impact on its bunker arm can only be a positive one.

Trinidad and Tobago became home to one of the IMO’s latest centres to support low-carbon shipping last year, intended to support the whole of the Caribbean region as part of the Global Maritime Technology Cooperation Centre Network. Trinidad is far from the only gas producer in the region, and despite lingering doubts over the likelihood of putting in place the necessary infrastructure and handling capacity in the short term, many of the Caribbean’s main gas interests expect LNG to become a major factor in its bunker sector in coming years. Many Caribbean states have to spend disproportionately high amounts importing oil for domestic power generation, and switching to LNG for shore-side use could represent a massive cost saving despite the relatively high capital outlay involved. And where domestic LNG infrastructure grows, bunkering is likely to follow given the interest in the fuel, not least within the cruise industry. In addition, some fuel suppliers have questioned whether local refiners will be able to produce enough MGO to satisfy demand once the 2020 cap comes in, adding further incentive to explore alternatives. AES Dominicana launched LNG bunkering from its AES Andres terminal in the Dominican Republic in late 2016, using gas imported from Trinidad, while US-based TOTE Maritime uses LNG fuel on its route between Florida and Puerto Rico and the Caribbean. Likewise, Eagle LNG began supplying Crowley’s container ships serving Puerto Rico from a new liquefaction plant in Florida last year, a move which the company said would also allow them to export LNG in ISO tanks to other customers in Puerto Rico and across the Caribbean. With the use of LNG for bunkers already spreading on Jones Act trades thanks to the existing North American ECA and the economic pressure on many Caribbean states to cut their dependence on expensive imported oil for domestic use and modernise their power grids and facilities, most key drivers seem to be in place for the region to see strong LNG uptake in the coming years.

©Virgin Islands National Guard St Croix was hit by Hurricane Maria in September, but bunkering plans were unaffected

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Central America

Rob Bertholf The Panama Canal has been keen to push for greener ships, albeit without huge incentives for owners

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Going green The expanded Panama Canal is now looking to reinforce its environmental credentials, John Rickards reports

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ince the start of last year, the Panama Canal Authority (ACP) has been keen to promote the waterway’s green credentials - traditionally its putative GHG savings compared to the alternative voyage around South America - and to provide some manner of incentive to more efficient and environmentally sound ships passing through. In October last year, the ACP launched its own emissions calculator too for shippers, describing it as “an innovative new tool which will offer shippers the most accurate assessment of their carbon emissions, rank those who have reduced the most emissions by transiting the Canal versus alternate routes, and encourage action to reduce carbon footprints”. “The Panama Canal has always been committed to reducing its carbon footprint and impact on the environment,” said Panama Canal Administrator Jorge L. Quijano. “This new tool allows us to bring that same commitment to our customers, giving them the information needed to make a more informed and environmentally conscious decision when planning their routes.” The calculator works by “leveraging technology already aboard the world’s maritime fleet to capture an array of data on shippers (e.g. vessel type, size, capacity, speed, fuel consumption and route) and provide the most accurate measurement of the GHG they emit, including the total emissions saved by choosing the Panama Canal over other routes”

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according to the ACP. Data is then pooled to provide an overall “CO2 Emissions Reduction Ranking”. The ACP said it would also use the tool to reduce its own carbon footprint, measuring and tracking emissions from its domestic day-to-day operations to support the planning of a low carbon strategy that will eventually lead the canal to become carbon-neutral. The ACP launched its ‘Green Connection Award’ in 2016, going to any transiting applicant ship with an Environmental Ship Index score of 35 or better, which has since been given to 85 ships (at last time of reporting), as well as the Environmental Premium Ranking, a more complex measure based on ESI, EEDI, NOx emissions or LNG use. However, the award merely provides qualifying vessels with a plaque, perhaps explaining why it’s only 85 ships who’ve taken it up when the Canal saw over 13,000 transits last year, and the EPR, which has been awarded to 275 vessels, a percentage increase in the “number of transits” criteria or either 10 or 20% used to determine vessel priority when booking transits. The ACP’s desire to promote environmental consideration has to be applauded, but its incentivisation would seem to be a little lacking, with no great financial draw for ships to perform better.

Operators also need to submit the necessary paperwork to determine whether they qualify. Consequently there has only been a small percentage uptake. Nevertheless, the obvious winners under the current EPR system are LNG-powered vessels, which automatically hit the second, 20% tier just for having a gaspowered engine. Panama has become more welcoming to LNG carriers in the past couple of years, relaxing its rules banning them from taking bunkers at any of the Canal zone’s anchorages in late 2016 to allow bunkering in the Explosives Area of the Pacific Anchorage. This tentative relaxing of some of the rules regarding LNG shipments can only boost the chances of building LNG infrastructure on the west coast to serve LNG-fuelled vessels. Indeed, last year France’s ENGIE group and AES Corporation announced they were expanding on their existing partnership to market and sell LNG to third parties in the Caribbean, via AES’ Andres regasification facility in the Dominican Republic, with a new joint venture in Colón. The venture is to be based at the new Costa Norte LNG terminal under construction and due to be completed this year, which is owned 50/50 by AES and Inversiones Bahía. The terminal’s total capacity will be approximately 1.5 million tonnes per annum, of which 25% will be used for the 380 MW AES Colón CCGT currently under construction on the same site. World Bunkering Spring 2018


Central America

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he remaining capacity will be available for the joint venture to sell to third parties, including for bunkering. In a statement at the time of the announcement, the companies said: “ENGIE’s and AES’ objective continues to focus on providing a cleaner and more cost-effective alternative to oil-fuelled power generation, while at the same time satisfying a growing need for natural gas in Central America and the Caribbean. This new agreement will pave the way for ENGIE and AES to supply LNG to industrial customers, develop small scale demand and provide bunkering services.” World Bunkering spoke to ENGIE to get an update on the project, given its potential importance for supporting the establishment of LNG bunkering in Panama itself. “The construction at the Costa Norte terminal by AES is progressing well and no delays are expected,” a company spokesperson said. “As far as our marketing progress goes, we have started to get traction with a number of end users, both in the retail market as well as in the power generation market in Central America.” “We have already seen some successes of that same model in the Dominican Republic where we also have a partnership with AES, so we are optimistic.” The company wouldn’t be drawn on the scale of the potential bunker market once the facility is up and running, but did say: “The fact that there is an existing LNG terminal will enable more attractive terms for LNG than if all the infrastructure had to be built.” That market could be sizeable, though. The Canal saw a total of 13,548 transits in its last fiscal year, up 3.3% on 2016. However, thanks to the larger neopanamax vessels now able to transit the expanded canal, the growth in traffic translated into a 22.2% increase in total annual tonnage to 403.8m Panama Canal tons (PC/UMS).

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Central America

Rob Bertholf LNG could have a part to play in Panama’s near future

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he ACP predicts that for FY 2018, transits should remain largely the same but tonnage should rise by an additional 6.5% as average vessel size continues to grow. Traffic remains dominated by box ships. The container segment continued to serve as the leading market segment of tonnage through the canal, accounting for 35.3% of the total cargo tonnage. Tankers, including gas carriers, represented 26% of the total, followed by bulkers and vehicle carriers, and 68% of the total cargo either originated in or was destined for the US. With container ships representing the segment with the fastest uptake of LNG fuel use, and the US equally proving a rapidly growing source of bunkering facilities and infrastructure itself, it seems likely that box traffic serving the US should form one of the prime markets for LNG use, and having the capacity to serve ships on those trades would only benefit Panama. The country remains a key bunker location regardless, of course, second only to Brazil across Latin America. The latest figures available at time of writing, covering the first nine months of 2017, showed that fuel sales in Panama were up 19% year-on-year to 3.48 million tonnes. The vast majority remains fuel oil, but MGO rose a healthy 33% to 259,543 tonnes as part of that total. As with the canal’s overall cargo throughput, the rise in sales volumes would seem to tally with the increased size of vessels transiting the canal rather than increased bunker calls per se. If so, and if the ACP’s own estimates hold water, figures for next year should continue to rise, albeit by a much smaller margin.

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Happily for Panama, the once-touted though also forever-doubted rival project proposed for Nicaragua seems to have evaporated for the time being. While the Chinese development company, HKND, awarded the huge concession to build the canal was still promoting its presence in the country as late as November, no further work seems to have been carried out on the ground and official channels have gone silent on the topic. Local press reports that despite official ground-breaking work on a new 13km service highway between Miramar and the Bay of Brito, intended to bring in heavy machinery for canal infrastructure work itself, taking place to much fanfare in 2014, there is still no paved road, just a dirt track, and none of the other infrastructural additions HKND promised before cutting began have appeared elsewhere in the country, nor has any construction work even gone out to tender. Indeed, quite the opposite; at the start of last year, Nicaraguan vice president Rosario Murillo announced a revival of the Costanera coastal highway project

to aid tourist traffic along the west coast of the Rivas Isthmus, with a reported finish date in 2019. The route for the US$120m project takes it clean across where the canal would have gone. Doubts over the project’s economic and engineering viability dogged it from the start, and redoubled when HKND head Wang Jing saw much of his personal worth tanked by 2015’s Chinese stock market crash. With Panama’s expansion completed smoothly, and Suez too, as well as slower growth in the Chinese economy and a shift in Asian manufacturing southward, there is no longer any obvious demand for such a route even as box ship sizes continue to rise. With the huge engineering challenges involved given Nicaragua’s terrain and seismic instability, perhaps there never was. A report initially commissioned by HKND on the project’s economic viability from US consultants McKinsey & Company was never released, if it was ever completed, HKND claiming its contents were a “commercial secret”. It remains to be seen if there’ll be any attempt to salvage the project. HKND did not respond to requests for comment.

Patrick Denker Expansion has seen a solid jump in bunker sales

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World Bunkering Spring 2018


SCRUBBERS This Korean ferry newbuilding has been fitted with a Wartisla scrubber but how many other ships will have this technology by 2020

Will scrubbers take off?

Scrubber uptake by 2020 may be less than expected, an IMO study author told an IBIA forum but nevertheless another specialist consultancy sees about a third of the world fleet using exhaust gas cleaning systems by 2030

In fact these two projections are not mutually exclusive as it is probable that many owners will take a wait and see approach until after 1 January 2020 when the 0.50% global sulphur in fuel limits comes into force. The base case figure for projected uptake of exhaust gas cleaning systems (EGCS), or scrubbers, in the official availability study presented to the International Maritime Organization (IMO) in 2016 may be too optimistic, the study’s lead author told a forum hosted by IBIA on 13 September, during London International Shipping Week (LISW). Jasper Faber of CE Delft said the base case in the study regarding how many ships will have EGCS installed by 2020 may not be happening because current orders are slow. He said the prediction was based in part on the anticipated “excellent” economic argument for installing abatement technology to allow continued operations on high sulphur fuel oil (HSFO) in 2020, when HSFO demand and its value relative to crude is set to drop sharply. Only around 400 ships have been fitted with or placed orders for the technology to date, well shy of the CE Delft base case in the official availability study for the IMO, which predicted that 3,800 ships would be ready to comply with sulphur regulations by using scrubbers in 2020,

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burning some 36 million tonnes of HSFO accounting for 11% of total global marine fuel demand.

It concludes that most ships will run on 0.50% sulphur content fuel to meet the cap.

Faber said “we may still see” something closer to the lower level of EGCS uptake predicted in the model, which pegs the number of ships using the technology in 2020 at 1,200 which would burn 14 million tonnes of fuel accounting for 4% of total marine fuel demand.

Foreship’s Head of Machinery Department, Olli Somerkallio expects that, post 2020, 0.50% sulphur content fuel will be blended from distillates and HFO of up to 2.5% sulphur content. Higher sulphur HFO (HSHFO) can be used as a marine fuel where scrubbers are installed, but could also be a substitute fuel in gas power plants in former Soviet countries, or a coal substitute. This will change the pricing dynamic of HSHFO: to compete with coal, prices would have to be relatively low.

Asked what might be different if CE Delft was to do the 2020 availability assessment for the IMO today, Faber said both the EGCS uptake figure and the projected uptake of LNG as a marine fuel by 2020 “were probably on the high side”. However, this would not change the study’s overall conclusion that there will be sufficient refinery capacity to meet global demand for low sulphur fuels in 2020. Unexpectedly high or low investment in EGCSs and LNG ships would have to coincide with much higher transport demand than currently predicted to change that conclusion. Naval architecture and engineering consultancy Foreship also sees low uptake of scrubbers prior to 2020. It notes that, while the 0.10% fuel sulphur content limit inside emissions control areas has brought 1,500 scrubber installations, yard capacity could only grow that number to 3,0004,000 by 2020.

He says that shipowners weighing up their future marine fuel choices after the 2020 IMO 0.50% sulphur cap should also consider oil company expectations that up to 30% of commercial shipping will gravitate back to high sulphur fuel oil by 2030. The implication is that HSHFO will return to favour as a marine fuel after the dust settles. “This will have a significant impact on the ROI of scrubbers in the future,” says Somerkallio.

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IMO

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Peace breaks out, a bit Shipping industry and environmental groups agree on banning non-compliant fuel when IMO’s global sulphur cap comes into force but they still disagree sharply on the way forward for cutting greenhouse gas emissions from ships

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n a rare show of unity several big environmental campaigning groups and global shipping industry bodies have joined together in calling for an explicit prohibition on the carriage of non-compliant marine fuels when the global 0.50% sulphur cap takes effect in 2020. The International Maritime Organisation (IMO) has agreed that from 1 January 2020 the maximum permitted sulphur content of marine fuel (outside Emission Control Areas) will reduce from 3.50% to 0.50%. Unless a ship is using an approved equivalent compliance method, there should be no reason for it to be carrying noncompliant fuels for combustion on board. The 2020 sulphur cap will provide substantial environmental and human health benefits as a result of the reduced sulphur content of marine fuels. At the same time, the 2020 cap will significantly increase ships’ operating costs and will present major challenges to governments that must ensure consistent enforcement across the globe. To secure the intended environmental and health benefits, the organisations say it is of utmost importance that enforcement of this standard is efficient and robust globally. Any failure by governments

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to ensure consistent implementation and enforcement could also lead to serious market distortion and unfair competition. In a joint statement ahead of a critical IMO meeting in February, at which proposals for a carriage ban will be discussed by governments, environmental and shipping organisations assert that such a ban will help ensure robust, simplified and consistent enforcement of the global sulphur cap. A number of international associations representing the global shipping industry, as well as the Cook Islands and Norway, have already submitted proposals to IMO to ban the carriage of non-complaint fuels. These proposals call for an amendment to Annex VI of the MARPOL Convention, stipulating that ships should not carry fuel for propulsion with a sulphur content above 0.50% (unless they are using an approved alternative compliance method). The call for a prohibition on the carriage of non-compliant fuels is now supported by the following organisations: BIMCO, Clean Shipping Coalition, Cruise Lines International Association, Friends of the Earth U.S., International Chamber of Shipping, International Parcel Tankers’ Association, INTERTANKO, Pacific Environment, World Shipping Council, and WWF Global Arctic Programme.

IBIA has not formally stated a position on a carriage ban but will take part in discussion at the IMO meeting in February after consulting its members. At the time of writing, it looked likely that IBIA will also support the proposal, but with certain caveats, such as not penalising ships for having non-compliant fuel as a result of non-availability, and ensure it doesn’t prevent the development and adoption of new onboard abatement solutions in the future. Greenhouse gas disunity While there is agreement on the need to radically reduce sulphur emissions from ships, there is much less meeting of minds on how shipping should cut its greenhouse gas emissions. With a potentially crucial Marine Environment Protection Committee (MEPC) meeting coming up in April the campaigning groups have been pushing hard to get their message across. In November, Members of the European Parliament called for the IMO to adopt clear emissions reduction targets and immediate measures by 2018 to reduce international maritime CO2 emissions at the global level in line with the goals set by the Paris agreement. This move was strongly supported by the ‘green’ campaign groups.

World Bunkering Spring 2018


Then in December, at the One Planet summit in Paris, 35 world leaders called for shipping emissions to be part of every country’s emissions reductions commitments under the 2016 Paris Climate Agreement. The leaders also called for a cap on CO2 emissions from shipping, reaching zero emissions towards the mid-century, to be agreed at IMO. Transport & Environment complained: “The IMO was first mandated in 1997 to address international ship emissions and has yet to deliver any meaningful results. Two years after Paris, it is still struggling to agree an interim strategy. At the latest meeting, in October, to develop such a strategy by 2018, even the urgency of delivering reductions in the short term was hotly disputed.” The linking of individual countries’ CO2 emissions to those of shipping has always been viewed by the industry as impractical because of its global nature. There is also the sensitive issue of how to persuade developing countries that are not required by the Paris Agreement to cut emissions to the same extent or as quickly as developed ones to agree to an all embracing emissions reduction package for shipping. In a statement, ICS responded diplomatically, saying that it welcomed “the fact governments recognise that IMO is the only forum which can agree a suitably ambitious CO2 reduction strategy for international shipping, and the vital need for IMO member states to deliver at the critical MEPC meeting next April”. “But,” ICS added, “it’s important that the signatories recognise that this a political negotiation at IMO which requires them to understand the legitimate concerns of emerging economies about the potential impacts on trade and their continuing economic development, consistent with the UN Sustainable Development Goals.”

World Bunkering Spring 2018

If IMO is to succeed, the shipping industry body warned, “the signatories should not use this Declaration as an excuse to be locked in to their current positions rather than be pragmatic and flexible, in order to help IMO deliver some truly ambitious objectives that will also enjoy the broad support of the majority of IMO member states - which are the same nations which signed the Paris Agreement two years ago.” ICS added: “With regard to the demand that IMO should establish a peak year for CO2 emissions from shipping, the industry has already proposed this should be 2008, since when the sector’s total emissions have declined by about 8%, despite a 30% increase in trade during the same period, and that the sector should continue to hold its total emissions below 2008 levels. Encouragingly there is already widespread support for this as an initial objective prior to more dramatic absolute reductions once commercially viable zero carbon fuels become available globally.” It looks likely significant progress will be made at MEPC in April but whether that will satisfy everybody is another question. Zero emission ships by 2030? MEPC 72 in April this year is the first milestone in the IMO greenhouse gas (GHG) Roadmap. Lloyd’s Register (LR) commented: “The world is watching to see if an ambitious reduction strategy in line with the Paris Agreement can be delivered. To achieve this ambition, zero emission vessels (ZEVs) will need to be entering the fleet in 2030 and form a significant proportion of newbuilds from then on. LR and University Maritime Advisory Services (UMAS) recently published a new study, Zero Emission Vessels 2030, that aims to demonstrate the viability of zero emission vessels (ZEVs) – identifying what needs to be in place to make them a competitive solution for decarbonisation.

LR notes that, although none of the ZEVs are estimated to be more competitive than conventional shipping by 2030, the technology options are evolving rapidly and it’s possible that over the next 10 years the gap could reduce even further than this study estimates. But it cautions: “If this gap does not close then there may be a need for regulatory intervention in the near future, to drive the viability compared to conventional fossil fuels.” This new report assesses seven technology options for ZEVs, applied to five different case study ship types across three different regulatory and economic scenarios. These options consist of various combinations of battery, synthetic fuels and biofuel for the onboard storage of energy, coupled with either a fuel cell and motor, internal combustion engine; or a motor for the conversion of that energy store into the mechanical and electrical energy required for propulsion and auxiliary services. LR predicts that the costs of some of the components considered: fuel cells, batteries and hydrogen storage, could all reduce significantly, especially if they become important components of another sector’s decarbonisation, or if action taken during shipping’s transition assists with the technology’s development. It says: “For those in shipping with niche access to a low-cost supply of zero-emission fuel or energy sources, or an ability to pass on a voyage cost premium to a supply chain that values zero-emission services, the gap may already be closed.” “From preliminary conversations with shipowners,” LR says, “it was clear that the key considerations would be around wanting options that were viable at a moderate carbon price (e.g. $50/tonne CO2) and without too great an increase to the capital cost of the ship. It was also clear that the impact of the CO2 emissions must not just be moved upstream, to the electricity generation or fuel production process.”

Aquarius Eco Ship

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ENVIRONMENT

For example, Transport & Environment’s Faig Abbasov asserted: “The IMO has failed for 20 years to act on shipping CO2 emissions. The representatives of European citizens made it clear we have no time to waste anymore. Either the IMO gets its act together and implements reduction measures before 2023, or the EU will have to.”


Coral Marine Coral Products & Trading (Coral Marine), 100% subsidiary of Coral S.A, is a reliable physical Supplier offering a full range of marine fuels (residual & distillate products) to any type of vessel in Greece, from tankers to small fishing boats

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t Coral Marine, our aim is to become your strategic partner, maximizing value to your business. Our integrated supply chain ensures that we deliver the right quality & quantity of marine products on every supply. Over the last 92 years Coral S.A., (former Shell Hellas S.A), has operated in the Oil & Chemicals business and adhered to the highest operational and ethical standards. In 2010, Motor Oil Group acquired the commercial activities and assets of Shell Hellas S.A, and established a Trademark Licensing Agreement for the use of the Shell brand in the retail business in Greece, Balkans and Cyprus. Coral Marine is a company that always challenges the status quo; we believe in thinking differently. Our success and legacy of the company is founded on our commitment to consistently provide quality products and innovative valueadded services to the shipping industry in a safe, reliable, honest, transparent, efficient, as well as environmentally and socially responsible manner, while simultaneously building value for shareholders and business partners. Our strategy is to be the preferred physical supplier in the Eastern Mediterranean area by providing innovative quality products and valueadded services through our strategicallybased terminals under the highest Operational, HSSE & Ethical Standards. Our integrated supply chain, state of the art technology, experienced team of professionals, strong commitment to Health, Safety, Security and Environment (HSSE) and healthy financial standing are the pillars that support our strategy.

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We can assure our customers that they always receive quality marine fuels and services – wherever and whenever they need them within Greece – and that our fuels are delivered quickly, reliably, safely and at a competitive price. 1. Integrated Supply Chain Our advanced infrastructure, extensive logistics network and key partnerships enable us to offer a full range of marine products. To further reinforce this we have already established a solid supply network with key refiners including the Motor Oil Hellas refinery - parent company of Coral. Committed to providing differentiated solutions, we are the first to have introduced RMK500 & RMK700 at the port of Piraeus. Through our integrated supply chain, we are in a position to explore the supply of any marine product that can be of commercial interest now and in the future. Coral owns and operates a fully versatile storage facility in Perama with total capacity of 120.000 m3, 50.000 m3 of which are allocated exclusively for marine fuels, making this terminal the largest marine fuel terminal in the Eastern Mediterranean Area. The terminal has direct access to the sea, located in a radius of less than 200m from PCT and OLP docks. We have developed flexibility in order to adapt to changing conditions; the nature of the market requires a long term approach. Coral Marine will comply with the 2020 0,5% Sulphur Cap, and will be in position to offer a full range of products for different needs. All of our bunker deliveries are made by a state-of-the-art barge (Cptn Kostas IMO 9555204, built in 2010), which is owned by Coral Marine.

The barge has carrying capacity of 6800MT, segregated in 12 cargo tanks, equipped with Boiler for heating FO up to 65o C. This vessel has been vetted in compliance with international standards and subjected to extensive modifications, in order to achieve increased pumping rates of up to 800 MT per hour. We are among the first fuel suppliers world-wide to operate a barge – and any new barge to be added to our fleet – with Mass Flow Meter Systems for both HFO & MGO, in compliance with the requirements of directive 2014/32/EU D+B. Our MFM systems are sealed and are periodically verified in order to provide our customers maximum level of quantity assurance. Furthermore, high pumping rates - 800 MT per hour, along with MFMS, assist to significantly reduce the duration of bunkering operation and supply large bunker stems—even to container vessels on a short stay—without jeopardizing the normal course of their operations. Taking into consideration how vital the quality of fuel is to the shipping business, Coral is operating an in-house laboratory. This laboratory specializes in testing the quality of traded petroleum & lubricant products according to their respective standards, and is staffed by experienced chemists who use state-of-the-art scientific apparatus. Extensive tests are conducted during the receipt, storage, handling and delivery process of all products, certifying that they all meet ISO 8217 requirements. We strictly adhere to all specified parameters and we prevent any deviation from ISO 8217 limits by being proactive.

World Bunkering Spring 2018


b. Vehicles In regards to delivery by vehicle, we operate a fleet of vehicles, owned & subcontracted, dedicated to marine deliveries. All vehicles are equipped with GPS and electronic sealing which ensure the integrity and transparency of delivery. Tank Lorry manholes, bottom valves and API valves are equipped with electronic seals to record any operation and trigger alarms whenever needed The e-sealing system ensures; • Cargo control in terms of quantity and quality. • Mitigation of HSSE exposure; no need to access the top of the tanker in order to verify fuel quantity. • Reduced atmospheric VOC emissions due to minimum opening of manholes.

World Bunkering Spring 2018

c. E-Vessel We have introduced a web based platform where customers monitor the deliveries to their vessels in real time. E-Vessel is a revolutionary system which retrieves and displays data from Mass Flow Measurement System, ATG, Motor Valves, CCTV and SAP. Thus, customers are able to monitor the process of their delivery real time.

We are proud to have “Goal Zero” as our target for our HSSE performance. Coral‘s commitment on HSSE is designed to embed proactive intervention in our culture. Our HSSE Management System consists of behavior safety programs, risk assessments, hazard studies, asset integrity systems etc, which are designed to advance our HSSE awareness and our proactiveness, in every step of our operations.

3. People Our Competitive edge is our people; their in-depth knowledge and expertise of the shipping industry and their commitment to build long-term strategic partnerships with customers ensures that our customers are working with a reliable supplier dedicated to enhancing their business operations. We encourage our people to contribute fully to the achievement of superior business performance. Our success is leveraged by our ability to trade in a continuously changing commercial environment always in respect to our core values: honesty, transparency integrity and respect towards society, community, customers and business partners.

5. Investments We achieve top financial & operational results while adhering to the highest ethical standards. Since 2016, Coral Marine has deployed and implements an investment plan which will exceed 10M USD by 2020, in order to further advance our infrastructure. This intensive investment focuses on the upgrade and modernization of the terminal and jetty, together with modifications to our own barge to meet our high standards. The investment plan is underpinned by our commitment to consistently provide quality products and innovative value added services to the shipping industry in a safe, reliable, transparent, efficient and environmentally responsible manner.

4. HSSE We maintain very high HSSE standards in all our operations. We comply with all applicable regulations and follow high operational standards every day in all our operations.

For questions and more information please visit our website www.coralenergy.gr and www.coralmarine.gr

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Coral Marine

2. Technology a. Barge Besides the MFMS, the barge is equipped with an integrated inflow-outflow system, allowing us to reconcile every delivery. Data are captured continuously from MFMS during operation and are reconciled against the barge stocks retrieved from autogauging Systems, providing a real time, transparent measurement process and maximizing the level of quantity assurance.


Going for LNG The coastal states of the Western Med have clearly decided that the future is going to involve a lot of gas, as John Rickards reports

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n the wake of the announcement of the mega LNG supply deal between Marseillebased CMA CGM and Total, French Prime Minister Edouard Philippe announced that the country was going to reverse its existing stance to allow lNG bunkering in ports, as well as considering changes to fiscal rules on amortising investments in new ships and engines in order to support French owners in making the transition to gas. The 10-year supply deal between the French container giant and Total’s marine services arm will see Total supply around 300,000 tonnes of LNG per year to nine 22,000 TEU dual-fuel newbuilds, the first of which is due for delivery in 2020. The ships will operate on the Europe-Asia trades, carrying 18,600 cbm of LNG each, enough to require bunkering only while in Europe. The scale of the deal, and CMA CGM’s commitment, is hard to overstate: 300,000 tonnes is widely held to be around three quarters of total annual global LNG bunker demand. While the plan is for those ships to take LNG bunkers in northern Europe where the infrastructure is most advanced, Mediterranean ports are working hard to catch up, particularly on the Iberian Peninsula. Gibraltar is among the LNG pioneers in the Western Mediterranean. Last year the Acting CEO of Gibraltar Port Authority (GPA), Manuel Tirado, said that his port was working on the regulatory framework for LNG as a bunker fuel. He explained: World Bunkering Spring 2018

“We are now constructing an LNG plant within the port to supply LNG fuel to our new generating station, which will be online early summer 2018. We want to move into the bunker industry for LNG because we see that is the fuel of the future. This was a good opportunity for Gibraltar to get involved, exploring and paving the way towards an LNG bunker code of practice.” Gibraltar is a member of the Society for Gas as a Marine Fuel (SGMF) and has been actively involved interntional forums considering issues relating to LNG bunkering. Most recently the GPA attended the IQPC LNG bunkering summit in Amsterdam which also included a technical focus day. The event united global players from leading ports, LNG terminal operators, ship operators, ship owners, LNG suppliers, and LNG technology providers to develop strategic partnerships and common strategy to drive the LNG bunkering market forward. According to the GPA, the summit provided an opportunity to hear perspectives from the entire supply chain, offering their insights into their decision making, planning, development, operation, safety and training processes. Tirado commented that it was important for the GPA to attend high profile events such as this as it brought together the major players, top bunkering ports and decision makers from around the world and provided an excellent stage for Gibraltar to promote its involvement in LNG bunkering services.

A market study released by DNV Gl last year and conducted on behalf of the Enagas-coordinated CORE LNGas hive project predicts that by 2030 up to two million cbm of LNG could be bunkered in Iberian ports, with Algeciras, las Palmas and Barcelona leading the way, and up to 8 million cbm by 2050. DNV Gl’s analysis of demand patterns is to be used by the project when making recommendations on infrastructure investment and development across 40 different ports. The report suggests that in order to meet that level of demand for LNG bunkers by 2030, €1bn of investment would be needed, and a total of €3.7bn by 2050. Enagas, itself, which owns five of Spain’s seven regasification plants, has been talking up the market and its own willingness to develop the necessary support systems for it. Speaking at a gas conference in Barcelona last October, Enagas manager Fernando Santamaria said that even though volumes were currently only small, the company could draw on its own experience with early LNG truck deliveries to serve as a major force in developing marine LNG. The company’s regasification plant in Cartagena was the site of what was reported to be Europe’s first ever pipe-toship LNG bunkering operation last year. 370 cbm of gas supplied by Repsol was piped to the Canadian combo carrier Damia Desgagnés using flexible cryogenic hoses connecting the ship directly to the terminal.

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western Mediterranean

Jordi Sanchez Teruel Barcelona’s been home to many of the major moves in Spain’s bunker sector of late

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The Spanish port of Ferrol-San Cibrao and local gas firm Reganosa have also used the addition of a call by another AIDA dual-fuel vessel to add LNG bunkering capacity based out of Reganosa’s existing small gas terminal.

At around the same time, Cepsa claimed to be the first company in Spain to be able to supply LNG bunkers ship-to-ship through its Mediterranean Multi-product Barge in Barcelona. CEO of the company’s commercial gas arm Antonio Melcón said, “For LNG to attain a position of leadership as the main fuel for maritime transport on a global scale, it is essential that the players involved in its management – ship owners, authorities, distributing companies, infrastructure operators, etc. – work on its development in a coordinated manner. Thanks to our management capacity, Cepsa has become a world benchmark in the supply of LNG to ships.”

Italy doesn’t benefit from a coordinated programme like CORE LNGas Hive adding funding and the country’s LNG bunkering regulations and infrastructure are less developed than elsewhere, but Italian energy and maritime interests are making plenty of efforts of their own. Italian energy firm Eni has signed an R&D partnership deal with shipbuilder Fincantieri to work together on developing gas technology on vessels, supply chain, and better gas extraction and exploitation. “The MoU is part of Eni’s strategy to tackle climate change, promote sustainable development, and support the use of gas for transport,” the company said. “It underlines the company’s commitment to minimise CO2 emissions, particularly in the naval sector.”

AIDA Cruises has begun taking LNG bunkers ex-truck by arrangement at the ports of Barcelona, Marseille and Civitavecchia, and potentially Palma de Mallorca, for its dual-fuel AIDAperla.

At the same time, Caronte & Tourist, which operates ferries between the smaller Sicilian islands and between Sicily and the mainland, has announced its plans to spend €200m on ten LNG-fuelled ferries over the next ten years, completely renewing its fleet. The company was the first Italian owner to order such a vessel, with the ferry in question due to be delivered from Sefine shipyard in Turkey this year. The company’s manager Lorenzo Matacena said: “Gas as a new fuel certainly represents the future of shipping, despite the fact that infrastructure is still to be built in Italy and the bunker regulations are lacking.” And Stolt-Nielsen has ordered two 7,500 cbm LNG carriers capable of functioning as bunker tankers from Keppel Singmarine, both due for delivery in 2019, one of which will be employed in support of the company’s planned LNG terminal and distribution facility in Oristano, Sardinia. Away from the glittering world of the far future, the region’s seen its usual tranche of developments, with Spain once again dominating as Barcelona steps up its bunker offerings. Last summer, Peninsula Petroleum moved a 7,500 dwt barge to the port to launch physical supply operations there.

Arild Finne Nybø Cartagena was the site of Europe’s first pipe-to-ship LNG bunkering operation last year

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The vessel runs on LNG primarily while at berth, though as parent company Carnival noted at the time of the announcement that cruise ships spend 40% of their time docked, making the fuel of particular relevance for power generation aboard.

“This type of supply was made possible as a result of the adaptations made to the Enagas plant jetty in the Port of Cartagena, in accordance with industry standards,” the company said. “It also highlights the commitment to innovation in the provision of new services by regasification plants. This initiative is turning Spain into the leader in this field in Europe, which is also aided by its privileged geographical placement as the gateway to the Mediterranean and the Atlantic.”


western Mediterranean

Jeanne Menjoulet Marseille seems set to be home to Ecoslops’ second recycled bunker refinery

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Peninsula said that despite being such a busy port, there was a “seasonal shortfall” in fuel supply capacity there that it could take advantage of to make a niche for itself. CEO John Bassadone said: “We believe that there is a significant supply gap in the market in Barcelona. This move is part of a wider strategy of leveraging our asset base to provide regional optionality for our clients. By developing a powerful and flexible supply capability, we can provide innovative service not only in our traditional home ports of Gibraltar and Algeciras, but across the wider Western Mediterranean/Iberian Peninsula.”

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Cepsa meanwhile has started offering RMK500 at the port, targeting larger vessels, particularly container ships, working long distance routes, and has added a second supply vessel to the port in order to support the initiative. Cepsa had already offered the fuel in Algeciras and Gibraltar. “The new Cepsa bunker operations in the Port of Barcelona strengthens the company’s leadership in supplying this type of fuel in the Mediterranean, as it is the first and only supplier of this product in the ports of Algeciras, where more than one million tonnes were delivered in 2016; and in that of Gibraltar,

where Cepsa made it available to its customers in June 2017,” the company said in a statement. The port of Marseille, meanwhile, has joined the World Ports Climate Initiative and started offering port dues reductions for ships with a better Environmental Ship Index score. The measure was first applied to container and cruise ships, but this year should see other vessel types added to the scheme. The city is also home to the newest recycled bunker refinery of French firm Ecoslops. Last autumn the company put in a formal request to operate an oil residue reprocessing plant at La Mède in partnership with Total.

World Bunkering Spring 2018


After some years in development, Ecoslops has been producing recycled bunkers on an increasingly major scale for both IFO and MDO grades.

And further East... At the other end of the Mediterranean, another expansion move last year saw petroleum group Coral enter the Greek bunker market for the first time. World Bunkering caught up with Coral Marine’s Minas Hatzistamatiou to find out more. WB: It’s a hard market to move into. What does Coral bring to it? Coral expanded into bunkering despite the fact that this market is very competitive, challenging and capital intensive. We are the only supplier at the port of Piraeus to offer RMK 500 & 700, using our own state of the art newbuild barge, equipped with a mass flow meter and pumps with high delivery rates. Both attributes assure delivered quantity and significantly reduce delivery time. Supplies are loaded from our own terminal where a central in-house laboratory department conducts extensive tests during product receipt, storage and delivery. This infrastructure enables us to guarantee quantity and quality in each supply together with the ability to respond to short notice enquiries. WB: Is it an advantage as a supplier to be part of a larger fuel and energy group? The prerequisites for entering international bunkering are: strong and flexible infrastructure, supply and financial robustness and strategic partnerships. Coral Marine has already established a solid supply network with key refiners including MOH Refinery, the parent company of Coral. Furthermore,

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In the first half of 2017 (the most recent reporting period at the time of going to press), the company produced 12,200 tonnes of fuel at its similar micro-refinery in Sines, Portugal, with sales of 9,700 tonnes. Ecoslops claims that 98% of the waste product feedstock is regenerated into bunkers by the process, leaving very little waste.

The company signed a long-term deal with Galp last autumn that will see Galp buy up its lighter grade product; Galp operates a refinery of its own in Sines, making the logistics of the trade simple for both companies.

Coral owns and operates a versatile storage facility in Perama with a total capacity of 120,000 cbm, 50,000 cbm of which are allocated exclusively for marine fuels, making this terminal the largest marine fuel terminal in Mediterranean area. Our infrastructure and logistical connections have already proven a strong asset in deploying strategic alliances with key customers, traders and shipowners.

We have entered a period of high uncertainty and high costs. The transition to LSFO 0.5% will cause more changes to the global marine industry than the switch to 0.1% sulphur fuel in the ECAs.

WB: What do you see as the main challenges and opportunities for the year ahead? Since 2016, Coral Marine has implemented an investment plan which will exceed US$10m by 2020 in order to further advance our infrastructure. This intensive investment focuses on the upgrade and modernization of the terminal and jetty, together with modifications to our time chartered barge to meet our high standards. Bunker demand in Piraeus should see further growth in 2018 and onwards because there should be an increase in the number of visiting container and cruise ships. Foreseeing this demand growth and aiming to increase our market share, we will continue with our investment plan.

Operating a terminal of 50,000 cbm for marine fuels beside Piraeus container terminal, Coral can facilitate any product of commercial interest. In particular, while supply of HSFO 3.5% will continue for shipowners who have installed abatement technologies (scrubbers or exhaust gas cleaning systems) the new ULSFO 0.5% will also be available in our product range. WB: Traditional fuel oils are also facing competition from a surge in interest in alternative fuels, particularly LNG. Do you think Greece is likely to see much of a switch in fuel usage? The strategic investments carried out at the port of Piraeus aim to make the port the largest in the Eastern Mediterranean, and thus inevitably all bunker products need to be available, including LNG. The scale of investment in LNG shipping is uncertain since a significant shift from shipowners to LNG is not expected soon and also the capital investments and operational costs for LNG bunkering remain very high.

WB: The global 0.5% sulphur cap is only a couple of years away. How ready do you think Coral and the Greek market as a whole are for the switch to lower sulphur fuels? Coral Marine will comply with the 2020 0.5% sulphur cap, and will be in position to offer full range of products of commercial interest.

Minas Hatzistamatiou , Coral Marine

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The micro-refinery should have a 30,000 tonnes per year production capacity and is expected to be operational by the end of the year.


Port of Tenerife

Company Profile: Ports of Tenerife Tenerife, a gateway to Africa

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enerife is a gateway to three continents thanks to its privileged geographical location. Its economic and social development as a member of the European Union, make it the best bridge for doing business between Europe, Africa and America. The island offers a safe, stable and fully reliable economic framework and more importantly it provides entrepreneurs with trained professionals who can carry out highly qualified tasks. From Tenerife, companies will be operating from what has been the gateway to Europe, America and Africa for the last 500 years and benefiting from the well-established business relationship between them. In particular, West Africa is one of the most important trade partners for the Island’s enterprises with over 200 Canarian companies already operating in the African market. Hence, excellent business relationships have boosted lately, outnumbering those of other Spanish Autonomous Communities and allowing new companies to benefit from the wide operational experience local entrepreneurs have in trading with Africa, which is located only a few hundreds miles off the island.

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Tenerife is therefore the natural gateway to emerging countries like Mauritania, Togo, Morocco, Nigeria, Equatorial Guinea, Senegal and Cape Verde, to give just a few examples. In the past decades, multiple collaboration agreements with different West African countries have been signed and since the early 2000’s, Tenerife and its institutions have carried out numerous co-operation projects in different sectors including science, education, biofuel production, agriculture, stock breeding, renewable energy and e-administration. Thanks to its strategic position in the Atlantic Ocean and, located amid the major trade routes, the island offers a wide range of services for bunkering supply, offshore projects and repairs, containerized and general cargo transshipment and of course for the cruise and tourism industry. Historically, the Port of Tenerife has been a key port of call for bunkering supply, ranking among the top 5 Spanish ports in 2017 and with an excellent forecast and challenging opportunities for the upcoming years. Our Port Authority is one of the 28 bodies which make up the Spanish state-owned port system. We manage a total of six ports: Los Cristianos, Santa Cruz de La Palma, San Sebastián de La Gomera, La Estaca, and the two main installations of Santa Cruz de Tenerife and Granadilla.

The Port of Santa Cruz de Tenerife already serves as an important port of call for many shipping lines, as well as a service and repair centre for the offshore industry. It also ranks among the top ports in Spain in terms of cruise passengers and also as the only refinery in the area. The many services offered all year round by the port community are highly appreciated by those who know us. The Port of Santa Cruz de Tenerife, whose geographic coordinates are: latitude 28º 29’ N and longitude 16º 14’ W, comprises the La Hondura Quay and four basins: Los Llanos, Anaga, the East and Pesquera. The bunker oil supplied in Santa Cruz will be supported in any way that it is presented: storage facilities for fuel to ensure the integrity of the supply ships, bunkering at berth, by pipeline and bunkering by bunker barges to anchored ships. Thanks to its exceptional conditions of maximum wave height, tidal range, draughts and floating surface area, the Port of Santa Cruz de Tenerife emerges as a privileged site for the provisioning of fuel, especially in the anchorage area. The new Port of Granadilla has recently been partially opened and, once finished, will significantly boost the island’s transshipment capacity.

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his port will include multi-purpose and logistic areas, as well as a container terminal and a regasification plant. Altogether there will be up to 60 hectares of available space. Our vision is to use this new capacity to promote the switch to more environmentally friendly types of fuel (such as LNG), and with the intention of this new infrastructure becoming an important centre point for energy commodities’ trading, gradually increasing our importance as a key logistic hub in this area of the MidAtlantic over a short-/mid-term period. Ports of Tenerife is continually adapting to the evolution of the sector in regards the improvement of its services and adapting its infrastructure.

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Continuous work is being done to improve the quality of the services provided by gaining quality certificates, increasing safety and prevention, etc. on the one hand and, on the other, through investment projects for new infrastructure, such as the aforementioned new port of Granadilla. The Port Authority of Santa Cruz de Tenerife and the International Bunker Industry Association (IBIA) are organizing the IBIA’s Africa Bunkering Conference to be hosted from 20th-22nd March 2018. This major event aims to gather the key players within the West Africa and Canary Islands region to meet and discuss what developments are being made within the port and how this location offers new fuels to meet with the industry’s future needs.

The potential attending delegates’ profile goes from ship owners to traders / brokers and port agencies, passing through equipment manufacturers, storage and barging companies, and bunker suppliers. This will be the third opportunity this Regional Forum will take place, since the establishment of an IBIA’s full time office in Africa in 2014. The other hosted events to date took place in Port Louis (Mauritius) and Cape Town (South Africa), both with a great attendance success. These events tipically included discussion panels, training sessions, a port tour and a gala dinner, all together offering representatives excelent networking opportunities.

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Port of Tenerife

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Port of Tenerife

IBIA’s Africa Bunkering Conference Agenda: Tuesday 20 March 2018 09:30-17:00 IBIA Training Course 18:00-20:30 Conference Registration Cocktail Party Wednesday 21 March 2018 Official Opening Session 08:30-09:00 Delegate Registration and Coffee 09:00-09:15 Conference officially opened by Government officials and/or Port officials 09:15-09:30 Welcome address by IBIA and Ports of Tenerife members Session One How will the IMO 2020 regulations and compliance be enforced? 09:30-11:00 By IBIA Chairman and Spain’s IMO representative

Session Four Tenerife: the Gateway to Africa and Europe 16:00-17:30 With the participation of various public and private companies with interests in West Africa 17:30 End of Conference Day One 19:00-19:45 Cocktails 19:45- 22.30 Conference Formal Dinner Thursday 22 March 2018 08:00-09:00 Coffee Session Five Buyer’s Panel: adapting to new rules and new fuels a moderated debate

11:00-11:30 Coffee Networking break

09:00-10:30 Including shipping lines, consultancy firms and bunker suppliers, among others.

Session Two

10:30-11:00 Coffee networking break

Fuel Oil Availability: understanding regional variations 11:30-13:00 With the attendance of major oil & gas, cruise lines and major testing & product inspection companies’ speakers 13:00-14:00 Lunch

Session Six 11:00-12:30 To be confirmed: Digital Technology in bunkering; Mass Flow Meters; Legal issues post OW and Hanjin; Challenges with new fuels, etc… 12:30-13:30 Lunch

Session Three

13:30-17:00 Port Tour

LNG: the fuel of the future or a niche product?

19:00-20:00 Cocktails

14:00-15:30 Featuring midstream/downstream companies, LNG key players, cruise lines and the most relevant associations within this challenging sector

20:00-23:00 Dinner

15:30-16:00 Coffee networking break

*The Conference program is currently in development

For speaking opportunities please contact Justin Murphy on justin.murphy@ibia.net Registration for this event will open in early February 2018. For information on attending this event please email: tahra.sergeant@ibia.net

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LUBRICANTS

The Cosco Sipping Taurus

Lubricating methanol Chevron looks at the implications for lubricants of using methanol as a fuel

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hevron Marine Lubricants has published Methanol and Marine Lubricants in a Lower Sulphur, Lower Emissions Future which is the first in a series of planned ‘white papers’ focusing on innovations and developments impacting the fastchanging shipping industry. The report looks at successful operation of the methanol tankers Mari Jone and Mari Boyle, two of only seven ocean-going methanol dual-fuel ships. The two ships typically load methanol cargoes in New Zealand, Geismar in Louisiana, and Point Lisas in Trinidad. They also make calls in China, Korea, Australia, the US Gulf, Chile and Peru, and could also see operation in Europe. The white paper notes that loading bunkers in such a wide range of ports means that the sulphur content of the HFO they burn varies from 1.8% to 3.5%. But by their very nature the dual-fuel methanol engines are subject to an even wider range of sulphur conditions. They could be burning 95% methanol, which has zero sulphur, along with either a low sulphur or high sulphur pilot fuel, or a 0.10% sulphur distillate fuel for ECA compliance, a 3.5% maximum sulphur heavy fuel oil or a mix of 70% methanol along with either a high or low sulphur oil product. “This makes it very tricky to know to which level to limit the cylinder oil to the liners,

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and what the BN of the cylinder lubricant has to be. In fact, one of the biggest concerns when we ordered the engines early on was the effect that dual-fuel operation has on the liners, and it is something no-one could really answer,” says Fredrik Stubner, Director Ship Management, Marinvest Shipping AB. Marinvest used Chevron Marine Lubricants for not only its range of cylinder lubricants, but also its DOT. FAST® service to help with optimising the lubrication of the engines. The white paper was produced in consultation with: • Vancouver, Canada-based Methanex Corporation, whose Waterfront Shipping subsidiary are co-owners and charterers of the vessels. • Private ship manager and investment group Marinvest Shipping AB, also co-owners of the vessels. • MAN Diesel & Turbo who produced the ME-LGI methanol dual-fuel two stroke engines for the two tankers. “The reality of a lower sulphur, lower emissions future for shipping is already here. ECA and IMO 2020 regulations mean that in addition to the shifting use trends of traditional marine fuels, shipowners and operators are increasingly turning to the use of alternative marine fuels to meet the challenges of a rapidly changing legislative and operational landscape,”

says Ian Thurloway, Chevron Marine Lubricants Brand and Marketing Manager. Blending-on-board marketed to Greek and Cypriot owners Maersk Fluid Technology (MFT) has partnered with Technava to market its SEA-Mate lubricant blending-on-board system to Greek and Cypriot markets. Originally developed by Maersk for use on A.P Moller-Maersk Group’s fleet of containerships, MFT’s BOB technology allows for the blending of the in-use system oil, as a base oil, with a high-BN cylinder oil product to produce a Fit-for-Purpose cylinder lubricant and facilitate the addition of fresh system oil to the engine sump. With BOB units on board, ship operators can blend cylinder lubricant compositions that match actual engine operating conditions and fuel sulphur levels. The use of this technology can reduce cylinder oil consumption and alleviate issues such as cold corrosion and excessive cylinder wear. It can also mitigate issues associated with worn system oil causing problems for the hydraulic control system in modern, electronic two-stroke engines. MFT says that the system has obtained letters of no objection from MAN Diesel & Turbo and Winterthur Gas & Diesel (WinGD) engines and is suitable for use on all types of two-stroke engines.

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To eliminate labels and paperwork the new service features scan-and-go technology. Operators simply scan the QR code (barcode) of the sample point and bottle, enter the sample information and submit the sample. Operators will then receive an informative report on the condition of equipment and lubricants with tailored advice to help inform

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maintenance schedules and understand data trends. The service offers mobile access enabling operators to view data and results wherever needed. “Mobil Serv Lubricant Analysis can help enhance equipment reliability and reduce unscheduled downtime, helping to generate cost savings, which are crucial in today’s economic climate”, says Iain White, Global Marketing Manager, ExxonMobil Marine. “With these benefits, this new service will provide a step change in marine oil analysis and help customers optimise performance and drive efficiencies.” Cosco orders Shell lubes Shell Marine was awarded China Ocean Shipping (Group) Company’s (Cosco) largest marine lubricants order in 2017. This order will include the full range of marine lubricants and technical services for seven out of Cosco Shipping’s 10 new generation Ultra Large Container Carriers (ULCCs) with capacities of approximately 20,000 TEU each, ordered in 2015 and due to be in service from 2018-2019.

LUBRICANTS

ExxonMobil launches new lubricant analysis service ExxonMobil has launched a mobileenabled used oil analysis service, Mobil ServSM Lubricant Analysis, which monitors oil condition and assesses equipment health. The company says that regular analysis can help prolong engine and equipment life by assessing oil condition and helping operators identify issues before they happen. As part of the Mobil ServSM offering, Mobil ServSM Lubricant Analysis can provide data and reporting on key equipment such as the stern tube, main engine bearings, generators and other auxiliary equipment. This new service replaces ExxonMobil’s used oil analysis program, SignumSM.

Shell Marine has supplied marine lubricants and services to over 140 Cosco Shipping vessels since 2004. Shell Marine Executive Director Jan Toschka, says that the level of customer engagement behind the deal included its provision of onboard testing, assisting not only in Cosco Shipping’s blend-on-board program, its oil drain monitoring, but also providing customised analysis and comments in Chinese language as part of the container carrier’s Shell Rapid Lubricants Analysis report. Shell has also positioned one of its Technical Maritime Hubs in Shanghai with technical experts ready to provide services to Cosco Shipping. Cosco Shipping is in the process of taking over Orient Overseas Container Line (OOCL), which today operates the largest container ships afloat. Earlier in 2017 year, OOCL appointed Shell Marine to provide integrated marine solutions to serve its marine lubricants and services for the 21,413 TEU OOCL Hong Kong.

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INNOVATION

The Hydroville is the first Lloyd’s Register (lR)-classed vessel to use hydrogen to power a diesel engine

Hydrogen-powered vessel launched Crew boat project seen as potential stepping stone to larger vessel applications

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ntwerp-based maritime group Compagnie Maritime Belge (CMB) has launched its new hydrogen-powered passenger vessel, the Hydroville. The Hydroville is the first Lloyd’s Register (LR)-classed vessel to use hydrogen to power a diesel engine. LR notes that the advantage in using hydrogen is that no CO2, particulate matter or sulphur oxides are released during combustion. The classification society says that the “novel concept of hydrogen injected diesel engines are not covered by standard LR rules, so a risk based design approach to approval was required”. LR sees the Hydroville as a showcase for the use of clean fuels and is primarily a project to test hydrogen technology for applications on larger vessels. She will serve as a shuttle craft on the river Scheldt to provide CMB employees with environmentally-friendly transport to and from their office. The project is a key part of CMB’s efforts to make its fleet greener. “The project is a showcase for LR as well,” said LR’s Global Head of Engineering Systems Ed Fort, “It demonstrates our capabilities in hydrogen risk assessments and is a stepping stone towards the wider use of hydrogen as a fuel for combustion engines and alternative power generation technologies such as fuel cells.

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LR is taking a leading role in assuring the safe deployment of alternative fuel sources for shipping.” In December LR and University Maritime Advisory Services (UMAS) released ‘Zero Emission Vessels 2030’, a study examining The viability of zero emission vessels – identifying what needs to be in place to make them a viable and competitive solution for decarbonisation. One of the conclusions of the report was that for vessels with niche access to a low-cost supply of zero carbon fuel or energy, the gap may already be closed, as the Hydroville project demonstrates. Katharine Palmer, LR’s Global Sustainability Manager, said: “There is no doubt that decarbonisation is a huge challenge for our sector and we all have a clear responsibility to ensure actions are taken to drive our operational emissions to zero at a pace matching actions taken across the rest of the world and other industry sectors.” ABB launches sequential turbocharging system ABB Turbocharging unveiled its latest technology development, the Flexible integrated Turbocharging System for Two-Stroke Engines (FiTS2) in December, at Marintec China. The new sequential turbocharging system allows maximum fuel savings for two-stroke engines at part and low load, and at the same time maintains the flexibility to go to full engine output immediately.

This offers significant long-term economic benefits for vessel operators and charterers with potential for fuel savings of up to three percent, depending on load profile. The company says that FiTS2 is the result of its continued commitment to reduce fuel consumption and emissions. It has been developed in close collaboration with lowspeed two-stroke engine designer, Winterthur Gas & Diesel Ltd. (WinGD), which has developed a special tuning for FiTS2. The new technology enables two-stroke engine builders to offer more flexibility, increasing the potential for higher efficiency and lower operating costs for their customers. NOx emissions from engines fitted with FiTS2 will also remain within IMO Tier II limits. ABB says that additional abatement technologies, such as selective catalytic reduction (SCR) and enhanced exhaust gas recirculation (EGR) can be used to comply with IMO Tier III NOx emissions and “will not greatly affect the s ystem while still delivering fuel saving benefits”. Past high fuel prices and low vessel demand led to an increase in ‘slow steaming’ for very large cargo ships, resulting at times in operation outside of original design parameters and therefore causing increased maintenance and repair costs. Typical fuel bills for such vessels have been cited by McKinsey & Co as “the largest cost item for shipping lines” and “often exceeding 40% of all costs” despite current lower oil prices. World Bunkering Spring 2018


“From an operator’s or charterer’s perspective, FiTS2 efficiency benefits will enable major cost reductions. Considering for example a typical current fuel bill of 3 to 4 MUSD per year for very large crude oil carriers, FiTS2 has potential to provide fuel cost savings of up to 100,000 USD per year, compared with levels typically achievable using conventional turbocharging systems. Big savings are also possible for other vessel types, e.g. for container vessels and can amount to 1 MUSD or more over 10 years. The payback of initial costs can be less than two years, making the FiTS2 solution very attractive,” says Joachim Bremer, Head of Product Line Low-Speed, ABB Turbocharging. To optimize engine efficiency via improved turbocharging in low and part load, the engine runs in lower loads with only one turbocharger in operation, whereas at higher loads (typically above 50 to 60% engine load) two turbochargers operate simultaneously. The same principle is applied for very large engines – with FiTS2 they will run with two turbochargers in lower loads and with all three turbochargers for higher load operation. The specially designed cut-off valves for the FiTS2 system are flow-optimized and integrated with the turbocharger casings, ensuring a compact and lean design. Furthermore, the valves can be operated rapidly and automatically under load, without interrupting peration of the engine up to full load. Cut out of one turbocharger for lower engine loads leads to higher scavenging air pressure, increasing the compression ratio and firing pressure optimized by special tuning of FiTS2. The result is enhanced engine efficiency and lower specific fuel consumption while remaining compliant with emission regulations.

An additional benefit comes from the possibility to switch off the electricallypowered auxiliary blowers at 25% engine load, instead of around 35% load. This enables additional savings via reduced power consumption and lower blower maintenance costs due to significantly fewer operating hours. Dominik Schneiter, Vice President Research & Development at WinGD says: “In our long-lasting strategic cooperation with ABB, WinGD has developed its own engines with features such as optimized twostroke Miller tuning, high boost pressure ratios, and part load optimized waste gate applications. With the new FiTS2, ship operators can now further benefit considerably from lower auxiliary power consumption, improved response time, and lower fuel consumption of the main engine, improving the CO2 footprint of their ships at low and mid-load conditions. In today’s changing market conditions such flexibility is a valuable asset to our customers.” Big fuel savings claimed for HapagLloyd Cruises’ new ships Classification society DNV GL says its work on the designs of two apag-Lloyd Cruises passenger expedition ships has resulted in projected annual fuel savings of more than 10%. The two vessels, Hanseatic Nature and Hanseatic Inspiration, are currently under construction at the Vard Shipyard in Romania and Norway and are expected to launch in April and October 2019. Brought in during the initial design and conception phase, DNV GL experts first created and explored more than 100,000 hull variations for the vessels. They worked to give Hapag-Lloyd Cruises and Vard an idea of the technical possibilities of various hull forms and how the interactions between the hull form, the initial general arrangement and stability requirements would impact fuel consumption.

“The design concept for the two new ships was ‘inspired by nature’,” says Dr. Henning Brauer, Head of New Builds, Hapag-Lloyd Cruises. “The vessel interiors have been created to reflect the environments our passengers are experiencing inside the ships. But these are also sensitive environments, so reducing the environmental impacts of our vessels is an integral part of the design concept. Working with DNV GL has allowed us to significantly reduce fuel consumption, which also decreases our overall emissions.” “We are very pleased to have been able to exceed Hapag-Lloyd Cruises’ expectations and offer an optimization solution that demonstrates that efficiency and sustainability can go hand in hand,” says Knut Ørbeck-Nilssen, CEO DNV GL – Maritime. “These results show that by bringing greater computing power and smart software to the ship design process we can help to unlock efficiencies for our customers.” After the initial assessment, the efficiency of the hull form was optimized within the given constraint set using DNV GL’s unique formal optimization approach. During this phase, another 10,000 hull designs were analysed, with the most promising candidates undergoing high fidelity computational fluid dynamic (CFD) analysis to confirm the results. Finally, the stern was optimized for passenger comfort by minimizing impact from slamming. “Because these ships will have the highest ice class possible for passenger vessels, PC6, fuel consumption is an essential factor in their economic feasibility,” adds Juryk Henrichs, Senior Project Engineer, DNV GL – Maritime. “With roughly 7,000 central processing units doing the heavy lifting, our unique form-parametric hull model was able to identify the optimal design to meet Hapag-Lloyd Cruises’ specifications.”

Robust design and very wide compressor maps of ABB’s A100-L and A200-L turbocharger series allow switching under load without surging and there are no requirements for additional by-pass valves or pipework, making FiTS2 a uniquely simpler and relatively low-cost solution compared to any alternative. World Bunkering Spring 2018

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INNOVATION

ABB says that, as the market also continues to see the financial impact of overcapacities, FiTS2 is aimed at addressing the sustained cost versus operational flexibility challenge. FiTS2 will enable two-stroke engines to operate more efficiently at lower loads, while still enabling rapid return to full engine power without compromise on original design-point efficiencies. As a result, significantly higher savings can be achieved with FiTS2.


LNG

KVH Videotel has launched an LNG bunkering training course

LNG infrastructure expands As more LNG-capable vessels come into service the bunkering network they require is starting to emerge

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head of the LNG Bunkering Summit 2018, which took place in January, organisers IQPC surveyed over 500 LNG specialists involved in the LNG bunkering supply chain to gain a deeper understanding of how the sector is continuing to move forward in challenging market conditions; as well as new opportunities and trends for the coming years. According to the IQPC the answers demonstrated that the LNG market continues to mature and has adjusted well to the low oil price continuum. The greatest challenge in the market remains the lack of infrastructure available, but as new projects enter the pipeline and infrastructure becomes operational, confidence has continued to build with significantly fewer believing this will be a hurdle. In addition, investment costs are continuing to slow progress, but with 80% of respondents agreeing that LNG will become a widespread fuel for ships, IQPC concludes that “the future looks increasingly positive for the coming years”. Certainly there have been a string of announcements heralding new LNG bunkering projects recently. The Maritime and Port Authority of Singapore (MPA), for example, has injected S$12 million (US$9 million) to boost LNG as marine fuel. This is on top of previous support for LNG projects.

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Half of this new money has been set aside to co-fund the building of new LNG bunker vessels (LBVs) to facilitate the development of ship-to-ship LNG bunkering in the Port of Singapore. The remaining half will be used to top up MPA’s existing co-funding programme to support the building of LNG-fuelled vessels. Launched in 2015, the initial funding for this programme has been fully utilised to support Keppel SMIT Towage, Maju Maritime, Harley Marine Asia, Sinanju Tankers and most recently, PSA Marine. Applications for the new fund for the building of LBVs are now open and MPA is inviting interested companies to tap on it to co-fund up to S$3 million per LBV. To apply, companies must be incorporated in Singapore, and the funded vessels must be registered with the Singapore Registry of Ships and licensed for bunkering activity in the Port of Singapore for a period of at least five years. MPA Chief Executive of MPA, Andrew Tan, said, “With the implementation of the International Maritime Organization’s (IMO) 0.5% global sulphur cap on 1 January 2020, LNG is a viable and tested solution for shipowners. As the world’s largest bunkering hub, MPA will support future demand by promoting the development of ship-to-ship LNG bunkering in the Port of Singapore.

This will provide the industry greater confidence in the availability of LNG supply across key shipping routes.” Meanwhile more owners are deciding to switch to LNG. Rouen-based GIE Dragages-Ports has contracted Damen Shiprepair & Conversion to convert a dredger to dual-fuel capability combining LNG and MGO. This will be the first conversion of its kind to take place in Europe. The 117 metre long, 8,500 cubic metre capacity trailing suction hopper dredger Samuel de Champlain, will be converted at Damen Shiprepair Dunkerque. The conversion is part of an EU-supported initiative to promote LNG propulsion in short-sea vessels operating along the European Atlantic coast. Under the contract, Damen is delivering a turnkey package that includes engineering, procurement and support. The current propulsion system of the Samuel de Champlain is diesel-electric burning MGO, and so the package includes the change of generators to dual-fuel models and the installation of onboard LNG storage facilities. The vessel was built in 2002 and is the largest vessel in the GIE Dragages-Ports fleet. Based in the Grand Maritime Port of Nantes-SaintNazaire, she divides her time between the Loire and Seine estuaries.

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LNG

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he conversion project is being subsidised by the European Commission’s Innovation and Networks Executive Agency (INEA) via its Connecting Europe Facility programme. Meanwhile Hyundai Heavy Industry (HHI) Group, with the support of Lloyd’s Register (LR), is developing innovative LNG-fuelled designs. In December 2017 Hyundai Mipo Dockyard (HMD), part of the HHI Group, delivered the world’s largest LNG-fuelled ship, a 50,000 dwt bulk carrier with a high manganese LNG fuel tank. HHI also recently signed a contract to build the world’s first LNG-fuelled aframax tanker. Earlier last year, HHI and LR announced a joint development project to design 180,000 dwt class bulk carriers; the design development is now almost finished and is in the process of receiving approval in principle. This design can be optimised for short to medium-haul bulk trades, such as Australia to Asia or long-haul bulk trades such as Brazil to Asia.

To decide the optimum location and type of LNG tanks for these designs, the shipyard conducted several case studies for competitive CAPEX and OPEX. As a result, LNG fuel tanks with POSCO high manganese steel or 9% nickel steel were chosen. They will be located on the aft mooring deck because of the amount of LNG that will be required for the Australia – Asia route. For the long-haul route, a larger sized LNG storage tank can be fitted in the mid-part of the vessel. Additionally, Woodside, Anangel, GE, LR and HHI signed a joint industry project agreement to develop an LNG-fuelled 250,000 dwt very large ore carrier operating on the Australia – Asia iron ore trade route. The HAZID analysis of this design, to verify the safety level, was recently completed with all parties in Seoul. The LNG tanks are also based on the POSCO high manganese steel or 9% nickel steel design.

Another classification society, Frenchbased Bureau Veritas (BV), is to class CMA CGM’s LNG-fuelled 22,000 TEU containerships. Philippe Donche-Gay, President, BV Marine & Offshore, comments: “This is a breakthrough order for gas fuelled shipping – both in scale and in the use of a membrane containment system. BV has been supporting the project throughout, providing assistance to ensure the requirements for the safe use of LNG are addressed.” The new ships will have a bunker capacity close to 18,000 cubic metres which is a significantly higher volume than has so far been required in the LNGfuelled ship market. BV has investigated the feasibility of the design together with shipbuilding group China State Shipbuilding Corporation (CSSC) and GTT, the containment system designer.

Bureau Veritas is to class CMA CGM’s LNG-fuelled 22,000 TEU containerships

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CYBER SECURITY

Taking cyber security seriously

It may be easy to adopt an ‘it can’t happen to me’ approach to the dangers posed by hackers and malware but when some of the industry’s biggest players take hits it is time to sit up and pay attention

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ate last year it emerged that major shipping group AP Moeller-Maersk and shipping services giant Clarksons had both been the subject of damaging cyber-attacks.

Now so far there have been no reports of bunker sector specific cyber-attacks but, as ship operators, bunkering companies are just as vulnerable as the rest of the wider shipping industry.

The Danish-based group, which includes container carrier Maersk Line, says: “Performance was challenged from the June cyber-attack of which the financial impact is in the range of US$250-300 million.”

A recent series of simulated cyber-attacks on vessels have highlighted that shipping might be an easy target to those who wish to cause mayhem.

The group also says that “contingency initiatives related to recovery after the cyber-attack resulted in a negative development in Maersk Line volumes of 2.5% and increase in unit cost of 3.9% at fixed bunker prices”. Clarksons also had to admit it had been the victim of a cyber security hack and warned that the person or persons behind the attack could release some data. “As soon as it was discovered, Clarksons took immediate steps to respond to and manage the incident,” the company said. It added: “Our initial investigations have shown the unauthorised access was gained via a single and isolated user account which has now been disabled.” In both cases we are talking serious damage being done, financially and potentially reputationally.

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Israeli-based cyber security specialist Naval Dome says it has demonstrated the maritime industry’s nightmare security scenario with a series of cyber penetration tests on systems in common use aboard tankers, containerships, super yachts and cruise ships. It says the results “revealed with startling simplicity the ease with which hackers can access and over-ride ship critical systems”. With the permission and under the supervision of system manufacturers and owners, Naval Dome’s cyber engineering team hacked into live, in-operation systems used to control a ship’s navigation, radar, engines, pumps and machinery. While the test ships and their systems were not in any danger, Naval Dome was able to shift the vessel’s reported position and mislead the radar display.

Another attack resulted in machinery being disabled, signals to fuel and ballast pumps being over-ridden and steering gear controls manipulated. Commenting on the first wave of penetration tests, on the ship’s Electronic Chart Display and Information System (ECDIS), Asaf Shefi, Naval Dome’s CTO, the former Head of the Israeli Naval C4I and Cyber Defense Unit, said: “We succeed in penetrating the system simply by sending an email to the captain’s computer. We designed the attack to alter the vessel’s position at a critical point during an intended voyage - during night-time passage through a narrow canal. During the attack, the system’s display looked normal, but it was deceiving the officer of the watch (OOW). The actual situation was completely different to the one on screen. If the vessel had been operational, it would have almost certainly run aground.” Well, a traditionally trained deck officer might say, it wouldn’t have done if the OOW was doing his job properly and using all available information to maintain his situational awareness by manually plotting positions, observing seamarks, using transits and taking compass bearings. Nevertheless Naval Dome’s scenario is absolutely plausible.

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“The vessel’s crucial parameters position, heading, depth and speed were manipulated in a way that the navigation picture made sense and did not arouse suspicion,” he said. “This type of attack can easily penetrate the antivirus and firewalls typically used in the maritime sector.” Commenting on the ease with which Naval Dome was able to by-pass existing cyber security measures, Shefi explained: “The Captain’s computer is regularly connected to the internet through a satellite link, which is used for chart updates and for general logistic updates. Our attacking file was transferred to the ECDIS in the first chart update. The penetration route was not too complicated: the attacking file identified the Disk-On-Key use for update and installed itself. So once the officer had updated the ECDIS, our attack file immediately installed itself on to the system.”

The first target was the ballast system and the effects were startling. The display was presented as perfectly normal, while the valves and pumps were disrupted and stopped working. We could have misled all the auxiliary systems controlled by the MCS, including air-conditioning, generators, fuel systems and more.” That is indeed a scary picture that has been painted. Of course Naval Dome and other specialists in the field will sell you ways of stopping attacks. One such specialist, Pen Test Partners, which specialises in security testing of maritime, automotive and utility control systems. has again warned ship owners and operators to ensure their satcom boxes are secure.

Pen Test’s senior partner Ken Munro says he was able to use a new real time ship-mapping feature on internet search engine Shodan to geo-locate vulnerable vessels through their satcom boxes. He says that, by combining this with AIS data, a hacker has everything they need to select a suitable ship to attack. They can choose a vessel en route to a nearby port, ready for load theft. Or perhaps cripple a ship in a particular area, ready for piracy. “Although it was possible before to find a specific vessel’s location, it required a lot of work to analyse and present it on a map. The new mapping feature makes it trivially easy for hackers and criminals alike,” he warns. He says ship operators should secure their satcom boxes by changing default passwords and applying all updates received from their satellite communication providers immediately.

In a second attack, the test ship’s radar was hit. While the radar is widely considered an impregnable, stand-alone system, Naval Dome’s team used the local Ethernet Switch Interface - which connects the radar to the ECDIS, Bridge Alert System and Voyage Data Recorder – to hack the system. “The impact of this controlled attack was quite frightening,” said Shefi. “We succeeded in eliminating radar targets, simply deleting them from the screen. At the same time, the system display showed that the radar was working perfectly, including detection thresholds, which were presented on the radar as perfectly normal.” A third controlled attack was performed on the Machinery Control System (MCS). In this case, Naval Dome’s team chose to penetrate the system using an infected USB stick placed in an inlet/socket. “Once we connected to the vessel’s MCS, the virus file ran itself and started to change the functionality of auxiliary systems.

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Asaf Shefi, Naval Dome’s CTO, the former Head of the Israeli Naval C4I and Cyber Defense Unit

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CYBER SECURITY

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pparently the Naval Dome hack was able to alter draught/water depth details in line with the spurious position data displayed on screen.


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eanwhile cyber security issue are part of the reason BIMCO and the international association for the marine electronics industry, CIRM (Comité International Radio-Maritime), have sent the industry’s first proposal for an industry-wide standard for software maintenance to the International Maritime Organization (IMO) for consideration. Without an industrystandard, BIMCO says it sees an increasing risk of severe incidents on ships, delays and costs to shipowners and cyber security problems. “We hope the entire industry will adopt these standards, to make ships safer, to prevent cyber security problems and to save money,” says Angus Frew, Secretary General and CEO at BIMCO. “The industry has been living in a world of hardware. But software has been integrated into most physical equipment on the vessels, and the systems and procedures to manage the software has not kept up with technical developments, and it creates problems.” The goal of the Standard on Software Maintenance of Shipboard Equipment is to make sure software updates happen in a secure and systematic way. It should increase the visibility of the software installed on board, ensure the effective planning of maintenance and ensure effective communication between the different parties involved in maintaining the software. Crucially keeping software up to date is also necessary to minimise hacking and malware problems.

The Liberian Registry has launched a Cyber and Ship Security ComputerBased Training (CBT) programme that provides a comprehensive overview of cyber-security issues, including concepts such as malware, network security, identity theft, risk management, and other common threats to maritime security. Jorgen Palmbak, Director of Maritime Security for the Liberian International Ship & Corporate Registry (LISCR), the USbased manager of the Liberian Registry, says: “Cyber-attacks have been identified as among the most serious emerging threats to the security of today’s shipping industry. Over 40% of crew members have reportedly sailed on a vessel that has become infected with a virus or malware - and only 1 in 8 crew members have received cyber-security training.” He adds: “In recent years, it has become apparent that maritime companies, ships, and ports are not adequately protected against what is clearly a rapidly evolving threat. Furthermore, IMO has issued a resolution giving shipowners and managers until 2021 to incorporate cyber-risk management into their ship safety plans. The Liberian Registry believes that there is an immediate need for both crew and shore-based staff to receive cyber security training as part of an overall security skill-set update and has accordingly taken a proactive approach to the issue.” Palmbak says that the CBT program also provides a comprehensive overview of common maritime security threats,

including the risk of criminal activity, threats to ship security, port-based drug-trafficking risks, security roles and responsibilities on board, and an introduction to the ISPS code. It also covers issues relating to stowaways, about 2,000 of whom are discovered each year hiding on ships, and piracy attacks, of which there have been an average of more than 300 per year since 2009. Distance learning specialist KVH Videotel has also launched a cyber security training programme, produced in association with global shipping association BIMCO, to address the threat of ransomware and other computer system breaches that could severely affect the safety of ships’ crew, systems, and operations. The company notes that the maritime industry is now focusing on cyber security issues and that IMO recently announced that it will soon be mandatory for companies to ensure that cyber security procedures are properly addressed in their ship’s Safety Management System (SMS). To create the training programme, KVH Videotel partnered with BIMCO, which has been active in recent years in researching maritime cyber security; BIMCO published guidelines in 2016 that have become an industry reference on the subject, and released an updated version in July last year. All in all there is now a lot going on in the cyber security area and no excuse for not taking the risks of cyber-attack seriously.

BIMCO and CIRM would like to see the standard become an ISO-standard, to make it more robust. ISO has provisionally accepted the proposal. BIMCO expects a work group to complete the standard in 2021. Meanwhile attention is starting to be paid to the pressing need to make seafarers more aware of the need for effective cyber security procedures.

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Record number of cruise ship calls at St. Petersburg During the 2017 navigation season St. Petersburg’s Sea Facade passenger port handled 247 cruise liners and two ferries

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ore than half a million cruise ship passengers disembarked at the terminal to visit the city. The number of calls to the port increased by 19% compared to the 2016 season. A Sea Facade spokesman said these were the highest numbers in the history of the port. The trend is expected to continue in 2018, with ship calls estimated to rise by about 10%.

waterway. The number of cruise voyages on Siberian rivers - the Irtysh, Ob, Yenisei and Lena - has also increased, though not so significantly. These positive changes are caused by state support for both the construction of cruise ships and the organization of regular passenger transport on intermunicipal routes.

Cruise ships are always welcome customers for bunker companies, despite their strict fuel quality and timing requirements. The Baltic Fuel Company reported that the volume of fuel delivered to cruise ships during the summer navigation season of 2017 amounted to more than 42,000 tonnes. Cruise companies that renewed their contracts with BFC include Viking cruises, Norwegian Cruise Line and TUI cruises.

Non-discriminatory access to ports rules approved The Government of the Russian Federation has approved a new regulation to ensure non-discriminatory access to port services: loading, unloading, storage, handling facilities and tug services. The regulation allows access to the available capacities of stevedores. However port investors, EAEU countries, large clients and shippers with take-or-pay contracts or long-term contracts will get priority.

An upturn in Russia’s cruise ship-based tourist sector, including both sea and inland ports, is underway throughout the Russian Federation. This follows a lengthy period of decline. Significant growth in passenger traffic was reported by Khabarovsk Kray (Far East) and Volga-Baltic

Stevedores should keep a register of applications and provide equal conditions for customers. They should not refuse to conclude contracts if sufficient capacity is available.

World Bunkering Spring 2018

Access to services must be provided within the ‘available capacity’, which will be calculated and published monthly. It is calculated based on the standard port capacity stated in the design documentation, but this value decreases if there are certain circumstances reducing the throughput of approaches to the port, such as weather conditions, etc. This regulation is the result of longterm efforts by both the authorities and stevedores. Russian media reported that the document as a whole was “positively evaluated by the professional community”. Kommersant quotes Vladimir Fefelov, a member of the Transport Committee of Opora Russia, as saying that the new rules “are designed to regulate the use of port facilities governed by large monopoly players”. Gazpromneft Ocean launches own lubes brand Gazprom Neft subsidiary Gazpromneft Lubricants has started production of marine lubricants using its own trademark, Gazpromneft Ocean. Production is carried out at the Omsk and Moscow lubrication plants, a company statement says.

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he product portfolio includes 15 marine oils for engines consuming different fuels and installed on all types of vessels, including icebreakers, tankers, bulk carriers and container ships, ferries and cruise ships. The long-term strategy of Gazprom Neft’s lube oil business envisages further development of marine oils production and the creation of an effective international sales network. The geographical spread of production and storage is expected to be expanded in 2018 to establish uninterrupted deliveries of Gazpromneft Ocean oil products at the largest foreign ports. Gazpromneft Lubricants specialises in the production and sale of oils and lubricants. It was established in November, 2007. Production is located at six sites in Russia, Italy and Serbia. Total annual production is over 500,000 tonnes. Major clients include Sovcomflot, Rosmorport, Rosnefteflot, Norilskiy Nickel and other Russian and foreign ship owners. Integration into the global Chevron supply chain allows the company’s customers to take marine oil in more than 800 ports worldwide. Gazpromneft Lubricants occupies 15% of the Russian lubricant market. The company also works in the CIS and Baltic countries, Europe, Central and South-East Asia, Africa and South America. The company is represented in 72 countries. Ramp allows bunkering from road tankers in Vanino port Russian Far-Eastern bunkering company Forum DV has a built a dedicated ramp for bunkering ships from road tankers at Vanino port. The company says this offers a simple and cost-effective technical solution which allows quick and safe refuelling of both floating storage facilities and vessels of various types. The ramp runs over a sealed lagoon which could contain any spill. Forum DV is based at Vladivostok. Currently it uses road tankers to deliver about 150,000 tonnes a year.

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The company’s area of operations covers almost the entire Far East and Transbaikalia, from Dudinka and Bilibino in the north to the Kuril Islands in the east and Buryatia in the south-west. Port charges to be cut for LNG-fuelled vessels The Ministry of Transport of Russia has started to work out measures aimed at stimulating the introduction of LNG as a marine fuel. One such measure under consideration is the reduction of port charges for LNG-fuelled vessels. The experience of European harbours will be taken into account when calculating the benefits. It is being assumed in the industry that the reduction will be 10% or more . Portnews Information Agency quoted Viktor Olerskiy, the deputy Minister of Transport, as saying that fleet suppliers, such as tugs, bunkering tankers and possibly port icebreakers, should be considered as pilot projects for the transition to LNG. Krylov State Science Centre to research LNG as a marine fuel St. Petersburg’s Krylov State Science Centre has won a tender for conducting research within the framework of the Russian Ministry of Industry and Trade’s “Development of the gas fuelled fleet for navigation in coastal waters and inland waterways” programme. The work will include the design of prototype vessels, relevant equipment and technologies, manufacturing of experimental samples of equipment and their beta testing. The program is financed by the federal budget and is intended to foster the development of a Russian commercial LNG-fuelled fleet built at domestic shipyards. The Ministry expects that by 2030 at least 38 such vessels will have started operations. It is intended that this fleet will include transport and passenger ships, bunkering tankers, floating bunkering bases, supplying and auxiliary vessels.

The ministry has also said that the first LNG bunkering terminals in the Russian Baltic will operate in late 2018 or early 2019. This refers to terminals in the ports of at Vysotsk and Kaliningrad. Gazprom’s Baltic LNG plant in Ust-Luga should be also in operation by 2022-2023. Alexei Miller, the head of the gas monopoly, publicly confirmed that this project is progressing according to schedule during a visit to the Leningrad region in late December 2017. LUKOIL Marine Lubricants increases share of world market Last year LUKOIL Marine Lubricants (LML), a 100% subsidiary of LUKOIL, increased its share of the global marine lubricants market by 2% to 12%. During the year, LML concluded a number of major international contracts, including an agreement to supply lubricants to half of Seaspan’s fleet, an agreement with Arab Shipping Company UASC, and a contract with Saudi Bahri Ship Management (a marine oil supplier for 10 large-tonnage tankers). Arab Maritime Petroleum Transport Company (AMPTC) also recently became another LUKOIL partner. According to the terms of the agreement, LUKOIL Marine Lubricants will supply its products for six AMPTC ice class product carriers. LML also signed contracts for global marine lubricant supplies to Lomar Shipping and Blystad Group (UK), and won a tender to supply lubricants for very large container carriers under construction for Mitsui OSK Lines. LUKOIL is continuing to develop its ICOlube cylinder lubrication system. LUKOIL Marine Lubricants has already received 26 further orders from companies which had already been using ten ICOlube systems. Over the last two years, the customers who have bought these systems also transferred 386 vessels to using LUKOIL engine oil. In the autumn of 2017, LUKOIL Marie’s Cylinder Oil for ultra-low sulphur fuel was approved by MAN and Wärtsilä.

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Bunker fleet modernization Vitaly Kovalev, the President of the Russian Association of Marine and River suppliers, speaks about the initiative which would allow companies to get subsidies for the modernization of their fleet

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t is well known that bunkering vessels in Russia, as a rule, are far from new. How do you assess the situation? Is the state of the bunker tanker fleet a real problem? According to our information 217 bunkering vessels currently operate in Russia. Their average age is quite substantial, 32 years. However, in the last three to five years the trend has changed for the better, and the fleet is getting younger gradually. Thus, Marine Engineering Bureau, a well-known engineering company, recently reported seventeen newly commissioned bunkering tankers. This is promising, but I have to say that none of these ships were built for a commercial company. Usually either the Ministry of Defence or a state port structure is the customer for bunker tanker newbuildings. So, it must be admitted that the major part of the bunkering fleet is really not new. But I don’t see any real problem. In Russia the state of the ships, their environmental and technical safety is monitored by many supervisory authorities, first of all, by the Russian Maritime Register and the Russian River Register. Therefore, if a vessel works in a given operating area, there is a 100% guarantee that it is in good order and meets very stringent requirements.

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Naturally, an old vessel, like an old car, requires more attention. It has to be repaired more often, and, of course, all shipowners would gladly replace all their old barges with new modern ones. But first of all shipowners take a lot of factors into account, primarily finance. How much money should be invested? What revenue will the investment bring in and when will the new barge pay for itself? I know our market very well and I can say that the existing bunker fleet generally satisfies both clients and owners and port authorities. Within the St. Petersburg port limits there is a vessel built in 1955. It copes perfectly well with the tasks required by its shipowner. This is a Dutch built tanker with a capacity of 550 tonnes, very economical, easy to operate. It has a crew of just three. The vessel is in excellent technical condition and can work for many more years.

Probably in each port there are such local legends, antique craft which are still used successfully today. Still, it is impossible to argue with the fact that progress does not stand still and the modern equipment is more reliable and efficient. Yes, I can’t argue with that. But it is necessary to understand that building a new ship in Russia is very expensive, more expensive than in many other countries. The payback period of such a project is at least 15 years. That means that only companies with a portfolio of long-term contracts and a reliable business plan for payback are able to afford this investment.

Vitaly Kovalev, the President of the Russian Association of Marine and River suppliers

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robably, no one would be surprised if I say that this is an opportunity for large companies only. As for the independent market participants, they are not able to make predictions for the decade ahead and must work on the basis of today’s realities. Unfortunately, that’s the situation today. Moreover, if we analyse the data on the bunkering fleet, we will see that even vertically integrated companies do not see economic sense in the construction of new bunker vessels and acquire their fleet on the secondhand market.

reimbursement of part of the cost of the construction of the fleet through credit and lease agreements; or a ship recycling grant - a lump sum payment to the shipping company for disposing of old vessels.

In many countries, programmes have been designed to reduce the environmental burden that arises in the operation of ships. The natural way to achieve this goal is to replace the fleet. A common instrument is various forms of state subsidy. How are things going in your market? Are bunker companies involved in such programmes? Yes, state shipbuilding support programmes are in force and shipowners have successfully seized the opportunity. Currently there are two ways of direct subsidisation from the state budget:

That is why our Association has taken the initiative to expand the range of existing state programs and extend them to include modernising the existing, ageing fleet. This would allow independent small and average size companies to take part in the modernisation process. Objectively, modernisation requires less investment than building of a new ship. Bunkering companies are able to find relevant funds. As an owner of a barging company I know it for sure. Moreover, this will bring orders to small ship enterprises, which are hunting for customers now.

It amounts to approximately 10% of the cost of a new vessel. But, I repeat, it only refers to the construction of new ships at the Russian shipyards. In the current economic situation this is not a feasible option for bunker companies.

How do you intend to act? The task is really not simple. The procedure of making amendments to the government’s decisions is complex and long, and the lobbying possibilities for the average business are much lower than those of the large. We have started the search for allies. And after a number of meetings we realized that, unfortunately, the strongest enterprises and public associations of the Russian shipping industry are not interested in cooperation with us as we had hoped. All of them, the United Shipbuilding Corporation, the Association of Shipping Companies, the Russian Chamber of Shipping and others, are oriented by the state to radically replace the obsolete fleet for international shipping. We must unite with businesses working for small technical vessels used in the interior waters. These are, first of all, ship repairing enterprises with which we have yet to find a common language.

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Rushing to be ready for 2020 ISO may produce intermediate ISO 8217 specifications prior to 2020, Unni Einemo reports

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here’s not enough time to produce a new fully revised ISO 8217 standard before 2020, but it is possible that a so-called “publicly available specification” could be ready sooner in response to a request from the IMO for ISO to “keep consistency between the International Organization for Standardization (ISO) standard and implementation of the 0.50% sulphur limit”. The 6th edition of the standard was published in March 2017 but it was not able to address all of the issues arising from the introduction to the market of several less conventional types of marine fuels with maximum 0.10% sulphur for operation in emission control areas (ECAs). Quality concerns specific to low sulphur types of fuel are expected to become even more pressing with the 0.50% sulphur limit in 2020. The normal revision process takes at least three years so it would not be ready prior to 2020, but sometime late in 2020 at the earliest, probably later. However, it is possible for the ISO 8217 technical committee (ISO TC28/SC4/ WG6) to provide an interim solution by producing a publicly available specification (PAS), which is an intermediate specification published prior to a full International Standard. A PAS is initially valid for up to three years, after which it may be extended for up to another three years or can be withdrawn. The PAS, or elements of it, could be adopted as part of the next full ISO 8217 revision.

ISO 8217 will likely continue to have DM grades (pure distillate fuels) so the main question is how it will address the low sulphur fuel blends that fall into the RM category today. The most pressing quality concerns about the blends that are expected to be produced to meet the 0.50% sulphur limit in 2020 relate to stability and the compatibility between various products, and this would likely be the focus of the work. It could include incorporating new test methods to get a better measure of fuel stability and compatibility. It will be a challenge to come up with ISO 8217 specifications for the low sulphur fuels that are not traditional distillates because their compositions can vary so much. They may be based on vacuum gas oil (VGO), or blends incorporating various heavy and light refinery product streams, including residual fuel oils and middle distillates. New testing kit gives quick results Monitoring technologies manufacturer Parker Kittiwake has launched its Parker Kittiwake Attenuated Total Reflection (ATR) analyser. According to the company,

the analyser “represents a breakthrough for the simultaneous testing of base number (BN), total acid number (TAN), insolubles, soot loading, viscosity, FAME and water content of oil samples on board a ship, allowing all parameters to be measured using a single sample in one test kit”. The ATR analyser uses infrared spectroscopy to determine the presence of damaging elements such as solid particles or water in a sample of oil. Parker Kittiwake says that frequent testing is essential to understanding the operating conditions in the system, allowing engineers to prevent unnecessary damage to critical and expensive engine components. Until now, operators have required a suite of condition monitoring tools to determine the operational integrity of the system, testing for each potentially damaging element separately. This increases cost, the time needed to carry out the testing, and the amount of equipment required. The new analyser allows operators to combine all of these tests and measure the parameters simultaneously using a single, onboard test kit.

At the moment, ISO 8217 is divided into distillate marine (MD) grades, distillate FAME (DF) grades and residual marine (RM) grades. We already have some fuels meeting the 0.10% sulphur limit in ECAs that do not fit into the distillate category, and hence are typically sold under ISO 8217 residual marine specifications (RM grades).

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EQUIPMENT & SERVICES

Focus on energy storage Offshore sector leads the way in bid to cut energy use

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he technology group Wärtsilä is to retrofit the world’s first energy storage solution on board a large offshore supply vessel, the North Sea Giant. Described as one of the world’s largest and most advanced subsea construction vessels, she will be fitted with an energy storage system that reduces the vessel’s energy consumption, operating costs and exhaust emissions. Wärtsilä says that the retrofit energy storage system improves the operational efficiency and environmental footprint of the North Sea Giant, responding to key requirements of Norwegian North Sea Shipping AS, the owner of the vessel. The solution provides power redundancy and increases responsiveness of vessel operations. Typically, a vessel with dynamic positioning uses two or more engines simultaneously to secure back-up power. This means that the engines’ load run low. By using a hybrid/battery system to provide the needed back-up power, one operational engine can be used closer to its optimal load. In addition to the hybrid/battery solution, the retrofit includes fitting new transformers, filters, switchboard, shore connection equipment, upgrades of existing components and commissioning.

World Bunkering Spring 2018

“For us is it important to reduce environmental emissions and modernise the vessel to make it more competitive. In addition, with a more efficient vessel, we will save fuel expenses. The estimated reduction in emissions is 5.5 million kg CO2, 30 tons of NOx and 1,200 kg SOx per year. After Wärtsilä had retrofitted our ship Atlantic Guardian in 2014, we really understood how much fuel can be saved by improving the vessel’s efficiency. Efficiency also saves time, because you only need to refuel every second or third port visit,” says Hallvard Klepsvik, the vessel’s Norwegian owner North Sea Shipping.

The ABS Guide for Use of Supercapacitors in the Marine and Offshore Industries (Supercapacitor Guide) is intended to support safe application of hybrid power in the marine and offshore industries. ABS says that the maritime industry is increasingly interested in using supercapacitors as an energy storage solution when quick energy delivery is required during a peak loading condition. In particular, offshore supply vessel (OSV) owners are considering supercapacitors to supplement energy supply during high-load operations, such as using power thrusters for dynamic positioning while station keeping.

A Wärtsilä statement adds: “The North Sea Giant is a DP3 vessel. The ship is listed in the most advanced category of vessels that apply dynamic positioning. Installation of an energy storage solution into a class DP3 vessel has never been carried out before and requires a redefinition of applicable classification rules. Therefore Wärtsilä and North Sea Shipping AS are working in close collaboration with the DNV-GL classification society.

“We are developing a series of guides on energy storage systems so our clients have as many options as possible to effectively manage energy use,” says ABS Senior Vice President of Engineering and Technology Derek Novak. “Supercapacitors have a high power density and a fast charging and discharging process to augment other power sources – which can greatly improve the efficiency of traditional energy sources.”

Meanwhile another classification society, American Bureau of Shipping (ABS) has published what it describes as the maritime industry’s “first comprehensive guide on supercapacitor use” which it says “expands options for efficient energy storage”.

The Supercapacitor Guide delineates types of supercapacitors, including electrochemical capacitors and lithium ion capacitors, and defines requirements for design, construction and installation of supercapacitors in marine and offshore applications.

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Legal

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Will the sulphur cap work? Ensuring compliance and enforcement could be more complicated than may have been thought, as Unni Einemo reports

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here is no doubt about the 1 January 2020 start date for the 0.50% marine fuel sulphur limit in MARPOL Annex VI, but questions remain around how it will be enforced and how good compliance will be. The answers to these questions are “it will vary” and “we don’t know but probably quite high” according to presenters and panellists at a forum hosted by IBIA during last year’s London International Shipping Week (LISW). The International Maritime Organization defines the regulatory framework and provides guidelines, but implementation and enforcement is up to the member states and how they do this is varied, IBIA’s IMO representative Unni Einemo told the forum. She said current enforcement of emission control areas (ECAs) may serve as examples but application in the manner seen in North Europe and North America requires resources, and it could be a steep learning curve for many countries. The entities that can enforce IMO regulations are the flag State which is the country where a ship registered and the issuer of required certificates; the port State where ships are calling at that country’s ports, and the coastal State which in principle is the same as a port State except the ship is only passing through its territorial waters, regulatory affairs expert Niels Bjorn Mortensen explained.

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Flag States have obligations to ensure vessels flying their flag comply with relevant regulations no matter where in the world they are. The port State, meanwhile, has powers to enforce rules and regulations adopted by the country it resides in and may even pursue a ship for pollution outside its territorial waters if it is deemed to cause damage, but it is not obliged to do so, Mortensen said. A state (flag, port or coastal) which has not ratified Annex VI does not have any legal instruments in place to penalise non-compliance. So a ship flying the Cabo Verde flag and operating permanently between Angola and Argentina could continue to burn fuel not complying with the global 0.50% sulphur cap because none of these states have ratified MARPOL Annex VI, Mortensen gave as an example. There is an open question as to how effectively flag states will enforce the sulphur limits and how they might penalise non-compliance. Moreover, penalties would need to be sufficiently severe to act as a deterrent to noncompliance which could see ‘cheats’ save millions of dollars. Even in the European Union, where there is a Directive in place for how port states should check for compliance with sulphur regulations,

each country has different penal systems where some have to pursue violations as criminal cases through courts while others can administer civil fines directly on the ship. The level of fines each country can administer also varies. Only 88 out of IMO’s 172 member states are signatories to Annex VI of MARPOL and of these only 28 have experience of sulphur regulation enforcement so far, IBIA’s chairman, Robin Meech of Marine and Energy Consulting Limited told the forum. However, he said 90% of global marine trade goes through ports in countries that are Annex VI signatories, which means they have powers to ensure ships are compliant when arriving at these ports. The other question is how much of the global fleet that is flagged in Annex VI signatory countries, meaning these ships are under an obligation to comply, even if they sail between countries that are not signatories and hence would face no enforcement action on arrival.

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ome 96% of global tonnage is flagged in Annex VI signatories, but Meech noted that there are 35 Open Registries of which 13 are signatories to Annex VI and 22 are not. Meech ventured a guess that non-compliance with the global sulphur limit, based on where vessels are flagged combined with instances of non-availability could be as high as 36% initially in 2020, before improved availability and more cohesive enforcement sees that figure shrink. Although the financial incentive to not comply in 2020 will be huge, most predictions for non-compliance in 2020 are much less dramatic. Experience with the 0.10% sulphur limit in ECAs point to high levels of compliance with the fuel sulphur limit, maybe 95% or more, despite the higher cost. Both Meech and Mortensen pointed to the likelihood that blue chip shipping companies will comply, in part because some of the cargo owners will demand it.

But you can’t just switch off the scrubber One obvious way of flouting the sulphur in fuel regulations would be to simply close down the scrubber once well clear of prying eyes, saving the fuel needed to operate it. However the International Chamber of Shipping’s technical director John Bradshaw told World Bunkering that this possibility had been “fully addressed” by the IMO guidelines for scrubbers (MEPC.259(68)). He explained that a scrubber is an equivalent means of compliance under MARPOL VI regulation 4 and as such is subject to approval by the ship’s flag administration, again in accordance with MEPC.259(68). These guidelines offer two options:

World Bunkering Spring 2018

It is necessary to differentiate between intentional non-compliance and noncompliance, which is why the IMO has agreed on the need to develop a draft standard format for reporting fuel oil non-availability that may be used to provide evidence if a ship is unable to obtain compliant fuel oil. Regulation 18.2 in MARPOL Annex VI says a ship should not be forced to deviate or unduly delay its voyage if, despite reasonable efforts, it cannot bunker compliant fuel. This is in effect the only acceptable form of noncompliance but it needs to be carefully managed so it doesn’t become a loophole that is open to abuse. The US has already demonstrated this in practice by requiring ships that are unable to source ECA-compliant fuel to submit a Fuel Oil Non-Availability Report (FONAR) to the US Environment Protection Agency (US EPA) and authorities at port of destination. If the US EPA suspects abuse of the system, it will investigate further so submitting FONARs is not a guarantee that the ship will be exempt from enforcement action.

Comments at another event during LISW saw representatives for large shipping organisations argue the virtues of shipping companies and flag states, saying most shipping companies want to comply and they see no issue with flag states because they don’t want ships on their registry to be arrested as it makes them look bad. What is needed, some argued, is stricter enforcement on bunker suppliers.

• Scheme A – effectively a form of type approval with continuous parameter monitoring and daily emissions checks. Under Scheme A the scrubber performance is approved, with the scrubber receiving a sulphur emissions compliance certificate (SECC) which will include a certified value, and the parameters to ensure that it is operated so as to meet the demonstrated performance are defined. • • Scheme B –effectively treats the scrubber as a black box with continuous emissions measurement and daily parameter checks. Under Scheme B the performance of a scrubber is not approved, it is the monitoring which is approved and compliance is demonstrated by emissions measurement. Therefore there is no certified value or SECC • as for Scheme A.

Mr Bradshaw commented: “The guidelines also specify various technical manuals (such as the onboard monitoring manual, OMM and EGC system technical manual scheme A or B, ETM-A/ETM-B) and log books, metrology requirements and a SOx emissions compliance plan (SECP) which are to be approved. The data captured by continuous parameter checks (Scheme A) or continuous emissions monitoring (Scheme B) is automatically logged using read only, tamper proof equipment. So the issue of making sure that scrubbers are not just switched off when out of sight is already fully addressed and we see no need for any further action beyond the normal process of review and amendment of existing guidelines. We would also expect any other equivalent means of compliance, such as on-board blending to be subject to appropriate means of demonstrating compliance.”

Indeed this is understandable if the ship receives bunkers that are not compliant with the sulphur limit, as that can leave the ship unintentionally non-compliant. Enforcement isn’t always sympathetic to this, however. As one US-based lawyer put it with regards to how sulphur regulations are enforced in California: “We don’t care what you bought, we only look at what you burn.”

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‘Disintermediation’ underway? Traders are under pressure as online platforms and changing marine fuel purchasing preferences threaten to cut out the ‘middleman’

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s recently made-up words go, ‘disintermediation’ is not perhaps the most elegant. However the term, apparently coined by marine fuel sector veteran Adrian Tolson, describes a profound marketplace change that bunker industry insiders will recognise. Ship operators are increasingly buying their bunkers directly without using intermediaries. Tolson told Seatrade Maritime News recently that the “bunker trader model is definitely under pressure”. He has been telling several fora that buyers have been losing confidence in intermediaries such as distributors or brokers who formerly linked a company to its customers. According to Tolson, senior partner at bunker consultancy firm 20|20 Marine Energy, one sign of the changes taking place was major container carrier CMA CGM’s new pact with oil major Total. “We will be seeing more of such partnerships between major shipowners and oil companies,” he said. The collapse just over three ago of major trader OW Bunker still casts a shadow over the industry,

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to the extent that things will never be the same again. Tolson was quoted as saying the financial disaster “sealed the deal” for disintermediation. Certainly some of the big traders have been reporting much diminished earnings and it would be difficult to find anybody to dispute that extremely fierce competition has pushed earnings to very low levels, making it particularity attractive to cut out the intermediary if possible. On the other hand, online platforms may become the new intermediaries. International bunker trader and supplier Brightoil abandoned understatement when it launched a new suite of online tools recently, confidently predicting that it would transform the way bunker fuel is traded globally. Brightoil Bunker Online E-Delivery platform went live last year and includes a forward fixed price (FFP) facility making, the company says, “the process of buying bunkers anywhere in the world faster, easier and more transparent”.

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he platform is accessible via PC, Mac, iOS and Android mobile apps. The new platform is the result of a yearlong collaboration between commercial and IT development teams from Brightoil’s Singapore and Shenzhen offices, with more than 60 working on the project. The new facility enables customers to lock-in bunker cost for up to nine months forward thereby reducing exposure to major price swings. Its features include: price risk management providing real time FFP indications; up to nine months forwards are tradable; no initial margin or margin calls; online nomination of FFP contracts for physical delivery and optional cash settlement.

Brightoil is not the only online player in the changing bunker scene. ClearLynx, for example, describes itself as a leadingedge, online neutral platform for the bunker fuel market. The company says electronic markets have “brought new levels of speed, efficiency, convenience and market access to industry after industry” and it is “poised to do the same for the marine fuel industry”. ClearLynx says it overcomes the hurdles of high costs, time-intensiveness and extensive inefficiencies that have weighed on the industry for years. It makes the point that, on most spot orders, 20 people, or more, can be involved in planning, negotiating, coordinating,

delivering, measuring and testing the fuel ordered. It notes: “All the activity generates numerous e-mails, phone calls and texts ... for one transaction.” The US-based company says it “changes all that—simply, effectively, economically, reliably”. According to ClearLynx, a “dynamic, synchronous bid/ ask dashboard is the heart of the system”. Inquiries in and out are managed simultaneously. Inquiries and confirmations are instantaneous. All quotes are managed in one place. Confirmations and amendments need just a single click. Reporting and analytics, ClearLynx asserts, are “robust”.

Brightoil International Trading and Bunkering Chief Operating Officer Stephen Qi Jun said: “We are taking a strategic step in this uncertain environment by putting significant resource and financial investment into this online platform.” He added: “We are launching now because we recognise that our customers’ business environment is rapidly changing. There is a constant need to improve process efficiency and create cost saving in the intensely competitive shipping markets. This is why we have worked hard to incorporate a full spectrum of new and innovative tools available now at your fingertips.” Brightoil claims the platform gives bunker buyers security and transparency “to a level that has never been available in the market before”. The settlement culminates in physical bunker delivery “rather than speculative hedging using paper financial instruments.” The company also highlighted some other “unique features” of the platform. It gives the ability to connect and negotiate with physical bunker suppliers in major ports worldwide, allows monitoring of global ports’ bunker delivered prices and gives access to a voyage planner to optimise routes and reduce bunker fuel costs. In addition, credit options are available from Brightoil. World Bunkering Spring 2018

Stephen Qi Jun - Brightoil

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Company news

iStock

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Gibraltar

Gibraltar continues to be the largest bunkering port in the Mediterranean with the positive growth trends of 2016 continuing in 2017 with 2017 figures showing a 5% increase in vessel calls to Gibraltar, year on year

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t is very pleasing to note that Gibraltar continues to retain its leading position with regard to bunkering with bunker calls up over 10% against the previous year and volumes up by over 17% and is testament to the solid partnership across the wider port community in Gibraltar, and to the invaluable drive and support of the shipping agents, bunker suppliers and other service providers. The Gibraltar Port Authority (GPA) is a long standing member and supporter of the International Bunker Industry Association (IBIA) and collaborates closely with IBIA in working to raise standards across the bunkering industry internationally. In this context, the GPA’s Bunkering Code of Practice and the regulation of the thriving bunker industry in Gibraltar are held as models of best practice. The GPA is also one of the active participants in IBIA’s ‘Port Charter’ initiative. During 2016 the GPA joined the Society for Gas as a Marine Fuel (SGMF), a nongovernmental organisation established to promote safety and industry best practice in the use of gas as a marine fuel. With over 100 members, the Society includes key ports such as Singapore, Rotterdam, and some of the most well known suppliers and operators in this field. This represented a key step for the GPA, allowing it to draw on the technical expertise and experience present in SGMF as the Gibraltar Government prepares for LNG bunkering in the future.

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As widely reported last year, HM Government of Gibraltar and the GPA announced the signing of a bunker market development agreement which is a significant milestone on the road to delivering LNG as a bunker fuel to ships at anchor in Gibraltar, and forms part of the Port of Gibraltar’s strategy to provide the widest range of marine services as it looks to the future, especially with the introduction of the 2020 cap of sulphur in fuels. Although the GPA envisages that the demand for LNG will not be immediately present, it is keen to have the infrastructure in place so that this will provide this service to clients in the future. It will also undoubtedly help to reinforce the Port of Gibraltar’s green credentials as well. One of the other key developments is the purchase by HM Government of Gibraltar of an upgraded Vessel Traffic Services system for the port.

This upgraded system will be housed in the nearly completed new port building situated at Lathbury Barracks at the Southern end of the Rock – the upgraded system should be live in early 2018. This clearly demonstrates Gibraltar Port’s commitment to ensuring functionality and resilience in the system which underpins safety of navigation in Gibraltar waters. The GPA also continues to attend key industry events held around the world thereby providing an opportunity to reinforce the Port’s reputation on the regional and global stage. Attendance at these events has also resulted in the Port being invited to give various presentations or sit on panel discussions at high profile bunkering and shipping conferences and this has provided an opportunity to update the audience on recent developments and initiatives aimed at further improving the Port of Gibraltar’s efficiency and standing.

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World Bunkering Spring 2018


company NEWS

Galp getting ready for 2020 Galp, and its subsidiary companies including Petrogal SA, is the only fully integrated energy group in Portugal

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ts activities range from oil and natural gas exploration and production to the refining and distribution of petroleum products, the distribution and marketing of natural gas and the generation of electrical power. It has more experience than any other Portuguese company in the energy sector, with a successful business history that stretches back over 100 years. The company entered the stock market in 2006. Galp is the market leader in Portugal in the petroleum product distribution business and has a significant presence in Spain. This business includes the sale of refined products to direct customers, namely to the retail sector and filling stations, and to the business or wholesale segment: transportation, aviation, industry, contractors, marine and lubricants. In what concerns the bunkers marine business, the company is getting ready for the 2020 challenge. Researching, studying and testing several possibilities to achieve one goal: to be ready to supply the market in 2020. During the Atlantic Meeting Conference, organized every year by Galp for their clients, the company revealed details about its plans. Galp explained its studies and all the work done so far in what concerns the Global Cap 2020.

World Bunkering Spring 2018

From the refinery perspective, regarding the product quality, Galp has showed that there are several options on the table; residuals and/or distillates to achieve the 0.5% Sulphur cap, paying special attention to the product’s stability and compatibility factors that remain a concern in the market. Galp also illustrated the logistic challenges that new products can bring to a supplier and how the company is dealing with it. Moreover, Galp is also prepared to supply LNG in the Portuguese ports. Initially it will commence with truck deliveries but other delivery options of pipeline and/or barge supplies will be considered as well according to the market growth and potential. Additionally, views relating to market expectations, likelihood of compliance and the differing views of future price trends were also discussed at the Atlantic Meeting 2017 Conference. Galp continues to grow it’s bunkers business dedicating special attention to bunkers only calls in the port of Lisbon. Working closely together with the Port Administrations to reduce calling costs, offering competitive prices and making Lisbon a port not just for cargo operations or bunker lifting’s but also a port where ships can be provided with all kind of extra services.

Galp remains ahead of the market priding itself in supplying fuels that already meet the latest ISO edition, i.e.; ISO 8217: 2017. Is also cofounder and member of Lubmarine - a worldwide organization specialized and dedicated to marine lubricants fully integrated from product development, supply chain, marketing and sales. It is present in 100 countries where each company member follows strictly all the procedures that concern technical, performance and safety. Lubmarine provides the shipping industry with the best marine lubricants and greases, associated with first-class service. Galp produces the right lubricant to your ship and supplies at the right port. If you require bunkers in Portugal or Spain then just contact us at Galp. We look forward to receiving your call ! +351 217 240 654/952 +351 210 039 032 bunkers@galp.com galp.com

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Company news

AKRON Trade and Transport Quality on time, every time

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stablished in 1997, AKRON Trade and Transport is a fully-integrated bunkering company that holds itself responsible and accountable for every step of product development from refinery to our consumers. The products we deliver to our clients are tested, traceable and reliable. Thanks to our geographical location off the east coast of the Middle East and our in-depth local knowledge we have secured strong relationships with oil majors, independent oil companies and refineries to ensure consistency The Company’s Main Activities consist of: Bunker Supplies Local and high seas bunker supplies. Over a period of time, Akron has created and established a sizeable market share in the bunker sector, selling and physically supplying marine fuel oil of all grades to all vessel types off the East coast of the UAE as well as to the international fishing fleets in the Arabian Sea, the Indian Ocean and the Bay of Bengal. As a physical supplier, the company purchases marine fuel from reputable suppliers on the spot market or under renewable contracts from petroleum trading subsidiary of National Gulf State Oil Companies. “We continually strive to become more effective and competitive within this market, which is paramount in these uncertain times so that we can provide our customers with the best bunkering services.”

its ships, effectively controlling product movements and testing procedures to ensure accurate and reliable fuel specifications at all times. Vessel Chartering AKRON’s managed vessels are available for charter to third parties on spot/voyage, or on short/medium time-charter basis, thus maximizing fleet utilization rates. Oil Trading In addition to its physical supply operations, the company engages in substantial “whole-sale” oil trading activities, of marine fuels to its customers in the East African countries, islandstates of the Indian Ocean, local (UAE) government authorities, traders and specialized refineries). Our Team AKRON has nurtured a management team that brings exceptional experience and expertise from the shipping and oil industries, particularly in tanker management and bunkering operations in the Gulf. With a strong, dedicated support team on the ground we put our experience, expertise and knowledge at your service 24 hours a day. Our Fleet Our Offshore Bunkering operations utilize a storage mother vessel and a dedicated fleet of delivery tankers, all of which are internationally-certified and fully equipped to meet all STS requirements.

With over 150,000 metric tons of floating storage within the Arabian Gulf alone and a fleet of 27 vessels expanding year on year we have achieved an excellent longstanding relationships with our reputed charterers and with a continuous, reliable source of quality product, our customers are always ensured of prompt and efficient delivery of bunkers. Safety & Quality Since our inception, there has been NO quality or quantity dispute, a record we are dedicated to maintain and an opportunity for us to show our customers their true value by providing optimum bunkers at the quickest turn-around time. Akron’s quality assurance program effectively controls product movement and testing to ensure accurate and dependable fuel specifications at all times. Akron possess a Zero pollution and Spill incident with a clean safety and environmental record. Akron Trade and Transport has all it takes to become and remain your reliable partner!!

AKRON TRADE AND TRANSPORT P.O.Box 1327, Fujairah United Arab Emirates. Tel: + 971 9 2228840 Fax: + 971 9 2228841

Ship Management The company uses Group-management vessels to transport, store and deliver marine fuel products. Fully equipped to meet all Ship-to-Ship transfer requirements, as well as specially fitted for offshore bunkering and maintain high safety standards by complying with International and UAE regulations. To achieve highest quality assurance, the company handles fuels right from the refinery to the point of delivery on board

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World Bunkering Spring 2018


Bunkering by truck or by barge in all French ports

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reated in 1999, ATLANTIC ENERGY is a French company specialized in bunkering operations and negoce fuels. We are able to deliver our products in all the French ports and to supply all vessels with Marine Gasoil or Fishing Gasoil (max Sulphur 0,10 %) by truck in France.

ATLANTIC ENERGY have created a bunkering opportunity by barge at ROUEN and LE HAVRE port area to supply Marine gasoil 24 hours a day, 365 days a year, via dedicated barge service.Our barge can deliver all required fuel volumes, starting from 10 M3 up to 500 M3.

We are also able to meet your marine fuel oil requirement on RMG380 HS (max Sulphur 3,5%) and RMG380 LS (max Sulphur 1,5 %) by truck in South port. In order to ensure compliance with the ISO-8217, all products delivered by ATLANTIC ENERGY are regularly analyzed. We deliver all the products in respect of Marpol regulation.

All the ports in Channel, from Dunkerque to Brest by truck and at Le Havre, Rouen by truck and by barge. All the ports in Atlantic coast, from Brest to Bayonne by truck. All the ports in Mediterranean coast, from Monaco to Port Vendres by truck. ATLANTIC ENERGY can offer to owners, to charterers,to operators and to traders inner French ports.

company NEWS

atlantic energy


COMPANY NEWS

the port of ceuta Bunkering in the Strait of Gibraltar for more than 100 years

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ith its strategic location in Africa, this Spanish port of call maintains an important geographic position for passengers, products and goods destined for Africa and Europe. • •

• •

It is one of the top ports in the Strait of Gibraltar for bunkering services. Tax-free bunkering and zero duty on goods passing through the port deliver a financial advantage. We can offer a quick turnaround owing to efficiencies of scale. The port boasts state-of-the-art facilities for superb ship servicing – specialising in medium-sized ships. The port complies with the Cronos project for rapid response and prevention of accidental contamination of the port environment.

The entire economy of Ceuta depends directly or indirectly on the port and its activities. Due to its geographical location, it is also the entry and exit point for most goods and provides the foundation for most commercial activities. The existing infrastructure is excellent for the bunkering of ships. This reflects the importance of this activity for the port, which supplies nearly one million tonnes of bunker fuel. Quality service is what sets the Port of Ceuta apart from its competitors. This can be found throughout the facility, in areas including infrastructure, machinery and labour force.

The port’s objective is to attract and meet the needs of medium tankers using intermediate fuels. This unique specialisation in the servicing and supply of medium moored boats has no equal in the Strait of Gibraltar. The port is also considered to be the least congested in the Strait. Liquid bulk traffic, which includes the loading and unloading of fuel and the supply of ships, represents over half of the port’s traffic. This is a reflection of the favourable times we are currently enjoying in bunkering. Most of the port infrastructure is exclusively designated for this side of our business. Therefore, we can confidently say that this is our specialisation. Within the Spanish port system, we are an indispensable reference point for this type of traffic. For more information on how we can meet your energy and port needs, please visit www.puertodeceuta.com

Port Authority of Ceuta Muelle España, s/n 51001 – CEUTA (SPAIN) Tel: +34 (0)956 52700 Fax: +34 (0)956 527001

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World Bunkering Spring 2018


Since 1993, EMEPCO has risen to the challenge of efficient disposal of oily water and slops

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mirates Marine Environment Protection Company (EMEPCO) was established in 1993 with the aim of providing proper and efficient methods for the disposal of slops, oily water and waste oil to the various sections of the oil industry, particularly those involved in sea transportation. With a long-term agreement with the government of Fujairah, EMEPCO is today one of the prime companies providing slop reception facilities in the Port of Fujairah, Khorfakkan and various other ports in the United Arab Emirates (UAE), as stipulated in Marpol 73/78 Regulation 38 / Chapter 6/Annex 1.

located on the east coast of the UAE. EMEPCO’s strategic location in Fujairah, one of the world’s major oil tanker destinations, gives the marine industry an opportunity to deliver slops generated from the crude oil washing and tank washing of product tankers, etc, to a 24-hour reception facility.

This enables the vessels to comply with the zero oily water discharge restriction in the Gulfs Area, which is listed as a Marpol special area.

This was in response to the increasing demand for environmentally safe tank cleaning and disposal of oily water from product tankers in the anchorage of Fujairah,

2018 IBIA EVENTS PROGRAMME 2018 FEBRUARY 19th 19th MARCH 20th 20 - 22nd APRIL 12th 17th - 19th 26th MAY 29th NOVEMBER

IBIA AGM and Board Meeting IBIA Annual Gala Dinner

London, UK

Training: Africa Region specific training IBIA Africa’s Bunker Conference

Tenerife, Canary Islands Tenerife, Canary Islands

IBIA Africa AGM IBIA Caribbean Conference: Fueling a New Era in the Caribbean IBIA Asia Dinner

Cape Town, South Africa Caribbean, Jamaica Singapore, Asia

IBIA Asia AGM IBIA’s Bunkering Technical/Commercial Seminar

Singapore, Asia Greece, Athens

IBIA’s Annual Convention 2018

Copenhagen, Denmark

London, UK

*note please view the IBIA website (www.ibia.net) for updates on training and events

World Bunkering Spring 2018

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company NEWS

War on waste


new members

new members Corporate

Individual

Trader, Broker Evert Elema PBT Netherlands BV Europe evert.elemapetrolbunkering.com

Bunker Broker Petter Opstad Norwegian Oil Trading AS Europe po@norwegianoiltrading.no

Refining Thomas Rippert Rigby Refining, LLC America (North) thomas.rippert@rigbyllc.com

Supplier, Trader Tommaso Panzeri Maxcom Bunkers S.P.A Europe tommaso.panzeri@maxcombunker.com

Ship Owner Takaharu Nagae NS United Bulk Pte. Ltd. Asia nagae@nsuship.com.sg

Shipowner Mohamad Masri Long Wave SAL Middle East mohamad.masri@queenslandshipping.com

Bunker Supplier Alexander Prokopakis LNG PRO Bunkers Europe a.prokopakis@probunkers.com

Trader Iwan van der Leest SBI (Sea Bunkering International) BV Europe I.vd.Leest@sbigroup.nl

Bunker Supplier Samantha Leow Exxonmobil Asia Pacific Pte Ltd Asia samantha.sm.leow@exxonmobil.com

Surveyor Mathews George Veritas Petroleum Services (Asia) Pte Ltd Asia mathews.george@v-p-s.com

Service Frode Helland-Evebo Clean Marine Europe fhe@cleanmarine.no

Broker Ishaan Hemnani Bunkerex Limited Europe ishaan@bunker-ex.com

Ship Owner Anupam Moondra Scorpio Marine Asia amoondra@scorpiogroup.net

Agent Vernon Jayanathan Vernon Jayanathan Europe vernonjayanathan@hotmail.com

Service Mark Wilson Oil Search Australia/NZ mark.wilson@oilsearch.com

Trader, Broker Marco Carbone Riviers Marine Sam Europe mcarbone@rivieramarine.mc

Supplier, Shipowner Praveen Jaiswal Al-lraqia Shipping Services & Oil Trading Middle East p.jaiswal@aissot.com Oil Industry Major, Supplier Punjaree Thanarahtsin PTT Plc Asia punjaree.t@pttplc.com Andrea Sola Dynamic Fuels SL Europe bunkers@dynamicfuels.com

Agent Thomas Sullivan Seatrans Shipping Malta Europe info@seatrans.com.mt

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Martyn Lasek Big Ranch Media Inc Amercia (North) martyn@shipandbunker.com

World Bunkering Spring 2018


Next ISSUE

World bunkering

summer 2018... now open for bookings

Summer 2018 Special Features: Oil Majors The 0.50% global sulphur cap is only some 18 months away. How are the oil majors responding? Will they be producing large volumes of blended low sulphur heavy fuel oil or do expect MGO to be the standard option?

Fuel Management Effective fuel management is an important aspect of overall vessel management. We report on recent developments.

Scrubbers Is it too late to order and fit a scrubber before the January 2020 deadline? We look at the market and the difficult decisions still facing owners.

Geographical Focus: Eastern Mediterranean Our annual Eastern Mediterranean survey takes a look at the bunkering sectors in Cyprus, Greece and Turkey?

Indian Subcontinent Our annual survey of the marine fuel industries in Bangladesh, India and Pakistan. What’s new? What are the prospects for developing the region’s bunker markets?

Regular Features Russian Update News, Views, Analysis Interview, Industry News, Environment, Testing, LNG, Lubricants, Innovation, Legal News, Equipment and Services, Diary Event Previews & Reviews

www.worldbunkering.net World Bunkering Spring 2018

ibia@constructivemedia.co.uk 73


DIARY

27 FEBRUARY 2018 – 2 MARCH 2018

DIARY

13TH LNG SUPPLIES FOR ASIAN MARKETS, SINGAPORE With the theme ‘Lower for Longer: Implications for Asia’s LNG Business’ this event is expected to attract over 200 delegates and will again feature a special LNG veterans panel comprising of key veterans in the LNG industry. abby@cconnection.org

23 – 24 APRIL 2018

GREEN MARITIME FORUM, HAMBURG The Forum aims to offer a comprehensive program focusing on the expansion and development of shipping related processes. info@wisdom.events

5 – 8 MAR 2018

Middle East Bunkering Convention 2018, Dubai The third annual Middle East Bunkering Convention will highlight the exceptional growth taking place in the marine fuels sector in Dubai and examine the markets and players active in the region. events@petrospot.com

14 – 16 MARCH 2018 ASIA PACIFIC MARITIME

7 – 11 may 2018

MARITIME WEEK AMERICAS 2018, PANAMA Maritime Week Americas 2018 celebrates Panama in the year that this amazing little country plays for the very first time in the finals of the football World Cup. The action-packed week comprises a full programme of key maritime events, including the MWA Conference. events@petrospot.com

APM is expected to be Asia’s largest Maritime and Offshore exhibition in 2018, with 14,954 visitors and buyers from Asia, 1,500 exhibiting companies from 60 countries booked in http://www.apmaritime.com/

4 – 8 JUNE 2018 POSIDONIA, ATHENS

20 – 22 MARch 2018

IBIA’s Africa Bunker Conference Tenerife, the African and European bunkering hub, is attracting considerable new investment. This timely conference offers delegates great networking opportunities with key decision makers. Delegates can participate in panel discussions with industry experts on the IMO 2020 global sulphur cap, learn about Tenerife’s future in LNG, gain insight into growth opportunities in Africa and hear from major ship owners on their plans for technology and fuel strategies. In addition to this you will be offered industry-leading training opportunities, a tour of two of Tenerife’s ports and a spectacular gala dinner. Should you have any enquires regarding this forum please email tahra.sergeant@ibia.net

Once again this major biennial shipping gathering is expected to attract senior people from the entire global shipping industry to Athens. National and international exhibitors make Posidonia one of the highlights of the shipping industry calendar. As always there will be a wide-ranging accompanying programme including conferences, seminars and technical workshops as well as networking and social activities. http://posidonia-events.com/

2 – 5 october 2018 SIBCON - SINGAPORE

17 – 19 APRIL 2018

IBIA Caribbean Bunker Conference: Fueling a new era in the Caribbean The IBIA Caribbean Bunker Conference, hosted by Maritime Authority of Jamaica, is set to be one of region’s must attend events of 2018. Providing critical information, discussion forums, and networking opportunities, FUELLING A NEW ERA IN THE CARIBBEAN will cover essential topics for all stakeholders within the bunker buying chain. Key among these will be an exploration of what IMO2020 means for both bunker buyers and suppliers in the region, particularly with respect to compliance solutions, the availability of new fuels in the region and the question of enforcement. It will also provide a showcase of current regional bunkering infrastructure and give insight into what the future holds for the Caribbean and the Americas bunkering markets. For sponsorship enquiries and questions about supporting this event, please contact: Paul Davis - E: sales@shipandbunker.com - T: 1.800.898.5473 For speaking opportunities please contact: Justin Murphy - E: justin.murphy@ibia.net Registration for this event will open in early February 2018. For advance information on attending this event please email: ibia@ibia.net

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With over 1600 attendees expected at SIBCON 2018, key decision makers from the shipping and marine fuels community are expected to converge in Singapore to outline market potential, growth segments, and strategies to operate in the current environment. http://www.sibconsingapore.com

25 – 26 OCTOBER 2018 ARACON, ROTTERDAM

ARACON is the longest-running and biggest bunkering conference in the Amsterdam-Rotterdam-Antwerp region. Its no-nonsense conference programmes attracts all the main bunker suppliers and barging companies in the ARA and Northwest Europe as well as shipowners and managers from throughout the region. ARACON now takes place every autumn in Rotterdam, the biggest port and by far the biggest bunkering centre in Europe.

World Bunkering Spring 2018


The bunkering PorT in The mid-ATlAnTic commercial@tenerifeport.org

World Bunkering spring issue 2018  

INSIDE THIS ISSUE: ARE ON-LINE PLATFORMS THE NEW INTERMEDIARIES? REGIONAL FEATURE: CARIBBEAN PROMISE INTERVIEW: TOTAL EMISSIONS STRATEGY

World Bunkering spring issue 2018  

INSIDE THIS ISSUE: ARE ON-LINE PLATFORMS THE NEW INTERMEDIARIES? REGIONAL FEATURE: CARIBBEAN PROMISE INTERVIEW: TOTAL EMISSIONS STRATEGY

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