World Bunkering - Summer 2010

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IBIA Reports

Chairman’s introduction 32

31 40

7

Industry news

11

Chief Executive's report

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Testing Oil majors Fuel management Surveyors

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REPORTS

Chairman’s Introduction

O

scar Wilde said that, after a good dinner, one can forgive anybody – even one’s own relations. Fortunately, having made my first speech as Chairman at the Annual IBIA dinner in London in February, there appeared to be nothing to forgive. Nobody heckled, and some people even laughed in the right places. I must say it was a genuine pleasure to see so many members and guests gathered together in one place. I believe ‘networking’ is very much the thing these days, but I prefer to call it friendship when the IBIA family gets together in this very public way.

At this time last year, Chris Fisher warned that our industry was in for a tough 12 months. He wasn’t wrong. This year I hope you will forgive me if I repeat Chris’s words of warning. At a time when the world seems unable to decide whether it is in or out of recession, it would be unwise to make any predictions for the bunker industry in 2010.

One thing we can say with some certainty, however, is that the quality and speed of communications in our industry these days is much better than at any time in history. Occasionally, of course, that can be a curse, and often it means we are more likely to be doing business with people we have not met before. But that is how business grows, and relationships develop, and we must continue to rely on our instincts while making sure that the contracts we sign reflect the true intent of both parties.

Generally speaking, the information available to us today, usually at the mere touch of a button, should make us more efficient and more knowledgeable as an industry – and that applies both internally and externally. The speed and quality of

World Bunkering Summer 2010

communication between IBIA members has, as you know, recently been enhanced by the launch of a new, user-friendly website. I urge you to make best use of its sophisticated facilities. We must work to make IBIA even more accessible than it already is, by communicating our news and concerns on a regular basis.

Greater transparency and wider access to information should also improve levels of professionalism within our industry, which is one reason why IBIA will push ahead this year with its plans to introduce professional qualifications for those working in the bunkering sector. We cannot do it overnight, but we will do it, and the industry will be better for it.

IBIA’s constitution, as you know, has undergone significant recent change, and its governance transferred from a Council of Management to an executive structure headed by a Board of Directors. That was done in order to enable IBIA to focus more easily and move more quickly on issues that affect its members. We expect members to benefit from the changes. Certainly, the IBIA administration has done a remarkable job on behalf of the membership over the years, and I am confident it will continue to do so.

IBIA has kept its finger on the pulse of changing regulations over the years, and has indeed played a proper role in influencing their formation. It has a proven track record of representing the bunker industry at IMO and other important bodies, and it has shown time and again that it has a voice which can be heard and which is respected.

If we do not become involved in those issues which impact on our members, we face the increasing risk that our industry will be exposed to rules, regulations and standards imposed by third-party bodies which do not

Mike Ball

understand how we work, and over which we have little control.

Our job is to keep a weather eye out for developments on both a national and international level, which is why we recently alerted members to the fact that, with effect from April 20, 2010, EU regulations on the sulphur content of fuel used by ships at berth in EU ports became law in the UK, and that ships failing to comply would face the risk of prosecution.

The new regulations essentially implement, in the UK, the EU Directive requiring member states to take all necessary steps to ensure that ships at berth in their ports do not use marine fuels with a sulphur content exceeding 0.1% by mass. In addition to the requirements under MARPOL Annex VI, the new regulations embrace a number of other requirements. Interestingly, though, they make no reference to the lower sulphur limit for ECAs of 1%, which comes into effect on 1 July 2010. As such, they are a good illustration of how domestic implemention of legislation often lags behind the decisions of international organisations. As always, the devil is in the detail.

And, as always, IBIA is looking out for its members’ interests.

It is important to remember that IBIA is a voice for all the constituent parts of the bunker industry, and that it is committed to representing each of them with equal vigour.

Given the way that our industry is developing, and the manner in which the economic climate within which it operates is unfolding, it is likely to be a voice which is heard with increasing regularity, and to telling effect, for the foreseeable future.

Mike Ball

7

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Industry news

Global round-up AFRICA Cosulich offers bunkers in Djibouti

Fratelli Cosulich is now offering barge supply of IFO 380 cSt and 180 cSt and MGO in Djibouti. Service is provided from two barges, one of 3,500 cu m capacity and one of 1,000 cu m capacity. The larger barge delivers all three grades of fuel, whereas the other is a dedicated MGO barge.

ASIA Singapore extends port fee concessions

Singapore’s bunker tanker fleet will benefit from an extension of a port dues concession brought in to help tide the shipping industry through the economic downturn.

The government has announced an extension of 10% port dues concession for all ocean-going ships with a port stay of not more than 10 days and 20% port dues concession for harbour craft engaged in commercial activities within Singapore port waters for another six months, from 1 April to 30 September this year. The measure was initially brought in on 1 April last year.

canal to some 11,000 tonnes. “With this investment, CEPSA Panama is not only reinforcing its commitment towards reliability, quality, versatility and timely responsiveness but also towards compliance of future regulations, thereby guaranteeing the delivery of a premium customer service,” said a company statement.

BI to supply LSFO in Cartagena

Bunkers International is to offer 1% IFO 380 in Cartagena, Colombia, from July. In collaboration with its joint venture partner, Vanoil, the company is in the final testing stages of an IFO 380 cSt product with a maximum sulphur content of 1% for delivery in the Colombian bunker market.

It says the new product will have viscosity levels in the range of 300-380 cSt, with very low metal contents, and all other parameters well within ISO RMG.380 (2005) “We believe the availability of this product will be of great interest to vessels travelling to Europe from the Caribbean basin,” said John Canal, president of Bunkers International. “Shipowners can obtain the low-sulphur fuel they need to meet emerging regulations and then can do so while receiving the same high-quality service we have become known for. In fact, we also offer a full service and fees inclusive ‘bunkers-only’ call to the Cartagena anchorage that should add to the appeal of this product. We will continue to provide our 1.5% max sulphur 380 cSt for customers not requiring the 1% product.”

AMERICAS New barge for CEPSA

CEPSA Panama’s new barge, Panabunker-Once, began operations on the Atlantic side of the Panama canal in January. The vessel will serve the container terminal at the Port of Manzanillo, all other port terminals along the Atlantic sector and the anchorage area of Port of Cristobal.

The Panabunker-Once is a double-hull barge with a capacity of 4,100 tonnes. Together with the Panabunker-Diez and the PanabunkerUno on the Pacific coast, this brings CEPSA’s capacity at the Panama

World Bunkering Summer 2010

EUROPE New markets boost Aegean sales

Aegean saw a successful 2009, with a net income increase of 21.6% and sales up 19.1% over the course of the year. Total sales volumes for 2009 were 6.2 million tonnes, with EBITDA of $806 million. In addition, the company signed a $154 million credit facility in the final quarter of 2009.

Results for the fourth quarter showed an increase in total revenue

11

of 53.7% over the same period in 2008. Sales volumes were up by 11.4% in this period. This increase was principally due to an improvement in sales volumes in the UAE and Singapore and the expanded logistics infrastructure during the fourth quarter of 2009 compared to the fourth quarter of 2008, Aegean said.

Refuelling tanker launched at Fincantieri

Fincantieri’s shipyard in Muggiano has launched the first of two fleet tankers for the Indian Navy, with delivery scheduled by the end of the year.

The fleet tanker is a supply and logistic support vessel with a displacement at full load of 27,500 tonnes capable of refuelling four vessels at once. It has a maximum speed of 20 knots. A sister vessel is under construction at Fincantieri’s Sestri Ponente (Genoa) shipyard for delivery in late 2011.

INDIAN SUBCONTINENT

business must surely benefit from enhanced linking up of members and interested parties. Charlotte will help us bring people together, in the traditional way, and online, hopefully showing the shipping industry a lead in this area. Exploiting the power of the internet can help the association to grow its membership and expand its sphere of influence.”

Charlotte has six years’ experience in events management and marketing, commencing with working on cruise vessels for the Carnival Group, then working for the Royal Automobile Club, a life sciences company and the University of Southampton, where she helped promote a multi-disciplinary maritime group.

Peninsula opens Norway office

Peninsula Petroleum has opened an office in Tønsberg, Norway.

Led by Bjorn Isaksen, the office handles a portfolio comprising Scandinavian owners and operators of deep sea dry bulk and tanker tonnage plus players in the offshore sector working in the North Sea and the wider international arena. He is assisted by one trader in the Norwegian office.

Orion builds for Karachi

Pakistani-based Orion Bunkers says it is building a bunker barge for the delivery of IFO 380 cSt to at Port Karachi and Port Bin Qasim.

The new vessel will have a capacity of 600-700 tonnes and will be completed in summer 2010. The newbuilding will give Orion a fleet of seven self-propelled barges, which the company says will be the biggest fleet in Pakistan.

In the meantime, Orion says it will supply IFO 180 cst at a lower price than the local price for 380 cSt. The company says its move could boost bunker sales in Pakistan.

ON THE MOVE New event manager for IBIA

IBIA has appointed a new event manager with a specific brief to strengthen its outreach on social networks and e-platforms and improve communication with members.

Charlotte Egan joined IBIA’s Southamptonbased team at the end of April.

Charlotte says: “My first and most important role will be to build on the success of IBIA’s Charlotte Egan, Event Manager, IBIA two flagship events, its annual Convention and Dinner. I’m also tasked to ensure that IBIA is properly represented at all bunker industry events. My job will be to put in place the tools which will help members interact more easily and the association to interact more easily with other shipping industry and political stakeholders.”

Ian Adams says: “We welcome Charlotte to IBIA. Her experience will help us build on the successful association and the events we already have, and to further strengthen that by using new media and networking. So far, shipping has not embraced social networking as much as other industries, but a global association in a global

World Bunkering Summer 2010

Holloway moves to GAC

Dubai-based Global Agency Company, GAC, has appointed industry veteran Colin Holloway to head its bunker operations in the Middle East Gulf. Most recently he has been DNV Petroleum Services’ regional manager, Middle East & East Africa based in Fujairah.

Anthony Mollet, general manager of GAC Bunker Fuels, says: “We are looking forward to working with Colin and his team to further enhance GAC’s long-standing relationships with suppliers and customers across the Middle East and Indian Subcontinent.”

He adds: “GAC’s expertise and focus on the wide range of shipping sectors operating in the Gulf and Indian Ocean ensures personalised customer care for all bunker enquiries. And with Colin joining the team, planned growth and diversification of GAC Bunker Fuels’ services will be further developed within its strongest region.”

KPI expands London trading team

KPI Bridge Oil has appointed Guillermo Sanchez as bunker trader in its London office. He previously worked in KPI’s operations department. Andreas Johansen has been taken on as a bunker trader trainee.

Wilhelmsen moves broking team

Wilhelmsen Ships Service in the UK has incorporated its wholly owned subsidiary Wilhelmsen Premier Marine Fuels (WPMF) into its main operating centre in Dartford, London.

The company claims the move “further enhances the company’s ability to serve customers and deliver additional cost efficiencies”. It adds that the move of the London brokerage office to Wilhelmsen Ships Service’s premises represents a greater consolidation of the broad range of ships agency and bunker services that Wilhelmsen Ships Service offers to its customers from the London location.

UBT on the move

Singapore-based trader United Bunkering & Trading (Asia) has moved to new, larger premises as part of a move, it says, to intensify its business in the Asia Pacific Region.

UBT’s second office in Hong Kong has strengthened its physical supply capabilities in the region recently and the company says it intends to further increase delivered volume by another 30%.

UBT’s new Singapore head office is at 8 Shenton Way, on the 49th floor, and its new address is: 8 Shenton Way, #49-01 Singapore 068811.

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REPORTS

Chief Executive’s Report Board Elections

Annual Dinner

On 15 February IBIA held its Annual General Meeting (AGM). One of the items on the agenda was the appointment of members of the Board. This year was the first election under the new governance structure and attracted a great deal of interest.

Originally there were nine applications for the three vacancies. After the deliberations of the Board Development Committee, the number reduced to four. Another first for IBIA was the appointment of the Electoral Reform Service to conduct the elections; this meant that the ballot was conducted through a secure website with all members being issued with a log-in so as to cast their vote. As always, we have a very good participation rate in IBIA elections and this year it proved, yet again, to be the case. The following candidates were duly elected: Simon Neo, Equatorial Marine Fuels; Dilip Mody, Global Fuels and Lubricants; and Jens Maul Jorgensen, Oldendorff Carriers. The new Board met in April, the first meeting under the Chairmanship of Mike Ball, Gearbulk UK Ltd, with 100% participation, which bodes well for the future. That meeting also saw the election of Bob Lintott to the position of Vice Chairman. Under the new structure he will assume the Chairmanship next April.

Nigel Draffin also accepted the nomination to Honorary Treasurer for his second year, a role that is greatly appreciated by the Board as a whole and me in particular.

This year’s Annual Dinner was, once more, a great success. Given the economic situation which we experienced last year we were understandably concerned that we may have had a smaller attendance. However, as reported in the last issue of World Bunkering these fears were unfounded. We actually had a new record for attendance with 798 guests at the event. This really is the limit for the Hilton on Park Lane. We have managed to use various ways to increase the numbers that can attend but now we have exhausted all options! We are considering alternative venues but as the waiting list was fully satisfied this may be unnecessary.

Please see the photos later in this edition.

The feedback from the Dinner has been extremely positive and we look forward to next year’s event.

World Bunkering Summer 2010

Ian Adams Tel: +44(0) 23 8022 6555 Fax: +44(0) 23 8022 1777

noted the feedback which we received following Singapore and has tried to develop a programme which will satisfy as many people as possible. It is not too late to have an input so if you have any particular topic or format you would particularly like to see, please let us know.

IBIA Staff

As mentioned above IBIA has experienced a change in personnel. Anne Chambers, who many of you have met either at the Dinner or at various conferences around the world, has decided to leave IBIA in order to pursue other opportunities. As a result we now have a new Event Manager, Charlotte Egan. Charlotte joins us with a wealth of experience in running events and I am sure our bunker community will welcome her as they do all newcomers.

Annual Convention

New Publications

Preparation for the Annual Convention is now well in hand, despite the change in personnel (see below). The choice this year of Stamford, Connecticut seems to be a popular decision and we would like to thank all the companies who have come forward as sponsors. We are extremely proud to announce that Petrobras have agreed to be our Platinum Sponsor again this year. For details of all the other sponsors please see page 26. The programme is being worked on so please keep an eye on the website www.ibia.net to keep informed of the developments. The Conference Committee has

With this edition of World Bunkering every member will receive a revised copy of “Evaluate the Merits of a Bunker Claim” and “The IBIA Glossary of Bunker and Lubricating Oil Terminology”. I would like to thank Chris Fisher for the revision of “Evaluate” and the members of the IBIA Board for their help with the Glossary. I hope our members find them useful. If for any reason you do not receive these additional publications, please contact the Secretariat at ibia@ibia.net .

Ian Adams

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REPORTS

IBIA Noticeboard Benefits to members as at 1 May 2010 THE IBIA COURSES

IBIA Guide to Bunker Samplers

IBIA Annual Report

Sale price to non-members £50.

The 2008/2009 report is now available. All members will have already received their copy. The report is available free of charge to members and non-members. Please ask IBIA administration for a copy.

One-Day Basic Bunkering Course

The charge for the Basic Bunkering Course is £200 per head for members and £300 for non-members.

Advanced Courses

These courses are intended for those who already have at least one year’s experience in the bunker industry. £425 per head for members and £625 for non-members.

IBIA Guide to Arbitration

A loose-leaf book giving arbitration procedures in 13 countries, written by lawyers.

This is now available free to IBIA members.

Non-members may purchase at a price of £50 + postage.

Vanadium and Sulphur in Marine Fuels

What everyone should know about these two important elements in marine fuel bunkers. For sale to non-members at £35.

IBIA PUBLICATIONS Evaluate the Merits of a Bunker Claim IBIA World Bunkering magazine – Free copies for members of IBIA

Please note non-members are requested to subscribe to the magazine at a cost of Pounds Sterling £45, £60 or £80 depending on location.

Up to 20 additional free copies of the magazine are offered to buyer members of IBIA for forwarding to their vessels.

IBIA World Bunkering magazine – Discounts on Advertising

Discounted advertising rates are available for IBIA members.

Please contact the Advertising Sales Team on + 44 (0) 20 7386 6262 (London office) or +30 210 338 9898 (Athens office).

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 which are in daily use in the bunkering industry. For sale to nonmembers at £45.

IBIA Guide to Good Commercial Practice

On sale to non-members at £50 per copy.

BOOK OFFERS

Informa Group is offering IBIA members a discount of 10% on the following publication. Please order, adding your IBIA Membership number, from Customer Services at Informa Group, Tel +44 (0)1206 772 223, Fax +44 (0)1206 772 771, E-mail: professional.enquiries@informa.com The BunkerNews Directory of International Bunker Suppliers, Traders and Brokers Recommended Retail Price £85

The publishers say: “Firmly established as the main source of bunker industry contact information, containing more than 800 companies, 2,000 personnel in 75 countries, all cross-referenced by two indices. First published in May 1993, the ‘Little Black Book’ is published every May and November.’’

IBIA Fuel and Lube Oil Training CD

This CD is available on request. Members – please contact administration for your free copy/copies.

IBIA Logo

Free bromide supplied for use by Corporate Members only.

IBIA List of Members

If your details are not correct then please let the IBIA Administration know. This publication is only available to members.

IBIA Guide to Avoiding and Resolving Bunker Disputes

IBIA Safety Cards for Vessel’s 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.

IBIA members receive their personal copy free, but the report is offered for sale to non-members at £50.

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80 Marine Parade Road, #13-05/06 Parkway Parade, Singapore 449269 Tel: +65 6344 1108 Fax: +65 6344 1128 Website: www.searights.com.sg Email: bunkers@searights.com.sg / operations@searights.com.sg

By Courtesy of PSA SINGAPORE TERMINALS

REPORTS

New members Corporate

PLATTS William Bathurst SERVICES 20 Canada Square Canary Wharf London E14 5LH UK Tel: +44 20 7176 6111 Fax: +4420 7176 6144 E-mail: william_bathurst@platts.com HINDUSTAN PETROLEUM CORPORATION LTD Sanjay Kumar BUNKER SUPPLIER Direct Sales - I & C Dept R & C Building, 4th Floor Sir J J Road Byculla 400 008 INDIA Tel: +91 022 2378 9223 Fax: +9122 2374 0227 E-mail: sanjayk@hpcl.co.in PUMANGOL ENERGY BUNKERING L.L.C Sissi Quach BUNKER SUPPLIER 59 Rua Comandante N’Zagi Alvalade Luanda - REPUBLIC OF ANGOLA Tel: +412 2592 3716 Fax: +412 2594 6901 E-mail: sissi.quach@puma-energy.com BUNKER INDEX Carlos Nunez SERVICES PO Box 246 106 New Court Way Ormskirk Lancashire L39 1WL UK Tel: +4416 9557 1540 Fax: +4416 9566 4330 E-mail: sales@bunkerindex.com

World Bunkering Summer 2010

PAKISTAN BUNKER COUNCIL Yousef Muhammad SUPPLIER Ground Floor Al Rehman Trade Avenue Istimber Pond, Keamari Karachi PAKISTAN Tel: +92 3285 8055 Fax: +92 3285 8057 E-mail: orionkhi@cyber.net.pk

ST SHIPPING & TRANSPORT PTE LTD Peter Grunwaldt BUNKER BROKER 50 Berkeley Street Mayfair London W1J 8HD UK Tel: +44 20 7412 3289 Fax: +4420 7412 3222 E-mail: bunkers@stshipping.com CONTINENTAL PLATFORM PTE LTD Patrick Tan BUNKER TRADER Number 6 Eu Tong Sen Street #12-04 The Central 59817 SINGAPORE Tel: +65 6225 9800 Fax: +65 6225 8900 E-mail: commercial@conti-platform.com TRABAJOS MARÍTIMOS S.A. Ricardo E De la Puente BUNKER BROKER Av. Saenz Peña 177 Callao Callao-01 PERU Tel: +51 1413 0400 Fax: +51 1465 9309 E-mail: rdelapuente@tramarsa.com.pe

SPECIALITY FUELS BUNKERING F Javier Brito BUNKER SUPPLIER 452D Government Street Mobile 36602 USA Tel: +25 1694 7795 Fax: +25 1694 7794 E-mail: javier@specialtyfuelsbunkering.com

Corporate ADDITIONAL

SINGAPORE PETROLEUM CO. LTD (SPC) Peter Ng BUNKER SUPPLIER 250 North Bridge Road #24-00 Raffles City Tower Asia 179101 SINGAPORE Tel: +65 6411 7511 Fax: +65 6411 7528 E-mail: peter.ng@chinaoil.com.cn MATRIX KEPU BUNKERS (PTY) LTD Roy Meeser BUNKER SUPPLIER 17 Victoria Junction Green Point Cape Town 8001 SOUTH AFRICA Tel: +2721 440 5340 Fax: +272 1440 5356 E-mail: roy.meeser@matrixkepu.com ASAMAR INC Nicholas Fuca BUNKER TRADER 1099 Wall Street West Suite 138 Lyndhurst New Jersey 7071 USA Tel: +20 1372 1790 Fax: +20 1372 1761 E-mail: asamar@asamar.com

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individual

Yasser M. Atiyah BUNKER SUPPLIER TRANSHIP PO Box 7522 Jeddah 21472 SAUDI ARABIA Tel: +966 2642 4255 Fax: +966 2643 2821 E-mail: bunker@tranship.com Paul Holland BUYER GARDLINE GEOSURVEY LTD Endeavour House Admiralty Road Great Yarmouth NR30 3NG UK Tel: +44 14 9384 5654 E-mail: paul.holland@gardline.com

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Brian Polarek SUPPLIER GULSBY PACKAGING 1500 E Brond Street Mansfield TX 76063 USA Tel: +181 7477 2943 Fax: +186 6611 7753 E-mail: bpolarek@gulsbypackaging.com Peter Proscia SUPPLIER PLAZA MARINE INC. 370 W. Pleasantview Avenue #341 Hackensack NJ 7601 USA Tel: +180 0682 3835 E-mail: pmp@plazamarinefuel.com Raymond Brigley SERVICE OILTEST MARINE SERVICES 67 Walnut Ave Suite 107 Clark New Jersey USA 7066 USA Tel: +173 2396 0565 E-mail: rbrigley@oiltest.com

Francisco Carreira-Pitti SERVICE CARREIRA PITTI ATTORNEYS 55th Street, No. 225 Carpit Building Panama City PANAMA 6-10100 PANAMA Tel: +50 7269 2444 Fax: 50 7263 8290 E-mail: paco@carreirapitti.com Alphonsius Van Den Donk BUNKER SUPPLIER OCEAN ENERGY BELGIUM BVBA Noorderlaan 111 Antwerpen 2030 BELGIUM Tel: +324 7395 7873 E-mail: fons@oceanenergy.be Mike Trathen BUNKER BROKER ISIS MARINE FUELS LTD 2 Kempton Close Thundersley Essex SS7 3SG UK Tel: +4412 6877 7117 Fax: +44 1702 680 077 E-mail: bunkers@isismarinefuels.com

World Bunkering Summer 2010

REPORTS

IBIA Dinner

IBIA Chairman – Mike Ball

Main Sponsor – Akron

Chairman and guests

World Bunkering Summer 2010

Chairman’s table

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BGK BUNKERS COVERS ALL NORTH PERSIAN GULF WITH NEW LOCATIONS Iraq

• Asaluyeh • Bandar Imam Khomeini • Mahshahr • Bandar Abbas • Larak B BGK Bunkers is now adding tthree new bunkering locations sserving the ports of Asaluyeh, Bandar Imam Khomeini (BIK) B aand Mahshahr at the north end of the Persian Gulf, providing a convenient service for vessels calling these ports.

Bandar-e Mahshahr Bandar Imam Khomeini

Kuwait

Iran

Persian Gulf Bandar Asaluyeh Bandar Abbas Jazireh-ye Hormuz

Strait of Hormuz

Jazireh-ye Larak

Saudi Arabia United Arab Emirates

Oman

sales@bgk-bunkers.com • www.bgk-bunkers.com

These new locations complement the company’s existing services at Bandar Abbas and near Hormuz & Larak islands in the Straits of Hormuz.

Thanks to the company’s direct access to the Bandar Abbas refinery and dedicated physical resources BGK Bunkers can offer best in class service and excellent product at very competitive prices - probably the best in the Middle East.

REPORTS

IBIA Dinner Menu Sponsor – BP Marine Ltd

IBIA Dinner Invitation Sponsor – Addax Bunkering Service

IBIA Dinner Guest List Sponsor – Aegean Marine Petroleum

World Bunkering Summer 2010

23

REPORTS

Champagne Reception Sponsor – FAL

24

World Bunkering Summer 2010

REPORTS

MARINE FUELS IN UAE

World Bunkering Summer 2010

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20-24 September 2010 The IBIA Annual Convention – Stamford, Connecticut, USA “EVERYTHING YOU WANTED TO KNOW ABOUT BUNKERS (but were afraid to ask?)…..”

Platinum Sponsor

THE CONvention: ➠➠ Topical convention programme featuring global and local issues ➠➠ Superb networking opportunities ➠➠ Located at the heart of the US East Coast Shipping ➠➠ An opportunity to influence IBIA activities

WHY YOU SHOULD ATTEND: ➠➠ An event by The Bunker Industry for The Bunker Industry

Silver Sponsor

➠➠ Support the Industry Association ➠➠ Make your views heard ➠➠ Meet fellow members of the Association ➠➠ If you are interested in the bunker industry this is the convention for you!

THE VENUE ➠➠ The Stamford Marriott Hotel Connecticut offers a fantastic venue for this years Convention. The hotel is easily reached from New York’s airports.

BENEFITS ➠➠ Update your industry knowledge ➠➠ Renew old contacts and make new ones ➠➠ Focused IBIA training workshops ➠➠ Benefit from IBIA Member rates ➠➠ Non-member rates available

Further information and online registration is available at www.ibia.net Alternatively you can register via the adjacent registration form and fax to +44 (0)23 8022 1777.

If you are interested in sponsorship or exhibition opportunities ➠ for this fantastic event, please contact Charlotte Egan: Email: charlotte.egan@ibia.net Tel: +44 (0)23 8022 6555 Fax: +44 (0)23 8022 1777

Stamford Marriott Hotel, Connecticut, USA

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Bunkering a division of

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20-24 September 2010

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Member Rate: £750 ($1125) • Non-Member Rate: £1000 ($1500)

REPORTS

The International Bunker Industry Association Ltd panies and associations with an interest in bunkering, whether they are involved in the day-to-day business of bunkering ships or have an interest in the industry.

Each member has one vote in association business, but corporate membership has the advantage of allowing companies to delegate different members of their company to participate in different working groups.

• Corporate sponsor: this is the newest category and allows a company to contribute any sum they see fit to the association. In return they receive the same benefits as a corporate member but in addition have their logo printed on all IBIA publications and are offered further sponsorship opportunities ahead of other members.

• Implement the running of IBIA’s two-day

In the beginning

The board

Environmental

Eight members of the industry conceived the International Bunker Industry in October 1992, and the association was formally registered on 29 January 1993. Since then it has expanded steadily with a worldwide membership comprising shipowners, charterers, bunker suppliers, traders, brokers, barging companies, storage companies, surveyors, port authorities, credit reporting companies, lawyers, P&I Clubs, equipment manufacturers, shipping journalists and marine consultants.

In 2008, our membership stands at over 500 and is spread over 67 countries.

There are three categories of membership, namely: • Individual membership: open to all people with an interest in bunkering, whether they are involved in the day-today business of bunkering ships or have an interest in the industry. Each member has one vote in association business, but this category does not allow delegation.

• Corporate membership: open to com-

The board is constrained to have a balance of members from each sector of the industry in order to preserve the industry-wide representation and approach of the association.

The board regulates the association and is elected by the membership to perform that role.

• Discuss IBIA approach to EC initiatives; • Develop environmental policy.

The Aims of the Association • To provide an international forum to

• •

•

•

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address the concerns of all sectors of the bunker industry; To improve and clarify industry practices and documentation; To represent the industry in discussion with relevant governmental and nongovernmental bodies and to make the concerns of the industry known to such bodies; To assist members in the event of disputes by identifying the options and exploring the alternatives open to them and eventually to provide a panel of experienced mediators and arbitrators; To increase the professional understanding and competence of those working in the industry.

The working groups

Because IBIA is an association dedicated to its membership, it must reflect members’ wishes and react to their needs. In the past this has been achieved by the formation of Working Groups. These groups reported back via IBIA’s official magazine, World Bunkering, or through special circulars where appropriate. There were six Working Groups, as listed below, with the issues that they each addressed.

Education • Run further IBIA Basic Bunkering courses

Intermediate Bunkering courses; • Run further IBIA half day Ships Agents

courses.

Safety • Investigate the issue of Safe Access; • Produce a best practice for pre-delivery

checklists.

Operational Standards and Procedures • Looking at turning ISO(TR)13739 into a

bunkering procedure.

Technical • Continue to provide answers to technical

enquiries from members; • Report on the latest technical issues to

the members.

Commercial Working Group • Has been responsible for the production

of the IBIA Guide to Good Commercial Practice; • Cooperated with BIMCO on the Standard Bunker Contract.

Task Forces

IBIA now operates a Task Force system.

When an issue is identified as requiring attention a Task Force is formed, the issue investigated, and upon completion the Task Force is disbanded.

Issues that have been tackled by Task Forces to date are: • Sales Tax • SIBCON/IBIA Golf Tournament • IBIA Convention 2007 • IBIA Seminar – Cruise & Ferry 2007

worldwide;

World Bunkering Summer 2010

Membership application

PLEASE PRINT VERY CLEARLY Applicants must fill out all appropriate sections including method of payment.

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Tel: +44 (0) 2380 226555 Fax: +44 (0) 2380 221777.

World Bunkering Summer 2010

29

INTERVIEW

Reaching out to the industry

Mike Ball

World Bunkering talks to Mike Ball, the new chairman of IBIA

I

n the 38 years since he first went to sea, Mike Ball has seen the bunker industry from just about every angle it is possible to see it.

After working as an engineering officer with Esso, he joined Esso Europe’s London office as an operations manager – a task which included buying bunkers for the company’s chemical tanker fleet.

Still with Esso, he was briefly responsible for the production of bitumen at Fawley refinery, before joining Clarkson as a bunker broker.

When Clarkson sold its bunkering division to OceanConnect, he stayed on with OceanConnect to establish the product, before leaving the broking world to become a trader with Peninsula Petroleum – at the time, a small company with only four employees. In April 2008, he made the move back to the purchasing side, becoming bunker manager for Gearbulk – full circle. The fleet purchased just under 1 million tonnes in 2009 on over 1,000 orders.

As a buyer, it is definitely an advantage to have had some experience on the other side, Mike says. “Nobody knows it all, but it is very helpful to have a knowledge of the practical issues. Many shipowners still think bunker barges are like buses – they don’t realise, for example, that you have to book a barge seven days in advance in Rotterdam. I hope my experience makes me a more reasoned buyer.

Having been on the receiving end of claims, I know the full repercussions of making them.”

In addition, he says, he has a feel for where prices are going, and for the people he is dealing with: “I’ve spent 20 years doing my research!”

Improving communications

Over the course of Mike’s career, the greatest change has been the communications revolution. “These days, there is so much information openly available that there is nowhere for a dodgy supplier to

30

hide – the whole industry has become much more professional,” he says.

Better communications have also changed, and to a certain extent eroded, the role of the broker. “A broker was there to help a shipowner make good contacts. For a broker, it was very much a case of speaking to people face to face and meeting clients at the pub at lunchtime. In some ways, that made things more trustworthy because you knew the individuals you were dealing with, whereas nowadays, you have to rely on the details of the contract.

“Today, any medium-to-large shipowner can make the contact themselves if they want to, so the brokers’ role has become much harder.”

At the same time, the type and the scope of information available to brokers and owners alike has expanded exponentially. When Ball started at Clarkson, the bunker market report covered just seven ports, and Platt’s bunker report was issued just once a week. Today, the stream of pricing information is constant, with many more variables affecting it. This inevitably leads to more challenges in assimilating and interpreting that information – and perhaps it is here that the future of the broker lies.

Increasing professionalism

One result of the increasing openness and availability of information in the bunkering business has been an increasing professionalism.

However, this professionalism is not always appreciable to those outside the industry, who still have a tendency to treat bunkers as a commodity. “People are aware of the value and the cost of bunkers – but if they can fix a charter in any way, they will, and worry about the bunkers later,” Mike says.

“Bunkering is still regarded as the last thing in the world that [the

World Bunkering Summer 2010

shipping industry] needs to talk about. Nothing could be further from the truth.” This is why it is vital that IBIA develop its own qualifications. “It is important to provide a symbol for the outside world that says ‘this is a properly regulated profession’.” In some ways, the qualification is a status symbol, he says, demonstrating that there is a global standard that is applicable to everybody. Putting the qualification together is “taking much longer than we would like, but we will get there.”

The availability of good education and recognised qualifications is also particularly important because of the increasing number of people who come to bunkering from different backgrounds.

“There is a danger that people with a purely commercial background may be interested in ‘the deal’, rather than everything that goes behind it. Some traders have set a great example in the way they send people on courses to give them more background about how the bunker industry works,” he explains. “You don’t have to go to sea to have general knowledge about the bunker industry – although it can help when you have a serious problem. There is new technology coming in day to day that fresh minds can make the most of – but with the caveat that there needs to be solid market knowledge behind that.”

A buyer’s place?

As a bunker buyer, Mike is in the minority in IBIA, whose membership tends to be dominated by the supply side – although past chairmen have included several members from the buying side. Mike says this is somewhat disappointing, and it is an area where he hopes to see considerable growth. “We haven’t really sold IBIA properly to the buying side, although lots of our publications benefit buyers as much or more than the sellers.

“Owners have a plethora of organisations there for them already, so IBIA is not really on their radar. Smaller organisations can often be faster on their feet and more proactive. Personally, I think that as more and more owners begin to realise the significance of bunkers, and employ specialist bunker buyers, the more they will become

aware of IBIA and the need to be involved. At the moment, it’s something of a chicken and egg situation.”

There is still some friction between buyers and sellers, Mike says, as a result of historical mistrust between the two. He believes that IBIA has a great role, if it can do it, in breaking down that cynicism.

Nevertheless, it does come with some challenges: “We are all in the same industry, so the same problems apply to all of us, even if buyers and sellers are looking at those problems from different angles.

Having both buyers and sellers in the organisation does mean that sometimes we do not take a position because to do so would disaffect 50% of the membership. We need to overcome that.”

Reaching the membership

In addition to expanding the membership of IBIA, Mike is keen to ensure that the membership is aware of what IBIA can do for them – and how they can communicate with it. “One thing IBIA has done extremely well is that it has made its way into representing the industry in various political organisations and forums. We are a legitimate organisation with real impact. Despite that, many members still see us primarily as the organisers of a Monday night bash every February.

People come to us and complain that they’ve had legislation and regulations foisted on them without consultation. Often, IBIA was there, but the message has not got through that people can come to us with their concerns before the event. The problem is ensuring that people have access to us, and that they use that access. Maybe we do need more face to face contact. Perhaps I should pick up the phone to every single member and say: “Hi, I’m Mike, how can I help?” I want to get that dialogue between IBIA and its members going. IBIA has come on in leaps and bounds and the administration have done a fantastic job, but know I want to change tack slightly, and make sure that there is a focus on our members.”

Above all, he says: “I want to be seen as approachable. I can’t solve everyone’s problems, but I need to know about them – and that means sellers, traders, surveyors, buyers; everyone.”

Mike Ball at the sharp end of the bunker industry

World Bunkering Summer 2010

31

environment

MEPC stalls on CO2

But innovations galore as shipping industry responds to calls for action on greenhouse gases

T

he March meeting of IMO’s Marine Environment Protection Committee (MEPC) made little headway against entrenched positions on greenhouse gases (GHGs). An IMO statement, or possibly understatement, issued afterwards conceded that “more work needs to be done” before it can complete its consideration of the proposed mandatory application of technical and operational measures designed to regulate and reduce emissions of GHGs from international shipping”.

While MEPC was unable to make significant progress, a raft of new designs, initiatives, concepts and products has emerged from the industry in response to the perceived need to cut GHG, and specifically carbon dioxide (CO2) emissions.

Slow steaming at IMO

Faced with major disagreements between opposing groups of administrations, the MEPC decided to set up a Working Group “to build on the significant progress that had been made during the meeting on technical and operational measures to increase the energy efficiency of ships”. The Working Group will report back to the Committee’s next session (MEPC 61) in September 2010.

The meeting was able to prepare draft text on mandatory requirements for the Energy Efficiency Design Index (EEDI) for new vessels and on the Ship Energy Efficiency Management Plan (SEEMP) for all ships in operation, but there were still many unresolved details left to sort out.

Ferry industry association Interferry says concern over the impact of IMO’s proposed Energy Efficiency Design Index (EEDI) on ro-ro cargo vessels has prompted its involvement in three submissions to MEPC. Interferry says that current proposals need refinement so that ro-ro vessels are not unfairly penalised for the specific power arrangements required in short sea as opposed to deep sea operations.

32

In the event, MEPC agreed on the basic concept that a vessel’s attained EEDI shall be equal or less (ie more efficient) than the required EEDI, and that the required EEDI shall be drawn up based on EEDI baselines and reduction rates yet to be agreed. There appears to be some some way still to go even to get agreement on the technical issue of EEDI. As widely expected, little progress at all was made on socalled “market-based measures”. Shipping interests are broadly split between support for a levy or a trading system while many developing countries believe the Kyoto principle of “common but differentiated responsibility” should be applied.

The Committee agreed to establish an Expert Group on the subject to undertake a feasibility study and impact assessment of the various proposals submitted for a market-based instrument for international maritime transport – again, reporting back to MEPC 61.

New containership concept

Meanwhile, in late March and early April, company after company announced new projects aimed at improving fuel efficiency, and cutting GHGs. Among them, Norwegian classification society Det Norske Veritas launched its new Quantum containership concept. DNV says the new design is based on both technical and market research by AXS Aplhaliner and Dynamar, and innovation, and is designed to transport more cargo while using less fuel and with a reduced environmental impact. Deciding on what it describes as a “baby post-panamax design”, DNV says Alphaliner concluded in its market research: “Ships in the 5,500 TEU region may become the new workhorse of this industry.”

DNV president Tor Svensen, says that for the future of the shipping industry in general and the containership segment in particular, uncertainties will remain a challenge while flexibility will be a key to success.

World Bunkering Summer 2010

The new containership concept is designed to meet the perceived market needs. It has a design speed of 21 knots, but can operate efficiently at speeds between less than 10 knots and more than 22 knots. A beam of 42.5 metres gives it good stability while its novel 49.0-metre Widedeck design increases its container capacity. Among many innovations, the need for ballast water is minimised and LNG is introduced as part of the ship’s fuel.

Mr Svensen says: “Even if it would be possible to realise the Quantum within three to five years, this is a concept ship designed to stir up a debate about shipping innovation. All the aspects of the concept design are unlikely to appear in a single ship, but certain aspects will be taken further on a case by case basis. I am convinced of this,” says the president and chief operating officer of DNV. He refers to the automotive industry, which has long traditions of introducing new concepts as a lodestar for the future development of new cars.

He adds: “We all know that the shipping industry is facing tough times. But now is the time for innovation and a focus on new solutions. DNV has a strong technical and financial platform. This platform is to be used to solve problems we all are facing, especially the environmental challenges.”

MOL continues concept theories

At about the same time, Mitsui OSK Lines (MOL) revealed the concept for the third in its series of next-generation vessels, which it says will be technically practical in the near future and will cut CO2 emissions by 30% by increasing fuel efficiency. The latest design, the ISHIN-III , is for an environment-friendly, very large iron ore carrier that, MOL says, will play a key role in future resource transport.

MOL already operates the VLOC Brasil Maru which was named the Ship of the Year 2007 by The Japan Society of Naval Architects and Ocean Engineers for its energy-saving and safety features and high technical performance. The ISHIN-III design develops the characteristics of the Brasil Maru class.

Although the new design incorporates a large number of innovations, the most important are the use of waste heat recovery for propulsion and a new design of turbocharger which is highly efficient even at low revolutions. The waste heat energy recovery system enables a large amount of heat energy to be recovered from the large main engine’s exhaust gas, converted to electricity and used to provide additional propulsion power.

MOL is also looking at a variant of the ISHIN-III, the Wind Challenger Project, which uses wind power to reduce emissions by 50%.

In a separate project, MOL says that, together with Akasaka Diesels, it has developed a diesel particulate filter (DPF) for vessels using marine heavy fuel oil which addresses what is increasingly being seen as a major area of concern: particulate matter (PM) in ships’ emissions. According to MOL, tests showed that the device removed more than 80% of PM from diesel emissions. A DPF was installed on the main engine of an MOL Group-operated coastal ferry, the Sunflower Kogane. MOL says: “This test marked the first successful use of a self-regenerating DPF on a large vessel using marine heavy fuel oil.” The 9,710 gt, 9,267 kw Sunflower Kogane is operated by MOL subsidiary Diamond Ferry Co. The DPF includes filters made of silicon carbide ceramic fibres, which remove PM from the exhaust. An internal heating system automatically burns off accumulated PM in the filter to eliminate clogging. This is said to eliminate the need for cleaning by crew and allows the filter to be used continuously.

World Bunkering Summer 2010

A trim solution

Finnish company Eniram Marine is tackling the problem from, literally, a different angle and has come up with a system that helps officers optimise the vessel trim at all times, minimising water resistance, decreasing fuel consumption, and reducing emissions. And it has clinched a deal with Royal Caribbean Cruises to deploy the Eniram Dynamic Trimming Assistant (DTA) on a total of six Royal Caribbean vessels, including Oasis of the Seas, the world’s largest and most innovative cruise ship.

Eniram says that by bringing real-time data of the vessel attitude to ship’s officers in an easy-to-read graphic form, DTA facilitates faster and better informed decision-making and allows timely action in changing circumstances. The contract follows a demonstration on Royal Caribbean’s Liberty of the Seas.

Cavitation concept tested

In late March, Swedish shipping group Stena rolled out a large vessel model as part of a SwKr50m ($6.9m) research project into the “air cushion” concept, intended to reduce fuel consumption and emissions of large tankers.

The 15-metre prototype craft Stena Airmax is being used to investigate to what extent the air cushion reduces the friction between the hull and the water, thus also reducing fuel consumption and emissions of large tankers in the future. Following the “very good results” achieved in tests with small ship models, Stena Teknik says it has developed the 25-tonne model to undergo the same tests .

“The results of the tests carried out are very promising. Depending on the type of ship and speed, we expect energy savings of 20-30%.

This will now be verified in tests with the newly built prototype Stena Airmax,” said Stena Bulk’s president and CEO Ulf Ryder.

Yet another product intended to save fuel, and thus cut emissions, is Green Star’s Diesel Fuel Energizer (DFE) added to fuel tanks.

US-based Green Star says it has results from trials carried out on an unidentified Greek cruise ship. It says tests were performed on two Caterpillar Ship Engines Model 3412 (rated at 720 H.P. each) and also on two Caterpillar Generator Sets Model 3306 (rated 240 H.P. each). The company says fuel consumption was cut by an average of 12%, and smoke emissions decreased to a point where smoke was no longer visible. Also noted was a reduction of engine noise and increased power and performance. Trials on more vessels have been scheduled.

And then of course there is Ecospec’s CSNOx system that could, almost, provide the silver bullet as far as dealing with both NOX and SOX and also a high proportion of CO2 emissions from ships. Company spokesperson Tany Tay told World Bunkering that the company hoped type approval could be completed by June. She said: “In the IMO type approval process, it is required to conduct tests at various gas loads from low to high. Each gas load point test needs to be performed at a steady condition and as such, the duration of each test usually takes more than one day. So far we have completed the first load point test at 50% gas load. For the subsequent tests, we need to obtain the exact sea route from the shipowner for logistics planning etc.”

Ecospec installed the system on board aframax tanker White Star, owned and operated by Tanker Pacific, in December 2009, with the first tests taking place in January this year. Tests were carried out over three cycles to ensure repeatability, and were verified by ABS and Singapore MPA. In the first load point verifications, at 50% gas load (equivalent to approximately 5 MW engine output), ABS confirmed the system removed 77% of CO2, 99% of SO2, and 66% of NOX. While type approval has yet to be achieved, the Singapore-based company says it is in advanced negotiations with a number of shipping companies which plan to install the CSNOx scrubbing system.

33

testing

Testing

A round-up of news from the testing sector

DNVPS warn on distillate standards

DNVPS managing director, Tore Morten Wetterhusen, has warned that shipowners should be aware of the potential risks involved in switching from HFO to ultra-low sulphur distillate. According to what he described as an ‘unscientific survey’ of 65 respondents concerning the introduction of 0.1% sulphur fuel in EU ports, he said 15% of respondents reported filter choking and fuel pump seizure during fuel changeover. Despite this, one-third of respondents to the survey did not regularly test their distillate fuels.

Charlotte Rojgaard, technical adviser at DNVPS fuels, said that experiences of using MGO in large slow engines is still very limited, and that owners should be aware of potential issues, particularly with regard to viscosity.

WIth regard to low-sulphur fuel more generally, she said that making low-sulphur heavy fuel oil calls for new technologies as refineries are generally not set up for it – as a result, low-sulphur heavy fuel oil is generally the result of blending. This inevitably starts affecting other parameters, including density and flashpoint. One particular problem is that as sulphur content falls, problems with abrasives rise. Moreover, fuel contamination is an increasing trend that owners need to be aware of.

That said, she concluded, most fuel can be used, provided the operator is aware of what is in the fuel and the appropriate methods for dealing with it.

H2S regulations to change

The regulations surrounding permitted H²S content in marine fuel are changing. The working group reviewing the ISO 8217 marine fuel specification has proposed that the revised standard should specify a maximum 2.00 parts per million (ppm mg/kg) of H²S in marine bunker fuel.

Testing marine fuel for H²S content is critical to protecting the health of seafarers and port workers, and in maintaining the quality of the marine environment. H²S is known to accumulate in the headspaces of storage tanks and marine fuel bunker tanks.

34

The key issue is to measure the potential that a fuel could have to release H²S over a period of time under conditions when that fuel is transferred, heated or agitated by the rolling action of the ship.

However, existing tests, including test method IP 399, may not detect low levels of H²S or fully evaluate whether H2S might be released from the fuel during onboard storage and handling.

As a result, the IP 399 test method is currently under review and the marine fuels industry has adopted a new improved analytical process, IP 570, suitable for field analysis and compliance with the revised ISO 8217 marine fuel specifications.

The improved accuracy of the IP 570 test is due to its measurement of H2S in the ‘liquid phase’ rather than in the ‘vapour phase’.

The test improves laboratory testing efficiency and typically reports a more precise ppm level of H²S in minutes rather than hours.

SetaAnalytics has developed an onboard H²S analyser that it says will enable users of marine bunker fuel to meet the revised ISO 8217 fuel specification, typically reporting a more precise ppm level of H²S in minutes rather than hours.

The H²S analyser is the result of support for a new testing process from a number of industry stakeholders, including bunker fuel testing specialist Lloyd’s Register FOBAS and a group of major international oil companies.

In addition to bunker fuel blends, it also has the capability to measure H²S in heating oil, gas oil, diesel, distillate marine fuel and kerosene, including aviation fuel. Sample analysis is fully automatic and results are stored to memory at the end of the test. The analyser software automatically detects leaks in the system and produces error codes and alerts if sample/test analysis is void.

Real-time bunker analysis

Danish technology company NanoNord A/S has developed an in-line automated oil analyser, which offers continuous monitoring of fuel and lubricant quality, says Nanonord’s director of sales and marketing Ultan O’Raghallaigh. In addition, the system can help avoid risks associated with the manual sampling process, unrepresentative

World Bunkering Summer 2010

samples, and delays in receiving results from lab analysis. The system can also be used for lubricant analysis to enhance onboard condition monitoring capability.

Parameters analysed include density, viscosity, water content, sulphur, silicon and aluminium, vanadium, sodium, potassium, calcium, and oil temperature at 12.5cSt. Additional elements analysed of relevance to lubricants include iron, chromium, nickel, copper and zinc.

NanoNord will launch an exhaust gas analyser module in Q2, 2010 measuring NOx, CO² and O². The oil analyser already provides SOx and indeed calculated CO² emissions based on sulphur content and fuel mass consumed.

The Lab-on-a-Ship draws samples from various points on the ship, including the bunkering line, before and after fuel oil purifiers, at the engine inlets, and before and after the system luboil.

Samples are taken through automated valves at these points and transported through 25mm diameter tubing to the analyser. The elemental analysis is done using X-Ray Fluorescence. Water content is determined using a small distillation unit while density and viscosity is measured by a coriolis meter. Each test cycle takes approximately 15 minutes.

NanoNord has worked together with Lloyds Register FOBAS in the development of the system. Value limits for parameters measured by the system have been provided by Lloyds Register FOBAS. When the system measures a parameter in excess of these limits, an alert is generated with guidance notes. A help menu advising on the cause, effect and possible solutions for such alerts has also been provided by Lloyds Register FOBAS and incorporated in the system supported by remote monitoring and consultancy support.

Measurement data from the Lab-on-a-Ship are stored on a dedicated server on board the ship. The system also links with other measurement devices on board such as fuel flow meters, torque meters, anemometer, GPS and ship’s clock. This database provides comprehensive information on ship performance. The data are also transmitted via satellite to a shore-based server. Reports on ship and fleet performance can be generated by this system and automatically emailed to clients.

The system alerts crew to important changes in the fuel characteristics such as: • Increased catfines concentration causing rapid cylinder wear;

• Increased water which can be caused by condensation, sea water

leakage (the system can differentiate between salt water and fresh water) or steam leakage, leading to sludge formation and clogging of injectors and fuel pumps; • Changes in density and viscosity resulting from stratification of the fuel.

It also enables monitoring of purifier efficiency (monitoring before and after purifier). Purifier inefficiency has been the most commonly observed problem on Lab-on-a-Ship installations over the past year.

Monitoring at the engine inlets provides: • A final check for dangerous catfines; • Information on energy consumption as a basis for engine efficiency measurement; • Sulphur content in the fuel providing data for the optimisation of cylinder oil dosage.

Continuous monitoring of both fuel and exhaust gas emissions characteristics provides crew with the capability of managing and demonstrating compliance with environmental regulations.

The system can also be used for monitoring lubricant characteristics. This can be done either by automatically sampling in-line or by inputting samples manually into the analyser. Regular and systematic monitoring of lubricants, without the delay of waiting for sample results from shore laboratories enables early corrective action, for example, in the event of water leakage which would otherwise cause oil film breakdown, or in the case of the increasing presence of wear metals preventing excessive component wear and possible failure.

Lubricant analysis can also form a key part of a condition-based maintenance program.

NanoNord launched its Lab-on-a-Ship system in early 2009 on a pilot basis with a small group of early customers, and also working closely with Lloyds Register FOBAS. The system was installed on five vessels – two tankers, two bulk carriers and a passenger ferry.

Customers include DFDS, J. Lauritzen, Torm and BP Shipping.

The customer experience has been positive. Ejner Boderup, president of Lauritzen Bulkers stated: “We are delighted. As a tramp operator, we can’t make advance arrangements with port suppliers.

We have to bunker at many different locations.

The introduction of 0.1% sulphur fuel in EU ports may mean an increase in switchover problems

World Bunkering Summer 2010

35

OIL MAJORS

Emissions trading?

No comment!

It is widely assumed that the oil companies support emissions trading but, as David Hughes found out, with one notable exception they are tight-lipped on the subject

I

n the run-up to the Copenhagen Conference on Climate Change (COP15), it was widely assumed that shipping would have to accept some sort of financial incentive/penalty system (in IMO speak ‘market-based measures’ (MBM) to reduce carbon dioxide (CO²) emissions.

As a result, there was an intense debate on whether shipping should be subject to an emissions trading regime, often termed ‘cap and trade’ strongly supported by the UK Chamber of Shipping, or if a form of levy, proposed by the Danes, would be better.

As it turned out, of course, Copenhagen got nowhere near such details as greenhouse gas (GHG) emissions from the maritime sector.

However, IMO has been clear that the work of developing an effective regime to reduce GHGs must go on. The March meeting of its Marine Environment Protection Committee (MEPC) made some progress on technical issues but none on MBMs. Nevertheless, IMO and the shipowners, as represented by the International Chamber of Shipping, are keen to have workable proposals developed by COP16 in Mexico City this December.

Shell speaks out

Certainly the UK Chamber of Shipping is keen to press on with its proposals, and this was stressed by its new president Jan Copernicus when elected in March this year. It so happens he is a member of the Shell Trading Executive Committee and a Director of Shell International Trading and Shipping Company Limited.

He said that, coming from the energy industry, he was extremely

38

conscious of the global challenges posed by carbon and other emissions, and said that the Chambers’ ongoing commitment to positive action on carbon – specifically a trading system that puts a value on carbon – would be a top priority for 2010.

Shell in fact is the one oil company of several approached by World Bunkering that was very happy to make its position on trading quite clear. It supports trading and stands by a detailed paper on the subject that it put forward prior to COP15, in September last year.

The Shell view is that global demand for energy is growing, both in the developed and developing world. More energy means more CO² emitted at a time when climate change looms as a critical global issue. The societal imperative to limit greenhouse gases in the atmosphere at a level less than 550ppm will require the strict management of CO² emissions from both the production of energy and its use by consumers.

Shell believes the shipping industry’s objective should be to ensure a sustainable future by finding and recommending the most appropriate policy for addressing CO² emissions from shipping. Any scheme must set clear environmental outcomes and must be workable in terms of implementation, equitable, enforceable and fair for all participants.

While a tax may result in behavioural changes, Shell argues, the desired outcome, ie a reduction in emissions, cannot be guaranteed.

Society needs certain delivery of environmental targets. Policy instruments built around environmental objectives should deliver the desired outcome.

World Bunkering Summer 2010

Among key messages Shell had hoped to contribute to the expected debate at COP15 was that any scheme must set clear environmental outcomes and accompanying regulation must be globally applicable, flag neutral and founded on convention.

It wanted to stress its point that taxation or levy schemes raise revenue for governments but they do not guarantee – or even predict – an outcome. The tax can become “just another cost” of doing business, rather than a tool that drives industry to change its behaviour. There are also many legal and practical issues around setting the tax level, providing for international harmonisation of the legislative framework, collecting the levy, governing the global fund, and making sure the revenues are used for appropriate purposes.

Shell’s central argument is that an emissions trading scheme (ETS) will deliver real change. The company claims that ETS is also the most “outcome-focused” approach of the options on the table and is superior in providing incentives to reduce emissions.

It adds that the allocation of allowances under the cap should be by auction/sale to avoid the need of fiscally accurate baseline assessment and benchmarking, both of which are problematic in the shipping sector.

Traders and suppliers are best placed to utilise existing technology and infrastructure to help customers initiate carbon trading and drive emissions reduction SEAaT pushes ETS

Shell’s vessels operating arm, Shell Shipping, is a member of SEAaT (Shipping Emissions Abatement and Trading), an industry association dedicated to shipping emissions abatement and trading.

In late April, SEAaT attempted to give renewed momentum to the ETS lobby, calling for the involvement of the bunker industry in discussions for the establishment of a shipping emissions trading scheme (ETS), citing “strong commercial opportunities” for the sector.

John Aitken, Secretary-General of SEAaT, said: “The ETS is by far the fairest, most commercially-viable means of encouraging more efficient fuel use. The bunker fuel companies are in an excellent position to both trade credits and to support their customers in getting the best deal for their fuel, and helping drive environmental compliance strategies.”

Commenting on the current discussions on an ETS at the IMO and the United Nations Framework Convention on Climate Change (UNFCCC), Mr Aitken said: “There are multilateral discussions at IMO and UNFCCC, as well as among the trade associations. SEAaT would welcome the participation of fuel supply companies in these,

World Bunkering Summer 2010

as they have perhaps the most significant knowledge and experience of trading systems in the entire sector. We would also encourage them to develop knowledge of carbon trading by joining SEAaT as associate members and participating in the wider debate.”

BP Shipping is also a member of SEAaT. However, BP told World Bunkering it was unable to comment on its policy on ETS at present.

Another European-based oil company was equally reticent publicly but off the record a company source did stress that one important point is to make sure that an MBM is equally applied to any ship that consumes bunker fuel, irrespective of its flag and of where and from whom it takes it. In other words, there must be no flag discrimination.

The source added: “Moreover, as a supplier, we would not like to have to take the burden of collecting a bunker levy on behalf of the country where it would apply. For that reason only we would favour a cap and trade system against a levy.”

Cap and trade in trouble in the US?

The only US-based oil company to respond to World Bunkering’s questions was ConocoPhillips, which declined to comment. However, a well-placed US oil company source said that as far the US oil majors was concerned the whole issue of “cap and trade” was in a state of flux because of uncertainty over what would happen to efforts to persuade the US Congress to pass comprehensive climate and energy legislation.

Shortly after the source spoke it became clear that the efforts to push through cap and trade legislation were in fact in big trouble.

In June last year the House of Representatives narrowly passed a climate cap and tax bill. In late May this year, however, the influential Republican Senator Lindsey Graham withdrew his support for the bill. US media observers claimed that it was much more than just one lawmaker changing his mind but that there had been a sea change in attitudes in Congress and more widely around the country. They more or less wrote off any chance of getting a climate bill through with any sort of taxation element in it.

Globally, too, it appeared that lawmakers were having considerable trouble implementing emissions legislation with measures being shelved by several countries, including Australia. It must be premature to write off ETS and there are still very strong arguments in its favour.

And the EU could well still impose an ETS unilaterally. Nevertheless, it would appear that the US is unlikely to be in a position to deliver on emissions reductions for some considerable time. That being the case, it would appear logical not to expect US oil companies to see promoting ETS as being a high priority.

39

Fuel management

The sulphur limbo How low can you go? New low-sulphur regulations in EU ports could put engines at risk if changeover is not carefully managed

A

s EU regulations over the use of 0.1% sulphur MGO in port come into effect, engineers face yet another challenge to the smooth and efficient operation of their vessels. But the situation is far from clear, even as regards the enforcement of the legislation, let alone the requirements for practical compliance. And it may become even more complicated as new emission control areas are introduced, such as the sulphur control area already being enforced off the Californian coast.

“Environmental protection is rapidly becoming the most important operating issue facing the shipping industry today,” says Kirsi Tikka, ABS Vice President of Global Technology and Business Development who leads the organisation’s environmental programs.

“The issue of emissions is front and centre in the various moves to impose restrictions on the manner in which shipowners have traditionally operated their vessels. There is no doubt that there will be a lot of changes still to come and a lot of accepted practices will have to be modified, together with the equipment.”

What regulations where?

The technical side

Although EU Directive 2005/33/EC came into force on 1 January 2010, for example, it has only been enforced in the UK as of 1 April this year. IBIA Chief Executive Ian Adams says: “It is essential that ships operating in UK waters are in full compliance with the new regulations. As already emphasised, ships are not exempt on the ground that the fuel changeover is unsafe because modifications have not been made to their boilers, or to the ship itself. All noncompliant ships are at risk.

“The new regulations, which make no reference to the new lower sulphur limit for ECAs of 1% which comes into effect on 1 July 2010, are a good illustration of how domestic implementation of legislation often lags behind the decisions of international organisations.”

In Trieste, ships which do not comply with the regulations are facing fines of up to E30,000 (see legal news, page 88).

ABS warns that further emission control areas and local and regional regulations can be expected in the near future. The US and Canada, for instance, have applied to the IMO for the designation of a 200-mile ECA around the East and West Coasts of the North American continent as well as Hawaii, and if adopted, the ECA may be effective in 2012.

The need for new or modified equipment is a particular concern because, for most vessels, the new 0.1% sulphur limits will probably require burning marine gas oil in most instances. According to ABS that most ship machinery plants have not been designed to operate using marine gas oil (MGO) and, if not properly planned, there are potential difficulties that can arise during the fuel switching process and during sustained operation. These difficulties stem from the need to carefully control the temperature at which the lighter fuel is handled and take account of the reduced lubricity of the low-sulphur and low-viscosity fuels on the fuel pumps.

According to a presentation from BMT Marine & Offshore Surveys: “The complex changeovers will inevitably increase to opportunity for errors, which in turn may lead to costly claims.”

In order to comply with the legislation, a ship’s officer will have to demonstrate in his record-keeping that he has changed fuel in sufficient time before crossing into a control area. The changeover can be done in approximately one hour, but if it is done too quickly “there is a danger you can gas up the engine”. A rapid change of temperature can also cause thermal shock or seizure of the fuel pumps.

Chief surveyor Gerry Williams says that there is “little experience” of the likely effects of using 0.1% sulphur fuel.

40

World Bunkering Summer 2010

Explaining the issues

Both ABS and Lloyd’s Register have produced detailed information for shipowners operating in sulphur restricted ports. ABS’ 36-page Fuel Switching Advisory Notice provides a comprehensive analysis of the issues involved, along with operational guidance provided to owners to properly carry out the changeover from heavy to marine gas oils for both the main engine and the auxiliary boilers.

Lloyd’s Register’s Technical Directorate has now released specialist class related guidance to assist operators in understanding what is required from a classification perspective in its Guidance Notes for the Design Appraisal of Main and Auxiliary Boilers Operating on Low Sulphur Distillate Oil (November 2009). This supplements its Frequently Asked Questions on the ‘At Berth’ Requirements issued earlier in December by FOBAS. Is equipment the answer?

Equipment suppliers are also responding to the need for new technology to deal with complex switchovers.

Because of the lower viscosity of marine gas oil, the lubrication requirements of the engine manufacturer may not be met. In most diesel engines, the viscosity of the fuel needs to be at least 2.0 cSt. At normal temperature, the viscosity of MGO varies between 1-2 cSt, which means that sufficient engine lubrication can no longer be guaranteed, although viscosity can be improved with additives, but it is relatively costly.

Finland-based AuraMarine, which makes fuel management system, has developed an MGO handling system that it claims makes it easier to use MGO in an engine designed for HFO without causing damage or losing efficiency. “The changeover to using marine gas oil requires expertise in fuel systems, so that well-intentioned changes do not place the durability of the engines or maritime safety at jeopardy.

“Engines are different and vary in their capacity to use the low-sulphur marine gas oil. In principle, MGO is suitable for any engine, provided that the modifications are made correctly,” the company said.

“The idea is to maintain viscosity and

sufficient flow of fuel when switching over,” says technical director Jyrki Hentula. “The temperature must be lowered slowly and gently, possibly from as much as 150°C to as little as 20°. This is done by a system consisting of a cooling unit, a water circulation pump unit and a chilling unit. This adjusts the temperature – and therefore the viscosity – of the MGO to the preferred level.”

Costwise, he says, the solution is a fraction of the cost of a scrubber – “although the scrubber of course is much cheaper operationally”. The solution would cost from $20,000 upwards, said Hentula, with the most complex solutions costing up to $100,000.

Auramarine began to promote the solution at the end of December 2009. By the beginning of March, it had made 10 sales, although installation has yet to take place.

Of these 10 orders, half were for installation on new buildings and half were to be retrofitted on existing vessels.

Trieste has introduced heavy fines for breaching LS regulations

World Bunkering Summer 2010

41

surveyors

What role for surveyors?

It appears that bunker surveyors are generally still keeping busy, despite the downturn, but will this survive the advent of new technology, David Hughes asks

T

he worst shipping slump for years can hardly be seen as good news for anybody, and bunker surveyors in the many ports where volumes have fallen have seen their business decline as well. There are, though, counter balancing factors. When times are tough and, as in this recession, bunker prices rise to very high levels, shipowners are more inclined to spend out on the services of surveyors as even discrepancies of a few tonnes start to add up to large sums of money.

Higher fuel prices, however, are surely one reason for the growing interest in the use of flow meters. If these devices become standard it would seem logical that the need for surveyors taking ullages in the traditional way may disappear.

The surveyors who World Bunkering talked to for this article do not seem to accept they are on the way out. One who works for a large ARA-based firm says that in his patch surveyors are needed to represent the seller of the fuel who will normally charter the delivery barge. And as well as checking quantities, he is needed to ensure samples are taken correctly.

The economic downturn has had little effect on his business, Mr Phua says: “It has minimal impact on my business as my customers have been with me for some years and they value my services and support to them.”

He adds: “As the price of bunker fuels remains high during the recession, the demand for surveyors also remains high. Owners are more likely to engage surveyors to protect their interests and reduce any losses.”

And he is optimistic about the future, noting: “The price of bunkers is projected to continue to strengthen over the years and I do not see it coming down any time soon. As the cost for each bunker stem can run to hundreds of thousands of dollars, it is only natural for buyers, whether shipowners or charterers, to take measures to protect their business interests and be assured that what they pay for is what they get in terms of the quantity and/or quality of the bunkers received. It therefore follows that the services of surveyors will continue to be needed by bunker buyers.”

Are flow meters a threat?

High prices drive survey demand

Singapore is a major centre not only for bunkering but also bunker surveyors, with companies involved ranging from the largest surveying outfits to medium and small-sized businesses. It is also one of the few places that has bucked the global trend and actually increased bunker sales last year.

Daniel Phua, managing director of Potential Inspection Services says: “There has been strong year-on-year growth with Singapore bunker sales increasing 4% from 34.9 million tonnes in 2008 to 36.4 million tonnes in 2009. This trend has continued for the first few months for 2010, averaging 3 million tonnes a month. Not surprisingly, the need for quantity and quality assurance programmes also saw a correspondingly strong demand.”

42

So even with the widespread introduction of flow meters will there still be the same need for surveyors? “Most definitely so, as regardless of the measurement method used to calculate the bunker quantity, buyers still need to ensure their interests are protected. But of course I expect there will be realignment and changes with regards to the scope and role of surveyors which arise from the different technical and operating criteria when a mass flow meter is used e.g. calibrations and verifications.”

On that theme Mr Phua adds: “I definitely see the need to further train surveyors, not only for the use of mass meters. I believe surveyors need to constantly keep pace with future developments to remain competent to discharge their duties professionally. I am glad to see organisations such as IBIA being actively involved in undertak-

World Bunkering Summer 2010

ing the training of surveyors not only in Singapore but also globally.

“I generally support any industry initiative to enhance productivity and improve measurement processes for the industry, including ongoing trials to test if mass flow meters could be used to measure bunker quantity,” he says. “However, the challenge is that mass flow meters can only be accepted by all stakeholders as an alternative measurement process, if and when they are proven to be a robust, cost effective and reliable method to achieve comparable accuracy for custodial transfer quantity of bunkers.”

Silver lining

DNV Petroleum Services’ regional manager (Asia-Pacific), Rahul Choudhuri, says his company saw a 30% increase in the demand for bunker quantity surveys last year, compared to 2008. “Our cumulative bunker quantity surveying volume is now in excess of 62,000 jobs after 22 years in the bunker quantity measurement business”.

Capt Choudhuri also reports a silver lining to the cloud cast over the industry by the shipping slump. He says: “During the economic downturn, fuel buyers were more careful about checking the actual quantity delivered to their ships compared to what they paid for. This resulted in an increased demand for bunker quantity surveys. The same reasoning applied to our bunker quality testing volumes, which remained stable despite the challenging market conditions last year. “ He adds: “Our figures suggest an increased awareness of the benefits of bunker quantity surveys amongst shipoperators, who are now less tolerant towards losing even small bunker quantities in the physical delivery.

“I think the future is bright for bunker surveyors,” says Capt Choudhuri. “The market now needs more quality practitioners who can be trusted to act professionally. There are also stricter regulations in bunkering and a surveyor can play a key role in training shipboard

World Bunkering Summer 2010

staff, especially since the ongoing shortage of experienced shipboard crew could be exacerbating the lack of familiarity about bunkering requirements. A good example is the inadequate understanding of proper bunker sampling procedures.”

Moving up the value chain

Like Mr Phua, Capt Choudhuri believes there will still be the same need for surveyors if and when flow meters become generally used and accepted. He says: “New and complex systems could make it even more necessary for surveyors to verify that such equipment is in fact working well and meeting calibration criteria. Experienced surveyors are knowledgeable about bunkering requirements and are therefore in a good position to take on this additional quality control role in flow metering. Additional training for the surveyors would of course be required. DNV Petroleum Services would be very happy to explore the opportunity of moving our surveying staff up the value chain.”

Dispute handling is a very important aspect of marine fuel management, he points out, but there is no recognised standard stating that a flow meter is better than the conventional bunker quantity measurement techniques in use today. So, he concludes: “It may well be that disputes will still need to be sorted out using ‘manual’ methods. Even advanced flow meters use conventional liquid measurements for calibration.”

Capt Choudhuri stresses: “As regards the accuracy of quantity measurements, a conventional measurement system can in fact be more accurate than a flow meter. On the other hand, if properly managed, a flow meter would improve efficiency in the quantity verification process during the fuel delivery. The key point of surveying is to ‘trust but verify’ and this does not change with technology.

It is the people and processes that will build the trust.”

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GEoGraphical focus: Mediterranean

Mediterranean Round-up

David Hughes takes a look around the Mediterranean’s main bunkering centres

O

ver 200,000 merchant vessels of over 100 gt are believed to cross the Mediterranean Sea each year.

More than 2,000 ferries, 1,500 cargo ships and 2,000 local commercial craft, including 300 tankers operate permanently in the Mediterranean, and about a third of the world’s total merchant shipping traffic either trades to seaports or passes through the Mediterranean.

Ships can and do take bunkers in many ports around the Mediterranean but by far the majority of supplies are delivered in a small number of hubs: Istanbul, Malta, Piraeus, Port Said and the ports around the Strait of Gibraltar/Algeciras and Port Said.

Nikolas Zaharopoulos, a senior bunker trader at Aegean Marine Petroleum Network Inc. (AMPNI), says that while these main ports, located on the main shipping lanes fight it out for the first place in terms of volume, it is new ports that are claiming significant volumes at present. AMPNI supplies over 2 milion tonnes in the Mediterranean region.

Mr Zaharopoulos says that, like the rest of the world, the Mediterranean’s shipping businesses have been set back over the past 18 months. He says: “There seems to be mixed views on how the region’s shipping will fare in 2010. Bunker volumes have fallen as fewer ships have been trading. Now everybody is hoping for a quick recovery in the Med.” It should be mentioned, though, that volumes have not fallen everywhere in the Mediterranean and have held up well in the ports located near the Strait of Gibraltar.

Spanish oil trader and physical supplier in Ceuta, Vilma Oil, concluded in 2008 that volumes appeared stable or on the rise in the Mediterrranean’s western gateway and justified the company expanding into deliveries by barge. A spokesperson said that one important factor was that it was just about the last place where ships heading towards the northern European Emission Control Areas

World Bunkering Summer 2010

(ECAs) could take on low-sulphur fuel oil and 0.1% gas oil. A Gibraltar bunker industry insider confirmed that this was a significant factor in keeping volumes up.

Mr Zaharopoulos says that in the Mediterranean generally there is still little demand for low-sulphur fuel. He sees low sulphur as making up between 15% and 20% of total volumes. He thinks the chances of a Mediterranean ECA being created are low, at least for the next couple of years He adds that while the current economic climate is very tough, there are still opportunities in the global bunkering industry, including in the Mediterranean. AMPNI has a major newbuilding programme underway and a portion of that additional tonnage will be deployed to Piraeus, Tangier and Gibraltar.

On the increased counterparty risks caused by the economic downturn, he comments: “The risks we take on every day when trading are huge compared to a company of similar size in another industry. Only by careful selection and constant monitoring of our clientele can we keep trading without missing opportunities.” He stresses that building business partnerships is particularly important in the current economic climate. Good relationships are essential for every company, be they supplier or consumer, and the mutual support benefits both.

“The first signs of economic recovery are on the way and everybody feels the breeze of good news coming from all over the world,” says Mr Zaharopoulos, “but we have to be careful. The economies coming out of the crisis are very fragile and we may need a couple of years more, before we see real growth in the world trade. Though the USA seems to be coming out of recession, and India with mighty China never really got into trouble, Europe still has big problems.

Nevertheless, we have to be optimistic concerning the rest of 2010, though the experts say we will only see signs of improvement after the third quarter of the year.”

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GEoGraphical focus: greece

Greece

Still a major hub, and the centre of global attention

T

he primarily Piraeus-centred Greek bunker market contracted by 12% compared to 2008 with a total of 3.5 million tonnes supplied. Nevertheless, Piraeus maintained its position as the major Eastern Mediterranean bunker hub.

There were, however, some major changes among the main players in the Greek market with Hellenic Petroleum’s EKO losing significant market share. In 2008 EKO had 32.1% of the market but saw this drop to 23.5% in 2009. Aegean Marine Petroleum Network Inc (AMPNI) on the other hand bucked the general trend and increased its volumes in both absolute terms, from approximately 704,000 tonnes to 811,000 tonnes, and market share terms, from 18.1% to 23.5%, putting it on a par with EKO. AMPNI has 10 barges based in Piraeus and has an ongoing newbuilding programme.

The next largest supplier last year was JetOil whose market share dropped slightly, from 19.5% to 17.7%. Other players include SEKAvin, SEKA and ETEKA with 10.1%, 8.9% and 6.1% respectively.

There are about two dozen active suppliers in the Greek market.

Among the currently minor players, Chevron’s FAMM is growing quickly with 2.3% of the market in 2009 compared to 1.4% in 2008.

A tough year

JetOil’s general manager, Alexander Prokopakis, admits 2009 was a tough year but he told World Bunkering that he hoped the cruise business would give the bunker market a lift from May onwards.

He said the return of bunker prices to more normal levels from $600 to around $450 to $500 had helped as obtaining credit has become a big issue. He hoped the shipping market in general would pick up after September but currently Greece was losing out to other bunkering centres on price. He adds that demand for low-sulphur fuels is picking up, though still small.

While Greece’s financial problems have hit the headlines they have had, says Mr Prokopakis, little impact on the country’s bunker market. On the other hand, the global recession has had a marked effect on the competitive situation within the Greek market, with margins under great pressure. Suppliers have had to fight for market

World Bunkering Summer 2010

share from a shrinking pie. There has been a tendency to accept very low prices rather than lay-up bunker tankers.

Coping with the downturn

Sotiris Delidimitriou, operations manager for international bunker broker and trader Praxis Energy Agents says his company has been active in the Greek market for over 15 years. Echoing the views of other players in the Greek market, he is proud his firm has been able not only to survive in such a fiercely competitive environment but has managed to prosper and expand to New York, Singapore and Hamburg.

Looking at the local scene he says: “The Greek market has certainly seen better days but we feel confident that it is simply a matter of time for things to improve.” He says that Praxis works closely with the largest Greek shipowning and managing groups as well as with charterers. Relationships built on trust would appear to be the key to success in the Greek market.

“Bunker demand during 2009 was mostly a bit lower than in 2008, and recent studies show that we shouldn’t expect a significant recovery during 2010, especially during summer months when demand is traditionally lower,” he says.

Looking at the fundamentals of the bunker market he says: “Forecasting future oil movement is very difficult but bunker demand should be less than the rising supply, as oil production presently hit record levels in Russia. OPEC had also increased production to the highest level in around one year, by November 2009. The global economic crisis is likely to dampen demand for bunkers but we should expect to see further signs of growth from the Far East.

Mr Delidimitriou adds: “Undoubtedly, the main effect of the economic downturn has been reduced demand but we also have to consider other consequences of the downturn. For example, small or medium-sized trading houses that built their profitability, and often survival, on relationships with just one or two clients, got into problems if those owners themselves had to sell vessels, or had reduced requirements. Worse, some had to close down, with a knock-on effect for bunker traders, brokers and suppliers.”

47

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“The trading companies that have survived,” he says, “have been forced to squeeze their profit margins in an effort to attract as many enquiries as possible. Additionally, we have seen some physical suppliers decreasing their credit facilities from 30 days down to 21 days or in a few cases even down to 15 days from date of delivery.”

Some physical suppliers working directly with owners have, it appears, taken a very hard line on credit. As some shipowners already have cashflow problems, the restriction of credit for bunkers can make it even more difficult for them to pay for fuel.

LS demand shapes market

On changing patterns of demand for various grades, Mr Delidimitriou says: “Surely the greatest shift in the type of bunkers bought has been noticed with low-sulphur products in general and low-sulphur gas oil grades that all vessels have to consume when visiting ports within the EU in particular. It is worth mentioning that an increase has also been noticed in demand for heavy fuel oil as more and more vessels, especially newbuildings, can use the more economical and heavier fuel grades.”

He concludes: “The introduction of 1.0% sulphur in July 2010 will add more difficulties, as buyers need to pay more attention when they purchase bunkers and it will have a big impact on their operational expenses.”

World Bunkering Summer 2010

Greek influence on the wane?

Greece is not just important to the global industry as a major national market and a key hub for the Western Mediterranean. A large part of the world fleet is controlled from Athens/Piraeus. Latest figures provided by Lloyd’s Register, Fairplay, for the London-based Greek Shipping Co-operation Committee (GSCC) do show Greek interests own fewer ships and less tonnage than they did a year ago.

On 2 February this year, Greeks controlled 3,996 vessels of various categories, of 258 million total deadweight and 153 million total gross tonnage, including 826 newbuilding vessels of 40 million gt.

Compared with a year previously this represents a decrease of 165 vessels, 543,885 dwt and 359,857 gt.

Nevertheless, as the GSCC comments: “This is a considerable decrease, but given the turbulent economic year, not as significant as was initially feared.” Greek interests now control around 8% of the world’s total number of vessels in service and on order, 14.9% of the world fleet deadweight, or 13% of the world fleet expressed in gross tonnage, only very slightly down in each case from 2009.

The concentration of shipowners in the Athens/Piraeus area attracts traders and brokers who do not specialise in the Mediterranean market. Recently, Hong Kong and Singapore-based bunker supplier and trader Coastal Oil Holdings established an operations centre in Athens, as a sales office for its Asian customers and also as a general trading office.

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GEoGraphical focus: SPAIN

Spain

Margins under pressure

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unker demand in southern Spain has varied from port to port, according to Spanish oil company CEPSA. A spokesperson explains: “Those ports where the bunker activity is mainly related to the economic activity in the port’s hinterland have been affected, but in other locations, like Gibraltar Strait, there has even been some growth.

World Bunkering Summer 2010

CEPSA has four refineries in Spain: Algeciras, Huelva, Tenerife and Tarragona. Its bunker business is carried out by its fully-owned subsidiary CEPSA Marine Fuels (CMF), which is a physical supplier in all major Spanish ports. CMF operates a total of 11 barges.

The company says that even where volumes have stayed up, the economic climate has had a marked effect on the competitive

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New terminal at Algeciras

bunkers

situation. A spokesperson says: “There has been quite a strong competition among the local players, which has driven margins to very low levels. It remains to be seen for how long these levels can be sustained.”

At the same time as having to cope with very low margins, suppliers in the western Mediterranean have had to adapt to changing demand patterns. The spokesperson notes: “We have seen demand for low-sulphur fuels increase due to the proximity of the North West European emissions control area (ECA), although not being suppliers in the ECA itself means that the percentage of low-sulphur fuels sales is lower than in those areas. The upcoming ECA in the USA in August 2012 could mean a little boost to the sales of LSFO.” In order to comply with European regulations and to meet demand, CMF started offering 0.1% sulphur content MGO at all its ports by the beginning of December 2009, replacing MGO 0.2% sulphur.

In an expansion move CMF started bunkering operations at the beginning of this year at Huelva, aimed at the Strait of Gibraltar bunker market although the port is situated about 140 miles west of Gibraltar. The company is using the facilities of terminal operator Decal and has deployed the bunker tanker Spabunker 60 which can carry 2,400 tonnes of fuel oil and 680 tonnes of MGO. Ships can on occasion also be bunkered alongside the terminal while smaller deliveries will continue to be supplied by truck.

Explaining the move, the company said: ‘’CMF is now ready to offer more flexibility, time-saving and better service in our bunkering at the port of Huelva, as well as in the Strait of Gibraltar.’’

The Port of Algeciras Bay is Spain’s largest port with container throughput in 2009 at 3.04 million teu. Last year, bunker volumes at Algeciras totalled 2.52 million tonnes, a 5.4% increase on 2008, despite the economic downturn and a drop off in container traffic last year. There are currently five bunker barges operating within the port waters.

This year it appears the volumes may be falling away slightly, with first quarter reportedly down 14% compared to the same period in 2009. In the longer term, volumes should recover and increase as the Port of Algeciras Bay Authority (PABA), which manages the adjacent ports of Algeciras, La Línea de la Concepción and Tarifa, is strongly committed to expansion and in particular developing new facilities on Isla Verde Exterior and Campamento will together provide more than 200 hectares of new port area.

A PABA spokesperson said: “One of the main challenges facing the Port of Algeciras Bay is the construction and commissioning of the main development taken on board in our history: Isla Verde Exterior.

Having completed the first two phases of work in record time, the third phase is scheduled for completion by the end of 2010.”

Completion of the project will open the way for at least one additional bunker operator to make physical supplies in Algeciras, in addition to Cepsa and Repsol, which currently account for two-thirds and one third of the market respectively. Netherlands-based global liquid terminal and storage giant Vopak has just taken the majority interest in Alpetrol, the company which is developing the Isla Verde Exterior Liquid Bulk Terminal. In April, PABA’s Council approved the transfer of all shares of Novaro Invest SA, which had owned 70% of Alpetrol, to Algeciras Vopak BV. The remainder of the shares are held by the large Spanish-based oil trader Vilma Oil, which is also a physical bunker supplier in Ceuta.

The Isla Verde Exterior terminal is expected to offer about 400,000 cu m of storage for clean and dirty products and the terminal will be at least partially used for bunkering, but no decisions on which companies will use the facility had been taken by late April.

World Bunkering Summer 2010

a secure quality service @ Ceuta

VILMA OIL, MADRID c/ Chile, 10 · Oficina 236 28290 Las Matas · Madrid · Spain Phone: +34 916 308 900 bunkers@vilmaoil.com · www.vilmaoil.es

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Ceuta calls on the rise

Situated on the southern shores of the Strait of Gibraltar, the Spanish territory is also a major player in the bunker scene at the western entrance to the Mediterranean. Ceuta has tended to be used by smaller vessels. Reflecting this, the average delivery in Gibraltar is between 700 and 750 tonnes while in Ceuta the average for the first quarter of 2010 was about 450 tonnes.

In 2009 there were 4,329 bunker calls, up from 3,684 in 2008.

Cepsa is the largest supplier in the port, but the increase in ship calls is to a significant extent the result of the entry of Spanish-based major oil trader Vilma Oil and its move into the market as a physical supplier.

Cepsa operates from the Ducar II Terminal, connected to Poniente Wharf, while Vilma Oil operates from Ducar I terminal, connected to Levante Wharf. The latter initially rented about half of the Ducar Terminal, in 2006, mainly for use as storage connected

with trading activities. Since then it has expanded its operation and now runs the whole terminal.

In 2007 Vilma Oil started supplying MGO from the terminal. In late 2008 and early 2009 it started phasing in sales of fuel. Supplying at first only high (IMO compliant) sulphur 380 cSt and 180 cSt bunkers, since the second half of last year the company has also sold 0.1% sulphur gas oil and from April it has supplied 1.0% 380 cSt. In December last year Vilma chartered a 3,684 cu m capacity barge to deliver to vessels at the anchorage. Prior to that, Ceuta had not had a supplying barge since October 2007. Taking stems at the anchorage is attractive to larger vessels of over 4,500 gt, as they do not need to enter port and take bunkers ex-wharf, so putting up costs.

On the competitive situation, a Vilma Oil spokesperson said: “It is very tight between the three Gib Strait ports and margins are well down on 2008 and 2009. Some stems are being fixed at unbelievable rates – to keep volumes up. Vilma Oil is not following suit.�

The Port of Algeciras

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World Bunkering Summer 2010

GEoGraphical focus: GIBRALTAR

Gibraltar

Another good year, but expansion room is needed

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espite the economic downturn, Gibraltar’s bunker volumes increased by nearly 12% compared to 2008, to 4.69 million tonnes. Paul Imossi of ship’s agents Smith Imossi says Gibraltar has been helped by the introduction of the Emission Control Areas (ECAs) in northern Europe. This has helped in two ways. A 4% increase in ship calls probably reflects an increase in ships taking low-sulphur bunkers before entering the ECAs while ships have also been taking on more bunkers – IMO-compliant high sulphur and low sulphur for the ECAs .

The biggest supplier in Gibraltar in 2010 was Vema Oil, a subsidiary of Greece-based Macoil, with about 31% of the market in 2010, just slightly ahead of Cepsa/Peninsula at 30%, while Aegean accounted for some 23% and Bunkers Gib/Bominflot, 15%. There is a general acknowledgement that the already fierce competition both among suppliers and between the region’s ports has, if anything, been intensified by the global economic crisis.

Gibraltar Port Authority (GPA) chief executive Peter Hall tells World Bunkering: “Gibraltar’s main strengths are its maritime reputa-

World Bunkering Summer 2010

tion as a bunker supply port and support services, and its location centred on the north/south east/west shipping highway. These two key factors are coupled with deep sheltered waters that can accommodate the largest of the world’s vessels.”

The main challenges are to service customers in a timely and cost effective manner that delivers a quality service. The introduction of an e-notification system will allow customers to track their vessels’ progress with regard to the service that is being given in Gibraltar.

During the past year, calling fees have risen and a charge has been imposed on ship-to-ship transfers. Initial fears that this could deter business appears not to have been borne out.

Explaining the charges, Capt Hall says: “Like most business operations we review our tariffs on an annual basis. This was done against the charges levied by our nearest competitors. We adjusted our charges and continue to maintain our competitive advantage.”

Congestion has long been seen as a problem at Gibraltar but Mr Imossi says there have been few problems recently.

Capt Hall reinforces this, saying: “Congestion has been reduced

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and continues to be addressed with the introduction of the VTS system, which will deliver greater efficiencies as congestion will be further reduced.”

Expansion

In the long term, a solution to the currently very restricted area available for bunkering needs to be found. In broad terms, there are two main options: replacing the current storage vessels with shore facilities, and allowing bunkering to take place on the territory’s Eastern anchorage.

The most obvious course is to bring the Kings Lines storage tanks back into use. It is understood the Gibraltar government has received at least four proposals to take over this former military facility.

Bunkering operations have been the subject of criticism by environmental groups and this was heightened by the New Flame and Fedra incidents when bulk carriers grounded and broke up on the southern tip of Gibraltar.

Capt Hall says: “A number of measures have been introduced.

These are an exclusion zone around Europa point, prohibited inshore anchorage zones, and a state-of-the-art monitoring system.” These

World Bunkering Summer 2010

measures have been backed up by improvements to procedures at GPA which was quality accredited last year.”

He adds that shifting storage to land would stem concerns, which he says are unfounded, that storage vessels pose an unacceptable pollution risk.

“But there are other factors too,” Capt Hall points out, “namely the phenomenal success of this business in recent years. Faced with sustained growth in the sector, the Gibraltar government is exploring ways of meeting future storage demand. With land at a premium in Gibraltar, the King’s Lines depot is an obvious choice.”

Responding to questions in the territory’s Parliament recently, chief minister Peter Caruana said: “The government has a medium to long-term aspiration to reduce and if possible eliminate floating bunker storage.”

Bunkering in the Eastern anchorage has always been a sensitive issue but Capt Hall confirms this is now on the agenda. He says: “During the summer of 2009 a number of trial operations were carried out on the east side. These were very successful and will be expanded once the new VTS system is bedded in.”

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PORT OF

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Gibraltar operates in a Global Market and must be aware of the changing picture, with the introduction of low sulphur zones (SECA’S) and proposals for cold ironing (connecting into shore systems to reduce emissions).

The Gibraltar bunkering companies are already responding by bringing in more flexible barges that carry 3 or 4 different grades, delivering to the customer marine gas oil, heavy fuel oil and low sulphur grades.

Bunker barges are able to carry greater volumes, without compromising operational safety in terms of length or manoeuvrability. The safety record of bunker operations in Gibraltar bay is second to none.

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www.gibraltarport.com

GEoGraphical focus: MALTA

Malta

The bunker market is attracting new players, thanks to its ideal location

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he strategic location of Malta gives the island country a clear advantage when it comes to supplying bunkers, situated as it is right on the main shipping lanes though the Mediterranean. There are now four suppliers of residual fuel and several others that are so far just selling MGO. Bunkering has, however, had a somewhat chequered history in Malta. Shell International built a storage facility at Marasa in 1960, which it ran until 1975 when the facility was taken over by the Maltese government. It was passed on to Sea Malta Company in September 1982 when Mediterranean Offshore Bunkering Company Ltd was established. MOBC operated as a physical supplier for 20 years, and ran a fleet of bunker barges, until it was again taken over by the government from Sea Malta and Enemalta Corporation in 2002.

The mid-1990s saw the development of the oil terminal at Marsaxlokk on the island, operated by Oiltanking. The facility has four berths, the largest able to take ships of up 120,000 dwt.

Falzon Group’s subsidiary San Lucian Oil Company is one of the main suppliers and can deliver both high and low-sulphur fuel oil of up to 380 cSt by barge. The company also operates the country’s only waste oil recycling facility.

Carmelo Caruana Co. Ltd has been offering ship-to-ship transfer services off Malta since the 1980s. A spokesperson told World Bunkering: “In recent years we have partnered with SPT Marine UK to consolidate our position in this field. In 2009 alone, Carmelo Caruana handled over 200 ship-to-ship operations, successfully transferring over 6.5 million tonnes of product. We have invested in our very own STS base, within Valletta port, where we operate our own equipment, transfer hoses and four sets of Yokohoma fenders, including jumbo sized fenders. We are confident of our reputation in this sector and are continuing to invest in the resources required to ensure continuance of our high standards of service.”

Physical supplier Island Bunker Oils was set up in 2002 as a joint venture between top Maltese entrepreneurs involved in the marine

World Bunkering Summer 2010

industry. The company operates three bunker barges and can make deliveries both within and outside Maltese territorial waters. Vessels can also be supplied ex pipeline or by tank truck.

The company leases facilities at the Mediterranean Offshore Bunkering Company in Marsa as required and also leases storage at Oiltanking in Marsaxlokk.

Ship’s agent Sullivan Shipping’s chairman John Sullivan told World Bunkering that Malta’s location ensured that the island was a cost effective place to take bunkers, offshore or alongside. He noted that Malta was well placed to meet demand for low-sulphur fuel as it was widely used domestically.

Malta’s favorable location has attracted a couple of new players to the market recently. The 1,600 cu m Karol Wojtyla is now on station supplying both residual and distillate fuels for Cassar Fuels Malta, which had previously specialised in MGO. Meanwhile US-based independent marine fuel supplier Bunker Supplies Malta Ltd have set up a joint venture to supply MGO in Valletta, Marsaxlokk, and offshore Malta.

“We are very excited about this expansion of our company into a strategically important bunkering location like Malta,” said John Canal, president of Bunkers International. “With our excellent partners in Malta we can deliver high-quality gas oil products and superior service and support that meet the needs of our customers calling on Malta from the container, cruise, and specialised services markets. We have successfully operated a similar joint venture in Colombia, South America for the last 12 years and currently are the largest bunker supplier in the Colombia market, a success we hope to repeat in Malta with BSM.“ BSM is run by Mr Frank Sammut, who worked for MOBC for over 25 years. He said: “We are very optimistic about this new venture.

Combining our supply expertise and knowledge of the local market and Bunkers International’s global footprint will result in a highquality product being delivered to our mutual customers.”

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GEoGraphical focus: ITALY

Italy – looking better

The Italian market has had its share of woes in the downturn but it may have turned a corner, reports David Hughes

I

taly’s main bunker ports of Genoa, Venice and Trieste saw their volumes dip last year as the global economic crisis hit shipping.

Bunker broker Vittorio Pisano of Genoa-based PL Pisano and Co estimates that total volumes passing through Italian ports were down about 20% last year, with the market estimated at about 2.3 million tonnes. He says: “All markets have been affected by the crisis.

Reduced industrial demand means reduced transport traffic.”

But he adds on an upbeat note: “However, the first few months of 2010 are looking better than the early part of 2009.”

Giving a brief overview of the Italian market, Mr Pisano says: “Generally speaking, apart from a few local installations, RME180 is

World Bunkering Summer 2010

done as a blended product using 84% RME380, 15% gasoil and 1% RMG380 low sulphur.

There has, though, been a significant change in demand patterns, with enquiries for low-sulphur fuel increasing substantially. He notes: “Low-sulphur fuel demand is growing, especially in Genoa. We can say we are now supplying about 18% more of this product compared to 2008.”

Looking ahead, he says: “It will be difficult for the Italian market to satisfy in full the rising demand for low-sulphur fuel.”

Pisano has been a well-known name in the bunkering/brokering world since 1957, when Vittorio Pisano began acting as the exclusive

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bunker broker for AGIP, as well as being the agent for AGIP on the domestic market in Genoa. That experience has been passed down through the company set up by his son, Pietro L Pisano, in 1971 as a new branch to his father’s company, which worked the international bunkering/brokering scene and operated as PL Pisano and Co. In the past decade Pisano has widened its area of operations and now has customers in the US and the Far East, as well as Mediterranean and Black Sea ports.

Second new tanker for Ciane’s bunker operations

Italian coastal shipowner and bunker operator Ciane Spa has purchased a second double-hull bunker tanker from the Turkish shipbuilder Çiçek Shipyard. The Brezzamare started bunkering operations in February.

The decision to take the Brezzamare followed the delivery of the Frecciamare in May last year, the first of a series of four 3,100 dwt IMO II chemical tankers Çiçek had under construction for its associated shipowning company White Tulip Shipping, to Ciane.

The Frecciamare has been operating out of Genoa and neighbouring ports including Savona, Vado Ligure, La Spezia and Marina di Carrara, providing bunker fuel to vessels calling at these ports. Now the Italian owner has decided to purchase the second vessel in the series, which was to have been named Chem Rose, and named her Brezzamare.

Based in Augusta, on the east coast of Sicily, Ciane is part of the Novella Group, headed by Marco Novella and his family, and specialises in coastal tanker and bunker operations. Augusta is one of Italy’s largest ports, a major centre for oil refining and a popular bunkering centre, being on the main east-west trade route through the Mediterranean.

Although Ciane Spa intends using Brezzamare for bunkering duties, operating alongside Frecciamare, the two ships are extremely

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flexible, being capable of worldwide trading, transporting oil products, chemicals (IMO type II) and vegetable, animal and fish oils.

MarineLine coatings were selected by Çiçek to give the ability to carry a wide range of cargoes while high manoeuvrability is guaranteed by the choice of twin azimuthing propellers and a bow thruster. They are classed by Bureau Veritas and constructed to meet Ice B standards.

According to Berke Çiçek, Vice President of Cicek Shipyard, interest from European owners for such vessels is strong, despite the overall weak state of the shipping market. He explained: “New double-hulled vessels like these are still in demand to replace older tonnage and because we took the initiative to start construction of the four ships to our own account, new owners benefit from extremely short delivery periods. We are talking to a number of other potential owners and charterers and are confident of finding buyers who can secure immediate and profitable employment for these vessels. We still have two sister vessels from the same series which are waiting for their new owners.

“We were not surprised by the interest shown in these ships by the Novella Group. We had identified the bunker trades as a strong potential market since many bunker tankers are still single-hull and quite elderly. There is a replacement market and there is also a requirement for larger vessels like ours since average ship sizes continue to grow. Large containerships, for example, take on board substantial amounts of bunkers and they also expect a fast rate of delivery.”

Speaking on behalf of the owner, Luca Stegagnini, who is the technical manager and a board member of Ciane spa, said: “Frecciamare is proving to be an excellent vessel. Being an IMO II chemical tanker, she might be considered to be ‘over qualified’ as a bunker tanker but we are sure she will prove to be a good longterm investment.”

World Bunkering Summer 2010

GEoGraphical focus: FRANCE

France

Shipping recover is underway, despite short-term setbacks

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argo throughput at France’s main Mediterranean port, Marseilles Fos, fell 13.3% to 83 million tonnes last year but capital investment soared and development plans stayed broadly on track, despite one of the port’s sharpest-ever trade reversals.

Bunkering volumes at Marseilles reflected overall port activity, dropping from 1.4 million tonnes in 2008 to 1.2 million tonnes in 2009.

Underlining a year of contrasts, container traffic bucked the trend with 4% growth to 882,580 TEU while grain and biofuels volumes rose by 40% and the cruise sector drove passenger numbers to an all-time high of more than two million.

The overall downturn in cargo reflected the impact of the global economic crisis on European ports. Marseilles Fos was also hit hard by a five-month shut-down of the South European oil pipeline, new import restrictions in key market Algeria, and several strikes by port and port user personnel, including stoppages over French port reform legislation.

The port authority made significant progress on the reform requirements during 2009, notably with preparations for the transfer of container and dry bulk cargo handling to private operators. The port says it “remains cautious” on cargo forecasts for 2010 but is targeting 11% growth to around 92 million tonnes thanks to the launch or recommissioning of various installations.

The first quarter of this year appears to have seen a recovery, with container volumes and a revival in local steel and chemicals production helping take total throughput to almost 21.5 million tonnes, a 3% increase on January-March last year.

Container volumes for the quarter rose 17% to 245,029 TEU, marked by a 31% jump to 63,933 TEU in the Marseilles harbour area’s mainly intra-Mediterranean traffic. The deep-sea Fos terminal added 13%, to 181,096 TEU, and looks set for further gains with the

World Bunkering Summer 2010

introduction of two new lines – the Med-Gulf Express serving the US and Mexico, which started in mid-March, and CSAV-Norasia’s Asia-East Mediterranean service, which now extends to Fos. Whatever the short-term fluctuations, ambitious plans for developing Maerseilles Fos should ensure that the bunker market is set for long-term growth. Last year capital expenditure on container and logistics facilities totalled €76 million, representing some 60% of the year’s investment budget. More than 80% of this sum, €62 million, was allocated to the Fos 2XL container project, where construction of the quay was completed and work on road and rail access is now in its final stages. MSC and Port Synergy, who won the operating concessions for the two terminals, will then take over the landside development. The project is due to come on stream in 2011.

Plans for a similar public-private partnership to develop Fos 3XL and Fos 4XL container terminals had a set-back when responses to tender regarding 3XL fell short of the port’s requirements. The tender call is expected be relaunched when the economy improves.

Similar short-term set backs occurred with plans to develop a new conventional cargo facility in Marseilles, and also when no acceptable bids were received take over a fruit terminal which closed last March.

Again, however, these projects are waiting in the wings and will eventually go ahead. There was a better response to proposals for a car terminal at Fos, which went out to tender in 2008. The winner should be announced this year.

INEOS Refining which owns the Lavéra Refinery near Fos has signalled its intention to become a physical supplier from July this year. Recently, Hugues Goujon, the company’s Marine Business manager announced: “We are pleased to announce that from July 2010, INEOS will be marketing marine fuels from its Lavéra Refinery directly to ships.This is part of the company’s strategy to extend its offer from production, through the supply chain, to benefit end consumers directly in the marine market.”

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GEoGraphical focus: turkey

Business keeps going

Global shipping has been badly hit by the economic downturn but vessels are still sailing through the Turkish Straits and they still need bunkers, as David Hughes reports

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hile the world may have been going through an economic crisis, and Turkish waters may have been ‘home’ to a large fleet of laid up ships, the number of vessels transiting the Turkish Strait remained more or less stable in 2009, compared

to 2008.

Official figures put the number of ships passing through the Bosphorus at 51,422 while 49,453 vessels transited the Dardanelles, almost identical numbers to 2008. These vessels were carrying a total of 400 million tonnes of cargoes. Nearly 9,300 tankers went through the Istanbul Strait with over 144 million tonnes of oil and dangerous cargoes on board while almost 9,600 passed through the Dardanelles, carrying about 152 million oil, some 4 million tonnes up on 2008.

So not surprisingly Istanbul’s strategic location on the only route between the Black and Mediterranean Seas makes it the region’s obvious bunker and ship supply hub. Some 18,000 ships take bunkers and luboil at Istanbul, giving the city’s ports annual volume of about 1.5 million tonnes with five suppliers accounting for 95% of the total market who provide fueloil and gasoil. Two others are specialists in gasoil. The Istanbul ports and the anchorage account for 90% of Turkey’s bunker business.

Mustafa Muhtaroglu, the founder and head of physical supplier Energy Petrol, argues, however, that Istanbul could have been much more successful if opportunities to expand the industry, and especially to build up the supporting infrastructure, had not been missed over recent decades.

He says: “Istanbul has grown so rapidly that all possible locations for such a bunker supply centre have gone. Any municipality with vision and shipping knowledge would have established a bunker centre in Istanbul to serve such international shipping. If that had happened, we would now sell over 10 million tonnes of bunkers and bring a very large income to Turkey from bunkering and other related

World Bunkering Summer 2010

services such as crew changes, luboil, fresh water and provision supplies etc. The income could be as high as $10 billion or almost 10% of Turkey’s total exports. In 2000 I wrote an article about our ‘exports at the door’. But the chance was missed.”

There are five or six major suppliers and a number of MGO supply specialists. Baytur maintains a strong position in the Istanbul bunker market and has the advantage of a floating storage facility located at port of Ambarli, close to the Istanbul anchorage area.

Another long established strong player is Petrol Ofisi (PO), which has a terminal in the same area. Other suppliers include CYE Petrol, Energy Petrol and TBS. Lukoil and Oiltrade supply gasoil while Shell,

Mustafa Muhtaroglu

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Mobil and BP supply luboil only, and shipowner-backed Arkas Bunker is a relative newcomer to the market.

Apart from Baytur and PO, located near Istanbul, the other suppliers work from storage facilities located in the Gebze area, 35 miles sailing to Istanbul’s bunkering point. Gebze is the region’s new hub for oil and chemical products, with modern land-based storage facilities enabling suppliers to provide shore-blended bunkers of all grades of bunker fuels.

Gebze is close to the Tüpraş refinery, the main source for bunker

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suppliers working in Istanbul and the Marmarasea. Gebze and the neighbouring Izmit Bay ports of Diliskelesi, Hereke, Yarimca, and Derince provide a gateway to Turkey’s most industrialised area.

About 20 private terminals receiving over 12,000 ships a year create strong additional bunker demand for suppliers based in the Gebze area.

PO was established as a state enterprise in 1941 to purchase the petroleum and petroleum products needed by public and private enterprises and end-users, to import these and maintain stocks in

World Bunkering Summer 2010

LEAGUES ON THE SEA Turkey’s energy power Petrol Ofisi, has the biggest stock capacity with nine terminals covering all Turkish coast. Having the advantage of its huge logistic capabilities, Petrol Ofisi provides highest quality bunker and lubricant supply services to its marine customers with the most competitive terms.

Stay in contact with Petrol Ofisi to enjoy the benefits of working with a marine professional.

Phone: (+90) 212 329 15 55•Fax: (+90) 212 329 17 01 marine.sales@poas.com.tr

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World Bunkering Summer 2010

the country for subsequent marketing. A private sector company since 2000, PO has a dedicated bunker arm, PO Marine. PO supplies from five terminals at Istanbul, Izmit, Trabzon, Mersin and Izmir.

Baytur says that there was limited competition in the Turkish bunkering market until the mid 1980s when it started business in Iskenderun Bay area, where the Ceyhan pipeline connects with shore storage and pumping facilities. The company later expanded its services to Istanbul, where it has a storage tanker and its main office.

Baytur’s fleet now comprises a floating storage tanker of 25,000 dwt and nine bunker delivery barges, of up to 1,200 tonnes. The company says that 40% of its total fuel oil supplies are straight run products and all are in accordance with international standard ISO 8217.

CYE started bunker fuel trading in 1992 as a new branch of its exiting fuel-related business activities. The company supplies MGO and IFO grades and the CYE petrol bunker terminal is located in the Gulf of Izmit at Poliport from where it supports its bunker supply operation via Istanbul roads. The company uses in-tank and line blending facilities. In 2006/07 the company restructured its fleet, replacing its existing barges with fewer, but more technically advanced, vessels.

In 2008 CYE Petrol brought into service the 3,300 tonnes capacity Bebek-E. Then last year it acquired a 670 dwt barge for MGO, the Tarabya-E, which can carry six segregated products.

The headline traffic figures may look good but in reality times are tough, according to Mr Muhtaroglu, who says: “The fact is shipping is down, freight rates are very low. Of special relevance to Turkey, the shipbuilding industry has been very badly affected. In our country’s case many shipowners are linked with shipbuilding while many shipbuilders went into the shipowning and managing business, so we have further negative effect. The slump in container shipping has had a knock-on effect in this area, with reduced frequencies resulting in lower demand for bunkers from that sector.

“However,” says Mr Muhtaroglu, “as an industry we have been able to achieve almost the same volume in 2009 as in 2008. As a company, Energy Petrol, we actually increased our volume by 3%, despite several availability problems in 2009.”

“This year started with low demand,” he notes, “but I can definitely say Istanbul is again achieving volumes similar to last year without major problems.”

There is, though, a downside that is familiar to suppliers worldwide at present. Mr Muhtaroglu, says: “It is a fact that margins are very thin. Nevertheless, Istanbul is maintaining its position as a bunker hub.”

World Bunkering Summer 2010

Mr Muhtaroglu says: “We often supply ships just before they are fixed for Black Sea loadings.” MGO supplier says that it has just set up a Scotland-based branch of Oiltrade Marine but has also been actively increasing its sales, ranging from part-lots of 500 tonnes up to 3,000 tonne lots to both local physical suppliers and some Black Sea and Mediterranean suppliers. Recently it has been selling heavy fuel cargoes in up to 5,000 tonne lots.

Julia Krivosheeva tells World Bunkering: “In bunkering we have been maintaining our reputation as a gasoil expert. Our plans for the future are to proceed slowly but surely in developing our cargo trade, as well as being more active in the fuel oil business.

The company’s general director Mr Mustafa Hepanil says: “The global economic downturn has not produced a negative effect on our company.” He adds: “I dare say it has been a most financially fruitful period of time.”

Regarding barge fleet modernisation, Ms Krivosheeva says: “We do not believe it to be a priority. All the key people in our company have been involved in operating self-owned barge fleets in other companies. While you should be taking care to supply high-quality product and boost sales volumes and income plus general marketing, to think of changing spare parts or managing barge personnel problems and education would impede and slow down the priorities in this business. When bunker suppliers take on secondary functions or roles it often ends up in a mess in terms of speed and quality, and moreover inevitably complicates the company structure, making it less and less dynamic and effective in daily transactions.”

Arkas Bunkering introduced two new bunker barges, Bornova and Urla 1, to serve the Marmara and the Aegean, increasing its barge fleet to seven. A statement said: “With the addition of these two barges, Arkas Bunkering has raised its capacity to 7,100 dwt and will be able to complete bunkering operations for passenger ships, ro-ro and container vessels more rapidly.” It added that Urla 1 was a newbuilding and the first double-hull barge to be deployed in the Turkish bunker market.

Meanwhile a new physical mgo supplier, AA Petrol Urunleri Ticaret, is operating in the Mediterranean ports of Mersin and Iskenderun, using trucks.

Little low-sulphur fuel is currently supplied in Istanbul. Suppliers do offer low sulphur (max 0.1%) MGO as required at EU ports in any quantity and can deliver even very small quantities like 5 or 10 tonnes, enabling shipowners to get the required quality and quantity for efficient operations, which is very important at todays freight rates. However, Istanbul is not able to offer low-sulphur fuel oil so far.

The refineries supplying Istanbul do not produce low-sulphur

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LUKOIL - BUNKER ISTANBUL İHRAKİYE TİC. LTD. ŞTİ.

Süzer Plaza, Elmadağ, Askerocağı Caddesi, No: 9 Kat:16, D: 146-147A Şişli, ISTANBUL – Turkey Switchboard: 90 212 292 06 07 Fax: 90 212 292 06 16 E mail: bunker@lukoil-bunker.com.tr

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fuel and it is not economic to bring it from distant refineries as the demand is not there. Passing traffic is mainly between the Black Sea and Mediterranean and North Africa, where low sulphur fuel is not required by the regulations.

The situation regarding low sulphur demand in Turkey looks unlikely to change while the Mediterranean is not an ECA. On the other hand, low-sulphur gasoil is largely in demand and widely available in Turkish ports Also as Deniz Eraydin of CYE Petrol explained last year, regulations have an effect on what can be offered. He said: “It is forbidden to sell fuel oil as a bunker product if the sulphur content is lower than 2%. So, if we want to obtain different grades with blending, we have to stock fuel oil with min 2.5% sulphur. Also, mgo with a sulphur content of less than 0.05% cannot be sold as bunker product.” He attributes the problem to diverging priorities of different government bodies, saying: “While one authority is trying to introduce regulations according to international environmental standards/ concerns, another authority introduces the contrary. It takes some time to explain and make changes.”

From 1 May this year, physical bunker suppliers have been subject to a new regualtory requirement. They are now obliged to write analysis report numbers on bunker delivery notes/bunker delivery receipts.

Under a new Energy Market Regulatory Authority (EMRA) regulation, government approved International Survey companies obtain samples from shore tanks after each cargo discharge. Samples taken from shore tanks are analysed and a random ‘analysis report number’ given. This number must be written clearly on the bunker deliver note. A copy of the analysis report and samples will be kept by the survey company for one year. Although quality problems are not regarded as an issue, EMRA says that the new procedures aim to ensure customer safisfaction.

TBA looks ahead to Istanbul Bunker Conference 2011

Since its establishment in 2001, the Turkish Bunker Association as a non-profit, non-company-based organisation has aimed to bring more transparency to the country’s bunker business in Turkey.

Among TBA’s goals are representing the industry at local and international level as a single body, increasing awareness of the bunker industry among the Turkish maritime sector’s main players, and forming a combined voice to support the local market and to increase the efficiency of services. It has become the main body for

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representing the Turkish bunker industry in official and unofficial forums.

Recently the TBA elected a new board of directors for the coming year. Yesim Muhtaroglu, who has been the association’s vice president, has been elected as president for the 2010-2011 period.

The other board members are: vice president, Sibel Buyuk of TBS; secretary general, Mustafa Yilmaz of DTO Petrol; treasurer, Deniz Eraydin of CYE Petrol and, member, Mustafa Aslan of Asmira Petrol.

One of the TBA’s major undertakings is to organise the Istanbul Bunker Conference every second year in Istanbul, with the fifth due in June next year.

Ms Muhtaroglu tells World Bunkering: “Located between two continents and between the Black Sea and the Mediterranean, with 50,000 ships passing through every year, Istanbul is the perfect location for bunkering in this area. Already about 15,000 ships a year take bunkers in Istanbul, and enjoy our safe, high quality service. We are trying to increase numbers.”

She continues: “The Turkish Bunker Association is a well established, widely recognised body, respected by the industry in Turkey, working on several official and non-official platforms to increase awareness of bunkering in Turkey and to increase the income and employment opportunities for our young country.”

According to Ms Muhtaroglu, bunkering is a business which brings export opportunties to Turkey’s doorstep, currently about $1 billion a year. She says: “Fortunately, all the relevant bodies are supporting us very well and we are working with them very closely to make Istanbul the preferred and best bunkering centre in the area.

Maybe we cannot reach the volumes of some other Mediterranean bunker hubs, such as Gibraltar, which supplies some 4 million tonnes, and Piraeus with 3 million tonnes bunkers sold. But we can easily say Istanbul is by far the best supply port when considering quality and safe and reliable supplies.”

“In this respect,” she adds, “the Istanbul Bunker Conference is very important. We are organising the fifth one in June 2011 and ask our friends to note the date now and join us in June. It will also be the 10th anniversary of our association. So the event will be like a bunkering fiesta, with many delegates attending from all related areas including shipowners and official bodies in Turkey in addition to our traditional guests from the bunkering community all over the world.

We are proud of our event which attracts more delegates each time is becoming the meeting point for our industry in the Black Sea/ Aegean/Mediterranean area.”

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Port focus: Australia

Downturn hits down under

J

ust over a year ago, the mood in the Australian bunker industry was still upbeat but that has changed over the course of last year.

Lena Johnston of Australia Bunkers comments: “In short, yes there has been a downturn, when you consider every supplier and probably every trader experienced a bumper year in 2008, we certainly did. Even the first quarter of 2009 was looking to top 2008, then it turned the other way. I guess if you had to put it in percentages you could say it’s been around a 30% decrease.”

Ms Johnston notes too that there has been consolidation of the lines trading to Australia and this has also contributed to the downturn in the volumes. This has not been helped by the country’s generally weak competitive position in the bunker market.

Traditionally, Australia has always been a top-up port; recently owners have become more reluctant to take on bunkers unless essential.

Sydney-based Australia Bunkers was set up as recently as 2007 but has quietly increased its business, with monthly volumes now running at around 16,000 tonnes a month. Ms Johnston says that as with the rest of the global bunker industry, credit and counterparty risks have become major concerns.

Market round-up

Among recent developments in the country’s bunker scene, Caltex Australia has boosted its Brisbane presence by long-term chartering the 1999 Australian-built, double-hull Bunker V. The tanker replaced a dumb barge and tug operation.

Barges are on the move elsewhere. Newcastle should have a barge operating by the last quarter of 2010, with the ability to supply 380 cSt and 180 cSt. This could provide a challenge for Gladstone which is currently, market sources report, still the cheapest bunker-only call in Australia. Meanwhile, Dampier’s barge is reported to be fully operational. In Sydney Harbour a new barge is expected to be in service at Port Jackson towards the end of this year.

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Cleaning up

While the bunker supply business in Australia may be fairly subdued at present, bunkers have made the headlines recently, for the wrong reasons. There have been two well publicised accidents which led to the leaking of fuel oil. Initial fears of a serious bunker spill were not realised following the 3 April grounding of the Chinese-flag bulk carrier Shen Neng 1 on the Great Barrier Reef, with only about 4 tonnes leaking out.

Nevertheless, this latest incident comes after significant pollution of the Queensland coast last year, caused by some 230 tonnes of oil which leaked from the Pacific Adventurer. The containership lost some of its deck-stowed containers overboard during Cyclone Hamish, gashing the hull and breaching a fuel tank. Bunkering in Australia has long operated under intense environmental scrutiny and that is unlikely to diminish.

There is, however, still considerable optimism in the market.

Steffen Poulus, the branch manager of OW Bunker Australia, another recent entrant to the Australian bunker scene, says: “Despite the economic downturn, shipping is critical to the Australian economy, a region that is so rich in natural resources and relies heavily on export.

Coupled with the developments in the offshore market, and the LNG sector, Australia is a market of opportunity that we are determined to capitalise on.”

He adds: “While the fishing cruise and bulker sectors are the mainstay of the Australian shipping industry, there is significant opportunity in the thriving offshore market, particularly the development in the extensive oil and gas regions of the North West Shelf.

There is also real opportunity on the back of the A$50 billion Gorgon petroleum project in Western Australia, which involves the development of the Greater Gorgon gas fields, providing fuel products and services to the support and supply vessels, as well as the LNG vessels once the project is concluded.”

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russian UPDATE

News and views Olga Bogacheva provides a round-up of the latest bunkering news from Russia

COMPANY NEWS Rosneft opts for open oil products trade

As of February 2010, Rosneft has cancelled monthly oil products tenders on the domestic market. All available products offered as “free departure station” (FDS) will now be traded via exchange only.

As a result of positive customer response to the openness, comfort and transparency of exchange trading, Rosneft has cancelled FDS tender procedures for motor fuel, residual oil, bitumen and aircraft fuel. The small amount of tender sales compared to exchange trade is a further reason for the decision to suspend the tender system .

Currently Rosneft sells over 100,000 tonnes of oil products per month via the St Petersburg international commodity exchange (SPIMEX); and this figure is growing. Trading is considered strategic; the decision to proceed to daily trade in the near future was adopted.

Other petrochemicals and oil produced by Rosneft refineries will also be open traded.

According to Rosneft Information Service, Rosneft was the first among Russian vertically-integrated oil companies to develop the open trade of oil products following an order from the Russian government in 2008. In 2009, 1.15 million tonnes of oil products were sold at exchange. Negotiations with agents and potential customers were held to invite the maximum number of companies to trade via the exchange. Since then, sales have increased multifold.

A number of special efforts are made to engage end-customers in trading. In particular, the minimum motor fuel lot has been reduced to 60 tonnes. This provides manufacturers who have low fuel consumption with the opportunity to buy oil products without intermediaries.

Sergey Bogdanchikov, Rosneft president said: “Rosneft actively participates in open trade development in our country. Switching from bids to open trade is the next step towards the civilization of the domestic oil products market.”

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Olga Bogacheva

Fuel sales up for Primorsk Resources

Primorsk Resources bunkering company supplied 25,500 tonnes of fuel during the first quarter of 2010, giving it a market share of 33% in the port. Total bunker fuel sales in 2009 were 110,000 tonnes.

Primorsk sea port is an oil-loading port at the end of Baltic pipeline; it is the largest oil and oil products transhipment port in the north-west of Russia. In 2009 turnover reached 79.1 million tonnes (5% more than in the previous year); the number of vessels calls was 935; oil transhipment reached 74,875,200 tonnes. The remaining turnover consisted of diesel fuel. Primorsk Resources has been supplying bunkering fuel in Primorsk since 2003.

Bunker tanker launched at Nevsky

Nevsky shipbuilding and ship repair yard has launched a new bunker tanker for Haugland Tankers , a subsidiary of Bergen Tankers. The 850 dwt coastal bunkering tanker, second in the series, was launched on schedule on April 6, 2010.

Following installation and start-up, and sea trials on Ladozhskoye Lake, the vessel will be delivered to Haugland. It is expected to operate in Oslo and Bergen ports.

Skadar to supply Atomflot

Skadar bunkering company won an electronic bid to supply fuel oil to FGUP Atomflot on April 2, 2010. Atomflot, a subsidiary of Rosatom State Corporation, operates and maintains the Russian civil atomic fleet. The ship base is located in Murmansk.

Olga Sudova, Skadar’s logistics manager, represented the company throughout the bidding process. She was specially trained in the “Theory and Practice of Open Trade” programme arranged by the Russian Association of Marine and River Bunker Suppliers.

Sudova said: “We are satisfied with the bid result. Our company got a new client and reasonable prices. We are going to expand our participation in open trade and electronic bids.”

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Skadar was established in 1998 and is one of the largest fuel suppliers in Murmansk, with monthly sales of some 16,000 tonnes of oil products. This is a rare occasion where the company has managed to maintain its position after the vertically integrated oil companies (Rosneft and Lukoil) entered the local market. A good reputation, reliable suppliers, high product quality and the ability to satisfy the requirements of each client contributed to this result.

In 2009, Skadar leased the 1,188 dwt barge Tovra to improve service efficiency. Following the successful introduction of the barge, Skadar leased the 3,264 dwt Dvina in April 2010.

Lukoil extends tanker lease

The Murmansk branch of Lukoil Bunker has extended the lease of the MAKA-owned tanker Desna tanker by six months as of March

2010. The company will continue operations with two bunkering tankers, Aginskoye and Desna.

Dan-Bunkering strengthens Russian links

Worldwide fuel supplier Dan-Bunkering says it is looking to intensify business in Russia, where it is already a major player on the Novorossiysk and Tuapse fuel markets. The company is considering further expansion of its Kaliningrad office, in order to meet increasing demand.

Dan-Bunkering says that its Kaliningrad office has particularly strong relations with Far Eastern Russian ports, which the office aims to develop further. “This position gives the client a first-class service and they can without doubt leave their Russian deliveries in our hands,� says managing director Henrik Zederkof.

St Petersburg

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GAZPROMNEFT MARINE BUNKER LTD The power of creation • H igh quality ISO 82172005 bunker fuel • F lexible prices • Q uality control from oil refinery plant to end user

• Main

sea ports of service: St. Petersburg, Primorsk, Ust-Luga, Kaliningrad, Murmansk, Vladivostok, Nakhodka, Posyet, Vostochniy, Novorossiysk • M ain river ports of service: Rostov-on-Don, Moscow, Yaroslavl, Azov, Kazan

Vasilyevskiy Island, 3rd line, 62A, St Petersburg, Russia, 199178 Tel: +7 (812) 449 4970 Fax: +7 (812) 449 4971 E-mail: bunkers@spb.gazprom-neft.ru

PORT NEWS St Petersburg market drops in 2009

The total volume of bunkers delivered in 2009 in St Petersburg port was 1.65 million tonnes, including 1.49 million tonnes of heavy fuel and 165,000 tonnes of light fuel. This shows a significant drop in activity of about 30% compared to 2008.

Lukoil Bunker was the market leader with 370,000 tonnes of fuel delivered. Second place was occupied by Gaspromneft Marine Bunker, which delivered 360,000 tonnes, the third was Baltic Fuel Company (established in 2008 after a merge of MBK and Contour) with 206,000 tonnes, then followed Nevsky Mazut with 170,000 tonnes.

Crisis over in Primorye ports

The crisis is over in Primorye – this much is clear from the list of vessels expected in the Primorye ports (Vladivostok, Nahodka and Vostochnys) in the first quarter of 2010. The major activities of these ports are coal, metals and lumber transportation – all of them bring-

ing sales to the bunkering market. Fishing boats leave port regularly, buying a significant amount of fuel and lubricants.

The price difference between Primorye and Singapore remains stable: bunkering in Primorye is cheaper by $50-60 per tonne in respect of fuel oil and by $90-100 for lubricants. Each vessel that calls is making the effort to buy the cheapest bunkering fuel in the Asia-Pacific region.

Despite this, the number of bunkers-only calls dropped significantly after several instances of quarantine pests on board calling vessels; the vessels had to spend several hours at the port to pass sanitary treatment.

Cutoms procedures posed another obstacle to the rapid bunkering of vessels making bunkers-only calls. A vessel may enter Vladivostok or Vostochny ports for bunkering on any day, but in Nahodka it may have to stay off the harbour for the whole weekend because the relevant customs office is closed. Bunkering companies have to notify the customs in writing about expected vessels to ensure that a customs officer will be assigned to handle the operation.

Market players expect that implementation of an electronic declaration procedure will make these delays a thing of the past.

Sales in St Petersburg dropped in 2009

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Physical bunker supplier to the following ports: Vladivostok, Nakhodka, Vostochny, Vanino, Sovetskaya Gavan, Muchke

Hogla Far East www.hogla.biz www.marinebusiness.ru Vladivostok Tel: +7 (4232) 455-400 Sovetskaya Gavan – Vanino Tel: +7 (42138) 4-43-48, 4-56-02 To get quotations please contact: Tel: +7-924-236-53-40 ICQ: 144310275 211901738 Yahoo ID: HOGLABUNKER MIKHAIL.Hogla Skype: michael197037 Msn: mshch@hogla.biz

ASSOCIATION NEWS Russian Association of Marine and River Bunker Suppliers stood up for market operators’ interests

The Court of Appeal has confirmed the Arbitrary Court of Moscow’s judgment on the admission of the Federal Anti-Monopoly Service’s (FAS) decision on oil spill response. As a result, FAS’ order that additional conditions imposed on oil spill response contractors in St Petersburg must be dropped has been confirmed.

The decision came in response to the Association requesting a FAS examination of orders from St Petersburg sea port authority concerning compulsory and additional certification of oil spill response teams working at the port. These orders were made following instructions from the Central Attestation transport Commission of Russia (CAC).

Until the middle of 2008, oil spill response at St Petersburg sea

port was performed by more than a dozen organisations certified according to Russian legislation. All oil spill response teams were certified by the interdepartmental attesting commission (MAC). But in May 2008 Rosmorrechflot and St Petersburg port administration required additional compulsory certification of oil spill response teams according to the procedure established by Transport Ministry of Russia.

FAS stated that establishing special requirements for oil spill response organisations had a negative impact on competition in the oil spill response market.

Rosneft Bunker and Neftehim Bunker join Association

The Russian Association of Marine and River Bunker Suppliers held its board meeting on March 25 in Petersburg. Two new members, RN-Bunker and Neftehim joined the Association.

RN-Bunker, a subsidiary of Rosneft, was founded in April 2008.

St Petersburg: Oil spill response regulations have been clarified

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Russian Association of Marine and River Bunker Suppliers unites leading companies working in 25 ports in all shipping regions of Russia.

• Information • Education programs • Consultations • Contacts • Working out of legislation in bunker sphere • Dialog with authorities

Russian Association of Marine and River Bunker Suppliers Tel: +7 812 718 47 36 Tel/Fax: +7 812 380 43 88 E-mail: info@mrbunker.ru Website: www.mrbunker.ru

It operates in Azov, Archangelsk, Astrakhan, Vanino, Vladivostok, Vostochny, Kaliningrad, Korsakov, Krasnoyarsk, Murmansk, Naberezhnye Chelny, Nahodka, Nizhniy Novgorod, Novorossiysk, Olya, Posye, Prigorodnoye, St Petersburg, Samara, Sovetskaya Gavan, Syzran, Rostov-on-Don, Tuanse, Ust-Kut, Habarovsk, Holmsk and Yaroslavl.

Neftehim was established in 2009 as a subsidiary of Neftehim Ltd. It carries out bunkering operations and other services in St Petersburg port and the north-western region of Russia.

According to Vitaliy Kovalev, Association president, members of the Association together control about 70% of bunkering services in Russian ports.

Russian Bunker Forum

The third Russian Bunker Forum, titled “Current Stuation and Perspectives on the Russian Bunkering Market” will be held in St Petersburg on 24-25 June 2010.

It has already became a tradition that forums organised by the Russian Association of Marine and River Bunker Suppliers are attended by the best professionals, high-ranking government officers, specialists from related industries; thus, discussions here are always interesting and productive.

This forum is dedicated to issues arising on the local bunkering market which are significantly different from those faced by Europe and the rest of the world. Many experts consider it the most interesting and useful event for the Russian bunker industry.

The Forum is supported by Gaspromneft Marine Bunker, LUKOILBunker, Transbunker, Infotec Flex, Russian Fuel Union and others.

The following issues will be discussed: • Industry performance during the world economical crisis – markets, trends, forecasts.

• Bunker fuel quality at Russian markets. Trends arising from growth of oil processing depth, reduction of sulphur content, other economic problems. Sub-standard fuel supply – legal and economic penalties.

• World quality standards and Russian technical regulations: “Requirements for motor and aircraft petrol, diesel and marine fuel, jet aircraft fuel and residual fuel oil”.

• Insurance of bunkering companies’ interests during crisis. Trends in relations between insurers and insurants.

• Arrears in payment. Failure to pay for bunker fuel. Debt collection, vessel arrest under relevant claims in different countries. Practical ways to solve problems arising from vessels arrests.

• Single-hull tanker phase-out in compliance with Annex 21 MARPOL. Current situation, problems and highlights.

• Open trading of oil products.

St Petersburg: location for the third Russian bunkering forum

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The leading Russian oil company – Going from strength to strength R

osneft, the leading Russian oil company, began its bunkering business in 2008. The company’s activity in this segment is carried out through two subsidiaries – RN-Bunker and Rosneft Marine – integrated as part of the parent company structure, and includes all main Russian bunkering regions, as well as several areas outside Russia.

RN-Bunker Ltd is a subsidiary of OJSC Rosneft – one of the leading vertically integrated oil companies to have emerged after the reorganisation and large-scale privatisation of the Russian oil industry – which possesses a huge network of oil infrastructure (factories, oil terminals etc), located in almost all regions of Russia. This enables RN-Bunker Ltd to have comprehensive control over the products’ movement from the refineries to bunkering vessels, and to ensure great attention to quality. Thus the company guarantees the availability of high quality products in all significant ports of Russia.

Operating for less than two years, the company’s bunkering business has developed significantly and continues to increase its presence both in the Russian bunker fuels market and internationally. In allocating its bunkering business to a separate subsidiary, Rosneft fulfils the following objectives: • Maximises the effectiveness of products sales through reduced expenses, balanced investments andincreased capitalisation.

• Delivers products to the end consumer, guaranteeing a high quality in accordance with the International standards and MARPOL rules, controlling product movement at all points of delivery.

• Expands the share of product sales though the private retail network, therefore providing a stable and highly effective market of bunker fuels in Russia and abroad.

The company applies high-level management standards, executes costs reduction and logistic expenses optimisation programs (90% of all RN-Bunker Ltd’s shipments are made on an FOB basis). It enables RN-Bunker Ltd to offer competitively priced fuel products to its partners in all regions in which the company operates. The process of bunker fuel delivery to the buyer is monitored throughout the entire logistic chain and this in turn reduces the time of enquiries regarding bunker performance.

Due to dynamic investment activity, the company is creating and developing its own infrastructure by leasing, buying and building oil terminals, tanker

Presently RN-Bunker Ltd has representative offices in Hakhodka, Vladivostok, Yuzhno-Sakhalinsk, Arkhangelsk, Murmansk, St Petersburg, Tuapse, Samara, Rostov and Astrakhan. This allows the company to make timely shipments of bunker fuel to buyers’ vessels and ensure that the quality of oil products delivered conforms to world standards. The company plans to open new representative offices in future, to expand its geographical reach. RN-Bunker Ltd. works in close cooperation with the Ministry of Defence of Russia in terms of fuel supplies for Navy vessels, and also with the world’s major oil companies: BP, RD Shell, Chevron, and Exxon Mobil.

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fleet and bunker fuel filling stations, the quality of which meet requirements of the highest international standards.

For the purpose of investment strategy realisation, the company cooperates with the Federal Agency for Fishery of the Russian Federation in the framework of port infrastructure creation, and with Rosnefteflot and Sovkomflot companies in the framework of tanker fleet acquisition and building. Currently, the company is negotiating with Rosnefteflot regarding the building of six bunkering tankers of 2,500-6,000 dwt.

RN-Bunker Ltd, along with the Federal Agency for Fishery of the Russian Federation, participates in the program for development of bunker fuel filling stations (BFFS) at the Russian fishery ports (Far East, Sakhalin, the Kurils, Kamchatka, Murmansk and Kaliningrad), as well as further construction to enable operation of all-season bunker fuel supply for fishing fleet. It is also involved in collecting, refining, separating and inclusion into bunker process cycle, oilcontaminated water and shipboard wastes.

In March 2010 RN-Bunker Ltd. became a member of the Russian Association of Marine and River Fuelers.

RN-Bunker Ltd. can provide the following sorts of bunker fuel depending on the region: • Far East region: IFO 180, MGO • North-West region: IFO 180, IFO 380, MGO, MDO, HS, LS • South region: IFO 180, IFO 380, MDO, MGO • North region: IFO 180, IFO 380, MGO, MDO, HS, LS • River bunkering: MGO, MDO Being highly experienced in the bunkering business and continuing to enhance its performance in this sphere, RN-Bunker Ltd pursues its main goal to develop a modern, dynamic, flexible and efficient company of international standing, determined to establish long-term mutually beneficial relations with its partners.

RN-Bunker LTD 115054, Dubininskaya Str. 31 A Moscow, Russia Tel: +7 (495) 755 5243 E-mail: rnbunker@rosneft.ru Website: www.rosneft.com Additional address: 117152, Zagorodnoe Route, bld.1, office 1001

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legal news

Legal Eagle

Intertanko and IBIA move to advise on Trieste’s fines for failure to use MGO

I

ntertanko has reacted strongly to a move by Italian port Trieste to fine vessels using fuels with a sulphur content exceeding 0.1% by mass with effect from 3 March 2010. Many owners and others in the shipping industry had assumed that there was some sort of period of grace before EU port state control authorities would enforce EU Directive 2005/33/EC. However, IBIA had warned the industry in early February that this was not the case.

IBIA chief executive Ian Adams said then: “We have heard various rumours, including one which suggests that the deadline for implementation of the EU directive has been postponed by six months. Nothing could be further from the truth. The directive came into force on January 1, and applies to all ships operating to EU ports. Ships are not exempt on the ground that the fuel changeover is unsafe because modifications have not been made to its boilers, or to the ship itself. Clearly in such cases the expectation is not that the ship should engage in an unsafe practice but simply that it will not berth. Similarly, there is no automatic dispensation for ships which have made arrangements to carry out the necessary modifications but have not yet implemented them.”

He added that although the European Commission has signalled its awareness of the potential dangers associated with the switchover to low-sulphur fuel while in port, and has recommended to member states that they enforce the regulations with a degree of flexibility for a transitional period in those cases where there is detailed evidence of the existence of an approved plan for vessel and/or boiler modification, the directive had nevertheless come into force and EU member states were obliged to enforce it.

It is now clear that Trieste is taking a tough line on the issue.

Intertanko says the port has stated that offenders will be prosecuted with fine of between E5,000 and 150,000, usually 30,000 for the first offence. There will be no further exemptions allowed and those that had been granted have now been cancelled.

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Intertanko claims: “This means that ship and port safety may be sacrificed purely in order to generate local harbour funds.”

The tanker industry body notes that Trieste Port does go on to say that a reduction of the fine may be requested according to the European Recommendation (2009/1020/EU of 21.12.2009) within 30 days from the notification of fine, showing evidence of steps taken by shipoperator, class and boiler manufacturer to complete the work of enabling the vessel to burn fuel according to the EU Directive.

However, Intertanko cautions, once a fine reduction application has been submitted, Trieste Port points out that the supporting documents are subject to evaluation by the officer on duty. If the evidence produced is considered insufficient to merit a reduction of the fine to the minimum, then the fine could rise to the maximum set by law – E50,000.

Moreover, if a vessel which has been fined calls at Trieste again without being in compliance with the EU Directive in question, the vessel, its owner/operator and its master will be banned from entering all Italian ports.

In Intertanko’s view, ships which are not yet modified to use 0.1% sulphur MGO, and which do not receive permission to consume lowsulphur HFO in their boilers, have three possible courses of action, all of which penalise the owner/operator for headlining safety: • they may choose to use 0.1% MGO and do their utmost to manage the associated risks; • they may emphasise safety and use low-sulphur HFO in their boilers but face prosecution and fines; • they may simply refuse to call at Trieste until modifications have been completed.

In its advice, IBIA said that “the expectation is not that the ship should engage in an unsafe practice but simply that it will not berth”.

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PREVIEW

Posidonia

Posidonia expects another bumper year, with major participation from the East

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rganisers, exhibitors and delegates are getting ready for what is always one of the largest – and the busiest – events on the maritime calendar. While there have been immense changes in the two years since the last Posidonia – held at the height of the boom in 2008 – the optimism of the organisers remains undimmed. And, as the maritime economy is increasingly showing signs of recovery, there is plenty to drive the partying [that is, networking] that is a major feature of Posidonia week.

There will be a strong presence from the petroleum products industry representing oil, bunkering and lubricants companies.

Exhibitors from this section include first timer Avin Oil, Castrol Marine, which returns after several years’ absence, and repeat exhibitors Petrobras, Chevron Global Marine Products, Aegean Oil with partner Gulf Oil Marine, and also Elinoil and ETEKA. Chevron Global Marine Products’ general manager Phil Bourgeois said: “As one of the world’s leading marine fuel and lubricant suppliers, we’re delighted to be exhibiting at Posidonia this year again, as it is a key event for us. It gives us a chance to meet with both the Greeks and the wider shipping community.”

Castrol Marine is also sponsoring the Ship Soccer Tournament on 6 June, one of the three major parallel sporting events organised during the Posidonia week. Others are with the well established Lloyd’s Register sponsored Posidonia Sailing Cup and the eagerly awaited inaugural Golfplay Tournament. The Golf Tournament, to take place at the Glyfada golf course, is a new event in the Posidonia programme, and has been a long-standing request of both exhibitors and visitors to the exhibition.

As the main drivers behind the recovery, much of the attention is expected to be on attendees from India and China. Both countries are sending their largest delegations yet to the event. According to the organisers of Posidonia, the pace of growth of the two economies is estimated to continue unabated and their insatiable appetite for energy and commodity resources, and strong export outlooks are

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likely to increase demand for seaborne trade, curbing overcapacity concerns on certain trade lanes.

“Every two years Posidonia is the barometer of global shipping trends, reflecting the sector’s pace of growth and prevailing sentiments in boardrooms across key shipping markets worldwide,” said Nana Michael, managing director, Posidonia Events S.A. “At Posidonia 2010, the world’s maritime community will examine the impact of the global financial meltdown on seaborne trade, ports, logistics and newbuildings,” she said. “With its first-ever National Pavilion, India signals significant growth potential for the international shipping industry as the subcontinent powerhouse’s economy continues to project handsome 9% growth rates for 2010,” said Michael. “China, a traditional Posidonia heavyweight, will also surpass previous appearances by staging two national pavilions for the first time at Posidonia 2010.”

The Asian domination of world shipbuilding’s fortunes will further be highlighted at Posidonia 2010 with the large-scale participation of Japan, Korea and Singapore and the stand-alone presence of some of the region’s largest shipyards. At the time of writing, the combined Far East presence at Posidonia 2010 is already 45% larger than in the 2008 Exhibition, emphasising both the importance of the region and the amount of business they expect to be conducting.

The Middle East will also have a strong presence, says Michael: “We are seeing many new bookings in floor space from both the private and government sectors in the Middle East, with Oman Dry Dock Company and Sharjah and Hamriyah Free Zone Authority as examples.

Some 20,000 trade visitors are expected to attend the exhibition, breaking the previous record set in 2008. This number is likely to grow as the world is emerging from the recession, with many of them expected to focus on three key growth areas: shipbuilding, ship equipment and service industries. Organisers also expect to welcome more than 1,700 exhibitors from 80 countries.

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IBC CONFERENCE REVIEW

Mission impossible?

The 31st International Bunker Conference concentrated on getting one step ahead of the regulators

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ver the last couple of years, the IBC bunker conference has taken on a reputation as one that seeks to deal with the issues that the industry will face in the near future, rather than those that are already on its doorstep. This year was no exception. Taking ‘Mission impossible’ as its theme, the conference set out to explore the disconnect between the challenges posed by current and pending legislation, and the technology available to meet it.

Opening the conference, former IBIA chairman Fritz Fredriksen – now something of a poacher turned gamekeeper as conservation officer in charge of Arctic shipping at WWF – pointed out that there has been a huge rally in legislation governing the bunker industry, with more to come, while technology is lagging behind.

Conference chairman Tore Morten Wetterhus, ceo of DNVPS, agreed that regulations would be the greatest driver of change, with the most significant regulations still being those laid out in MARPOL Annex VI. “Where you force change, there will be reaction,” Wetterhus said. The aim of the conference was to set out what form this reaction might take. Wetterhus emphasised that there is no one single solution to the problem, and that it is important to have lots of options to pick and choose from.

Cutting down on CO²

By the end of the conference, attendees would have been very familiar with the slide representing the introduction of MEPC sulphur limits, which appeared in a number of presentations. However, while the timetable for the sulphur control is well-established, many of the speakers focused on the need to reduce other emissions, in particular CO², and mechanisms to do so. As IBIA chief executive Ian Adams warned: “If progress on MAPOL Annex VI is anything to go by, we’ll get an agreement on greenhouse gases sooner rather than later.”

Thor Jorgen Guttormsen, president of the Norwegian Shipowners Association, pointed out the full scale of the challenge facing ship-

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ping. With world population predicted to grow from 6 to 9 billion by 2050, the shipping market will need to expand dramatically at the same time that it is expected to cut its emission levels to a fraction of what they are today. “It is easy to see the negatives in this, but with trillions of dollars to be invested, there must be opportunities,” he said.

Guttormsen was optimistic about a possible changeover to distillates, saying that “no shipowner would be against better quality fuel. The cost should be passed on to the end consumers”. However, other speakers pointed out that this was easier said than done, with Wilh Wilhelmsen’s Svein Sorlie saying that this approach “grossly underestimates the complexity of the shipping market”. Moreover, Sorlie said, shipowners were often seen as best-placed to absorb the extra fuel costs, even where this was not in fact the case.

So far, Guttormsen said, shipowners “haven’t done a lot” to address the CO² issue, but there is a great deal that can be done.

“Operationally, I think we can easily save at least 10% of CO² – Hoegh did so last year, and will do so again this year.”

Theory and practice

A session on Friday morning was devoted to looking at precisely how companies are achieving these reductions – though some of them might not have agreed with the ‘easy’ definition. Jan Otto de Kat, Head of Innovation at AP Moller-Maersk, said that between 2007 and 2015, Maersk Tanker is aiming for a 15% reduction on CO² per tonne/km, while in the container sector, Maersk Line is looking at a 20% reduction per teu/km. Achieving this goal, however, will mean that ships need to be optimised in every sense, including ventilation and generation systems, trim calibration and waste heat recovery mechanisms. Above all, though, it is speed that will make an immense difference. In a study carried out on containerships, Maersk concluded that is was not feasible to obtain a 30% CO² reduction without reducing speed. An 11-14% reduction in emissions was the

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best possible result whilst operating at the design speed of 25 knots.

However, if the speed were lowered to 23 knots, savings of 30% could be achieved.

Svein Sorlie, group senior vice president at Wilh Wihelmsen, also emphasised the importance of slow steaming in any attempt to cut emissions, saying that “speed reduction is one area that could give immediate reduction of emissions.

“From our point of view, one weakness of the EEDI is that vessels operating at high speed can continue to do so – it will have a much greater effect on slower vessels,” he continued. “From an environmental point of view, it is much better to introduce speed limits at sea. However, we need to discuss how they could be phased in without causing unacceptable havoc.”

Bringing down speed also makes other forms of propulsion more viable, including the introduction of wind power, and fuel cells. For the moment, though, these remain experimental, with Bjorn Stigner, manager of tanker chartering at Stena, admitting that the large solar panel on the company’s new, fuel-efficient handymax design was “really just to show off”. The changes that reduce average fuel consumption at 14 knots from 33 tonnes of bunker fuel per day to 24 are the result of ‘tweaks’ to the design. Introducing small design changes to optimise ship performance is something that shipyards are increasingly willing to do, as the slowdown in orders makes them more willing to accept changes to the standard, he said.

A design revolution?

Both Intertanko’s Dragos Rauta and Sveinung Oftedal, senior adviser to the Norwegian Ministry of the Environment, pointed out that changing regulations will have an increasing impact on tanker design.

Sveinung Oftedal said that, while there is not currently any legislation concerning the design index, environmental regulations are only going to get tighter. Given that ships built from 2020 onwards could well still be operating in 2050, ships being designed and tested now will potentially need to meet much higher standards.

Rauta focused on the practical changes that will be needed, saying that the prevailing tanker construction mode – with one or two large bunker tanks – will need to be replaced with the capacity to carry three of four different fuel grades.

However, while larger changes may be in the pipeline, from now until 2015, Rauta pointed out that “fuel will be the main means for compliance”.

As a result of that, he said, “responsibility for compliance and control should not be left with the ships”. In practical terms, this would mean that: • IMO should have a register of local suppliers

World Bunkering Summer 2010

• Bunkers should be checked before supply • No onboard blending during delivery, as this removes any guar-

antee of compliant fuel.

Not the enemy after all?

The changing attitude of business was something that was emphasised by many speakers, not least Rasmus Hansson, secretary general of the World Wildlife Fund. “When I started in environmentalism, business was the enemy. That is changing,” he said. Businesses are seeing self-interest in changing their ways, and they are the ones who are able to make changes – and are doing so, he said. He also explained the reason for what is seen as environmentalists’ sometimes disproportionate interest in shipping, which is that it offers a solution – but in order to be a solution, it has to be done right.

All this should rather have appealed to the audience, several of whom had solutions to sell, and many of who represented companies that are already making efforts to reduce carbon emissions. Thrown in casually on the final slide, however, was one further aim of the WWF – a total ban on the use and tank storage of HFO as a fuel for ships, in order to reduce marine pollution – that was less likely to win the approval of many of those attending the conference.

The future of HFO?

This suggestion was taken up by James Corbett of the University of Delaware, who suggested that the global shipping sector faced three likely scenarios: • No more use of residual fuel at all • A full-scale revival of residual fuel as technology allows shipping to use it in a clean manner, and/or business interests trump environmental concern in some areas • Residual used in some geographic areas only.

He pointed to modern trends for rapid growth in the area of middle distillate production, while the production of fuel oil has hardly grown at all, and in the US has been steadily declining to the point where it makes up no more than 3% of the barrel, despite an increase in shipping activity. On current projections, it looks as if there will be enough ultra low-sulphur fuel available to meet ECA requirements when the US introduces them, but Corbett doubts whether there will be enough available to allow shipping to meet the 2020 target of 0.1% sulphur worldwide unless something changes.

So what came out of the conference? After lively debate from every corner of the shipping industry and from the regulators, the consensus seems to be that the industry can and should set ambitious goals in terms of emissions – it shouldn’t wait for the regulators.

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equipment and services

Equipment and services A round-up of news for the bunker industry – what’s new, what’s useful, what’s changed?

Veson launches fleet-level bunker management

US-based Veson Nautical has launched its IMOS6 Bunker Management module as part of its Integrated Maritime Operations System. The company says the module is tailored to the business needs of specialists, charterers, and bunker managers, adding fleetlevel visibility to existing vessel-level capabilities to optimise fleetlevel purchase strategies and financial results, and provide bunker decision and process support.

“After reviewing customer input and assessing current requirements, we expanded the existing features and tools to encompass fleet-level capabilities,” explained John Veson, president of Veson Nautical. “Operational efficiencies for the entire fleet, not just per vessel, means that specialists and bunker managers have access to crucial bunkering data, enabling them to make better informed decisions to negotiate better pricing. This can greatly impact the bottom line.”

The company claims that, because with IMOS6 Bunker Management purchasing processes are automated and provide fleetlevel purchasing data decision-making can be improved. The system automates the bunker request process from individual operators or vessels, so staff can respond to bunker requirements across the entire fleet.

Piracy holds up Ecospec tests

Ecospec, the makers of a revolutionary scrubber that its makers claim removes CO2, NOx and SOx from emissions, says that the danger of

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pirate attacks in the Gulf of Aden has delayed type approval testing on the system.

The company presented the results from the first shipboard trials to delegates attending IMO’s Marine Environment Protection Committee. Tests using 380 cSt fuel oil with 3.64% sulphur content showed a minimum removal efficiency of 76.5% of CO2, 98.6% of SO2 and 54.5% of NOx. This confirms results from onshore tests carried out in autumn last year.

The system was installed on board aframax tanker White Star, owned and operated by Tanker Pacific, in December 2009, with the first tests taking place in January this year. Tests were carried out over three cycles to ensure repeatability, and were verified by ABS and Singapore MPA. Representatives from both organisations were at the presentation, and confirmed the success of trials so far.

Type approval, however, is still some time off, and Ecospec were unable to give a firm date for this, saying only that the period of type approval testing, to be determined by MPA, has yet to be settled.

The White Star is currently on charter involving transiting the Gulf of Aden, and tests have been suspended until the vessel is in safer waters.

There was some scepticism from attendees about the total carbon footprint of the scrubber. However, the only consumables are magnesium electrodes, said ceo Chew Hwee Hong. The amount of CO2 used in production of one magnesium rod was equivalent to 0.6% to 0.8% of the CO2 it will remove over the course of its use.

World Bunkering Summer 2010

Ensolve OWS completes MEPC testing

US-based EnSolve Biosystems says it has completed and passed the MEPC 107(49) certification tests for its new compact PetroLiminator 200M (PL 200M) Oil Water Separator (OWS) system.

EnSolve’s president, Jason Caplan, said: “We are very excited about this new product for many reasons. First, it has an attractive price point that allows us to compete with almost every OWS product on the market. Second, it has a very small footprint, thus permitting installation on any class vessel, including work boats, tugs, ferries and luxury yachts. And third, the effluent quality and process throughput are exceptional.”

The company says that its patented PetroLiminator system is the first and only marine OWS that uses a combination of physical and biological means to treat oily bilge water. Like its PL 630M predecessor, the PL 200M OWS system incorporates safe micro-organisms to consume hydrocarbon wastes in the ship’s bilge water, so treated bilge water can be safely and legally discharged overboard. It treats both pure and emulsified oil, as well as detergents, degreasers and other chemicals in the water.

The larger version of PetroLiminator is already in use on a wide range of vessels.

MOL develops PM filter

Japanese shipping group Mitsui OSK Lines (MOL) says that, together with Akasaka Diesels, it has developed a diesel particulate filter (DPF) for vessels using marine heavy fuel oil.

According to MOL, tests showed that the device removed more than 80% of particulate matter (PM) from diesel emissions. A DPF was installed on the main engine of an MOL Group-operated coastal ferry, the Sunflower Kogane.

MOL says: “This test marked the first successful use of a selfregenerating DPF on a large vessel using marine heavy fuel oil.” The 9,710 gt, 9,267 kw Sunflower Kogane is operated by MOL subsidiary Diamond Ferry Co. The DPF includes filters made of silicon carbide ceramic fibres, which remove PM from the exhaust. An internal heating system automatically burns off accumulated PM in the filter to eliminate clogging. This is said to eliminate the need for cleaning by crew and allows the filter to be used continuously.

A statement says: “Following the success of the experiment, MOL and Akasaka Diesels will further upgrade the DPF to ready the device for practical installation on diesel main engines and auxiliary engines of large-scale ocean-going vessels.”

Rigaku launches sulphur gauge

US-based Applied Rigaku Technologies Inc says its newly launched NEX XT is the next generation process gauge for high-level sulphur measurement (0.02% to 6% S) of crude, bunker fuel, fuel oils, and other highly viscous hydrocarbons, including residuums.

Rigaku says that the “versatile, compact and robust” X-ray Transmission (XRT) process gauge is specifically optimised for the sulphur analysis needs of refineries, pipelines, blending operations, bunkering terminals and other storage facilities. Applications for the NEX XT include bunker fuel blending to meet MARPOL Annex VI sulphur restrictions, interface detection of different grade fuels delivered via pipelines, refinery feedstock blending and monitoring, and the quality monitoring of crude at remote collection and storage facilities.

Rigaku says its equipment is engineered to be fully compatible with the high pressures and extreme temperatures employed in transmission pipelines and blending operations. Among its other key features are a simplified user interface, automatic density

World Bunkering Summer 2010

compensation, automatic water compensation, password protection, and standard platform for communicating sulphur, density, and water content to a plant-wide DCS. LR to test biofuel suitability

Lloyd’s Register (LR) says that is to play a major role in a two year programme to test the suitability of biodiesel for use in powering marine engines. The feasibility study will take place on board the Maersk Line container ship, Maersk Kalmar.

An LR statement says that the biodiesel FAME (fatty acid methyl esters) used for the test will be based on sustainable crops grown in temperate regions or reused oils. This would appear to be aimed at deflecting growing criticism of bio-fuels on the grounds their use stimulates increased palm oil production at the expense of rain forest.

Initially, the scope of the tests will involve using a blend of between 5% and 7% biodiesel, with the blend percentage being steadily increased.

“One of the aims of the tests is to establish the degree to which issues experienced by the automotive industry in the use FAME, will be duplicated on board ship, in particular the impact on storage stability, handling, and its subsequent use in the engine. Where adverse effects are arising it is hoped to find solutions to overcome them,” says Kim Tanneberger, a specialist in LR’s Strategic Research Group (SRG).

Collaborators in the biodiesel project are Maersk Line, Maersk Tankers, Maersk Supply Service, Maersk Drilling, Maersk Ship Management, Lloyd’s Register’s Strategic Research Group, and a consortium of Dutch subcontractors. The project is being part funded by the Dutch government and coordinated by Maersk Maritime Technology (MST).

LR says that, in theory, FAME can be used in pure form as an engine fuel but it has a number of shortcomings as a fuel, putting aside the high costs and limited availability compared to petroleum derived fuels. Problems include: • storage stability • adverse reaction of materials to it (acidity, surfactant properties of FAME) • susceptibility to microbial growth • adverse effects on instrumentation of the bilge water system • poor cold flow properties (cloud point and pour point) • impact on the level of NOx emissions emitted • variation of quality of supply worldwide, depending on feedstock.

“Exploring the behaviour of our engines and storage tanks and knowing the change in air emissions by using FAME blends on board will give us valuable knowledge of the opportunities and challenges,” says Lasse Kragh Andersen, senior environmental specialist at Maersk Maritime Technology.

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ADDAX BUNKERING SERVICES

GAZPROMNEFT MARINE BUNKER LTD

PENINSULA PETROLEUM LTD

AEGEAN MARINE PETROLEUM

GIBRALTAR PORT AUTHORITY

PETROL OFISI AS

ALBA PETROLEUM LTD

GLOBAL SURVEYORS & TECHNICAL INSPECTORS

PETROLEO BRASILIERO S.A. – PETROBRAS

ASMIRA PETROL BUNKERING LTD

ISLAND BUNKER OILS LTD

PETROLEOS DE PORTUGAL

AUSTRALIA BUNKERING PTY LTD

ITE GROUP

PORT AUTHORITY OF ALGECIRAS BAY

BUNKER FUEL COMPANY LTD

LUKOIL BENELUX BV

POSIDONIA EXHIBITIONS SA

BGK BUNKERS

LUKOIL-BULGARIA BUNKER LTD

ROSNEFT-RN-BUNKER LTD

C-FUELS AMERICA INC

LUKOIL BUNKER ISTANBUL

SEARIGHTS MARITIME SERVICES PTE LTD

CAPRICORN MARINE SERVICES LTD

MAMIDOIL-JETOIL INC

SOLARC INC

CARMELO CARUANA CO LTD

MARINE BUSINESS DV

SULLIVAN SHIPPING AGENCIES

CEA BUNKER PTE LTD

MARITIME INFORMATION SYSTEMS

TNP-BUNKER LTD

CEPSA MARINE FUELS SA

MASTER PETROL URUNLERI TIC VE TAS AS

TRANSOIL BUNKER

CUROIL NV

NEFTEHIM LTD

VILMA OIL SL

CYE PETROL

OIL MARKETING & TRADING INTERNATIONAL

EKOTEK LTD

P.L. PISANO & CO SRL

For more information on these companies and to view this publication online using the innovative Page-Turning technology, visit:

www.worldbunkering.com

Company News

CYE Petrol, Istanbul

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YE Petrol Tic Ltd Sti is a physical bunker supplier in Istanbul, and was founded in May 1988 by C. Yalçın Eraydin. The company has been supplying MGO and IFO grades in Turkey since 1992. The CYE Petrol bunker terminal is located in the Gulf of Izmit at Poliport, convenient for supplying bunker via Istanbul roads.

All grades of high quality marine products are prepared with in-tank blending and line blending facilities. CYE Petrol is one of the most qualified bunker suppliers, with more than 20 years’ experience and over 35,000 bunker supplies in Istanbul.

Bunker deliveries are managed professionally by a bunker barge fleet under CYE Petrol’s control. In 2006 the company decided to reshape the bunker barge fleet according to demand from a growing bunker market in Istanbul and Black Sea ports. The number of bunker barges was decreased in 2007 and instead, well equipped bunker barges with greater technology and better performance were introduced. This gave the company the advantage of being able to supply higher quality product to more vessels, with larger volumes, and in the most time efficient way.

Considering the demand for higher quantity fuel oil, mostly from container lines and cruise lines in Istanbul, in 2007 CYE Petrol put into operation the biggest bunker barge in Istanbul, the M/T BEBEK-E. It has a 3,300 cu m capacity with a 650 mt/hour pumping rate. M/T BEBEK-E complies with the Undersecretariat of Maritime Affairs’ declared new regulations for safety and operation standards, according to MARPOL 73/78 Agreements, ISPS Code and SOLAS Amendments 2002.

In 2009, necessary modifications were completed to provide segregation of low-sulphur materials in the bunker terminal and bunker barges, and in February 2009, CYE Petrol started storing and supplying low-sulphur MGO (0.1%) from its bunker terminal.

In Poliport terminal, cargo discharges are professionally managed by Caleb Brett or SGS surveys. Bunker quality is determined according to Caleb Brett analysis reports. Only after their approval is the cargo discharged to the shore tanks. Buyers’ requested quality is prepared using a computerised blending facility. Again, bunker barge

loadings are handled by Caleb Brett surveyors. There is close inspection at every level to ensure the quality demanded.

The company bunkers in all of Istanbul ports, in the Sea of Marmara (Bandırma, Mudanya, Gemlik, Tekirdağ), the Black Sea coast of Turkey (Karadeniz Ereğli, Bartın, Zonguldak), and naturally in the Gulf of Izmit (Derince, Yarımca, Hereke, Gebze etc).

CYE Petrol Tic Ltd Sti holds the physical bunker supplier licence of EPDK (Energy Market Regulatory Authority), no: IHR/482-4/11098, which extends until the year 2020.

Additionally, the company acts as a trader in other Turkish ports and around the world for supplying bunker fuel.

Deniz Eraydin General Manager CYE PETROL / ISTANBUL Tel: +90 216 345 47 00 Fax: +90 216 330 50 68 E-mail: cye@cyepetrol.com.tr Website: www.cyepetrol.com.tr

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Company News

Port of Algeciras Bay

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he Port of Algeciras Bay – Spain’s number one port – is located in an exceptional geo-strategic point. On the crossroads of the world’s main cargo shipping lanes, our Port is made up of a ‘hub’ platform in the west Mediterranean for container transhipment.

Our traffic evolution over the last few years has allowed us to become one of the main Mediterranean ports, both in total throughput and container handling. In 2009, the Port of Algeciras Bay handled 69.87 million tonnes total throughput, as well as 3.04 million TEUs. In order to be able to guarantee the necessary port infrastructure to meet traffic growth, the Port of Algeciras Bay Authority, which manages the ports of Algeciras, La Línea de la Concepción and Tarifa, continues to be strongly committed to developing our facilities. The new infrastructure on Isla Verde Exterior and Campamento – currently in full swing – will together provide more than 200 hectares of new port surface area. Projected by following a strict model of sustainable growth, the above infrastructure indicates the intermodal and logistical nature at the heart of the main port on the Strait of Gibraltar, complemented by improvements to road and rail communications.

Ro-ro cargo is another pillar of the Port of Algeciras Bay’s strength. The proximity of Africa has given a leading role to the Bay of Algeciras, enabling it to serve as a sea-bridge between Africa and Europe. In 2009, 4.85 million passengers crossed this bridge.

The Port of Tarifa has likewise contributed to a wider range of services on offer: through the commercial developments witnessed over the last few years, more than one million passengers were able to use its facilities to cross the Strait of Gibraltar.

Supplies are another of the most notable of the Port of Algeciras Bay’s traffic types. In 2009, more than 3.38 million tonnes of goods were supplied – 2.52 million of which were petroleum products. This service makes up part of a global range of services: fuel supply to vessels at berth and anchor, repairs afloat or at dry dock, waste oil collection and treatment, lubricant supply etc.

One of the main challenges facing the Port of Algeciras Bay is the construction and commissioning of the main development taken on board in our history: Isla Verde Exterior. Having completed the first two phases of work in record time, the third phase is scheduled for completion by the end of 2010.

The oil terminal, soon to be commissioned by Alpetrol Terminal S.A., consists of a plot of land of six hectares with a total capacity of 400,000 cubic metres. Alpetrol will be the third bunker operator

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together with Cepsa and Repsol. As approved by the Port of Algeciras Bay Board of Administration, the maximum shareholder will be VOPAK, the world’s largest oil product storage company. There are currently five bunker barges operating within the port waters.

The Port of Algeciras Bay Authority (APBA) launched an international tender to build and run a new container terminal on Isla Verde Exterior. As a result, Hanjin Shipping Co. Ltd. – the South Korean corporation – was awarded a license to run Phase A of the above mentioned terminal, where its subsidiary company – Total Terminal International Algeciras (TTI-A) – is set to start operations on 27 April 2010. The Asian shipping company has also won right of first refusal on the license for the new Phase B. Both phases together provide a 1,900 metre berth line, with draughts from 18.5 to 17.5 metres depth, and a levelled area totaling 72 hectares.

The ro-ro terminal to be started up in 2011 is another important project set to convert Isla Verde Exterior area into almost a whole new port for the Bay of Algeciras.

The vocation of our Port, apart from the objectives noted above, is to strengthen our commercial ties with the international port community hand-in-hand with COMPORT, the association of port service companies that works for the promotion of the Port of Algeciras Bay through activities drawn out in its Commercial Plan of Action.

2009 main traffic figures: • Total throughput (tonnes): 69,867,404 • TEUs: 3,042,759 • Passengers: 4,848,427 • Vehicles: 1,401,241 • Number of vessels: 24,853 • Liquid bulks (tonnes): 20,105,761 • Solid bulks (tonnes) 1,745,398 • Supply (tonnes): 3,375,641 • Oil products: 2,520,571 For more information, visit the Port of Algeciras website: www.apba.es For more information about the Port of Algeciras Bay private operators: http://webserver.apba.es/portal/page?_ pageid=390,173222&_dad=portal&_schema=PORTAL.

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Company News

Rosneft

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he bunkering business of Rosneft, the largest oil company in Russia, incorporates two subsidiary companies – RN Bunker and Rosneft Marine – integrated as part of the parent company structure. Rosneft coordinates fuel deliveries for bunkering operations from the company refineries and offers transhipment, storage, production and storage capacity at the company’s own terminals in Nakhodka, Tuapse and Arkhangelsk. RN Bunker ensures logistics and manufacture (blending) of bunker fuel, rents and charters the bunkering tanker vessels, performs trading operations in the domestic market and arranges fuel deliveries to foreign shipowners. The company operates in strict compliance with all bunkering regulations and rules; the products delivered match ISO 8217:2005 standard. Opening of the company representative offices in Nakhodka, Arkhangelsk, Tuapse and St. Petersburg and, later, in other cities will facilitate rapid physical deliveries to the customers onboard, ensuring the fuel quality control and a personal presence during sampling and measurements.

Rosneft Marine is the company established for the purpose of Rosneft bunkering business development abroad. The company’s areas of activity include offshore bunkering in the Baltic and Mediterranean Seas and in the Far East, as well as fuel deliveries to the fishing fleet both in the Pacific and the Atlantic. Rosneft started the bunkering business development programme in 2007. Currently the company delivers a wide range of petroleum products (IFO-380 cSt HS/LS, IFO-180 cSt, MGO, MDO), owns and operates 12 petroleum products delivery and reception terminals and 36 bunkering tankers. The company ensures its presence in the key regions in the three oceans and nine seas. Monthly volume of deliveries exceeds 100,000-130,000 tonnes.

World Bunkering Summer 2010

Rosneft applies the highest standards of governance to all its bunkering services, and implements the accounting systems for the actual fuel movement, storage and issue to the bunkering tankers, providing monitoring across the entire logistics operation, and thus ensuring the rapid processing of orders from inquiry to BDR. The company business development strategy assumes building the company’s own tanker fleet. Feasibility studies for 2,500 to 7,000 dwt tanker designs are underway. All vessels will be built in compliance with MG MARPOL 73/78 requirements, ISGOTT regulations as well as the international and national guidelines and rules.

Vertical dispatch and coordination of all infrastructural elements of Rosneft bunkering business provides the synergy that the company will use to optimise business processes and achieve the following set goals: • To be integrated into the global bunkering market, soon to exceed 400 million metric tonnes per year (mmty); • To increase the attractiveness of the Russian ports; • To ensure a stable and regular products sales market, independent of seasonal priorities; • To increase sales efficiency through retail.

Rosneft plans to constantly increase the volumes of bunkering sales and to expand and maintain its marine and river bunkering presence to 25-33% in the various regions, as well as to reinforce its position in the global market. These projections are based on the rapid growth of the Russian transport infrastructure, with the upgrade of port facilities and construction of new terminals resulting in the increase of general and transit cargo transhipment and the number of port calls in the Russian ports. Another factor, in addition to expansion of cargo turnover through the Russian ports, that would influence the bunkering volumes, would be the high quality of fuel and services, replacement of the outdated bunkering fleet and many other things to make the Russian market more attractive.

The strategy of Rosneft bunkering business development assumes the increase of bunkering sales to 3-5 mmty by 2010, and by 2020, when the overall Russian bunkering market achieves 50-60 mmty, the company plans to sell the order of 15-16 mmt of fuel.

RN-Bunker LTD 115054, Dubininskaya Str. 31 A Moscow, Russia Tel: +7 (495) 777 4601 Fax: +7 (495) 231 4010 E-mail: rnbunker@rosneft.ru Website: www.rosneft.com Additional address: 117152, Zagorodnoe Route, bld.1, office 1001 Tel: +7 (495) 755 5243

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Company News

LUKOIL BENELUX B.V. set to sustain strong presence in ARA

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UKOIL Benelux B.V. is a prominent and reliable physical supplier of bunker fuels in the ARA region (Amsterdam-RotterdamAntwerp). We are supported by the logistic and financial strengths of the parent company LITASCO SA in Geneva, Switzerland.

LUKOIL Benelux B.V. is part of the Russian oil major LUKOIL, which also has wide-scale operations outside of Russia.

Our clientele varies from the well-known large and medium shipping lines to other physical suppliers and the smaller niche companies from different sectors. In the last couple of years, LUKOIL Benelux B.V. has had a market share of 10-15% in our home market of the Rotterdam and Amsterdam ports. Since September 2009 LUKOIL Benelux B.V. has supplied bunker fuels to the Belgian port of Antwerp from the refinery TRN (Total Raffinaderij Nederland) in Flushing, where the LUKOIL Group purchased a 45% stake this year.

We are also planning to receive a bunker license for our operations in Antwerp in the first half 2010. In addition to the ARA region, we are also active in the Baltic Sea, Black Sea and Mediterranean Sea. Our company is planning to get on a firm footing with its bunker supplies in a number of the European ports. In the last two years, LUKOIL Benelux B.V. has also been successfully targeting the Russian northern ports of St Petersburg, Kaliningrad, Vysotsk, Primorsk and Murmansk, supplying bunker fuels to a wide variety of shipping companies.

Since 2005, LUKOIL Benelux B.V. and our partner Burando have been jointly operating Service Terminal Rotterdam, which enables LUKOIL Benelux B.V. to store and blend fuel oils to necessary specifications. Currently, new storage tanks are being constructed at STR, which will significantly increase total storage capacity of the terminal.

The new tanks are expected to become operational by the end of 2011. Having our own terminal and purchasing almost all of our bunker fuels from our parent company LITASCO gives us a competitive advantage in the saturated market with slack demand. Due to this competitive advantage LUKOIL Benelux B.V. is in a position to design and implement flexible delivery strategies.

LUKOIL Benelux B.V. expects to continue to flexibly develop its bunkering activities, despite the recent financial crisis. We are closely monitoring the situation in the market and are ready to implement necessary changes to sustain the growth of our business. As an example, our Amsterdam office has been focusing on the specific niche markets such as the fishing industry and deliveries by trucks all over the Netherlands.

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As a supplier of a wide range of grades, we receive bunker enquiries and provide quotations for the products IFO 700, 600, 500, 380, 240, 180, 120, 80, 60, 40, 30, 20 cSt, MDO DMB and MGO. We can also make other products available upon your request. In order to ensure quick and timely deliveries of our products to seagoing vessels or to other physical suppliers, we currently have a fleet of seven timechartered barges with deadweight ranging from about 686 MT to 6,130 MT. They include several new double-hull barges with greater bunkering capabilities, provided for us by FTS Hofftrans, the barge operating company of our partner Burando. Should we require a greater capacity, we have the option of hiring other barges for spot deliveries in the range from 500 MT up to 9,200 MT with alternative reliable transport companies in the ports of Rotterdam and Amsterdam.

Our team of bunker traders and operators has all it takes to become and remain your reliable partner: experience, expertise and thorough knowledge of the bunker markets. They are friendly and available for your enquiries 24 hours per any day. LUKOIL Benelux B.V. will gladly look into your enquiries for the regions where we have been actively operating, as well as for any other regions in the world.

We look forward to your bunker enquiries and hope to do business with you soon.

Benelux B.V. Main office (Rotterdam area) Office address: De Linie 1, Capelle aan den IJssel, NL-2905 AX, The Netherlands Post address: PO Box 377, Capelle aan den IJssel, NL-2900 AJ, The Netherlands Tel: +31 10 264 27 00 E-mail: Bunkers@lukoil.nl Amsterdam office Office/Post address: Le Mairekade 77, Amsterdam, NL-1013 CB, The Netherlands Tel: +31 20 684 42 99 E-mail: Bunkers@lukoil.nl

World Bunkering Summer 2010

Company News

CUROIL celebrates 25 years of fuelling on land, in the air and at sea

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uraçao, the largest island in Dutch Caribbean, is home to bunker supplier, Curoil. Th e Dutch Caribbean draws its name from the islands’ longstanding social and political relationship with the Netherlands. Other islands in the Dutch Caribbean are Aruba, Bonaire, St Martin, Saba, and St Eustatius. Curaçao is home to people of different cultural backgrounds; the community is a blend of over 40 different cultures that speak different languages and make up a population of around 140,000 people.

Curoil began its operation over 25 years ago, after the departure from Curaçao of the Shell refinery in 1985. The refinery, formerly operated by Royal Dutch Shell, is now run by PDVSA (Petroleum de Venezuela S.A.) and owned by a local organisation. Curoil supplies petroleum products to both the local and international markets.

In the local market, Curoil supplies fuel to gas stations, utilities and corporate users and via its subsidiary, Curgas, it supplies propane gas to households and commercial consumers.

From local to international

On the international side, Curoil has, over the years, gained the reputation of being a reliable bunker and aviation fuel supplier, consistently delivering quality fuel and complying with international quality specifications. Curoil’s bunkering department operates from Motet Wharf, one of many in the heart of Curaçao Port. From this central location, Curoil seamlessly handles the bunkering operations, from commercial to fuelling.

Over the last 12 or so years, Curoil has seen active development in its bunkering business, including substantial investment in pipeline infrastructure and acquisition of bunker facilities. Curoil is able to deliver a full-service bunkering experience to vessels either calling at the port or at sea.

In 2009, for instance, the bunkering team executed a simultaneous bunkering delivery to two vessels off the shores of Curaçao and Aruba. In about eight hours, a total of 8,000 mt of marine fuel oil was delivered to two separate vessels. This operation was conducted using barges with a capacity of 10,000 mt. In close cooperation with its partners in the port, among others Curaçao Towage Company (CTC), Curoil is able to handle the toughest bunker deliveries at sea.

Major cruise lines call at the Mega pier for tourist stop-off and bunkering. This pier is conveniently located in the heart of the city and connected by a mere five-minute pathway to the luxurious Renaissance Hotel and mall.

On land, Curoil runs its bunker operation through underground pipelines with fuel connections to many wharfs in Curaçao Port. From the five different fuel tanks (ranging from 33,000 bbls to 96,000 bbls) located at the bunker operation, pipelines run underground to the different pits. Curoil can handle a wide range of requests, from homogenous products to blended products. Our blends range from 30 to 380 cSt, according to customers requirements.

The products include: MFO regular grade and low vanadium grade, IFO, and MGO 180 cSt. In addition, a 24-hour year-round service is part of our regular offering.

World Bunkering Summer 2010

All fuels meet international standards (ISO 8217:2005) and are subject to independent inspection prior to release. Curoil also complies to standard Marpol regulations. Curoil’s leased vessel, Angeles B, handles cargo deliveries to other destinations and regular offshore bunkers. The pumping rate is 250 cu m per hour.

For smaller scale, offshore bunker deliveries the barge Curoil II is adequate, and pumps at a rate of 100 cu m per hour. Both vessels have onboard blending engines. Onshore blending takes place at the Curoil location, prior to offshore deliveries.

• Angeles B capacity: 10,000 tons (64,000 barrels) • Curoil II capacity: 300 cu m of diesel and 100 cu m of gas oil • Curoil I, which is mainly used for supplying Bonaire with clean products, also supplies bunkers to the oil rigs around Curaçao.

Qualified for quality

Curoil is certified according to ISO 9001:2000 standards, the most widely adopted management system in the world. From both a local and international perspective, quality certifications have led to overall improvements and a broadening of market opportunities.

Implementing the ISO 9001 standard has not only been a quality department issue, but rather a complete management decision. Our quality management principles have clearly impacted the service we offer to our customers. Claims, for instance, are handled promptly and transparently, with the highest regard for our customers. Our capable teams of fuel traders and operators have skills and knowledge to weather every storm. Product integrity is guaranteed by our commitment to adhere to strict inspection and controls that are rooted in the operational processes. Furthermore, our relationship with our suppliers is as important to us as our relationship with our customers, to whom we strive to deliver the best every day. We’ve seen how our growth has been steady throughout the last 25 years, and today a diversification of our bunkering operations has become reality.

Curoil’s 25th anniversary three-day conference Oct 31 – Nov 2 2010

For the occasion of our 25th anniversary in November 2010 this year, Curoil will host a three-day conference on bunkering and aviation in Caribbean fashion, with industry executives from all over the world.

Key note speakers from the bunker arena and the aviation sector will address the most pertinent topics in these industries. Delegates get a unique opportunity to share industry knowledge, communicate on current maritime and aviation issues and will have ample network opportunities. Curoil will offer all participants a diverse and entertaining program, filled with indoor and outdoor activities. Register for this event via: www.curoil.com or simply send an email to the Corporate Communication department at: curoil@curoil.com and we will gladly handle all your requests.

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Company News

LUKOIL BULGARIA BUNKER COMPANY

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UKOIL Bulgaria Bunker LTD was established in 2008 and within only one year became the major physical bunker supplier in Bulgaria, providing a full range of bunker fuels. The company supplies bunkers in Varna, Bourgas and in the main Danube river ports – Rousse, Vidin and Lom. We have two of our own bunkering tankers and another three under our operation, one of which is used as a bunker barge on Danube River.

The company’s team, well-educated and professionally experienced, is ready to provide you with high quality services in the all above mentioned ports. We offer all grades of products, including gas oil and IFO with viscosity from 30 cSt up to 380 cSt. Although a new player, LUKOIL Bulgaria Bunker has became a leader in bunker sales in Bulgaria, providing a high quality and flexible service.

We are reliable.

We are “Lukoil” team.

LUKOIL Bulgaria Bunker LTD Head office Bunker inquiries 42 Todor Alexandrov Blvd.

Tel: +359 2 9174383 1303 Sofia Tel: +359 2 9174315 Tel: +359 2 9174121 E-mail: rdimitrova@lukoil-bunker.bg Fax: +359 2 9174395 dkalinov@lukoil-bunker.bg sales@lukoil-bunker.bg Bourgas office 6 Khan Krum Str. 8000 Bourgas Tel: +359 56 900700 Fax: +359 56 897709

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Neftehim Bunker Jsc

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eftehim Bunker Jsc is an affiliate of the well-known and reputable oil product trader and bunker supplier, Neftehim Ltd, which has been operating since the year 2000.

We maintain a reputation for reliably supplying the highest standards of services and excellent quality of products. Because of our outstanding business relations with the major Russian oil companies, as well asthe independent oil producers, we are able to be very flexible in the market, and always offer the best prices to our clients.

Thanks to these extensive and stable relations, we always have the full range of residual products available. Furthermore, our marine gas oil is in full compliance with the latest international industry standards.

Our company has access to a fleet of five different barging companies, giving us flexibility and efficiency in our bunker delivery operations.

With our company’s growth in mind, we now we have our own bunker-barge, Velta, which has nine separate cargo tanks with a total capacity of 1,600 tonnes (including MGO 230 tonnes), that enables us to supply different types of fuel. Moreover, Velta has blending equipment on board to provide a variety of fuel products.

Quality control is a matter of great importance to us, so before a bunker delivery to the vessel we regularly engage a surveyor to test our fuel.

In choosing Neftehim Bunker Jsc for your bunker supplies, you will always find outstanding levels of service, quality and efficiency.

Neftehim Bunker Jsc. Office 602 Bolshoy avenue V.o. 80 St Petersburg 199900 Russia Tel: +7(812) 332 2363/+7 (812) 942-3140 Tel/Fax: +7(812) 332 2364 E-mail: main@nh-bunkering.ru Website: www.nh-bunkering.ru

World Bunkering Summer 2010

Company News

LUKOIL-Bunker Istanbul

Vilma Oil S.L. Madrid

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UKOIL-Bunker Ltd has opened a new branch in Istanbul and started physical bunker supply there in March 2010. Establishment of the new branch in Turkey is part of LUKOIL’s strategic plan to develop its bunkering business in southern Europe, as well as taking over the bunkering business from LUKOIL-Evrasia Petrol A.S., also based in Istanbul.

LUKOIL-Bunker Istanbul Ihrakiye Tic Ltd was registered in December 2009 as a physical bunker supplier in the port of Istanbul and some ports in Izmit Bay. The main vessel supply points in Istanbul are the Ahirkapi anchorage, Ambarli Berth, Haydarpasa Berth and Salipazari Passenger Berth, the latter three of which are conveniently situated for cargo and passenger vessels to take their bunkers. The main supply point for transit vessels is Ahirkapi anchorage, situated at the southern end of the Bosphorus, where vessels passing the strait usually get their bunkers. There are quite a number of ports in Izmit Bay; this area of the Marmara Sea is located to the South of Istanbul and we can provide bunker services in ports and at anchorage points such as Gebze, Darica, Eskihisar, Derince, Diliskelesi, Yarimca, Hereke, and Izmit.

LUKOIL-Bunker Istanbul’s quality oil products are supplied directly from LUKOIL refineries, located in the Black Sea and Mediterranean Sea region. The company currently offers MGO DMA sulphur maximum 0.1 to the market and has plans to start supplying MGO DMA, as this type of product is still in high demand in the local market.

The immediate development plans of the company include expansion of its technical capabilities to allow storage and supply of different types of fuel oil to vessels. LUKOIL-Bunker Istanbul will have capability to supply fuels to vessels proceeding to SECA zones, which must have low-sulphur fuels to comply with MARPOL regulations.

Currently, low-sulphur fuel is not offered on regular basis by any other bunker suppliers in the port of Istanbul.

The office of LUKOIL-Bunker Istanbul is run by qualified personnel with vast experience in the bunkering business. Veronika Karpukhina and Maxim Verbin, both of whom have prior experience and skills in bunkering, recently joined the Istanbul team, as well as Sibel Yalcin, who has been in the business since 1991 and, for the past four years, has run bunker sales for LUKOIL-Evrasia Petrol A.S. She and Vusal Abbasov are the members of staff with chief responsible for bunker trade and services.

We are confident that we can provide the highest quality service to our clients and we always welcome new businesses to cooperate with us.

ilma Oil, with its head office in Madrid, was founded in 1996 by a group of experienced professionals in the field of international oil trading. In recent years it has traded in excess of 27 million tonnes of petroleum products in over 20 countries. The company has participated in the development of terminals in Bilbao, Poti & Tuapse, while currently involved in a new oil storage facility project in Algeciras.

As a result of the performance of its multinational team and the confidence placed in it by its partners, customers and the financial community, the business of Vilma Oil has a record of continuous growth.

Over the last two years Vilma Oil successfully established its position as a key prime supplier of Marine Fuels at the Spanish port of Ceuta for ex-pipe/ex-wharf deliveries, increasing the port’s overall bunker volumes at this strategic location for vessel supplies in the Strait of Gibraltar.

In order to further meet the needs of its customers and in line with its commitment to development, Vilma Oil has expanded its bunker delivery service through the recent introduction of a modern double-hull 3,700 cu m capacity bunker vessel for supplies at the designated anchorage within the port limits of Ceuta´s North Bay. Optimising the ex-wharf & anchorage delivery facilities to meet the varying customer requirements, Vilma provides RMG380, RMG380 low sulphur, RME180, RME180 low sulphur and DMA 0.1%, meeting the ISO8217:2005 specifications.

Combining the exclusive utilisation of 83,500 cu m oil storage facilities at the port with its long-standing international trading and operational skills, Vilma continues to expand its vision of providing enhanced customer focused activities, based on core fundamentals of “secure quality services”.

Calle Chile, 10, Oficina 236, 28290 Las Matas, Madrid Tel: +34 91 630 8900 Fax: +34 91 630 8901 E-mail: Bunkers@Vilmaoil.com Website: www.Vilmaoil.es

Benelux B.V. LUKOIL-BUNKER ISTANBUL İHRAKİYE TİC. LTD. ŞTİ.

Süzer Plaza, Elmadağ, Askerocağı Caddesi, No: 9 Kat: 16 D: 146-147A Şişli, Istanbul – Turkey Tel: 90 212 292 06 07 Fax: 90 212 292 06 16 E-mail: bunker@lukoil-bunker.com.tr

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Company News

EKOTek bunkers in North West

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KOTek LLC operates a specialised fuel oil terminal in St. Petersburg and produces bunker fuels for the Russian part of the Gulf of Finland, which is the largest regional bunker market of the Russian Federation.

The company commenced bunkering on 1 July 2009, having bought the tanker Amur from Eco Phoenix Holding OJSC. The double-bottom, double-hull tanker has a cargo capacity of 1,320 tons. EKOTek bunkers IFO 30, IFO 180, and IFO 380 with 1.5% sulphur content, as well as MGO. The company’s specialised multi-field fuel oil terminal started operations three years ago and its annual capacity of petroleum products amounts to 20,000 tons. The tank storage farm consists of six tankers (3,000, 1,000 and 400m3) giving an overall storage volume of 7,000 cu m. The rail loading-and-receiving rack is designed to receive eight tank-cars at a time.

Overland transhipment is carried out via four car loading stations, with a pumping station operating at an overall capacity of 200 cu m per hour. EKOTek has all the necessary certificates and facilities available for production of almost any type of bunker oil conforming to ISO 8217:2005 standards. The company plans to enlarge its customer base and improve its capacity in future.

Petroleum products are delivered in railway tanks to the terminal directly from oil refineries in Russia. Cracked fuel oil makes up about 10% of the overall volume of products delivered and straight-run fuel oil makes up the balance. Thus the company can guarantee high quality of products, low coking properties and 1.5% sulphur content.

Being conveniently situated not far from the ring road, means speedy delivery of products, both to the terminal and to the final consumer. According to Dmitrii Galdanov, CEO of EKOTek OJSC, ingredients used for production require thorough control. “There are products which are the result of different oil refining processes.

As a result, sulphur content in a tank may vary: 0.7% in one, 0.8% in another, 2.4% in third; it is impossible to talk about stability and quality of raw materials and products without knowing which materials are involved,” he explains.

Spot checking raw materials enables bunkering companies to independently carry out high-quality blending. The advantage of small petroleum farms is that they provide high-quality oil blending and can control the quality all along the processing chain; therefore at EKOTek a complex analysis of oil samples is carried out before pumping petroleum products into reservoirs. Additionally, there is a full analysis of each commercial shipment of fuel oil.

The production capacity of EKOTek, together with its own bunkering vessel, enables the company to present itself as a serious and responsible player in the bunkering market. The company has the whole chain of marine fuel delivery under the control of a single managing unit – from petroleum product delivery from oil refineries, fuel blending, production and storage, to bunkering.

EKOTek LLC 29, Polytekhnicheskaya Street, Saint-Petersburg, Russia, 194064 Tel: +7 812 325 0210 Fax: +7 812 235 1358 E-mail: info@ekotek-spb.net Website: www.ekotek-spb.net

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TNP Bunker Ltd

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NP Bunker Ltd is the daughter company of OAO XK Tatnefeteproduct. The company has been in business since 2006 and provides bunkering services for river vessels and yachts in the Central, Volgo-Kamsk and Volgo-Donsk inland waterways of Russia. The volume of sales of light oil products during 2009 amounted to more than 90,000 tons.

During the time between navigations, the company is normally involved in storage of diesel fuel (piped fuel GOST-305-82 standard).

TNP Bunker Ltd can offer very competitive prices for its bunkering services, mainly due its effective approach to the logistics of oil product supply. The bunker fuel is delivered from the oil refineries by river tug-and-tow, which satisfies the needs of large shipowners in terms of quality, fast delivery and affordable prices. As a constantly developing company, TNP Bunker Ltd is able to offer its clients an expanding range of services.

The quality of the supplied product remains at a very high level, guaranteed by our top range suppliers, some of the biggest refineries in the area. The company operates its own bunkering fleet in the ports of Yaroslavl, Nizhniy Novgorod, Kazan, Chistopol, Samara, Volgograd, Rostov-on-Don and Astrakhan. TNP Bunker Ltd’s fleet consists of 16 vessels, comprising stationary bunker bases with a handling capacity of 3,000 tonnes, and bunker tankers with a carrying capacity of up to 600 tonnes.

TNP Bunker Ltd is a dynamically growing company, run by teams of professionals with vast experience in the field of bunkering. The company welcomes business from new clients and is always open for cooperation with new partners.

TNP Bunker Ltd. 5, Yuzhno-Promyshlennaya str.

Kazan, 420005, Republic of Tatarstan, Russian Federation Tel/fax: +7 (843) 5 700 828 E-mail: bunker@tatnp.ru - Secretary antbunker@tatnp.ru - Maxim Antonov, Director zabunker@tatnp.ru - Marat Zagidullin, Head of Bunker Sales Website: www.tatnp.ru

World Bunkering Summer 2010

Company News

Hogla Far East Ltd

Portugal fuel stop

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ogla Far East Ltd, established in 1999, started as a small local supplier using rented barges in the port of Vanino. Now we are involved in bunkering, fuel transportation, agency services, shiprepair services, fishing, pharmacy, and building maintenance, and we own 15 vessels.

Our main activity over the past 10 years has been the supply of high quality bunker fuel, at competitive prices, in the following ports: Vladivostok, Nakhodka, Vostochny, Vanino, Sovetskaya Gavan, and Muchke. Our fuel fully complies with ISO 8217 and MARPOL Annex VI. We control each stage of bunkering from discharging fuel from rail-tanks to loading it onto bunkered vessel from our barges.

While Singapore and Busan fuel prices rise, we are able to keep our rates stable in the Russian Far East ports. As bunkering costs have become more and more critical for any shipowner, we offer our potential customers “bunker call only” services, whereby all the formalities are fixed before a vessel arrives, and a barge supplies the vessel outside port limits. In this case the owner pays only half of port duties.

Our staff are highly experienced in customs clearance and agency services. You can check bunkering schedules and barge positions at any time. With a reputation for being a reliable supplier, we strive for long-term partnerships and offer our customers the most favourable prices and credit terms, as well as timely and safe bunkering services, 24 hours a day, seven days a week.

Dmitriy Yermakov, President of Hogla Group

Hogla Far East www.hogla.biz www.marinebusiness.ru Vladivostok Tel: +7 (4232) 455-400 Sovetskaya Gavan – Vanino Tel: +7 (42138) 4-43-48, 4-56-02 To get quotations please contact: Tel: +7-924-236-53-40 ICQ: 144310275 Yahoo ID: HOGLABUNKER Skype: michael197037 Msn: mshch@hogla.biz

World Bunkering Summer 2010

211901738 MIKHAIL.Hogla

ased at Lisbon, Petrogal SA, part of the Galp Energia Group, is able to offer fuel supply services to all ships visiting this warm and pleasant country.

Petrogal provides its customers with a professional bunkers team, high-quality fuels and services, and the highest safety standards in all bunkers activity.

The company’s bunkering products fulfil the ISO 8217: 2005 specification in all grades. To help achieve customers’ targets on the environment, the company can supply low-sulphur fuels at several ports. The port of Lisbon is the main port for low-sulphur fuel.

Petrogal optimises the logistics resources and storage to provide high-quality services and products. We can also supply a large quantity of marine distillates.

Petrogal it is the main bunker supplier in Portugal, providing a bunker service using two barges with capacities of 2,300 tonnes and 3,000 tonnes each.

A 2,300 dwt double-hull barge, Onyx began operations in 2009 to support the company’s business in Lisbon port.

Galp Marine is well aware of the importance of safety and protecting the environment. The 3,000 dwt double-hull barge is equipped with anti-pollution measurers and is covered by European Maritime Safety Agency regulations in the Atlantic Ocean and Mediterranean Sea. Aware that the customer’s main concern is product cost, Petrogal offers competitive prices without compromising product or service quality. Visiting Lisbon and being supplied by Petrogal Bunkering will always be a good decision for customers used to working with a professional team.

Petrogal is the only refiner in Portugal and operate two refineries, Sines and Oporto, and has an extensive product range that includes gasoline, diesel fuel, jet fuel, fuel oil, LPG, bitumen and several aromatic products. Our refining business is responsible for the supply of oil products to our retail, wholesale and LPG marketing divisions, competitors and foreign customers, as well as for the operation of our refining and logistics assets.

We have a leading position in the Portuguese market, as we own the four largest Portuguese tank farms and 80% of national crude oil products storage.

Our two refineries in Portugal together represent 100% and 20% of Portuguese and Iberian refining capacity, respectively, and collectively account for 88% of Portugal’s annual domestic petroleum product requirements. We have invested approximately €240 million in the last five years to upgrade and improve the efficiency of our refineries (€158 million for Sines and €82 million for Oporto).

For further information contact: Galp Energia SA Tel: +3512 1724 0637/654 Fax: +3512 1724 2957 E-mail: bunkers@galpenergia.com Website: www.galpenergia.com

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Company News

Bunker company TransOilBunker Co Ltd

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unker company TransOilBunker Co., Ltd. was established following a merger of several companies in order to improve provision of services to fleets in the ports of the Far East (Vladivostok, Nakhodka, Olga, Posiet, Slavyanka, Zarubino, Sovetskaya Gavan and Vostochnyi). An expansion into the Seas of Okhotsk and Japan is planned in the near future.

We have been in the bunkering market of the Russian Far East since 1995 and have about 10 per cent of the market share. Average monthly volume of supply of both light and heavy fuel is increasing with a current capacity of 120,000 to 200,000mt. We have five tankers with tonnage of 500 to 1,600mt, one of which is equipped with a mechanical fuel blender.

This year, the company bought the specialised tanker Ukhta, which can process up to 270 cubic metres per day and up to 39,000 annually. Such processing is waste-free: water and oil produced after processing are used for the vessel – oil for boilers and as an ingredient for asphalt – thus making a positive environmental impact, and giving us a significant commercial advantage over our competitors.

We also have plans to buy another tanker with a significant range and large volume of fuel, allowing bunkering and fuel transporting beyond the ports of the Far East.

Our fleet meets all international requirements for both navigation and ecological safety, and is equipped with state-of-the-art satellite communication, operated by our team of highly experienced specialists. We have a personal and professional approach to dealing with customer requirements; our team consistently meets and exceeds expectations. Bunker company TransOilBunker Co., Ltd. values professionalism and reliability and has developed an excellent reputation among companies in Japan, China and Korea. In order to supply both light and heavy fuel our company leases oil tanks on the main oil stations in Vladivostok, Bolshoi Kamen and Nakhodka. The Company has developed solutions to current problems; in future it plans to expand bunker and transport fuel services into the ports of South East Asia. We are located in the city of Vladivostok, one of the biggest centres in the far east of Russia.

Bunkering company TransOilBunker Co., Ltd 53 of., st. Aleutskaya 11 Vladivostok, 690001, Russia

Baltic Fuel Company Ltd enters Saint-Petersburg bunker market

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ontur Spb Ltd and JSC Perspective – two large independent companies working in the port of Saint-Petersburg – merged in July 2008. These two companies have for many years traditionally occupied a large segment of the dynamically growing bunkering market in the sea port of Saint-Petersburg and the Leningrad region.

The Baltic Fuel Company Ltd. was created to manage the assets of the two merged companies and act as a bunker supplying and trading company for both Russian and international markets.

Since its formation the company has achieved success in creating a reliable and high-quality bunkering service meeting all European standards and clients’ requirements. The newly formed Baltic Fuel Company owes its success to goal-orientated teamwork of experienced professionals and is now, rightfully, one of the leaders of the Saint-Petersburg bunker market.

The newly formed holding also includes other companies providing the additional infrastructure required for bunkering operations.

They are a transportation company, a towage company and a sea emergency and rescue formation. The cargo turnover of the company for the six months of operation in 2008 was 270,000 tonnes of oil products. The company’s activity is based on its own logistics and infrastructure. Baltic Fuel Company Ltd owns fully licensed and certified bunker tankers with a total capacity of 11,500 tonnes. There are 15 vessels in company’s ownership. In addition to bunkering activity the company provides transhipment and export of oil products.

Baltic Fuel Company Ltd cooperates with the NK Rosneft bunkering department on contract bunkering services in the port of Saint-Petersburg. A wide range of ecological services for the vessels accounts for a very important segment of the company’s activity.

The company has a separate quality-control department to guarantee the highest quality of oil products. A certified fuel-testing laboratory monitors the movement of oil products at all stages.

All types of fuel supplied by the company are compliant with ISO8217 2005, including fuel oil and low-sulphur diesel fuel. All the departments belonging to the holding are certified by Det Norske VERITAS (DNV) according to the quality control and management ISO9001-200. Bunkering units of the Baltic Fuel Company Ltd are members of the Russian Association of Marine and River Bunker Suppliers, Saint-Petersburg Oil Club and are listed on the Register of the Bunkering Companies at Inter-Agency Commission for Oil Products transhipment in Saint-Petersburg and the Leningrad region.

Telephone: 007 (4232) 642-448 007 (4232) 642-449 Mobile: 007 914 704 2856 E-mail: bktob2006@yandex.ru Website: www.transoilbunker.org

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The Baltic Fuel Company Ltd 13, Dubrovskaya Street Saint-Petersburg Tel: +7 (812) 438 12 80 Fax: +8 (812) 490 58 15 E-mail: info@gwbunker.spb.ru World Bunkering Summer 2010

Company News

Gazpromneft Marine Bunker

cea Co. ltd

E

A

stablished in 2007, Gazpromneft Marine Bunker, a bunker subsidiary of JSC Gazprom Neft, executes the supply of oil products for vessels to the ports of Russia. The company is one of the leading suppliers in the Russian bunker market with an expected turnover of almost 1,000,000 mt by the end of 2008.

The company provides a guaranteed, efficient, all year round supply, with high quality ISO8217-2005 compliant fuels including marine fuels and distillates.

Gazpromneft Marine Bunker’s strategy focuses on operations in the Russian North-West region, the Far East, the Black Sea region and the Russian Rivers.

Gazprom Neft’s main oil refineries are situated in the Moscow, Yaroslavl and Omsk areas. This range of locations makes it possible to cover nearly all the ports in Russia. Nowadays, the company operates in the major Russian ports of St. Petersburg, Primorsk, Kaliningrad, Murmansk, Vladivostok, Nakhodka, Novorossiysk and Rostov.

The company is now investing heavily in building a developed infrastructure including terminals in the main Russian ports and a bunkering fleet in order to form an advanced diversified proprietary network of distribution and logistics. The highly integrated logistic network “from the refinery to the bunker tanks” will lead to cost minimisation and a much faster service in general.

One of the unique selling proposals of the Company is the permanent availability of low-sulphur products, which are received directly from the Omsk refinery. This factor is of crucial importance especially for the North West region, with main ports in St. Petersburg and Kaliningrad, where the content of sulphur in the oil is highly restricted by MARPOL VI legislation. The Omsk refinery is one of the few production sites in Russia that can produce fuels with low-sulphur content.

The well-organized proprietary logistic network makes it possible to conclude and support long-term wide scale contracts directly with the shipowners and the main world broker companies focusing on flexible pricing system. Gazpromneft Marine Bunker has an excellent two-year experience of furnishing cruise vessel contracts with Royal Caribbean International and Carnival Cruise Lines and we are looking forward to increasing our selling volumes for the cruise vessels in future navigation periods.

Gazpromneft Marine Bunker is a subsidiary of one of the biggest corporations in Russia, Gazprom Neft and is a state-owned company.

The company is focused on improving its operating and economic performance, minimising costs and raising its capitalisation.

Our team of bunker traders and logistic operators are challenged to become, and remain, your long-term reliable partner, thorough knowledge of bunker markets, experience, competence and efficient, friendly service.

Vasilyevskiy Island, 3rd line, 62A, St Petersburg, Russia, 199178 Tel: +7 (812) 449 49 70 Fax: +7 (812) 449 49 71 E-mail: bunkers@spb.gazprom-neft.ru

World Bunkering Summer 2010

lthough founded in 2007, CEA Co. Ltd. can be considered an experienced bunker market player and a quality services provider due to its staff having more than 10 years’ experience in the professional vessel bunkering business.

The core activity of the company is wholesale trade in oil products and ship bunkering in the Russian Far East region, covering all major ports as well as the Sea of Japan and the Ohotsk Sea. The key strategic task of the company is to supply clients with quality products. The quality control system applied by the company ensures high standards from the manufacturer to the end user. One of our key performance indicators is obtaining the highest quality of product, and this is guaranteed by the everyday working practices of the company’s experienced staff. Our affordable, competitive prices are based on direct supply from the product manufacturers.

The company policy is based on three major factors: Quality, Quantity and Price, all of which allow CEA Co. Ltd to offer clients value for money.

Another strategic goal of the company is to ensure the most efficient business with maximum environmental safety. Environmental and safety issues are paramount within our company; the following measures are taken to ensure environmental safety: • All activities carried out by the company are in compliance with Russian legislation and international norms and standards; • We ensure full control and monitoring of environmental safety norms of our suppliers (bunker fleet, technical management, recourses etc), and their compliance with Russian and international standards.

Additionally CEA Co. Ltd. has made a decision to develop the company within the Government Concept of Sea Fleet Development of the Russian Federation. In the first instance it means fleet renewal.

The company currently operates two tankers built in 1990 and 1993 respectively, and there are plans to buy a tanker built in 2004 which only proves that the company is moving in the right direction along the tendencies of world shipping. Secondly, the company implements a strict control over the quality and ecological safety of the shipping operations. The problem of double-hull vessels, which is one of the big issues in the Russian Federation these days, is being successfully overcome in CEA Co. Ltd. The company’s fleet has been certified by the inspecting and surveying organisation as one complying with Russian and international standards of shipping.

Quality products, competitive prices, experienced personnel, environmental and social policy, and a high degree of responsibility to the client make CEA Co. Ltd. a transparent and accessible company, open to mutually beneficial cooperation.

Mr. Eugeniy Moroz General Director, CEA Co. Ltd. CEA Ltd 8/1B, Fokina Street, PO BOX 91/45, Vladivostok Primorskiy Krai, Russia 690091 Tel: 007 (4232) 40-64-91 007 (4232) 52 36 93 Fax: 007 (4232) 40 66 98 E-mail: cea_bunker@hotbox.ru Website: www.cea-bunker.com

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World Bunkering AUTUMN issue

DiARY

Independents

How are the independents coping with the downturn? And will they be able to survive moves towards consolidation in the bunker industry? We talk to some of the main players in this sector.

Looking ahead 7-11 June 2010 Posidionia Piraeus, Greece

www.posidonia-events.com

www.informaglobalevents.com/event/bunkerschool maritimecustserve@informa.com

Fuel quality

The latest revision to ISO 8217 has been somewhat controversial but we look at the final draft and ask what difference it will make in practice.

Our annual survey of what is happening in this vital region.

Singapore maintains its dominant position but what of the other players? We take a look around the bunkering centres.

Middle East

14-16 July Oil & Shipping Africa Accra, Ghana

www.petrospot.com/events events@petrospot.com

30 August - 1 July Price and Quality in Bunker Markets Cape Town, South Africa

While the economic downturn has affected all parts of the world, the anchorages off Fujairah have stayed busy and suppliers in the ME Gulf have reported brisk business. World Bunkering investigates the prospects for the local supply industry.

ARA

www.oxfordprinceton.com

How consolidation and the introduction of tight in-port sulphur limits are affecting business in the region.

Posidionia review

13-17 September Oxford Bunker Course

If you can’t get there, we can tell you all about it!

Oxford, UK

www.petrospot.com/events events@petrospot.com

15-17 September Price and Quality in Bunker Markets Singapore

www.oxfordprinceton.com

SIBCON preview

Singapore is set for its biannual bunker industry gathering. We will be there.

IBIA convention preview

The speakers, the events, the issues – get ready to have your say.

Russian update

20-24 September IBIA Convention Stamford, USA

www.ibia.net ibia@ibia.net

Our regular update of news and views from the Russian bunker industry.

Regulars and news

Including our regular environmental, technical, legal and operational updates.

20-22 October Sustainable Shipping 2010 Miami, USA

As the cost of fuel becomes an increasingly important element of operating costs, what are the best means of controlling the risk?

World Bunkering asks the experts.

SE Asia

14-16 June Summer Bunker School London UK

Risk management

www.sustainableshipping.com/events

Equipment & services

A round up of news for the bunker industry.

27-29 October SIBCON Singapore

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Diary dates www.sibconsingapore.com ruohyi.tham@ibcasia.com.sg

All future dates for industry events.

World Bunkering Summer 2010