Mediterranean bunkering Emulsions promise cost savings
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eeting so many IBIA members at the Dinner in February was excellent preparation for this current issue and many of you gave me your views on what we should cover in World Bunkering. It was a crowded event, though, and I am sorry that I was unable to meet everybody. Hopefully November’s IBIA convention will be another chance for the World Bunkering team to catch up with you. In the meantime, we really do value your input on the topics we cover. So if there is any issue you wish to comment on, or feel we need to focus on, please send an e-mail. Returning to the Dinner, our pictorial review clearly shows what a successful event this has become. And it was a good opportunity to celebrate and network. However, IBIA members do not need me to tell them that it is a tough world out there right now, and in many ways getting more difficult. Our News section includes two stories concerning consolidation or the strengthening of large groups. The Risk Management column, meanwhile, paints a picture of an industry under pressure as global economies and worldwide trade continue to contract. Banks are restricting credit lines and downsizing shipping portfolios, while costs across the supply chain are surging and charterers are looking for better value services at lower prices. All the while at the back of every bunker trader and supplier’s mind is the knowledge that many shipping companies are getting into real trouble. I heard the other day that 60 German shipowning companies have gone since 2008 and many more are in real trouble. Hopefully the sober advice in our Risk Management feature may be of use. Paul Waine, director of risk data services at Platts makes a comment which could be usefully framed and displayed prominently on some companies’ walls: “The most dangerous words in the financial market are ‘it is different this time’.” While the cyclical nature of the shipping market may not change, the regulatory environment in which the shipping and bunker industries operate certainly does, and quickly. So much of this issue is concerned with regulatory change. If you need a concise reminder of the impending North American emission control area (ECA) take a look at the Legal page and the technologies needed to adapt to changing legislation. In our Alternative Fuels feature we investigate one approach to complying with the ECA rules – switching to LNG. While there are only a very few LNG-powered ships in service so far, some owners and certainly some classification societies are now pushing this option strongly. We also examine a potential way to cut fuel costs, by using emulsions. It is still early days but the three different companies featured are all convinced that the shipping industry will soon embrace emulsion fuels. It is certainly an area to watch. Meanwhile, there are a number of ways in which existing, and now very expensive, fuel can be used more efficiently and this is explored in the Fuel Management feature. The cost of fuel will no doubt feature in the discussion at this year’s Posidonia, not only as part of the conference and seminar programme but also in conversations in the numerous social gatherings that accompany this major shipping industry event. As ever, World Bunkering will be there. Best wishes David Hughes Editor
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Bunkering IBIA Reports Editor’s Letter 3 Chairman’s Introduction 9 Chief Executive’s Report 11 Noticeboard 12 New Members 15 Membership Application 19 IBIA Dinner 22 Industry News 29
Special Features Environment 33 Risk Management 35 Interview 39 Testing 42 Oil Majors 43 Fuel Management 47 Alternative Fuels – LNG 49 Alternative Fuels – Emulsions 50 Pakistan 53 Information Technology 54 Geographical Focus Greece 55 Gibraltar Straits 57 Malta 61 Turkey 63 Cyprus 65 Preview: Asia Pacific Maritime 66 Preview: International Bunker Conference 67 Posidonia 69 Russian Update
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Chairman’s Introduction This is my first chance to talk to you since I took over as Chairman at the start of April. I have a tough job, following Bob Lintott who kept the Board in line and the Association running well during some difficult times. This year is a significant year for IBIA, being our 20th anniversary, and I intend to make sure we celebrate the many achievements of the Association since 1992. Two of our Board have stood down after years of service, Mike Ball (who had also served as Chairman) and Mustafa Muhtaroglu. They deserve our thanks for their wise counsel and support and I hope we continue to benefit from their activity as members. One existing member was re-elected to the Board (Trevor Harrison) and we have two new Board members Ciric Cheung and Robin Meech. Robin has previously served on the council of management of the Association. The industries we represent are facing difficult times. Shipping is under great pressure from depressed freight markets, high fuel costs and waves of new regulations from IMO, the EU and the US. The supply side has to cope with the pressures of high product cost, difficulties in obtaining additional finance, increased credit risk and uncertainties over demand for different grades. As an Association we have to ensure our members get the best information on developments that may impact their business. To do this we have to keep closely engaged with the regulators (IMO and the EU) and keep a watching brief on developments from within the
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industry. To do this effectively requires more than the efforts of our Chief Executive and our representative at IMO. I will be encouraging Board members to contribute to our efforts to stay “ahead of the curve” but it is not an effort which is restricted to the Board. We are always keen to hear from members who can contribute with information or advice on developments in their own area of expertise. Seventy years ago the fuel choice was simple – boiler fuel oil, intermediate fuel oil or marine diesel oil. The changes in engines, technology and regulations mean that we now have the whole range of products in the ISO 8217 tables; with all of the different sulphur combinations, but what will the picture look like in five years’ time? The smart money is on bio diesel and LNG but we should not dismiss LPG, methanol and ethanol. Some of these will need legislative changes before they can be used in international trade, but bio diesel can be used now, all it needs is the commercial initiative (it is excluded by any charterparty that references ISO 8217) and an economic initiative (without subsidies, it costs more than normal gas oil). I want the Association to be ready to advise members on these issues, to represent the members where appropriate and to support education and training initiatives related to the use of new fuels and new technologies. We are also continually updating the way we communicate with the membership – I hope you have all seen and enjoyed the new e-mail newsletter.
I promise that the Board will take note of any comments and requests from members – just remember that the Board meets four times a year and items for the agenda need to be circulated two weeks prior the meeting to ensure that everyone can contribute fully. There is a topic I really do wish to address before it becomes an issue. Ours is an inclusive Association, very unusual in that it involves all participants in the industry, not just buyers, not just sellers. As such we do not subscribe to passing judgment on members – no black lists, no white lists. As a matter of policy, we do not restrict membership; we want the widest possible participation from all quarters of the industry. And one last thought – if you are reading this magazine as a member of the Association, I hope it provides a valuable source of news and information about the current issues in the industry. If you are not a member, then I would ask you to consider joining us – you will find the application form in this magazine. Nigel Draffin
Oil Marketing & Trading International (Europe) SA MARINE FUELS
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Acting Chief Executive’s Report IBIA’s new corporate year began on 1 April and what a busy and interesting year it is going to be. The first formal business of the year was the Board meeting on 16 April in London which was preceded by a morning of informal discussion, continuing the practice adopted last summer of bringing Board members together either in person or by conference call at roughly monthly intervals, to talk about IBIA matters. The informal discussions are deliberately very loosely structured, no binding decisions are taken and few notes are kept. Not every Board member is available for every discussion but they provide a useful measure of continuity for all Board members who otherwise can feel detached from what is going on. Whether a Board member is in Hong Kong, Cartagena or Guildford, they are all geographically removed from the Secretariat in Southampton so regular telephone contact helps maintain a sense of shared purpose. In fact, this year sees perhaps the most geographically dispersed IBIA Board ever; apart from the above locations, they are based in Oslo, Lübeck, London, Oxford, Mumbai, Virginia and Singapore so remote communication is an essential tool for keeping in touch and enabling the Secretariat to tap into each Board member’s particular skills.
outcome of the BDC’s deliberations, the Board has identified a number of attributes that are likely to be considered desirable. Interestingly and importantly, detailed knowledge of the bunker industry whilst desirable is not regarded as essential; indeed, the right candidate may not even have a nautical or oil industry background – we are being very open-minded. My personal prediction as to what the right candidate is likely to have is a combination of energy, enthusiasm, an ability and readiness to learn, the ability to engage with people, good organisational skills, some experience of managing and growing a small business and, inescapably, the ability to be a likeable and approachable face of IBIA. Tact, diplomacy, tenacity and patience are also likely to feature highly in the desired skill set for deriving optimal benefit from IBIA’s role within the International Maritime Organisation and for dealing with the EU and national maritime administrations; I hasten to add that I shall not be offering myself as a candidate! So, do you know someone who might fit the bill; might you even be that person? The formal recruitment process is not yet under way but if you or anyone you know would like to express an interest or find out more about the role of Chief Executive, I would be very pleased to hear informally from you or them.
The role of the Chief Executive
Probably the most important decision taken at the April Board meeting was to set in motion the process for identifying a suitable candidate for the permanent role of Chief Executive. It is early days yet but the Board Development Committee (BDC) has been given the task of preparing a job description and candidate profile by the end of May. Without prejudging the
In March I had the pleasure of visiting Paris, Singapore and Amsterdam in quick succession, representing IBIA at a series of events together with other staff and directors. The IBIA voice is frequently requested and, where we are able to provide a speaker, invariably well received. May will see me in Panama at Petrospot’s Maritime Week Americas event; together with two
The new corporate year
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Trevor Harrison, Acting Chief Executive Tel: +44(0)20 3397 3850 Fax: +44(0)20 3397 3865
other Board members we will be delivering the IBIA basic and advanced bunkering courses, conducting a seminar and speaking at the conference. Whilst I was in Singapore I had the opportunity of spending time with the consistently enthusiastic IBIA Asia Executive Committee, learning about their achievements and plans and hearing from regional manager Fook Sing Kwok about the various IBIA training courses he has organised both in Singapore and elsewhere in the region. More details of these will be found in Fook Sing’s own report but the success of IBIA Asia is something of which we can all be proud. The Secretariat
We will be pleased to welcome Chanette Roughton back from maternity leave in early May; she and baby Honey are thriving and Chanette assures me that she cannot wait to be back in regular contact with members and colleagues even though her first task is going to be chasing members whose subscriptions are in arrears! Looking ahead
Our next Board meeting will be in July and, in a break with tradition, we are escaping pre-Olympic excitement in London and travelling to Lübeck in Germany where the meeting will be very kindly hosted by members Oldendorff Carriers. Finally, the Board has agreed after eight years that it is time to increase membership subscriptions and introduce some changes to the subscriptions structure that will reflect more fairly the benefits different members derive from their respective memberships. More information about the changes which will take effect on 1 July are in the IBIA Notice Board on the opposite page.
IBIA noticeboard Benefits to members as at 1 May 2012. IBIA Announcements
At the IBIA Board meeting on Monday 16th April 2012, it was decided that after eight years it was time to increase membership subscription rates as follows: Individual Membership: £150 Corporate Membership: £700 These increases will take effect on 1st July 2012. All members who have renewed their membership before this date will pay the current price of £110 and £550, respectively. The Board recognises that the increase is significant but in fact all it does is restore subscriptions to the broad equivalent of their 2004 levels; in future there will be a small annual increase. The Board has also decided that the present practice of listing Corporate Additional Members does not properly and fairly meet members’ needs and some changes will therefore shortly be introduced that will more accurately match the benefits of membership to its cost. If you have any queries or comments about these changes, then please contact email@example.com or telephone: +44 (0) 20 3397 3850. Thank you BENEFITS TO MEMBERS as at 1 May 2012
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Bunker Trader Enzo De Blasio Via de Gasperi 55 Napoli 80133 Italy firstname.lastname@example.org
Petrotec Marine Petroleum Ltd Bunker Supplier Garth Scott Unit 20 Barbican Business Center 88 Barbican Road Kingston 6 Jamaica email@example.com
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ARTE Bunkering Bunker Trader Vsevolod Tkachenko Tartu MNT 14. Tallinn 110117 Estonia email@example.com
ENVIROSHORE PTY Ltd Bunker Trader Sean Potts 4th Floor Ridgeside Office Park Umhlanga 4320 South Africa firstname.lastname@example.org
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Bunker Trader Valhalla Marine SARL La-Combe Leonard 5 Rochefort 2019 Switzerland firstname.lastname@example.org
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The International Bunker Industry Association Ltd The Aims of the Association • To provide an international forum to
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.
In the beginning
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-to-
World Bunkering Summer 2012
day 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 companies 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.
ing groups and committees that report to the Board. Areas covered have included: • Education • Safety • Technical • Environmental • Commercial • Dispute Resolution • Blending The Board and the Secretariat welcome expressions of interest from members to participate in the activities of working groups and committees, and invite suggestions and proposals for further areas of engagement and research.
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. Working Groups and Committees
IBIA is an association dedicated to its membership and strives to reflect members’ wishes and react to their needs. This is achieved in part by the formation of work-
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The leading bunker supplier in Colombia
ith only eight years of business management behind it, CI International Fuels has developed into the most important company in the bunker, petroleum and energy industry in Colombia, and one of the most recognized in the world. The continued economic growth and improved security in Colombia plus the exportation of low-sulphur crudes from the ports of Santa Marta and Cartagena, has made the last four years a period of dynamic growth for CI International Fuels, and one in which it has gained a larger market share. As a member of the International Energy Group (IEG) and with its principal offices located in Barranquilla, CI International Fuels differentiates itself from competitors by its spirit of innovation and technological actualization in delivering to its clients a service with attributes that include security, compromise, quality and fulfillment.
CI International Fuels is a leader in all the Colombian territory, but especially in the ports of Cartagena, Santa Marta, Buenaventura and Barranquilla, where it offers customers crudes, IFOS, diesel and lubricant products, with a fleet of more than 11 boats, from two refineries and two storage terminals of crudes. Its success is based on a vertical structure; logistics, financial support and security provide its operations with quality products, assisted by a talented team of staff within the company. LOGISTICS SUPPLIERS
CI International Fuels buys crude blend directly from the oil fields of Colombia and from international traders, such as the IFOC International Fuel Oil Corp in Panama and International Fuels LLS in the United States.
Vessel Adrian at anchorage in CartagenaÂ´s Bay
World Bunkering Summer 2012
The bunkers are supplied at the major Colombian ports mentioned previously, and thanks to its network, the company can guarantee service at any Colombian port. COMPETITIVE PRICES AND QUALITY
CI International Fuels supplies, markets, refines and exports petroleum and bunkers. It also provides an excellent service with competitive prices, due to the fact that Cartagena is the largest Colombian port and vessels choose to bunker there, as well as in Santa Marta, Curacao and Cristobal. With a great platform of quality and environmental management, the company adheres to the codes and ISO specifications, along with several internal practices that assure its professionalism and efficiency. Also, itâ€™s organized as an IBIA member with the OHSAS BASH norms of security and occupational health. CONTACT Address: Calle 77B No 59-61 Office 1101, Centro Empresarial Las Americas II. Tel: (57) (5) 3693777 Fax: (57) (5) 3694650 E-mail: email@example.com For more information, go to www.ciinternationalfuels.com or www.ieg.com.co
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Global round-up Evergreen to charter fuel-efficient boxships
Taiwan-based container carrier Evergreen is to charter 10 fuelefficient 13,800 teu containership newbuildings to be built by South Korea’s Hyundai Heavy Industries with deliveries set to start late next year. The ships will be chartered from a subsidiary of the Korea Development Bank. According to a Lloyd’s List report, the per vessel price is a comparatively low $115m, while the ships would use some 175 tonnes of fuel a day, considerably less than similar-sized vessels ordered when there was a surge of bookings for very large containerships some four years ago. The carrier told Lloyd’s List: “In the face of increasing pressure brought by high oil prices on shipping companies, these new vessels will significantly enhance Evergreen Line’s competitiveness. The environmental features include much of the green technology built into Evergreen Line vessels a decade ago, plus some newer features to continue the carrier’s leadership in staying ahead of industry standards.” Vitol buys half of Cockett
South African-based shipping and logistics group Grindrod has agreed to sell a 50% interest in Cockett Marine Oil to Netherlandsbased Vitol, said to be the world’s largest independent energy trading business, for an undisclosed amount. The deal is subject to competition authority approval. Cockett has a network of offices across Europe, the Americas and the Far East and delivers about 5m tonnes a year. Cockett is also developing a network of physical supply operations in strategic locations. Cockett’s managing director Karl Beeson said in a statement: “Vitol is the ideal partner to support Cockett’s global growth strategy.” In addition to the deal with Cockett, the two companies have formed a joint venture company called Leopard Tankers which will build four medium range product tankers in Korea, due for delivery in the first half of 2013. The ships will be commercially operated within the Vitol Group.
World Bunkering Summer 2012
Grindrod Shipping’s ceo Martyn Wade said: “This investment represents the ideal partnership of an experienced ship owner with a first class commercial operator having access to a substantial cargo base. The ships represent cutting edge design and incorporate the latest engine technologies allowing significant savings in fuel consumption and running costs. We believe this partnership is an exciting platform for future expansion with the ability to rapidly scale up the investment model as opportunities develop.” Bominflot purchasing set to go ahead
Mabanaft, the trading division of privately-owned German conglomerate Marquard & Bahls, has been given EU approval to buy Bominflot, also German-based. The European Commission (EC) said in statement that it had concluded that the transaction would not raise competition concerns because it would not significantly alter the market structure. The EC notes that Marquard & Bahls’s main activities are in oil trading, tank-terminal storage, aviation fuelling services and renewable energies. Bominflot is mainly active in physical bunkering and bunker trading, as well as in the operation of tank farms and barges and related activities such as offering tank-terminal storage services in Northern Germany. Both Marquard & Bahls and Bominflot are active in the tank-terminal storage of light petroleum products. Marquard & Bahls is also active in the wholesale of light petroleum products. The EC said it had examined the competitive effects of the proposed merger, notably the overlaps between Marquard & Bahls’ and Bominflot’s activities in tank-terminal storage in Northern Germany, as well as the vertical link between tank-terminal storage and the wholesale of light petroleum products. The EC says it has decided that the proposed merger would not alter the competitive conditions in the relevant markets. Therefore the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area or any substantial part of it. Under the agreement, all bunkering operations of Bominflot and Matrix Marine will be combined into the Bominflot Group, which will
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operate under the Mabanaft umbrella. The companies will continue to trade under their existing names which are well known in the market. Aegean in China deal
Major Greek-based international bunker supplier Aegean Marine Petroleum Network Inc has signed a memorandum of understanding setting up a strategic alliance with China Changjiang Bunker (Sinopec) Co (CCBC), a Chinese state-owned enterprise jointly owned by Sinopec Sales and Sinotrans. In a statement, Aegean noted that CCBC is one of China’s five state-certificated bonded bunker suppliers and among the largest bunker supply companies in China. The strategic partnership, which is expected to become effective during the second quarter of 2012 upon completion of the final documentation, is intended to enable
Aegean to meet the marine fuel needs of its existing customers in mainland China. Under the terms of the agreement, CCBC will use its position as one of China’s largest bunkering companies to provide comprehensive marine fuel services on behalf of Aegean’s customers in strategic ports, including all Changjiang River ports and certain coastal ports, such as Nanjing, Zhenjiang, Yangzhou, Taizhou,Changzhou, Jiangyin, Nantong, Changshu, Zhangjiagang, Taicang, Shanghai (excluding Yangshan), Ningbo, Tianjin, Qingdao (scheduled to open by the end of 2012), Dalian, and others. Aegean will be responsible for the supply and delivery of marine fuels to CCBC’s customers in Aegean’s network, which currently covers 19 countries throughout North America, South America, Central America, Europe, Africa and the Middle East.
Aegean will meet the marine fuel needs of CCBC customers in China
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Industry news Industry news
Pacific Islands bunker demand increases
Strengthening trade between Australia, China, Indonesia and India and growth in the domestic cruise industry has resulted in increased demand for bunkers across the Pacific Islands, according to global supplier and trader OW Bunker. OW Bunker Australia, which acts as the OW Bunker Group’s purchasing centre for the region, says that the increase in demand for marine fuel in the Pacific Islands reflects growth in Australia’s commodities markets and marine tourism. In a statement the company says that both 0.1% MGO and 3.5% fuel oil availability across the region is sufficient to meet demand, with a strong supply infrastructure throughout the Pacific Islands. Stefan Poulus, branch manager, OW Bunker Australia, says: “Australia’s economy in particular remains robust, with an influx of international investment in commodities such as iron ore and LNG significantly boosting trade from and across the region. We have seen growth in several key bunker ports, with Port Moresby in Papua New Guinea providing a good alternative for bunkers on the Australia and New Zealand to Asia route. Increased cruise traffic has also fuelled demand across the Pacific Islands, particularly in New Caledonia, Fiji and French Polynesia. Projections for the cruise industry, particularly between Australia and New Zealand are strong, with a predicted 20% increase in traffic in the next few years, so we can anticipate that demand for bunkers will increase in line with this.”
DNV is a strong proponent of LNG as a marine fuel. It says: “Burning LNG as fuel reduces SOx and particulate emissions by 100%, NOx emissions by approximately 90% and CO² emissions by approximately 20% compared to heavy fuel oil use.” “Shipowners are working hard to meet the increasingly strict emissions requirements of the Baltic and North Seas and ports are now responding as the popularity of LNG is becoming apparent,” says Torgeir Sterri, DNV regional manager Central Europe. Currently, there are 22 LNG-fuelled ships in operation – all classed by DNV. In addition DNV has 18 signed newbuilding contracts and three ships scheduled to be converted for LNG fuel. DNV anticipates that by 2020 the majority of new ships will use LNG as fuel, especially short-sea ships operating in emission control areas such as the waters of Belgium. Signs of recognition of this growing market have been seen right across Northern Europe. Norway has so far been the frontrunner, but late October contracts were signed in Brunsbüttel in Germany, too, where a decision was made to offer bunkering of LNG in the Elbehafen.
DNV’s LNG study
DNV is to undertake a feasibility study for the Flemish government on the possible provision of LNG bunkering facilities at the ports of Antwerp, Zeebrugge and Ghent in Belgium. The work will consist of a market survey, a risk and safety analysis, and modelling of the logistics, legal and regulatory requirements needed to establish LNG bunkering infrastructure at the ports. The Norwegian classification society says that hazard identification and quantitative risk analysis are key components of DNV’s service and this scope of work covers not only people at the port but the wider community and natural environment. “The Flemish ports authorities are optimistic about the potential for safe and efficient LNG bunkering operations and DNV’s multidisciplinary analysis will help them move forward confidently,” says Mohamed Houari, DNV head of solutions for Central Europe.
Antwerp, a possible future provider of LNG
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Divergence on market based measures
IMO is pressing ahead on mandatory measures to increase energy efficiency and reduce emissions of greenhouse gases, but has made little headway on MBMs.
he International Maritime Organisation (IMO) secretarygeneral Koji Sekimizu has asked the United Nations’ Marine Environment Protection Committee (MEPC) to aim for agreement on a global market based measure regime to cut CO² emissions by 2015. Mr Sekimizu’s enthusiasm for developing a market based measure (MBM) quickly came as the shipping industry groups represented in the Round Table issued a position paper on greenhouse gases from ships and market based measures, stating that MBMs were “not justified at this particular time”. Nevertheless, addressing MEPC 63, which met from 27 February to 2 March, Mr Sekimizu said that “after the Durban Conference, I believe it is timely for the Committee to decide on a clear road map for the completion of the work still pending. Let us work together and set ourselves the challenge of completing all the work on the establishment of a market based measure (MBM) by a target year of 2015”. He added: “This would demonstrate that IMO is fully in line with the historic agreement reached at the Durban Conference to identify the path towards the future, global legal framework on the mitigation of climate change that will cover all nations of the world. “In a remarkable departure from the past,” he continued, “it was agreed between developing and industrialised countries to launch a new round of negotiations to develop a universal legal agreement and to set a deadline of 2015 for their conclusion. In order to complete all
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the necessary work here at IMO within this time frame, we must start the impact assessment study now and finalise it by 2013 so that you can decide on the specific MBM.” Earlier in his address he had said that “now that technical and operational measures to improve ships’ energy efficiency have been adopted by Parties to MARPOL Annex VI, the next high priority is their full and effective implementation, bearing in mind also that the new regulations will enter into force barely 10 months from now, on 1 January 2013.” In the event, while it did agree guidelines to support the uniform implementation of mandatory measures to increase energy efficiency and reduce emissions of greenhouse gases (GHGs), little headway was made on MBM. However, MEPC did consider the undertaking of an impact assessment of the MBM proposals and considered in detail the methodology and criteria it should be based on. Draft terms of reference for the impact assessment were presented for the next session in October. MEPC also adopted four sets of guidelines intended to assist in the implementation of the mandatory Regulations on Energy Efficiency for Ships in MARPOL Annex VI, which are expected to enter into force on 1 January 2013: • 2012 guidelines on the method of calculation of the attained Energy Efficiency Design Index (EEDI) for new ships;
• 2012 guidelines for the development of a Ship Energy Efficiency
Management Plan (SEEMP); • 2012 guidelines on survey and certification of the EEDI; and • Guidelines for calculation of reference lines for use with the EEDI. The guidelines are intended to enable uniform implementation of the amendments to MARPOL Annex VI Regulations for the prevention of air pollution from ships, adopted in July 2011, which add a new chapter 4 to Annex VI on Regulations on energy efficiency for ships to make mandatory the EEDI for new ships and a SEEMP for all ships. Speaking at the CMA Conference in Connecticut a few weeks after MEPC, International Chamber of Shipping chairman Spyros M Polemis said that, in its discussions with regulators on environmental issues, and particularly CO², “the shipping industry should be treated like a sovereign state in its own right”. In a speech that was highly critical of US unilateralism he warned that the country’s policies could lead to “double chaos”. He said that “we are frequently told that our CO² emissions are the same as those of Germany, while the income generated from maritime transport annually is estimated to be in excess of a trillion dollars”. According to Mr Polemis there is a serious point here about shipping resembling a sovereign nation, in that emissions from shipping do not lend themselves to inclusion in national CO² reductions targets. He said: “A ship may be flagged in one country, and owned in another, while the cargo carried will be of economic benefit to a variety of different importing and exporting nations. This is why we need to maintain a special global regime for shipping.” Mr Polemis highlighted the danger of aspirational legislation, stressed that shipping is a global industry requiring global rules and urged legislators to ensure their proposed environmental legislation is compatible with technical and economic realities. Calling on the US not to implement its own rules, Mr Polemis pointed out: “If major trading nations such as the US adopt rules that are at variance to those agreed by governments at IMO we have chaos and if individual US States decide to implement their own rules in conflict with Federal requirements, it is even worse – we actually run the risk of double chaos.” On emission control areas and the requirement to burn fuel with a sulphur content of no more that 0.1% by 2015, Mr Polemis said: “ICS has no objection in principle to this dramatic regulatory change which is consistent with the agreement reached at IMO three years ago, and which is being similarly implemented in Europe, in the Baltic and the North Sea.” “However,” he warned, “the real concern that we have about the ECAs relates to fuel availability, and whether the oil refining industry can produce the large quantities of distillate needed by 2015. It is still unclear whether or not enough low-sulphur fuel will be available for the US shipping industry, let alone the huge amount of international shipping that trades in and out of the US.” He said that ICS was trying to encourage IMO to bring forward a detailed study on fuel availability so that it might be completed before the 2015 implementation date for ECAs. On CO², he told delegates that last year’s “ground breaking” IMO agreement on technical and operational measures to reduce shipping’s CO² had the full support of the international industry. He said: “The reduction of emissions through reduced fuel consumption and increased efficiency is again a matter of enlightened self-interest, it is a given, and is fully compatible with the poor market conditions we are experiencing at the moment. But when we come to the debate about the so called market based measures, it is important for us to be guarded and more nuanced.” Shipping companies were, he said “rightly sceptical about the introduction of MBM”. But he noted: “The fact remains however that
the Green Fund has now been established by the United Nations and the UN will be considering sources of funding that are very likely to include shipping. ICS and the other Round Table associations have argued that in the event that governments decide that shipping should make a contribution to the Green Fund, any payments should be proportionate to the industry’s contributions to total global emissions, and that the details of any mechanism should be agreed at IMO.” He cautioned: “However, the discussions are very complicated. Regardless of whether we want an MBM – and as the saying goes you can’t expect turkeys to vote for Thanksgiving – if a market based measure for shipping is developed by governments we have to be engaged in the process.” Black carbon defined
Recent reports have indicated that soot particles, or more correctly black carbon (BC), in the atmosphere may be second only to CO² in terms of climate change. BC is the name given to solid particles emitted during incomplete combustion and contributes to climate change in two ways. Firstly, in the atmosphere where it absorbs sunlight and re-emits the energy as heat. Secondly, when deposited on ice or snow, in addition to warming the surface and air directly, it reduces the surface reflectivity, causing it to absorb more sunlight. It is believed that, because it is short-lived and remains in the atmosphere for only a few weeks, reducing BC emissions could have a very rapid and significant effect on the rate of warming. Until now there had been no definition, making it difficult to introduce any measure to reduce BC emissions. Stanford University research scientist Mark Jacobson told an American Chemical Society meeting last year that reducing soot emissions from diesel engines and other sources could slow melting of sea ice in the Arctic faster and more economically than any other quick fix. Dr Jacobson cited concerns that continued melting of sea ice above the Arctic Circle will be a tipping point for the Earth’s climate, a point of no return. That is because the ice, which reflects sunlight and heat back into space, would give way to darker water that absorbs heat and exacerbates warming. And, he noted, there is no known way to make the sea refreeze in the short term. While there has been concern at the effect of soot on global temperatures for some time, and particularly with respect to its impact on Arctic ice melt, there has been a view in shipping industry circles that the science remained uncertain. However, there has now been progress in at least defining the problem. The Institute of Marine Engineering, Science and Technology (IMarEST), in association with the International Council on Clean Transportation (ICCT), has defined Black Carbon and presented it definitions at a recent IMO Sub-Committee on Bulk Liquids and Gases. IMarEST’s chief executive, David Loosley said: “The definition arrived at by IMarEST and ICCT is that: ‘Black Carbon (BC) is strongly light-absorbing carbonaceous material emitted as solid particulate matter created through incomplete combustion of carbon-based fuels. BC contains more than 80% carbon by mass, a high fraction of which is sp2-bonded carbon, and when emitted forms aggregates of primary spherules between 20 and 50 nm in aerodynamic diameter. BC absorbs solar radiation across all visible wavelengths and freshly emitted BC has a mass absorption efficiency of 5m2/g at the midvisible wavelength of 550 nm. The strength of this light absorption varies with the composition, shape, size distribution, and mixing state of the particle.’ “Undoubtedly defining it, and publicising that definition, will help awareness and understanding globally of the challenge it provides to the maritime industries,” he concluded.
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Risk management is all the more important given the current state of the shipping market, reports Sandra Speares.
he shipping industry is still under significant pressure as global economies and worldwide trade continue to contract. Banks, having problems of their own, are restricting credit lines and downsizing shipping portfolios. Meanwhile, costs across the supply chain are surging and charterers are looking for better value services at lower prices. This at least is the view of Serge Laureau, manager of risk management sales at OW Bunker. He adds: “The impact of particularly high bunker costs on the day-to-day operations of shipping companies is an issue of unparalleled importance, with bunker costs accounting for up to 70% of total operating expenditure, which is compounded by freight rates that have reached a 25-year low. That’s why it is vital that shipowners and operators implement a fuel procurement strategy that minimises risk, locks in costs where possible and maximises profitability levels.” Mr Laureau adds that while we have seen higher bunker costs in previous years, most notably in 2008, “the impact is certainly being felt more significantly today as shipping companies struggle to turn the profits that they have enjoyed previously”. He points out: “Currently, the Singapore Bunkerwire Price for 380 centistokes fuel oil stands at around $735 per metric tonne, since the beginning of the year, which is comparable to the market highs of summer 2008. However, total revenues in 2007/08 provided a larger buffer against risk for operators. Without the additional revenues available today to offset the higher bunker prices,
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operators are feeling the pinch more than ever, and the total impact across the supply chain has increased.” He continues: “It is absolutely fundamental that suppliers work with their customers to implement a fuel procurement strategy that is right for the customers’ business; that is cost effective and operationally efficient. As credit insurance is increasingly hard to secure, and in most cases offers very little coverage, finding the right procurement strategy and working in a transparent relationship with customers can be the greatest insurance against risk. This is something that OW Bunker has been very successful in doing, and through cultivating a frank and honest relationship with our customers we
Bunker costs can now account for up to 70% of operating costs
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have been able to help them manage their operational expenditure and protecting their bottom line to a greater extent.” “There are,” he says, “a number of hedging instruments that can be used as part of a holistic risk management strategy that is tailored to meet the specific needs of a customer’s business, as well as their appetite for risk. Our focus is on creating a total end-to-end procurement strategy for our customers, based on their immediate and future requirements, continuously looking at locking in costs, managing cash flow and maximising their levels of profitability.” What are the risks of poor quality according to Laureau? “Fuel suppliers must make sure that appropriate measures are taken to ensure quality and compliance with ISO standards. For example, at OW Bunker we have a dedicated quality support department that works proactively to analyse areas of risk right across the supply chain. We also look to advocate online blending, which negates the need for tank blending, ensuring that air is not injected into the product. Our online monitoring of fuel oil quality also ensures that the viscosity and density of the products that we supply to customers are within the appropriate specifications. Both methods ensure that there is full control over the blending process and that the sulphur content can be measured very accurately; a prerequisite given the current and impending regulatory pressures.” Clearly there are risks associated with using substandard products, which makes it vital that shipowners and operators work with fuel suppliers that they can trust and provide bunkering solutions that are focused on maximising operational efficiencies and keep both costs and risks low, he says. “The need for financial transparency between suppliers and shipowners and operators is essential. Fuel suppliers face significant financial exposure themselves in providing credit lines and products to companies in a market that is in financial turmoil. The relationship between suppliers and their customers must be based on trust; working collaboratively to provide a solution that is mutually beneficial to both parties.” Another company that has been expanding its products and services is global energy, petrochemicals and metals information provider Platts, who launched the Platts Valuation Hub in January, to provide a one-stop solution for customised derivative and asset
Services like the Platts Valuation hub can offer one-stop solutions
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valuations and risk management consulting services for energy market participants. According to Paul Waine, director of risk data services at Platts, the company’s involvement in risk management comes about through its reporting on forward curves. “The forward curves for the oil products, including the range of products burnt in the bunkers market are very much what we provide information on. We have been doing a lot of work recently to expand those forward curves.” Platts announced in February that it had significantly expanded its suite of European forward-dated price assessments for crude oil and refined products, adding more than 1,100 new data points to more than 40 forward curves. The launch of the Platts Valuation Hub means that instead of just being a provider of the risk data, “we are also providing companies with the team of people who will do the valuations of their transactions. If a shipping company knows they want to manage their risk and can’t hire the team to do it for them, they can outsource that work to us,” Waine explains. “We would look at their transactions and tell them the value of the transactions and the amount of risk they have got in the business. We have taken it a step further in that we are offering a risk management consultancy advising role helping firms that have not done it previously to create their risk management operations, policies and procedures – everything that would support a business that realises that they have got a lot of risk but needs assistance in setting that operation up for the first time.” Advising on how to set up a risk management operation is something Platts can do with a small team, Waine says. “The ship operator looking for that advice would build that into their own organisation going forward. We always like to start with the governance right from the top, that is a very important message with any risk management activity that gets into derivatives, whether physical, futures, forwards, swaps or options. We are then able to advise a firm on the effective way to manage their risk, whatever risk profile the business has got”. This service is tailored to the individual firm and Platts can offer support through the initial stages of hedging activity and make sure it is embedded in the business, in a way in which it will be successful. Waine says that Platts has been involved with firms that have had bad hedging experiences and want to understand why they haven’t worked out. Although the example does not come from shipping, he mentions that the UK’s Financial Services Authority is investigating UK banks who entered into derivative transactions with smaller companies which did not fully understand the risks they were taking on or managing. While the focus was on interest rate hedging, Platts has seen a similar phenomenon in the oil sector, in the transportation of fuel where companies have undertaken transactions which purport to manage upside risk, but where the market has fallen leaving them locked in to a price to which they had not understood they were locking into.
Although there could be an issue of mis-selling in certain cases, Waine says he believes it might be a case of the buyer, who does the deal, understanding what he has done but this not being recorded and communicated internally to the rest of the team, who may have misunderstood the risk in the structured derivative transaction. What Platts is trying to do is advise the company, or anyone designing the hedging programme where the risks are, what to look out for, what areas to avoid and what they can undertake successfully, he explains. In terms of hedging market risk, he says it is a question of identifying a suitable counterparty to hedge that risk. “One of the things we would be doing would be to identify that the credit issues should be thought about.” This would be by guiding companies in the right documentation to use and the way to structure credit protection into that documentation. The emphasis of Platts’ product is on how to manage the market risk. “If you manage market risk and convert it blindly to credit risk, you have not done a very good job, so you need to understand how to handle the credit aspects of the transaction as well which for some companies can be very small but for others can be very problematic.” The impact of new regulations has also to be considered, including the Dodd Frank rules in the US and the European Market Infrastructure Regulation (EMIR) rules in Europe which are aimed at financial transactions but would require, in a lot of cases, derivatives to be put in place to hedge physical oil transactions which need to be cleared centrally, Waine explains. It is question of understanding that process and the cost benefits of entering into a centrally cleared operation as opposed to keeping outside of it, but understanding too that if the regulatory rules are put in place, then a bank undertaking a hedge for a company, which isn’t
in a central clearing arrangement, would then have to hold more capital and therefore would charge more for the transaction. One of the concerns, Waine says, is that if it is more expensive to enter, companies will be put off and remain unhedged. One problem is that the industry is dealing with a situation that has not yet been fully defined, and a regulatory regime whose implementation has been delayed, and which may well change again before it is finally implemented. There has been a lot of pressure from the regulators and the government towards clearing transactions, Waine says, particularly in the US and Europe. The question remains as to whether this will bring the benefits that regulators believe it will. Cost is one issue, which might put people off, meaning that they may undertake transactions outside the relevant regulatory regimes, or not undertake the transaction at all. “Neither of those is desirable because they won’t be managing their risk, which might lead to more shipping companies going bust,” Waine warns. Part of what led Platts to set up this business was customer demand, he says. They built a team of experienced risk managers. Randy Wilson, former partner with KPMG LLP in energy risk management, and Evan Zuckert, former managing director of BNP Paribas specialising in commodity derivatives, have joined forces with Platts to help spearhead the Platts Valuation Hub offering. Given the current market conditions, it is natural that the shipping industry is looking to manage things better, however much history may seem to repeat itself. Timing is everything, and as Waine points out, the most dangerous words in the financial market are “it is different this time”.
Managing risk is never going to be plain sailing, but companies must put effective systems in place to limit exposure
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Nigel Draffin took over as chairman of IBIA on 1 April, succeeding Bob Lintott. He talks to Sandra Speares about
the challenges of the coming year.
ising fuel costs, tighter credit terms, a geographic shift to the Far East, and the results of consolidation in 2011 are just some of the themes which are likely to characterise the market this year, with Nigel Draffin describing the bunker industry as being in a state of flux. The most significant thing that the industry has to deal with is the extremely high price of fuel, and it is not going to be a lot cheaper tomorrow, Draffin says. “Owners see it as a terrible imposition and it is enormously difficult for them to find the funds,” he says. “They forget that it is equally difficult for sellers and suppliers.” The size of fuel bills places more strain on lines of credit granted by the suppliers to the buyers. Ten years ago a credit line of $1 million would have covered 10 separate stems of 1,000 tonnes, today it barely covers one stem, he says. There is also the credit risk to be considered. He says that 21 days credit is now reasonably common, although some people are working on 14 days. Suppliers in ARA are the ones suffering the biggest cash crunch, but they can’t make terms too short or they will lose the business, he explains. Owners want to work 30 days, for their own cash flow purposes but “I do see companies happily paying on five day terms if the discount is good enough”. He is no stranger to the association, being a founder member and serving most recently as deputy chairman. “My job as chairman is trying to make sure there is plenty of opportunity for debate and discussion amongst the board, which is held sufficiently in control so that we avoid bloodshed.” A great effort has been made to ensure that the board not only has a wide mix of disciplines, but also a wide geographic base. “Much of the ideas in reality come from the breadth and depth of knowledge of the board rather than the particular talents of the chairman,” he adds. Board members come from a wide range of different disciplines and sectors of the bunker industry including buyers, sellers and
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traders “they have all got their own views”. However, he says it is not difficult to come up with a consensus because, while individual board members will fight their own corner “they are not going to be dog in the manger about it if they see the issue is bigger than their particular sector’s special interest. They understand a solution has to be found”. With the advent of more emission control areas, sailing to the US in the next year will present some challenges. Availability of lowsulphur fuels is likely to be an issue until the level of demand can be accurately assessed. Draffin says at the moment, over and above the normal ebb and flow of business, there are some specific difficulties in coping with regulations which are not yet in force. “No-one quite knows how they are going to be enforced and no-one is really sure of the most appropriate way to comply. There are easy ways, and there are more difficult ways that might be a lot cheaper than the easy ways.” Scrubbing technology is one issue, for example, as is regulation on greenhouse gases, Draffin explains. “That may, or may not, significantly impact on bunkering transactions.” Whatever happens, he says, owners are going to have to deal with it, as the main thrust is on making ships more efficient. One possible market based measure to be implemented is a levy. However, if the industry goes down the levy route, someone is going to have to collect it, and it may be that a decision could be taken to collect it with the bunker bill. “If you collect it with the bunker bill, that means that everybody who sells bunkers is going to have to collect this levy and pass it on to the appropriate authority and maintain all the necessary paperwork.” Draffin says he attended a couple of IMO meetings at which market based measures were on the agenda, but at the time, the emphasis was on the energy efficiency design index and energy efficiency plans. “They were dealing with the next stage, market based measures, almost at arm’s length, and you had two or three camps each pushing
forward their own idea and each idea has got large holes in it. As an industry we need to be aware that we can’t sit there and say ‘it can’t really affect us’ because it might do.” He stresses that IBIA would not oppose any particular measure introduced but would intervene at IMO to highlight its members’ concerns. An issue would have to be “incredibly black and white” before the association opposed it outright, he says. The association’s membership is much more diverse than some other trade organisations. IBIA’s raison d’etre is to provide its members with the ability to discuss all the issues and make each other aware of where the problems lie. Many of the proposed measures might not affect the industry at all, but if the levy was introduced and collected with the bunker bill it will involve people paying for bunkers and those supplying them. Other issues include product availability - which has been the subject of calls by other trade associations for the review of compliant fuels to be moved forward from the current 2018 review date. Draffin says that there are many other small pieces of regulation which he believes have a “much stronger logic for us trying to do something about them, yet all of those have almost no chance of success either”. He cites as an example the flash point of fuels. “If we do something about the flash point of fuels it will assist with the problem of distillates, however to do that means playing about with SOLAS, which is rather like voting against motherhood and apple pie, so nobody wants to do it.” “Our prime task as an association is to keep our members informed and advised. Because we have a diverse membership there are only certain things on which it makes sense for us to lobby hard.” IBIA had considerable involvement with the EU on its own directives 32 and 33 regarding maximum sulphur content in marine fuels. “We don’t want things to be debated where real concerns that are held by our members are not at least raised.” Other concerns he mentions include product quality. Lowsulphur fuel product quality is problematic, although once people have started to fit scrubbers in sufficient quantity, and once the 2020 deadline for the introduction of 0.1% sulphur fuels has been reached, it will cease to be as significant a problem, he says. Although the speed at which scrubbing technology is being fitted is very slow, if abatement technology fulfils industry hopes then ships may be able to continue burning 4.5% sulphur fuels in the future. Another area of concern is cat fines. Incidents are increasing with concerns over engine damage and there is a suggestion that this might relate to on board handling. “If you treat the diluent properly and settle it long enough before you use it, that makes a big reduction in aluminium and silicon,” he says. Operating centrifuges on board ship properly also makes a major contribution. Draffin describes training as his central interest and one that he is keen to see developed further during his period as chairman. Over the years, he says, the model for training has changed. Whereas before there would be five years of combined academic and onthe-job training before getting any responsibility, this has now been replaced by about three years of largely academic training. For example, in Greece, he says, because of a shortage of superintendents, they are now being recruited direct from maritime universities rather than taking people with 10 years of seagoing experience, who would prefer either to stay at sea, or do something else when they come ashore. There is no longer the same link with the practical side of the job, he believes. He is concerned that, for example , the training syllabus for engineers includes little on loading, storage, treatment and burning of bunkers. Draffin, who is currently senior broker and technical manager at LQM Petroleum Services started his career at Shell as an apprentice
engineer in 1966, progressing through the ranks, serving on all classes of vessel including VLCCs and LNG tankers. He came ashore in 1979 to join the newbuilding department of Shell International Marine. After two years of new construction in Ireland, Korea and the Netherlands, he transferred to Shell’s Research & Development unit, specialising in control systems, fuel combustion and safety systems. “The combination of sailing on tankers and then doing research work for seven years meant I got my training through that.” Working in different bits of the business meant he had to learn a lot more about the technology of fuel – training that would have been relevant for him if he had still been at sea, he says. He also dealt with marine accidents and believes that while some major casualties may look like history repeating itself, lessons are learned because the number of incidents has decreased. “Yes, we do learn, but we never get it completely right.” There has been a strong movement over the past 15 years for having a professional qualification for the bunker industry, but companies are unwilling to pay for this. The key is to persuade companies that training is in their best interest. IBIA provides its own courses, but also gives support to others running courses if it feels the courses are appropriate. Aside from developing training, Draffin says he is committed to expanding IBIA’s regional network and, of course, its membership.
A key task for 2012 is expanding IBIA’s regional network
World Bunkering Summer 2012
+1 713 407 3695 +65 6777 3944 UK +44 1325 390180 E-MAIL firstname.lastname@example.org WEB www.intertek.com/marine USA
Every profitable voyage depends on bunker fuel quality In todayâ€™s competitive global shipping industry, staying in business means staying on schedule. Poor-quality bunker fuel represents one of the biggest threats to keeping your schedule and profitability intact.
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New legislation, new challenges?
Michael Green of Intertek Lintec, ShipCare Services explains how fuel testing will be even more important once the North American ECA comes into force.
hen any new piece of emission control legislation is introduced, its effects are felt throughout the shipping world. Owners, operators, vessel managers and suppliers are forced to assess their business requirements and make changes so that they are not only in full compliance with the new restrictions but are still focused on the financial implications. Since the introduction of emission control areas (ECAs – formally known as SECAs), prior planning has been key for those vessels that continually operate in such areas where a 1% sulphur limit is currently in force. A coherent knowledge of their obligations coupled with regular fuel testing offers a level of assurance to shipowners so that possible instances of non-compliance are kept to a minimum. However, these sorts of restrictions have, until now, been limited to “relatively small” control areas. The Baltic Sea, the North Sea and the Californian coast do play an important part in global shipping traffic but do not affect the world to the extent which is expected by the introduction of the latest ECA, that covering North America. The date on which the largest ECA so far will come into force is 1 August 2012. The North American ECA covers a staggering area not simply due to the size of the land mass which it surrounds, but also in relation to the distance to which it extends. It places a restriction up to a distance of 200 miles from its coast line and as such will encompass an unprecedented area of open sea. The sheer size of the overall control area will have a monumental impact on global shipping as a result of the number of vessels that will be affected. Detrimental effect on fuel quality
appreciate the precise effects due to the very different circumstances that surround its creation. However, we do know for certain that any change such as this has a detrimental effect on fuel quality. Looking at the statistics for the Baltic ECA in 2006, it was noted that the total number of off specs rose by around 3.6% in the six months that followed the implementation of the legislation. The introduction of the North Sea ECA in 2007 showed a similar result, in that the total number of off specs rose by around 5.1% in the following six months. This is a trend that is common to all significant legislative change, whether it be the introduction of a reduced sulphur limit in all European ports, to 0.1%, or whether it be the alteration of the Global Sulphur Cap from 4.5% to 3.5%. That being the case, it is fair to assume that the most significant change in recent years will see an effect on quality; however, the question to be answered would be to what extent will fuel quality be affected? Given the time frame since ECAs were first introduced, the one year’s period of grace from August 2011 and the knowledge gained from the other established ECAs, the transition should have been made all the easier. However, that being said, we cannot ignore the aspect of size, as the overall area to be affected by the new legislation is something that has never been encountered before. It is on this basis that many have suggested that this will be the most difficult legislative change so far. With so many questions to be answered and the August start date just around the corner, only time will tell, but it would appear that this is yet another challenge to be embraced in an industry where the continuing process of evolution is ceaseless.
If we look at past cases, such as the introduction of the Baltic and North Sea ECAs, it is possible to draw parallels but it is impossible to fully
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Big bucks, big plans
The oil majors are investing heavily at the same time as repositioning themselves, reports Sandra Speares.
t has been a tough 2011 for BP following the Deepwater Horizon accident in 2010, but according to group chief executive Bob Dudley “by the end of the year we had successfully resolved some significant uncertainties facing the company”. He says in BP’s most recent annual report that the company had set new standards for safety, reshaped the upstream business and “strengthened the group’s financial position by progressing our divestment programme”. As far as the Deepwater Horizon accident was concerned, BP reached settlements with Mitsui, Weatherford, Anadarko and Cameron during 2011 and in March announced a settlement with the plaintiffs’ steering committee, subject to final written agreement and court approvals, to resolve some of the economic loss and medical claims made by individuals or businesses in litigation proceedings pending in New Orleans. Other legal proceedings remain outstanding. Mr Dudley said “I want to make it absolutely clear that we are not seeking a return to business as usual. The events of 2010 demand more than that. As we move ahead, our job is to make BP a stronger, safer company by further embedding safety at the heart of the company, continuing to earn back trust, and creating long-term value for shareholders once again.” Turning to refining and marketing, Mr Dudley said “our worldclass fuels, lubricants and petrochemicals businesses are shifting the balance of their activity towards higher growth markets, including China and India. We are moving forward with our plans to sell around half of our refining capacity in the US”. During 2011, BP invested $1.6 billion in its alternative energy business, with a total investment since 2005 of $6.6 billion. BP has recently signed another cooperation agreement with the China Petroleum and Chemical Corp (Sinopec) which involves twoway fuel oil supply and a sharing arrangement for supply networks. This new arrangement is expected to help both parties expand their global bunkering activities and it gives BP a greater chance to expand
in the Chinese market, with international benefits for Sinopec in making use of the BP network worldwide. Le Havre has been marketing itself as a major bunker port for North Europe with Total Marine Fuels supplying one million tonnes of marine fuel per year using two barges with high speed pumping rates. Total says that more than 60% of French container traffic comes through the port. “Today, we can see a new trend with tankers, and vessels other than containers carriers, bunkering with the FO 500 or even FO 700 that we can offer at attractive spot prices” says Frederic Vazzoler, general sales manager of Total Marine Fuels. “Our clients are saving costs without quality threat. Our FO 500 and FO 700 comes directly from the Total refinery near the port and is therefore of an optimal quality,” he adds. “In the same way, we adapted our logistics in Le Havre in order to give an efficient answer to the increasing needs of FO 380 1% low sulphur. Deliveries are also done by barge with the time chartered Cimil and ST Sara bunker tankers and trucks.” According to Vazzoler, fuel oil accounts for nearly 50% of operational costs for shipping companies (around $650/tonne for a container vessel). So, for a single Europe-Asia voyage, allowing for 20 days with an average consumption of 250-300 tonnes of fuel oil per day, the shipowner or charterer will have to pay between $3-4 million dollars. He says that between 2009 and 2011, container lines had to face a dramatic increase in their bunker costs correlated to high oil prices and lower revenues, combined with the economic recession and overcapacity in shipping. “Management of bunkers through slowsteaming and appropriate purchase policy is more vital than ever, in order to control the costs and minimise the losses.” Every week, Total supplies container vessels for the major shipping companies and the monthly volume delivered is around 100,000 tonnes, Total estimates. “This volume should increase significantly
Continued p46 World Bunkering Summer 2012
GAZPROMNEFT MARINE BUNKER Ltd.
Energy of Growth • High quality ISO 8217-2010 bunker fuel • Quality control from oil refinery plant to end user • Flexible prices • Main Sea Ports of operations: St. Petersburg, Kaliningrad, Murmansk, Archangelsk, Primorsk, Ust-Luga,Novorossisk, Tuapse, Port Kavkaz, Taman, Nakhodka, Vladivostok, Vostochnyi, Kozmino and Sakhalin island • Main River Ports of operations: Moscow, Yaroslavl, Kazan, Samara, Volgograd, Rostov-on-Don, Astrakhan, Azov, Ust-Kut, Nizhniy Novgorod • International ports: Tallin, Riga, Klaipeda, Rostok, Konstanca
in the next years and reach between 150,000 and 200,000 metric tonnes a month with the growth in container traffic in Le Havre.” Meanwhile, Chevron and Gazprom Neft Lubricants have signed a licensing agreement for the manufacture of marine engine oils, allowing the Gazprom Neft subsidiary to supply a wide range of lubricants, including hydraulic, compressor, turbine and cooling liquids, as well as specialised lubricants for sea and river vessels. Gazprom Neft Lubricants will supply oils to Gazprom Neft’s bunkering operator, Gazprom Neft Marine Bunker, which has a strong position at all of Russia’s major sea and river ports, and whose client base includes an extensive network of shipping companies. “The start of marine oils production is an important step in the development of Gazprom Neft’s lubricant business. This collaboration with one of the global leaders in marine lubricant production is sure to help the company to gain new experience and modern production technology, and synergy with Gazprom Neft’s bunkering business will provide guaranteed sales for the new products,” says Levan Kadagidze, who leads Gazprom Neft’s commercial arm. Buckeye Tank Terminals reached agreement with Chevron in February to buy its marine terminal facility for liquid petroleum products in New York Harbour for $260 million in cash. The facility, which sits on approximately 250 acres on the Arthur Kill in Perth Amboy, New Jersey, has over four million barrels of tank space, four docks and significant undeveloped land available for potential expansion. It has water, pipeline, rail and truck access, and is located only six miles from Buckeye’s Linden complex. The acquisition is expected to close in the latter half of the second quarter of 2012.
“This is a milestone acquisition for Buckeye that is integral to our vision and strategy for positioning Buckeye for long-term success,” commented Clark Smith, Buckeye’s president and chief executive officer. “We believe that adding the Perth Amboy facility to our existing portfolio of assets will unlock significant long-term value across the Buckeye enterprise.” Exxon Mobil Corporation says it plans to invest approximately $185 billion over the next five years to develop new supplies of energy to meet expected growth in demand, according to ceo Rex Tillerson. “During challenging times for the global economy, ExxonMobil continues to invest to deliver the energy needed to underpin economic recovery and growth,” Tillerson said in a presentation to investment analysts. Tillerson said that even with significant efficiency gains, ExxonMobil expects global energy demand to increase by 30% by 2040, compared to 2010 levels. Demand for electricity will make natural gas the fastest growing major energy source, and oil and natural gas are expected to meet 60% of energy needs over the next three decades. “An unprecedented level of investment will be needed to develop new energy technologies to expand supply of traditional fuels and advance new energy sources,” said Tillerson. “We are developing a diverse portfolio of high-quality opportunities across all resource types and geographies.” ExxonMobil is set to launch a new lube product later this year, which can be used with bunker fuels with different levels of sulphur content. The new product, Mobilgard 560 can be used with engines burning fuels ranging from 0.5% to 4% sulphur content.
ST SARA in bunkering operations
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Beware cat fines
As Sandra Speares reports, managing fuel quality will become increasingly important as emissions legislation puts pressure on the supply chain.
anage for the unexpected was the message delivered by Tim Wilson of FOBAS in dealing with fuel management in the light of changes in regulatory requirements and the demands that they will put on the providers of bunker fuel. Marine fuel quality will remain an issue for the next decade or two, he told delegates at the Chemical & Product Tankers conference in March, organised by Navigate Events. According to Wilson, “current statistics show some variants in trends; the bottom line is that it does not change the variants in fuel quality that we can expect”. He advises investing in an effective bunker management programme and integrating this into the Ship Energy Efficiency Management Plan. As more emission control areas (ECAs) come into operation, not only will there be heightened concerns about fuel availability, but also about fuel quality. Concerns have also been raised about the possibility of more disputes over off-spec bunkers because of different methods for testing the sulphur content of fuels. With the North American ECA due to come into force in August, the geographical extent of the ECA may lead to considerable supply shortages or off-spec disputes as the 1% sulphur content regulation is applied. Wilson told delegates that ships were still reporting operational problems relating to fuel quality, including increased and rapid liner wear, faster deterioration of fuel system pumps and injectors, filter problems, incompatibility between fuels and delayed ignition, to name just a few. Most fuels, he suggested were “fit for purpose” provided they were managed correctly, but some fuels were “border line” as far as quality was concerned. A cautious approach should be taken to using them, including using them at a point when sufficient alternative fuel was still on board, and sampling the fuel from different points in the tank.
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Emissions legislation pressures on fuel quality that he outlined included: unavoidable changes to fuel manufacturing processes which could alter fuel chemistry; the increased number of available cutter stocks to reduce sulphur levels adding “totally unknown cutter stock chemistry”; concerns about future supply availability – probably resulting in future grades of not yet considered fuel chemistry; and a growing automotive bio-fuel market with its yet unclear impact on storage and quality of marine products, which would create even more complex fuel chemistry than already exists. Cat fines, unstable fuel, fuel compatibility and ignition quality were just some of the other concerns, according to Wilson. ExxonMobil subsidiary IMT Marine Services emphasised the rising number of incidents caused by fuel with high levels of catalytic fines and stressed the importance of good onboard fuel treatment and the review of the ship’s maintenance systems. “Because cat fines are generally very hard and very abrasive to pumps, atomisers, piston rings and liners, major diesel engine manufacturers recommend the maximum amount of catalytic fines in the fuel injected into the engines to be 10-15mg/kg,” IMT said. “Since ISO 8217:2005 regulates the maximum amount of fines permitted in bunkered IFO to 80mg/kg (ppm) it is possible to receive bunkers that exceed an engine manufacturer’s recommended maximum limit and without adequate treatment the main engine may suffer catastrophic wear rates and related failures.” Among its recommendations for operators, which include recommendations for regular cleaning of fuel storage, settling and service tanks, IMT stressed the need to ensure that “personnel responsible for the operation and maintenance of the separators are properly trained and are familiar with the equipment and how to perform the regular maintenance.” As IBIA chairman Nigel Draffin also stressed (see interview page 39) when commenting on the cat fines issue, incidents are increasing with concerns over engine damage and there is a suggestion that this might relate to onboard handling. “If you treat the diluent
properly and settle it long enough before you use it, that makes a big reduction in aluminium and silicon,” he says. Operating centrifuges on board ship properly also makes a major contribution. DNVPS is another organisation who has been quoted as saying that younger seafarers do not know enough about fuel handling, quality or bunkering procedures, not to mention the effect that contaminated bunkers might have on the operation of the ship. Clearly crews will also have to be up to speed with the new regulations regarding fuel quality and sulphur limits. Meanwhile, Germanischer Lloyd subsidiary FutureShip has linked up with Iceland-based Marorka to cooperate in the field of fuel efficiency, energy management and related consulting. “Energy efficiency gains ever-more importance in the maritime industry”, said Khorshed Alam, vice president of FutureShip South Asia. “This cooperation will give us the opportunity to even better serve the need to monitor ship performance, raise energy efficiency awareness onboard and onshore, and enable shipowners to seamlessly manage the energy performance of their entire fleets.” FutureShip’s ECO-Assistant, a stand-alone software application delivers the optimum trim angle for a ship when provided with simple operational parameters. Installed on over 200 ships, efficiency improvements of up to 5% can be achieved, the company says. Alongside its own solutions, FutureShip will now offer selected Marorka hardware and software products. The stand-alone Ship Performance Monitoring System calculates fuel efficiency based on fuel consumption, GPS and log speed, propeller power and main engine RPM. It displays performance values and trends on a touch panel computer, which collects measurement data, creates real time performance analyses, and records historical performance data that can also be sent to shore for further analysis with Marorka Online.
Finnish provider of real-time decision support systems Eniram launched its new Optimum Speed Assistant (OSA) in March which, it says, could save operators up to 3% a year in fuel-related costs. The software analyses real-time data about current sea conditions alongside historical information about a vessel’s performance to determine its optimum speed, ensuring just-in-time arrival in port. Eniram claims this software tool will radically change how the shipping industry manages speed, engine use and fuel consumption. The software, which builds on Eniram’s existing Dynamic Trim Assistant, is the only solution in the industry to combine real-time information about prevailing sea conditions with historical data, giving operators the facts they need to be able to sail constantly at the optimum speed profile. This reduces the need for a crew to build in “buffer” time and vary engine speed to ensure on-time arrival in port, a practice which is not fuel efficient. The next module, which involves engine efficiency is due to be rolled out later this year. Training remains a key element of fuel management onboard vessels and concerns have been raised in a number of quarters that today’s crews are simply too inexperienced to recognise the dangers inherent in buying or using off-spec bunker fuel. Tecnoveritas, meanwhile, has won a further order from APL/ NOL to supply its Voyage Energy & Emissions Optimiser system for use onboard their container vessels. “Shipowners need accurate and human-free error measures to know how to make their vessel more energy efficient thus reducing fuel costs and future emissions costs,” the company said. APL Scotland was fitted with Tecnoveritas’s VEEO Mk2 in March, a more sophisticated system than its predecessor the Mk1, allowing an overall control of ship fuel management, including an “unbeatable” bunkers module and weather related key performance indicators.
New software can assist in managing speed, engine use and fuel consumption
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Alternative fuels – lng
ClassNK issues LNG guidelines
A Japanese initiative is the latest in a line of moves by major classification societies to prepare for the LNG powering of merchant ships.
lassNK has issued guidelines to govern the safety aspects of the application of natural gas for propulsion and auxiliary purposes. The guidelines are based on the International Maritime Organisation’s (IMO) draft-status International Code of Safety for ships using gases or other low flash-point fuels (IGF Code). The new ClassNK guidelines provide comprehensive information on key design features, including bunkering, hull structure, fire safety and explosion prevention measures. “One of our most important missions as a classification society is to help ensure the safety of shipping as the industry looks to ways in which it can reduce its carbon footprint,” says ClassNK chairman and president Noboru Ueda. He adds: “These new guidelines have been compiled based on our vast array of technical expertise and experience. By releasing these guidelines today, we hope to provide practical guidance for shipyards, manufacturers, owners, managers, and operators looking to prepare their fleets for a safer, greener future”. The guidelines were initially published in Japanese but an English version was due to follow in early March and will be available via the ClassNK website at www.classnk.or.jp/account/en/Rules_Guidance/ ssl/guidelines.aspx. The Japanese classification society notes in a statement: “As regulations curbing atmospheric pollution and greenhouse gas emissions grow stricter amid stronger calls for a greener shipping industry, attention is turning to the potential of natural gas as a cleaner alternative to liquid fuel oil.” It adds that LNG is widely used on vessels designed to transport the commodity and has started to be introduced on other types of ships. Around 30 vessels, including
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many Norwegian ferries and offshore support ships in the North Sea, are powered by LNG with take-up of the fuel expected to increase in the near future. Meanwhile, major Japanese shipping group Mitsui OSK Lines (MOL) has decided to conduct a gas injection demonstration run utilising a temporarily modified electrically-controlled type slow speed diesel engine in a joint project with Mitsui Engineering & Shipbuilding. The engine had been designed, manufactured and delivered to the yard with oil injection specifications for installation on an MOL newbuilding. It will be run with vaporised LNG at MES Tamano Works (MES) in the first half of 2013. An MOL statement says: “LNG has recently been highlighted as one of the potential propulsion fuels for future ship design. MOL will start to investigate adoption of the demonstration-oriented gas injection technology to future vessels, along with its Sempaku ISHIN project, one of the environmental strategies in the midterm management plan ‘Gear Up! MOL’.” Gas burning technology has been developed and accumulated in MES through the electric power generating operation of a slow speed gas injection diesel engine (GIDE) at its Chiba Works. In the current project, GIDE technology is being combined with the latest electrically-controlled slow speed diesel engine.
Alternative fuels – EMULSIONS
Oil and water save money David Hughes looks at three different approaches to using emulsions to achieve fuel savings.
hile the promised advantages of Orimulsion are now a distant memory there are number of initiatives underway to develop emulsions as bunkers. Three companies in particular have announced developments recently. UK-based Quadrise International and Luxembourg-based Ecomulsion are developing oil-inwater emulsions, while Neftech manufactures a water-in-oil emulsion. A spokesperson for Quadrise told World Bunkering that Quadrise’s principal business is to supply technology and services and sell a replacement for heavy fuel oil, branded MSAR fuel oil, which is “a super-stable emulsion blend of heavy residual oil in water”. The application of MSAR fuel technology in association with major client corporations in the bunker sector is expected by the company to deliver “game changing” advantages – to oil refiners providing the low value heavy residue feedstock and to the users converting from conventional heavy fuel oil to Quadrise MSAR fuel. Advantages for refiners and users are said to be both economic and environmental. Among environmental advantages, MSAR “practically eliminates carbon particulate emissions”. Quadrise says that recently there have been positive developments affecting the company’s prospects in the bunker market. The spokesperson said: “While the future will always remain uncertain, there is consensus that the fundamental drivers of these key trends are likely to be sustained. These include: the increasing importance of fuel cost to the international shipping industry – comprising up to 75% of operating costs; the widening divergence in demand growth between distillate fuels (diesel and aviation fuel) and fuel oil and the pressure on limited global distillate production capacity; and prescription of reduced sulphur levels for all marine bunker fuels.” These trends, and the associated widening of price spreads between fuel oil and distillates, all support what Quadrise terms its value proposition. It says: “When producing MSAR fuel, the refiner recovers high value distillates for use in higher value ‘light’ fuels, and the consumer is provided with a lower cost ‘greener’ substitute for fuel oil for its ships, power plants or industrial steam raising.” Quadrise says it is making good progress in its MSAR projects,
“although execution of key contracts which map the progression to full commercial operations have yet to be signed”. The spokesperson notes: “The simple reality is that programmes involving acceptance of innovative ideas in large organisations involve many stakeholders and do take time.” In the bunker fuel sector an extensive programme of fuel development and optimisation of Marine MSAR has been conducted since 2010 under a joint development in association with AP MollerMaersk and AkzoNobel. The company says that a seaborne assessment of Marine MSAR required a limited fuel production run at the AB Orlen Lietuva refinery in the Baltic and the installation and calibration of monitoring equipment on a Maersk containership to provide the operating performance information required by all participants. The leading engine manufacturers are also directly involved in this programme, which is taking place now. The company notes: “Such innovative fuels development programmes mandate the analysis of data, correction of any deficiencies
It is plannned to use MSAR fuel in a representative sample of the Maersk fleet later this year
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and exploitation of opportunities that might be revealed by the results of ‘in service’ performance. These results and assessments may provide an opportunity to further refine and optimise fuel formulations in terms of both performance and economics.” On completion of the sea trials the next phase of the development programme will be to use MSAR fuel in a representative sample of the Maersk fleet during the second half of 2012. “However,” Quadrise says, “timing will be conditional on the ‘issues and opportunities’ list arising from the trials currently on-going.” It concludes: “The development of Marine MSAR fuel continues to attract increasing attention from many stakeholders in the bunker sector. The tide appears to have turned in many respects according to the company, particularly with the shipping industry, the engine manufacturers and the refiners. Clearly, if the large consumers of marine bunker fuel start calling for Quadrise’s lower cost Marine MSAR, the fuel ‘supply chain’ is expected to respond.” A competitor to Quadrise, Ecomulsion Fuel Solutions (EFS), was incorporated in Luxembourg in October 2011. The company was established by Bill Howe, who initiated the Maersk development while ceo of Quadrise Fuels International, and Dr Alan Stockwell, a founder member of Quadrise and leader of the joint BP and PDVSA team which developed Orimulsion. Their objective was to focus on the marine sector and develop a superior oil-in-water emulsion fuel based on their prior experience in the field. The company says: “A key issue was commercial flexibility and ownership of its own intellectual property. To this end Ecomulsion has established an in-house laboratory in the UK and is currently testing a range of surfactants and residue feedstocks from various suppliers. This will lead to a lower overall cost of the emulsification package and competitive bidding for chemical supplies when required by client’s procurement procedures.“
EFS has a long term, exclusive agreement with Maelstrom Advanced Process Technologies to use it proprietary PSMTM (Particle Size Management) mixing technology. EFS processors are designed to produce very precise particle size ranges with limited deviation from the mean distribution size to give an optimum emulsion manufacturing starting point from a physical perspective. In fact it is more accurate to think of the EFS machines as “reactors” in which a range of parameters can be varied to optimise the material for a given application. This structured processing has benefits around the issues of viscosity control, energy density, particle size and potentially emulsion stability. It permits the formation of ‘bimodal emulsions’ where two distinct particle size ranges are produced permitting controlled filling of inter-particle spatial volume improving energy density and/or reducing emulsion viscosity. The company says PSMTM is of particular relevance to diesel engines and especially marine applications. Energy density impacts the ability to extract full engine rating. A higher energy density also improves the range achievable from existing fuel tanks and reduces cargo cut-out when ships are loaded to maximum draft. Application of emulsion technology on large refineries also requires the handling of high residue volumes, according to Ecomulsion. It says, “Such volumes are not well suited to the colloid mills favoured by competitors which are typically available at 40tph capacity. Although EFS have a 40tph modular design for small applications, EFS custom designs allow for single train processing capacities of up to 200tph allowing lower capital cost and more practical plant operations. For a 250,000 BPD refinery processing relatively heavy crude this translates to 2 x 200tph operating machines vs 10 x 40tph colloid mill machines.” Mr Howe says that EFS has a major commercial advantage because it is not tied to a specific surfactant manufacturer and is free to select
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the most cost effective surfactant for a particular application. EFS can thus purchase competitively, or clients can purchase directly, from a number of surfactant suppliers. He adds: “These benefits give rise to lower costs which can be very significant. In all situations to date where clients have required submission of process assessment data for OIW systems EFS has had a significant price advantage over its competitors.” Meanwhile Singapore-based Neftech uses its proprietary cavitation technology to reduce fuel usage on ships. It adds water to bunker fuel using specialised equipment to create fuel that can keep its characteristics and does not separate from water for more than a year. The company explains its process: “Cavitation is defined as the phenomenon of formation of vapour bubbles in a flowing liquid in a region where the pressure of the liquid falls below its vapour pressure. Bubbles carry a lot of energy and when a bubble explodes or collapses it causes a sharp increases in temperature (to several thousand degrees Celsius) and sharp pressure changes with a shockwave effect (to hundreds of megapascals). At such temperatures and pressure physiochemical changes of the liquid occurs. In our fuel emulsification by cavitation, water and hydrocarbon fuel in measured proportion are subjected to a cavitation treatment process.” It continues: “The forces of the collapsing bubbles produced by the cavitation effect cause the breakage of the long polymeric hydrocarbon chains at molecular level into less than 10 micron dimension. The effect of such truncating of molecular chains causes the formation of free radicals and active molecules. And in the presence of water, electrolytic substitution occurs. This helps to further increase the combustibility of the fuel. The cavitation effect also causes the water clusters to break-up into individual molecules. The smaller water molecules allow it to be more miscible in the hydrocarbon oil forming an emulsion of high stability. The emulsified fuel is physically water droplets in oil. A thin film of oil coats around the small water molecule(s).”
Neftech says it achieved a major breakthrough in its research and development on fuel saving using its proprietary technology in 2011. After months of continuous rigorous testing on ships culminating in a field test conducted, witnessed and verified by the American Bureau of Shipping Consulting Inc (ABS), average fuel savings of 7.6% were achieved for the main engine and 8.6% for the auxiliaries. The test was performed on the APL Cairo and was commissioned by Neptune Orient Line subsidiary APL. The 2,400 APL Cairo has been using emulsion fuel generated by Neftech’s fuel saving system for more than 30 months. Following this, APL again commissioned ABS to conduct a survey on the general condition of the main and auxiliary engines of APL Cairo. ABS reported “no abnormalities or pitting was noticed. The exhaust trunk was noted to be rather clean and devoid of any major soot deposits”. Convinced of the benefits of Neftech’s technology, APL purchased four units of Neftech’s fuel saving system for installation on the main engine of the APL Cairo and her sister ships. In addition, APL has also signed an agreement to install Neftech’s fuel saving system on the main engine of one of APL’s largest vessels, a 10,100 teu containership. This agreement gives APL the option to buy the system for up to 10 such ships, subject to a minimum of four. Separately, CMA CGM, the world’s third largest container group, commissioned nine months continuous testing of Neftech’s fuel saving system on the auxiliary engines of two of its 5,040 teu vessels. Following consistent substantial savings, CMA has since purchased these two units from Neftech. The company says: “Discussion on installation on main engines and purchase of units for auxiliary engines of CMA fleet is ongoing.” Neftech is also in “final stage discussions with a few other major shipping lines” and expects substantial orders for its fuel saving system in the next few months. On the research and development front, Neftech says it continues to explore ways to improve its technology and believes that fuel savings could be further increased.
APL’s new generation ships’, such as the APL gwangwang, could soon be using more economical emulsion fuel
World Bunkering Summer 2012
Attractive realities in Pakistan
National supplier reports that “enormous volumes of bunkers” are being delivered at the ports of Karachi and Bin Qasim.
akistan’s bunkering industry is “growing at a continuous pace and is regarded positively worldwide”, reports Orion Bunkers. The Pakistan-based company notes: “Enormous volumes of bunkers are supplied at two ports in Pakistan, Karachi port and Bin Qasim port. Both of these ports are working with highly sophisticated equipment, with new and modern berths/terminals present to handle all types of cargoes properly and smoothly. And many other projects at both ports are planned too; which can be viewed at www.kpt.gov.pk and www.pqa.gov.pk, and are the significance of improved productivity and improved bunker sales in future.” Karachi port handles about 75% of the entire national trade and is thus the main focus of bunkering activity. It is a deep natural port with an 11-kilometre-long approach channel that can take tankers up to 75,000 dwt, plus it has 30 dry cargo berths, including two container terminals and three liquid cargo handling berths. Bin Qasim port is the second deep sea industrial-cum-commercial port for national trade operations. It is 28 nautical miles to the south-east of Karachi city. It is the most preferred trade route of the Arabian Gulf and is considered to be an eco-friendly port. It has a 45-kilometre-long channel which allows access to vessels with a draught of up to 11 metres. “With such an advent and attraction for shipping companies worldwide at both ports we have seen a high rise in the volumes of Pakistan’s bunkering industry from the end of 2011 and expect this to continue during 2012 and thereafter,” the company adds. Orion’s director, Adil Sher, says: “Irrespective of those unconfirmed
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statistics published in World Bunkering magazine’s Spring 2012 edition via some representative sources; we are presenting this review of Pakistan’s bunker industry using statistics gathered from the port authorities for 2011.” He continues, “Total industry volumes on a per month basis in the year 2011 for IFO 180cst were approximately 12,000 metric tons and MGO DMA was approximately 1,000 metric tonnes. No doubt these volumes used to be much higher in previous years and in 2011 the total volumes have approximately decreased by 20% to 30%, compared to the volumes generated in the year 2010. This decrease in volume is due to the increase in fuel prices and extreme fluctuations, plus some other general economic conditions of the country.” He adds: “Also, there exist strict regulations from port authorities in order to maintain the quality of supplies and to overcome all red taping enforcements. From the interpretation of the data collected and the statistics for the year 2011, it can be revealed that Pakistan’s bunker industry has a market share distributed in chunk and pieces. Almost 55% of the share is enjoyed by Orion Bunkers, while the remaining 45% is shared between six to seven other bunker suppliers present at port Karachi and port Bin Qasim. “Faisal Oils, after being present in the international bunker market for a couple of decades, has now started showing interest in local dredgers and focusing on other local ongoing projects in port Karachi and port Bin Qasim. “This leaves behind the international bunker market business for the suppliers holding the major chunk of market share in the bunker industry of Pakistan,” Mr Sher concludes.
Software to save fuel New energy efficiency package to be fitted on VLCC newbuildings for AET.
ISC tanker-owning subsidiary AET has ordered NAPA-DSME Power software packages for installation on four newbuild 319,000 dwt VLCCs. The NAPA-DSME Power software is intended for optimising, monitoring and following up fleetwide fuel consumption and ship performance. Ship design and operations software house NAPA says that owners and operators can realise considerable savings through making ship operations more effective and environment-friendly. A collaborative software from NAPA and Daewoo Shipbuilding & Marine Engineering Co (DSME), NAPA-DSME Power is said to be able save up to 5% of a tanker’s fuel costs. This is achieved by determining the optimal trim, route, speed profile and engine configuration for any given voyage. Using sensors integrated with DSME’s energy efficient tanker designs, the software monitors energy efficiency, emissions, fuel consumption and trim. This data is immediately accessible to officers onboard, along with weather updates, arrival times and other key performance indicators to inform decisions and enable efficiency optimisation in ‘real-time’. Fast becoming an integral part of DSME’s Green Ship design concept, NAPA-DSME Power is also said to increase the safety of operations. NAPA claims the software enables owners to “future proof” their vessels at the newbuild stage. It explains that the software not only affords compliance with current regulations but is also expected to fulfil the anticipated requirements for energy efficient ship operations and emissions monitoring and reporting over the next few years. This includes, but is not limited to, the upcoming Ship Energy
Efficiency Management Plan legislation, which will take effect from 1 January next year. NAPA’s president for operations, Matti Salo, says: “With tightening environmental regulations and increasing operational overheads, the maritime industry continues to face an evolving and challenging market. At NAPA, we are committed to developing products that deliver tangible benefits to customers, directly supporting their ability to effectively manage this cycle of change. “In choosing NAPA-DSME Power, AET has selected an innovative approach to operations management that will provide them with the ability to benefit from fuel efficiencies whilst simultaneously managing their environmental impact.” AET operates 12 VLCCs, 58 aframax and one panamax crude tankers and 13 products tankers. AET has a further 10 vessels on order.
The software is compliant with current and SEEMP legistion
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GEoGraphical focus: GREECE
Despite the dire state of the Greek economy and the Euro crisis, the Greek bunker industry carries on.
iven the tumultuous political and economic situation in Greece over the past year it would be amazing if the Greek bunker industry could have reported an outstanding 2011. In the event there was a small decrease in volumes supplied in 2011, to 3.3m tonnes compared to the 3.4m tonnes achieved in 2010. Piraeus accounts for about 90% of total Greek bunker sales and 90% of that is 380 cSt fuel, with 180 cSt and MGO representing 7% and 3% respectively. Product for the Piraeus market comes from three refineries, two owned by Hellenic Petroleum with about 60% of the market, the third is the private sector Motor Oil Refinery. Based on 2009 figures, EKO and Aegean Marine Petroleum Network Inc are the two largest suppliers, each with about a quarter of the market. The next largest supplier last year was JetOil with about 18%. Other players include SEKAvin, SEKA and ETEKA with 10.1%, 8.9% and 6.1%, plus there are about 24 other active suppliers. Aegean is now a major international bunker player, its Greek operations represent only a small part of its total activities. Recently it took delivery of its latest 6,270 dwt bunkering tanker newbuild, the Symi, from Qingdao Hyundai Shipyard, China. It is the last of 31 newbuildings and is expected to operate in the West African market. Aegean reported a $6.3 net profit for Q4 2011, compared to a $12 loss a year earlier. The company’s president, E Nikolas Tavlarios said, “Our success in steadily enhancing the company’s operational and financial results is directly attributable to the progress we have achieved to date in the execution of our business strategy outlined by management a year ago.” He added, “Going forward, we will maintain our focus on taking advantage of the positive demand for Aegean’s comprehensive services and leveraging the company’s world-class platform, highlighted by global operations in 19 countries covering nearly 60 ports, extensive risk management controls, blue-chip customers, one of the largest double-hull bunkering fleets in the world, on-site blending facilities and storage capacity expected to exceed 1.5 million cubic meters. With a growing and sophisticated integrated marine fuel logistics chain, combined with substantial financial liquidity, we are
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in a strong position to continue to differentiate Aegean within the industry and drive future performance in 2012, and beyond.” Alexander Prokopakis, general manager of JetOil Bunkering, remains cautiously optimistic about prospects for the Greek bunker industry despite the traumatic economic and political crisis which has overtaken the country. He says it impossible to predict whether there will be more strikes affecting the bunker industry but he hopes for a quiet period during the summer. JetOil is part of Mamidoil, a member of the Mamidakis Brothers Group which was established in the late 1960s and is now active across sectors including petroleum trading, marketing and distribution, shipping, hotels and tourism and food and beverages. Mr Prokopakis says the wider economic problems do have an adverse effect on the bunker industry even though it is a global business mainly serving internationally trading vessels. Almost all Greek bunker supplies are vessels trading to Greece with very few bunkers-only calls even though prices are lower than in some competing ports. Mr Prokopakis told World Bunkering that 2010’s very welcome 23% increase in cruise ship arrivals was being followed by a more modest increase. On the other hand, a surge in car carrier arrivals in 2010 was not sustained, as new car sales slumped in the EU in general and especially in Greece. Meanwhile, the large Greek ferry industry is in a worse position than a year ago. It is being squeezed three ways: tourism, both local and international is down, the cost of bunkers is a big percentage of its outgoings and finance is no longer available. The Greek government does not publish a breakdown of bunker volumes by supplier but Mr Prokopakis believes JetOil has held its market share of 19%, as one of four significant players on the Piraeus scene. In 2010 the company took measures to cut its costs, including reducing its bunker tanker fleet from four to three and improving the utilisation of the remaining vessels. Looking ahead Mr Prokopakis is upbeat about the long-term prospects but expects this year and next to be “tough”.
GLOBAL BUNKER SUPPLIERS AND TRADERS
Peninsula Petroleum is a major physical bunker and lubricant supplier operating from the ports of Gibraltar, Ceuta, the Canary Islands, Panama, Athens and Singapore. As a physical supplier and a worldwide trader with annual sales in excess of 6,000,000 tonnes, we have the resources and capabilities to guarantee the highest quality products and first-class customer care at all times. With offices in London, Gibraltar, Geneva, Tønsberg, Athens, Dubai, Singapore, Shanghai, Tokyo and Montevideo our highly skilled staff, which includes more than 15 nationalities, is ideally placed to make the most of their vast experience and expertise. Available 24 hours a day, 7 days a week, 365 days a year, we provide professional, cost-effective ways of meeting marine fuel needs, swiftly and efficiently – anywhere in the world.
LONDON Tel: +44 207 766 3999
GIBRALTAR Tel: +350 200 52641
DUBAI Tel: +971 4 4458435
SINGAPORE Tel: +65 6238 6621
GENEVA Tel: +41 22 322 9600 SHANGHAI Tel: +86 21 5386 8866
TØNSBERG Tel: +47 333 40 100 TOKYO Tel: 81 3 5208 1511
ATHENS Tel: +30 210 4287800 1 MONTEVIDEO Tel: +598 2903 3450
GEoGraphical focus: STRAIt OF GIBRALTAr
Mixed fortunes Algeciras
unker volumes surged at Algeciras last year, with deliveries rising by more than 24%, to 2.6m tonnes, supplied during 28,009 ship calls. A port spokesperson listed the factors that attract owners to it: “The Port of Algeciras Bay offers four anchorage areas, at anchorage D pilotage is not compulsory when calling for bunker operations and ships can also get the following benefits regarding port dues: MARPOL is free of charge, light dues are free of charge from the fourth call onwards and port taxes are free of charge for up to 72 hours.” She also noted the port’s current facilities: “The Cepsa refinery has a total storage capacity of 2,100,000 cu m, 900,000 cu m of which are dedicated to crude oil storage and the rest to refined products. The refinery has a jetty with seven berths and a single mooring buoy anchored in the bay.” She added: “The CLH storage terminal has a 197,000 cu m total nominal capacity in 20 tanks. The terminal is directly connected by pipeline to the berth. As far as bunkering is concerned, it is operated by Ryttsa (Repsol YPF) and Cepsa Marine Fuels.” Supplies in the anchorage are currently being made by five double-hull barges. Looking ahead, Vopak’s tank storage terminal is scheduled to become operational during the first quarter of 2013. It will have a total storage capacity of 403,000 cu m, and it will be the first independent provider of bulk liquid storage in the Spanish port.
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ibraltar is the largest bunkering centre in the western Mediterranean but is operating close to full capacity. Against local industry expectations the 3.4% year-onyear drop in Gibraltar’s bunker volumes experienced in 2010, to 4,283,375 tonnes was not reversed in 2011. In fact last year’s figures show a slight decline to 4,265,08 tonnes. Given that the neighbouring port of Algeciras had particularly buoyant figures in 2011 it is reasonable to conclude that it attracted some of Gibraltar’s potential customers. Congestion remains an issue but, as with all other contentious policy topics, no real moves were made in the run-up to last December’s general election, which saw a change of government after 12 years of Gibraltar Social Democrat rule led by chief minister Peter Caruana. His successor is Fabian Picardo, of the Gibraltar Socialist Labour Party, who leads a coalition with the Liberal Party. Responsibility for bunker-related issues now lies with the new Minister for Tourism, Public Transport and the Port, Neil Costa. Already the new administration is grappling with demands for the expansion of port facilities. Just before visiting the Shipping Convention in Miami, for a series of meetings with senior cruise line executives, Mr Costa said: “The Government is currently considering a number of options to accommodate more, and larger, cruise ships, as well as the shore-side infrastructure to handle passengers more efficiently, comfortably and safely. I look forward to discussing these issues and seeking the advice of cruise executives, who ultimately decide whether Gibraltar is included in their itineraries or not.” Last year the out-going Gibraltar Port authority chief executive officer, and Captain of the Port, Peter Hall told World Bunkering that
ADDAX BUNKERING SERVICES AEGEAN MARINE PETROLEUM ALBA PETROLEUM LIMITED AMKOIL LTD ARKAS HOLDING BALTIC FUEL COMPANY C.I INTERNATIONAL FUELS LTDA CUROIL NV GAZPROMNEFT MARINE BUNKER LTD INTERTEK COMMODITIES ISLAND OIL (HOLDINGS) LIMITED ISOBUNKERS LLC JB SOROTTO LIMITED M/S ADITYA MARINE MAMIDOIL - JETOIL SA NAKHODKA-PORTBUNKER CO. LTD. NEFTEHIM-BUNKER JSC NIZHEGOROD-BUNKER LTD. OIL MARKETING & TRADING INTERNATIONAL. PENINSULA PETROLEUM LTD PETROLEOS DE PORTUGAL PLATTS PORT AUTHORITY OF ALGECIRAS BAY RIDA PETROL URUNIERI A.S. RUSSIAN ASSOCIATION OF MARINE & RIVER BUNKER SUPPLIERS ROSNEFT MARINE LTD SEARIGHTS MARITIME SERVICES PRIVATE LTD. SULLIVAN SHIPPING AGENCIES LIMITED TRANZIT DV UNICOM HOLDING S.A VILMA OIL S.L. VILMA OIL S.L.
For more information on these companies and to view this publication online using the innovative Page-Turning technology, visit:
World Bunkering Summer 2012
Bunker volumes surged at Algeciras in 2011
the priority was “being able to expand volume”. That, however, will be difficult to achieve unless measures are taken soon to increase capacity at the territory’s anchorage. His successor, Roy Stanbrook, only took up the post in April so there is a policy pause over key issues: how to improve and expand passenger ship facilities and how to expand overall bunker capacity. Gibraltar mainly relies on floating storage to support its bunker operations. There are currently no land-based storage tanks available for bunkering although Cepsa/Peninsula takes its supplies from the nearby Cepsa refinery across the border in Spain. The three storage tankers, operated by Aegean, Bominflot and Vemaoil, take up a significant part of the anchorage. An attempt last year by some Spanish groups to have the practice banned under EU law failed but nevertheless there is a general view that there should be at least some onshore storage. Based on current arrangements with all bunkering taking place in the Western Anchorage, Gibraltar is close to capacity and sometimes suffers from congestion, especially during bad weather. One option would be to bring the Kings Lines storage tanks, previously used for bunker operations, back into use. However, it would need substantial investment to bring them back into operation and up to modern standards. Another proposal is to enlarge the detached mole and use it as a bunkering facility. The other obvious option for increasing volumes is to allow bunkering on the East Side of the Rock. Although trial bunkerings there were successful it is controversial for two reasons. One is that it stirs up the long-standing disagreement with Spain over the sovereignty of the waters around the territory. Secondly, environmental groups oppose it on the grounds that the risks of oil spills from operations represent an unacceptable risk to the environment. An official review has been underway since last year but during the election the winning Alliance came out against the proposal. Meanwhile, in what is being seen as a highly positive move, a Port Operator’s Association, has been formed. It more or less replaces the old Shipping Association which has been defunct for some time. One local agent said: “This will enable the shipping community to have a clear voice that can be heard by government.”
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Ceuta Calls are up.
he Spanish territory of Ceuta, on the African side of the Strait of Gibraltar received 4,754 bunkers ship calls in 2010, and indications from a local source are that volumes were up about 14% last year. Encouragingly the first quarter figures were up 8% even though there is usually a seasonal dip in February and March. The largest supplier is Cepsa but the presence of the Spanishbased oil trader Vilma Oil as a physical supplier since 2007 has pushed the volumes up. Cepsa supplies 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 using it 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 Ducar I. 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 2009 the company has also sold 0.1% sulphur gasoil and from beginning last year it has supplied 1.% 380 and 180 cSt. Since January 2010 Vilma has chartered a 3,684 cu m capacity bunker barge to work in the anchorage.
GEoGraphical focus: Malta
Fierce competition Malta’s bunkering industry saw a slight downturn in 2011.
hile it benefits from an ideal strategic location on the main shipping lanes through the Mediterranean, Malta saw its volumes drop slightly last year. In 2011 its bunker industry delivered a total of about 1.08 million (m) tonnes of residual fuel oil and just over 0.23m tonnes of MGO, compared to 2010’s figures of 1.2m tonnes and 0.25m tonnes respectively. The dip in total volumes occurred despite an increase in bunkers-related ship calls, from 3,064 in 2010 to 3,089 last year. The Malta bunkering scene comprises four companies offering residual fuel and several others just selling MGO. Shell International built a storage facility at Marsa in 1960 and ran it until 1975. It was then taken over by the government and passed on to Sea Malta Company in September 1982, when Mediterranean Offshore Bunkering Company (MOBC) was established. MOBC operated as a physical supplier for 20 years, and ran a fleet of bunker barges, until again being taken over by the government in 2002. In 2004, MOBC became solely a storage facility operator. Last year the Malta Environment and Planning Authority took action over complaints of air pollution from MOBC’s facility, and loading and discharging fuel was stopped temporarily. The government then announced a new system of environmental certification. There is, however, another terminal, Marsaxlokk, operated by Oiltanking. It has four berths, the largest able to take ships of up 120,000 dwt. Among promising proposals for the future, Horizon Terminals Limited, a wholly-owned subsidiary of Emirates National Oil Company, plans a new terminal with a capacity of 600,000 cu m for black and clean products, with one jetty for very large crude carriers and two for vessels up to 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 up
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to 380 cSt by barge. The company also operates the country’s only waste oil recycling facility. The Carmelo Caruana Company has been offering ship to ship transfer services off Malta since the 1980s. Meanwhile, US-based independent marine fuel supplier Bunker Supplies Malta Limited has been running a joint venture to supply MGO in Valletta, Marsaxlokk, and offshore Malta for just over a year. Physical supplier Island Bunker Oils was set up in 2002 and operates three bunker barges. It leases facilities at MOBC in Marsa as required and also leases storage at Oiltanking in Marsaxlokk. This year’s global 3.5% sulphur cap does not appear to have been a problem according to Ian Sullivan of agents Sullivan Shipping who confirms: “All cargoes that are ordered are 3.5% max.” On low-sulphur fuel he says: “Demand for LSFO is approximately 10% that of the HSFO.” He adds that HSFO cargoes had been “a bit tight” on avails, “but now it seems everything is back to normal”. Last November, the government’s plan to levy a E5 ($6.7) per tonne tax on fuel supplied to ships both inside and outside its territorial waters caused concern among the bunkering community. The Malta Chamber of Commerce, Enterprise and Industry met with shipping and bunkering business representatives where the industry’s opposition was made clear. Since then there has been no further news on the proposal. Looking ahead, Mr Sullivan says: “With regards to Sullivan Shipping, we keep striving to increase our market share in this area. Understanding the owners’ requirements remains of key importance, thus enabling us to provide the best possible complete service to them. Sullivan Shipping, together with a strong network of partners, will be extending its services into Libya in the near future offering both onshore and offshore services.” On the overall scene he notes: “The main challenge facing Malta’s bunker industry is competition from other ports including Gibraltar, Piraeus and Kali Limenes.”
GEoGraphical focus: TURKEY
Vibrant market Despite global gloom, Istanbul’s figures increased last year.
bout 50,000 ships pass through the Bosphorus and Dardanelles annually, together carrying some 400 million tonnes of cargo and providing Istanbul with a huge potential market. Moreover, it has an unrivalled strategic location, sitting on the only route between the Black and Mediterranean Seas, which makes it the region’s bunker and ship supply hub by default. But the vibrant state of the Turkish market is no accident, it is characterised by strong competition between several dynamic companies. Official figures for the Turkish bunker industry are difficult to find and similarly market share statistics are not readily available but Energy Petrol’s chairman and chief executive Mustafa Muhtaroglu was quoted recently as saying that Istanbul’s 2011 total bunker volumes were 1.8m tonnes, up from 1.6m tonnes in 2010. According to local sources, there are currently eight bunker suppliers in Istanbul with five accounting for around 85% of the market as well as a number of MGO supply specialists. Energy Petrol announced a 12% year-on-year rise in volumes in 2011 to reach 234,000 tonnes. Among the big players, Anadolu has the advantage of a floating storage facility located at the port of Ambarli close to Istanbul’s anchorage. Other established suppliers include Petrol Ofisi, which has a terminal in the same area, CYE Petrol, Energy Petrol and TBS. Lukoil-Bunker Istanbul and Oiltrade supply gas oil while Shell, Mobil and BP supply luboil only. Both Lukoil and Oiltrade are moving from just supplying MGO and now offer IFO in Istanbul and Izmit Bay using a fleet of three bunker barges, while four other barges supply MGO only. An Oiltrade spokesperson told World Bunkering: “We started fuel oil supplies for a trial period a few months ago. As this has delivered good results, both in terms of demand and from an operational perspective, a new fuel oil tanker is under construction while an
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additional gasoil tanker is being converted to carry fuel oil.” But the supply of low-sulphur fuel oil (LSFO) at Istanbul got off to a false start. Of the Turkish suppliers, CYE Petrol alone started offering LSFO in October 2010 with the expectation of supplying vessels heading for the North European and Baltic emission control areas. It emerged recently that no LSFO has been supplied since August last year although CYE has been quoted as saying that it could resume supplies quickly when demand justified it and that it was “just a matter of time”. A new entrant, Rida Petrol Urunleri, has joined the already highly competitive Istanbul market, initially supplying small volumes of MGO. A member of the company’s board, Anar Rzaev said: “We entered the market in March 2012. As a company we are a new entrant, but our bunkering team has over 10 years’ experience in the Turkish bunker market. “So far we have exceeded our projections of MGO sales in the first month of trading alone and we are on track to meet our volume projections for 2012. At this stage we have started supplying MGO but we are starting IFO supplies by Q4 of this year.” He added: “We feel that Turkey’s bunker suppliers face the same challenges that bunker suppliers face globally at the moment, which is primarily the poor economic health of shipping companies and international trade. However, we feel that the worst of the storm is behind and there is a positive outlook for the future of the bunker supply market in Turkey.”
GEoGraphical focus: Cyprus
The Cypriot bunker market has been ticking over for the past few years but there could be better times ahead.
ccording to Cyprus customs’ statistics there were 4,289 ship calls in Cyprus in 2011, down from 4,433 in 2010. About 1,000 of these involved taking bunkers, while about 600 were bunkers-only calls. The total volume of the market is estimated to be about 200,000 tonnes a year. The Cypriot bunker market has been at best stagnant for the past three years or so. In reality there has probably been a small decline, partly due to the ongoing economic downturn. Industry insiders say, however, that certain additional expenses imposed by various Cypriot authorities have had a negative impact on competitiveness. On the bright side, the local bunker industry hopes a number of new developments will boost business. These include the development of offshore oil and gas fields in the south of Cyprus and the construction of a modern oil terminal at Vassiliko by VTT Vasiliko Limited. Both of these projects are expected to increase throughput in the energy sector and consequently the number of oil tankers that will be calling there. Island Petroleum Limited describes itself as the main physical supplier in Cyprus and also in Constanta, and is at the centre of what has evolved into the Island Oil (Holdings) Group. Island Oil Limited was established in June 1992 by Chrysostomos Papavassiliou for the initial purpose of representing Tramp Oil & Marine Limited, a powerful bunkertrading group based in London. In 1994 it entered the marine-bunkers physical-supply market in Cyprus. Currently, the group employs 127 shore
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and sea personnel and its annual turnover is close to $400 million. It runs a fleet of five vessels, the largest being over 6,000 dwt, and has significant storage facilities at Constanta, comprising two fuel oil tanks of 5,000 and 4,000 cu m capacity and a 2,000 cu m gasoil tank. Looking ahead to future prospects an Islands Petroleum spokesperson said: “The simplification of customs controls procedures and the abandonment or reduction of Cyprus Port Authority charges, such as wharfage fees, would help toward further growth of not only the local bunker market but the general energy market with an overall positive impact on the local economy.”
Cyprus delivers about 200,000 tonnes a year
ASIA PACIFIC MARITIME
Preparing for change
As its Singapore-based regional manager Kwok Fook Sing reports, IBIA held an informative and thought-provoking seminar at the recent Asia Pacific Maritime event.
nce again, Asia Pacific Maritime (APM), which took place 14-16 March in Singapore, has been an outstanding success with packed halls throughout. The venue for the event, which takes place once every two years, was the very glitzy and recently opened Marina Bay Sands complex. Over APM’s three days various seminars, conferences and debates took place in an auditorium located within the exhibition halls. IBIA took the opportunity to hold a seminar and discussion on APM’s final morning, attended by more than 70 members of the shipping community. Lim Teck Cheng, vice chairman of IBIA’s Asia branch, acted as the moderator for the seminar, while also on the platform were Dennis Ho, general manager, Aegean Bunkering (Singapore), Trevor Harrison, IBIA’s acting chief executive, Khorshed Alam, vice president of GL-FutureShip, South Asia/Oceania, Abdul Ghani, area sales manager, DNV Petroleum Services and Simon Neo, regional manager, Integra Fuels. Trevor Harrison gave an update on developments at the International Maritime Organisation, particularly on moves to cut greenhouse gases and especially the shipping industry’s CO² emissions. He also looked at the challenges involved in meeting the various deadlines for reducing the sulphur content of fuel. GL-FutureShip’s Khorshed Alam examined the possibility of using LNG as a ship fuel. He pointed to the 95% reduction in SOx emissions that is achievable by using LNG and to the reduction of NOx to IMO Tier II levels. He highlighted the need for caution over methane slip, but overall he painted a positive picture. He also considered the question of whether to go for pure gas engines or 4 stroke dual fuel engines From an economic perspective he said that investment payback would range from 8 to 43 months. He reported that a joint GL MAN study carried out into LNG and scrubbers shows that within emission control areas the LNG-HFO price differential and LNG tank costs are the dominant parameters to be considered for future LNG-fuelled propulsion solutions.
He concluded by saying that the challenges posed by regulatory requirements for clean fuel are forcing shipowners to look again at the alternatives to fuel oil for their fleets. DNVPS’s Abdul Ghani gave a presentation on ISO 8217 2010, in which he noted that the challenge was to keep in tune with the demanding regulatory time line. He stressed that the new standard is not mandatory, but suppliers are subjected to the requirements of local law. He explained that the new tests are: Distillates – Acid number, H2S, Oxygen stability, Lubricity Residual – Acid number, H2S, CCAI, Sodium Ghani felt that there had been a slow take-up rate by shipowners. From 1 July 2010 to 1 February 2012, only 5.59% of all test samples by DNVPS had been to 2010 specs. According to Ghani, the reasons include the industry not being ready in 2010, while the 2005 spec is still widely used. Many ships are ones on long-term charters with a 2005 spec agreement. Also there is a “wait and see” attitude and a reluctance to take the lead. Simon Neo spoke on fuel availability in the Far East. He noted that the major bunkering ports in Asia – Singapore, South Korea, Hong Kong, China, Malaysia, India – all use imported bunker cargoes, from the Baltic, Venezuela, Gulf, Caribbean, India and Russia. Estimated quantities arriving in Asia in 2010 were 30m tonnes with the figure rising in 2011 to 36m tonnes. He said that most of this needed to be blended. He also believed that unpredictable prices were due to market volatility, itself prompted by fluctuating crude oil prices, geopolitical problems, issues in Iran and the Middle East, plus speculators. On ISO 8217 2010 specs, Neo said that, based on fuel test results, most bunker fuel oil already meets ISO 8217 2010. A comment from the floor was that suppliers were unwilling to issue guarantees to shipowners, and traders were unable to obtain them from refineries. Mentioning financial challenges, Neo concluded that suppliers were tightening credit lines while buyers were widening their sources of credit from suppliers worldwide.
World Bunkering Summer 2012
review: International Bunker Conference
Adapting in complex times
Nearly 200 delegates gathered in Oslo on 18 April for the International Bunker Conference, as Sandra Speares reports.
he theme for this year’s International Bunker Conference was: ‘Increasing complexity – how to adapt’. With a “massive state of global chaos” prevailing, there was no danger of a “quick fix”, according to Paul Stebbins, executive chairman of World Fuel Services. While corporate earnings are up, Stebbins said, there is a lot of anxiety about what to do with those earnings and earnings increases have been made by cost cutting while actual productivity has not gone up, he told delegates. In the shipping industry, asset values have collapsed and with the earnings trajectory, operating costs and overcapacity have combined to create the “perfect storm”, Stebbins said. Over-supply, he suggested looks set to continue for the next two years, but there will be opportunities and innovations in technology. There has been a paradigm shift and the market is increasingly dominated not just by the independent oil companies but also by trading departments, not only of the likes of Morgan Stanley but also Exxon and Shell, to name but two. Residual fuels will continue, he said to be “pretty important”. New legislation on sulphur content is a “brick wall” that everyone is going to hit, Stebbins said. However, while a legislative line has been drawn in the sand, commercial reality has yet to catch up. Oil companies are not going to invest in desulphurisation, he believed, while scrubbing technology was also capital intensive. Then there was the issue of the supplies of crude necessary to convert to the use of gasoil, he said. A further 10m barrels per day would need to be produced. To add to the list of challenges is the fact that it is very difficult to keep track of pricing, he said, whether on the buying or the supply side. Price volatility not only “wreaks havoc” with bank lines and credit facilities, but with working capital and cash flow, too.
World Bunkering Summer 2012
The pool of capital has shrunk and “if you can’t roll over your revolving credit facility you are going to get a lot less than you used to have and it is going to cost you more”. In terms of the industry, he said, this means that there is a “tremendous amount of pressure on bank covenants, on liquidity profiles in the supply community and the trading community. I am much more in the banking business than I was four years ago. Now I’ve become a cash flow lender to both the shipping industry and to the supply industry.” Industry losses and declining refining capacity are just two problems as was a “dysfunctional political process”. According to Stebbins, strategic procurement has become far more challenging for the average buyer than it has in the history of the industry. Quality is highly variable round the globe and there is a lot of pressure to cut corners. Counterparty risk is also an issue. “There isn’t a supplier in the independent market who isn’t struggling with working capital constraints at US$800 dollars per tonne.” Supply of low-sulphur fuels is evidently a source of considerable concern going forward. As Adam Ritchie of Shell Trading put it, the provisions of Marpol Annex VI are not to be taken lightly. While he says that at a global level there is not a supply problem for low sulphur at present, supplies may not be in the right area. “If you know where the 0.1% fuel is we want to know.” The big shift will be to a global cap of 0.5% in 2020. While the industry is on a path towards reduced environmental impact, it is not a question of a fuel directive, Mr Ritchie said. It is more a question of emission regulation and is therefore not necessarily something that is dealt with from a fuel perspective. This can be done in a number of ways, such as focusing on energy sources. Desulphurisation is a costly business, as will be the introduction of scrubbing technology. To make the transition to creating low-sulphur
fuel might, according to some estimates, involve $100bn of capital. The cost of turning high-sulphur fuel oil into gasoil is of “about the same order of magnitude” he said. “Shipping companies would prefer not to use gasoil, they would prefer to use the low-sulphur fuel oil, but it isn’t going to be there.” The alternative is scrubbing technology, in itself an expensive option, he said, with a $20-$30bn price tag put on achieving scrubbing technology according to some analysis. Challenges faced by suppliers today are more delicate and complex than might meet the eye according to Peter Grunwaldt, director of global sales at Chemoil. These include sourcing and security, he said. “Long and short term contracts are renegotiated all over the world all the time to keep the system running. We are all trying to determine what our customers will require, now and in the future and even where they are going to require it, so we can negotiate intelligent contracts to fit the purchase pattern.” At times, cutter stocks are not readily available. Physical suppliers, he said, are the ones that the finger will be pointed at when “there is no oil in our tanks”, Mr Grunwaldt said, “not the trading house that just bought all the cutter stock in the market”. Keith Forget, senior technical consultant at DNV Petroleum services warned that the biggest risk of non-compliance with the new Marpol requirements was the quality of cutter stock, which could contain catering and chemical waste, etc, which could put companies in breach of Marpol Annex VI. New regulations are not making it any easier for the physical supplier. “Traditional
bunker patterns will be altered by this, and markets we thought were bullet proof will shrink very fast,” Mr Grunwaldt warned. With tougher quality legislation more blending will be taking place requiring more complex sourcing, he said, raising the prospect of more problems with offspec bunkers. Higher prices will not lead to higher prices for physical suppliers, he warned. Credit risk is the “elephant in the room” he said. Credit managers are now ruling every company, he said, and he urged buyers to be open about their finances when suppliers came to them asking for credit information. According to Simon Chattrabhuti, head of tanker market analysis at Clarksons Shipbroking, the biggest issue is the transition towards the increased use of distillates. If the move is towards increased use of distillates from 2015 in the emission control areas, and following that with regulatory deadlines in 2020 or 2025, “the fuel that we are moving to is the one that is already in greatest demand in the global product suite”, he warned. While in 2009 distillate demand took the biggest hit, he said, demand has rebounded strongly. As far as gasoil and diesel are concerned, there was over 500,000 barrels per day demand growth last year, he said, and it will be the product with the highest growth going forward. Middle distillates demand took a hit in the US in 2008 and 2009, and although the position has rebounded somewhat that means that there remains spare availability in the US. However, some of this will be absorbed with the coming of the North American ECA.
In Europe, middle distillates are the products in strongest demand, as most people drive diesel cars. Europe is already significantly short of gasoil and diesel, he said. If more middle distillates are used in the Baltic and the North Sea, more and more product will have to be imported. European refining capacity has been declining, and he did not believe that more middle distillates would be provided from Europe by the middle of the decade. The traditional import source has been Russia, but the trend is declining, Mr Chattrabhuti said. Increasingly product is coming from Asia. In the US, a huge amount of refining capacity is being shut down on the East Coast. From 2011 to the first part of 2012 there has been the equivalent of 1m bpd of refinery shut downs, he said. The Philadelphia refinery is expected to close a month before the North American ECA comes into force, meaning that bunker fuels will have to be imported in greater volumes. On the US Gulf the opposite is true, with refining capacity increases. The problem is that the Jones Act prohibits moving supplies from the US Gulf to the East Coast, unless this is on a US flagged ship. The US Gulf, he said could supply product to Europe, and other sources he mentioned include the Middle East and India which, he said, was the real potential source going forward. Jeffrey Lantz, director of commercial regulations and standards at the US Coast Guard (USCG), said he believed that supplies would be available to meet demand in the US ECA. While the USCG will not be going 200 miles offshore to check that the ships have the right fuel on board to enter the ECA “it is important that ships can demonstrate compliance. That’s what we are looking for. If we find discrepancies, we will look further”. He urged those present to “be upfront on where you stand on compliance”. According to Jane Dahl Christensen, executive vice president of physical supply at OW Bunker, the key issue to be faced regarding the new regulations was preparation, owners and operators needed to start thinking of what to do. While the use of scrubbing technology is one possible solution, there was nervousness in the market about whether manufacturers would be able to meet the deadline. In addition, she said the desulphurisation process was expensive and will have an impact on pricing. There is also a perception that there is a high proportion of substandard fuel in the market. She believed a lot of smaller suppliers will have difficulty in securing supplies of low-sulphur product.
Delegates at this years IBC considering how to adapt to increasing complexity
World Bunkering Summer 2012
Open for business
Posidonia 2012 will highlight the Greek shipping industry’s contribution to Greece’s economy, which in these difficult times is not to be under-estimated.
enior executives of the global maritime industry will be in Greece to attend Posidonia, underlining the leading position that Greek shipping enjoys around the world, says this year’s Posidonia chairman, Themistocles Vokos. The event runs from 4-8 June in Athens. Mr Vokos adds: “This year we are turning a long awaited page as Posidonia moves to Metropolitan Expo, an exhibition centre spanning 45,000 square metres, which will further improve the image and global appeal of Posidonia as the shipping industry’s ‘finest forum’ and will significantly increase the record number of exhibitors and visitors it attracts. “An important feature of this year’s Posidonia,” he says, “is the newly launched conference programme, which will provide insight into the challenges facing the maritime industry.” John Lyras, chairman of the Posidonia coordinating committee and past-chairman of the Union of Greek Shipowners, adds: “We welcome all participants to this year’s Posidonia, which takes place at a time when the entrepreneurial spirit and the international skills and expertise of the Greek Shipping Community are assets that both Greece and the European Union should use, as we face the challenges ahead.” Underlining the continuing importance of Greek shipowners, the Greek Shipping Co-operation Committee (GSCC) has released figures showing that, although in the year ended 31 March 2012, the Greek-controlled fleet decreased in terms of ship numbers in the year under review, from 3,848 to 3,760 vessels, its gross tonnage rose from 153.13m gt to 155.90m gt, while, in deadweight terms, the increase was from 261.68m dwt to 264.05m dwt. This is a new record in the 25 years since the GSCC first published statistics. The latest figures also include 437 newbuildings, aggregating more than 25m dwt, on order with shipyards around the world.
World Bunkering Summer 2012
Meanwhile Golden Destiny’s Annual Newbuilding Report shows that Greeks continue to place orders, with bulk carriers holding the lion’s share of their newbuilding appetite, 62% of the total number of orders placed in the first three months of this year. Preliminary statistics show that Greek owners, before the end of the first quarter of the year, have spent about US$1bn for 21 newbuilding contracts, 13 bulk carriers, six tankers and two gas tankers. Overall, Greek newbuilding activity represents 7.4% of the total number of orders placed in January to March 2012, in contrast, for example, with Chinese players who hold 5.3% for 15 orders in total. Greek investors’ interest for the construction of newbuilding units remains intense in the bulk carrier segment, despite the fragile sentiment of dry market in the first quarter of the year, as the BDI hovered below the psychological barrier of 1,000 points. In the secondhand market the buying interest of Greek owners is even more intense than for newbuilt units, with 32 purchases at a total invested capital in the region of $612m. The Posidonia conference and seminar programme will examine important topics currently affecting the maritime industry. Decisionmakers in the fields of trade, finance, shipbuilding, environmental policy and technology will discuss and debate strategic issues while attempting to evaluate the macroeconomic outlook for the global economy and its impact on sea trade. This year’s Posidonia (www.posidonia-events.com), the organisers say, will also be good news for Greece, as it will project a positive image of the country and send a strong message to the world that Greece has success stories to celebrate. These include the unique achievements of the Greek shipping industry on the world stage. While the Greek economy may be experiencing challenging times, the message from Posidonia is sure to be that its maritime sector is still very much open for business.
Russian news and views
A round-up of developments in the bunkering scene by Olga Bogacheva.
The well respected Fifth Russian Forum on Bunkering will be held on 28-29 June in St Petersburg. Its theme will be the “Current State and Prospects for Development of Russian Bunker Services Market”. It is being organised by the Russian Association of Marine and River Bunker Suppliers and is widely seen as the big bunker industry event in Russia. The topics will be: the bunker market after 2015; self-regulation of the industry; bunker supplies to transit vessels; marine lubricant supplies; the readiness of the Russian oil processing industry and bunkering services for 0.1% sulphur fuel production; alternative supplies of bunkers and bunkering services in inland waterways. The section on inland waterways will consider pricing, major market trends and the relationships between vertically integrated oil companies and independent operators (www.eng.mrbunker.ru). Lukoil-Bunker charters tankers
Two tankers, the Great Swan and TDT-3, chartered by Lukoil-Bunker Italy, started operations at the end of January. The 23,000 dwt Great Swan and the 12,000 dwt TDT-3 are equipped with onboard blending systems. Since April 2011, Lukoil-Bunker Italy has been supplying bunkers in the Atlantic, off Mauritania and Senegal. The majority of the company’s customers are fishing and transit vessels. Bunkering services are also provided at Northern African ports. The company
World Bunkering Summer 2012
supplies all types of high-sulphur heavy oil fuel, from IFO30 to IFO380, and gasoil. Meanwhile, Lukoil-Bunker’s total fuel sales grew by 23% and reached 1.65m tons in 2011. Its sales are expected to be 1.67m tons in 2012. The company plans to buy a further two bunker tankers this year for operations in the North-Western region. One is in the 5,000-6,000 dwt range, the other around 2,000-3,000 dwt. Currently the company and its subsidiaries operate in Russia, Bulgaria, Turkey, Italy, Romania, Serbia and in the Atlantic. BFC orders fourth tanker
A fourth dumb products tanker was laid down at Baltic Shipbuilding’s Zavod yard on 7 February for Baltic Fuel Company Holdings’ subsidiary Kontur. The 5,000 dwt tanker will transport oil products including cargoes for heating. The vessel will operate in waterways and sea areas open for non-self-propelled ships where the thickness of broken ice is below 20cm. The non-self-propelled oil tanker will be fitted with a double hull and 12 cargo tanks. The contract to construct four similar tankers was signed in November 2010. The vessels are expected to carry oil products from refineries in Central Russia to North-Western ports. Rosneft sets up subsidiary to supply fuel in Far East
Rosneft is establishing a new subsidiary, RN-Sakhalinnefteproduct, to supply fuel in Sakhalin Oblast. According to the governor,
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Alexander Horoshavin, his office has reached a preliminary agreement with Alliance, a company registered in Khabarovsk, to supply up to 4,000 tons of fuel to Sakhalin Island to increase competition in the local fuel market. Expansion of storage facilities there is under way. Rosneft is expected to increase the capacity of its storage tanks to 30,000 tons. Alliance is also looking at expansion opportunities. The governor said that the Sakhalin region should create its own fuel reserve, of about 7,000 tons, to be used in emergency. Bunker terminal for Taman
According to a PortNews report, Deputy Transport Minister Viktor Olersky has said that the proposed Taman port, in the Black Sea, will include a bunker storage facility. PortNews also quoted Andrey Vasiliev, general manager of Gaspromneft Marine Bunker, as saying that his company plans to participate in the terminal’s construction. According to forecasts, Taman port, the largest investment project in Krasnodar Kray, will attract about 40% of Russian export cargo currently handled at neighbouring countries’ ports. Implementation of the Taman sea port project is part of a Russian federal government programme: Development of Russian transport system (2010-2015). Total project investment is $3bn. Cargo turnover in Taman port is planned to reach 98m tons by 2025.
Gaspromneft Marine Bunker has five regional offices and two subsidiary companies. Gaspromneft Shipping operates the company’s fleet, which consists of both owned and chartered bunker tankers. Gaspromneft Terminal SPb operates an oil storage facility in the Kirovsky Zavod area of St Petersburg. Gaspromneft Marine Bunker operates at 15 sea and nine river ports. In 2011 the company also launched operations overseas, at Tallinn, Riga, Klaipeda, Rostock and Istanbul. In 2011 the company’s retail sales increased by 44%, while bunker volumes increased 150%, to 2.2m tons. This year the company expects to supply some 2.5m tons. Kirishi refinery to export low-sulphur diesel
Surgutneftegas Oil Company’s Kirishi refinery installed a new hydrotreater unit in February in order to expand the production and export of low-sulphur diesel. Analysts expect additional product will be exported because the national market prefers less expensive fuel. More than 800,000 tons of diesel fuel with a sulphur content of 50 ppm may be produced this year. Last year the refinery manufactured 5m tons of diesel mostly with
Gaspromneft buys bunker tanker
Gaspromneft Marine Bunker has acquired a new bunkering tanker to expand its operations at St Petersburg port. The vessel, renamed Gaspromneft North-West was visited by the Deputy Transport Minister, and Alexander Djukov, Gaspromneft’s chairman of the board of directors, on 2 March 2012. The vessel was built in 2011 in Tuzla, Turkey, and has a cargo capacity of 2,500 tons. She started operations on 1 February. Gaspromneft is pursuing ambitious goals in all the areas it is involved in, including the bunker business. The company plans to achieve a 20% annual growth in bunker sales, as well as a geographical expansion of its activities and the strengthening of its position in local Russian and foreign markets. The company’s chairman, Alexander Djukov, noted that the new tanker would improve the company’s position in the north-western region market, where marine fuel sales grew by 30% in 2011.
World Bunkering Summer 2012
Gaspromneft expands fleet
a sulphur content of up to 500 ppm. It is expected that the refinery will produce a diesel with a sulphur content up to 100 ppm soon. A trader noted: “It may be more reasonable to produce lowsulphur product right now if the technical possibility exists to deliver it into Primorsk pipeline immediately.” According to the Russian Ministry of Energy, last year Kirishi exported about 260,000 tons of diesel fuel a month through St Petersburg. $450m investment in Omsk refinery
A medium-term investment programme for Gaspromneft’s Omsk refinery costing $450m has been approved. At the heart of the programme is the construction of hydrotreater units for catalytically cracked gasoline and diesel fuel, which started in 2010. Projected annual capacity is 1.2m tons of gasoline and 3m tons of diesel fuel. In addition, all six existing production units will be modernised and a further eight added under this programme. Omsk is regarded as one of the best Russian refineries. In 2011, 19.95m tons of oil were processed there with a conversion rate 84.05%. Arkhangelsk deep-water port gets go-ahead
Construction of a new deep-water sea port near Mudjug Island in the northern part of the Dvina estuary was approved at a recent meeting of the board of Financial Council of Commonwealth of Independent States held in Moscow. The Council also approved a financial scheme to attract both Russian and foreign investors, according to a www.news29.ru report. The new deep-water port will improve the network of CIS ports and develop sea trade routes including the Northern Sea Route.
Rosneft looks to buy German refinery
Rosneft is interested in acquiring a refinery in Ingolstadt from Petroplus, which was declared bankrupt in January, Argus Media reports. Annual capacity is about 5m tons. It is thought to be valued at $1bn, but prices for European refineries have dropped recently. If Rosneft does get control of the facility it may process Russian oil supplied to Europe from Primorsk. Rosneft has not commented on these reports. Rosneft already owns oil processing capacity in Germany, having bought 50% in Ruhr Oel in May 2011. Ruhr owns four refineries with an annual capacity of 50m tons, which is about a quarter of all German output. Shipyard to be built at Kotlin Island
United Shipbuilding Corporation plans to start construction of the Novo-Admiralteiskaya Dockyard on the southern side of Kotlin Island on a 250 hectare site soon. The island is located in the Gulf of Finland, about 30 km from St Petersburg city centre. The new yard will be capable of building a large number of vessels annually for Russian and foreign clients. The necessary documentation has been filed for approval by St
Lukoil takes 20% in ISAB
The board of ERG, Italy, has approved a proposal to sell a further 20% of the shares in the company managing the ISAB refinery, located in Priolo, Sicily, to Lukoil for E400 million ($526m) excluding cost of oil stock. A Lukoil spokesman said that this was a partial implementation of the option granted to ERG when the joint-stock company was founded in 2010. The latest deal increases Lukoil’s share in the joint-stock company from 60% to 80% and is expected to be completed in the second quarter of this year. Rosneft looking to acquire German refinery
World Bunkering Summer 2012
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Petersburg’s administration. Initial investment is about $2bn. Landfill work on the site prior to construction of berths and workshops is expected to start shortly. St Petersburg’s 2011 bunkering figures
The total volume of bunkers supplied in the Leningrad Oblast last year was almost 2.7m tons. Of the total, 1.9m tons were delivered to vessels in St Petersburg, indicating that the market had almost returned to pre-2008 levels, when about 2m tons were supplied. The other 0.8m tons were supplied in Ust-Luga, Vysotsk and Primorsk. About 90% of the 2.7n tons was heavy fuel. There were significant seasonal fluctuations as usual. Maximum sales occurred in July (about 200,000 tons) but only about half of that amount was supplied in January. The three market leaders of 2010 confirmed their positions. The first was Gaspromneft Marine Bunker with sales of 515,500 tons against 336,500 tons in 2010. Lukoil-Bunker saw its sale rise to 493,000 tons from 400,000 tons in 2010, while Baltic Fuel Company Holding had sales of 211,500 tons, up from 194,000 tons in 2010). In total, 26 bunker companies operate more than 50 vessels at St Petersburg. The major suppliers of fuel are Omsk refinery (776,758 tons, including 695,530 tons of heavy oil), Antipinsky refinery (554,103 tons of heavy oil) and Mariysky refinery (202,302 tons of heavy oil). Kunashir Island opens for bunkers
Chevron is one of world leaders in the production and marketing of lubricants for marine and river vessels. With the agreement signed Gaspromneft-Lubricants has become the first Russian company to participate in Chevron’s global network of lubricant supplies. The licence allows production of Texaco marine motor oils from products manufactured by Gaspromneft at Omsk and Moscow lubricant plants. These facilities have been certified for the production of licensed Chevron motor oils. The marine oils produced by Gaspromneft-Lubricants were approved by leading manufacturers of marine engines and systems such as MAN-B&W, Sulzer, Wärtsilä, Caterpillar, Deutz, ABB and Rolls-Royce. Texaco motor oils produced by Gaspromneft-Lubricants will be offered in all key ports of Russia and Ukraine. Gaspromneft-SM, a branch of the company, will be opened in St Petersburg for the coordination of production and sales, logistics and storage of the new products. Gaspromneft-SM will also supply motor oils to Gaspromneft Marine Bunker, a leading operator of bunkering business in key Russian sea and river ports. “Commencement of marine lubricants production is an important stage of Gaspromneft motor oils business. Cooperation with the world leader in lubricant production widens business experience and brings new technologies to Gaspromneft. Synergy with the company’s bunkering business provides strong marketing instrument for the new products,” said Gaspromneft’s commercial director, Levan Kadagidze.
Bunkering services for ocean-going vessels heading for North America or South-East Asia have been established on Kunashir Island in the Kurils. Primorsk Shipping Company’s agent ISS-Prisko has started bunker operations, according to the DV-ROSS news agency. The UK-flag 72,000 tons, Nicoline Bulker bulk carrier took on bunkers in Yuzhno-Kurilsk port in late March from the bunker tanker Murad. ISS-Prisko expects to provide bunkering services in the area around Kunashir Island for 15 to 20 foreign vessels a month. The fuel will be supplied from the Nakhodka terminal by tankers operated by various companies. The small harbour of Yuzhno-Kurilsk could gradually grow into a large bunkering centre for vessels on passage between North America and South-East Asia. Gaspromneft-Lubricants in Chevron deal
Gaspromneft-Lubricants has signed a licence agreement with Chevron for the production of marine lubricants and oils. It allows the Gaspromneft subsidiary to supply a range of lubricants: hydraulic, compressor, turbine, cooling fluids and special lubricants for sea and river transport.
World Bunkering Summer 2012
26 bunker companies operate some 50 bunker barges at St Petersburg
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Far East Challenges World Bunkering interviews Igor Polchenko,
president of the fast-growing Tranzit DV Group House Tranzit DV is one of the key bunker traders for the Russian Far East’s local market, and shipowner North- East Shipping Company is involved in bunkering and fuel delivery.
WB: How do you see the Russian Far East bunker market developing?
WB: Do you have a view on the way the bunker market is structured and do you plan to do things differently from other players in the industry?
IP: There is tough competition in that market. Every competitor is keen to increase its volumes of bunker sales and share of the market. Igor Polchenko The main objective of the big bunkering companies is to increase the volumes of shipping and get involved in the export of fuel. Our company is working on perfecting the bunkering market. We want our bunkering market to be civilised with honest and justified methods of competition. There is a long way to go but the process has already started. The time will come when the Far East market will be proudly representing Russia worldwide.
IP: The bunker market, although growing and dynamic, has informal laws and regulations. This is a unique problem for Russian companies. It is very unlikely that anyone will dare to break these unofficial conventions. However, our company will always aim to avoid stereotypical ways of doing business. We realise this involves a certain degree of risk which, at the end of the day and in more cases than not, is justified. Regarding doing things differently, one of the bright spots on the bunkering market last year was the launch of our Bunker On Water project (a floating bunker storage service), which not only had a successful start but also continues to perform satisfactorily in the Far East and East Asia areas. WB: How successful has the Bunker On Water project been?
IP: It has been even more successful than we predicted. There are things to work on, though, things to improve. However, the fact that the new service is in demand proves that we are on the right track and are providing a quality service. We have carried out more than 10 big bunkering orders as part of the project. One of our regular clients is the Moller-Maersk Group (Denmark). This year we plan to increase both the quality and quantity of Bunker On Water. We co-operate not only with the oil majors but also with independent oil refineries, which allows our clients to have a wide choice of fuels for bunkering their vessels. Apart from that we have plans for a few other bunkering projects but they are in their early stages, and are being thoroughly tested internally. WB: What do you see as your company’s strengths in the bunkering market?
IP: Tranzit DV is open to innovation. We continue and build on all we have achieved so far but we also forge ahead. We work on new projects and stop those that are no longer profitable. We strive to be dynamic in every area of our business. We take special care of our staff; this is an investment that has long-term positive returns. All bunker managers have special training and refresh their skills annually. In addition to that our staff are involved in personal development training, which improves their individual style and work approach in general. The Group policy objective is also to upgrade the Russian bunker market. Russian-produced fuel does not require advertising – its excellent quality is recognised worldwide. Our aim is to make the quality of Russian bunker service equally famous. For the moment our company offers the most favourable contracts for quality fuel and services. This is achieved by a multifaceted approach not only to bunkering but also to logistics, which is equally important for the quality of our bunkering service.
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WB: What plans does Tranzit DV have for its bunkering operation? Do you expect to expand significantly?
IP: Bunkering is one of the priority directions for our Group. We are investing a lot of resources into its development, our Bunker On Water project for example, and there will be more new competitive projects to come. Group Tranzit DV has entered the Asian market, where it now has a significant share. We are confident that the company will grow profitably, but whether it will be a quick surge or a steady progress only time will tell. WB: What challenges does the Russian bunker industry face?
IP: At the moment the Russian bunkering market is at the growth and development stage. On an annual basis the market has a stable growth of 4% on average. Government policy pays a lot of attention to this industry and helps to develop it. However, as in any development, there are complications. The existing capacities of oil-storage facilities cannot satisfy the market demand. Therefore the construction of the new ones is required. Also, the majority of the bunkering fleet is out of date and does not meet international technical and environmental standards. This means modernisation is imminent. Many vessels are working under foreign flags, which has a certain effect on the country’s economy. However, all these difficulties are temporary and will be resolved. From our side we do everything we can so that Russian partners are easy to do business with. Our vessels work under the Russian flag and meet all the international standards. Our Vostokbunker company owns the third largest oil terminal in the Primorsky Krai, with an annual throughput of one million tonnes. We provide a good quality of services and, as there are other companies in the region that care a lot about service quality, we can confidently expect the bunker market to improve.
Full range of premium quality bunker fuel For every type of engine Full oil compliant with ISO 8217:2010 Client-oriented service and flexible schemes of cooperation 4 Own bunkering fleet 4 4 4 4
Tranzit DV Group Co., LTD 13, Uborevicha street, Vladivostok, 690091, Russia Tel: 7 (423) 249-11-99 Fax: 7 (423) 243-28-28
Tranzit DV Trade House Co., LTD 13, Uborevicha street, Vladivostok, 690091, Russia Tel: 7 (423) 249-11-99 Fax: 7 (423) 243-29-94
E-mail: firstname.lastname@example.org, email@example.com
Marine Logistics Co., Ltd Office No. 18B-18F, One Capital Place, No. 18 Luard Road, Wanchai, Hong Kong Tel: (852) 2865-0381, Fax: (852) 2865-0189 E-mail: firstname.lastname@example.org
© sea business
2011-2012 winter round-up The recent winter was abnormally hard in most of the Russian regions. Low temperatures with severe storms and complicated ice conditions were observed almost everywhere, even in the regions with normally mild climates. Southern federal region
The Sea of Azov was frozen. The number of vessels in Kerch Strait reached 186 in mid February: 126 were waiting for ice-breaker escort, 60 were stuck in ice. A significant portion of the latter couldn’t move due to ice restrictions even if accompanied by ice breakers. The situation was difficult because several vessels ran out of fuel and supplies. Rescue operations were, however, arranged in time and the airlifting of food and water averted serious consequences. In Novorossiysk port (Black Sea) ice conditions were more favourable although strong winds and heavy snowfalls brought significant problems. During the storm in February two dozen transshipment machines broke down and all berths were covered with ice. Power failures occurred several times in Novorossiysk and city authorities had to restrict traffic. North-West
Freezing conditions are common in North-Western Russia and its ports were ready for the inevitable problems. Thirteen ice breakers worked in St Petersburg port including 50 Let Pobedy, the most powerful, modern nuclear ice breaker. It escorted 111 tankers. The vessel is used as a specialist cruiseship in summer, taking tourists to the North Pole – an expensive trip, but it offers a unique experience. Far East
Ice brought problems for Far Eastern ports as well. Continuing freezing conditions caused the accumulation of ice in harbours and shallow water areas in Peter the Great Bay and impeded passenger traffic. Complicated ice conditions slowed down ferries in Amur Bay, even cancelling the service at times. Ice thickness reached half a metre. The marine meteorological office said that the weather in Khabarovsk Kray was abnormal. The last time that such heavy ice was observed in the Tartar Strait was five years ago. Even as late as the middle of March compressed thick ice prevented 10 vessels from leaving Vanino port while 12 ships could not enter. The port
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authorities had to bring ice breakers from De-Kastry, another sea port in Khabarovsky Kray. Delivery delays
The weather conditions affected Russia’s railway system too, as hundreds of railway trucks spent time waiting to be unloaded in the ports. The Ministry of Transport claimed that on certain dates the number of idle trains reached 350. This had a knock-on effect for bunker suppliers as the delays to tanker arrivals caused shortages of storage facilities. New ice breaker
The recent severe ice conditions and consequent disruption appears to have accelerated the building of the first ice breaker to a novel ”askew motion”. Construction of the vessel will start at Yantar shipyard, Kaliningrad, in summer 2012, several months earlier than initially planned. It is a Russian-Finnish project ordered by the Russian Ministry of Transport. The ice breaker’s hull will be built at Yantar, then Arctech Helsinki Shipyard, which is 50% owned by Russia’s United ShipBuilding Corporation (USBC), will fit the vessel out. The new ship has an asymmetric hull. USBC spokesperson Alexey Kravchenko said: “This is a rather small ice breaker which is capable of clearing a way for tankers, and even for supertankers with tonnages of 120,000 or 70,000 tons. Its size is approximately half that of a nuclear ice breaker which clear fairways as wide as their own hulls. Tankers are usually wider than ice breakers. Thus it happens sometimes that two atomic ice breakers are needed to clear the way for one tanker or a convoy of tankers. This is very expensive. An ice breaker with “askew motion” breaks ice in a special manner and leaves a channel which is several times wider than its body.” The vessel is intended for operations in subarctic areas, such as the eastern part of the Finnish Gulf. It will also work in the Russian part of the Finnish Gulf.
Keeping within ECA law
A new guide aims to fill the “knowledge gap” on operational and compliancy requirements in emission control areas.
ith the 0.1% 2015 emission control areas (ECAs) sulphur emission requirements fast approaching and the August 2012 1% North American ECA only months away, it seems that some shipowners and operators are still unsure of the operational practices required to meet the legislation. Futhermore, crews, when required to do so, are implementing these practices sporadically and without a strategy. That, at least, is the view of market intelligence provider Fathom and classification society Lloyd’s Register who have worked together to compile a comprehensive reference manual for what owners, operators and their crews need to know to run an ECA-compliant vessel – Emission Control Areas: The Guide is a new publication written by Fathom’s editor, Pete Lockley, with the support of the Lloyd’s Register FOBAS team. The two organisations stress that ECAs in Europe and North America are set to have a profound effect on how vessels are operated, including major implications for the cost of fuels when operating within ECAs. At over 100 pages, the guide, which is accompanied by an onboard ECA manual, details the full scope of the challenges involved in operating within an ECA – from analysis of compliance options to the practical steps of implementing ECA measures onboard, and capturing and recording data for Port State Control requirements. Alison Jarabo-Martin, managing director of Fathom, said: “ECA regulations present significant challenges to shipowners and operators, particularly at a time when they are also worried by
issues related to the current economic downturn and financial volatility. The ongoing debate on fuel switching, scrubbers and LNG, and which is the most appropriate solution in individual cases to use, is providing owners and operators with the need to make unprecedented decisions. He explained: “Our aim...is to assist a company with what it needs to know, from senior management to the engineer onboard, and provide them with the knowledge to be able to make a decision that’s right for their business, so that they can be prepared for change, rather than hampered by it, and avoid facing serious legal as well as operational issues.” Tim Wilson, principal specialist engineer and product manager at FOBAS Services added: “The Guide fulfils a much needed ‘knowledge gap’ on operational and compliancy requirements in ECAs. Our experience of working with owners and operators has given us a key insight into the issues and challenges they face on a day-to-day basis, and we know that they are concerned about the best strategy to adopt when transiting an ECA. We have collaborated with Fathom to help fill this knowledge gap and provide the industry with much needed information on the whole process of becoming ECA compliant, from the first decision from the board room to statutory reporting on the vessel. The guide is split into two parts, a decision support reference guide on the accepted methods to ensure ECA compliance, and a thorough onboard guide to ECA zones, fuel switching, as well as reporting compliance. It also includes the 2012 edition of the Lloyd’s Register Sulphur Record Book. It can be ordered at www.fathomshipping.com.
World Bunkering Summer 2012
Equipment & services
BV’s first EEDI certificate
Ahead of its time – Sinopacific Shipbuilding Group’s Crown63 design has a 20% better EEDI than currently required by MARPOL Annex VI.
rench-based classification society Bureau Veritas (BV) has issued its first Energy Efficiency Design Index (EEDI) certificate to the ultramax geared bulk carrier JS Amazon, the lead ship of the new Crown63 design developed by China’s Sinopacific Shipbuilding Group in conjunction with bulk carrier expert Setaf-Saget. The 63,300 dwt vessel is designed for the carriage of bulk cargoes, including coal, iron ore, grain and cement, as well as a range of dangerous cargoes. Its greenhouse gas performance when measured in accordance with the IMO’s EEDI is 20% better than the current requirement under MARPOL Annex VI and already reaches the Phase II requirement normally set for the years 2020/2024. BV says its deadweight was achieved as a result of an advanced design that is fully compliant with the Common Structural Rules. The vessel can carry 5.2% more cargo than other bulk carriers of a comparable size. Commenting on the ship, Bernard Anne, managing director of BV’s Marine Division, said, “This vessel marks the start of a new series of ships which will be exemplary contributors to a greener and cleaner world, shaping the image of shipping for the future. It also represents a celebration of the achievement of outstanding new design concepts and the re-enforcement of strong and successful, long-established levels of co-operation. Bureau Veritas, Sinopacific Shipbuilding Group and bulk carrier expert Setaf-Saget have been working together for many years in the best kind of partnership – one built on trust and a long-term commitment to shipbuilding quality and innovation. BV has been delighted to work with Greenseas, the in-house design office of the Sinopacific Group, which has a proven
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ability to deliver high-quality designs for energy-efficient ships.” He added that the EEDI is aimed at producing ships that are ahead of industry standards, with optimised fuel consumption and the highest standards of quality and safety to meet the demanding criteria for bulk carriers engaged in worldwide service today. Working with Sinopacific and a number of owners, BV has classed 42 vessels of the Crown58 series of supramax bulk carriers already delivered or still under construction. It is also responsible for the classification of 32 in the Crown63 series, and anticipates more. New bunker futures services
UK-based Freight Investor Services (FIS) has launched its Fuel Oil Single Swap (FOSS) in response to escalating bunker prices which, it says, “are hurting shipowner margins at a time of historically low freight rates”. The new FIS offering will include three fuel oil contracts: Singapore 380 cSt, Singapore 180 cSt and Rotterdam 3.5% sulphur barges FOB. In a statement, FIS said: “In contrast to existing swaps, these contracts will be traded in lot sizes of just one tonne, enabling easier access to these markets for smaller players, such as shipowners, who need to manage their fuel cost risk for small fleets or even individual vessels.” The company added: “This new pool of liquidity should attract players from across the bunker sector including suppliers and traders as well as funds and banks.” FIS also said that the price of Singapore 380 cSt bunkers stands $40/t higher than at the start of 2012. “A typical Capesize vessel on a 45-day voyage can consume 2,500 tonnes of fuel, costing over $100,000 more today than just two months ago. By hedging that
price risk shipowners and operators can protect themselves more effectively than leaving themselves at the mercy of the spot market.” FIS managing director John Banaszkiewicz said: “With some of the lowest freight rates of the past 20 years across all the shipping sectors – including dry bulk, tanker and container markets – and some of the highest bunker prices on record, fuel oil can account for as much as 70% of vessel running costs. This needs to be traded and managed. FIS is delighted to offer this innovative broking service where size does not matter. Any counterparty, whatever their size, can trade as many or as few bunker swaps as they want.” “Added to this, the three bunker swaps will be available in real-time, with live prices posted on FIS’s free multi-commodity trading screen, making them even simpler and simpler to trade.” he concluded.
Naming ceremony for JS Amazon
World Bunkering Summer 2012
“Bunkering afloat” – the first step towards a civilised market
ranzit-DV has been developing the bunkering business area since 2004. During this time the company’s experts were carefully studying the bunkering market and its rules and trends. When analysing the present-day situation, one can conclude that problems with bunker delivery aboard the vessel often occur after the deal has been closed, putting both the seller and the buyer to a lot of trouble. Such a procedure is now Igor Polchenko, morally obsolete and simply cannot president, Tranzit-DV satisfy the growing needs of shipowners and carriers. The time has come for new solutions and the creation of a single civilised market. The specialists at Trading House Tranzit-DV offer a groundbreaking service – “Bunkering afloat”. The special nature of this service consists of the following: we offer fuel manufacturers a uniform platform from which to sell their products on their own terms, the “platform” being the tankers of the North-Eastern Shipping Company. Using tankers simplifies the process of delivering oil products to the end consumer because vessels will not have to visit the permanent oil loading terminals – instead, the bunkering tanker will provide the necessary quantity of fuel in open water. Today, several ports in the Primorsky region have major oil loading terminals: the terminal at Nakhodka port is owned by Rosneft Oil Company, the one in Vladivostok by Alliance Oil Company, and in Slavyanka by Vostokbunker JSC, which is a part of the Tranzit-DV holding. Each of these terminals is engaged in transshipment of a different oil product with its own unique properties. Consumers can make their own choice about which fuel grades to use, but our task is to deliver the cargo aboard the vessel in time and to successfully perform the bunkering. Tranzit-DV is able to deliver a large quantity of fuel from any port in the Primorsky region and use it for bunkering. The boost in the economic development of the Russian Far East, especially the Primorsky region, impels us to take bold decisions. The closest major bunkering hubs are Singapore (the southern hub) and Busan (the south-western hub). Creation of a single civilised bunkering market in the Russian Far East will result in the formation of a bunkering hub here, which will equal Busan and Singapore in the quality of services due to its favourable geographic location and opportunity to get the bunker without calling at a port. In this manner, we are creating a full-fledged bunkering hub in the Russian Far East which will give a strong impulse to the development of the whole Far Eastern area and increase the volume of its bunkering market manifold. In case “Bunkering afloat” develops successfully, one can even speak about the logistic synergism, meaning reciprocal strengthening of all elements and participants of the logistic chain by their integration into a single system.
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As a part of the “Bunkering afloat” project, Trading House Tranzit-DV has already performed several large-scale bunkering operations for vessels owned by A.P. Moller – Maersk A/S company. Having made a good start, the company is now planning to develop the “Bunkering afloat” business area as a basis for the creation of a major bunkering hub in the Russian Far East. About the company
Group Tranzit-DV Co, Ltd was founded in 1995. Now, Group Tranzit-DV Co, Ltd is a holding company providing a wide range of services in the energy resources market – oil products, coal, and natural gas. Group Tranzit-DV Co, Ltd’s production capacity and its top-ranked specialists enable the company’s clients and partners to carry out any operations involved in bunkering, shipping, storage, handling and delivery of oil products and bulk cargoes in any volume and to any destination, fulfilling the requirements as needed. Group Tranzit-DV Co, Ltd includes nine companies, namely North-Eastern Shipping Company, Ltd, Tranzit-DV Trade House, Ltd, Vostokbunker, JSC, Khasan-Service DV, Ltd, Vostokteplo Co, Ltd, Magadan Tranzit-DV, Ltd, Kamchatka Tranzit-DV, Ltd, Vladrybsnab, JSC, Nash Sever Charity Fund under the single corporate centre – Management Company Tranzit-DV Group, Ltd. Marine Logistics Co, Ltd is the exclusive representative of Group Tranzit-DV in East Asia, with offices in Hong Kong and Seoul. The core businesses of the holding are: • Bunker Services • Supply of energy recourses on APR markets • Shipping services • Storage, handling and blending of oil products. Our mission
To reach international synergy in APR by establishing a global hub in the Russian Far East. To bring warmth to each house in the North-East of Russia and to make life in the region more comfortable by means of building strong links with the rest of the world. Bunker services
Tranzit-DV Trade House Ltd carries out bunkering for international and Russian fleets in the ports of Vladivostok, Slavyanka, Nakhodka, Vostochny, Kozmino, Zarubino, Olga, Posyet, Vanino, PetropavovskKamchatsky and in the fisheries regions of the Japan Sea and Okhotsk Sea. Marine-Logistics Co, Ltd is the exclusive representative of Group Trnzit-DV within the territory of APR. The company’s offices are in Hong Kong and Seoul. Tranzit-DV Trade House has exclusive contracts with independent refineries such as Tomsk refinery, Anzhersk refinery, Irkutsk refinery and cooperates with Rosneft, Gazpromneft and Alliance Oil Company.
Rosneft Marine – raising standards, expanding networks
osneft Marine, Rosneft’s international marine fuel trading office, has achieved significant growth in its first year of operation. The company supplied more than 700,000 metric tonnes of fuel in its first 12 months and achieved a turnover of almost US$400 million. The company has continued to enjoy phenomenal growth as the international demand for high quality Russian marine fuel rises. Rosneft’s bunkering division has become one of the top three suppliers in the Russian market since it established its bunkering division in 2007. By having access to its parent company’s facilities, including more than 14 refineries and terminals as well as 36 bunker fuel tankers all over the Russian Federation, Rosneft Marine is able to provide unparalleled assurance of fuel quality while continuing to supply at competitive prices. As part of its strategy to provide a supply of high quality fuel, Rosneft Marine, together with its sister company RN-Bunker, is embarking on a pilot project to establish Rosneft’s first full quality management standard in the port of Nakhodka (NQMBS). This will create an internal bunker delivery standard that is specifically tailored to the needs of the local market while being based on existing international standards – the first of its kind in Russia. Explaining the rationale behind the move, Vladimir Brezhnev, director of Rosneft Marine UK, said: “Standards have become an increasingly recognised way of ensuring a reliable and consistent supply of high quality fuel. Introducing these standards in our ports will enable all our operational personnel to be on the same page and provide our customers with even greater confidence that they are receiving what they pay for.” Mr Brezhnev also said that the company aims to have similar quality management standards implemented in its operations in all the other ports it supplies in. “Transparency is one of the core tenets of our business and we believe that standardising our bunker supplying process will set us apart from most of the other suppliers in the Russian bunker market,” he added. “This is part of Rosneft commitment to ensure
that high quality bunker fuel is delivered transparently, providing unparalleled assurance of quantity and quality.” One of the major changes in Rosneft Marine’s marketing strategy has been to focus on establishing long-term partnerships. The company works with its customers to design and implement strategies for a secure and sustainable supply of bunker fuel, ensuring a mutually beneficial arrangement that has been received favourably by the market. Last year, Rosneft Marine signed formula based term contracts with several major shipping companies. The ability to guarantee the quality of its fuel and supply at competitive prices is one of the reasons why more shipping companies are choosing Rosneft Marine as their preferred partner in Russia. Rosneft Marine is also keen to expand its international network to support its global client base. In March this year, Rosneft Marine set up an office in Beijing, China, to service the growing demand for premium quality marine fuel in the Far East. Rosneft Marine’s UK office in London will focus on the global and European markets. Mr Brezhnev said: “We are very pleased to announce the opening of our Beijing office. It will have Mandarin speakers and this will help us to provide a localised service to our customers in the Far East.” The company will continue to look at expansion plans in different geographical areas where it hopes to capitalise on its multinational and multilingual team and offer a superior service to its global clients, while still delivering premium quality fuel in Russian ports.
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Tsetan Company Limited
TransOilBunker Co Ltd
setan Company Limited provides customers with services in bunkering, transportation and trade of oil products. A young and dynamically growing company, Tsetan entered the bunkering market in 2003. At the early stage of its activity Tsetan operated one bunkering barge in the port of Nakhodka. At present the company owns three bunkering tankers, the first of which was purchased in 2003 and the other two in 2005 and 2008 respectively. Recently the a newly purchased Japanese made double-hull bunkering vessel Tsetan has been put into service, which will increase transportation and bunkering services in the ports of South Primorye. The total deadweight of Tsetan’s fleet is 5,000 tonnes, and the company’s annual cargo turnover is 50,000 tonnes. The scope of the bunkering services provided by the company covers all the ports of Southern Primorye, namely Nakhodka, Vostochny, Vladivostok, Slavyanka, Zarubino. For the past couple of years Tsetan has strengtnened its’ position on the market and has gained a reputation of reliable bunker supplier. Even in the current economical climate, when the demand for fuel has decreased in the Primorsk Krai area, the company has managed to increase the volumes of bunker supply which at the end of year 2010 constitued 70 000 tons. In addition to this Tsetan has expanded the range of clients. The main supplier of the oil products for the company is Khabarovsk Oil Refinery (Khabarovskiy NPZ). The oil products are transported in cisterns by rail and then transhipped via the oil transhipments terminals of Nakhodka, Vostochny and Vladivostok. The company aims to maintain the high profile, international image of a professional supplier of quality bunker fuel to its clients. We value our clients and take a good care of their bunkering needs. We always welcome new clients and are permanently ready to offer our services.
Tsetan Company Limited. 132, Verhne-Morskaya str. Nakhodka 692917 Primorskiy Krai Russia Tel/Fax: +7 4236 629626 Tel/Fax: +7 4236 697060 Tel/Fax: +7 4236 645852 E-mail: email@example.com
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he bunkering company, TransOilBunker Co Ltd, was established in 1995 by the merging of several companies operating in the Russian Far East bunker market. The company provides bunkering services to vessels in the ports of Vladivostok, Nakhodka, Vostochniy, Slavyanka, Zarubino, and Posyet, amongst others. Since our appearance in the Far East bunker market we have gained and maintained a good reputation amongst our clients – both national and foreign – as a reliable business partner, and we are positioned in the top 10 bunkering companies in the region, with about 10% of the market share. Our monthly average volume of bunker fuel trade is up to 10,000 tonnes of heavy fuel, and up to 3,000 tonnes of light fuel (MGO). The company owns five bunkering barges with capacities ranging from 500 to 1,700 tonnes, one of which is equipped with blending facilities, permitting the production of lighter grades of fuels. The largest of our tankers has unrestricted navigation, giving us the opportunity to deliver bunkers to fishing grounds at the limits of the Russian exclusive economic zone in the Okhotsk Sea, Bering Sea and Japan Sea. Additionally, we are planning to acquire another tanker with even greater capacity, in order to meet the demands of our clients who require quantities of up to 2,000 mt of fuel. The company also operates its own tank tracks for delivering fuel to shoreside customers. It is our company policy to strictly maintain the quality of our service and fuel, to continually practice safe working procedures, and to protect the environment at every stage of the bunkering process. Additionally, we value highly the professionalism and reliability of all personnel who work for our company. Looking to the future, our company is focused on further development to expand its activities and attract new clients through means of cooperation with the best known bunker trading houses in Singapore, Hong Kong, South Korea, Japan, China and Europe.
Bunkering company TransOilBunker Co., Ltd 53 of., st. Aleutskaya 11 Vladivostok, 690001, Russia Tel: 007 (4232) 642-448/007 (4232) 642-449 Mobile: 007 914 704 2856 E-mail: firstname.lastname@example.org Website: www.transoilbunker.org
Port of Algeciras Bay
he Port of Algeciras Bay is Spain’s number one port. This is due to its location at an exceptional geo-strategic point, the crossroads of the world’s main cargo shipping lanes, at the Strait of Gibraltar in the West Mediterranean, one of the largest distribution centres in the region. Our traffic evolution over the last few years has allowed us to become one of the main Mediterranean ports both in terms of total throughput and container handling. In 2011, the Port of Algeciras Bay broke historical records by handling a total of 82.8 million tons of throughput, as well as 3.6 million teu. In order to be able to meet the current traffic growth, the Port of Algeciras Bay Authority, continues to develop new port infrastructure. The new infrastructure at Isla Verde Exterior and Campamento will provide more than 200 hectares of new port surface area, complemented by improvements to road and rail communications, including a new railway terminal able to lodge 600 meter-long trains. Total Terminal International Algeciras (TTI-A), a common user terminal, has operated the first phase of the Isla Verde Exterior Container Terminal since May 2010. This semi-automatic container terminal has contributed significantly to the increase in the number of shipping lines calling at the port. The new storage oil terminal, to be commissioned by Vopak Terminal Algeciras in the first quarter 2013, consists of a plot of land of 6 hectares with a total capacity of 403,000 cubic metres. Vopak, the world’s largest oil product storage company, would be the third bunker operator, together with Cepsa and Repsol. There are currently 5 double-hull bunker barges operating within the port waters. Ship supplies are amongst the most notable traffic types at the Port of Algeciras Bay. In 2011, more than 3.4 million tons of goods were supplied – 2.6 million of which were petroleum products. This
service makes up part of a global range of services: fuel supply to vessels at berth and at anchor, ship repairs afloat or at dry dock, waste oil collection and treatment, lubricant supply, etc. It is worth noting the port fees exemption on anchorage “D” which applies when calling for bunkering purposes. Ro-ro cargo is another pillar of strength for Port of Algeciras Bay. The proximity to Africa has given a leading role to the Bay of Algeciras, enabling it to serve as a sea-bridge between Africa and Europe. In 2011, 224,401 trucks and 4.47 million passengers crossed this bridge. 2011 main traffic figures:
Total throughput (tons): TEUs: Bunker supply (tons):
82,848,726 (+17.27%) 3,602,631 (+28.20%) 2,599,621 (+24.15%)
For further information: www.apba.es For further information about the Port of Algeciras Bay private operators: http://webserver.apba.es/portal/page?_ pageid=390,173222&_dad=portal&_schema=PORTAL
World Bunkering Summer 2012
Nakhodka-Portbunker Co Ltd
akhodka-Portbunker started as a bunkering company in 2003, specialising in bunker fuel supply to all types of vessels in the ports of the Russian Far East. The company owns seven tankers with a total deadweight of approximately 11,000 mts. Two out of this seven were approved by Exxon Mobile and are now involved in bunkering for this major oil player in the port of Nakhodka. In September 2011 the company purchased another tanker with the deadweight of 3000 mt, built according to Exxon Mobil’s requirements. All tankers with a deadweight from 170-3,000 tonnes are fitted with up-to-date bunkering equipment, certified meters and high-capacity pumps, which ensures effective bunkering operations and high, international standards of service. We provide physical bunker supply, bunker trade and ship agent services in the following ports: Nakhodka, Port Vostochnyi, Vladivostok and Posyet. We will bunker your vessels with high-quality oil products complying to ISO8217:2010 standards from the best oil refineries in Russia. The oil products are transshipped via one of the biggest Rosneft oil depots, “Nakhodkanefteproduct”. Our valued long term partnership with Rosneft is an indication of the high quality of bunker services that we provide. Bunkering operations are performed by the crew, who are also part of our team. They are skilled in sampling, bunker gauging, measurements and the whole bunker delivery in accordance with ISO8217:2010, MARPOL 73/78 ANNEX VI Marpol and all bunkering procedures. Internationally approved independent surveyors are also involved for quantity survey, sampling registering, and specs analysing. All of the services listed above are part of our policy to provide customers with the best bunkering solutions and quality products. We aim to exceed our customers’ expectations and in doing so help their businesses to be successful. Place a bunker order with Nakhodka-Portbunker at the ports of the Russian Far East and you will receive effective, quality bunker supply, as well as information on the method, schedule and status of the order, as your vessel approaches the port. You will have all the necessary information so that your business can run smoothly.
World Bunkering Summer 2012
For further information contact: Bunkering Department: 15 Pavlov’s str. Nakhodka, 692926, Russia Tel/Fax: +7-(4236) 630641, 657806 E-mail: email@example.com Agency Department: Tel: +7 (4236) 698880; 698881; 698882 Fax: +7 (4236) 698880 E-mail: firstname.lastname@example.org Website: www.nakhodkaportbunker.ru
Portugal fuel stop
ounded on 25 May 2004, the AMK Group of Companies is one of the biggest on Kolskiy Peninsula. The main activity of the AMK Group is the trade and transportation of the following oil products: • bunker fuel • all types of petrol • fuel oil M-100 • IFO-380, IFO-180, IFO-30 The AMK Group consists of several companies involved in different types of activities, such as bunkering, road transportation of oil products, utilisation of mixed oil waste and bilge water, and the use of a shipping and receiving platform. All companies within the group are licensed to conduct the above mentioned activities. One of the company’s main activities is the bunkering of foreign and Russian vessels in the port of Murmansk and other ports within the Murmansk region, as well as neighbouring shipping areas. The fleet of the group of companies consists of 8 tankers: Shalim, Olkhovets, Dnepr, Don, Salnyi, Sosnovets, Sever and Lakhta allowing the transportation of all types of oil products and bilge water up to 300 tonnes, as well as up 3,300 tonnes of heavy oil products and bunker fuel. The tankers are capable of bunkering 20 miles offshore as well as travelling to foreign ports to provide their services. All the ships are staffed with experienced personnel who have at least five years’ experience of working on these classes of vessel. The AMK Group of Companies’ transport hub consists of eight units of equipment, namely four petrol tank trucks with capacity ranging from eight to 23 cu m, and four fuel oil trucks with capacity ranging from 15 to 23 cu m. The trucks are used for the transportation of bunker fuel, and all types of petrol and fuel oil in Murmansk, the Murmansk region and the Republic of Karelia. The company has its own overhaul and maintenance facility based within the Murmansk Sea Fish Port, which it uses for servicing its own machinery, as well as providing maintenance services for other companies. All the drivers are licensed to drive dangerous cargo vehicles and the depot mechanics are all highly qualified in their specialist areas. The various operations of the AMK Group of Companies are supported by a highly professional team of lawyers. The company is open for cooperation in the transportation and trade of oil products, and welcomes mutually beneficial partnerships.
ased at Lisbon, Galp Energia Group, is able to offer fuel supply services to all ships visiting this warm and pleasant country. Galp Energia has professional bunkers team provide its customers with high-quality fuels and services, and the highest safety standards in all its bunker activity and the company’s bunkering products fulfil the ISO 8217: 2010 specification in all grades. To help achieve customers’ targets on the environment, the company can supply low-sulphur fuels at several ports, with the port of Lisbon being the main port for low-sulphur fuel. Optimising its logistics resources and storage capabilities Galp Energia is able to provide high-quality services and products, including a wide variety of marine distillates. Galp Energia is the main bunker supplier in Portugal, and provides bunker services using its two barges with capacities of 5,800 tonnes and 3,000 tonnes each. A 5,800 dwt double-hull barge, Bahia Tres, began operations in 2010 to support the company’s business in the ports of Sines and Setúbal, meeting all the important aspects for safety and protecting the environment. It is equipped with anti-pollution measurers and is covered by European Maritime Safety Agency regulations in the Atlantic Ocean and Mediterranean Sea. Always aware that its customers’ main concern is product cost, the company offers competitive prices without compromising product or service quality. Visiting Portugal and being supplied by Galp Energia will always be a good decision for regular customers, used to working with a professional team. We are the only refinery in Portugal and operate refineries at Sines and Matosinhos. We have 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 hold a significant position in the Portuguese crude oil products storage market. Our two refineries in Portugal together represent 20% of the Iberian refining capacity, and collectively account for the majority of Portugal’s annual domestic petroleum product requirements. We are investing approximately €1.4 billion to upgrade and improve the efficiency of our refineries, representing €1 billion for Sines and €0.4 billion for Matosinhos. .
Alexander Koltunov, Director Roman Moliboga, Commercial Director Maksim Vorobyov, Technical Director Anton Smolin, Head of Bunkering Mob: 007 9113090999 86 Podgornaya Street, Office 413 Murmansk, Russia 183038 Tel/Fax: 007 (8152) 287828 Tel/Fax: 007 (8152) 287337 Tel/Fax: 007 (8152) 286028 E-mail: email@example.com
For further information contact: Galp Energia SA Tel: +3512 1724 0637/654 Fax: +3512 1724 2957 E-mail: firstname.lastname@example.org www.galpenergia.com
World Bunkering Summer 2012
Gazpromneft Marine Bunker: market leadership is our goal
azpromneft Marine Bunker, a subsidiary of JSC Gazprom Neft, was founded in October 2007 for the year-round supply of petroleum products – fuel oil, marine fuel and lubricants – for sea and river transport. The company has five offices and two subsidiary companies: Gazpromneft Terminal Spb provides the timely transfer of fuel and marine fuel all year round. Gazpromneft Shipping manages a fleet of seven bunkering vessels Gazpromneft East, Gazpromneft West, Gazpromneft Nord, Gazpromneft Zuid, Kristall, Gazpromneft Zuid-West, and Gazpromneft Nord-West, which operate in the ports of St. Petersburg, Novorossisk, Kaliningrad, Murmansk and Ust-Luga. In 2011, Gazpromneft Marine Bunker bought two new tankers Gazpromneft Zuid-West (constructed in 2004) for operations in the Black Sea port of Novorossisk, and Gazpromneft Nord-West (constructed in 2011), which operates in UstLuga. Both tankers meet all the international regulations. Gazpromneft Marine Bunker is represented in the main sea ports of service in Russia, and is constantly expanding its geography. In August, Gazpromneft Marine Bunker carried out the first bunkering on Sakhalin island, at Port Korsakov. • The main sea ports we operate in are: St. Petersburg, Kaliningrad, Murmansk, Archangelsk, Primorsk, Ust-Luga, Novorossisk, Tuapse, Port Kavkaz, Taman, Nakhodka, Vladivostok, Vostochnyi, Kozmino and Sakhalin island. • The main river ports we operate in are: Moscow, Yaroslavl, Kazan, Samara, Volgograd, Rostov-on-Don, Astrakhan, Azov, Ust-Kut, and Nizhniy Novgorod. • The international ports we operate in are: Tallinn, Riga, Klaipeda, Rostok and Konstanca. The main strategic goal of Gazpromneft Marine Bunker is to enter the international bunkering markets of Europe and Asia. The first step in this direction was made at the end of 2010, when the first international bunker service was provided in the port of Istanbul. About 85% of the company’s services are provided to foreign shipowners. Gazpromneft Marine Bunker has contracts with major international shipping companies and traders operating in the ports of Russia. Among Russian clients are major sea and river shipping companies, as well as fishing companies. Gazpromneft Marine Bunker provides its clients with a wide range of high quality marine fuels, mainly produced at Gazpromneft’s subsidiary, the Omsk Oil Refinery. From April 2010 a low-sulphur (less than 1%) TAS-380 marine fuel has been produced, which has made Gazpromneft Marine Bunker a major bunkering company in the lowsulphur fuel oil market.
Vilma Oil S.L. Madrid
ilma Oil commenced physical bunker supply operations at the Spanish port of Ceuta in 2008 as a natural extension of its established trading activities and capabilities. Strategically located in the Strait of Gibraltar, one of the world’s busiest seaways, Ceuta is one of the Mediterranean’s most popular bunkering stations. In just three years Vilma has increased the Port’s bunker volumes by 30%, with over 1,000 additional vessel calls. Already supplying around 40% of all physical deliveries, the company has augmented the port’s income and generated several new jobs. As a foundation to its logistics service, Vilma has the exclusive use of 83,500 cu m of oil storage facilities on a term basis. The installation is connected to the Levante wharf, from which the company operates its ex-Wharf bunker service, loads the bunker tankers, and conducts its import/export cargo trading activity. In order to meet its customers’ needs, and in line with its commitment to continuous development, Vilma Oil time-chartered a modern double-hull 3,420 dwt bunker vessel for supplies at the designated anchorage within the port limits of Ceuta North Bay. Enhancement of delivery capabilities will be made in line with our continued expansion. Optimising the ex-Wharf and anchorage delivery facilities to meet varying customer requirements, Vilma provides RMG380, RMG380 low sulphur, RME180, RME-180 low sulphur, and DMA 0.1%S, meeting ISO 8217 specifications. Combining the exclusive storage facility, berth and bunker vessel capabilities with its long-standing international trading and operational competencies, Vilma continues to expand its vision of providing enhanced customer focused activities, based on core principals of ‘secure quality services’. Vilma Oil aims for continuous improvement and sustainable performance, aligning its strategic direction accordingly. The company will continue to invest in improving logistics to ensure capacities are synchronised with its vision for growth.
Since its foundation, the company has tripled its operations, delivering 900,000 tonnes of fuel in 2008 and more then 2 million tonnes in 2011. Today, Gazpromneft Marine Bunker is one of the leaders in the Russian bunker market, with an 18.5% share. Vasiliyevsky Island, 3rd line, 62A, St. Petersburg, Russia, 199178 Tel: +7 (812) 449 49 70 Fax: +7 (812) 449 49 71 E-mail: email@example.com
World Bunkering Summer 2012
Calle Chile, 10, Oficina 236, 282900 Las Matas, Madrid Tel: +34 91 630 8900 Fax: +34 91 630 8901 E-mail: Bunkers@Vilmaoil.com www.Vilmaoil.com
Neftehim Bunker Jsc
Aditya Fuels L.L.C.
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 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 as the 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 fully compliant with the latest international industry standards. Our company has access to the fleets of five different barging companies, giving us flexibility and efficiency in our bunker delivery operations. With growth in mind, we now have our own bunkerbarge, Severaynka, which was reconstructed on the Vyborg shipyard in accordance with the MARPOL regulation. Its cargo tanks have a total capacity for 1,000 mt of HFO and 260 mt of MGO. 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 199106 Russia Tel: +7(812) 332 2363/+7 (812) 942-3140 Tel/Fax: +7(812) 332 2364 E-mail: firstname.lastname@example.org Website: www.nh-bunkering.ru
ditya Fuels L.L.C. provides physical supplies of bunker fuel products at all UAE ports. We can supply at berth, concurrent with cargo operations. Depending on the quantity required, bunkers may be supplied both by barge and truck. We have a large joining us soon to make supply at anchorage feasible. Aditya Fuels L.L.C. owns and manages a fleet of tanker vessels which, unlike many physical suppliers in the area, gives us independent and complete control over the delivery process. In Dubai, we have our own storage tanks and we carefully monitor the supply and keep our customers well informed of the supply progress, 24 hours a day, 7 days a week. Aditya Fuels L.L.C. main objective is to provide quality products and service to satisfy our clients’ requirements. All types of fuel are supplied by the company and are compliant with ISO 8217-2005. To help customers achieve their environmental targets, we can supply low-sulphur fuels and gas oil at several ports. Our main activity over the past 14 years has been the supply of high-quality bunker fuel at competitive prices. We are able to keep our rates stable and offer credit terms, as well as timely and safe bunkering services, 24 hours a day, 7 days a week. Since its formation the company has achieved success in creating a reliable and high-quality bunkering service meeting all European standards and clients’ requirements. We have an office in London that caters to the needs of our Customer’s based in Europe and we are now investing heavily in operations in Dubai, by buying from major importers to re-sell to bulk buyers. Aditya Fuels L.L.C. is ambitious to grow over the next few years; the appropriate plans are being put in place to meet that expansion and we are ready to welcome new business.
Mr. Rambabu N.V +971551021780 Mr.Sunil Kumar B +971555042872 E-mail :Uae@adioil.com email@example.com www.adioil.com Aditya Marine Mr. Rambabu N.V +91 9848257582 41-1-35, Rangayyanaldu street Kakinada-533007 India E-mail:firstname.lastname@example.org
World Bunkering Summer2012
Nizhegorod Bunker Ltd – going from strength to strength
izhegorod Bunker Ltd, the official representative of the oil company Rosneft, specialises in fleet bunkering in the areas of Volga and the adjacent basin. The company is extremely optimistic about the new navigation season, its reason for this being the strengthened relations with Rosneft and an ever-growing number of clients. “The task of expanding our client data base is constantly being worked on,” says Vladimir Nikiforov, general director Vladimir Nikiforov, of Nizhegorod Bunker. “At general director, the moment we are not only Nizhegorod Bunker successfully working with Rosneft, but have also concluded 200 new contracts for bunker supply, including one with Volzhskoye Parohodstvo. By the start of the navigation season we had received pre-payment for 3,000 tons of bunker fuel from our partners. This method has been used by our company for the first time and we see it as both a successful way of doing business and a demonstration of trust from our customers.” The fleet consists of a park of flat-bottomed tankers with a total capacity of 300 tons and self-propelled bunkering vessels with the capacity of 600-1,500 tons. The company also owns a stationary oil station. The total of bunkering fleet tonnage is more than 7,000 tons. In the recent years the company has increased its’ clientele from the North-West region of Russia. The bunkering spots in NizhniyNovgorod, Rybinsk and Sheksna are very handy and attractive to the shipowners of the North-West Shipping Company. “We always aim for an honest partnership,” says Mr Nikiforov. “The customer should be confident that he is buying exactly the type of fuel he is paying for. As a result of this strategy we have strengthened our position in the North-West region and won the trust of the shipowners from the capital. In the near future we plan to open bunkering spots at the mouth of Kama and Nizhnekamsk.”
Nizhegorod Bunker Ltd 13/2, Ilyinskaya Street Nizhniy Novgorod Russia 603109 Office Tel/Fax: 00 7 831 434 4845 E-mail: email@example.com Website: www.nizhegorod-bunker.ru
World Bunkering Summer 2012
Unicom Holding S.A.
nicom Holding entered the Romanian bunkering market in 1999, with the establishment of a dedicated bunkering department. Since then we have developed rapidly, gaining the knowledge and experience necessary to become the undisputed leading bunker supplier in Romania. Originally known as Unicom Bunkering, we traded under this name from 2005 to the end of 2010 when, following a merger, we were re-launched as the bunkering department of Unicom Holding. Despite this change in name, our goal has remained the same - to provide our customers with the best possible bunkering services and to develop strong and mutually profitable partnerships. We bunker at the Romanian Black Sea ports of Constanta, Agigea, Midia and Mangalia, and also at the Romanian Danube river ports of Galati, Tulcea, Braila and Drobeta Turnu Severin. At the maritime ports we deliver a full range of high-sulphur fuel oil products, from IFO-30 to IFO-380, as well as low and high-sulphur distillates. The fuel oil is delivered to ships by barge, while the gas oil can be supplied either by barge or by truck. Barge deliveries are made by our M/T “Unicom 3”. We also own the oil barge “Deltaoil”, but this is mainly used as a storage unit for fuel oil, giving us increased flexibility for dealing with large orders or short timescales. At the Danube River ports we supply only low sulphur gasoil, ULSD 10 ppm inclusive, ex-pipe, using our barge “Unicom 1”, or by truck. Presently we deliver high quality oil products that are compliant with the ISO 8217:2005 specifications, but we are soon to apply the ISO 8217:2010 standards. All our bunker deliveries are professionally managed by our experienced staff, in full accordance with the relevant legal requirements. Apart from supplying bunkers and providing our help and expertise, we have also started to offer transport services by carrying oil products for our clients on the Danube River. Currently we do this via our M/T “Astrid”, but are planning to extend our fleet in the near future. Our staff are available 24-hours a day and are ready to put their experience, expertise and knowledge at your service.
Tel: +40 21 233 27 70 Fax: +40 21 233 27 69 General E-mail: firstname.lastname@example.org Website: http://www.unicom-group.ro/holding Mr. Bogdan BURGUI – Bunker Sales Manager (maritime sales) Mob: +40.741.383.412 E-mail: email@example.com Mr. Marc BOBEICO – Bunker Sales Manager (river sales) Mob: +40.741.362.023 E-mail: firstname.lastname@example.org
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World Bunkering AUTUMN 2012 issue Special Features: Independents As the squeeze continues and even the big independents are finding banks much more cautious about providing credit lines we ask where the independent scene is heading?
Fuel Quality With extremely high prices, low freight rates and concern about sulphur content compliance the fuel quality concerns are never far from a ship operatorâ€™s mind. We ask what is really happening?
Lubricants As lubricant manufacturers work to resolve the problems associated with switching from intermediate fuel oil to distillates we take a look at the quite different approaches that are emerging.
Geographical Focus: South East Asia ARA
Scandinavia & The Baltic Review Posidonia â€“ Athens, 4-8 June
Preview SIBCON IBIA Convention
Russian Update News, Views and Analysis.
Regular Features Interview, Industry News, Environment, Testing, Risk Management, Legal News, Equipment and Services, Diary.
Looking ahead 4-8 June Posidonia Athens Greece www.posidonia-events.com
21-22 June Platts 9th Annual Bunker and Residual Fuel Oil Houston US www.bunkerfuel.platts.com.
17-19 October 17th Singapore International Bunkering Conference and Exhibition SIBCON 2012 Singapore www.ibc-asia.com
4-8 November IBIA Annual Convention 2012 Dubai, UAE www.ibia.net
12-14 September Gas Fuelled Ships Conference 2012 Bergen, Norway www.ibc-asia.com
26-27 September Green Ship Technology Asia Conference Singapore www.informaglobalevents.com/event/gst-asia
World Bunkering Summer 2012
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