World Bunkering > News > Spring 2011 > INDIA - Ready for take-off

India has the potential to be a major bunker supplier given the large amount of trade passing through its ports, but total volumes are believed to be less than 1.5 million tonnes a year, though there are no official figures.

Administrative problems have often been blamed for the relatively slow progress made by the country’s bunker sector and for uncompetitive prices compared to direct rivals at Fujairah and Singapore. Ironically, India is a major supplier of bunker cargoes to Singapore. However, there are signs that the country’s bunker sector may be set for a period of significant growth.

Bunker trading and brokering firm Global Fuels and Lubricants says that the market has a lot of potential and has already changed. The company is optimistic about the future, saying on its website: “There are a lot of major and minor ports besides the new ports being built, such as Gangavaram and Krishnapatnam. Infrastructure development in India is progressing at a rapid pace and thus allowing not only the domestic but the international bunker market to grow by leaps and bounds. On the west coast, Kandla, Mundra, Mumbai and Cochin are major ports with low taxes and attractive prices. Barge deliveries are possible and the prices are attractive On the east coast, Haldia, Kolkatta, Chennai, and Tuticorin are ports with lower pricing and excellent delivery facilities.”

The company currently has eight barges at various ports and is expanding rapidly. Global stresses that quality has never been an issue in India, with the refineries producing to ISO specs and possessing excellent refining capacities. On its own record the company says: “We are proud to say we have not received any quality claims in the past 15 years.“

Major ports like Mumbai, Kandla, Chennai, Haldia, Calcutta and Vizag have barge delivery. For smaller ports, usually it is road truck delivery. However, with the addition of new ports and the increase in total bunkering volumes, the new developments are happening at lightning speed.

Around India’s 3,790 mile-long coast numerous new projects are underway or in the pipeline. In July last year, government-owned Bharat Petroleum Corporation (BPC), India’s second largest oil company, with activities covering refining, storing, marketing and distribution of petroleum products as well as bunkering, commissioned a barge loading facility at its Irimpanam installation on the Chitrapuzha River at Kochi, Kerala state.

In May last year BPC opened its first exclusive international bunkering terminal at the Jawaharlal Nehru Port, Mumbai. These moves are part of a plan to expand its bunkering operation right around India.

In addition to Bharat Petroleum, the country’s two largest refiners, Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation are also involved in bunkering. Another significant player is Chemoil Adani, which is based at India’s largest private port, Mundra, Gujarat. The company is a 50:50 joint venture between Chemoil, Singapore and Adani Group, India for the supply of bunkers at Indian ports. It is a physical bunker supplier at Gujarat ports, where supply is arranged from the bunkering terminal at Mundra. Supplies to other Indian ports are arranged through Indian state-owned oil companies.

Among other smaller players is Aditya Marine Inc, which provides physical supplies of bunker fuel products in the Eastern coast of India, at Kakinada, Vizag, Ganagavaram, Tuticorin, Chennai, Paradeep and Krishnapatnam. It can supply MGO and IFO. A spokesperson says: “We can supply both at berth concurrent with cargo operations and at anchorage at all of these ports except for Chennai and Tuticorin, where due to tide restrictions only supply at berth is available at the moment.”

Aditya Marine owns a fleet of four barges, of between 250 and 400 tonnes capacity and has another of 360 tonnes capacity under construction. It also runs a fleet of 20 road tankers. A spokesperson told World Bunkering that the company was expanding partly due to rapid growth in India’s offshore industry and consequent demand from supply and support vessels.