World Bunkering > News > Winter 2009 > Global round-up

ASIA

Aegean tanker for Singapore

Aegean has taken delivery of a 6,272 dwt double-hull bunkering tanker newbuild to serve the Singapore market. Nikolas Tavlarios, president, commented: “Following the deployment of this double-hull vessel to Singapore, the world’s largest bunkering market, we expect to further enhance our ability to meet the strong demand for modern tonnage and expand future sales volumes. Consistent with our goal to increase Aegean’s global market share, we plan to take delivery of 17 additional double-hull bunkering tanker newbuildings by the end of 2010.”

“Astounding” results for Brightoil

Brightoil Petroleum Group (Brightoil) announced annual results for the year ending 30 June 2009 with a turnover up 131.5 times to HK$5,455 million, while gross profit was up 14.8 times. According to Sit Kwong Lam, chairman and president of the Brightoil Group, much of this growth was due to bunkering activities. “During the review period, the marine bunkering business delivered remarkable results which drove the Group to accomplish astonishing annual results,” he said. Brightoil began providing bunker services after it was acquired by Energy Empire Investments Ltd and Canada Foundation Ltd in June 2008. Over the following year, the Group sold 1.8 million tonnes of bunker fuel oil, accounting for for 99.8% of the Group’s total revenue and was therefore a key revenue contributor.

Demand for bunkering services remained stable despite the crisis in the global shipping industry, as customers were primarily international liners that continued to operate scheduled routes. Brightoil is now looking to expand operations both within and beyond China. Having begun bunkering operations in Hong Kong in April and in Shanghai in June, the company has received a licence to operate in Singapore, and is expected to start Singapore operations in November. Brightoil considers that China’s marine bunkering sector is underdeveloped, and has significant long-term growth potential. China’s cargo throughput was 3.5 times that of Singapore in 2008, yet its annual bunker sales volume was just 4.8 million tonnes, equivalent to 16% of that of Singapore.

According to Dr Sit: “The global economy is expected to recover in the second half of 2009, resulting in the revival of international trade and shipping. We believe that the marine bunkering division will sustain growth as the global macro-economic environment improves. The performance of the marine bunkering industry in the Asian markets like China and Singapore is set to stand out, providing a solid platform for the growth of the Group’s marine bunkering operations.”

AUSTRALASIA

380 cSt available in Auckland

The range and availability of fuels in New Zealand has been considerably increased with the delivery of a 3,900 dwt fuel tanker to replace the existing fuel tanker. Shell New Zealand has been offering 380 cSt bunker fuel at the port of Auckland from September, the first time the bunker grade has been made available from any New Zealand port. Fuel is supplied direct from the Marsden Point refinery, which has a purpose-built jetty to accommodate the new tanker. The barge is owned and operated by Seafuels, a joint venture between Ports of Auckland and Pacific Basin Shipping, and will be chartered to Shell New Zealand. The bunker tanker, named Awanuia, has eight tanks with a capacity of 300-400 tonnes for marine gas oil and the rest for bunker fuels.

EUROPE

OW Bunker expands Baltic operations

OW Bunker has commenced physical supply operations in Gothenburg and other key ports in Sweden. At the same time, it has introduced services in the port of Lübeck, Germany, further expanding existing services in the German market. The company says the move is part of a controlled growth strategy, expanding and developing its presence in key locations. Lenah Soldan, manager, OW Bunker, will head up the new operation in Sweden, while the German operation will be serviced under the group subsidiary Wrist Bunker Supply GmbH. Since the end of July 2009, OW Bunker has been providing product deliveries in Gothenburg and other west coast ports, as well as ports in southern Sweden, including Helsingborg and Malmö.

A variety of grades, such as 180 cSt and 380 cSt grades, including 1.0% and 1.5% low-sulphur fuel oil, marine diesel oil (MDO) and marine gas oil (MGO) are supplied by barge and tank truck. OW Bunker will also provide an offshore service out of Gothenburg, a market that has seen strong growth over the last year. According to OW Bunker, providing physical supplies at sea is a growing market as many vessels cannot afford the time to refuel in port, particularly where efficiencies with the supply chain have to be maximised. According to Morten Skou, executive vice president: “Developing our presence and service offering in Sweden is an example of our ambitious plans to expand the business, and consolidate OW Bunker’s position as one of the world’s leading independent bunker suppliers.”

Despite the tough economic conditions and a consolidating market, OW Bunker would continue to focus on growth, he said. In Lübeck, Wrist Bunker Supply will provide product deliveries via a 1,200 dwt barge, DT 83, which can provide up to 1,250 tonnes of product with a pumping capacity of 350 mts per hour, ensuring speedy delivery. The company will provide a full range of quality bunker fuel as well as 1% and 1.5% low-sulphur fuel oil and marine diesel oil (MDO) and marine gas oil (MGO).

To ensure reliable and continuous product availability for customers, Wrist Bunker Supply has also signed a long-term contract with the local tank terminal, Bunkerstation Hillenberg. Götz Lehsten, vice president, OW Bunker, said: “Providing physical supplies in Lübeck and Lübeck-Travemünde significantly strengthens our position within the Baltic region, where we have been one of the leading operators for many years.”

Aegean expands operations in Western Med

Aegean Marine Petroleum Network began operations in Tangiers, Morocco in mid-August. Nikolas Tavlarios, president, said: “The new port of Tangiers is an important gateway that serves the vast Mediterranean and North African regions and is well positioned for strong growth. By once again expanding Aegean’s global scale, we intend to further strengthen our leading position as an independent supplier of marine fuel on a worldwide basis and increase future sales volumes.” In addition, the latest of Aegean’s newbuilds is to be deployed in the Gibraltar market. The 6,290 dwt double-hull bunkering tanker, built at Qingdao Hyundai Shipyard in China, was delivered at the end of August.

GENERAL

Petromedia launches daily price index

Petromedia launched a daily price index at the beginning of September. Representing bunker fuel market movements on an international basis, the Bunkerworld Index (BWI) is a weighted daily index based on benchmark prices from 20 key bunkering ports, providing a single number that describes the global bunker market on any particular day. Prices for a variety of main grades are included, such as IFO380 cSt, IFO180 cSt, marine gas oil (MGO) and marine diesel oil (MDO). Set daily at 18:00 GMT, the BWI tracks market movements without the need to analyse data from multiple ports.

According to Petromedia, by being based on data from more than 20 ports around the world, the BWI avoids over-emphasis on Rotterdam, Singapore, Houston and Fujairah as main indicators. While many of the largest bunkering ports by volume are included, the index does not simply comprise the 20 largest bunker hubs, but also reflects the latest trends in geographical importance within the marine fuel sector. The BWI is intended for any company exposed to the global bunker market, such as multinational shippers, charterers, traders, banks and insurance companies.

The index is a versatile reference point with multiple applications, for example as a basis for setting bunker fuel futures, swaps or OTC contracts, as well as providing an independent basis for the calculation of bunker surcharges. The BWI aims to become the leading reference tool for tracking global bunker pricing. Commenting on the launch, Matt Cape, ceo of Petromedia, says: “The repercussions of fluctuating bunker prices have impacted anyone exposed to the marketplace; from traders and brokers dealing with the market on a daily basis to multinational organisations whose business depends upon shipping products around the world.

The BWI provides a transparent and independently calculated barometer of global bunker fuel markets, which will enable users to easily track movements and improve financial management.

ON THE MOVE

Chemoil expands trading team

Chemoil has appointed Teng Chee Keong to join its trading team to focus on Chemoil’s Middle East and Asia operations. The appointment, based in Singapore, will further strengthen Chemoil’s position in Fujairah and Singapore. Teng was formerly a trader with Saudi Arabia-based Bakri Trading Co., trading fuel oil and middle distillates for the Asia Pacific and Middle East regions.

Prior to Bakri Trading Co., he was a petroleum analyst in global energy markets with Platts, specialising in fuel oil, middle distillates and freight. William Douglas Long, vice president of supply and distribution at Chemoil, said: “Chee Keong’s knowledge of the Middle East marketplace will help us to improve customer service and build on our growing presence in this region.”