World Bunkering > News > Winter 2010 > News and views

Duma to discuss bunker market problems

Olga Bogacheva

St Petersburg retains market lead

St Petersburg traditionally occupies the leading position in the Russian bunkering market. In 2009, total sales reached 1.7 million tonnes, more than 35% of the whole Russian market. This figure is expected to grow by 10% this year. Statistics for the first six months and an increasing port turnover trend confirm this forecast. In addition, St Petersburg is a highly seasonal market, with peak fuel sales usually occurring during summer, due to the increased number of passenger vessel and cruiseship calls. Many of these calls – and the market growth they represent – will not be included in the first half figures.

During the first half of 2010 the total amount of bunker fuel sales at St Petersburg reached 794,000 tonnes, including 714,000 tonnes of heavy fuel oil and 79,500 tonnes of light fuel. Currently, St Petersburg can boast 26 bunkering companies. Five market leaders were responsible for 67% of fuel sales, while another 19 operators accounted for the remainder. As in 2009, Lukoil-Bunker remains the leading bunker company, with sales of 152,342 tonnes (19% of the market) in the first half of the year. Gazpromneft Marine Bunker followed with 147,782 tonnes (about 19% of the market).

The third place was occupied by Nevsky Mazut, with sales of 91,602 tonnes (12% of the market); the company was only the fourth supplier in terms of quantity in the previous year. Baltic Fuel Company had sales of 69,951 tonnes (9% of the market), and Baltic Bunkering Company was slightly behind with sales of 65,279 tonnes (8% of the market).

Bunkering in St Petersburg is still cheaper than in other European and Russian ports. During the past six months prices for IFO-380 have remained at practically at the same level as in 2009 and stayed within the range of $340-350 per tonne. The average price for IFO-180 is $360-370 per tonne, while diesel fuel has sold within a range of $520-$655 per tonne. Low-sulphur fuel sold at St Petersburg attracted a premium of $20-50.

Approximately 40% of fuel is supplied from Omsk Refinery and 15% from Uztinsky Refinery. Other large suppliers are the Samara Refinery group and the Mariysky Refinery. Some bunker companies also offer products from Yaroslavl, Moscow, Achinsky and other refineries.

St Petersburg saw strong port growth during the first part of the year, with turnover from January-September 2010 increasing by 14.85% against the similar period last year, reaching 42.55 million tonnes. The transhipment of bulk oil products increased by 1%, up to 12,164 million tonnes, although turnover decreased in some dry bulk areas. Container turnover increased to 1,380,520 TEU, an increase of 47% over the first nine months of the previous year.

Oil loading terminal under construction in Ust-Luga

Turnover at Ust-Luga port grew the most rapidly of all the Baltic ports in the first half of 2010. According to reports from Klaipeda port administration, transhipment in Ust-Luga increased by 30%, against increases of 16.5% in Tallinn, 16.7% in St Petersburg and 14.5% in Klaipeda. Total throughput reached 5.68 million tonnes, including 4.21 million tonnes of coal and coke, and 451,000 tonnes of general cargo – an increase of 76% over last year.

According to Tiit Vyahi, Estonian ex-prime minister, “Ust-Luga port has received generous investment over the last three years, and is therefore developing more rapidly than Estonian ports”. This statement is confirmed by port statistics for the first eight months of the year, showing that transhipment in July-August of 2010 increased to 7.40 million tonnes.

Six terminals are in now operation at Ust-Luga. These include the coal transhipment complex, general cargo complex, sulphur loading terminal, ferry complex for automobiles and railway carriages, the Yug-2 multi-purpose transhipment complex, and the Factor timber terminal. The oil loading terminal is expected to start operations in 2011. This complex is a part of the Baltic Pipeline System-2, and is expected to become one of the largest oil loading terminals in Russia. The terminal will have capacity of up to 30 million tonnes, and is intended for the storage and transhipment of crude oil, diesel fuel, fuel oil, petrol and gas condensate. The project is managed by Rosneftbunker, which is a subsidiary of Kompania Ust-Luga, and will run the terminal after construction has been completed.

Annual port throughput is expected to exceed 100 million tonnes by 2015. To implement the program, Ust-Luga administration needs to perform heavy dredging works. Dredging of the oil loading terminal, oil products terminal and bunkering complex is expected to be completed by the end of 2010. Construction of the second 18 metre deep seaway canal is planned for 2011. All these works are financed by the federal budget. According to Ust-Luga’s general director, Maxim Shirokiy, the port will be able to provide services to large capacity vessels operating in the Baltic Sea and Danish Straits, up to and including 160,000 dwt tankers.

Ecoshelf wins Baltic safety contract

Ecoshelf-Baltica has won the bid to provide emergency response and oil spill response services for Lukoil at its distribution and loading complex RPK-Vysotsk LUKOIL II in the Leningrad region. The contract was awarded on 20 September, and will be valid for one year, according to an announcement on the company’s website. Ecoshelf-Baltica is a professional rescue organisation specialising in oil spill response in the Baltic Sea and Russian inland waters. Ecoshelf-Baltica has been under contract to RPK-Vysotsk LUKOIL II since commissioning operations began at the terminal in 2003. RPK-Vysotsk LUKOIL II is one of Lukoil’s major export bases, and in 2009 it dispatched 13.9 million tonnes of oil products.

Lukoil offers bunkering at Baltiisk

The Kaliningrad branch of Lukoil-Bunker has started bunkering operations in Baltiisk Port in the Kaliningrad region. The company offers all types of fuel oil, including low-sulphur fuel and diesel fuel. The first operation was the bunkering of the Ice Bird refrigerated carrier in August 2010.

Navi bunkering tanker starts operations in Constanta

Lukoil subsidiary company Lukoil-Bulgaria Bunker has launched physical bunkering operations in Constanţa, Romania, providing fuel oil and diesel for vessels calling at Constanţa Port. Bunkering is provided by the bunker barge Navi (formerly Unicom Energy), which the company bought and repaired. The vessel started operations in October 2010, and will provide services on the Bulgaria-Romania shoulder. Lukoil-Bulgaria Bunker has now achieved its target of supplying 2,000 tonnes per month on the lower Danube River, 61 miles from the estuary. Gas oil is provided from two barges, each with a capacity of 1,000 tonnes. The first bunkering operation was performed in August 2010.

Istanbul service extended

Lukoil-Bunker Istanbul Ihrakiye is to expand its fuel oil supply operations with the addition of two new bunker barges in Istanbul. The vessels are expected to start operation in October-November 2010. Currently, Lukoil-Bunker Istanbul Ihrakiye sells up to 15,000 tonnes of light and heavy fuel monthly. The company also intends to expand its operations to other Turkish ports.

Lukoil-Bunker Italy moves into Sicily

Lukoil-Bunker Italy started operations in the port of Augusta, Sicily, in August 2010. It currently supplies MGO 0.1% and IFO 380 from chartered vessels. The fuel is supplied from ISAB refinery facilities, which have an annual capacity of 14-18 million tonnes, and are 40% owned by Lukoil. Oil and oil products are delivered to Sicily by tanker. The company plans to expand bunkering services to other Italian ports.

Four new members for RAMRBS

The Russian Association of Marine and River Bunker Suppliers held its most recent board meeting on 23 September 2010. Four companies had applied for membership: TNP Bunker (Kazan), Transneft-Service (Novorossiysk), Trans Oil Service (Novorossiysk), and EKOTek (St Petersburg). The Board of Association approved all four applications

• TNP Bunker is a subsidiary of Tannnefteproduct Holding Company. It was founded in 2006. The company supplies heavy fuel oil, MGO and diesel in Yaroslavl, Kazan, Volgograd, Chistopol, Samara, and Rostov-on-Don. TNP Bunker owns 16 vessels, including oil tankers with a capacity of 550 tonnes, four self-propelled fuel vessels, and fuel oil barges with capacity of up to 2,250 tonnes. There are also several storage facilities in Yaroslavl, Kazan, Volgograd and Rostov-on-Don, with capacities from 1,200 to 3,200 tonnes.
• Transneft-Service was established in 2007. Its major activities include: wholesale oil trading; loading oil and oil products for both Russian use and for export; export transhipment services; and ship agency in Novorossiysk Port. Transneft-Service operates in Novorossiysk, Odessa, St Petersburg, Primorsk, and Kozmino ports and in Kerch Strait. The company owns the 6,400 dwt bunkering barge Ophelia, which operates in Primorsk and St Petersburg, and the 3,850 dwt Orion, which operates in Novorossiysk. The company also provides bunkering services at Sheskaris oil terminal berth in Novorossiysk.
• Trans Oil Service was founded in 1995 to offer bunkering services in Novorossiysk. It owns the bunker tanker Melany.
• EKOTek was established in 2005. It provides a range of services, including the manufacture, transhipment, and storage of oil products, wholesale trading, and bunkering services. The company operates in St Petersburg and Ust-Luga ports. It owns the 1,300 dwt tanker Amur, and a personnel launch, Tsaritsa Alexandra. EKOTek has taken long-term rent of an oil storage facility with a capacity of 7,000 tonnes.

Contour Group orders four

Contour LLC has placed an order with JSC Baltic Shipyard for four non-self steering oil barges, according to reports in Russian PortNews. The barges, which have a capacity of some 6,300 dwt, are designed for transportation of petroleum products with flash point above 60° C, including those requiring heating. The vessels will navigate on inland waterways and in marine areas, and are classed for operation in ice of up to 20cm thick.

All four barges have reinforced double-bottomed, double-sided hulls in the areas of the 12 cargo tanks, and are built in compliance with modern standards, rules and regulations of the commercial shipbuilding industry under the supervision of the Russian River Register, the company said.

St. Petersburg-based Baltic Shipyard is the largest shipbuilder in Russia. The company specializes in the construction of icebreakers and ice-class vessels with nuclear and diesel power plants, largecapacity vessels for transportation of various cargo and warships.