World Bunkering Spring Issue 2019 by Constructive Media

Spring 2019

THE OFFICIAL MAGAZINE OF IBIA

DOORS CLOSING ON OPEN LOOP SCRUBBERS LOCAL BANS SPREADING AS PRECAUTIONARY APPROACH GAINS GROUND

INSIDE THIS ISSUE: BIMCO ON BUNKERS GOODBYE TO SMALLER TRADERS? MEDITERRANEAN ECA ON THE CARDS

The bunker scene is far more complex than it was just a few years and the sector must be prepared for continual change

ourteen years ago when I took over as editor of World Bunkering the marine fuel market was a much less complicated, and far less interesting, place. Mostly we wrote about quantity and quality issues. Regulatory changes were yet to have a marked effect and while the industry was well aware of the serious threat posed by oil spills the idea that environmental concerns would eventually lead to a move away from fossil fuels had yet to dawn on the industry. Well, you will still find plenty about quantity and quality in this issue. An outbreak of ‘bad bunkers’ in various places last year features on several of our pages. Meanwhile, our Quantity page is devoted to developments in Singapore, where the use of mass flow meters by barges for supplies of distillate fuel will become mandatory in July. However these days everything takes place within the context of the massive shifts in the way we do business brought on by increasing regulation. The new rules of the game reflect a step change in society’s view of what is acceptable now and what will be essential for a sustainable future for generations to come. A few years ago INTERTANKO’s contention that all ships should use distillate fuel was met with huge scepticism, not least on the pages of this magazine. Now, in the spring of 2019, this issue includes a detailed assessment of what shipowners and bunker suppliers need to do in order to be ready for the 0.50% sulphur in fuel cap that comes into force at the start of next year. IBIA director Unni Einemo takes us through many challenges facing the industry if ships are to comply by the deadline. The stakes are high. She advises that “the best course of action is for all parties to try their best to be ready for 2020, because doubts foster inaction”. She warns: “Society will judge the entire sector harshly if it fails.”

World Bunkering SPRING 2019

What is happening is not quite what INTERTANKO envisaged - a proliferation of, possibly, incompatible 0.50% compliant blends and many shipowners opting for scrubbers. In fact engineers already have a headache trying to manage switching to 0.10% in Emission Control Areas (ECA). Now the situation will be even more complex. Potentially a nightmare awaits the industry if we get it wrong. Fortunately there are also plenty of reports of the industry preparing, of the big players making sure they are ready in plenty of time. Some of course have opted for scrubbers. Late in the day that route has become more complicated. Singapore’s decision to ban washwater discharges from open loop scrubbers took the industry by surprise. It has also meant more work for our director. Unni has written a detailed explanation of IBIA’s view of the, now quite widespread, move to ban the use of open loop scrubbers in ports. On the subject of regulations, just as your editor was dotting the last ‘i’s and crossing the last ‘t’s of this issue in came a news of a probably generally unwelcome decision by the EU. The European Commission is proposing publishing data gathered on the emissions of all individual ships calling at EU ports. The International Chamber of Shipping (ICS) has told World Bunkering: “ICS is disappointed but not surprised that the European Commission intends to proceed with its plans to publish potentially commercially sensitive data about individual ships which may not correspond to actual CO2 emissions in real life, although a lot will depend on how the Commission intends to use this information in practice. It’s regrettable that rather than fully aligning the EU regime with the Fuel Oil Data Collection System adopted by IMO, under which individual ship’s data would be anonymised, the Commission has simply sought to make its approach compatible with the IMO system, which is not quite the same thing.”

Exactly what the EU eventually puts into place will certainly feature in future issues. But in an any case the EU moves are another indication of the huge pressure coming on shipping and bunkering to change and, eventually, move to a carbon-free future. Again many of our pages reflect moves towards greater fuel efficiency and to the adoption of new fuels. LNG is top of the list and many of our reports reflect this, as do of course our dedicated LNG pages. There are though other fuels on the scene. Our IT page highlights the use of a blockchain system to verify deliveries. Using blockchain is very much a sign of things to come. But so, perhaps, is the type of bunker stem blockchain has initially been used to verify - a blend including biodiesel. Meanwhile Singapore, which is one of the leaders in preparing for LNG bunkering, is also funding the development of methanol, which could be the dark horse in the race to decarbonisation. All in all, the bunker scene is a very busy place right now, and that is reflected in our pages.

David Hughes Editor

EDITOR’S LETTER

GETTING READY

Chairman’s Letter

Director’s Report

IBIA Events 2020 Is fast approaching – Are you ready?

IBIA Asia Full steam ahead

IBIA Africa IBIA AFRICA to present IMO MEPC Decisions in May

Interview Bimco on bunkers

News First CME Singapore FOB marine fuel 0.5% futures contract

Central America Quality issues hit volumes

Caribbean Moving towards LNG

CONTENT

China China changes tack on scrubbers

Russia Bunker association joins regulation updating committee

Equipment & Services ‘Zero emission’ ferry conversions

Fujcon Driving Transformation

Scrubbers IFacts and fears in the open loop scrubber debate

Western Mediterranean Mediterranean ECA on the cards

LNG Good year for LNG

Traders Goodbye to smaller traders?

Legal Carnival appeals French fine

Quantity Singapore completes MFM programme

IT IBlockchain used in biofuel blend bunkering

Company News

Next Issue

New IBIA Members

Environment three Ps for 2020

Innovation New batteries tested

Diary

IBIA Events 2019

Singapore Still top, but drawing breath? Publisher & Designer: Constructive Media ibia@constructivemedia.co.uk Editor: David Hughes anderimar.news@googlemail.com Deputy Editor: Unni Einemo unni@ibia.net Project Manager: Alex Corboude alex@worldbunkering.net On behalf of: IBIA Ltd Office 239 New Broad Street House 35 New Broad Street London, EC2M 1NH, UK Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 3865 Email: ibia@ibia.net Website: www.ibia.net

The views expressed in World Bunkering are not necessarily those of IBIA, or the publishers unless expressly stated to be such. IBIA disclaims any responsibility for advertisements contained in this magazine and has no legal responsibility to deal with them. The responsibility for advertisements rests solely with the publisher. World Bunkering is published by Constructive Media on behalf of IBIA and is supplied to members as part of their annual membership package.

Constructive Media 50 George Street, Pontypool NP4 4PR Tel: 01495 740050 Email: ibia@constructivemedia.co.uk www.worldbunkering.net

Hurdles may trip us up but we should surely be looking at measures to help us clear them

n writing my Chairman’s letter for the previous issue of World Bunkering I was paid a huge compliment by a colleague who likened me to the character Pollyanna from the novel by Eleanor H. Porter. The comparison was clearly not in terms of physical likeness – I would like to hope that Pollyanna bore very little resemblance to a small, robust man with a rather patchy greying beard – but more in relation to the positive sentiments that I endeavoured to convey. I admit that I do try to lean towards a positive outlook on life but in the same vein I also like to think of myself as a realist and accept that a pragmatic approach may not always be the one that represents the most optimistic. I say this because we find ourselves at a time where the industry is reacting to the pressures of 2020, given the close proximity of the deadline, with some of these reactions appearing to be somewhat disproportionate and potentially based on popular preconceptions. In recent months we’ve seen renewed fears surfacing surrounding the availability of compliant fuel with a variety of different viewpoints being aired at industry events or via industry publications. Cries of “there won’t be enough to go around” are countered by “the industry is more than prepared to meet demand” but neither of these tell us anything like a full story. Both statements being far too broad and generalised to accurately reflect where we are now let alone where we’ll be come the turn of the year. Questions surrounding quality of the products which will become available have been prevalent for quite some time with specific focus being placed upon stability and compatibility of the new fuels.

World Bunkering SPRING 2019

However, the quality scare in Houston during the middle part of 2018 has prompted further speculation as to potential problems and whether we can expect more of what was seen in that particular instance. The CIMAC report issued in light of the difficulties experienced did indeed confirm that problematic fuels containing unexpected chemicals had been supplied to vessels but also noted that the industry has not been able to ascertain directly where in the supply chain the problems occurred. We do accept that changes in quality, both positive and negative, follow hand in hand with legislative reform but rather than concerning ourselves with hurdles which may trip us up we should surely be looking at measures that will help us clear these hurdles or even eradicate them completely. The idea of greater transparency within the supply chain offers opportunities for buyers and suppliers alike to have a greater degree of confidence in the products being supplied. Calls for greater transparency are nothing new but initiatives such as the IBIA Best practice guidance for suppliers for assuring the quality of bunkers delivered to ships offers support for those looking to tighten up on areas where problems may creep in.

It was made extremely clear at the IBIA event held during the SMM exhibition in Hamburg in September of last year that this is a very emotive topic and the outward perception held by certain parties is that the use of open loop scrubbers is simply a means of redirecting air-bound pollution into the world’s oceans and is not in keeping with the message that the IMO is looking to promote. The point here is not to dismiss these decisions as misinformed or to roundly condone them as being the only possible choice to make, it is simply to ensure that such decisions are made having taken the appropriate steps to understand what we are trying to achieve and the impact. What we do now will mould the future and as such it is not the time to formulate ideas based upon the partial understanding of a situation or our emotive response to a perceived concern. Now is the time to make changes based on facts. This is obviously easier said than done however, IBIA is making sustained efforts to work closely with all stakeholders in the industry to ensure that good quality information is available for all our members to aid in this decision making process.

We are also starting to see a more substantial reaction with regard to other compliance options, most specifically Exhaust Gas Cleaning Systems / Scrubbers. In recent weeks a number of countries and ports have taken steps to limit, what they consider to be, the potential detrimental impact that open loop scrubbers have on our environment by banning the discharge of wash water in their territorial waters. We saw this standpoint adopted in Singapore in November of last year and subsequently China and more recently Fujairah and Waterford in Ireland have followed suit.

Michael Green Chairman

CHAIRMAN’S LETTER

A POSITIVE OUTLOOK

s this issue goes to press, we are less than 11 months away from the new global low-sulphur era, but the final IMO meetings to get clarity on crucial details are just around the corner. In mid-February, the 6th session of the IMO’s Sub-Committee on Pollution Prevention and Response (PPR 6) will endeavour to complete work on remaining issues relating to consistent implementation of the 0.50% sulphur limit which takes effect from 1 January 2020, so that these can be sent to the 74th meeting of the Marine Environment Protection Committee (MEPC 74) in mid-May for any final tweaks and approval. This will be the last MEPC session before 2020. Deadlines for submissions to IMO meetings come much earlier. IBIA was working frantically towards the end of 2018 to submit papers prior to the final PPR 6 deadline, which fell on December 28. The first deadline for MEPC 74, for any submissions containing proposals for so-called “unplanned outputs” - IMO speak for items which do not fit in under already defined agenda items - has already passed. The final deadlines for MEPC 74 are in March. Given that I continue to be IBIA’s IMO representative, you can appreciate that I need to spend a significant amount of my time and effort on this role, so that IBIA can provide relevant input on 2020 issues. There are many challenges. To give you an idea about the huge relevance of the work currently going on at the IMO, the agenda for PPR 6 includes finalisation of draft guidelines on consistent implementation of the 0.50% sulphur limit under MARPOL Annex VI, draft amendments to MARPOL Annex VI relating to sulphur testing and verification issues, and associated existing guidelines such as Port State Control (PSC) guidelines. IBIA has made key contributions in all these areas through papers submitted to IMO meetings, participating actively in those meetings and through discussions with other delegates to IMO, both from member states and other organisations with consultative status.

World Bunkering SPRING 2019

IBIA continues to push for a sensible and uniform approach to sulphur testing and verification so that ship operators and bunker suppliers are not subjected to potentially unreasonable and different treatment from one jurisdiction to the next. We have finally seen our long battle to gain recognition for the scientifically proven 95% confidence principle, which applies to all measurement methods, to be accepted when verifying the sulphur content of samples taken from the ship’s fuel system. The current verification procedure applicable to the MARPOL sample as per appendix VI to MARPOL Annex VI fails to recognise this. We are also seeing support for our proposal to add a definition of “sulphur content” under regulation 2 of MARPOL Annex VI, referring to a specific test method to ensure that the final and binding analysis to determine compliance is always carried out using the same test method (ISO 8754:2003) performed by a properly accredited laboratory. As these amendments would not take effect until mid-2021 at the earliest, we hope IMO member states will support our call for these principles to be included in guidelines now, so they are in place before 2020. PPR 6 also needs to agree on exactly what should be in a standard reporting format for fuel oil non-availability to be developed by IMO, generally referred to as a fuel oil non-availability report (FONAR). There will also be discussions on the more difficult question on guidance for how PSC should deal with a FONAR. Another important agenda item at PPR 6 is the review of the 2015 Guidelines for Exhaust Gas Cleaning Systems. PPR 6 will discuss the outcome of a correspondence group which had the mammoth task of working through issues in this increasingly controversial area, as well as consequential amendments to PSC guidelines. The proposed revisions to the EGCG guidelines contained in the group’s report are chiefly technical and focus on monitoring of washwater, emission testing and approval of scrubbers, as well as guidance on accidental breakdowns and instrument malfunctions.

Given concerns about the environmental impact of washwater, discussion on this agenda item could be fraught and there will undoubtedly be calls for a precautionary approach from some quarters seeking to ban all scrubber discharges into the sea. We hope the outcome will be agreement to undertake a proper, scientifically sound risk assessment of possible unintended consequences to the marine aquatic environment, rather than hastily deciding to reverse IMO regulations for a technology that has been accepted as a tool to meet air emission limits. That would pull the rug from the share of the global fleet that has invested in scrubbers to comply. Once PPR 6 is over, we should have a better idea what the IMO’s final 2020 guidelines and regulatory framework will look like and whether MEPC 74 will have a straightforward task in rubber-stamping them, or if there are controversial elements that will make it difficult. After MEPC 74, we are at the halfway point of the final year to prepare for the biggest change to the marine fuels sector since ships switched from coal to oil-based bunkers, and it all has to come together over a much, much shorter period. Many of IBIA’s members are already well underway with preparations but we have also seen that confusion, concern and consternation often get the upper hand during the countdown to 2020. You can count on IBIA to do our utmost to help guide the industry through this period.

Unni Einemo Director International Bunker Industry Association unni@ibia.net

DIRECTOR’S REPORT

THE FINAL COUNTDOWN

IBIA EVENTS

2020 IS FAST APPROACHING – ARE YOU READY? Come to IBIA’s events in 2019 to learn what we can do to ensure the 0.50% sulphur limit is successfully implemented Sofia Konstantopoulou reports

uring 2018, IBIA held a number of successful, engaging, high quality international events. In 2019 we will continue working hard, introducing innovation, maintaining our values and representing our members within the industry, exceeding their expectations in terms of the benefits they get. How does all this work in practice? Seize the opportunity to network and get a deeper knowledge of the bunker industry through the conferences and exclusive Bunker Taining courses we run around the world. We are proud to host the IBIA Annual Dinner 2019 at the luxurious Grosvenor House in Park Lane in London, on 25th February 2019. A well-established fixture in the bunker industry’s calendar, the IBIA Annual Dinner is the only way to start London’s IP week. This year, IBIA will enrich our members’ networking opportunities by introducing a new online platform giving guests the opportunity to meet online before, during and after the dinner. This innovative networking tool respects and protects our guests’ personal data (adhering to GDPR). The high level of support received for this year’s event is fantastic. IBIA would like to extend thanks to our Diamond sponsor S&P Platts, World Bunkering SPRING 2019

our Silver sponsor Gulf Petrol Supplies and our Bronze sponsors BP Marine and Total. Don’t miss the chance to attend the bunker industry’s most exclusive event of the year! With lots of other surprises (we cannot reveal everything) we are certain this will be the most successful IBIA dinner to date. Moving forward, Bunkernet in partnership with IBIA will organize a half day Conference during the East Med Marine Exhibition, which will take place on the 11th-12th April in Limassol, Cyprus. The exhibition has been the leading Technical Marine and Oil & Gas exhibition in the Eastern Mediterranean for over 15 years. With over 100 exhibitors from all over the world, it will provide a first class opportunity for the marine/offshore and Oil & Gas industries leading players and stakeholders to interact and to learn about important industry updates and technological advancements. The aim of the Conference is to offer opportunities to further discuss the implications of the 2020 Sulphur Cap regulation. Also in April, after a series of successful IBIA Asia Dinners, IBIA Asia returns with a dynamic dinner at the luxurious Fullerton Hotel in Singapore on 11th April.

The IBIA Asia office will host around 200 people, both local and international IBIA members, offering an A-Class platform for networking opportunities. We are proud to once again give out the IBIA Bursary of S$14,000 to assist students doing Marine Studies at the National Technology University (NTU). IBIA Asia has been helping maritime students from less privileged backgrounds since 2012. The 4th IBIA Africa Conference will take on 28th-31st May returning to Cape Town, South Africa where the first IBIA Africa Conference was held in 2015. This will include a full day of training and 2 days of conferencing where we will share vital information and unpack legislation post the IMO’s Marine Environment Projection Committees’ last meeting prior to the global sulphur cap taking effect. IBIA’s Director and IMO Representative, Unni Einemo, will be joined by international and local experts in fuels, shipping, port authorities and regulators in an engaging and much anticipated forum. Moving to our next conference, IBIA and the UK Chamber of Shipping will once again join forces for a half day Conference at the premises of the UK Chamber Shipping, in London,

IBIA EVENTS

n 18th June, to discuss the IMO 2020 Sulphur Cap, a once-in-ageneration disruptor to shipping’s commercial environment. This timely event takes place less than six months before the new regulation takes effect, shortly after the IMO meeting where pending issues are expected to be finalized. The Conference will cover topics related to availability, enforcement, handling of new fuels, reporting of compliance issues and mitigation of safety issues, fuel disputes, scrubber installations and open loop discharges. We have designed this conference to help shipowners get up to speed on everything they need to know to ensure compliance with the regulation. It will also provide the opportunity to those attending to exchange views on challenges and how others are preparing.

We are very excited to share with you that the IBIA Caribbean Conference hosted by the Maritime Authority of Jamaica (MAJ) will take place in Montego Bay, 10th-13th September. This will be IBIA’s second conference in the Caribbean in less than two years. Last year’s conference created tremendous value not only in relation to the bunkering industry, it also offered opportunities for a range of ancillary services to the global shipping industry, as Jamaica works to become a major maritime centre in the Caribbean. Prior to the Conference, IBIA will offer an educative platform to the local maritime stakeholders through the advanced Bunkering Training course. During the conference, the IBIA and MAJ partnership will create valuable opportunities for local and international players to interact and discuss future investments.

We warmly invite you to participate in the above conferences and/or training opportunities which we believe you will find driven and beneficial.

Renowned personalities of the shipping community are joining forces to elevate IBIA’s events. If you want to become a speaker, sponsor or find out more about our events, you can contact Sofia Konstantopoulou at sofia.konstantopoulou@ibia.net. Follow our social media: internationalBunker IndustryAssociation/ ibiabunkers https://linkedin.com/ company/ibia.net @IntBunkIndAssoc Website: Ibia.net

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JOIN US Membership Benefits By joining IBIA you will become part of a global network of bunker industry experts who collectively form the world’s leading authority on bunkers. Not only will you have access to a wealth of information and insight (we publish newsletters and industry updates on current issues) which offer pragmatic advice for managing the industry’s challenges; members also have the potential to shape and influence both international and local legislation. This happens through IBIA’s Working Groups which are responsible for developing industry guidance, participation in IMO correspondence groups, solving long-term industry issues, and addressing both commercial and technical issues.

Corporate • Register up to three offices in the same country • Free attendance or discounts on IBIA training courses/ conferences/seminars/events • Discounts on other industry events • IBIA Board member eligibility • IBIA Working Group eligibility • Multi-subscription to World Bunkering magazine • Eligible to book tables at the prestigious IBIA Annual Dinner • Representation at IMO (International Maritime Organisation) • Use of IBIA logo on your website and stationery • Access to online membership directory • IBIA mediation and dispute resolution • IBIA membership certificate

Individual • IBIA board member eligibility • IBIA Working Group eligibility • Free or discounted IBIA training courses/conferences/ seminars/events • Individual discounts on other industry events • Subscription to World Bunkering magazine • Representation at IMO (International Maritime Organisation) • Use of IBIA logo on your website and stationery • Access to online membership directory • Eligible to book up to 4 tickets at the prestigious IBIA Annual Dinner • IBIA mediation and dispute resolution • IBIA membership certificate

New Member Benefits Multiple year discounts 15% discount for 3 years membership, (Paid in one instalment) – Guarantee no membership increases for the next 3 years.

The new website is designed so members can easily access and change their own information.

IBIA Members fees Individual membership: £250 Corporate membership: £1,250

Please note that all of the above publications can also be downloaded by members by visiting www. ibia.net and logging into your account. Please then go to the download section of the website.

This directory is only available to IBIA members.

IBIA World Bunkering Magazine – free copies for Members of IBIA Please note non-members are requested to subscribe to the magazine at a cost of Pounds Sterling £45, £60 or £80 depending on location.

IBIA Logo Both Corporate and Individual members will have the right to use IBIA’s logo on their website and stationery.

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

If you are interested in learning how you can become involved then please get in touch.

IBIA Members On-line Directory If your details are not correct, please log on to our new website and update them on your members page.

World Bunkering SPRING 2019

IBIA ASIA Simon as speaker at the CIL NUS, International workshop on Greenhouse Gas Emission & Shipping

FULL STEAM AHEAD With SIBCON over in October we thought we might have a quieter period but that was not to be with lots of work to be done

he monthly meetings with the Technical Committees on Bunkering and LNG Bunkering were still in full swing at the end of 2018. These TCs are reviewing the TR 48 for MFM Bunkering and TR56 for LNG Bunkering, respectively. IBIA Asiaâ&#x20AC;&#x2122;s Regional Manager, Simon Neo was also appointed to the Singapore Accreditation Council (SAC) as Chairman of the SAC Technical Committee for Cargo Inspection. We had our very first meeting on 19th Dec 2018. IBIA Asia has been invited to join a new working group formed by the Maritime and Port Authority of Singapore (MPA) to chart the future direction of the Singapore bunkering industry, which was announce during SIBCON 2018. We had our first meeting on 23rd Nov 2018 and the second meeting has been scheduled for 1st March 2019. Centre for International Law IBIA Asia was invited to speak and also participate as a panellist at the International Workshop on Greenhouse Gas Emission and Shipping on 13 to 14 November 2018, organised by The Centre for International Law, National University of Singapore. Simon Neo presented a paper on the implications for the bunkering industry, its challenges, practical issues and avails of low sulphur products come 2020.

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Simon giving a presentation on IBIA during visit by OilChem China and Trade delegates

Visit by OilChem China and Trade Delegates About 15 delegates from OilChem China visited us on 19 December 2018. We did a presentation for them about IBIA and what we do for the bunkering and marine industry. The delegates were especially interested in how Singapore regulates the bunker industry and also its standards which includes Mass Flow Meters for bunker deliveries. Methanol for Bunkering Methanol has gained some traction here in Singapore, especially since IMO has completed draft interim guidelines for the use of this low flashpoint alternative fuel for ships. A working group has been formed in Singapore with the National Technology University (NTU), the Methanol Institute and an independent shipping company, with both MPA and IBIA taking part as observers. This working group will look into how Singapore can use methanol for marine bunker purposes. IBIA Asia Annual Dinner The IBIA Asia Annual Gala Dinner for this year will be held on 11 April in conjunction with Singapore Maritime Week. As in previous years,

we will again be handing out a S$14,000.00 bursary to assist disadvantaged students doing Marine Studies at the National Technology University. IBIA Asia has been helping maritime students from less privileged backgrounds since 2012. The hotel we have chosen this year is the Fullerton Hotel which is very central and with easy access. Training The IBIA Asia office offers specialised training for the bunker sector in Singapore with MPA-certified courses. We run both a Basic Bunkering Course and an Enhanced Bunkering Course covering the Singapore Standard, SS600 and the Mass Flow Meter technical standard, TR48. Our training in Singapore will continue in 2019 with the first classes of the year starting on 13-14 February for the Basic Bunker Course.

Details of our regular courses are available at www.ibia.net/training or you may contact Nadiah at +65 6472 0916 or nadiah@ibia.net. Simon Neo Regional Manager Asia T: (+65) 6472 0916 Email: regionalmanagerasia@ibia.net 15

IBIA AFRICA

IBIA AFRICA TO PRESENT IMO MEPC DECISIONS IN MAY Join IBIA for a full day training course and 2 day conference in Cape Town

BIA Africa is excited to announce our next conference which will be held in Cape Town at the Royal Cape Yacht Club 28 - 30 May 2019. This will be our 4th Regional Conference in Africa. The Conference will bring together the Africa bunker industry for networking, create a platform for engagement with industry and government, and shared learning. We will present the decisions from the 74th meeting of the IMO’s Marine Environment Protection Committee meeting held in mid-May, the final MEPC before 2020. Our Director, Unni Einemo will share with our delegates the latest update on the legislation and guidelines form the IMO and the requirements of industry as we move towards a cleaner and even more environmentally friendly industry through a lower sulphur regime. Our speakers will range from expects in fuels, shipping, port authorities and regulators. Topics we will cover:

• Leadership panel: Looking beyond 2020 • Ports: Ready for 2020? We have a number of speaker, sponsorship and media partnerships. Please contact Regional Manager, Tahra Sergeant on tahra.sergeant@ibia.net WISTA revival in South Africa A revival of the Women’s International Shipping & Trading Association (WISTA) in South Africa in January saw 35 women from across the maritime and trading sectors gathering in Cape Town to consider strategies to support a more diverse, inclusive and strong maritime industry. WISTA, which has recently gained IMO consultative status, is an international networking association active in 44 countries and with 3000 members worldwide. Under-represented in Africa, WISTA’s revival in South Africa will support local, regional and international engagement amongst members and ensure that a platform is created from which to support business connections, professional development and mentorship.

The depth of the organisation was evident in the level of experience of attendees, representing legal, marine service, port management, bunkering, marine surveying, training, trading, ship repair, ship building, crewing, customs & excise, ship’s agency, oil & gas, satellite communications, media and related sub-sectors. WISTA SA hopes to establish chapters in Cape Town, Durban and Port Elizabeth by the end of 2019 and looks forward to celebrating World Maritime Day in September, which has as its 2019 theme ‘Empowering Women in the Maritime Sector’.

Tahra Sergeant Regional Manager: Africa T +27 412 1593 SA Mobile +27 (0)79 990 7544 E tahra.sergeant@ibia.net S sergeant.tahra W ibia.net

IBIA Training topics Introduction session: • Changing World: Fuels, Specs, Market Refresher sessions • Operational • Technical • Commercial Preparing for 2020 Claims handling IBIA Africa Conference Topics • IMO 2020 UPDATE: Compliance and Enforcement • Preparing for 2020 Fuel Challenges in Africa • Shipowners panel: with less than a year until 2020, where to from here? World Bunkering SPRING 2019

WISTA SA

IBIA CODE OF ETHICS

IBIA CODE OF ETHICS IBIA is appealing to all of its members to join this important initiative by showing support for our Code of Ethics. It’s an aspirational statement and an important step towards our aim of promoting the adoption of a common set of ethical values across the industry. We believe that when the entire industry acts with the highest ethical standards that this will be to the benefit of us all.

FAIR BUSINESS • We conduct our business in a fair and transparent manner • We will always act in the best interest of each business partner and are honest with the stakeholders involved in our business • We only engage in business using compliant products, and deliver the quality and quantity agreed with our business partners • We always act in good faith

BEST PRACTICE • • • • •

We always act in accordance with applicable legislation, including sanctions We always meet contractual obligations in a timely manner We always do our best to avoid disputes and seek resolution promptly if disputes occur We comply with all applicable competition and anti-corruption laws We respect confidential information and do not unlawfully use any intellectual property

SOCIAL RESPONSIBILITY • • • •

We seek to minimise our environmental impact and the risk of environmental damage We will always ensure employees’ health, safety and security We offer equal opportunities, prohibit unlawful discrimination and respect human rights We offer the same opportunities for professional development to all our employees

TRANSPARENCY • • • •

Our accounts and records are kept accurately and reflect the true state of the company and its operations During audits or investigations, we fully cooperate with the authorities We will not receive or give any gift or entertainment of disproportionate value We are fully committed to preventing both money laundering and terrorist financing

You can sign up to our Code of Ethics online: https://codeofethics.ibia.net/ World Bunkering SPRING 2019

INTERVIEW

iStock

BIMCO ON BUNKERS Lars Robert Pedersen is Deputy Secretary General of BIMCO. Unni Einemo sought his views on the current hot topics

ith over 30 years’ experience in the shipping industry and many IMO meetings under his belt, Lars Robert Pedersen is well versed in regulations; indeed, he was Director of Regulatory Affairs at A.P. Moller-Maersk prior to joining BIMCO in 2010. With less than a year to go before the MARPOL Annex VI sulphur limit drops from 3.50% to 0.50% on January 1, 2020, what’s the outlook according to the world’s largest international shipping association?

or lack thereof, place me in an uncompetitive situation? Can I get the fuel at the right price to support my compliance method? There is a lot of uncertainty and no one has the answers.

UE: Is the 0.50% sulphur limit in 2020 the main focus for BIMCO’s members these days, or are there other issues that are of equal or maybe even greater importance?

LRP: First of all, the regulation is clear. A ship is non-compliant if it burns fuel with more sulphur than 0.50%. This cannot be debated. The FONAR is just a uniform way to present the mitigating circumstances that port state control shall take into account when they assess how to take actions against a non-compliant ship. It is not a “get out of jail card”. There is no assurance that a FONAR will result in a free ride. We can hope that ships which present FONARs in good faith will not be unduly penalised. There is however no assurance.

LRP: Yes. Without doubt, the 2020 sulphur limit is the issue. The reason is that the cost implications may well become far reaching, but we do not know to what extent. Will ships with scrubbers become a stranded investment because the price spread between compliant fuel and high sulphur fuel is not widening enough? Everyone makes their own decisions and the eventual success of the decisions taken now will only be known on the other side of 1 January 2020. That does not bode for sleeping well at night. UE: What are your members’ main concerns regarding implementation of the 0.50% sulphur limit? LRP: Did I make the right decision on how to comply? Will enforcement,

UE: The IMO is developing a standard format for reporting fuel oil nonavailability, known as a FONAR. Do you think it will work? Are you concerned that FONARs could be abused?

BIMCO is recommending to seek compliance at all times. We are convinced that any abuse of FONARs will not be looked at mildly. Lastly, we do not know how the ban on carriage of noncompliant fuel will work with the FONAR. A ship may be allowed to arrive noncompliant, but will it be allowed to depart again with non-compliant fuel onboard? This is one area that we need to look at with the IMO member states.

UE: BIMCO has been working on a suite of so-called 2020 bunker clauses, divided into four distinct projects. What’s the status on these? LRP: The general sulphur compliance clause is now out which clearly sets forth each party’s obligations. The transition clause is also out. This clause is for use in charter parties which span beyond 1 January 2020. The clause deals with making ships ready for compliance by 1 January 2020 and also the carriage ban which enters into force by 1 March 2020. In general, the transition clause is about ensuring that the parties work together in preparation for the new regime. UE: Did decisions by Singapore and others to ban discharges from openloop scrubbers surprise you? What impact do you see from this? LRP: Reading from press articles, one could get the impression that this is both very surprising and something devastating for ships with open loop scrubbers. I am not sure however, that this is necessarily correct. Firstly, it is entirely within the sovereign rights of states to put such measures in force in their waters. Secondly, the consequence of not being allowed to use the scrubbers in ports is relatively limited. The vast amount of fuel is burned when ships steam between ports and that is where a scrubber is being paid back.

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INTERVIEW Lars Robert Pedersen regularly attends IMO meetings

UE: How long do you think it will take for the industry to adapt to the 0.50% sulphur limit and any disruption caused by it to settle down? LRP: Adaptation to this by the shipping industry will be very fast. I am much more concerned with the bunker supply industry and the refining industry. This is where we may see a prolonged adjustment phase – one which will likely affect the wider oil product markets and eventually consumers around the world.

Whether this is fair is another question. When we look at MARPOL Annex VI, and regulation 18 in particular, the elements to ensure a degree of responsibility placed on the suppliers are already in place. It is more that implementation and enforcement is lagging in the IMO member states which are parties to the Annex. Too often, non-compliance with the sulphur or quality requirements of Annex VI is left to commercial disputes,

when these could and should also be dealt with as MARPOL violations on the side of the suppliers. Ensuring a fair distribution of the obligation to deliver and use compliant fuel is the one element that could improve the relationship between buyers and sellers of fuel.

UE: IMO’s Maritime Safety Committee has agreed to add a new item to its agenda to address concerns about fuel safety, separating the subject from discussions around implementation of the 0.50% sulphur limit. What’s your view on this and what do you think MSC can achieve? LRP: The idea of getting MSC to engage is about making sure the safety aspects of fuels are thoroughly addressed. In fairness, it is likely limited what MSC can do. Much more important is it to ensure that both authorities and ships are aware of the elevated risks that follow with more blending of residual fuels. We must ensure that ships’ crews are aware and able to handle the new fuels in a safe manner. UE: What is your impression of the bunker supply industry? How can relations between suppliers and buyers be improved? LRP: There appears to be a perception amongst some in the shipping industry that the bunker supply industry’s reputation is somewhat shady. World Bunkering SPRING 2019

Lars Robert Pedersen

NEWS World Fuel Services expansion continues in lead up to 2020

FIRST CME SINGAPORE FOB MARINE FUEL 0.5% FUTURES CONTRACT Freight and commodity derivatives trader Freight Investor Services has executed the first trade on the new Singapore FOB Marine Fuel 0.5% (Platts) futures contract specs

he FIS bunker desk brokered the deal on a spread basis for December 2019 Singapore 0.5% Fuel Oil versus December 2019 Singapore 380 spread at US$200. The futures trade is the first to be made on the Platts 0.5% spot Singapore index that began publication in January 2019. Physical trading remains limited but the index is reporting a $30 premium to high sulphur fuel with the spread to Rotterdam higher at around $40. Chris Hudson of the FIS Bunker desk says the rationale for making a futures trade now is to provide a degree of price certainly for the buyer ahead of the expected increase in low sulphur premiums. It will also provide cover for an owner with a scrubber-equipped vessel who requires a lower price for high sulphur product.

Chris Hudson

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He added: “With the uncertainty surrounding the cost of the switch to 0.5% sulphur fuel from January 1, 2020, as well as the need for owners with scrubbers fitted vessels to benefit from a wide hi/lo price differential, we are glad to give more clarity to the markets. Since this trade was concluded, we have seen more liquidity enter the market and the price spreads are expected to be volatile for some time yet.” World Fuel Services expands in US World Fuel Services (WFS) has opened a new US-based physical bunker supply operation on the Columbia River, servicing Portland, Vancouver, Kalama, Longview, Rainier, and Astoria. WFS says it will partner with two Harley Marine group companies: Pacific Terminal Services and Olympic Tug and Barge to offer RMG 380 and MGO 0.1% sulphur using a dual product barge at what is seen as a key location on the Pacific Northwest Coast. “Our strategic approach to marine fuel includes technical expertise in addition to a broad spectrum of offerings that position us to deliver the highest standards of service to our customers.

We continue to listen to our customers to provide services and innovation in ports where World Fuel Services can deliver high value,” said Joe Gowen, Senior Vice President, Global Marine Supply, World Fuel Services. Aegean “will be stronger” after Chapter 11 Aegean Marine Petroleum Network Inc says it will be stronger than previously following the US Bankruptcy Court for the Southern District of New York’s approval of its revised final motion related to US$535 million in aggregate Debtorin-Possession financing from major independent energy and commodity company Mercuria Energy Group. The court also approved the Company’s Restructuring Support Agreement with Mercuria, the Official Committee of Unsecured Creditors of Aegean, American Express Travel Related Services Company, Inc, and certain holders of the company’s unsecured convertible notes. In addition, the company filed its plan of reorganisation and disclosure statement, critical steps toward exiting bankruptcy.

NEWS

“T

he Court’s actions represent key milestones in Aegean’s restructuring process and position the Company to quickly emerge from Chapter 11 much stronger than before. Both the DIP and the RSA result from a deliberate, arm’s-length process involving world-class institutions, undertaken to ensure continued high-quality service across our global network, maximize creditor recoveries and avoid months of contentious, value-destroying litigation,” said Tyler Baron, Aegean Board Director. “Upon completion of this process, currently anticipated around the end of the first quarter, the new company – with ample access to liquidity, streamlined operations, a refreshed management team, and the ability to leverage Mercuria’s core competencies – will be better positioned for long-term growth than ever.” Under the terms of the Court-approved RSA, Mercuria will receive 100% of the common equity of the reorganized Company. Mercuria will also fund $40 million in cash on account of general unsecured creditor recoveries at the Company and backstop a $15 million loan to a trust to fund litigation. First Chinese-produced VLSFO Sinopec’s Shanghai refinery has produced the first very low-sulphur fuel oil (VLSFO) to come out of Chinese refinery, according to a Reuters report, based on a Sinopec publication. The 6,000 tonne the batch of fuel complies with the 2020 0.50% sulphur limit. The Shanghai refinery is first in China to produce low sulphur fuel oil in order to comply with 0.50% sulphur limit emission control areas already imposed in China and upcoming IMO rules. China’s state run energy company’s general manager Liu Zurong was reported to have announced at an oil conference in Zhoushan in October that it would start supplying VLSFO this year and would be in a position to supply at all major Chinese ports from January 2020.

The company also plans to export the fuel to Singapore and other “One Belt One Road” countries. “As the largest oil product supplier in China, Sinopec has the responsibility and capability to start the production and supply of low sulphur fuel. In the future, Sinopec aims to team up with shipping companies and FTZs and secure policy support for mass production of low sulphur fuel,” Liu was reported to have said. Fujairah bans open loop scrubbers The world’s second largest bunkering centre, the UAE’s Port of Fujairah is to ban the use of open-loop scrubbers in its waters from next year, it has been reported. “Ships will have to use compliant fuel once the IMO 2020 sulphur cap comes into force,” according to the Port of Fujairah Notice to Mariners No.252 dated January 22, 2019 and seen by Reuters. Fujairah follows Singapore’s example and joins a growing number of ports unilaterally implementing local bans. According to P&I Club Gard, countries or ports with bans or restrictions or where the situation is unclear now include India, Belgium, Germany, Lithuania, Latvia, Dublin in Ireland, Norway, and Hawaii, Connecticut and California in the US. Gard advises its members to “monitor the situation closely and ensure that crews onboard vessels fitted with open loop scrubbers are made aware of any relevant local discharge requirements in force”. It adds: “As a precautionary measure, it is advised that vessels with open loop scrubbers installed, approach the local agents for detailed up to date requirements on the discharge of scrubber washwater as part of a vessel’s voyage planning.”

Battery, hydrogen and ammonia “are most efficient ways to decarbonise shipping” Powering European ships with batteries, hydrogen or ammonia will decarbonise the fleet and require only half the amount of renewable electricity that less efficient solutions like synthetic methane or synthetic diesel will need according to sustainable transport group Transport & Environment (T&E), which has published a Roadmap to Decarbonising European Shipping. It opposes the use of LNG as a marine fuel. T&E argue that battery powered ships offer the most efficient and immediate solution to decarbonise short sea voyages within the EU. Longer journeys will ultimately require liquid hydrogen and liquid ammonia produced with zeroemission electricity. Powering ships calling at EU ports with a combination of the three would require around 25% additional renewable electricity compared to total EU electricity production today, the analysis finds. This is a considerable amount but still half of what is required by other options like synthetic methane or synthetic diesel, according to T&E. The campaign groups asserts: “Smaller ships making shorter journeys within Europe should be the EU’s first target to convert to battery and hydrogen as their renewable energy requirements will be manageable. But often touted solutions such as synthetic methane and synthetic diesel have major drawbacks, the analysis also finds. Their apparent physical properties are similar to their fossil equivalents, making it difficult for authorities to distinguish them and enforce their use. They also require far higher amounts of renewable energy than batteries, hydrogen and ammonia. Moreover, synthetic methane suffers from methane leakage and slip – as does fossil LNG.”

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NEWS

NEW STUDY BACKS LNG AS INTERIM FUEL Natural gas as a transport fuel has the potential to reduce greenhouse gas emissions from ships by about 10%

ccording to a study by Imperial College London’s Sustainable Gas Institute to determine whether natural gas reduces emissions from transport, looking at trucks and shipping. The study found that, in shipping, natural gas engines in combination with ambitious energy efficiency improvements may go a long way towards achieving the required GHG reduction, potentially reducing emissions by 36% relative to 2008 fleet emissions. However, the study also concludes that, even assuming greater rates of efficiency improvements, it appears difficult to meet a 50% GHG emissions reduction target by 2050 using natural gas engines and ship efficiency improvements alone. It says:

“Deeper decarbonisation appears possible if a lower emissions ship technology such as hydrogen fuel cell ships becomes available from 2040 to 2050, potentially leading to a 50% reduction compared to 2008 fleet emissions. However, in the meantime, the emissions benefit of natural gas in shipping is notable due to the significant reduction in air pollution.”

The port authority is encouraging shippers, shipping companies, fuel manufacturers and suppliers, engine manufacturers and service providers to take advantage of the new scheme. The initiative is intended to promote projects and demonstrations that make use of low-carbon or zero-carbon fuels delivered in Rotterdam’s port area.

Port of Rotterdam Authority subsidises green projects The Port of Rotterdam Authority has launched its Incentive Scheme ClimateFriendly Shipping, with a budget of 5 million euros allocated to it. Allard Castelein, CEO of the Port of Rotterdam Authority: “We wish to play an active part in the reduction of CO2 emissions generated by the shipping sector. Through this scheme, we are able to give various parties just that extra financial push they need to realise a concrete project in this area.”

This incentive scheme aligns with the goals set out in the World Ports Climate Action Program, a Rotterdam initiative, which was launched in September 2018. Hamburg, Barcelona, Antwerp, Los Angeles, Long Beach, Vancouver and Rotterdam ports are all working together on projects intended to reduce the shipping sector’s contribution to global warming.

Rotterdam Port ©Danny Cornelissen

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COMPANY NEWS

WEST INDIES PETROLEUM With integrity and excellence, we are dedicated to providing a reliable supply of quality fuel, delivered with outstanding service at a competitive price.

est Indies Petroleum (WIP) is a Jamaican fuel supplier operating in the Caribbean since November 2013. At its inception, the Company recognized that a large part of its market was unserved. To meet the needs of the market, WIP acquired certain strategic, financial and human assets that would allow it to reliably and efficiently deliver high quality fuel at a price point that was better than competing geographies. In 2013, WIP entered the space through the acquisition of its first barge “Bunkerjam” and established itself as a niche player providing fuel to ships where competitors could not.

Today the Company has significantly expanded the business and controls about 90 percent of the local bunkering market in addition to establishing itself as a player in the local retail and regional spaces. With the acquisition of the newest clean product vessel, WIP now operates with 1.5M barrels of storage and is now distributing fuel into the Caribbean and Central America. WIP is planning for the new 2020 IMO fuel regulation where ships will have to use marine fuels with a Sulphur content of no more than 0.50% Sulphur against the current limit of 3.5% Sulphur.

WIP’s primary customers who are in the mining, power generation and industrial industry will continue to require HSFO after 2020. WIP is also preparing to supply ship owners and operators with both 0.5%/0.1% Fuel Oil and/or 3.5% HSFO along with both grades of MGO, depending on the requirements. In order to comply with the new requirements and provide a reliable source of fuel with efficient service, WIP plans to expand its storage in Jamaica by 800KB in 2020 through the construction of new tanks and pipelines, 400KB of which will be dedicated to storing and blending HSFO & LSFO.

Through 2013 to 2015, the Company grew its business significantly with the acquisition of two additional barges and steadily grew its share of the market to 40 percent. In 2016, WIP acquired a 600,000 barrel terminal on the south coast of Jamaica which it converted to store clean and dirty products for the local and regional markets. In 2017, the Company started delivering fuel from the terminal and exporting to regional markets. WIP also acquired a small terminal (63KB Fuel Oil) located on the Ocho Rios Cruise Ship Pier through which ex-pipe delivery is expected to commence in March 2019.

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CENTRAL AMERICA

Further Canal work depends on demand and water management ©Rob Bertholf

QUALITY ISSUES HIT VOLUMES John Rickards looks back at a difficult year for the region’s bunker suppliers

f last year’s events in the Panamanian bunker market showed nothing else, it’s that the perception of quality can be more important than the reality. The summer’s “bad bunker” claims fuel oil consignments tainted with mystery contaminants suspected to have originated in Houston and quickly spread to Panama and beyond - badly dented fuel sales in the second half of the year. The contaminated fuel still met ISO 8217 standards which are routinely tested for, however, appeared to have failed the caveat of Clause 5 of the standard, which specifies that fuels shall not contain any material in a concentration that adversely affects the performance of the ships’ machinery. Reports suggest that some smaller bunker suppliers in Panama used time-bars and the fact that the fuel still met standards to deny claims by buyers. As a result, buyers supposedly stepped back from using smaller suppliers for fear of being left out of pocket if fuel turned out to be contaminated, fears compounded by the lack of a clear concrete cause behind the issues. An International Council on Combustion Engines (CIMAC) working group investigation into the problems found no consistent correlative factors behind them:

“Based on the results of the extensive fuel analyses performed by the various fuel testing labs represented in CIMAC Fuels, no final and concrete conclusion can be made as to what specifically in the fuel formulation may have caused these incidents,” CIMAC said. “Investigative testing has shown a range of chemical species in the fuel oils used at the time of the issues. Most were present at very low levels although some were present in more significant concentrations in some samples. It is unclear if and to which extent these chemical species are also present in other currently used and historically used fuel oils without issue.” CIMAC added: “There are no consistent findings across the number of fuels tested (neither on components nor concentrations) that can be used to clearly distinguish problematic fuels from non- problematic fuels. In other words, so far, it has not been possible to confidently conclude if the blending process had gone wrong in some way or how any of the unexpected chemical species had made its way (deliberately or accidentally) into the fuel oil.” Despite the claims falling away well beforehand, year-on-year sales in Panama for the final couple of months of 2018 were down by around 18% according to Panama Maritime Authority figures.

In the first half of the year, before the “bad bunker” problems began, sales had been up 3.8% on 2017, albeit with distillates making up for a slight drop in heavy fuel oil (HFO) volumes. The drop in sales became markedly worse, though, once the quality issues began to bite from September onwards. That drop came despite Canal traffic remaining steady in terms of transits (up 0.89% to 11,504 in the first 10 months of the year), and greatly up in terms of ship size (2,160 neopanamax transits, up 31.2%) and Canal revenues (up 9.1% to US$2.082bn). While it might be the case that larger vessels may be a little less inclined to bunker before or after their Canal transit rather than waiting until later port calls, that certainly wouldn’t account for the marked fall-off in HFO sales. Panamanian suppliers have remained unsurprisingly tight-lipped about the issue and its knock-on effects on the market either for themselves or for the sector as a whole - no one’s likely to come forward to say they’ve had issues with sales, and few to suggest they’ve taken business off rivals given how competitive the local market can be - but the quality problems have added fuel to questions over the likely level of very low sulphur fuel oil (VLSFO) uptake in Panama when the IMO 0.50% sulphur limit comes in.

World Bunkering SPRING 2019

anama isn’t alone in playing home to such question marks given uncertainties over supply levels from refineries, cost, but the ability of suppliers to consistently provide fuel oil without contaminants or excess sediment from residual oil has been thrown into sharp relief by the scare. It’s also notable that while fuel oil sales dipped sharply overall in the second half of the year on the back of fewer stems rather than a drop in stem size - distillate sales were much steadier. The Canal currently lacks some of the alternative fuel infrastructure of some other major hub areas (though LNG bunkering may come online at Colón via the Costa Norte LNG terminal and elsewhere) so any uncertainties over consistent quality in VLSFO as production ramps up for IMO 2020 could leave distillates as the country’s only significant bunkering safety net if it’s to retain its hub status. Continued improvements in traffic volumes would offset that, of course.

In November last year, Canal Administrator Jorge Luis Quijano told EFE News agency that the mooted construction of a fourth set of locks for the Canal by 2025 - for which he said there was already demand - depended on being able to secure water supply and maintain levels in Gatun Lake. He said the current third set of locks “reflects a ship size focused on the container carrier and coincidentally there are those of liquefied natural gas… and the business models are those that have given us the ability to move in a business that is very rigid.” “Our infrastructure is not a thing that is built from one day to the next, it took us 9 years to expand. To build a new lock it’s going to take another 8 years.“ Quijano told a trade forum in October that new reservoirs were urgently needed as both traffic increases and rising demand for water from the Panamanian population would both put pressure on levels in the lake and the Canal basin.

PAGE TITLE CENTRAL AMERICA

He expected consumption to increase by 79% by 2020, from 438 million gallons per day to 662 million gallons. The Canal basin supplies 60% of Panama’s domestic water and Quijano said that infrastructure needed to be put in place to pull water from Lake Bayano and elsewhere to balance demand. The ability of the Canal to expand further isn’t the only possible influence on long term vessel traffic and consequently fuel sales. The top two destinations for ships passing through the Canal are the US and China, and the Trump administration’s ongoing trade war - and any slowdown in China’s economy separate from that - could still have an impact on vessel movements through Panama (notwithstanding the risk of any reporting on current US presidential policy that such policy, or the individual personnel responsible for enacting it, will have completely changed by the time of going to press).

Panama’s ports were affected by last summer’s “bad bunkers” issue ©Brian Gratwicke

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CENTRAL AMERICA

o far, Quijano says the Canal hasn’t seen any significant impact from the new tariffs - and China has been going to some lengths to strengthen its own trading and investment relationship with Panama and the country’s bunker suppliers will no doubt hope that continues. As well as vessels transiting the Canal, the other driver for maritime traffic, which in turn could boost bunker sales, is domestic import/export traffic. Although IMF has predicted renewed growth in the Panamanian economy for the coming year, here the picture is less robust. Despite a steady increase in the value of cargo (principally due to ongoing recovery from the nadir of 2015 triggered by the collapse of the Venezuelan economy), actual volumes passing through the Colón Free Zone (ZLC) - reportedly the largest such free trade zone in Central America - between January and November fell 1.7% on 2017 to 1.56m tonnes. The Asociacion de Usuarious de la Zona Libre de Colón (AUZLC), which represents the free trade zone’s 3,000 commercial companies, has called on the next government - Panama goes to the polls in May - to introduce laws to prevent strikes and stoppages, as well as to modernise cargo handling and infrastructure, and to work with export countries to better recognise the ZLC as the point of cargo origin in order to smooth trade and make the zone more attractive as a transshipment and re-export hub. According to the AUZLC, while total cargo throughput value paints a rosy picture, that value increase comes only from a limited number of sectors and ultimately reflects the slower movement of cargo in others. With improved infrastructure and reinforcing industry confidence high on the agenda, whatever government steps in come May clearly has work to do.

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CARIBBEAN

If APD and New Fortress’ plans work out, Nassau might see LNG bunkering soon ©c kramer

MOVING TOWARDS LNG Going for gas has some enthusiastic support in the Caribbean, as John Rickards reports

ho wants LNG? The answer, of course, is lots of oil consumers do, but no more so than across the Caribbean where gas represents a significant improvement on expensive - and often dirty - oil-based domestic power generation. It is also an increasingly in-demand marine fuel for the region’s critical cruise market. And while supporting infrastructure is currently at something of a premium, the same can be said for regular bunker and storage facilities at many ports and so the upgrade overhead is perhaps less than it might be in places which are already looking at improvement work anyway. The Bahamas has been one of the first to take the leap - on the back, somewhat unusually, of a failed tender for a shoreside power generation contract. When Bahamas Power and Light settled on Shell NA LNG as the winning bidder for the contract to construct a gas power plant at Clifton Pier providing up to 270 MW of electricity - replacing 80 MW of oil-based temporary power generated at BPL’s Blue Hills plant by 2021 - two of the losing bidders immediately announced they would be refocusing their efforts on providing LNG bunkers at Nassau port to the cruise market. Arawak Port Development Company, which runs Nassau Container Port, had put together a bid with fuel supplier New Fortress Energy,

but in the wake of missing out on the contract the two companies, and Bahamian investment advisory company CFAL, went straight on the offensive. APD chief executive Michael Maura told the Tribune: “We want to ensure the Bahamas wins the race. This is a Bahamian opportunity, and we want to make sure the Bahamas wins the race and gets out ahead of competitors looking to build LNG bunkering terminals as I speak.” “We need to do it now as competitors with other Caribbean ports are chasing the same opportunity. These two projects [improving the Prince George Wharf cruise facilities] align and run parallel to each other. We need to develop our bunkering capacity at the same time as we develop our cruise port infrastructure.” The plan, as outlined, would be smallscale, using a dedicated LNG bunker barge to serve cruise vessels docked at Prince George Wharf with a supporting dockside facility and storage, and no pipeline connection needed to elsewhere on the islands with all gas instead arriving by ship. Florida-based New Fortress already ships LNG to the Bahamas, having inked a multi-year supply deal with polystyrene manufacturer Polymers International after the company converted its diesel steam boilers to gas.

The company also operates Jamaica’s first LNG terminal, supplying Jamaica Public Service with gas for onshore use. New Fortress isn’t the only Florida-based LNG supplier eyeing the Caribbean. In July, Eagle LNG officially opened its Maxville LNG facility, producing 200,000 gallons of LNG per day and with 1m gallons of storage on site. The plant has been built to fuel Crowley Maritime’s two LNGpowered box ships operating between the US mainland and Puerto Rico, but also to supply LNG to domestic clients and for export across the Caribbean. The company is in the process of building a much larger LNG plant in Jacksonville focused on supplying LNG for Caribbean power generation as well as fuel. “Eagle LNG is investing millions of dollars creating small-scale LNG infrastructure to supply LNG as a cleaner-burning, more economical fuel alternative for marine bunkering and for export to the Caribbean,” said company president Sean Lalani. “It represents the start of Eagle LNG’s plans to build LNG infrastructure across the nation.” The company has been a strong proponent of LNG bunkering, which may not be too surprising given the business it’s in, but its leadership has been more vocal than most about the prospects for maritime gas use for years. World Bunkering SPRING 2019

CARIBBEAN

ut LNG doesn’t account for all Caribbean bunker efforts of late, of course. As well as offering a reasonable amount of production, the region is a major storage hub and is in prime place to offer fuels meeting the 0.50% sulphur limit early and in volume compared with other markets which might still struggle for availability come 2020, albeit a region whose multitude of individual islands and countries complicates any attempt to generalise.

firstly, the administration has to be there to support the industry - something which can at times seem lacking; and while the Panama Canal has seen some increase in traffic, it hasn’t (yet) been as notable as predicted before the widening. In addition, Canal throughput has so far been driven not so much by increased vessel transits as by larger vessels individually carrying more cargo and so the effects on bunker sales in the region are harder to predict.

Jamaica, which hosted the inaugural IBIA Caribbean Bunker Conference back in April, has for some time been trying to push itself as a hub for both bunkering and cargo transshipment on the back of its location relative to the Panama Canal and the main trades from ships passing through.

Secondly, there is the effect of the “bad bunkers” episode of last summer. While reports of tainted fuels spread from Houston to Panama, most of the Caribbean seems to have been spared perhaps because the feedstock for local bunkers is sourced from elsewhere - and one would expect then that question marks over supply quality would’ve served as a boost for bunkering companies in Jamaica and elsewhere.

At the time, Andrew Wheatley, minister of science, energy and technology, told the conference: “We see bunkering as a critical component of an aggregate of ship related services that will enhance the attractiveness and competitiveness of Jamaica as a premier shipping hub.” “This can only be achieved if the government introduces the necessary legal and administrative framework, and that is something that as a Government we are committed to do.” “The projected rise in shipping traffic with the widening of the Panama Canal provides an opportunity for us to capitalise on a greater demand for bunkering. Jamaica is [also] a major cargo centre, and this can be leveraged in developing Jamaica as a major bunkering centre. Increased shipping and cargo traffic could translate into higher bunkering volumes.”

Equally, though, a loss of confidence in fuel oil quality might make investors, particularly governments, more inclined to look more to niche, high end fuels like LNG as a safer bet for their money and regular bunkering infrastructure might continue to see underinvestment in some parts of the Caribbean. One company with remarkably good timing when it comes to trying to manage quality issues - and avoiding them - is Petro Inspect, which made two significant moves in the Caribbean last year.

In May, the company opened a new subsidiary operation in Trinidad and Tobago officially led by Yahir Rodriguez, its operations director for Panama, Mexico, the Caribbean and a sizable chunk of South America. At the time of the launch, the company suggested that Trinidad and Tobago’s location on the main shipping routes from South America to the Caribbean and US Gulf, as well as its very broad passing vessel profile, made it a strategic one and a potential future bunkering hub in its own right. Before opening the new operation, the company was sending surveyors from either Panama or Vancouver, but with demand increasing - and costs in terms of expense to clients and the extra travel times involved for its surveyors - it had decided to establish a permanent local outfit instead. The company followed this up in July by adding Atif Khan as chief marine surveys coordinator to oversee Petro Inspect’s bunker survey operations in Houston and the US Gulf ports, and the Caribbean, including Freeport and Kingston. Khan is an experienced bunker surveyor previously with VPS Testing & Inspection and as well as handling operation aspects his job also covers training and growing the company’s business. That’s business you’d expect to be on the increase after the events of last summer.

“We want to ensure that players in the bunker supply chain are internationally competitive and that the supply infrastructure can cater to an expanded demand for bunkering.” And there, of course, are two of the key issues Jamaica and other would-be Caribbean bunkering hubs face: World Bunkering SPRING 2019

Trinidad’s position made it a natural choice, according to Petro Inspect ©Teresa Frost

SINGAPORE

One of PIL’s new P Class ships approaches Singapore

STILL TOP, BUT DRAWING BREATH? Volumes stable but ban on discharges from open loop scrubbers grabs headlines

s it has for many years now, Singapore was again able to announce that it had retained its position as the world’s top bunkering port in 2018. This year though the Maritime and Port Authority of Singapore (MPA) couched its statement in rather vague terms saying that annual bunker sales volume was “close to the 50 million-tonne mark for the second year consecutively”. In fact there was a slight dip in sales last year, of 1.6% in 2019 to 49.8 million tonnes. This was a bit surprising given that as recently as December S&P Platts commented: “Over January-October 2018, Singapore’s bunker sales totalled 41.6 million tonnes, edging down around 1% year on year. However, market sources still expect the full-year volume to surpass 50 million tonnes.” Nevertheless industry sentiment would appear to be bullish as suppliers get ready to meet the demand for very low sulphur fuel oil (VLSFO) as the 1 January 2020 0.50% sulphur limit approaches. However the Singapore market has become even competitive with very tight margins putting the 51 current licensed suppliers under huge pressure. One sign of this was the arrest in November of Brightoil’s entire six-barge fleet. Local firm Ocean Bunkering Services (OBS), part of Hin Leong Group,

became largest marine fuel supplier in Singapore in 2018 according to MPA figures, jumping from being eighth in 2017 and 31st in 2016. The company’s rise came as competition intensified and some players left the Singapore market. In second place was PetroChina International (Singapore). It had also ranked number two in 2017. Meanwhile the 2017 market leader Sentek Marine & Trading was third last year.

The MPA’s recent announcement that it would be banning the discharge of process water from open loop scrubbers for vessels visiting Singapore took the industry by surprise. The Exhaust Gas cleaning Systems Association (EGSA) complained bitterly, saying that the move “came without prior notice or discussion with the IMO despite the fact that the Singapore MPA is a signatory to MARPOL Annex VI”.

This year will be a hectic and nerve racking one as suppliers work out exactly when and how to prepare their fleets for changes needed to meet customer demand as shipowners make the switch to compliant fuel.

ECGSA continued in a statement: “The MPA provided neither scientific evidence for its decision nor was the industry invited to consultation. If there had been discussion, the Singapore MPA might have realised the high risks to human health resulting from the high toxicity of low sulphur fuels and more toxic distillates if no exhaust gas cleaning systems are used. The many dumbbell low sulphur fuels (0.50%S fuel oils) are also expected to have less complete combustion as the fuel boiling point distribution and that this will also contribute to higher particulate matter discharge and poorer air quality in Singapore.”

At least a small amount of additional very low sulphur fuel oil (VSLFO), meeting the 0.50% cap, than might have otherwise been expected will now be needed in Singapore, by ships fitted with open loop scrubbers

It also warned that the decision was “likely to have a significant effect on crude carriers operating inert gas plant discharging into Singapore refineries and storage facilities as well as all other vessels visiting Singaporean waters”.

Equatorial Marine Fuel Management Services, which is understood to have about 9% of the market, moved up from fourth to fifth position. Meanwhile other major players, including BP, have seen their market shares decline greatly. Moreover Bomin and Aegean both left the Singapore market last year.

World Bunkering SPRING 2019

Singapore is moving quickly to become an LNG bunker hub, ready for an expected increase in the number of LNG-powered vessels in the world fleet. In October the MPA joined SEA\LNG, the multi-sector industry organisation pushing for the increased use of LNG as a marine fuel and followed the lead of Port of Rotterdam and Yokohama-Kawasaki International Port Corporation (YKIP). MPA launched its LNG Bunkering Pilot Programme (LBPP) in 2017 to test operational protocols and accumulate experience to ensure LNG bunkering operations are conducted safely, efficiently, and reliably. To bring Singapore to the next stage of LNG bunkering, the MPA also awarded a total of S$6 million (US$4.5 million) to two companies to co-fund the building of two LNG bunker vessels.

This demonstrates our commitment to global customers as the industry increasingly adopts cleaner fuel alternatives. Tapping on Keppel’s shipbuilding expertise enables us to have a highly capable vessel that meets our requirements for safety and efficiency. Supported by Shell’s experience, we aim to be a key driver in promoting LNG as marine fuel.” While Singapore has made a high profile commitment LNG, it is also devoting resources to development of methanol as a marine fuel. The country’s Nanyang Technological University is undertaking a project to evaluate methanol as a marine fuel. It consists of two phases, with the first consisting of desktop and benchtesting the Methanol-powered engine employed in the GreenPilot evaluation programme in Gothenburg, Sweden. In the second phase, the engine will be shipped to Singapore for installation onboard a harbour craft vessel for service within a fleet for a six-month sea trial,

followed by an engine ‘teardown’ to test clearances and material compatibility. The costs of the pilot project are estimated at S$200,000 and will cover the installation of the engine, bunkering, training and subsequent sea trials. The data collected will be shared with a number of official observers to help to fill some of the knowledge gaps on Methanol, including its level of fuel efficiency and viability as marine fuel. “For maritime players in Singapore, the project will be a useful demonstration of the benefits of Methanol as a marine fuel, encouraging them to consider it as an alternative fuel once they gain a better understanding,” says Methanol Institute Chief Operating Officer Chris Chatterton. “The GreenPilot project together with others such as the SUMMETH (Sweden) and Methaship (Germany) projects, have shown that Methanol can be easily adopted as a marine fuel at reasonable cost and without the complexity of other low emission alternatives.”

Last year, as part of this programme, FueLNG, a joint venture between Keppel Offshore & Marine (Keppel O&M) and Shell Eastern Petroleum, has placed an order with Keppel Singmarine, a subsidiary of Keppel O&M, to build the first LNG bunkering vessel in South East Asia. The construction of the 7,500 cubic metre LNG bunkering vessel is expected to be completed in the third quarter of this year and should enable FueLNG to be the first in Singapore to provide ship-to-ship LNG bunkering services. FueLNG is to receive a grant of up to S$3 million (US$2.2 million) as part of the MPA LNG Bunkering Pilot Programme (LBPP). Chris Ong, Chairman, FueLNG and CEO, Keppel O&M, said, “This vessel, which will be the first of its kind in South East Asia, will enable FueLNG to be the first in Singapore to provide ship-to-ship LNG bunkering services within the Singapore port. World Bunkering SPRING 2019

Methanol power coming to Singapore soon

SINGAPORE

Looking towards alternative fuels While most in the Singapore bunker sector are focusing on the transition to the new 0.50% sulphur fuel regime there is considerable activity underway developing alternative marine fuels.

CHINA

Operators like Hong Kong’s Jinhui are opting for VLSFO and MGO ©Tommy Chau

CHINA CHANGES TACK ON SCRUBBERS New surprise regulation bans the discharge of scrubber wash water in much of the country’s waters with a full ban on the cards, John Rickards reports

f there’s one thing likely to hurt uptake of a solution, albeit a contentious one, to reducing sulphur emissions from ships, it’s having the rules regarding that solution change suddenly with less than a year to go before 2020 hits, but that’s exactly what China has done as 2019 gets underway. After months of both official and unofficial, off the record assurances that despite rumours to the contrary the government had no intention of instituting a ban on open-loop scrubber systems (or at least on the discharge of scrubber wastewater, which amounts to the same thing), on January 4 this year China’s Maritime Safety Administration did just that. Pursuant to its “notice on supervision and management of pollutant discharge control area”, it is no longer permitted to discharge scrubber wash water in the country’s ECAs, inland and offshore. Those updated ECAs came into full force at the turn of the year and cover the country’s inland waterway network, the Pearl River Delta, Yangtze River Delta and Bohai Bay. However, all may not be quite as the notice suggests - not just yet, anyway. Shortly after the announcement was made public, BIMCO’s Wei Zhuang said that sources familiar with the incoming rules had told him that the ban didn’t yet cover the full ECA range

(which would account for many of China’s biggest ports and busiest waters). According to Wei, in a statement on BIMCO’s website, “the banned areas for discharging wastewater from scrubbers remain within inland ECAs, port waters under coastal DECA and the Bohai Bay waters only. A full ban on open-loop scrubbers could however be adopted soon, sources familiar with the matter also told BIMCO.” World Bunkering spoke to Wei to see if there had been any further developments at the time of writing. He said: “I don’t think it is China’s original plan to ban all open-loop scrubbers within China’s DECAs, however, it is the trend. To some extent, I presume the Chinese regulator was misled by inaccurate and less scientific information prior to their decision. What we do know is, China will further issue a rule to expand their current wash water banning area from the port waters to the coastal line.” As closed-loop systems require reception facilities, World Bunkering also asked if - given these were the only systems allowed - such facilities were available to operators, or whether the only option was to switch fuels instead. The picture isn’t especially encouraging on either count as yet.

“Unfortunately,” Wei said, “we are unclear about the status quo regarding the receiving facility in China; precisely speaking, it is dark. Many owners/operators advise us that they choose LSFO/MGO when their ships approach port area. The annoying thing is sometimes they are struggling to find compliant LSFO in this region.” Perhaps the move is no surprise, even without the constant rumours over the summer that Chinese officials were considering it. China isn’t the first country to block discharges of scrubber wash water - Singapore, for instance, has already announced a similar ban to come in from 2020 - and pressure is clearly mounting over scrubber discharges, despite manufacturer claims that they cause no damage, particularly regarding discharge in coastal waters. There surely wouldn’t be many in the industry who’d be surprised to see coastal discharge bans becoming the norm rather than the exception within a few years. China is reported to be considering extending ECA rules to cover the entire Chinese coast within the coming year. While this perhaps makes little surface difference given the 2020 limit, the fact that Chinese regulations on things like scrubber discharges are tied to the finer details of the country’s ECA rules gives pause for thought. World Bunkering SPRING 2019

CHINA

Nonetheless, what was perhaps a surprise is the speed of the switch, coming only a couple of months after official denials that such a ban was under consideration. In fairness, China has some form for that; the country gave just one month’s notice last year that 0.5% sulphur ECA restrictions were going to come in within Shanghai and the Yangtze River Delta from the start of October last year instead of January 1. When this happened, numerous organisations were at pains to point out that scrubbers were an acceptable way of meeting the cap. There will inevitably be some operators trading in Chinese waters fitting, or already fitted with, open-loop scrubbers who are now faced with either switching to lowsulphur fuel or an expensive conversion or refitting of their already expensive exhaust cleaning system to meet the new rules. It’s also particularly ironic that China plays such a major role in the installation of scrubbers in the first place, with openloop scrubbers currently the most popular systems as they take up less space and are generally easier to retrofit (in particular) without the need for storage tanks. It’s not impossible that coming years could see ships leaving Chinese yards equipped with mitigation systems they can’t actually use until they’re more than 12nm from shore. In December, Yara Marine Technologies, one of the top three scrubber manufacturers worldwide, opened a new office catering to both newbuilds and ship retrofits in Shanghai. The company offers both open- and closed-loop systems as well as hybrids capable of operating in either mode. Yara Marine told World Bunkering that the company wasn’t seeing any “significant” effect yet (albeit only two weeks after the ban came in), “but there are some customers who are revising their inquiry from open loop to hybrid systems. This is then a reaction to not only the Chinese ban but also the Singapore ban. So it is the overall regulatory regime globally that has an impact, not China in isolation.” “Scrubber installation will take a bit more time on hybrid systems than on open

World Bunkering SPRING 2019

loop. However, as many customers plan scrubber installation (and ballast water treatment system) to coincide with ordinary 5-year class [survey], the effect is again not very significant on overall docking time if taking a hybrid in lieu of an open-loop system.” Also jumping heavily into the Chinese scrubber market are Mitsubishi Shipbuilding and Mitsubishi Hitachi Power Systems, who together signed a collaboration deal with COSCO Shipbuilding Heavy Industry (Dalian) late last summer. The deal is specifically to build, market and, of course, install Mitsubishi’s rectangular open-loop scrubber system to retrofit and newbuild customers of CHI Dalian. The Japanese company makes closed-loop and hybrid scrubbers as well, but those systems are not part of the arrangement. In perhaps a timely decision, Hong Kong-based bulker operator Jinhui Shipping and Transportation announced as part of the presentation of its half-yearly financial results at the end of August that it would not be adopting scrubbers. “We are currently refraining from the installation of scrubbers given the long term technical and commercial viability of scrubbers is yet to be proven, not to mention the investment cost of scrubber has been on the decline where we believe benefit is highly likely to arise with further patience,” the company said. “From the environmental perspective, we believe the use of low sulphur fuel is the most efficient way to tackle this issue.

We expect the availability of such product will become abundant at reasonable costs with time, given the likelihood of an increasing demand.” Availability of suitable fuel, particularly as production continues to ramp up ahead of 2020, remains the weakness (alongside cost) of very low sulphur fuel oil (VLSFO) especially in China, where refinery production and sales spread have lagged behind other parts of the world. Chinese oil and gas giant Sinopec announced its own plans to launch its own low-sulphur fuels in the autumn, telling Reuters that all of its fuel supply would be IMO 2020 compliant by the time the cap rolls around. Where it’s going to be sold is a matter of debate, with some reports suggesting it might be primarily targeted at the domestic market and others that it will be traded in Singapore and other major international hubs on the main Chinese East-West trades. The country also hasn’t been as quick as others to move heavily into LNG bunkering - or as heavily as the current state of technology and existing gas infrastructure allow, anyway - but the government has started, just maybe, taking the first steps towards establishing proper LNG bunkering at its ports. In midsummer, the Chinese Ministry of Transport issued a call to companies involved on all sides of the shipping and marine fuels industries inviting them to talk about their plans to adopt LNG bunkers. While nothing public has come of that approach as yet, it will hopefully provide a platform for the authorities to bolster China’s LNG offerings in future. And prevent installations on vessels serving Chinese ports becoming unusable, expensive white elephants.

Scrubber wash water discharge is now banned in the Yangtze Delta, including Shanghai. ©Teresa Frost

RUSSIA

BUNKER ASSOCIATION JOINS REGULATION UPDATING COMMITTEE Olga Bogacheva reports on regulatory and multiple LNG developments in her regular Russian news roundup

he Russian Association of Marine and River Bunker Suppliers has joined the Technical Committee for Standardization in Maritime Transport (Morflot). The Committee develops international, interstate and national standards, draft amendments to existing standards, codes of rules and guidelines. It also prepares proposals for the abolition, revision or replacement of industry regulations. Vladimir Sergeev, Chairman of the Association Council, commented: “There is a huge array of shipping and port regulations. Some of them have nothing to do with bunker activities, but our work directly depends on a lot of them. Sometimes a small paragraph in an extensive document, which was not noticed during preliminary discussions by our professional community, becomes a factor that carries serious risks and generates high costs in the industry. Since the establishment of our Association, we have tried to be fully aware of everything connected with preparation of new regulations to prevent the inclusion of incorrect or unclear wording in the legislation.

To achieve this, the Association works with various government agencies and other bodies associated with the development of regulatory and other documentation influencing the maritime activities. It takes time and effort from our experts, but it certainly brings benefits for our members in the long run.” Association opposes 1.50% sulphur cap The Council of the Russian Association of Marine and River Bunker Suppliers says it sees abolishing what it regards as an “excessive unjustified ban of marine fuels with sulphur content above 1.5% in the Russian Federation”. Opposing this regulation is one of several objectives in a campaign against burdensome bureaucracy. The Association says it will “make every effort to promote its legislative initiatives aimed at eliminating excessive unreasonable administrative barriers hindering the activities of bunkering companies”. It aims to address numerous problems associated with readiness for dealing with spills of marine fuel by certified specialized rescue units.

The bunker industry is challenging “the excessive requirements for the availability of oil spill response plans for bunkering companies using specialised tankers” as well as other environmental regulation it sees as being unnecessary. The Association says that it wants “common sense” and a realistic risk analysis to be applied to the procedures and criteria for certification of oil spill response units. It opposes the dominant position of the state-owned oil spill responder. Russian LNG bunkering standard registered Gazpromneft Marine Bunker, the operator of the Gazprom Neft bunker business, has developed and registered a Russian standard for LNG bunkering with the National Information Fund of standards. The new document is based on similar international standards for bunkering LNG-powered vessels valid since 2017. All Russian companies engaged in LNG bunkering or planning to include LNG-powered vessels in their fleet should now comply with this standard.

World Bunkering SPRING 2019

The development of the Russian LNG bunkering infrastructure is still at the initial phase and introduction of a new standard in Russia is actually seen as being the starting point of this emerging new segment of the ship refuelling market. Government predicts significant LNG bunkering growth The Ministry of Energy says Russia has an excess of gas which could be marketed if more attractive bunkering conditions emerge. LNG bunker supplies could grow to 4 million tonnes by 2035, but it will be necessary to allocate subsidies and simplify the administration procedures, said Pavel Sorokin, the deputy minister of energy. Current predictions are that Russia’s LNG bunkering market will reach 1.5-2 million tonnes in 15-17 years. At the same time, LNG demand from the world shipping industry is growing and if business conditions improve in the domestic ports, growth could be twice as strong. New HFO tank at St. Petersburg Petersburg Oil Terminal (POT) is building another 40,000 m3 storage reservoir, following three others that have been completed recently. The tank will be equipped with a doublewall to minimize environmental risks and is designed for dirty products. “This construction is critically important for the POT. Its commissioning will increase the capacity of the terminal’s tank farm by more than 10%,” general director Mikhail Skigin was quoted as saying. St. Petersburg oil terminal handles and stores petroleum products delivered by rail, river and road for onward sea World Bunkering SPRING 2019

transport. The tank farm consists of 37 units with total capacity of 397,000 cubic metres with over half of that capacity dedicated to dirty products. NOVATEK and Fluxys build German LNG terminal A joint venture between Russian natural gas producer NOVATEK and Belgian gas distributor Fluxys has signed an agreement with the port administration of Rostock in Germany to lease land the construction of a medium-tonnage LNG terminal. The deal has been approved by the German authorities. The JV plans to design, build, finance, own and operate an LNG transhipment terminal with annual capacity of about 300,000 tonnes. The terminal is intended to accept LNGcarriers, delivering the product from the LNG plant currently under construction in the port of Vysotsk. It will also be possible to supply LNG to vessels and transfer it to bunker barges. Leonid Mikhelson, the head of NOVATEK, stressed that such medium and low-tonnage projects are a part of the company’s LNG strategy, because it is a way to create effective marketing schemes to sell products in different markets. Cooperation between the companies began in 2015, when LNG-Yamal Trade, a Yamal LNG subsidiary, and Fluxys LNG concluded an agreement for LNG transhipment services at the Zeebrugge terminal in Belgium. However, the current project in the port of Rostock started by the signing a memorandum of understanding in June 2017, which announced the parties’ intention to develop strategic cooperation in small scale LNG projects in Europe, in the joint development of LNG markets in Europe and Latin America, and also in improvement of transport logistics and other areas of LNG use. NOVATEK PJSC is one of the largest independent natural gas producers in Russia.

Fluxys, a Belgian gas and LNG supplier, is engaged in transportation and storage of gas and LNG. Fluxys is also a provider of infrastructure services in large and small scale LNG projects. Fluxys owns a network of gas pipelines with annual capacity of 82 billion cubic meters in Northern Europe. LNG bunkering port proposed for Northern Sea route The Governor of the Nenets Autonomous District has proposed building a bunkering base for icebreakers on the coast of his region. The proposed location is well placed for supporting LNG-fuelled icebreakers operating on the Northern Sea Route. It is widely believed that the Arctic icebreaker fleet will be transferred to LNG. Given the development plans for the Northern shipping industry, the creation of bunkering infrastructure will become an absolute necessity. Currently there are almost no LNG refuelling facilities along the route from Murmansk to Vladivostok, meaning vessels are forced to take on LNG bunkers outside the region. There are gas fields located near the coast in the Nenets Autonomous district which lend themselves to small-scale LNG production. The development of the NSR is primarily associated with the export of mineral raw materials and directly depends on the implementation of investment projects for the extraction of mineral resources. Currently, there are fifteen such projects in the Russian Arctic. Eleven of them are associated with the development of oil and gas, four with the extraction of ore and coal. Eight ice-breakers constantly work along the NSR. At present four of them are nuclear-powered. In the future, 13 powerful icebreakers will be required to ensure year-round navigation in the Arctic. It is planned that four LNG-powered ships will work in the European sector, in the waters of the Ob Bay and the Kara Sea. These vessels are expected to be built by 2022-2025.

PAGE TITLE RUSSIA

The standard establishes the basic requirements for LNG bunkering tankers and client’s LNG-powered vessels. In particular it regulates the technological processes and procedures of LNG bunkering, describes the requirements for the designs of fuel transporting systems, defines recommendations for personnel training, reporting and operational logs.

RUSSIA LNG ferry proposed for Ust-LugaBaltiysk route The construction of the LNG-fuelled railway ferry for the Ust-Luga - Baltiysk route has been included in the Federal programme for the development of the Kaliningrad region to 2020. The document was approved by a special decree of the Government of the Russian Federation. The design concept is for a 200-metre Arctic 4 ice category vessel with a closed cargo deck for trucks and an open upper deck for trailers and cars. Bunkering operations would be performed simultaneously from four road trains, from a bunker vessel or from a coastal LNG bunker base. Novorossiysk oil terminal modernisation to accommodate light oil products The General Office of State Expertise has approved the upgrading of Novorossiysk Fuel Oil Terminal (NFOT). NFOT, a major company in the Novorossiysk transport hub, is within Novorossiysk Commercial Sea Port, the largest in Russia. The project includes reconstruction of the terminal with the transfer of fuel oil storage reservoirs to tanks for pumping and storage of light oil products. The work will be carried out in stages and include new buildings, pumping stations and pipelines. Several tanks will be reequipped for light oil storage, a vapour recovery unit will be modernized, and new pumps for transportation of light fuel will be installed at the existing pump station. Also the existing oil pumping discharge will be disconnected from the main drainage system; the pipelines for dark petroleum products will be re-equipped for transportation of light fuel.

Loading of tankers is carried out at two contra-lateral specialized berths allowing receiving and handling tankers with a displacement of up to 60,000 tons and 200m long with a draft of up to 12.7m. The pipeline system from the terminal to the berth provides for simultaneous loading of two tankers with different cargoes Annual throughput of Russian ports passes 1 billion tonne mark There are now 67 ports within the Russian Federation, and in 2018, their total throughput exceeded 1 billion tons. According to Russian Ministry of Transport forecast, by 2024 this figure should have grown by another 350 million tons per year. Delo Services receives fifth tug from Damen Shipyards A fifth ASD Tug 2310 has started operations as part of the Delo Services (SC Delo) fleet. The company specialises in bunkering services, agency and towing operations at the DeloPorts berths in Novorossiysk. She is the fifth in a series of sister ships built for SC Delo by Netherlands-based Damen Shipyards delivered in 2017 and 2018. According to an SC Delo spokesperson, the purchase of a new tug is directly related to the commissioning of the deepwater berth in the south-eastern port area in the first half of 2019. St. Petersburg looks for ferry line investor According to the Kommersant newspaper, the St. Petersburg city authorities are negotiating with Greek investors about establishing a joint venture to launch a Baltic Sea passenger shipping company.

It is expected that the city will receive a majority stake in the JV, and the Greek partners will provide an ice-class vessel for winter navigation, which will link St. Petersburg with Helsinki, Stockholm and Tallinn. She will also be able to call to Kaliningrad and Riga. Sea Facade, St. Petersburgâ&#x20AC;&#x2122;s municipally owned passenger terminal, has signed a cooperation agreement with the Greek companies Anek Lines, a ferry operator, construction company Litinus Group and consultants Prime Bulk on the establishment of a passenger shipping company in St. Petersburg. The Greek parties are ready to provide one ferry of ice class for 2,500 passengers to start winter cruises in the Baltic Sea. The operator will also be able to run ro-ro services. It is expected that the ferry will fly the Russian flag, with St. Petersburg as port of registry. This will allow the company to enjoy exemptions on taxes and charges. Currently Moby SPL runs the ferry Princess Anastasia from St. Petersburg to Helsinki, Stockholm and Tallinn. Gazpromneft Shipping to lease LNG bunker tanker Gazpromneft Shipping, a subsidiary of the largest Russian bunkering company Gazpromneft Marine Bunker, has signed a leasing agreement with Sberbank Leasing for an LNG bunker tanker intended for operations at St. Petersburg. The 5,800 cubic metre capacity ice class 4 vessels will be classed by the Russian Maritime Register of Shipping and is due for delivery in the fourth quarter of 2020. She will operate in Russiaâ&#x20AC;&#x2122;s Baltic Sea ports.

NFOT provides services for the reception of petroleum products from railway tanks, accumulation in storage reservoirs and their further transfer to sea vessels. The capacity of the tank farm of the terminal provides simultaneous accumulation and storage of various oil products in the amount of up to 119,000 cubic metres.

World Bunkering SPRING 2019

FUJCON

DRIVING TRANSFORMATION Key bunker conference to address challenges of new sulphur regulations

ore than 40 speakers are to address the 10th International Fujairah Bunkering & Fuel Oil Forum (FUJCON), to be held from 27-29 March 2017 in Fujairah, UAE. Through presentations and round table discussions, leading oil and bunker producers, traders, oil majors, terminal operators, refiners, banks, shipowners & classification societies will be sharing their views, analysis and insights on the global bunker and fuel oil market developments, and trends and challenges of the industry. Under the broad theme “Driving Transformation Across the Bunkering Supply Chain” key decision makers, thought leaders and marine experts will be discussing the impact of the new sulphur regulations coming in force in 2020, and how to prepare.

Also to be covered at this major biennial event are trading and risk management strategies, the challenges of marine fuel quality, legal perspectives of the bunker industry, new environmental regulations and the growth of LNG bunkering. Speakers include Fereidun Fesharaki, Chairman, FGE; Christopher Bake, Executive Committee and Head of Origination, Vitol Group, UK; Moradi Azad, VP for International Affairs, Petroleum Products Marketing & Operations, National Iranian Oil Company, Iran; Mousa Morad, General Manager, Port of Fujairah, UAE; Harihar Prasad, MD, McQuilling Partners Inc & Board Member, Institute of Chartered Shipbrokers Middle East, UAE; Yusr Sultan, MD-Terminals, Emirates National Oil Company (ENOC), UAE; Mr Cem Saral, Group CEO,

Cockett Marine Oil DMCC, UAE, Peter Hall, Chief Executive, International Bunker Industry Association, UK; and Mr Grant Hunter, Chief Officer, Legal & Contractual Affairs, BIMCO, Denmark. FUJCON is held under the auspices of the Government of Fujairah and the Port of Fujairah, with the patronage of His Highness Sheikh Hamad Bin Mohammed Al Sharqi, Ruler of Fujairah & Member of the UAE Supreme Council. A government of Fujairah statement noted: “The highly successful Fujairah Bunkering Week will once again underscore Fujairah’s global credentials as one of the top three bunkering destinations and crude oil storage hubs.

World Bunkering SPRING 2019

FUJCON

strategic location with strategic facilities, Fujairah offers state-of-the-art facilities with new oil tanker terminals/ berth pipelines, a new LNG terminal, the Dolphin gas pipeline and offshore SPMs, enhancing its efficiency and logistical support of the global crude oil and oil products industry. The hosting of FUJCON affirms the commitment of the Government of Fujairah & the Port of Fujairah to provide a fitting platform for an established event on the world bunkering communityâ&#x20AC;&#x2122;s annual calendar.â&#x20AC;?

Four pre-conference workshops from 25-27 March will offer coverage and indepth analysis on Ship Safety & Pollution, Bunker Operations, Bunker Fuel Supply & Economics and Bunker Fuel Blending, covering the impact of new maritime regulations, while providing great learning opportunities with plenty of case studies, guest presentations and a specially arranged laboratory visit as part of the curriculum.

An offshore site visit arranged for the afternoon of 29 March 2017 and hosted by the Port of Fujairah, will provide attendees an opportunity to visit the Port of Fujairah, its offshore Anchorage & installations, including the Fujairah Oil Tank Terminals and the recently commissioned VLCC berth.

FUJCON 2017 takes place during the Fujairah Bunkering Week, gathering some 400 participants from 40 countries, from the bunkering, oil storage and allied industries. The week offers five industry events, 12 social functions, two site visits and over 30 hours of networking opportunities.

World Bunkering SPRING 2019

WESTERN MEDITERRANEAN

Pressure is on to establish a Mediterranean ECA ©Jason Paris

MEDITERRANEAN ECA ON THE CARDS Moves are afoot for a Mediterranean Emissions Control Area while LNG slowly gains ground, as John Rickards reports

s the Mediterranean’s bunker infrastructure gears up for IMO 2020 and all the changes that it involves - albeit from a relatively strong baseline position compared to some parts of the world - it is unlikely that its suppliers and refiners would greet the prospect of further restrictions a few years further along with unadulterated joy. However that prospect has become more likely with the calls last spring and summer for a Mediterranean sulphur ECA finally bearing if not actual fruit then certainly the earliest buds. Of course, the imposition of an ECA across the Med has been mooted for years and there can’t be too many in the business who’d be surprised to see one put in place to mirror that in northern Europe (and, it’s easy to imagine, a third to follow through the EU, covering the Atlantic coasts and Ireland, to fill in the final gap on the European map). It’s only been in the past year or so that the move has gathered pace, though. France raised the idea formally at a European Council meeting in 2017. In spring last year, environmental groups Control Nature and Biodiversity Conservation Union (NABU) and Ecologists in Action - German and Spanish respectively - released the results of air quality tests from Gibraltar and Barcelona that showed particulate pollution levels many times higher than those of shoreside urban areas and called on the Spanish government to back the notion of a Mediterranean ECA.

In a joint statement, the two groups said: “Ecologists in Action are urging the Spanish government to join up with France, which has led the drive to create Sulphur Emissions Control Areas, to radically limit the entrance of highly polluting shipping in the Mediterranean Sea. To this end, Ecologists have invited, not just those responsible for air quality at Ministry level, but also leading air quality technicians from Andalusia, Murcia, Valencia, the Balearic Islands and Catalonia, to participate in the International Mediterranean Shipping Conference - Reducing air pollution from ships in the Mediterranean Sea.” The Gibraltarian government said it supported the group’s concerns and highlighted the territory’s move towards LNG bunkering as a way of mitigating emissions, but stopped short of passing any comment on the establishment of a regional ECA. NABU followed this up in July and September by releasing the results of similar tests in Malta and Greece that again showed the sharply increased particulate emissions from ferries and cruise vessels on port calls, though. The Maltese results were mirrored by University of Malta professor Raymond Ellul, who echoed the calls and compared shipping emission levels in the Times of Malta as “like having a power station sailing just past the island every few minutes”.

By then, though, the IMO had made its move: in July, it announced it was launching a technical and feasibility study into a Mediterranean ECA. “A new study to assess the benefits, costs and feasibility of implementing an emission control area (ECA) to limit sulphur oxides (SOx) from ships in the Mediterranean Sea will consider, among other things, the potential health benefits for people living around the Mediterranean as well as cost implications for ship owners,” the IMO said in a somewhat guarded statement. “An international consortium led by Energy & Environmental Research Associates (EERA) signed (in June) the contract with REMPEC to carry out the study, to be finalized by spring 2019.” So not long after World Bunkering goes to press, we might all be a little closer to knowing whether - or perhaps, as it seems almost inevitable, when - the Med might see its own 0.1% cap. Away from the gripping world of future environmental regulation, one of Italy’s biggest bunker suppliers has undergone a complete rebrand. As of December, Maxcom Bunker has become Bunker Energy SpA and moved directly under the umbrella of the company’s owner FinGo & Fuels rather than acting as a part of the Maxcom fuel collective. World Bunkering SPRING 2019

World Bunkering spoke to Bunker Energy’s Tommaso Panzeri to get the details. “Bunker Energy is fully owned by FinGo & Fuels, the holding company of the Jacorossi family. As such the company will operate independently from Maxcom Petroli even though they are both under the same umbrella,” he said, confirming the separation from the rest of the Maxcom brand.

“Bunker Energy will take over all the commercial activities that were previously [undertaken by] Maxcom Bunker. Title of all the existing the contracts/frame agreements will be transferred to Bunker Energy and honoured by the new company. Mrs Alessandra Boccone has been appointed CEO of Bunker Energy; there will be no other changes of staff in Genova.” So plus ça change, plus c’est la même chose for the company’s client base, but Panzeri did hint that the rebranded company might see some new things down the line: “Undoubtedly there will be some teething problems and the need some fine tuning; there are certainly new challenges ahead but definitely many new possibilities, with the 2020 deadline as one of the top priorities to tackle.”

Indeed, with one eye clearly on the future, Maxcom (as it was then) was one of 17 companies who expressed a formal interest in establishing small-scale LNG bunkering at Naples following the completion of a feasibility study by the port authority (AdSP) and the University of Campania at the turn of the year. Speaking at the time, AdSP president Pietro Spirito, said he was “greatly satisfied with the market’s attention drawn towards the proposal and the presented pre-feasibility study… In the next few days we will evaluate the received expressions of interest and define the course on the basis of which we will activate the procedures coherent with the submitted documentation.”

Naples is looking hard at setting up LNG bunkering ©Pierluigi Peperoni

World Bunkering SPRING 2019

WESTERN MEDITERRANEAN

axcom unfortunately hit national headlines in late 2017 when its now-ex CEO Marco Porta was arrested by the Italian authorities and charged individually with involvement in a fuel smuggling ring bringing stolen fuel from Libya to sell on the Italian and Maltese markets. While that court case is still rumbling on at the time of writing, the company’s overall owners have taken the opportunity to clean the slate somewhat.

Five of the planned 11 would be in Sardinia, three of them in Oristano, one in Porto Torres and one in Cagliari, with the others in Genoa, Livorno, Naples, Gela, Porto Marghera and Ravenna. However, authorisations have been slow in coming and many of the terminals are in the planning or permitting stage,

with two of the Oristano terminals and the one in Ravenna being the first to clear the various regulatory hurdles and they should begin coming online this year, Ravenna (larger than the two Oristano facilities) in 2020.Gela, site of one of the terminals, may also serve as a point of supply to Delimara in Malta. Last year, Maltese consultants Tractabel launched a study of the possibility of LNG bunkering there on the back of a new gas pipeline between there and Gela intended to supply gas for much cleaner shoreside power generation than the island’s much-loathed existing plants. Local press quoted Daniel Azzopardi, CEO of the Energy and Water Agency, as saying: “If there is a demand for bunkering, then natural gas imported through the pipeline could be liquefied and used to bunker ships, but of course not at the cost of power generation.”

Spain, though, still leads the way in Mediterranean LNG bunkering. Algeciras and Huelva both have multi-fuel bunker tankers providing LNG on station and truck deliveries are already available elsewhere. Ferry company Baleària signed the first “permanent LNG bunkering contract”, an exclusive ten-year supply deal with Gas Natural Fenosa, at the start of the year. Baleària’s LNGpowered ferries will be able to resupply in Barcelona initially, then Valencia and Algeciras, as its ferries are converted to dual-fuel. In November last year, the company began retrofitting the first of six ships; the first should be completed by the time World Bunkering goes to print, the last is expected by the end of 2021. At €12m, each retrofit is hardly cheap even with EU funding aid, but if a full Mediterranean ECA becomes a reality, it could be money well spent.

iStock

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WESTERN MEDITERRANEAN

f any final decision on potential suppliers has been made, the authority hasn’t announced it yet. However, the Italian government is keen on establishing LNG bunkering at its ports within the next few years, particularly with the growth in LNG-powered cruise ships. Current plans are to have 11 small-scale LNG reception terminals offering bunkering and road tanker loading, with half of them also serving as regasification terminals too.

COMPANY NEWS

GREEK PORTS & SPIRITWORLD GROUP AT THE CROSSROADS OF TRADE Piraeus Port has been the fastest growing port in Europe and is expected to be the largest in the Mediterranean after 2019

n 2009 Greece COSCO leased docks II and III from PPA for a 35-year-period. For its presence at the port COSCO is paying 100 million euros every year with a total investment of 1,5 billion euros. Terminal I has a capacity of nearly 1 million TEUs and Terminal II capacity is 3 million TEUs . In 2013, PCT finished the construction of Terminal III with a capacity of 2.7 million TEUs. The total port capacity is 6.7 m TEUs with over 250 container visits of container vessels per month. The Port of Thessaloniki is also to be transformed into a complex and modern port, benefiting Northern Greece, as well as expanding and connecting trade as the entrance zgate for Balkan and South East Europe. Major changes on the back of its privatization in December 2017, when the Government of Greece sold a 67 percent share in the port,

to the join venture between the France CMA CCM & Investments Funds. The share was valued at EUR 231.9 million, however the total value of the deal has been estimated at EUR 1.1 billion, following a seven year investment plan with a prospect of total port visits including the conventional terminal to be over 120 Vessels per month.

• Barge Owner and Operator • Bunkering and Lubs Trader • Marine Fuel Trader with Low & Ultra LS product as well as HFO (annual volume traded 450 k mt)

This rapid expansion of Marine operations in the port of Greece over the last few years, found the SPIRIRWORLD GROUP ideally positioned to satisfy the ever more complex customer requirements both in the MED region as well as in connected ports and relevant trade routes.

Having currently in Piraeus under our ownership a modern 6.500 DWT Barge of 2011 and being the only Vessel equipped with MFM in cooperation with our charterers, attract and serve the majority of deep sea Liner carriers which are calling to Piraeus port.

Since 2016 in strategic cooperation with a dedicated physical supplier in Greece we are acting apart fm our other activities in shipping, as:

Giving a one stop shop philosophy of tailor made solutions in the Marine and Trading sector backed up by our expert staff.

Having in our immediate plans the addition of similarly equipped barges in Greece as well as to other strategic areas of Med and Asia , we are ready to welcome the new venture of 2020, giving an A Class service to our clients.

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Provide diversified, yet Integrated & Efficient Business Solutions tailored to the client business needs by leveraging a well developed and integrated network of geographic markets and traders. Established in 2004 has advanced into one of the recognized providers in Shipping & Management- Cargo Forwarding & Transportâ&#x20AC;&#x201C; Store & Provision Supplies - Marine Fuel Bunkering/Barging and Trading, in the Global industry. SPIRIWORLD is a Well-Established and Certified company with Head Office of Europe in Piraeus, Greece and of Asia in Hong Kong.

Quality

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Our Personnel is highly qualified with many years of experience both at sea and ashore. Dedicated and Professional staff, offers around the clock, clear, creative and rapid response to any client request.

our simple but creative offering, the highly skilled and professional personnel, will establish SPIRITWORLD GROUP as the preferred Business Partner for any Local â&#x20AC;&#x201C; Global Client.

Our Vision: To become the preferred supplier in Ship Owning, Ship Management , Forwarding Services , Bunkering Supplying and Trading, in the Global Industry. Our Mission: We are committed to provide tailored made and flexible solutions to our clients, based on Efficiency, Reliability and Sustainability. Our excellent service, the ability to provide in-depth expert knowledge,

Mike K. Spiridakos C.E.O Of SpiritWorld Group

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Accreditations / Security

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SPIRITWORLD GROUP SPIRITWORLD is a visionary group of companies with relentless drive for progress, adapting to the ever changing market requirement offering tailor-made and complete solutions for our clients and partners.

COMPANY NEWS

BUNKERING AT THE DIGITAL ERA As the world is changing and technology evolves rapidly more and more shipping companies seek to reevaluate many of the ways in which they have traditionally conducted business

ince the existing methodologies are no longer sufficient to address the complexities of today’s volatile business environment, new strategies are adopted optimizing operation and mitigating cost. Coral Marine is a company that always challenges the status quo and promotes innovation. Believing that digitalization of the ship’s operation is a major step towards operational excellence we, in Coral Marine, have digitalized all the order flow of the bunkering process from the fuel order to the receipt of invoice by our customer. It all starts when the bunker purchaser of the shipping company places a marine fuels order through the interactive web portal Coralmarine.gr. As a next step there is an option to upload in this portal all the vessel’s official documents that are required for the customs clearance and fill in the relative fields managing the customs procedure fast and easy. By using the additional feature of permission to retain these documents for use at each delivery, the portal will build a tracking record for important expiration dates regarding the vessel’s operation (inspections, certificates, etc.) with option to send useful reminders before each renewal.

But Coralmarine.gr does not stop there. It is a system integrated with our ERP system so the bunker purchaser is able to monitor the status of their ongoing order and also retrieve useful information regarding their past orders. At any time they can get access to information regarding the company’s credit exposure, balance statements, invoices, credit notes, account information, pending payments and order history. All this data are available in friendly formats with multiple options and can be extracted in tables and charts in different time frames with option to be downloaded as Microsoft office files for further analysis and presentation.

But let’s check what happens when the vessel has arrived and barge approaches for fuel delivery. It is time for coralmarine.gr to redirect the bunker purchaser to e – vessel, our web based platform where customers can monitor in real time the bunker deliveries to their vessels. E-Vessel is a revolutionary system which retrieves data from different sources on the delivery barge and displays them in the monitor of the customer’s Desktop /Laptop / Smartphone. A unique personal code is generated for each delivery and is sent automatically to the email assigned by the customer before the delivery commences.

World Bunkering SPRING 2019

-vessel is developed on the basis of transparency and remote availability of the necessary information for the delivery process. Therefore the platform receives data from: • Mass Flow Measurement System: Delivery rate, elapsed time, temperature, pressure, start/stop time • Automatic gauging transmitters (ATG): Tank level measurement, Barge tanks utilization • Motor Valves: On-Off status, status changes • CCTV: Cameras On board the barge covering the areas where the operation takes place By uploading all the information retrieved by the above mentioned sources the bunker purchaser or the operator are able to monitor in real time the whole process of the delivery and estimate the vessel’s stay for bunkers, the flow rates as well as view the cameras for PPE and HSSE compliance. By the end of the delivery the BDN is issued based on the figures retrieved by the MFM and then the invoice follows in due time.

All vehicles are equipped with GPS and electronic sealing which ensure the integrity and transparency of delivery. Tank Lorry manholes, bottom valves and API valves are equipped with electronic seals to record any operation and trigger alarms whenever needed The e-sealing system ensures; 33Cargo control in terms of quantity and quality, reducing customer disputes. 33Mitigation of HSSE exposure; no need to access the top of the tanker in order to verify existence of fuel. 33Reduced atmospheric VOC emissions due to minimum opening of manholes. To sum up, what Coral Marine has developed is the digital transformation in bunkering, which offers a straight path to the optimization of the operation and sophisticated shipping competitors have already understood it. Our view is that going digital isn’t just a nice-to-have philosophy: it’s the very key to any future development and serves as the launch point for transformational turnaround.

COMPANY NEWS

For questions and more information

please visit our website www.coralenergy.gr and www.coralmarine.gr

Tassos Kyrkos Sales Manager Tassos.Kyrkos@ceg.gr

Apart from the ease of the purchaser the e-vessel is a very important tool for Coral marine as well since it allows reconciliation of all data that refer to the delivered quantity of each supply. The barge’s MFMS and autogauging systems are integrated with the relative systems that are installed in our depot, all being components of a digitally integrated inflow-outflow system. Data are captured continuously during operation and are reconciled against not only the barge stocks retrieved from autogauging systems but also against the quantities loaded by the depot, allowing us to have total control on the quantity that is delivered to the vessels. But what if the purchaser orders delivery by truck? What level of quality and quantity assurance can be achieved by the use of digital equipment? The fleet of trucks that deliver fuel for Coral Marine consists of modern vehicles either owned or subcontracted that are dedicated to marine deliveries.

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TRADERS

GOODBYE TO SMALLER TRADERS? Traders will continue to be a crucial part of the global bunkering scene and the next few years will be good ones for the big traders, Adrian Tolson tells World Bunkering

here have been various opinions put forward recently on what the future holds for bunker traders, with some predicting a bleak future for this part of the marine fuel market. World Bunkering asked industry veteran Adrian Tolson, now senior partner at consultancy 20|20 Marine Energy, for his view. He told us: “I guess my thoughts on traders are somewhat based on how big they are and how successful they have been at going through the rationalization that was necessary after the OW collapse and the subsequent loss in volumes experienced by this sector. I think it’s fair to say that the big/bigger traders all had an OK or a good 2018 and some of this is obviously due to volatile prices but also some is due to the rationalization work done in previous years. These bigger traders continue to get financial support from banks and continue to play one of key roles as a credit provider to shipping companies. “It’s the smaller traders that seem to be in a more precarious position. These companies are finding it harder to get financial support from the suppliers and from banks and this will get even harder as prices likely rise with 2020. Also these companies often live one customer bankruptcy (and these continue to happen) away from a problem that can do inordinate damage to their P&L. “I think traders (and for that matter some brokers) have a key role to play with 2020. It’s clear that the post 2020 bunker supply market remains confusing and fairly opaque. While ship owners have started to indicate what fuels they want to buy and where, the supply community is still ill prepared or perhaps playing their cards close to their chest. There is some unwillingness to commit to both supply volumes and prices. This provides a brilliant role for the trader to step in as an intermediary and bring the suppliers and buyers together,

and because it’s all very confusing (price and availability) this should allow for the traders to operate at good margins. “All in all I think I would say that things are good for traders if they are big and ready to do the work on 2020.” So, we asked, are traders going to be squeezed out? The reply was: “I think if they are small, yes, as was made clear above. The other supply trends we see from 2020 are major oil companies, integrated oil companies and commodity traders starting to get more active in physical supply. Some of these companies might look to bunker traders to help bridge the gap to buyers, because of their knowledge and credit. But expect some to forge a closer relationship with owners. So this might counteract some of the 2020 disruption gains that traders will get. In the end I see the next 2-3 years as positive for traders but then once the market settles margins will tighten. But they will not be squeezed out.”

But will those successful traders have to change into being physical suppliers? That question elicited an unequivocal response: “No this will not happen. The high volume physical supply market in major ports will be dominated by the major oil companies, integrated oil companies and commodity traders, as I mentioned above, I honestly don’t see a huge role for bunker traders as physical in these markets. The big bunker traders have been pursuing physical opportunities but these have tended to be in the smaller niche markets which in the past would normally have been covered by small independent physical suppliers. I think these bunker traders (notably Word Fuel Service and Bunker Holding) will take advantage of these opportunities but it will never be the majority of their business. The real loss (and perhaps only because this where I started!) will be the loss of small independents.”

Adrian Tolson

World Bunkering SPRING 2019

QUANTITY

SINGAPORE COMPLETES MFM PROGRAMME Mass flow metering systems will soon be mandatory for barges supplying distillates as well as residual fuel oil

ithin a few months all the volumes of all bunker deliveries at Singapore will be measured using mass flow meters (MFM). In April last year the Maritime and Port Authority of Singapore (MPA) announced that it would extend mandatory use of MFM systems to distillates deliveries. The use of MFM for residual fuel (marine fuel oil MFO) has been compulsory in Singapore since 1 January 2017. The feedback from industry on the implementation of the new policy has generally been favourable with few issues reported. Perhaps the most significant infraction was found during an MPA inspection of five barges owned by Panoil Petroleum between January and March 2017. According to the MPA its checks revealed that “unauthorised alterations” were made on board five bunker tankers operated by Panoil Petroleum. It explained: “The unauthorised alterations were made on the pipelines of the bunker tankers between the Mass Flow Meters (MFM) and the flow boom. Such alterations allow bunker fuel that have been measured by the MFM to be siphoned out and undermines the accuracy of the readings from the MFM system.” Predictably, MPA acted robustly and Panoil lost its licence and wasconsequently forced out of the Singapore bunkering market. The MPA always intended to extend the use of MFM to distillates and last April MPA Assistant Chief Executive (Operations) Capt M Segar announced that, “following the successful completion of test-bedding the use of mass flow metering (MFM) system for delivery of distillates” the mandatory use of MFM would be extended to all bunker tankers delivering distillates in the Port of Singapore from 1 July 2019. MPA includes in its definition of distillates fuel with a viscosity range of between 1 and 120 cSt @ 40°C. These include marine gas oil, World Bunkering SPRING 2019

marine diesel oil, low sulphur marine gas oil (0.1%) and very low sulphur fuel oil that meets the 0.50% sulphur requirements. IBIA and Singapore Shipping Association both support this initiative. It is accepted that the use of the MFM system will enhance transparency in the bunkering process, improve operational efficiency and increase the productivity of the bunkering industry. Similar to the use of MFM for marine fuel oil (MFO) delivery, the use of MFM for distillates will provide better assurance to both the bunker buyers and suppliers on the quantity of bunker delivered, and safeguard Singapore’s reputation as the world’s top bunkering port. Segar said: “The industry has given positive feedback on the mandatory use of MFM for MFO. As the world’s top bunkering port, it is important that we continue to set the highest bunkering standards to ensure fuel quality and reliability and this can be achieved through the use of MFM.” It would have been difficult if MPA had not proceeded with making the use of MFM mandatory for use with distillates ahead of the 2020 0.50% sulphur cap which is set to transform the market with much more distillate and compliant blends being sold while demand for residual MFO is expected to plummet.

Segar confirmed this and said: “This will also prepare the industry for an expected increase in delivery of distillates with the introduction of a 0.5% global sulphur cap from 1 January 2020 by the International Maritime Organization. We will continue to work closely with all our stakeholders to prepare the bunkering industry for the future.” To ensure that the MFM system is suitable for delivery of distillates, MPA and Enterprise Singapore jointly set up the MFM Working Group consisting of members from Weights and Measure Office (WMO) of Enterprise Singapore, National Metrology Centre @ A*Star (NMC) and various stakeholders in the bunkering industry. The MFM tested the system on five bunker tankers, the Marine Pamela, Ocean Pioneer, Patimah, Sentek 25 and Wisdom, and tests were completed in October 2017. MPA says that, since 2014, it has invested close to S$17 million (US$12.5 million) to help the industry adopt the use of the MFM system for bunker deliveries in the Port of Singapore. In addition, to defray part of the cost in installing the MFM system, companies may apply for co-funding of up to S$60,000 from MPA for each existing bunker tanker delivering distillates in the Port of Singapore. MPA has set aside S$9 million to co-fund this initiative.

Mass Flow Meter used in Singapore

Shonai Maru

BLOCKCHAIN USED IN BIOFUEL BLEND BUNKERING In a likely sign of things to come a ship has been supplied with a biofuel blend at Rotterdam and the stem verified with blockchain developed by a consortium including IBIA

n early February global mining company BHP, Japanese shipping company NYK, sustainable biofuel company GoodFuels and BLOC (Blockchain Labs for Open Collaboration), a developer of blockchain applications for the maritime industry, announced the successful delivery of sustainable biofuels to the BHP-chartered, NYK-owned bulk carrier Frontier Sky while she was in Rotterdam, with CO2 savings verified with BLOC’s blockchain fuels assurance platform. The new biofuel, supplied by GoodFuels via logistics partner Varo Energy, is a ‘drop-in’ marine gasoil (MGO)-equivalent, and was blended with conventional fossil-based MGO in a mix of 30% biofuel to 70% conventional MGO. This delivery is claimed to save over 50 tonnes of CO2. BHP says it works with its customers to help them improve the productivity and environmental performance from the use of its products, and is identifying more strategic relationship opportunities to achieve material emissions reductions. BHP has worked with GoodFuels to explore the use of sustainable, advanced, second generation biofuels for shipping.

According to BHP a vital part of this is the inclusion of solutions to verify chains of custody, that only sustainably produced biofuels are used in the process and that the origin, emission reductions and fuel quality metrics are traceable and transparent. This is where blockchain comes in. This solution was provided by BLOC’s initiative Maritime Blockchain Labs and developed together in a consortium led by BLOC and funded by Lloyd’s Register Foundation. The consortium, including BIMCO, Heidmar, Bostomar, Precious Shipping Line, International Bunker Industry Association (IBIA) and GoodFuels are focusing on assurance for marine fuels, and aims to create an inclusive support system that enhances marine fuel traceability and provides a clear chain of custody for better quality assurance in the bunker fuel supply chain. Abdes Karimi, Head of Strategy and Planning at BHP said: “It’s important for us to ensure the biofuel we use is sustainably produced and traceable.

This consortium has invented new ways of working that improve productivity and reliability in the bunker fuel supply chain and enable trustful tracking of both the provenance and carbon savings. It demonstrates an effective model for the whole industry to build on in the future.” Hiroshi Kawaguchi, general manager of the Dry Bulk Marine Quality Control Group at NYK said: “For shipping to reduce its carbon emissions, we need to ensure that we are exploring how all available technologies can play a part. Using sustainable marine fuel like biofuel unlocks significant emissions savings that, alongside increased efficiency, a reduction in downtime, and increased optimisation through hardware innovation and digitalisation, move us towards our science-based GHG reduction targets. Isabel Welten, Head of Marine, GoodFuels added: “We want to make it as easy as possible for vessels to use biofuels to reduce their footprint. By documenting emissions savings and chains of custody, and combining this with smart incentives to use cleaner fuels, we can build a trusted, financially viable pathway towards zero-carbon shipping.”

World Bunkering SPRING 2019

eanna MacDonald, CEO, BLOC, said: “We’re building on an earlier trial undertaken in September and are moving towards validating an important decarbonisation pathway with blockchain technology”. She continued: “We are further testing the prototype in a real world setting to capture the biofuel delivery from BHP, and to create a complete digital audit trail, with extended functionality for biofuels and emissions tracking. This is an important demonstration of how blockchain technology could play a role in creating a global, trusted MRV system,

and build the trust necessary for broader adoption of cleaner fuels both in terms of meeting 2020 sulphur cap requirements and the IMO’s 2050 decarbonisation goal.” BLOC’s area of specialisation is in framing problems and connecting the relevant stakeholders across the value chain to develop solutions through collaboratively prototyping and validating blockchain applications to then be accelerated and scaled. To support this process, BLOC provides a range of expert services and solutions, such as technical and non-technical training, expert consulting and advisory, and feasibility studies.

The consortium has set up a subsidiary, Maritime Blockchain Labs (MBL), to establish an ecosystem within the sector to foster innovation and collaboration between blockchain practitioners and industry actors. MBL’s first LRF-funded demonstrator is now at the stage of real-world testing and scaling in preparation for commercialisation, having been recognised as a winner in the Coastal Communities category of the MIT Solve initiative.

BUNKERING BY TRUCK OR BY BARGE IN ALL FRENCH PORTS A team where every member is committed to creating with you the best opportunity of supply, to anticipate and understand your needs. That’s why the human factor and the quality of our sales relationships are so important to us. We can supply MGO in all ports in Channel, from Dunkerque to Brest; from Le Havre & Rouen area by truck or barge. All the ports in Atlantic coast such as La pallice or Bassens. We are also to deliver in the Mediterranean coast ports like Marseille, Fos Nice or Sète.

FOR ALL YOUR ENQUIRIES OR QUESTIONS bunkers@oil-atlantic.energy Head office 83, Boulevard Berthier 75017 PARIS – France +33 (0)1 42 56 13 77

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Bunkers office 15, rue Auguste Girard 13300 Salon de Provence France +33 (0) 4 69 96 06 96

ENVIRONMENT

THREE Ps FOR 2020 With less than a year left to get ready for the 0.50% sulphur limit, awareness is high but is that enough? Many have doubts, but don’t stop trying, says IBIA’s Unni Einemo

e are at the start of 2019, and to be where we need to be by the end of this year, many elements of the three Ps should already be in place. I am, of course, talking about what needs to happen for a successful transition to the 0.50% sulphur limit which takes effect on 1 January 2020. The three Ps are: Plan, Prepare, Practise. Exactly what that means varies between stakeholders; refineries have different timelines and concerns than ship operators. Various players in the bunker supply industry have others, depending on which links in the supply chain they take part in. The International Maritime Organization is working hard to put comprehensive guidelines in place to ensure the regulation is effectively implemented. The trickiest part of all this are the uncertainties created by the interdependency of all these stakeholders; they all rely on others to meet their needs and/or do the right thing. Will there be enough supply? Will scrubber uptake be high? Will ships comply? Uncertainty about the answers to these questions puts stakeholders at risk of making the wrong investments or being put at a disadvantage if others aren’t being penalised for failing to play by the rules. Hence we see heavy emphasis on the need for effective enforcement of the regulation.

Owners also need to prepare the hardware, whether that is installations and/or retrofits of scrubbers, and considering potential changes to their tank and fuel system configurations to prepare their ships to be better equipped to deal with a variety of fuels, for example splitting larger fuel tanks into smaller ones to enable effective segregation of fuels, and ensuring tanks have flexibility to heat fuels when necessary. Another element of their planning and preparation is to talk to bunker suppliers about their fuel requirements, whether that is high sulphur fuel oil (HSFO) to use with scrubbers or low sulphur fuels to comply in 2020. Also, plan for the ‘switch’: what’s needed with regards to tank cleaning and fuel purchasing to achieve compliance by the start of 2020. Timing will be a critical and challenging factor to get right with impact on the overall cost weighed up against the risk of not being compliant in time. Then there’s practice. Crew may have to deal with more varied fuels; awareness and training could help them manage better. They could get some practice ahead of time by trialling one or more of the ultra low sulphur fuel oils (max 0.10% ULSFO) on offer for operations in emission control areas,

as these are probably quite close in nature to the very low sulphur fuel oils blends we can expect (max 0.50% VLSFOs) to come into the market for 2020. This would be good practice to get used to managing changeovers between potentially incompatible fuels. In fact, they canCRlearn from changeovers between marine gas oil used for ECA compliance and HSFO as well, as these can also be incompatible. It is also possible to buy VLSFO on a trial basis now to get experience. The supply equation Do we have the same three Ps for the supply side? Certainly, and there’s at least one more: Prediction. The latter is causing a lot of bother due to the inherent unpredictability of all forecasting. The shift from a 3.50% to a 0.50% sulphur limit for global shipping is a transport fuel specification change on an unprecedented scale for the refining industry to adjust to. Back in 2016, when the IMO decided to implement that change in 2020, it was on the basis of a study predicting that the global refining industry could cope. There have been other forecasts arriving at a different conclusion, and as we stare down the barrel of this massive challenge, opinions remain divided.

In November 2018, the technical manager of the chemical tanker company Ardmore Shipping, told the IBIA Annual Convention that for Ardmore, said compliance with the 0.50% sulphur limit “is not a 2020 problem, it is a 2019 problem” because when we get to 2020 it is too late. Wise words! This company is already well down the line with the three Ps. Three Ps for shipowners Most owners should now have the first part of their plan ready, namely a decision regarding which route to compliance they intend to take.

Alan Gleder of Wood Mackenzie ©European Petroleum Consutants

World Bunkering SPRING 2019

Refiners will need a strong price incentive to divert sufficient molecules into the marine fuel supply pool and hence sufficient supply is not guaranteed. Also complicating the picture is that refinery models are typically not capturing certain marine fuel quality criteria such as the compatibility of blend components, lubricity, flash point, and cold flow properties. So concerns persist about sufficient supply from the refining industry, with the added concerns about fuel quality. Predictions aside, the event in London also demonstrated that where some see problems, others see opportunities. There were several refinery consultants presenting solutions that can help refineries maximise production of low sulphur marine fuels. These included optimising blending with specialised equipment, maximising use of delayed coking to upgrade residues, and novel desulphurisation processes that essentially converts HSFO to VLSFO with, allegedly, lower capital investments required than refinery upgrades to increase cracking and coking capacity. What about the other three Ps then? Some refiners have already planned ahead and made the upgrades needed to cut HSFO output and boost higher value products. These are generally not specifically aimed at meeting demand from shipping, but rather any market where they can get the best price for their various refinery streams. World Bunkering SPRING 2019

Some refiners and commodity traders are specifically preparing VLSFOs that meet ISO 8217 marine fuel specifications, in particular the oil majors and traders who are already active in marine fuel marketing. Today, the majority of bunker fuels are not sold directly to ships from refiners. Traders play a key role in sourcing cargoes which may meet specifications at the refinery gate, but they may equally source a variety of cargoes that can be blended to meet marine fuel specifications. If the price is right, the balance might shift toward refiners in 2020, but traders will continue to play a major role in sourcing, blending and distributing compliant fuels to ports around the world. Elsewhere in the supply chain, there’s planning and preparation to do with regards to the supply infrastructure, in particular reallocation of storage tanks and cargo tanks on bunker barges from HSFO to low sulphur products. The same principle applies here as to ship’s fuel systems: cleaning is required, getting the timing right is critical, and they need to consider the need for segregation of potentially incompatible fuels. Practice is more difficult in the supply chain because until the demand is there, suppliers cannot produce, distribute, store, and supply large quantities of 2020 compliant fuels. But IBIA encourages those that will produce these fuel blends to develop trial products now, have them tested against ISO 8217 specifications, keep an eye on their shelf-life and preferably run trials and engine performance testing. Compliance levels One of the uncertainties and subject of much speculation is how good compliance will be. Alongside uncertainty about the extent of scrubber uptake, which has largely been expected to grow rapidly from a relatively low share of the global fleet in 2020, this has been cited as a reason for refiners to hold back on costly upgrades to convert more HSFO to high value products. Is it possible to estimate what percentage of vessels will be compliant by January 2020? Maybe it is, but whether you put the estimate low or high it seems to cause controversy and how useful is it?

From a preparation point of view, there seems little point in trying to put a number on this because from both the supply and shipping side, the focus needs to be on preparing to comply and speculating too much on compliance levels may be counterproductive. Those that intend to comply are anxious that enforcement is effective so they are not put at a commercial disadvantage. IMO is providing a good framework for enforcement but it is difficult to predict how robustly it will be applied around the world and it will likely vary between countries. However, a large number of countries are well prepared to enforce effectively and most ships will, sooner or later, call at ports in these countries and hence be subjected to thorough inspections. Ironically, the biggest cause of noncompliance in 2020 could prove to be a lack of availability rather than wilful cheating if refineries and the supply chain logistics struggle to cope to meet the increase in demand for low sulphur fuels. That’s why it is important to have a well-developed mechanism to ensure ships are not unduly penalised if, despite their best efforts, they are unable to obtain compliant fuel. Work is underway at the IMO to develop a standard fuel oil non-availability report (FONAR), as provided for in Regulation 18.2 of MARPOL Annex VI. It’s important to note that FONARs are not exemptions, and it will be up to port state control officers at the ship’s next port of call whether they accept the FONAR as evidence the ship did all it could to obtain compliant fuel. PSC could then decide that the ship won’t be penalised but it will nevertheless be reported as a deficiency. They could even decide that the ship must debunker and take onboard compliant fuel, which is not a penalty but a pretty effective deterrent as this would be time-consuming and costly. All in all then, the best course of action is for all parties to try their best to be ready for 2020, because doubts foster inaction. Society will judge the entire sector harshly if it fails.

ENVIRONMENT

n January, IBIA took part in a forum called “IMO 2020 - Are you ready? Debate with the Specialists!” hosted by Euro Petroleum Consultants. It offered insights from a variety of refining experts and consultants. It demonstrated a few things very clearly: firstly, that the refining industry is paying attention because this will have a major impact on their product markets; secondly, even if there is a concerted effort within the refining industry to meet demand from shipping it will be a challenge; thirdly, there will be a global race for middle distillate molecules to bridge the gap when refinery bottoms will no longer be the major component of marine fuels.

INNOVATION

Shonai Maru

NEW BATTERIES TESTED Trial on multi-purpose vessel is forerunner to use with solar panel arrays

s part of a joint project with ship operator Masterbulk, Japan-based alternative energy company Eco Marine Power (EMP) has announced a sea trial of a battery pack that will later form part of an Aquarius Marine Solar Power solution developed by EMP and be evaluated jointly with Masterbulk and Zeaborn Ship Management (Singapore).

Commenting on this latest development, Yasuhiro Kodaka, General Manager of International Sales at Furukawa Battery said, “We are very pleased to see our high quality UltraBattery series being used on ships. These long-life and very reliable batteries offer a cost effective alternative to lithium-ion type batteries and are also relatively easier to install and maintain”.

An UltraBattery (UB) battery pack manufactured by the Furukawa Battery Company has been installed on the 54,694 dwt multi-purpose vessel Panamana.

Lars Modin, Chief Executive Officer at Masterbulk stated, “At the core of Masterbulk’s corporate sustainability policy is a focus on protecting the planet and exploring the use of renewable energy on our ships, as part of our strategy to further reduce emissions and fuel consumption.”

The battery pack installed on the ship incorporates class-approved UB-5012 Valve Regulated Lead Acid (VRLA) batteries and an “easy to install” marinegrade battery frame kit. This combination allowed for the batteries and frame kit to be loaded onto the ship and installed by the ship’s technical team with only remote support being required. The frame kit for the batteries was manufactured by Teramoto Iron Works and specially design to be used with the UB-50-12 batteries. EMP says that UB-50-12 VRLA batteries are the ideal solution for smart grid, wind power and solar power applications and are safe, recyclable and have a long cycle life. These hybrid batteries incorporate unique ultracapacitor technology and along with the larger capacity UB-1000, are suitable for use on ships, offshore platforms and land-based applications.

Construction starts on ‘plug-in’ shipbuilding Construction is underway on what is said will be the world’s largest plug-in hybrid ship. Color Lines’ Color Hybrid is being built by Norway’s Ulstein Verft. The ferry is scheduled to be delivered in the summer this year.

The ship will be powered by battery through the fjord, without noise or harmful emissions. When alongside in Sandefjord, the vessel will be charged though a shore connection. Propeller duct boosts efficiency K Line’s newly delivered coal carrier Shonai Maru incorporates a Weather Adapted Duct (WAD) which is said to boost propeller efficiency. The 100,000 dwt ship was built by Marugame Shipyard, Japan, which is part of the Imabari Shipbuilding Co group. The ship will be mainly used to carry thermal coal to Chubu Electric Power’s Hekinan Thermal Power Plant for Singaporebased JERA Trading. The WAD was developed by Japan’s National Maritime Research Institute and is said to increase fuel efficiency by between 5% and 7%.

The ferry will be able to use full battery power for parts of its journey during which it will not emit greenhouse gases, nitrogen or sulphur compounds. The 160 metre vessel will be able take on 2,000 passengers and 500 cars, and has crew cabins for 100. The Color Hybrid will operate on the Sandefjord-Strömstad route and will switch to batteries when it approaches Sandefjord.

CEO Ulstein Gunvor Ulstein, CEO Trond Kleivdal ©Nanseth Media

World Bunkering SPRING 2019

EQUIPMENT AND SERVICES

Electric powered ferry Aurora Image courtesy of ForSea

‘ZERO EMISSION’ FERRY CONVERSIONS Baltic route operator ForSea now runs the world’s largest battery-powered ferries

he world’s largest ‘emission-free’ ferries, the Tycho Brahe and Aurora were officially welcomed into service in November on the short route between Helsingborg, Sweden and Helsingør, Denmark, following conversion to all-electric by ABB. INEA, the European Union’s executive agency for innovation and network, has supported the project. ForSea’s CEO, Johan Röstin, said. “This is a truly groundbreaking project and the work we have done with ABB will offer invaluable lessons for those following our lead. In shipping, innovation takes time and patience, and we always kept sight of the environmental benefits at stake.” “This project signals a profound shift for the maritime industry, and shows a path towards zero-emission operations, aligned with International Maritime Organization’s goals for decarbonisation,” said Marcus Högblom, Head of Passenger, Dry Cargo and Ice Segment, ABB Marine & Ports. The two vessels were converted from conventional diesel engine operations to battery power at Öresund Dry Docks, as part of ForSea’s strategy to reduce the environmental footprint along the 4km route between Sweden and Denmark. The vessels operate on a high intensity ferry route that transfers over 7.4 million passengers and 1.9 million vehicles between urban port terminals in Denmark and Sweden. World Bunkering SPRING 2019

The conversion of the1991-built, 110 metre ferries required installation of a 4160 kWh battery on each vessel, as well as battery racks, energy storage control systems and ABB’s onboard DC Grid power distribution technology. ABB also supplied automated shoreside charging stations using an industrial robot to optimize the connection time and maximize the charging period, leveraging 3D laser scanning and wireless communication between ship and shore. “This is a landmark project, and we are convinced it will come to be seen as a critical step in shipping’s environmental revolution, as well as a milestone in rolling out ABB’s ‘Electric, Digital, Connected’ strategy for shipping,” said Marcus Högblom, ABB Marine & Ports.

Lower fuel costs and NOx fees, combined with the longer service interval of the Wärtsilä 31 engine, will result in significantly lower operating costs.” The existing 18-cylinder Wärtsilä 32 engine in V-configuration will be replaced with the 10-cylinder Wärtsilä 31 engine in V-configuration. In addition, the vessel will be installed with Wärtsilä NOx Reducer emission after-treatment system with a compact silencer. The propulsion control system will also be upgraded. Norwegian NOx Fund has committed a substantial amount of support for this project.

Engine retrofit promises NOx and fuel consumption cuts Technology group Wärtsilä is set to deliver its first Wärtsilä 31 engine retrofit to Gardar, a fishing vessel owned by Norwegian Gardar AS.. After the retrofit is completed, fuel consumption of the vessel, built originally in 1998, is expected to be reduced by 200,000 litres and NOx emissions by over 88 tonnes annually. Wärtsilä claims: “The decision to retrofit Gardar’s engine will have a huge impact on the vessel’s environmental footprint.

Battery power on board Tycho Brache. Image courtesy of ForSea

SCRUBBERS

Cleanship scrubber

FACTS AND FEARS IN THE OPEN LOOP SCRUBBER DEBATE IBIA’s Unni Einemo takes a close look at a topic which appears to be long on opinion and short on evidence

crubbers are a recognised solution to dealing with air pollution under MARPOL Annex VI but recent local bans on washwater discharges from open loop systems have increased a widespread misconception that there are no safeguards against their environmental impact.

• Local authorities may take a precautionary stance but a global washwater discharge ban is currently not on the cards • Scrubbers play a role in global fuel availability to comply with the 2020 sulphur limit Below are more details on these points.

The recent bans and negative sentiment expressed in the press has created uncertainty about the viability of this particular solution to reducing sulphur emissions from ships at a time when the market is already under a lot of stress about how to cope with the 0.50% sulphur limit taking effect at the start of 2020.

Global and local considerations regarding scrubber washwater discharges We hear a lot of emotive language, asserting that open loop scrubbers are dealing with an air pollution problem but creating a new one by “dumping waste water” into the sea. That’s an oversimplification and ignores the fact that the International Maritime Organization (IMO) has set out Guidelines for exhaust gas cleaning systems (EGCS Guidelines) which include washwater discharge and monitoring criteria to safeguard against environmental damage.

IBIA would like to offer some observations and background to help clarify the situation, which can be summarised as follows: • The IMO’s EGCS Guidelines have established washwater discharge and monitoring criteria to safeguard against environmental damage • Regulatory decisions should be based on sound science to assess environmental impacts • Environmental impacts of washwater discharges depend on local factors

The IMO washwater discharge criteria sets strict limits for a set of measured parameters to prevent harmful pollutants that may be found in the exhaust gas from ending up in the sea. This includes turbidity (to safeguard against heavy metals and ash),

polycyclic aromatic hydrocarbons (PAH) to control any oily discharges and pH. The pH criteria are more stringent in port than during manoeuvring and in transit. This means that washwater has to be treated before it is discharged to remove solids like metals and oily waste. In an open-loop system, sulphur oxides (SOx) scrubbed out of the exhaust gas form sulphates which dissolve in the washwater. The acidity of the washwater is neutralised by seawater, but if the natural alkalinity of seawater is low, the efficiency of the scrubbing itself may be reduced and it takes more water to neutralise the pH before the washwater can be discharged. The accepted science when EGCS were included in MARPOL Annex VI as an alternative to using lower sulphur fuel to remove SOx, which are harmful air pollutants, was that the buffering capacity of the world’s oceans can absorb the sulphates without causing harm. Ship emissions cause atmospheric pollution including SOx and particulate matter, which start off airborne but are deposited after a while. Most of these deposits end up in the sea, but a portion blows ashore where it can contribute to acid rain, World Bunkering SPRING 2019

The results – based on 79 washwater samples from the first 23 Carnival vessels with EGCS – were good, with a company official claiming that the discharged water was cleaner than the water taken in by the ship to use in the system.

Unless a significant portion of the world’s ships were to use HSFO and open loop scrubbers to reduce SOx emissions instead of low sulphur fuels, the overall contribution to ocean acidification from ship exhaust gases should not increase. For the time being most ships are expected to use low sulphur fuels from 2020.

IMO scrubber regulations Currently the use of systems using water to clean ship exhaust gases, both open and closed loop scrubbers, is allowed under MARPOL Annex VI. Bleed-off water from closed loop systems can also be discharged as washwater after onboard treatment, or led to a holding tank for later discharge if a zero discharge mode is required. No proposals have been made to prohibit their use even if there are some parties calling for water discharge bans on the basis of concerns about the environmental impact.

There are some concerns about the impact of washwater discharges in more localised areas with high shipping density that may be vulnerable to increased pH or ineffective removal of other pollutants, such as some coastal waters, estuaries and rivers, ports and enclosed bodies of water. Hence we have seen the use of open loop scrubbers banned in some such areas already, and there may be more to come. Actual impact would be subject to local conditions. Decisions to implement a ban on washwater discharges should be based on scientifically sound environmental impact assessments in each case, but in some cases we will see local authorities taking a precautionary “better safe than sorry” approach to environmental protection without any such assessment. The Irish Port of Waterford has already done this, and has banned discharges of washwater from exhaust gas scrubber systems within its jurisdiction “given the potential for impact on ecosystems” because currently “there is no assessment of the long term environmental impacts”. Singapore and Fujairah have not provided any public documentation providing impact assessments to support their respective upcoming bans on washwater discharges, set to take effect in 2020. Carnival, which is on course for having close to 100 ships fitted with EGCS by 2020, has taken part in a voluntary programme with DNV GL to understand which chemicals are present in the washwater discharge and how the EGCS process may affect water quality.

World Bunkering SPRING 2019

IMO might eventually go that way, but it would need to be formally proposed by one or more member states and go through the process of regulatory amendments. Recognising that a ban on washwater discharges from scrubbers would be a serious blow to shipping companies that have invested millions in them, any proposal and subsequent decision would need to be supported by new research demonstrating that the washwater causes unacceptable environmental risk. As mentioned above, the IMO has established EGCS Guidelines which include washwater discharge and monitoring criteria to safeguard against environmental damage. These were first issued in 2009, they were updated in 2015 and they are currently under review to refine them further. The discharge criteria remain the same so the review is chiefly to clarify issues around monitoring of washwater, emission testing and approval of scrubbers. This should help ensure that the monitoring of EGCS washwater is effective to ensure the discharge criteria are met. EGCS role in implementation of the 2020 sulphur limit The IMO’s decision to implement the 0.50% sulphur limit in 2020 hinged in part on the ability of a portion of the global fleet to be compliant by using EGCS in combination with burning HSFO.

The decision taken by the IMO in October 2016 was based on an availability study which used a model predicting that ships with scrubbers would be burning some 36 million metric tonnes of HSFO accounting for 11% of total global marine fuel demand in 2020. That forecast may be too high as orders were slow to take off until the second half of 2018, but a portion of the fleet will be ready in time and more will come on stream during 2020, reducing some of the demand on global refining capacity to produce sufficient compliant low sulphur fuels to meet global marine fuel demand. With less than a year before the global bunker fuel sulphur limit falls from 3.50% to 0.50%, there is still a lot of uncertainty in the market as to whether there will be sufficient compliant fuels available in 2020. A number of refinery modelling experts say it will be tough even if refiners make a concerted effort to meet demand from the marine sector, and there is no doubt that implementing such a dramatic global fuel specification change over a short period of time will create pressure on supply. This is not a good time to sow doubts about the feasibility of open loop scrubber installations as that will increase the pressure on low sulphur fuel supply. Even with major ports like Singapore and Fujairah banning scrubber washwater discharges, ships will still be able to use open loop scrubbers at sea which accounts for most of their fuel consumption. As such, owners that have opted for open loop scrubbers will still be able to use them as their primary MARPOL Annex VI compliance option, but will need to use compliant fuels or systems that can operate in completely closed loop mode in locations which prohibit washwater discharges.

Wartsila has large orders for hybrid scrubbers

SCRUBBERS

and there is a negative effect on air quality in coastal regions. MARPOL Annex VI sulphur limits were set to prevent this atmospheric pollution, but the risk to the aquatic environment has been considered.

LNG

GOOD YEAR FOR LNG 2018 saw a sea-change in attitudes and actions towards Liquefied Natural Gas as a marine fuel, according to SEA\ LNG Chairman Peter Keller

n his review of last year, Keller noted that of the 94 cruise ships on the global order-book, 18 under construction were LNG-powered. This represented 20% of all newbuildings for the cruise industry, and 25% of newbuilding capacity due to the size of the vessels ordered. The world’s first fully LNG-fuelled cruise ship, Carnival’s AIDAnova entered service in December with a further seven LNG-powered cruise ships ordered by Carnival to be operational by the end of 2022. Overall, the LNG-powered fleet has grown globally from 118 vessels in operation in 2017, to 143 LNG-powered vessels in operation in 2018 – with a further 135 on order and 135 LNG-ready ships either in operation or on order. SEA\LNG, the organisation promoting the use of LNG as a marine fuel, says that orders for LNG-powered vessels span a variety of vessel types including tankers, cruise ships, container ships, car carriers, and very large ore carriers. Keller notes that LNG bunkering infrastructure is expanding “driven by a requirement to supply LNG-powered trailblazers”, and there are increasing numbers of LNG-bunkering vessels which are encouraging other operators to adopt LNG. From limited availability at select ports, LNG bunkering has grown to encompass 24 out of the world’s top 25 and all but one of the top ten bunker ports globally. The single operational LNG bunkering vessel operating at the beginning of 2017 has been joined by a further eight. SEA\LNG estimates that 30 are likely to be in operation within the next four to five years at key bunkering centres in Asia, Europe, the Middle East, and North America. During 2018, the world’s largest LNG bunkering vessel, the 7,500-cubic metre Kairos started operations in northwest Europe. It will be surpassed in the region next year by the 18,500-cbm LNG bunkering vessel chartered by Total to supply CMA-CGM’s new fleet of 22,000 TEU container ships.

In December the Port of Rotterdam revealed plans to grant nine LNG bunkering licences, and ADNOC Logistics & Services and INPEX Corporation signed a framework agreement for an LNG bunkering partnership in the United Arab Emirates. This framework agreement includes the potential to jointly expand LNG bunkering activities to cover other regions including South East Asia. Meanwhile, claims SEA\LNG, “the economic case for LNG as the marine fuel of choice for newbuilds is growing stronger each month” An independent study commissioned by SEA\LNG reports that for an Asia–US west coast liner service involving less than 10% of sailing time spent in ECAs, the greatest investment returns come from choosing LNG as the vessel marine fuel. Keller says: “high capital expenditure (CAPEX) hurdles for LNG engines – when compared with traditional alternatives – have reduced dramatically due to additional significant CAPEX now being required for conventional HFO engines to meet IMO 2020 rules, and the shipyard prices for newbuild LNG engines being discounted to encourage orders.”

Keller comments: “The impracticalities and economics of retrofitting existing vessels with LNG tanks and the lack of ready access to LNG bunkers in some parts of the globe necessitate a portfolio approach to marine fuelling solutions for shipowners and managers, with different fuels best suited to different vessels and trading routes. However, in 2019 we expect to see an increasing percentage of newbuildings within the global fleet move over to LNG for economic reasons to gain commercial trading advantages. The concerns expressed by Shippers Advisory Groups globally regarding fuel surcharges post 2020 will continue to form an important element of the commercial discussions. Further work on the investment case for LNG within the SEA\LNG study will review the economics for a very large crude carrier (VLCC), car carrier, and dry bulk vessel.” He dismisses the idea that other alternative fuels could be better options, arguing: “Alternative fuels attract growing media attention and interest continues to grow around hydrogen, methanol, ammonia, and battery propulsion systems. These alternative marine fuels may prove to be long-term zero-emission technology solutions for the shipping industry, however, they are not ready now and will require huge investments by industry and governments over decades to realise their potential.”

Late last year in Rotterdam Shell carried out its first LNG bukering from its LNG bunker tanker Cardissa

World Bunkering SPRING 2019

LEGAL

CARNIVAL APPEALS FRENCH FINE French authorities have successfully prosecuted a ship’s master for using fuel that allegedly broke EU sulphur-in-fuel limits

n November last year the US master of the cruise ship Azura, owned by Carnival Corp subsidiary P&O Cruises, was fined €100,000 (US$113,798) by a court in Marseilles, France. The court ordered that most of it be paid by the cruise line. Carnival is appealing the conviction. The prosecution related to a spot check on the Azura in March when it was found to be using heavy fuel oil with 1.68% sulphur content, just above the 1.5% European Union (EU) limit for passenger vessels operating on regular services to or from any EU port. The 115,055 gt ship had taken on the bunkers at Barcelona before sailing to Marseilles. Prosecutor Franck Lagier said P&O “wanted to save money at the expense of everyone’s lungs” and claimed the company had saved €21,000 by buying the higher sulphur content fuel. Lagier asserted that Captain Evans Hoyt knew the fuel was illegal. The court ordered that Carnival must pay €80,000 of the master’s fine. It also awarded damages of €5,000 each to French environmental groups France Nature Environnement, the Surfrider Foundation and the League for the Protection of Birds. A P&O Cruises spokesperson told World Bunkering: “The Carnival group carries over 12 million guests on its vessels each year and takes its legal and moral obligations towards the protection of the environment very seriously indeed. We were therefore very disappointed to be prosecuted for this offence, which was based on a European law the French Environment Ministry had explicitly informed the cruise industry would not be applied to cruise ships and which, in any event, has still not been properly implemented. The captain was using the fuel in good faith, as directed by us, based on our understanding of the law. We have lodged an appeal and will consider the full decision of the court once it is available.”

World Bunkering SPRING 2019

MSC fined for California violations Mediterranean Shipping Company has paid US$630,625 in penalties to the California Air Resources Board (CARB) for violating its Ocean-Going Vessel At-Berth regulation. According to CARB, the violations were discovered during a routine audit of the company’s 2014 calls at the Port of Oakland and the twin ports of Los Angeles and Long Beach. The investigation revealed more than 2500 violations for both the Oakland and LA/LB calls for failing to reduce auxiliary engine power generation by at least 50% and for exceeding limits for auxiliary engine run time as required by the At-Berth regulation. “Ocean-going vessels are significant contributors to air pollution,” said CARB Enforcement Division Chief Todd Sax. “Even in port, their auxiliary engines generate toxic diesel particulate pollution that impacts not only port-adjacent communities, but also entire inland regions. This regulation helps to protect all Californians and is necessary to ensure we meet our clean air goals.”

Adopted in 2007, the At-Berth Regulation was designed to reduce emissions from diesel auxiliary engines on container ships, passenger ships and refrigerated-cargo ships while berthing at Californian ports. Vessel operators can either turn off auxiliary engines and connect to grid-based shore power, or use alternative technologies to achieve equivalent emission reductions while in port. The regulation ultimately requires a fleet operator to reduce at-berth oxides of nitrogen (NOx) and particulate matter (PM) emissions from its vessels’ auxiliary engines in port by at least 80% by 2020. In a statement CARB said that MSC cooperated with the investigation and subsequently converted all its California-calling ships to switch to shore power, and has had no further violations of the At-Berth regulation. The fine was paid to the California Air Pollution Control Fund to support air pollution research, and the company agreed to comply with all requirements of the regulation.

iStock

COMPANY NEWS

THE PORT OF CEUTA “BUNKERING IN THE STRAIT OF GIBRALTAR FOR MORE THAN 100 YEARS “

ith its strategic location in Africa, this Spanish port of call maintains an important geographic position for passengers, products and goods destined for Africa and Europe. • One of the top ports in the strait for Bunkering services. • Tax Free bunkering and Zero Duty on goods passing through the port suppose a financial advantage. • Quick turn around due to efficiency of scale. • State of the art facilities for superb ship servicing – specialised in medium sized ships. • Compliance with the Spanish Ports Cronos project for rapid response and prevention of accidental pollution of the port environment.

The competitive advantages that the Port of Ceuta offers, with respect to its competitors, is the quality service that can be found throughout the facility in all areas such as infrastructure, machinery, and labour force. The Port´s target is to attract and meet the needs of the medium tanker that use intermediate fuels. This unique specialization in the servicing and supplying of medium moored boats has no rivals in the strait of Gibraltar and the Port is considered to be the least congested in the Straits. Liquid bulk traffic which includes the loading and unloading of fuel and the supply of ships represents over half of the traffic of our port. This is a reflection of the favourable times we are currently enjoying in bunkering.

We have most of the port infrastructure exclusively designated for this side of our business. Therefore, we can confidently say that this is our specialization. We are an indispensable reference point in the Spanish port system for this type of traffic.

For more information on how we can meet your energy and port needs please contact www.puertodeceuta.com Port Authority of Ceuta Muelle España s/n 51001 – CEUTA (SPAIN) Tel: +34 (0) 956 52700 / Fax. +34 (0)956 527001 Website: www.puertodeceuta.com

The entire economy of Ceuta depends directly or indirectly on the Port and its activities. Due to its geographical location. It is also the entry and exit point for most goods and provides the foundation for most commercial activities. The existing infrastructure is excellent for the bunkering of ships and is a proud reflection of the importance that this activity represents for the Port. The Port of Ceuta supplies nearly one million tons.

World Bunkering SPRING 2019

Bunkering by truck or by barge in all French ports

reated in 1999, ATLANTIC ENERGY is a French company specialized in bunkering operations and negoce fuels. We are able to deliver our products in all the French ports and to supply all vessels with Marine Gasoil or Fishing Gasoil (max Sulphur 0,10 %) by truck in France.

ATLANTIC ENERGY have created a bunkering opportunity by barge at ROUEN and LE HAVRE port area to supply Marine gasoil 24 hours a day, 365 days a year, via dedicated barge service. Our barge can deliver all required fuel volumes, starting from 10 MÂł up to 700 MÂł.

We are also able to meet your marine fuel oil requirement on RMG380 HS (max Sulphur 3,5%) and RMG380 LS (max Sulphur 1,5 %) by truck in South port. In order to ensure compliance with the ISO-8217, all products delivered by ATLANTIC ENERGY are regularly analyzed. We deliver all the products in respect of Marpol regulation.

All the ports in Channel, from Dunkerque to Brest by truck and at Le Havre, Rouen by truck and by barge. All the ports in Atlantic coast, from Brest to Bayonne by truck. All the ports in Mediterranean coast, from Monaco to Port Vendres by truck. ATLANTIC ENERGY can offer to owners, to charterers,to operators and to traders inner French ports.

World Bunkering SPRING 2019

COMPANY NEWS

ATLANTIC ENERGY

COMPANY NEWS

AKRON TRADE AND TRANSPORT Quality on time, every time

stablished in 1997, AKRON Trade and Transport is a fully-integrated bunkering company that holds itself responsible and accountable for every step of product development from refinery to our consumers. The products we deliver to our clients are tested, traceable and reliable. Thanks to our geographical location off the east coast of the Middle East and our in-depth local knowledge we have secured strong relationships with oil majors, independent oil companies and refineries to ensure consistency The Company’s Main Activities consist of: Bunker Supplies Local and high seas bunker supplies. Over a period of time, Akron has created and established a sizeable market share in the bunker sector, selling and physically supplying marine fuel oil of all grades to all vessel types off the East coast of the UAE as well as to the international fishing fleets in the Arabian Sea, the Indian Ocean and the Bay of Bengal. As a physical supplier, the company purchases marine fuel from reputable suppliers on the spot market or under renewable contracts from petroleum trading subsidiary of National Gulf State Oil Companies. “We continually strive to become more effective and competitive within this market, which is paramount in these uncertain times so that we can provide our customers with the best bunkering services.”

its ships, effectively controlling product movements and testing procedures to ensure accurate and reliable fuel specifications at all times. Vessel Chartering AKRON’s managed vessels are available for charter to third parties on spot/voyage, or on short/medium time-charter basis, thus maximizing fleet utilization rates. Oil Trading In addition to its physical supply operations, the company engages in substantial “whole-sale” oil trading activities, of marine fuels to its customers in the East African countries, islandstates of the Indian Ocean, local (UAE) government authorities, traders and specialized refineries). Our Team AKRON has nurtured a management team that brings exceptional experience and expertise from the shipping and oil industries, particularly in tanker management and bunkering operations in the Gulf. With a strong, dedicated support team on the ground we put our experience, expertise and knowledge at your service 24 hours a day. Our Fleet Our Offshore Bunkering operations utilize a storage mother vessel and a dedicated fleet of delivery tankers, all of which are internationally-certified and fully equipped to meet all STS requirements.

With over 150,000 metric tons of floating storage within the Arabian Gulf alone and a fleet of 27 vessels expanding year on year we have achieved an excellent longstanding relationships with our reputed charterers and with a continuous, reliable source of quality product, our customers are always ensured of prompt and efficient delivery of bunkers. Safety & Quality Since our inception, there has been NO quality or quantity dispute, a record we are dedicated to maintain and an opportunity for us to show our customers their true value by providing optimum bunkers at the quickest turn-around time. Akron’s quality assurance program effectively controls product movement and testing to ensure accurate and dependable fuel specifications at all times. Akron possess a Zero pollution and Spill incident with a clean safety and environmental record. Akron Trade and Transport has all it takes to become and remain your reliable partner!!

AKRON TRADE AND TRANSPORT P.O.Box 1327, Fujairah United Arab Emirates. Tel: + 971 9 2228840 Fax: + 971 9 2228841

Ship Management The company uses Group-management vessels to transport, store and deliver marine fuel products. Fully equipped to meet all Ship-to-Ship transfer requirements, as well as specially fitted for offshore bunkering and maintain high safety standards by complying with International and UAE regulations. To achieve highest quality assurance, the company handles fuels right from the refinery to the point of delivery on board

World Bunkering SPRING 2019

COMPANY NEWS

GREETINGS FROM OILBURG Oilburg seek to increase its presence in the Arab Gulf

About Us:

ilburg is specialized in the trade of oil refined products (from Jet, Gasoline, Gasoil, Fuel oil, Base oil and bitumen). We are also physical bunker supplier by road tankers in all UAE Ports. We do deliver all gasoil and fuel oil grades to all kind of vessels from small private yachts to bulkers, tankers, containers vessels, military vessels to Large Crude Carriers. Our added value is competitive price, punctual deliveries and extended credit payments. Our products: We currently supply the below products: • All gasoil grade from 10ppm to DMA specs (ISO-2005 & ISO-2010) • All Fuel Oil grade from 30Cst to 380 Cst • Base Oil Group I, II and III by bulk and flexi tanks. • Bitumen by bulk and also drums. Our physical bunker activities are in the below UAE ports: åABUDHABI å - PORTS • Mina Zayed Port (New & Old) • Khalifa Port • Musaffah Port • Mirfa Port

World Bunkering SPRING 2019

• Mugharaq Port Near Ruwais • Yas Marina • All Private Jetty’s

• Marine Gas Oil Delivery Capacity: 600. Mt / Day • Fuel Oil Delivery Capacity: 300.Mt / Day

åDUBAI å - PORTS • Dubai Maritime City (DMC) • Dubai Drydock • Al Hamriyah Port DXB • Port Rashid • Jebel Ali & Dubai Water Front.

Our fleet is fully equipped and Certified with all UAE ports: • Emergency Safety • UAE Civil Defence Approval. • DP World Security approved. • EHS Approval. • Security approval for all the UAE ports. • Calibrated and certified Flow meters.

åSHARJAH å – PORTS, • Port Khalid • Hamriyah Port • Khorfakkan Port • Kalba port åRAS å AL KHAIMAH - PORTS, • Stevin Rock • Minasaqr Port • RAK Maritime City (RMC) åAJMAN å - PORT

We are the exclusive Agent for GAZPROMNEFT Lubricants in United Arab Emirates. The range of the products we are dealing: 1. Commercial Vehicle Lubricants 2. Marine and Locomotive Diesel 3. Engine Oils 4. Gear Oils 5. Hydraulic Oils 6. Greases

åUMM å AL QUWAIN – PORT Our Fleet - Bunkering & Inland Supply: All of them are Brand New trucks with below Capacity: • 11road tankers of gasoil - 50 metric tons each. • 4 road tankers of fuel oil - 50 metric tons each • 9 Trucks for Inland / Retails supply 5 tons each.

Contact Us: Phone: +971 4 5577 668 Email: Bunkers@oilburg.com Address: Office 811, Burlington tower, Business Bay, Dubai, United Arab Emirates. www.oilburg.com

COMPANY NEWS

WAR ON WASTE Since 1993, EMEPCO has risen to the challenge of efficient disposal of oily water and slops

mirates Marine Environment Protection Company (EMEPCO) was established in 1993 with the aim of providing proper and efficient methods for the disposal of slops, oily water and waste oil to the various sections of the oil industry, particularly those involved in sea transportation. With a long-term agreement with the government of Fujairah, EMEPCO is today one of the prime companies providing slop reception facilities in the Port of Fujairah, Khorfakkan and various other ports in the United Arab Emirates (UAE), as stipulated in Marpol 73/78 Regulation 38 / Chapter 6/Annex 1.

located on the east coast of the UAE. EMEPCO’s strategic location in Fujairah, one of the world’s major oil tanker destinations, gives the marine industry an opportunity to deliver slops generated from the crude oil washing and tank washing of product tankers, etc, to a 24-hour reception facility.

This enables the vessels to comply with the zero oily water discharge restriction in the Gulfs Area, which is listed as a Marpol special area.

This was in response to the increasing demand for environmentally safe tank cleaning and disposal of oily water from product tankers in the anchorage of Fujairah,

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WORLD BUNKERING

SUMMER 2019... NOW OPEN FOR BOOKINGS

SUMMER 2019 SPECIAL FEATURES: Oil Majors The clock is ticking and the implementation of the 0.50% global sulphur cap is just months away. How are the oil majors responding? Will they be able to produce large volumes of blended low sulphur heavy fuel oil or will MGO to be the standard option?

Fuel Management Unless the ship uses a scrubber or burns LNG as fuel, effective fuel management will become more important than ever under the 0.50% sulphur limit. Owners need to be up to speed now on how to cope.

Scrubbers Late last year Singapore threw a massive spanner into the works when it announced it would not allow the use of open loop scrubbers within its waters after 1 January 2019. We examine the implications of this decision.

GEOGRAPHICAL FOCUS: Africa Our annuall survey of this diverse continent. We look at the key bunkering ports from the Cape to West and East Africa.

Middle East We examine how the 2020 sulphur deadline will impact on this key bunkering region. As always complex politics play their part in shaping the marine fuel market.

Indian Subcontinent Our annual survey of the marine fuel industries in Mauritius, Bangladesh, India and Pakistan. Whatâ&#x20AC;&#x2122;s new? What are the prospects for developing the regionâ&#x20AC;&#x2122;s bunker markets?

Regular Features Russian Update News, Views, Analysis Interview, Industry News, Environment, Testing, LNG, Lubricants, Innovation, Legal News, Equipment and Services, Diary Event Previews & Reviews

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ibia@constructivemedia.co.uk World Bunkering SPRING 2019

NEW MEMBERS INDIVIDUAL Charterer Anders Hjort Hauge Integrity Bulk Aps Denmark

Supplier Mohammed Kassim Gokal PT. Sulawesi Bunker Terminal Indonesia

Surveyor Tom Dingenen AYS Belgium

Storage, Agent Sander Smith Vopak Europort Terminal B.V. Netherlands

Service Christian Plum BunkerMetric IVS Denmark

Service, Surveyor Andreas Nektheden Johansen Bureau Veritas Norway

Trader, Broker Elie Wakim Med Petroleum DMCC (Dubai) Lebanon

Legal Maurizio Dardani DardaniStudio Legale - Law Firm Italy

Fianancial, Charterer Jette Jorgensen A/S Global Risk Management Ltd Denmark

Charterer Bianca Knight Western Bulk As Singapore

James Baker James Baker London

Oil Industry Major Albino Villegas Shell Marine Products USA United States of America

Supplier, Trader Marina Lykova NT Bunkering Cjsc Russia

Iain Mowet Wood Mackenzie United Kingdom

Legal Gina Panayiotou Michael Kyprianou & Co. LLC Cyprus

Service, Legal Mark Smith North of England P&I Association Ltd United Kingdom

CORPORATE Charterer Sean Warr Louis Dreyfus Company Singapore

Supplier, Trader Stanislas Violet Addax Energy Sa Switzerland

Supplier Angela Beyens United Bunkers BVBA Belgium

Supplier, Broker Brentford Nartey Tel Energy Limited Ghana

World Bunkering SPRING 2019

5 - 6 MARCH 2019

11 APRIL 2019

10TH IPTA/NAVIGATE CHEMICAL & PRODUCT TANKER CONFERENCE, LONDON

IBIA ASIA DINNER, SINGAPORE

The IPTA/Navigate Chemical & Product Tanker conference is now firmly established as the “must attend” global event for all those with an interest in this sector.

IBIA returns with a dynamic dinner at the luxurious Fullerton Hotel in Singapore. The IBIA Asia office will host around 200 people, both local and international IBIA members, offering an A-Class platform for networking opportunities. We are also proud to give out the IBIA Bursary of S$14,000 to assist students doing Marine Studies at the National Technology University (NTU).

Now in its tenth year, this event attracts owners and operators of the world’s fleet of chemical and product carrying tankers as well as shipbrokers, charterers, lawyers, insurers, regulators and equipment manufacturers from around the world. An intensive two days of learning, debate and discussion is punctuated with plenty of opportunity to meet and network with your industry peers over coffee, lunch or evening drinks. As ever, the conference agenda comprises a topical mix of commercial, practical and regulatory issues. Top quality speakers representing some of the sector’s best known companies and organisations have been invited to share their expertise and knowledge. The Chemical and Product Tanker conference is staged jointly by IPTA and Navigate https://cpt-conference.com/agenda/

11 - 12 APRIL 2019

EAST MED MARINE AND OIL & GAS EXHIBITION LIMASSOL, CYPRUS With over 100 exhibitors from all over the world, the East Med Marine and Oil & Gas Exhibition continues for the 9th time to provide a first class opportunity for the marine/offshore and oil & gas industries lead players and stakeholders to interact and to learn about important industry updates and technological advancements. This year, Bunkernet in partnership with IBIA will organize a half day Conference during the Exhibition, offering opportunities to further discuss the implications of the 2020 Sulphur Cap regulation.

25 - 27 MARCH 2019

11TH INTERNATIONAL FUJAIRAH BUNKERING & FUEL OIL FORUM. FUJAIRAH, UAE FUJCON 2019, to be held in Fujairah, UAE is the pre-eminent & most prestigious bunker forum for the Middle East bunker markets. The anchor event held during the Fujairah Bunkering Week, FUJCON attracts from over 50 countries covering the full supply chain of the bunkering industry. Under the theme New Horizons – The Future Fuel Landscape & IMO 2020 Solutions & Alternatives” FUJCON 2019 will continue to promote active dialogue between leading oil and bunker producers/ traders, shipowners, oil majors, terminal operators, port authorities, refiners, banks and classification societies, providing the latest industry insights on critical market movements, regulatory changes, fuel pricing and technical developments impacting the industry. www.fujcon.com

6 - 8 MAY 2019

THE INTERNATIONAL BUNKER CONFERENCE (IBC) OSLO, NORWAY The International Bunker Conference (IBC) has become a world renowned forum for the international bunker industry. The previous IBCs have focused on the industry milestones and challenges presented by MARPOL Annex VI. We are at the doorsteps of a paradigm shift in bunker fuels as we know it. Obtain an update on what’s happening in the bunker industry and meet old and new friends at this great networking arena. http://www.bunkerconference.com/

25 - 29 MARCH 2019 ARA WEEK CAPE TOWN SOUTH AFRICA

Join us in solving the challenges for the future of the African downstream oil industry. Meet with more than 500 key players of the North and Sub-Saharan African and International downstream oil industry all in one place. Join representatives from African refineries, government ministries, banks, regulators, importers, distributors, traders, storage companies, marketing companies and refinery equipment & technology suppliers. Listen to industry professionals talk about the latest trends and innovations in the industry. Share experiences with pan-African and international companies http://www.afrra.org/en/about

21 - 22 MAY 2019

MARITIME AND TRANSPORT LAW CONFERENCE: OPPORTUNITIES AND RISKS IN SHIPPING IN 2019, OSLO, NORWAY This conference, presented by the International Bar Association (IBA) Maritime and Transport Law Committee, is taking place at Oslo’s Grand Hotel. Topics include: Financing maritime ventures, Maritime insolvency and restructuring – offshore, IMO sulphur emissions limits – just around the corner, The new era of compliance in the shipping industry – anticorruption and sanctions, Marine insurance, Maritime claims against governments and Vessel scrapping – may she rest in peace (or pieces). https://www.ibanet.org/Conferences/conf955.aspx

World Bunkering SPRING 2019

28 - 30 MAY 2019

IBIA AFRICA CONFERENCE CAPE TOWN, SOUTH AFRICA

DIARY

The 4th IBIA Africa Conference is returning to Cape Town, South Africa where the first IBIA Africa Conference was held in 2015. This will include a full day of training and 2 days of conferencing where we will share vital information and unpack legislation post the IMO’s Marine Environment Projection Committees’ last meeting prior to the global sulphur cap taking effect. IBIA’s Director and IMO Representative, Unni Einemo, will be joined by international and local experts in fuels, shipping, port authorities and regulators in an engaging and much anticipated forum.

18 JUNE 2019

IBIA AND UK CHAMBER OF SHIPPING LONDON, UK IBIA and the UK Chamber of Shipping will join forces for a half day Conference at the premises of the UK Chamber Shipping in London to discuss the IMO 2020 Sulphur Cap, once-in-ageneration disruptor to shipping’s commercial environment. This timely event takes place less than six months before the new regulation takes effect and shortly after the IMO meeting where pending issues are expected to be finalized. The Conference will cover topics related to availability, enforcement, handling of new fuels, compliance, and safety issues, fuel disputes, scrubber installations and open loop discharges, and will help shipowners get up to speed on everything they need to know to ensure compliance with the regulation. It will also provide the opportunity to exchange views on challenges and how others are preparing.

10 - 13 SEPTEMBER 2019

IBIA CARIBBEAN CONFERENCE HOSTED BY THE MARITIME AUTHORITY OF JAMAICA MONTEGO BAY, JAMAICA The IBIA Caribbean Conference hosted by the Maritime Authority of Jamaica (MAJ) will be IBIA’s second conference in Caribbean in less than two years. Last year’s conference created tremendous value not only in relation to the bunkering industry, it also offered opportunities for a range of ancillary services to the global shipping industry, as Jamaica works to become a major maritime centre in the Caribbean. Prior to the Conference, IBIA will offer an educative platform to the local maritime stakeholders through the advanced Bunkering Training course. During the conference, the IBIA and MAJ partnership will create valuable opportunities for local and international players to interact and discuss future investments.

World Bunkering SPRING 2019

2019 IBIA EVENTS PROGRAMME FEBRUARY 13 - 14th 20 - 21st 25th 25th MARCH 6 - 7th 20 - 21st APRIL 10 - 11th 11 - 12th 11th 24 - 25th MAY 8 - 9th 22 - 23rd 28 - 30th 30th JUNE 12 - 13th 18th 26 - 27th JULY 10 - 11th 24 - 25th AUGUST 7 - 8th 21 - 22nd SEPTEMBER 4 - 5th 9 - 15th 25 - 26th OCTOBER 9 - 10th 22 - 24th 23 - 24th NOVEMBER 6 - 7th 20 - 21st DECEMBER 4 - 5th 18 - 19th

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) 2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) IBIA AGM, Grosvenor House Hotel IBIA Annual Gala Dinner 2019, Grosvenor House Hotel

Singapore, Asia Singapore, Asia London, UK London, UK

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015)

Singapore, Asia Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) East Med Marine and Oil & Gas Exhibition IBIA Asia Gala Dinner 2019 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015)

Singapore, Asia Limassol, Cyprus Singapore, Asia Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015) IBIA Africa Conference 2019 IBIA Africa AGM

Singapore, Asia Singapore, Asia Cape Town, South Africa Cape Town, South Africa

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) IBIA and UK Chamber of Shipping 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015)

Singapore, Asia London, UK Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015)

Singapore, Asia Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015)

Singapore, Asia Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) IBIA Conference Jamaica 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015)

Singapore, Asia Montego Bay, Jamaica Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) IBIA ANNUAL CONVENTION 2019 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015)

Singapore, Asia Istanbul, Turkey Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015)

Singapore, Asia Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015)

Singapore, Asia Singapore, Asia

2019 EVENTS IBIA SUPPORTS & WILL PARTICIPATE IN FEBRUARY 28th MARCH 5 - 6th 25 - 27th MAY 21 - 22nd JULY 22 - 23rd AUGUST 15 - 16th

IP Week: Marine fuels workshop – How are refiners responding to the IMO 2020 bunker fuel specification changes?

London, UK

10th IPTA/Navigate Chemical & Product Tanker Conference FUJCON

London, UK Fujairah, UAE

IBA Maritime and Transport Law Conference

Oslo, Norway

West African Ports & Rail Evolution

Lagos, Nigeria

African Ports Evolution

Durban, South Africa

*For more information about the training courses and events, please visit IBIA’s website www.ibia.net

World Bunkering SPRING 2019