World Bunkering Summer Issue 2018 by Constructive Media

Summer 2018

A NEW DAWN

THE WORLD OF BUNKERS IS HEADING FOR FUNDAMENTAL CHANGES

INSIDE THIS ISSUE: Oil majors eye LNG future News - BIMCOâ&#x20AC;&#x2122;s new terms Fuel management - all up in the cloud

THE ONLY OFFICIAL MAGAZINE OF

Shipping faces up to decarbonisation

his issue’s front cover refers, of course, to IMO’s commitment to eventually phasing out fuels that produce greenhouse gas (GHG) emissions. In our Environment pages deputy editor Unni Einemo gives a detailed report on the momentous IMO Marine Environment Protection Committee meeting that committed the global shipping industry to cut the total GHG emissions of the global shipping industry by at least 50% by 2050, compared to 2008. Unni is also IBIA’s representative at IMO and was in the thick of the discussions. 2050 may seem a very long way away but IMO agreed an efficiency goal, as an average for the sector, of a 40% improvement by 2030. That is only 12 years away and we are an industry that works on a lifespan of our main items of equipment - ships- of at least 20 years. A lot has got to change, and quickly. No wonder International Chamber of Shipping chairman Esben Poulsson commented just before World Bunkering went to press: “It’s important that governments recognise the enormity of what has been agreed by IMO. While the ultimate goal is zero emissions, a 50% total cut by 2050 is very ambitious indeed, especially when account is taken of current projections for trade growth.” Talking about a ‘new dawn’ is appropriate as the shipping industry is indeed entering a new era. There is no choice and in many ways the challenges are exciting and we are already seeing many innovative developments. The only way to approach these challenges is to adopt a positive attitude, and thankfully, that is what the main industry organisations, including of course IBIA, are doing. Nevertheless there will be massive challenges. Here at World Bunkering we toyed with an alternative concept for the front cover. It featured an illustration of a world with flames licking around it and headlines of ‘the heat is on’ and ‘the end of the world as we know it’.

World Bunkering Summer 2018

Being optimistic folk we decided against the apocalyptic option but it may well feel like nearly the end of the world for many in the industry for whom cutting GHG emissions is, right now, the least of their worries. Times are tough in the bunkering industry. Commercial relationships are changing with pressure piling up on brokers and traders. Some players are being squeezed out and there is huge uncertainty surrounding the implications of the impending 0.50% global sulphur cap. That 2020 deadline is focusing minds in the industry just now, and is an issue that crops up repeatedly in the pages of this issue. Poulsson has also been talking about the sulphur cap, noting: “While ICS fully supports the objectives of the IMO cap, the overnight introduction of this regulatory game-changer will have enormous implications for ship operations. It will be vital to get the implementation right.”

But, as ever, we cover many other stories, from our geographical reports on the Eastern Mediterranean and Indian sub-continent, to our packed Innovation and Equipment and Services pages. And, as if there’s not enough to worry about already, our Legal page includes a reminder of what can happen if your crew illegally discharges oil and garbage into US waters. This issue’s publication coincides with the massive Posidonia event in Athens. IBIA will be there in force and the team are keen to meet as many IBIA members as possible during this week packed with conferences and seminars. See you there.

He warns: “As well as concerns as to whether sufficient quantities of compliant low sulphur fuels will be available in every port, there are a number of complex practical issues which IMO needs to urgently resolve within the next 18 months if the unfair treatment of ships is to be avoided.” ICS says it is very concerned there could be serious compatibility and mechanical problems in the absence of agreed standards for new fuel blends that will be compliant with the 0.50% sulphur limit but which may differ in their composition from port to port. In our feature on the Oil Majors we find that there is indeed a lot of work going on to develop and introduce compliant blends to the market. But compatibility will continue to worry shipowners. Some will decide to cope with the cap by fitting scrubbers and others by switching to LNG for newbuildings, options covered in detail in their respective pages.

David Hughes Editor

Editor’s letter

A new dawn?

content

51 Pakistan Offering more choice

Chairman’s Letter

52-53

Cyprus Hoping for LNG

LNG Interest grows in LNG

Chief Executive’s Report

38-39

Greece Time to choose

Cyprus Hoping for LNG

IBIA Events Springing into summer

40-43

13 Asia Report Eventful spring in Singapore

15-19 Africa Event Report IBIA’s Africa Bunkering Conference, Tenerife

20-21 Jamaica Event Report Caribbean bunkering takes centre stage

22-23 Interview Clearing the air: the US approach

24-27

Russia Olga Bogacheva takes her regular look at the Russian bunkering scene

44 Oil Majors Getting ready for 2020

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 4th Floor 50 Liverpool Street London EC2M 4PR, UK Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 3865 Email: ibia@ibia.net Website: www.ibia.net

57 58-59

Equipment & Services “Next generation”

Lubricants Beating the cold

India Recovering from a bump in the road

Publisher & Designer: Constructive Media ibia@constructivemedia.co.uk

Bangladesh Updating the rules

Fuel Management Up in the cloud

30-33

Turkey Rosy picture

Legal Tanker master and owner convicted

IBIA events 2018 - 2019

34-35

Innovation Technology Assessment System Project

Environment The end of the world as we know it

Industry News RoRo EEDI “corrected”

60 Scrubbers Jockeying for position

61-63 Company News

New Members

Sri Lanka Varied fortunes for Sri Lankan ports

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.

Diary

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

Having been tasked with writing my first introductory letter as Chairman I now find myself beginning to come to terms with the idea that I have actually taken on the mantle of Chairman of IBIA rather than simply being the Chairman in waiting.

his realisation brings with it a myriad of feelings – a sense of excitement and exhilaration but also a degree of trepidation. It’s almost impossible to convey just how much of an honour and a privilege it is to be involved with IBIA let alone take on the role of chairman – it’s certainly not something I envisaged when I joined the board four years ago – and in looking to build on the hard work put in by Justin, the secretariat and the former Chairman, Robin Meech. It is here that the sense of trepidation begins to seep in. The efforts from Justin, his team, and Robin over the last year cannot be underestimated and have been instrumental in giving IBIA the position of strength it now occupies. The task now is not simply to maintain that position but to reinforce it to allow the association to grow. The responsibility of such as task is slightly unnerving, hence the trepidation, but thankfully it does not simply rest upon my shoulders – it lies with every single person involved with IBIA in any capacity – whether it is as a board member, a member of the secretariat, a member of a working group or any individual who has an interaction with IBIA through one of the many global events. We, as a collective, are stronger and can provide greater support and influence to the industry and the direction it takes moving forward. This influence is vital as it ensures we are not simply following the path that has been laid before us but allows us to have decisive input into the direction the path takes. In looking to continue with the significant steps that have been made during the last 12 months we are very fortunate in being able to welcome two new board members – Adrian Pask, Marine Account Manager – Europe & Africa for BP Oil International Limited and Nicolas Vukelja Duque, Maritime Advisors & Developers Inc. to provide fresh drive and impetus.

World Bunkering Summer 2018

We have also been very luck to retain the services of existing board members Nigel Draffin and Patrick Holloway who have both been re-elected to the board for a second term. However, as new members join the board we must also bid farewell to some existing board members who have completed their tenure and It is with great sadness that we see the departure of two long standing board members Eugenia Benavides – former Treasurer – and Robin Meech – former Chairman. It is no exaggeration to say that the time, effort and enthusiasm put in to IBIA both by Eugenia and Robin has been second to none and they have assured me that they remain fully at the disposal of the association whenever necessary – thank you Eugenia and Robin.

We also have to continue reinforcing the fact that IBIA is an international” organisation rather than the perceived idea of it being overly Euro-centric. The development of new IBIA branches outside Europe will ensure that the international ethos is perpetuated. IBIA, like other membership groups, is keen to see a significant increase in the membership base, as this will also increase the diversity of collective experience and knowledge. We are extremely keen to harness this diversity in a purely practical sense in looking at what we can do through our current working group structure and promoting future initiatives. So in short - IBIA NEEDS YOU! Together, we can achieve more.

So in looking to continue the good work that has already begun, what does the future hold for IBIA and the industry it represents? The obvious area of focus has to be 2020 given all of the continued speculation in relation to fuel options, availability, issues surrounding compliance and noncompliance as well as the short term and long term implications for the whole of the bunkering industry. We can’t possibly ignore the impact that 2020 will have on all stakeholders but we also have to take a wider view in that 2020 isn’t the only consideration within the industry. Such is the focus that has been placed on this one topic it is almost as though other day to day concerns are no longer important and have been bypassed. One of the core objectives for IBIA is to ensure that these issues are given the time and energy they require and in order to do so we need a greater degree of engagement from all members.

Michael Green Chairman

CHAIRMAN’S LETTER

STRONGER TOGETHER

When we talk about IBIA, we’re referring to the global network of members that is IBIA and not just the IBIA Secretariat or the IBIA Board of Directors. We’re talking about you and we’re talking about us

hat’s hundreds of individuals who are members in over eighty countries and thousands of people in the bunker industry and adjacent trades who are potential IBIA members and maybe even millions if we include the seafarers plying their trade on the vessels fuelled by our industry. Without bunkers those vessels aren’t going anywhere. Furthermore, for their employers, the ship owners and ship managers, many of whom are also our members , bunkers play an increasingly important role as they comprise at least 70% of the daily operating costs of most vessels. If, and when, bunker prices rise this ratio will also rise. It’s no wonder then, with the clock ticking down on 01.01.2020, that our industry is facing even greater scrutiny from a wider range of spectators than ever before. At IBIA, in addition to countless enquiries from members, we’re receiving interest from non-traditional sources such as hedge fund managers, investment bankers and a growing number of journalists hoping to learn more about the ramifications of this impending deadline. The recent MEPC 72 at the IMO in London attracted a great deal of attention with a particular interest in the greenhouse gas reduction targets and also on the debate surrounding the proposed carriage ban that will most likely come into effect in March 2020. With these hot topics being debated it was particularly pleasing to see how much time was also afforded to discussion on IBIA’s “Best practice guidance for suppliers for assuring the quality of bunkers delivered to ships” which was welcomed by many Member States. The IMO’s initial aim was to produce a trinity of such best practice guidance documents with regards to fuel quality: one for bunker purchasers/users; one for bunker suppliers; and one for Member States/coastal States. IBIA proposed that our paper could form the base document for one of these three IMO best practice guidance documents. World Bunkering Summer 2018

There was broad consensus that this was desirable and that IBIA’s document should form the basis for developing the IMO guidance for suppliers. For global businesses, the operational costs, the investments required and the reputational risks seem to be growing exponentially. Although it’s a different business, it’s difficult not to draw parallels between today’s headlines on Volkswagen’s diesel emissions-cheating scandal and how those who do not comply with IMO regulations post-2020 may be perceived and treated. Whether unlawful emissions stem from cars or ships, it’s clear that authorities like the US Environmental Protection Agency will take a dim view, and the expectations of how businesses should behave continue to rise. Our membership base comprises companies ranging from one or two employees to those with tens of thousands of employees and they are all likely to be affected in some way by these changes in our industry. At IBIA we recognise the need to develop pragmatic solutions that accommodate every scale and type of business. During the second quarter of 2018, IBIA will issue its Code of Ethics which will form part of our IBIA Guide to Best Ethical Practice. This is simply the first step in addressing a need our members have identified as being of key importance to the industry. In order to engage our members and industry stakeholders in a meaningful way we intend to arrange a series of workshops around the world with the intention of bringing this Code of Ethics to life and making it relevant to your daily lives. Following the workshops we will publish a series of White Papers offering some insights into the way that your peers have successfully tackled ethical challenges.

The full schedule of locations and dates has not been agreed yet but we will be holding a Workshop in Copenhagen on 6 November 2018 prior to our IBIA Annual Convention. On the same day we will also be holding a Workshop on compliance with and the enforcement of the global sulphur cap. It’s our belief that by bringing the key stakeholders together in the same forum we can play a role in ensuring that compliance is managed in a globally consistent manner. Presently, there is a great disparity in the degree of experience among port States when it comes to enforcement with only about 30 of the 90 signatories to MARPOL Annex VI having any practical experience. We hope that forums like ours will promote greater dialogue where experience and lessons learned can be shared for the mutual benefit of all. The future may be uncertain but we can shape that future if we choose to do so. Our industry comprises thousands of views and opinions but what seems clear to me is that we all want “A Clean Industry and a Cleaner World”. At IBIA, we’re working with all of you to achieve this aim.

Justin Murphy Email: justin.murphy@ibia.net Tel +44 20 3397 3850 9

chief executive’s report

A CLEAN INDUSTRY AND A CLEANER WORLD

Unit No. 3406

IBIA EVENTS

SPRINGING INTO SUMMER

IBIA’s global footprint has been evident this spring with involvement in events held in Asia, Africa, the Americas and Europe. As spring turns to summer, IBIA heads to South Europe’s shipping capital

his has been an eventful spring for IBIA. Hot on the heels of our prestigious Annual Dinner held at the start of IP Week in London in February, we had a packed events schedule during the months of March and April. Our Asia branch, together with the Asia Pacific Maritime Conference and Exhibitions (APM) organised a bunker symposium, held 15 March. Our Singapore-based office also held the annual IBIA Asia gala dinner on 26 April, where we were honoured that the Maritime and Port Authority decided to announce an important development. You can read more about these two events in the IBIA Asia report on page 13. Later in March, we held the third IBIA Africa bunkering conference in a new geographic region. “IBIA’s Africa Bunkering Conference” was hosted by Ports of Tenerife and took place from 20 – 22 March, attracting 100 international and regional attendees. More about this in the Africa Regional Manager’s report on page 16.

During the same week as our Jamaica event, IBIA was also well represented at the world’s longest running bunker conference; the International Bunker Conference which is now in its 39th year. IBIA provided an update on the work undertaken by the IMO to ensure consistent implementation of the 2020 sulphur limit, which was apt for the “Sailing into Changing waters, how do we adapt?” theme for IBC 39. As this issue goes to print, the agenda has been fixed for a one-day conference jointly organised with BMS United in Greece. “What’s Next? A glance into the Future of Shipping” will take place in Athens, at the Benaki Museum, on 30 May in the week before Posidonia, one of the world’s largest Shipping exhibitions. It looks set to be an interesting selection of topics. For those that are relatively new to the industry, we offer the opportunity to learn about a whole raft of topics from industry veteran Nigel Draffin, founding IBIA member and renowned author of several books on bunkering.

He will be leading an IBIA training event in Athens on 29 May, the day before the conference, at the Piraeus Marine Club. This summer we will be busy preparing for our Annual Convention, which will take place on November 6 to 8 in Copenhagen, the wonderful capital of Denmark. We are already looking forward to the gala dinner in Tivoli Gardens, Copenhagen’s iconic theme park right in the heart of the city. There will be fireworks! Apart from a timely and relevant Convention programme, we also intend to invite IBIA members to Workshops to examine two hot and closely related industry issues: compliance with sulphur regulations and ethics in the bunker industry. We think Copenhagen - where the industry and authorities have many years of experience with low sulphur limits and the bunker industry has come under intense scrutiny - is an ideal place for IBIA’s members to convene to talk about these issues, which have global relevance. We look forward to seeing IBIA members from all over the world convene in Copenhagen for our annual event in November.

Moving west, IBIA was invited to speak at Connecticut Maritime Association conference in Stamford, Connecticut on the US east coast on 14 March. The CMA Bunker Session: 2020 – Making sense of it all, examined the key issues raised by the International Maritime Organization’s global 0.50% sulphur cap, a subject IBIA is heavily invested in. Staying in the Americas, we were proud to partner with the Maritime Authority of Jamaica (MAJ) to organise two-day conference and training session at the Hyatt Ziva Hotel Montego Bay from April 17-19. The inaugural IBIA Caribbean Bunker Conference received fantastic support from the relevant policy makers and we’re sharing some news and pictures with you in the event report on page 20.

World Bunkering Summer 2018

iStock

Asia Report Panel debate at the Bunker Symposium held during APM

EVENTFUL SPRING IN SINGAPORE

During March and April, the IBIA Asia office organised a Bunker Symposium and held the annual IBIA Asia gala dinner, where the MPA made an important announcement about expanding mandatory use of MFM to distillate deliveries

lanning and preparing for two events featured large for IBIA Asia during the first quarter of 2018. The first was a Bunker Symposium during the Asia Pacific Maritime Conference and Exhibitions (APM), which was held on 14 – 16 March 2018. IBIA together with APM hosted a half day bunker symposium on the morning of 15 March. Attendance was good with about 150 participants. The symposium was moderated by Timothy Cosulich, Chief Executive Officer of Fratelli Cosulich who is the current IBIA Asia Exco Chairman. It featured two sessions, the first focusing on the IMO 2020 sulphur regulation. Ashley Noronha, Regional Commercial Operations Manager Asia Pacific at Teekay Tankers, touched on the ship owner’s response and challenges in preparing for the 2020 deadline. Peter Beekhuis, Regional Trading Head of Asia, Middle East and Australia at Maersk Oil Trading Singapore Pte Ltd spoke about price and avails come 2020. Yoon Jang Yong, Bureau Veritas Marine (Singapore) Pte Ltd spoke about scrubbers and Capt. Rahul Choudhuri, Veritas Petroleum Services (Asia) spoke about fuel quality and quantity and the challenges from a fuel testing and inspection agency perspective. In the second session, Elfian Harun (Asst. Director) Maritime and Port Authority of Singapore (MPA) spoke about post implementation challenges with Mass Flow Meters and the regulatory framework. World Bunkering Summer 2018

Danny Chua, Senior Partner of Joseph Tan Jude Benny LLP, spoke about how cross border insolvency, such as the Hanjin case, affects judicial recognition and payment claims. IBIA Asia hosted its annual Singapore gala dinner on Thursday, 26 April 2018 at Goodwood Park Hotel, Singapore, in conjunction with ‘Singapore Maritime Week 2018’. The IBIA Asia Gala Dinner has been a part of the Singapore Maritime Week’s social event for the past years and regularly attracts about 200 maritime and bunkering industry professionals from around the region. This year was no exception with 205 confirmed guests.

said Capt Segar, adding that the industry has given positive feedback since MFMs were made mandatory during marine fuel oil deliveries. He then announced that tests on MFMs for distillates had been successful, and hence their mandatory use will be expanded to distillate deliveries. IBIA supports the MPA’s efforts in ensuring that the integrity of MFMs in Singapore is protected by effective enforcement, and is proud to support the industry with our MPA-endorsed training course on MFM for bunker cargo officers and surveyors.

We were honoured that the MPA decided to announce an important development during our dinner, namely that from 1 July 2019, mass flow meters (MFMs) will be required for all distillate bunker deliveries to international ships. “I would like to begin by expressing my appreciation for IBIA and the strong support they have shown us over the years. The numerous initiatives that IBIA runs, including their training courses, symposiums and annual conventions, have been invaluable for fostering strong ties within the bunkering community,” Capt M Segar, Assistant Chief Executive (Operations) at MPA said during our gala dinner. “The use of MFM systems enhances transparency in the bunkering process, improves operational efficiency and increases the productivity of the entire industry,”

Capt Segar addressing guests at the IBIA Asia gala dinner

ibia@ibia.net Telephone: +44 (0) 20 3397 3850.

rs fees IA Membe

: £250 embership 1,250 m l a u id iv Ind hip: £ members Corporate ry 2018, m 1 Februa o fr ct e ff e that with d. Please note ve increase hip fees ha rs e b m e m IBIA ese nts about th s or comme e ri e t u e q y .n n a ibia If you have ntact ibia@ en please co th 50. 8 s, e 3 g 7 n 9 a ch ) 20 33 (0 4 4 + : e or telephon

New m

emb

ers pending non-memb r 0 or £80 de 6 £ , 5 4 red to buye Please note £ g ne are offe zi nds Sterlin a u g o a P f m o e st th at a co e copies of ls. ditional fre their vesse to g in Up to 20 ad rd a rw fo r fo f IBIA members o and w website embers M n to our ne o f g o t lo n is se g L a IBIA is desi ed ct, ple ew website re not corre n a s e il Th ta e e. d g r a rmation. If you bers p eir own info n your mem th o e g m n e a th ch te upda ccess and ers. can easily a IBIA memb so members vailable to a ly n o is n tio This publica

Blendin to In-Line f charge to

ee o Available fr

members

esolving ing and R id o v A to IBIA Guide tes e report free, but th pu y is p D co r l a e n k o n Bu their pers ers receive at £50. IBIA memb n-members o n to le sa r is offered fo

er b

ene

fits

Mul t year iple yea s me r dis – Gu mbe coun a t the rantee rship, (P s 15% d next no m aid in iscou 3 ye e ars. mbersh one in nt for 3 Fur ip in stalm is av ther inf crea e aila orm ses f nt) atio ble o r on o n o ur w n me ebs mbe ite r be nefi ts

gazine – kering Ma n u B d rl o e magazine of IBIA IBIA W Members bscribe to th r su fo to s d . e ie st p e o u free c on location are req

IBIA Guide

•

Evaluate the Merits of a Bunker Claim Interpretation of specifications for bunker fuels and a guide to the question of repeatability. For sale to non-members at £35.

IBIA Glossary of Bunker and Lubricating Oil Terminology A comprehensive guide to all those complicated terms that are in daily use in the bunkering industry. For sale to non-members at £45.

IBIA Guide to Good Commercial Practice On sale to non-members at £50 per copy.

IBIA Safety Cards for vessels’ crews IBIA buyer members receive copies of the IBIA Safety Cards for distribution to their ships, giving basic, plain English advice about safe handling of bunker fuels. 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.

IBIA Logo Free bromide supplied for use by corporate members only.

World Bunkering AUTUMN 2016

Ports of Tenerife

IBIA’s Africa Bunkering Conference Thank you from Tenerife

enerife emerges as an important European hub for bunkering supply in this area of the mid-Atlantic, located only a few miles off the West Coast of Africa and in the middle of the main shipping routes. The IBIA’s Africa Bunkering Conference helped us to increase the awareness of Tenerife and provided a great opportunity to explain the advantages of our well sheltered anchorage area and our commitment to develop the bunkering operations. For this purpose, attractive discounts off the ship tax of up to 40% for bunkering only operations have been fully approved, being possible to be increased depending on the activity and the certificates provided. In this line, our vision is to promote the switch to more environmentally friendly types of fuel and make easier for ships to meet the requirements as per the new 2020 IMO regulations. A regasification plant is planned to be built in the Southern part of the island, close to the new developed and already operational port of Granadilla, providing nearly 150.000 m3 of LNG storage. This timely Conference offered attendees a great opportunity to learn about the latest developments on LNG and put the focus on strategic projects such as PelicanGas and CoreLNGas hive, in which this Port Authority makes a leading part.

World Bunkering Summer 2018

Apart from the points mentioned above, Tenerife have good qualities to become a strategic spot for bunkering supply: it has the only refinery in the area and counts with multiple suppliers. If compared with the previous year, it also have witnessed a visible increase in container and cruise traffics, and have become a key technical stopover for the offshore industry. All these figures have lead to a growth in bunkering supply, thanks to the aforementioned captive traffic or thanks to its importance as port of call.

which in exchange could benefit from a special fiscal regime approved by the European Commission and enjoy a reduced tax scheme.

It’s important to say that more than 600 vessels pass through yearly without making any calls in our ports, and there is a potential to grow. The Port Authority of Santa Cruz de Tenerife is working hard alongside the local Port Community to make this happen and attract investment,

Airam Díaz Pastor Commercial Director Port Authority of Santa Cruz de Tenerife

We would like to thank IBIA, sponsors, speakers, attendees and in summary everyone involved in turning this Conference into a noticeable success, and invite you to join us in Tenerife next time! Again, I am extremely grateful to everyone for their help. I appreciate all of it and wish everyone good luck and much success.

EVENT REPORT: IBIA’s Africa Bunkering Conference, Tenerife

Panel discussion. ©Nigel Draffin

DEVELOPMENTS AFOOT The main focus of IBIA Africa this spring was our third Africa Bunkering Conference. Regional manager Tahra Sergeant also notes developments in South Africa’s bunker sector

BIA’s Africa Bunkering Conference was held in in Tenerife from 20 to 22 March this year, hosted by Ports of Tenerife. With some 100 international and regional attendees, the conference was opened by Ports of Tenerife’s Commercial Director, Airam Díaz, and IBIA’s Chief Executive Officer Justin Murphy. Delegates participated in panel discussions with industry experts on the IMO 2020 global sulphur cap, learnt about Tenerife’s future in LNG, gained insight into growth opportunities in Africa and heard from major ship owners on their plans for technology and fuel strategies. In addition to this IBIA offered our industry-leading training course lead by Nigel Draffin, where 18 mature students were engaged in the developments of new fuels and technology along with the current needs within the bunker market. Our delegates also enjoyed a tour of two of Tenerife’s ports, local wine tasting and a spectacular gala dinner!

Tenerife has approved attractive discounts off the ship tax of up to 40% for bunkering only operations, and it is possible that this will be increased up to 75% or even 98% depending on the activity and the certificates provided regarding quality and/or environmental friendliness. “In this line, our vision is to promote the switch to more environmentally friendly types of fuel and make easier for ships to meet the requirements as per the new 2020 IMO regulations,” according to Díaz.

Special mention needs to be made of our sponsors: Peninsula Petroleum, Maurilog, Ports and Logistics Advisory, Alphaship, Why Tenerife, Cepsa and Procexca. We would also like to thank our past Chairman, Robin Meech for his contribution as speaker and Chair of the conference.

The Ports of Tenerife says it is emerging as an important hub for bunkering supply in this area of the mid-Atlantic, located only a few miles off the West Coast of Africa and close to Europe. “This event helped Ports of Tenerife to increase the awareness of Tenerife and provided a great opportunity to explain the advantages of our well sheltered anchorage area and our commitment to develop the bunkering operations,” our conference host said. Course Director, Nigel Draffin presenting to the Bunker Course attendees. ©Nigel Draffin

World Bunkering Summer 2018

Nigel Draffin, Technical Consultant, Lecturer, Author and Board Member, IBIA ; J.Rafael Díaz Hernández, Director Port of Tenerife; Juan Carbayo Puig, Business Development Responsible, Cepsa Gas Comercializadora. ©Nigel Draffin

Juan Carbayo Puig, Business Development Responsible, Cepsa Gas Comercializadora. ©Nigel Draffin

World Bunkering Summer 2018

Juan Berenguer, Bunker Trader, Africa, CEPSA. ©Nigel Draffin

Panel discussion. ©Nigel Draffin

EVENT REPORT: IBIA’s Africa Bunkering Conference, Tenerife

Successful graduates of the one day Bunker Training Course 2018 in Tenerife, Spain. ©Nigel Draffin

EVENT REPORT: IBIA’s Africa Bunkering Conference, Tenerife

Tom Washington, S&P Global., Platts. Robin Meech, Managing Director, Marine and Energy Consulting and Immediate Past Chairman, IBIA. Michael Green , Global Technical Manager, Intertek ShipCare and Chairman, IBIA. ©Nigel Draffin

Robin Meech, Managing Director, Marine and Energy Consulting and Immediate Past Chairman, IBIA. ©Nigel Draffin

Robin Meech, Managing Director, Marine and Energy Consulting and Chairman, IBIA, Justin Murphy, Chief Executive Officer , IBIA, Airam Diaz Pastor, Commercial Director, Ports of Tenerife, Nigel Draffin, Technical Consultant, Lecturer, Author and Board Member, IBIA. ©Nigel Draffin

Delegates in the room. ©Nigel Draffin

Networking lunch. ©Nigel Draffin

World Bunkering Summer 2018

WOESA Investment Holdings is a broadbased women empowerment company with more than 1000 shareholders, while Linsen Nambi is a 100% black owned and managed shipbroking firm.

Russell Burns, CEO Unicorn Bunker Services (Pty) Ltd said: “This transaction supports the government’s agenda of transformation and as a company we are honoured to be part of the process of skills transferal and improving the transformation profile of the South African maritime industry.” Unicorn Bunker Services was first established in 2006 and operates three modern bunker tankers in the ports of Durban and Cape Town under contract to BP, Engen and Chevron. In other news, South Africa’s first coastal bunker barge, the BP-owned Amber II, is now operational in Richards Bay. The 6,000 tonne, 105-metre-long vessel is serving as a floating storage and fuel replenishment vessel and makes deliveries on behalf of BP at the Port of Richards Bay, the Zululand Observer reports.

The barge supplies marine fuel oil and marine gas oil (MGO) at rates up to 550 litres per hour, with a barge capacity of 5,700 litres for fuel oil and 800 litres for MGO. The new barge has improved bunkering services for vessels calling at the port which was previously limited to just one bunkering vessel, the bunker barge Smit Energy, which is operated by African Marine Solutions (AMSOL). AMSOL also handles the logistics and scheduling for Amber II. Coming up: We will be hosting a half day forum, AGM and Networking evening on Thursday, 16 August 2018 - if you want more information, see contact details below.

Tahra Sergeant, IBIA Regional Manager, Africa Tel: +27 21 412 1593 Email: tahra.sergeant@ibia.net

Delegates in the room. ©Nigel Draffin

World Bunkering Summer 2018

Africa Report

News from South Africa JSE-listed logistics company Grindrod has announced the sale of its Bunker Division, Unicorn Bunker Services (Pty) Ltd to Services to Women in Oil and Energy South Africa (WOESA) and Linsen Nambi. The conclusion of this deal has facilitated the participation of black women and black youth in the maritime sector and created the first 100% black shipowners in the country, Grindrod said in a press release, adding: “Grindrod are proud to be part of this historic achievement.”

EVENT REPORT

IBIA Bunkering Training with Nigel Draffin

CARIBBEAN BUNKERING TAKES CENTRE STAGE

We could not have asked for a better partner than the Maritime Authority of Jamaica (MAJ) to host the inaugural IBIA Caribbean Bunker Conference

amaica is looking to take advantage of its strategic location on international shipping routes to develop its maritime sector. From April 17 to 19, maritime professionals gathered at the Hyatt Ziva Hotel in Montego Bay to learn, discuss and interact with local, regional and overseas players focusing on the topics, challenges and opportunities of the bunkering industry.

promoting Jamaica as a serious bunkering location; and providing networking opportunities to sector interests. Dr the Hon Andrew Wheatley, Minister of Science, Energy and Technology, provided the keynote address at the opening ceremony. “The conference is of tremendous value not only in relation to our bunkering industry,

but also in terms of the unparalleled opportunities for the establishment of a range of ancillary services to the global shipping industry as we move towards making Jamaica a major maritime centre in the Caribbean. Jamaica will always be an ideal location for shipping and increasingly, we are becoming a significant location for bunkering,” he was quoted saying.

It was a great success, with record attendance for the IBIA bunkering course led by Nigel Draffin, and a solid turnout for the two-day conference programme that heard keynote speeches from two government ministers. But don’t take our word for it! Local press has been carrying high praise for the event, citing MAJ Director General, Rear Admiral (Retired) Peter Brady highlighting the “opportunity for local stakeholders to network and interact with overseas players” and to showcase Jamaica’s maritime industry, its plans and future prospects with a view to attracting further investments. MAJ Director for Legal Affairs, Bertrand Smith, was quoted in local press saying that the conference was held in Jamaica to educate maritime stakeholders on legislative changes for the industry;

Rear Admiral Peter Brady with Justin Murphy and Dr. The Hon. Andrew Wheatley (Minister of Science, Energy and Technology)

World Bunkering Summer 2018

EVENT REPORT Speakers at the conference included Nicolas Vukelja, Carls Von Lindeman, Don Gittens Jampro, Dr. Eric Deans

Minister of Transport and Mining the Hon Robert Montague, addressing a gala dinner during the conference, also spoke about Jamaica’s potential to benefit from the generation of job opportunities and increased economic activity if the country grows its share of vessels passing through the Panama Canal and bunkering in Jamaica to 10%. He hailed the partnership with IBIA in the staging of the conference,

and the Jamaica Gleaner said a joint conference between the MAJ and IBIA has proven to be an excellent fit. We couldn’t agree more, therefore IBIA has accepted MAJ’s proposal to return to Jamaica in 2019 and we look forward to working together again. “The high level of support received for this event was overwhelming and reflects the growing importance of Jamaica and the wider Caribbean bunker markets,”

says IBIA’s Chief Executive Officer Justin Murphy. IBIA would like to extend its thanks to the event hosts the Maritime Authority of Jamaica, along with our Platinum sponsors Aegean and West Indies Petroleum, Gold sponsors Petrojam and New Fortress Energy, Bronze sponsor The Port Authority of Jamaica, sponsors Petrotec and Portside Petroleum and the training sponsor; the Caribbean Maritime University.

Tour of Ports in Jamaica

World Bunkering Summer 2018

interview

CLEARING tHE AIR: THE US APPROACH Jeffrey Lantz is Director for Commercial Regulations and Standards for the US Coast Guard and is very well known at the IMO. We caught up with him during MEPC 72 to talk about the US take on enforcing current and upcoming emission regulations

effrey Lantz first took part in an IMO meeting in 1983 and has been a regular since 2000. Since 2006, he has been head of the US delegation at both the Marine Environment Protection Committee and the Maritime Safety Committee and he served as Chairman of Council, the IMO’s highest decision-making organ, from 2010 to 2018. He kindly agreed to do an interview for World Bunkering with Unni Einemo, who is IBIA’s IMO Representative. UE: During your time representing the US at MEPC and MSC, we have seen some major regulatory changes affecting marine fuels, in particular the 2008 revision of MARPOL Annex VI which brought us the 0.10% emission control area (ECA) limit and 0.50% outside ECAs from 2020. Do you think there are any further major revisions to come in the future, and would the US be pushing for it? JL: I think 0.10% is pretty low so I don’t see an imminent push for something more stringent.

UE: How is the ECA enforced in the US, is it mainly document checks on ships and are all ships subjected to it? How about testing of fuel samples, does that take place much? JL: Annex VI document checks are done as part of a normal port state control (PSC) visit and we try to visit every ship calling at the US at least once a year. We get around 10,000 individual vessels each year and we do some 9,500 MAROL Annex VI document checks. Testing of fuel samples would generally only take place if we have evidence to indicate a violation, then we would look deeper. UE: So if the paperwork is in order, what would make you suspect a violation? JL: Additional information such as a crew member pulling us aside and telling us or through information uncovered during the exam. A true whistle-blower can get a share of financial penalties given, but these are really only notable in big environmental crime cases. I’m not aware of this happening around air emissions, yet, but it could happen.

UE: Are you aware of any more ECAs in the pipeline? JL: I’m not aware of any ECA applications but there are always rumours. China is reportedly doing something locally in some ports, and Japan has been rumoured to be considering an ECA but I don’t think they pulled the trigger. I think the Mediterranean is a ripe candidate, however the issue being the differences between the southern and the northern Mediterranean.

UE: Have ships been penalised for MARPOL Annex VI non-compliance in the US? JL: Yes. I’m not sure about specific penalties, but we have issued violations. Our database shows 83 deficiencies over the course of three years and we have in the past detained some vessels for non-compliance, but in general I would say that 83 aren’t many and from what we have seen Annex VI compliance is quite good in the US.

UE: Do you think some of the areas considering ECAs might delay to see whether the 0.50% global cap is ‘good enough’? JL: That’s a good question. I really think it comes down to local air quality issues. Possibly 0.50% might do it – it should help. Perhaps NOx is more of a local issue than SOx and so we could get more NOx ECAs in the future.

UE: When the North American ECA first took effect in August 2012 the sulphur limit was 1.00% and you saw quite a few fuel oil non-availability reports (FONARs) in the initial period (750 in the first 9 months). Do you see many FONARs now? Do you see much evidence that FONARs are abused? What safeguards are in place to prevent abuse?

JL: We get about 66 cases a year now. I think ship operators found out that having a FONAR may mitigate a penalty but it doesn’t get them out of having a deficiency as the ship is still noncompliant. This has an impact on port state control as it may increases the chances of the ship being inspected more frequently. In the US, it is up to the EPA to prosecute violations. Since some companies were subpoenaed [in early 2014] the situation has improved a lot. We think compliance in the US is pretty good; 66 cases per year out of 10,000 vessels is a pretty small percentage. I don’t believe we are seeing repeat patterns; they are more oneoffs, whereas the companies that were subpoenaed were repeat submitters of FONARs who may have thought it could get them out of needing to comply. UE: Come 2020 the global sulphur limit outside ECAs drops to 0.50% limit and we will also have a ban on carriage of such fuels on ships without abatement technology. To what extent, and how, can we expect the US to enforce the global limit and the carriage ban? JL: Well first we see if they have the right fuel on board by checking records and logs. If we find a discrepancy we will be obligated to report to the flag state because unless they’re violating our ECA it is probably outside our jurisdiction. But should there be discrepancies in their logs [or other documentation] then that may bring them under our jurisdiction. If we see a ship carrying fuel above 0.50% we would certainly give them a deficiency as they would be in violation of MARPOL, however we haven’t developed the full policy for how to deal with the carriage ban [which is not yet adopted]. We have a fairly robust enforcement scheme so for us the carriage ban would be another element to check for. As always, don’t come to the US with falsified documentation. If you are going to be in non-compliance, please, don’t try to hide it or falsify documentation. World Bunkering Summer 2018

UE: Does the US take any actions w.r.t. ensuring bunker suppliers comply with MARPOL Annex VI? Has there, for example, been cases of penalising bunker suppliers in the US for delivering fuel that is off-spec for sulphur? JL: Annex VI does not require fuel standards on suppliers, but the US has adopted some domestic standards to aid in the implementation of the Annex VI standards for vessels. The US also has national fuel sulphur limits that apply to marine fuel sold in the United States. These are enforced by EPA. The EPA also follows up on notices of protest with respect to US marine fuel providers. To date there have been no actions with penalties assessed. UE: How do you think the world will cope with the 0.50% sulphur cap in 2020? Do you expect smooth sailing? JL: I suspect a number of ships will be caught out with non-compliant fuel initially and because nobody will want to take it back, the ship probably will end up burning it. There will almost certainly be areas of non-availability as markets will have to adjust the supply chain and I think there will be a period of unsettlement before it sorts itself out. UE: How long do you think that period will be? JL: That’s a good one! Hopefully short, but probably more than a couple months. There can be no excusing the violations that occur, but any action taken against violations should be proportionate. Some judgement will be required. I like to think the US has a good record for demonstrating such judgment. UE: What are your main concerns about the 2020 sulphur limit?

World Bunkering Summer 2018

JL: I’m worried that some countries won’t be strong enough when enforcing compliance, leaving industry with uncertainty due to lacking and inconsistent enforcement. Resources may be an issue for some countries, and for others, it may not be a priority. UE: Do you see big roles for technology or alternative fuels for ships to meet regulations? JL: Yes. I think LNG could be a gamechanger, and scrubbers will have a role. Both are easier to accommodate on newbuilds rather than retrofit. The negative against scrubbers is the open loop systems and it may not take long before countries start cracking down on them as they don’t want a fuel air emissions issue to become a water pollution issue. Also, who’s going to take the scrubber residues? Reception facilities probably will not be everywhere. UE: Reducing GHG is the ‘next big thing’ affecting shipping and fuel consumption. How do you see the pathway ahead on this? How soon do you think IMO will adopt concrete measures beyond improving energy efficiency through the EEDI, and what might they be? JL: IMO has been working for years to enhance the energy efficiency of international shipping. The United States stands behind the three-step approach for further energy efficiency measures as a credible, evidence-based way forward. This three-step approach includes: first, data collection on the technical and operational energy efficiency of ships; second, analysis of that data; and third, an evidence-based decision on whether further measures are needed to enhance the energy efficiency of the international shipping sector. As the international community continues to move forward at IMO, it is important to remember that any program must recognise the importance of technological innovation; respect IMO’s non-discriminatory and non-differentiated approach to regulating the international shipping sector; and not place overly burdensome constraints on the shipping sector’s future.

UE: Unfortunately, the drive to clean up ship emissions to improve air quality has a negative trade-off w.r.t. GHG emission. What’s your view on this? JL: Yes, that is an issue. It’s well known that NOx reduction does the opposite of improving efficiency. As for SOx and CO2, I think that shore-side may have a better ability to capture and clean emissions than ships so I think this could allow for a change in technology and fuel for shipping. Essentially, shipping will have to cease being the world’s incinerator of residual fuel. UE: What is your impression of the bunker supply industry? How can its reputation be improved? JL: Ultimately it needs much more transparency – people need to know what’s being put into the fuel, what is being used as blend stocks. I don’t know much about it but you hear all kinds of rumours and speculation. It could get worse with the 0.50% global sulphur cap as suppliers will look to develop blends. UE: Finally Jeff, what do you think of IBIA? JL: I don’t know that I know enough to have a complete view but what view I have certainly isn’t bad – I only know IBIA from the IMO. I think IBIA brings information that we all need to take account of, but you are representing an industry that some may say is a bit dodgy. I think that, if we had more knowledge about the maritime fuel business we could get better decisions both from regulators and from business and IBIA can help us in that regard.

Jeffrey Lantz

interview

UE: Do you expect the IMO to develop a US-style FONAR for dealing with potential shortages of compliant fuel globally in 2020? What can we learn from the US in this area? JL: If they do, I hope it will be similar – we can certainly provide information on experience we’ve had with fuel non-availability.

ENVIRONMENT

iStock

THE END OF THE WORLD AS WE KNOW IT

The world of bunkers is heading for rapid and fundamental changes, and not just because of the 0,50% sulphur cap in 2020. While IMO and stakeholders are working hard to deal with this unprecedented global fuel specification change, discussions have moved on to just how soon we should phase out the use of fossil fuels altogether, Unni Einemo reports

y the time you read this, the key outcomes of the 72nd session of the Marine Environment Protection Committee will have been well publicised, but not necessarily well understood. Misunderstandings have been rife with regards to what the approval of a carriage ban of fuel oil exceeding 0.50% sulphur actually means. Has it changed anything? And what does it mean if the IMO agrees to ban the use and carriage of heavy fuel oil (HFO) as bunkers in the Arctic? And how on earth can we cut CO2 emissions from global shipping by at least 50% by 2050 to keep the world safe from catastrophic climate change?

January 1, 2020, only ships with an approved “equivalent arrangement” such as scrubbers are allowed to use high sulphur fuel oil (HSFO) and from March 1, 2020 they will also be the only ships allowed to keep HSFO in their bunker tanks.

Carriage ban set for adoption As expected, MEPC 72 agreed to amendments to MARPOL Annex VI to prohibit the carriage of bunkers above 0.50% sulphur in bunker tanks on ships. It is set for adoption at MEPC 73, which should allow it to take effect on 1 March, 2020. The intention of this regulatory change is clear and simple, but has lent itself to a surprising amount of misinterpretation.

Another common misunderstanding is that the carriage ban could prevent ships with scrubbers from carrying HSFO, or for ships to carry it as cargo. Neither is true, but it’s easy to see how semantics could give rise to such beliefs. Part of the problem is that MARPOL Annex VI is split into separate parts which are interlinked, but the links between them aren’t explicitly spelled out. The one we know best is Regulation 14, which, following the amendment to include a carriage ban, should read as follows from 1 March 2020: “The sulphur content of fuel oil used or carried for use on board a ship shall not exceed 0.50% m/m.”

The only thing that has actually changed is that the text of MARPOL Annex VI now prohibits not just the use of bunkers above 0.50% sulphur content, but also makes it an offence for ships to carry it in their fuel tanks. Nothing else is new. From

Strangely, some think the carriage ban means all ships, even those without scrubbers, can carry on buying and using HSFO until 1 March 2020. The reality, however, is that while all ships can still legally carry it until 1 March 2020, seeing as they are not allowed to use it after January 1, why would they?

Other parts of MARPOL Annex VI deal with the exemptions from this general requirement. Scrubbers are allowed under Regulation 4 on equivalent means of compliance. Any ship with a scrubber will have this reflected its International Air Pollution Prevention (IAPP) Certificate. Moreover, it is possible for a ship to be given an exemption to conduct trials for sulphur emission reduction and control technology research under regulation 3.2 of MARPOL Annex VI. There could also easily be semantic misunderstandings about what fuel oil actually means. In the global commodity market “fuel oil” is typically understood to refer to residual fuel oil from refineries, which is also the main ingredient in most bunker fuel today. In IMO-speak, however, it is defined in Regulation 2.9 of MARPOL Annex VI as follows: “Fuel Oil means any fuel delivered to and intended for combustion purposes for propulsion or operation on board a ship, including distillate and residual fuels.” Hence, when IMO regulations talk about fuel oil, it is only talking about fuel intended for combustion purposes, or bunkers. This does not include fuel oil carried as cargo.

World Bunkering Summer 2018

There’s no such issue with marine distillates, where 95.02% of the tested fuel was below 0.10% sulphur content, meaning the vast majority of distillate fuels supplied at present meets the emission control area (ECA) sulphur limit. However, the IMO sulphur monitoring report also shows that the volume of residual fuels tested was 10 times that of distillate fuels, so come 2020, the vast majority of fuels supplied today will have to be replaced with fuels that are much lower in sulphur. That will be quite an undertaking in the supply chain and we will likely see many unfamiliar blends as the market strives to find the most costeffective fuel solutions.

MEPC 72 also heard that the International Organization for Standardization (ISO) has been given the green light to develop a Publicly Available Specification (PAS) in response to a request from the IMO to provide an ISO standard that can better reflect the quality of fuels with no more than 0.50% sulphur. Work is underway on PAS 23263: “Guidelines for fuel suppliers and users regarding marine fuel quality considering the implementation of maximum 0.50%S in 2020” and looks like it will be ready by the end 2019. The intention of PAS 23263 is to provide detailed guidance to fuel suppliers and users on the type of fuel blends that are anticipated to dominate the global bunker market in 2020.

So, if the carriage ban changes nothing regarding what ships should be doing to comply with the 0.50% sulphur limit, why bother? The purpose is to enable more effective enforcement of the 2020 sulphur cap and hence reduce the risk that operators will be tempted to cheat and gain a competitive advantage. It means port State authorities only need to prove carriage of non-compliant bunkers, whereas the current regulatory text means they would have to prove that it has been used in their jurisdiction in order for them to be able to sanction the ship. Unprecedented fuel spec change Global marine fuel test data provided to the IMO’s sulphur monitoring programme are reported MEPC annually. They hint at the magnitude of the change that will need to happen in the global bunker supply chain in 2020. Test data for 2017 showed that only 1.61% of the residual fuels tested in 2017 were below 0.50%, while a further 3.25% of the samples tested in the 0.50% to 1.00% sulphur range. This suggests that supply of residual fuel meeting the upcoming 0.50% sulphur limit without significant blending is very limited. By contrast, prior to the global limit falling from 4.5% to 3.50% sulphur, only 13% of all residual fuels in the IMO sulphur monitoring programme tested above the new limit versus close to 98% at present. World Bunkering Summer 2018

IMO

ENVIRONMENT

However, at MEPC 72, IBIA co-sponsored a document with IPIECA to ensure the regulatory text amendment would not unintentionally prevent bunker barges from carrying HSFO for delivery to ships with scrubbers. Originally, the text proposed for approval read: “The sulphur content of any fuel oil used or carried for use on board ships shall not exceed 0.50% m/m.” IPIECA and IBIA pointed out that this could be read as not allowing bunker barges to carry high sulphur bunker products as this would in fact be “fuel oil for use on ships”. Our proposal received strong support as the need for a clear, unambiguous text was recognised, and the text eventually agreed specifies “fuel oil used or carried for use on board a ship,” which should prevent the interpretation from including bunkers carried as cargo.

ENVIRONMENT

IMO Secretary-General Kitack Lim

Arctic HFO ban on the cards MEPC 72 agreed that work will begin to develop a ban on the use and carriage of heavy fuel oil (HFO) for combustion purposes by ships in Arctic waters, but first it needs to define what is meant by ‘HFO’. Fuel blends complying with the upcoming 0.50% sulphur limit may contain both distillate and HFO blend components, so it will be critical to have a clear definition. A group of countries put forward a proposal to ban HFO use and carriage as fuel by all ships to which MARPOL applies when operating in Arctic waters no later than 2021, with a five-year delay in implementation for ships that have fuel tank protections in place. The ban would not apply to HFO carried as cargo. The proposal was resisted by some countries which were ready to identify measures to reduce and mitigate the risk of HFO fuel spills, but not a carriage ban. There was also discussion on the potential impact of such a ban on maritime trade, in particular on Arctic communities and economies. MEPC 72 agreed that this should be assessed before adopting a future ban. MEPC 72 agreed on the scope of work for the Sub-committee on Pollution Prevention and Response (PPR), which meets for its 6th session in February 2019. PPR 6 has been tasked to develop a definition of HFO; prepare a set of guidelines on mitigation measures to reduce risks of use and carriage of heavy fuel oil as fuel by ships in Arctic waters; and on the basis of an assessment of the impacts, develop a ban on HFO for use and carriage as fuel by ships in Arctic waters, on an appropriate timescale. It has been widely reported that the use and carriage of HFO is already banned in the Antarctic (including as cargo).

This is not strictly speaking correct: the Antarctic ban in Regulation 43 of MARPOL Annex I applies to heavy grade oil (HGO), which is defined as follows: .1 crude oils having a density at 15°C higher than 900 kg/m3 ; .2 oils, other than crude oils, having a density at 15°C higher than 900 kg/m3 or a kinematic viscosity at 50°C higher than 180 mm2/s; or .3 bitumen, tar and their emulsions PPR 6 has been instructed to take Regulation 43 of MARPOL Annex I into account when developing a definition of HFO. The key would be .2 in Regulation 43 (above). The current HGO ban in the Antarctic means all the marine fuel grades meeting current ISO 8217 marine distillate (DM) specifications would be allowed for carriage and use. Residual grades (RM), although several of them have a kinematic viscosity at 50°C below 180 cSt, all have a maximum density limit in excess of 900 kg/m3, which would not be allowed. With extensive blending of various components anticipated to meet the 0.50% sulphur limit in 2020, it is anticipated that many blends classified as RM products will have viscosity below 180 cSt. Density may also be lower than we see for most RM grades today, though it seems unlikely that fuels designated as RM would be below the 900 kg/m3 at 15°C threshold. If the IMO agrees to use the current HGO definition for the Antarctic ban to define what constitutes ‘HFO’, density would become the key differentiator between fuels that can be used or carried for use in the Polar regions and those that would be banned.

Ships equipped with scrubbers would still be able to transit Polar waters, but only if they empty out HFO from all their fuel tanks first, rendering scrubbers rather obsolete in Polar regions. GHG: The beginning of the end The heat was on for MEPC 72 to adopt an initial IMO strategy on the reduction of GHG emissions from ships. The world was watching. There were almost daily demonstrations outside and a warning emblazoned across the embankment of the River Thames facing the building: “IMO Don’t Sink Paris”. MEPC 72 was preceded by an intersessional working group (WG) to develop a draft text to be finalised by the Committee. It was clear that consensus would not come easy, but after two weeks of tough negotiations, during which many countries set out incompatible positions threatening to undermine the chances of arriving at an agreement, a compromise text was adopted. This sends a strong signal about the IMO’s commitment to phasing out greenhouse gas emissions from international shipping as soon as possible, consistent with the Paris Agreement temperature goals. The agreed overall “level of ambition” to reduce the sector’s total GHG emissions by at least 50% by 2050 compared to 2008 levels was the most hotly contested point. It was viewed as far too weak for many, while a large number of countries objected to defining a figure at this stage as they felt it is premature and not based on evidence. Addressing MEPC 72 toward the end of the week, IMO Secretary-General Kitack Lim encouraged member states to adopt the compromise text although, as he conceded, it may not be completely satisfactory to everyone.

World Bunkering Summer 2018

IMO has agreed to present a revised GHG Strategy in 2023, when it has data from its mandatory fuel consumption data collection and a new IMO GHG Study to better define shipping’s actual contribution to global GHG emissions. The Initial IMO GHG Strategy includes a vision statement: “IMO remains committed to reducing GHG emissions from international shipping and, as a matter of urgency, aims to phase them out as soon as possible in this century.” It sets out objectives highlighting IMO’s role in addressing GHG emissions and identifying what actions to take, while supporting the continued development of global trade and maritime transport services. The

controversial “levels of ambition” include not just the overall “at least 50%” sector reduction goal by 2050, but also a stated aim to reduce CO2 emissions per transport work, as an average across international shipping, by at least 40% by 2030, pursuing efforts towards 70% by 2050, compared to 2008. The strategy also contains a list of “candidate short-, mid- and long term further measures with possible timelines and their impact on states” to be further developed. These start off with technical and operational energy efficiency measures, before transitioning to lowcarbon and eventually zero-carbon fuels. The purpose is to make sure international shipping contributes its fair share in the global effort to keep climate change in check by limiting temperature rises to “well below” 2°C above pre-industrial levels and to pursue efforts to keep them to no more than 1.5°C. If this fails,

the world as we know it could change dramatically and for some of the Pacific island states represented at the IMO, due to rising sea levels, it would literally mean the end. To achieve this aim, however, the use of fossil fuels would have to be phased out completely and replaced with carbon neutral energy sources. Just what the fuels of the future might be is not yet clear. We are a long way away as current supply of carbon-neutral options and technologies fall well short of global energy demand. The lyrics of 1987 hit from the rock band R.E.M. concludes: “It’s the end of the world as we know it, and I feel fine.” The task ahead of us, then, is to find the energy solutions that will make us feel fine. That means the end of the world as we know it for oil-based bunkers.

iStock

World Bunkering Summer 2018

ENVIRONMENT

ailing to adopt the Initial IMO GHG Strategy was “not an option,” he stressed, reminding the Committee that the Initial Strategy is a key starting point; it is not the final outcome.

Industry News

An EnergySail array can be incorporated into EMP’s Aquarius

Ro-ro EEDI “corrected”

Global ferry operators’ trade association Interferry has welcomed IMO’s 20% “correction” in its Energy Efficiency Design Index (EEDI) calculation formula for ro-ro and ro-pax vessels and described the move “as an incentive to revive newbuild projects that have been inhibited by the current criteria”

he EEDI amendment was confirmed at the April meeting IMO Marine Environment Protection Committee(MEPC) and can be applied immediately. The EEDI requires that, by certain dates, all types of new ships built for international operation must be more energy efficient than the average of existing designs in their respective trades. In 2016, Interferry used its IMO consultative status to voice concerns from members that - even with highly efficient newbuild designs – the sectorwide target was proving problematic, suggesting it might be due to the diversity of such vessels. After extensive industry research and deliberations, supported by several flag administrations, the IMO has now adopted the draft amendment approved at last year’s MEPC session - confirming that the data set used to establish the ro-ro and ro-pax requirements contained too many errors and agreeing that a 20% correction shall be applied. IMO is encouraging flag states to apply the correction retrospectively. Interferry regulatory affairs director Johan Roos commented:

“This means the 20% adjustment can also be introduced immediately for existing contracted new buildings, providing a much-needed margin for many projects that struggle to meet the EEDI requirements, sometimes missing by just a few percentage points.” Praising Finland and the Republic of Korea for their ‘instrumental’ role in the agreement, Mr Roos added: “It’s important to stress that this is not a relaxation of the requirement for improved energy performance it’s a fair and just way of ensuring the ferry sector achieves it. We are very pleased that our members will now be able to proceed with design projects that have previously been considered too risky.” Rotterdam’s looks to lead in “energy transition” Following an exceptionally strong increase in container throughput, of 12.3% by tonnes, in 2017 Port of Rotterdam is looking to invest in infrastructure for alternative fuels. The port’s CEO Allard Castelein said in a statement: “Our times are characterised by increasingly fast-paced developments in a range of areas.

The only way in which the port of Rotterdam can continue to serve as an important driver of the Dutch economy is through a dedicated and targeted response to these trends, by focusing on the creation of economic and social value for regional and national authorities and establishing itself as a source of employment and as a key player in the general transition toward a new, more sustainable energy economy.” He added: “The Port Authority wants to develop the port into the foremost location where the energy transition can take shape. To realise this ambition, it is following an ‘and-and’ strategy: it not only facilitates existing, fossil-based industrial parties in the reduction of their CO2 footprint; it is also investing heavily in the development of sustainable, circular and bio-based industries and renewable energy. We do this by initiating concrete new activities in close collaboration with the private sector and government agencies. Our programmes focus on a range of areas, including carbon capture and storage, the conversion of waste into ‘green’ methanol, the use of residual heat rather than natural gas as a heating source for homes, greenhouses and businesses, and the facilitation of offshore wind.”

World Bunkering Summer 2018

REINPLUS FIWADO Bunker supplies fuel to inland vessels throughout North West Europe. Thanks to the collaboration with GoodFuels Marine, biofuels will be available for inland and coastal vessels, thereby contributing to a more sustainable European inland shipping fleet. REINPLUS FIWADO Bunker’s managing director, Ben van Kol, said: “Due to climate targets and stricter emission requirements, the demand for alternative shipping fuels is increasing. We are proud to provide our shipping customers with sustainable biofuels through the collaboration between GoodFuels Marine and our parent company VARO Energy. We will ensure that these fuels are available throughout our entire bunker network.” GoodFuels Marine says that its sustainable biofuels have been specifically developed for shipping and save up to 90 per cent CO2 and 100 per cent sulphur compared to fossil fuels, helping to deliver a material improvement in air quality. The company says its biofuels are suitable for every type of marine engine, without requiring any modifications. Dirk Kronemeijer, CEO of GoodFuels Marine: “We are very pleased that this collaboration will enable us to offer one of the most climate-friendly options for shipping through the largest inland bunker network in the AmsterdamRotterdam-Antwerp region. We are confident that it will further accelerate the sustainability of shipping.” Commercial production of EnergySail and Aquarius MRE closer In what is described as a major step

World Bunkering Summer 2018

towards bringing rigid sails onto powered ships, Eco Marine Power (EMP) has signed a patent license agreement with Teramoto Iron Works Ltd concerning patents related to EMP’s EnergySail and Aquarius MRE technologies. EMP says that Teramoto Iron Works is one of the few companies in the world that has experience in the production of rigid sails and was involved in the manufacture of JAMDA sails in Japan in the 1980’s. Teramoto Iron Works was selected to manufacture the first production version of EMP’s EnergySail in 2016 and this latest agreement with EMP paves the way to full commercial production once sea trials have been completed. The patented EnergySail is an automated rigid sail device that enables ships to utilize the power of the wind to reduce fuel consumption and lower vessel emissions. It can also be fitted with flexible marinegrade solar panels or other devices and used to charge batteries or the electrical power fed into a ships power system. Alternatively an EnergySail array can be incorporated into EMP’s Aquarius MRE (Marine Renewable Energy) solution. World Fuel Services becomes physical supplier at Tampa World Fuel Services (WFS) says it is now able to supply fuel oil and marine diesel from Port Manatee to vessels in the Tampa Bay area. Joe Gowen, SVP Global Marine Supply, said; “World Fuel Services continue to invest in selective physical supply locations. When selecting locations for WFS we carry out an intense risk assessment ensuring we are able to deliver the highest standards of service.” World Fuel Services will have two dual capacity tug and barge units to service the area and has partnered with barge operator Vane Brothers. Ship fuel oil reporting requirements in force Requirements for ships to collect data on their fuel oil consumption entered into force on 1 March as well as other important amendments to the International Convention for the Prevention of Pollution from Ships (MARPOL). These cover the classification of garbage, including the addition of a new category of “e-waste”,

and amendments to the International Oil Pollution Prevention Certificate. The ship fuel oil consumption data reporting requirements are the latest mandatory requirements aimed at enhancing the energy efficiency of international shipping. The data collection will begin on 1 January 2019 with data reported at the end of each calendar year to IMO). The data collection system is intended to equip IMO with concrete data on fuel oil consumption, which should assist its member states in making decisions about any further measures needed to enhance energy efficiency and address greenhouse gas emissions from international shipping. Under the new MARPOL Regulation 22A on Collection and reporting of ship fuel oil consumption data, ships of 5,000 gross tonnage and above are required to collect consumption data for each type of fuel oil they use, as well as other, additional, specified data including proxies for transport work. These ships account for approximately 85% of CO2 emissions from international shipping. The aggregated data will be reported to the flag state after the end of each calendar year and the flag state, having determined that the data has been reported in accordance with the requirements, will issue a Statement of Compliance to the ship. In addition, on or before 31 December 2018, in the case of a ship of 5,000 gross tonnage and above, the mandatory Ship Energy Efficiency Management Plan (SEEMP) shall include a description of the methodology that will be used to collect the data and the processes that will be used to report the data to the ship’s flag State. Amendments to update Form B of the Supplement to the International Oil Pollution Prevention Certificate, in relation to segregated ballast tanks, also entered into force on 1 March 2018

Industry News

Biofuels available at Rotterdam VARO Energy subsidiary REINPLUS FIWADO Bunker and GoodFuels Marine say they are working together to make European inland shipping more sustainable. As a result advanced biofuels from GoodFuels Marine are available at the port of Rotterdam and also along inland shipping routes in the Netherlands through the REINPLUS FIWADO Bunker bunker network as well.

Industry News

BIMCO’s new Bunker Terms New document is “major step in the right direction” says IBIA

BIA has reviewed the BIMCO Bunker Terms 2018 and some of our members have participated in the redrafting of the document. The revised BIMCO Standard Bunker Terms and Conditions, which replace the 2015 edition, were approved by BIMCO’s Documentary Committee on 2 May. BIMCO’s new Bunker Terms were developed by a cross-industry group which included a number of bunker trader representatives whose companies together apparently account for 25% of the total bunker volume sold globally. “I think it is a positive step for the industry that representatives for the bunker traders and shipowners have agreed on a standard set of terms, which both parties consider fair and balanced,” says Francis Sarre, Chair of the BIMCO Documentary Committee. In a press release, BIMCO highlighted the introduction of a maximum limit of the parties’ liabilities as a key change that it believes will lead to wider adoption of the contract. The default limit is the invoice value, but not less than US$500,000. The previous BIMCO Bunker Terms edition had unlimited liability, which has been one of the main reasons why suppliers have been reluctant to use it to a larger extent, according to Henrik Zederkof, Senior Director of Bunker Holding Group and an IBIA board member.

BIMCO’s Sarre hopes that the changes will lead to a wide adoption of the standard terms across the industry, which “should save time on drafting contracts and get greater clarity on the contractual obligations and liabilities in the contract. This will hopefully bring more transparency to the bunker industry.” IBIA’s Chief Executive Officer, Justin Murphy, observes: “IBIA members span the entire industry value chain including suppliers, traders, brokers, ship owners/operators and bunker buyers. IBIA is supportive of BIMCO’s initiative to develop more balanced Terms and Conditions from the perspective of both buyers and sellers of bunker fuels.”

Singapore to make flow meters mandatory for distillates The Maritime and Port Authority of Singapore (MPA) has announced it will extend the mandatory use of MFM to all bunker tankers delivering distillates in the Port of Singapore from 1 July 2019. MPA’s Chief Executive (Operations) Capt M Segar said that the move followed the successful completion of test on the use of mass flow metering (MFM) system for delivery of distillates. Capt Segar said: “The industry has given positive feedback on the mandatory use of MFM for MFO.

The terms and conditions offered by the revised BIMCO document are “a major step in the right direction” says Zederkof, who predicts this will lead to a much higher use of the BIMCO Bunker Terms 2018 than the previous edition. IBIA welcomes efforts to achieve better alignment in the industry to improve efficiency, transparency and compliance across the board, and as such we would like feedback from our members regarding the new BIMCO Bunker Terms on how to support these efforts.

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. 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.”

Zederkof, who took part in the redrafting of the BIMCO bunker terms, says the 2018 revision has addressed some of the main concerns about the 2015 edition and sees it as a positive step towards a more professional industry. “I believe the introduction of the 1-page election sheet, which allows for customisation of provisions in the BIMCO Bunker Terms, is both a very good and flexible solution,” Zederkof notes. The election sheet allows the parties to specify certain aspects including legal jurisdiction, time limits for claims, and the liability limit. World Bunkering Summer 2018

World Fuel Services now has a physical presence at Tampa Bay

turkey

Istanbul’s suppliers have seen steady growth for years. ©Harold Litwiler

Rosy picture Significant investment in the bunker sector over the past few years is paying off, John Rickards reports

he Turkish bunker market is increasing market share even though the number of vessels passing through the Turkish Straits is going down, says Turkish Bunker Association (TBA) chairman Deniz Eraydin. It’s been a good year for the Turkish bunker sector, with tighter regulation, an influx of new tonnage, and firm demand particularly from larger container vessels all adding to a rosy picture for the country’s main bunker suppliers. Around 35,000 of the 50,000 ships passing through the Turkish Straits every year call for bunkers in Istanbul, where sales have continued to grow steadily for three years in a row.

In 2013 the Turkish bunker industry decided not to ask for extra time or an exemption from mandatory double hull. As a result, 19 double hull bunker barge newbuildings had joined the country’s bunker supply fleet by 2018.

In 2013 some 47,000 vessels went through the Straits and Turkish suppliers delivered 1.4 million tonnes of bunkers. Last year only about 43,000 went through but 2.8 million tonnes of product was supplied. Eraydin predicts: “We are expecting similar volume growth, of about 10%, this year.”

He adds product quality in Turkey has always been high with supplies at least meeting ISO 8217:2005 specifications, and typically meet the more stringent ISO 8217:2012 specifications. The Energy Market Regulatory Authority does not allow any off-spec or low quality bunker product cargo, distillate or residual, into terminals. This prevents the blending of off-spec fuel to achieve an acceptable product.

That 10% increase was achieved despite a dramatic decline in cruise ship visits in the past two years due to political tensions. During the last two years, very few cruise lines visited Turkish ports due to political tension in the area. Eraydin says: “During 2018 we expect cruise ships to come back. Usually the Turkish bunker market supplies 300,000 tonnes a year to cruise ships so the 2016 and 2017 figures would otherwise have been even better.” In 2008 the Turkish Government decided to make it mandatory for all bunker barges of 600 dwt and bigger to have double hulls by 2017.

In addition the ISM Code became mandatory regardless of gross tonnage. Personnel operating bunker barges were given better training regarding environment, safety and technology. These moves, Eraydin says, have increased the efficiency of the bunker sector and also boosted customer satisfaction.

Only one physical bunker supplier in Turkey uses mass flow meters (MFM) but, Eraydin says, that was enough to give Turkish supplies a good reputation: Another recent development that has assisted shipowners and the bunkering industry is a relaxation of regulations concerning the length of stay of vessels at Istanbul’s anchorage. The previous 48 hour limit was increased to 168 hours last year.

According to Eraydin this allows ships to manage their bunker supplies while waiting for passage through the Straits. Summing up, Eraydin says that with new investment, better training, higher quality, competitive approach and new regulations Istanbul has become a trouble free bunker supply port within the Eastern Mediterranean and Black Sea areas. World Bunkering also spoke to Energy Petrol head Mustafa Muhtaroglu to get his view of the situation in the country. WB: How has business been over the past 12 months? I understand demand in Istanbul was solid in the summer, but has that been reflected in your sales? MM: 2017 was one of best years for Istanbul. Volumes increased 13%, reaching 2.8m tonnes, the highest ever quantity. We, as Energy Petrol, also achieved good results. Sales increased over 10%, reaching 410,000 tonnes and confirming our historical market share of 15%. This is not only last year; our sales grew over 50% over the last three years. WB: What do you see developing both for you and the Turkish market as a whole in the coming year? MM: Istanbul is the best bunkering port in the area. We give perfect service, erfect quality, no short delivery or bad quality cases in Turkey.

World Bunkering Summer 2018

Moreover, we all read what happened in Asia recently: 11 people went to jail. We have a saying in Turkish: “You can’t lock out a thief.” They find ways, we need to increase the ethical values of the industry.

2020 will be a corner for the Turkish bunker market. If we supply 2020-compliant bunker fuels in Turkey, sales can be doubled. I believe 2020-compliant fuels will be supplied at main hubs only. Istanbul has such a position and a big chance, with some 45,000 ships passing Istanbul. We have the potential, we have the traffic. If we manage to supply as per the new regulations, Istanbul will be a much bigger supply point in the area.

WB: How ready do you think both you and the Turkish market as a whole are for the 2020 cap? MM: It’s actually the main question which will be defining the future of many bunker markets. As suppliers we can only sell and supply whatever refineries produce, so it’s actually a refinery matter. We, of course, talk to refineries, however nothing is clear yet. Istanbul has a very unique location by the Turkish Straits where some 45,000 ships pass every year. I am sure we will supply 2020-compliant bunkers required by this high volume of shipping traffic. We are not going to close down shop; in fact, we are aiming to be the most active bunkering location for the new era in 2020.

WB: What impact has the switch to mandatory MFM made since the rule came into effect? MM: MFM for barges is not obligatory in Turkey, but it is for all refineries and terminals and this has gone very well. All refineries and oil terminals have been equipped with MFM, all incomings and barge loadings are being done by MFM connected to custom systems which see every single drop of oil coming in and out. It shows which product, in what volume, and which product out via which line and tanks etc. so it’s a very transparent, very secure system in place, supporting Istanbul’s position as one of most reliable bunkering centres in the area. In fact Turkey has been a very clean, reliable market for very many years already. There are no shortages, no quality or quantity issues here. Now it’s even better with the new system under custom control; that’s why we don’t need MFM on barges and 50 of 55 active barges have not put MFM onboard. For example, we have 12 barges and supplied 2,350 ships in 2017 without a single quality or quantity issue. The whole market is the same, very reliable, high quality which is very good for buyers bunkering in Turkey. As I said in Athens during the bunker conference in December last year, MFM is not a magic box; it’s actually very old technology from the 1970s. I am surprised our industry sees it as a life-saving instrument but it’s not; you first need ethical people with high moral values. You see it in Asia where they have mandatory MFM, but some people use tricks on the pipes and still cheat you. MFM is not going to solve all the industry’s problems. It’s a matter of human nature; we can solve it by ethical people only.

World Bunkering Summer 2018

Muhtaroglu’s mention of the Turkish bunker market continuing to grow seems to be borne out by further signs of the tourist trade recovering after the 2016 coup attempt. In March, the chairman of Izmir’s branch of the Istanbul, Marmara, Aegean, Mediterranean and Black Sea Regions (İMEAK) Chamber of Marine Trade, Yusuf Ozturk, announced in a statement that discussions with the major cruise operators at the Seatrade Cruise Global Fair had been “fruitful and promising”. “The strong interest in Turkey seen at the fair is yet another sign that our tourism industry has put the worst behind it,” Ozturk said. “Executives from cruise companies told us that Turkey is an important country and they plan to return to Turkey.” NCL is due to return this season, while MSC will revisit Turkey in 2019 and HAL had plans, according to Ozturk, to do the same in 2020. In 2015, there were 1,296 cruise ship calls in Turkey before a postcoup crash to 538 in 2016 and an even weaker 307 last year.

At the time of going to press, while it’s out of regular season, there have been no cruise calls at all. With cruise vessels a lucrative source of bunkering contracts, suppliers will be hoping that Ozturk’s optimism is well-placed. At the same time, the country’s first drillship should - at the time of writing have begun exploratory operations off Turkey’s Mediterranean coast after seismic survey work last year as the country bids to develop its hydrocarbon industry further. It’s also stepping up its gas infrastructure, with its second FSRU coming into operation in February off the province of Hatay to match the first off Izmir in December 2016. Energy Minister Berat Albayrak claimed the vessel is the largestcapacity LNG storage unit in the world at 263,000 cubic metres. Albayrak is hoping to make Turkey a net exporter of surplus gas capacity as the Trans Anatolian Natural Gas Pipeline project begins operations this year, followed by TurkStream in 2019. With LNG bunkering interest almost inevitably following from gas import/ export activity, and demand for LNG only going to rise in the coming years, better gas infrastructure can only be a good thing for Turkey’s future market presence. Major physical bunker supplier in Istanbul, CYE Petrol, has invested heavily in new barges and also in Emerson Coriolis MFM. In 2015 it was voted “Best Bunker Company” in Turkey. CYE was the first and remains the only physical bunker supplier who is using MFM for bunker supplies in Turkish Ports. So far more than 10 000 deliveries have been carried out with MFM. CYE’s volumes have risen dramatically in the past five years. In 2013 CYE supplied 190,000 tonnes, by last year the total had risen to 535,000 tonnes, a 280% increase compared to the 100% increase achieved by the Turkish bunker sector overall over the same period.

A recovery in the country’s tourist business could further strengthen its fuel sector ©Rachael Voorhees

turkey

It’s a very regulated market and very well-established players have been doing a perfect job for many years. That’s why some 12,000 ships are bunkering in Turkey every year.

Cyprus

Patrick Denker Limassol is one port looking at putting shore side power supply in place

Hoping for LNG

The Cypriot bunker sector has spent much of the past few months with a sharp eye on the future shape of the country’s fuel industry, John Ricards reports

n the summer of 2017, Cyprus was one of eight EU members to receive a warning from the European Commission after failing to write the European directive on alternative fuels infrastructure into national law by the previous November. The directive’s rules primarily cover road vehicles, but touch on LNG and are supposed to provide a common framework for increasing alternative fuel use and emissions reduction in transport. While the EC has taken no further action since and Cyprus has smoothed over the lack of legal changes (Malta and Romania, two of the other nations named, were sent to the Court of Justice in January), it’s not the first time Cyprus has lagged behind European transport emissions rules. In 2015, it faced a similar warning from the EC over failing to write the EU Sulphur Directive’s 0.5% sulphur limit in EU’s territorial waters from 2020 (since superseded by the IMO’s global 2020 sulphur limit) into national legislation. Nevertheless, the island state retains a strong interest in developing LNG bunkering infrastructure, piggybacking on tapping more thoroughly into its natural gas reserves. The Suez Canal expansion - putting more East-West trade on Cyprus’ doorstep - hasn’t had quite the desired traffic impact to say the least; last year’s transiting ship tonnage was up around 4%, but the canal’s earnings have been largely flat since its expansion.

Nevertheless, the hope remains that if Cyprus can develop an LNG bunker sector it could become an attractive refuelling point for container ships bound westwards in particular. Moves to reduce local emissions from shipping are also progressing, at least in terms of promoting investment. The EU-funded Electrification in the Eastern Mediterranean project held an event in Limassol last autumn looking at Cypriot plans for cold ironing, the impact on local power consumption and production of electricity, and the use of hybrid and renewable sources of power for ships at berth and on local short sea routes, and the likely synergies with LNG use. Limassol is one of four ports involved in the Elemed project, along with Piraeus and Killini in Greece and Koper in Slovenia. In the meantime, Nicosia-based software company Veltrone has launched a ship management suite that includes bunkerbuying capacity that allows users to monitor price changes, submit enquiries and handle the entire contracting sequence through to delivery completion. The software uses blockchain technology as a secure method of tracking and recording each transaction involved in the process.

The Nereus management suite was only available in beta form at the time of writing, though the company reported that testing with clients has been positive and that it already had several pre-orders lined up. Greece’s Technava has inked a deal with Maersk Fluid Technology to become MFT’s official sales agent for the company’s SEA-Mate lubricant blending-on-board system in Cyprus as well as Greece. Jens Byrgesen, MFT managing director, said: “Our blending-on-board technology can support Greek and Cypriot ship owners with both changing engine operating conditions and fuel sulphur levels. Therefore, we believe that introducing our blending-on-board technology jointly with Technava, will bring great technical and financial value to the Greek and Cypriot marine industry.” “As a highly reputed supplier of marine equipment we welcome the opportunity to act as the sales agent for MFT in Greece and Cyprus,” said Technava’s Andreas Angelidis. “We represent first class manufacturers with strong brand names and highly reliable product, so we are proud to welcome the MFT SEA-Mate BOB system into our portfolio of products.”

World Bunkering Summer 2018

Greece

Manos K Alternative fuels could be an option for Greece’s extensive short sea fleet

Time to choose Alternative fuels could be an option for Greece’s extensive short sea fleet, John Rickards reports

he 2020 sulphur cap is looming increasingly large over Greece’s short sea and ferry fleets. Speaking at last autumn’s Interferry conference in Split, Minoan Lines managing director Antonios Maniadakis predicted that changing to low sulphur fuel would cost the company an extra €2m per year. In the meantime, Interferry president Alan Klanac suggested that LNG was better suited to colder climates and not that of the eastern Med, and others pointed to a simple, albeit expensive, switch to MDO instead. The latter point hasn’t been borne out by the efforts of some Greek short sea operators to explore LNG as an alternative fuel. Attica Group is continuing to work on a dual fuel ferry, as well as making overtures to a Greek gas distributor to improve bunkering infrastructure. Also last year, a 16-member coalition of Greek shipping interests was set up to promote LNG as a fuel across Greece, share information and best practice, and evaluate legislation and technical standards as they come in. The Marine LNG Network is backed by the Hellenic Shortsea Shipowners’ Association (which has for some time pushed for a financial package to help owners cover the cost of fuel switching for 2020), the Greek Shipowners’ Association of Passenger Shipping Companies and the Public Gas Corporation of Greece. It’s not the only group or project pushing greater LNG infrastructure and usage across Greece, of course.

The EU-backed Poseidon Med II project has been looking at promoting the fuel across the eastern Mediterranean for some time now, with Greece one of its main areas of interest. At an event last year in Piraeus organised by the project in coordination with the port authority, the PPA’s Dimitrios Spyrou suggested that LNG conversion and newbuild work could be a major boost for Greek shipbuilders. “The adoption of LNG as marine fuel will create fertile ground for sustainable development of the Greek shipbuilding sector and employment opportunities, which are vital for Greece,” he said. “Piraeus Port Authority’s new floating dock with carrying capacity 80,000 tonnes and the four existing extensively repaired docks will definitely contribute to this end.” The project has also put forward the notion of developing the terminal at Revithoussa - the only LNG terminal in Greece at present despite several proposals, investments and interest in building more - as the linchpin of a regional LNG distribution chain, as well as putting LNG infrastructure in place in Patras. At present, though, that infrastructure remains relatively undeveloped and while there’s still time for LNG to make a real splash in Greek waters from 2020 onwards, particularly if it can offer real running cost savings on inter-island routes, it seems likely that it will be conventional low sulphur fuels that most owners turn to in the meantime.

Founder and head of Piraeus-based bunker broker Prime Petroleum Services Irene Notias told World Bunkering that while business for the company had been largely stable, bunker demand at Greek ports during 2017 hadn’t recovered from the difficulties of the year before. “Governmental policies and taxation [are the main challenges facing the market] as well as not being open to new ideas,” she said, “but I believe this will change soon.” “Greece is as ready [for the 2020 cap] as any port state right now. It’s a hot topic of every outlet here because shipowners are concerned about availability [of low sulphur fuels] and the cost.” She does, however, expect to see LNG bunkering beginning to fulfill its potential in the Greek market across the coming year, “because of the location and because Greeks have always been innovators and pioneers in many sectors, especially in shipping.” Prime isn’t the only company in the supply chain taking a reasonably optimistic view of Greece’s long-term bunkering sector. Global bunker group Cockett Marine Oil moved its Greek arm into larger offices last year and expanded its team in the country to better meet its “present and future needs”.

World Bunkering Summer 2018

Greece

he company has previously made it clear that it sees the shift in supply and demand caused by the 2020 cap as an opportunity to grow its own market share, and that MDO and distillate-based fuels are likely to be the go-to options in the early stages of the market switch. The company entered the Greek market in 2014, and clearly has an eye on the changes in the country’s bunker scene eighteen months down the line. Fuel testing and quality surveying company Petro Inspect launched its own operation in Greece at the end of last year with the opening of an office in Piraeus. The Greek outlet will be used to develop the company’s inspection business across the eastern Med and Black Sea regions with further European support coming from Petro Inspect’s existing office in Amsterdam. Former marine surveyor and testing lab operations manager Christos Apergis has been appointed as the subsidiary’s commercial director.

“We are very proud to be the first shipping company to have been awarded the verified EU MRV management plans, for our fleet, by the world’s leading classification society, DNV GL,” said Mattheou Dimitrios, Arcadia’s managing director. “This verification marks the first milestone for smooth compliance with the EU MRV regulation.” “At Arcadia we are committed to providing safe and reliable transportation of oil by sea and continue to broaden the values and ideas that build safety and environmental excellence, applying effective management systems to comply with incoming regulations to consistently achieve reliable and environmental incident-free performance.”

CO2 emissions monitoring and reporting on vessels over 5,000 gt became mandatory for ships calling at any EU or EFTA port from January, with the first aggregated emissions and efficiency data due to be published by the European Commission in June next year. “We would like to congratulate Arcadia Shipmanagement for being the first to receive EU MRV management plan verification, for their whole fleet, by DNV GL. It demonstrates their willingness to ensure that their vessels are out in front of the market in terms of compliance and in their sensitivity to the environment,” said DNV GL’s George Teriakidis.

The port of Killini, meanwhile, is on course to become the first in the eastern Mediterranean to offer shore power as part of the EU-backed Electrification in the Eastern Mediterranean (Elemed) project. At the end of 2017, Elemed said that the tendering process had been completed and the cold-ironing system should be commissioned and active by this summer. The “why Killini” question for the establishment of the first pilot cold-ironing installation in Eastern Mediterranean [came down to] the technical feasibility of the port but mainly the municipality’s vision and will to offer a more sustainable and greener future for Killini society,” Elemed said. “We won the first bet, and we will continue,” added Killini’s mayor, Nabil Morad. And Athens-based tanker operator Arcadia Shipmanagement became the first company to receive EU MRV certification from DNV GL last year. Prime Petroleum Service’s Irene Notias

World Bunkering Summer 2018

Russia Bunkering News

Russiaâ&#x20AC;&#x2122;s first LNG bunker supplier joins Association Olga Bogacheva takes her regular look at the Russian bunkering scene

NG bunker supplier Krieger has joined the Russian Association of Marine and River Bunker Suppliers. Kriogaz is the first Russian company carrying out bunkering of LNG-powered vessels and has been engaged in development of production and use of liquefied natural gas more than 10 years.

Since February 2017 Kriogaz has been carrying out deliveries of LNG fuel to the high-speed Megastar ferry in Tallinn port through Estonian partner company Eesti Gaas. Each stem takes four hours and deliveries are made at night from trucks. As of April 2018 more than 130 LNG bunkering operations had been carried out with 7,000 tonnes supplied.

In December 2011, the company was taken over by Gazprombank group. Kriogaz says that its strategic goal is to develop a logistics chain, starting from raw data collection, design, construction and operation of LNG producing facilities, to transportation and use of LNG fuel, both in North-West of Russia and abroad.

At Tallinn, Kriogaz is competing against LNG-terminals in Lithuania, Poland and Holland but it is helped by the fact that LNG from Russia is exported duty-free both by truck and ship. In addition, the Pskov plant is conveniently located, only 350 km from Tallinn. Other LNG operators have more complex logistics.

Kriogaz supplies LNG to industrial customers and municipal facilities as well as being active in the road transport and bunker fuel sectors. In 2016 Kriogaz commissioned a medium sized LNG plant in the Pskov Oblast with an annual output of 23,000 tonnes.

In the spring of 2018, Kriogaz announced the construction of a second stage at the Pskov plant, a move that will take production to almost 200,000 tonnes of LNG per year. In addition the company is building an LNG plant with annual capacity of 150,000 tonnes in in Kaliningrad. Commissioning is planned for the end of this year.

Kriogaz expects the output of both of these plants to be in demand as marine fuel. It is expected that, if using LNG on the Tallinn route proves to be a success, Megastar â&#x20AC;&#x201C; which owns 16 vessels in total- is likely to continue the introduction of LNG fuel as it renews its fleet. In addition, in 2020 three gas-fuelled railway-ferries should start working on the Baltiysk-Ust-Luga line. However there is still no legal framework for LNG bunkering in Russia. Kriogaz experts are currently working with the Association to develop regulations to cover LNG-bunkering. Association will continue to provide anti-corruption advice The Ministry of Justice of the Russian Federation has extended the accreditation of the Russian Association of Marine and River Bunker Suppliers as an independent expert, authorised to review existing and proposed anti-corruption regulations relating to the bunkering industry. The accreditation is valid until 2023.

World Bunkering Summer 2018

Boost for Interferrum Metall fuel export terminal In February 2018 Interferrum Metall oil terminal at St Petersburg Big Port received its first two 30,000 dwt tankers at berth IF2. They were loaded with Russian fuel oil for export. Currently Interferrum Metall oil terminal can handle fuel oil, vacuum gasoil and diesel, and receive cargoes via railway and via river-going barges. Total storage capacity for dirty petroleum products is 22,000 tonnes. A PetroChimTest laboratory is located at the Interferrum Metall oil terminal, This enables the operator to keep constant control of the quality of the cargoes arriving at the terminal. At present Interferrum Metall transships export cargoes of fuel oil supplied by Bashneft, clean and dirty petroleum products from Tatneft, clean petroleum products from the Omsky refinery production and also transships bunker fuel oil for Nevsky Mazut bunker company. NK-Fleet acquires bunker tanker Arkhangelsk-based NK-Fleet has bought a 3,000 dwt ice class tanker. The Alan was built in Finland and worked in the Nordic countries until 2004. She will operate in the Barents Sea.

Reconstruction of Marine StandardBunker’s terminal almost complete Marine Standard-Bunker’s newly reconstructed terminal in Mokhovaya Harbour, near Petropavlovsk-Kamchatsky, will soon be operational. New storage tanks for diesel fuel and fuel oil have been installed. Pier reconstruction and necessary hydraulic engineering works have been almost completed. The beginning of the construction work on the complex coincided with the establishment of the Far Eastern Priority Social and Economic Development Area (PSEDA). The project was given Kamchatka PSEDA resident status as well as relevant tax privileges and a number of other benefits. In addition, the investors have taken advantage of entrepreneurship support measures provided by the regional authorities. In particular, the status of an especially important investment project allowed the company to obtain a subsidy for reimbursement of costs at the rate of the loan agreement from the budget of the Kamchatka region. Marine Standard-Bunker specialises in oil supplies, transportation and bunkering services to the fishing industry. The company has delivered marine fuel to vessels using the Northern Sea route. Its main clients are fishing vessels from Kamchatka. Far Eastern media reported that the new oil handling terminal should strengthen competition among oil suppliers at the peninsula and consequently reduce prices in the area. New bunker tanker at Kavkaz The bunker tanker Avior, owned by LukoilBunker, has started operations in the port of Kavkaz in the Black-Azov basin. The 13,079 dwt Avior, previously located at the port of St Petersburg, can supply light oil products and fuel oil. Lukoil-Bunker is a subsidiary of LUKOIL. Its main business is supplying fuel at the sea and river ports of the Russian Federation, Bulgaria, Romania and Serbia. The company’s fleet consists of 16 bunkering vessels with a total capacity of about 40,000 tons.

World Bunkering Summer 2018

LUKOIL-BUNKER launches bunkering services in Romania LUKOIL-Bulgaria Bunker launched bunkering services in the Romanian ports of Constanzta, Constanta Euphoria Sud, Media and Mangalia in January 2018. Bunkering with RMG-380 and 0.1% sulphur gas oil will be carried out by the tanker Aginskoye. The company says it may expand its range of products. New port designed for Gelenzhdik The design of a Coastal and Marine Infrastructure Complex at Gelendzhik has been completed. The Russian General Board of State Expert Review has approved the design. The project involves the construction of a modern passenger port, capable of receiving cargo and passenger ships, as well as motor and sailing vessels of various classes. The port will be an integral part of the new tourist-recreational zone in Gelendzhik. The area will also include hotels, restaurants, sports and entertainment centres and other tourist facilities, construction of which will be carried out by private investors. Russian ports throughput up Throughput at Russian seaports in 2017 increased by 9% compared to the previous year, to reach 786.97 million tonnes. The volume of transshipment of dry cargoes increased by 11.1% and amounted to 372.94 million tonnes; Liquid cargoes increased by 8.3%, to 414.03 million tonnes. In the reporting period, the throughput of the Arctic sea ports increased by 49.1% to reach 74.2 million tonnes, of the Baltic basin by 4.6% to 247.49 million tonnes, and of the Azov-Black Sea basin by 10.4% to 269.54 million tonnes. Throughput at the sea ports of the Far Eastern basin showed an increase of 3.3% and reached 191.76 million tonnes in 2017. At the same time, the turnover at Caspian seaports fell by 34.1% to 3.98 million tonnes.

Russia Bunkering News

ssociation representative Olga Bogacheva explains: “The process of developing and approving of regulations affecting our industry requires an expert understanding of these documents, revealing any provisions which could allow market players to create corrupt schemes. We bring together the opinions of market participants and suggest amendments. As a rule, our wording is taken into account in the final document.””.

Russia Bunkering News

he Russian Ministry of Transport predicts that throughput at Russian ports will increase by at least 5% in 2018. Bronka set to boost grain exports St Petersburg’s deep-sea multi-purpose port Bronka intends to export more grain and fertiliser that all of the Baltic states’ ports by 2022, according to business newspaper Kommersant. Phoenix, the operator of the port complex, plans to build a new railway yard and other additional railway infrastructure, and storage. The company will also use KOTTA containers for transport of mineral fertilizers, potassium, cast iron, ferro-alloys, grain and other goods. The new containers with a bottom discharge will allow transshipment of cargoes directly to the panamax ships. Additional port capacity is expected to allow throughput of up to 8 million tonnes a year. The deadline for implementation of the first phase of the project is 2020, with the second stage expected to be finished in 2022.

Sovcomflot and Shell in LNG as fuel project Sovcomflot and Shell have concluded long-term time-charter agreements for the operation of two new vessels under construction. They are the first aframax tankers designed for LNG-fuel use. The planned delivery of the tankers is from the third quarter of 2018 to the first quarter of 2019. Shell will be the fuel supplier. Initially, the Kardissa, an LNG bunker tanker owned by Shell, will be used for bunker fuel deliveries in north-western Europe. As the bunkering infrastructure evolves, Shell will create additional points of bunkering in North-Western Europe and the Baltic.

New terminal near Kaliningrad Construction of an international sea terminal is underway at Pionersk on the Baltic Sea coast in the Kaliningrad region. The improvement of port infrastructure to handle cruise and cargo vessels within the Kaliningrad region is part of Russia’s 10year plan “Development of the transport system of Russia (2010-2020)”. The terminal will be able to accept cruise ships of up to 317 meters long and handle up to 300,000 passengers annually. I will also be able to handle 90,000 TEU. Completion of construction is planned for autumn 2019. Transneft predicts oil and petroleum products exports through Primorsk port will grow to 54.9 million tonnes by 2020.

Gazpromneft Marine Bunker

Gazpromneft Marine Bunker G

azpromneft Marine Bunker, a subsidiary of Gazprom Neft, was established in 2007 to provide yearround supplies of marine fuel and oils for sea and river vessels. The Company’s share in the Russian bunkering market at the end of 2017 was 16.6% with total sales of marine fuel reaching more than 2.6 million tonnes. Gazpromneft Marine Bunker currently has seven regional offices in Kaliningrad, Arkhangelsk, Murmansk, St. Petersburg, Novorossiysk, Yaroslavl and Azov, – and six subsidiary companies: Gazpromneft Shipping – managing the Company’s own fleet comprised of nine vessels; Gazpromneft Marine Bunker Balkan S.A. – bunkering in the Black Sea port of Constanta; AS Baltic Marine Bunker – operating the Baltic Sea port of Tallinn; Gazpromneft Terminal SPb – operating the bunker terminal in St. Petersburg; Novorosnefteservice storage and transshipment of marine fuel owned by Gazpromneft Marine Bunker on Black Sea; Novorossiysk Petrotransshipment Complex storage and transshipment of marine fuel in the port of Novorossiysk.

Kavkaz port, Taman, Sochi, St Petersburg, Ust-Luga, Primorsk, Kaliningrad, Baltiysk, Murmansk, Arkhangelsk) as well as river ports (St. Petersburg, Azov, Yaroslavl, Sheksna, Nizhny Novgorod, Cherepovets, Kazan, Samara, Volgograd, Astrakhan, Olya port, Rostov-on-Don, Ust-Kut, Nizhnekamsk, Tomsk, Novosibirsk) and international ports including Tallinn (Estonia), Riga (Latvia), and Constanta (Romania). Part of Gazpromneft Marine Bunker’s strategy is to create its own terminal network in the major sea and river ports.

Gazpromneft Marine Bunker has more than 200 customers, most of them are international companies. Most of major Russia’s river and marine shipping companies are Gazpromneft Marine Bunker’s customers as well. The Company has an ISO 9001:2008 compliance certificate, issued in November 2015 for the ‘Sale of Petroleum Products in the Bunkering Market’. The certificate confirms high quality of Gazpromneft Marine Bunker’s services.

Gazpromneft Marine Bunker operates in main sea ports of Russia (Nakhodka, Vostochny, Posyet, Zarubino, Kozmino, Sakhalin, Novorossiysk, Tuapse, World Bunkering Summer 2018

Oil Majors

Getting ready for 2020 As oil majors gear up for 2020, some are eyeing a future that will see LNG play a prominent role

ith a year and a half to go before International Maritime Organization’s (IMO) 0.50% sulphur in fuel cap comes into effect eyes are turning towards the oil majors. In the short term they are going to have to decide whether shipowners who haven’t fitted scrubbers will bite the bullet and burn MGO, dramatically increasing demand for that product, or will there a big demand for new blends that comply with the 0.50% cap, but probably not the 0.10% cap applicable to Emission Control Areas.

The oil major says its IMO-compliant fuels are being formulated using proprietary patented technology that can help identify potential compatibility issues during the development process.

At least some of the majors are putting significant effort into developing 0.50% compliant blends although most of this activity appears to be still under wraps. Nevertheless Platts reported recently that BP told shipowners earlier this year that it was developing two new 0.50% sulphur fuels for the Northwest European market. Meanwhile France’s Total told Platts it was “actively working on it” and has tested trial blends in its labs, but added it was still “too early for us to comment”.

“Our patented technology is helping us to develop products that address the potential hazards vessel operators could face when mixing fuels,” said Volta. No doubt shipowners will interested to know what happens they switch from using the blend of one producer to that of another,

ExxonMobil has been more forthcoming. It recently announced that it will supply fuels that comply with the IMO’s 0.50% sulphur cap in ports in Northwest Europe, the Mediterranean and Singapore. Additional locations are to be announced throughout 2018. “Our new suite of compliant fuels will include residual and distillate grades. We are at a very advanced stage in the development of these fuels, therefore making us well positioned to help customers meet the reduced sulphur limit ahead of the IMO’s 2020 implementation date,” said Luca Volta, Marine Fuels Venture Manager, ExxonMobil. “Close collaboration with our global manufacturing, research and development teams is crucial to this process. This integrated approach has helped us to develop fuels that not only meet the ISO 8217:2017 specification, but also ensures our customers get the high quality and compliant options they need through our stringent testing protocols and fit-for-use assessments,” said Volta.

“We have developed proprietary methods for determining the compatibility of various grades of fuels as well as methods for modifying fuel composition to improve quality, stability and compatibility,” said Mike Noorman, Head of Fuels Technology, ExxonMobil Research & Engineering.

Another complication was flagged up by ExxonMobil. It said: “Vessel operators will continue to have to use lubricants specifically designed to work with the fuels they have on-board to ensure that the correct level of protection is provided. ExxonMobil is developing a new range of marine lubricants specifically designed for 0.5% sulphur compliant fuels.” In a possible sign of things to come one oil major, in its role as a tanker owner, has opted for LNG. Shell has agreed time charter arrangements for AET’s two LNG dual-fuelled aframax tanker newbuildings. AET’s two 113,000 dwt vessels are currently being built by Samsung Heavy Industries in South Korea and are due for delivery from Q3 of 2018. Today’s arrangements will see Shell take both vessels on a long-term charter commencing in Q4 of this year. When operating in gas mode, the two AET tankers will emit up to 30% less CO2, 85% less NOx, 99% less SOx and 95% less particular matters, making them,

AET and Shell claim, “among the cleanest aframax tankers in the market”. However Shell is also working on a 0.50% compliant blend. On its website the oil major explains: “Shell is developing a variety of fuel product offerings to the shipping industry that include MGO and LSFO supply in key bunker ports; HSFO supply for ships with on-board scrubbers and liquefied natural gas (LNG).” Shell furthermore says it is preparing to provide 0.50% sulphur fuel blends using similar technology and the experience it gained when it launched a 0.10% sulphur ultra low sulphur fuel oil (ULSFO) blend. Meanwhile Spanish oil company Cepsa is preparing for all eventualities. It recently launched the first multi-product marine fuel supply vessel in southern Europe. The Huelva-based Oizmendi will provide ship to ship bunkering of LNG as well as fuel oil and diesel. The new multi-purpose vessel has a capacity of 600 cubic metres of LNG, 1,900 tonnes of fuel oil and 470 tonnes of diesel. This new initiative is part of the CORE LNGas Hive project, launched by the European Commission to promote the use of gas as a fuel for transport to contribute to the reduction of CO2 emissions in the Atlantic and Mediterranean European maritime corridors. At a ceremony held in Huelva to mark the start of the vessel’s operation, Cepsa’s marine fuel director, Alberto Martinez-Lacaci, said: “The new supply vessel provides great flexibility to meet the needs of our customers, as we can provide traditional marine fuels alongside more innovative fuels in the same vessel, such as liquefied natural gas, covering the entire value chain and providing the energy that each client requires.”

SCF LNG-fuelled Aframax

World Bunkering Summer 2018

Fuel Management

Up in the cloud

Classification societies and software houses are lining up to offer solutions to the headache of complying with two different fuel use reporting systems

he European Union MRV Regulation (Regulation (EU) 2015/757) on the monitoring, reporting and verification of carbon dioxide emissions from maritime transport, and amending Directive 2009/16/ EC entered into force on 1 July 2015. All ships of over 5,000 GT, regardless of flag, carrying passengers or cargo to/from European ports were required to submit their monitoring plans to an accredited verifier by 31 August last year. However a quite separate requirement is also being imposed by the International Maritime Organization. Through amendments to MARPOL Annex VI, the IMO Data Collection System (DCS) came into effect in March 2018. All ships of 5,000 GT and above must submit their IMO-DCS plan to receive a confirmation of compliance from their flag states or delegated Recognized Organisations (ROs) before 1 January 2019. The major classification societies are gearing up to assist the large number of shipowners needing to comply by the deadline. For example in February, ClassNK Consulting Service launched a support service to help shipowners set up a Data Collection Plan (DCP) in accordance with the DCS Fuel Consumption Reporting system. According to the IMO regulation, the gathering of data relating to fuel consumption amounts and a DCP outlining reporting procedures are required to be included in Ship Energy Efficiency Management Plans (SEEMP) as SEEMP Part 2. As DCP must include a description of data collection methods and management procedures geared towards conditions of the ship, and a DCP is required for every ship. Further, when a ship is being transferred to another owner, a DCP with the approved flag/class of the ship is necessary immediately upon delivery for ships being delivered on or after 1 March 2018, and by 31 December 2018 for ships delivered before March. In order to support the industry’s IMO DCS, ClassNK Consulting Service offers support by providing standard formats in addition to its existing SEEMP support service. World Bunkering Summer 2018

Bureau Veritas has introduced the first phase of My Fuel Consumption - a cloudbased and secure web application available for use on desktop, mobile and tablet. BV says that My Fuel Consumption makes compliance easy as it features a digitised process throughout the various steps of IMO-DCS (declaration of fuel consumption) and EU MRV regulations (CO2 emissions). Phase 1 of My Fuel Consumption enables owners to fill in and submit their SEEMPs Part II as requested by IMO-DCS for their Bureau Veritas classed ships using the app, and then to follow the review progress online and download their confirmation of compliance. From 2019 onwards, all ships of 5,000 GT and above will need to collect, aggregate and report fuel consumption data for each year, before 31 March of the following year, so that flag states, or delegated ROs, can verify and validate the ship data by May 31 and issue annual IMO-DCS statements of compliance to shipowners. This is already effective from 2018 onwards for EU-MRV applicable ships. Phase 2 of My Fuel Consumption, planned for this June, will enable owners to complete their declarations, for both IMO-DCS and EU-MRV, through one online form. Owners will also be able to followup progress of their reviews with Bureau Veritas using the app and then download their statement of compliance. This will be effective for their BV-classed ships and MRV ships contracted with Bureau Veritas. Laurent Hentges, Vice President Operational Excellence, Bureau Veritas, commented: ”The whole point of My Fuel Consumption is to make life simpler and easier for our clients, and therefore contribute to the reduction of emissions. It also helps them to get accessible, accurate and useful data as well as being a compliance tool.” Meanwhile, Hanseaticsoft, a German software provider, has updated its Cloud MRV module to allow companies to easily capture and report the data required for IMO-DCS in the same place.

This solution is available as a single app or integrated into Hanseaticsoft’s ship management platform, Cloud Fleet Manager free of charge for existing customers. “We’re pleased to announce that we’ve extended our MRV module to include the IMO-DCS regulation – adding all the formulas for the calculations, as well the ability to see distinctive IMO and MRV areas in the report section of our software,” Says Alexander Buchmann, Managing Director of Hanseaticsoft GmbH, He adds: “This cloud-based solution enables companies to easily collate emissions data and have reports at their fingertips. As soon as the data is entered and synchronised, it can be accessed immediately by shipping staff no matter where they are based. The new IMO-DCS feature is free for existing Cloud MRV customers and ensures they are well prepared for the new regulation coming into effect in 2019.” Companies who want to monitor and sustainably improve the overall performance of their fleet can upgrade to the full-featured Event Reporting within Cloud Fleet Manager. The Cloud Event Reporting has additional key figures available such as times of anchorage and docking, machine-related data or bunker analyses, with the MRV & IMO-DCS module included. Cloud Fleet Manager offers one platform for companies to manage their entire fleet and for information to be centralised, processed and accessed in real time using apps and mobile devices. The software portfolio comprises more than 20 different business apps. It looks unlikely that shipowners will lack options to turn to for help, at a price, however it is also clear that these dual reporting regimes do impose a real cost on the shipping industry.

LUBRICANTS

Nornik2

Beating the cold Gazpromneft-Lubricants to supply Arctic fleet

azpromneft-Lubricants is to supply the Nornickel fleet with marine lubricants under a newly signed contract. The lubricants are intended for mediumspeed four-stroke marine engines installed in the container ships, tanker and icebreaker operated by Nornickel’s Murmansk Transportation branch.

Meanwhile Gazpromneft Ocean CCL 100 HSF cylinder oil for two-stroke engines operating on fuels with high sulphur content has been approved by Winterthur Gas & Diesel. The oil satisfactorily completed a 4,000 hour validation test on a Wärtsila 7RT-flex82T engine on the Hong Kong Spirit.

The engine oils to be supplied are resistant to viscosity changes and said to be able to prevent contamination in the piston zone as well as to prevent engine corrosion due to the increased level of alkalinity. Some 80 tonnes of lubricants are due to be delivered during the first half of this year.

This means four of Gazpromneft Ocean’s product portfolio have now been approved by Winterthur Gas & Diesel: CSO 7, CCL 17 ULSF, CCL 70 and CCL 100 HSF. These products are designed for lubrication of two-stroke low-speed engines operating on fuels with different sulphur content.

Nornickel’s Arctic transport fleet consists of modern reinforced ice class vessels capable of operating in any water area. Its dry cargo fleet provides year-round services between Dudinka, Murmansk, Arkhangelsk, Rotterdam and Hamburg. The tanker Yenisei delivers gas condensate to European ports from the Pelyatkinskoye gas condensate field in the Krasnoyarsk region. The icebreaker Dudinka is used for icebreaking and port operations around Dudinka port on the Yenisei River. Roman Miroshnichenko, Branch Director (Marine Lubricants), GazpromneftLubricants said: “Due to the high quality of our products, we can ensure the reliable operation of vessels carrying out transportation along the Northern Sea Route. Marine lubricants we produce are recommended for use even in the harshest Arctic conditions.”

The approval allows the use of Gazpromneft Ocean lubricants in the wide range of marine engines manufactured by WinGD, Wärtsila and Sulzer. Roman Miroshnichenko, Branch Director (Marine Lubricants), GazpromneftLubricants says: “The marine engine is an extremely complicated mechanism that requires the high quality of fuels and lubricants. We produce Gazpromneft Ocean marine oils by the unique formulation based on advanced hightech base oils and additives. Our products are developed involving the leading manufacturers of marine engines, and the trust of Winterthur Gas&Diesel is another proof of the reliability and quality of our lubricants.”

Total Lubmarine’s “environmentally acceptable” lubricant Global marine lubricant provider Total Lubmarine has added a new grease product, BIO OG PLUS, to its Environmentally Acceptable Lubricant (EAL) range.

As well as being an extreme pressure and adhesive grease, the company says that its biodegradable qualities allow owners, managers and operators of vessels to take a more environmentally considerate approach to lubrication.

Total Lubmarine says the grease is specifically formulated for sensitive applications such as open gears and chains under high load and mitigates the challenges of working in environments where water contamination is common.

It is also a vital resource to those operating in areas requiring the use of EAL Lubricants, such as those working within jurisdiction of the US.

World Bunkering Summer 2018

2018 - 2019 IBIA EVENTS PROGRAMME MAY 14 - 15th 23 - 24th 29th 30th JUNE 6 - 7th 27 - 28th JULY 4 - 5th 25 - 26th AUGUST 1 - 2nd 16th 29 - 30th SEPTEMBER 14th OCTOBER 2 - 5th NOVEMBER 6 - 8th FEBRUARY 25th 25th

Bunker Operations Training including Safety Lecture 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015) [Mass Flow Meter] IBIA Training session What’s Next: a glance into the future of shipping. Athens, Greece (Benaki Museum)

Port Klang, Malaysia Singapore, Asia

IBIA Asia AGM 2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) [Mass Flow Meter] 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015) [Mass Flow Meter]

Singapore, Asia Singapore, Asia Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) [Mass Flow Meter] 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015) [Mass Flow Meter]

Singapore, Asia Singapore, Asia

2 Days Basic Bunkering Course (SS600:2014 & TR48:2015) [Mass Flow Meter] IBIA Africa half day Forum, AGM and Networking Event 2 Days Enhanced Bunkering Course (SS600:2014 & TR48:2015) [Mass Flow Meter]

Singapore, Asia Cape Town, South Africa Singapore, Asia

SMM - 2018

Hamburg, Germany

SIBCON

Singapore, Asia

IBIA’s Annual Convention 2018

Copenhagen, Denmark

IBIA Board metting and AGM IBIA Gala Dinner 2019

London, UK London, UK

Athens, Greece Athens, Greece

*note please view the IBIA website (www.ibia.net) for updates on training and events

Copenhagen World Bunkering Summer 2018

Athens

Singapore

Cape Town 47

India

Shankar S. India is working hard to develop the bunker infrastructure at its ports, despite a tax misstep

Recovering from a bump in the road India is working hard to develop the bunker infrastructure at its ports after a tax misstep, John Rickards reports

ndia’s bunkering scene was rocked last summer by the imposition by the government of an 18% sales tax on ship fuel to replace various state taxes of between 0-5%. The July move, part of a reform of the country’s goods and services tax (GST) system, saw bunker sales across India slump by anywhere from 90% to close to 100% within a month of the tax’s imposition. After mass outcry from suppliers, frantic talks with the national oil company, and with the effects on the bunker sector in the country apparent as almost all shipowners opted to take fuel in Sri Lanka, Singapore or Fujairah, the government reversed its decision in October and reduced the tax to 5%. While reliable post-reversal figures weren’t available at the time of going to press, it was widely expected that reducing the tax to a more reasonable level would see sales recover quickly. This three-month hiccup in India’s bunker sector aside, the country has continued to gear up for 2020 and invest in alternative fuel options. At the end of the year, both Indian Oil Corporation and Bharat Petroleum Corporation were taking steps to charter tankers to bring in LSFO on, according to The Hindu Business Line, up to seven year deals because of a lack of interest amongst local refineries to produce low sulphur fuel.

At the same time, the Ministry of Shipping announced that the inland river terminal at Ghazipur in Uttar Pradesh would have LNG bunkering capacity. The terminal will serve inland traffic on the River Ganga as well as taking intermodal loads from India’s highway network, with a maximum annual capacity of 1.2m tonnes of cargo. While no completion date has been set on the LNG element of the facility, the first phase of the terminal’s construction is due to be completed by April 2020 and the Inland Waterways Authority of India has previously expressed a desire to employ LNG-powered vessels on the Ganga. The move to modernise India’s inland shipping was further enhanced in February when Cochin Shipyards Ltd (CSL) signed an MoU with Russia’s United Shipbuilding Corporation to collaborate on design and development of “state of the art” inland and coastal vessels. Minister Shri Nitin Gadkari said: “There is a huge potential in inland waterways, cruise tourism and RO-RO transportation in the country. This collaboration would certainly bring in the much needed product as well as market innovation while harnessing newer technologies.”

CSL said in a statement that the deal would “open more avenues and give way to wider participation of these organizations in the programme of the Government of India to boost eco-friendly and economic transportation and give impetus to trade along India’s Inland waterways under Sagarmala & Make-inIndia programmes.” Gadkari has previously suggested that methanol bunkers would be an attractive option for inland vessel traffic and that his ministry was “studying deeply” how to bring it into use as a bunker fuel as it offers a cheaper and cleaner alternative to diesel. Likewise, the IWAI, alongside Goa Shipyard (GSL) and the Ministry of Petroleum and Natural Gas, has begun looking at the use of LNG or CNG to power Indian naval ships. The project will involve a pilot study looking at using Gas India Limited’s Vasco CNG pipeline to bunker ships being built by GSL for the navy and coast guard. “We can see how we can create engineering capability, because the Coast Guard needs both high speed and slow ships for surveillance. We have to work out how can we do this with gas fuel,” said Minister Dharmendra Pradhan.

World Bunkering Summer 2018

Sri Lanka

Indi Samarajiva The SLPA wants Colombo to become a major regional hub

Varied fortunes for Sri Lankan ports As John Rickards reports, Hambantota still disappoints but Colombo is looking to be a regional hub while Trincomalee develops as a bunkering base

he fate of Hambantota port was finally resolved last year, with China Merchants Port Holdings taking over the concession on a lease deal costing a total of US$1.12bn with the Sri Lankan government in December. CMPort now holds 70% of the port with the Sri Lanka Ports Authority taking the rest. Hambantota has struggled to draw traffic. Bunkering was earmarked as a key market by the SLPA, which initially tried to run services itself before opening the fuel side to tender, but earnings from it and volumes sold - at least, as can be gleaned publicly - have been as disappointing as vessel calls. CMPort sees Hambantota as a likely gateway port for southern Asia, with a proposed logistics and industrial hub built around it to bring in transshipment trade as well as direct traffic. The concession runs for 99 years, with a 15-year block on all terminal or port developments within 100km of Hambantota guaranteed by the Sri Lankan government. CMPort already runs the Colombo International Container Terminal on the country’s other coast, which it says will enable it to utilise synergies between the two. The company has yet to outline the future of the port’s bunkering facilities and services,

but if it can successfully bring the kind of international traffic to the port as was originally envisaged when development began, suppliers can only benefit. Across the country, Lanka Marine Services, the bunkering arm of Sri Lankan conglomerate John Keells Holdings, has been upgrading its supply and service offerings. Last summer it brought into operation what it says is the first doublehull bunker barge in Sri Lankan waters, the 2,600 tonne Lanka Marine Mahaweli. The vessel is LMS’ largest and carries both 380 and 180 cSt IFO as well as MGO, with a 700 tonne per hour pumping rate. LMS has also adopted digital signing for bunker nominations, smoothing the purchase process, as well as an automated alert and update system. The system emails customers in real time with exact timings when a barge is alongside, then when delivery is complete with a full rundown of products delivered, quantities, and time of completion. LMS supplies much of its bunkers through the port of Trincomalee. Late last year, Sri Lanka’s prime minister Ranil Wickremesinghe revealed that the government had invited foreign states to help develop parts of Trincomalee’s harbour.

He also revealed that discussions had taken place with India about developing oil storage tanks in the port, along with terminals and jetties there, though agreement had only been reached with India about the tank farm. The aim of the development is to increase transshipment traffic through the port; the government says it has no problem with other countries taking over parts of the port so long as traffic rises. With productivity and economics improving, the SLPA has reported that monthly transshipment operations at Colombo (including CMPort’s own box terminal there) are up by around 20% year-on-year to 436,303 TEU. Overall container traffic was up 16.4% to 565,155 TEU, while monthly vessel calls were up 8.1% to 388, most of them container ships. The government and the SLPA are keen to see Colombo become a major maritime hub and a gateway port between the main east-west trades and India. The SLPA put in place a three-year development plan last year to boost container volumes and raise the country’s port business as far as possible - with obvious knock-on benefits for the country’s bunker suppliers and other associated industries.

World Bunkering Summer 2018

Pakistan Gwadar Port is a key part of the CPEC project

Offering more choice

Pakistan’s bunker market has long suffered from a lack of product diversity, but with 2020 approaching and port investment ongoing that situation is changing to some extent, John Rickards reports

he range of fuel available in Pakistan is at last beginning to widen. Last year, Orion Bunkers launched LSMGO into the market, while the summer also saw IFO380 promised in the country for the first time. “Last year we introduced LSMGO and we have seen customers asking for more,” Orion’s Zeeshan Arshad told World Bunkering. “However, the price of MGO DMA and LSMGO is similar but high compared to neighbor ports. The reason for this is that Pakistan State Oil imports it and the government puts different taxes and levies that make our price higher, but still vessels here are lifting LSMGO. Local refineries have no plans to upgrade infrastructure for the 2020 global sulphur cap, so we hope PSO will import low sulphur fuel oil to meet demand for vessels calling at Karachi.” Orion remains reasonably optimistic about the market in general. “Business remained okay last year, but we have seen the number of inquiries increase in the last two months of 2017 due to very good prices offered by local refineries [who had a glut of stored fuel oil late in the year]. The prices attracted more business for Karachi as 180cSt was lower than the 380cSt price in Fujairah at that particular time. However, now refineries’ storage is back to normal therefore prices are in line with other neighboring ports,” Arshad said.

World Bunkering Summer 2018

“As we know, the Indian government put 5% VAT on bunkering. After the VAT was implemented we have seen vessels prefer to take cheap 180cSt rather than expensive 380cSt. So, in this case, I hope volumes will increase in the coming months.” The Pakistan arm of Dubai-based Prima Marine, part of the Shaikh Faisal Group, has in the meantime been awarded the exclusive bunker supply contract for the port of Gwadar. The company said it had purchased two new tankers specifically for the port, which has been under heavy development in recent years as part of the China-Pakistan Economic Corridor. It also said that as well as offering IFO180 and MGO, it would also be able to offer IFO380 “shortly”, the first time the grade has been offered in the country. “Gwadar Marine Services are developing the port as part of the China-Pakistan Economic Corridor and will see it established as a major deep-water port in the region. It is substantial project and one that Prima is both excited and honored to be a part of,” the company said in a statement.

The future of the CPEC project and Gwadar’s role in it has been subject to some diplomatic - and geological - strain in recent months. In November, China halted funding for three road projects that were part of the project, including the last major section of the Karakorum Highway between Raikot and Thakot, ostensibly over concerns about corruption and management practices. Speculation, though, was that the move followed the Pakistan Finance Ministry’s refusal to allow trade in yuan at Gwadar, a decision it promptly reversed in December. Concerns have also been raised about the tectonic stability of the area. The port lies close to the Makran Trench subduction zone and in January a team of 40 researchers from both countries conducted a geological survey of the region on a seismic research vessel. Gwadar suffered an 8.1 magnitude earthquake centered 100km off the coast in 1945 which caused a devastating tsunami, as well as a smaller but still sizeable quake two years later, and another in 2013 that created a new island off the coast.

LNG

In a sign of a quickening pace in the move towards LNG SCF Group currently has six dual-fuelled Aframax tankers under construction and due for delivery between Q3 2018 and Q1 2019. Two of them will be on time charter to Shell for up to 10 years

Interest grows in LNG As pressure on the industry to cut polluting emissions increases, more owners are considering going for gas

hile the number of LNG fuelled ships remains small, many owners appear to be giving this option serious consideration. This was demonstrated recently by a good turnout when ABS partnered with industry stakeholders Wärtsilä, Winterthur Gas & Diesel (WinGD), GTT, Shell & Gard to host a joint conference exploring the technical and operational challenges of LNG as a marine fuel. “LNG as a fuel is already transforming the shipping industry and will continue to expand further as shipowners and operators look to comply with the latest environmental requirements,” said ABS Global Ship Systems Center Director, Elias Kariambas. “The attendees heard directly from our event partners on the development of new LNG-fuelled projects and related technologies. Forums like this help drive industry dialogue and provide a vital platform to share experiences and discuss evolving technology.” “Given the environmental superiority and commercial attractiveness of LNG as a fuel, it is with no doubt that LNG will capture the merchant marine business,” said WinGD’s senior project Manager, Marcel Ott. GTT LNG as Fuel Vice President, Julien Bec said: “We are committed to develop reliable and cleaner solutions that answer the owners’ requirements.

This seminar was the occasion to exchange with the industry, to build the shipping of tomorrow together.” Arista Shipping Technical Manager, Antonis Trakakis said: “LNG as fuel has the most extensive service record among all other options for compliance, and, apart from meeting all environmental regulations, it clearly brings a substantial cost benefit which justifies the investment.” Shipowners and shipping managers were among 200 international delegates attending at the Stavros Niarchos Cultural Centre on March 15. The seminar presenters discussed the latest thinking on a range of key LNG issues, including technology for dual fuelled ships, the regulatory framework and first hand operational experience of LNG-fuelled vessels. Arista Shipping and WinGD presented insights before Sovcomflot, Carnival, Shell, Wärtsilä and Arista joined ABS at the Athens event in a round table on the prospects for LNG as a fuel for vessels. The forum included an update on Project Forward, which is promoting adoption of LNG as a marine fuel with a fully LNGpowered deep sea dry bulk carrier.

Meanwhile SEA\LNG, a multi-sector industry coalition aiming to accelerate the widespread adoption of LNG has launched a new free-to-access online tool to improve understanding of the current, and rapidly evolving, LNG bunkering infrastructure landscape. The new Bunker Navigator Tool utilises member, marine information services, and publicly available data to provide easy access to the latest developments in the global LNG bunkering infrastructure. SEA\LNG’s map-based tool provides an overview of key LNG bunkering developments and how this growing infrastructure relates to major global shipping routes, traditional oil bunkering ports, and the bulk LNG infrastructure which will provide the foundation for future bunkering services. Peter Keller, SEA\LNG chairman and executive vice president, said: “The coalition’s mission since inception has been to further the shipping industry’s knowledge of the viability and sustainability of LNG as a marine fuel. A key barrier has been a general lack of understanding of current and forthcoming LNG bunkering infrastructure. What we sought to achieve with the Bunker Navigator Tool is a quick, easy-to-access platform that includes relevant, up-to-date, and free-to-access information on LNG infrastructure and bunker development.” World Bunkering Summer 2018

LNG

EA\LNG points out that LNG is readily available in bulk at circa 150 locations worldwide, and there is a huge bulk LNG infrastructure of regasification terminals and liquefaction plants globally. Of the world’s top oil-bunkering ports, nine of the top ten offer LNG bunkering, or will do so by 2020. However, the organisation notes, it is the movement of LNG from bulk facilities to the ships, more commonly known as the ‘last mile’, where efforts are being concentrated to enable easy access to LNG as a marine fuel. As well as an overview of key LNG bunkering developments, the map-based tool enables access to case studies which describe the bunkering projects being developed by SEA\LNG members at specific locations, with more added as they become available. SEA\LNG makes the case that, by addressing the core compliance issue for owners – the fuel their vessels are burning – LNG provides a viable solution for the long term.

LNG emits zero SOx, virtually zero particulate matter, and – depending on the technology used – 90% fewer NOx emissions. It adds that LNG’s greenhouse gas (GHG) performance “represents a major step forward when compared with traditional marine fuels. Utilising best practices and appropriate technologies can result in realistic reductions of GHG by about 20%”.

In a new initiative to bridge that ‘last mile’ “K” Line, Chubu Electric, Toyota Tsusho, and NYK Line have entered into joint discussions on supplying LNG as a marine fuel to ships in central Japan. A statement says: “The four companies will jointly discuss specific LNG customers and supply methods in preparation for the commercialization of LNG bunkering business.”

Keller concluded: “A collaborative approach to understanding the opportunities – and then tackling the associated commercial barriers – to LNG is crucial to fulfil its potential as an alternative to traditional bunker fuels. The reality is that LNG bunkering infrastructure is expanding at pace, and with the launch of the Bunker Navigator Tool, SEA\LNG hopes to raise awareness of, and build industry confidence in, the rapidly growing global availability of LNG bunkering.”

Meanwhile SCF Group (PAO Sovcomflot) has signed time-charter agreements with Shell for two dual-fuelled aframax tankers. The vessels are part of a series of six SCF Group tankers currently under construction and due for delivery between Q3 2018 and Q1 2019. The two tankers will be on time charter to Shell for up to 10 years, with a minimum commitment of five years. The vessels will also use Shell’s specialised LNG bunker vessels, such as the Cardissa, for fuelling in North West Europe. Shell will provide further supply points across North West Europe and the Baltic as it expands its LNG fuelling infrastructure.

Boost for LNG at Gothenburg Construction of an LNG facility is under way at the Port of Gothenburg. At present Skangas is supplying vessels with LNG using ship-to-ship bunkering. Swedegas, which owns and runs the Swedish gas transmission network, is set to expand the number of LNG options at the port with the construction of a facility that will enable LNG bunkering while vessels are loading and discharging at Gothenburg’s Energy Port. “With both Skangas and Swedegas operating at the Port of Gothenburg, we have two companies that complement each other with different offerings. Shipping lines now have a further incentive to consider switching to LNG,” said Jill Söderwall, Vice President and Head of Commercial Operations at the Port of Gothenburg Energy Port.

World Bunkering Summer 2018

swedegas

cyprus

Hoping for LNG

The Cypriot bunker sector has spent much of the past few months with a sharp eye on the future shape of the country’s fuel industry, John Ricards reports

the least; last year’s transiting ship tonnage was up around 4%, but the canal’s earnings have been largely flat since its expansion. Nevertheless, the hope remains that if Cyprus can develop an LNG bunker sector it could become an attractive refuelling point for container ships bound westwards in particular. Moves to reduce local emissions from shipping are also progressing, at least in terms of promoting investment. The EU-funded Electrification in the Eastern Mediterranean project held an event in Limassol last autumn looking at Cypriot plans for cold ironing, the impact on local power consumption and production of electricity, and the use of hybrid and renewable sources of power for ships at berth and on local short sea routes, and the likely synergies with LNG use. Limassol is one of four ports involved in the Elemed project, along with Piraeus and Killini in Greece and Koper in Slovenia. In the meantime, Nicosia-based software company Veltrone has launched a ship management suite that includes bunkerbuying capacity that allows users to monitor price changes, submit enquiries and handle the entire contracting sequence through to delivery completion. The software uses blockchain technology as a secure method of tracking and recording each transaction involved in the process.

World Bunkering Summer 2018

Innovation

Project aims to accelerate technology uptake BMT and Black & Veatch working on quantifying benefits of fuel efficient technologies

K based technology group BMT is to take the lead in a £1.8 million Vessel Technology Assessment System (VTAS) project. The work has been commissioned and funded by the Energy Technologies Institute (ETI) and will be carried out in partnership with Black & Veatch. The project’s primary objective is to assist financiers to understand and confidently quantify the benefits of investing in fuel efficient technologies for existing and future vessels, thus accelerating the deployment of viable fuelefficient technologies.

David Butler, Project Manager for HDV marine efficiency at the ETI says: “Maritime transport emits around 1,000 million tonnes of CO2 annually and is responsible for about 3% of global greenhouse gas emissions. Furthermore, the International Maritime Organization states that emissions could rise by 50 - 250% by 2050 compared to 2011 levels. Therefore, the efficient use of fuel through the implementation of energy saving devices (ESDs) will be critical to the future affordability, security and sustainability of maritime transport.” BMT says that, in partnership with Black & Veatch, it will look to create “independent, transparent and insightful information to engage and support stakeholders World Bunkering Summer 2018

and decision makers who can positively influence commercial shipping to reduce fuel consumption”. It adds: “This will support and promote the drive to change the way in which the world’s shipping power and propulsion is designed and operated. The project will focus on characterising and addressing perceived barriers to the adoption of ESDs, providing data driven technical models of individual ships and dovetailing this with the necessary financial modelling to help capture the CAPEX and operational issues accurately.” While the project is still ongoing the two companies plan to establish a presence in the commercial shipping market to “provide enduring support and continue to promote adoption of ESDs beyond the completion of the VTAS project”. John Buckingham at BMT says: “There is a choice of ESDs within the commercial shipping market such as Flettner rotors, high efficiency propellers and wingsail technologies and yet, the uptake to date has been somewhat slow, due to the perceived technical and financial risks of implementing these technologies. Through improved ship-based modelling, assessments and data validation, this project will allow us to explore the options and provide independent evidence that stakeholders can trust to make an informed decision.”

Butler adds: “We hope that this project will help to tackle the market barriers that currently exist which limit the uptake of cost-effective fuel efficiency technologies. Combining this project with our current £10m portfolio of demonstrations in the areas of Flettner rotor sails, high efficiency propulsion systems and new waste heat recovery technology, will help us reach our target of a 30% improvement in fuel efficiency for marine vessels.” LPG to fuel VLGCs Liquefied petroleum gas (LPG) is to be used as a marine fuel for the first time. It is to power the main engines on two very large gas carrier VLGC newbuildings for Exmar which will fulfil long serve long-term commitments to carry LPG worldwide for Norway-based Statoil. Both vessels will be built by Hanjin Heavy Industries & Construction at Subic Bay, Philippines, for delivery in the third quarter of 2020. Exmar says the development is the result of Statoil’s commitment to improve the sustainability of its operations and a longstanding cooperation with Lloyd’s Register and MAN Diesel & Turbo to develop an efficient LPG fuel system. The shipowner says LPG is a superior fuel because does not contain any sulphur and substantially reduces CO2 and NOx emissions and particulate matter is halved as compared to a residual fuel-only engine.

Bangladesh

Updating the rules The maritime sector in Bangladesh is growing as government policy focuses on external trade but, as John Rickards reports, the country’s maritime laws need updating

he government of Bangladesh has been keen for some time on promoting the country as a regional hub, but its bunker sector hasn’t always lived up to the rest of the maritime sector, in part due to tight control imposed in the past by the state oil company. World Bunkering caught up with two of the country’s prime maritime service providers to get the situation on the ground. Belal Chowdhury of maritime law firm FM Associates said, “Business has risen gradually over the past years. In terms of ‘Dry’ shipping work we have witnessed a rise in work relating to contracts of affreightment, cargo claims, claims under marine insurance policies, arrest of ships and judicial sales. We have also seen an increase in legal works related to ‘wet’ shipping in particular salvage and collision actions. “In light of the recent increase in marine traffic in Bangladesh, we expect that the government shall bring in amendments to major maritime laws to be up to date with international ones.” Chowdhury explained: “Bangladesh currently possesses few laws governing shipping or maritime affairs and they are, however, inadequate to meet the ever-rising demands of Bangladesh’s fastexpanding economic and trade relations with foreign countries and developments in the shipping industry.

Besides there exist maritime laws which date back to 1856 and whose interpretation is set by court precedence. One of the main challenges is therefore the lack of regulation as well as transparency in the legal sector. Additionally, there are many areas in the sector where there are no laws at all. For example, there are no laws on maritime priority, marine security, marine pollution etc. “A sound system of maritime law appears not only to be appropriate but also necessary. There is a tendency, understandable given our colonial past, to judge and examine the national maritime laws from an exclusively English or Imperial historical perspective. The nature and development of maritime law of Bangladesh must, therefore, be assessed and approached by reference to Bangladesh as a fully independent nation. Bangladesh should have a clear and strong national admiralty and maritime legislative arrangements of its own.” Zalal Uddin Ahmed of Coast to Coast P&I Services echoed the sentiment that while the economy was growing, some changes are needed for the country to fulfill its potential. “Bangladesh has placed significant emphasis on the growth rate of its gross domestic product and the external sector has been a source of country’s economic strength for several years,” he said.

“However, Chittagong has become quite busy in the last couple of years. Chittagong now handles volumes well above its designed capacity of 1.7 million TEU per year. In 2016, it handled 2.3 million TEU. Vessels with a 9.5 meter and above draft cannot berth at Chittagong’s main jetties and must anchor in the outer bar of the port. Vessels of more than 11.5m draft need to discharge at Kutubdia, outside port limits, by ship to ship operation in order to enter the anchorage at high water only. “The severe congestion becomes costly for traders, shipowners and consumers through increased import costs. Charterers are also experiencing demurrage for thousands of dollars. Again, the number of jetties has remained the same since 2007. This problem of the port’s poor infrastructure has been accruing over the years. All the above facts lead towards the requirement for a deep sea port. “However, in terms of the available facilities related to the maritime sector – dry-docking, bunkering (IFO, MGO), lab testing - maintaining international standard can be included. Indeed, the Bangladesh Government needs to put immediate emphasis on maritime infrastructure development with the vision of becoming an influential economic and geo-political player in the Bay of Bengal.”

World Bunkering Summer 2018

In the latest of a long line of similar cases, a master has been jailed by a US court and a shipowner fined heavily for failing to maintain the ship’s oil and garbage record books accurately

s has been the standard practice for many years now, US authorities have again used charges relating to record keeping to punish illegal discharging of oil into the sea.

These oily waste discharges bypassed the use of the vessel’s required oil discharge monitoring equipment and were done while the vessel was in the Caribbean Sea and the Gulf of Mexico.

Edmon Fajardo, the master of the tanker Sea Faith, has been jailed for six months, to be followed by two years of supervised release, by a US court after pleading guilty to charges of failing to accurately maintain the ship’s oil record book and garbage record book. He was also fined US$2,000.

Sea World and Fajardo further admitted that on 10 and 15 March 2017, Fajardo ordered crew members to throw plastic waste, empty steel drums, oily rags, batteries and empty paint cans directly overboard into the ocean. None of these garbage discharges were recorded as required in the vessel’s Garbage Record Book.

The shipowner, Sea World Management & Trading, was fined US$2.5m and ordered to serve a three-year term of probation during which all vessels operated by the company and calling at US ports will be required to implement a robust Environmental Compliance Plan.

Sea World and Fajardo pleaded guilty to two felony violations of the Act to Prevent Pollution from Ships for failing to accurately maintain the Sea Faith’s Oil Record Book and Garbage Record Book.

The case heard by a court in Corpus Christi, Texas, related to the discharge of oil and garbage from an oil tanker while operating off the coast of Texas, according to US Attorney Ryan Patrick.

Legal advice on major acquisition London-based shipping law firm Ince & Co has advised Aegean Marine Petroleum Network (AMPNI) on the acquisition of HEC Europe.

Sea World and Fajardo both admitted that oil cargo residues and machinery space bilge water were illegally dumped from the Sea Faith directly into the ocean while the vessel was transiting to Corpus Christi without the use of required pollution prevention equipment.

Ince & Co was instructed by its longstanding client AMPNI, the world’s largest independent physical bunker supplier, on the acquisition of HEC Europe for about US$367 million. The acquisition was signed on 20 February and closing is subject to customary conditions.

They also admitted that these discharges were not recorded in the vessel’s Oil Record Book as required. Specifically, on five different occasions between 10 March 2017, and 18 March 2017, Fajardo ordered crew members to illegally discharge oily waste from various locations of the vessel’s cargo/deck spaces.

Consideration for the acquisition included a mixture of accounts receivable assignments, cash and/or notes, the assumption of debt and the issue of 33% of the equity in AMPNI.

World Bunkering Summer 2018

According to Ince & Co, the acquisition of HEC is an important strategic move for AMPNI in line with the evolving need for green products and services in the shipping industry. HEC specialises in removing, treating and disposing of oily waste from vessels and oil rigs and currently has operations in Greece, Germany and Gibraltar, operating under the Green Ports brand. Matthew Stratton and Stephen Jarvis led the transaction with support from Ince’s corporate, finance, competition and tax colleagues and working closely with teams in its Hamburg and Piraeus offices. The law firm’s International Corporate Partner Matthew Stratton commented: “The team were delighted to have been instructed by AMPNI on this transaction, after having worked on a number of other impressive corporate transactions recently, including the acquisition of V.Group by Advent and the acquisition of Seaway Heavy Lifting by Subsea7.”

iStock

LEGAL

Tanker master and owner convicted on oil record book charges

EQUIPMENT & SERVICES

Enginei fuel management screen

“Next generation” weather routeing promises fuel savings Tidetech claims optimisation against tides and currents in European coastal waters can deliver bigger fuel savings than a North Atlantic passage

cean meteorological data provider Tidetech says that owners are increasingly requesting high resolution data for regional trading patterns and coastal waters where tides and currents can have a greater impact on fuel consumption than on an ocean voyage. The company says the renewed take-up of interest in weather routeing is being driven by a combination of related factors. A combination of the EU monitoring, reporting and verification (MRV), the 2020 sulphur cap and IMO’s date collection system (DCS) regulations means owners are seeking cost-efficient ways to save fuel, lower emissions and improve schedule performance on existing vessels. “There is a long standing misconception that weather services can only have a benefit when sailing in blue water and that once ships are in coastal waters or traffic separation schemes that this part of the voyage cannot be optimised,” explains Tidetech Founder and Managing Director Penny Haire. “We have proven definitively that there are more potential cost savings from optimising against currents in UK coastal and Northern European waters than there are across the whole North Atlantic and customers are already taking advantage of this in speed optimisation and performance analysis.”

As a result, operators can predict ETA more accurately and use vessel speed and power settings to arrive on schedule, even when it changes. According to Tidetech it is the only provider of high resolution modelling of coastal tides and currents, including in critical locations such as the Malacca Strait and English Channel. It also delivers combined ocean current and tide data on a global basis. The trend is being pushed along by the exponential growth in competitivelypriced satellite bandwidth and by the greater use of fleet management systems that can combine layers of information to display a complete operation on a single dashboard. “For owners and operators, better data and information can feed directly into enhanced fleet and voyage management, whether this is driven by compliance or commercial reasons,” adds Haire. “Not limiting one’s thinking to the idea that voyage optimisation is only about deepsea shipping also means there are completely new classes of vessel that could benefit, including coastal and short sea vessels, ferries, workboats and OSVs.”

Using enterprise-grade cloud-based servers means Tidetech says it can generate tidal models in minutes which would have previously taken a day on a supercomputer and deliver group files for ingestion into onboard systems with minimal satellite bandwidth consumption. Predictive analysis technology for 2020 compliance 20|20 Marine Energy and BunkerMetric are launching a new predictive analysis tool that enables ship owners, operators and fuel buyers to understand the financial and operational impact of the impending MARPOL Annex VI global 0.50% sulphur cap on their fleets when it comes into force on 1 January 2020. The technology will enable stakeholders in the marine fuel value chain to assess and implement the most effective strategy to minimize costs, mitigate risks, and ensure compliance. The 2020 SEER (Sulphur Emissions Evaluation and Risk management) software provides ship owners and operators with a number of capabilities in relation to marine fuel procurement.

World Bunkering Summer 2018

Strategically, the two companies say, SEER also enables the user to evaluate the cost and impact of different strategies for compliance with the MARPOL Annex VI 0.50% global sulphur cap regulation when it is enforced in 2020. SEER generates a comparative economic analysis of different vessel configurations for operating under the new sulphur rules. For example, a ship owner can compare the economics of a conventional vessel burning distillates, to a vessel equipped with a scrubber, or using LNG. The analysis takes into account the CapEx and OpEx of each variant, as well as a detailed consideration of range, tank sizes, margin, preferred fuelling locations, and geographical fuel price spreads, among others. The insights generated enable the user to make “the most informed decision in terms of what compliance strategy is adopted on a vessel-by-vessel basis, which can be extended to a fleet wide risk and cost management strategy”. Battery pack upgrade for six offshore vessels Rolls-Royce Commercial Marine has received an order to deliver a batterypowered energy system for six offshore vessels (PSV’s) which have been built by Cosco Guangdong in China. The delivery includes the Energy Storage Container System;

an upgrade of the existing Rolls-Royce ship design engineering package to match the new features; an upgrade of the Dynamic Positioning system and the ACON control system; and the new Rolls-Royce Energy Monitoring system, which will provide a complete overview of energy usage onboard. New tank module checks fuel quantity Royston Diesel Power has launched a tank monitoring module to it Enginei fuel monitoring system. The module features Electronic Fuel Monitoring System (EFMS) technology to provide real-time inventory measurement capabilities. The system accurately records data by monitoring bunker deliveries and individual engine consumption, with the data presented on touchscreen monitors installed on the bridge and in engine control rooms. In addition, the system transmits the information from ship to shore, where it can be accessed through a web dashboard with computer generated graphs and Google mapping to show an operational profile of a vessel.

Alongside fuel consumption, the Enginei system also provides a low-cost method of measuring vessel emissions, including CO2, NOx and SOx, for monitoring and assessment against regulations. In addition, to help operators on inland waterways calculate tax payments to relevant authorities, Enginei also includes a geofencing capability. This feature enables accurate fuel consumption measurements to be linked to voyage and GPS data to enable fuel tax liabilities in different waterway tax zones to be calculated, recorded and reported quickly and efficiently. Royston says that the Enginei integrated fuel management system is compatible with all marine engine types and can be interfaced with new-build engine installations or retrofitted to operating vessels.

Incorporating modern sensor technology, volumetric readings are calculated by the module after measuring variables in temperature and pressure to produce accurate fuel readings. The information is displayed locally but can be rapidly transmitted to the Enginei web portal as part of a comprehensive monitoring and control system package. Royston’s Enginei provides comprehensive fuel data analysis and reporting options to provide vessel owners and operators with a detailed picture of engine performance and other mission critical information. This ‘complete accountability’ capability improves asset visibility and control, decision making processes at all levels, and helps to resolve any shortfalls encountered both onboard a vessel and at an onshore facility, ensuring fuel security. Adrian Tolson

World Bunkering Summer 2018

EQUIPMENT & SERVICES

t a tactical level, fuel buyers can optimize their fuel procurement strategy on a vessel-by-vessel basis to minimize total bunker costs. The tool considers a range of factors that impact bunkering decisions, including fuel price forecasts, trade patterns, vessel speed, consumption, product specifications, time spent in Emission Control Areas (ECAs), and tank sizes. Using proprietary simulation and optimization algorithms, SEER generates an optimal bunkering plan, specifying the amount of each fuel type to purchase at each port call, reducing fuel costs and increasing efficiencies. The tool can also be used to benchmark existing fuel procurement practices.

SCRUBBERS

Jockeying for position

As the 2020 deadline for the 0.50% sulphur regulation draws near scrubber manufacturers are looking to secure strong positions in this expanding market

here is not much time left for owners to fit SOx scrubbers in time to meet the 1 January 2020 deadline to comply with the IMO’s 0.50% sulphur limit. If the decision is not made soon they will be in the default position of having to burn compliant, and potentially much more expensive fuel, at least to start with. Unsurprisingly scrubber manufacturers are vying for a share of the market and focusing on marketing strategies to persuade shipowners that their solutions are best. For example, Goltens and Yara Marine Technologies have entered into a nonexclusive global engineering and installation pact for Yara’s SOx Scrubber System from 2018, including sales representation in North America, the Middle East and Singapore. “Yara Marine is a leader in exhaust gas cleaning systems,” says Goltens COO Roy Strand. “The addition of their well proven SOx Scrubber System to our Green Technologies sales and service offerings is a real win for Goltens, and an added advantage for our customers.” Kai Låtun, Chief Sales and Marketing Officer in Yara Marine, is equally happy with the Goltens deal: “The value of a strong sales and service network cannot be underestimated. Goltens brings proven global environmental retrofit expertise and solid maritime relationships to this agreement.” Yara says that the looming 2020 deadline will lead many shipowners and operators to calculate their return on investment in scrubber technology, compared to spending more on low sulphur fuels indefinitely. “The regulatory emissions deadline is no longer in doubt. It is happening,” says Strand. “When emissions regulations are applied globally, the investment in exhaust cleaning will make more sense to many operators. There will be more customers who choose t o invest in scrubber technologies due to the clear payback.”

Of course owners will only have to decide whether to buy scrubbers but also which particular system to buy. Yara is basing its sales pitch on its “simpler, lighter and more efficient systems”. “The Yara in-line system has no internal moving parts, and our magnesium oxide technology is cheaper to operate and maintain, and safer than competing systems that use caustic soda,” Låtun says. Meanwhile Alfa Laval is adding a connectivity solution to its PureSOx system. It claims that, with a new connectivity programme for Alfa Laval PureSOx scrubbers, the company is adding value for exhaust gas cleaning customers. The company promises both simplicity and greater reliability in SOx compliance. There are now nearly 100 Alfa Laval PureSOx systems in operation and, according to Alfa Laval, in compliance. The company says: “With the launch of the new PureSOx connectivity programme, it will put customers even farther ahead, providing new ways to save time and money. The programme builds on the new Alfa Laval Remote Emission Monitor (ALREM), a data reporting and storage device that is part of all new PureSOx orders and also available for retrofit.” “Customers want to eliminate hassle and downtime, so that they can spend more time performing,” says Olaf Van Heerikhuizen, Manager Service Gas Systems. “Connectivity is the key,

as we’ve already seen in ALREM projects with major PureSOx customers. The ALREM lays the groundwork for a range of data-driven services that will make compliance – and life on board – much easier.” The first service to be rolled out in the PureSOx connectivity programme is one that simplifies proof of compliance and is available on all vessels where the ALREM is installed. Rather than analysing scrubber compliance data themselves, customers receive user-friendly, graph-based reports via the Alfa Laval Touch Control system on board. “This is immediate pain relief for customers, whose scrubbers are legally required to log around 50 data signals every three minutes,” says Van Heerikhuizen. “Instead of interpreting a hundred pages of raw sensor data for just a few days of operation, they get a finished compliance summary that they can hand over directly to authorities.” If they choose, customers can also review the data for their vessel or fleet via an online portal. Accessible on a subscription basis for a monthly fee, the portal lets them view their vessel’s route and receive a SOx compliance summary for the dates they select.

Spliethoff’s ro-ro Timca is equipped with an Alfa Laval scrubber

World Bunkering Summer 2018

company NEWS

Al-Iraqia Shipping Services & Oil Trading (AISSOT) is a JV company promoted under the aegis of Ministry of Oil, Iraq to handle plethora of activities ranging from Oil Trading, Shipping, Oil Storage Terminals, Marine Services, Land Logistics and Bunkering

he JV partners are Iraqi Oil Tanker Company (IOTC) & of Aissot Arab Maritime Petroleum Transport Company (AMPTC). The JV is based on Iraqi Oil Ministry’s vision to strengthen the national oil / shipping companies in partnership with capable international companies that have the experience and track record to benefit the Iraq economy and expand its critical infrastructure to international standards. AISSOT is providing natural synergy to its partners both in horizontal and vertical integration in trading, shipping and oil & gas services. Needless to mention, Arab Maritime Petroleum Transport Company (AMPTC) is owned by member countries of the Organization of Arab Petroleum Exporting Countries (OAPEC) and Iraqi Oil Tankers Company (IOTC) is an Iraq government owned company which owns and manages tankers for transportation of petroleum products. Iraq being the second largest crude oil exporter in the middle-east attracts almost 80 VLLC’s / Suezmax / Aframax every month for loading. Also, with political stability in the region Iraq economy has been growing; attracting shipping businesses on other ports of Um Qasr & Khor Al Zubair as well. As a resultant, Iraqi ports are growing exponentially as

World Bunkering Summer 2018

shipping hub over the years and AISSOT is confident to tap the potential and cater to all marine related needs of the shipping lines calling Iraq anchorage area and nearby ports by offering them end-to-end bunkering solutions meeting international standards on quality and safety. AISSOT is now the leading marine fuel physical bunker supplier in Iraq by controlling all key stages of the marinefuel supply chain by providing exceptional value to our customers. We are offering broad range of marine-fuels which comply with internationally standards like ISO, MARPOL through SIRE / Oil Majors approved bunker-barges. AISSOT is also working closely with Ministry of Oil, Iraq to offer MARPOL-2020 compliant fuel to our customers from 1st January 2020 onwards. AISSOT is offering customers options of supplying the VLCCs before loading at anchorage while waiting or supply at Basrah OPL after loading at a location outside the draft restricted channel (Lat. 29-12.0N Long. 049-09.7E) for VLCCs to maximize crude-oil loadings first and then take maximum bunkers without diverting their ships for “bunker-only-call” at other ports, thereby leading to huge commercial savings for the owners / charterers.

AISSOT is already a major tanker player in the middle-east market with a strong appetite for building a fleet of VLCCs with an aim to take advantage in the current market of rebalancing. As per the JVs mandate, AISSOT plans to acquire significant fleet of tankers for transportation of crude oil and petroleum products from Iraq to end-users. AISSOT’s global team of highlyexperienced shipping, marketing & operating professionals stationed at Iraq and UAE are available 24/7 to help with customers’ queries and offer customized fuel procurement solutions that cater to a wide range of customer needs. With oil terminals in Iraq and floating storage in Basrah anchorage AISSOT is committed to provide continuous availability of marine fuels to meet customer requirements. For catering to various pricing needs of customers especially in high volatile bunker market, we are offering various options ranging from term contracts, fixed, spot to prices linked to benchmarks like Platt’s, Bunker-Wire, etc.

Contact Address: #3406, JBC-1, Cluster-G, JLT, Dubai, UAE Tel.: +971-4-566 7223 Email: bunkers@aissot.com Website: www.aissot.com

COMPANY NEWS

GTT

Gaztransport & Technigaz GTT (Gaztransport & Technigaz) is an engineering company which designs cryogenic membrane containment systems dedicated to the transport and storage of liquefied gases, in particular LNG

or over 50 years, GTT has developed technological expertise in the liquefied gas industry, building trusting relationships and lasting partnerships with the different stakeholders (shipyards, shipowners, gas companies, terminal operators and classification societies). The company provides them with established, secure and efficient technologies for containment of liquefied gas at low temperatures. GTT helps its customers define their requirements before translating them into membranebased solutions for multi-gas and LNG transport, as well as onshore and offshore storage (FSRUs and FLNGs). New markets The company is currently expanding its offer to new and promising markets, providing customised technological and engineering solutions for small and mid-scale vessels, as well as new applications for the LNG market, such as the use of LNG as a propulsion fuel and the associated logistic chain. GTT develops innovative solutions to ease bunkering operations as well as to optimise the LNG volume and the space occupied, resulting in a minimum loss of cargo capacity. The company offers highly competitive storage and handling solutions which cover the whole logistic chain,

from the LNG liquefaction and export terminal in a producer country to the tank of an LNG fuelled ship. Future stakes 2020 will see the implementation of the Global Sulphur Cap, which will reduce the limit for sulphur oxide emissions in the world’s oceans from 3.50% today to 0.50%. The European Union and China have also announced measures to limit the emissions of vessels in many ports and high traffic areas. LNG as fuel offers a viable solution for this energy transition. LNG propulsion has been used successfully on LNG carriers for many years. It reduces significantly the emission of SOx and NOx. Applications GTT provides bespoke solutions for different segments: • very large container ships (VLCS); • bulk carriers; • cruise; • tankers.

Support GTT offers its customers a wide range of services, at each stage of the liquefied gas chain: • consultancy; • training; • maintenance assistance; • technical studies. Advantages GTT’s proven membrane containment systems offer several distinctive advantages: • optimisation of cargo storage space ; • reduced vessel construction and operation costs ; • modular design allowing for flexible assembly in vessels of all sizes without significant capital expenditures.

More information on: www.gtt.fr GTT 1 route de Versailles 78470 Saint-Rémy-lès-Chevreuse France +33 130 234 226 commercial@gtt.fr

GTT

World Bunkering Summer 2018

company NEWS

ENACOL, Energy On Your Route. Adding Value to West Africa Bunker Customers

NACOL is based in Cape Verde, strategically positioned within crossatlantic major shipping routes in West Africa connecting Europe, Africa and the Americas.

Enacol can deliver bunker fuels to international fleets in Cape Verdian main ports of Mindelo (alongside berth and anchorage bunker service) and Praia (service alongside berth only) by barge, truck or pipeline.

Since 1979, the company dedicates to the marketing of fuels and lubricants having accumulated a deep experience in attending all types of vessels with strong commitment towards safety, innovation and efficiency.

Mindelo have been reinforcing its position as a recognized and specialized “bunker-only” port due to its perfect anchorage conditions for a safe and efficient quick turnaround bunker operation without congestion, bad weather and security risks.

We are proud to deliver: • High quality marine fuels according with ISO 8217 specifications; • Competitive prices in the region; • Safe and efficient supply service; • Fleet compliant with international standards: MARPOL, SOLAS, ISPS and ISM; • High quality lubricants in partnership with GALP-LUBMARINE.

World Bunkering Summer 2018

The port also offers a wide range of maritime services (crew changes, spare parts supply, ship chandling, sludge disposal, fresh water, etc) supported by an international airport nearby and quality hotels for accommodation. Since mid-2017, we added a third barge to our fleet to better satisfy our customer needs and growing demand. M/T “Olimpia” is a doublehulled barge built in 2012 with combined capacity of Fuel and MGO of 3.513 CBM.

In the same way, we also guarantee the constant supply and availability of MGO DMA with maximum sulphur content of 0.1% according with ISO 8217:2012 specifications and compliant with emission control areas (ECA) requirements. ENACOL services and operations runs on a 24/7 basis to ensure you have energy to reach your destination. We look forward for your enquiries!

Phone: (+238) 5346080; Mobile: (+238) 974 9430; (+238) 991 5964; (+238) 9502891 E-mail: bunker@enacol.cv energia@enacol.cv www.enacol.cv

new members

new members Corporate

Individual

Trader, Supplier Mahnaz Bagheri Mediterranean Eastern Enterprise General Trading LLC Middle East m.bagheri@navitascon.com

Supplier, Trader Geert De Herdt Belgian Trading and BunkeringAsiadok Europe geert@btb-bunkering.com

Supplier Elfreda Nartey Finnexx Energy Ghana Ltd Africa elfreda.nartey@finnexx.com

Broker, Ship Owner Johan Mintjes Bunkerlink bvba Europe johan@bunkerlink.com

Trader Chua Erwin Borbolsh Pte Ltd Asia bunker@borbolsh.com

Trader, Broker Nicholas Bond Australia Bunkering Pty Ltd Australia/NZ nick@ausbunk

Supplier Philippe Vathananonh VP Bunkers Europe vp@vpbunkers.com

Supplier, Trader MartinÂ Borchers Wilhelm Hoyer GmbH & Co KG Europe Martin.Borchers@hoyer-energie.de

Media Tracy Vowel Argus Media Europe tracy.vowel@argusmedia.com

Service Mike Spiridakos Spirit Management Services Europe mspiridakos@spirit-world.gr

Trader George Daher Oilburg Middle East george.daher@oilburg.com

Trader Simone Spessot DufEnergy Trading Europe simone.spessot@dufenergy.com

Surveyor, Agent Evangelos Mavrovitis Global Marine Inspections Europe ops@glmarine.gr

Service MacDonald Ofune Forte Atlantic Maritime Services Europe operations@forte-atlanticmaritime-ng.com

Supplier, Trader Federico Abreu Hanwa American Corp America abreu@hanwaamerican.com

Trader, Broker Luciana Della Gattaa RSW Europe reseaworld@reaeaworld.com

Trader Jonathan Acosta Acosta & Evans Handling SL Europe jonathan.acosta@onepetroleum.es

Storage, Ship Owner Obiamarije Stanley Stockgap Fuels Limited Africa info@stockgapfuels.com Service Monique Verwoert Logic Vision Europe M.Verwoert@LogicVision.nl Storage, Port William Santiago Peerless Oil & Chemicals Europe william.santiago@peerlessoil.com Trader, Shipowner Alessandro Penco Bunkeroil Srl Europe bunker@bunkeroil.it

World Bunkering Summer 2018

Next ISSUE

Autumn 2018 Special Features: IBIA Convention preview This year IBIA is holding its Annual Convention in Copenhagen, Denmark, where many significant bunker industry players are based. World Bunkering is including an in-depth look at what will be discussed and the big issues concerning the global bunker industry. We also flag up what else is on offer in Copenhagen and Denmark

Independents How robust are the independents now? How are they coping with the intense competition that characterises today’s global bunker market, with the shadow of the OW Bunker collapse still hanging over the industry.

Fuel Quality Changes in marine fuel are moving too fast for the ISO 8217 standard to keep up. We take a look at developments. We also look at the challenges faced by the testing companies by a plethora of new fuels that are intended to comply with the 0.50% sulphur in fuel limit.

Geographical Focus:

Middle East

Our annual Eastern Mediterranean survey takes a look at the bunkering sectors in Cyprus, Greece and Turkey?

Far East Our annual survey of the marine fuel industries in East Asia. Singapore continues to be the dominant global bunker hub but China’s influence is growing throughout the region.

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

4 – 8 JUNE 2018 POSIDONIA, ATHENS

Once again this major biennial shipping gathering is expected to attract senior people from the entire global shipping industry to Athens. National and international exhibitors make Posidonia one of the highlights of the shipping industry calendar. As always there will be a wide-ranging accompanying programme including conferences, seminars and technical workshops as well as networking and social activities. http://posidonia-events.com/

DIARY 6 – 8 NOVEMBER 2018

IBIA ANNUAL CONVENTION, Copenhagen 6th November IBIA Bunker Training Course 7-8th November IBIA Annual Convention www.ibiaconvention.com

25 – 26 OCTOBER 2018 ARACON, ROTTERDAM

ARACON is the longest-running and biggest bunkering conference in the Amsterdam-Rotterdam-Antwerp region. Its no-nonsense conference programmes attracts all the main bunker suppliers and barging companies in the ARA and Northwest Europe as well as shipowners and managers from throughout the region. ARACON now takes place every autumn in Rotterdam, the biggest port and by far the biggest bunkering centre in Europe.

2 – 5 october 2018 SIBCON - SINGAPORE

With over 1600 attendees expected at SIBCON 2018, key decision makers from the shipping and marine fuels community are expected to converge in Singapore to outline market potential, growth segments, and strategies to operate in the current environment. http://www.sibconsingapore.com

25 february 2019

IBIA ANNUAL DINNER, LONDON Grosvenor House Hotel, Park Lane, London www.ibia.net

25 – 27 March 2019 FUJCON, FUJAIRAH

World Bunkering Summer 2018