World Bunkering Winter Issue 2017/18 by Constructive Media

Winter 2017/18

HOT AIR AND SULPHUR MAJOR DECISIONS AHEAD

INSIDE THIS ISSUE: SINGAPORE SUCCESS LNG GAINS MOMENTUM LEGAL: READ THE SMALL PRINT!

THE ONLY OFFICIAL MAGAZINE OF

The bunkering community can be forgiven for being preoccupied with what will happen in 2020 but shipping industry representatives are engaged in the difficult task of formulating the sector’s approach to reducing its carbon footprint massively over the next several decades. A long term issue? Yes. But there are already impacts on the industry.

his issue of World Bunkering is yet again packed with reports that are in some way connected with environmental issues. That includes the Legal page which demonstrates that seeking increased fuel efficiency is not always straightforward. There can’t be many mornings when the boss of handymax bulker specialist Precious Shipping, Khalid Hashim, wakes up thinking he’s made a big mistake in the wording of a contract. But that has now happened. I suspect once they have read this cautionary tale there will one or two other shipowners taking a close look at their contracts with shipyards. In particular they may be checking just how they have agreed to determine fuel consumption. It might not be on sea trials! The environment was also prominent in discussions at IBIA’s highly successful convention in Singapore. For those who were unable to attend, our deputy editor’s report on this key event provides a very comprehensive account of proceedings. Unni Einemo, who represents IBIA at the International Maritime Organization (IMO), not only reported on the convention but was also one of the speakers, given the task of explaining what IMO is doing to try to ensure the switch to 0.5% sulphur fuel in 2020 is a success, and how IBIA is contributing to the process. One response to the new sulphur cap is to switch to LNG. And there is plenty about the rapid development of that fuel in this issue, including a report on a US design for an articulated tug and barge unit (and of course, American style, the ‘tug’ pushes the barge). So is LNG the fuel of the future? It depends what you mean. If you are looking ahead a decade or three, yes LNG is clearly going to have role – possibly a really big one.

But, just as World Bunkering was going to print, the shipowners’ body International Chamber of Shipping spelt out in its clearest terms yet the marine fuel business is going to change beyond all recognition. It said: “Marine bunker suppliers should anticipate that there may no longer be significant demand for fossil fuels from shipping within as little as 25 years, if not sooner, and that the sector is now on an inevitable trajectory towards a future of zero CO2 emissions.” Even a couple of years ago that would have been a shock to many, who perhaps saw fitting scrubbers as a passport to a relatively unchanged future. And of course, though arguably a relatively ‘clean and green’ alternative, LNG is a fossil fuel with significant CO2 emissions. There will be more on that in the next issue but this one does cover in some depth what has been happening at IMO, and elsewhere, regarding this even bigger environmental issue of how to reduce shipping’s carbon footprint. We look at the intense lobbying that has been taking place. Despite the best efforts of some, for the time being IMO remains in control of shipping’s journey towards decarbonisation and it is to be hoped that this will remain the case. But the pressure on shipping to commit to big CO2 emission cuts is building inexorably. Our report quotes Lloyd’s Register’s CEO, Alastair Marsh, as saying: “The later we leave decarbonisation, the more rapid and potentially disruptive it will be for shipping.” That is now very much the prevailing sentiment among decision makers in our industry.

Here we read “Aegean quits as Singapore physical supplier” while an ExxonMobil survey finds that many shipowners are confused as to what to do about IMO’s 2020 0.50% global sulphur cap. The Panama Canal has launched a tool to show how environmentally friendly using the waterway can be. A laudable initiative, though perhaps most ship operators and charterers already have a shrewd idea of much fuel can be saved. Then there is the headline “Fujairah National Shipping aims to be ‘one-stopshop’”. That makes sense for a major bunkering port as the era when the whole world fleet uses residual fuel is starting to change into something much more complex. Finally we learn that Brightoil aims to “transform the way bunker fuel is traded”. Its Online E-Delivery platform is now live. Another sign of changing, challenging times. Much less challenging is enjoying the IBIA Annual Dinner, providing you book your tickets now, before they all go. Our editorial team looks forward to seeing you there. Finally, as the turn of the year approaches, World Bunkering wishes its readers all the best for the Festive Season and a prosperous 2018.

While these momentous changes are playing out in the background, the bunker industry carries on as best it can in difficult times. That is reflected in many of our pages and not least in the News section.

David Hughes Editor World Bunkering winter 2017/18

editor’s letter

More challenges ahead

Publisher & Designer: Constructive Media ibia@constructivemedia.co.uk Editor: David Hughes anderimar.news@googlemail.com Deputy Editor: Unni Einemo unni@ibia.net Project Manager: Alex Corboude alex@worldbunkering.net On behalf of: IBIAâ&#x20AC;&#x2C6;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

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

Constructive Media 50 George Street, Pontypool NP4 6BY Tel: 01495 740050 Email: ibia@constructivemedia.co.uk www.worldbunkering.com

content

30-31

51-52

Chairman’s Letter At last we are starting to see some uplift in bunkering.

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

Innovation Hybrid energy storage system reduces need for generators and promises fuel savings and emissions reduction

9 Chief Executive’s Report The bunker business

10-12 Interview Iain White, global marketing manager at exxonmobil marine, spoke to unni einemo

13 IBIA Africa IBIA returns to Mauritius and presents a full programme in Tenerife

14 Notice Board

15 IBIA Events Upcoming IBIA Events

16 IBIA Asia IBIA Asia office has been at the centre of the task group meetings involved in reviewing the Singapore technical reference for Mass Flow Meters

17 IBIA Events We report from one of our main events, the IBIA Annual Convention

18-21 Event Review Preparations for 2020

24-25 Africa A more positive picture for bunkering is starting to emerge in parts of the African markets

26 Ghana Oil Ghana Oil Interview with Alex Josiah

27-29 Industry News Company says Singapore remains ‘extremely competitive’ even after enforcement of mandatory MFMs

32-34 Environment A war of words broke out in the run-up to important IMO and EU meetings and the Bonn Climate Change Conference

35 Fuel Additives Additive producers have come up with new products to reduce soot in economisers

36-37 Scrubbers IMO study author tells IBIA forum his predictions may have been too optimistic but manufacturers continue to report orders

38-40 Blending Ara Barsamian and Lee E Curcio, of the USbased Refinery Automation Institute, put the case that IFO380 bunker recipes can be used to meet IMO 2020 sulphur specs

41 Australia The environment has dominated the recent Australian bunker agenda

42-43 Lubricants Winterthur Gas & Diesel has approved Chevron’s Taro cylinder lubricant

47-49 Mauritius After a three-year flat spell, last year was a bumper one for the Mauritian maritime economy

50 LNG LNG is starting to make small inroads into the marine fuel market

53-55 Northern Europe Preparation for an LNG-heavy future continues apace across northern Europe as infrastructure

56-57 Russia Focus on LNG increases as 2020 approaches, Olga Bogacheva reports

58-59 Gazpromneft Marine Bunker Focus on LNG increases as 2020 approaches, Olga Bogacheva reports

60-61 Testing VPS’s Laboratory Manager, Fujairah, UAE, Dr Sunil Kumar describes the measures the international bunkers testing company takes to achieve accurate results

62 Barge Design A combined tug and barge unit is being built to supply LNG bunkers in Florida

63 Legal Wording of contracts torpedoes fuel efficiency claim

64-66 Equipment & Services Our regular round-up of developments in the busy equipment and services scene

68-71 Company News

72 New members

73 Next Issue

74 Diary

At last we are starting to see some uplift in bunkering. It may not be too obvious, but things are moving in the right direction and the same can be said of IBIA

lobal GDP is expected to grow at more than 3.5% per annum and the trade to GDP ratio has increased. The isolationist policies of the US which have been considered likely to reduce global trade are being offset by international investment by China. As a result, bunker demand in a number of ports is growing and, in line with crude oil, bunker prices have risen which is always a good indication that margins might improve. Freight incomes in the liner and bulker sectors have improved and look less likely to slip back from over ordering of new tonnage, again another factor to raise our expectations. The year started with doom and gloom – in the continuing aftermath of the debacles of OW and Hanjin and with one of the industry’s entrepreneurs appealing for his freedom in a European court. No doubt there will be further cases of poor practice under scrutiny. The margins of the larger listed suppliers during the third quarter were only 65% of the average obtained last year. These companies are losing market share and revenue from associated services such as price risk management. Bunkering, in line with many industrial sectors, must look to improve its productivity in an increasingly digital environment. There is little doubt that the role of the traders is diminishing with others financing shipowners through extended credit. In 2020, bunker prices for 0.50% sulphur bunkers, the predominant fuel, may rise from the typical $300/ton for HSFO in the ARA to, as has been predicted by a number of industry observers, towards $600/ton. This will require another $6 billion to be injected into bunkering during 2020, the repercussions of which have not been assessed by the industry as a whole. Where will these funds come from? Will the new trading platforms, or the block chain initiatives recently announced by the larger traders for commodities filter down into bunkering, World Bunkering winter 2017/18

or are there other approaches such as ship owners and charterers pledging their freight invoices as credit for bunkers, a reversal of the discredited OW model? No doubt, as in most aspects of bunkering, there will be multiple solutions. As our industry continues to become more complex, so the role of IBIA expands. The value we offer members is growing with a focus on four initiatives. The IBIA 2020 Portal will come live as a centralised resource to keep you informed about the transition to the new low-sulphur era, including the workings of IMO and how members’ views are being reflected in our submissions on such issues as new legal requirements for the bunker delivery note, increasing compliance by the possible introduction of a ban on carrying non-compliant fuels in bunker tanks, as well as other approaches to facilitate the implementation of the global 0.50% sulphur cap. IBIA is also preparing a guide to best practice for suppliers in conjunction with calls for a similar initiative at the IMO. The third activity is raising awareness of the need to improve business standards by codifying ethical behaviour and demonstrating that ethical behaviour is more profitable. Finally, IBIA is working with a number of ports to develop a common bunkering code incorporating many of the issues identified in the other initiatives that will form the basis for a port accreditation process. All this added value is directed by the secretariat but requires expanding input from the membership. There is a growing cadre of people willing to offer their expertise for the overall good of our industry. However, IBIA needs further assistance and provides the opportunity for corporations and individuals to shape their own industry. There is no other forum for doing this.

The issue of good business practices is further highlighted in the assessment of compliance with the forthcoming global sulphur cap. Improving the environment and maintaining a level a playing field, where professional operators are not disadvantaged by unscrupulous owners, will be essential. The enforcement resources of many nations will be lagging in the early 2020s, but there are some positive signs as Port State Control regimes recently met under the auspices of IMO to increase collaboration and information sharing between them. This should lead to more efficient inspections, thereby increasing their ability to target and deter non-compliance with the myriad of regulations, including the use of lower sulphur bunkers in 2020. Post the IBIA Annual Convention in Singapore there are a range of IBIA events coming up in the year ahead. The dinner in London on 19 February is the most prominent, with well over half of the available tickets already sold. During the first half of 2018 there are seminars and training to take place in Mauritius, Tenerife and Jamaica. IBIA is also planning to run a one day event increasing the awareness of the role of digitalisation in bunkering. This will be in London where members, in common with most IBIA events, will receive a discount on the attendance fees. Bunkering is on the verge of some semblance of a recovery with IBIA taking a greater role in providing a lead into the most turbulent few years we have ever experienced.

Robin Meech Chairman 7

CHAIRMAN’S LETTER

HOPEFULLY ON THE ROAD TO RECOVERY

erhaps you or your company are exploring strategies around digitalisation and how it can help you improve your business. Alternatively, you may be one of the disrupters or early adopters who are already using technology to your advantage. Increasingly these advantages are short-lived as the technology becomes more widely accessible. In the same way that it’s no longer cool to prefix technology products or initiatives with e- or i-, the phrase digitalisation will itself become an anachronism because eventually there won’t be any part of global trade that isn’t managed via digital technology. For the bunker industry today, new technology can range from Mass Flow Meters at terminals, on barges and on the receiving vessels, to procurement portals, trading oriented data analytics tools, e-BDNs and port call optimisation initiatives, just to name a few. In some cases these technologies or the ideas behind them are not new but are only just becoming more widely accepted. In each case these technologies will only succeed if they address a currently unmet need and/or offer an economic advantage to the user or their customers by improving efficiency and/or quality of service. A business that fails to deliver quality, service or pricing levels that meets its customer’s needs will not miraculously be improved by the introduction of new technology. There are many current IBIA members actively engaged in developing and marketing technology solutions for the bunker industry and it appears that there is a healthy level of interest among industry stakeholders. Therefore, IBIA will arrange events during 2018 to inform and educate our members on the latest developments in the bunker industry. We’ll keep you updated via our website, newsletters and World Bunkering. There is another aspect of our business which is fundamental and which should apply equally to all of us whether we’re innovators or laggards - the need to “do the right thing”. World Bunkering winter 2017/18

By the time this issue of World Bunkering goes to press we will have held our IBIA Annual Convention in Singapore. The final session will be a first for a bunker conference anywhere in the world in that we’ll dedicate a whole session to Ethics – three presentations and hopefully a lively panel debate and plenty of interaction with an engaged audience. In Singapore the effects of the MFM legislation are beginning to have a real impact in the market. IBIA fully supports the MPA’s efforts to ensure that the legislation is effective. Licenses are being revoked and, in some instances, the survival of some companies is under threat. It is regrettable that some individuals’ illegal, unethical actions end up damaging the livelihoods of others that are caught up in the ripple effect. It will be interesting to see the extent to which this ripple extends beyond Singapore. What is ironic is that there is compelling evidence that ethical businesses are more profitable than others. It pays to do the right thing! In addition to enjoying a healthier bottom line, there are other less measurable benefits, such as: being perceived as positive role models and trusted business partners; improved levels of customer and employee loyalty and a having a positive effect on a company’s brand value. At IBIA we are certain that the time for philosophical debate and talking is over: our industry needs to act! As the industry association, we will not watch from the side-lines while the debate is left to the cynics and critics. It’s important that we present a balanced view of the current situation. The media competes for our attention with melodramatic headlines and click bait. At times it seems the world is lurching from crisis to crisis and that life is progressively worsening. However, this is simply not true. It’s a fact that global rates of hunger; poverty; illiteracy; child mortality and pollution have all improved significantly in the past 25 years.

However, these facts are rarely considered worthy of headlines. And so, when we consider the reality of our own industry let’s avoid melodrama and take a sober, balanced view of how things are. It’s easy to be a critic and there are many who mistake cynicism for wisdom and the voice of experience. They’ll claim that the entire industry is crooked or that they are the only virtuous operator in the room. However, at IBIA we’re optimists as well as pragmatists and, in the case of the bunker industry, I view cynicism as the first defence of those who have given up and who are unwilling to invest any effort in trying to improve life for others. The bunker industry is a family and like all families there are times when we face difficult circumstances. The best way to manage these difficult times is by discussing the key issues openly in a constructive, pragmatic way and solving them together. We’re appealing to the entire industry to join us in this endeavour. At IBIA we represent all stakeholders and thus it’s natural that we should lead these conversations on your behalf. Doing the right thing and making informed choices have never been more important in our industry. Now is the time to act and IBIA has already engaged a number of its members in a Working Group to develop the “IBIA Guide to Best Ethical Practice”. The guide will: • Create an ethical code which encompasses the entire bunker industry value chain • Develop an IBIA Ethics & Compliance Accreditation programme • Clarify the relationship between Ethics, Anti-Corruption, Sustainability and CSR • Highlight success stories within the bunker and maritime industry In conclusion, although we are pragmatists at IBIA we are also optimists and we are confident that through collective action the bunkering industry will improve its image and that it will be perceived as a good corporate citizen.

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

chief executive’s report

IMPROVING THE BUNKER BUSINESS

interview

iStock

MAJOR CHANGES

Iain White, Global Marketing Manager at ExxonMobil Marine, spoke to Unni Einemo about what the oil major sees as the main issues in the bunker industry today

ncertainty around the fuel change coming in 2020 is the biggest issue preoccupying ExxonMobil today, but before delving into that subject, we spoke about other trends that are driving industry change. One clear force for good is technology-driven. “We are moving into a transition phase where the old measurement standards are starting to be replaced,” says White. “We have been leading on mass flow metering in Singapore and later Hong Kong, and we now see it being taken

up elsewhere.” There has been an issue of trust in the industry and ExxonMobil is very supportive of the way Singapore authorities have adopted mandatory MFMs and dealt with enforcement of this new regulation in the port. White says they would like to see MFM technology being “adopted more widely, certainly in the bigger hubs, because it would help the industry a lot.” Could investing in barges with MFM systems be viable in smaller bunkering ports too? White thinks it can, because it improves the efficiency of supply operations significantly, hence MFMs would be viable even in smaller ports where you don’t see as much poor measurement practice as has been observed in major hub ports. “Disintermediation” is a buzz-word these days, referring to a removal of middle-men in the bunker transaction chain.

For ExxonMobil, however, the impact from financial fallouts seen at various times, not just post-2008 and the collapse of OW Bunker, has been minimal. ExxonMobil has always been seeking to deal directly with reputable companies, says White. But moving forward, he does believe the role of middle-men will be reduced and we will see greater direct involvement of oil majors in the bunker market for other reasons. LNG supply, for example, does not lend itself to the bunker supply models that are common today. It needs to be much more rigorously controlled from a safety perspective and even if LNG becomes a more mainstream marine fuel product, it seems likely that it will be managed by oil majors or larger companies that have the resources to provide the supply infrastructure directly to ships, White thinks. Also looking to 2020, he says ExxonMobil sees it as an opportunity to provide compliant fuels in the key ports where they have refinery operations and hence could become more prominent as a bunker supplier directly to ships. However, he also expects other refiners to adapt, and a number of smaller players to offer various compliant fuels in ports around the world. Assuming supply of low sulphur marine fuels is in place and ships generally comply, high sulphur fuel oil (HSFO) bunker sales will shrink dramatically in 2020.

As a result of this, does he expect ExxonMobil’s overall bunker sales volumes to drop or will they be ready to replace their current HSFO bunker sales volumes with low sulphur fuels from the get-go? “It’s too early to say as we have not yet finished our evaluations,” says White, but adds “we will produce all the 0.50% fuels that we can as it makes economic sense”. While he cannot speak for other refiners, he expects many may do the same, as it will be in their economic interest to do so. So who is under the biggest pressure to prepare for 2020; shipowners, suppliers, or refiners? The first thing to remember is that the compliance obligation with the 2020 rule lies with ship owners and operators, White observes. That said, he sees substantial pressure on the refiners to adapt to the new market conditions. With the marine fuel market for HSFO largely disappearing, they will have the challenge of how to deal with a glut of HSFO, the value of which will likely drop even lower than its value today. But refiners need to find a home for “all the molecules” that they produce. “This is going to give refiners a financial incentive to make a change, whatever is appropriate for how the refinery is set up. The onus really is on refineries to make changes to continue to run cost-effectively.”

World Bunkering winter 2017/18

uppliers also have a challenge in working out when to begin the process of shifting current supply infrastructure from providing HSFO to mainly low sulphur fuels. This is a “chicken and egg” situation says White, as this depends on when ships start buying compliant fuels. Realistically, ships need to start buying compliant fuel by the final quarter of 2019 in order to be compliant on 1 January, 2020, but “we don’t expect owners to start buying compliant fuel until they have to,” says White. The change will have to take place right through the supply chain from the refinery to the ship’s tanks and this cannot happen overnight. While it may be quite quick to clean out a bunker barge to shift from HSFO to low sulphur fuel supply, it will take longer to make adjustments on the refinery side and also running down stocks of HSFO at terminal storage tanks. Of course there are pressures on all parties, but for shipowners, doing nothing is an option. “Effectively doing nothing today is a vote for using compliant fuel,” White observes, but adds that what many owners/operators perhaps have not realised is that this won’t necessarily mean a distillate-based product, but rather a variety of residual-based blends. This will likely bring back many of the challenges we saw with the 1.00% sulphur fuel blends in emission control areas (ECAs) and potentially more challenges with incompatibly between fuel batches from different sources.

interview

White says the key preparation for shipowners is to make sure crews understand the importance of fuel segregation and purification. Already today, ExxonMobil picks up feedback from its cylinder condition monitoring service that crews tend not to operate their purifiers effectively. If shipowners decide to go the scrubberroute, however “I think anybody that makes that decision early will be in the best position to pay back the quickest,” says White, because the initial market disruption in 2020 would likely cause the widest price differentials between HSFO and compliant low sulphur fuels. Does he think ships will buy different products for ECA compliance and observe the global limit, or will they simply use maximum 0.10% sulphur fuels all the time? White thinks the price difference between 0.50% and 0.10% sulphur fuels will cause most ships to use different grades as today “we see charterers change fuel supplier on the basis of 50 cents per tonne.” So unless the ship is in a port where only 0.10% sulphur fuel is available, “cost will always drive people to the most economic fuel to use” and that will likely be a 0.50% sulphur fuel blend.

Without giving specific figures as we can’t comment on future prices, White says that given that sulphur is a linear blend, if you start with a residual fuel of 2.7% sulphur – close to the current global average - and blend it with 0.10% sulphur gasoil, the blend ratio would be about 15% HSFO to 85% low sulphur gasoil. Extrapolating from this calculation and using current and historic cost of blend components will give you some indication of the likely cost of compliant fuel. ExxonMobil is an oil major with its own refineries, so the company is in a position to work on 0.50% sulphur products ahead of 2020. To what extent is this happening? “It’s absolutely happening in all our refineries around the world,” says White, but they are at different stages of the decision making process. Some, such as its refinery in Antwerp, already announced a big investment decision a couple of years ago to install a Delayed Coker Unit that will cut HSFO output and boost low sulphur distillate production. “Right now, in all other refineries [that haven’t already made specific plans] evaluations are being done as to what the options are,” to provide compliant fuels to the marine market. In due course, announcements will be made.

So what might the 0.10% versus 0.50% sulphur product cost differential be?

iStock

World Bunkering winter 2017/18

interview How do they know if the products they develop will perform well on a ship?

We asked White what he thinks would be most helpful for the industry ahead of 2020.

White says each fuel will go through a “fit for purpose” assessment, including running new products in a test engine or onboard trials where applicable. ExxonMobil will also take its products to the fuel testing agencies to build confidence and help customers understand where their fuels might fit in the ISO 8217 tables, and run compatibility tests. “We’re not concerned about the combustion quality of the fuels, but it is important that users understand the storage and handling guidelines of the products,” says White.

One thing that would really help is a way to improve the fit of the ISO 8217 specification with the many anticipated low sulphur fuel blends, says White, taking heart from IBIA’s recent update to members that a publicly available standard may be developed in time for 2020.

“That would give owners something to work with as charter parties could start adapting clauses to whatever ISO 8217 grade fits the 0.50% sulphur fuel,” he says. As for work at the International Maritime Organization to ensure effective implementation of the 2020 sulphur limit, White says: “IMO could help clarify how compliance will be ensured – and what exactly does compliance mean? We need a level playing field.”

There’s a lot of concern about the compatibility of 0.50% sulphur fuel blends from different suppliers and locations, is this something ExxonMobil can address when producing low sulphur fuels? “It is difficult to address compatibility with all products, as there will be so many,” says White. What ExxonMobil will do, however, is strive to ensure products from its refineries around the world, though they may be different, are compatible with each other. White says one of the things we don’t know yet is how many refiners will aim to produce compliant fuels meeting ISO 8217 specifications, and how many will prefer to sell components , but he thinks resellers will likely continue to command a reasonable market share, particularly in the large hub markets. “Compatibility testing will be more important than ever” to ensure safe operations, White says. What’s your view on compliance? Do you expect it to be high? “I think we do. Reputable owners don’t want to risk their reputation by not complying. I think the bigger headache [for ship operators] is whether compliant fuel will be available in some of the more remote parts of the world. This isn’t clear yet.” Iain White ©ExxonMobil

World Bunkering winter 2017/18

ibia Africa From Left to Right: Mr. Patrice Maury (Managing Director) – Celero Group, Mr. Rory J. Doyle (Managing Director) – Transport Events Management Sdn Bhd, Mr. Ramalingum Maistry (Chairman) – Mauritius Ports Authority, Mr. Randhir Jhurry (Events Manager) – The Ravenala Attitude, Mr. Russel Briggs (Senior Teacher) - British Council Mauritius Branch, Mr. Shekur Suntah (Director General) – Mauritius Ports Authority, Mr. Cyril Rene, Administrative (Manager) – Cargo Handling Corporation Ltd

IBIA AFRICA REPORT IBIA returns to Mauritius and presents a full programme in Tenerife

ollowing on from the success of our event in 2015, IBIA returns to Mauritius in January 2018 as part of the Mauritius Maritime Week 2018 to be held 22 – 26 January 2018 at the Ravenala Attitude Hotel, Mauritius. We are pleased to announce that included in the 5 day programme is a full day of training on Monday 22 January presented by IBIA in association with Celero Training of Mauritius. Justin Murphy, IBIA CEO, will also present during the conference on Wednesday 24 January 2018. Join us for this this 1-Day workshop with Robin Meech (IBIA Chairman) and Justin Murphy (IBIA CEO) to learn about:

In addition to this you will be offered industry-leading training opportunities, a tour of two of Tenerife’s ports and a spectacular gala dinner. As we come to the end of 2017 we would like to take this opportunity to thank our Africa members for their continued support and valuable input. Our Annual General Meeting will be held in Cape Town in April of 2018. This will give members an opportunity to meet with each other and highlight training needs and support requirements for the year ahead. There have been some changes to dates mentioned in previous issues, so here is a recap of events in the Africa region in the first half of 2018:

• IBIA Training Seminar, 22 January, Mauritius • IBIA’s Africa Bunkering Conference, 20 – 22nd March, Tenerife Canary Islands (includes training) • IBIA Africa AGM 19 April, Cape Town, South Africa Should you require any further information regarding the Africa events, training or sponsorship opportunities contact:

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

• IMO Global Sulphur Cap 2020 • Bunker Value Chain • Effects of Digital Technology on Bunkering • New Marine Fuels Another exciting conference in the new year will be the IBIA’s Africa Bunkering Conference in partnership with Ports of Tenerife, to be held 20 – 22 March 2018. Tenerife, the African and European bunkering hub, is attracting considerable new investment. This timely conference offers delegates great networking opportunities with key decision makers. Delegates can participate in panel discussions with industry experts on the IMO 2020 global sulphur cap, learn about Tenerife’s future in LNG, gain insight into growth opportunities in Africa and hear from major ship owners on their plans for technology and fuel strategies. World Bunkering winter 2017/18

Mauritius Ports Authority Press Conference for the launch of Mauritius Maritime Week (MMW) 2018, Friday 3 November 2017 at the Conference Room of the Authority, Port Louis, Mauritius

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n non-mem r £80 depe buyer Please note £45, £60 o g in rl re offered to e a St e s n d zi n a u g o a P f m o the at a cost e copies of ls. ditional fre their vesse to g in Up to 20 ad rd a rw fo r fo f IBIA gazine – members o kering Ma n u B d rl o ith savings IBIA W dvertising ailable for members w a n o ts ising n u disco the Advert tes are av se contact vertising ra a d le a P d . te ze 0 n 0 si u 86 61 Disco rtisement 44 (0)20 73 on the adve ndon on + Lo ia dependent d e M e at Maritim and Sales Team w website ers b m e M n to our ne o f g o t lo ed n is se g L a si IBIA rrect, ple site is de s are not co e new web il Th ta . e e. n d g io r a u p at If yo mbers inform on your me e their own g m n e a th ch e d at n d up ccess a embers. can easily a le to IBIA m b a so members il a av ly tion is on This publica Blending to In-Line mbers e id u G IA IB e to me g ee of charg fr le b a d Resolvin il va A oiding an v A to e id IBIA Gu the report putes y free, but Bunker Dis ceive their personal cop ers re 50. mbers at £ IBIA memb to non-me le sa r fo d is offere

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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 winter 2017/18

Q1 2018 IBIA EVENTS PROGRAMME 2018 JANUARY 22nd 24th - 25th 2018 FEBRUARY 19th 19th MARCH 20 - 22nd APRIL 10th - 12th NOVEMBER

The IBIA Training Seminar in association with Mauritius Maritime Week Mauritius Maritime Week 2018

Mauritius

IBIA AGM and Board Meeting IBIA Annual Gala Dinner

London, UK

IBIA Africa’s Bunker Conference hosted by Ports of Tenerife

Tenerife, Canary Islands

IBIA Caribbean Conference: Fueling a New Era in the Caribbean

Caribbean, Jamaica

IBIA’s Annual Convention 2018

Copenhagen, Denmark

London World Bunkering winter 2017/18

Mauritius

London, UK

Tenerife

Jamaica 15

ibia asia

Participants at IBIAâ&#x20AC;&#x2122;s first bunkering training in Port Klang

IBIA ASIA REPORT: AUGUST TO OCTOBER 2017 The IBIA Asia office has been at the centre of the task group meetings involved in reviewing the Singapore technical reference for Mass Flow Meters and has begun to offer MFM-related training courses beyond Singapore, Regional Manager Simon Neo reports

BIA Asia was still very much in the thick of action during the three months of August, September and October. IBIA sits in all the three TR 48:2015 task groups that are involved in the review of the Singapore Mass Flow Meter Technical Reference (TR 48) which will eventually be upgraded to a Singapore Standard. These review meetings are mostly held in the IBIA office, so we have had lots of traffic within the office with all these meetings which can sometimes be a weekly affair. Aside from our regular monthly accredited bunker training, our Basic and Enhanced Bunkering courses incorporating Mass Flow Meters, IBIA Asia has also recently conducted its very first training in Port Klang, Malaysia. We also hosted TR 48:2015 seminars in Shanghai and Shenzhen. Training The Basic Bunkering Course and the Enhanced Bunkering Course with a focus on MFM and TR 48:2015 are still being run by IBIA Asia within our premises. The number of trainees attending these courses are lower now compared to last year when all cargo officers and bunker surveyors were rushing to be accredited before the 1st Jan 2017 entry into force of mandated use of MFM systems for barge deliveries of marine fuel oil.

During the three months covered in this report we held six of the Basic and Enhanced courses. A total of 74 trainees went through their training with us in our office. We also managed to attract trainees from Far East Russia, Indonesia, Philippines, Malaysia, Bangladesh and Myanmar.

In Shanghai a total of 16 Chinese shipowners and suppliers attended, whilst in Shenzhen a total of 15 Chinese shipowners and suppliers attended. Lots of questions were raised after the seminars, especially on the system security and procedures.

Port Klang, Malaysia Training We conducted our very first bunkering training in Port Klang, Malaysia on 11 to 12 September 2017, with 19 attendees. At the end of the training all those who attended were given a test and those who passed the test were given a certificate of completion.

Recently we have had various port authorities asking if IBIA can assist in the setting up of bunkering standards within ports and help improve bunker supplier ethics. IBIA is well positioned to work with all these ports to establish consistent bunkering standards and where necessary to maintain and improve ethics within the industry.

Mass Flow Meter TR 48:2015 Seminars in Shanghai and Shenzhen IBIA partnered Lloydâ&#x20AC;&#x2122;s Register, Metcore International and meter vendor Endress and Hauser to conduct two half day seminars on Mass Flow Meters in Shanghai and Shenzhen, China on 23 and 27 October, respectively. These two seminars were based on the Singapore TR 48:2015. During the seminars, topics that were touched upon included an explanation of what Mass Flow Meters are, and MFM system integrity and security.

Students at Port Klang training course

World Bunkering winter 2017/18

IBIA EVENTS The Bunker Buyer Panel ©Simon Neo

SINGAPORE SUCCESS As we approach the end of 2017, we report from one of our main events, the IBIA Annual Convention

BIA’s Annual Convention 2017 was held in Singapore from 6-9 November, comprising two full-day pre-conference training programmes, six conference sessions, two evening receptions, two networking lunches, two breakfast coffees and three coffee breaks. We had close to 150 industry professionals attend for the opportunity to learn, share experiences, exchange opinions, and enjoy the company of a great variety of industry players at our social events. We heard from a total of 27 speakers, moderators and panellists over the course of the conference itself, expertly chaired by Robin Meech, Chairman of IBIA and one of the industry’s leading consultants. The pre-conference training courses, one on dispute resolution and another on LNG bunkering, were both held under the leadership of IBIA board member Nigel Draffin, another hugely experienced bunker industry consultant, lecturer and author.

World Bunkering winter 2017/18

We congregated for most of these events at the Raffles City Convention Centre, with many of those coming from abroad staying at our chosen accommodation next door, the luxurious Swissôtel The Stamford. IBIA’s Annual Convention covered a wide range of subjects, with particular focus on three areas: what to expect and how to prepare for the new low-sulphur era starting in 2020; the impact on Singapore less than a year since the introduction of mandatory use of mass flow metering systems (MFMs); and we put the spotlight on a closely related subject: ethics. The main takeaways from these conference sessions are covered in an event review in this issue of World Bunkering, but one key message stood out: mandatory MFMs have been broadly welcomed by all industry stakeholders in Singapore and the fact that the port’s already world-leading bunkering volumes have been growing further during 2017 is testament to the success of the Maritime and Port Authority of Singapore in providing the right framework for the port’s bunkering industry to thrive.

IBIA fully supports the MPA in its endeavours to create a level playing field that rewards good practices. We are grateful to all who helped make IBIA’s Annual Convention in Singapore a success, including the MPA for supporting us with speakers and panellists. We would like to thank our programme committee members and our event organising partners, the hardworking Petrospot team. Most of all, we want to thank our sponsors for the 2017 Annual Convention, without whom we would not have been able to offer so much quality content and social events with generous helpings of delicious food and drink. The Gala Reception and Dinner was generously supported by our Diamond Sponsor, Peninsula Petroleum, while other refreshments were brought to you by our Silver Sponsors: Intertek ShipCare, Endress & Hauser (Sea) Pte Ltd, and Pavilion Energy. Delegate bags were sponsored by Organizacion Terpel and our Exhibitors were Aspect Enterprise Solutions and Endress & Hauser.

EVENT REVIEW

John Bassadone of Peninsula (second from left) with Port of Gibraltar officials ©Nigel Draffin

IBIA ANNUAL CONVENTION 2017 IN SINGAPORE Preparations for 2020, MFMs and ethics fuelled lively debate at our event in the world’s leading bunkering hub, Unni Einemo reports

hat better place to discuss the key current and emerging themes in the bunker industry than in Singapore? As the world’s leading bunkering hub and a flagship port for progressive thinking, Singapore has experience with all elements of bunkering and is striving to maintain it top position. According to Esben Poulsson, President, Singapore Shipping Association and Chairman of the International Chamber of Shipping, who was the keynote speaker at IBIA’s Annual Convention, Singapore will probably increase its already dominant position from 2020 by focusing on the big picture and developing the right supply solutions for the future, backed up by relevant technical standards. Poulsson highlighted the positive role played by the Maritime and Port Authority of Singapore (MPA), in particular the introduction of mandatory use of mass flow metering systems (MFMs) for marine fuel oil supply to increase efficiency, transparency and minimise disputes. He said mandatory MFMs has had a positive impact on bunkering volumes with Singapore on track to set a new record in 2017. Still, he noted, vigilance is required to prevent suppliers trying to “beat the system” as the systems become more sophisticated.

What will MFMs do for Singapore? This was the theme for a session with an impressive line-up of speakers and panellists, who broadly agreed MFMs have already done a lot. “We see buyers taking bigger parcels now,” said Md Elfian Harun, Assistant Director, Bunker Services Department at MPA. Mohamed Abdenbi of MFM manufacturer Endress + Hauser said the most positive side-effects were improved efficiency and reduction in time spent negotiating a final figure for the delivered volume after each delivery. The MFM figure is binding and although there are still discrepancies between ship and the BDN figure, overall it seems owners have confidence in the MFM figures. He said the next step should be to use the MFMs across the supply chain, including when barges lift cargoes at terminals, as this would harmonise systems and be fairer. Another impact of MFMs is more indirect, but equally profound. Increased transparency on delivered volumes, combined with MPA clamping down on attempts to circumvent the system is, bit by bit, weeding out operators who offer suspiciously low prices.

John Phillips, Head - Bunker Credit Management Global, GP Global APAC Pte Ltd said the price spread between ex-wharf prices and delivered prices should be $5-7 per tonne to cover transportation cost, but it has been closer to $2. If this continues there won’t be many companies with deep enough pockets to survive, he said. Meanwhile, J. Stephen Simms, Principal, Simms Showers LLP, highlighted that three of the top 10 suppliers in Singapore have disappeared from the market since the MFM regulation took effect, having lost their licences. Choong Zhen Mao, Executive Director, Equatorial Marine Fuel Management Services Pte Ltd, which delivers about 10% of fuels sold in Singapore, said the cost of business has gone up, and that he was pleased that MPA is proactive in rooting out malpractice. Timothy Cosulich Chief Executive Officer, Fratelli Cosulich, noted that the cost increase over the lifetime of the MFM is not that great, especially taking into account the increased efficiency, and was supportive of the transparency that the technology has brought.

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EVENT REVIEW Delegates at the welcome reception ©Nigel Draffin

e had two sessions covering the upcoming global sulphur cap, one covering the regulatory side and one on fuel availability. Your reporter, who represents IBIA at the International Maritime Organization, explained what IMO is doing to try to ensure that this monumental shift in fuel specification is a success, and how IBIA – which has consultative NGO status at IMO is contributing to the process. There isn’t much time to deal with the raft of uncertainties created by the regulation, such as how to deal with potential non-availability, changes in fuel quality, and how to enforce it effectively. While IMO defines regulations and provides guidelines, it cannot enforce – enforcement is up to the Member States. That’s where it gets complicated, IBIA Chairman and Managing Director of Marine and Energy Consulting , Robin Meech explained. Unfortunately, it seems maybe less than 20% of MARPOL Annex VI signatory states have translated the regulation into their national laws, so how can they enforce? But the good news is that even with 12% global non-compliance, IMO’s regulation will have achieved an 80% global reduction in sulphur limits, Meech concluded. The fuel availability session gave us valuable insights into what two oil majors and a fuel testing agency expect for 2020. Carlos Torres, Global Head, BP Marine Fuels, pointed out that in Singapore, only around 10% of bunkers sold are produced by local refineries, the rest is imported, so on that basis this port should be fine in 2020 as systems for importing and blending bunker fuel are already well established. He said BP expects more than 50% of the global market will be supplied by very low sulphur fuel oil (VLSFO) in 2020, which will be blends of light and heavy refinery products.

World Bunkering winter 2017/18

BP is working hard already to address two key concerns about VLSFOs: stability and compatibility with other fuels. He said fuel quality and safety concerns can be overcome by using trusted suppliers, predicting that the relationship between supplier and buyer - which has been only about price - will change. A similar message with regards to ensuring quality supply was heard from Iain White, Global Marketing Manager, Marine Fuels and Lubricants, ExxonMobil, whose views are also covered in an interview in this issue of World Bunkering. White highlighted the huge impact the 2020 sulphur change will have on refiners, and on the supply chain, as it now seems clear that the number of ships with scrubbers in 2020 will be small. This means we have to convert virtually all global barge capacity from supplying mainly high sulphur fuel oil to supplying low sulphur fuels.

Those fuels will be different from most fuels blends used today, and there is limited experience with them. So far the global market uptake of so-called ultra low sulphur fuel oil (ULSFO) developed to meet the 0.10% sulphur limit in emission control areas is modest. Michael Green, Technical Manager - Bunker Fuel Testing, Intertek ShipCare and Vice Chairman of IBIA said the share of ULSFO samples his company tested globally peaked at 5.8% in 2016, but was down to 4.3% in the second quarter of 2017. Looking at the Amsterdam-Rotterdam-Antwerp region, however, ULSFO accounted for 15.5% of the samples tested in Q2, 2017, while a bit over 41% was marine gas oil and the rest was HSFO. We also had a session on LNG and methanol, two of the fuel alternatives promising very low emission profiles which could see the currently very limited uptake of these fuels increase from 2020.

Delegates listening to the conference speakers ©Nigel Draffin

EVENT REVIEW

lan Lim, Deputy Director (Port Services) at MPA outlined Singapore’s global LNG strategy, which is underway with an LNG Bunkering Pilot Programme (2017-2020), aimed at gaining experience and beefing up LNG supply capability. The first LNG bunkering operation was performed in June 2017 and the port aims to have ship-to-ship LNG bunkering capability in place from 2018 to form part of a global network of LNG bunker-ready ports. We heard about LNG bunkering drivers and challenges from Goh Tiak Boon, Head LNG New Business, Pavilion Gas, who claimed that the price of LNG vs MGO, even taking STS delivery cost into account, makes LNG a viable alternative.

The buyers’ panel, which had representatives from BW Group, Fratelli Cosulich, Maersk Oil Trading, Teekay and Torm A/S confirmed the positive view of mandatory MFMs in Singapore, even if it has pushed up prices a bit, because they now feel more confident that “you get what you pay for”. One of them highlighted, however, that it needs an authority like MPA to regulate it.

What will they do about fuel choices in 2020? Some are evaluating scrubbers, depending on age, size and the typical trading routes of the vessel, but for the most part it is VLSFO or MGO that the shipping companies on the panel were planning to use.The final session, Embracing the Ethical Challenge, discussed the ethical challenges confronting the industry today.

Meanwhile, Capt Walter P. Purio, Chief Executive Officer, LNG Marine Fuel Institute, spoke about the nascent role of LNG as a marine fuel in Australia, where increasing environmental focus combined with plentiful local availability of LNG could drive this, especially as Australia currently relies on imports for over 90% of its total energy needs. Christopher D. Chatterton, Chief Operating Officer, Methanol Institute, explained the pros and cons of methanol as a shipping fuel. He said the seven methanol carriers that use methanol as fuel now have about 9,000 hours of operating experience between them by now, while the retrofitted passenger ship Stena Germanica has run on it for nearly a year, with good results. The Bunker Buyers’ Panel gave us really good insights into owners’ thinking about 2020, credit risk post OW & Hanjin, and MFMs. Danny Chua, Senior Partner, JosephtanJudebenny LLP, set the scene explaining how the OW case had demonstrated how different jurisdictions dealt differently with interpleader cases. The panellists, meanwhile, said they would always look into their counterparty risks, that traders still had a value-add role to play and that it isn’t all about the price, but the total package. Esben Poulsson giving the keynote speech ©Nigel Draffin

World Bunkering winter 2017/18

EVENT REVIEW Guests enjoying the Gala Dinner ©Nigel Draffin

t was the first time a bunker conference dedicated a whole session to the subject of ethics, which Justin Murphy, IBIA’s Chief Executive Officer, said can be defined as doing the right thing regardless of whether or not there is a legal obligation to do so. Being in Singapore he said IBIA fully supports the MPA’s efforts to ensure that the MFM legislation is effective, noting how it is beginning to have a real impact in the market.

This message was amplified by Michael A. Lundberg, Senior Counsel – Compliance, World Fuel Services. “Acting ethically is not only the right thing to do, it is good business,” he said. In the long run, corruption is costly and a successful business cannot be corrupt because it will eventually come out. Employees operating ‘on the edge’ can get both themselves and the company they work for in trouble.

“Licenses are being revoked and, in some instances, the survival of some companies is under threat. It is regrettable that some individuals’ illegal, unethical actions end up damaging the livelihoods of others that are caught up in the ripple effect.” However, he emphasised that there is compelling evidence that ethical businesses are more profitable than others. It pays to do the right thing, and there are numerous other benefits.

Aaron Powell, Manager Ethics and Integrity, Rio Tinto Marine and Maritime Anti-Corruption Network (MACN) Steering Committee Member, explained the kind of steps that can be taken to root out corruption. The ensuing panel debate saw numerous questions, and the panellists were steadfast in their message. You have a choice in how you act and who you want to deal with.

If everybody endeavours to say no to unethical practices and companies support their employees with awareness training, and setting the right kind of priorities, we can improve business practices. Speaking of training, the convention also featured two highly-professional training courses, both under the leadership of IBIA board member Nigel Draffin, who is a hugely experienced bunker industry consultant, lecturer and author. There were also plenty of opportunities for networking, starting with a welcome reception, a number of coffee and lunch breaks, and the main gala reception and dinner at the Stamford Ballroom in the Raffles City Convention Centre. We hope you enjoy the pictures from our Annual Convention in 2017 and that you will be in the pictures from our next one!

Panellists in the session on the impact of MFMs ©Nigel Draffin

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Africa

South Africa’s suppliers should benefit from increased port investment

Getting better

A more positive picture for bunkering is starting to emerge in parts of the African markets but there are plenty of challenges ahead

fter an eventful few years, the bunkering sector in West Africa has enjoyed a period of settling-in even as the weak oil market continues to batter the region’s economies. Still, with oil prices potentially steadying at a viable level at least for now, both the continent’s oil producers and its principal importers/exporters could see economic strengthening that in turn should drive the sector. As the international supplier which has weathered the region’s storms the longest to remain its biggest player, with 15 bunker tankers operating along the West African coast, World Bunkering asked Monjasa what the current state of the sector is. “The downturn in offshore oil and gas investments has made its mark on the entire region,” a company spokesman said. “Compared to previous years, demand from supply ships, rigs and other offshore related service vessels has declined during 2016 and 2017. In addition, we see limited growth in overall global trade coming in and out of the region. Overall, the bunker market remains volatile with shifting demands and increased competition.”

“It’s still too early to say how the global sulphur cap, which is expected by 2020, will affect the region in terms of shifts in demand, product availability, and pricing,” he said. “As for our own role as a physical suppler, we don’t foresee any challenges in meeting whatever demands may arise from the market.” Monjasa isn’t the only international supplier working the region at present. Swiss-based Augusta Energy opened a dedicated bunkering desk covering both West and East Africa this autumn. The company is offering fuel supply in the Gulf of Guinea from the 7,617 dwt tanker San Padre Pio, and the Mozambique Channel from the 7,518 dwt tanker Prima and the smaller Marine Excellence, as well as operating a barge in Port Maputo. Augusta Energy joins Singapore-based Sing Fuels in entering the WAF trade. The bunker trader launched operations centered on Nigeria in the middle of August, saying in press reports that existing supply services were “not sufficient to cover the entire market” and describing the move as a “great opportunity” for the company, which is looking to increase its marine fuels earnings by expanding into new markets.

In Ghana, meanwhile, the Ghana Oil Company Limited officially opened its new US$15m MGO storage farm at the port of Takoradi this year. The three-tank farm was developed as part of GOIL’s plan to develop the port as a bunkering hub by tackling what the company’s chairman described as a previous deficit of onshore storage in Ghana. GOIL’s managing director and CEO was quoted in local press at the commissioning of the facility as saying: “The supply of the marine gas oil is to meet the expected increase in the number of vessels expected to berth at the harbour. This project, no doubt, will help revitalise the Takoradi Port, energise general economic activity at the harbour and bring back to life the once vibrant Sekondi-Takoradi.” According to the Ghanaian government, the new storage will allow for MGO supply ex-pipe rather than being so reliant on ship-to-ship transfer. Crucial to the success of the bunker trade across Africa and the port state economies on which it depends will be any recovery in the upstream oil industry.

He remained noncommittal about how exactly the market would shift in the immediate future, though upbeat about Monjasa’s abilities to cope regardless of what changes might come.

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Africa

fter all, if cargo volumes fall due to economic woes, so too do bunker volumes, and West African production in particular is a key economic driver. This summer, Angola’s petroleum minister said that $60 crude would be “extremely important” for sustaining growth in the country, and that there were signs in the market that this value was achievable by the end of the year. As of the time of going to press shortly before OPEC’s annual general meeting in November, Brent crude had just hit that value on the back of the cartel’s production cuts and civil strife in Libya. Moreover, three oil majors - Total, BP and ENI - had come out in favour of maintaining production cuts beyond March and through to the end of 2018 to stabilise prices at a more sustainable level. If continued cuts are agreed at the meeting, major producer states like Angola and Nigeria (even though it’s exempt from the cuts themselves due to internal instability) should see stronger economic growth and bunker suppliers operating in what has traditionally been a very challenging regional market might hope for steady trading conditions and better margins. In South Africa, it’s very much a case of business as you were, with the country’s bunker sector growing on the back of shifts in government policy and interest in the trade.

While some local operators are already looking ahead to the possibilities offered by LNG bunkering, aiming to get a head start should supply and supporting infrastructure come on-stream, major suppliers are concentrating on growing their core supply business.

August saw the opening of Cape Town’s new 121,908 cbm fuel storage tank farm at Burgan Cape Terminal. The storage facility is primarily geared towards shore-based and aviation fuels, but the development is part of an overall strategy of improving fuel supply security.

Aegean Marine Petroleum entered the market in 2016, offering physical supply at Algoa Bay, making it the first company to offer outside port limits bunkering in the country.

Cape Town port manager Mpumi Dweba-Kwetana said: “With an estimated investment of R890m, the awarding of this contract to a 30% black-owned company in partnership with an international operator speaks strongly to Transnet’s commitment to the Market Demand Strategy (MDS) and the vision of the Operation Phakisa programme of creating capacity ahead of demand and unlocking South Africa’s ocean economy.”

Late this summer, Gregory Robolakis, Aegean’s general manager of physical supply operations described the current state of its South African arm: “Since its launch in March 2016, the physical supply station at the anchorage area of Algoa Bay in South Africa has proven to be an excellent option for the replenishment of bunkers for vessels engaged in transAtlantic and African regional trades.” “Aegean has made significant investments in our South African operation, which now sees three of our largest and most modern barges, Lefkas (2010-built, 6,321 dwt), Leros (2010-built, 6,311 dwt) and Tilos (2011-built, 6,262 dwt) working alongside our floating storage, the M/T Umnenga (66,985 dwt) to provide customers with top class service levels that guarantee efficient bunkering of vessels at anchorage in the bay of Algoa Bay.”

Durban is due to see substantial investment over the coming year as well, with plans to build a new cruise terminal - cruise traffic in Durban has more than doubled over the past ten years - as well as an R7bn berth deepening and expansion project to deal with an expected 50% rise in box traffic over the next ten years. Durban’s box terminals are presently struggling to deal with post-panamax vessels, which take up two berths and can only enter the approach channel at high tide due to draft constraints.

Swiss-based Augusta Energy has stepped up its African bunker services

World Bunkering winter 2017/18

Ghana oil

Ghana Oil Ghana Oil Interview with Alex Josiah

1. How significant is the MGO storage farm The MGO storage facility in Takoradi is very strategic to the company as it further sends a signal to our cherished existing customers and potential ones that GOIL is ready to invest in bunkering infrastructure to consolidate its position as a market leader and deliver efficient and effective MGO supplies. This comes after a similar investment at the Tema fishing Harbour which has been expanded to 2,400 cubic metres ex-pipe to ensure safe bunkering of fishing vessels, trawlers, tug boats etc who require a low draft of between 3m -7m. A similar investment of 4,500 cubic metres ex-pipeline is at Sekondi Naval Base fitted with a filtration and coalescing unit able to pump MGO at a flow rate of 90-200 cubic metre per hour. The Takoradi Facility with a capacity of 13,500 cubic metres with filtration units and coalescers provide a modern platform for MGO supplies at the Takoradi port. 1b. How significant will this be in practical terms to owners wanting to bunker in Takoradi Owners will now have a one stop facility in the Takoradi port to have MGO supplies without interruption at an area designated or zoned purposely for bunkering activities. The new modern facility ensures safe bunkering operations using a state of the art technology , best practices and a hands on approach unparalled in West Africa. Time of delivery of the MGO is greatly enhanced for vessels that will call at the port and hence at the facility. For vessels who uphold high HSSE standards , they will be delighted by the procedures and protocols for safe environmentally friendly operations. 2. How do you see the future of Goil and bunkering in Ghana The future of GOIL is very bright as we begin to see the several investments begin to yield fruits.

Strategically the company has positioned itself to continue as the dominant Oil marketing Company in Ghana. As a market leaderIin petroleum products and MGO supplies, GOIL aspires to become very dominant in the West African downstream sector of the Oil industry.

In sizing the capacity of the tanks a lot of consideration including increase in demand for MGO was factored in.

The future of bunkering for GOIL looks very promising. The business continues to expand even though we anticipate more players. The market also continues to expand with more Exploration and Production companies expected to undertake further activities in the Cape three Point area. Strategic Alliances with these company’s will lead to further improvements in our business. However due to compliance issues we expect the competition to be stiffer, which will lead to fall outs of non-compliant Oil marketing Companies. We also expect the intense price competitiveness together with decreasing margins and an increasing cost of doing business to take non efficient players in the bunkering industry.

Global market is expected to change with all the talk about the use of alternative fuels such as LNG,CNG etc by vessels. The picture remains very unclear but we are certain that the as things begin to shape up, the industry will respond appropriately .

3. Do you think the 2020 0.5% sulphur cap will increase demand for MGO in Takoradi I think so. The Regulator of the downstream petroleum industry, National Petroleum Authority (NPA) has already set the limits for sulphur levels of fuels coming into the country. I am happy to announce that sulphur levels standard of the fuels in the country especially for diesel is 50ppm even though the current specification being brought in is 10ppm. GOIL is therefore prepared for the new sulphur cap and vessels will be very compliant when they receive MGO from GOIL’s facilities in Ghana and therefore will be assured of compliance . This is expected to increase the demand for MGO at the Ports.

4. How do you see the global bunkering market changing in the next few years and what will it mean for GOIL

For us in GOIL , we will continue to watch the direction in which the industry goes but will not shy away from making the needed investment to stay ahead of the competition. 5. Security of ships in West Africa remains a concern. Is this a problem in Ghana’s waters and ports? Not at all. The Ghanaian waters and the ports are safe as a result of the collaborative efforts by the Ghana Maritime Authority , National Security, Ghana Navy and Ghana Marine Police unit has led to the effective patrolling and safe guarding of the Tema and Takoradi ports as well as Ghana’s territorial waters.

3b) Will there be sufficient storage capacity Yes there is. Takoradi Port facilty with a capacity of 13,500 cubic metres will be adequate to cater for the increase in demand of MGO.

ALEX JOSIAH ADZEW CHIEF OPERATING OFFICER- GHANA OIL COMPANY LIMITED

World Bunkering winter 2017/18

industry news iStock

Aegean quits as Singapore physical supplier Company says Singapore remains ‘extremely competitive’ even after enforcement of mandatory MFMs

nternational marine fuel logistics company Aegean Marine Petroleum Network Inc. says that after almost 11 years as a prominent player in Singapore, it has decided to exit the market as a physical supplier as of January 2018. However it will maintain a trading presence in the Singapore market. Aegean’s president Jonathan McIlroy commented, “The bunkering market in general, and the Singapore market in particular, are extremely competitive. We had hoped that enforcement of mandatory mass flow meter (MFM)equipped bunker barging in January would have driven commercial improvement in the Singapore market allowing Aegean to compete profitably. However, 2017 has seen heightened commercial pressures in Singapore, and as a result, management has determined that Aegean’s resources can be more profitably deployed elsewhere.” The company said it was in the process of arranging its orderly withdrawal from the physical supply market in Singapore in conjunction with the Maritime and Port Authority of Singapore (MPA) and its barging and cargo partners in the market.

World Bunkering winter 2017/18

“All deliveries and contracts that we have booked with clients’ vessels, cargo providers and barge contractors will be fulfilled,” emphasised Aegean’s president. Despite the cessation of its physical supply activities, the company will retain a presence in the market. “We will continue to employ a team of traders and support staff who will actively support our valuable clients in this market. This office will support our broad base of Asian customers across both our global physical supply network as well as handling back-to-back bunker trading and our lubricants business in Singapore and South-East Asia,” said McIlroy. “We have an extensive customer base in Asia and we are committed to supporting the valued clients of our business,” continued McIlroy. 2020 confusion A marine industry survey conducted by ExxonMobil finds that the route to compliance with IMO’s 2020 0.50% global sulphur cap is unclear for many vessel operators. The oil major says that the results highlight an ongoing sense of confusion and lack of preparedness, with 70% of respondents saying that they do not believe the industry is ready for the deadline.

The makeup of the marine fuel mix in 2020 and beyond is a clear area of concern, with wide-ranging views from the industry on how the landscape will evolve. Of those surveyed, 32% predict that a combination of heavy fuel oil, marine gas oil and fuels and blends will be used, while 69% believe the cap will lead to the development of new low sulphur fuels. “At ExxonMobil we expect that new 0.5% fuel formulations will emerge, based on low sulphur refinery streams, in addition to novel fuel blends,” said Iain White, Global Marine Marketing Manager at ExxonMobil. “As a result, it’s likely we will see increased compatibility and stability problems, which will make purchasing fuels from a trusted supplier more important than ever.” The cost implications of the cap were also highlighted as a potential challenge; with 53% of respondents predicting an increase in fuel spend. When asked about the uptake of liquefied natural gas (LNG), 31% of respondents believe there will be a growth in its adoption as a marine fuel.

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hese findings align with ExxonMobil’s 2017 Outlook for Energy: A View to 2040, which predicts that by 2040 global LNG consumption will rise to more than two and a half times the 2015 level. 45% of respondents predict an increased investment in abatement technologies (scrubbers). However, only 11% said they were actively looking to install a scrubber before 2020, with 40% citing a lack of economic clarity as a reason for forgoing investment. “The results of this survey show that that we are heading to a multi-fuel future and that there is not one obvious fuel solution that will apply to all vessels,” said White. “To avoid the pitfalls that may lie ahead, it’s vital that operators work closely with trusted fuel suppliers to ensure that they select the best route to compliance for their vessel’s needs. Panama Canal launches environmental assessment tool The Panama Canal has launched its Emissions Calculator, an innovative new tool which will offer shippers the most accurate assessment of their carbon emissions, rank those who have reduced the most emissions by transiting the Canal versus alternate routes, and encourage action to reduce carbon footprints. The Canal says that, with this launch, it is reaffirms it is commitment to reduce the impact of greenhouse gases (GHG) and demonstrates its support of the global efforts at the International Maritime Organization (IMO) to set the new IMO Strategy on GHG reduction. “The Panama Canal has always been committed to reducing its carbon footprint and impact on the environment,” said Panama Canal Administrator Jorge Quijano. “This new tool allows us to bring that same commitment to our customers, giving them the information needed to make a more informed and environmentally conscious decision when planning their routes.”

Panama Canal Environmental Specialist Alexis Rodriguez explained that the Emissions Calculator will work by leveraging technology already aboard the world’s maritime fleet to capture an array of data on ships (e.g. vessel type, size, capacity, speed, fuel consumption and route) and provide the most accurate measurement of the GHG they emit, including the total emissions saved by choosing the Panama Canal over other routes. Data will then be centralized in the CO2 Emissions Reduction Ranking, a specially designed platform which ranks customers by those with the fewest emissions each month. The Panama Canal hopes to incentivize customers to demonstrate strong environmental stewardship and adopt more sustainable itineraries. Already, the Panama Canal has received encouraging feedback from its preliminary conversations with the industry.

Established in 1982, and part of the extensive Fujairah National Group, FNS claims to be the only maritime services company in the Gulf Region who can offer a fully holistic range of services to shipping clients. The Port of Fujairah is the only multi-purpose port on the eastern seaboard of the United Arab Emirates and has unique access to international east – west shipping routes.

The calculator will help the Panama Canal reduce its own carbon footprint as well. The waterway will use the Emissions Calculator to measure and track emissions from its domestic day-to-day operations and support the planning of a low carbon strategy that will be used to establish a roadmap for the Panama Canal to become a “Carbon Neutral” entity.

With major new capital to be invested in FNS over a 12-month period, services now include agency, husbandry, ship management, repairs, maintenance, clearing, forwarding, offshore support, crew management, warehousing, and distribution. Based on new data analytic capabilities, the company is also launching new technology platforms which will help clients to optimise voyage management and supply chain efficiency.

Fujairah National Shipping aims to be “one-stop-shop” Fujairah National Shipping (FNS) says that it is launching an ambitious bid to challenge network rivals in the Gulf by aiming to become one of the top three maritime services companies in the region by the end of 2018. Based at the Port of Fujairah and taking advantage of the port’s strategically important location near the Strait of Hormuz, FNS is targeting greater market share in the region by becoming the first ‘one-stop-shop’ maritime services company and further adding to its portfolio of services. The company has also brought in a new management team, invested in new physical assets within the port, and launched a new technology platform.

Previously known as Fujairah National Shipping Agency, FNS, which also has offices in Dubai, has relaunched under the fresh leadership of its Chief Executive Officer, Sanjeev Sarin. Prior to joining FNS, Sanjeev Sarin worked in a number of senior strategic roles, covering ship agency, ship management, clearing and forwarding, logistics and distribution, technical and crew management and commercial chartering.

FNS provides solutions to ship owners, charterers, managers and brokers and amongst its service bouquet offers bunkering, oil storage and ship repairs as well.

Sanjeev Sarin CEO Fujairah National Shipping

World Bunkering winter 2017/18

The company’s strong core offering plays a central role in meeting the exacting demands of its ship owner and operator clients”. The new CEO Sarin added that FNS is confident of becoming one of the top three maritime services companies in the region. “The company’s many developments, including employing innovative data analytics, will enable us to maintain a leadership position.” ABS to analyse LPG’s potential as a marine fuel US-based classification society American Bureau of Shipping (ABS) is to provide Dorian LPG with an in-depth technoeconomic analysis, laying out compliance options for impending global sulphur cap requirements, including the potential for using LPG as a fuel. Dorian LPG owns and operates a fleet of very large gas carriers (VLGCs), transporting liquefied petroleum gas around the world. “It is important for owners and operators to assess their fleets and evaluate their options so that they can develop the most efficient compliance strategies as new requirements come into place,” says ABS chairman, president and CEO Christopher Wiernicki. “The Dorian LPG fleet of VLGCs provides an opportunity to investigate new fuels, such as LPG, among other conventional options, and we are excited to work closely with them as they develop strategies that meet their unique fleet profile.” “As we look ahead at the implementation date of the IMO’s mandate to reduce sulphur fuel emissions, we are maintaining our strategy to ensure that our fleet remains efficient and cost-effective. Based on the environmental benefits of LPG as well as the large number of ports that have the existing infrastructure to deliver LPG to the global fleet, we are examining the potential of using LPG as a marine fuel,” says Dorian LPG Chairman, CEO and President John Hadjipateras. “With their extensive knowledge in environmental regulations and technical prowess, ABS will play an important role as we prepare to meet the impending 2020 global sulphur cap requirements.”

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ABS will help evaluate the various fleet compliance options, including LPG as a marine fuel, installation of scrubbers and use of low-sulphur fuels. It is important to fully understand the technical implications and risks of applying an alternative fuel source, such as LPG. Before options are considered, ABS will perform a comprehensive LPG as Fuel technical evaluation in order to define the most advantageous options to serve the needs of the specified vessel design. The evaluation will consider the applicable regulations, the design capabilities and limitations, the installation and safety requirements, the operating features and equipment restrictions. Brightoil aims to “transform the way bunker fuel is traded” Brightoil Bunker Online E-Delivery platform is now live and includes a Forward Fixed Price (FFP) facility which the company says will make “the process of buying bunkers anywhere in the world faster, easier and more transparent”. The new facility enables customers to lock-in bunker cost for up to nine months forward, “thereby reducing exposure to major price swings”. The features of the new E-Delivery platform include: price risk management providing real time FFP indications; up to nine months forwards are tradable; no initial margin or margin calls and online nomination of FFP contracts for physical delivery and optional cash settlement.

Brightoil International Trading and Bunkering chief operating officer Stephen Qi Jun said: “We are taking a strategic step in this uncertain environment by putting significant resource and financial investment into this online platform. We are launching now because we recognise that our customers’ business environment is rapidly changing. There is a constant need to improve process efficiency and create cost saving in the intensely competitive shipping markets. This is why we have worked hard to incorporate a full spectrum of new and innovative tools available now at your fingertips.” Brightoil says the platform gives bunker buyers security and transparency to a level that has never been available in the market before. The settlement culminates in physical bunker delivery rather than speculative hedging using paper financial instruments. The platform is accessible via PC, Mac, iOS and Android mobile apps. The company says that other “unique features” include: the ability to connect and negotiate with physical bunker suppliers in major ports worldwide; monitoring of global ports’ bunker delivered prices and access to a voyage planner to optimize routes and reduce bunker fuel costs. In addition, credit options are available from Brightoil. The new platform is the result of a year-long collaboration between commercial and IT development teams from Brightoil’s Singapore and Shenzhen offices.

Stephen Qi Jun - Brightoil

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Sheikh Sultan bin Saleh Al Sharqi, ViceChairman of Fujairah National Group, said: “Fujairah National Shipping is perfectly positioned to capitalise on the growing market opportunity at the Port of Fujairah and throughout the Gulf Region.

Port of Tenerife

The Port of Tenerife offers shipping a sustainable future Airam Díaz Pastor, Commercial Director of the Port Authority of Santa Cruz de Tenerife, outlines the range of services the port offers today and explains his vision for the future

What is you role and vision for the Port of Tenerife? I was appointed Commercial Director of Ports of Tenerife in 2011 and I am currently responsible for all the Port’s commercial and promotional activities, playing these an important role in local economy. Our Port Authority is one of the 28 bodies which make up the Spanish state-owned port system. We manage a total of six ports, among them those located in Santa Cruz de Tenerife and Granadilla. The Port of Santa Cruz already serves as an important port of call for many shipping lines, as well as a service and repair centre for the offshore industry. It also ranks among the top ports in Spain in terms of cruise passengers and also as the only refinery in the area. The many services offered all year round by the port community are highly appreciated by those who know us. The new Port of Granadilla has recently been partially opened and, once finished, will significantly boost the island’s transshipment capacity. This port will include multi-purpose and logistic areas, as well as a container terminal and a regasification plant. Altogether there will be up to 60 hectares of available space.

Our vision is to use this new capacity to promote the switch to more environmentally friendly types of fuel and increase our importance as a key logistic hub in this area of the Mid-Atlantic.

It is important to note as well our growing impact in the container trades. We have seen a year-on-year increase of 15% percent, according to the latest data available as of October 2017.

I understand the port of Tenerife is connected to over 270 ports around the world? What makes Tenerife such a valuable port and location? There is no doubt that the Canaries in general and Tenerife in particular occupy a strategic location on the major international trade routes. Located halfway between Europe, America and Africa, Tenerife offers a wide range of services for bunkering supply, offshore projects and repairs, containerized and general cargo transshipment and of course for the cruise and tourism industry.

Our superb port infrastructure, with a draft up to 20 metres in Granadilla, and two container terminals with up to 1,200 m of available quay length in Santa Cruz (to give just two examples), is among the most developed in this region. A skilled workforce is the other ingredient making the perfect environment to do business.

We have witnessed a noticeable growth in the offshore sector over the past few years, with around 15 oil rigs making technical stopovers in 2016 alone. A new shipyard with more than 12,400 square metres of working area and a 150 metre quay was opened recently. Meanwhile the cruise sector continues to show excellent figures. This positive trend made possible the construction of our new cruise terminal, unveiled for 2017-2018 season.

The location of Tenerife is significant, being at the intersection of NorthSouth and East-West trade routes’ How can you take advantage of the potential the passing trade offers? We want to strengthen the image of Tenerife as a key logistic hub for investors and shipping lines. It’s important to say that even if located only a few hundreds of miles off the west coast of Africa, the Canary Islands are part of the European Union and are fully integrated into EU laws and regulations framework. The Islands also benefit from a special fiscal regime also approved by the European Commission, and enjoys a reduced tax scheme.

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he Port of Santa Cruz anchorage area is well sheltered with natural protection, and offers outstanding conditions for bunkering supply. The Port Authority is also committed to develop the bunkering operations and have approved attractive discounts off the ship tax of up to 40% for bunkering only operations. This discount may be increased up to 75% or even 98% depending on the activity and the certificates (Quality and/or Environment Friendly) provided. What development plans does the port of Tenerife have to add to the range of services it currently offers? The opening of the Granadilla port has satisfied a long-standing demand, and we are sure this new infrastructure will fulfil our expectations, as well as meet our customers’ needs. The figures in terms of captive traffic and regular lines are good, but can still be improved. The creation and monitoring of a database of major shipping companies passing through Tenerife, in order to support our regular commercial, marketing and promotion activities, has proved to be one of our most valuable assets in terms of how to take advantage of this potential growth.

On the subject of a more environmentally friendly future, increasing of our shoreto-ship power (SSP) provision will reduce noise and pollution in the port area and will allow a better relationship between the city and the port. Tenerife is used to hosting maritime forums. Can you say what attracts people to come to Tenerife? We have hosted at least one first class event a year since 2011. A very good example is the Seatrade Cruise Med event in 2016, which to be honest was a great success for all. We counted over 3,500 participants and around 180 worldwide exhibitors. An event of this magnitude can only be possible if there is a close cooperation between customers and institutions. That’s something we have been working on for the past few years and feel especially proud of our good relationships with customers. Tenerife is a popular convention destination, thanks to its climate and extensive hotel capacities, together with superb conference centres which meet everyone’s needs. Also, with two international airports handling over 14 million passengers in 2016, we ensure quick and regular flight connections to over 160 European destinations.

I understand you are planning a Maritime bunkering forum in March 2018 can you tell us about some of the features that this will offer? Basically, we want to show off the advantages of Tenerife as a bunkering hub. It’s true that we have gone through several supply problems in the past due to the removal of one supply barge, but we are starting to recover now this barge has been re-introduced. That resurgence is reflected by the figures. These show that tonnes of fuel supplied this year were up between 1015% compared with the corresponding periods one and two years earlier. We are still working on the conference programme, but it is likely we will seize this opportunity to speak about developments at Tenerife’s ports, the potential of the LNG as a bunkering alternative and the IMO 2020 regulations as well as other interesting topics. We want to present Tenerife as the European foothold to do business between Europe, Africa and America, with great opportunities for investors and other industry operators within the bunkering sector.

There is a move for some ship operators to adapt to ‘new fuels’. Does Tenerife have any plans to meet these needs? What will PoT look like in the future? We always try to adapt to our customers’ demands and those of the market. Our aim is to position our ports as safe suppliers of cleaner energies, and we strongly believe that the steps taken so far are quite positive. The outstanding shipbuilding order book shows a noticeable number of vessels using LNG as fuel for ship propulsion, and we have been working with shipowners and managers alike to start supplying LNG during season 2017-2018, especially to the biggest cruises using Tenerife as port of call or home port.

Mr. Airam Díaz, Commercial Director of the Port Authority of Santa Cruz de Tenerife

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Port of Tenerife

Environment

iStock

Lots of hot air

A war of words broke out in the run-up to important IMO and EU meetings and the Bonn Climate Change Conference

he autumn of 2017 saw a concerted effort by various environmental lobbying groups to influence key meetings that could have impacted on shipping’s response to the need to reduce its carbon footprint, as part of international efforts to counter global warming.

Transport & Environment (T&E), a founding member of the Clean Shipping Coalition (CSC), publicised the results of a study it had carried out which found that 71% of all new containerships already comply with the post-2025 requirements of the IMO’s EEDI.

In late October the second meeting of IMO Intersessional Working Group on Reduction of Greenhouse Gas (GHG) Emissions from Ships met to shape a draft initial IMO greenhouse gas (GHG) strategy and develop a commitment to reducing GHG emissions from international shipping.

The International Chamber of Shipping (ICS) told World Bunkering: “When the EEDI baselines were agreed it was understood at the time that containerships could achieve EEDI very easily without recourse to any major hull improvements, power and propulsion improvements or adoption of novel and advanced technologies simply by slowing down. Ten years ago containerships, or at least the deep sea ones, were cruising at 24 – 27 knots and Maersk had just built a big class of 30 knot+ ships. That large container ships have had an easy ride to Phase 3 [of IMO’s EEDI programme] is hardly contentious or disputed, it is also irrelevant with regards to oil tankers, bulk carriers, large ro-ro’s and some other ships. Our concerns primarily relate to bulkers, tankers and other ships which do not have the luxury of starting from EEDI baselines which everybody knew at the beginning were set at a point which made achieving EEDI phase 3 easy. The reason container ships have improved their efficiency so much has nothing to do with EEDI and everything to do with adopting slow steaming for commercial reasons. If a containership reduces speed from 27 knots to 22 knots, for example,

Then in November the EU reached a provisional agreement on the reform of the emissions trading system (ETS), which could have brought shipping into the ETS through setting unachievable timelines for IMO progress. Finally, the 23rd Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 23) took place in Bonn from 6 to 17 November. As IMO’s Intersessional drew near, environmental campaign groups not only claimed that IMO’s efforts on CO2 emissions, including the mandatory Energy Efficiency Design Index (EEDI), were hopelessly weak and ineffective but also pushed out a report claiming that IMO was, in effect, in the pocket of the shipowners.

it is a massive reduction in required shaft power because of the relationship between power and speed for a propeller law shaftline.” Then Influence Map, a research group focused on climate change and finance reform, claimed its new research revealed “how the shipping industry has aggressively lobbied the UN to obstruct climate change action for shipping, ensuring it remains the only sector in the world not currently subject to any emission reduction measures”. That sparked a strong reaction from both ICS and IMO. At the IMO meeting, the Clean Shipping Coalition (CSC) presented a study which showed that limiting ship speed could, by 2030, see CO2 emission reductions of up to 33% from the three main ship types: containers, tankers and bulk carriers. It claimed that this would result in a global in-sector saving of around 200 million tonnes of CO2 annually. In the event the environmental groups were unhappy with what they saw as a lack of progress at the IMO meeting while the shipping industry generally approved. IMO said progress was made in starting to shape a draft initial IMO GHG strategy including refining the vision for IMO, which will express IMO’s further commitment to reducing GHG emissions from international shipping.

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n IMO statement said: “While the structure of the strategy has been largely agreed, the detailed text to be included is still under discussion. A wide range of detailed proposals were put forward for inclusion in the draft initial strategy. These included those relating to the vision, levels of ambition, guiding principles, candidate measures, barriers and supportive measures and follow up actions. The group agreed that the draft strategy should incorporate a process for its periodic review.” IMO added: “The group agreed that candidate short-term measures could be measures finalized and agreed by the Marine Environment Protection Committee (MEPC) between 2018 and 2023; candidate mid-term measures could be measures finalized and agreed by the MEPC between 2023 and 2030; and candidate long-term measures could be measures finalized and agreed by the MEPC beyond 2030. Dates of entry into force and when the measure can effectively start to reduce GHG emissions would be defined for each measure individually.”

The international shipping industry associations ICS, BIMCO, INTERCARGO and INTERTANKO, said they were “broadly satisfied” with the progress made. They said they were encouraged that the “ambitious proposals from the shipping industry regarding CO2 reduction objectives for the sector as a whole remain on the table, along with similar proposals from several IMO Member States”. A statement noted “a recognition that the vision of reaching zero CO2 emissions will only be achieved by supporting the development of alternative fuels and propulsion technologies, and ensuring their global availability”. The environmental groups saw things rather differently. A CSC statement said: “Calls for urgent action to reduce ship greenhouse gas emissions have been met with heavy push-back by many states and big industry groups meeting at the International Maritime Organisation (IMO).”

Following the IMO meeting the environmentalists’ big hope and the shipping industry’s big fear was that the EU would commit to the unilateral action of bringing shipping into its ETS. As it turned out shipping got a reprieve with a provisional decision by the European Union not to include shipping within the full scope of its regional ETS. ICS Director of Policy, Simon Bennett, said: “We think that this demonstrates confidence within the EU institutions in the current progress being made at the UN IMO to develop an ambitious strategy that will deliver additional CO2 reduction measures, consistent with the shipping industry’s own vision of zero emissions, as soon as possible. We understand that the date which the EU has agreed for when the European Commission will next closely examine the progress that has been made globally is consistent with those time lines agreed by all IMO Member States.”

IMO Secretary-General Kitack Lim said, “The working group made some considerable progress in bringing together the proposals for the different elements of the draft IMO GHG strategy. I am confident that Member States will continue to work on this ahead of the next working group session, to build convergence so that the draft initial IMO GHG strategy can be adopted as planned at the next session of the Marine Environment Protection Committee in April 2018.” According to IMO, the group highlighted the need to consider carefully the potential impact of measures on countries, particularly the Least Developed Countries (LDCs) and Small Island Developing States (SIDS). The group also recognised the need to address barriers and provide supportive measures, including capacity building and technical cooperation; and research and development especially into alternative fuels.

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Simon Bennett ©ICS

Environment

CS restated its view that ETS is an inappropriate tool for application to an industry like shipping because of the “huge risk of creating serious market distortions and the administrative challenge of incorporating tens of thousands of ships operated by thousands of SMEs into a discredited system which the EU is already struggling to reform”. “The industry does not support the concept of Market Based Measures (MBM),” said Bennett. “But in the event that, as part of the IMO strategy, MBMs are included as a possible candidate measure, today’s EU decision does at least make it more likely that the type of MBM that might be explored would be a global fuel levy. And compared to the nightmare of a regional ETS, a global fuel levy would clearly be the preference of the vast majority of shipowners should an MBM ever be imposed on them.” The UN climate talks made no decisions directly affecting shipping but were used by both the shipping industry and the environmentalists to set out their stalls in advance of next April’s session of the Marine Environment Protection Committee, which is expected to adopt a draft initial IMO GHG strategy. In November ICS also took the opportunity to stress to the Organisation for Economic Co-operation and Development (OECD) Working Party on Shipbuilding at a workshop on ‘green growth’ in Paris that “the shipping industry could only be environmentally sustainable if it is economically sustainable too”.

Bennett said: “The vision of ICS is zero CO2 emissions as soon as possible using alternative fuels and new propulsion technologies. But so long as ships are dependent on fossils fuels, IMO Member States need to be both politically and technically realistic about what can achieved in the short term if this is to be compatible with the legitimate concerns of emerging economies about the impacts on trade and their sustainable development.” At the same time as these high level exchanges have been going on there have also been some more practical developments. Global Maritime Forum, Carbon War Room, the Carbon Pricing Leadership Coalition (CPLC), and University College London (UCL) announced the launch of a Task Force on Decarbonising Shipping. This industryled initiative aims to develop “tangible pathways for shipping’s decarbonisation through five working groups, each focussed on a key area of the industry”. Outcomes of the task force will be presented at the Global Maritime Forum’s inaugural summit in October 2018. The task force is intended to bring together leaders and experts from across the maritime industry to develop and mobilise the industry along tangible pathways aligned with ambitious, sciencebased emission reduction targets. It will focus on five areas key to effectively addressing the maritime industry’s climate challenge: industry leadership, technology, transparency, finance, and carbon pricing.

These areas were identified as central to decarbonising shipping at an exploratory industry workshop held in London in June 2017. The task force will develop a vision for collaborative innovation on low carbon technologies; toolkits and guidance to increase transparency about operational efficiency; a best practice guide for incorporating climate risk assessment in ship finance; and recommendations on the role of carbon pricing in tackling emissions. All outcomes will be presented at the Global Maritime Forum’s inaugural summit in October 2018. The CEO of European ferry company DFDS, Niels Smedegaard, said: “At the 2016 Danish Maritime Forum, industry leaders concluded that the shipping industry needs to adopt a leadership role in addressing the climate challenge. We as an industry must step up. We need to be a part of the solution. This calls for a common platform that delivers forward-looking collaboration to support the long-term sustainability of the global shipping industry – economically as well as environmentally.” Alastair Marsh, CEO of Lloyd’s Register, commented: “The later we leave decarbonisation, the more rapid and potentially disruptive it will be for shipping. This task force will enable industry leaders to come together to determine possible decarbonisation pathways, and to promote innovation, collaboration and investment.”

IMO Secretary General Kitack Lim ©IMO

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Fuel additives iStock

New formulas

Additive producers have come up with new products to reduce soot in economisers, stop low temperature wax formation in distillates and boost the performance of residual fuels

n exhaust gas economizer usually needs cleaning every two or three months due to soot build-up. This uses up precious crew time when in port and costs money. It also adds to wear and tear on the cleaning equipment. Wilhelmsen says its newly formulated Unitor Fuelpower Soot Remover Liquid Plus increases the cleaning and maintenance interval for an exhaust gas economizer (EGE) or boiler to between 12 and15 months. The company says extensive yearlong trials on the 76500 GRT Ro-Ro Tonsberg, with a MAN B&W 7 Cylinder L70 ME-C8 main engine, clearly showed tangible benefits of using its new treatment chemical. It says using the product has clear benefits including: keeps the EGE free of soot, increases cleaning interval to 12-15 months, prevents acid formation, prevents cold corrosion, reduces risk of soot fires, is environmental friendly by reducing emission of soot particles, reduces the challenge of dealing with the acidic wash water every 3 months and does not involve the use of heavy metal compounds such as copper nitrate.Soot build-up presents the shipowner with several challenges. One is how to dispose of dirty wash water after cleaning an EGE. The water cannot be disposed of in port and requires additional waste management.

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Soot deposits reduce an EGE’s efficiency as they form an insulating barrier. A one millimetre layer of soot can reduce the efficiency of the exhaust gas boiler by up to 10%. The soot deposits can also cause overheating and fire-risk. Wilhelmsen says that the problem of soot deposit is made worse by several factors. One is metal contaminants in the fuel causing incomplete combustion, another is EGEs use of low velocity flue gas for higher efficiency. Also, a reduction in exhaust gas temperatures in modern engines and slow steaming practises increase soot deposit formation or cold corrosion in the EGE. Another new Unitor product has been developed to tackle the challenge of waxing in distillate fuels, which can lead to blocked fuel filters and pipelines or wax settling in fuel in tanks. ISO 8217 sets a pour point limit, the temperature at which fuel becomes solid, of -6°C for winter-grade marine gasoil but does not set a limit for the cold filter plugging point (CFPP). The company says this is where the trouble starts at temperatures as high as 15°C. Unitor’s DieselPower CFPP lowers the cold filter plugging point to as much as -25°C.

Innospec’s fuel treatment Innospec has launched its latest fuel treatment product, specifically developed for residual fuel grades. The additive has been developed to deliver optimum fuel performance through handling, combustion and exhaust. The dosage rate is 1 litre to 6 tonnes. Shell tested Octamar Complete on an engine test bed engine at their Marine & Power Innovation Centre (MPIC) in Hamburg for its ability to improve specific fuel oil consumption (SFOC), stability and emissions. According to Innospec: “Dramatic improvements in ignition and combustion, stability reserve and particulate emissions were all verified on site, whilst the engine raw data was normalised and assessed by Innospec’s statisticians using industry approved methodology. The result shows an average SFOC reduction of 1.6 % across the load range, whilst a maximum reduction of 2.2% was observed at half load.”

Wilhelmsen says that shipowners may be caught out by bunkering distillate fuel in a warm region but end up using it in a cold climate due to a vessel’s trading pattern. The chances are then high that the fuel is does not meet winter-grade specs and could cause problems. iStock

scrubbers

Jasper Faber ©Nigel Draffin

Scrubber uptake “may be less than expected” IMO study author tells IBIA forum his predictions may have been too optimistic but manufacturers continue to report orders

he base case figure for projected uptake of exhaust gas cleaning systems (EGCS), or scrubbers, in the official availability study presented to the International Maritime Organization in 2016 may be too optimistic, the study’s lead author told a forum hosted by IBIA during London International Shipping Week (LISW). Jasper Faber of CE Delft said the base case in the study regarding how many ships will have EGCS installed by 2020 may not be happening because current orders are slow. He said the prediction was based in part on the anticipated “excellent” economic argument for installing abatement technology to allow continued operations on high sulphur fuel oil (HSFO) in 2020, when HSFO demand and its value relative to crude is set to drop sharply. Only around 400 ships have been fitted with or placed orders for the technology to date, well shy of the CE Delft base case in the official availability study for the IMO, which predicted that 3,800 ships would be ready to comply with sulphur regulations by using scrubbers in 2020, burning some 36 million tonnes of HSFO accounting for 11% of total global marine fuel demand.

Faber said “we may still see” something closer to the lower level of EGCS uptake predicted in the model, which pegs the number of ships using the technology in 2020 at 1,200 which would burn 14 million tonnes of fuel accounting for 4% of total marine fuel demand. Asked what might be different if CE Delft was to do the 2020 availability assessment for the IMO today, Faber said both the EGCS uptake figure and the projected uptake of LNG as a marine fuel by 2020 “were probably on the high side”. However, this would not change the study’s overall conclusion that there will be sufficient refinery capacity to meet global demand for low sulphur fuels in 2020. Unexpectedly high or low investment in EGCSs and LNG ships would have to coincide with much higher transport demand than currently predicted to change that conclusion. Industry consultant and current IBIA chairman Robin Meech of Marine and Energy Consulting Limited (MECL) told the IBIA forum that MECL’s model currently estimates there are 400 ships with EGCS scrubbing some 4 million tonnes of fuel annually, predicting this figure could rise to 10 million tonnes by 2020 based on 1,350 ships having installed abatement technology by then.

MECL predicts the scrubbed volume will then rise ten-fold by 2030 to just over 100 million tonnes. Meanwhile Clean Marine has secured a multi-vessel contract from Inventor Chemical Tankers AS (ICT) covering seven 19,900 DWT chemical tankers, for the firm’s new CleanSOx Compact Hybrid Allstream scrubber to the marketplace. According to Clean Marine CEO Nils Høy-Petersen, the company has been exclusively dedicated to EGCS solutions since its inception in 2006. “Our latest product has been designed to ensure shipowners can achieve simple, cost and space efficient compliance with the IMO’s SOx regulations, coming into force in 2020,” he says. “The new Compact scrubber has all the advantages of our existing, patented EGCS Further ahead in the sales league, Alfa Laval says 109 vessels have been or will be fitted with its PureSOx platform. The company claims: “With over 75 PureSOx systems in operation today, Alfa Laval has the marine industry’s most extensive list of reference installations for any single SOx scrubber technology.

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his represents every PureSOx commissioned since the first installation, including those on board a number of other ships in the DFDS fleet. The shipping company currently has a total of 16 PureSOx scrubbers in operation on 13 of their vessels.” “The close, ongoing partnership we’ve been fortunate to build with DFDS and many other customers have been a great benefit for Alfa Laval,” says Erik Haveman, Sales Director, Exhaust Gas Cleaning at Alfa Laval.

scrubbers

“They have been instrumental in helping us to better understand the needs facing marine customers when it comes to installing and commissioning SOx scrubber systems.” In a new development, Netherlands-based VDL Groep has entered into a joint venture with scrubber manufacturer AEC Maritime, the Eindhoven-based specialist in air cleaning, that develops and markets filter systems for ships.

These so-called scrubbers filter the sulphur particles and other r components from the exhaust gases emitted by ship engines. The collaboration between the two companies, operating under the name VDL AEC Maritime, was launched on 1 September. Damen Green Solutions, part of Damen Shipyards Group, will be responsible for the complete installation of the scrubbers.

Cleanseas scrubber

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blending

Blending to 0.50% “is feasible” Ara Barsamian and Lee E Curcio, of the US-based Refinery Automation Institute, put the case that IFO380 bunker recipes can be used to meet IMO 2020 sulphur specs

o day passes without publications, the blogosphere, and pundits wringing their hands over the upcoming IMO 2020 0.5%S bunker specs. Some are simply giving up, with headlines crying “Industry…Just Sleepwalking into Gasoil”[1], others wishing it away by…. ignoring it for the moment, and hoping for some miracle... But is it justified? We looked at the six choices for 2020 documented elsewhere [2], including switching to MGO, using ECA fuels, using 0.5%S fuels (still to be made), using scrubbers, switching to LNG, or doing nothing. We then looked at the feasibility of making bunkers with today’s widelyavailable blend components.

Based on our Refinery Automation Institute (RAI) US Gulf Coast 0.5% S Bunker Feasibility Study (August 2017), we are happy to confirm that we can successfully and economically make 2020-compliant bunkers today! However, here, we first look at two other studies that considered options for blending to achieve the 2020 spec: the IMO CE Delft study [4], and the IMOunsolicited Ensys/Navigistics study. [5] Review of IMO study undertaken by CE Delft Our basic critique is that for Europe and the US, the IMO study’s “solution” is a 14 to 17 cSt viscosity gasoil, the recipe being

Fig. 3 IMO study’s European 0.5% S Bunker Recipe Credit: IMO-CE Delft

~75% gasoils and 25% hydrotreated (desulphurised) atmospheric residue or H-Oil bottoms, which cannot be called bunkers, either property-wise, or price-wise. In addition we believe it to be misleading to claim the use of components that currently don’t exist in certain geographical areas, e.g. visbreaker bottoms which don’t exist in the US, or the very rare H-Oil unit bottoms. For Asia, the IMO study claims the typical spec will be a 110 cSt bunker fuel. The recipe again uses components that are hardly available because the process units don’t exist or there are just a handful, e.g. using about 65% hydrotreated atmospheric residue (even if there aren’t meaningful number of facilities available), and about 13% H-Oil bottoms, again, with very few units available. Parallel IMO study by Ensys/Navigistics A parallel availability study was undertaken by Ensys/Navigistics that drew completely the opposite conclusion to that of the official IMO study undertaken by CE Delft: that there won’t be enough blend components to meet 2020 specs. However their bunker fuel recipes were more or less paralleling CE Delft recipes using a lot of treated residue (<1%S). RAI US Gulf Coast 0.5% S Bunker Feasibility Study (August 2017) Our RAI 2020-compliant Bunker Study [3] examined in detail US Gulf Coast availability of suitable blend components today to make 2020-compliant bunkers. We used these components and bunker blend optimizer software [8] to verify 2020 spec compliance and cost-effectiveness.

Fig. 4 IMO study’s USA 0.5% S Bunker Recipe Credit: IMO-CE Delft

The criteria used in selecting widelyavailable blend components were based on low – sulphur crudes, thus avoiding costly desulphurisation via residue hydrocrackers or residue HDS processing. The blend components used for recipe testing were:

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blending We also compared the costs of making these blends vs. cost of other fuels: ECA-hybrids, LS (1%) IFO380 (Genoa), and 0.1%S MGO’s. In all cases, the US Gulf Coast blends were significantly cheaper (Fig. 2).

Fig. 5 IMO study’s Asia 0.5% S Bunker Recipe Credit: IMO-CE Delftz

Straight Run Residue – LS (< 1%) Vacuum Residue – LS (< 1%) No. 6 residual fuel oil (0.3%S to 1%S) HT LCO Slurry Oil VGO-LS (< 0.5% S) Russian Black Gasoil Marine Gasoil These components are currently available in the US Gulf Coast. The prices of these blend components were from Argus, Platts, and OPIS. For some components, we estimated their prices based on the Platts methodology of extrapolating between a pair of reference fuels that “bracket” the desired “unknown” component properties.

For residues, we explored a number of “low sulphur” crudes, producing residues with a sulphur content between 0.3 and 0.6 m/m% S. The crudes we tried are widely available crudes such as Cabinda, Minas, Girassol, Bonny Light, Forcados, Qua Iboe, and some crude blends such as Saharan, BTC, and Palanca [6] [9]. The criteria is for these crudes to produce residues that do not exceed approximately 0.6 to 0.7 m/m% S. The recipes use low sulphur atmospheric crude residues with “cracked” blend stocks, like FCC LCO and Slurry. This pretty much guarantees blend stability and compatibility because the aromaticity of these components keeps the asphaltenes in solution.

We purposely used low sulphur crude residues to avoid costly hydrodesulphurization to keep the costs manageable. Expecting refiners to build new desulphurisation units is wishful thinking in the current low crude oil price environment, which is not showing any signs of abating soon. Is the use of low sulphur crude residues realistic? We think so. There are over 100 different crudes meeting the criteria (see reference 6 for specific lists), and they are available both in Asia-Pacific, Africa, and US. Of course, it’s going to take a little bit of extra work to line up contracts at the right price, and insuring refinery units can run on the alternate crude diets. Conclusion The RAI study confirmed that: • We can make 2020 specs bunkers at about the same cost as making today’s IFO380 • The bunkers meet all the ISO 8217 specs for residual fuels, and are not “gasoils”, avoiding thermal shocks and other fuel switching headaches • There are enough low sulphur components on the US Gulf Coast market today to comfortably make 0.5%S IFO380 Importantly, it does not require refiners to re-configure their plants or add expensive residue desulphurisers or residue hydrocrackers (which won’t be available anyway for Jan 1, 2020).

Fig, 1 Example of 2020 Optimized Bunker Recipes

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Assuming 300 million tons/year of IFO380 consumption (about 6 million BPD), it does not stretch budgets or markets to get the lower sulphur crudes or blend stocks.

blending Fig. 2 Examples of RAI Recipes and their Costs (August 2017)

References • [1] Sharma, A., “The Industry is Woefully Unprepared for 2020 and Just Sleepwalking into Gasoil”, Ship & Bunker, July 19, 2017 • [2] Barsamian, A.,”Solving Global 0.5%S Bunker Conundrum”, Oil Blending World Blog, April 2017 • [3] Barsamian, A., Curcio, L.E., ”Study of Practical IFO380 recipes in US GC for 2020 Compliance”, August 2017 • [4] Faber, J., “Assessment of Fuel Oil Availability”, IMO CE Delft study, The Hague, Oct. 3, 2016 • [5] Ensys Energy, Navigistics Consulting, “Supplemental Marine Fuels Availability Study”, Ensys/Navigistics study IMO MEPC Presentation, 24 Oct 2016 • [6] McGreevy, T.D. (Muse, Stancil & Co.), “Residual Oil Disposition: Path Forward for US and Latin American Refiners”, 10th Annual Bunker Conference, p. 12, June 2013 • [7] Barsamian, A., Curcio, L.E.,” Scrubbers: Justification and Return on Investment Calculator”, August 2017 • [8] Barsamian, A., Curcio, L.E.,” Use of SmartBlend Bunker Blend Optimizer to obtain IMO 2020-compliant IFO380 Recipes”, August 2017 • [9] Tronche, J-L.,” Louisiana-LOOP revised specs for cavern blend Segregation 20”, Blogs.plats.com/2017/08/22’segregation-20-loop, August 2017

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Australia

Green pressure on bunkering

The environment has dominated the recent Australian bunker agenda, with different interests trying to offer both the carrot and the stick to ships operating in Australian waters, John Rickards reports

he carrot comes in the form of the LNG Marine Fuel Institute, a lobby group and promotional association launched this year in Perth in Western Australia’s gas heartland. The not-for-profit body aims to push LNG as a marine fuel to promote “stable and environmentally sustainable growth for the maritime sector”, and launched with a partnership in place with the similar group in the Northern Hemisphere, the Society for Gas as a Marine Fuel (SGMF). LNG MFI chairman Richard Sandover said: “LNG MFI sees a future for LNG fuels, not only in the marine industry but also our road, rail and mining industries being fuelled by our own gas. For LNG MFI, it is about Australia gaining energy independence. Our CEO and director, Captain Walter Purio describes this as our ‘noble cause’ and he is right.” The group supports the notion of a “green trade route” between Western Australia and Eastern Asia, fuelled by LNG. At the start of the year, major Western Australian gas producer Woodside Energy announced it was working with MOL, BHP Billiton, DNV GL, Rio Tinto and Shanghai Merchant Ship Design and Research Institute on a study into the feasibility of an LNG-fuelled capesize bulker to operate on similar routes, which the joint venture titled the “Green Corridor”.

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“As Australia’s leading producer of LNG, Woodside is pleased to be working with the mining and shipping industries to explore the potential for LNG fuel use by bulk carriers on the ‘Green Corridor’ trade routes between Australia and China,” said Peter Coleman, Woodside CEO. “We think the trade routes from northern Western Australia are the perfect place to drive the transition to LNG as a marine fuel, with exporting industries in close proximity to world-class LNG supplies.” The stick comes in the form of further pushes to reduce sulphur emissions in port. Following on from Sydney’s imposition of a 0.1% sulphur limit for cruise ships at berth - Sydney’s White Bay cruise terminal has no shore-based power offering - Hobart City Council has taken steps to see a similar cap put on vessels calling there, asking the Australian federal government to put legislation in place. The calls follow an increasing level of cruise visits to Tasmania, with estimates ranging from between 60 and nearly 140 calls expected at Hobart in the current season.

Tasmania’s Environmental Protection Agency began a sulphur dioxide monitoring program in the port this summer to determine if sulphur emissions breached existing national standards. City Councillor Helen Burnet, who proposed the cap, told World Bunkering that while there was support in the Australian Senate for the move, there had been no formal response at the time of going to press to the council’s letter, and even getting the EPA to take notice had been slow. “I raised the issue a couple of years ago,” she said. “This is the time it took to have air monitoring in place. In those two years, the number of cruise ships has doubled. They berth very close to the city, within 100m of the UTAS Art School, and alongside a newly-built 5-star motel.” “We know standards on bunker fuel use are higher in US and EU waters, and this is a step in ensuring air quality and that Hobart and Tasmania’s clean and green image is not tarnished.” Whether the Australian government will act or not, or whether they’ll hold off with 2020’s global cap coming, remains to be seen.

Lubricants

Chevrons Taro avoids lube switching for ECAs

Wide ranging approval Winterthur Gas & Diesel has approved Chevron’s Taro cylinder lubricant for use with complete range of allowed sulphur content

hevron Marine Lubricants says it has received a No Objection Letter (NOL) from Winterthur Gas & Diesel (WinGD) for the use of its Taro Special HT 100 cylinder lubrication oil in a number of the manufacturer’s engines when operating on a wide variety of fuels from 0.0% to 3.5% sulphur, including fuels compliant with emissions control area (ECA) regulations with a maximum content of 0.10% sulphur. Using this lubricant removes the need to change cylinder lubricants when operating in and out of ECAs. This NOL follows 2,000 hours of validation testing on-board a Panamax containership fitted with a Wärtsilä 8RT-flex82T engine. Taro Special HT 100 has been specifically formulated for high performance, and demonstrated enhanced performance in distillate fuel applications under laboratory engine conditions. The NOL applies to the use of Taro Special HT 100 in WinGD X, WinGD X-DF, WinGD RT-flex, WinGD RT-flex-DF, Wärtsilä RTA, Wärtsilä RT-flex and Wärtsilä X engines as well as in Sulzer 2-stroke engines, that are operating on bunker fuels with a sulphur content ranging from zero to 3.5% by weight.

Chia Yoo Soon, General Manager of Chevron Marine Lubricants, says: “We are delighted with the results of the testing and to receive this No Objection Letter from Winterthur Gas & Diesel. It is further evidence of how Chevron Marine Lubricants is helping ship owners and operators reliably navigate the ECA requirements of today, and is ready to meet the challenges of tomorrow as shipping moves into a lower sulphur, lower emissions future.”

Shell opens Singapore lubes plant Shell has opened an integrated lubricants and grease production facility in Tuas, Singapore, which it expected to will boost it marine business.

Konrad Räss, General Manager Combustions Systems, WinGD commented: “As a leading developer of marine low-speed gas and diesel engines our target is to set the highest possible industry standards, a philosophy that is echoed throughout our rigorous testing regimes. After 2,000 hours of sea-trials, Taro Special HT 100 has shown that it meets the exacting standards demanded by WinGD and we have no hesitation in providing this No Objection Letter as a result.”

Speaking at the opening on 2 November, Huibert Vigeveno, Shell Global Commercial, Executive Vice President said: “This state-of-the-art, highly automated facility in Singapore was built to support our business ambitions here in the APAC region. It serves as a strategic production hub, and will be the centrepiece of our lubricants supply chain network to reliably supply our world-class lubricants to millions of customers in the region. Asia represents over 40% of the world’s lubricants demand, and is home to half of the world’s largest lubricants markets.

Chevron’s Taro Special HT 100 is one of a range of Taro cylinder lubricants, including the low 25 BN Taro® Special HT LF and its new 140 BN Taro Special HT Ultra.

At 10 hectares, it is Shell’s 3rd largest lubricants plant in the world and 2nd largest in Asia-Pacific, capable of producing up to 430 million litres (equivalent to 390 kilotonnes) of lubricants and greases every year.

“This facility will also further strengthen our marine lubricant business’s presence here in Singapore, the world’s second busiest port.”

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im Kok Kiang, Assistant Managing Director of the Singapore Economic Development Board, commented, “We are heartened by Shell’s commitment to improving productivity through the adoption of innovative technologies, which is aligned with the strategies of the Energy & Chemicals Industry Transformation Map.

Lubricants

With a 50% increase in capacity and sixfold improvement in productivity over its previous plant, the new plant will be yet another great showcase of an Advanced Manufacturing facility that provides Singaporeans with good jobs.”

The new plant will be a production hub for products that will be shipped to more than 40 countries, mainly in the AsiaPacific region. It will produce lubricants including Shell Helix (passenger car motor oil), Shell Rimula (heavy duty engine oil), Shell Tellus (hydraulic oil), Shell Alexia (two-stroke marine engine oil) and Shell Gadus (greases).

Shell’s new Tuas plant

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Southbond Shipping Agency Limited

Our Services...

MFD Business Centre Freeport Zone 5 - Mer Rouge - Port Louis Republic of Mauritius Tel : (+230) 206 3987 Fax : (+230) 206 3990 Email : ops@ssalmru.com www.ssalmru.com

Bunkering co-ordination | Supply of ships stores & provisions Spares clearence & delivery arrangement and trade | Supply boat services Loading / Discharging operations | Crew changes (Immigration formalities and hotel reservation, air ticketing, local transportation meet & greet service at the airport) Dry - dock arrangements | Cash to Master delivery Crew mail / Courier packages delivery | Crew medical attendance Garbage, sludge, bilge disposal arrangement | Fresh water supply Inward / Outward Port & Customs clearance | Shipâ&#x20AC;&#x2122;s Chandling services Ship repairs / spare parts | Stevedores arrangement | Acting as protecting agents Diving support & Underwater hull cleaning Providing Gas free / Hot work certificates issued by Port approved surveyors Providing armed private security | Provide technical support

Mauritius Port Louis’ bunker trade is a key plank in the country’s export sector ©carrotmadman6

Indian Ocean’s rising star

After a three-year flat spell, last year was a bumper one for the Mauritian maritime economy, boosting hopes that the country can become a genuine hub for shipping in the Indian Ocean, reports John Rickards

ccording to the last batch of annual figures, cargo volume through Mauritius was up 6.3% to 7.3m tonnes, with the bulk of the increase coming from liquid bulk and container transshipment traffic. And these came despite stagnant overall vessel call figures. A drop in box ship numbers was made up for by LPG and products traffic as Petredec Mauritius brought its import-export business up to full steam. On the back of this strong uptick in cargo traffic, the island nation’s bunker industry enjoyed a matching increase in business, with a record 336,914 tonnes of fuel delivered. The increase came as the barge fleet operating out of Port Louis increased sharply, and despite only a marginal increase in bunkering calls to 1,799. Over 60% of ships calling at Mauritius take on fuel. However, bunker-only calls fell over 10% and the market’s suppliers must be wary of over-optimism. The Mauritian Ports Authority remains cautious too, warning that improvements in the South African bunker market, previously plagued by intermittent local refinery supply issues, might affect the country’s bunker market across the current year. The MPA wouldn’t be drawn as to whether there was any indication that this had happened at the time of going to press.

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Mauritian cargo and bunker surveyors De Chermont & Partners Ltd remained bullish in conversation with World Bunkering when it spoke to operations manager Capt. Laval Lam, the managing director and other members of the Blanche de Chermont team. “As marine surveyors, we have witnessed a surge in the bunkering sector. This confirms that the number of ships bunkering at Port Louis has been increasing and Mauritius is on the right path in her development into a global bunkering hub,” DCPL said. “Mauritius was once known as the Star and Key of the Indian Ocean due to its strategic geographical position. It was used as a stopover for food and water replenishment on the way to the Far East before the opening of the Suez Canal. The commitment of the government to developing the marine economy and attracting shipping for bunker replenishment is on good track; discounted port tariffs are now offered for bunker operations. Port Louis is rapidly developing into a bunker hub and is regaining its Star and Key status. Ships on the East–West trade routes are now stopping over, mainly for stemming bunkers.” Survey work was vital to establishing the country as a bunker hub,

the company said, and DCPL was looking to expand on the broad range of services it already offers. “The quality of a survey is very important for accurate, reliable and valid results. DCPL, being ISO 9001-certifed, has established procedures to strengthen our business processes, as well as members of our team being regularly trained by recognised overseas maritime institutions to keep up with new technologies and ensure that the end result is always greater customer satisfaction.” DCPL continued: “A business organisation needs to expand both horizontally and vertically in order to face competition and survive. DCPL is no exception. We are exploring new avenues to consolidate our business enterprise and take it to the next level. We intend in the very near future to add new services to our mix by expanding into new avenues.” The Mauritian government is striving to keep the economy growing, however, and with it the country’s maritime sector. The government’s “ocean economy” project had something of a false start last year when a key working session with the World Bank launching a dossier written by Raffaeolo Cevigni was cancelled. However the responsibility for boosting the maritime sector has now shifted to the Ministry of Finance and the Prime Minister’s Office itself.

Mauritius

replacement session with Cevigni’s delegation from the World Bank was scheduled to take place at the time of writing, with the government’s intent being to expand on the ideas in Cevigni’s original report and provide finer details of a plan of action to make the local maritime sector a key pillar of the country’s economy. The Mauritian trade deficit has increased over the past year and the government is keen to see the country either reduce its reliance on imports, or else grow its own export business.

Bunkering is one of the key export sectors, and the rise in ship fuel sales has helped prop up a merchandise export sector in the doldrums over the past few months even though the MPA acknowledges that Mauritian bunker prices remain noticeably higher than in Singapore. As well as trying to boost vessel traffic and the lure of Port Louis as a shipping hub on the main trades, the government has also launched trade missions with other nations across Africa. A little after going to press, a delegation, possibly high enough level to be led by the Prime Minister, is due to travel to the Ivory Coast to discuss closer economic ties with the West Coast.

Mauritius’ Board of Investment said: “Possibilities for strategic alliances, franchising, project financing will also be part of the agenda to promote Mauritius as a service platform for the region.” In the meantime, Enterprise Mauritius is due to hold meetings with operators from Kenya and Uganda in a bid to increase the visibility and availability of Mauritian products in those markets. Kenya in particular is a significant export market for the island nation, and while all three are members of the COMESA bloc, Mauritian business interests are hoping to see stronger partnerships across the region.

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Mauritius Port Louis ©Jørn Eriksson

Southbond bullish about Mauritius’ prospects With Mauritius’ ocean economy at the forefront of the island nation’s thinking, World Bunkering talked to one of the companies at the sharp end for the situation on the ground. Gulshan Jugroo is managing director of Southbond Shipping Agency Ltd, an all-purpose ship agent catering to vessels calling at Port Louis

WB: How good do you think the prospects are for the Mauritian maritime sector? GJ: Mauritius is geographically well positioned to become the most effective maritime port in the region. Massive investments are being carried out in line with the Master Plan of the Mauritius Ports Authority in terms of infrastructures, reclaimed land, high tech equipment, IT and security fields. Moreover, in view of the growing piracy problem in the Indian Ocean, shipping lines are compelled to alter their routes southward, which means closer to Port Louis. At the same time, emerging economies such as India and China, which are continuously looking to acquire oil assets on the African continent, can use Port Louis harbour as the bridge between Africa and Asia. WB: And for SSAL in particular? GJ: Several incentives regarding port charges associated with bunkering dues have been introduced by the Mauritius Ports Authority. As such, SSAL has experienced an increase in agency nomination from new clients over the past 2 years and is expecting more calls apart from our regular fishing vessels for bunkering. More calls will certainly generate more activities for our agency operations. Our shipchandling department has also enjoyed an increased level of activity. World Bunkering winter 2017/18

Being a one-stop shop agency, we have taken the opportunity of bunker calls to market our ship supply divisions. With increased vessel calls to Port Louis, SSAL will surely benefit in terms of the supply of provisions, bonded stores, electrical and mechanical/heavy duty equipment and accessories etc., as well as disposal of sludge oil and waste in a green environment. Having partnered with major private maritime security companies, SSAL has also seen an increase of vessels calling for security change in Mauritius, taking advantage of lower calling costs to carry out security team swaps here. Further, we have also started seeing owners requesting quotes for bunkers directly via agents. There seems to be a shift from some owners from bunker traders to doing direct deals via their local agent with physical suppliers in Port Louis to benefit from lower prices and they are ready to pay on delivery. To a lesser extent, our travel department will have the opportunity to sell tickets at seaman’s fare tariffs, accommodation and logistics services at competitive prices. All these services are being catered for by our experienced and dedicated staff. WB: Have Indian Ocean operators been receptive in your experience to the idea of boosting the region’s hub capabilities?

GJ: Locally, SSAL is an active member of the Mauritius Chamber of Commerce and Industry, and meetings are organised when the Indian Ocean operators are around. We have close ties with Reunion, Malagasy Republic, African, Seychelles, European and South East Asian operators - bearing in mind the chance to expand or to seize new business opportunities. WB: What would you say the outlook for the coming year is, both for SSAL and the local market as a whole? GJ: As agents, our product is service. In the current market, vessel owners, as well as competitive rates, seek a high level of service. SSAL being a one-stop shop is proving to be an answer to vessel owners whereby they are enjoying agency services, along with provision supply, maritime security & travel agency service. The future looks promising for SSAL in a stable, of course competitive, but efficient environment in Mauritius.

Southbond’s Managing Director, Gulshan Jugroo

LNG

Shell will supply LNG for Carnival newbuidlings

Making progress

LNG is starting to make small inroads into the marine fuel market, with Gothenburg now offering LNG bunkering and Shell securing a contract to fuel Carnival’s LNG-powered cruiseship newbuildings in North America

iquefied natural gas (LNG) has arrived at Gothenburg and is set to stay. At least that is the strong message from the Swedish port. The first bunkering of a ship with LNG while it was loading took place in late October, less than a month after the first ship-to-ship LNG fuelling alongside the quay. These two stems and five at anchorage that took place in the intervening weeks were carried out by the newbuilding bunker barge Coralius. The LNG was supplied by Skangas. The port said: “Bunkering of LNG has in the last few weeks alone become a regular part of operations at the Port of Gothenburg, and thanks to the application of carefully planned instructions and routines it has gathered momentum.” “Even five to ten years ago the idea of ships running on liquefied natural gas would have almost been regarded as science fiction. Now we have had seven LNG bunkerings here in less than a month. It would be no exaggeration to describe this as a major breakthrough,” said Dan-Erik Andersson, Gothenburg Port Authority Operations Manager at the Energy Port. The port pointed out that the EU Alternative Fuels Infrastructure Directive states that it should be possible to bunker LNG at Sweden’s ‘core ports’ of Luleå, Gothenburg, Stockholm, Copenhagen/ Malmö and Trelleborg before 2025. It added: “The Port of Gothenburg has already realised this ambition in full, and is the only port to do so.”

According to Dan-Erik Andersson, this was due to a number of key factors including effective collaboration between various companies and organisations. He said: “This development has been driven from different directions. We have shipping companies and energy producers that have had the foresight to invest responsibly in the long term, as well as public agencies that have been compliant with regard to the regulatory framework. The Sulphur Directive introduced in 2015 has spurred us on, and at the Gothenburg Port Authority we have offered incentives in the form of fuel transition discounts and other financial inducements.” Further LNG bunkering options at Gothenburg are on the horizon. Next year Swedegas will build a landside pipeline for LNG at the Energy Port. This is intended to be the first stage of a larger facility that will supply both the transport sector and Swedish industry with LNG. Meanwhile Carnival Corporation’s Carnival Cruise Line has signed an agreement with Shell NA LNG to supply the LNG for what are expected to be North America’s first fully LNG-powered cruise ships. Under this framework agreement, Shell will supply Carnival Cruise Line with fuel for its two new 180,000 gt, 5,200 passenger LNG-powered ships that are expected to launch in 2020 and 2022 and to be homeported in North America.

As part of the agreement, the two ships, built with a next-generation “green cruising” ship design, will be fuelled through Shell’s LNG Bunker Barge (LBB) – a project announced in November as part of Shell’s strategic plan to develop a global LNG bunkering network. The ocean-going LBB, which is designed to support growing cruise line demand for LNG as a marine fuel, will allow these ships to refuel with LNG at ports along the southern US East Coast. “This agreement is a significant stepping stone in our relationship with Carnival Corporation building upon our previous LNG marine fuel supply agreements in Europe,” said Tahir Faruqui, president, Shell NA LNG, LLC. “It also marks a milestone as we continue to establish the marine LNG fuel market in the U.S. as a credible part of the global marine fuel mix.”

LNG Bunkering at Port of Gothenburg

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Innovation Viking Princess has been fitted with a hybrid energy system. Pic Wartsila

First hybrid system for offshore vessel Hybrid energy storage system reduces need for generators and promises fuel savings and emissions reduction

he technology group Wärtsilä says it reached a new milestone in battery technology development when the company recently completed the installation of a hybrid energy system on board the Viking Princess. The Norwegian vessel is now the first ever offshore supply vessel in which batteries reduce the number of generators aboard the ship. The new energy storage solution will improve engine efficiency, generate fuel savings and reduce greenhouse gas emissions. The vessel completed sea trials and the system was handed over to customer Eidesvik Offshore on 9 October.

The Viking Princess now runs on a combination of a battery pack for energy storage and three LNG-fuelled Wärtsilä engines. The new energy storage solution provides balancing energy to cover the demand peaks, resulting in a more stable load on the engines. The technology is similar to that used in hybrid vehicles: it prevents the engine load from dipping, and uses the surplus to re-energise the battery, which can be charged as needed. Wärtsilä’s remote monitoring and operational advisory services support the daily operation of the vessel ensuring efficient and optimised operation.

According to Wärtsilä there is significant potential to save fuel through improved engine efficiency, as the operating profile of supply vessels is highly variable. When using the Wärtsilä installed energy storage system, the fuel saving potential can be up to 30%, and the CO2 emissions can be reduced by up to 18% a year, both depending on operational conditions and requirements.

“Eidesvik and Wärtsilä’s partnership dates back to 2003 when our ship, the ‘Viking Energy’ became the first offshore supply vessel powered by LNG fuel. Now, together, we are again introducing a world’s first, with the Viking Princess becoming the first offshore vessel in which batteries reduce the number of generators aboard the ship. We are grateful to Wärtsilä for providing t he technology to make this possible,” says Vermund Hjelland, President Technical Department, Eidesvik Offshore.

It also claimed that the hybrid solution will provide a more optimal load on the engines and so intervals between engine maintenance can be extended.

World Bunkering winter 2017/18

DNV GL’s app benchmarks fuel efficiency Classification society DNV GL has launched a new ‘virtual trial’ application that allows yards and owners to use computational fluid dynamics (CFD) simulation to analyse, compare and benchmark the fuel efficiency of hull design variants at full-scale. The results are available within one week, in a webbased report where users can see the CFD results and hull lines in 3D and gain more insight into flow details. As CFD simulation technology has matured it has become a viable alternative to traditional model basin tests, while reducing lead time and costs. However, the computer resources and expert knowhow to design and carry out such tests are still not widespread. “What we have done with Virtual Trial is to let our customers run CFD simulations, without having to invest in CFD expertise,” says Carsten Hahn, Product Manager at DNV GL – Maritime. “Virtual trials can be launched in complete anonymity, from anywhere, at any time, by simply uploading the hull geometry file and defining the operating profile.”

INNOVATION

he virtual trial application, removes the need for expert support by streamlining and automating the CFD simulation process. Without the need for any CFD specific input, users can conduct fully automated full-scale RANSE (Reynolds-averaged NavierStokes equations) VoF (Volume of Fluid) CFD simulations on the resistance and propulsion of their vessel. Users can upload individual vessel hull forms, run simulations with pre-set parameters and then easily compare their results against the results of similar vessels in the Virtual Trial database. Whether for a newbuilding or retrofit project, Virtual Trial reduces the barriers to full-scale CFD simulation testing and comparative benchmarking. “We see many potential uses of the virtual trial application,” says Uwe Hollenbach, DNV GL - Maritime. “Design offices and ship yards can analyse and benchmark different hull options during the conceptual design phase, then track how design changes affect a vessel’s hydrodynamic performance. Ship owners can easily compare competing design proposals during the bidding process, gaining an impartial assessment of the designs at a fraction of the cost and lead time of model tests. For vessels in service, it could even act as a performance certificate, showing potential charterers or buyers how a vessel might perform within their operating profile.” Shell and Singapore MPA’s research MOU The Maritime and Port Authority of Singapore (MPA) and Shell Eastern Trading (PTE) LTD (Shell) have signed a Memorandum of Understanding (MOU), to cooperate in the research and development and test-bedding of projects within the maritime industry in areas of clean fuel technologies, automation and digitalisation.

c) Support study and development of digitalisation efforts, including electronic data exchanges among various stakeholders, to enhance safety, efficiency and security of maritime communication. The MOU was signed by Nick Potter, General Manager, Asia Pacific-Middle East, Shipping & Maritime and Andrew Tan, Chief Executive of MPA at the Singapore Maritime Institute (SMI) Forum 2017, an annual event held to foster closer collaboration between industry, research institutions and solution providers. Witnessing the signing ceremony was Senior Minister of State for Transport and Health, Dr Lam Pin Min. “Singapore will continue to invest in future capabilities to build up a strong maritime cluster to generate good employment opportunities and stay ahead of the competition. We are pleased to work with industry partners like Shell to drive the digital transformation of the maritime industry in Singapore in the areas of electronic data interchange, automation, intelligent systems and cleaner energy,” said Tan. WinGD develops its data collection and monitoring platform Winterthur Gas & Diesel (WinGD) says it has “added a further building block in its strategy to lead the engine industry in accessing the full benefits of digitalisation for the operation and management of its low-speed diesel and dual-fuel engines”.

In mid-2017, WinGD signed an agreement with Poland-based marine automation, navigation and communication specialist Enamor, formalising an existing collaboration covering the development of sophisticated data collection and monitoring (DCM) platform for engines and associated onboard systems. The collaboration has led to the first version of the new DCM hardware with monitoring software being ready for commercial applications. Among its features, the platform is closely tailored to operating with WinGD’s engine and ship-specific software, including the advanced diagnostic software WinGD is developing with Propulsion Analytics of Greece, as announced in 2017. “The collaboration with Enamor is the next step in our plan to lead innovation in the field of shipping digitalisation,” said Dominik Schneiter, Vice President of Research & Development at WinGD. “The DCM platform will provide engine owners and operators with an advanced tool aboard ships that collects, stores, visualises and post-processes all engine data, as well as relevant ship information and other machinery data. This comprehensive fund of data will be the foundation of our digital solution portfolio, enabling value-adding analyses and remote support. It is the starting point of a game-changing product that will provide optimum customer value.”

Under the MOU, MPA in partnership with Shell will collaborate on the following key areas: a) Developing innovative solutions to reduce emissions in the port b) Explore greater use of automation in the port

World Bunkering winter 2017/18

Turning to gas

Preparation for an LNG-heavy future continues apace across northern Europe as infrastructure, bunkering capacity and financial support builds across the region. Meanwhile, investigations are ongoing into a possible bunker cartel, John Rickards reports

his summer saw the German government introduce a financing programme to subsidise conversion of existing ships to dual-fuel and the fitting of LNG propulsion to newbuilds, something the German Shipowners’ Association (VDR) has long been pushing for. Speaking to World Bunkering, the VDR said it welcomed the stimulus package. CEO Ralf Nagel said: “Since retrofitting or building ships to run on LNG is a complex and expensive endeavour, the stimulus programme will help German shipowners cope with the substantial capital costs associated with gas-operated ships – while delivering major environmental benefits.” Asked whether the programme did enough to support owners looking to adopt LNG, the VDR said: “The stimulus package has the right amount to enable shipowners to invest in LNG technology. We are confident that the increased demand for LNG will lead to a better LNG infrastructure.” The move is a timely one, with this autumn seeing what’s supposedly the world’s first LNG box ship conversion taking on its first cargo - and first LNG loading by truck from Nauticor - in Bremerhaven. The conversion of the 1,036 TEU Wes Amelie was sponsored by Germany’s Ministry of Transport, with the new engine plant supplied by MAN.

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The Wessels Reederei-owned ship has 15 sister vessels, on which more conversions to LNG are reportedly planned. All parties have been keen to promote the work as an example for the wider shipping industry. Dr Uwe Lauber, CEO of MAN Diesel & Turbo, said at the time of the Wes Amelie’s handover: “There are roughly 40,000 cargo vessels in operation worldwide. If we are serious about decarbonisation and want the shipping industry to be climate neutral by 2050, we need to take action today.” “In [completing this conversion], we trust that the dramatic reduction in emissions will mark the beginning of a trend towards the adoption of LNG as an environmentally friendly fuel within the maritime sector.” The German government has at least opted to follow its own initiative to some extent, with the Federal Maritime and Hydrographic Agency (BSH) research vessel Atair, now under construction at Fassmer shipyard and due to enter service in 2020, to use a dual-fuel engine and selective catalytic reduction technology from Wärtsilä. The ship, a replacement for its 30-year-old namesake, will be the first in the German research fleet to run on LNG bunkers.

Kai Twest, head of the Ships and Equipment Division at BSH, said: “With Wärtsilä’s dual-fuel and SCR technologies, the vessel will fulfil the IMO’s Tier III regulations in all operational conditions, whether sailing on LNG or on diesel fuel.” It’s not only LNG that has a role to play in German’s future fuel sector, however. Shell has announced that ahead of the 2020 sulphur cap, it is looking at upgrading residue processing facilities at its Rheinland Refinery in Wesseling to allow for desulphurisation and increase the volume of light products produced there. The proposals would be part of a wider string of measures to see the refinery maintain operations in what the oil major referred to as “a radically changing energy market” increasingly focused on sustainability. The upgrades are still very much in the planning stages, with the refinery’s head of technology Dr Jörg Dehmel explaining that the company wanted to seek the opinions from other factors in the industry before forming a detailed plan and seeking regulatory approval for the development. The refinery is Germany’s largest and produces 2.4m tonnes of fuel oil annually. Essen-based innogy has, meanwhile, launched Germany’s first methanolpowered ship, a small passenger vessel operating on Lake Baldeney.

NORTHERN Europe

Rotterdam is at the forefront of the drive for alternative fuels © Floris Oosterveld

NORTHERN Europe

he methanol used in the ship’s fuel cells is generated renewably at the lake’s hydroelectric plant from atmospheric CO2 and water. “With MS innogy we are enabling people to experience the energy revolution directly. We obtain high-tech research from the lab and show in a very practical way what a clean energy future without oil could look like, and that includes quiet, clean propulsion systems that conserve our climate,” said Peter Terium, CEO of innogy. “In many areas of logistics, such as in the case of ships, trucks and aircraft, it will take a relatively long time until they can also be operated on a purely electric basis. In this case, the ‘green fuel’ solution presented by innogy could be an interim solution to reduce climate-damaging emissions in the transport sector quickly and efficiently.” Interest in methanol propulsion has so far largely been confined to powering tankers carrying industrially-produced methanol, and infrastructural availability is even tighter than for LNG, but it remains a fuel with recognised potential. If the type of fuel cell technology used by innogy is scalable and suitable to larger applications, it may offer an additional approach to using methanol as regular liquid fuel. The centre of northern European LNG bunkering at present is, of course, Rotterdam. The Dutch hub has continued to see further growth in its LNG capabilities as the market blossoms. Gas4Sea, a three-way collaboration between ENGIE, Mitsubishi and NYK, is to use its Zeebrugge-based ENGIE Zeebrugge to supply Statoil’s four dualfuel shuttle tankers due to come into service in 2020. Shell, which already has two LNG bunker tankers operating out of Rotterdam, loading gas from the Gate terminal, has reportedly earmarked the LNG/LPG carrier Coral Methane to become its third bunkering-capable vessel serving the market, with another two either planned or on the way. Shell Energy VP Steve Hill said:

“LNG as a marine fuel has an important role to play in the future energy mix. With these bunker vessels, as well as the Gate terminal, Shell is demonstrating its commitment to building a robust and reliable supply chain to meet customer needs. With tougher emissions regulations on the horizon, we will continue to work closely with our customers and partners on cleaner energy solutions.” Gate terminal, run as a joint venture between Gasunie and Vopak, added a third berth for LNG vessels in 2016, including bunkering ships. The Port of Rotterdam itself joined the IMO’s Global Industry Alliance (part of its snappilynamed Global Maritime Energy Efficiency Partnerships project) this year. While the GIA - and GMEEP - covers supporting countries in reducing most shipping emissions, a major part of its strategy is the use of alternative fuels. Shell itself is already a member of the alliance. The Port of Rotterdam overall has been pushing its commitment to sustainability and alternative fuels with the aim of improving the port environment and reducing carbon emissions. In late summer it launched its “building a sustainable port” campaign to highlight measures made to improve biological habitat and design for a greener port environment.

At the same time, the port authority announced it had signed a declaration of intent to look into building a new multi-fuel bunkering station for refuelling with LNG and other cleaner fuels on Krabbegors/Duivelseiland at Dordrecht Inland Seaport. The agreement with PitPoint.LNG will look into the feasibility of building such a facility on the Duivelseiland as well as consulting with potential customers regarding the level of demand for it. Port of Rotterdam COO Ronald Paul said: “As operator of Europe’s largest port, the Port Authority sees the establishment of a multi-fuel bunkering station as fitting in with its policy of pioneering European energy transition. It will help us stimulate the replacement of fuel oil by LNG as the fuel for shipping.” In a statement, the port authority added: “Whether we are talking about hydrogen, electric power, bio-diesel or LNG/CNG, the central theme of the investigation is that all fuels at the multi-fuel bunkering station must produce less polluting emissions than traditional fuels. This applies to ships and lorries as well as passenger vehicles. The aim is to work together in a cleaner climate and living environment.”

World Bunkering winter 2017/18

“Over the past few years, the port authority has drawn up a number of proposals in consultation with other ports for changes to existing port legislation. This is an extremely complicated undertaking, since this is the first time vessels in this region will be using LNG as a transport fuel – meaning that all local harbour regulations need to be adapted. Rotterdam has already done this, but a lot of ports still have to follow suit. As far as possible, Rotterdam will try to advance together with other ports in the introduction of LNG, since this is clearly a project that relies on widespread collaboration and support.

“In 2016 the sea-going vessel Ternsund was the first ship to bunker LNG in Rotterdam. This took place at the City Terminal, a former EECT container terminal that will be renovated over the next few years. This temporary bunkering facility has since also started serving Wes Amelie, a Unifeeder container vessel. Shell intends to take a dedicated inland bunker vessel for LNG into service in 2019. This will make it a lot easier to bunker liquefied natural gas while out on the water. “Rotterdam also works to encourage the adoption of LNG as a transport fuel via incentives. Ships that bunker LNG can apply for a discount on fees and charges that can run up to around 20% of the total port dues. Savings can amount to thousands of euros per call.” Rotterdam’s present is still very much based on oil and coal, but its future would certainly appear to be in gas. Not all is necessarily entirely well in the ARA (Amsterdam-Rotterdam-Antwerp) region, however, with the Dutch Authority for Consumers and Markets

(ACM) launching an investigation over the summer into a possible bunker cartel operating across the three ports. According to the ACM, several unnamed companies may have made illegal price-fixing agreements. Police information led to the Dutch Public Prosecution Service providing the ACM with a tip-off that led, the authority said, to dawn raids on the bunker companies involved. If charged with breaching the Dutch Competition Act and found guilty, the maximum fine for cartel activities imposed on companies is 40% of their combined global turnover, while the maximum fine on individuals that have exercised leadership over cartels is €900,000. World Bunkering reached out to the ACM to find out the current status of the investigation, which the authority had said was likely to take months, but it was unavailable for comment by the time of writing.

Fast, Transparent and Reliable Surveyor Service in All Dutch, Belgian and German Ports EUROCHECK MARINE B.V. | Tel: +31 180 465 395 (24 hrs) Email : office@eurocheckmarine.com | Website: www. eurocheckmarine.com

World Bunkering winter 2017/18

NORTHERN Europe

orld Bunkering asked Rotterdam’s port authority just how seriously it took the push towards a future based on alternative fuels and greater sustainability. “[Guiding the transition from fuel oil to LNG for bunkering] is in line with Rotterdam’s ambition to become the most sustainable port in its class,” the authority said. “Rotterdam intends to become as important as an LNG hub as it is for oil products.

Russia

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Busy Russian scene Focus on LNG increases as 2020 approaches, Olga Bogacheva reports

otchya Marine Engineering has produced a design concept for an LNG bunker tanker. The 3,000 cu m type 2G gas carrier is also gas fuelled. The concept ship has Ice Class 3 and would and could load at up to 400 cu m/hour. Hotchya Marine Engineering delivers consultancy, design, construction and management services for all types of vessels, including ships designed for oil and gas industry service in the Arctic. The company has offices in Moscow, St. Petersburg, Severodvinsk and Taganrog. NOVATEK joins SGMF and SEA\LNG Novatek Gas and Power, a subsidiary of NOVATEK, the largest Russian independent producer of natural gas, has joined the Society for Gas as a Marine Fuel (SGMF) and SEA\LNG, the multi-sector industry coalition working to facilitate and accelerate the widespread adoption of liquefied natural gas as a marine fuel. Both associations are focused on promotion of LNG as a marine fuel. In a statement, NOVATEK’s chairman, Leonid Mikhelson said: “International environmental regulations are stimulating the transition of the world fleet to clean fuels. We are confident that an increasing number of shipowners will opt for LNG to meet the new requirements. We are ready to contribute to the development of the LNG-bunker market and the establishment of an appropriate infrastructure.”

NOVATEK was established in 1994. The company is engaged in the exploration, extraction, processing and distribution of gas and liquid hydrocarbons. The company’s deposits and licensed sites are located in the Yamal-Nenets Autonomous District, the world’s largest natural gas production region, which accounts for about 80% of Russia’s gas production and about 16% of the world’s gas production. Gazprom Neft expands Gazpromneft Lubricants, Gazprom Neft’s lube oil business, has resumed regular supplies in Ust-Luga port in the autumn of 2017. Engine oil is supplied both in bulk and in barrels, at the anchorage or alongside. Bulk deliveries are carried out by Gazpromneft- South’s bunker tanker. Gazpromneft-Lubricants has sold 7,400 tonnes of engine oil during the first six months of 2017, a 7.5% increase over the same period of 2016. The geographical supply range has been expanded to additional Russian and foreign ports in the Caspian Sea. According to the company, Taro 30 DP 40 and Delo 1000 Marine 40 were the lubricants most in demand. It also said that there was increasing demand for lubricants suitable for use with lowsulphur fuel with sales increasing ninefold in the first half of the year to 140 tonnes.

Vysotsk expands with LNG terminal Russian prime-minister Dmitry Medvedev has signed an order extending Vysotsk port, in Leningrad Oblast near the Finnish border, to include a site for the Primorsk LNG terminal which is now under construction. The terminal is being financed by Gazprom and is expected to have an annual throughput up to 2 million tonnes. Primorsk terminal is the starting point for gas supplies to Germany through the Nord Stream underwater pipeline. The construction work includes a new port, approach channel, anchorage, LNG loading berth, berth for port service vessels, a causeway linking berths to the shore and the laying of connecting pipelines and utilities. The construction is scheduled to be completed in 2018. Rosneft and Lamor in oil spill response equipment JV Rosneft subsidiary 82 Shipyard Plant (82 FSA) and the Finland-based Lamor Corporation have formed a joint venture (JV) for the production of oil spill response equipment at the Russian shipyard’s site at Murmansk. Lamor has been active in Russia for 18 years and has two offices, one in western Russia, in St. Petersburg, and the other in the east at Sakhalin. Rosneft fuels Murmansk’s dredgers Rosneft subsidiary PH-Bunker has supplied fuel to the world’s largest trailing suction hopper dredgers, the Bartolomeu Dias and James Cook, as well as to two support vessels. World Bunkering winter 2017/18

Russia

he bunker tanker PH Magellan tanker performed these operations. The total volume delivered exceeded 2,600 tonnes. Olga Bunker invests at Vladivostok free port Olga Bunker is investing in the construction of a multi-modal complex on the site of an existing port in the Olginskiy district of the Primorsky region in Russia’s Far East. The terminal has already been modernised with modern cargo handling equipment. The new work will allow for the handling of larger vessels. The company’s plans include repairing and strengthening the existing pier and the construction of a 700 square metre refrigeration plant for storing fish. Competition in Russian ports The Federal Antimonopoly Service (FAS) has prepared a draft survey on the state of competition at the seaports in Russia for 2015-2017, the Kommersant Daily reports. The survey concludes that competition is limited on the black metal export market, minimal on the grain market and average on the oil export market. In some segments there is no competition at all. In the course of the FAS analysis the type of cargoes was taken into account.

Industry sources say the yard is in a strong position to secure the contracts because of its geographical location and relevant experience and because it is offering a competitive price. Construction should start next year and be finished by 2020. One third of the necessary finance will come from the government and the rest from Gazprombank and the port will be operated on a public-private partnership basis. The establishment of the Ust-Luga-Baltiysk ferry service is a part of a policy aimed at shifting the traffic, currently transported to the enclave by rail through Lithuania and Belarus, to the sea route. The vessels will take about three days to complete a round trip and will need to refuel every third trip. Meanwhile a new container line, Baltic Express, connecting Bronka terminal at St. Petersburg port and Kaliningrad port is being launched. According to Kommersant Daily, monthly cargo volumes are expected to be at least 2,500 TEU. Shipping cargo from Kaliningrad to the Bronka terminal will take three days and be 30% cheaper than using trucks.

Throughput at Russian ports increases In the first six months of 2017 throughput at Russian ports increased by 11.3% compared with the same period of 2016, amounting to 384 million tonnes, of which dry cargo accounted for 174 million tonnes, up 10.8% while liquid bulk cargo figures were up 11.8%, to 210 million tonnes. The increase in dry cargo is due to an increase in coal exports, up by 16.5%, containers, up by 14%, grain, up by 32.1%, and fertilizers, up by 4.8%. At the same time, however, ore exports decreased as did non-ferrous metals and refrigerated goods. Gazprom Neft produces new 0.1% sulphur fuel Gazprom Neft’s Omsk refinery has produced its first batch of an ECA compliant 0.10% sulphur, 80 cSt bunker fuel, according to Gazpromneft Marine Bunker. The refinery plans to produce up to 50,000 tons of this product. The technology for producing low sulphur marine fuel from hydro-processed gas oil using catalytic cracking was developed by the Omsk refinery last year.

The agency also considered the sources of investment in the construction of infrastructure projects. An FAS source noted that there are terminals built at state expenses that are leased for 1-2% of the revenue. At the same time, there are other terminals, as at Taman, Ust-Luga and in the Russian Far East, where private funds were invested. That meant, the source said, that competition was “in no way equal”. LNG ferries for Baltic route Options are under consideration for bunkering three LNG-fuelled ferries being built to connect Kaliningrad with Ust-Luga. The new ferries are expected to cost more than US$200 million and to be built in Leningrad Oblast at the privately owned Nevsky Shipyard.

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Gazpromneft Marine Bunker

Gazpromneft Marine Bunker: Providing expertise for an easier 2020 transition

he “fuel revolution” for the bunker market is getting closer: the moment for the new set of restrictions on sulfur limits for bunker fuels to come into force is less than two and a half years away. Starting on the 1st of January 2020 the global (excluding the ECA zones) sulfur cap would be fixed at 0.5% and would have a significant impact on the market and its participants’ activity. In this regard those who will be affected by the new rules pay increasing attention to the matter. Not surprisingly the questions regarding future bunker market changes and fuels assortment perspective were among the key topics for discussion at the X Russian Forum “Current State and prospects for Development of Russian Bunker Services Market” which is the main discussion site where professionals communicate about significant problems of the bunker industry and search for decisions and solutions. Gazpromneft Marine Bunker, one of the leading bunkering operators in Russia and the Forum’s General partner, launched its three-year bunker market research in 2014. The main reason for the research is development of possible scenarios and strategic business decisions for members of the industry that are necessary within the market rapidly changing under the influence of new sulfur-related restrictions.

The main feature of the Gazpromneft Marine Bunker’s research activity while gathering new information and possible scenarios testing is its system approach to analyzing both current and future situation from supplier’s and customer’s perspectives. Emission standards for maritime industry are a subject of regulation by the International Convention for the Prevention of Pollution from Ships (MARPOL). It covers the content of sulfur and nitrogen compounds (SOx and NOx) in bunker fuels as well as determines special territories (emission control areas or ECA) with the tightest regulations for maritime vessels’ emissions. Current ECAs cover the Baltic Sea and the North Sea as well as the Caribbean Sea and 200-mile coastal areas of US and Canada. MARPOL restrictions tend to tighten as time flows: sulfur content was restricted to 1.0 per cent in ECAs and to 4.5 per cent in the rest of the world’s marine areas in 2010, and in 2015 the sulfur emission limit within ECAs was lowered to 0.1 per cent. Further development of restrictions include an implementation of 0.5 per cent SOx limit for worldwide water areas (excluding those covered by ECAs) in 2020. Maritime industry has been admitting the necessity of decisions regulating the negative impact that emissions inflict on the environment for a long time. Maritime

vessels produce significant amounts of harmful emissions among which sulfur dioxide (SO2), carbon dioxide (CO2), carbon monoxide (CO), nitrogen oxide (NOx) and black carbon are considered most dangerous. As per different sources, nearly 9 per cent of all sulfur emissions made by transport worldwide are coming from maritime vessels. That is a result of them consuming fuels with high sulfur content. Data provided by various researches indicate that maritime emissions cause health problems for humans that interact with them. Sulfur is a source of a variety of coarse particular matter that cause respiratory and lung disorders that shorten expectancy and quality of life. Nearly 60 thousand premature deaths are considered connected with the impact of maritime emissions, mainly in the coastal areas of Europe and SouthEastern Asia. The goal that is being pursued by the International Maritime Organization with implementations of new ecological restrictions is justified. Reducing negative environmental effects together with improving the industry’s image is a complex problem that, if solved effectively, should greatly benefit the maritime industry. Nevertheless there is no doubt that from the business standpoint the IMO initiatives create certain challenge for the participants of the market.

World Bunkering winter 2017/18

he first wave of restrictions, in 2010, did not produce serious turmoil within the industry. Both the suppliers and the customers managed to adjust their operational activity towards usage of 1.0%-sulfur mazut. This kind of fuel was widely available at the time and was in demand. However in 2015 the situation changed: the new set of restrictions regarding sulfur content used by the vessels that operate in ECAs, made the usage of 1.0% mazut impossible.

Suppliers do have uncertainties of their own: choice of the fuel’s formula, the refineries’ ability to produce necessary volumes of this kind of fuel and, of course, price conjuncture. The right choice of fuel strategy is the main challenge for bunker fuel suppliers right now. Solving this problem Gazpromneft Marine Bunker have been using the data provided by major international analytic agencies, own research among customers and internal forecasting expertise.

Lack of analytical information and detailed forecasts for the future became the cause for uncertainty at the market. Problems of choice of possible options together with calculations of risks, future fuels availability and necessary investments and their possible payback emerged as well. In general, three options have been considered as possibilities for operation within ECAs: consumption of common MGO fuels, installation of scrubbers for emissions’ purification from harmful instances and finally usage of new ultralow sulfur fuel oils (ULSFO). Fueling the vessels with liquefied natural gas (LNG) is set as the remote perspective by the industry’s representatives.

That provided for production of the forecast for development of demand for fuel at the Russia’s bunker market, Russia’s bunker market has lost its former attractiveness compared to foreign ports due to current oil prices trend and reduction of export duty. If present macro-economic situation and oil quotations continue, the experts do not expect rapid recovery of the market. As for future changes of the structure of demand for bunker fuel in Russia, they are expected to stay within main tendencies within the international bunker market.

In the situation present the ship-owners’ interest in the new eco-fuel, though quite moderate, was understandable. As per 2016, the ULSFO’s share in the Baltic region bunker market reached nearly 17%. It could be higher if not for subjective circumstances that were triggered by the crude oil prices decrease. Economic efficiency of using the ULSFO compared of this of MGO became less impressive. Together with the factor of peculiarities of the new fuel’s operation it led to limiting ship-owner’s options and slowed the popularity of ULSFO. The research conducted by Gazpromneft Marine Bunker showed gradual change of customers’ attitude towards ULSFO. In 2017 the new fuel is already being perceived as a potentially attractive alternative to the common types of bunker fuels. Nonetheless questions still exist. Ship-owners have concerns about the price, availability and options within the variety of technical features of using these new fuels. World Bunkering winter 2017/18

• in 2020 the sufficient share of demand that is currently covered by heavy fuel oils will be taken over by new hybrid fuels with 0.5% sulfur content. It would come cheaper than MGO and ULSFO and therefore will be an attractive option for ship-owners with the potential of reaching up to 60% of total demand for fuels;

Gazpromneft Marin Bunker’s analysts expect the bunker market demand structure to change constantly. For instance, reduction of heavy fuels’ quotations and corresponding increase of the differential with MGO prices could stimulate the attractiveness of scrubbers. That would lead to return of demand for heavy fuel oils – and their share can reach 26% by 2025. Within the constantly changing conditions Gazpromneft Marine Bunker sees providing of quality fuels as its main goal. Doing that the company fully understands the ship-owners’ needs and focuses on them. Gazpromneft Marine Bunker has been following this approach during the whole era of MARPOL regulations – providing complex expertise for clients and helping them to make the right decisions. The in-depth market research, resource base and fuels range expanding aim for providing customers with every fuel needed depending on the scenario that have been chosen by them. Knowledge and experience that have been accumulated during the research as well as information and data exchange between the market participants would assist the industry in preparing itself for future challenges of 2020 and maximize the effect of activities of every company.

• ULSFO should be consumed more actively in the ECAs, and restrictions on the use of heavy fuel oils can stimulate a moderate increase of demand for ultra-low sulfur fuels; • some customers would switch from HFO to MGO; • heavy fuel oils are not expected to completely disappear from the market: they would be consumed by scrubberequipped vessels. HFO’s share in the structure of demand will, as expected, be set at around 11%; • gradual development of LNG sector of the market is expected from 2020.

Gazpromneft Marine Bunker

testing

Ensuring accuracy VPSâ&#x20AC;&#x2122;s Laboratory Manager, Fujairah, UAE, Dr Sunil Kumar describes the measures the international bunkers testing company takes to achieve accurate results

or over a decade, both regional ECA and global sulphur limits within marine fuels have reduced significantly. As a consequence, it has become increasingly important for laboratories to continue to produce precise and accurate test results. The question is what measures are taken by testing laboratories to produce accurate, robust results with 95% confidence level?

2. Evaluation of the calibration curve is done periodically with traceable certified standards to monitor if any potential drifting of the calibration curve has taken place over this period of time. This ensures that the 95% confidence has always been maintained. 3. Quality Control (SQC) samples of varying concentration ranges are tested on a daily basis and evaluated statistically to ensure that the results produced are within the 95% confidence level.

In order to achieve a 95% confidence level, laboratories should have stringent quality procedures within a globally recognised accredited quality management system, i.e. ISO/IEC17025, which control the day to day process but at the same time monitor and trend the results and data produced. Each process involves an uncertainty of measurement and how laboratories consider these uncertainties for their evaluation. An effective Quality Control and Management system does not mean simply running a quality control sample but involves numerous processes and evaluations to achieve precise and accurate test results with 95% certainty. The statistical approach of evaluating the results of an unknown sample, quality control sample, certified reference standard, or a standard reference material may be different. A very clear understanding is required when we consider all these aspects and any testing laboratory accredited to ISO/IEC 17025 is forced to follow a high quality system to achieve the target of producing results with 95% confidence level.

4. Method validation is performed to ensure the repeatability, reproducibility, measurement of uncertainty, accuracy, detection limit, reporting limit and linearity achieved by the Laboratory are equal or better than the International standard methods in use. VPS laboratories follow six stringent quality procedures to produce 95% confident test results: 1. The highest quality, certified, traceable standards available are used for the calibration within the same matrix as the sample (NIST and NIST traceable standards). Examples of two calibration curves, low level sulphur (diesel fuel matrix) and high level sulphur (fuel oil matrix) are given below, with excellent correlation obtained.

5. Results produced by VPS laboratories are evaluated by external bodies, globally by participating in major International correlation programs. Examples of VPS global correlation results are given (Figure 3 & 4) for both fuel oil and diesel oil. The results are within the 95% confidence level with no systematic error observed. 6. VPS implements a retest criteria in order to ensure the reported results are within 95% confidence level.

The basic criteria in a quality control process is to obtain an accurate calibration curve and from there the whole process starts. If the uncertainty involved in the calibration is wide then it affects the accuracy of the quality control process. VPS has carried out extensive research to establish the basic criteria to be considered by laboratories to obtain a calibration curve with a satisfactory correlation coefficient (Figure 1 & 2) which satisfies the requirement to produce results with 95% confidence.

World Bunkering winter 2017/18

The basic question is what are the various criteria a Laboratory should follow to ensure production of precise and accurate test results? • Use traceable certified reference materials for calibration in the same matrix as the samples for analysis. • Achieve a calibration curve with minimum standard deviation which is equal or better than suggested by the international test method and in addition the analytical equipment manufacturer. • Evaluate the confidence level of the calibration curve periodically using certified reference materials. • Establish internal quality control chart to make sure the results reported are with 95% confidence level. • Participate in International correlation programs and statistically evaluate the results. • Validate the test method to make sure that the internal precision and accuracy is equal of better than specified by the International standard. • Develop measurement uncertainty. • Establish retest criteria. • Achieve and obtain test accredited to ISO/IEC 17025 which ensures the confidence in producing precise and accurate results.

• Periodical evaluation using check standards to maintain the calibration confidence • Participation in International correlation programs Globally all VPS laboratories are accredited to ISO/IEC 17025 quality system which ensures that the reported results are within 95% confidence level. VPS internal precision versus ISO 8754 and ASTM 4294 precisions It is necessary to have an internal precision which is equal or better than the precisions given by the international ISO 8754 and ASTM D4294 standards. VPS has carried out extensive work to determine the whole concentration range precision in terms of repeatability, reproducibility, accuracy and measurement uncertainty.

VPS precision, accuracy and measurement uncertainty results attained a high level confidence compared to the International ISO 8754 and ASTM D 4294 standards. Global sulphur limit and VPS 95% confidence level The 95% confidence level for a sulphur content of 3.50 wt% is calculated and represented in figure 5 based on the method ISO 8754, and ASTM D4294 and VPS internal precision. VPS achieve higher precision than the ISO 8754 and ASTM D4294 standards which in turn provides a high level of confidence in our test results reporting to the customers on a day to day basis. This can be achieved only through the rigorous quality process in practice. Stringent quality processes carried out by VPS laboratories ensure precise and accurate test results are produced and reported.

Why the test should be accredited to ISO/IEC 17025? ISO/IEC 17025 accreditation requirements ensure the Laboratory produces precise and accurate results by implementing the following procedures: • Validate the test method (Determine repeatability, reproducibility, measurement uncertainty, accuracy, detection limit, reporting limit, linearity) • Internal quality control measures • Equipment calibration with traceable reference standards

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testing

Results given in Table1 shows the comparison between the VPS internal precision against the ISO 8754 and ASTM D4294 precisions. Fig 5 shows the accuracy determination for the entire concentration range. The measurement uncertainty for low to high concentration ranges which is based on the combined correlation and QC results, correlation results and the internal precision results is given in Table 2.

Barge Design

Q-LNGs tug barge unti for US bunkering operations

LNG bunkering US style A combined tug and barge unit is being built to supply LNG bunkers in Florida

n articulated tug barge (ATB) is under construction to supply LNG fuel to cruise ships along the east coast of Florida. The 4,000 cu metre capacity ATB is being built at the VT Halter Marine (VTHM) shipyard in Pascagoula, Mississippi on behalf of Quality Liquefied Natural Gas Transport LLC (Q-LNG). When delivered, the vessel will be on a long-term charter with Shell Oil Co. The technology group Wärtsilä is to provide much of the vessel’s equipment. This will be the first fuelling barge with a Wärtsilä solution operating in US waters. Wärtsilä says the ATB is seen as being an important logistics link for the growth of LNG as a marine fuel in the US. The ATB comprises a barge and a tug. The barge will be fitted with a Wärtsilä LNG cargo storage, handling, and control system. Wärtsilä will also supply the barge automation, power management, and ballast water management systems, as well the bow thruster. The tug will include Wärtsilä main propulsion steerable thrusters and shaft lines, the Wärtsilä NACOS Platinum dynamic positioning system, the tug automation, as well as all navigation and communication equipment. The order with Wärtsilä was booked in November 2017. Deliveries will continue throughout 2018 and 2019,

and the vessel is scheduled to commence operations in 2020. Q-LNG is owned 70% by Shane Guidry and 30% by Harvey Gulf International Marine, a company that currently has six vessels under construction or in operation with LNG solutions supplied by Wärtsilä. The success of these installations, together with recommendations from Shell, were strong factors in the selection of Wärtsilä equipment for this project. “Wärtsilä is very grateful for the confidence placed in our solutions by VTHM, Q-LNG and Shell,” says Hanno Schoonman, General Manager Sales for Wärtsilä Marine Solutions in the USA. “Increasing the use of LNG as a marine fuel is at the core of our global business strategy, and this project represents an important step towards realising that aim.” LR approval for cargo handling system Hyundai Mipo Dockyard (HMD) has received approval in principle (AiP) from Lloyd’s Register (LR) for a cargo handling system design for a 6,600 m³ LNG bunkering vessel. HMD and the Hyundai Heavy Industries (HHI) Corporate Research Centre jointly developed the cargo handling system design based on their extensive experience of building gas carriers.

HMD says it chose to develop the LNG bunkering vessel design because of the potential for growth in the LNG-fuelled ship sector. The cargo handling system is designed for LNG bunkering to a LNG-fuelled ship, as well to supply fuel gas to the dual-fuel main engine and managing Boil-Off Gas (BOG). The cargo pumps are capable of bunkering an LNG-fuelled ship at a maximum of 1,100 m³/h and fuel gas to dual-fuel main engine can be supplied by BOG compression or LNG vaporising. BOG returned from the LNG-fuelled ship during bunkering can be burnt in the dual-fuel engine or collected inside the Type C cargo tank. Insulation for the cargo tank is designed for lower BOG generation. BOG generated from the cargo tank is less than the fuel gas consumption of the main engine at the normal continuous rating. This means that all BOG can be utilised by burning in the main engine so that the cargo tank pressure and temperature can be managed in a stable manner. An HMD official commented: “HMD and the HHI Corporate Research Centre expect that a cargo handling system for larger LNG bunkering vessels and LNG carriers can also be developed based on this approved design for a 6,600 m³ LNG bunkering vessel.”

World Bunkering winter 2017/18

legal iStock

Precious Shipping loses $32m case Wording of contracts torpedoes fuel efficiency claim

hai-based Precious Shipping will have to pay US$32m to the builder of a series of vessels for the bulk carrier operator. It had held back part of the payment for the first two ultramax vessels after estimating that fuel consumption was as much as 17% above that stipulated in the contracts. Now, however, arbitration in London has come down in favour of the shipbuilder, Taizhou Sanfu Ship Engineering Co. Ltd. (Sanfu). The case hinged on how the fuel consumption was to be measured. Precious Shipping argued that the actual fuel used during sea trials should be taken as the basis for estimating fuel consumption. However the shipyard argued that the contracts stipulated that that the fuel consumption would be determined during engine shop tests before the machinery was fitted to the vessels. That meant that the fuel consumption performance actually achieved during sea trials was irrelevant, the shipyard asserted. The arbitration decision was that Precious Shipping was not entitled to damages for breach of the contract or specifications by reason of the vessels’ fuel oil consumption. Precious Shipping has to pay interest, at 6% a year, and legal costs, which have been capped at US$750,000. World Bunkering winter 2017/18

According to a report in Tradewinds, Precious Shipping’s managing director, Khalid Hashim, has said his company will not be appealing the decision.

He reportedly added: “The money is on the balance sheet so we are able to pay them. The only impact to the company will be the interest and legal costs.”

Singapore bunker licence crackdown continues In its latest action against malpractice, the Maritime and Port Authority of Singapore (MPA) has revoked the bunker supplier and bunker craft operator licences of Transocean Oil Pte Ltd (Transocean) with effect from 6 November 2017. MPA says that Transocean is no longer allowed to operate as bunker supplier and bunker craft operator in the Port of Singapore.

MPA will take firm action against any licensee who has acted in contravention of its licence(s), including the suspension or revocation of licence(s).”

An MPA statement says: “As part of MPA’s ongoing regulatory efforts to ensure the integrity of bunkering in Singapore, checks were conducted on Transocean in March and April this year. MPA’s investigations revealed that there were several falsifications of records and discrepancies in the stock movement logbooks on board the bunker tankers operated by Transocean, which breached the terms and conditions of their bunker supplier and bunker craft operator licences.” In a warning to the bunkering sector, the government agency says: “MPA reminds all licensed bunker suppliers and bunker craft operators to adhere strictly to the terms and conditions of their bunker licences.

In January this year MPA brought a criminal case against an unlicensed bunker operator. New Ocean Maritime Pte Ltd was convicted in court under regulation 64(b) of the MPA (Port) Regulations and was fined a total of $81,000. The company was charged with providing services in the port of Singapore without a bunker craft operator licence between 3 January 2015 and 28 March 2015. New Ocean Maritime Pte Ltd was also found to have used the bunker craft operator licence that was issued to Seaquest Tanker Pte Ltd for providing services in the port. Seaquest Tanker’s bunker craft operator licence was revoked by MPA last year on 26 April 2016 for the company’s involvement with New Ocean Maritime. Investigations showed that its actions had breached the terms and conditions of the licence.

EQUIPMENT & SERVICES

Ryvingen

Focus on energy saving Our regular round-up of developments in the busy equipment and services scene

Battery power Corvus Energy is to supply Rolls-Royce with a lithium ion based energy storage system (ESS) for the Norwegian Coastal Administration’s new multipurpose vessel Ryvingen. The Orca Energy ESS from Corvus will supply electrical power for all-electric propulsion and for electrical needs while docked. The Ryvingen is the Norwegian Coastal Administration’s second vessel to combine traditional diesel power with batterydriven operation and the fourth vessel in the Norwegian Coastal Administration’s fleet renewal programme, consisting of six to eight ships in total. She is a multipurpose vessel, which performs operations relating to oil spill protection and the maintenance of shipping lanes. The Orca ESS that Rolls-Royce will equip the Ryvingen with will have an available capacity of 2938 kilowatt hours (kWh). This will allow the vessel to run on battery power alone for several hours, without using the diesel engine. In addition, the batteries will provide power when the vessel is docked, so the diesel engines will not have to be kept running. The batteries will be recharged from an onshore power supply in ports where this is available.

The complete equipment package will also cut noise and vibration levels on board, making the Norwegian Coastal Administration’s newest vessel a better workplace for the crew. The 46.6m long and 12m wide OV Ryvingen is scheduled for delivery towards the end of 2018. “The electrification of vessels will see an increasing utilization of higher battery capacities”, says Halvard Hauso, Senior Vice President of Business Development of Corvus Energy. “As with the Ryvingen, an increasing number of vessels will use the Orca energy storage system to deliver a greater proportion of the vessel’s power.” Dual-fuel engines for new LNG Carriers The technology group Wärtsilä, through its joint venture company CSSC Wärtsilä Engine (Shanghai) Co (CWEC), has been contracted to deliver 16 engines for four new LNG carrier vessels being built at the Hudong Zhonghua shipyard in China. The order was booked in August 2017. Each of the four 174,000 m3 capacity vessels will be fitted with four Wärtsilä 34DF dual-fuel generating sets running primarily on LNG fuel to provide the ships with auxiliary power. Their total power output will be 56 MW. Among the reasons given for the Wärtsilä 34DF engine being chosen for these ships were its proven reliability, efficiency, and economic fuel consumption.

Delivery of the engines to the yard will commence in the second half of 2018. The vessels are scheduled to be delivered commencing in 2019. “This valuable order once again emphasises Wärtsilä’s leading position in gas and dual-fuel engine technology. We are pleased to be working on this project with the Hudong Zhonghua yard, a company with whom we have enjoyed a good relationship for some years. The order also confirms our growing presence in China and our ability to serve the Chinese market,” says Lars Anderson, Vice President, Engine Sales, Wärtsilä Marine Solutions. GE’s PTO/PTI system for Maersk GE’s Marine Solutions recently delivered its power take off/power take in (PTO/ PTI) solution along with its Power Management System digital software solution onboard four of the world’s largest container vessels owned by Maersk Line, the Madrid Maersk, Munich Maersk, Moscow Maersk and the Milan Maersk. The Madrid Maersk was delivered from Daewoo Shipbuilding & Marine Engineering in April—and the Munich Maersk and Moscow Maersk have both completed successful sea trials. The Milan Maersk will soon be in service.

World Bunkering winter 2017/18

hese vessels are among the 11 Maersk EEE Mark II second-generation ultra large container vessels with capacity of 20,568 TEU each. These vessels are among the world’s largest by TEU carrying capacity. “The future of shipping requires moreefficient vessels with cleaner technologies that meet stringent environment regulations. Maersk’s EEE Mark II series of container vessels are among the world’s largest, and we will use them to move the greatest volume of goods in the most energy-efficient manner with the smallest emissions footprint possible in the industry. The secret lies behind the technology we use to power the vessels and the way we utilize the energy,” said Steffen Hartvig Nielsen, senior project manager, Maersk Line. “GE’s propulsion and software system creates energy savings and is helping us achieve our sustainability strategy, which aims to reduce carbon emissions per container vessel by 10%.” The innovative PTO/PTI solution can result in significant fuel savings and operational flexibility. The solution consists of two GE motor-generator sets that sit on the two propeller shafts while connecting to the GE MV7000 drives. During the PTI mode, the motor-generator sets play the role of an electric propulsion system that provides additional motor power— beyond that of the main diesel engines— to propel the vessel. When the need for propulsion power is reduced, the motorgenerator sets switch to the PTO mode, harnessing the mechanical energy from the shaft and converting the otherwise wasted energy into electricity to generate power for electrical equipment onboard the vessel. “Typically, one diesel engine can consume as much as eight tonnes of fuel per hour. Saving even just 1%t of fuel will generate significant savings for the customer,” said Bruno Daubas, project director, GE’s Marine Solutions. The two modes are completely reversed processes and, therefore, require robust drives and software to ensure a smooth switch between two modes and to react in a highly responsive manner. World Bunkering winter 2017/18

“During the sea trial of Madrid Maersk, when the modes switched, all equipment kept running without the slightest interruption—without even a flicker of a lightbulb,” Daubas said. “In container shipping, falling rates have been offset to a degree by low fuel prices. Unbalanced supply and demand, however, have put increasing pressure on vessel operators to continue to cut costs. Environmental regulations have also raised clear challenges,” said Azeez Mohammed, president and CEO, GE’s Power Conversion business. “GE’s solutions will help Maersk’s container vessels achieve improved fuel efficiency and performance, enabling them to move more goods worldwide with a reduced environmental impact on the sea.” Royston’s expanding Enginei team In response to growing global demand for advanced technology marine fuel monitoring systems from Royston, the company has expanded its dedicated Enginei support team. The Enginei system provides comprehensive fuel data analysis and reporting options to provide vessel owners and operators with detailed engine performance, fuel consumption and emissions information.

The move comes after the recent installation of over 30 new Enginei fuel optimisation systems in Nigeria, primarily in offshore support vessels (OSVs) and pilot boats, in response to the growing requirement by the international oil majors that contracted vessels have accurate on-board fuel monitoring data systems installed. This takes the total number of Enginei installations completed in Nigeria to over 80 in the last couple of years. As well as encouraging better emissions control and vessel operational efficiencies, the system also incorporates the automatic monitoring of bunkering activity, fuel inventory and consumption data to protect against fuel security issues. Reflecting this growth in demand, and an increasing focus on the development of effective engine data collection and interpretation systems, Royston has now expanded its dedicated Enginei support team. The specialist team now brings together marine, mechanical engineering, data analysis and software development experts.

Wartsila W6L34DF

EQUIPMENT & SERVICES

local sales unit has also been established in Nigeria and the company has also expanded its system build, test, installation and commissioning capabilities, as well as the technical support available to customers. In particular, Royston’s expanding Enginei team also incorporates a specialist software development unit that is focusing on the introduction of new digital systems to monitor and manage complete vessel performance, energy use and emissions. As part of the Enginei capability, the team has already developed a new software-based system that automatically detects a vessel’s operational mode and similar work is underway on new digital systems for emissions monitoring and compliance with environmental performance. Damian McCann, product manager for Enginei fuel management systems, explains: “With vessel performance measurement,

reporting and verification issues very much at the top of the marine agenda, our advanced Enginei fuel management system is attracting considerable global interest. The expansion of our team will ensure that we can both respond effectively to current demand and also continue to develop and enhance the Enginei system capability to meet the constantly evolving needs of the international marine sector.” Fuel-efficient water generation The new Alfa Laval AQUA Blue S-type freshwater generator is said to be almost 70% more energy-efficient than previous models. When introduced in 2008, its AQUA freshwater generation technology was claimed to cut seawater needs and pump-related power consumption in half. Now the company says: “With today’s AQUA Blue S-type, the need for electrical power is further reduced – to just one-third that of conventional freshwater generators. The new AQUA Blue S-type uses the same 3-in-1 AQUA plate technology as the original C-type configuration.

But it maximizes energy efficiency and capacity-to-footprint ratio by making use of the vessel’s existing seawater cooling system pumps. This cuts electrical power needs by 70% compared to conventional freshwater generators, and it shrinks the already small AQUA Blue footprint by up to 15%.” “AQUA freshwater generation technology revolutionized energy use in a very wellestablished application,” says Alex Jönsson, Global Business Manager for Alfa Laval freshwater generators. “With the AQUA Blue S-type, we further reduce the energyrelated costs for ship owners – as well as the installation costs for shipyards.” As well as its smaller footprint, the AQUA Blue S-type offers shipyards a considerable amount of new flexibility, including a range of connection alternatives. Because it makes use of the vessel’s seawater cooling system pumps, it employs a smaller ejector and a smaller, separately installed ejector pump. Likewise, the pipework can be both shorter and smaller in diameter.

New tank fuel monitoring module from Royston

World Bunkering winter 2017/18

company NEWS

Reliability beyond expectations Originating from an established marine environmental service business in Piraeus port in the early eighties, FAIRDEAL MARINE SERVICES was founded in Fujairah UAE - then as the sole provider of offshore marine MARPOL services in the Emirates east coast

AIRDEAL with a strong heritage of effective supply chain and vessel management, in-house tonnage, competitive trading, local knowledge and regulatory compliance put FAIRDEAL into a key position to provide a personalised bunkering service for a wide range of international clients. FAIRDEAL delivers all the standard fuel oil grades normally demanded in the UAE region with strict quality control procedures. Traceability is also considered an important virtue in the delivery structure. Currently, with managed storage capacity and three ideal capacity bunker vessels, a 24/7 bunkering operation is sustained. FAIRDEAL also provides physical supply services to oil companies and traders who do not have local tonnage. Physical supplies are carried out in full compliance with local regulations, industry good practices and efficient supply chain procedures. Efficient delivery schedule is achieved by closely working with agents in Fujairah. Fujairah is recognised as the #3 global bunker hub after Singapore and Rotterdam. The vision of the Government of Fujairah, delivered by the Port of Fujairah and all stakeholders has realised this remarkable success in a short period of time.

FAIRDEAL’s Environmental Services is a core service since the inception of FAIRDEAL in Fujairah. It covers Offshore Deslopping Services and Oil Spill Rapid Response Services. These services are licensed by Government of Fujairah and Sharjah and approved by Port Authorities of Fujairah and Khorfakkan. Retainer contracts are held with major shipping clients and terminals. FAIRDEAL Marine Services is also a success story in other business areas and has integrated additional services as customers’ demands have varied and grown. Marine Safety Equipment Services • Comprehensive servicing of LSA and FFA equipment to ISO system standards • Easy vessel access and servicing from service station inside Fujairah Port. • Certified by key members of IACS Technical Services Offering wide range of technical support: • On and offshore Mechanical Works,

• Electrical Services and trouble shooting, • Refrigeration / AC Service and maintenance, • Electronic and Navigation equipment, • Calibration and services of cargo/ bunker gauging tapers, automation and measuring instruments etc. • The services are performed under ISO/ QHSE guidelines of BV.

Agency Services include • Comprehensive husbandry services crew/stores – spares/ surveyors-superintendents, • Fresh water supply, • In- house crew and utility boats, • Anchor Salvage and repairs. The current infrastructure and competency developed during three decades of performance ensures FAIRDEAL Marine Services will remain a strong and key player in bunkering and continue servicing their many long and valued clients with whatever their needs may be.

• Light Fabrication Works,

Likewise FAIRDEAL has been able to share in this success by retaining and growing a significant share of this market. This reflects not only on the skills of the FAIRDEAL commercial bunkering team but also the ship management and the vessels’ committed crews consistently delivering at any time in all weathers.

World Bunkering winter 2017/18

Marine & Cargo Surveyors Shipping Consultants

+230 2121848 or +230 2124949 (Tel) +230 2101278 (Fax) web@dcplpro.world Captain Laval Lam Kai Leung Operations Manager llamkaileung@dcplpro.world

e Chermont & Partners Ltd is one of the leading Marine & Cargo Surveying firms in Mauritius, operating since 1989. Originally started in 1973 by Captain Daniel de Chermont, Master Mariner, with a season staff of Senior Marine Surveyors, De Chermont & Partners Ltd was formed following the passing of its founder in 1989. The company has been a pillar of the Marine and Cargo Surveying business and shipping consultant in Mauritius since that time, serving clients locally and internationally. We offer a wide variety of services and our entire staff of surveyors are eager to assist customers with all of their needs.

Indian Oil (Mauritius) Ltd

(IOML) is a fully owned subsidiary of Indian Oil Corporation Ltd, the largest commercial enterprise & the highest ranking Fortune Global 500 Company of India.

Driven by its customer centric approach and backed by excellent bunkering infrastructure, IOML has become major player in the bunkering business in Mauritius. It is widely known that Port-Louis, with its strategic location, modern harbour and excellent bunker infrastructure is becoming a popular destination for bunker only calls vessels. Two grades of bunker fuel namely MGO (DMA) and IFO 180 CST (RME) are supplied by IOML in Port Louis. Underlining the future growth potential, IndianOil (Mauritius) Ltd has invested substantially in the bunkering sector. IOML has laid 200 mm diameter pipelines for both Fuel Oil and Marine Gas Oil on Terminal II quays No. 1, No. 2, No. 3, No. 4, Mauritius Freeport Development (MFD), and at the New Oil Jetty (NOJ). World Bunkering winter 2017/18

To ensure faster bunkering operations and reduce bunkering time, IOML has installed high capacity pumps that can deliver fuel with high flow rates. Currently, IOML is actively seeking to engage a barge to meet the growing requirements of our bunker customers. IndianOil (Mauritius) Ltd also markets SERVO brand of Marine Lubricants. SERVO is Indiaâ&#x20AC;&#x2122;s largest selling lubricant brand with over 450 commercial grades under its belt. At IOML, SERVO Lubricant grades are available to suit various requirements of a vessel viz. Main Engine Oils, Auxiliary Engine Oils, Hydraulic Oils, Compressor Oils, etc. SERVO Marine grades are approved by leading Marine equipment builders such as Wartsila, Sulzer, MAN B&W and SEMT Pielstick.

Contact details:

Bhavesh Guttoo Marketing Officer IndianOil (Mauritius) Ltd Mer Rouge, Port Louis, Mauritius T: (230) 217 2710 M: (230) 5 943 9578 F: (230) 217 5500 E: bhavesh@ioml.mu W : www.ioml.mu

company NEWS

De Chermont & Partners Ltd

company NEWS

Southbond Shipping Agency Ltd (SSAL) Southbond Shipping Agency Ltd (SSAL), incorporated as a private limited company in Mauritius

SAL is an operator/management shipping company involved in shore/ land shipping at Port Louis. Our highly experienced team are dedicated to achieve the best possible turnaround of your vessel. In doing so, we provide top class services based on attention to detail, due diligence and timely communication. The company is encrusted in a wider group of companies in related activities, including third party management, ships handling, ships agency & shipâ&#x20AC;&#x2122;s chandling and among others. Our office is situated in the heart of the capital around the corner of the harbour and the Freeport zones. Over the years, the company has developed and acquired unparalleled expertise in the field of its activities and we can proudly say that our reliability and friendly services have ranked us amongst the best shipâ&#x20AC;&#x2122;s agency on the island.

Whatever your specific needs are, SSAL has the answer to your requests. We make sure that our clients are treated in the best way the moment their vessel reach Port Louis. Our clients benefit largely from our extensive network of services and added confidentiality of dealing direct with one of the largest shipping service providers in the Indian Ocean.

MFD Business Centre Freeport Zone 5 Mer Rouge Port Louis Republic of Mauritius Tel : (+230) 206 3987 Fax : (+230) 206 3990 Email : ops@ssalmru.com www.ssalmru.com

Thanks to our organisation structure we have a better advantage of providing a host of advisory services to vessels in the most cost effective manner. Our high quality services make us a reliable agent in Mauritius. The vision of South Shipping Agency Ltd is to provide and improve the provision high level of services to its clients.

World Bunkering winter 2017/18

company NEWS

EUROCHECK MARINE BRIGHT AND CLEAR APPROACH IN SURVEYING

stablished in 1998, Eurocheck Marine B.V. is a Dutch company specialised in Bunker Quality and Quantity Surveys covering the ARA (Amsterdam-Rotterdam-Antwerp) area. Throughout the years Eurocheck Marine B.V. has grown to become one of the leading mid-size survey companies in the ARA area. A big number of shipping companies, charterers and brokers can confirm the knowledge, flexibility and professionalism of their inspectors. Eurocheck Marine B.V. inspectors are well trained, IFIA certified and follow the in-house training program for improving their skills and knowledge to maintain the highest quality services. Their inspectors advise the vessel crew and ensure that all local official checklists and pre- bunker documents are filled in properly and signed before operations commence.

World Bunkering winter 2017/18

The founder of Eurocheck MarineB.V., Ron van den Berg, started his career in 1983 in the local oil shipping industry. Starting as a sailor and later a captain, he worked for almost a decade as bunker barge master. Eventually he started the company in 1998. The strategy of Eurocheck Marine B.V. is Bright and Clear, do in what you are best, which means, performing the inspection services at the highest level. While performing their tests Eurocheck Marine B.V. cooperates with one of the biggest world leading laboratories in marine fuel and lubrication oil analysis. This cooperation is for sure a profitable advantage for their clients.

Clients are fully aware of the cost of a survey before the inspection starts, no extra â&#x20AC;&#x153;surprisesâ&#x20AC;? and hidden costs afterwards. The services of Eurocheck Marine B.V. are: Bunker Quantity Surveys, Bunker On/Off Hire, Detective/ROB Surveys, Condition Surveys and STS inspections. As extension of the ARA area, Eurocheck Marine B.V. covers surveys in all Belgian, Dutch and German ports.

Contact Details: EUROCHECK MARINE B.V. Tel: +31 180 465 395 (24 hrs) Email : office@eurocheckmarine.com Website: www. eurocheckmarine.com

The Bright and Clear strategy is also fully visible in pricing, as only lump sum fees will be charged.

new members

Individual

Corporate Surveyor Vikram Mohan Viking Marine Services Asia vikram@vikingmarines.com

Surveyor Juan Torrijos IC Surveys Ltd America (South) sixmar@intermarimate.org

Surveyor Ron Van den Berg Eurocheck Marine B.V. Europe rvdberg@eurocheckmarine.com

Supplier (Physical) Charles Hansard Biofriendly Corporation America (North) cchansard@biofriendly.com

Trader, Broker Konstantinos Kazinakis Fuel Trade International Inc Asia kazinakis@fueltrade.ca

Broker Sandra Ennor Transparensea Fuels LLC America (North) sandi@tseafuels.com

Trader, Charterer Mithat Ciftcioglu Kairos Oil Trading Pte Ltd Asia finance@kairos-oil.com

Supplier (Physical), Charterer Peter Bamber Prema Energy Europe peter.bamber@premaenergy.com

World Bunkering winter 2017/18

Next ISSUE

World bunkering

spring 2018... now open for bookings

Spring 2018 Coinciding with IP Week and IBIA’s Annual Gala Dinner, our Spring issue comes out during a time of great change and uncertainty in the bunkering industry. World Bunkering looks at the key issues likely to be up for discussion as the industry comes together in London.

Special Features: Traders What does the future hold for bunker traders in an era of ‘disintermediation’. Are traders necessary or will direct transactions between physical suppliers and oil majors and even large commodity traders become the new norm?

Fuel Quantity The use of mass flow metering systems on bunker barges is now compulsory in Singapore. How has the change been received? Is it inevitable that the use of flow meters will become standard practice everywhere?

I.T. There was increasing focus of cyber security in 2017. Is the bunker industry taking the threat seriously and what more needs to be done?

Lubricants Lubricant manufacturers were busy in 2017, developing new products to meet the needs of an increasingly complex and competitive market. We take a look at what is on offer.

Geographical Focus: Western Mediterranean Our annual look at this important bunkering region. Is it realising its potential and what effect could the 2020 sulphur cap have on ports in the Western Mediterranean.

Central America and Caribbean The widened Panama Canal saw its 2,000th neopanamax vessel sail through the waterway in late September last year. What impact has it had on Panama’s bunker industry? Meanwhile, after a year of natural disasters, what shape are the Caribbean cruise and bunkering sectors in.

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

www.worldbunkering.com World Bunkering winter 2017/18

ibia@constructivemedia.co.uk 73

DIARY

DIARY 19 FEBRUARY 2018

IBIA ANNUAL DINNER, LONDON IBIA will again host its most prestigious annual dinner at the glorious Grosvenor House Hotel in Mayfair. Should you wish to know more, please contact the IBIA office or email ibia@ibia.net

27 FEBRUARY 2018 – 2 MARCH 2018

23 – 24 APRIL

GREEN MARITIME FORUM, HAMBURG Key topics include: •Alternative Fuelling Opportunities in Europe and the Middle East •Smart Shipping Solutions – How Technology Affects the Industry •Latest Maritime Industry Trends and Future Opportunities •Risk Management – Controlling Safety and Security info@wisdom.events

13TH LNG SUPPLIES FOR ASIAN MARKETS, SINGAPORE With the theme ‘Lower for Longer: Implications for Asia’s LNG Business’ this event is expected to attract over 200 delegates and will again feature a special LNG veterans panel comprising of key veterans in the LNG industry. abby@cconnection.org

7 – 11 MAY 2018

MARITIME WEEK AMERICAS 2018, PANAMA

5 – 8 MAR 2018

Middle East Bunkering Convention 2018, Dubai

Maritime Week Americas 2018 celebrates Panama in the year that this amazing little country plays for the very first time in the finals of the football World Cup. The action-packed week comprises a full programme of key maritime events, including the MWA Conference. events@petrospot.com

The third annual Middle East Bunkering Convention will highlight the exceptional growth taking place in the marine fuels sector in Dubai and examine the markets and players active in the region. events@petrospot.com

25 – 26 OCTOBER 2018 ARACON, ROTTERDAM

20 – 22 MAR 2018

IBIA Africa’s Bunker Conference hosted by Ports of Tenerife IBIA will host its 3rd Africa Forum in Tenerife this year. Tenerife is connected to 278 ports and strategically placed on shipping routes. This event will include one full day’s bunker training suited to the region as well as a one and a half day forum, plus a half day port tour. The Forum will invite key players and partners within the West Africa and Canary Islands region to meet and discuss developments within the port and how this location offers new fuels to meet the industry’s future needs.

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. events@petrospot.com

Should you have any enquires regarding this forum please email tahra.sergeant@ibia.net

World Bunkering winter 2017/18

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