World Bunkering Winter 2018/19 by Constructive Media

Winter 2018/19

GETTING READY FOR 2020 PREPARATIONS UNDERWAY ACROSS THE INDUSTRY

THE ONLY OFFICIAL MAGAZINE OF

INSIDE THIS ISSUE: IMO REBUFFS 2020 DELAY SPECULATIONS AFRICA & MIDDLE EAST: RISING EXPECTATIONS SINGAPORE OPEN LOOP SCRUBBER BAN MAKES WAVES

World Bunkering WINTER 2018/19

With just over 12 months to go before the 0.50% sulphur cap takes effect, IMO has agreed a move that should help ensure compliance, while Singapore has surprised the maritime world with its plan to ban the use of open loop scrubbers

nce again most of our pages relate in some way to 2020 but two of our features home in on very important policy decisions. IBIA Director Unni Einemo was at IMO for the debate on banning the carriage of non-compliant fuel and reports on this and other significant developments at MEPC 73 and MSC 100. One thing that does come through clearly in her report is the role of IBIA in influencing policy on bunkering. Then is the matter of scrubbers. About a week before the editorial deadline for this issue I put what should have the finishing touches to our Scrubbers feature. It described a busy scene with more and more companies opting for scrubbers as a means to comply with the impending sulphur emission regulation. And then Singapore, in a low key and totally unexpected announcement, said it is going to ban the use of open loop scrubbers in the country’s waters when the global 0.50% sulphur cap comes into force in 2020. So it was back to the drawing board for our Scrubbers feature. It now reports Singapore’s decision and reaction to it. This includes a response from the Exhaust Gas Cleaning Systems Association (EGCSA) which, not surprisingly, was jolly cross. On the other hand the International Chamber of Shipping appears to be much less concerned while P&I insurer The American Club put out a thoughtful piece on the implications of the ban for shipowners. The 2020 sulphur regulation will undoubtedly have a massive effect on the whole shipping industry but many companies in the bunkering sector are already finding it difficult to keep afloat. That is reflected in our News section with a report on Aegean’s struggle to go through Chapter 11 and restructure.

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Also in News, bunker industry veteran Adrian Tolson opines that physical fuel suppliers need to fundamentally transform the traditional models of supply in order to survive. I suppose that is another way of saying things aren’t going to get any easier. However for those looking for positive news there is much of interest in our Innovation and Equipment and Services pages. There is a lot of exciting research and development going on, and especially so in the development of new fuels. And this issue devotes several pages to less familiar fuels that may play at least niche roles in the overall marine fuel scene in years to come. Our pages on Methanol, LPG and Ethane serve to demonstrate the future of our industry is likely to be very different from what we have known, and change is happening rapidly.

In addition, of course, World Bunkering carries a comprehensive update on the work of IBIA around the world, including reports from IBIA’s offices in Africa and Asia. There is also a report on the recent highly successful Annual Convention in Copenhagen and a round-up of other recent IBIA events. Talking of events it will soon be time for the IBA Annual Dinner in London. The World Bunkering team will be there and look forward to meeting as many IBIA members as possible. See you there! Meanwhile we wish you all the best for the festive season and a Happy New Year.

One company that has managed to cope with many changes over the years - in markets, regulations and technology - is Singapore’s’ Pacific International Lines (PIL) whose Executive Director (Fleet) Teo Choo Wee is the subject of this issue’s Interview. Interestingly, given the latest news from that part of the world, he said that PIL would be fitting scrubbers on a significant part of its fleet. As usual we feature two geographical areas, this time the Middle East and Africa, with reports on both by experienced bunker scene reporter John Rickards who notes that diplomatic developments have threatened to throw a wrench into the Middle Eastern bunker market. However the African scene is stirring once again after several years of challenging conditions.

David Hughes Editor

EDITOR’S LETTER

IMPORTANT DECISIONS

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Chairman’s Letter

Director’s Report

IBIA Asia International period for ibia asia

IBIA Africa A look forward into 2019

Interview Boxing clever

IBIA Events IBIA flies its flag high

Events Report IBIA Annual Convention 2018, Copenhagen

News Refineries “can produce enough 0.50% Fuel oil”

Fuel Additives Adjusting to low sulphur

Russia Russian bunker news

Publisher & Designer: Constructive Media ibia@constructivemedia.co.uk Editor: David Hughes anderimar.news@googlemail.com Deputy Editor: Unni Einemo unni@ibia.net Project Manager: Alex Corboude alex@worldbunkering.net

On behalf of: IBIA Ltd 4th Floor 50 Liverpool Street London EC2M 7PR, UK Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 3865 Email: ibia@ibia.net Website: www.ibia.net

CONTENT

LPG Vlgcs to burn LPG

Middle East Opportunities amid turbulence

Innovation New technology reduces generator use

Legal 2020 and time charters

Ethane Ethane fuel first

Barge Design Chinese yard set to build LNG bunker barges

Africa A new impetus

Equipment & Services Grimaldi Group installs air lubrication system

LNG LNG “could allow 40% carbon cut”

Environment Imo makes progress on 2020 preparations

Scrubbers More owners opt for scrubbers

Lubricants Getting ready for 2020

Blending Going low

Company News

IBIA Events 2019

Diary

Next Issue

New IBIA Members

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

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

World Bunkering WINTER 2018/19

A GOOD YEAR FOR IBIA Looking back on 2018 fills me with confidence that IBIA is well placed to support its members in the year ahead

he end of any calendar year can often bring with it a bout of the winter blues, usually heralded by continued exposure to cold, dark and wet winter days – unless you happen to reside in the Southern Hemisphere, that is. This feeling of lethargy can often be difficult to dispel and certainly won’t be aided by the continued problems that we see paraded in front of us by the media, where relentless speculation and uncertainty surrounding the political and economic scene and reports about the worsening climate crisis are hardly conducive to lifting the mood. However, despite the apparent plethora of doom and gloom I am extremely happy to be able to offer a degree of solace a in my final Chairman’s letter of 2018 and to tell you just how good the last 12 months have been for IBIA. It’s not often that we get to shout about the good points of the bunkering industry but on this particular occasion I intend to make the most of the opportunity. 2018 has proven to be a year when IBIA has been able to heighten its status considerably, thus providing a much wider range of support and benefits for all of its members. IBIA’s involvement with a number of key industry events during 2018 such as Posidonia, SMM and SIBCON has facilitated an exposure to a much wider audience and has played a key part in promoting initiatives that IBIA sees as being fundamental to the bunkering industry. World Bunkering WINTER 2018/19

The exposure offered in relation to the IBIA Guide to Good Practice and the continued efforts to engage stakeholders with regard to the IBIA Code of Ethics have been key in showcasing IBIA’s work to raise standards and the status of the industry. In addition IBIA has been able to offer more of its own events in a number of different key global locations during the course of the year. The IBIA Africa Bunkering Conference held in Tenerife in March, the IBIA Caribbean Bunker Conference in Jamaica in April and the IBIA Africa seminar in Cape Town in August are but a few of the events that have been specifically designed to engage with and inform members about industry issues. It is also important to note that whilst interaction with members has increased significantly we have not lost sight of the core values of the association and have continued to promote training and education. Tailored IBIA training seminars have been offered to members to support continued professional development. In looking at what IBIA has offered its members during the last year, the Annual Convention held in Copenhagen in November was our flagship event for 2018. Not only was this particular event a roaring success due to the prominence of the speakers involved and the high level program offered but it also attracted a record number of delegates for an IBIA event.

The fact that this event was such a success is no accident and it would not have been possible without the hard work and dedication provided by all members of the IBIA secretariat. The feedback received has been nothing short of fantastic and I can personally say that I am extremely proud of everyone involved as it just goes to show what we can achieve and certainly allows us to end the year on a high. However, much as we can all reflect on what has clearly been an extremely positive year we have to think about the future and what 2019 may bring. It’s clear that 2019 will be a year of change and development as we draw ever closer to the start of 2020 and what we all have come to recognise as a regulatory watershed. However, change is not something to be feared and we still have an opportunity to influence the direction we take. IBIA, with the backing of all of its members, can offer a strong guiding hand to the bunkering industry.

Michael Green Chairman 7

CHAIRMAN’S LETTER

iStock

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n April 2016, I joined IBIA in a newly created role combining representing the Association at the International Maritime Organization and managing media and communications. Prior to this, I had been serving as an IBIA board member for two years, and I had been writing about the bunker industry for nearly two decades. Back in 2005, when IMO started discussing the amendment of MARPOL Annex VI, I started attending IMO meetings to report on the regulations taking shape. Having witnessed the intense negotiations leading up to the 2008 revision, when the dramatic cuts in fuel sulphur limits were decided, I don’t think many people at IMO, nor in the bunker and shipping industries, fully grasped the impact that this historical agreement was going to have on us all. We are certainly aware of it now! With my background as the managing editor for Bunkerworld and having learnt about IBIA’s role as board member, I was eager to contribute to effective communication, which is so important for our Association. We need to understand the industry’s needs and issues, and to be able to communicate these clearly so we can get the right messages across to all stakeholders. We do this at the IMO, in newsletters to our members, in IBIA’s official magazine WorldBunkering, by communicating with the press, and by speaking at industry conferences. This remains a key part of my role. Indeed I am still acting as deputy editor of this magazine which means I have been editing the Chief Executive’s welcome letter for some time. So it feels quite strange to address you now as the Director of IBIA! I am deeply honoured by the confidence the Board of IBIA has shown in me to continue the work I have already been doing at the IMO and in communication, and to trust me with the enormous privilege of becoming the new head of IBIA. We are in a period of particularly intense work to help guide the industry and the IMO to implement the 2020 sulphur limit as effectively and smoothly as possible. During 2018, we saw the bunker industry hit badly by problems linked to bunker fuel quality, which made the market even more nervous about the quality of fuels in 2020.

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IBIA is working with various stakeholders to help provide advice on how to deal with the reality of 2020. We have already provided input to the IMO, most notably by writing the document that was used as the basis for developing IMO Guidance on best practice for fuel oil suppliers for assuring the quality of fuel oil delivered to ships. We have also contributed to development of IMO advisory on preparatory steps for ships on issues such as tank cleaning options and heating arrangements, and we are working with a cross-industry group of experts on guidance documents for dealing with the anticipated variety of compliant fuels coming into the market.

Our dream is that it can be the first step on a journey towards a cleaner industry which we can feel proud to be part of, where we are not all tarred by the same brush and suppliers are seen as trustworthy business partners. The 2020 sulphur limit will be game changing and it could be a force for good. With a stronger focus on fuel quality and the increasing cost of doing business, we will more than ever need to be working with trusted partners on all sides. This could help raise standards and we need to do everything we can to support that. Let us work toward a cleaner industry in every sense of that word.

We have had detailed discussions with testing agencies and other fuel quality experts to see if we can get closer to finding out what went wrong with some of the fuels supplied in Houston, Panama and Singapore during 2018 so we can better understand what to look out for to prevent this from happening again. There are no quick or easy answers, and we sincerely hope that all relevant stakeholders will assist us in these efforts. Luckily I have the support amazing colleagues in the Secretariat to look after administrative duties, events and marketing. It is due to their hard work and dedication along with support from our board members and the generosity of our sponsors that we were able to welcome a record number of delegates to the IBIA Annual Convention 2018 in Copenhagen - probably our best to date! We received a huge amount of positive feedback from our Convention and we are immensely pleased to have created an event combining really high quality sessions on a range of hot topics with a great social atmosphere.

IBIA aspires to represent the global bunker industry from well to wake and to be a voice of reason for the sector at the IMO and elsewhere. Our knowledge and inspiration comes from our members – we want your input! Tell us how IBIA can help improve the industry that is the lifeblood of global trade.

IBIA will be arranging more events in 2019 to help inform the industry while also giving attendants the opportunity to ask questions and tell us what your concerns are so we can all learn from each other. You may have noticed that IBIA recently launched a Code of Ethics for the bunker industry. It is easy to be cynical about this but we have to dare to dream big.

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

DIRECTOR’S REPORT

LET’S WORK TOGETHER

IBIA ASIA Timothy Cosulich, Chairman of IBIA Asia, giving a presentation about IBIA to visitors from the International Propeller Clubs, Italy at the IBIA Asia office

INTERNATIONAL PERIOD FOR IBIA ASIA The world came to Singapore in October for SIBCON 2018 which kept the IBIA Asia office very busy, while in November we welcomed a delegation from Italyâ&#x20AC;&#x2122;s International Propeller Club to our office. In addition, we have been to Dubai as we expand our training activities beyond Singapore

BIA active at SIBCON 2018 SIBCON 2018 was the biggest bunker conference to date for any bunker conference globally, with a recordbreaking 2,000 participants gathering from all over the world at Resorts World Sentosa, Singapore, on 2 - 4 October. As the world came to Singapore, IBIA made its presence felt. Unni Einemo, who was recently appointed Director of IBIA globally, flew in from London to moderate a panel discussion on the strategy of major ship owners for 2020 compliance. Douglas Raitt of FOBAS, one of the IBIA Asia Executive Committee (ExCo) members, moderated a panel with focus on fuel quality in the wake of the 2018 fuel contamination crisis. In addition, several other IBIA Asia ExCo members took part as panellists: Timothy Cosulich, CEO Fratelli Cosulich; Capt Rahul of VPS; and Capt Ashley Noronha of Teekay Shipping. In addition to being well represented in the conference programme, IBIA had a table in the SIBCON Exhibition Hall with IBIA Asia office manager Nadiah Zulkifle on hand to meet and greet delegates, along with Regional Manager Simon Neo and Unni. We had copies of the Autumn 2018 issue of WorldBunkering available which proved very popular -

so popular in fact we had to hold back a few so as not to run out on the first day. It was great to meet so many of our members both from Asia and further afield during SIBCON 2018. We also used the opportunity to host a meeting at the IBIA Asia office on 5 October to discuss fuel quality issues with both local and international IBIA members, also attended by representatives from the Maritime and Port Authority of Singapore (MPA).

Training in Dubai Since the previous issue of WorldBunkering, IBIA Asia has been to Dubai twice to conduct bunker training courses for surveyors. The first took place on 4-5 September, and we were back in Dubai in November to conduct two sessions of the IBIA Enhanced Bunker Course for surveyors. The course is based on ISO 13739, the international operating standard for bunker deliveries.

IBIA receiving a memento from Mission of the International Propeller Clubs, Italy. From left to right: Timothy Cosulich (IBIA Asia Chairman), Simon Neo (IBIA Asia Regional Manager) and Umberto Masucci (President, The International Propeller Clubs of Italy)

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IBIA ASIA IBIA Asia hosted an informal lunch for the IBIA Asia ExCo and IBIA Board Members, who were in Singapore for SIBCON 2018

he first training session ran on 5-6 November and the second on 7-8 November. A total of 34 senior bunker surveyors attended our November sessions. The courses explained how bunker operations are carried out, including some safety procedures. After the training, all the surveyors took an assessment or test, where they needed to have at least 75 marks to pass and be given a Certificate of Completion which the surveyors will have to submit to the Fujairah Port Authority for their consideration to be allowed to work as bunker surveyors in the port of Fujairah.

Visit by Italy Propeller Club IBIA Asia hosted a group of 19 delegates from Italy’s International Propeller Club (Italy’s shipping association) on 22 November 2018. Timothy Cosulich, Chairman IBIA Asia, was in attendance and gave a brief about IBIA in Singapore. We also exchanged some ideas and practises within the bunker industry and spoke about the impact of the IMO 2020 sulphur regulation.

Training in Singapore The IBIA Asia office continues to offer twice-monthly specialised training for the bunker sector in Singapore with MPA-certified courses. We run both a Basic Bunkering Course and an Enhanced Bunkering Course covering the Singapore Standard, SS600 and the Mass Flow Meter technical standard, TR48.

Details of our regular courses are available at www.ibia.net/training or you may contact Nadiah at +65 6472 0916 or nadiah@ibia.net.

The ship owners panel: Kapil Berry of BW Technology, Shu Nishinami of Ocean Network Express, Unni Einemo of IBIA, Teo Choo Wee of PIL and Jens Maul Jørgensen of Oldendorff Carriers ©SIBCON

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IBIA AFRICA

IBIA Africa and its members would like to thank the Engen team for hosting their annual Christmas get together, Cape Town, South Africa

A LOOK FORWARD INTO 2019 Working with members in Africa to ensure that they are kept abreast of all current developments and legislation

BIA Africa can reflect on a successful and engaging 2018. We successfully hosted training in Mauritius, at our IBIA Africa Conference in Tenerife as well as at our half day seminar in Cape Town covering all talking points around the sulphur cap 2020, it’s up and downs. Recently the IBIA Africa team and a number of our Africa members attended the Annual IBIA Convention in Copenhagen. We had representation from South Africa, Nigeria, Ghana and Mauritius alongside 18 other countries worldwide. The overriding theme was what to expect before and after 1 January 2020. Our members walked away with the confidence that IBIA supports industry in making that transition and can be trusted as an information resource. IBIA Africa is excited to announce our next conference which will be held in Cape Town at the end of May 2019, shortly after the IMO’s Marine Environment Protection Committee has held its last meeting prior to the global sulphur cap taking effect. IBIA Director, Unni Einemo, who represents IBIA at the IMO will share with our delegates the latest update on what the legislation means and the requirements of industry as we move towards the new sulphur regime that will make our industry cleaner and more environmentally friendly.

Our speakers will include experts in fuels, shipping, port authorities and regulators. Topics we will cover: • IMO 2020 UPDATE: Compliance and Enforcement • Preparing for 2020 Fuel Challenges in Africa • Shipowners panel: with less than a year until 2020, where to go from here? • Leadership panel: Looking beyond 2020

• Ports: Ready for 2020? IBIA will also run our one day Bunker Course prior to the Conference. This course is a refresher course and covers all aspects of bunkering. If you are interested in speaking or participating in our conference please contact us on the details below for all opportunities.

Port Liaison Forum team, Cape Chamber of Commerce and Industry ©Dean Le Grange

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IBIA AFRICA

n news from South Africa, IBIA Africa actively participates in the Port Liaison Forum, which is a Cape Chamber of Commerce initiative to bring all stakeholders and port users together on a monthly basis to discuss directly with the Port Authority any issues, and work together to find solutions. Building on this success, IBIA and the Port Authority will be instituting a Bunker Table to be hosted by the Port, on a quarterly basis, where all aspects of Bunkering in Port including Cape Town and other bunkering ports will have an open communication forum, working together to resolve and address challenges faced by both port users and the ports themselves.

Our Africa membership reaches far and wide across the African continent and in order to engage and stay in touch with our members, IBIA Africa will participate in the following events to be held in 2019: • March : ARA Week, South Africa • May: Mozambique Ports and Rail Evolution, Mozambique • July: West African Ports and Rail Evolution, Nigeria • August: Africa Ports Evolution, South Africa • November: Maritime Week Africa, Mauritius

We would like to thank all our members for their continued support during 2018, and looking forward to an engaging 2019.

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

INTERVIEW

BOXING CLEVER Pacific International Lines Teo Choo Wee talks to David Hughes

ingapore-based Pacific International Lines (PIL) is the world’s ninth largest container carrier, operating some 150 ships with a combined lifting capacity of about 500,000 TEUs. The family-owned business was founded in 1967 by Chang Yun Chung, who stepped down as chairman just this year. Initially a mainly break-bulk line, in the 1980s it transformed itself into a container carrier, serving Asia, the Middle East and Africa. PIL employs some 18,000 people and has survived while many other container carriers have disappeared. I caught up with Executive Director (Fleet) Teo Choo Wee during SIBCON 2018 in October. First of all we discussed the tough times all container lines have been going through. WB: In general market conditions have been very difficult for container carriers over the past few years. How about PIL? PIL: 2016 was a challenging year for the entire industry and we were not spared. So when we managed to return to profit in the first half of 2017, driven by improved market conditions and improved operating efficiency - it was really an achievement. Overall, last year was reasonable and we expect 2018 to be similar. While we remain cautious about the first half of 2018 as rates were low and bunker costs rose, we see things improving in the second half. WB: How important are bunker costs to PIL? PIL: Bunker cost has always been an important cost element of our operating budget. We pay close attention to its price trend and monitor its movement closely. We purchase bunkers on a mixed approach: term contract, spot purchase and fixed price (hedge). Singapore is our major bunkering port and we lift approximately 75% of our fleet bunkering here.

One of PIL’s new P Class ships approaches Singapore

WB: How do you cope with the current 0.5% sulphur in fuel cap at Shanghai? PIL: We are currently using 0.1% LSMGO at China port / Yangtze River Delta Area. We will switch to 0.5% LSFO when it is likely to be available end of this year. WB: How will you comply with the 2020 global 0.5% cap? PIL: Our plans are evolving but we have now decided on a mixed approach. We will fit scrubbers to our vessels with higher fuel consumption while relatively smaller and older vessels will switch to LSFO. At ports where LSFO might not be available, we will then use distillate. We will start preparing the tanks on board the vessels in Q3 next year, after which the vessels will phase in accordingly in Q4 next year switching to compliant fuel. WB: What issues do you see arising when the cap comes in? What about compliance?

Availability of compliant fuel might be a problem in some ports but we mainly bunker in Singapore and we don’t see that issue arising here. Lastly, the crew on board has to be trained accordingly to handle such fuel. WB: Your series of new P class vessels will, it has been decided, be fitted with scrubbers. What about future newbuildings? Are you considering using LNG? PIL: No, not in the near future. It would be very expensive to adopt LNG. It would involve huge investment. Overall a picture emerged of a company that is taking a pragmatic approach to the challenges ahead. Running a network based on Singapore, and not involving own-tonnage services to Europe, is certainly an advantage when it comes to marine fuel regulatory issues. But clearly Mr Teo is taking nothing for granted and the company is making sure it will be ready well before the 2020 deadline kicks in.

PIL: We don’t believe compliance will be an issue with the container carriers. They will all comply. The reputational damage of being caught not doing so would be great. If operators try to cheat enforcement in Singapore is likely to be effective. Compatibility of fuels and the need for segregation may be a problem for some operators. We have to pay attention to the quality of such LSFO with regards to its viscosity and cat fines, etc. Teo Choo Wee

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Information, education, and networking are core values for IBIA to help prepare our members for the historical changes happening in our industry. IBIA’s Global Head of Marketing & Events Sofia Konstantopoulou reports

ver the last few months IBIA has participated in, attended and organised flagship events highlighting the main issues and concerns about the 2020 global sulphur cap. We start this events report with SMM, the leading international maritime trade fair in Hamburg, which took place in September. IBIA delivered a seminar, kindly sponsored by Intertek, where we covered IMO 2020 regulations and expectations around new fuels and how we can manage them. It was a full house event and we intend to renew our ‘rendezvous’ with our members for the next SMM in two years’ time. Moving to October, IBIA was highly active and visible at SIBCON, which attracts the biggest audience of any bunker conference, running every two years in the world’s leading bunkering hub Singapore,. We were proud to be a supporting organisation, which means IBIA members were entitled to a discount. Our regional office in Singapore welcomed and interacted with hundreds of delegates at our very busy stand in the exhibition area and last but not least Unni Einemo, IBIA’s Director, was invited to moderate the panel discussion on the strategy of major ship owners for 2020 compliance. October was a particularly busy and productive month for IBIA. Unni Einemo, who represents IBIA at the IMO, participated actively in the week-long Marine Environment Protection Committee (MEPC) meeting, where, among other things, an IMO best practice guidance document for bunker suppliers was finalised. During the same week as MEPC, IBIA organised a very successful seminar focusing on Mass Flow Meters with the title, “New Fuels – New Rules – New Technologies” at the UK Chamber of Shipping, which was attended by about 50 delegates from many different sectors of our industry. Endress + Hauser, the main sponsor of the seminar, displayed and demonstrated a Marine Bunkering System and also had a Mass Flow Meter on show. These systems have been successfully applied in many installations worldwide and the purpose of this seminar was to create awareness of this technology the UK market. World Bunkering WINTER 2018/19

The IBIA Annual Convention 2018 held in Copenhagen 6-8 November was the most-well attended and successful Convention in IBIA’s history. Almost 200 people from around the world met to share their knowledge, their expertise, and their concerns about the future challenges facing the bunker and shipping industries. Read more and enjoy some of the pictures from our Convention on pages 16-18 of this issue. During November, Unni, always proudly representing IBIA, took part in the seminar ‘Discovering Solutions for Reducing CO2 and GHG Emissions in the Shipping Industry’ in Sandviken, at Neste’s Porvoo Refinery in Finland. She has also been invited to participate as a key speaker at the Platts Mediterranean Bunker Fuel Conference in Athens at the very end of November to provide an update on IMO’s sulphur regulations. IBIA is also a Supporter of this Platts event, which entitles our members to a discount. As we look ahead to 2019, we are getting ready to gather for the IBIA Annual Dinner, now in its 26th year. It will be our pleasure and loyal honour to host you on the 25th February 2019 at the exclusive ballroom of the Grosvenor Hotel on London’s Park Lane. We are preparing more surprises for you, with more technology,

more networking opportunities, more fun! With more than 600 tickets already sold, in order to avoid disappointment, we highly recommend you to book your tickets now, before they sell out! See you all in London! Later in the year, IBIA is planning to host a conference in Cape Town, South Africa, which our Regional Manager Tahra Sergeant will tell you more about in her report. After a successful Caribbean Bunker Conference in Montego Bay, Jamaica, in 2018, the Maritime Authority of Jamaica (MAJ) and IBIA have renewed our appointment for next year, with the event scheduled to take place in the second week of September 2019. We will continue our discussions about the challenges the bunker industry faces as we prepare for the introduction of the IMO 2020 sulphur cap and bring to life they key issues that all bunker industry stakeholders will have to navigate over the next couple of years.

For more information and updates about our events, you can contact Sofia Konstantopoulou at sofia.konstantopoulou@ibia.net, or you can follow us on our active social media campaigns including LinkedIn, Twitter and Facebook

Bob Sanguinetti,Adrian Pask,Nigel Draffin,Ingo Knudsen,Steven Endress,Minas Hatzistamatiou

IBIA EVENTS

IBIA FLIES ITS FLAG HIGH

EVENT REPORT

IBIA ANNUAL CONVENTION 2018, COPENHAGEN Our most successful Convention to date delivered lots of quality content and ‘hygge’ Sofia Konstantopoulou reports

he International Bunker Industry Association (IBIA) welcomed a record breaking number of attendees from all over the world for our Annual Convention at the Scandic Kødbyen hotel, 6-8 November 2018 in the Danish capital city of Copenhagen. The IBIA Annual Convention is held annually in different countries around the world, featuring highly acclaimed speakers, sponsors and delegates. The IBIA Annual Convention 2018 brought together close to 200 stakeholders from across the sector, including bunker buyers/consumers, bunker providers (oil majors, independent suppliers, traders), regulators, port authorities, various service providers and consultants to forge connections, exchange views, educate and prepare for the changes ahead. IBIA arranged a dynamic series of sessions around diverse topics. We heard from a total of 52 speakers, panellists and moderators, expertly chaired by Unni Einemo, Director of IBIA and our IMO Representative. In addition to our two-day IBIA Convention, which consisted of 12 sessions, delegates had the opportunity to join our industry-leading IBIA Bunker Training Course and our Ethics Workshop.

Our event started on 6 November with the full day IBIA Bunker Training Course, which gave delegates a refresher on some of the more complex issues in bunkering and brought them up to speed on the latest developments and expectations for the post 2020 landscape. It covered commercial, operational and technical issues and was led by four experts in the bunkering industry: Nigel Draffin, a consultant and author of 12 books on bunkering, Trevor Harrison, Maritime Arbitrator and Mediator, Charlotte Rojgaard, Global Technical Manager, Bureau Veritas and Patrick Holloway, Partner, Webber Wentzel. The first part of the course was a “refresher”, covering the current market, procedures and regulations, a review of contractual relationships and a review of operational issues (measurement, sampling, delivery scheduling etc.). The second part was examining the planning and implementation for the 2020 regulations, bunker claims, fraud and ethics. Both parts of the course were supported by practical exercises.

On the same day, the ‘Ethics’ workshop took place, moderated by the J. Steve Simms, Principal, Simms Showers LLP and co-moderated by Victor Frederic Garcia Bragado Garzo, Head of Compliance, Monjasa. The full house interactive workshop lasting four hours started with some simple questions: What would you do? What is the right thing to do? What standards should the bunkering industry follow? The workshop mainly focused on how you can enhance the ethical culture of your company, and our industry in general, taking into consideration that ethical companies make more money in the long run, they attract and retain the best employees, and they have the most loyal customers. The Workshop featured case studies to work through, focused on how to implement IBIA’s new Code of Ethics and encourage others in our industry to embrace it. The workshop presented a unique opportunity for participants to interact and get to know each other better with frank discussions, and exchange ideas about best practices IBIA strongly believes that ethics could and should play an instrumental part in shaping and improving the industry, which is why we dedicated a whole session to this important topic during the Convention. World Bunkering WINTER 2018/19

Our industry is going through historical changes due to tightening regulations affecting the fuels we use, supply infrastructure, and the cost of doing business, which in turn will impact credit and risk management. Effective enforcement will play a crucial role to ensure successful implementation and a level playing field. All of these topics were examined during the Convention.

The Convention started with a very interesting panel discussion including short presentations with updates on the IMO 2020 regulation and views on compliance and enforcement, moderated by maritime regulations expert and consultant Niels Bjorn Mortensen. Panellist Maria Skipper Schwenn, Danish Shipping executive director, stressed the importance of preparation and planning for the switch from noncompliant to compliant fuels, and also that that it is up to the crew to manage different fuels which may not be compatible. Danish Maritime Authority special advisor Clea Henrichsen said Denmark has recorded a 95% compliance rate since the 0.10% sulphur emissions control area (ECA) came into effect and that sulphur content in the air had dropped by more than half. She said a law proposal is under consideration to make the names of gross ECA violators public.

Tsavliris Salvage Group principal George Tsavliris, meanwhile, spoke about a regulatory “cocktail of ignorance and hypocrisy” and the shipping industry’s mistake in being reactive rather than proactive. He said the shipping industry is not against regulation “but we need time to adapt”. The following session, meanwhile, heard from several ship operators who shared their concerns about the 2020 fuel challenges but also demonstrated that they were, in fact, taking the right steps to prepare to deal with it. Our next sessions covered digital technology tools to optimise bunker procurement decisions and the role of Blockchain in preparing for 2020, giving a platform for start-ups and industry technology experts to share their knowledge and pioneering digital ideas with the delegates. Summarising the benefits, Anne Katrine Bjerregaard, head of Green Ship of the future, stated that digitization can lead us to a better vessel performance and energy efficiency, better bunker planning, predictive maintenance, more efficient operations management and since all these factors lead to an increased transparency, we get optimal market conditions.

Tivoli Gardens

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EVENT REPORT

t was led by a panel of industry experts, who examined how ethics can be applied to positively influence the way the bunker industry operates and conducts business. IBIA is appealing to all of our members to join this important initiative by showing support for our Code of Ethics. It’s an aspirational statement and an important step towards our aim of promoting the adoption of a common set of ethical values across the industry. We believe that when the entire industry acts with the highest ethical standards that this will be to the benefit of us all. If you are interested in participating or finding more about IBIA’s Code of Ethics, you can visit our website www.ibia.net or contact us directly.

EVENT REPORT

Nigel Draffin-IBIA Bunker Training Course

Deanna Macdonald, Co-founder and CEO, BLOC, Blockchain Labs for Open Collaboration, raised a number of problems with the current state of affairs in the industry, such as the global fuel contamination crisis and a lack of verified information on low-sulphur fuels that comply with the upcoming global cap. She explained to us how Maritime Blockchain Labs is working with the marine industry on how to create a tamper-evident chain of documentation to allow for full traceability throughout the supply chain. Her co-panellist Steve Bee, Group Commercial & Business Development Director VPS, spoke about the complexity of the fuel supply chain with many stakeholders and participants, but currently little regulation, traceability, transparency or quality assurance. He also said we are already seeing a major increase in fuel quality issues, and he predicted that, unfortunately this will continue. He stated that in order to “help avoid another ’Houston’ scenario” all bunker suppliers should look to implement proper supply chain management. By using Blockchain to demonstrate increased product reliability and accountability, suppliers could differentiate themselves from those that do not. Moving to the Leadership Panel, moderated by Tomas Kristiansen, editor of ShippingWatch, Keld R. Demant, CEO of Bunker Holding Group, made very clear that in order to strengthen the industry ”We need to increase professionalism” and he sees a useful role for IBIA in moving this process forward. He also predicted that demand for credit could outstrip supply in 2020. Svend Stenberg Molholt, Chief operating Officer, Monjasa, said companies need to ‘re-engineer’ their business models to thrive and be prepared to be open to scrutiny in order to create the confidence needed to get credit from banks.

The IBIA Annual Convention 2018 used and interactive online platform which allowed delegates to ask and vote for questions to put to panellists, as well as allowing questions directly from the audience. It also offered delegates the opportunity to actively interact through multiple networking opportunities, including a welcome reception, eight networking coffee breaks, three lunches and the Convention Dinner. The dinner took place at the emblematic Tivoli, the second oldest operating amusement park in the world, where delegates enjoyed the beautiful lights of the Tivoli Gardens and the wonderful atmosphere of Groften restaurant, encapsulating the meaning of the Danish word ‘hygge’ while being treated to traditional Danish food and snaps. At the close of the Convention, Sofia Konstantopoulou, Global Head, Marketing & Events, on behalf of the IBIA Secretariat, thanked our Gold Sponsors and Supporters by presenting them with the Sponsorship Recognition Award as a token of appreciation and recognition for their support.

The IBIA Annual Convention 2018 would not have been possible without our sponsors’ active support, not only because of their financial contribution, but because they shared the same values and goals with us to inform, educate and create global networking opportunities within the industry. Our Gold Sponsors were Bunker One and GMA Petroleum Holding, our Supporters were Hong Lam Marine, Monjasa and Stena Oil, our individual Sponsors were Argus Media, Dan-Bunkering, Hafnia Law Firm, Simms Showers, Terpel, The Oil Market Journal and VPS, our Media Partners were Ship & Bunker and allaboutshipping.co.uk, and our Media Sponsors were efoplistes. gr, Manifold Times, Safety4Sea and WorldBunkering. The IBIA secretariat put in a huge amount of work to put on our Annual Convention and we are proud that it was so successful. We look forward to seeing you again at the IBIA Annual Convention 2019, if not before!

Unni Einemo

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IBIA CODE OF ETHICS

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

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

BEST PRACTICE • • • • •

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

SOCIAL RESPONSIBILITY • • • •

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

TRANSPARENCY • • • •

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

You can sign up to our Code of Ethics online: https://codeofethics.ibia.net/ World Bunkering WINTER 2018/19

NEWS

Maersk Pelican

REFINERIES “CAN PRODUCE ENOUGH 0.50% FUEL OIL”

The world’s refineries can produce more than enough quality 0.50% marine fuel oil (MFO) in 2020, according to a new report on the IMO’s 2020 sulphur emissions regulations for global shipping

he report’s author Bjarne Schieldrop, chief commodities analyst at Nordic corporate bank SEB, says: “All that is needed is a sufficiently high product price, i.e. around US$ 90/tonne less than gasoil.” The report also says: “Between 2020 and 2022, the first three years IMO regulations are in force, we expect MFO 0.5% to trade at a US$ 90/tonne discount to the Gasoil 0.1% price. Subsequently, we forecast the MFO 0.5% price premium to HFO 3.5% will fall towards US$90/tonne.” It adds: “We still expect a significant surplus of HFO 3.5% in 2020-22, as well as stock building and a sharply lower HFO 3.5% price. We forecast production of MFO 0.5% fuel oil will cause the Gasoil market to tighten, as middle distillates in the form of VGO are retained within MFO 0.5%. As a result, we still estimate the Gasoil to HFO 3.5% price spread will widen to more than US$450/tonne in 2020 and the MFO 0.5% to HFO 3.5% price spread to increase to over US$360/tonne, before slowly but steadily decreasing once again as the market adapts.” SEB says that the 28 EU countries can produce more than one million bl/day of MFO 0.5% by using the crude streams consumed in 2017.

“That is,” it says, “more than sufficient to cover domestic area demand as well as international bunkering taking place within EU28.” The report also observes: “The global shipping market is clearly moving down the scrubber path. Prisoners’ dilemma and first mover advantage considerations have caused scrubber installations to snowball. We expect this situation to continue unless it can be proved that scrubbers are damaging the marine environment.” To survive suppliers “must change business models” Physical fuel suppliers need to fundamentally transform the traditional models of supply in order to survive, according to Adrian Tolson, Senior Partner at the 20|20 Marine Energy maritime consultancy. Speaking ahead of SIBCON 2018, the industry’s largest bunkering conference, Tolson said that he believed that, as margins continued to dwindle, suppliers needed to look ahead to not only a post 2020 world, but also beyond as the industry’s requirements to deliver sulphur compliance converge with regulatory pressure and targets to reduce GHG emissions from shipping.

He argued that they must also utilise developments in technology, and access to data and intelligence to create sophisticated, and relevant models for the future marine energy supply chain. “Physical suppliers need to break out from the traditional model of solely delivering huge quantities of commodity in traditional large bunkering hubs with small margins as a means of hopefully staying in business and making a living; it is a negative downward spiral that will lead to insolvency. Even the current trend of looking for niche higher margin markets will be challenged and are not solutions to even mediumterm sustainability. And any windfall profits for physical suppliers post 2020 will be short-lived, with the main beneficiaries being the large commodity players, which will lead to a quick return to declining margins. They must understand that the marine energy supply chain is fundamentally transforming, and they need to not just stay ahead of the curve, but show leadership by driving it, as there are opportunities for those that can lift their heads and be visionary,” said Tolson. World Bunkering WINTER 2018/19

NEWS

Aegean granted restructuring approval Major global bunker trader and supplier Aegean Marine Petroleum Network Inc was granted interim approval by the US Bankruptcy Court for the Southern District of New York in late November for all of the company’s first day motions related to its voluntary Chapter 11 restructuring.

The large, cylindrical mechanical sails spin to create a pressure differential called the Magnus effect, that propels the vessel forward. The Rotor Sails will provide auxiliary wind propulsion to the vessel, reducing fuel consumption and associated emissions by an expected 7-10% on typical global shipping routes.

An Aegean statement said: “The approvals by the court immediately improve the company’s liquidity position, and ensure that suppliers, vendors, and employees, among other critical partners, continue to be paid in the normal course of business. Through the Court approvals, the Company has access to substantial capital during the restructuring process provided by the US$532 million Debtor-in-Possession credit facility funded by Mercuria Energy Group Limited, including an initial $40 million of incremental cash over the next 30 days to support operations.

“This project is breaking ground in the product tanker industry. While the industry has gone through decades of technological development, the use of wind propulsion technology onboard a product tanker vessel could take us to a new playing field. This new technology has the potential to help the industry be more cost-competitive as it moves cargoes around the world for customers and to reduce the environmental impact,” said Tommy Thomassen, Chief Technical Officer, Maersk Tankers.

“The Company continues to operate in the normal-course and all payments to suppliers and vendors have been made and will continue to be made during the relatively short anticipated duration of the Chapter 11 process,” said Donald Moore, Chairman of the Aegean Board. “The Court’s approval of our First Day motions is an important step forward in the restructuring process and enables access to incremental liquidity enabling the Company to continue to provide customers high quality service across our global network.”

Norsepower says the sails have completed rigorous land testing, including thorough testing of various mechanical and performance criteria, and are the first Rotor Sails to be class approved for use on a product tanker vessel. Lloyd’s Register’s Ship Performance team will acquire and analyse the performance data during a test phase to ensure an impartial assessment before technical and operational insights as well as performance studies are published.

The statement added: “In addition to providing the DIP to fund the Chapter 11 process and the company’s working capital needs, Mercuria is also acting as the stalking horse bidder in a sale process designed to maximize the value of the company as a going concern. The Asset Purchase Agreement, including the $681 million stalking horse bid proposed by Mercuria, has been filed with the Court.” Rotor sails fitted on Maersk tanker Norsepower, together with project partners Maersk Tankers, Energy Technologies Institute (ETI) and Shell Shipping & Maritime, has installed two Norsepower Rotor Sails onboard Maersk Tankers Long Range 2 (LR2) product tanker Maersk Pelican. World Bunkering WINTER 2018/19

Just-in-time sailing saves CO2 If sea-going vessels were better informed about the availability of berths and adapted their speed accordingly, substantial savings could be made in terms of fuel and CO2 emissions, according to a new study commissioned by the Port of Rotterdam Authority and research institute TNO. TNO and the Port of Rotterdam Authority, which is a member of the ‘Global Industry Alliance to support low carbon shipping’, analysed all the movements of container ships sailing to Rotterdam port in 2017. “By supplying more accurate information to ships, 4% – or 134,000 tonnes – of CO2 emissions can be saved every year,” explains Jan Hulskotte, Senior Researcher at TNO. “To do this, container ships would have to adjust their sailing speed by an average of 5%, and still arrive at the planned arrival time. And even more savings could be made if ships were better informed more than twelve hours before arrival.” The results of the study were presented at IMO during a meeting of the IMO Intersessional working group on the reduction of Greenhouse Gas emissions from ships. “In percentage terms, we’re talking about modest amounts,” says Astrid Dispert, Technical Adviser of the GloMEEP (Global Maritime Energy Eﬀiciency Partnerships) Project. “But it’s exactly these types of measures that can make a huge difference in the short term and help reduce the carbon footprint of marine shipping. Added to that, they’d also have a beneficial effect on the wallets of the shipping companies.”

Maersk Pelican

NEWS The study also examined the impact of shorter waiting times in anchorage areas for all ships sailing to Rotterdam. In the bulk transport sector, ships sometimes have to wait at anchor for hours or even days; mainly due to contractual obligations. Hulskotte: “If this waiting time was an average of 12 hours shorter, that would really make a difference in percentage terms, with an annual reduction of 35% in emissions. So we’re talking about 188,000 tonnes of CO2 and 1,000 tonnes of nitrous oxides.”

Verifavia in deals with big ship managers Emissions verification company Verifavia has signed deals with Wallem Ship Management in Hong Kong and Zeaborn Ship Management in Hamburg (a consolidation of ER Schiffahrt and Rickmers Shipmanagement), to conduct verification services for EU Monitoring Reporting and Verification (MRV) and the IMO’s Data Collection System (DCS), as well as certification of associated IT systems.

Through their agreement with Zeaborn Ship Management, Verifavia Shipping will provide EU MRV verification services as well as IMO DCS verification on most of their Liberia and Panama flagged vessels. It will also certify all of the IT systems used by Zeaborn Ship Management for these regulations. For Wallem, Verifavia will also provide verification services for EU MRV and IMO DCS across a number of its Liberia and Panama flagged vessels, as well as certifying the independent IT system, Vertex SMMS.

Port of Rotterdam

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FUEL ADDITIVES iStock

ADJUSTING TO LOW SULPHUR Additives of various sorts have been around for years but the impending 2020 sulphur cap may incline owners to take a closer look what is on offer

ajor global chemicals manufacturer Innospec has launched a new range of marine fuel additives formulated to help the shipping industry comply with the 0.50% sulphur limit which comes into force on 1 January 2020. The company’s executive vice president and chief operating officer Phillip Boon, said: “Innospec’s Octamar product range tackles the key issues of fuel stability, fuel compatibility, low temperature operability, lubricity improvement, combustion improvement and corrosion protection. Our products are also capable of improving SFOC – specific fuel oil consumption – bringing economic benefits. We also manufacture the all-important tank cleaning additives which will clean tanks, fuel systems and pipelines in a more cost-effective way than traditional methods.”

In the case of marine distillate fuel, both operators and fuel testing laboratories have reported a notable move toward fuels with higher wax contents which has an impact on cold flow properties, increasing the risk of waxy crystals forming if the fuel is exposed to cool temperatures while stored onboard.

The company says its Octamar Winter has been verified independently by Lloyd’s Register, and has been demonstrated to reduce pour point and cold filter plugging point (CFPP), by an average of 15°C and 10°C respectively.

Giorgio de Leonardis, Vice President EMEA, Innospec Fuel Specialties commented on the 0.50% cap: “This is by far the largest regulation relating to marine fuel impacting 75% of the fuel used by the shipping industry.” According to Innospec the recent shift to lower sulphur fuels in emission control areas (ECAs) has had many operational consequences.

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Fuelsave Container

FUEL ADDITIVES

his, Innospec says, brings about “many safety and financial benefits” to the end user including a reduced risk of fuel waxing and solidification - a risk in cold and even temperate climates. Fuel consumption reduction German additive manufacturer Fuelsave launched a containerised version of its FS Marine+ technology during the SMM 2018 trade fair in September, in Hamburg. The containerised system has been designed to provide ship operators with a more cost-effective, ‘plug-in-andplay’ version of its engine combustion optimisation and emissions abatement system. It is intended to enable shipowners to deploy the solution with minimum installation and ship preparation costs and without space constraints under deck, while enabling the system to be reusable from one ship to another. The development also facilitates the possibility of “hotswapping” the containers for service and maintenance requirements without impacting the shipping schedule.

Supplied in a conventional Twenty Foot Equivalent box for auxiliary engines or a Forty Foot Equivalent unit that incorporates a methanol tank for operation with both main and auxiliary engines, the FS MARINE+ Container generates a synthetic hydrogen-based gas, which is injected as an additive into the engine’s combustion air intake. According to Fuelsave, while hydrogen is proven to have a positive impact on emissions, its sole use has only a marginal effect on engine efficiency. However, when mixed with oxygen, water and injected methanol, combustion efficiency is improved while the engine’s air intake temperature is reduced, thus further optimising the combustion process.

It says that additional efficiency gains are achieved since intake air cooling is reduced to improve the performance of the turbocharger. “The result is improved efficiency through earlier, cleaner combustion. The system reduces soot on cylinders and decreases operating temperatures of all heat-bearing components, including cylinder heads and liners, pistons and valves, which contribute to lower costs in terms of maintenance and lubricant requirements. It extends engine lifetime,” said Sima. Efficiency improvements incorporated into the latest version of the system are said to allow more efficient electrolysis, with a lower power requirement and increased H2 production.

Fuelsave says its fuel additive technology has been proven to improve fuel consumption by up to 25%, cut CO2 and nitrogen oxide (NOx) emissions by up to 80%, FSN and PM by 40% and slash engine maintenance costs. The company says the development avoids the need for engine room modifications as only additional pipework is required to connect the FS MARINE+ Container to the engine. Company president Marc Sima said: “The development of a containerised system allows vessels where machinery space is limited to benefit from the FS Marine + technology. The FS MARINE+ Container is the complete engine optimisation package. It is an easy-to-install-and-maintain module that substantially reduces the costs of installation and operation.”

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RUSSIA

RUSSIAN BUNKER NEWS Olga Bogacheva reports on new developments on the country’s marine fuel scene

op-up booms for Baltic Sea terminals Petersburg Oil Terminal (POT) is trialling pop-up booms designed to contain possible oil spills around tankers during loading and discharging. The booms are anchored to the sea bed. The Rubezh system is the first of its kind at Russian oil terminals in the Baltic Sea. . The system is fully automated, operated by a single person. If started remotely, the compressor, air hoses and cable winches can block off a section of the water surface just in a few minutes. After completion of loading or unloading operation of the moored vessel the booms are lowered back to the bottom. The total length of the two oil boom strips exceeds 500 metres. “Handling of oil in the Gulf of Finland requires maximal environmental safety. However, we strive to use state-of-the-art equipment, which will not interfere with navigation and will allow to optimize our logistics,” Michael Skigin, Chairman of POT’s Board of Directors, commented. The equipment was manufactured by Lessorb, a Russian company from Bryank region which specialises in oil spill containment products. If the trials are successful POT will buy both sets of popup booms. The main risk factor for pop-up boom operations is the ability of the anchors to hold the system to the sea bottom. World Bunkering WINTER 2018/19

The Rubezh system has never previously been used offshore in cold regions, so its reliability will be put to the test during the forthcoming St. Petersburg winter.

A total of 15 LNG Arc7 ice-class tankers, with a capacity of over 170,000 cubic metres each, will be used in Yamal LNG project.

Russian environmental protection regulations require booms to be in place around tankers while berthed or moored. The current practice is that booms are installed by specialist vessels at the Baltic oil terminals of the Baltic ports. In summer POT purchased two boom setting vessels with six crews working round the clock in three shifts at each ship.

“This voyage opens a new era in the supply of Russian LNG to the growing markets of the APR countries. The use of the Northern sea route allows us to reduce delivery time and transportation costs, which is crucial for the development of our fields in the Yamal Peninsula and Gydane,” NOVATEC press service quoted Leonid Mikhelson, the Chairman of the Board of the company.

Boom installation around a tanker takes about an hour if performed in the traditional way. Rubezh automated complex requires less than 10 minutes to do the same job. POT has four deep water tanker berths for vessels of up to 100,000 dwt and one bunkering berth as well as two smaller berths for inland navigation tankers. The terminal handled 6.4 million tonnes of oil in 2017. Russian LNG for China via the Northern sea route NOVATEK PJSC has delivered the first batch of LNG from the Yamal LNG plant to China via the Northern sea route (NSR). Delivery of LNG from Sabetta port took 19 days. Supply along the traditional route through the Suez Canal and the Strait of Malacca takes 35 days.

NOVATEK PJSC is one of the largest independent natural gas producers in Russia. Established in 1994, the company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The company’s fields and licensed areas are located mainly in the Yamalo-Nenets Autonomous district, the world’s largest LNG production region, which accounts for about 80% of gas production in Russia and around 15% of world gas production. NOVATEK is a public joint stock company. Global Depositary Receipts of the company are listed at the London stock exchange (LSE) designated as NVTK. Turnover of Russian cargo in steady decline at Baltic states and Ukraine ports Russia is trying to reduce its reliance on ports in Lithuania, Estonia, Latvia and Ukraine for its international trade.

RUSSIA The Ministry of Transport has announced that, in the first half of 2018, cargo volume through these ports decreased by 7.5% to 22.2 million tonnes. The share in total transshipment decreased from 6.51% in the first half of 2017 to 5.88%. But Russia remains highly dependent on its neighbours’ ports. This is particularity so with the transshipment of mineral fertilizers, grain and ore in the Baltic states. In the south there is a shortage of terminals for coal and other dry bulk cargoes. The Russian government plans to gradually replace the use of foreign ports through the development of port projects in Taman, Ust-Luga and Murmansk. LNG terminal at Vysotsk An LNG terminal has been built at KriogazVysotsk. NOVATEK, the developer of the project, plans to start LNG production in late 2018 or early 2019. After the launch of the first phase, with annual capacity of 660,000 tonnes of LNG, a decision will be taken about construction of a second phase, with an additional annual capacity of up to 1 million tonnes. NOVATEC plans to complete the second phase in 2021.

Far East-based RFC operates a fleet of 14 vessels. RN-Bunker joins Association RN-Bunker, a subsidiary of Rosneft Oil Company has joined the Russian Association of Marine and River Bunker Suppliers. The company supplies fuel and provides bunkering services in many Russian sea and river ports and has offices in Nakhodka, Vladivostok, YuzhnoSakhalinsk, Arkhangelsk, Murmansk, St. Petersburg, Novorossiysk, and Tuapse. It was established in 2008 and currently its Russian market share is approximately 25%. Where possible, RN-Bunker uses the infrastructure of its parent company, including marine terminals in the ports of Nakhodka, Arkhangelsk and Tuapse, for shipment of petroleum products. St. Petersburg bunker companies claim against Murmansk Shipping Company Gazpromneft Marine Bunker has submitted the claim for bankruptcy proceedings against Murmansk Shipping Company (MSC), the Russian shipping press has reported.

According to the Moscow Arbitration Court, the amount of the claim is 110,000 euros. This is not the first lawsuit against MSC from the bunker companies. It was reported that Baltic Fuel Company has claimed about 300,000 euros, and LUKOIL-bunker about 265,000 euros from the shipping company. These claims all relate to bunkers supplied to MSC which has a fleet of 20 vessels, mostly of a strengthened ice class, and works mainly in the North Atlantic and Arctic basins. The company was established in 1939 and privatized in 1993. Until 2005 it operated Russian nuclear-powered icebreakers. MSC’s share of the regional transportation market has gradually declined as its main customers, developers of natural resources, have built their own fleets of ice class ships, or gone to other more efficient carriers.

LNG will be delivered for bunkering and exported to the European market. Lower charges for LNG-powered vessels Two ports of the North-Western region, Primorsk and Ust-Luga, have reduced port charges for LNG-powered tankers. These vessels now pay 90% of the normal rates in these ports. RN-Bunker in long-term fishing fleet deal Russian Fishery Company (RFC) and RNBunker (a Rosneft subsidiary) have signed a 5-year contract for marine fuel supply which will be based on a pricing formula. RN-Bunker will deliver up to 340,000 tonnes of marine fuel for ship engines and gas turbine installations to RFC. “This contract lets RN-Bunker increase sales of marine fuels in the domestic market directly to the shipowners and leads to the expansion of the client base,” an RFC representative noted.

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RUSSIA

Proposal to force producers to supply crude oil to Russian refineries Russian oil companies may be obliged to deliver at least 17.5% of their crude oil production to domestic refineries, according to a report in business newspaper Kommersant. Commentators attribute this initiative to Rosneft, the largest refinery owner with a 36% of crude oil refining in Russia. They believe that the idea is intended to reduce the cost of raw materials and would be a form of subsidy for Rosneft’s least efficient and oldest refineries. If this proposal goes ahead, the cost of petroleum products in the domestic market may be reduced to some extent. Gazprom plans to invest more in LNG bunker technologies During the recent Eastern Economic Forum, the most important business event of the Far East, where strategic decisions are announced, a number of media reported that Gazprom intends to build coastal LNG infrastructure for fuelling of ships and to begin construction of LNG-powered bunker barges of various classes. Nothing more specific was reported, but the journalists recalled the words of Alexey Miller, the head of the gas monopoly, about registering interest from foreign companies in the Asia-Pacific region in LNG bunkering projects.

Sovcomflot in LNG bunkering negotiations with NOVATEK and Gazprom Neft Sovcomflot is negotiating with NOVATEK and Gazprom Neft on the bunkering of their vessels with LNG, Eugeniy Ambrosov, Sovcomflot first Deputy General Director said recently. “Certainly, we are involved in negotiations with our clients, major oil and gas companies. Russian NOVATEK and Gazprom Neft are among them,” he said.

Earlier Sovcomflot and Shell Western LNG signed an agreement to supply LNG as fuel for the first series of Sovcomflot’s new Aframax tankers. These tankers, specially designed to operate on natural gas, will be engaged in products trades, primarily in the Baltic Sea and in Northern Europe. Sovcomflot Group (SCF Group) is Russia’s largest shipping company with an owned and chartered fleet of 147 vessels with a total deadweight of 12.7 million tonnes. Of these vessels 79 have ice class. Sovcomflot participates in servicing major oil and gas projects in Russia and the world: Sakhalin-1 and Sakhalin-2, Varandej, Prilazlomnoye, Novy Port, Yamal LNG and Tangguh (Indonesia). Presidents of Finland and Russia call for the use of LNG as a marine fuel in the Arctic Vladimir Putin has described as “totally right” a proposal by the president of Finland, Sauli Niinistöthe, to use LNG as a marine fuel in the Arctic. His comments came during a joint press conference. This idea has been made public several times, but a complete lack of infrastructure remains a significant challenge to its practical implementation. However the project now clearly has high level support which means it could be funded and implemented quickly.

According to the Sovcomflot Deputy Director, LNG use allows the shipowner to save up to US$5 in daily tanker operating expenses. “The move to LNG fuel is comparable with the technological revolution of the early 20th Century, when the world merchant fleet abandoned the use of coal in favour of oil, fuel oil and diesel fuel,” he added. World Bunkering WINTER 2018/19

World World Bunkering Bunkering WINTER WINTER 2018/19 2018

LNG

LNG “COULD ALLOW 40% CARBON CUT” Some environmental groups are challenging the use of LNG as an interim marine fuel but an industry project indicates using LNG, together with an innovative design could bring large reduction in greenhouse gas emissions

n the ongoing debate on the EU’s 2050 Decarbonisation Strategy environmental group Transport & Environment (T&E) argued recently that powering European ships with batteries, hydrogen or ammonia would decarbonise the fleet and require only half the amount of renewable electricity that “less efficient solutions like synthetic methane or synthetic diesel” would need. That’s according to the sustainable transport group which has published a Roadmap to Decarbonising European Shipping. T&E argued that solutions such as synthetic methane and synthetic diesel have major drawbacks. It said: “Their apparent physical properties are similar to their fossil equivalents, making it difficult for authorities to distinguish them and enforce their use. They also require far higher amounts of renewable energy than batteries, hydrogen and ammonia. Moreover, synthetic methane suffers from methane leakage and slip – as does fossil LNG.” It said that further investment in gas bunkering infrastructure would lock EU countries into using LNG, which does not offer a path to decarbonisation and in some cases is worse than other fossil fuels. “Such investment would also open the way for synthetic methane,

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which is inefficient and difficult to enforce. The small amounts of biofuels that can be produced sustainably would be better used in sectors which have no alternatives to using liquid fuels, such as aviation.” The lobby group’s shipping officer, Faig Abbasov, said: “We need to avoid wasting lots of time and money on solutions that can’t deliver shipping decarbonisation. The biggest pitfalls are biofuels, which can’t be scaled or enforced sustainably, especially in shipping. LNG and synthetic methane are other dead ends due to methane leakage and enforcement problems.” Many in the shipping industry would disagree with T&E’s analysis. The Project Forward initiative led by Athens-Based Arista Shipping, with major marine engineering company Wärtsilä as one of the participants, is said to demonstrate that with LNG as fuel, an advanced hull design, and highly efficient propulsion machinery, it will be possible to meet the IMO’s target for a 40% reduction in carbon intensity by 2030. Model tests of the Project’s concept vessel indicate that the Energy Efficiency Design Index (EEDI) is well below the currently most stringent Phase III level.

The EEDI reflects the CO2 emissions per transport work and is a measure of carbon intensity. EEDI Phase III is applicable to ships built after 2025 and signifies a 30% reduction from the 2008 reference level. Project Forward reports that this reduction in CO2 emissions target can be met, even without lowering service speeds, through the use of carbon neutral fuels mixed with LNG. Such carbon neutral fuels can be transported, stored, and consumed in a similar way to that of fossil LNG. “Through the advanced engine technology available today, LNG has a clearly superior well-to-wake emissions profile compared to liquid fuel. LNG appears not as a transition fuel, but the fuel of tomorrow and for many years to come,” says Antonis Trakakis, Technical Director at Arista. The concept vessel’s hull form has been optimised in cooperation with Finnish ship designer Deltamarin and classification society American Bureau of Shipping (ABS). “Deltamarin has a long history in energy-efficient ship designs where hull form development has always been one of the spearheads,” says Tommi Hietamäki, Project Engineer at Deltamarin. LNG News Round-up

LNG

“T

he efficient propulsion design concept for Project Forward is based on a novel arrangement featuring just two highly efficient Wärtsilä 31DF engines without auxiliary gensets. The project is totally in line with Wärtsilä’s Smart Marine vision that foresees an era of concept solutions delivering optimal efficiency, safety, and environmental sustainability,” says Johnny Kackur, General Manager, Wärtsilä Marine Solutions.

“As a global leader in gas, ABS is collaborating with innovative companies and organisations to support the delivery of technologies that minimise the environmental impact of shipping,” says Elias Kariambas, ABS Regional Business Director, Greece. “The Project Forward vision to create an efficient, environmentally-protective,

long-haul bulk carrier is perfectly consistent with the ABS mission, and we are proud to contribute to the joint effort.”

LNG-fuelled tanker’s Arctic trip The Lomonosov Prospect, Sovcomflot’s large-capacity tanker using LNG fuel as its primary fuel, has successfully completed a commercial voyage along the Northern Sea Route (NSR) to deliver a cargo of petroleum products from the Republic of Korea to Northern Europe.

“We are excited to conduct the protocol with Arkas Bunkering as it is an important step to supply LNG as an alternative marine fuel in Turkey and the surrounding seas. Now, we are developing ship-toship LNG bunkering Supply in Tokyo Bay, Japan, and believe our knowledge at Tokyo bay will contribute to business development in Turkey.”

Shell and Sovcomflot in LNG bunkering firsts Shell recently delivered its first ship-toship LNG stem from its specialised LNG bunker vessel, Cardissa. Shell comments: “This operation marked a number of other firsts, as it fuelled the Sovcomflot vessel Gagarin Prospect, the world’s first LNGpowered aframax tanker. It was also the first ship-to-ship LNG bunkering to take place in the Port of Rotterdam.”

The high-latitude voyage from Cape Dezhnev at Chukotka to Cape Zhelaniya of the Novaya Zemlya archipelago took the Arc4 vessel 7.8 days to complete, during which the tanker covered a distance of 2194 nautical miles. Turkish LNG bunkers deal Arkas Bunkering has signed a protocol with Japan-based Sumitomo Corporation for the use of LNG as bunker fuel in Turkish and nearby seas. Arkas Holding President Lucien Arkas said recently: “We invest for the future in our fields of operations and make accurate projections, both of which add value not only to our company but also to our nation and clients. The importance of sustainability is becoming even more evident day by day, and using alternative fuels takes the lead as a measure in environmental preservation. Alternative fuels will be introduced for compliance with the new regulations.” Sumitomo Corporation General Manager of Oil, LPG, Offshore Business Department Shu Nakamura said:

MPA joins SEA\LNG The Maritime and Port Authority of Singapore (MPA) has become the third port to become a member of SEA\LNG, joining Port of Rotterdam and Yokohama-Kawasaki International Port Corporation (YKIP) within the group, it was announced recently. MPA has been carrying out its LNG Bunkering Pilot Programme (LBPP) since 2017 to test operational protocols and accumulate experience to ensure LNG bunkering operations are conducted safely, efficiently, and reliably. To bring Singapore to the next stage of LNG bunkering, the MPA also awarded a total of S$6m (US$4.4m) to two companies to co-fund the building of two LNG bunker vessels. To be delivered as soon as in 2020, these would be the first of their kind in Asia and will facilitate shipto-ship LNG bunkering in the Port of Singapore.

In addition to Arista Shipping, Deltamarin, ABS and Wärtsilä, the French LNG membrane containment system designer GTT is also involved in the project. The vessel is fitted with an LNG tank positioned mid-ship.

The company adds: “The fuelling of the Gagarin Prospect with LNG is the first operation under the LNG fuel supply agreement between Shell and Sovcomflot signed in 2017. This pioneered the expansion of LNG fuel into the tanker industry and, in general, for vessels not tied to fixed routes or set timetables.”

$182m Investment in Avenir LNG Stolt-Nielsen, Golar LNG, and Höegh LNG Holdings have announced a combined investment commitment of US$182m in Avenir LNG “to pursue opportunities to deliver LNG to areas of stranded demand, as well as the development of LNG bunkering capabilities”. The investment will be contributed as cash and equityin-kind and will fund the construction of six small-scale LNG carriers, a small-scale storage terminal and regasification facilities. Stolt-Nielsen remains the largest shareholder of Avenir LNG with 50% ownership while Golar LNG and Höegh LNG each hold a 25% share.

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LPG

VLGCS TO BURN LPG Two new LPG carriers will break new ground by using LPG as fuel

echnology group Wärtsilä says it will provide an integrated cargo handling and fuel gas system for two new LPG carrier vessels for Belgium-based shipowner Exmar. The ships are being built at Hanjin Heavy Industries & Construction Philippines (HHIC-Philippines) in Subic Bay. The design of these ships focuses on high efficiency and a more sustainable operational profile. In achieving this, these 80,000m³ Very Large Gas Carriers will be the first vessels capable of running on LPG. This valuable order with Wärtsilä was booked in July, 2018. Wärtsilä has more than 50 years of experience in the gas carrier business, and the company’s latest technologies have been utilised to offer ‘LPG as fuel’ as a fully integrated part of the cargo handling system. The system is controlled by the state-of-the-art Wärtsilä Nacos Platinum integrated automation system in combination with the company’s remote process analytics software, which ensures optimised operability and safety.

The Wärtsilä Nacos Platinum automation platform combines and visualises data from the bridge navigation and communication controls, the engine room, and the cargo control centre. This integrated solution enables high energy efficiency with lower carbon emissions, providing a positive Energy Efficiency Design Index (EEDI) for the vessels. The integrated automation notably reduces both building and operating risks. Wärtsilä will also deliver its Airguard anti-pollution shaft sealing system, which provides extra security against oil leaking into the sea. The propeller shaft mounted additional ‘air barrier’ ensures complete separation of the stern tube oil from the seawater. The Wärtsilä equipment is scheduled for delivery in mid-2019, and the vessels are expected to be delivered during the latter part of 2020.

“Wärtsilä has worked closely with Exmar Group for many years, and we are proud they have selected such a broad scope of our products, which have been combined into a smart marine solution for this new generation of LPG carriers. Wärtsilä’s integrated solutions are designed to promote sustainable shipping and a lower total cost of ownership with life cycle optimisation,” says Timo Koponen, Vice President, Processing Solutions, Wärtsilä. “These are ‘game-changing’ gas carriers and our aim has been to achieve the best possible operational and economic performance, while at the same time, ensuring the lowest possible environmental footprint. Wärtsilä’s systems and solutions will help us meet these targets,” says Pierre Dincq, Managing Director Shipping, Exmar. “Exmar has extensive experience with a variety of fuel systems, including HFO, MDO and LNG fuelled steam turbines. Adding LPG as a fuel to this array of fuel systems will be beneficial to Exmar’s reputation as a gas transportation expert.”

Exmar’s new Very Large Gas Carriers will feature Wärtsilä technology that enables them to operate on LPG fuel

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INNOVATION

Viking Princess ©Tom Guldbrandsen

NEW TECHNOLOGY REDUCES GENERATOR USE Energy storage a “future-proof solution” for cutting fuel consumption

idesvik’s offshore supply vessel Viking Princess can now operate with only three generators instead of four after a retrofit of an energy storage solution based on the Switch DC-Hub at its heart. Yaskawa Environmental Energy division, The Switch, says the move will help the 5,381 GWT ship save around a tonne of fuel every day. One of the ship’s main generators has been replaced by batteries connected to a DC-Hub. This energy solution allows the shipowner to reduce the operating costs, fuel consumption and emissions associated with the previous generator that is no longer needed. According to Asbjørn Halsebakke, general manager at The Switch in Norway, this demonstrates a clear path forward for an industry where cost and sustainability are key. “A generator is one of the most vital components for producing energy on board a vessel,” he notes. “The shipowner therefore required technology that was not only trailblazing in terms of the benefits it delivers, but also proven, effective and reliable.” “Eidesvik has a long history of success with solutions from Yaskawa Environmental Energy / The Switch. These systems are currently on numerous vessels within the fleet,

and Eidesvik was keen to invest in this trailblazing technology. The fact that this was the first time such a solution has ever been approved by DNV GL gave them even greater peace of mind.” Halsebakke asserts: “We believe this is the future of shipping. The DC-Hub is simple, reliable, robust and very cost effective. It allows vessel generators to run at optimal efficiency, with batteries taking the strain of any necessary load changes. This significantly reduces fuel consumption – and therefore operational cost and environmental impact. What’s more, any potential power source – such as wind generators, fuel cells or solar panels – can be easily connected to the DC-Hub. This makes it an ideal future-proof solution for all shipowners,” Halsebakke continues. New Wärtsilä Hybrid Centre “will boost sustainable shipping” The technology group Wärtsilä has opened a new Hybrid Centre, said to be the first of its kind in the world in Trieste, Italy. The facility is intended to enable further development and deployment of the Wärtsilä HY hybrid power module, while at the same time providing customers with the possibility to experience the benefits of the Wärtsilä HY. It will also be used to train crews and provide hands-on experience for technicians.

The centre comprises an engine, batteries, power drives, a propeller load simulator utilising an electric motor, a power take off/in motor generator, together with the overall energy management system, the ‘brain’ of the Wärtsilä HY. It will be capable of simulating operational data from the field, which will then enable optimisation of the hybrid system to reach unprecedented levels. Wärtsilä says that the investment will boost the environmental sustainability of shipping by providing owners and operators the chance to experience and familiarise themselves with the technology and accelerate the introduction of hybrid systems to the marine market. Successful testing has already been carried out on Wärtsilä’s patented electric start-up procedure, utilising the power from batteries to deliver a smokeless start of the main engine. “Wärtsilä’s Smart Marine approach to delivering greater efficiencies, improved safety, and enhanced sustainability is once again demonstrated with this innovative Hybrid Centre. This unique concept clearly shows the commitment we have to leading the industry towards a cleaner and more cost-effective future,” says Stefan Wiik, Vice President, Marine Power Solutions, Wärtsilä.

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New control systems for sail assisted power As part of the ongoing strategy to prepare its EnergySail and Aquarius MRE for commercial release, Eco Marine Power (EMP) has released details of its automated control and monitoring systems. These will enable EMP’s technologies to integrate with existing ship-based systems and “facilitate the seamless operation between EMP’s renewable energy platforms with other equipment on ships including fuel flow meters,” the company says. Three marine computer systems jointly developed with KEI System Ltd will be integrated to provide a “robust,

reliable and easy to operate control and monitoring platform for all elements of Aquarius Marine Renewable Energy (MRE)2. The systems are the Aquarius Management and Automation System (Aquarius MAS), the EnergySail Automated Control System (EnergySail ACS) and Aquarius Integrated Management System (Aquarius IMS). EnergySail ACS is used for automated control of the EnergySail’s either as standalone units or as part of an array. Aquarius MAS manages EMP’s ship solar power system including monitoring the charge controllers and hybrid battery packs. Laser technology cuts piston wear US-based Federal-Mogul Powertrain (FMP) is developing laser processes to give future piston rings for large bore engines (LBE) unprecedented wear resistance. The techniques are said to offer an environmentally friendly, longterm alternative to galvanic coatings and are the latest step in the company’s continuous research into new surface treatments that will meet the challenges of future engine and fuel developments in the marine and industrial sectors.

The company says that trends to reduce operating costs and emissions are driving future engine designs, both 2-stroke and 4-stroke, and will result in heavier loads and increased temperatures for piston rings. Operators are requiring reduced friction, fuel and oil consumption, as well as increased time between overhauls, with ring lifetimes of 24,000 hours or more expected. The worldwide introduction of low-sulphur fuels from 2020 and the increased market share of gas and dual-fuel engines will present additional tribological challenges for piston rings and cylinder liners. FMP asserts that meeting these challenges requires ring materials with high dimensional stability as well as coatings with low coefficients of friction, high scuff resistance and low piston ring and cylinder wear rates. “We are constantly developing advanced new technologies, in order to stay ahead of emerging trends in the global marine market,” explains Peter Arndt, Director and General Manager for Large Bore Engine Rings, Federal-Mogul Powertrain. “Laser processes offer exciting possibilities for surface enhancement and can be applied to a wide range of base materials including both grey iron and SG iron.”

PASSION TO

PERFORM Worldwide Bunker Trader. Best in Class for Italian Ports.

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INNOVATION

n addition to being used to validate hybrid technologies, the centre will also welcome customer groups to learn in very practical terms the technical aspects of the Wärtsilä HY, as well as the value adding benefits it offers. Additionally, the energy generated by the centre will be fed to the factory grid to provide sustainable power to the company’s production facilities.

ETHANE

ETHANE FUEL FIRST Slow-speed marine diesel engine converted to operate on ethane as a fuel

avigator Gas, in partnership with charterer Borealis, engine manufacturer MAN Energy Solutions, cargo system and fuel gas supply system supplier TGE and classification society ABS, has completed the successful conversion of the Navigator Aurora’s main engine from LNG to ethane, while berthed alongside at Frederikshavn in Denmark. ABS-Classed Navigator Aurora is a 35,000 cbm Ethylene/LPG Carrier, delivered in August 2016, equipped with a MAN B&W 6S50ME-C8.2-GI dual fuel (HFO/LNG) burning engine, which has now been converted to a dual fuel (HFO/Ethane) 6S50ME-C-GIE engine. Navigator Gas Fleet Manager Mark Macey said “The success of the ME-GIE conversion project is the culmination of four years of close co-operation between Navigator Gas, Borealis, ABS,

ABS Consulting, TGE, MAN Diesel & Turbo, Northern Marine and the Liberian administration. There has been excellent co-operation between all parties concerned, culminating in the successful completion of this historic conversion.” “This is the second MAN ME-GI conversion ABS has been involved in, demonstrating we have industry-leading experience in gas as fuel and in providing guidance on converting ships and engines to operate on natural gas or other alternative low flashpoint fuels such as ethane,” said Peter Fitzpatrick, ABS Vice President, Global Business Development. “This is the latest example of how ABS is collaborating globally with innovative companies such as Navigator Gas to support the delivery of technologies that minimize the environmental impact of shipping and reduce greenhouse gas emissions,” said Patrick Janssens, ABS Vice President, Global Gas.

The 15-day long conversion followed engine performance and emissions testing at Kawasaki in Japan, to prove the principle that burning ethane in the Navigator ME-GI engines would be possible. The trials were successful and demonstrated that suitable power and emissions performance, meeting Classification and statutory requirements, was available at a fuel gas injection pressure of just over 300 bar. Paul Flaherty, Director of Fleet and Technical operations at Navigator Gas, said: “This project represents a significant investment by both Navigator Gas and Borealis that clearly demonstrates a very strong commitment to environmental protection and the reduction of greenhouse gas emissions. This retrofit modification will comply with all current global emissions regulations and position us as early adopters of the global sulphur cap regulation due to come into force on the 1st of January 2020.”

Navigator Aurora. First to be cnverted to use ehane as fuel

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AFRICA

Petromoc has expanded out of Maputo and the southern Mozambique Channel ©Gustavo Sugahara

A NEW IMPETUS As John Rickards reports, the African scene is stirring once again

fter several years of market variability and challenging conditions, both oil production and bunker supply markets across Africa have seen fresh investment and expansion from players both old and new over the past year. By far the biggest and longest-established international supplier serving the West African market is Monjasa. The company has made significant moves to boost its service in the region over the past year. It is twelve months since Monjasa took the 120,000 dwt product tanker SKS Darent on time charter and deployed it as floating storage for its 10-strong WAF bunkering fleet off Lomé in the Gulf of Guinea. The SKS D-Class vessel allows the loading, discharge and blending of multiple fuel grades and is the largest ship in Monjasa’s fleet. In September, the company bought the 8,200 dwt tanker African Sprinter which had originally been on a three-year bareboat charter to Monjasa. Speaking at the time, group CEO Anders Østergaard said: “This was the right moment to assume definitive control of the African Sprinter and further strengthen ownership across our supply chain in West Africa. This acquisition is also an example of how the West Africa bunker market is developing. Just 10–15 years ago, West Africa was not able to offer a reliable bunker supply whereas today, the region offers quality tonnage and buying conditions matching Rotterdam, Las Palmas or South Africa.” World Bunkering spoke to Monjasa to get the full picture.

WB: Is the African Sprinter deal something you’d expect to see more of when the opportunity arises? How much of a difference does it make in a challenging market to have tonnage owned rather than on charter? Monjasa: Monjasa is always in the market for quality tonnage across our physical supply areas. The market for quality oil and chemical tankers suitable for bunkering operations is very competitive. So whenever the right opportunity arises, we are ready to seize it. We are thus claiming additional ownership of the supply chain as we already control all sourcing and storage of oil products. WB: What difference has having floating offshore storage capacity made to Monjasa’s WAF business? Monjasa: The aim is to strengthen the backbone of our West Africa logistics and offer more flexibility for our customers taking different kinds of fuel in the region. The SKS Darent comes with state-of theart specifications, e.g. offering six double valve segregations, and we saw her as an excellent solution for current and future trading requirements. WB: Overall, how has the company’s African business fared over the past year? Do you expect to see any developments in the coming months, particularly with the 2020 sulphur cap only a year away?

Monjasa: We see a steady demand across the West Africa region and we believe that our operating model will bring further opportunities come 2020. Already at this point, our customers are increasingly looking for a safe port when it comes to product quality and a clear document trail across sourcing, shipping and supply. Together with a decade of experience this is what we bring to the market. Right now, we are working with the oil majors and large commodity trading firms to understand product specifications and availability, to ensure we can provide our customers with the right product, at the right place. Linking product supply with product demand means engaging in dialogue with ship owners and oil majors. We need to learn how ship owners will meet the IMO sulphur cap, scrubbers or new compliant fuels, and where oil majors intend to make their range of products available. Based on this, we will determine how and where to make different products available in our global physical setups. We generally see and hear support for the upcoming regulations and we are ready to play our part to ensure a smooth transition.

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AFRICA

WB: The past few months have seen a number of bunker suppliers either expanding or launching new operations across Africa and from the outside at least it seems as though the market has stabilised somewhat. Is that a fair assessment? How would you describe the current outlook? Monjasa: With a decade of experience in this market we see suppliers come and go. But we are here to stay. The market remains volatile and the ability to adapt operation capacity accordingly is an important parameter for everyone in the future, including Monjasa. Companies boost investment One supplier bumping up its African services is Gulf Petrochem (at the time of writing, the company’s rebrand to GP Global isn’t yet complete). In late 2017, GP added a dedicated southern and sub-Saharan African trading desk to its Rotterdam office. The company was already involved in a joint venture in Ghana supplying bunkers in Tema, Takoradi and offshore, and owns Aspam Energy (formerly Essar Petroleum East Africa) in Kenya. One of the three-strong trading team was put to work as a trader covering East Africa, while the other two covered South Africa. “The addition of a dedicated Southern Africa and Sub-Saharan Africa Trading Desk will further support our global client base providing them informed insights into the trading dynamics of the region,” said Group director Prerit Goel, “The two regions have tremendous growth potential and are central to the new global trade links that are being fostered, especially with China’s One Belt, One Road initiative. The regions have a strong role in meeting global demand for commodities and serve as a vibrant market for developed and developing nations in meeting their demand for raw materials.” World Bunkering tried to reach Gulf Petrochem for an update on the first year of trading for its new desk, but it was unavailable for comment.

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Another firm adding to its existing reach is wide-ranging shipping services company GAC. GAC’s South African arm, based in Cape Town, added Port Elizabeth to its port range last spring, having used a sub-agent there prior to that. The company is offering bunkering in the port alongside other ship services. On the east coast, meanwhile, Petromoc Bunkering, a joint venture between state-owned oil distributor Petroleos de Moçambique and Switzerland’s Augusta Energy has expanded its supply service in the Mozambique Channel, launched last year, by adding the northern port of Nacala to its network. The company’s hasn’t expanded its tonnage serving the region - its current tanker, the MT Prima, is still the only vessel the company has in the Channel - but adding Nacala and its offshore environs to the coverage area alongside Maputo in the south certainly expands its reach. Petromoc said it was “highly confident that the new bunkering service in/ offshore Nacala will provide additional satisfaction to many first class buyers”. The company offers both IFO 180 and low sulphur MGO. Another market in line for an offshore bunkering upgrade is Ghana, according to the country’s then-energy minister Boakye Agyarko in his opening remarks to this summer’s Oil & Shipping Africa conference in Accra.

As widely reported in the Ghanaian press, Agyarko told delegates that a designated ship-to-ship bunkering zone would be created outside Tema and Takoradi ports and would allow for better security in bunkering operations. “Central to our plans to build a petroleum hub in Ghana is our ability to provide a regulatory environment that ensures investors of safety and security against piracy and other maritime crimes,” Agyarko was quoted as saying by Ghana’s Joy Online. “These bunker zones, that will include both anchor and drifting zones, will ensure a drastic reduction in the risk of piracy during offshore bunker operations, improve maritime security, enhance collection of tariffs, curb illegal fuel smuggling, adulteration of fuel and unscrupulous blending fuels maintaining thereby, higher standards of fuel quality in our region and improve on regulatory monitoring and compliance.” Minister Agyarko was sacked by President Akufo-Addo three weeks after making those remarks for misleading the administration over a contentious energy deal. Hopefully, the proposed offshore bunkering zones go ahead as planned. At the start of the year, the country’s National Petroleum Authority announced a tougher tax and charges scheme for MGO in Ghana in a bid to curb fraudulent or outright falsified bunker calls and the illicit diversion and sale of marine fuels onshore.

GP already has fuel interests in Kenya ©Make It Kenya Photo/Stuart Price

AFRICA

pstream, Canadian production and heavy oil upgrading company Genoil inked a deal in February with CAP Energy to develop oil fields in the MSGBC Basin (Mauritania, Senegal, The Gambia, Guinea Bissau and Guinea Conakry), the company’s first African venture. While the deal covers a wide range of exploration and development aspects, it will also see Genoil looking to make the most of any opportunity to employ its ‘hydroconversion upgrader’ (GHU) desulphurisation process in the region.

More than half of the existing wells are in depths of only 100 metres which facilitates ease of exploration. There is huge potential in the region which is evidenced by the discoveries by Kosmos Energy and Cairn Energy, the latter being adjacent to blocks licensed to CAP Energy. We will be working with CAP and our Chinese partners to both maximise opportunities for our GHU low sulphur technology and provide the investment required to develop these exciting prospects.”

The GHU process, the company says, allows for the conversion of heavy crude into sulphur limit-compliant oil much more cheaply than traditional desulphurisation processes.

World Bunkering approached Genoil for an update on the project but unfortunately it wasn’t possible to get one before going to press. Nevertheless, with the IMO 2020 sulphur limit coming up fast, the possibility of future local production of lower-sulphur feedstock can only be a good thing for the West African market, if the Genoil-CAP partnership reaps dividends.

Speaking at the time of the deal, Genoil’s chief operating officer Bruce Abbott said: “The MSGBC Basin is about one-third of the size of the Gulf of Mexico.

The IMO’s own efforts to provide resources to future-proof operators against tighter environmental regulation and improved performance will also hopefully help in this respect. The organisation’s network of Maritime Technology Cooperation Centres, funded by the EU, came online at the end of last year, with the African centre hosted by Jomo Kenyatta University in Mombasa. The centres are supposed to provide resource points for all parties to better deal with energy efficiency efforts and regulations, with carbon emissions reduction the next major field for heavy regulation after sulphur. Speaking at the launch, Bruno Pozzi, deputy head of the EU’s delegation to Kenya, said, “Mombasa as one of the major ports in Africa is a fitting host city for Africa’s Maritime Technology Cooperation Centre. This opportunity should be seized to the maximum. I invite all African states with maritime shipping activities to collaborate with the Africa MTCC.”

The African Sprinter has joined Monjasa’s owned fleet after being on charter ©Monjasa

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ENVIRONMENT IMO terreace with flags

IMO MAKES PROGRESS ON 2020 PREPARATIONS Speculation that there may be a delay in implementing the 0.50% sulphur limit has once again been rebuffed, but safety concerns persist. Unni Einemo reports on outcomes from MEPC 73 and MSC 100

Renewed doubts about the timely implementation of the 2020 sulphur limit, sown by media reports ahead of the 73rd session of the IMO’s Marine Environment Protection Committee (MEPC 73), have hopefully been put to bed. Speculation was rife that a proposal from a group of large flag states and shipping organisations, suggesting an experience building phase (EBP) due to concerns about the safety of low-sulphur fuels, would lead to some form of delay. Moreover, MEPC 73 discussed a proposal from Bangladesh calling for a delay to implementing a ban on the carriage of bunkers above 0.50% sulphur (unless ships have approved abatement technology), citing concerns about the availability, safety and cost of compliant fuels. It said the ban should not be adopted “until the economic availability and sufficient supply of low sulphur fuel oil is ensured” with a particular emphasis on the damaging effect of the expected cost increase. Several developing countries supported the proposal from Bangladesh, but a clear majority of countries wanted the carriage ban to go ahead without delay. It was adopted and will take effect from 1 March, 2020. IBIA made a statement to MEPC 73 during discussion of the proposal,

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saying; “We sympathise with the fears of developing countries, the least developed countries and small island developing states that higher transport cost may have a negative impact on their economies. However, the paper from Bangladesh seems to suggest that delaying the high sulphur fuel oil carriage ban equals a delay to the implementation of the 2020 sulphur limit. This is not the case. It is simply a tool facilitate enforcement of the global sulphur limit more effectively. It is feared that without effective enforcement, the temptation to cheat will be enormous, putting those that do comply at a huge commercial disadvantage.” Bangladesh was not alone in entertaining the misconception that the global sulphur limit won’t take effect until the carriage ban is in force; it’s an idea that has been heard in several quarters. IBIA has explained at every opportunity – in articles and at conferences - the sulphur limit will take effect on 1 January 2020. There will be no delay. IBIA also told MEPC 73: “Industry planning and preparations are already well underway with substantial investments being made both in the refinery sector and among shipowners to meet the 2020 deadline. If we move the target now, those preparations will be thrown into disarray.

We do understand fears that there could be insufficient availability of good quality compliant fuels. However, ships that encounter genuine non-availability situations should be able to use the standardised fuel oil non-availability report to be developed by IMO in line with Regulation 18.2 of MARPOL Annex VI to prove that they were unable to obtain compliant fuel.” The standardised fuel oil non-availability report has yet to be agreed and will be up for discussion at the 6th session of the IMO’s Sub-Committee on Pollution Prevention and Response (PPR 6) in February 2019, along with other aspects of 2020 implementation guidelines that have yet to be agreed, such as sulphur verification issues and control mechanisms. MEPC 73 did, however, complete guidelines on preparatory steps for ship operators and best practice guidance for bunker suppliers, both of which IBIA contributed to. Ship Implementation Plan Guidance on ship implementation planning approved by MEPC 73 will assist ship owners in preparing for the use low sulphur fuels to comply with the 2020 sulphur limit. The ship implementation plan (SIP), which is not mandatory, can help ship owners/operators plan and demonstrate the steps taken to prepare individual ships for compliance by 1 January 2020.

ENVIRONMENT

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lements covered include a risk assessment and mitigation plan regarding the impact of new fuels; fuel oil system modifications and tank cleaning (if needed); fuel oil capacity and segregation capability; and bunkering plans in the lead-up to the compliance date, plus how the switch can be documented. IBIA contributed to the practical advice contained in two appendices to the SIP regarding impact on machinery systems and tank cleaning. The appendix addressing the impact on machinery systems contains advice on how to prepare for use of distillates, fuel oil blends, or both. “Ships that are equipped to deal with a multitude of fuel types, by having multiple segregated tanks and the ability to heat or not heat fuels in each tank, will be in the best position to deal with the market reality in 2020. It is therefore prudent to inform owners that even distillates may need heating during operations in cold climates and hence tank heating capacity should be retained,” IBIA told MEPC 73. The second appendix to the SIP on tank cleaning is a shortened version of an IBIA document submitted to the IMO. IBIA’s document highlighted the safety and compliance risks associated with the option of simply “flushing through” fuel systems for ships that have used high viscosity high sulphur fuel oil (HSFO), as remaining HSFO residues sticking to various surfaces would dissolve/dislodge and could cause problems with excessive sludge and contaminate compliant fuel making it exceed the sulphur limit. However, some shipping organisations felt that the appendix needed to mention that just flushing through HSFO fuel systems (i.e. not cleaning tanks first) until they are sufficiently clean is also an option.

Options described in detail in IBIA’s document include manual cleaning of tanks during dry docking, manual cleaning during service, and cleaning tanks in service with specialised additives. Supplier best practice MEPC 73 approved the IMO’s “Guidance on best practice for fuel oil suppliers for assuring the quality of fuel oil delivered to ships”. It was largely based on IBIA’s best practice for fuel oil suppliers provided to MEPC 72. A group of co-sponsors; representing both the shipping industry and the fuel oil supply industry, cooperated on primarily editorial changes of IBIA’s original document in a bid to produce guidance that would be acceptable to all parties and aligned with other IMO guidance. The co-sponsors were IBIA, ICS, INTERTANKO and IPIECA. The Best Practice focuses on quality control for oil-based bunker fuels during production, in the supply chain and during transport, storage and transfer. It includes recommendations for sampling and testing to be conducted and documented at each point of product custody transfer throughout the supply chain. Records of custody transfer of cargoes, certificates of quality, sample seal numbers and quality analysis reports should be documented. IBIA is proud to have assisted in the process allowing for the IMO guidance document to be finalised in just two MEPC sessions. Combined with the best practice guidance for buyers/purchasers approved at MEPC 72, and the draft best practice for Member States/coastal States, all aspects of quality control will be addressed. Hopefully this will help all stakeholders in ensuring better understanding of what it takes to ensure that ships are provided with bunker fuels that meet their regulatory and operational requirements.

Work on the Guidance on Best practice for Member States/coastal States did not progress during MEPC 73 as it was felt that the draft had too many areas without consensus or a satisfactory conclusion. MEPC 73 agreed to reestablish the Correspondence Group on Fuel Oil Quality to continue working on it and submit a draft for finalisation and approval at MEPC 74. Quality discussion continued at MSC The proposal for an experience building phase (EBP) received substantial support at MEPC 73, especially from the countries that had also supported the proposal to delay the effective date of the carriage ban. The proposal said the EBP should include “a systematic and evidence-based process for reviewing and possibly improving” the regulatory framework under MARPOL Annex VI. However, the prevailing view was that talk of an EBP resulting in a potential review of MARPOL Annex VI would send the wrong signal and cause uncertainty about the 2020 sulphur limit implementation. The open-ended suggestion that the EBP might lead to future regulatory amendments was seen as particularly worrisome as parallels would inevitably be drawn to the EPB and the implementation delay associated with the Ballast Water Management Convention. But it was clear that fears regarding the safety of using compliant fuels are not going away. The question is what the IMO can actually do about it in a way that doesn’t undermine efforts to ensure compliance with the 2020 sulphur limit.

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Meanwhile, IBIA was also a co-sponsor of MEPC 73/5/17, advising the Committee about the progress made on an initiative to develop industry guidance as part of a multi-stakeholder exercise to address the safety issues associated with new low sulphur fuel blends or fuel types. Two expert groups of representatives from 16 organisations across the shipping industry, the refining industry, bunker suppliers, standards organisations and other interested parties have been established and the drafting of the cross industry guidance is underway. A key objective of this initiative, set in motion by IPIECA and OCIMF, is to create a unified industry guidance that helps mitigate any safety and operational issues that may arise. The first draft is expected to be discussed at PPR 6. Fuel safety issues were also addressed at the 100th session the Maritime Safety Committee (MSC 100) in the first week of December, where it was agreed that fuel safety matters should be addressed by MSC separately and independently from MARPOL Annex VI. It will be added as a new work item to the agenda at MSC 101 with the title “Development of further measures to enhance the safety of ships relating to the use of fuel oil”. Concrete proposals were invited to MSC 101. There will still be overlap between MEPC and MSC on the subject of how to enhance the IMO’s GISIS reporting system to achieve a better overview of fuel safety related reports. IBIA made the point during MSC 100 that the information submitted also needs to be vetted because at present, some of the information on GISIS is questionable.

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States urged to report availability of compliant fuels States that are parties to MARPOL Annex VI are supposed to inform the IMO of the availability of compliant fuel oils in their ports using a dedicate GISIS module. Liberia put a proposal to MEPC 73 to “issue a resolution urging States to report the availability of compliant fuel oil well in advance of 1 January 2020 to enable shipowners and operators to gain experience on the carriage and use of the new fuels on their ships and with proposed ship implementation plans” to enhance a smooth and effective transition to the new regulatory requirements. The proposal was generally supported at MEPC 73, which is hardly surprising. Of course it would be a good thing if information about availability of compliant fuels was widely available to help ship operators plan and prepare for the new sulphur limit. However, to achieve this, member states would really have to up their game as the GISIS module, at the time of writing, indicated that only three countries have availability of fuels that comply with MARPOL Annex VI and there is no indication as to when availability data was submitted which makes it hard to tell if the information is current. Apart from the need for member States to actually report availability, there are some commercial realities which make it challenging to do this effectively as well. First of all, it will be difficult for authorities to give assurance about availability on some future date, because until there is demand for fuel to comply with the 0.50% sulphur limit, suppliers in general won’t be offering it. Secondly, oil companies are unable to report in any detail on future plans for supply due to competition laws. So while there was consensus at MEPC 73 that early reporting of availability of 2020-compliant fuels is desirable, it was not clear how this can be done effectively, but it was agreed to issue an MEPC circular urging states to report availability.

HFO ban in the Arctic? Discussions about measures to reduce risks of use and carriage of heavy fuel oil as fuel by ships in Arctic waters centred on developing appropriate methodology to conduct an impact assessment on Arctic communities and economies of a proposed ban on HFO. The gist of the discussion at MEPC 73 suggests that not just appropriate methodology, but also results of impact studies, will be submitted to PPR 6 for consideration. If the benefit of a ban on HFO is seen as outweighing the potential negative economic impact, a ban might be proposed next year for approval in principle at MEPC 74. GHG strategy follow-up MEPC 73 approved a programme of follow-up actions of the Initial IMO Strategy on reduction of GHG emissions from ships. The programme is chiefly a planning tool for how to bring the work forward, with no concrete measures agreed as yet. Draft terms of reference for the Fourth IMO GHG Study were discussed but not agreed, with a view to approval at MEPC 74. Draft terms of reference for the fifth meeting of the Intersessional Working Group on Reduction of GHG emissions from ships (ISWG-GHG 5) were approved, expected to take place just prior to MEPC 74. Proposals on concrete measures were invited to these meetings and it is hoped that MEPC 74 will manage to move this work forward, starting with tightening existing IMO instruments on energy efficiency and lay the groundwork for the more fundamental changes needed to achieve the IMO’s stated goal of cutting GHG emissions from global shipping, compared to 2008 levels, by at least 50% by 2050. There’s much work and consensus building to be done.

ENVIRONMENT

n summary, it was agreed to invite more refined proposals to MEPC 74 with the scope restricted to enhancing the implementation of Regulation 18 of MARPOL Annex VI with regards to reporting issues around fuel oil quality and non-availability, including proposals for ways to enhance the IMO’s reporting system, GISIS, for data collection and analysis.

SCRUBBERS

MORE OWNERS OPT FOR SCRUBBERS Orders build up as 2020 sulphur-in-fuel deadline approaches but Singapore’s intended ban on the use of open loop scrubbers is proving controversial

recently completed survey of Exhaust Gas Cleaning Systems Association (EGCSA) members reports a rapidly accelerating uptake of marine scrubbers with 71 scrubbers ordered in May 2018. All the indications since May have been that this trend is continuing. According to EGCSA the number of ships with exhaust gas cleaning systems installed or on order stood at 983 at the end of May 2018, . This follows a slew of recent scrubber orders by major ship operators, including Spliethoff, Frontline, DHT and Star Bulk, who have opted for exhaust gas cleaning systems. EGCSA says that, with uptake of scrubbers across the global shipping fleet on the rise, shipowners are expected to spend more than US$20BN billion over the next five years on exhaust gas cleaning systems. It notes that, back in 2015, in readiness for the switch to 0.10% sulphur fuel,

a number of ro-ro and ferry operators led the way and opted for scrubbers as a means of compliance. The cruise industry came next and now, with 2020 looming, bulk carriers have taken over as the leading shipping sector to adopt exhaust gas cleaning, with container ships and tankers following. In each of these sectors retrofit open loop installations predominate. Nearly 60% of all retrofits and new building installation works take place in Asian yards, which carry out nearly 85% for new build installations. EGCSA director Don Gregory believes that, “although there has been a surge in demand, yard capacity is not an issue going forward. However other constraints such as the availability of laser scanning specialists and experienced installation teams mean that it may not be possible to pick and choose an installation slot nor coincide a scrubber installation with an already scheduled drydock in the near future.”

For this reason, he explains, several scrubber manufacturers are now taking options through to 2023 to enable ship-owners to secure a position on the installation timetable. Until relatively recently, the largest installed exhaust handling capacity was for engine powers in the region of 25 to 30MW. However, EGCSA comments that the latest data shows that this has been “well and truly exceeded by a retrofitted hybrid system for a 72MW container ship engine”. It points out that large capacity scrubbers are not confined to retrofits as the maximum size new building installation is a hybrid system for a 65MW engine. Of the 983 vessels with scrubbers installed or on order, 63% have opted for open loop scrubbers; confirming it as the most popular exhaust gas cleaning system. EGCSA points out: “It is the simplest scrubbing system and favoured by ship crews,” Don Gregory explains.

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lthough many early adopters in the North Sea and Baltic fitted hybrid systems, they are operated in open loop the majority of the time. Open loop scrubbing has also been used for years by coastal power stations and by oil tanker inert gas (IG) systems when in port without environmental issues. When announcing the survey results ECGSA commented that, while closed loop and hybrid systems are available for enclosed bodies of water with little water exchange or where discharges are restricted by local regulation, it suggested open loop operators switch to low sulphur fuel for port stays where open loop operation is not possible. It advised: “The cost impact is likely to be limited as over 90% of fuel consumption is during ‘full away’ at sea, which is where the financial benefits of scrubber-related fuel savings really accrue.” However when, at the end of November, the Singapore Maritime and Port Authority (MPA) unexpectedly announced that the use of open loop scrubbers in its waters would be banned from 1 January 2020, ECGSA complained in no uncertain terms. It said the decision “came without prior notice or discussion with the IMO despite the fact that the Singapore MPA is a signatory to MARPOL Annex VI”. An EGCSA statement continued: “The MPA provided neither scientific evidence for its decision nor was the industry invited to consultation. If there had been discussion, the Singapore MPA might have realised the high risks to human health resulting from the high toxicity of low sulphur fuels and more toxic distillates if no exhaust gas cleaning systems are used.” It also claimed that using 0.50% compliant low sulphur fuel oil would contribute to higher particulate matter discharge and poorer air quality in Singapore. EGCSA added “As the pronouncement by the MPA is likely to have a significant effect on crude carriers operating inert gas plant discharging into Singapore refineries and storage facilities as well as all other vessels visiting Singaporean waters, it is disappointing that the Singapore MPA has been less than open about its plans and has not, as far as we can tell, based its decision on proven scientific findings.”

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World Bunkering understands MPA did in fact consider a range of expert opinion and scientific studies before reaching the decision but clearly did not consult stakeholders such as EGCSA. The industry group argued that ships operating an inert gas plant had discharged process water from open loop scrubbers in the port area for over 50 years. “No studies,” it continued, “have been published that indicate measurable harm to the marine environment. Nor has the operation of open loop scrubbers at numerous facilities on land such as power station shown to be detrimental to waterways or the environment. In fact, Asia has adopted flue gas desulphurisation (FGD) for several power stations. They include Mawan (1.8GW) in Shenzhen, Guandong province, China, Tanjung Bin (2.1GW) in Malaysia, Paiton (1.4GW) in Indonesia, Manjung (2.1GW) in Malaysia. The FGD installation at Mawan has been listed in China’s Cross Century Green Project Plan and the Blue Sky Project programme by the government of Guangdong Province and is regarded as a model by the Chinese National Environment Protection Bureau for other seawater flue gas desulphurisation (SWFGD) projects. Around the world there are 50 GW of Alsthom installed sea water scrubbing systems for FGD. Alsthom’s sea water scrubbing process has been recognized and approved by several environmental agencies around the world. In the working draft of the European IPPC Bureau’s Council Directive 96/61/EC on Integrated Pollution Prevention and Control, Alstom’s SWFGD is included as a BAT (Best Available Technique) and described under 3.4.1.2 Seawater Scrubbing.” It must be said that Singapore is not alone in moving against open loop scrubbers and some shipowners are cheering Sinapore on. For instance the president and CEO of tanker operator Tsakos Energy Navigation (TEN), Nikolas Tsakos, has described the decision as a “small victory”. P&I insurer The American Club notes that the use of open loop scrubbers has been banned in the German section of the River Rhine, Belgium and the US Commonwealth of Massachusetts the use of open-loop scrubbers has been banned. It adds: “Recent reports suggest that China may be the next to outlaw open-loop scrubbers on its rivers. Similar bans may well be imposed in the ports of other nations.”

Nevertheless the club also comments: “These announcements are troubling for owners who have already invested millions in exhaust gas cleaning systems in anticipation of the IMO sulphur cap in 2020. The open-loop scrubber system has been the preferred option for most shipowners who have chosen scrubber installations, which are seen by many as the most practical and economic solution. Data shows that nearly three-quarters of the total systems installed are open-loop systems, the majority of which are closedloop-ready (convertible into a closed system at a later stage). Hybrid scrubbers account for 22% of the total, while closed scrubbers account for only 2%.” When World Bunkering asked the International Chamber of Shipping for a comment a spokesperson said that the use of exhaust gas cleaning as an equivalent means of compliance is permitted in the regulations and that means whatever a shipowner uses to comply with MARPOLVI regulation 14 (i.e. whether to use distillate fuel, the newer hybrid fuels, exhaust gas cleaning or alternative fuels such as natural gas and methanol) is a commercial decision to be taken by them. He added: “The decision of Singapore to ban open loop marine scrubber discharges will be one of the factors taken into consideration.” Meanwhile US-based classification society ABS has updated the ABS Advisory on Exhaust Gas Scrubber Systems (Scrubber Advisory) providing deeper insights into installation and operational considerations for existing vessels. “Many in the industry are still evaluating their 2020 Global Sulphur Cap compliance options, trying to determine their most cost-effective and operationally suitable solution,” said ABS Senior Vice President Technology and Engineering, Derek Novak. “As the 2020 compliance deadline nears, we are seeing an uptick in new orders for scrubbers for both new construction and existing vessels.” The updated Advisory provides background on the different types of available scrubber technologies along with the associated installation and operational challenges during new construction and retrofitting of existing vessels. ABS says that it introduced the world’s first scrubber-ready notation, providing guidance for owners who are planning to retrofit their vessel with a SOx scrubber at a future date. It adds that,

SCRUBBERS

by looking ahead during the design phase and accounting for possible future retrofits, owners are better prepared to cost-effectively manage future regulatory requirements. ABS also published the ABS Guide for Exhaust Emission Abatement which applies to vessels fitted with an exhaust emission abatement system, including SOx scrubbers, selective catalytic reduction (SCR) and exhaust gas recirculation (EGR) systems for nitrogen oxide (NOx) emission control.

ACL, a Grimaldi Group company specialized in transatlantic cargo shipping, has hybrid PureSOx scrubber systems installed on all five of its Generation 4 (G4) vessels: Atlantic Sail, Atlantic Sea, Atlantic Sky, Atlantic Star and Atlantic Sun.

Scrubber manufacturer Wärtsilä says that a “major European container shipping “ has ordered hybrid exhaust gas cleaning equipment and retrofit services to its container vessels, worth euros170 million. Wärtsilä Services will deliver 50 MW, 60 MW and 70 MW Wärtsilä hybrid scrubber systems which will be retrofitted to its container vessels. It says that these are solutions which have the flexibility to operate in both open and closed loop. When operating in open loop mode, it uses seawater and in closed loop mode seawater with an additional reagent to remove SOx from the exhaust, helping to reduce emissions in coastal and sea areas. Wärtsilä will also provide engineering and site advisory services for the vessels.

The need to prepare for the new emissions cap is coinciding with an another IMO requirement, to according to Gibraltar-based Gibdock.

The PureSOx systems on these vessels will now be retrofitted with the Alfa Laval Remote Emission Monitor (ALREM), a data reporting and storage device that forms the basis for the growing PureSOx connectivity programme.

With owners required to respond to new rules on invasive species and emissions,

the Western Med’s gateway repair facility is nonetheless seeing a stronger than expected surge in interest in ballast water management system and exhaust gas scrubber work. Richard Beards, Managing Director, Gibdock, attributes the upturn in inquiries to the yard’s enduring advantages of location, quality of work and on-schedule redelivery. “We have undertaken significant ballast water work over the last 18 months and in the first half of 2018 we have had more enquiries than ever before,” says Mr Beards. “At present, it’s fair to say that there are more conversations around ballast water retrofit installations than scrubber retrofits, but both are fast becoming areas of focus for customers. Some of the discussions relate to turn-key projects, but others are more about preparations onboard before installation.”

Wärtsilä says that using new scrubber unit design, water cleaning system mode, and the engineering and advisory services will allow more operational efficiency and compliance with the new IMO Marpol regulation’s emission level. While Wärtsilä’s customer has not been named, the Grimaldi Group, a long-time Alfa Laval PureSOx customer, has signed an agreement for Alfa Laval’s PureSOx connectivity services on five vessels operated by Atlantic Container Line (ACL). The services will provide not only compliance monitoring, but also use the data to optimise PureSOx operation. The Grimaldi Group has been using PureSOx for exhaust gas cleaning aboard its vessels since 2014. Wartsila has large orders for hybrid scrubbers

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LUBRICANTS

GETTING READY FOR 2020 Manufacturers offer range of lubricants to prepare for 0.50% sulphur limit

Marine lubricant choices to address IMO’s restrictions on the fuels used by ships from 2020 must be based on verifiable cylinder oil performance data and engine testing to cover all operating conditions, according to the new General Manager of Shell Marine, Joris Van Brussel. “Recent months have seen some movement by mainstream shipowners towards exhaust gas scrubbing to meet the 2020 marine fuel sulphur cap,” said Van Brussel recently. “These customers will continue using high sulphur heavy fuel oils with two stroke engines, and demand lubes that are proven to protect cylinders against cold corrosion under extreme stress, such as Shell Alexia S6 or the higher BN Shell Alexia 140. “However,” he noted, “with just over a year to go before the new restrictions enter into force, a significant part of the market will shift to fuels with less than 0.50% sulphur, where other cylinder oil formulations with a lower BN number is expected to deliver optimum performance.”

“Today, the work we do at MPIC has to be part of that multi-faceted strategy for customers that has developed into MILES, where we address the most pressing operational concerns customers have,” continued Van Brussel. Meanwhile Chevron Marine Lubricants has developed a brand-new range of cylinder lubricants compatible with virtually all the 2020 compliance options. A recent Chevron statement emphasised that a diversified marine fuel mix demands tailoring lubricant selection to fuel sulphur content to ensure compatibility with fuels bunkered across a fleet. The company said that its new Taro Ultra range of lubricants delivers the same high performance and protection expected from Chevron’s Taro engine lubricants, with the added benefit of being compatible with almost all engines,

marine bunker fuels and abatement technologies. Chevron said: “The full range of Taro Ultra products cover the needs of the vast majority of vessel owners, from Taro Ultra 25 which is compatible with low sulphur fuel, distillates and many alternative fuels, to Taro Ultra 140 which is ideal for applications using high sulphur bunker fuels that require scrubber emission abatement technology.” “We are performing a rigorous and extensive program of field testing with leading OEMs, demonstrating the strong performance of our lubricant offering. In addition to our trusted supply network, we are delivering the reassurance and supply security our customers need during the transition,” said Luc Verbeeke, Senior Product Development Engineer at Chevron Marine Lubricants.

He added that the two-stroke product portfolio for 2020 was largely in place, but Shell realised that there would be a requirement for significant volumes of higher BN cylinder oils to be replaced by BN40 or BN70 grades. Shell continuously uses test engines installed at the unique Marine & Power Innovation Centre (MPIC) in Hamburg, “putting promising formulations through their paces in the most extreme conditions oils can face before field trials and OEM validation tests”. Latest work at MPIC is focusing on the final tests of a new 40BN cylinder oil for two stroke engines that is already undergoing field trials and is expected to be available in the market in the early part of 2019.

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Joris Van Brussel

BLENDING

IMO

GOING LOW It is now clear that by 2020, shipowners will have the option of buying blended fuels complying with the 0.50% sulphur limit but the emerging picture is a complex one

hen the 0.50% sulphur-infuel cap was initially being debated at IMO the working assumption was that ships would have to use distillate fuel, such as MGO, unless they were fitted with scrubbers. In the event oil companies around the world have been busy developing blended fuels that comply with the cap and will be a potentially cheaper alternative to distillate. However, with roughly a year to go before the 0.50% limit will come into force, there are a lot of uncertainties regarding these new fuels. Classification society Lloyd’s Register (LR) has published an overview of the very low sulphur fuel oil (VLSFO) scene. LR notes that two of the main concerns at this time are the longterm storage stability of blended fuels and compatibility between two different bunkers. Stability is mainly a supplier’s issue as they are responsible for supplying a stable blend to the vessel. However, controlled mixing or complete segregation onboard between two potentially incompatible fuels is the vessel’s responsibility. Hence there needs to be an increased awareness amongst all stakeholders on issues which can originate from unstable fuels and two stable but incompatible fuels.

To help ship operators, LR’s testing arm FOBAS is looking into the existing compatibility test method and any alternative methods which may be more suited with the new fuel formulations. This compatibility issue could be a real problem as the VLSFO’s offered to meet the 0.50% sulphur limit will likely vary much more in composition and nature than the heavy fuel oil blends mostly used today. The International Organization for Standardization is working on a publicly available standard offering guidelines for fuel suppliers and users regarding 0.50% sulphur marine fuel but that is not likely to be published until late 2019. Certainly at the moment the oil companies appear to be keeping the details of the blends they are developing to themselves. For example Shell says that patents are pending on its new residual fuel formulation which is designed for engines rated to use ISO 8217 residual fuels. Shell says that it is” a relatively low viscosity, low density fuel oil with good ignition properties”. It is possible that VLSFO fuels will fall into two groups; fuels that are mainly paraffinic and fuels that are mainly aromatic in their composition. LR comments: “There is high probability of paraffinic blends making their way into marine bunker market,

which will not only increase the need to address higher pour points but also the general cold flow properties of fuels. It is expected that the majority of the 0.50% VLSFO will be light residual products with viscosity between the current distillate (DM) and residual (RMG) grades of ISO 8217. Moreover, relatively lighter blends would make it easier for any catfines to readily separate however this may warrant increased monitoring and cleaning to remove accumulated catfines from tank bottoms.” “Whilst at this time not many 0.50% products are around,” LR adds, “our data indicates that there are naturally low sulphur heavy fuel blends being supplied in specific areas around the world such as South America, West Africa and North Africa. Moreover, due to 0.50% Chinese emission control regulation, we have also been receiving 0.50% fuels which are most likely blended products to comply with the regional 0.50% sulphur regulation. LR’s FOBAS team have started to develop the characterisation of the 0.50% VLSFO with the currently available fuels and will continue to do this as these fuels come to market, This is expect to rise as we come closer to 2020, and in particular when Taiwan and China bring in the requirements for 0.50% operations in their port areas and three main SOx emission control areas respectively.”

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Its CCC5 sub-committee completes drafting of interim guidelines for formal approval by the Maritime Safety Committee in 2020

MO’s sub-Committee on Carriage of Cargoes and Containers (CCC5) has prepared draft interim guidelines covering the safety of ships using methyl/ethyl alcohol as fuel. This is a move towards including methanol in the International Code of Safety for Ship Using Gases or Other Low-flashpoint Fuels (IGF Code), which currently has provisions focusing on the use of LNG. The draft guidelines, which were agreed at the end of the sub-committee’s most recent annual meeting, completes the work undertaken by the Correspondence Group on Development of Technical Provisions for the Safety of Ships using Low-flashpoint Fuels and are designed to provide for the safe design and operation of ships using methyl/ethyl alcohol as fuel. CCC5 invited the 100th meeting of the Maritime Safety Committee in December to endorse the referral of safety topics which require further input to other technical sub-committees for their consideration with feedback to CCC6 in September 2019.

Interim guidelines should be ready for formal approval by MSC in the first half of 2020. “This work was the culmination of a huge amount of effort by multiple stakeholders and industry participants who contributed to both the correspondence and working groups’ efforts over the past several years,” said Chris Chatterton, Chief Operating Officer of the Methanol Institute. “We would like to thank in particular the IBIA for allowing us to contribute to this effort as well as to the various flag state members and NGOs for their respective contributions.” The Methanol Institute points out that the fuel is already safely in use as a marine fuel onboard seven tankers operated by Waterfront Shipping and the ropax ferry Stena Germanica. Multiple test bed and pilot projects have also confirmed Methanol’s viability as a marine fuel. The ultimate goal is to add a new chapter on methyl/ethyl alcohol to the IGF Code.

CCC5 agreed that draft interim guidelines should be finalised urgently, with a commitment to add new section to the IGF Code as soon as possible. “The maritime industry faces significant challenges in terms of meeting 2020 emissions standards and the longer term goal of the IMO’s targets for greenhouse gas reduction,” added Chatterton. “Methanol is compliant with 2020 and provides a pathway to achieving carbon emission targets. These guidelines and ultimately its inclusion in the IGF Code are a further milestone to achieving a cleaner, more sustainable maritime industry.” The agreement is another step forward for methanol as a viable and credible marine fuel. In July this year the IMO invited the International Organization for Standardization (ISO) to develop a standard for methyl/ethyl alcohol as a marine fuel and a standard for methyl/ethyl alcohol fuel couplings.

The ro-ro ferry Stena Germanica is using methanol as fuel

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METHANOL

IMO MAKES PROGRESS ON METHANOL

MIDDLE EAST

Oman has been pushing hard to make itself an attractive bunkering destination ©Matthew Smith

OPPORTUNITIES AMID TURBULENCE Politics have cast shadows over parts of the Middle East bunker market in recent months, but some areas have seen new developments, as John Rickards reports

iplomatic developments have threatened to throw a wrench into the Middle Eastern bunker market this year. The Trump administration’s unilateral re-imposition of sanctions on Iran just as the Islamic Republic was reemerging as a player on the downstream scene, Iran’s claim in August to control the whole Middle East Gulf (a claim it has not reiterated since), and the knock-on effect of all this on crude prices, could see stronger market conditions for suppliers in the traditional hubs on the other side of the Gulf. At the time of writing, though, Saudi Arabia was still embroiled in the aftermath of the murder of Jamal Khashoggi and the longevity and extent of Western governments’ diplomatic objections to that killing, given the country’s key role in the oil industry, and their hands-off stance on Saudi’s already-controversial involvement in Yemen, remains to be seen; calls for asset freezes or sanctions have already quietened. One of the main physical suppliers in UAE waters is Oil Marketing & Trading International. The company has six bunker tankers in operation in the region around Fujairah and was therefore ideally placed to give World Bunkering a ground’s-eye view of the current situation in this key bunker hub.

The magazine spoke to OMTI’s managing director George Gaviotis to find out more. WB: With the overall oil market seeming to be a little more optimistic after a very challenging few years, how has OMTI’s bunker business fared? How have volumes/ vessel numbers been over the past few months? GG: The reasons behind the optimism are more or less known but Fujairah margins have mainly improved on the back of higher ex-wharf prices in Singapore and uncertainties over the quality of bunkers in Singapore.

Along with the increase in cargo costs of course there has been an increase in margins. OMTI as well as all other suppliers have enjoyed this respite. Volumes have increased over time (but marginally) as well as the number of ships calling (significantly). Our market share has more or less remained stable with an increase in number of vessels supplied. WB: The year has seen fresh sanctions and uncertainty surrounding Iran; has this benefitted suppliers serving Fujairah and the UAE?

Queues of ships waiting for Suez transit make a tempting market for bunker suppliers ©IMO

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WB: With the 2020 sulphur changes only a year away and some suppliers and producers beginning to urge ship operators to adopt new fuels early, are you seeing any changes in demand for different products? How ready is OMTI for those changes? GG: There has been a significant increase in the inquiries for MGO and definitely the volumes supplied have increased as well as the size of stems and we expect this trend to continue into 2019 till 2020, when dramatic changes in the industry will take place. Obviously majors as well as the bigger traders will try to persuade ship owners to take up low sulphur fuels earlier as this could help with the logistics however it all depends on how well shipping does with regards to freight rates as the cost increases are significant and I’m not quite sure how the higher costs can be passed onwards as higher freights and ultimately prices for the consumers. OMTI will continue to serve the shipping industry and provide the best fuels available at the best price possible as we have always been doing. Come 2020 though we foresee suppliers offering compliant fuels at significantly different prices depending on blends and sourcing at least for the first year till the market sort of stabilises. We expect the uptake of high sulphur fuel by customers to be significant as many ships calling at Fujairah are tankers that are at the forefront in installing scrubbers. WB: What do you hope to see in the year ahead? GG: We would like to see our margins being maintained and the Iranian sanctions issue solved. World Bunkering WINTER 2018/19

That would help alleviate the uncertainty in the market. We would like to see a clearer picture of the quantities and availability of low sulphur fuel globally and regionally, which has not been forthcoming so far from the majors, refiners and big traders. So there’s still a fair number of market influences, locally and further afield, that suppliers would like to see resolved, and who can blame them. Improving market Not all is uncertainty across the wider Gulf, though, and the main bunker trader in Iraq has been enjoying a steadily improving spell. This September, Al-Iraqia Shipping Services & Oil Trading received a licence to trade in Egyptian waters. AISSOT has partnered with local company OMS Energy to offer physical supply of RMG product meeting ISO 8217:2010 specifications and low-sulphur MGO from barges and floating storage at the SUMED terminal at Ain Sokhna in Egyptian Red Sea waters and the Suez Canal area. The company only began bunkering operations in the Iraqi ports of Basrah, Khor Al-Zubair and Umm Qasr in 2017. An AISSOT statement said that as about 1,200 ships pass through the Suez Canal every month and as there is a natural waiting period of 12 to 18 hours before entering the canal, there is a good opportunity for ships to bunker and utilise this waiting period to take bunkers. It added: “Currently vessels transiting Suez Canal struggle to obtain bunker fuels at a competitive price in the region. Long haul ships must divert to nearby ports to obtain bunkers that too at very high prices. “At times long haul ships carry huge quantity of bunkers thereby reducing their freight earning tonnage. With availability of bunkers at Suez, shipowners can maximize cargo and top-up at Suez on their onward voyage.” The company supplied its first stem of a combined 1,800 tonnes of IFO and LSMGO at the end of the October and says it is eyeing monthly sales of around 200,000 tonnes in the future.

AISSOT isn’t the only company eyeing a comparatively captive audience in Suez. With much of the traffic passing through Fujairah and the Gulf bound through the Canal, it’s no surprise that suppliers looking to tap into that trade - and to avoid some of the region’s geopolitical wranglings - have been eyeing bunker and service outlets in Egypt’s Red Sea ports. At the turn of the year, GAC’s Egyptian arm started offering its HullWiper hull cleaning service at Suez Canal ports, specifically promoting the bunker savings the system provides. “With 60 vessels transiting the Suez Canal daily, the area represents an important market that can clearly benefit from HullWiper’s globally renowned, efficient, and environmentally friendly approach to hull cleaning,” said Mohammed Badawi, GAC Egypt managing director. “HullWiper is suitable for all commercial vessels, but segments we are especially looking to serve in Egypt include container vessels calling at the Ports of Said and Suez, as well as the increasing number of offshore marine service vessels operating in the Mediterranean and Gulf of Suez.” French fuel oil recycling company Ecoslops said at the start of the year that it was launching a feasibility study into building a micro-refining plant in the Suez area after signing a deal with state-run Egyptian General Petroleum Corporation and winning a French government grant for the project. “The potential for recovering [ships’] oil residues transiting the Suez Canal is estimated at more than 40,000 mt per year, based on 18,000 passages,” the company said. The plant, if built, would be Ecoslops’ first outside Europe. Also reported to be looking at the captive market around Suez for bunkering is Clarksons. At the turn of the year, the company’s managing director was quoted in Daily News Egypt as saying that it was in discussions over a possible US$200m facility development,

MIDDLE EAST

GG: Suppliers are decreasing their reliance on Iranian oil over time and we as OMTI haven’t been purchasing Iranian oil for over a year now, seeking sourcing from further afield as well as from other Gulf countries. The slow-down in flows as well as reliance on Iranian oil has contributed quite significantly to the improvement in margins.

MIDDLE EAST

but there has been no further information from the company since. When asked by World Bunkering, Clarksons said it would not be commenting on the story at this time. The Egyptian government, meanwhile, has been reportedly looking at the possibility of building a rail link between the country’s Red Sea and Mediterranean coasts, first from Alexandria to Damietta in the north, then from Damietta to Nuweiba on the Sinai Peninsula, where a logistics and transshipment hub would be built. No timeframe has been floated, and since the initial reports in local press surfaced at the start of the summer, nothing more concrete has been released. Nevertheless, if it did come to pass, such a link might add more bunkering interest from ships travelling to and from the northern Red Sea rather than just those passing through the Canal. Another hive of development activity has been the Omani port of Sohar.

This year, Total inked an MoU with the Omani government to establish an LNG bunkering service in the port amongst other gas resource development work in the country. According to its initial announcement describing the deal, Total said bunkers would be provided by a small modular liquefaction plant to be built in the port, which can be expanded as demand dictates. “We are pleased to sign this MoU with the Sultanate of Oman that will give us access to new gas resources and the opportunity to develop an integrated gas project,” Total’s president of exploration and production Arnaud Breuillac said. “We will bring our expertise in LNG and will introduce access to a new gas market for the Sultanate. Developing an LNG bunkering service will generate in-country value and job opportunities, and will support industry diversification through fostering the shipping activity in Oman.”

Sohar port has been pushing itself heavily as an alternative to Fujairah over the past year. Last autumn, Singapore’s Trescorp inked a US$600m bunker storage terminal deal at the port. The 45-hectare development site is slated for an initial 600,000 cbm of bunker storage capacity to come online by 2020, tripling by 2021, as part of the port’s bid to stop vessels calling at the Omani port moving on to Fujairah for bunkers. The notion that demand for bunkers in the area significantly outstrips current storage was reinforced in the spring when Dubai-based oil firm Earth Wealth Energy announced plans to build a new tank farm for distillates and fuel oil. While the proposal had not yet become concrete at the time of writing, the company has outlined plans for up to 22 tanks storing up to 350,000 cbm of gasoil and gasoline and 200,000 cbm of HFO, with the idea that the new storage will be operational in time for the shift in fuel demand in 2020.

Fujairah still dominates, and now the threat of competition from Iran has receded somewhat ©Michael Gaylard

World Bunkering WINTER 2018/19

TRANSHIP INTERVIEW Stewart Hendry (36) joined Saudi Shipping & Maritime Services (Tranship) in July 2018. He has 20 years’ experience in shipping, oil & gas, marine, logistics industry projects

tewart spent the past 15 years with GAC Group, in Aberdeen (UK), Limassol (Cyprus) and Saudi Arabia, as Head of Shipping, Oil & Gas. Stewart had full responsibility for all Shipping, Oil & Gas operations and projects undertaken Kingdom wide. World Bunkering spoke to Tranship’s new CEO about his first steps as a company leader and also about his views on the situation regarding the local fuel market and its prospects for the future. Taking over the CEO position at Tranship, a well-established business in the Saudi Arabian bunker fuel market, must be a big challenge for you? What did you change and improve first when you took over? It was immediately clear that Tranship have a solid reputation in the local and international markets as a quality provider of bunker fuels in Jeddah. That reputation, supported with an excellent relationship stretching almost 40 years with Saudi Aramco offered a solid foundation for immediate growth and business diversification into other industry sectors. Tranship Now • Purchase of bunker barge ‘Marwah 9’ July 2018. • Upgrade of bunker barge ‘Marwah 8’ in commitment to future outlook and overall growth of company. • Sold bunker barge ‘Marwah 6’ to make way for new tonnage to complement industry demand Jeddah / Red Sea. • Implementation of new IT reporting World Bunkering WINTER 2018/19

systems to align commercial, operational and financial activities within the organisation. Addition of several carefully selected new key staff to strengthen existing business as well as plan for future - QHSSE Manager, Marine Superintendent, Commercial Manager etc. Award of a new contract seeing Tranship confirmed as agents in the Kingdom of Saudi Arabia for an international ISO tank owner. A new company vision to enforce “Saudisation” in all aspects of our business and which will afford Saudi nationals (male and female) opportunity to join our expanding organisation throughout the Kingdom. Fully aligned with the 2030 Vision of the Kingdom.

This will enable countries like Saudi Arabia and the UAE, who added 1.2mb/d of refining capacity over the past five years, to benefit from higher exports of diesel.Reduced usage in shipping will inevitably drive down the price of HFSO, meaning that domestically, Saudi Arabia and Kuwait will also be able to benefit from lower cost HSFO for use in power generation.

We cannot avoid the subject of 2020, of course. What impact, in your opinion, will it have on traders and suppliers in the region? The impact of new regulations set by the International Maritime Organisation (IMO) will naturally vary across the MENA region. GCC countries are well prepared to deal with the consequences of the regulations which come into effect in 2020. The new regulations require ship-owners to switch away from High Sulphur Fuel Oil (HSFO), and as they do so, demand for diesel will increase.

In the event that scrubbing technology proves to be a popular move for owners, then the impact will be quite negligible, with the Kingdom operating business as usual; whereas if compliance takes the form of fuel switching that results in higher demand for LSFO and marine diesel, then Saudi Arabia should theoretically benefit in two ways;

•

Here in Saudi Arabia, we should be somewhat shielded from any direct impact coming from the introduction of the IMO regulations. With the complex refining capacity that has come online since 2014, further additions due over the medium term, as well as its domestic consumption patterns it means that Saudi Arabia will be able to adjust to the needs of the global market.

Firstly - in the export of diesel, of which the Kingdom is a net exporter. Secondly - from the import of cheaper HSFO to replace crude burn in the power sector.

MIDDLE EAST - INTERVIEW

iStock

MIDDLE EAST - INTERVIEW PAGE TITLE

Marwah 8

How prepared are the companies, and Tranship in particular, for the global sulphur cap? With Saudi Aramco being the sole provider of fuel products in Saudi Arabia, we must continue to provide bunkers as per their specification and certified quality. Whilst these products are supplied as per its specification, Saudi Aramco governs the supply price and provides a weekly PPPMT (posted price per metric ton) which we adhere to. This is reviewed and circulated each Thursday, and is valid for seven days. Do commercial and operational practices in the Middle East differ from those used globally, and how competitive are they when it comes to offering high quality grades of fuel and lubricants? From a commercial perspective a published PPPMT rightly stops inflated bunkering prices in the Kingdom and we are pleased that this shows complete transparency in our business.

As a company, we have a stringent Sanctions policy in place and which further supports the Kingdom in this regard. Tranship remains committed to complying with relevant economic and trade sanctions laws in all jurisdictions in which it operates through identifying, mitigating and managing the risk not simply because it is required to, but it is the correct way to do business. What are the immediate and long term plans for Tranship? Looking to the future always excites me. We are in the advanced stages of increasing our presence in Saudi Arabia, with new office facilities opening in Dammam and Jubail - Eastern Province; early Q1 2019. Diversification of business is key and an integral part of our vision and growth. We will proceed to offer a wider portfolio of services at all Tranship locations such as;

1. Vessel bunkering (Eastern & Western provinces) 2. Ship agency (all KSA port locations) 3. Husbandry (all KSA port locations) 4. Logistics (Global with KSA wide offices) 5. Energy Industry support services (Global with KSA wide offices) 6. Specialised Projects, vessels charters etc (Global with KSA wide offices) In support of such diversification, we look set to welcome the addition of several new key and experienced staff members - essentially doubling headcount by Q1 2019. A strong focus will then continue on developing our teams and maintaining a solid corporate culture as we head towards the celebration of 40yrs of business in 2019 and continue supporting our esteemed customers. Exciting times are ahead!

Operationally, we are very much at peace of mind when loading and supplying cargoes in Saudi Arabia whilst we know the high quality of products which we are supplied with from Saudi Aramco. Do sanctions against Iran affect your companyâ&#x20AC;&#x2122;s business in the region? Generally speaking, no. The Kingdom of Saudi Arabia banned domestic entities from entering into transactions with Iranian-flagged vessels, and banned Iranian- registered/-flagged vessels from all ports. The Saudi Port Authority also extended the prohibitions to the entry of any ship carrying cargo of Iranian origin, including for transhipment purposes, into any Saudi Arabian port. Such has been in place for a considerable time and so no affect is felt in this regard.

Stewart Hendry

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LEGAL

2020 AND TIME CHARTERS Law firm Hill Dickinson has issued advice on the impact of the 2020 sulphur in fuel cap on charter parties

One would hope that most owners either now have a strategy in place to comply with the amendments to annex VI of the International Convention for the Prevention of Pollution of Ships (MARPOL) that comes into effect on 1January 2020, or are at least moving swiftly to towards one. From then on ships will have to use fuel oil with a sulphur content of no more than 0.50% m/m against the current limit of 3.50%. However getting ready will not just mean having the right fuel in the bunker tanks or fitting a scrubber. Recently Toby Miller, Chris Primikiris and Beatrice Cameli of major international law firm Hill Dickinson wrote a note on the implications for charter parties. The full articles, which covered both time and voyage , can be found on the firm’s website www.hilldickinson.com. Time charters are likely to affected most. As the Hill Dickinson trio point out, under a time charterparty the responsibility for supplying fuel lies on the charterers. For example, the NYPE 1946 and Shelltime 4 forms state respectively: NYPE 1946 Clause 2. ‘That the Charterers shall provide and pay for all the fuel except as otherwise agreed…’ Shelltime 4 ‘7. Charterers to provide and pay for all fuel (except fuel used for domestic services)…’ ‘29. Charterers shall supply marine diesel oil/fuel oil with a maximum viscosity of ___ Centistokes a 50 degrees Centigrade/ ACGFO for main propulsion and diesel oil/ ACGFO for the auxiliaries.’ So, unless scrubbers are fitted to the vessel, it will be charterers who will have to face the impact of the increased cost of compliant fuel, as is usually the case in time charters.

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The Hill Dickinson note explains that the obligation on charterers is to provide fuel that is of reasonable general quality and suitable for the type of engines. However, it is common market practice to include a bunker specification clause in the riders or fixture/re-cap. “Provision is also often made through the use of the standard form BIMCO clauses such as the bunker fuel sulphur content clause or bunker quality and liability clause. However, in their current form neither of these clauses will provide sufficient cover for owners. This is because the former only makes reference to ‘emission control zones’ (e.g. the Baltic Sea, North American ECA, etc.) and the latter only makes reference to ISO 8217 which, in its current format, does not provide an adequate cap. “Owners should therefore ensure that there is express reference to compliance with MARPOL annex VI and the 0.5% limit in the relevant rider clauses and/ or fixture re-cap. Further, any standard or bespoke clauses currently used should be amended accordingly. The note warns that particular care should be taken when fixing vessels that span into 2020 and beyond.” A number of issues are likely to arise in such circumstances, including the requirement to comply with much stricter bunker specification standards. Decisions will also need to be made as to what is to happen to any unused non-compliant bunkers and who is to bear the cost of the same. For example, whether it would be possible to discharge the bunkers at the next port of call – an issue that will depend on how the port authorities will treat the noncompliant bunkers: if treated as ‘waste’ these could lead to the vessel being detained and issues regarding which party is to bear the associated costs and delay”

The lawyers also comment: “Another question is whether charterers will be able to sell any non-compliant fuel and if so, whether they would suffer a significant loss on the re-sale (as it not clear how the markets are to react).” And, they say: “Similar considerations will apply on redelivery of the vessel. Bunker redelivery clauses usually specify that the owner is required to accept and pay for all bunkers retained onboard at current market prices. Again, consideration should be given as to what is to happen in circumstances where the vessel is redelivered with non-compliant fuel on-board or in circumstances where the vessel is to be redelivered before but very close to 1 January 2020. Whether acting as owner or charterer, it is important that the charterparty contains suitable clauses that protect the party in question, including indemnities covering losses that may arise from wrong supply, fines and delays.” Hill Dickinson also considers the use of scrubbers and notes: “There are a number of significant issues that may arise in the context of a time charter. These include responsibility for the scrubbers’ installation and the associated dry-docking; whether owners can be obliged to install a scrubber under the existing terms of a charterparty; and, significantly, what is to happen in the event that the scrubber system is defective.”

istock

BARGE DESIGN

CHINESE YARD SET TO BUILD LNG BUNKER BARGES

LR grants Jiangnan Approval in Principle for 7,500 m3 LNG bunker design while ABS is to class Singapore’s first LNG bunker barge

hina’s Jiangnan Shipyard Group has developed a 7,500 cubic metres LNG bunker vessel (LBV) design to supply ships using LNG as fuel. The shipbuilding group says that it is responding to the rapid growth of LNG fuel demand in the marine market, connected to the approaching global sulphur 2020 limit. UK-based classification society Lloyd’s Register (LR) has granted the new design Approval in Principle (AiP). Hu Keyi, Jiangnan Technical Director, said: “The 7,500 cubic metres LBV has a compact design for compatibility with quays and ships, a well-developed hull to reach economical speed-power performance, a dual fuel diesel-electric (DFDE) propulsion system, two azimuth thrusters and one bow thruster to provide excellent manoeuvrability and safety while in port/at anchorage.”

Singapore’s first LNG bunker barge Singapore’s FueLNG, a joint venture between Shell and Keppel Offshore & Marine, has chosen ABS to class its first LNG bunker barge. Construction is due to commence in January 2019. “This project is an important milestone for the region and is a key component of Singapore’s strategy to become the world’s largest bunkering port,” said ABS Vice President Global Gas Solutions, Patrick Janssens. “LNG as fuel has become an increasingly popular option for many shipowners looking to comply with environmental requirements and gain new operational efficiencies. Projects like this are critical to help expand the LNG supply chain and advance adoption of LNG as fuel.” The 7,500 m3 vessel will be based in the Port of Singapore and will supply LNG fuel to large ocean-going LNG-fuelled vessels throughout the region.

To help spur the project, Singapore’s Maritime and Port Authority (MPA) recently granted up to S$3 million (US$2.2 million) to FueLNG to build the vessel. Last year, ABS published its Guide for LNG Bunkering which sets out standards for LNG bunkering systems fitted to vessels intended for ship-to-ship LNG transfer. The Guide also addresses bunkering station safety, lifting and hose handling equipment, control, monitoring and emergency shutdown safety systems, and emergency release systems. “Recognizing the changing landscape and increased industry focus on gas,” ABS launched its Global Gas Solutions team in 2013 to support industry in developing gas-related projects. The team provides guidance in LNG floating structures and systems, gas fuel systems and equipment, gas carriers, and regulatory and statutory requirements.

He continued, “Two IMO type C LNG tanks and a state-of-art designed cargo handling system are equipped onboard to provide variable means of cargo handling, boil-off gas (BOG) management and ship to ship (STS) transfer.” David Barrow, LR Commercial Director – Marine & Offshore, said LR has classed several LNG bunkering vessels. LR provided assistance and support to Jiangnan in terms of the specification review. LR also checked the design against IGC code, LR Gas Ship Rules as well as other relevant applicable standards. This design is one of a series of LNG bunker vessels with different cargo capacities developed by Jiangnan, ranging from 5,500 to 20,000 m3.

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EQUIPMENT & SERVICES

GRIMALDI GROUP INSTALLS AIR LUBRICATION SYSTEM The Silverstream air lubrication system installed on 12 advanced ro-ro vessels as the “centrepiece of suite of emissions and fuel reduction technologies”

ilverstream Technologies has signed a new deal with Italian shipowner Grimaldi Group that will see its proprietary air lubrication technology, installed on 12 hybrid ro-ro vessels that are to be built over the next three years. The technology, which produces a thin layer of micro-bubbles for the flat bottom of the vessel, will be an integral part of the new design’s portfolio of emissions and fuel reduction measures. Air lubrication reduces the frictional resistance between the water and the hull, improving operational and environmental efficiencies. Silverstream expects that the system, which will last the lifetime of the new vessels, will reduce fuel consumption and associated emissions. Additionally, the Silverstream System has been designed to provide continuous reliable performance and is simple to operate and maintain. Grimaldi’s Green 5th Generation (GG5G) vessel project was conceived over the last year in conjunction with Danish naval architect Knud E Hansen. The vessels will emit zero emissions in port following the installation of lithium batteries, and, in addition to Silverstream’s technology, World Bunkering WINTER 2018/19

will also be fitted with solar panels and scrubbers to further reduce emissions. Emanuele Grimaldi, Managing Director, Grimaldi Group said: “I am pleased that the Silverstream system will form the centrepiece of our pioneering new ro-ro vessels. The GG5G project always set out to create a new paradigm in ship design and demonstrate to the whole industry what is possible in terms of driving sustainability with proven solutions already on the market. In signing this deal with Silverstream, we have shown that a more sustainable future for shipping is not just possible, but is closely within our grasp.”

IMO DCS regulations require all globally operating ships over 5,000gt to collect fuel consumption data and create an annual fuel consumption data report to submit to their flag administration or recognized organization for verification.

The Grimaldi Group expects the first of the new vessels to be completed in May 2020 and become operational by Q3 2020 on Mediterranean ro-ro trade routes.

ClassNK MRV Portal was originally launched in 2017 to facilitate compliance with EU MRV regulations, and has now been updated to support IMO DCS. The software consists of on-board data sending functions, an on-shore data management system, and also a function for submitting an annual fuel consumption report. Moreover, the software is capable of efficiently connecting with third-party packages or in-house logbook software without any added on-board tasks and allows users to submit necessary data reports to ClassNK through the system.

ClassNK launches upgraded CO2 monitoring service Japanese classification society ClassNK has released its modified MRV Portal (IMO DCS) software service for the reporting, monitoring and verification of shipping CO2 emissions in line with the IMO Data Collection System (DCS) regulations that will come into effect in 2019.

Corporate Officer, Director of Survey Operations Division Yoshinori Kozeki said: “We are very excited and proud to offer this major update to our ClassNK MRV Portal software solution. There is no doubt that the added convenience will prove beneficial to users, and the industry will now be able to smoothly respond to the upcoming IMO regulations.”

EQUIPMENT & SERVICES

nstructions on how to register and further details of the software are available through the link below for those who will begin gathering data to comply with IMO DCS. Users of “ClassNK MRV Portal” for EU-MRV can use the software for IMO DCS without any additional registration. GAC joins Green Award scheme Ship agency GAC says it is the first agent in the UK to sign up to the Green Award (GA) Foundation. Under the scheme, GA-certified ships that use GAC’s ship agency services at ports around the UK can claim a 10% discount on the company’s agency fees. Participating ports and maritime service providers provide incentives for vessels through the scheme, to achieve a safer, greener and sustainable future. Herman Jorgensen, Managing Director at GAC UK, said: “GAC UK has taken numerous measures to promote sustainability in its business and beyond. We welcome initiatives like Green Award which are good for the environment and great for business, too. Signing up to Green Award underlines our commitment to improving the environment by supporting shipowners and operators who share the same ethos, recognizing and rewarding companies with a 10% reduction on GAC UK ship agency fees.”

Handing over a Green Award plaque to Herman Jorgensen, Mr Mattheou said: “At Green Award we aim at promoting high safety, quality and environmental standards within the maritime community on a voluntary basis. The realisation of the importance of having a strong will to change for the best, to support the best practices and excellence in shipping, are crucial for achieving sustainable results.” New indicator saves fuel German company CM Technologies launched a new performance indicator at this year’s SMM exhibition in Hamburg. The company says the indicator enables effective fuel savings, increased efficiency and early damage detection in diesel engines. The PREMET X measuring device indicates precisely the cylinder pressure at every cylinder position, injection and ignition timing, as well as other aspects of the combustion process. Based on the results, the injection can be optimised and fuel consumption reduced, CM Technologies says..

Innovative sensors from Kistler Switzerland are used for maximum reliability, making it possible to measure pressures up to 350 bar. “The actual values of a diesel engine do rarely correspond to the setpoints, which translates into performance losses,” explains the company’s managing director Matthias Winkler. “This manifests itself as increased need for fuel and thus increased operating costs. A poorly balanced engine often consumes up to two percent more fuel. That is why it makes sense from an economic point of view to regularly check the condition of an engine. Dynamic pressure measurement is particularly suitable for slow or mediumspeed models. Not only does the pressure curve reveal the specific timing of a diesel engine, it also shows if the desired performance is being provided. This in turn provides information about the efficiency of the engine. A reliable indicating device makes the complex process of measuring the power on the shaft superfluous,” continues Winkler.

GAC UK handles around 7000 calls at ports around the UK every year and is part of the global GAC Group. GAC UK is the fourth GAC company in Europe to join the Green Award incentive scheme; GAC Belgium and GAC Netherlands signed up in 2015, followed by GAC Greece in June last year. Green Award Chairman Dimitrios Mattheou, accompanied by Executive Director Jan Fransen, wholeheartedly welcomed GAC UK into the certification scheme at a celebratory client event in Athens, Greece. GAC joins Green Award scheme

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Founded in 2016, ReSeaWorld is an Italian Company specialising in Marine Bunkering

e are located in Italy, strategically positioned within cross Mediterranean major shipping routes connecting Europe, Africa and Middle East. Our family has a very long Shipping heritage: we descend from an historical Ship Owner who was one of the most important person in the Italian Shipping world. Following the strong crisis of recent years, I decided, thanks to my family’s support, to commit myself once again into the Shipping business, move forward and start this brand new Company. RSW is now dedicated to sell and deliver bunker and lube oil everywhere in the world, operating worldwide as both Trader and Broker, but mostly focusing in supplying Vessels in all the Italian ports where we are active with all the major Traders and Physical Suppliers. My past experience, at the head of the family Shipping Company, allows me to understand what customers expect from us: backed by this fundamental understanding, we strive to provide them best-in-class service. RSW, with its high quality standards, takes care of marine bunkering operation for all the Vessels, following closely every single step of the delivering process: World Bunkering WINTER 2018/19

• Research of physical supplier. • Constant market price monitoring in order to offer always the best solution. • Control on delivery and bunkering operations to ensure they are met, through a strong cooperation between Agent and Supplier. • Deep understanding of the customers needs, to guarantee top quality products and high performance. Family is our treasure, shipping world our devotion. Even though we are at the beginning of our path for growth, many Ship Owners have already chosen our services, trusting our commitment and experience in maritime transport and also benefiting from our tailormade solutions and flexible approach, able to fulfill the specific needs of each client. Our offices are open 24/7 and our team is pleased to welcome enquires at any time. We are thankful to our Customers, Partners, Suppliers and everyone working with us for support and trust, to all Owners and Partners we address our heartfelt Thanks.

Valeria Sessa owner

COMPANY NEWS - RESEAWORLD

PASSION TO PERFORM

COMPANY NEWS

DE CHERMONT & PARTNERS LTD

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

Marine & Cargo Surveyors Shipping Consultants

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.

2019 IBIA EVENTS PROGRAMME JANUARY 17th FEBRUARY 13 - 14th 25th 25th MARCH 5 - 6th 25 - 27th 25 - 29th APRIL 11 - 12th 11th MAY 28 - 30th 30th JUNE 18th JULY 22 - 23rd AUGUST 15 - 16th September 9 - 15th

IMO 2020 - Are you ready?

London, UK

Shipinsight - An Uncertain Future IBIA AGM, Grosvenor House Hotel IBIA Annual Gala Dinner 2019, Grosvenor House Hotel

London, UK

10th IPTA/Navigate Chemical & Product Tanker Conference Fujcon ARA Week

London, UK Fujairah, UAE Cape Town, South Africa

East Med Marine and Oil & Gas exhibition IBIA Asia Gala Dinner 2019

Limmasol, Cyprus Singapore

IBIA Africa Conference 2019 IBIA Africa AGM Mozambique Ports and Rail Evolution

Cape Town, South Africa Cape Town, South Africa Mozambique

Joint Conference with the UK Chamber of Shipping

London, UK

West African Ports & Rail Evolution

Lagos, Nigeria

African Ports Evolution

Durban, South Africa

IBIA Caribbean Conference

Montego Bay, Jamaica

London, UK London, UK

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

World Bunkering WINTER 2018/19

World Bunkering WINTER 2018/19 2018

DIARY

17 JANUARY 2019

IMO 2020 – ARE YOU READY? DEBATE WITH THE SPECIALISTS! , LONDON Our esteemed panellists and speakers will discuss and debate with delegates in an interactive format, sharing knowledge and insights into how IMO 2020 will shape the bunker fuels market and affect the industry as a whole; along with valuable networking opportunities, this important event will provide an unrivalled opportunity to gain valuable information on this vital topic. https://europetro.com/week/imo2020/#venue

13 - 14 FEBRUARY 2019

SHIPINSIGHT – AN UNCERTAIN FUTURE, LONDON Designed to bring clarity to changing regulation. The big topics from ShipInsight discussed in-depth by over 30 industry leading experts.

DIARY 25 - 27 MARCH 2019

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

https://shipinsight.com/conference

25 - 29 MARCH 2019 ARA WEEK CAPE TOWN SOUTH AFRICA

25 FEBRUARY 2019

IBIA ANNUAL DINNER, LONDON The IBIA Annual Dinner is a well-established fixture in the bunker industry’s calendar. Please join us and more than a thousand colleagues, peers and customers at the luxurious Grosvenor House in Park Lane, London on Monday 25 February 2019. http://ibia.net/

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

11 - 12 APRIL 2019

5 - 6 MARCH 2019

EAST MED MARINE AND OIL & GAS EXHIBITION LIMASOL, CYPRUS

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

With over 100 exhibitors from all over the world, the East Med Marine and Oil & Gas Exhibition continues for the 9th time to provide a first class opportunity for the marine/offshore and oil & gas industries lead players and stakeholders to interact and to learn about important industry updates and technological advancements.

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

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

28 - 31 MAY 2019

IBIA AFRICA CONFERENCE CAPE TOWN, SOUTH AFRICA

The Chemical and Product Tanker conference is staged jointly by IPTA and Navigate

Join IBIA in Cape Town as we impart vital information and unpack legislation post the IMO’s Marine Environment Protection Committee’s last meeting prior to the global sulphur cap taking effect. IBIA’s Director and IMO Representative, Unni Einemo will be joined by local and international experts in fuels, shipping, port authorities and regulators in an engaging and much anticipated forum. Contact tahra.

https://cpt-conference.com/agenda/

sergeant@ibia.net

World Bunkering WINTER 2018/19

NEXT ISSUE

WORLD BUNKERING

SPRING 2019... NOW OPEN FOR BOOKINGS

SPRING 2019 Coinciding with IP Week and IBIAâ&#x20AC;&#x2122;s Annual Gala Dinner, our Spring issue comes out as we start the final countdown to the 2020 implementation of the global 0.5% sulphur in fuel cap. World Bunkering looks at the key issues likely to be up for discussion as the industry comes together in London.

SPECIAL FEATURES: Traders The sulphur cap will add complexity to the marine fuel market, with more products on offer. How will traders cope?

Fuel Quantity The use of mass flow metering systems on bunker barges in Singapore is being extended to distillates. Will the use of flow meters will become standard practice everywhere?

IT Blockchain technology has become the talk of the industry. We look at its potential both for making transactions more efficient and also for tracing contamination back to specific vessels.

Lubricants Lubricant manufacturers have been getting ready to meet the needs of ship operators having to cope with the sulphur cap. We 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 We report on this important region and ask to what extent it is realising its potential.

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.NET World Bunkering WINTER 2018/19

ibia@constructivemedia.co.uk 61

NEW IBIA MEMBERS

INDIVIDUAL Trader, Supplier Mark Wells Maersk Oil Trading Europe

Supplier Glenn Halliday Low Sulphur Fuels Ltd Europe

Service Charlotte Rojgaard Bureau Veritas VeriFuel Europe

Charterer Alex Tomchev Cargill Europe

Service Markus Hoffmann Alfa Laval Europe

Surveyor Ewoud Kamminga Bureau Veritas VeriFuel Europe

Legal Francisco Carreira Carreira Pitti P.C. America

Surveyor David Browne Andrew Moore & Associates Asia

Service Gunnar Kjeldsen Bureau Veritas Norway AS Europe

Trader BorisÂ Shternberg AlenOil Handelsberatungsges.m.b.H. Europe

Legal Mathias Steino Hafnia Law Firm Europe

Surveyor Bill Stamatopoulos Bureau Veritas VeriFuel Europe

Fianancial DimitriosÂ Tsouvelekakis Oppenheim Europe

Bunker Supplier Kelvin Chukwujekwu Kmc Marine Energy Ltd Africa

Ship Owner, Manager Martin Fletcher Fred Olsen Cruise Lines Europe

Service Tore Haugen Westfal-Larsen Management Europe

Service Sarah Chiasson XOS America

Fianancial Sam Galloway The Oil Market Journal Europe

Surveyor Anne Myers Braemar Technical Services Africa

Oil Industry Major, Charterer Tamani Verwey Staatsolie Maatschappij Suri.V. America

Trader, Supplier Shumaila Tatheer Naqvi Allied Oils & Energy (Pvt) Ltd Asia

Surveyor Captain Rachit Mohan Inspect Marine Ltd Asia

Fianancial Simon Millar Platts Ocean Intelligence Asia

Shipowner, Charterer Jim Gilligan Eagle Shipping International (USA) LLC America

Shipowner, Ship Manager Vebjorn Lid Hansa Tankers AS Europe

CORPORATE

Trader Siyamthanda Maya South African Marine Fuels Africa

Bonzi Stofile South Africa Marine Safety Authority Africa

Trader Nikolaos Barmpantonakis Gram Marine PTE Ltd Asia

Supplier, Shipowner George Rokofyllos Sekavin SA Europe

World Bunkering WINTER 2018/19