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Hong Kong Charting IBIA's future World BUNKERING special EDITION

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Publisher: W H Robinson

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Editor: David Hughes editor@mar-media.com

Deputy Editor: Sandra Speares sandra.speares@mar-media.com

Project Director: Dawn Barley dawn.barley@mar-media.com

Project Consultant: Alex Corboude alex.corboude@mar-media.com

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Published by: Maritime Media Ltd Suite 25, Hurlingham Studios, Ranelagh Gardens, London SW6 3PA, UK Tel: +44 (0) 20 7386 6100 Fax: +44 (0) 20 7381 8890 E-mail: inbox@mar-media.com Website: www.worldbunkering.com On behalf of: IBIA Ltd Latimer House 5-7 Cumberland Place Southampton SO15 2BH, UK Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 3865 E-mail: ibia@ibia.net Website: www.ibia.net

ISSN 1367-5018

IBIA reports Editor’s letter 3 Chairman’s introduction 5 Chief Executive’s report 7 Welcome to Hong Kong 9 IBIA news 13

Special features Talking points 14 Setting to scene 16 Far East 19 Russian update 23 Technical 29 Legal news 30 Diary

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T

he 2013 IBIA Convention has a theme which suggests a recovery may be underway and it takes place as the International Maritime Organization (IMO) launches its focus on 'sustainability'.

Whether there really is a recovery in sight and the practical effects of sustainability on the bunker business will provide the main background for the discussions held in and around this year's gathering So, is there a real recovery out there? The signals are mixed but overall confidence levels in the wider shipping industry held firm over the three-month period to August 2013, maintaining the highest level reached since November 2010, according to the latest Shipping Confidence Survey from Moore Stephens.

The international accountant notes however that doubts persist over the level of excess tonnage and the resultant effect on freight rates, while there is growing concern over the increasing cost of regulation.

Nevertheless Moore Stephens detects “quietly returning confidence”. “There is a feeling of optimism and the sense that we have turned a corner, with supply and demand expected to come into balance,” said one respondent. Another noted, “The market is waking up, and more opportunities will appear in the near future,” and another still that, “The shipping market is very competitive and constantly evolving, with more and more new players entering the industry as the demand for shipping cargo by sea continues to increase”.

Other upbeat comments included: “The shipping industry is seemingly moving towards a positive place, albeit slowly,” and, “The shipping market is on the rise, and will continue on that path.” One respondent said, “A shrinking orderbook, combined with the anticipated US and European economic recovery, should help to increase demand in 2014.”

No means all who responded to the survey were so cheerful but my personal take on this is that we are in for a period of quite slow growth but the worst may behind us.

But challenges there certainly will be and many of them will be connected with the need to shift to more environmentally sustainable operating methods.

How to achieve a “Sustainable Maritime Transportation System” was the subject of an IMO symposium held Maritime Day, 26 September 2013.

World Bunkering Autumn 2013

IMO Secretary-General Koji Sekimizu told the industry that it has little choice about adopting more sustainable methods. He said: “It seems inevitable that shipping must be at the heart of sustainable development, and that shipping itself must, therefore, ensure that its own development is also sustainable. The sustainable development and growth of the world's economy will not be possible without similar sustainable growth in shipping and, therefore, in the entire maritime sector.”

The keynote speaker was Lam Yi Young, Chief Executive, Maritime and Port Authority of Singapore (MPA), who gave a comprehensive account of the world's biggest bunker port's moves to achieve sustainable maritime development.

He made the point that Singapore is not just a port and all its many commercial maritime activities must coexist in close proximity with urban facilities for 5.3 million people, including provision for water front living and recreation. Moreover despite being one of the world’s busiest ports, Singapore’s waters are also home to a rich marine ecosystem. In fact 255 species of hard coral can be found there, as well as 12 of the 24 Indo-Pacific species of seagrass.

“Taken together,” said Mr Lam, “what all these developments mean is that the environmental impact of maritime transportation activities is very real and very immediate to us.”

Singapore, Mr Lam said, needed to strike a balance between development of maritime transportation and protection of the marine environment. He stressed: “We cannot afford to have development and growth at all costs without regard for sustainability and quality of life, but we also cannot afford to stop maritime developments completely given that maritime is an important lifeline and an important part of Singapore’s economy, contributing some 7% of our GDP.” That, really, is the dilemma facing politicians worldwide and how they strike that balance is going to be crucial for bunkering and the wider shipping industry.

Over the next few days we will probably hear more about Singapore's sustainability initiatives and we will certainly learn a lot about how Hong Kong plans to tackle emissions.

I look forward to meeting as many delegates as possible and hope you all have an enjoyable time here in Hong Kong.

David Hughes – Editor

Editors Letter

Looking to the future

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F

ellow IBIA members, once again it is time for the IBIA Annual Convention. This year, we have the honour of hosting it in Hong Kong. To be exact, this is the second time we are hosting the convention in Hong Kong. The first time was in 2005, if I remember correctly, and it was held at the Intercontinental Hotel in Kowloon.

It was an quite an experience for me back then and I went home from that convention with a much better knowledge of the bunker industry. I had also got to know a large number of people from all over the world. Little did I expect then that the convention would make its way back to Hong Kong and I would be attending it as Chairman of IBIA. Hong Kong today is one of the biggest shipping ports in the Far East, in the same league as Shanghai and Singapore. It is also a gateway to many ports of greater China and this has been so for a couple of centuries. Hong Kong is also one of East Asia's major bunkering ports, with an estimated volume of about seven million tonnes delivered a year. Hong Kong today sees more international bunker players in the market compared to nine years ago. Then there were only two or three international bunker players stationed in Hong Kong. It is very different now, with more than 10 such companies operating here. So it is a growing market and also its proximity to China gives it lots of advantages.

Asia is seeing the fastest economic growth now, due to the size of the Chinese and Indian market. Asian shipping has also experienced robust growth over the past couple of years although this slowed significantly last year and the same is true this year.

But we should still see better growth in Asia compared to Europe and America. Bunkering has also benefitted from this growth and we still see consistently high volumes, especially in Singapore where marine fuel sales run

World Bunkering Special Edition 2013

at about three million tonnes a month.

This level is likely to be maintained even though the Maritime and Port Authority (MPA) of Singapore's data shows a slight decline in volumes recently. Hong Kong and other major ports in South Korea and China are still achieving very good volumes.

Of course this is only in the Far East Asia region. Bunkering activities are also increasing in South Asia. In both India and Sri Lanka there is an increasing realisation of the importance of bunkering to the economy as a whole. Much has been invested into the bunkering industry in these two countries. So it will be very interesting to see if they give Singapore a run for its money.

The northern Arctic Route is also quite a challenge as less Summer ice allows shipping routes to open up for vessels moving from the west to the northern part of Far East Asia. The Russian Far East cities like Nakhoka, Vanino and Vladivostock are also seeing a lot more bunkering as more vessel owners take advantage of the much lower bunker prices in the Russian ports. I understand that the difference can vary from US$40 to as much as $60 per tonne.

Singapore is still the world's biggest bunkering port. In terms of volume, more than 28 million tonnes of marine fuel was delivered by the end of August 2013 according to statistics from the MPA bunkering website. Singapore is well placed as a bunkering port with its comprehensive physical and administrative infrastructure. It can boast massive storage facilities, more than 210 bunker tankers, well regulated SS600 bunkering procedures and crucial support from the government and industry players. Its natural deep sea port and its location in the centre of Asia also give it an advantage over many other ports.

As the region develops, however, Singapore will

face challenges from its neighbours, especially from Malaysia, India and Sri Lanka – not forgetting those countries in Far East Asia. Developments in Singapore's bunkering sector are closely watched by its neighbouring countries.

For Singapore to stay competitive and ahead of its competitors, new initiatives like the mass-flow metering and LNG bunkering are being looked at. The mass flow meter has recently been fitted on some bunker barges and subsequent trials have been very successful. MPA has also come down hard on errant physical suppliers who tried to cheat on quantity. Today they are only 68 licensed or accredited suppliers, compared to 76 a year ago. Most of these supplier licenses were revoked due to non-compliance although a couple returned their licenses due to inactivity.

To finish, I would like to thank the volunteers of the Convention Work Group, which is led by John Stirling of WFS, for their hard work in making this event a success.

Chairman's welcome

Quite an experience

Simon Neo Tiau Gee chairman, IBIA

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Hong Kong A convention is a long time in the making, and I do hope you will enjoy your time in Hong Kong. It was 2005 when IBIA last held its convention in Hong Kong and much has changed since then. However, there is much to see and hear about this year. I also hope, for those attending, there is going to be some lively debate and opportunities for you to shape the future direction of the association.

For the first time we will be using technology throughout the convention to gather opinions, encourage debate and provide statistical analysis on the topics being discussed. I do hope you will enjoy all the opportunities that Hong Kong has to offer.

The Present The last few months have been challenging and rewarding. Our key focus has been for IBIA to communicate the challenges and opportunities the members face.

One aspect of our communication policy was to deliver to you, our members, a monthly newsletter and this is now starting to be sent out each month. Inside, we discuss topical issues, offer discounts on courses and seminars and write a regular feature on the working groups. We need your input so please drop us a line about what is itching you and we will try and scratch it! Our aim is also to engage on the ground with the significant issues in each of the regions.

Consequently, for the first time, we held an IBIA seminar in partnership

World Bunkering Special Edition 2013

with London International Shipping Week, with the title 'Asian Growth: Global Recovery? What London is doing to respond'. This issue tells you what happened (page 13).

During the week we also attended a working lunch with the general secretary of IMO to discuss fuel availability. In addition, at a separate meeting with politicians, we engaged in the wider debate on emission control areas.

During the latter part of August I took part in the African Ports Evolution debate, attended by over 20 countries and 300 delegates engaging in the opportunities and challenges that face the region. I then travelled to Singapore to attend the branch's AGM and the first Exco meeting of the year. This was an opportunity to listen to the Singapore members' aims and objectives for the next 12 months.

Now, during this conference, you will have the opportunity to hear first-hand about the regions and the developments within each of the working groups. We are still looking to include members in these groups so if you would like to discuss the work in more detail have a chat with me during this conference.

Australasia. The idea is to rotate across each region so that every third year a conference is held relatively close to you – or at least that’s the objective!

Each destination city is chosen 18-24 months in advance, in order to plan hotels and venues well in advance.

Currently, we are looking at Hamburg in 2014 to coincide with Eisbein attendees will get an invitation to the exclusive “pig's knuckle event” held on the Friday night after the conference.

Looking ahead to 2015 we are hoping to hold the convention in Panama to coincide with viewing the new canal! Both destinations offer unique opportunities so places will be limited. Have a wonderful conference here in Hong Kong and I look forward to seeing everyone in Hamburg.

Chief Executive's Report

Welcome to Hong Kong and to the 2013 IBIA Annual Convention

Peter Hall IBIA chief executive

The Future The debate concerning future conventions is already well underway; first let me explain how a convention location is chosen.

IBIA is currently split into three regions – Americas, EuropeMiddle East and Africa, and finally Asia and

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This year's convention takes place as some signs of recovery begin to appear. But delegates will have plenty of challenges to consider as they gather at Hong Kong's Sheraton Hotel & Towers

I

t has been an exciting year for IBIA and both the chairman, Simon Neo Tiau Gee, and the new chief executive Peter Hall will have plenty to report when proceedings get going on Tuesday evening. Neo will set the scene for the convention, which is titled 'Asian Growth: Global Recovery?'

Hall will no doubt command keen attention when he introduces the IBIA 2013–2016 business plan that will set out the association's objectives for the medium term.

Then it will fall to the convention's chairman, Robin Meech, to turn delegates' attention to the big challenges facing the industry The first session should provide plenty of talking points for the informal networking reception in the hotel ballroom that follows.

On Wednesday the discussion really gets going, with a presentation on 'Managing Risk in New Markets' by Stirling Assynt's Amelie de Borchgrave d’Altena. Mark Lewis of EMC-Energy Market Consultants will address the question 'How is supply & demand driven by the environment and the global cap?'

After a break for coffee there will be an innovative 'speed session' comprising six 10-minute presentations from buyers and sellers, all on the topic 'Asian Bunker Growth and the Global Impact'.

World Bunkering Special Edition 2013

Delegates will eat lunch way up in the Sheraton's 16th floor Sky Lounge, with views out onto the bustling port.

After lunch, attention will turn to the hot topic of short delivery.

With current fuel oil prices, any discrepancy in volumes is a serious matter. IBIA has brought together a high-level panel of experts from all the disciplines involved to consider how short deliveries can be eliminated. Singapore's experience with flow meters will certainly be relevant here.

The day will be rounded off with a look at an issue of considerable local importance. Arthur Bowring, the managing director of Hong Kong Shipowners Association will speak on 'Cleaning up the Air in Hong Kong'.

Given the importance of Hong Kong to the ocean liner trade, what is decided there will have ramifications for the global shipping industry.

Then it will be time to get ready for a superb dinner at the Royal Hong Kong Yacht Club, which will surely be one of the highlights of the convention.

The final morning is firmly focused on IBIA and the needs of its members, with a look at the current IBIA working groups Legal issues issues will be addressed by board member Trevor Harrison.

World Bunkering editor David Hughes, will present the findings of an IBIA

survey of education. It is hoped this will stimulate discussion of what types of courses are available. Nigel Draffin will continue the theme by offering the perspective on education.

Robin Meech will report on the work of the Environment & Safety group. Reports from the Technical Committee on bunkering and from Southern Africa follow.

The convention's last session brings in another innovation – voting technology – during Peter Hall's full presentation of the business plan, briefly introduced on Tuesday evening.

This will be an interactive session for members and non-members with the IBIA board of directors joining in.

So by the time Simon Neo summarises the event and bids delegates farewell, a lot of ground should have been covered, and probably much more networking taken place.

In one further innovation, to cater for those having to make a swift departure from Hong Kong, there will be two farewell lunches, one sailing around Hong Kong harbour aboard a replica of the Bounty and the other on shore at the Sheraton.

For those lucky enough to be able to stay for another night or two the many attractions of Hong Kong beckon.

Otherwise it will be time to make a diary note of the 2014 convention, which will take place in Hamburg, and head home.

Welcomce to Hong Kong

Global Recovery?

9

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As IBIA members gather in Hong Kong many of the issues up for discussion will resonate with the local shipping and port community

A

mong Hong Kong’s diverse maritime services sector, bunkering may not spring to mind as a cornerstone industry; ship finance, ship management, world-class dispute resolution and legal services, and a well-established shipbroking community, are among the more widely recognised trades that have grown up alongside the city’s longestablished shipowning base.

Hong Kong might not aspire to be one of Asia’s premier bunkering centres. However, the well-established core of suppliers present in what remains one of Asia’s busiest ports have built up a reputation for quality of service that matches Hong Kong’s other service industries.

When approaching some of Hong Kong’s leading shipowners who have bunkered ships in Hong Kong recently, the comments are generally along the lines of ‘seamless’, ‘very smooth’ or ‘no problem’. The issues of quality and quantity that have plagued owners in other ports seem to have largely been avoided.

Bunkers are, however, very much on the minds of Hong Kong people. In a city that continues to suffer from occasional chronic pollution, the shipping industry has been singled-out as one of the prime culprits. Reducing sulphur emissions

World Bunkering Special Edition 2013

has become a popular rallying call for the city’s divided political factions. It was announced in September that the city’s Environmental Protection Department plans to push through proposals that will see a maximum sulphur content of 0.5% permissible for ocean-going vessels at berth in Hong Kong from January 2015.

The proposals will be submitted to the Special Administrative Region’s legislature in the current session.

Hong Kong had some success with the voluntary Fairwinds Charter, which saw a number of major shipowners, including Maersk Line, Evergreen and locally based OOIL all agree to use 0.5% sulphur content bunker fuel while berthing in Hong Kong. Several signatories to this voluntary agreement had pushed for it to become mandatory in the hope that it would ultimately lead to an agreement covering the whole of the Pearl River Delta region.

Meanwhile, the huge number of coastal vessels plying Hong Kong’s waters will see sulphur content reduced from 0.5% to 0.05% if EPD proposals are ratified, following a study completed earlier this year that showed this was technically feasible.

Even with no locally based refining capacity, Hong Kong’s bunker suppliers look set to take on the challenge of an ever-changing

regulatory environment to continue to supply product safely and maintain their reputation for quality.

Competition from cities throughout Asia to be a maritime centre remains intense, but Hong Kong continues to be seen as a favoured location for corporate headquarters across the maritime spectrum. Sixteen years on from the return of sovereignty to China, any nagging doubts about the rule of law, the maintenance of its famed capitalist system and the free flow of capital, information and people have been dispelled. Lubricants supplier Gulf Marine established their global headquarters in Hong Kong five years ago, and the thirdparty ship management sector continues to go from strength to strength. All this was built on the bedrock of the original Shanghainese owners who are now passing to the third generation. "Despite intense competition for maritime services from other regional port cities, Hong Kong continues to grow, and remains an incredibly exciting place for all sectors of the maritime industry," said Arthur Bowring, managing director of the Hong Kong Shipowners Association, the renowned industry body that includes shipowners and maritime services companies, including bunker suppliers..

Welcomce to Hong Kong

Bunkers matters

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IBIA News

Seminar success In a new move for the association, IBIA organised a seminar during the inaugural London International Shipping Week in September – and it proved to be a sell-out

S

ome 80 shipowners and bunker industry professionals packed into London's Baltic Exchange for IBIA's London International Shipping Week (LISW) seminar 'Asian Growth: Global Recovery? How should London respond to the challenge?'

The event was sponsored by the Gibraltar Port Authority and the Gibraltar Register and was introduced

by IBIA chief executive Peter Hall.

David Balston, director safety and environment at the UK Chamber of Shipping answered the question, “What are the major challenges facing UK shipping?”

Nigel Draffin, IBIA's immediate past chairman outlined how the association saw the future, while Hugh McCleod, chairman of Stirling Assynt (Europe), gave a presentation on managing risk in new markets.

Balston covered the threats to London and the UK's pivotal position in global shipping and noted the government measures to support the country's shipping industry, including an increase to funding available for cadet training.

McCleod's presentation was thought-provoking and mainly focused on the Syrian civil war and on the complex underlying ethnic rivalries. His insightful analysis came at crucial points in developments

World Bunkering Special Edition 2013

in both the Syrian and Egyptian crises. He emphasised the need to have good information about markets before making the decision to enter them.

While his fellow speakers concentrated on London-specific and highly topical political issues, respectively, Draffin spoke very much on bunkering issues, principally with an overview of the alternatives to heavy fuel oil available to the industry.

He highlighted the difficulties in producing sufficient distillate to meet demand once the global 0.5% limit came into effect. The implications of trying to increase distillate production were substantial and complex, he warned. In his review of alternatives Draffin noted the advantages of using scrubbers, once the remaining technical issues had been resolved.

Distillate availability will be no problem in 2015, when the Emission Control Area 0.10% sulphur limit comes into effect, according to Draffin. He warned, however, that there would be a “big problem” with the 2020 global reduction to 0.5% sulphur.

Draffin stressed that IBIA will continue to lobby regulators to set achievable ship fuel sulphur targets.

Looking at how the shipping industry is reacting to environmental legislative

changes, he said: “Buyers will take the least-cost route and suppliers will only respond to demand. Port authorities will look for competitive advantage while laboratories and surveyors will have to learn new skills. IBIA will continue to lobby and persuade regulators to set achievable targets and give us flexibility in how we meet those targets.”

According to IBIA, bunker fuel looks set to grow at about 1.5% per annum as China, Hong Kong and other Asian countries continue to grow their marine fuel sales. While Singapore remains dominant in the supply of bunkers, other Asian countries are eating into its market share. However, bunker quality remains a big issue as suppliers look to reduce costs.

Draffin predicted that all bunker growth will be in Asia, the Middle East and Africa while sales in the Mediterranean, Europe and South America will be flat and North America will shrink. London and the UK have seen a drop in the number of bunker brokers based there, but the former IBIA chairman noted that the city “remains the powerhouse of international shipping commerce, with an unrivalled core of technical, legal and commercial shipping expertise.”

13

Talking Points

The 'cat fines' dispute Catalytic fines are microscopic particulates that are increasingly causing a big headache for the industry. But who should have the job of removing them from marine fuel?

An insurer's view Individual insurance claims arising from excessive main engine wear caused by cat fines in fuel oil is likely to exceed $1 million. Yet there is no sign of the problem being remedied at source. Operators will now have to take on the responsibility for reducing the incidence of these claims. That at least was the view of Braemar SA’s chief surveyor for Western Europe, Paul Hill, when speaking at the recent International Union of Marine Insurance (IUMI) London Conference.

Catalytic fines are microscopic particulates that remain in marine fuel oil as a result of the crude oil refining process. The fines can become embedded into engine components and cause abrasive wear, leading to significant insurance claims.

Hill explored the discrepancy that exists between ISO standards for cat fine content and the recommended content by engine manufacturers.

Explaining that this placed the onus on effective filtration, purification and fuel management on board the vessel, he expressed concern that on-board purifiers often have insufficient capacity and poor efficiency for the task. Operators did not know in advance the quality of fuel being brought on board.

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He also examined the difficulties faced by the insurance industry as demand for low sulphur fuel, which can contain higher levels of cat fines, continues to increase, and outlined some of the preventative action that could be taken.

“The leading main engine makers MAN B&W and Wartsila specify fuel with a maximum of 15 ppm cat fines to be used in their engines, yet the ISO Limit remains higher, with refiners reluctant to pass on – or absorb – the additional costs involved in supplying fuel at the recommended level,” he said. ”They take the view that as all ships are built with a fuel treatment system that is capable of removing the cat fines to a level below the 15 ppm stated by engine makers, the onus is on the vessel operator to treat the fuel system.

“Yet ships' engineers are operating with one hand tied behind their back as they often do not know and cannot predict the quality of the bunker fuel being brought on board. In addition the industry has seen a fall-off in good maintenance practices, such as regular cleaning of fuel oil settling and service tanks. There are also industrywide concerns that there is a

tendency for shipyards to fit purifiers of the bare minimum capacity in order to save them money, which is achieved to the detriment of the shipowner.”

In conclusion he recommended that all fuel received on board should be treated as if it contains cat fines, and that the fitting of cat fine analysis equipment should be considered. In other words responsibility for eliminating cat fines lies with the ship operator.

Paul Hill

World Bunkering Special Edition 2013

Talking Points

A lawyer's perspective IBIA board member Trevor Harrison sets out his views on the cat fines issue

T

he perennial debate on bunker fuel oil quality has long occupied the minds of all sectors of the bunker industry. It will almost certainly continue to do so for at least the next 10 to 15 years, if not longer.

The issue of cat fines (minute abrasive particles of aluminium and silicon) in fuel oil is particularly interesting. For various reasons no-one wants them to be in the fuel at any point in the supply chain; refiners would prefer to retain them in the refinery for reuse and shipowners do not want them in their engines where they cause damage through abrasion. Nevertheless, they are usually present and cannot safely be ignored.

The present ISO 8217 2012 standard for marine fuels provides a maximum level for cat-fines (Al+Si) of 60 ppm, the 2005 standard allowed a maximum of 80 ppm, while a typical recommended maximum value for fuel entering an engine is around 15 ppm. Clearly, therefore, there is an expectation that a ship's fuel treatment systems need to be capable of removing, and will in practice remove, in the region of up to 65 ppm Al+Si, or about 80% of what is present. In practice, most ships are capable of reducing

World Bunkering Special Edition 2013

significantly higher levels of Al+Si to a safe level.

Successful preparation of fuel oil for injection into an engine on board a ship depends to a large extent on the crew having reliable information about the composition of the fuel. Some of the information will be on the bunker delivery note and the rest should be provided by routine analysis of the ship's delivery samples, always assuming that the sample analysed is representative of the whole. Once equipped with this information, the next step for the ship's crew is to make use of the analysis results properly to configure the ship's fuel handling and treatment systems to ensure that fuel of the best available quality is delivered to the engine, erring wherever possible on the side of caution.

It is sometimes suggested that suppliers could and should do more to reduce the presence of cat-fines in fuel oil. This usually comes as part of a wider complaint about the undeniable decline in fuel oil quality over the past 30 years. But the cost of reducing cat-fines to an insignificant level, which would probably be passed along the supply chain to end users, is likely to be considerable. It is also of questionable benefit when all ships still need to be properly equipped

and adequately manned to ensure that the fuel oil was in a fit state to be used immediately before entering the engines. Cat-fines are not the only impurities found in fuel oil and not all impurities are present at the time of delivery; a ship's bunker tanks can contain water, scale, rust and other debris, which needs to be filtered out.

So on-board treatment of fuel oil would still be necessary even if cat fines were effectively eliminated.

There is, however, one area where improvements can and should be made and that is by accurately and rapidly sampling and analysing fuel oil, before, during and after delivery. Ideally this is done with on-board equipment, in addition to the present practice of using shore-based laboratories. Accurate, real-time information on board a ship would allow optimal operation of the ship's fuelhandling equipment. It may seem an unrealistic aspiration, but the prospect of cost-effective realtime analysis of bunker fuel oil at various key locations as it passes from shore tank into bunker barge through bunker tanks, treatment facilities and into a ship's engines, is something that everyone with an interest in bunker fuel should be actively pursuing and promoting.

15

Setting the Scene

Setting the scene A look at the background to some of the key topics coming up for discussion

China As IBIA meets in Hong Kong, the growing strength of China's economy and its massive influence on a world struggling toward economic recovery is increasingly obvious.

This fact of economic life was reflected by the prominent position given by the International Chamber of Shipping, at its recent annual conference, to a presentation by an expert on the Chinese economy.

Wang Xiaobing teaches at the University of Manchester's Centre for Chinese Studies. He gave a detailed account of the drivers behind China's growth and the country's prospects over the coming decade or so.

If the EU is taken as a single entity, it is the world's largest economy. At about US$16.7 trillion in 2012, its GDP is just ahead of the US's, which is about $15.7 trillion. However China's GDP is just half that of the the US's, at $8.2 trillion.

That position is likely to change dramatically over the coming decade.

If China's economy grows at an average of 7.5% and the US's at 2.5%, China will overtake the US in total GDP by 2025. These growth assumptions are realistic.

Dr Wang argued that the continued growth of the Chinese economy was likely. While state capitalism has driven economic 16

growth so far, private investment was now set to keep the “virtuous circle” of high investment, high labour participation and high growth.

He said that rapid structural change was underway, with trade shifting from state to non-state enterprises and from agriculture to non-agriculture.

In the process, people will move out of agriculture into industry.

Chinese unskilled real wages have remained more or less unchanged since the period of “furious growth” up to 2005. And as more workers move out of agriculture there will be virtually unlimited supplies of labour at the subsistence real wage rate. Over 50% of exports are processing imports so, Dr Wang said, labour is the crucial element China has growing international trade and current account surpluses.

The country's official foreign reserve was $1 trillion at the end of 2006, growing to $2.1 trillion by October 2009 and $3.2 trillion now.

There are, however, many uncertainties. Dr Wang looked at the political context of economic growth, yet while many things could go wrong, China looks set to be the world's largest economy in about a decade's time.

A dominant Chinese economy can only have a huge effect on world shipping, and the marine fuel sector.

LNG The operator of a panamax bulker could save about US$2,750 a day at sea if LNG becomes available at 80% of the price of HFO, according to scenarios developed in a new study by Ocean Shipping Consultants. For capesize vessels the overall reduction could be $4,500 per day at sea In LNG as a Bunker Fuel: Future Demand Prospects & Port Design Options, OSC says that the potential for LNG as a bunker fuel to help reduce ship-borne emissions is considerable. When compared to HFO, NOx emissions are reduced by 80%, SOx by virtually 100%, CO2 by 30% and PM by 90%.

However OSC says that major developments of the LNG bunkering infrastructure need to take place before it can be viewed as a viable alternative to conventional fuels.

Over the past decade, the number of vessels that have either been designed to utilise LNG as a bunker fuel or have been converted to burn it has slowly increased. Currently there are around 40 trading vessels.

The current orderbook contains approximately 30 vessels.

The study predicts that the world fleet of LNG-fuelled vessels will increase to approximately 1,250 vessels by 2025 – still only a relatively small number.

World Bunkering Special Edition 2013

World Bunkering Special Edition 2013

In his report on a proposed new directive on alternative fuels, Carlo Fidanza says that, due to its advanced environmental performance, LNG “provides a high-potential solution in meeting the requirements for decreasing the sulphur content in maritime fuels in the Emission Control Areas (ECAs).

However the report stresses that any programme to develop bunkering infrastructure for LNG needs to take current market realities into account so that there are no investments in non-used or underused facilities.

Scrubbers While LNG has a lot of enthusiastic support and considerable potential, the need to meet the looming 0.10% sulphur limit in ECAs has led several companies to order abatement technology (scrubbers) for their ships. This will allow them to continue to use relatively cheap residual fuel.

One of the most significant announcements has come from the world's largest cruise company, Carnival Corporation. It has decided to install scrubbers on its ships that operate in North American waters, saying it has committed over $180m for exhaust gas-cleaning technology on 32 ships. These include vessels from Carnival Cruise Lines, Holland America Line, Princess Cruises and Cunard that sail regularly within the North American Emission Control Area (ECA).

Carnival Corporation & plc chief executive Arnold Donald said: "This is a significant accomplishment as well as an important milestone for our company. Working together with the EPA, US Coast Guard and Transport Canada, we have developed a breakthrough solution for cleaner air that will set a new course in environmental protection for years to come."

The company said that Carnival has been a partner in the development of this technology and will take the lead in further refining both design

and installation aspects on ships with a variety of engine configurations between now and mid-2016.

Carnival said that the “new generation” scrubber technology combined the removal of sulphur with the substantial reduction of particulate matter and black carbon.

It added: “Once the exhaust gas -cleaning technology is installed and fully operational on the various Carnival subsidiary ships, they will exceed ECA standards.”

Carnival's design is said to combine two established technologies that have been used successfully in power plants, factories and vehicles to clean – or scrub – the exhaust from highsulphur fuel. For the first time, the company says, this combination is being developed to accommodate restricted spaces on existing ships.

The company says in a statement that it has “received the support of the US Environmental Protection Agency (EPA), the US Coast Guard and Transport Canada to implement a significant advancement in environmental technology designed to reduce air emissions from cruise ships and large marine vessels”.

The agreement in principle from the EPA and Coast Guard would enable an exemption for Carnival to “use the fuel source that makes the most sense from an environmental and economic perspective”.

The agreement in principle is a requirement for the flag states of each Carnival subsidiary to grant permission for implementation.

The ships that will have the scrubber technology installed will use either low-sulphur marine gas oil or shore power when in US or Canadian ports.

As a next step, Carnival will be requesting permits from flag states to allow for the trial of the exhaust gas-cleaning technology to proceed.

Carnival, which operates a total of 102 cruise ships, says it plans to explore the possibility of expanding the installation of its scrubber technology beyond the initial 32 vessels.

Setting the Scene

That prediction could though be upset by a possible wholesale switch to LNG in Chinese waters.

Gao Huijun, deputy chief engineer with China Waterborne Transport Research Institute, was quoted recently as saying China could refit as many as 47,000 inland waterway vessels to take LNG. He also said there could be some 10,000 LNG-powered new buildings added to China's domestic fleet by 2020. In the same timeframe, some 300-400 LNG-fuelled port services vessels would be commissioned while coastal and ocean-going vessels would be starting to use LNG. A switch to LNG on this scale, even though it involves waterways vessels, is likely to give the more general use of LNG a massive boost, not least by developing LNG bunkering in China.

At the same time LNG projects are continually being announced in North America and Europe. The EU is particularly keen on seeing LNG take off in a big way as a marine fuel. Brussels is spending Skr305m (US$46m) in EU funds to ensure LNG bunkers are available at Sweden’s Port of Gothenburg “by 2015 at the latest”. A Port of Gothenburg press statement says that this is the aim behind collaboration between private infrastructure companies and the Port of Rotterdam.

"EU support is a clear indication of how important shipping is for sustainable transport throughout Europe," says Magnus Kårestedt, Port of Gothenburg chief executive.

According to the statement, a formal decision will be reached in a few months. The port says: “There are already strong indications that the investment in LNG terminals in Rotterdam and Gothenburg will be one of the European Commission's most prioritised 'Motorways of the Seas' projects ever.”

Meanwhile the European Parliament’s rapporteur on alternative fuels has called for a “sufficient number” of LNG bunkering stations across Europe.

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www.forumbunkering.ru

Physical supplier of LSFO, HSFO and MGO in the port of Saint-Petersburg

World Bunkering asked IBIA Singapore branch's outgoing chairman Lim Teck Cheng and incoming chairman Douglas Raitt for their views on local bunkering scene

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hat, in their view, had been the most significant developments in the Singapore bunkering scene over the past year?

Both men pointed to the continued momentum of the mass flow metering project. They noted this was being advocated by the authorities as the future of irrefutable bunker quantity measurement.

The other significant development has been increasing local interest by port authorities and players in LNG bunkering and in projects enabling the port to be ready to meet demand from LNG-fuelled ships.

Progress has been made on Coriolis meters in the past year, but what do Singapore-based IBIA members think?

Do some have reservations about it? Is the cost of installation an issue?

Mr Raitt comments: “From a fuel testing services provider perspective there appears to be some nerves rattled in the bunker surveyor community in terms of feeling that mass flow metering will increasingly displace the role of the bunker surveyor.”

But he adds: “I do not believe the reality will be that bleak. The role of the surveyor will change in to a more technically advanced role – so the trick is for surveyors to upgrade their skills in order to be mass flow meter ready.

At the end of the day buyer and seller of bunkers are naturally at opposite

World Bunkering Special Edition 2013

sides of the supply chain spectrum and some independent representation in the form of a surveyor will give fuel buyers in particular a level of comfort. Independent eyes and ears on the ground for the buyer to rely on should a dispute arise irrespective if a mass flow meter is being used or not.”

In the same vein, Mr Lim says: “A surveyor will in the future have the important role of ensuring the integrity of the system, by checking the sealing points of the piping and electronic system, as opposed to witnessing the accuracy of tank gauging currently.”

IBIA is, according to Mr Lim, “supportive of all new technologies that would increase efficiency productivity and reduce disputes”.

He says that while the cost of installation of mass flow meters is a consideration it has not become an issue, to the best of IBIA's knowledge.

Turning to what has been a hot issue, World Bunkering asked: “What is IBIA's position on the use of quantity surveyors? Are some barge operators still reluctant to allow certain surveyors access to barges or is this now a dead issue?”

Mr Raitt replied: “This is, by and large, no longer an issue and most surveyors are allowed by suppliers to attend deliveries to customer vessels.

Of course suppliers and buyers will tend to push for their own preferred surveying firm to attend.”

Far East Interview

The view from Singapore Emission Control Areas (ECAs) are in effect in northern Europe and North America. Are the ECAs starting to have an impact on the make-up of stems at Singapore? Are there more deliveries of multiple grades? If so so is this proving to be a challenge?

It seems that it is still early days for low sulphur fuel as far as the Singapore market is concerned.

“At this stage,” says Mr Raitt, “the supply mix for bunkers delivered in Singapore is still pretty much the same cocktail but some ECA compliant fuel (<1.00% m/m sulphur) is trickling into the market.”

Looking ahead, what challenges face IBIA in Singapore? Mr Lim says: “In order for IBIA Singapore to be truly representative of the industry, IBIA Singapore needs to have participation from all members of the industry; shipowners, buyers, traders, brokers, suppliers, bunker tanker operators, surveyors, maritime insurers and lawyers.

So can Singapore keep its premier position in the face of, especially, increasingly strong competition from Chinese-based suppliers?

The response here is upbeat. “For now it does appear that Singapore can retain its unrivalled position as a global bunkering hub due to its strategic location as well as unrivalled maritime services cluster making Singapore an attractive place for ships to call not only for bunkering but taking other services/supplies.”

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Far East

Training success As IBIA's Singapore-based regional manager Kwok Fook Sing reports, the bunker cargo course has bedded-in well

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BIA started providing bunker cargo officer courses some 17 months ago. These SS600 courses have been approved by the Maritime and Port Authority of Singapore .

As these are mandatory courses, all of the port's bunker suppliers have enrolled their staff on the training courses to obtain the required certification. More than 300 bunker cargo officers have now completed their training and been certified to sign off on the bunker delivery note.

Interestingly, we have also seen a good number of non-operational

staff, including managing directors and operation managers attending the basic courses, along side the office administration and accounts staff, bunker traders and ship operators.

In general, feedback has been very positive. Those going on the various courses have expressed satisfaction at having attained the necessary knowledge and required performance.

Personally, I am sure that there is a greater awareness of the SS600 standards among the Singapore bunker industry's workforce today

compared to the situation before we started running courses.

The course contents will be reviewed and necessary changes will be made once an ongoing review of SS600 standards themselves is completed in October next year. IBIA Asia will be ready to keep industry members up to date once the review is ready.

Encouraged by the response so far, IBIA Asia is now working on future training courses to meet the needs of the industry.

Cappuccino focus Following last year's allegations of 'froth' in bunkers taken at Singapore, which affected quantity measurements, IBIA convened a focus group consisting of members from the suppliers, bunker craft operators, bunker surveyors and ship owners/managers on so-called 'cappuccino' bunkers.

At the conclusion of the work, the findings were presented to the Maritime and Port Authority of Singapore for further action. MPA had also commissioned a research team to carry out scientific research on capuccino bunkers. While there have been no official updates yet, progress is understood to have been made and the findings are expected to be made public at the Sibcon event in October next year.

IBIA Asia has offered its input to the research team and will be expected to contribute further when field trials are conducted.

Singapore Shipping Association vigorously refuted the allegations at the time the reports surfaced. Since then there have been no further reports of capuccino bunkers at Singapore.

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World Bunkering Special Edition 2013

Far East

J-Bunker is forging ahead with a comprehensive training programme

J-Bunker delivers Although recently formed, Malaysia's only bunker industry association has come a long way

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in Malaysian Territorial Waters and ohor Bunkering Services developing a National Occupational Association (J-Bunker) was Skill Standard (NOSS) in bunkering. established three years ago. Its The comprehensive guide covers first notable action however was the regulatory framework and also when it organised a seminar in provides comprehensive information Malaysia in February 2011 that brought on safety issues. together all government departments J-Bunker collaborated with and agencies involved in bunkering.

Malaysia's Department of Standards Since then, says the association's Development to create the bunkering secretary Wan Sabri, J-Bunker NOSS. Sabri notes: â&#x20AC;&#x153;Malaysia's has played a prominent part in bunkering industry has just started co-operating with the authorities. to develop proper regulations Its client's social responsibility (CSR) programme works in collaboration with Malaysia's maritime enforcement agencies to implement a one-stop centre for reporting any crimes, illegal transfers, wrong-doing by government officers, complaints and other issues related to bunkering and maritime activities in Malaysia, and especially in the State of Johor.

Last year it organised the Malaysia Bunker Convention in collaboration with IBIA and co-operation continues between the two organisations.

However its two biggest achievements are in publishing Guidelines J-BUnker's success "could be a model for use elsewhere" on Bunkering Operations

World Bunkering Special Edition 2013

and enforcement procedures.

Now J-Bunker is moving on by implementing training courses that are available throughout Malaysia.

He added that the NOSS-compliant course modules are 20-30% theory with the remainder being practical.

Topics covered include aspects of the supply chain.

Sabri feels the J-Bunker model can now be exported: â&#x20AC;&#x153;I believe the Malaysian experience can be used as an example to follow elsewhere.â&#x20AC;?

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Interview

Half a step ahead World Bunkering's Editor David Hughes asked Evgeny Gryaznykh, CEO of Russian Far East-based Nayada, how it has become the region's biggest bunkering company

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ifteen years ago Nayada started out as a ship's chandler. Now it operates the largest bunkering fleet in the region, with a total deadweight exceeding 20,000 tonnes and supplies over 70,000 tonnes a month.

David Hughes: Looking at the past 15 years since Nayada was established, how much has the bunkering business changed in the Russian Far East?

Evgeny Gryaznykh: The bunkering business has changed considerably. The number of players in this market has increased many times.

Huge companies such as Rosneft, Gazpromneft, Alliance have moved in.

This has greatly increased competition and pushed up the number of bunker operations. The quality and service provided by the region's bunker suppliers now equal international standards.

DH: What challenges did Nayada have to overcome to build up its current dominant position in the market?

EG: With the bunkering business developing so quickly the basic objective for us is to be half a step ahead from our competitors. How achieve that has been the main problem that we have been trying to overcome for all these years.

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Evgeny Gryaznykh

DH: What makes the Russian Far East bunkering market different to those in other Russian regions?

EG: It has great potential because of the proximity of both economically advanced and developing countries and also due to its geographical position on transpacific route between Asia and America.

DH: Can you outline how important the different sectors of the shipping industry are to Nayada. The region is well known for its large energy related projects. Will these generate additional business for bunker suppliers such as Nayada?

EG: Today we supply ships carrying oil cargoes between Far Eastern ports for large Russian companies participating in power projects on the Sakhalin Shelf. This is certainly one of the top priorities for the companyâ&#x20AC;&#x2122;s further development.

DH: How confident can ship operators be of the quality of bunkers taken in the Russian Far East? For example, in other parts of the world, the presence of high levels of cat fines is becoming a problem. Is this an issue in your region?

EG: Shipowners can be 100% sure that the quality management system in place at Nayada Co.,Ltd prevents the delivery of poor quality bunkers. In its 15 years of operation the company has never received any claims in respect of the quality of its oil products or of cat fines content.

DH: I know Nayada is already supplying low sulphur fuel which complies with ECA regulations. Are you seeing increased demand for this fuel?

EG: Yes, we are certainly seeing this and the increase is significant. Our company has production facilities that allow us to supply certified low sulphur fuel, corresponding to requirements of ECA. Taking into account more than two years of work experience in this field and the production volumes, we are able to position ourselves as the leading player in this market.

DH: There has been a lot of publicity elsewhere in Russia about the requirement to only take bunkers alongside a berth. Is this an issue in your region?

EG: No, itâ&#x20AC;&#x2122;s not an issue here.

DH: Looking ahead. How do you see the prospects for the region's bunker business in general, and for Nayada in particular.

EG: Considering the untapped potential of bunker oil consumers, by that I mean the countries of AsianPacific region, the bunkering business has the necessary foundation to develop and to increase volumes. However, it requires technical modernisation of the whole infrastructure, from railways to oil loading terminals.

World Bunkering Special Edition 2013

Russian update

Russia's alongside-only row A new ruling that effectively bans the use of bunker tankers in ports where fuel can be taken alongside the berth has caused dismay across the country's bunkering community

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new ruling from Russia's customs authorities came into force this summer and is already seriously affecting Russian bunkering companies using tankers to supply vessels. The problem first became apparent at the Baltic Sea port of Ust-Luga but has now spread as far as Russia's ports in the Far East.

Baltic Sea port of Ust-Luga

World Bunkering Special Edition 2013

Russia's chief of the central energy customs (CEC), Pavel Strelnikov, has apparently ruled that if a port has a dedicated oil terminal, as is the case at Ust-Luga, bunkering operations may only be carried out at the berth, according to Russian news provider PortNews.

PortNews reports that it was told by major players in the market that all

tankers calling at Ust Luga are currently supplied with bunkers at the inner anchorage.

According to the bunkering companies, the CEC's ruling means bunkers must be delivered at the port's three oil terminals, JSC RosneftBunker, LLC Novatek-Ust-Luga and SiburPortenergo, which is still under development. However, market insiders say that the oil terminal operators refuse to allow bunkering operations at their berths as they do not have the necessary equipment or capabilities.

Most Russian bunkering companies surveyed by PortNews, said that as a result, the bunkering of tankers, which constitutes a large proportion of calls at the port of Ust-Luga, will be stopped.

The row is known to have reached the ears of the country's president Vladimir Putin after a number of senior figures in the bunker industry, including the president of Rosneft, Igor Sechin, took the issue to him recently.

The deputy head of the Federal Customs Service of Russia, Ruslan Davidov, has been quoted as saying that some shipowners resorted to complicated schemes to get duty-free fuels and the 'alongside-only' rule was in response to that.

According to some, the new policy is now being applied only to stems of more that 1,000 tonnes.

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www.ybunker.com

Russian update

Gloomy predictions In 2012 the Russian Far East's bunkering market experienced phenomenal 70% growth and achieved 3.2 million tonnes of sale. This trend continued until the customs authority's ban on off-shore bunkering came into force on August 22, 2013

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he reason for the Russian Far East's recent growth spurt is absolutely clear: the world shipping industry is under pressure to cut expenses drastically. The price difference between bunkering in Singapore and Primorje is $90â&#x20AC;&#x201C;110 a tonne and a significant number of large shipping companies called at Russia's Far Eastern ports for bunkering. The greater the volume of fuel bought, the greater the savings in comparison with bunkering in Singapore.

Since the offshore bunkering ban, the market leader, RH-Bunker, which has a 30% share of total sales, has almost left the bunkers-only market. It is now focusing on spot deliveries to vessels calling at Primorje ports for freight operations. Large customers include Maersk and CMA CGM. RH-Bunker's monthly sales are between 150,000 and 170,000 tonnes.

Aliance-Bunker has expanded operations to Uglegorsk and Shakhtersk ports on Sakhalin. It continues to operate in the spot market but also has concluded several long-term contracts.

It is difficult to increase output and support sustainable growth without owning a tank farm complex.

Gaspromneft Marine Bunker does have those facilities availble and mainly

World Bunkering Special Edition 2013

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Bunkering in Sea Of Ohotsk and Bering Sea. Transportation wholesale and retail of oil products in the Russian Far East ports

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World Bunkering Special Edition 2013

Rosneft in LNG plant deal with Sakhalin administration The major, largely state-owned Russian oil company Rosneft has signed a new co-operation deal with the Sakhalin Administration, which included the construction of an LNG plant The agreement was signed by Alexander Horoshavin, governor of Sakhalin, and Igor Sechin, Rosneft president.

This contract covers the construction of the plant and necessary regional infrastructure.

There are two possible locations for the production facilities. One site is near the Ilyinskoye settlement and the other is near Taranay settlement, according to the Sakhalin-Kurils news agency informed.

According to the Sakhalin Administration's website, the two sides made agreements on many issues including: processing of hydrocarbons, fuel supplies for the airports, modernisation of Ohinskaya thermal power plant, oil and oil product supplies, expansion of fuelfilling station network and others.

Rosneft plans to build an LNG plant with annual capacity of five million tonnes in co-operation with ExxonMobil, following an agreement between the two companies in February this year. The plant is estimated to cost $15 billion, with commissioning expected in 2018. The plant will be supplied from Rosneft reserves in the Far East and gas reserves on Sakhalin.

Rosneft concluded agreements on LNG sales from the new plant with

Japanese companies Marubeni and Sodeco (1.25 million and 1 million tonnes a year respectively) and Vitol trading company (2.75 million tonnes) at the Petersburg International Economic Forum.

Energy Minister Alexander Novak said that the Russin Parliament may consider a law on liberalisation of LNG export in the autumn and adopt it by the end of this year because both Rosneft and NOVATEK insist on it.

At the forum, Sechin suggested that Rosneft may involve two other partners in the construction of LNG plant on Sakhalin – Sodeco from Japan and ONGC from India. These companies already own shares in Sakhalin-1 project (Exxon – 30% and Rosneft – 20%).

In a further development, Rosneft and ExxonMobil have now selected CB&I UK and Foster Wheeler Energy as contractors for the initial phase of the LNG plant project – front-end engineering and design (FEED).

The companies plan to complete the design phase during 2013–14.

This will include the selection of gas liquefaction technology, basic equipment requirements, engineering surveys, preparation of project documentation in compliance with Russian standards for the LNG plant, hydro-technical facilities, gas pipeline supply, and evaluation of the project's environmental impact.

Rosneft says that during the project design phase, negative environmental impacts on the unique ecosystem of Sakhalin Island will be avoided, and local infrastructure will be developed.

Russian update

handles its own product. Currently, Gaspromneft Marine Bunker handles most heavy fuel oil through the Transit DV terminal in Slavjanka port.

Bunkering company Tsetan has put its second tanker, the 1,000 dwt Phoenix, in operation.

Meanwhile Summa Group intends to cover 15% of the bunkering market after its purchase of Phesco shipping company at Vladivostok. These plans seem realistic because Summa has wide experience in bunkering services in different Russian regions and owns an oil terminal in Vladivostok.

However, World Bunkering has found it impossible to discover how those plans are progressing, either from the company’s press representative or from market experts.

The low-sulphur fuel market is well established in the Far East. Every container vessel going from Asia to the US buys fuel in the ports in this region, usually from 200 to 700 tonnes of LSFO per operation. The LSFO prices are approximately $50 higher than HSFO per tonne and monthly deliveries are not less than 5,000 to 7,000 tonnes.

As for short-term prospects, the previously optimistic trend changed sharply after the ban of offshore bunkering. The bunker-call only market segment is under serious pressure and monthly deliveries are down some 30,000 tonnes overall in the Primorje ports. Industry experts are very pessimistic with their predictions, forecasting further monthly reductions of about 40,000 tons.

The Russian Far East's bunker market comprises five main regions: Primorje, Khabarovsky Kray, Sakhalin, Kamchatka and off-shore bunkering for the fishing fleets Cargo throughput at the Far East ports was 134.2 million tonnes in 2012 and 70.5 million tonnes in the first half of 2013. There are 14 port oil terminals offering bunkers in the Russian Far East. Total regional sales of marine fuel are about three million tonnes, a third of the whole Russian market.

Bunker fuel oil mainly comes from the Achinsky, Angarsky, Komsomolsky and Khabarovsky refineries.

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Tecnical

Wind power comeback?

Fixed-wing sail technology could cut a bulker's fuel bill by 30%

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loyd’s Register (LR) has carried out an independent assessment of UK-based Windship Technology’s Auxiliary Sail Propulsion System (ASPS) concept. ASPS uses fixed-wing sail technology that involves two 35-metre high masts installed on the deck of a vessel, each with three aerodynamic wings fitted. The masts or rigs rotate automatically to exploit the power of the prevailing wind. As the speed and angle of the wind changes, and the system gains more power, the vessel becomes less reliant on conventional power from the engine. Hence, the same speed is achieved with less fuel.

LR’s Technical Investigation Department carried out a computational fluid dynamics (CFD) assessment on a supramax bulk carrier in varying wind directions and speeds. These showed that ASPS has the potential to provide more than 50% of the required propulsive thrust a vessel needs, depending on conditions. In the right conditions, according to LR, this could save a typical bulk carrier 30% of its fuel costs on a voyage.

LR’s head of sales and marketing, Hector Sewell, said: “Should these results be reflected in the actual operation of a real ship, the fuel savings will be very significant and will be of great interest to the owners and operators of suitable ships. We look forward to helping clients understand how such a system can help them.”

World Bunkering Special Edition 2013

Simon Rogers is the UK-based designer of the ASPS and is an award-winning yacht designer. He said: “I am very excited by the new concept, which is taking the very latest principles of sailing and applying them to modern ship design.”

Windship Technology is described a “consortium of five key players in the global shipping industry”. One consortium member is Lars Carlsson, former president of Concordia Maritime. He said: “There is a huge fleet of ships built during the last 10 years that risk being scrapped prematurely due to their high bunker consumption. They consume about 15% more bunker oil than the best ships being ordered today. Prudent charterers prefer low-consuming ships for economical and environmental

reasons, and the previous fleet risks being left as a second or third alternative for charter.

According to Carlsson, ASPS installed in these older ships would immediately reduce their bunker consumption and also save them from being scrapped prematurely and replaced by new ships.

Paul McStay, lead environmental specialist at LR and the LR Windship Technology project co-ordinator, said: “LR is working closely with Windship Technology to provide concept through to full-scale support, covering both classification, installation, integration and design approval support, as well as performance verification and operational assurance at a time when the system is fitted for full-scale application.”

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Legal Port of Los Angeles. Ships that do not switch to distillate fuel in Californian ports risk big fines

California cracks down Delegates at this year's IBIA Convention will discuss environmental issues against a background of increasing legislative controls being imposed around the world, with California leading the way

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or about about five years the US state of California has imposed a ban on the use of residual fuel within its waters and has backed this up with hefty fines.

In August the California Air Resources Board (ARB) fined three shipping companies a combined US$440,250 for violations going back to 2011. The language used by ARB gives a taste of how the whole issue is seen, not only in California, but much more widely.

A statement says the companies' ships failed to “switch from dirty 'bunker' fuel to cleaner, low-sulphur marine distillate fuel upon entering Regulated California Waters, as required by state law.”

“Ships en route to California ports emit thousands of tons of diesel exhaust each year,” said ARB enforcement chief Jim Ryden. “Our regulation requiring ocean-going vessels to switch to cleaner fuel within 24 nautical miles of our shoreline protects all California residents, especially those in port communities, from this air pollution.”

An ARB investigation found that, on 17 visits to California ports between November 6, 2009 and July 18, 2011, the Hoegh Inchon operated

30

its main engines within Regulated California Waters on bunker fuel, “a dirtier fuel oil that contributes to onshore pollution levels of diesel particulate matter, sulphur oxides and nitrogen oxides”. The ship's Norwegian parent company, Hoegh Autoliners was fined $299,500.

In August 2012, after calling at Los Angeles, the K-Pluto was reported for failing to switch and Singaporebased Twin Phoenix Shipping was fined $53,000.

In February this year, when calling at the Ports of Stockton and Long Beach, the Ikan Bawal also failed to switch fuel and ARB fined its Panamanian owning-company, NCN Corporation, $87,750.

ARB says that all three companies complied with ARB’s investigation and agreed to abide by all pertinent ARB regulations, follow fuel switchover requirements, and keep accurate records. The fines go to the California Air Pollution Control Fund to support air quality research, The ARB conducts over 500 ship inspections each year, checking for proper fuel usage, record-keeping and other compliance requirements, and takes marine gas oil or marine diesel oil samples for submission to the ARB laboratory to ensure they

meet California standards for sulphur.

The statement does not mention how the Hoegh Inchon managed to use “dirty fuel” 17 times over 20 months without anybody noticing.

But the size of the fine will no doubt be seen as a credible deterrent.

In fact ARB says the compliance rate is very high, hovering at around 95 percent. It claims the measure eliminates 15 tons of diesel particulate matter– a known carcinogen - daily from ocean-going vessels’ exhaust.

The Californian authorities consider the regulation to be a vital tool in helping to reduce cancer rates and premature deaths among those who live near the state’s busy ports and trade corridors.

ARB notes: “Diesel exhaust contains a variety of harmful gases and over 40 other known cancer-causing compounds. In 1998, California identified diesel particulate matter as a toxic air contaminant based on its potential to cause cancer, premature death and other health problems.”

World Bunkering Special Edition 2013

With its own storage and loading terminals and 13 bunkering barges, YugBunkerService is one of the leading fuel providers in southern Russia

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ugBunkerService is a rapidly developing group of companies providing bunker services at the ports of the Black and Azov sea, and at the number of internal and river ports in Russia.

The group supplies a full line of top-grade marine fuels (a wide range of IFO and MGO) and engine oils to sea-going and river vessels.

YugBunkerService has been in bunkering for 17 years. Since launching our business in 1996, our priority has always been to meet and satisfy the requirements of our clients, providing superb service and high-quality fuel products at fair price.

Years of hard work in the field have given us invaluable experience and the opportunity to establish a well-developed infrastructure for delivery, storage and bunkering of marine fuel. As a result, we have grown to become one of the leading fuel providers in southern Russia.

Having our own marine storage and loading terminals, plus a fleet of 13 vessels with deadweight ranging from 200 to 5,700 MT, we are flexible and capable of coping with the demands of all our clients, from small independent carriers to large shipping lines.

Being one of the biggest and most reputable bunker companies in the regional market, YugBunkerService has long-term and mutually beneficial relationships with large Russian, Turkish, Ukrainian and Greek shipping companies, as well as with a number of bunker traders operating at the Black and Azov sea.

World Bunkering Special Edition 2013

YugBunkerService is a member of the Russian Association of Marine and River Bunker Suppliers, and of the International Bunker Industry Association.

Recently we expanded the number of ports that we service at and currently we are operating bunker deliveries at the ports of Rostov-on-Don, Azov, Taganrog, Yeisk, Kavkaz, Temryuk, Taman, Saratov, Syzran, Samara, Volgograd and Astrakhan.

Our team is pleased to offer you our experience and knowledge, best prices and an excellent service on a 24/7 basis. ⏏

Key information • Offices in Rostov-on-Don, Taganrog, • • •

•

Yeisk and the port of Kavkaz Fleet of 13 own bunkering barges complying with loading and supply regulations Our own storage facilities, giving flexible bunker delivery options Our own terminal at the port Temryuk, providing safe fuel loading on tankers of up to 5000 DWTs Fuel deliveries compliant with MARPOL and SOLAS regulations.

Our competitive advantages • Wide range of top-grade marine fuels • • • •

from leading Russian oil refineries Well-developed and extensive supply network; Best prices for our clients Equal high-quality services at all our ports of delivery Widespread compliance of our barges and loading facilities with all legal and environmental requirements.

Company news

YugBunkerService

For more information, contact: Rostov-on-Don Tel: +7 (863) 242-44-86 +7 (863) 242-44-87 +7 (863) 242-44-88 E-mail: rostov@ybunker.com Yeisk Tel: +7 (86132) 2-60-64 E-mail: yeisk@ybunker.com Port Kavkaz Tel: + 7 (86148) 4-43-47 E-mail: kavkaz@ybunker.com Website: www.ybunker.com

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Company news

Tranzit-DV A smooth bunkering operation is a given with Tranzit-DV

I

n the summer of 2013, there was a landmark event in the history of the Primorsky region. That was the opening of a bunker hub in the port of Slavyanka.

Container ship Apl Vanda (14,000 TEU), owned by the world's biggest container line APL, was built in Korea in July 2013.

A visit to the Russian port for bunkering operations was part of the vessel's first voyage. As a result, the container received more than 8,000 tons of fuel per day.

Bunkering was performed by tanker Vladimir Vysotsky, owned by group 'Transit-DV'.

The team from 'Transit-DV', along with the head of Khasan district settlements and the head of the district and port authority

met the vessel’s crew with “bread and salt”.

The ship was then provided with some vegetables and products supplied by Primorsky regional producers.

The arrival of one of the biggest ships of its class in the world marked the opening of the bunker hub in Slavyanka. The transaction was a significant step in promoting the development program of the Far Eastern ports. Today, the 'Transit-DV' group promotes active development of contracts, not only for the fuel supply, but also for the rendering of related services.

Guaranteed contracts for the supply of organic vegetables grown in the Primorsky region are also at stake. This will provide

impetus for the development of farming in Primorsky Territory since a market for large shipments will be guaranteed by contracts.

Moreover, the creation of a bunker hub will facilitate the development of hotel and recreational businesses in the Khasan area.

The overall bunkering market in SouthEast Asia is about 65 million tons of oil a year, 43 million tons of which is from Singapore – the largest bunker port hub in the region. The port of Pusan is the second-biggest in the region .

Creation of an international bunkering hub in Slavyanka is the part of a large project. It will result in the multifunctional development of the port areas over an area of about 45 hectares. Project creators intend to use the favorable geographical location of the territory and to create here in the Far East, the largest multi-modal logistics center with a developed infrastructure and backbone transport network – rail, road, sea, air.

A Khasan multimodal logistics centere will be able to handle ships up to 150,000 deadweight tons. To do this, existing port facilities will be upgraded, and a container terminal and trans-shipment facility for general cargo will be built along with a railway siding. A raid cargo complex will start to operate, and a specialised fleet will be purchased. Total funding for the project is $34 million. The investment program is created for three years. ⏏

For more information, contact: 13 Uborevicha Street, Vladivostok, 690091, Russia Tel: +7 (423) 249-11-99 Fax: +7 (423) 248-11-28 E-mail: tranzit@tranzitdv.ru Website: www.eng.tranzitdv.ru

THE ONLY OFFICIAL MAGAZINE OF

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World Bunkering Special Edition 2013

Connecting your business with the brand that you can trust

S

eabridge Bunkering Pte Ltd was incorporated in Singapore in September 2004. In the span of nine years, we have established our reputation in the shipping industry, particularly in the ship bunkering business within the Chinese shipping community.

On an annual basis, Seabridge Bunkering handles volume of up to 500,000 mt of bunker supplied to customers worldwide with an annual turnover of more than USD200 million. Through the combined efforts of our employees, Seabridge Bunkering consistently strives to create value for our customers and stakeholders.

We attribute our success to: • The unwavering valuable support of our customers and fuels suppliers around the world; • Adopting the right strategy to focus on our core businesses with the support of an efficient team who serves with passion; • The core values which we endorse and nurture our employees all these years:

Rooted in the beliefs of Humility and Integrity, we dedicate our Passion for Excellence in the Community.

Seabridge Bunkering is part of the Bilsea Group which engages in a diversified range of shipping activities including ship bunkering, ship chartering, commodity trading of asphalt and other petroleum products and bunker hedging, etc. Our group of companies are: • Billion Gain Enterprise Pte Ltd – founded in 1994 and it was the first company under the Bilsea Group. We act as a ship operator for dry/bulk cargo with offices in Singapore, China and America.

• Bilsea International Pte Ltd – incorporated in 2008 as a trading platform to focus on several petroleum products such as fuel oil, asphalt, base oil, iron ore and coal.

• Bunkerbridge Pte Ltd – incorporated in 2010 as an online bunker trade portal to offer online spot trading and forward contracts to our most valued customers who will enjoy the convenience of online bunker trade

and/or a fixed bunker cost amid volatile and unpredictable energy market.

• Bilsea Tankers Pte Ltd – incorporated in 2011 with the intention of obtaining the physical supplier license and bunker craft operator license. In doing so, we will strengthen our competitive advantage in the bunker industry to serve our valued customers better. Wider coverage of customer base particularly first class customers and better control of bunker quality and quantity in line with international standards are much desired and expected for a sustained success. ⏏

Company news

Seabridge Bunkering Pte Ltd 海橋油供有限公司

For enquiries, please contact us at: 3 Church Street #12-03 Samsung Hub Singapore 049483 Tel: +65 6536 4198 Fax: +65 6536 4482 email@seabridge-bunkering.com

Galp Energia Group Portugal's premier supplier of fuel services

B

ased at Lisbon, Galp Energia Group, is able to offer fuel supply services to all ships visiting this warm and pleasant country.

Galp Energia's professional bunkering team provides customers with high-quality fuels and services, as well as the highest safety standards in all its bunker activity. The company’s bunkering products fulfil the ISO 8217: 2010 specification in all grades. To help customers’ achieve environmental targets, the company can also supply low-sulphur fuels at several ports, with the port of Lisbon being the main port for low-sulphur fuel.

By optimising its logistics resources and storage capabilities, Galp Energia is able to provide high-quality services and products, including a wide variety of marine distillates.

It is Portugal's main bunker supplier and provides bunker services using its two barges, with capacities of 5,800 tonnes and 3,000 tonnes each.

The 5,800 dwt double-hull barge, Bahia Tres, began operations in 2010 to support the company’s business in the ports of Sines and World Bunkering Special Edition 2013

Setúbal, meeting all the important aspects for safety and protecting the environment.

It is equipped with anti-pollution measurers and is covered by European Maritime Safety Agency regulations in the Atlantic Ocean and Mediterranean Sea. Always aware that its customers’ main concern is product cost, the company offers competitive prices without compromising product or service quality.

Visiting Portugal and being supplied by Galp Energia will always be a good decision for regular customers, used to working with a professional team.

We are the only refinery in Portugal and operate refineries at Sines and Matosinhos. We have an extensive product range that includes gasoline, diesel fuel, jet fuel, fuel oil, LPG, bitumen and several aromatic products. Our refining business is responsible for the supply of oil products to our retail, wholesale and LPG marketing divisions, competitors and foreign customers, as well as for the operation of our refining and logistics assets.

We hold a significant position in the Portuguese crude oil products storage market. Our two refineries in Portugal together represent 20% of the Iberian refining capacity and collectively account for the majority of Portugal’s annual domestic petroleum product requirements.

We are investing approximately €1.4bn to upgrade and improve the efficiency of our refineries, representing €1bn for Sines and €0.4bn for Matosinhos. ⏏

For more information, contact: Galp Energia SA Tel: +3512 1724 0637/654 Fax: +3512 1724 2957 E-mail: bunkers@galpenergia.com Web: www.galpenergia.com

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Company news

OMV PETROL OFISI One of the largest listed industrial companies in Turkey

O

MV Petrol Ofisi A.Ş., which is one of the largest listed industrial companies in Turkey, is built on 71 years of experience with its 1,000 employees. OMV Petrol Ofisi is Turkey's leading fuel products distribution and lubricants company with 2,272 filling stations, 1 lubricant plant, 10 fuel and 3 LPG filling terminals, 25 airport supply units and over 1 million m³ storage capacity. With a broad dealership network the company operates Turkey's most extensive retail fuel sales network system.

OMV Petrol Ofisi is a major physical bunker and lubricant supplier at all Turkish ports. As well as being a physical supplier at Turkey, company provides a global trading service with its extensive supplier network all over the world.

Petrol Ofisi Marine team with its expert staff trained in marine sector and its high performance fuel and lubricants offers specialized and customer focused services for the shipping companies using the market knowledge, marine expertise

and purchasing power. Being proud of offering high quality marine fuels with its huge logistical support and marine experienced team whom are reachable on 7 days and 24 hours, Petrol Ofisi Marine Team establishes long lasting relationships with its clients and help them to minimize their bunker expenses by implementing of an effective fuel purchasing management. ⏏

Tel: +90 212 329 15 55 Fax: +90 212 329 17 01 Email: marine.sales@poas.com.tr

Gazpromneft Marine Bunker Ltd Market leadership is our goal

G

Gazpromneft Marine Bunker, operator of Gasprom Neft’s bunker business, has made its second acquisition in the international marine fuel market (after Marine Bunker Balkan S.A. in Romania) with the purchase of Estonia-based AS Baltic Marine Bunker. The Estonian company manages a bunker vessel with a deadweight of 2.786 mt that can supply both dark and light marine fuels. The company is in charge for bunkering operations in the Baltic sea ports of Estonia. AS Baltic Marine Bunker has taken over the bunker business from NT Marine, the company which was well known in the bunker market. Gazpromneft Marine Bunker, which is already active in the Baltic bunker market, plans to sell at least 270,000 metric tons a year of marine fuel in Port of Tallinn. The fuel is originally from Gazprom Neft's refineries in Russia with the sulfur content of 1%.

Gazpromneft Marine Bunker is a bunkering business operator of Russia’s 4th largest oil and gas company Gazprom Neft.

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The enterprise was founded in October 2007. It includes nine regional offices and four subsidiaries: Gazpromneft Shipping LLC, which operates the Company's own fleet of 8 fuelling vessels, Gazpromneft Terminal SPB LLC, which operates a bunker terminal in St. Petersburg; Marine Bunker Balkan S.A. (bunkering in the Black Sea port of Constanta), AS Baltic Marine Bunker (bunkering in the Baltic Sea port of Tallinn).

Gazpromneft Marine Bunker is a leading operator in the Russian bunker market, with the widest geographical reach of any Russian bunker company. It operates at all major ports in Russia including 16 sea ports and 13 river ports. ⏏

Gazpromneft Marine Bunker Ltd Bolshoy Prospect 80 block R, Vasilyevskiy ostrov, St-Petersburg, 199106, Russia Tel: +7 (812) 449-49-70 Fax: +7 (812) 449-46-28 E-mail: marinebunker@gazprom-neft.ru Website: www.gazprom-neft.ru

World Bunkering Special Edition 2013

Offers fuel-related services, from purchasing all fuel types, to delivery, 20 years

N

iko Group offers fuel-related services, from purchasing all fuel types, to delivery, which is completed by the group's own bunker fleet. The services are undertaken by the group's specialists, who each have broad experience. Partners working with Niko Group have achieved benefits for over 20 years.

One of Niko Group's strengths is that it owns tank farm complexes in Vladivostok with a total capacity of 40,000 cubic meters and a drain front for 30 railway tank cars. Piers located close to the port allow docking to take place quickly – four tankers with draft of up to 10 meters can be loaded and unloaded.

The group's fleet provides bunkering in all ports of the Russian Far East and in the fishing expedition areas in Okhotsk and Bering Sea, and transports fuel to ports in the Asian-Pacific region.

Niko Group owns six tankers with a total bunkering tonnage of more than 30,000 tons.

The group provide barges for its partner companies GazpromNeft Marine Bunker and RN-Bunker for such vessels as MOL, ZIM and Maersk. Its fuel is covered by all MARPOL and SOLAS regulations.

Niko Group is also a trading and supply company, managing bunker operations in the Asian-Pacific ports of Korea, Japan and China. The group's flexible price policy is aimed at attracting new partners.

Currently, the group offers the best terms for bunkering in the Russian Far East. ⏏

NIKO GROUP 167 Svetlanskaya St., of. 318, Vladivostok, Russia, 690001 Tel/fax +7(423) 226-81-05; +7(423)226-82-56

Company news

NIKO GROUP

Andrei Velikorodnyi Mob.: +7 908 463 89 06 Yahoo ID: velikorodnyi Ilya Shapovalov Mob.: +7 924 730 55 75 Yahoo ID: ilya.shapovalov E-mail: office@nikobunker.com www.niko-group.com

Morskoy Trust LLC A fuelling company that is going from strength to strength

E

stablished in 2007, Morskoy Trust LLC fuel supply company is based in the city of Petropavlovsk-Kamchatskiy in Russia. Its main activities are fuelling of fishing vessels operating in the Sea of Okhotsk and the Bering Sea, wholesale and retail sale of oil products in the Far Eastern sea ports, and oil transportation.

The company operates 11 vessels, comprising eight oil carriers and three fuel vessels, with a total deadweight of 47,550 tons. All the company’s vessels are ice-class ships capable of operating in any navigation area throughout the year. They meet all the requirements of the Russian Register of Shipping and the latest requirements of MARPOL 73/78 – International Convention on Marine Pollution.

All vessels are equipped with heating cargo systems, which makes it possible to transport any oil products and they can carry several types of various oil products at one time.

Morskoy Trust holds membership with the Russian Association of Marine and River

World Bunkering Special Edition 2013

fuelling companies. It has undergone strong growth in recent years, due to its constantly increasing number of customers, highly qualified staff and reliable business partners.

Our company is continually expanding its business areas. During the 2013 navigation season our tanker Yaroslav Mudryi sailed via the Northern Sea Route to deliver bunkers in the Newfound Land region. The ship then loaded a diesel fuel cargo at Archangelsk and took it to PetropavlovskKamchatskiy. The company will continue

to increase the volumes it carries on the Northern Sea Route. Following our initiative, Petropavlovsk-Kamchatskiy port administration is working on establishing a bunkering anchorage off the port for passing internationally trading vessels a draft of up to 22m. The offshore bunkering location is expected to be approved in December 2013. ⏏

Morskoy Trust LLC Kamchatskiy region Office 206, 37 Vladivostokskaya str Petropavlovsk-Kamchatskiy Kamchatskiy krai, 683024, Russia Phone/fax: 8(415-2) 23-07-63, 23-29-04 E-mail: msflot@mail.ru

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Diary

11-12 November 2013

4th December 2013

Offshore Security Oil and Gas – Nigeria Summit

2nd Annual Mediterranean Bunker Fuel – Barcelona, Spain

Nigeria, known as "the Giant of Africa", is the most populous country and the largest oil producer in Africa which has brought great revenues to the country. The Nigerian Oil industry is plagued by several challenges to achieve its maximum output potential.

Due to the prevailing security problems the Nigerian Oil Industry has faced immense losses, from pirate threats, oil thefts on and offshore, Oil bunkering and poor infrastructure.

www.maritimesecurityinternational. net/events.php

Platts 2nd Annual Mediterranean Bunker Fuel 2013 conference will provide those in the industry with an opportunity to discuss and acquire solutions to challenges including the expense of burning higher specification and more environmentally friendly fuels, complying with industry standards and emissions targets, fleet conversions, and dealing with decreased profit margins.

www.platts.com/ mediterraneanbunkerfuelconf_ registrations@platts.com

25 March 2014 LNG Ship Fuel Technology – Kintex1, Korea

26 November 2013

17th March 2014

Turkish Maritime Forum 2013

CMA Shipping 2014 – Connecticut, USA

A nation repositioning itself in maritime trade Seatrade and TradeWinds present the Turkish Maritime Forum, a new approach to Turkish shipping, designed for a nation repositioning itself in maritime trade.

Gastech is the world’s favourite meeting place for energy professionals working in the natural gas and liquefied natural gas (LNG) industries.

Established as the leading international event for technical and commercial executives, and operating on an 18 month cycle, the event celebrates its 42nd birthday in 2014 when it will be held in South Korea, hosted by KOGAS.

www.gastechkorea.com

Conference and Exposition where experts from around the world speak on the many issues that will shape the future of the maritime industry.

www.shipping2014.com

www.turkishmaritimeforum.com

26 March 2014

3 December 2013 Marintec China 2013 – Shanghai Regarded as the only gateway to the Asian maritime market, Marintec China has grown to the largest than ever!

Being the most recognized maritime trade show in Asia, Marintec China is definitely an international marketplace for buyers to source from international sellers showcasing their latest marine, ship design, offshore engineering and port technology.

www.marintecchina.com

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19 March 2014 Asia Pacific Maritime – Singapore Asia Pacific Maritime (APM) is the one-stop market for the region’s maritime community, showcasing the latest in marine engineering and port technology.

Regarded by the industry as the region’s premier maritime event, APM will be featuring shipbuilding & marine, workboat and offshore segments.

www.apmaritime.com

9th Maritime Communications & Technologies Summit – London ACI’s 9th Maritime Communications & Technologies Summit will focus on crew development and explore how they are adapting to new technologies.

We will also investigate the changing needs of crew in their life on-board ship, including their access to internet and other communications systems.

This summit will help prepare a shipping company to increase operational efficiency by implementing the appropriate technologies around the vessel.

www.wplgroup.com/aci/home/ conferences.asp

World Bunkering Special Edition 2013

• High quality ISO 8217-2010 bunker fuel • Quality control from oil refinery plant to end user • Flexible prices • Main Sea Ports of operations: Arkhangelsk, Baltiysk, Kaliningrad, Kozmino, Murmansk, Nakhodka, Novorossiysk, Port of Caucasus, Sochi, St. Petersburg, Posiet, Primorsk, Taman, Tuapse, Vladivostok, Vostochniy, Ust-Luga, Zarubino • Main River Ports of operations: Astrakhan, Azov, Cherepovets, Kazan, Nizhnekamsk, Roston-on-Don, Samara, Ust-Kut, Volgograd, Yaroslavl • International ports: Constanta, Klaipeda, Riga, Tallinn • The subsidiaries: Gazpromneft Shipping, Gazpromneft Terminal SPb, Gazpromneft Marine Bunker Balkan S.A., Baltic Marine Bunker AS • Regional offices: Azov, Arkhangelsk, Kaliningrad, Murmansk, Novorossiysk, St. Petersburg, Tuapse, Yaroslavl, Vladivostok

GAZPROMNEFT MARINE BUNKER Bolshoy Prospect 80 block R, Vasilyevskiy ostrov, St-Petersburg, 199106, Russia Tel: +7 (812) 449-49-70 Fax: +7 (812) 449-46-28 E-mail: marinebunker@gazprom-neft.ru

www.gazprom-neft.ru

From İstanbul Bosphorus to the whole world…

PO Marine PO Marine, with its expert staff trained in marine sector and its high performance fuel and lubricants, delivers you the quality and fast service you deserve wherever you are in the world. By means of its widespread service network, PO Marine immediately responds to fuel and lubricant demands from all ports around the world.

• Expert staff trained in marine sector • Fast service to minimize delay at ports • High performance fuel and long life lubricant with high product quality • Worldwide service PO Marine. Your power at seas.

Phone: (+90) 212 329 15 55•Fax: (+90) 212 329 17 01 marine.sales@poas.com.tr