World
AUTUMN 2012
AUTUMN 2012
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World BUNKERING
Environmental issues dominate in Baltic Challenging times for independents
l Interview with David Peart l IBIA Convention preview l Singapore upgrades
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World
AUTUMN 2012
Bunkering Publisher: W H Robinson Editor: David Hughes (editor@mar-media.com) Deputy Editor: Sandra Speares (sandra.speares@mar-media.com) Project Manager: Dawn Barley (dawn.barley@mar-media.com) Project Consultant: Alex Corboude (alex.corboude@mar-media.com) Designer: Justin Ives (www.justindesign.co.uk)
The views expressed in World Bunkering are not necessarily those of IBIA, or the publishers unless expressly stated to be such. IBIA disclaims any responsibility for advertisements contained in this magazine and has no legal responsibility to deal with them. The responsibility for advertisements rests solely with the publisher. World Bunkering is published by Maritime Media Ltd on behalf of IBIA and is supplied to members as part of their annual membership package.
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Editor’s Letter
I
am writing this in what is widely known as the “Silly Season”, when many key people are on holiday, little appears to be happening and the press struggles to find real news. However, this issue of World Bunkering, I am pleased to say, is full of news and information. We live in challenging times; something that comes over clearly in these pages. It is also a time of change for IBIA; more of that in the Chairman’s and Acting Chief Executive’s introductions. One item in this issue’s News section is worth a mention. The latest Shipping Confidence Survey from shipping accountant and consultant Moore Stephens appears to be both good and bad news. The bad news, although hardly a revelation to those in the industry, is that fuel costs are a major worry for shipowners. The good, and slightly surprising, news is that confidence within the shipping industry is edging up. That must be an indication of the resilience of an industry which is used to surviving economic up and downs. Shipping is also grappling with fundamental changes prompted by new or impending environmental regulation and this theme is reflected throughout the News as companies strive to adapt. In the Environment section I take a look at the policy responses shipping is making. The recent unfortunate comments by International Monetary Fund’s managing director Christine Lagarde show just what an uphill struggle it can be to put the facts about the shipping industry and its environmental record in front of decision makers. This of course is IBIA’s 20th anniversary year. There will be much more about this in World Bunkering’s Convention Special but in this issue our Interview is with founder member David Peart, who provides an insight into IBIA’s origins and early years. As ever you will find a wide range of topics covered in this issue. There are features on Independents, Fuel Quality and Lubricants. The last of these reports on a clear divergence of views on how to approach the need to switch between high and low-sulphur fuel. Meanwhile the geographic focus this issue is on South-East Asia, the ARA region of northern Europe, and Scandinavia & The Baltic. While Singapore remains by far the biggest bunkering hub, we also cover recent and encouraging developments in Malaysia where the new Johor Bunkering Services Association is already having an impact. As usual, we also carry a comprehensive update on developments in Russia. In this issue, however, we are also running an interview with oil industry and bunker expert Tamara Kandelaki, on her views on the future of the Russian bunkering industry. In an extended Legal section, Nathan Cecil, partner in Australian-based shipping lawyer Norton White, explains how recovery actions for unpaid bunker claims can allow suppliers to get paid when things go wrong. Unfortunately that topic is likely to be of widespread interest in current market conditions. The Autumn sees several conferences and meetings, most notably Singapore’s Sibcon and, of course, IBIA’s Annual Convention. Our reviews give an idea of what delegates to both can expect. World Bunkering will be at both Singapore and Dubai. See you there!
David Hughes Editor
World Bunkering Autumn 2012
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Contact: Shazmeer Jiwan Alba Petroleum Ltd PO Box 97155 Mombasa, Kenya Tel: + 254 734 539777 + 254 720 630000 Fax: + 254 20 2689549 Mobile: + 254 734 575744 E-mail: sales@albapetroleum.com
World
AUTUMN 2012
Bunkering IBIA Reports Editor’s Letter 3 Chairman’s Introduction 7 Chief Executive’s Report 9 IBIA Election 10 New Members 12 Noticeboard 13 Membership Application 14 Industry News 17
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20
30
32
Environment Testing Risk Management Interview Independents Fuel Quality Lubricants
Special Features 20 25 27 30 32 35 37
Geographical Focus South East Asia 41 ARA 47 Baltic and Scandinavia 50
37
41
Book Review Preview: Sibcon Preview: IBIA Convention
52 53 55
Russian Update
57
Legal News Equipment and Services
68 71
Diary
84
55
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REPORTS
Chairman’s Introduction
A
nother issue of World Bunkering approaches and the editor has been dropping gentle hints in my mailbox! The last three months have kept me occupied with requests for interviews and invitations to speak on behalf of IBIA; however, I have been focussed more on where we are as an association and where we want to be in 12 months’ time. I want to see a new CE in post, a growth in membership and a renewed commitment to providing information and education for members. Our aim should be to become the automatic choice when members, or people from outside the organisation, want information or advice about bunkering ships. The acting chief executive will have told you of our internal meetings and the progress towards the appointment of a new chief executive, so I will restrict myself to the less concrete issues. Our world is changing, with new regulations, new initiatives and a much-straightened financial environment. We watch as ship owners struggle to comply with the new North American Emission Control Area (ECA) and suppliers try to decide whether to spend money on providing storage and transportation for a product that may only be on sale for two and a half years. The current regulations still have operational difficulties and uncertainties which, through our observer status at IMO, we will do our best to clarify and refine. As always,
World Bunkering Autumn 2012
much of the task is one of informing and educating the industry and its regulators. Through participation in the INTERTANKO bunker sub-committee, we are exploring the efficiency of the high sulphur/low sulphur changeover routines and the impact on members of the differences between the verification procedures for the commercial ISO 8217 standard and the procedure set out in Appendix VI of MARPOL Annex VI. We are also participating in the SIGTTO committee working on the development of regulations for the use of liquid natural gas (LNG) as stored fuel for non-LNG tanker shipping. This is a long-term project but important to our members from all sectors of the industry. I want the association to be in a position to respond to developments which may affect the membership by having prepared and agreed positions. To this end we have established a small committee to examine the suggestion that the flash point limit on marine fuels might be reduced. We will also investigate the current discussion on a proposed procedure for taking samples from service tanks as part of MARPOL enforcement. We are actively engaged in the Far East through the work of local members and IBIA Asia and its hardworking executive and secretariat. If you are in Singapore, look them up; they will be pleased to see you. We are also developing our representation across the whole of Africa, building on the strong local support from our Southern
Nigel Draffin
Africa Branch and developing a business model that can make our work there selfsustaining. We have continued to keep the profile of the association high at industry events and the board and the secretariat will be represented at SIBCON in October and Platts’ Barcelona conference in December in addition to our own Convention in Dubai in November. These platforms are opportunities to highlight issues that affect our members and are important to the industry. For example, we are often asked to consider adopting formal requirements on ethics and commercial performance. My own view is that in order to keep the widest possible participation in the association, we should not adopt a prescriptive or restrictive position on membership, and we should be very careful before considering use of IBIA as a “mark of particular performance”. These topics will continue to be discussed within the association, and my own view is just one of many on the board. If you have a particular subject you want us to look at then tell the secretariat and it will be considered for further action by the board. Nigel Draffin
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Oil Marketing & Trading International (Europe) SA MARINE FUELS
in UAE in CEUTA - Spain
and now
in SINGAPORE Office 2001, Saba Tower 1, JLT DUBAI, UAE Tel: 00971 4 4350500 Fax: 00971 4 4350505 E-mail: bunkers@oil-marketing.com
14 Tzavela Str., 166 74, Glyfada ATHENS, GREECE Tel: 0030 210 96 09 860 Fax: 0030 210 96 09 861 E-mail: ceuta@oil-marketing.com
TELEX: (0510) 94078550 OMTI G
8 Eu Tong Sen Street, #18-83 The Central 059818, SINGAPORE Tel: 0065 6222 4028 Fax:0065 6222 4027 E-mail: singapore@oil-marketing.com
W E B : W W W. O I L - M A R K E T I N G . CO M
Acting Chief Executive’s Report Looking ahead (in retrospect)
“Looking Ahead” was the title of the final paragraph of my piece in the last issue of World Bunkering, when I referred to our forthcoming board meeting in Lübeck and the increase in membership fees. The meeting was a great success in Oldendorff Carriers’ splendid offices overlooking the historic city of Hanseatic, on its island in the River Trave. We are intensely grateful to Oldendorff for their hospitality and the opportunity it gave board members to spend the equivalent of more than a whole working day together to discuss IBIA matters. The long-delayed increase in membership fees has been received by all but a very few members with stoic recognition that the association cannot function without adequate resources and you, our members, are the overwhelming source of our funds. However, simply increasing fees is not sufficient, so we also have to increase our membership and this will be one of the incoming chief executive’s top priorities when they are appointed.
Committee, the four members of which are spread across four countries and three time zones, which means that arranging interviews was always going to be a challenge. When August holidays and the London Olympics are added to the mix, the logistical problems are significant, but we are working on it. While it is too early to be sure, I hope we will complete the appointment process in September and, with any luck, the new chief executive will be with us at our annual convention in Dubai. Annual Convention
The programme for Dubai is coming together nicely under the banner of “Strategies to 2030”. There will be the usual mix of speeches, presentations and question-and-answer sessions, with plenty of opportunities for members to contribute to the debates, give guidance to the board about where you think we should be focussed and, of course, engage in networking and socialising for as long as you wish. I look forward to welcoming as many of you as possible to the Jumeirah Emirates Towers Hotel in November.
New chief executive
We launched the search for a new chief executive in early June with an advertising campaign that received excellent coverage across the bunker and shipping press. By the time applications closed on 6 July we had heard from over 60 individuals interested in the position, many of whom have outstanding personal and professional credentials. At the time of writing we have completed a first sift of candidates and are in the process of arranging first interviews. This will lead to a short list for second interview and ultimately the appointment of a successful candidate. The recruitment process is being undertaken by the Board Development
World Bunkering Autumn 2012
Activity
May saw chairman Nigel Draffin, board member Eugenia Benavides and me in Panama at the Maritime Week Americas event delivering the IBIA basic and advanced bunkering courses. I also conducted a bunker disputes seminar and spoke at the conference. This was a great event for IBIA with delegates expressing considerable interest in the association and in the IBIA-branded items on our exhibition stand. Even the IBIA badged shopping bag that I had used to carry things to the exhibition hall disappeared! In June I spoke on behalf of IBIA in Houston at Platt’s Annual Bunker & Residual
Trevor Harrison, Acting Chief Executive Tel: +44(0)20 3397 3850 Fax: +44(0)20 3397 3865
Fuel Oil Conference. The event was aimed principally at the supply side of the industry and, unsurprisingly given its location, the principal topic of interest was the introduction of the North America ECA on 1 August. Once again IBIA received good exposure both in the conference hall and in the delegate programme. The secretariat
I am pleased to report that the secretariat continues to function effectively in Southampton and Singapore. The time I have had available recently to support Fook Sing Kwok, Charlotte Egan and Chanette Roughton has been severely limited by the current recruitment exercise and indeed by the demands of my own arbitration practice. They are coping admirably but, like me, are doubtless looking forward to having a fulltime chief executive to work with. The rest of the year
Apart from the Dubai convention, the next significant event for IBIA will be in Singapore at SIBCON in October. Board members Simon Neo, Jens Maul Jørgensen and chairman Nigel Draffin all feature on the conference programme, and I will be there to meet members and represent IBIA generally at what is one of the most important bunker events in the industry calendar. The week after the Dubai convention I will be the voice, not just of bunkering, but of the whole shipping industry when I speak at a conference of refiners in Vienna on the topic of challenges for end-users. Finally, the year will draw to a close in December with the Platts’ Mediterranean Bunker Fuel Conference in Barcelona, which I have been invited to chair and where the keynote address will be given by Nigel Draffin. All in all, it will be a busy end to a busy and successful year for the Association.
9
Elections to the IBIA Board of Directors
P
rior to the Annual General Meeting (AGM) on Monday, 18th February 2013, there will be an election to replace 3 members of the Board whose term of office will end on 31st March 2013. These elections are an opportunity for new people with new ideas to join the Board and take part in the running of the Association. In the same way as the elected officers of the Association change, so should the Board Members. Members of IBIA are therefore invited to propose candidates for election to the Board whom they think will make a worthwhile contribution to the running of the Association. Prospective Board Members should be aware that being a Board Member is not just a titular position, they will be expected to take an active part in the direction of the Association. A copy of the Guidelines for Board Members and nomination forms are available on request and on the website www.ibia.net
• • • •
Candidates for election to the Board must: Consent to stand for election Be paid up Members of the Association Be proposed and seconded by paid up Members of the Association Complete and return the Nomination Form, which can be downloaded from the website
COMPLETED NOMINATION FORMS MUST BE DELIVERED TO THE SECRETARIAT NO LATER THAN 29TH OCTOBER 2012, EITHER BY POST TO: IBIA LTD, Ground Floor Latimer House, 5-7 Cumberland Place, Southampton, Hampshire SO15 2BH United Kingdom OR BY EMAIL TO: ibia@ibia.net In both cases confirmation of receipt should be obtained from the Secretariat. Nominations will not be accepted after the closing date. Yours sincerely, IBIA ADMINISTRATION Email: ibia@ibia.net
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World Bunkering Autumn 2012
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WORKING SOLUTIONS FOR ALL YOUR BUNKERING NEEDS
New Members Corporate
Onsys Energy Pte Ltd Bunker Trader Louise Tan 62 Shenton Way DBS Tower Two #21-11/12 68809 Singapore louisetan@onsysenergy.com
Rosneft UK Ltd
Sam Papanikolas
Bunker Trader Vladimir Brezhnev Office 461 1 Kingdom Street Paddington Central London W2 6BD United Kingdom vladimir.brezhnev@rnmuk.com
Service Med Control Services 2, P.Georgaki Street Megara GR 19100 Greece Tel: +30 22960 82793 asp1@medcontrol.gr
CORPORATE ADDITIONAL
Forum Limited Company Bunker Supplier Alexandra Shchukina Barochnaya Str. B. 10. St. 1 lit. A Office 306 St. Petersburg 197110 Russia Tel: +781 2449 6591 avs@forumbunkering.ru
Bakri International Energy Co. Ltd Bunker Supplier Ahmed Massoud Al Bakri Building Al Maadi St. Jeddah 21481 3757 Saudi Arabia amassoud@bakrienergy.com
Fratelli Cosulich LDA/ Asamar Bunker Trader Fabrizio Forghieri 125 Maiden Lane Suite #209 New York 10038 USA fforghieri@asamar.com
Aberdeen Oils Ltd (Montrose) Bunker Supplier Michael Sutherland South Quay Tank Farm Ferryden Montrose DD10 9SL United Kingdom sales@aberdeenoils.co.uk
Betchi Marine Nigeria Ltd Bunker Trader Chika Felix 1 Commercial Road, Aries Block 2nd Floor, Eleganza Plaza Apapa Lagos, Nigeria betchimarine@yahoo.com
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Olaoye Ajiboye Bunker Supplier SMAP Energy 54 Bornu Crescent Apapa Lagos 23401 Nigeria Tel: +234 1881 3893 olaoye@smapltd.com
Wouter Colaert Buyer OXL Vismijn Straat, 23B Zeebrugge B8380 Belgium Tel: +32 5054 2054 w.colaert@flamar.be
Graham Spencer Service Cripps Sears Sardinia House 52 Lincolns Inn Fields London WC2A 3CZ United Kingdom gspencer@crippssears.com
individual
Petros Pavlidis Fang Liang Bunker Supplier Consort Bunkers Pte Ltd 31 Hong Kong Street Singapore 59670 Singapore Tel: +65 6344 3008 fangliang@consortbunkers.com.sg
Service Kalimbassieris Marine Consultants Co. Ltd 65 Akti Miaouli Str. Piraeus 18536 Greece p.pavlidis@kalimbassieris.com
World Bunkering Autumn 2012
REPORTS
IBIA noticeboard Benefits to members as at 1 August 2012. IBIA Announcements
At the IBIA Board meeting on Monday 16th April 2012, it was decided that after eight years it was time to increase membership subscription rates as follows: Individual Membership: £150 Corporate Membership: £700
These increases took effect on 1st July 2012 and in future there will be small annual increases. The Board has also decided that the present practice of listing Corporate Additional Members does not properly and fairly meet members’ needs and some changes have therefore been introduced that will more accurately match the benefits of membership to its cost; affected members will be contacted directly by the Secretariat. If you have any queries or comments about these changes, then please contact ibia@ibia.net or telephone: +44 (0) 20 3397 3850. IBIA Publications and Benefits
IBIA World Bunkering Magazine Discounts on Advertising
Discounted advertising rates are available for members. Please contact the Advertising Sales Team at Maritime Media London on + 44 (0)20 7385 6100
IBIA List of Members
If your details are not correct then please let the IBIA Administration know at ibia@ ibia.net. This publication is only available to members.
IBIA Guide to Good Commercial Practice
On sale to non-members at £50.00 per copy.
IBIA Safety Cards for Vessel’s crews
IBIA buyer members receive copies of the IBIA Safety Cards for distribution to their ships, giving basic, plain English advice about safe handling of bunker fuels Please note that all the above publications can also be downloaded by members by visiting www.ibia.net and logging in to your account. Please then go to the download section of the website.
IBIA Guide to In-Line Blending
Available free of charge to members
IBIA LogO
Free bromide supplied for use by corporate members only. IBIA Guide to Avoiding and Resolving Bunker Disputes
IBIA members receive their personal copy free, but the report is offered for sale to non-members at £50.
IBIA World Bunkering Magazine – Free copies for Members of IBIA
Please note non-members are requested to subscribe to the magazine at a cost of Pounds Sterling £45.00, £60.00 or £80.00 depending on location. Up to 20 additional free copies of the magazine are offered to buyer members of IBIA for forwarding to their vessels.
Evaluate the Merits of a Bunker Claim
Interpretation of specifications for bunker fuels and a guide to the question of repeatability. For sale to non-members at £35.
IBIA Glossary of Bunker and Lubricating Oil Terminology
A comprehensive guide to all those complicated terms which are in daily use in the bunkering industry. For sale to nonmembers at £45.
World Bunkering Autumn 2012
13
REPORTS
The International Bunker Industry Association Ltd The Aims of the Association • To provide an international forum to
• •
•
•
address the concerns of all sectors of the bunker industry; To improve and clarify industry practices and documentation; To represent the industry in discussion with relevant governmental and nongovernmental bodies and to make the concerns of the industry known to such bodies; To assist members in the event of disputes by identifying the options and exploring the alternatives open to them and eventually to provide a panel of experienced mediators and arbitrators; To increase the professional understanding and competence of those working in the industry.
In the beginning
Eight members of the industry conceived the International Bunker Industry in October 1992, and the association was formally registered on 29 January 1993. Since then it has expanded steadily with a worldwide membership comprising shipowners, charterers, bunker suppliers, traders, brokers, barging companies, storage companies, surveyors, port authorities, credit reporting companies, lawyers, P&I Clubs, equipment manufacturers, shipping journalists and marine consultants. In 2008, our membership stands at over 500 and is spread over 67 countries. There are three categories of membership, namely: • Individual membership: open to all people with an interest in bunkering, whether they are involved in the day-to-
14
day business of bunkering ships or have an interest in the industry. Each member has one vote in association business, but this category does not allow delegation. • Corporate membership: open to companies and associations with an interest in bunkering, whether they are involved in the day-to-day business of bunkering ships or have an interest in the industry. Each member has one vote in association business, but corporate membership has the advantage of allowing companies to delegate different members of their company to participate in different working groups. • Corporate sponsor: this is the newest category and allows a company to contribute any sum they see fit to the association. In return they receive the same benefits as a corporate member but in addition have their logo printed on all IBIA publications and are offered further sponsorship opportunities ahead of other members.
ing groups and committees that report to the Board. Areas covered have included: • Education • Safety • Technical • Environmental • Commercial • Dispute Resolution • Blending The Board and the Secretariat welcome expressions of interest from members to participate in the activities of working groups and committees, and invite suggestions and proposals for further areas of engagement and research.
The board
The board is constrained to have a balance of members from each sector of the industry in order to preserve the industry-wide representation and approach of the association. The board regulates the association and is elected by the membership to perform that role. Working Groups and Committees
IBIA is an association dedicated to its membership and strives to reflect members’ wishes and react to their needs. This is achieved in part by the formation of work-
World Bunkering Autumn 2012
Membership application
PLEASE PRINT VERY CLEARLY Applicants must fill out all appropriate sections including method of payment. Corporate members must give the name of the individual contact.
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The Administrator, The IBIA Ltd, Ground Floor, Latimer House, 5-7 Cumberland Place, Southampton, Hampshire SO15 2BH, United Kingdom. Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 3865
Industry news
Global round-up Shipowners still worried by bunker prices
Despite the recent fall in global oil prices, and consequently in the price of bunkers, fuel costs continued to worry respondents to the latest Shipping Confidence Survey from shipping accountant and consultant Moore Stephens. “The ultimate squeeze nowadays really comes from the cost of bunkers,” said one respondent. “On top of the high price of oil, refineries are producing less and less marine product, putting further pressure on bunker prices”. The survey found that overall confidence levels in the shipping industry increased in the three months ended May 2012, to reach their highest level since February 2011. This is the fourth successive quarter in which there has been an improvement in confidence, leading to an increased expectation of new investment on the part of respondents, despite an anticipated increase in the cost of finance over the next 12 months. Fuel costs were the most significant performance-influencing factors for charterers, up to 26% from 23% in February 2012, pushing demand trends (down from 24% to 21%) into second place. Competition – down significantly from 23% to 16% – was in third place. In May 2012, the average confidence level expressed by respondents in the markets in which they operate was 5.7 on a scale of 1 (low) to 10 (high), compared to the figure of 5.5 recorded in the previous survey in February 2012, and to the 5.6 recorded one year previously, in May 2011. The survey was launched in May 2008 with a confidence rating of 6.8. Richard Greiner, Moore Stephens’ shipping partner, says: “Is there a more resilient industry than shipping? It seems unlikely. Despite the financial woes in Europe, notwithstanding the slump in the freight markets, and irrespective of tonnage overcapacity, our latest survey records an increase in confidence in the shipping sector for the fourth consecutive quarter. Indeed, 40% of owners rate their prospects of making a new investment over the next 12 months at 7 out of 10, or higher – this despite the fact that the cost of finance is expected to go up over the same period. This is encouraging, although, if intent translates into action, it will do nothing to address the tonnage overhang.
World Bunkering Autumn 2012
He notes: “Fuel costs are a major expense, which shipping can do little to influence for the better. What it can do – and is doing already – is starting to explore the possibility of a future based on eco-friendly ships powered by fuel other than diesel oil. But, as more than one respondent noted, that places a potential cloud over some of the ships now being built and delivered, which could be made redundant by new technology long before they have served a useful working life. Furthermore, some owners are claiming that eco-friendly designs are being advanced by shipyards as a marketing gimmick to persuade companies to order more ships at a time when we already have too many.”
Richard Greiner
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Industry news
Residual fuel use “to plummet”
Norwegian classification society Det Norske Veritas (DNV) says that fuel choices up to 2020 will be driven by the time spent in an emissions control area (ECA), but distillate is a more likely option than scrubbers for most ships towards 2020, and heavy fuel oil demand will plummet. Annual demand for distillate fuels, now around 30 million tonnes, is predicted by DNV to rise to 45 million tonnes when the 0.1% limit comes into force in ECAs, and will be around 200-250 million tonnes by 2020. On the other hand demand for heavy fuel oil will, DNV expects, plummet from around 290 million tonnes in 2019 to 100 million tonnes once expected global emissions regulations enter into force in 2020. DNV bases it predictions on a simulation model it has developed using global shipping data and technology specific information to predict the deployment of emission reduction and energy efficiency technologies up to 2020. The results show that high fuel costs will result in a drive towards more energy-efficient ships ahead of the Energy Efficiency Design Index’s (EEDI) regulatory time frame. DNV expects that by 2020 new tankers, bulkers and container vessels will be up to 30% more energy efficient than today’s new buildings. DNV predicts that one-third of the reductions will be cost effective for shipowners. The EEDI will be the driver for the remaining two-thirds of the efficiency gains. UK minister’s doubts on 2015 deadline
The UK’s shipping minister, Mike Penning, has been reported as expressing doubts about the feasibility of imposing a 0.1 sulphur limit on marine fuel used within emission control areas (ECAs) in 2015. Reports say that he used a recent European Cruise Council meeting to express the opinion that the 2015 deadline is too soon. He is quoted as saying that he believes there will not be enough low-sulphur fuel available and compliant fuel will be too expensive. Mr Penning’s comments reflect the views of shipping groups and ports throughout the North European and Baltic ECAs. The ferry group Interferry has been especially outspoken on the issue. However it so far looks unlikely that the European Commission’s position, that the new low limit should go ahead as planned, will change. Cold ironing in Rotterdam
In June the Dutch government minister for infrastructure and the environment, Melanie Schultz van Haegen, activated the first
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shore-based power connection for sea-going vessels in Rotterdam, at the Stena Line terminal. The company’s ferries now obtain their electricity from shore-based supplies and no longer have to run their generators when alongside the quay. The Port of Rotterdam says the investment will improve the air quality considerably in the immediate vicinity of the terminal. Stena Line will use the facility for four vessels. The installation of the shore-based power was supported by the Port of Rotterdam Authority, the municipality of Rotterdam and the Ministry of Infrastructure and the Environment. The Port Authority’s contribution is in line with its stated aim of becoming “the most sustainable port in the world. Around 300 shore-based power connections for inland shipping are now in use in the city centre”. Recently a special connection for river cruise vessels was installed as well. So far, there are no specific plans for more connections for sea-going vessel, partly because of the high costs involved. In the future, however, new quays and renovated older ones will have shore power connections. “Zero emissions” – while alongside
Mitsubishi Heavy Industries’ Kobe shipyard has completed a hybrid car carrier, designed to generate zero emissions while berthed, for major Japanese shipping group Mitsui OSK Lines (MOL). The development of the Emerald Ace has been subsidised by Japan’s Ministry of Land, Infrastructure, Transport and Tourism as a project to help reduce CO2 emissions from ocean-going vessels. It also received support from classification society Nippon Kaiji Kyokai (ClassNK). MOL is describing the Emerald Ace as world’s first hybrid car carrier. Electricity is generated by a solar power generation system while the vessel is under way and stored in the lithium-ion batteries. The diesel-powered generator is completely shut down when the ship is in berth and the batteries provide all the electricity it needs, resulting in zero emissions at the pier. The Emerald Ace is equipped with a hybrid electric power supply system that combines a 160kW solar power generation system – jointly developed by MHI, Panasonic Group and MOL – with lithium-ion batteries that can store some 2.2MWh of electricity. A company statement says: “The vessel’s hybrid system represents a significant step forward in realizing ISHIN-I, the concept for the next-generation car carrier that MOL announced in September 2009. MOL continues to take a proactive stance in technological development with the aim of reducing the environmental burden of its vessels and operations.”
World Bunkering Autumn 2012
The Emerlad Ace produces no emissions when alongside the berth
Wind monitoring project
Zodiac, Totempower and Lloyd’s Register are jointly undertaking a project to monitor wind energy as marine industry looks to improve its fuel efficiency. Lloyd’s Register’s Strategic Research Group has joined forces with Totempower Energy Systems and Zodiac Maritime Agencies to assess the potential of wind-generation devices onboard commercial ships, as the maritime industry steps up its pursuit of viable carbon-alternate fuels. A fully autonomous wind-monitoring system designed and assembled by Totempower has been installed on the Zodiacmanaged bulk carrier Cape Flamingo. Sensors have been installed in locations where the best wind conditions and the most relevant environmental data (wind speed, direction and turbulence) could be expected, with consideration given to the most effective locations for onboard wind generation. The project is expected to identify and measure the potential generating capacity from wind power for the ship’s trading patterns. The data will be used to support the development of computational fluid dynamics-based simulation models that could be suitable for predicting the energy yields on other Zodiac ships. “We are very excited to embark on this initiative,” said Simon Turpin, environmental superintendent for Zodiac Maritime Agencies. “The data-collection phase is expected to last four to six months. When the field trials are completed, we hope to have a better understanding of the feasibility of implementing wind turbines onboard our ships and the associated economic and environmental benefits.” Emulsion fuel trial “successful”
Quadrise Fuels International says that “many aspects” of its sea trials of its low-cost alternative to heavy fuel oil, MSAR emulsion fuel, have been successful. The successes included general handling of the product and bunkering of the vessel, long-term (over one year) storage of test fuel at ambient temperatures, and, importantly, confirming the emissions reduction potential of Marine MSAR. However Quadrise says that, during this first assessment,
World Bunkering Autumn 2012
it was not possible to fully optimise engine performance, as the test configuration afforded limited scope for relevant “in service” adjustments. It adds that these recent results have provided the necessary data for future adjustment and assessments. The company noted: “This was the first time that commercial oil-inwater emulsion fuel has been tested in two-stroke marine diesel applications of this scale. As advised in previous reports, major innovative fuels development programmes require time for analysis of data, correction of any deficiencies and exploitation of opportunities revealed by the results of ’in service’ performance.” According to Quadrise, further marine engine and in-service tests are planned in the second half of the year with the support of Maersk, candidate refineries and major engine manufacturers. On completion, the programme is planned to move to the next phase involving use of MSAR fuel in a sample of the Maersk fleet. “K” Line plans 10% CO2 cut
Japan’s “K ” Line has set itself the target of reducing CO2 emissions by 10% from FY2011’s level on a per ton-mile basis, to be achieved by FY2019. The company says it will achieve this through the introduction of energy-saving technology and energy-saving navigation. At the same time, “K” Line says, it will continue to make “every effort for further CO2 emission reduction and carry out various actions for marine and global environmental protection”. The new initiative follow the successful implementation of a similar programme, which started in FY2006, by 2011. According to “K” Line, after these results were releasd it “decided to set new goal for reducing CO2 emissions toward the centenary of our company’s foundation in 2019.” Multi-purpose deck cargo vessel runs on biofuel
Gaiamare, a subsidiary of Finnish shipowner Meriaura, is expected to take delivery of a multi-purpose deck cargo vessel capable of running on biofuel “at the end of the summer”. The 105 metre long Meri is designed for global operation, and can be utilised for a wide variety of tasks. A company statement says: “Once completed, the ship will be perfect for transporting demanding project cargo such as offshore wind farm structures and for energy wood transport in the Baltic Sea area. This ice class 1A vessel is also capable of running efficiently astern in ice. The main engines of the vessel can use environmentally friendly bio oil as fuel. The vessel is also capable of operating in oil spill response activities. M/s Meri will be chartered and operated by Meriaura”. “The vessel represents the next generation of ships especially in terms of fuel, versatile functions, environmental friendliness, and energy efficiency,” says Meriaura chairman Jussi Mälkiä.
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environment
Fighting shipping’s corner
The International Monetary Fund’s managing director Christine Lagarde caused consternation in the shipping industry in June when she said the shipping and aviation industries should provide about a quarter of the funds to be used for climate change adaptation and mitigation in developing countries.
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he International Monetary Fund’s (IMF) intervention comes as complex international discussions continue on reducing shipping’s CO2 emissions at the International Maritime Organization (IMO) and in the context of the UN Framework Convention on Climate Change (UNFCCC) where the series of series of conferences are slowly moving to towards a replacement for the Kyoto Protocol. The IMO is still working on agreeing a market-based measure acceptable to the industry and governments, and its Marine Environment Protection committee which meets in October. This is going on against the background of the build up to the UNFCCC’s Doha conference from 26 November to 7 December. On 12 June Madame Lagarde made a speech, Back to Rio—the Road to a Sustainable Economic Future, in which she reportedly said “charges on international aviation and maritime emissions would raise about a quarter of the $100 billion needed for climate adaptation and mitigation in developing countries – resources that developed countries have committed to mobilize by 2020”. This statement alarmed the International Chamber of Shipping (ICS) to the extent that its newly elected chairman, Masamichi Morooka, wrote a letter explaining the industry’s concerns in detail. In his letter Mr Morooka says that market-based measures (MBMs) are very controversial and most shipowners believe, given the severely depressed state of global shipping markets, that now is certainly not the time to impose an additional major cost on international shipping.
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However he also explains the position of ICS and its member national shipowners’ associations that, if all governments so decide, then shipowners, in principle, will have no objection to contributing, at some point in the future, to the Green Climate Fund, or a similar mechanism that might be established by IMO, provided that such
Christine Lagarde
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Masamichi Morooka
money is indeed used for climate change adaptation or mitigation, and that the same charges apply to all ships internationally, regardless of flag. He also made the important point that any contribution by shipping must be proportionate to shipping’s share of total global emissions (less than 3%) and the forum where the details of such a mechanism should be developed is the IMO. In the eyes of the shipping industry, IMO is the lead body on this issue having already adopted a mandatory global agreement on technical measures to reduce CO2 from ships. Ensuring that IMO is indeed given the implementation role if any charges are imposed has been a major objective of the ICS and most other shipping industry bodies from the beginning of the climate change debate, but this actually happening cannot be taken for granted. This may lay behind the robust ICS response to what it sees as unrealistic expectations of the industry. It wants kill any idea that shipping has deep pockets and is a potential paymaster for the whole climate change process or that extracting the cash should be awarded to another organisation. Mr Morooka outlines how IMO is now deeply engaged in the process of assessing detailed proposals from its member states with respect to the adoption of a possible MBM for shipping (which might involve some kind of ‘fuel levy’ and which might also in some way be linked to the UNFCCC Green Climate Fund). He goes on to assert: “These issues are certainly complex, as identified by chapter seven of the IMF Paper Fiscal Policy to Mitigate Climate Change, which, in general terms, appears to be a balanced document with respect to its treatment of maritime transport. However, the remarks in your speech give rise to serious concerns because they appear to ignore the major impediments to adopting the charges on shipping that you suggest.” While the ICS chairman’s tone is polite and respectful, the real message is that Madame Lagarde has not done her homework. “In particular,” Mr Morooka writes, “your rough calculation overlooks the fact that about two-thirds of the world fleet is registered in
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Kyoto Protocol ‘non-Annex I’ nations. Apart from being inequitable in view of shipping’s small contribution to the world’s total CO2 emissions, to raise the huge monies that you mentioned would therefore require a much larger charge. This would almost certainly be viewed as a tax on trade by those emerging economies that rely on ships operated by ‘Annex I’ nations.” He then points out one of the most basic facts of life of international shipping, saying: “Most importantly, you seem to overlook the fundamental principle of international shipping, and its regulator the IMO, which is that our global industry requires a global regulatory framework. If any carbon charges were only to apply to ships registered in Kyoto Protocol ‘Annex I’ nations these ships would be at a major competitive disadvantage to the ships registered in ‘nonAnnex I’ nations. Because of the serious market distortion that would be created, many of these ships would simply change their flag to a jurisdiction where the carbon charge did not apply.” Then Mr Morooka comes to the big stumbling block that has made progress so difficult: “For any carbon charges to be acceptable to the international maritime community it is important to understand that the IMO principle of uniform global rules for shipping will have to be reconciled with the UNFCCC principle of ‘Common but Differentiated Responsibility’. This is why the negotiations with respect to shipping, that are taking place at IMO and at UNFCCC, are so complicated.” He finished by stressing that the shipping industry is committed to playing its part in further reducing its CO2 emissions, saying: “We fully support the IMO agreement on technical measures which will help shipping achieve its goal of significantly reducing emissions per tonne/km. We are also participating constructively in the international negotiations about a possible MBM that might apply to international shipping. However, it is vital for all concerned to recognise the global character of the shipping industry which transports about 90% of world trade. The application of any carbon charges to shipping, without causing serious market distortion or impeding the smooth flow of world trade, is a very complex matter.” Meanwhile ICS has also been fighting off an attempt to change the United Nations Convention on the Law of the Sea (UNCLOS). ICS secretary general, Peter Hinchliffe, took part in a major debate about oceans governance in New York on 13 July. Addressing an international academic conference on Developing a New International Architecture for Maritime Policy, organised by the Dräger Foundation and the Earth Institute at Columbia University, Mr Hinchliffe argued that there is no shortfall in governance so far as the international regulation of shipping is concerned. While the title of the conference appeared to presuppose a need to change UNCLOS he praised the virtues of the current comprehensive regulatory framework developed by IMO within the umbrella for oceans governance provided by UNCLOS. He noted that the number of significant oil spills had decreased from about 23 per year in the 1970s to just three per year during the past 10 years, while the volume of maritime trade had more than tripled during the same period. “In part this is because IMO environmental regulations are genuinely implemented and enforced on a global basis through a combination of flag state and port state control,” he added. Speaking just before the New York event, Mr Hinchliffe said that – because of the delicate balance of rights and responsibilities that exists between flag states, port states and coastal states – the shipping industry is very reluctant to support a fundamental revision of UNCLOS as has been proposed by sections of the European Commission and some environmentalist NGOs.
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environment
Ways to save fuel
Melvin Mathews
Melvin Mathews, former VLCC master and now director of regulatory and environmental solutions at Eniram, explains that, against expectations, trim optimization works with tankers and bulk carriers.
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he tanker industry is experiencing challenging times. With high fuel prices and low spot market rates for oil tankers, shipping companies are looking for innovative ways to manage operating costs efficiently and effectively. Meanwhile, compliance with a host of environmental regulations is adding to the burden, while providing a financial incentive to reduce fuel consumption. The tanker operators association Intertanko, for instance, has been a strong advocate of the industry undertaking measures that will quickly deliver reductions in CO2 and other greenhouse gas (GHG) emissions. These drivers have created a demand for new ways of reducing vessels’ fuel consumption and improving operational performance. The Ship Energy Efficiency Management Plan (SEEMP), for example, requires operators to look at energy efficiency improvements, concentrating on three main areas: voyage optimization, fleet management and energy management. The challenge for ship owners and operators is clear: to identify technologies and hull improvements that enable them to apply these guidelines in practice, and also to gauge the effect of these changes on their operations. Against that background and to gain further insight, Eniram undertook extensive research. It is recognised that vessel trimming
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has a direct effect on propulsion power usage and fuel consumption: previous studies on cruise and container vessels have found trim-related savings potential to be between 2% to 5%. This study therefore focused on finding the impact of dynamic trimming on propulsion power consumption on a very-large crude carrier (VLCC) of 320,000+ dwt. Before initiating the research Eniram had assumed trim optimization provided limited scope for real performance improvements on tankers and bulk carriers, due to the relative ‘box’ shape of such vessels and the large variation in their drafts, depending on whether they are in a laden, part-laden or ballast condition. This knowledge gap and previously unchallenged assumptions can be attributed, in part, to the complexity of large tanker operations, such as the logistical difficulties in gaining access, especially to VLCCs, for the purpose of site surveys, technical attendance and installing measurement equipment, etc. This is attributed to majority offshore operations, such as immigration and custom clearance issues, creating hurdles. A comparative limitation in satellite broadband capabilities on some tankers, in comparison to other types of vessels, also make extracting data from a vessel without inherent delays challenging. Through overcoming the logistical challenges and using Eniram’s proprietary and market-leading technology, all internal and external
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conditions related to the test vessel were tracked over a 450-day study period. To make the research truly robust all affecting factors were monitored without exception, which is why the system was integrated to engine automation and bridge systems. In addition, attitude sensors were installed to collect information on dynamic movements of the vessel, including trim, list, accelerations and decelerations. The analysis was performed by identifying and isolating the amount of energy consumed by different factors (trim, sea state, wind, squat, hull and propeller fouling, etc). Modelling all the dynamic factors for various speeds and power outputs of the vessel, at various draughts or displacements, allows a precise determination of the optimum dynamic trim in real time. Thereafter, based on Eniram’s Dynamic Sea Margin methodology, it was possible to precisely compute the vessel’s savings potential and present an extremely accurate verification of the savings achieved by trim optimization. The study indicates that VLCCs benefit significantly from trim optimization, mainly due to their size and rate of daily fuel consumption. The results demonstrated a trim savings potential of 2.6% during the study period. We calculated the savings potential based on the vessel’s existing operations. Clear visibility of the operational profile of the vessel allowed us to determine the trim savings potential: in this case 2.6%. This maximum possible benefit translates to $482,000, or 730 tons, of fuel savings annually. Thereafter how much of this trim potential is realised depends only partly on how much time the vessel spends at its optimum trim. How much extra fuel is consumed due to non-optimal trim also depends on how far away the vessel is operating from the optimal trim. In this study, the results showed an average positive rate of usage (ROU) of 69%, translating into proven propulsion energy savings of 1.8%; equating to $330,000 or 505 tons of fuel annually for the VLCC studied. This is the figure actually realised, rather than the known potential. For vessels to achieve this potential savings is significant. If we consider for example that 85% of the total power reaching the propeller converts to speed, 15% typically is then lost to the present sea state, wind, fouling and other dynamic factors the ship has little or no control over. The granularity with which Eniram is able to monitor each of these factors individually is unprecedented. By harnessing readings from a comprehensive range of signals across a vessel, and charting performance across a broad range of differing conditions, we are able to distil information about the extent to which factors such as trim, sea state, wind and other dynamic factors affect a vessel’s efficiency. This detailed, differentiated data has a wide range of applications, as it allows comparison between identical voyages or direct comparison between sister vessels (a test vessel operating in the Pacific Ocean can be easily compared with its sister in the Atlantic Ocean encountering widely differing weather and sea conditions). This also means Eniram is in a unique position to act as an independent verifier between ship operators and savings solution providers, accurately measuring the real savings being achieved by weeding out the relative impact of dynamic factors that are beyond anyone’s control. The complete savings potential is not practically achievable in the case of large vessels due to operational constraints such as draft restrictions at arrival and departure ports, and transit through shallow straits or during ballast water exchanges. However, it is important to note that on voyages where such restrictions do not exist the ROU can be very close to 100%. Indeed another surpris-
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ing, and almost counter-intuitive, finding of the study is that the potential fuel savings through dynamic trim optimization is higher on a laden voyage than in ballast. Equally noteworthy are the findings relating to the impact of added resistance due to hull fouling. While cruise operators can usually predict the rate of increase in fouling because their routes are very predictable, tankers don’t have this luxury as they typically operate on the spot market and don’t have their schedules planned with the same precision. They also typically cover greater distances across oceans. As a result, it has been challenging until now for tanker operators to quantify the effect of fouling and the related impact on fuel consumption. The study, with the granular analysis of propulsion usage on the VLCC, was able to highlight the added impact of resistance. Fuel consumption due to fouling grew by nearly 3% during the study period. This means the average impact on propulsion power consumption was 1.5%, translating to $277,000 (420 tons of fuel) annually. Added fuel consumption due to the state of fouling is well-recognized within the cruise sector, but, to date, it has been considered less of an issue with larger commercial vessels. The ability to quantify the impact on fuel consumption is an important contribution on the road to understanding vessel performance and hull maintenance needs, based on measured hull performance parameters. This exercise shows that tanker operators can benefit financially and environmentally from dynamic trim optimization by reducing fuel consumption which results in fewer GHG emissions. Data gathered onboard can also be used to measure the change in hull resistance as a result of fouling, and to enable management to improve scheduling of hull cleanings and measure the resulting reduction in operating costs. This translates to a real impact on the bottom line – something all shipping companies are searching for with greater urgency in today’s challenging economic climate. Eniram already has a wealth of customer experience and research demonstrating the potential for performance and efficiency savings on cruise liners. The finding that there is great scope for performance-related savings on VLCCs is positive news for an industry beset by financial and competitive pressures, and gives ship operators a method to reduce operating costs through enhanced efficiency at sea. The real value lies in being able to leverage the analysed data to evaluate performance and support transparent decision making. Performance data and the ability to use the intelligence this data brings gives operators the insight they need to act for the long term, enabling them to persevere and prosper in the midst of volatile market conditions. The full VLCC Propulsion Energy Efficiency Study report can be downloaded from http://www.eniram.fi/VLCC-tanker-study-order
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Visit us in Hall A2, Stand 127
+1 713 407 3695 APAC +65 6777 3944 EMEA +44 1325 390180 E-MAIL marine.services@intertek.com WEB www.intertek.com/marine AMER
Every profitable voyage depends on bunker fuel quality In today’s competitive global shipping industry, staying in business means staying on schedule. Poor-quality bunker fuel represents one of the biggest threats to keeping your schedule and profitability intact.
Intertek ShipCare provides fast, accurate testing for bunker fuel quality through our Lintec operation, helping avoid costly repairs and downtime. Intertek has provided testing services to the marine industry for over 125 years, with the expertise and industry knowledge needed to protect your valuable assets.
testing
New test method
As new, much stricter sulphur and nitrogen emission limits take effect the need for accurate, quick testing increase. A new method may help.
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ulphur and nitrogen content in bunker fuel can be regularly monitored to ensure compliance with new legislative requirements more easily using a new technique, according to Debbie Batt, senior applications specialist, TN/TS/TX/TOC Analysers, Thermo Fisher Scientific. Writing in engineerlive.com Ms Batt says that sulphur and nitrogen content in bunker fuel can be regularly monitored using high temperature combustion with chemiluminescence and UV fluorescence detection to ensure compliance with new legislative requirements. High-temperature combustion offers a reliable, fast and accurate technique for the simultaneous analysis of sulphur and nitrogen in bunker fuel samples. She contends that the analysis of total nitrogen and total sulphur in bunker fuel by combustion and subsequent chemiluminescence/ UV fluorescence detection is a highly competent alternative. The total sample is combusted and analysed making sample homogeneity and matrix matching trivial considerations. In addition, repeatability and reproducibility are excellent with typical RSDs less than 2%, even at low concentrations. These instruments are also regulated by ASTM, DIN and ISO methodology for a wide range of sample types.
Parker Hannifin buys Kittiwake
Fuel testing equipment manufacturer Kittiwake Group been acquired by major control technologies company Parker Hannifin. A statement says that the transaction is designed to “offer greater value with a comprehensive and innovative range of products and solutions and includes the acquisition of the entire Kittiwake Group, including Kittiwake Developments Ltd, Kittiwake Procal Limited, Kittiwake Holroyd Limited and Kittiwake Incorporated”. No details have been released of how much Parker Hannifin is paying for Kittiwake, which has annual sales of about $20m and employs 95 people. The UK-based company will be integrated into Parker’s Filtration Group and the sales will be reported as part of the International Industrial Segment. Parker Hannifin employs approximately 58,000 people in 47 countries and its sales revenue was more than $12 billion in fiscal year 2011.
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Peter Popoff, president of Parker’s Filtration Group said: “Kittiwake Developments will allow us to extend our position in diagnostic products and reinforce our ability to offer our customers a complete health monitoring solution for their filtration systems. We are excited about the growth opportunities this alignment creates.” Martin Lucas, Kittiwake managing director, commented: “The acquisition by Parker Hannifin represents an exciting new chapter for Kittiwake and our collective customer base. By adding Kittiwake to Parker, we are pleased to be able to offer a comprehensive portfolio of advanced diagnostic products and solutions that, combined with Parkers’ filtration expertise, enable us to provide Total System Health Management. Throughout the transition process, the Kittiwake and Parker teams remain committed to providing ongoing operational excellence to our customers.” NCS enhances Fueltrax
Nautical Control Solutions (NCS) says the latest version of its FuelTrax Marine Fuel Management system includes the ability to measure and monitor fuel density as it is pumped on a vessel. FuelTrax gathers and displays the mass, volume, temperature and density of a fuel as it is being taken aboard. The fluid’s density is measured, recorded and shown on a moving graph on the main FuelTrax console. A statement says that, if a predefined amount of out-of-density range fuel is measured, a visual alarm is presented to the captain or chief engineer. An optional siren and strobe light is available for placement in the engine room to further alert the crew. NCS says that FuelTrax monitors fuel flow, captures fuel burn rates, measures and alarms fuel tank levels, and proves bunker quantities. It adds that the system works with any type of marine fuel, and can be applied to liquids such as drilling mud and other products transported by the vessel. “The ability to identify bad fuel and stop a bunker before too much has been pumped aboard can help save the costs of filter changes and tank cleaning at a minimum and help prevent damage to engines in the worst case,” said Anthony George, chief executive of NCS. “This feature is available when using Coriolis mass flow metering,” he added.
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Risk Management
Fuel for thought
Hans Erik Christensen
Three risk managers explain how to survive in a volatile bunker market.
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ith oil prices fluctuating up to $20 per barrel in a month, keeping to fuel budgets is a challenge to most companies. Nevertheless, Global Risk Management claims that it is possible to plan ahead and secure the budgets no matter what the petrol pump price is. It is all about implementing an efficient risk management strategy that fits your needs, says Hans Erik Christensen, Managing Director of Global Risk Management. “Every company is different and we work hard at customising the hedging tools in order to find the perfect solution for our clients. It could be that the client needs to fuel in ports with limited access to the appropriate fuel quality; it could be that the vessel’s timetable is not known well ahead – there is a mix of tools for every event. One financial tool is a swap that allows you to fix the fuel price at a predefined level, independent of market movements. It is also possible to mix the tools. An example is the capped swap: a mix of caps and swaps; a combination of a bought swap and a sold cap option. “Basically, the choice of hedging tools depends on the company’s needs and wishes and we always base our recommendation on an individual evaluation, in close co-operation with the client. The risk profile and strategy of the company is an important part of the evaluation, as is making a stress test of the impact of an oil price increase on the budget. So if you do not already have a risk management strategy, we strongly recommend you prepare one, either in co-operation with us or with another fuel risk expert.” Trust and credit-worthiness
In these uncertain financial times, keeping to budget is one of the parameters banks and other financial institutions look at when
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evaluating a company’s financial status, Global says. Displaying fixed fuel budgets to the counterparties enhances a company’s credibility and increases chances of a reasonable credit line and creditworthiness. Christiensen explains: “Earlier this year, we issued an extraordinary oil supply update where we concluded that there is a tight supply situation on oil ahead. This is still in play. However, with the recent deteriorating situation and the uncertainty in the euro zone and the softer economic outlook around the world, prices have fallen considerably. Therefore based on each company’s risk profile and strategy, the present situation offers a lot of opportunities.” By putting its own advice into operation, Global Risk Management announced a million dollar surplus at the end of June. With more than double the amount of traded tonnes compared to last year and a steadily increasing interest in management of price risk on fuel expenses, the company is experiencing very positive development. Total surplus in 2011/12 exceeds $2.8 million. ”At Global Risk Management, we have worked hard for several years to expand the company and to perform financially. We have succeeded very well this year and, apart from our financial result being very sound, we will be hiring more employees in order to supply a top-quality consultancy for our many new clients,” says Christensen. The new employees at Global Risk Management will be working both at the head office in Middelfart, Denmark and the branch office in Singapore. Furthermore, the company is focusing strongly on the American market, where many companies with large fuel consumption have discovered the value of securing themselves against oil price fluctuations. “Often, our clients are surprised at how big a difference we can actually make. Many large fuel consumers and suppliers just accept the price fluctuations and thus the insecure budgets and difficult
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legal news Risk Management (continued)
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Nick Blackwell
100% 80% planning of expenses. There is no need to accept this. Therefore we are 60% experiencing an increasing demand for our knowledge and expertise in these times of unstable oil prices”, Christensen 40% explains. 20% Nick Blackwell, head of the fuel oil desk at ICAP, says that the 0% challenges facing the bunker industry are the same as those faced by -20% other energy markets, notably volatility and what happens to the oil price.-40% “For our business, it is mainly people hedging forward against exposure. Most of the business we do at ICAP is now cleared. -60% A lot of the bunker players will be hedging with their bunker -80% supplier and he will be taking their credit risk because his market -100% knowledge is superior to he says. Jul 10 Oct 10 Jan 11 that Aprof 11 theJulbanks,” 11 Oct 11 Jan 12As far Apr 12as the Jul 12 clearing side of things is concerned margins are an issue. “A lot of shippers and a lot of bunker players don’t want to pay margins if
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World Bunkering Autumn 2012
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the market moves, so that is why a lot is still done with their bunker suppliers,” says Blackwell. The bunker industry is very active in the forward hedging market, he says ,and ICAP sees daily activity. One issue is that industry players may be restricted from hedging bunkers because they are not sure the return that will be made on the ship or the freight going forward. “You can go in and hedge the bunkers and then the ship doesn’t move,” he says. If the price fluctuates and goes the wrong way, then margins come into play. Hedging for the bunker industry is stretching out to 2017 for those with time charters. Hedging exposure
Georgi Slavov, managing director of Basic Materials and Dry Bulk Freight Reasearch at ICAP, says that the hedging situation has been affected by the breakdown of annual contract price negotiations for commodities like iron ore and coal. Contracts for coal and iron ore used to be negotiated on an annual basis and prices were, in consequence, very stable all year round. “This contract system collapsed a couple of years ago and pricing these commodities has essentially moved into the spot market, resulting in higher risk for operators now squeezed between the mining companies and the end user, which means more operators are hedging their exposure. Price stability is no longer there, therefore contracts for delivery of these commodities between miners and end users are shorter, meaning the operators that are transporting these commodities are left with greater and greater exposure,” he says. Some companies still prefer longer term contracts, but there are very few of those left, Slavov says. “Companies that are willing to fix long-term contracts are trying to find a way around the current spot market by asking major counterparties to provide them with a flat price and the counterparty then goes to the market and hedges.”
What advice can be provided to the bunker industry to deal with the current climate? Blackwell says that there are a lot of instruments out there to use, whether options or swaps. “It depends on their requirements. It depends on how certain they are of forward sales, it depends what their cash flow is like, what risk they have and what risk they want to take going forward. The tools are there and there are plenty of solutions for any problem,” he says. Are certain products more appropriate than others? Others, who know their market and exposure may be looking for a fixed price over, say, a two year period. “Each individual is a different case, but there are plenty of solutions to problems.” According to Slavov: “Hedging is a must these days. I would firmly advise people to look into the tools that are available.” Commenting on the co-relation between fuel oil and crude oil (see chart 1), he says that it is wiser to use swaps and hedge bunker exposure than using oil futures. The fuel swaps market is now providing enough liquidity for the hedger. The other point he makes is that bunkers represent a much higher percentage of running costs than was the case in the past. A few years ago, they would have represented 50% of other running costs, now the figure is closer to 200% he says. Volatility on the fuel market is lower than volatility on the crude oil market, he explains, which is another argument for hedging using fuel swaps and the dynamics of hedging is safer, making it a better tool. Volatility on the fuel market is to be seen in chart 3. “It is a volatile market on its own and you need to have the appropriate risk management to avoid any surprises.” A volatile market means sharp movements within a matter of days, “which underlines the importance of hedging” he concludes.
Georgi Slavov
World Bunkering Autumn 2012
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INTERVIEW
In the beginning
As part of World Bunkering’s programme to mark IBIA’s 20th anniversary, David Hughes asked key founder member David Peart how it all began.
David Hughes: So what set the ball rolling and led to the creation of the International Bunker Industry Association? David Peart: The Association really got off the ground at a conference in Disney World, Florida, about 25 years ago. It was very well attended and for most people, it was very memorable. It gave a lot of traders, suppliers and brokers their first opportunity of meeting face-to-face. DH: Who were the main figures in the early years? DP: I will not single out individuals from the many outstanding people who drove the organisation forward following Florida conference, with one exception: Doug Barrow. My first memory of him was in Florida wearing a large card on his lapel, ‘’I Believe In Action’’. Doug became chairman and worked tirelessly in IBIA’s early days. DH: Why was an association like IBIA needed? DP: We needed an association to bring players within the industry together and to improve standards, for example through training courses. The bunker industry had no voice and few standards. IBIA filled the position and soon became the industry’s voice. Previously industry players only got together at general shipping events and conferences covering purely the bunker industry were unknown. DH: How did the Association develop in the early days? DP: Well, things moved swiftly as the Association recruited staff and started to design courses for the industry and produce safety documentation, among other things. DH: IBIA’s annual dinner is now a very established part of International Petroleum (IP) Week. How did it come about? DP: I was elected to the board and became honorary secretary. The trips to London became frequent and the next idea was that we
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David H Peart
World Bunkering Autumn 2012
had to promote the Association globally. The Norwegian Shipping Academy’s annual conference in Oslo was on the list and as the conference there closed, Doug Barrow and I repaired to my room to attack a bottle of Glenmorangie. We talked about how we could get people together rather than just at conferences. We decided that a traditional black tie dinner, with speeches and the like, would fit the bill. I returned to Hartlepool and Doug to London. A few days later Doug phoned and asked how the dinner arrangements were going: truthfully, I had done nothing! My first task was to find a venue and we had thought that IP Week would help the numbers. It must be remembered that there was no email in those days and my secretary had to fax the members with the details. A nervous few days followed but we had decided to hold the dinner even if there were only 40 attendees. I came into my office a few days later to find my secretary wading through dozens of faxes. It was a happy moment when I realised we had a winner on our hands. Day by day the numbers went up and thankfully the hotel – The Carlton Tower in Knightsbridge – could expand its function room to cope. I think that the number attending was over 300. DH: What was the first dinner like? DP: The first speaker was the now deceased Roderick Burtt, who was well known to me on the north-east dinner circuit. A retired chartered surveyor, he insisted on having as many names of members as possible and then gently poked fun at them in his well -researched speech. I booked him again a few years later when the dinner had moved to the Intercontinental Hotel. DH: What sort of support has the dinner received from the industry? DP: The generosity of the many sponsors over the years has been amazing. The dinner is now the second-biggest event of IP Week.
DH: Apart from the IP Week dinners you were involved in arranging the IBIA conferences and other events. What can you say about those? DP: Along with many other board members, I attended conferences in Miami, New Orleans, Singapore, Hong Kong, Istanbul, the Canaries, Malta etc, normally along with the IBIA stand. At several conferences I was also asked to speak, usually about something frivolous. We also arranged two dinners in New York, the first was sadly just after 9/11, which through ill health I could not attend. My wife, Maggie and my daughter Kirsty (who had worked for IBIA on a part-time basis) went in my place. Kirsty read my speech at what was a very moving event. DH: What has changed over the years since the first IBIA dinner? DP: Certainly technology has made the operation of the Association much easier. I remember a board meeting at the Intercontinental when the then chairman, Antonio Cosulich, waxed lyrical about this wonderful new method of communication called email. I had email but very few other members of the board did. The following year everybody had it. DH: Looking back, how do you view IBIA’s progress over the years? DP: IBIA is now well established and is now acknowledged to speak for the bunker industry. I was a small supplier in north-east England, but it has been a privilege to be part of the early days of IBIA. It was also tremendous fun! IBIA very kindly invited me to this year’s dinner and Paul Dyke gave me a bed. I had a great time and it was a real pleasure to meet so many old friends. To be honest, I had not realised just how much I had missed it all.
David Peart (right) and David Linville, of Dolphin Marine Fuels, Florida, celebrate IBIA’s 20 years
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INDEPendents
Challenging times
Independent bunker operators are ready to face the tough market conditions, reports Sandra Speares.
E
conomic uncertainty in Europe, a large order book and less appetite for investment in shipping, are just some of the challenges facing the industry at the moment, according to Harro Booth, managing director of Hamburg-based Elb Oil. “We are in a very rough environment which we believe will last until 2014,“ Booth says. Only the offshore and liquid natural gas (LNG) segments are “sailing in a solid market”. Managing risk and acting responsibly are key components. Booth says all independents, whether large or small, are facing the same challenge: that of counterparty risk. Payments of running costs and redemption of loans are very difficult for some operators because of historically low charter rate levels, he explains. There are fewer payments in dividends to private investors, and many in Germany have not seen a dividend for some time now. Elb Oil was only set up last year with a highly experienced team for the bunker market. The advantage the company has is that it was set up when the downturn had already kicked in. Therefore, from day one it had in place all the necessary tools to minimise risk, Booth says. “All our clients are insured with credit insurance companies,” he explains. More than 80% of the client portfolio consists of AA customers. The company uses two banks which provide it with financial tools and “this guarantees us independence from client payment performance and lets us have a favourable cashflow management,” Booth explains. “Cashflow these days is everything. You need to pay your suppliers on time. Our clients have an excellent payment performance.” Silence is no longer golden, he says and in today’s climate if a company is not prepared to disclose financial figures “we cannot work with them”. Without this transparency credit agencies will not give a good rating, and without that rating one cannot get
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insurance. While client relationships may be long-standing “they have to be supported by financial figures,” he says. “You have to be very open these days. This is something we expect from our clients and something we also provide ourselves.” The bunkering business will remain a person-to-person business, despite the downturn, but notwithstanding personal relationships, today’s climate requires disclosure of financial figures. Most of the company’s clients fully understand this. Booth believes that this attitude will alter the industry and marks a change from the past. Elb Oil, he explains, not only has financial backing, but a good control system to check reports in Hamburg, Singapore and London. So what of consolidation in the industry? Booth believes consolidation will be in the large company end of the business. There have been a lot of ownership changes in this segment, with 50% of Cockett being bought by Vitol from Grindrod, Glencore’s investment in Chemoil, and investment fund participation in OW Bunker, to name but three recent deals. While smaller players do not have potential expansion of the bigger players, they can provide a personal business, he says. Smaller players have relationships with the larger ones that date back a number of years. “We see advantages in being small. We pay on time, we make suppliers happy and we have a smaller portfolio, so we can over look the risk easier than the big guys.” While Elb Oil is small, it is expanding. “We want to grow but in a very conservative way. We want to stay in the market for the long term.” The idea is to build up some strategic partnerships. The company is family run and Booth says there are no plans to sell shares to outsiders. Being independent has its own advantages. Another challenge that Booth mentions is payment terms. He believes that this issue should be discussed by the industry as a whole. “We support the idea of 21 days in general. We know usually
World Bunkering Autumn 2012
Evolution is needed as industry changes
Jane Dahl Christensen
our clients can pay within 21 days without any problem.” He cites Gibraltar as an example, where there are suppliers on 30-day and 21-day terms, the share, as far as orders are concerned, is split 50:50 between the terms. This, he says, shows that clients are not necessarily going for the 30-day terms if they can get a better price on 21. Every supplier, he believes, should sit down and discuss reducing credit terms. “For a physical supplier ‘30 days’ means 40 to 45 days of financing because they have to pay earlier, store it and bring it to the ship. That keeps prices high, and risk is high. I would love to see the industry come together to discuss bring payment terms to 21 days.” Thirty years ago, this was usual, he says. If a supplier is offering 21 days, he says, “We will not offer 30 days, even if we can do it. We do not consider ourselves to be a bank providing finance. The big guys may think they can do it. At the end of the day 21-day terms would help everybody with better prices and lower prices.” Although bank finance is difficult for the industry as a whole, Booth believes that if you have a good business model finance is available, and that this has been proved by Elb Oil’s experience: “We are able to grow our portfolio without outside investment.” The portfolio is balanced between opportunistic customers who have greater upside potential and more conservative long-term customers. Elb Oil, he says, follows a philosophy of “anti-cycle investment”. Being a privately owned company, means being reliable. ”What you mean, and what you say, you have to do.” Booth says the company has been hearing different views from suppliers in north-west Europe about availability. Some say they don’t have problems in supplying gas oil and some say there will be problems with the 2015 emission control area (ECA) deadline. Refineries are not investing in north-west Europe. The issue will be a challenge for suppliers and Elb Oil’s customers, he says. One question will be if cargoes are moved onto the roads as a result. He believes that there will be a paradigm shift towards the use of LNG in the future. In the short term, he says, it will be interesting to see how the market deals with increased costs.
World Bunkering Autumn 2012
The shipping industry is facing change due to the financial crisis, environmental regulation, the impact on world trade and developing Asian markets. All this is coming at the same time, according to Jane Dahl Christensen, EVP physical supply at OW Bunker. At the same time these challenges represent opportunities and they need to be grasped. One of the ways customers do this is by planning, having the right business model and the right partners she says. Every company up and down the supply industry must adapt, and quickly. OW has been aware of this for some time, Ms Christensen told the International Bunker Conference, organised by Norwegian Business School in April, and the company has been expanding in key growth areas like the BRIC countries, where customer demand is significant. OW has upgraded its fleet and developed technology and innovation to ensure the best possible service and practices when it comes to quality and quantity, she said. OW’s focus has been on customers and how to get closer to them, but also on “building more value-driven partnerships. When we all operate in the commodity market our premise has been based on how we can drive more efficiency into our customers’ operations and how we can improve their business performance and therefore their profitability.” This approach has driven OW’s business strategy and represents a critical role that fuel suppliers must play in the market. A number of owners and operators have yet to make changes, in particular as far as environmental regulation is concerned, she says. In considering the 2015 ECA deadline, there are various lobbying efforts to get postponements. However Ms Christensen says there is a real risk that a feel of false hope and a sense of apathy will pervade the market “which is perhaps more dangerous than the regulation itself, as it will leave many companies exposed and without a plan to manage these changes.” The industry is under such environmental scrutiny from regulators and environmental interest groups as well as consumers “that any regulatory amendment would be seen as an unacceptable U-turn. Shipowners and operators need to start thinking what to do”, she said. Use of distillates, scrubbing technology or LNG are the main solutions available. While scrubbing technology is a viable option there is “an air of uncertainty and nervousness in various sections of the industry to move forward with widespread adoption. There is also concern that suppliers will not be able to meet demand, not to mention the capital needed. LNG presents many challenges in relation to supply, infrastructure and the physical bunkering progress. The question is whether this can be achieved by 2015,” Ms Christensen said. That leaves distillates, she said: “While convention wisdom suggests that the compliant solution of choice due to cost and price, they are the only intermediate credible solution based on the current barriers to entry of other options.” There remains little understanding of actual demand for distillates, she maintained: “Critically we are starting to see local, often state-owned, oil companies investing in refineries, while the global oil majors are divesting. The issue for supply is that it is unlikely that low-sulphur MGO will become standard product at many refineries.” This resulted from logistical challenges of producing middle distillates and the fact that land-based diesel products will always be seen as more commercially attractive than marine-based ones, she said. Introducing low-sulphur MGO on a wider basis also causes a number other issues. The desulphurisation process is capital intensive which will have an impact on pricing. Appropriate storage facilities are also an issue.
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Also there is the issue of the different flashpoint for marine fuel than for that which is sold on land. These factors makes it difficult for refiners to justify the investment. Refinery capacity is increasing in the Middle and Far East. Although there may be sufficient supplies of middle distillate going forward, those supplies would not be in Europe, said Ms Christensen. Product will need to be shipped to Europe, with the corresponding effect on the price: “Owners and operators must focus on the planning procurement process for where they need the distillates. This will provide the refiners with an idea of the demand and supply required, and it will also ensure that owner and operators have the most efficient and cost-effective procurement
Bunkering operations
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strategy possible. This planning has to begin now, and this is where the fuel suppliers have a significant role to play.” When it comes to the introduction of the 2015 ECA deadline fuel suppliers have the best capability to put in place a fuel procurement strategy that ensures the best price and product that can be delivered on time. Quality has always been an issue in the bunker industry and at the end of last year it was hit with criticism that it was providing substandard products. The main criticism came in a study released in 2011 which showed that out of 100 clients 43 experienced quality issues in relation to off-spec fuel. “This survey does not correspond with what we see in OW and what we see with our competitors, she said, if that is the perception in the market, something needs to be done about it and suppliers need to take responsibility at an individual company level to implement procedures that minimise claim issues.” she believes. The company has developed advice on line-blending skills which reduce the need for tank blending and ensure that air is not injected into the product. The company has also invested in flow meter installation. OW can also help with credit, she says. Owners and operators are finding it more difficult to handle their business and Ms Christensen said OW had taken the position that it was up to the fuel supplier to help customers meet these challenges by extending credit in a “controlled and balanced manner. It is not about being commercially naive, but the reality is that credit is extremely important“. There has to be understanding between suppliers, owners and operators, she said. Though some think that the bunker market is driving high prices, this is not the case she believed: “I think we would be better off with lower prices which would result in lower costs and less requirements for capital.” There needs to be recognition of the financial exposure fuel suppliers face in taking a more favourable approach to credit, she said. “This is why it is only right that a fair and appropriate margin is taken.” The role of the fuel supplier is changing. To succeed there must be a continual focus in building stronger bonds between suppliers and owners, based on trust and partnership.
World Bunkering Autumn 2012
Fuel Quality
Chemical attack
Michael Green of Intertek Lintec ShipCare Services contends that chemical contamination of bunkers is a growing problem.
T
HE world of marine fuels is beset with common problems that are seen to reoccur on a regular basis. Instances of cappuccino bunkers, sediment issues, poor stability and other such concerns seem to come around time and time again. Yet another issue that falls into this category is the contamination of marine fuel with “chemical waste”. This particular aspect of fuel quality can have severe consequences as far as vessel operation and subsequent damage are concerned, and, unsurprisingly, serves to divide opinion more so than most quality issues. Chemical contamination in relation to marine fuel falls into a grey area in so far as there is no strict definition of what a contaminant is and what are considered to be acceptable levels. The revised ISO 8217:2010 marine fuel specification took steps to address this issue with the inclusion of requirements relating to the presence of bio-derived material and the overriding statement that “fuel should not include any added substance or chemical waste...”
Michael Green
So far in 2012, Intertek Lintec ShipCare Services has issued two bunker alerts regarding the presence of chlorinated compounds in marine fuels. The presence of such compounds poses a significant risk to both the vessel and the crew. Supply chain
In many cases, chlorinated compounds within marine fuel are present in the form of chlorinated solvents that have found their way into the fuel somewhere within the supply chain. Chlorinated solvents have a number of applications in a variety of commercial and industrial processes. They are often used as de-greasers, cleaning solutions, paint thinners and pesticides. The presence of these types of chemicals within marine fuel can have a number of effects. At low concentrations the presence of chlorinated solvents can thin fuel to such a degree that the required injection viscosity cannot be achieved. In addition, their presence can also lead to seal shrinkage and fuel pump seizures, as well as having an overall effect on lubrication.
Raising questions
Clear picture
However, the lack of guidance regarding such chemical waste again raises several questions as to what is acceptable and what is not. Over the past five years, instances of contamination with compounds such as Styrene and DCPD have been seen on a regular basis. As a result, the industry has gained a degree of understanding of the impact of such chemicals and it is widely accepted that, in some cases, low levels (10’s of ppm) may be found in the fuel supplied to the end-user and consumed without issue. However, in adopting a more pragmatic approach, it would appear that a degree of complacency has crept into the industry, allowing for the increased frequency of contamination cases and a wider range of more unusual contaminants to be seen.
By looking at overall test figures, the picture becomes clearer. Of those samples submitted to Intertek Lintec ShipCare Services, around 50% are screened for chemical contaminants. In 2010, 5% of all screened samples showed higher than expected levels of chemical contaminants, with 1% showing critical levels. In 2011, the figure rose so that 6% of all screened samples showed higher than expected levels, with 1.5% being considered critical. For 2012 to date, 4.6% of all tested samples have shown higher than expected levels, with 1.5% having critical levels. The quoted figures would suggest that levels of chemicals in marine fuels are slowly increasing and that, as a result, more instances of contamination-related problems can be expected.
World Bunkering Autumn 2012
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17th
Singapore International Bunkering Conference and Exhibition 16-19 October 2012
Resorts World Sentosa, Singapore
Achieving Sustainable Solutions for Marine Fuels
1350
participants
800+
150+
traders & suppliers
shipowners
SHIPPING LEADERS
GUEST-OF-HONOUR Mr Lui Tuck Yew Minister for Transport and Second Minister for Foreign Affairs
KEYNOTE AND INDUSTRY ADDRESSES Aaron Cobb Global Director ExxonMobil Marine Fuels
45+
countries
MARINE FUEL EXPERTS
Tor Svensen President DNV
Sillas Oliva Filho Managing Director Petrobras, Singapore
Thomas Knudsen CEO Maersk Line Asia Pacific
Apostolos Rizakos Managing Director Aegean Marine Petroleum S.A
Kwa Chong Seng Chairman NOL Group
Capt Rajalingam Subramanium Vice President Fleet Management MISC Berhad
Adam Ritchie General Manager Oil Market Analysis Shell Trading
Yukio Matsukata General Manager Fuel Group NYK Line
Loh Hong Leong Managing Director Global Energy Trading Tom Reilly CEO Chemoil Eirik Andreassen Managing Director DNVPS
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Lubricants
Different approaches The debate on whether ships can use a high or low base number to determine
whether they should carry a single grade of oil on the vessel has been a matter for considerable debate in recent months.
T
here have been conflicting views as to whether a single fuel option is a possibility, given the demands of transiting areas that have exclusion zones for high-sulphur fuels. Total Lubmarine for example has said that the idea that a choice is made between high or low base number lubricants depending on where the ship is operating, could be pose a danger to the ship. Lubmarine has developed a lube which is dual-purpose marine cylinder lubricant, that the company says is compatible with bunker fuels with varying percentages of sulphur. Total Lubmarine has extended its global network of service and supply centres with the opening of a dedicated commercial and supply hub in Copenhagen, Denmark. Already a significant player in the Nordic region, especially in Norway and Denmark, Lubmarine is now able to offer ship owners and operators an international-class local sales and logistical service in the Danish capital. Serge Dal-Farra, head of marketing at Lubmarine, says: “We believe in having a presence wherever in the world our customers need us. Our new operation in Copenhagen forms the latest link in our worldwide chain, and we look forward to welcoming customers, old and new, to our dedicated facility there.� OW Bunker launched of a new global marine lubricants division in April with the aim of providing a full range of lubricant grades to customers, in cooperation with leading lube brands. The division will be based in Piraeus, and will be led by Stathis Grafakos, who has years of experience in the lubricants business. Further offices will be rolled out on a global basis over the coming months. “With our unparalleled expertise and knowledge of the fuel market, we have the capability to provide customers with specific lubricants solutions in line with their trading patterns and the type
World Bunkering Autumn 2012
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Lubricants (continued)
of fuel that they are using,” said Grafakos, who is manager of OW Bunker Malta, as the new operation was announced. “Fuel oil is changing rapidly in line with new regulations, creating new pressures and stress for engines, which demands additional protection from new and advanced lubricants. Our partnerships enables us to provide customers with the latest high-performance products that can help reduce operational costs and optimise the performance of their fleets.” Søren Christian Meyer, global sales director for OW Bunker, commented: “The launch of our lubricants division is a natural step for us as we continue to look at every avenue where we can add further value to our customers’ operations. Our continual focus is on helping them to reduce costs, and increase both efficiencies and profitability within their operations. We understand the challenges that they face, and combining our knowledge of the fuel market to include the provision of lubricants solutions will enable us to have an even greater impact in achieving this.”
Meanwhile, Castrol Marine has extended its cylinder oil range to address concerns about engine damage and performance as slow steaming and fuel sulphur content restrictions bite. Higher BN Cyltech meets slow steaming realities, the company says. The specialised marine lubricant supplier has launched Cyltech 80 AW, an 80 BN cylinder oil. The Cyltech range has been developed for optimum engine protection in two-stroke crosshead engines and specifically to match engine performance with the demands of varying sulphur fuels and the impact of slow steaming. Castrol says this premium product is the logical next step in assuring ship owners that the right lubricant is available to meet vessel needs in all operating conditions. The Cyltech brand now spans the 40-80 BN range, which is the widest of all marine lubricant suppliers, the company claims. “Our customers face ever-tightening regulations on the environment, but also new operational challenges brought about by slow steaming,” says Luigi Tedesco, Castrol Marine chief executive.
Lubes in storage
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World Bunkering Autumn 2012
“Cyltech 80 AW offers a proactive response to new industry realities.” As a result of research, field trials and engine inspections, Castrol believes that each vessel should use a single cylinder lubricant based on that vessel’s predominant operating conditions. Where 40 BN cylinder oils may suit vessels permanently operating in emission control areas (ECAs), the supplier has concluded that those of 70-80 BN are better-suited to vessels regularly slow steaming and on international trade, even those involved in frequent ECA transits. “Any imbalance between cylinder oil feed rate, BN and power compromises engine efficiency,” says Paul Harrold, a marine and energy technology manager for Castrol. “Slow steaming may bring lower lubricant feed rates and, when higher sulphur fuels are used, a higher lubricant BN protects the engine against potential damage. It also limits the amount of burnt cylinder oil in exhaust gases, thereby cutting emissions.” Cyltech 80 AW will initially be available via Castrol’s main regional distribution hubs “It is critical for owners that the right cylinder oil is readily available for use to protect performance and vessel safety, particularly in prevailing commercial conditions at a time when they face tighter environmental regulation than ever before,” says Jonathan Hutchinson, Castrol Marine global marketing manager. Both slow steaming and sulphur content have direct consequences for fuel efficiency, maintenance costs, lubricant consumption and environmental responsibility, says Mr Harrold. “The pressure is on lubricant suppliers to show that new cylinder lubricants to the market are tested in all extremes, and not just in the conditions that suit their products,” says Mr Harrold. “We know from field experience that Cyltech 80 AW provides improved neutralisation capacity, and hence better corrosion protection across the fuel sulphur range while slow steaming than a mid BN lubricant.” Original equipment manufacturers have acknowledged the fundamentally changing demands on cylinder lubricants caused by slow steaming, particularly in large-bore engines. Wärtsilä recently advised customers with engines of 80cm bore and above to increase feed rates because corrosion problems have been
observed when slow steaming. “We are not suggesting that a ship has to carry a range of cylinder oils. In fact, the majority will carry only one, depending on their engine and voyage operating pattern,” says Mr Harrold. “We want to make sure that our customers get the right answer and the right single lubricant solution for each vessel, based on its predominant operating conditions. “By selecting the right cylinder oil for the right operating conditions, slow steaming customers can use less fuel confident in the knowledge they are not risking damage to their engine, and that is why we now recommend Cyltech 80 AW for many customers.” ExxonMobil’s new Mobilgard 560 VS product, which is set to replace Mobilgard570, is a high-performance, marine diesel engine cylinder oil that is designed for use in crosshead engines running heavy fuel with sulphur levels from 0.5-4%. This new cylinder lubricant technology provides maximum protection from adhesive and corrosive wear at the higher operating temperatures and pressures found in today’s modern crosshead engines. Mobilgard 560 VS employs additives with greater thermal stability and acid-corrosion protection. It has an optimum viscosity of 20 cSt at 100ºC and low volatility for optimal lubricant distribution and film retention. Through the use of patented technology, the oil’s higher viscosity is attained without the use of thermally unstable, deposit-producing bright stock. Unique additive technology at the 60 TBN alkalinity level in Mobilgard 560 VS has demonstrated outstanding ring and liner protection and cleanliness under sustained operation with fuel sulphur levels down to 0.5% at equivalent 70 TBN oil feed rates. According to ExxonMobil, Mobilgard560 VS’s benefits include reducing deposits and sludge formation, therefore reducing the lay-up time required for engine overhauls. Reduced liner and ring wear helps promote extended periods between overhauls, with anti-scuffing control helping to maximise protection against the corrosive effects of high sulphur fuels, the company said. Exxon Mobil made its first bulk delivery of Mobilgard570 in May having chartered the double-hulled delivery barge Hai Gong You 30 for two years.
Clean engines
World Bunkering Autumn 2012
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GEoGraphical focus: south east asia
MPA looks ahead
David Hughes reports on several recent interventions that can be seen as signs of the authorities’ determination to maintain Singapore’s position as the world’s top bunker port.
D
espite the ongoing global economic crisis, total volume shipmasters’ lack of knowledge of local environmental condiof bunkers sold in the Port of Singapore grew 5.6% to tions, misjudgment of tidal strength and inadequate ship-handling another record high of 43.2 million tonnes last year. proficiency in port waters.” Nevertheless the Maritime and Port Authority The MPA has also been active on the commercial “house(MPA) knows that it cannot afford to rest on its laurels. keeping” front. In June it cancelled the bunkering licences of Apart from competition from existing bunker ports, there is every Winbuild Petrofin Pte Ltd for contravening the terms and condilikelihood that China will continue to boost its bunkering capability tions of its licences. This means the company may not operate as a as its massive petrochemical infrastructure programme continues. bunker supplier or a bunker craft operator in Singapore. So the MPA is continuing push the modernisation of the bunker According to the MPA’s website the company ranked 29th out tanker fleet. As a disincentive to using old tonnage, a flat 15% surof 79 licensed bunker suppliers in terms of volume last year, but the charge on bunker tankers without double hulls up to 16-years-old actual volumes per supplier are not listed. has been in place since the beginning of the year. In addition, to encourage the use of MARPOL-compliant double-hulled bunker tankers a 50% port dues rebate for bunker tankers up to 5-years-old now only applies to MARPOL-compliant double-hulled bunker tankers. The MPA has also acted to enhance the safety of the increasingly busy bunkering anchorages by removing an exemption to compulsory pilotage for most vessels using the special bunkering anchorages. The MPA said in a statement: “Several near-miss incidents and contacts had occurred in these anchorages, despite the advice to shipmasters to engage the services of pilot if they are not familiar with the port waters. The findings from these incidents indicated that the Launch of the first officially approved mass flow metering system for commercial delivery in Singapore common contributory factors were
World Bunkering Autumn 2012
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The MPA’s assistant chief executive (operations), Captain to suspend or cancel the bunkering licence of any bunker supplier or bunker craft operator that is found to have contravened any of the terms and conditions of the bunkering licences.” An MPA statement warned licensed operators “not to make use of any bunker craft to deliver bunkers on behalf of any person, firm or company that is not a bunker supplier licensed by MPA”. Still on the commercial side, a recent UK P&I Club bulletin warning of a “cappuccino” effect in some Singapore bunker stems caused a stir. The bulletin says: “It has come to the club’s attention that some bunker deliveries at Singapore have contained excessive amounts of air. As a result the quantity of fuel delivered and received was significantly overstated. This effect is termed ‘cappuccino’ as the entrained air causes the fuel to ‘foam’ which makes traditional manual measurement at the time of delivery unreliable. After a few days the foam tends to collapse and tank measurements then show a significant ‘loss’ of fuel.” The rest of the bulletin consists of guidelines that “have been compiled to assist ship’s crew with identification of this potential problem and hopefully help with dispute resolution”. The Singapore Shipping Association (SSA) responded quickly, saying it took a very serious view of the allegations. It noted that suppliers must comply with the Code of Practice for Bunkering – SS 600:2008 – which is a set of bunkering procedures developed by the SSA and gazetted by the Singapore government. Bunker buyers and receiving vessels are also required to comply with SS 600 if they lift bunkers in Singapore. The SSA said that it believed that a significant number of reported instances of cappuccino, or ‘frothed’, bunkers were exaggerated and unsubstantiated by hard evidence at the time of loading. It said: “Bald allegations of supplying frothed bunker after several days’ sailing are completely inadmissible.” Shaj U Thayil, APL’s vice-president technical services and ship management said: “As responsible owners, the onus lies on us to conduct adequate due diligence. We must remember that the bunkering industry in Singapore is very competitive, and when we consider other factors, such as the current economic situation and the high price of bunkers, if it sounds too good to be true, it probably is.”
SSA president, Patrick Phoon added: “We would like to take this opportunity to emphasise that there were only 30 bunker quantity disputes reported to the SSA. While it is undesirable to have any complaints, this is a relatively small number in view of the fact that there are over 37,000 vessels which called at Singapore for bunkers in 2011.” In a move that may strengthen confidence that accurate volumes are being delivered in Singapore, a recent MPA advisory appears to signal a move to end the practice of some barge operators refusing to accept certain bunker quantity surveyors. While most of the parties involved have been keen to address the issue in a low-key manner there has been, for several years, a problem with some suppliers declining to accept surveyors from certain companies (notably those from DNVPS) or demanding a premium for doing so. It is understood that the issue is not so much with the suppliers but the barge operators. The advisory says: “No party is to decline the presence of the nominated bunker surveyor as detailed in the relevant contractual agreements before and/or during the bunkering operations.” The development of mass flow meters (MFMs) may also help eliminate quantity issues. Although certain companies have been using MFMs for some time, an ExxonMobil-chartered bunker tanker has become the first in Singapore to use an MPA-approved MFM system. Of these MPA’s director for port services, Parry Oei said: “The transfer of bunkers using the MFM system as another official custody measurement of bunker quantity is a significant milestone for the bunkering industry in Singapore.” However, a well-placed industry source told World Bunkering that some suppliers are against the use of the meters. He said that cost was an issue, unless MPA is going to subsidise the costs of fitting the equipment. Even then there is, he argued, no single flow meter that will suit all bunker tankers. Meanwhile the MPA has appointed IBIA, together with SSA, as the training service providers of its Enhanced Bunkering Course for Cargo Officers in Singapore. The move is part of MPA’s ongoing efforts to enhance cargo officers’ professionalism and competency. IBIA, along with the SSA, has run a cargo officers’ course since 2009, to enhance cargo officers’ technical knowledge on bunkering related shipboard operations as well as to raise general awareness of maritime security and personal safety. As well as the enhanced course, IBIA also runs a one-day Basic Bunkering Course on SS600, which is recognised by MPA. IBIA Asia Branch chairman Daniel Phua notes: “IBIA Asia continues in its work plan to engage the industry stakeholders in many fronts aiming to create various value-add and differentiated programmes for members . For example key upcoming events include the annual IBIA Golf Challenge 2012 17 August in wen we will also present the inaugural bursary awards students nominated from Nanyang Technological University and Wavelink Maritime Institute. I and other members of the executive committee actively represented IBIA’s interest’s at various industry committees, including SPRING’s Work Group for Mass Metering and we will also be attending the significant Industry Forum to be Bunker tanker Emissary alongside Kota Layang for the first commercial delivery with the mass held on 24 August.”
GEoGraphical focus: M Segar, said: “MPA will not hesitate
flow metering system
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World Bunkering Autumn 2012
GEoGraphical focus: SOUTH EAST ASIA
Busy time for J-bunker New Malaysian Bunker industry association Johor Bunkering Services Association, or
“J-Bunker”, has had a busy year so far, as it secretary Wan Sabri Wan Mohd reports.
J
-Bunker has now been incorporated as a non-governmental organisation, making it the first, and only, bunkering association based in Malaysia or south-east Asia We held our first seminar on 22 February 2011. This gathered together all the government department and agencies related to bunkering activities. In January, we launched the Corporate Social Responsibilities (CSR) programme, in collaboration with Malaysian maritime enforcement agencies. This created a one-stop information centre where any crimes, illegal transfers, wrong-doing by government officers, complaints and other issues related to bunkering and maritime activities in Malaysia, and especially the state of Johor, could be reported. In April we then conducted an awareness programme, together with the Ministry of Science, Technology and Innovation’s Department of Chemistry Malaysia, about “gas-free and confined ships spaces safety practice”. This was followed by J-Bunker holding the highly successful Malaysia Bunker Convention 2012, in collaboration with IBIA. J-Bunker also held an HSE Bunkering Inspection Induction course at the same time. Currently the Association is preparing to publish its Guidelines on Bunkering Operation in Malaysian Territorial Waters, to help bunker operators improve their understanding of safety issues. It is cooperating with all port operators, Customs, Marine Department, port authorities and other government agencies to ensure the protection of Malaysia waters. Finally J-Bunker is collaborating with the Malaysian Department of Standards Development to create a comprehensive and recognised bunkering services national occupational skill standard for bunker operators.
J-bunker has been participating in seminars on commercial...
and pressing security issues
World Bunkering Autumn 2012
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GEoGraphical focus: ARA
Green thinking
Environmental considerations are to the fore in the ARA region as major projects go ahead, as Sandra Speares reports.
L
iquid natural gas (LNG) is the talk of the port of Rotterdam, with a group of companies getting the green light from the Netherlands’ government to introduce liquefied natural gas as a clean transport fuel in the country. The objective is to run a minimum of 50 barges, 50 seagoing vessels and 500 trucks on LNG by 2015. In June the companies signed the “Green Deal LNG” together with Maxime Verhagen, minister for Economic Affairs. The start of the chain is located on the Maasvlakte in Rotterdam, at Gasunie and Vopak’s Gate Terminal, where LNG enters the Netherlands by tanker. According to National Platform LNG, the commissioning of the Gate Terminal in 2011 has provided the Netherlands with the possibility of deploying LNG as a clean alternative for traditional transport fuels. The liquefied gas currently flows through the pipeline network of Gasunie to domestic and overseas users. Gasunie and Vopak are now planning to build a smaller terminal next to Gate Terminal, which will enable LNG to be transferred to tank trucks delivery to petrol stations as a clean fuel for road transport, and to bunker stations for inland and sea-going vessels. There are also plans for a quay, so that LNG can be distributed using smaller vessels. The Port of Rotterdam Authority is understood to be discussing a deal with European Container Terminals for a new facility to be built between Gate Terminal and the ECT’s Euromax container terminal on the Maasvlakte which would allow LNG supplies for shipping. Figures for investment are of the order of e40 million with a target date for completion of 2014. Rotterdam received some unwelcome publicity in recent months when allegations of blending bunker fuel with hazardous substances was investigated by the Dutch marine police. Police reports suggested that waste material containing hazardous substances had been mixed with heavy fuel oil as a means of avoiding having to deliver waste to a reception facility. Last year research organisation CE Delft produced a report on this issue.
World Bunkering Autumn 2012
Terminal agreements
OW Bunker announced that it has entered into agreements with the Rubis Tank Terminal in Rotterdam and the Vesta Tank Terminal in Antwerp, to allow for increased access and guaranteed supply at key bunkering ports in April 2012. The investment in direct supply facilities comes in response to increasing demand for RMK 1% 500 cst fuel oil, a cost-efficient low-sulphur fuel, that offers savings for operators transiting within the European ECA. OW Bunker Netherlands’ contract with the 72,000m3 Rubis Tank Terminal in Rotterdam will support the supply of all grades of marine fuel on both spot and contract basis, and will guarantee supply of RMK 1% 500 cst fuel oil. The agreement also gives OW Bunker Netherlands exclusive control over all loadings and discharging at the terminal. OW Bunker Belgium has also secured 44,000m3 of storage capacity at the Vesta Tank Terminal in Antwerp, in a move to create even more efficiencies in barge loading and vessel supply along the busy trade route. As the deal was announced Vincent De Vos, managing director of OW Bunker Netherlands, said: “With bunker prices remaining high, we are very aware that our customers need to look for the most costefficient bunkering strategies, and we have invested in these terminal agreements to ensure we can offer the highest quality and best-value products to meet our customers’ needs. “Many of our customers in the ARA were requesting RMK 500 cst heavy fuel oil, but were not aware of the existence of the 1% sulphur alternative, which is both a cost-efficient and practical alternative for meeting regulations in the region. We have been working with our customers to increase awareness of the range of products available and entering into these terminal agreements ensures that we have the infrastructure in place to meet rising demand.” Mutual trust
Aegean can now supply in more than more than 60 ports in northwest Europe, according to Tony Vertommen, managing director
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of Aegean North-West Europe. The market, he told delegates at the recent International Bunker Conference in Oslo, was both financially and economically very difficult. Suppliers face a number of challenges, not least buying against letters of credit – in other words against pre-payments – and sell on open credit terms. “On top of that, the credit we give is without any financial security from our clients towards us.” Another issue he raises is the relationship between cargo traders and bunker suppliers, and the relationship with bunker clients. Cargo traders could fall into different categories: oil majors, which have access to their own refineries, or trading companies with physical oil. “There is a big difference in approach towards the physical market, certainly if you compare the actual trading situation with the way it was done before the market-on-close (MOC) system was introduced in 2007. Before the MOC started to become operational, traders gave their offers to brokers who tried to find buyers for their clients. “Physical bunker suppliers, like us, were very important buyers and every day there was communication between bunker suppliers and cargo traders, with a certain level of respect going both ways.” Since 2007 Platts has been monitoring the system and is watching all the players who take part in this “electronic window”, Mr Vertommen said. “The painful reality is that for us, physical bunker suppliers, it is becoming more and more impossible to buy product at a normal market price, and this is due to the simple reason that so-called cargo traders are not willing to take any risks any more. Everything has to be covered or hedged.” While Aegean will be looking for offers during the course of the day from traders, “Their offer, if we finally manage to get an offer, is, most of the time, not realistic.” Commenting on the MOC system he said offers and bids have to be in before 17.00 hrs. There are three window periods and rules are very simple and should be applied to all players involved. “The reality is, regretfully, different. The cargo traders have so much power that they play with us bunker suppliers.” Physical suppliers also face difficulties in ensuring that their product is available, due to poor communication on the part of traders, he said. They are paying their own suppliers in cash and give clients open credit. “This makes us probably one of the biggest banks in town. Because we prefinance about 30 days we have to knock on the door of the real financial institutions and ask for huge credit lines. This has a certain price.”
The massive Maasvlakte 2 container terminal project is underway
Another issue is how suppliers find owners. Aegean has built up its fleet to establish a first-class service for its clients, he says, but due to the amount of competition, pricing remains the dominant issue. All bunker suppliers have to comply with certain specifications he said. On the bunker delivery receipt four samples are mentioned. “These are the only existing official representative samples.” Two samples stay on board, one for the ship and one for Marpol purposes, with two samples taken by the supplier. Mr Vertommen says that in recent years there have been a rising number of claims directed at bunker suppliers. One of the reasons for this may be high prices in combination with a huge amount of paperwork. Also, he says, in many cases the chief engineer is not allowed to use his experience, but is obliged to adhere to rules laid down by management. Many claims are just forwarded unread to suppliers. Every bunker supplier has to use its own initiative to try and solve the problem. Mr Vertommen believes it is not possible to get a “legally accepted and representative barge loading sample out of a refinery or storage installation, this after completion of loading our barges. We do not even get the full analysis of what we buy. The only thing we know is we buy it according to required specification; the British Standards.” As a result Aegean has introduced its own bunker quality system. Claims are often sent which are based on “nothing serious”, because surveyors acting on behalf of owners do not trust bunker suppliers “by definition” he said. Time, money and energy are wasted as a result. The real problem, he says is that the understanding between contracting parties is slowly disappearing. “It is really time people start thinking, and, with a little goodwill, start showing a bit of respect to suppliers in general. Do not forget, it takes two to tango.”
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GEoGraphical focus: Baltic and Scandinavia
Looking to LNG
Sandra Speares examines developments in the Baltic and Scandinavian regions.
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altic ports have been concentrating their efforts on building up their capability to supply liquified natural gas (LNG)bunkering, as companies are increasingly looking to LNG as the fuel of the future, and one that will meet new regulatory requirements regarding emissions. Helsinki, Copenhagen, Malmö Port, Århus, Helsingborg, Riga, Tallinn, Turku and Stockholm have announced their plans to develop LNG facilities. The new initiative was put together by the Baltic Ports Organisation and has EU funding. It was launched because of the demands placed on the shipping industry by the introduction of the Baltic Emission Control Area (ECA). With several ports involved in the project, the concept is to ensure that ships moving between Baltic ports that have adopted the LNG solution to upcoming environmental legislation, can be assured that supplies will be available in the region. Scandinavian firms have always been at the forefront of new initiatives to make shipping greener, whether it be port incentives for green ships or innovative engine designs. As fuel costs continue to rise, one example is the initiative by the Swedish port of Gothenburg that has developed a new plan to encourage ship owners and operators to choose cleaner fuels for their vessels by offering reimbursements for increased fuel costs. Shipping lines that choose a fuel containing a maximum of 0.1% sulphur can receive up to SEK 250,000 in compensation for increased fuel costs. Other fuels, like LNG, can also qualify for financial support. Gothenburg has been charging supplements for vessels with more than 0.5% sulphur content for a number of years, and the revenue serves to compensate those owners using cleaner fuels. “We have worked with our customers to arrive at proposals for how this revenue should be used. Providing support for low-sulphur fuel is one of several initiatives,” Magnus Kårestedt, the Port of Gothenburg’s chief executive, said when announcing the new incentives.
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“Through this environmental measure we aim to demonstrate that it is possible to take important steps towards cleaner shipping through voluntary collaboration and our hope is that in this way we will facilitate the transition to low-sulphur fuels.” However, as elsewhere, Scandinavian companies know that the cost of complying with new regulations will not be cheap. Many are considering dual-fuel systems using LNG. Baltic Oil Terminals meanwhile is going ahead with its fuel oil optimisation project at the company’s product terminal in Aabenraa, Denmark.
Tank storage
World Bunkering Autumn 2012
The implementation of the project involves re-engineering the terminal’s present pumping and hydraulic configuration, through replacing the existing centrifugal pumps with modern and efficient screw pumps manufactured by Leistritz Pumpen in Germany. At the same time, the pumping flow lines for the loading of vessels will be reconfigured to allow a step-up in the flow rates when loading vessels and significantly increasing the terminal’s potential throughput. The plan has a total budget of €1.2 million and implementation is expected to be completed by the end of this year, whilst ensuring that present capacity remains unaffected by the modifications and allowing continuity of operations for the rest of 2012. Baltic Oil Terminal’s turnover increased to £15.6m last year, compared to the previous year’s figures. New LNG terminal for Sweden
An LNG terminal could be completed in Gothenburg as early as 2015 following the signing of a letter of intent between Gothenburgbased Swedegas and the Dutch company Royal Vopak. The terminal will supply LNG to both shipping and industry. Royal Vopak, a specialist in the storage of LNG and other energy products, and the infrastructure company Swedegas, which owns and operates south-west Sweden’s gas grid, are carrying out feasibility studies for the project. According to Mr Kårestedt: “We welcome this initiative. Royal Vopak and Swedegas offer a strategic alliance with a strong combination of international experience and local market knowledge.” An LNG terminal in Gothenburg would be of major strategic value, not only for shipping and the west coast of Sweden but also for industry in other parts of the country, he believes. The planned terminal’s capacity is 20,000m3, with possible further expansion according to market demand. Natural gas will be brought to the terminal by sea. The feasibility study, as agreed in the letter of intent, will include technical and financial parameters and is expected to be completed by the end of this year.
The Port of Gothenburg will be among the first major ports in the world where vessels will be able to refuel or bunker with LNG without having to enter a special terminal. As is the case today, bunkering will take place from a bunker vessel while the vessel is being loaded or unloaded. According to a new report by the Danish Maritime Authority a number of small-scale terminals are expected to be established in Denmark, Norway, Sweden and Finland by 2020, as well as in Germany, Belgium and the Netherlands. “Large import terminals are mainly found in major ports, and investment at the import terminals are required to supply LNG to feeder and bunker ships, as well as tank trucks and for the direct filling of ships. Medium-sized LNG storage tanks are likely to develop in existing ports without their own LNG import terminal, but with ample traffic in the vicinity. A large number of ports with a rather small demand for LNG can have it trucked from a nearby port or install an LNG tank: thus the service will mainly rely on truck filling, which will often be sufficient for serving small ferry routes and regular liner traffic with a limited demand for LNG. “An LNG bunkering infrastructure consisting of fixed terminals, bunker ships and tank trucks, will encompass differences in composition as well as capacities. Furthermore, it is important to work out migration strategies for the LNG infrastructure in the different ports and port areas, as the market is envisaged to grow rapidly in the years 2015-2020, bearing in mind that it is vital to reap economies of scale,” the report suggests. Recommendations include: • Ship-to-ship bunkering as the major bunkering method for vessels with a bunker volume of, or above, 100m3. • The tank truck-to-ship bunkering solution will used as a supplement in all sizes of terminals for receiving vessels with bunker volume requirement of up to 200m3. • Bunkering directly from terminal-to-ship via pipeline, facilitated by a tailor-made installation, will be utilised for large bunker volumes; primarily for repeat customers.
Powering the future
World Bunkering Autumn 2012
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BOOK Review
Fuel for thought
Nigel Draffin
Nigel Draffin’s new book Bunker Fuel for Marine Engines – A Technical Introduction focuses on “the complicated relationship between ships’ engines and the marine fuels that power them”.
C
omplete with extensive glossary and full of photographs and technical illustrations, Nigel Draffin’s latest book has been described by the highly respected industry veteran of Exxonand DNV Petroleum Services, Dr Rudolph Kassinger, as “a comprehensive sequel to John Lamb’s seminal treatise Petroleum and its Combustion in Diesel Engines”. That book was first published in December 1955 and is long out of print. According to Dr Kassinger in his Foreword to Bunker Fuel for Marine Engines, Lamb’s book, ‘now has a worthy successor’. According to Mr Draffin, who is the current IBIA chairman, Bunker Fuel for Marine Engines provides the reader with a solid introduction to a subject that every supplier or user of marine fuels would do well to understand. Mr Draffin believes that “a ship’s engine room is a place of refuge for engineers, but a place of mysteries to most others” and uses the thoroughly researched book to take the reader on a technical tour around the equipment that will be found there, from main and auxiliary engines to generators, refrigerating plant and other fuel-using machines. He takes the reader through the complete process of burning fuel onboard, from storage of fuel to dealing with the exhaust, before looking at the different types of diesel engine and their specific fuel requirements. He also looks at gas turbines, fuel cells and developments in shore power, and covers boilers, fuel and
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accommodation heating and incinerators, before also looking at waste heat recovery systems. Fuel types and bunker quality standards are laid out for the reader, as are blending, storage and onboard fuel treatment, where the work of separators, purifiers, clarifiers, decanters, homogenisers, filters and other engine room kit is explained. Fuel heating, pumps, fuel measurement and storage are amply covered as are an engine’s sensitivity to fuel qualities. Topically, the book looks at emissions and how they might be controlled and also at unconventional fuels such as biodiesel, shale oil, liquefied and compressed natural gas, liquefied petroleum gas and even coal.
World Bunkering Autumn 2012
PREVIEWS
Sibcon 2012
The world’s biggest bunker industry get-together is set to take place once again.
T
wo years seem to have shot by, and it is time for the 17th Singapore International Bunkering Convention and Exhibition (Sibcon) once again. The 2010 Sibcon was a resounding success, to some extent helped its new venue: Resorts World Sentosa. This year’s event will be also be at the Sentosa, which claims to be Asia’s ultimate destination and includes the region’s first Hollywood movie theme park, Universal Studios Singapore, and the Resorts World Casino. As ever, Sibcon 2012 has strong official support, demonstrated by a welcome address by the guest of honour Lui Tuck Yew, minister for transport and second minister for foreign affairs. An innovation this year will be a symposium held on Tuesday 16 October, prior to the main two-day convention, focusing on Strategy, Risk and Claims Management. Charlotte Røjgaard, global technical manager, DNVPS, will open the symposium by looking at “Evolving Fuel Standards and the Impact on Bunker Trade”, after which Julie Heng, head of commodities and senior vice president of the Singapore Exchange (SGX), will cover price risk management. After lunch Adam Smallman, head of content, Lloyd’s List Group, will explore credit risk pitfalls and Lee Wai Pong, executive director, Singapore Chamber of Maritime Arbitration, will explain the advantages of settling bunker disputes through arbitration. Shang Doe Shim, divisional director, Standard Asia, will wrap the day up with a presentation on claims and compensation. Golf enthusiasts, however, will face a dilemma as the Sibcon Golf Challenge also takes place on the Tuesday. Tee off is at 12.30pm. The organisers invite delegates to bring along their “golf gear to mix business with pleasure at the exclusive Sentosa Golf Club”. The theme for the main Sibcon event is “Achieving Sustainable Solutions for Marine Fuels”. There will be two keynote speakers: Aaron Cobb, global director, ExxonMobil Marine Fuels, who will speak on “New Frontiers In Global Energy Markets”. He will be followed by Kwa Chong Seng, chairman, NOL Group, who will discuss “Charting a New Course for Global Shipping”.
World Bunkering Autumn 2012
Then comes the Sibcon Visionaries in Shipping Forum, a successful innovation from Sibcon 2010, in which experts will discuss meeting commercial and environmental challenges confronting the shipping economy. The moderator is DNV president Tor Svensen, while Thomas Knudsen, chief executive, Maersk Line, Asia Pacific; Tan Cheng Hui, senior general manager and director, Keppel Offshore & Marine; Captain Rajalingam Subramaniam, vice-president fleet management, MISC Berhad; and Bosco Lau, senior director commercial, IMC Shipping, will all bring their knowledge to the issues of the day. A similar format is employed for the CEO Dialogue, which will be on fuel regulation, and its impact on availability and cost of bunker fuels. The moderator will be Jens Maul Jorgensen, director of bunker and risk management, Oldendorff Carriers, and the speakers will be Sillas Oliva Filho, managing director, Petrobras Singapore; Loh Hong Leong, managing director, Global Energy Trading; and Apostolos Rizakos, managing director, Aegean Marine Petroleum. The rest of the two-day programme will cover all aspects of the bunker scene. The second day includes the Sibcon Industry Think Tank, which will be moderated by IBIA chairman Nigel Draffin, and will examine fuel quality and standards and ask “What lies ahead?” One of the convention’s highlights will be a session on the highly topical issue of mass flow metering, which will look at recent developments in Singapore and will be moderated by Seah Khen Hee, chairman technical committee for bunkering, Singapore Standards Council, who has played a key role in this initiative. As with previous events, this year’s Sibcon will once again feature an oil spill exercise, on Friday 19 October, which will give participants a chance to go out to sea for a half-day demonstration on preventing and managing oil spills. By the end of such an intensive week the temptation will be stay on at Sentosa for the weekend and relax . Perhaps that is the intention.
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PHYSICAL STRENGTH GLOBAL REACH
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SINGAPORE - Tel: +65 6238 6621 – singapore@peninsulapetroleum.com
GENEVA - Tel: +41 22 322 9600 – geneva@peninsulapetroleum.com
SHANGHAI - Tel: +86 21 5386 8866 – shanghai@peninsulapetroleum.com
TØNSBERG - Tel: +47 333 40 100 – tonsberg@peninsulapetroleum.com
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IBIA CONVENTION PREVIEW
Looking to the future This year’s Convention, to be held in Dubai’s stunning Jumeirah Emirates Towers, comes at a time of change both for bunkering and IBIA, now celebrating its first 20 years of representing all involved in bunkering.
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he IBIA 2012 Annual Convention will be held in the United Arab Emirates, at Dubai’s Jumeirah Emirates Towers, from 6 to 8 November. This hotel is located in the centre of Dubai’s commercial business district. It would be difficult to find a better venue for bunker and shipping industry executives to gather. Congenial as their surrounding will be, delegates will certainly want to focus on the day’s big issues. Shipping is not only going through difficult times, but is also facing environmental challenges with profound implications for the bunker industry. The programme reflects the difficult situation facing suppliers and owners alike. Delegates will also be aware that change is afoot at IBIA, and that will be covered too. The Convention will kick off by welcoming Sultan Ahmed Bin Sulayem, chairman of DP World, before IBIA’s chairman, Nigel Draffin, gives his opening address. Mr Draffin?] will then chair the keynote session: “The lights are on green: but everyone’s stalling? Shipowners versus bunker retailers…. Spotlight on 2015 and the further Sulphur Emission reduction to 0.1%: Who will be first to start?” In the first evening there will be a networking welcome reception at the Towers’ Clique bar. Delegates are invited to a night of champagne, canapés and shisha under Dubai’s nighttime skyline. The next morning will start with what has become a hot topic over the past year, liquid natural gas (LNG) as a marine fuel. Speakers try to answer questions like: “Who should invest in what? Will there be any long-haul ships running on LNG by 2030, or is LNG a short sea shipping market? Can the Middle East support an LNG retail infrastructure? And what will the prices for LNG be in 2012-2030?” While LNG is a new topic for IBIA conventions, quality is a perennial subject. Gunnar Kjeldsen, DNVPS manager Dubai, will present “a snapshot of quality trends, LSFO availability and MGO quality in the Middle East”. But others will hint at the changes we face, such as Michael Green, technical manager, Intertek-Lintec, ShipCare Services, who will speak on “Fuel quality trends; the death of residual fuel?”
World Bunkering Autumn 2012
The next Spotlight on fuel prices, alternative innovation and an overview on the global market will see Ricardo Castillo, Purvin & Gertz, ask: “With the price difference between IFO 380 (heavy fuel oil) and MGO (0.1%) fluctuating heavily, can we predict future prices for Low-Sulphur fuel?” Robin Meech, Marine & Energy Consulting, looks at what is emerging as the big question of the moment: “Will there be sufficient lower sulphur fuels without scrubbers and LNG?” Next the focus will switch from the big global questions to an overview of the bunkering scene in the Red Sea and Gulf ports. What challenges do these ports face and what will happen to demand? After a day of debates there will be a chance to unwind at a Cocktail Reception & Gala BBQ, celebrating 20 years of IBIA held at the Jumeirah Beach Hotel. The IBIA promises a “night of Arabian enchantment and exquisite views of the Burj Al Arab and the Gulf”. The final day will open with a session where delegates discuss solutions on the subject of credit. John Phillips, managing director, Ocean Intelligence, will chair a debate on “Credit where credit is due – What factors influence the development of relationships in the maritime and bunker industries? Is creditworthiness the only thing that really matters?” Panellists will include Trevor Harrison, acting chief executive of IBIA and maritime arbitrator and mediator, and Jonathan McIlroy, credit manager for Peninsula Petroleum. The final session will look at the future of IBIA itself. Nigel Draffin, IBIA chairman and technical manager, LQM Petroleum Services, will chair an association briefing when delegates will join the IBIA’s board members in laying down a vision for the association. Draffin says: “We encourage all members to join us for this session to ask questions, stimulate a debate and come to a consensus on how we move your association forward for the next 20 years.” The Convention will wrap up with a farewell lunch and a tour of the massive port of Jebel Ali. World Bunkering will be at Dubai and we look forward to meeting as many IBIA members as possible.
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russian update
Russian news and views
Olga Bogacheva
A round-up of developments in the bunkering scene by Olga Bogacheva Bunker suppliers gather in St Petersburg
The fifth Russian Association of Marine and River Bunker Suppliers’ annual forum – Current Trends and Highlights in Russian Bunkering Market – was held in St Petersburg on 28 and 29 June. Despite the growing number of events in the shipping industry, many of them held in this city, market professionals apparently still believe that the best insight into the bunkering industry is on offer at the Association’s annual forum. That is why 160 attendees representing all the regions of Russia with navigable waterways were at the gathering, which was addressed by Maxim Sokolov, the Russian minister of transport.
Disscussing the Russian bunkering market in St Petersburg
World Bunkering Autumn 2012
It is widely recognised the industry is becoming increasingly complex. Benno Spencer, team leader, EMEA Dirty Products, Platts, acknowledged this in his speech Changes at the European residual oil market and their influence on the Russian market, stating that the heavy fuel oil price is rising and will continue to do so, leading to a negative impact on industry profitability. Spencer said the main reasons were well known: modernisation of oil processing technologies and closures of certain refineries. A shortage of low-sulphur products was another negative factor. A presentation delivered by a leading Russian oil processing expert Vladimir Kapustin of VNIPIneft research and design centre attracted considerable interest. Kapustin explained that total oil production in Russia was 256.4 million tonnes in 2011, 69.7 million tonnes of which were diesel fuel, and 70.4 million tonnes being heavy fuel oil. The conversion rate was against a worldwide average of 90%. Kapustin stated that Russian companies had begun to pay serious attention to modernising their production facilities. This is the result of strict government control over the country’s refinery modernisation program. Two plants – one for hydrotreating of petrol manufactured by catalytic cracking in Yaroslavl, and another for the hydrotreating of diesel fuel in Kirishi – out of a planned 10 were commissioned in 2012. The modernisation of 47 other plants, due to take place between 2013 to 2015, is on schedule. However, there are delays to the modernisation work at
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Alexander Sobolev of Nevskiy Mazut addressing delegates in St Petersburg
also addressed the same issue in his presentation Bunkering market after 2015. – European approach. He looked at technical alternatives from the perspective of both shipowners and bunker suppliers and he emphasised that both parties should work out practical solutions. Aleksey Kitikov, of Marine Facade of St Petersburg, gave optimistic view of the future of the Baltic cruise market .While the Baltic Sea will never be as popular as the Caribbean and Mediterranean, the passenger numbers have been growing steadily, even during the current crisis. The market expanded by 12% between 2000 to 2011, ahead of the world average of 7%. He said the major factors attracting cruise companies to the Baltic Sea were: the embarkation ports are easily accessible for tourists from Northern Europe, ports are close together, infrastructure is good, and safety is guaranteed. He noted that small and previously less popular ports were also seeing impressive increases in cruise passenger numbers. It was predicted that numbers at Riga, Latvia, would rise by 42% to 90,000 in 2012. Saaremaa, Estonia, which has previously had almost no cruise calls is expecting 5,000 passengers this year. St Petersburg is the second-most popular Baltic port, with about 500,000 cruise passengers visiting the city last year. Discussions on the future of the Russian bunker industry continued informally during a gala dinner held on board the restaurant ship Ocean. The delegates enjoyed a convivial evening and one of the best views of St Petersburg. 15 other plants. This programme will inevitably cause a drop in heavy oil production – from 73.3 million tonnes in 2012 to 27.7 million tonnes in 2020. In 2011 56 million tonnes of heavy fuel oil were exported. By 2015 the figure is forecast to have dropped to 34 million tonnes and by 2020 to just 13 million tonnes. Igor Ilnytskyi of the Marine Engineering Bureau, Ukraine, discussed the prospects for using liquid natural gas (LNG) as marine fuel. He noted that industry experts were concerned by various risks arising from using LNG onboard ships. However, he added, using LNG as the main fuel for duel-fuel engines obviously brings significant benefits against the use of low-sulphur diesel fuel or heavy fuel oil (HFO) combined with scrubber systems. Ilnytskyi also noted that using LNG would eliminate sulphur emissions and reduce nitrogen oxides and carbon discharge. Anatoli Belov, of AS Bominflot Estonia,
World Bunkering Autumn 2012
Delegates at the St Petersburg gathering
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Tranzit DV Trade House Co., LTD 13, Uborevicha street, Vladivostok, 690091, Russia Tel: +7 (423) 249-11-99 Fax: +7 (423) 243-29-94 E-mail: group@tranzitdv.ru Marine Logistics Korea LTD. #1821 Gwanghwamun Officia, Sinmunno 1-ga, Jongno-gu, Seoul, Korea. zip code (110-999). Tel: 02-722-1123 02-722-1108 02-722-1136 Fax: 02-722-1160 Mobile: 01096906878 Skype: flex_19812. Yahoo ID: mllkno1 E-mail: lee@tranzitdv.ru Web: www.eng.tranzitdv.ru Marine Logistics Co., Ltd Office No. 18B-18F, One Capital Place, No. 18 Luard Road, Wanchai, Hong Kong Tel: (852) 2865-0381, Fax: (852) 2865-0189 E-mail: marine.logistics@gmail.com
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russian update
MNTP Group expands
Baltic Fuel Company (BFC) supplies Carnival Cruise Lines
MNTP Group, Novorossiysk, reported $218 million in sales during 2012, 3.4 times higher than in 2010. Its profit on bunkering increased by $12.5 million to $17.6 million. Currently NMTP manages three bunkering tankers and the company has 40% of the Russian Far East regional market with monthly sales of about 25,000 tonnes. NMTP Group provides services in Novorossiysk and Primorsk, and also intends to expand operations to Ukraine and Russian inland waterways.
Baltic Fuel Company (BFC) has secured a contract to supply Carnival Cruise Lines’ vessels. The contract stipulates 160 bunkering operations in St Petersburg (Marine Facade terminal) during the summer season, from May until September 2012. A total of 160,000 tonnes is being supplied of which 130,000 tonnes is heavy fuel. The first supply under this contract was performed on 4 May. A BFC spokesman said that 600 tonnes of residual and 80 tonnes of diesel fuel were delivered to the Aidasol by the bunker tanker Captain Shiryaev.
LUKOIL opens Barcelona terminal
Rosneft supplies Sakhalin-2 project gas carrier
A joint venture between of international oil trader, and 100% LUKOIL subsidiary, LITASCO and Spanish-based Meroil has opened a terminal in Barcelona. Meroil was only set up in 2010 and the terminal project is part of its expansion programme. Presidents Vagit Alekperov of LUKOIL and José Luís Porté of Meroil attended an opening ceremony on 27 April. Alekperov said that there were syngeries with the company’s other oil processing and supplying assets in Europe. Thirteen new tanks, with capacities ranging from 6,500m3 to 40,000m3 and a total volume of 360,000m3, were built on a 40,000m2 site. The terminal is connected to the Hydrocarbonates Logistics Company’s pipeline and equipped with eight service decks to supply up to 400 tank trucks daily. LITASKO will re-export and distribute diesel, jet engine fuel and biofuel in Spain through the new terminal. The new tanks turn the terminal into one of the biggest in the Mediterranean with total capacity 1,000,000m3. A new 275m long quay allow large tankers of up to 150,000 dwt. The operating company says the new terminal is equipped with modern safety and quality control systems that comply with international quality management, industrial safety, labour protection and environmental requirements.
The bunkering subsidiary of oil company Rosneft, RN-Bunker, delivered fuel to the 145,000m3 gas carrier Grand Aniva, in Nakhodka in June. This is the first bunkering operation of this type in Russia. Previously ships working on the Sakhalin-2 project has bunkered in other Asian-Pacific ports. The stems are being carried out under a long-term contract between Rosneft and Sakhalin Energy signed in 2011 which provides for supplies of bunkers to the Sakhalin-2 project operator by Rosneft via its own terminal. The Grand Aniva is chartered by Sakhalin Energy Investment Company to deliver LNG in the Asia-Pacific Region within the framework of Sakhalin-2 project. The bunkering of Grand Aniva at Nakhodka port is seen as an important step in the implementation of Rosneft’s development programme of expansion of bunkering business and its sales to the end customer. The Sakhalin-2 oil and gas project is one of the world’s largest. It is being built in the severe climate conditions on Sakhalin Island in the Russian Far East. The first Russian LNG plant came into operation in February 2009.
LUKOIL-BUNKER expands tanker fleet.
LUKOIL has announced the next step in it plans to supply bunkers in the Finnish Gulf. A new tanker, the 6,988 dwt Nimbus SPb, will supply oil products at Vysotsk, Primorsk, St Petersburg and Ust-Luga ports. A company spokesperson said there was high demand for this tanker at Ust-Luga, the most rapidly growing port in north-western Russia. This deep-water port accepts vessels of up to 160,000dwt, resulting in a requirement for large stems. The Nimbus SPb is one of the largest tankers in the region and is deployed in conjunction with two other tankers, the Baltic Seagull and Arctic.
World Bunkering Autumn 2012
Inzhtransstroy wins Sochi port second stage bid
State enterprise Rosmorport and Inzhtransstroy Corporation have signed a RUB 7.11 billion contract for the construction of a international passenger and cruise centre in Sochi, the capital of the Winter Olympics 2014. Sochi port is one of Olympic projects and the contractor undertook to complete construction within 17 months and hand the facilities over by October 2013. That compares with about 23 months normally allowed for a similar projects. Inzhtransstroy Corporation was also the contractor for the first stage of Sochi sea port reconstruction. That phase included the reclamation of 6.5 hectares of land and strengthening of the perimeter banks. The second stage will consist of two cruiser berths, reconstruction 10 existing berths, and construction of berth engineering networks,
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dredging, construction of 200m pier and a protective seawall. The project is aimed to provide conditions to sea tourism at the Black Sea. The passenger traffic is expected to triple by 2015 and reach 400,000 people annually. Bunkering is VAT-exempt
The Russian Ministry of Finance has issued a new regulation – No. 03-07-07/52 – explaining which bunkering services are taxexempt. The Russian Tax Code allows VAT exemption for repairs and maintenance services (including port charges, port fleet services, pilot services, classification and survey of vessels) provided to seagoing vessels, inland waterways crafts and combined navigation vessels during port calls. According to Russian Classification of Economic Activities OK 029-2007 (KDES Edition 1.1) and OK 029-2001 maintenance services for vessels during port calls include ship chandlery and bunkering services. TransOilBunker’s new barge
TransOilBunker Bunkering Company (Vladivostok) added a new barge, the Maks Tanker, vessel to its fleet in May. The company now has six tankers providing bunkering to the ports of Primorsky Kray. The Maks Tanker is an unrestricted navigation bunkering tanker used specifically for the delivery of large consignments, as well as transporting bunker cargoes between the ports. The fuel is then taken to fishing grounds in the Sea of Okhotsk, Bering Sea and the Sea of Japan. TransOilBunker Bunkering Company bought the tanker last year. She was built in South Korea in 2000, is 85.6m long and has total tank capacity of 3,936.254m3. She has been modernised with the fitting of a double hull and strengthened for operation in ice conditions. Ministry of Transport increases funding for river transport
The Russian Ministry of Transport has increased its funding of river transportation by 30%, bringing it to $495 million, deputy minister Viktor Olersky announced recently to the media. Olersky noted that the increased funding had been approved by the Economic Development Ministry and Russian Ministry of Finance with only minor amendments. “Investment in the river industry is developing well. All projects we commenced are going on well. Problems arise in marine industry beginning from design and ending at construction stage,” he said.
All three stages of the project are to be operational by the end of this year. The first stage which consists of loading bays and a berth, with a capacity of 7 million tonnes of heavy fuel oil, was commissioned last year. Construction of the second stage, with the same capacity has just been completed. The third stage, with a capacity of 12 million tonnes, will transship light fuel. A fourth stage for transshipping ultra-heavy fuel oil is expected to be operational in November 2013. This facility includes a loading bay and several tanks, with a total capacity of 6 million tonnes. Rosneftbunker supplies Gasprom Neft, Moscow Refinery, Kirishinefteorgsintez and Samara refineries, Yaroslavnefteorgsyntez, Taneko and refineries from Kazakhstan. Novatech is expected to use Rosneftbunker’s berths to transship condensate via its own berths, nos 6 and 7. Hamlay also said that Rosneftbunker plans further development when the current stages are complete are reached, with an eventual target of an annual throughput of about 25 million tonnes. He also announced Rosneftbunker’s rebranding. The company will become Ust-Luga Oil. Open joint-stock company Rosneftbunker was established in April 1997. Its major activities are financing, construction and management of a bulk liquid terminal at Ust-Luga seaport in the Finnish Gulf. Rosneft barge at St Petersburg
Rosneft’s 6,844 dwt double-hull tanker RN Polaris tanker is now operating in the Baltic. According to the contract signed 10 years ago Rosnefteflot is a bare-boat ship owner and provides a technical management. RN-Bunker runs the commercial operations of the vessel. The RN Polaris can transport up to 12 types of oil products simultaneously. She will be used in bunkering operations in the Baltic Sea, particularly in St Petersburg and Ust-Luga. The RN Polaris is the third bunkering tanker operated by Rosnefteflot and RN-Bunker. The RN Magellan and RN Taurus have been providing bunkering services in the Black Sea and in the Northern Region respectively since 2011.
Rosneftbunker invests $1bn in Ust-Luga
Rosneftbunker’s investment in the construction of three oil berths at Ust-Luga port has reached $1 billion, according to newspaper Commersant Daily, quoting the company’s chief executive Konstantin Hamlay.
World Bunkering Autumn 2012
RN Polaris
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Tel:+35725760376Fax:+35725341803 email:info@evrasiabunker.com Internet:www.evrasiabunker.com LimassolCyprus Novorossiysk●Tuapse●KerchStrait●Odessa●Primorsk●St.Petersburg●Kozmino
russian update
Thoughts on the future
Dr Tamara Kandelaki
Olga Bogacheva interviews Tamara Kandelaki, general director of InfoTEK-CONSULT on her views on the future of the Russian bunkering industry.
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he world of business seems to be becoming more complex all the time. The worldwide bunkering industry is affected by many factors, from the general economic climate to specific environmental legislation, both national and global. Recently I had the opportunity to ask oil industry and bunker expert Dr Tamara Kandelaki what were the main factors influencing the development of the Russian bunker market? “The bunkering market definitely depends on the world economy and, particularly, on total sea transportation volumes,” says Dr Kandelaki. She continues, “When demand for cargo and passenger transportation grows, bunkering fuel sales follow. Environmental issues are also very important.” She explained that, in her view environmental regulations are heavily influenced by national priorities. She said: “Requirements always become tougher to satisfy certain interests. Imagine this situation: a government sees that a national company has invested in technology and produces a product of high quality, but the national market prefers a cheap imported low-quality equivalent. What would the government do? The result is: national company pays less taxes. “Macroeconomics was invented by market analysts. In reality economics is always national and reflects national, state and government interests,” says Dr Kandelaki. Turning back to the Russian bunkering market she says: “Factors unfavourable for one industry may be positive for others. There are two groups of bunkering operators here. One is made of subsidiary companies of vertically integrated oil companies (VIOCs), the other
World Bunkering Autumn 2012
of independent operators. Both groups depend on oil prices. It is commonly assumed that oil prices are completely independent. However, in fact they depend on national economic policies of a single country. Other countries, including Russia, are pawns in this game. And Saudi Arabia, too.” She notes that the Russian market is growing by 1 million tonnes annually. “Thus, market drivers are definitely positive. We have three scenarios for future of the bunkering market until 2025 and foresee different ways for its development. This is a complex study. I may summarize the results as follows: the first scenario assumes the current trend will continue. The second, optimistic, scenario is based on demand growing 10% faster than in the status quo scenario. The third, pessimistic, scenario assumes demand growing 10% slower than in status quo scenario.” Dr Kandelaki explains that Russian fuel quality requirements for products sold in the domestic market lead to significant availability of low-quality diesel fuel that may be exported or used to produce bunker fuel. Consequently, blended low-viscosity and residual marine fuels were offered at the market to replace high-sulphur residual. “This,” she says, “is the factor motivating oil companies to expand their bunkering businesses.” The construction of oil terminals should, according to Dr Kandelaki, be considered as a separate significant factor. “Our agency has kept and updated a database of oil terminals in ports in Russia and other CIS countries for the past 10 years. In 2012 we included terminal construction projects. It is clear today that crude oil routes will move from other countries to Russian ports in the
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russian update
near future. This is another proof of priority of national economical interests in Russian policy. Olga Bogacheva: Fuel suppliers have to buy fuel from a producer or an agent. Are there enough resources available for bunkering companies? What will happen in the future? Tamara Kandelaki: In my opinion, bunkering companies which are parts of VIOCs won’t have any problems. Their goal is just to get a profit equal to or higher than that is possible by exporting the product. VIOCs are huge companies. They exist only if effective short-term and long-term planning, economical analysis and control procedures are put in place and used. Remember that the five largest producers manufacture almost 75% of total heavy fuel oil output. They are Rosneft, LUKOIL, Surgutneftegas, TNK-BP and Gazprom Neft. Three of them own bunkering companies and so dominate the market. The total number of heavy fuel oil producers in Russia is 89. Total heavy fuel oil output in 2011 was 76.2 million tonnes. Last year that increased by 4.5%, due to the commissioning of a new TANECO refinery in Tatarstan, which has an annual output of 7 million tonnes and is owned by OAO Tatneft (91%) and Svyazinvestneftechim OAO (9%). Meanwhile construction of the Tuapse refinery (total output 12 million tonnes) is progressing. Initially only straight-run products will be produced and exported. Oil consumption will increase. All of these changes have to be taken into account in any forecast. Independent operators are usually supplied from independent manufacturers, including mini-refineries. Independent refineries, like Antipinsky, have their own reconstruction programs. The commissioning of cracking facilities will reduce heavy fuel oil production. Mini-refineries are another issue. Bunkering companies are their best heavy oil customers. But it is not clear if the oil will be still available for them.
OB: What is the size of the Russian bunker market and what are the shares of the different regions? TK: The lowest estimate of the Russian bunkering market is about 11 million tonnes. About 33% of this amount is in the Baltic basin, 29% in the Pacific region, 24% in the Azov and Black Sea regions, with the remainder in the Arctic and Caspian areas. OB: Your estimate is higher than the 6 to 7 million tonnes normally quoted. Why is that? TK: InfoTEK uses a different basis for calculating the volumes of bunker sales than the data provided by the customs authorities which is usually relied on by other analytical agencies. We calculate
World Bunkering Autumn 2012
volumes of oil products delivered to bunkering bases by rail and water transport. We believe this provides better data for calculation of market volume in each region. I would like to add a few words about the Baltic basin. The major bunkering centres are Primorsk, St Petersburg, Ust-Luga, Vysotsk and Kaliningrad. The major projects are the expansion of the Rosneftbunker, SYBUR and NOVATECH terminals. We expect growth in oil trans-shipping demand and, thus, the bunker market. The Baltic bunkering market is the largest in terms of the number of operators. However, the risks are highest there. The upcoming environmental restrictions on sulphur content in heavy fuel oil will have their most severe impact in the Baltic Sea. This presents significant risks for market operators. They need resource base analysis and forecasts for the future. This involves a complicated study based off a model of the development of the Russian oil industry as a whole. Probably we are the only agency capable of carrying out this sort of such study. We have many clients. OB: So what lies ahead for the Russian bunker suppliers? TK: I am an optimist and so believe in the most optimistic scenario. The market will grow unless there is a global catastrophe. I think the period 2015 to 2016 will bring challenges. We expect structural changes in oil production chain during this period. These will increase business risks. I wish all in the Russian bunkering industry success and good health. About the author:
Dr Tamara Kandelaki, general director of InfoTEK-CONSULT Doctor of Science (Economics) Professor at the Gubkin Russian State University of Oil and Gas. Graduated from the Gubkin Moscow Institute of Oil and Gas. Post-graduate subject: Industrial heat-and-power engineering. PhD thesis: Improving the efficiency of natural gas use. 25 years experience in the industry. Vice-president of the Moscow Oil Exchange for 10 years. Recognized expert in oil and gas market and logistics. Author of more than 100 publications including Petrochemical, Oil and Gas Processing in Russia, LPG in Russia, Fundamental analysis of oil product markets in Russia and countries around the Caspian, and Russian fuel oil – selling tips”. Doctor’s degree was awarded for the thesis “Transformation of the information-analytical bawse for the state regulation of the oil industry evolution”.
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legal news
Getting paid
Nathan Cecil, partner in Australian-based shipping lawyer Norton White, explains how recovery actions
Nathan Cecil
for unpaid bunker claims can allow suppliers to get paid when things go wrong.
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igh bunker prices and tight economic circumstances have resulted in a perfect storm, leaving unpaid bunker suppliers in its wake. The position of bunker suppliers is precarious for three reasons. First, bunker fuel is one of the largest expenses in shipping operations. In these tight economic times bunkers are one of the costs that are the hardest for shipping operators to meet. As a result, bunker suppliers are faced with significant delays in payment and also nonpayment. Second, shipping operators often expect credit terms for the payment of bunkers. Most bunker suppliers purchase their stock from oil majors on tight credit terms. Bunker suppliers try and reflect these in their credit terms with shipping operators. Any delay in payment by shipping operators leaves bunker suppliers in a position where they have to pay their suppliers regardless. Third, shipping operators and their vessels are often only in the jurisdiction of the bunker suppliers temporarily. This is particularly the case in geographically remote places like Australia. This means that a supplied vessel will often leave the jurisdiction before the credit terms expire and before payment is due – thereby removing the only asset of the shipping operator from the jurisdiction. What then is a bunker supplier to do? The starting point is to conduct a risk assessment for each supply. Any new customer, shipping operator with bad credit history, or shipping operator that does not have a repeat presence in the jurisdiction, might be identified as a potential credit risk. It might be appropriate to require up-front payment or at least a substantial deposit for any such supplies.
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For any supplies where credit terms are to be granted (and in practice, this is most supplies), the next most important thing is to establish a solid legal foundation for the supply. This means ensuring that the bunker supplier has an appropriate, comprehensive and up-to-date set of terms and conditions for supply. The terms and conditions will provide the legal foundation for many rights of enforcement that a bunker supplier might not otherwise have under general law. For example, the terms and conditions might provide for enforcement rights as against additional parties. Where a vessel owner orders a supply there is generally no issue that the owner is liable to pay and action can be taken against the vessel in the event of nonpayment (see below). However, under a time charter it is usually the time charterer that is responsible for bunkers. Where a time charterer orders a supply, the supply contract will be between the bunker supplier and the time charter, not the owner. The time charterer will therefore be responsible, not the owner or the vessel. Bunker supply terms and conditions often try to address this problem by saying that any supply is made jointly to the person ordering the supply and the owner/vessel, and that enforcement action can be taken against any or all of them. However, a contract between a charterer and bunker supplier cannot automatically make owners jointly liable just by saying so. It is necessary to give owners notice of the proposed supply and terms and conditions, and obtain their express or implied agreement to be bound before the contract is concluded. Another example is for terms and conditions to provide for a retention of ownership of bunkers by the bunker supplier until it
World Bunkering Autumn 2012
is paid in full. Ordinarily, ownership of goods transfers to a buyer upon delivery. Under a retention of ownership clause, the bunker supplier remains the owner of the goods until it is paid. If a payment default occurs, the bunker supplier is entitled to exercise its rights in respect of the bunkers. First, the bunker supplier could demand that unconsumed bunkers be returned to it, whether at the next port of call or elsewhere. However, in practice this might not always be possible. Not all ports are equipped to discharge and store bunkers. Further, the price obtained upon resale at an intermediate port might not be attractive. Second, the bunker supplier can demand that its bunkers are not further consumed. Any person with notice of the bunker supplier’s retention of ownership who then consumes the bunkers will be guilty of conversion, which is similar to theft. However, where bunkers are ordered by a time charterer a further complication arises. Where a time charterer fails to pay for bunkers, they often also default under the charter party and redeliver the vessel and bunkers remaining onboard to the owners. Charter party terms typically provide that owners will pay the charterer for the bunkers remaining onboard upon redelivery. Where owners take over and pay for the bunkers without prior notice of the bunker supplier’s retention of ownership, the law says that they take the bunkers with ‘clear title’. That is, clean and free and not subject to any retention of ownership. In order to establish a right to pursue owners for conversion, bunker suppliers need to ensure that owners are on notice of the retention of ownership before they take over and pay for any bunkers remaining onboard. This is best achieved by giving owners notice of the retention of ownership at the time of supplying the fuel to the vessel (if owners have not otherwise already been provided with notice of the terms and conditions and/or made party to the bunker supply contract). This is best done by communicating direct with owners. A fallback, although not as effective, is to include a notice of retention of ownership in the bunker delivery receipt signed by the master/chief engineer on behalf of
World Bunkering Autumn 2012
owners when the supply is made. This provides an additional cause of action and an additional person against whom to seek recovery. Terms and conditions will not do any good if they are kept in a desk drawer or on a hard drive. Terms and conditions must be incorporated into the contract for bunker supply in order to be effective. They must be incorporated before the supply contract is finalised. Once the supply contract is finalised, it is too late to try and incorporate terms and conditions – the deal is already done. Incorporation is best done by getting the customer to sign a copy of the terms and conditions. Next best is to send the customer a full copy of the terms and conditions when negotiating the supply. Following that, the next best course is to include a notice referring to and incorporating the terms and conditions in the booking request/confirmation forming the supply contract. Bunker suppliers should also consider insisting that payment for the supply is guaranteed by another entity, such as a group parent or holding company. Of course, a guarantee is only as good as the financial standing of the guarantor. A guarantee provided by a company with no assets or cashflow is as good as no guarantee. The financial standing of the guarantor must therefore be considered. A further issue that must be considered in relation to guarantees is the authority of the person signing the guarantee. In order to be valid, a corporate guarantee must be signed by a person who is authorised to give the guarantee. An unauthorised guarantee signed by the mail room clerk will not bind the guarantor. Under Australian law, a guarantee signed by two directors of the guarantor should be upheld. The law of the place which governs the guarantee should be considered in this respect. If the person signing does so pursuant to a power of attorney, the power of attorney should be called for and reviewed to ensure that the giving of corporate guarantees falls within the person’s scope of authority. It is also a good idea to include a clause in which the person signing warrants that they have full authority to give the guarantee. If the guarantor is later able to avoid the guarantee as being shown to be unauthorised, the person signing can be sued personally for breach of their warranty of authority.
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legal news legal news (continued)
In the event that payment default occurs despite the above measures, what are the enforcement options open to bunker suppliers? The most effective weapon in an unpaid bunker supplier’s armoury is to arrest the supplied vessel in order to secure its claim. Only vessels owned by the person liable for the bunker supply can be arrested. For supplies made to owners, arrest is not likely to be problematic. For supplies made to time charterers, the above considerations as to whether or not owners are also made jointly liable under the bunker supply contract will apply. An owner is required to put up security for the claim in order to have the vessel released, failing which the court will sell the vessel and any successful judgment will be paid from the sale proceeds. Even the threat of arrest, where it can be followed through, is often enough to get many claims paid. In certain circumstances, sister vessels in the same ownership can also be arrested. This becomes a very valuable right if the supplied vessel has been sold, sunk, scrapped or is not located in a jurisdiction where arrest is convenient. In some jurisdictions it might be possible to arrest the relevant bunkers themselves in order to secure them, even if a right to arrest the vessel does not otherwise exist. However, this is unfortunately not the case under Australian or English laws. Similarly, in some jurisdictions, namely the United States, the supply of bunkers to a vessel gives rise to a maritime lien which permits the arrest of the vessel regardless of whether or not the owner ordered and/or is liable for the supply. A maritime lien is a special class of maritime claim which is said to “travel with” the vessel and ranks in priority over other claims, regardless of whether the owner is liable and/or any subsequent transfer of ownership of the vessel. However, Australian law does not recognise a maritime lien for the supply of bunkers. Some bunker suppliers try to obtain the benefit of the maritime lien recognised under United States law by making United States law the relevant law of the bunker supply contract, and/or providing for a contractual lien in the bunker supply contract. However, only maritime liens recognised under Australian law will be given effect by Australian courts. Maritime liens which only exist under foreign law or contract will not be recognised in Australia. The position may be different in a very limited number of jurisdictions. Accordingly, the maritime lien for the supply of bunkers that is recognised by United States law will only be able to be enforced by arrest action in the United States or in one of the few jurisdictions which recognise foreign maritime liens, such as Canada. United States law also provides a further interesting enforcement mechanism: the Rule B attachment. Rule B of the Supplemental
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Rules for Federal Admiralty and Maritime Claims permits a person with a maritime claim to attach property (such as bank deposits) of the defendant that is located within the jurisdiction, up to the value of the claim. Once attached, the property is held as security for the claimant’s claim. The introduction of the Rule B attachment resulted in a tsunami of Rule B claims in the United States’ courts. Maritime claimants successfully attached any payments into or out of the defendant’s United States’ bank accounts. Maritime claimants also successfully attached payments which were merely in transit and routed through the United States’ banking system due to the currency of payment being dollars. This continued until the United States Court of Appeals for the Second Circuit, issued a decision which put an end to the frenzy. It held that payments in transit were not property of the defendant and could not be attached until they landed in the defendant’s account. For in-transit payments, the defendant’s account would not be in the United States. Payments which were merely routed through the United States’ banking system became virtually untouchable. However, it is still possible to attach deposits within or payments coming out of a defendant’s United States’ bank account. A further limitation on Rule B attachment is that it is only available where the defendant ‘cannot be found’ within the relevant United States District – that is, where the defendant is not registered to conduct business in the relevant District. Rule B was designed to provide maritime claimants with a means to secure their claim and force nonresident defendants to appear. However, if a defendant is found within the jurisdiction, there is no need for a Rule B attachment, as a claimant can simply sue the defendant in person. Whilst the feast that was Rule B attachments is now more of a modest meal, it is still a valuable means for maritime claimants to secure their claims, providing that the thresholds for attachment can be met. The nature of the bunker supply business places bunker suppliers in a precarious position in relation to payment. However, a well-structured supply contract can help avoid some problems and provide additional remedies in the event of default. If default occurs, bunker suppliers have a range of potential enforcement mechanisms available to them across the globe. Not all of them will always be available, but it pays to consider all of the options in order to recover a significant debt.
World Bunkering Autumn 2012
equipment & services
Fuel savings
Alfa Laval’s separator has recovered more than 150m3 of fuel oil on one Baltic ferry – and saved a significant amount on its fuel bill
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lfa Laval’s new high-speed separator PureDry, which can recover re-usable fuel from waste fuel oil, was installed on the Baltic ferry Silja Symphony in November 2010. The ship’s chief engineer Mats Göras says that since commissioning, the PureDry unit has recovered more than 150m3 of oil, which has been returned to the bunker tanks for re-use. “With bunker oil at today’s prices, this has meant a significant reduction in fuel costs for us,” says Göras. “We have also cut our costs for landing waste oil.” The Silja Symphony is a 58,377gt cruise ferry, delivered in 1991 and owned by the Tallink Group. The ship is equipped with four
Wärtsilä-Vasa 9R46 diesel engines for propulsion, rated at 32.5 MW, and auxiliary engines rated at 7.3 MW. In service on the HelsinkiStockholm route, Silja Symphony consumes some 50 tonnes of fuel oil every 24 hours, sailing approximately 50% of the time. The PureDry high-speed separator was installed onboard in November 2010 and went into full operation in January 2011. Waste fuel oil from settling and day tank bottom drains, fuel oil filters, fuel oil separators and the diesel engines is separated from other waste oils and collected in a dedicated waste fuel oil tank. PureDry recovers the fuel oil fraction from the waste fuel oil and returns it to the fuel oil bunker tank.
Silja Symphony
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Göras says: “We produce roughly 8 m3 of waste fuel oil every six days. Since the PureDry was commissioned, we have recovered more than 150m3 of reusable fuel oil and saved a significant amount on the ship’s fuel bill. To be sure that the recovered oil was within bunkering limits, we sent samples to DNVPS for analysis and they confirmed that it was indeed suitable for use.” The PureDry process reduces the volume of waste fuel oil by 99%, producing 13-15 kg of “super-dry” solids every 24 hours. Göras says: “We land these solids as dry waste, along with oily rags, used filter cartridges, and so on. It’s not a problem as they don’t require any new special means for disposal.” No oil loss
With PureDry, there are no oil losses and no additional wastes are generated. The separated water, with an oil content of less than 1,000 ppm, is pumped to the bilge water system. Göras adds that, in addition to cutting the fuel bill, Silja Symphony has achieved significant savings on waste oil disposal. “We pay €7.5/ton to land waste oil in Helsinki, regardless of the mix of oil and water. PureDry has reduced the amount of waste oil landed by about 450 m3 per year. We save money on fuel and on waste oil disposal,
and very few man hours are required to keep the unit operating.” The PureDry replaced an Alfa Laval MSPX sludge treatment system that treated all oily waste streams and was fitted within the same space. According to Alfa Laval, the new PureDry generation represents a paradigm shift in high speed disc stack separator solids discharge design. There is no aperture in the bowl and no sensitive hydraulic system installed to actuate solids discharge. Moving parts
A patented, spiral-shaped device called the XCavator transports the super-dry solids to the base of the machine where they exit into a container below the machine. There are just two main moving/ rotating parts – the separator insert including the XCavator, and the outer bowl shell. PureDry is supplied with an Exchange Kit, which includes a new separator insert (rotor and disc stack), a new XCavator, and a Consumables Kit. After one year, the crew replaces the separator insert by simply replacing the cartridge in a filter, and the XCavator. The used parts are returned to the Alfa Laval service centre and the ship orders new exchange and consumption kits.
Alfa Laval service centre
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World Bunkering Autumn 2012
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Company News
Argos Bunkering Argos Group plans a leading role in the West European energy market
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n November 2011, a merger was completed between the Argos Group and the North Sea Group resulting in the creation of Argos, the biggest independent downstream oil market player in Europe, which combines storage and distribution with the international trade of mineral oil products and biofuels. Over the past few years, bioproducts have become an important product group for the Argos Group and it is our ambition to take a leading role in the West European energy market, where operating in an environmentally friendly manner is gradually becoming more and more important and will lead to a growing demand for alternative energy sources in the future. Due to the further expansion of its current activities, in turnover as well as on a geographical level, the Argos Group will focus on the wider spectrum of ultra-low emission energy products with safety, sustainability and the environment being high priorities. Combining assets
Argos Bunkering BV was also created as a result of the merger. It combines the assets of niche player Argos Ceebunkers BV with the strength of North Sea Group Bunkering BV (formerly Frisol BV), one of the biggest independent players in the bunker field. The bunker desks and the distillates sales teams of both businesses have been fully integrated to deliver the best possible products and services. Through this move we have created one big bunker trading desk serving all our clients and covering all their needs, which range from every type of distillate to fuel requirements in any kind of viscosity
and volume. Through our ‘one stop-one shop’ set-up we offer all our clients our renowned flexibility and quality, as well as adequate and reliable services at very competitive prices. Our knowledge and experience of the derivatives market also enable us to provide our clients with tailor-made solutions for their requirements in the everchanging and volatile bunker market. Our fleet of double-hulled bunker barges also includes specialised barges equipped with calibrated flow meters and computercontrolled inline blending installations to guarantee that the product supplied meets the requested viscosity and other specifications. These barges can also supply fuel (HSFO or LSFO) and gasoil simultaneously from dedicated tanks and through separate lines and hoses. This shortens the bunker time for the ship’s staff and avoids different grades being supplied by multiple barges. The various products we deliver to our clients’ vessels come from our storage facilities, enabling us to guarantee the right quality and giving us flexibility in our deliveries. The barges comply with the latest loading and supply requirements and regulations, they are approved by major oil companies and therefore they are generally allowed to supply the clients’ vessels during cargo operations at most terminals. Major connections
Through our international offices in Monaco and Hong Kong, we offer our clients worldwide back-to-back bunker trading services. We have connections and credit facilities with all major, state-owned and independent suppliers around the globe. Our Monaco-based office also acts as a physical supplier in all French ports and has strong connections in a number of North African countries. Through our Hong Kong office, which is run by local people speaking all foreign and local languages, we have established a very strong footprint in the Asian bunker trading market, where we have been present for more than 22 years. These offices will only undergo a name change; all other details will remain the same. Key facts: l 15 offices worldwide l 800 employees worldwide l US$14bn annual turnover l 1.25 million CBM storage capacity l Over 100 petrol stations
For more information, contact: Visiting address: Waalhaven Zz. 11, NL-3089 JH ROTTERDAM Postal address: PO Box 59083, NL-3008 PB ROTTERDAM Tel: +31-(0)88-1007 630 / 632 (24/7) Fax: +31-(0)88-1007 920 E-mail: bunkering@argosenergies.com Website: www.argosenergies.com
World Bunkering Autumn 2012
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Company News
Pavino Shipping Company Physical Bunker Supplier
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avino Shipping Company pioneered marine bunker supply in 1996 in the Russian Far East. The Far East (Singapore, South Korea, Japan and Malaysia) itself represents the largest, fastestgrowing bunker market in the world, with the Russian waters being a strong attraction for the region’s bunker industry consumers. Taking advantage of its position on the sea lanes linking the major trade routes through the Pacific and supported by its extensive Russian refining sector, the Russian area has developed into the large, competitive and convenient bunker market. Pavino was originally a private independent company with just one barge, named Pavino, and monthly sales of 2,000 mt in 1996. This led to a 15-year career as a highly flexible, competitive and reliable bunker supplier, with current average monthly sales 45,00050,000 mt in ports Vladivostok, Nakhodka, Vostochny, Kozmino, Posyet, Zarubino, Slavyanka. The efficient bunkering of merchant ships requires skill, perception and the ability to consider a whole range of factors simultaneously before making the optimum decision. This requires the purchase of the highest quality products commensurate with economic cost. Pavino’s strengths enable it to remain a reliable player in the market, flexible enough to deal with the constant changes and altering conditions. An understanding of the bunker industry is necessary for the shipowner because, with bunkers as their largest single operating cost, there is a need for careful management and planning. Pavino is a vital link in the customer’s operational system, helping it to move in the right direction. Customers will always enjoy: • A wealth of knowledge and experience • Excellent response • Low prices and therefore considerable savings in cost • Best timing advice for fuel nominations • Minimum exposure to delivery related risks • Fixed, regular sailings between pre-determined ports • Accurate planning of the bunker programme • Timely delivery • Immediate processing of all relevant documentation • Day-to-day assistance with a long term vision • Short notice
(830/280 mt IFO/MGO, pumping rate 300 m3/h) and m/t Paris (630/580 mt IFO/MGO, pumping rate 250 m3/h). The company has also purchased a new 5800 mt capacity barge, which will be arriving at Vladivostok in September and will be a good fit in the growing bunker market. From the beginnings of its business, Pavino has moved hand in hand with Sea Trader International, the exclusive sales and supply agent for Pavino. Sea Trader is a privately owned company, registered in Hong Kong in December 2000 with a representative office in Japan and a sales agent in South Korea. The company has extensive experience in bunker supply in Hong Kong, China, Taiwan, Singapore, Korea, Japan, Malaysia, Philippines, Australia, Thailand, Indonesia and Vietnam, through its long-term contracts. It has a strong client base in the Asian region and has also created a formidable client list in Europe. Operating from offices in strategic locations worldwide, the company’s comprehensive services are available 24 hours a day, 365 days a year.
Ports of supply Asian region: Hong Kong, China, Taiwan, Japan, Korea, Singapore, Malaysia, Indonesia, Vietnam, Australia, Philippines, Thailand, India Europe: Spain, Ceuta, Las Palmas, Gibraltar, Rotterdam America: US, Pacific North West, East Coast, South America and Panama canal
Major customers Cosco, GEFO mbH, Hamburg, Rio Tinto Shipping (Asia) Pte Ltd, Sumitomo, CMA CGM, The Shipping Corporation of India Ltd, Wah Kwong Ship Management (HK) Ltd, Toyota Tsusho Petroleum Ltd, Sinotrans, Evergreen Marine Corp., Yang Ming Marine Transport Corp. Both Pavino and Sea Trader concentrate on their trading activities to ensure the utmost care of their customers around the world. Their extensive experience in bunker supply means customers are safe in the knowledge that any difficulties will be dealt with swiftly and responsibly.
Pavino is widely respected in the industry – a reputation that is carefully guarded. Its priority is always on excellent performance. We are renowned for: • Prompt service • Reliability • Quality of fuel • Ability to compete on price Pavino’s products meet the most recent international standard and pre-testing covers all those quality factors of a fuel that can affect a vessel’s engine systems and performance. The company’s fleet consists of three barges: m/t Portun (1150/290 mt IFO/MGO, pumping rate 700 m3/h), m/t Patrokl
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A newly acquired tanker Pavino, expected in operation in September
World Bunkering Autumn 2012
Company News
Rosneft Marine Strengthening its presence in the Baltic and Black Sea, as well as in China
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osneft Marine has continued to expand rapidly since it was established in London in 2010. A subsidiary of Rosneft Oil Company, Rosneft Marine has now set up a new office in Beijing while expanding the number of ports that it services in Russia. The company officially opened its second office this May in Beijing, China to service its growing Asian client base. Staffed with a multilingual team, the new office aims to support its regional customers with ease of communication and greater access to premium-quality marine fuel in the Far East. In addition to expanding Rosneft’s presence in Asia, this move allows the company to provide specialised services to regional clients without any compromise on its existing offering to the global and European markets. The formation of this second office in Asia also comes at a time when environmental concerns are changing the landscape of international shipping.
Increasing demand Demand for low-sulphur fuel oils is expected to increase following the introduction of Emission Control Areas in North America, particularly for vessels travelling from Asia to the West Coast of the US. The company intends to work closely with regional ship operators who have US-bound vessels to supply them with ECAcompliant low sulphur fuels of the highest quality at attractive prices. An integral part of its strategy for the China office will be to establish long-term partnerships with customers. The company hopes to collaborate with customers particularly on the basis of long-term formula contracts, as it is one of the few suppliers able to guarantee a reliable and consistent supply of high-quality fuel in the region. As part of a plan to strengthen its presence in the Baltic and the Black Sea, Rosneft Marine extended its bunker supply network to include the western ports of Ust-Luga, Kaliningrad and Novorossiysk in April this year. The servicing of additional ports brings greater ease of access to Rosneft’s high-quality marine fuel in a wider range of bunkering locations to customers.
World Bunkering Autumn 2012
Rosneft Marine’s sister company RN Bunker is the logistics and domestic marketing arm of Rosneft’s bunkering business. It has just taken delivery of a new bunker tanker in the port of St. Petersburg under the terms of a 10-year time-charter agreement. The RN Polaris is a 6,800 metric tonne-capacity tanker that is also registered as an ice-class vessel. It will be operating in St Petersburg, Ust-Luga and other parts of the Russian end of the Gulf of Finland.
Raising standards In order to further the company’s commitment to unparalleled assurance of quantity and quality, Rosneft Marine, together with its RN Bunker, is currently in the process of establishing Rosneft’s first full-quality management standard for its bunker supply chain in the port of Nakhodka (NQMBS). Standardising Rosneft’s bunker supply process ensures a reliable, consistent supply of premium marine fuel that is second to none in the market. Rosneft Marine aims to have a similar implementation of standards across its entire bunker supply network in the future and will continue to seek expansion in other parts of the world with the aim of providing global clients with superior, localised service while still delivering premium quality fuel in Russian ports.
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Company News
Tranzit-DV Group Extensive experience backs up a move into ship agency Agency services
Shipchandler service
Sea freight is impossible without agency services. With our extensive experience of supporting ship calls, Tranzit-DV Group is ideally placed to move into a new business area by providing a ship agency service. Currently, Vostokbunker JSC provides a full range of port services for incoming vessels, including berthing/ unberthing, pilotage and towing, mooring, cargo operations, on-shore Igor Polchenko, crew service, and shipowner represenpresident, Tranzit-DV tation in case of vessels charters. As an agent, Vostokbunker JSC acts as the shipowner’s representative, protecting their interests. Signing up to our agency and shipchandler service allows shipowners to save time and money when undergoing ship calls and formalities with port authorities and other governmental regulatory agencies. For example, we provide our own tugboat to save the shipowner time waiting for port fleet. Our company provides all cargo and bunker supply operations with our own tankers and towing fleet within the Russian Far East. We can also offer the unique opportunity to provide cargo operations and bunker supplies on a special anchor point within Slavyanka port. This allows shipowners to load maximum cargo and bunkers without even berthing. The company provides a full service for bunker supply and loading vessels, beginning with vessel agency service and complementary supplies, right up to loading cargo and bunkering. If a shipowner is seeking co-operation without intermediaries, our company is the best option.
The sea vessels agency department of Vostokbunker JSC offers a wide range of shipchandler services • Food supply, • Technical supply • Fuel oil supply • Water supply • Logbooks • Navigation charts • Manuals supply
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For reasonable pricing, fast delivery and quality service, look no further than Vostokbunker JSC.
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
World Bunkering Autumn 2012
Company News
Baltic Bunkering Company
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he Baltic Bunkering Company was founded in August 1995. During these 16 years of trading the company has succeeded in creating a reliable and high-quality bunkering service and is now one of the leading players in the St Petersburg bunker market. Backed by a strategic alliance with Petersburg oil terminal (POT) (www.oilterminal.ru), the biggest oil storage facility in north-west Russia, as well as with the oil trading company PNT-GSM, Baltic Bunkering Company always has a good availability of the full range of high-quality fuel products. We supply high-quality bunker fuels, including low sulphur products. All fuels are transshipped through POT and are closely monitored and controlled in the POT laboratory to ensure that they meet ISO8217:2010 (E). The process of quality control starts before we purchase the fuel. We only buy fuels from refineries that have consistently provided a quality product over a long period. We have also introduced additional quality controls at the barge loading operations. Our bunker barge Alana (3,500 mt) is equipped with an express laboratory that tests every lot of bunkers before it is supplied to our clients. Quality is the cornerstone of our business and is guaranteed by the daily work of our skilled specialists. Baltic Bunkering Company is approved for ISO9001 Quality System Certificate by Det Norske Veritas and is a member of International Bunker Industry Association (IBIA). We also pay special attention to the ecological aspects of our bunkering activities. In our practice, we strictly follow and observe the existing standards and rules prescribed for petroleum transshipping operations and the prevention of leakage of oil products. Among our competitive advantages are: • Full range of fuel oil products available, from IFO-30 to IFO-600; • LSFO is always available; • All products conform with ISO8217:2010 (E) plus the later amendments; • Our own bunker fleet; • Prompt delivery of all bunker services; • Fuel deliveries conform with Regulations 14 (1) or (4) and 18 (1) of MARPOL 73/78, Annex VI, and Annex 1 and Annex 2 of SOLAS Regulation VI/5-1 (MSDS).
For more information, please contact us at: 48, Stachek Prospect, 198097 St Petersburg Russia Tel: +7 812 320 82 00 Fax: +7 812 325 45 33 E-mail: bbc@bunkering.spb.ru Website: www.bunkering.spb.ru Sales department: Tanya Sorokina, mobile: +7 921 905 70 63 E-mail: tanya@bunkering.spb.ru Dmitry Elster, mobile: +7 921 965 87 83 E-mail: ed@bunkering.spb.ru
World Bunkering Autumn 2012
LUKOIL BENELUX B.V. as one of the key players in ARA ports
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UKOIL Benelux B.V. is a prominent reliable physical supplier of bunker fuels in the ARA region (Amsterdam-RotterdamAntwerp). We are supported by the logistic and financial strengths of our parent company LITASCO SA in Geneva, Switzerland. LUKOIL Benelux B.V. is part of the Russian oil major LUKOIL, which has wide-scale operations outside of Russia. Our clientele varies from the well-known large/medium shipping lines to other physical suppliers and trading companies. Our company has a market share of 10-15% in our home markets Rotterdam and Amsterdam. Starting from 1Q 2012 LUKOIL Benelux B.V. is also supplying bunker fuels in Antwerp from within the port area and from the other locations in ARA. We are also active in the Baltic, Black and Mediterranean Seas. Since 2005 LUKOIL Benelux B.V. and our Dutch partner Burando Holding have been jointly operating Service Terminal Rotterdam, which enables LITASCO SA and LUKOIL Benelux B.V. to store fuel oils and blend them to necessary specifications. Construction of the second much bigger phase of the terminal was completed in March 2012. Having our own terminal and purchasing almost all of our bunker fuels from our parent company LITASCO SA gives us a competitive advantage in ARA’s saturated market and enables LUKOIL Benelux B.V. to design and implement flexible delivery strategies. We supply a wide range of products and grades-IFO 700, 500, 380, 180, 120 cst, bunker gasoil-and can also make other products available upon your request. We ensure quick timely deliveries of our products to sea-going vessels with a fleet of 5 time-chartered barges with deadweight ranging from about 1,700 MT to 6,310 MT. Provided by our partner’s barge operating company FTS Hofftrans, they are all new double-hulled barges with greater bunkering capabilities. We can also hire other barges for spot deliveries in the range from about 1,700 MT up to 9,200 MT with both FTS Hofftrans and alternative reliable transport companies in ARA. Our team of bunker traders and operators has all it takes to be your reliable partner: experience, expertise and thorough knowledge of the bunker markets. They are friendly and available for your enquiries 24 hours per any day. LUKOIL Benelux B.V. will gladly look into your enquiries in ARA and any other regions in the world. We look forward to your bunker enquiries and hope to do business with you soon.
Wilhelminakade 85, Building “De Maastoren”, 36th Floor, 3072 AP Rotterdam, The Netherlands Post address: PO Box 24065, 3007 DB Rotterdam, The Netherlands Tel: +31 10 264 27 00 E-mail: bunkers@lukoil.nl
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Company News
Neftehim Bunker Jsc
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eftehim Bunker Jsc is an affiliate of the well-known and reputable oil product trader and bunker supplier, Neftehim Ltd, which has been operating since 2000. We maintain a reputation for reliably supplying the highest standards of services and excellent quality of products. Because of our outstanding business relations with the major Russian oil companies, as well as the independent oil producers, we are able to be very flexible in the market, and always offer the best prices to our clients. Thanks to these extensive and stable relations, we always have the full range of residual products available. Furthermore, our marine gas oil is fully compliant with the latest international industry standards. Our company has access to the fleets of five different barging companies, giving us flexibility and efficiency in our bunker delivery operations. With growth in mind, we now have our own bunkerbarge, Severaynka, which was reconstructed on the Vyborg shipyard in accordance with the MARPOL regulation. Its cargo tanks have a total capacity for 1,000 mt of HFO and 260 mt of MGO. Quality control is a matter of great importance to us, so before a bunker delivery to the vessel we regularly engage a surveyor to test our fuel. In choosing Neftehim Bunker Jsc for your bunker supplies, you will always find outstanding levels of service, quality and efficiency.
Neftehim Bunker Jsc. Office 602 Bolshoy Avenue V.O. 80 St Petersburg 199106 Russia Tel: +7(812) 332 2363/+7 (812) 942-3140 Tel/Fax: +7(812) 332 2364 E-mail: main@nh-bunkering.ru Website: www.nh-bunkering.ru
Oliehandel Klaas de Boer An experienced company offering a reliable service with the best-quality products
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stablished in 1914 as a service provider for the Dutch fishery fleet, Klaas de Boer has grown into a well-known and wellrespected independent oil supplier in the ARA region. It may have nearly 100 years’ of experience in independent bunkering and lubricants, but it still hasn’t lost its focus on the fishing fleet. Klaas de Boer holds a strong position in the shipping world, where service and reliability are truly valued. We have a wide range of products to work alongside trawlers, dredgers, off-shore supply vessels, cruise ships, chemical tankers and bulkers. With our 14-owned barges and mature supply network, Klaas de Boer supplies lubricants, marine gasoil, and high- and low-sulphur fuel oil between 30 and 380 cSt. We have good access to all major lubricant companies and store a wide range of products. With our extensive lubricant warehouses, we are well-equipped to support deliveries with a short notice. For our bunker products, we have direct access to quality refiners and ensure these products are delivered with the refiner’s quality certificates – everything required to secure the absolute best quality for your vessels. Klaas de Boer has an excellent presence in the Netherlands. Our offices and depots are located in Amsterdam, Ijmuiden, Urk, Den Helder, Harlingen, Lauwersoog, Eemshaven and Delfzijl. Due to short logistical lines, same day deliveries are usually possible – just call and we will try our best It goes without saying that with a company with this experience in the business, we live and breathe shipping. We truly understand the specific needs of both shipowners and operators, creating value for your operation in our ports and worldwide – every day. Our team is available to support your business 24 hours a day, seven days a week. We look forward to serving your needs.
Oliehandel Klaas de Boer B.V. Trawlerkade 58 1976 CB IJmuiden Tel: +31 255 513 240 For worldwide bunker enquiries: bunkers@klaasdeboer.nl For worldwide lubricant enquiries: visserij@klaasdeboer.nl
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Company News
Portugal fuel stop
Unicom Holding S.A.
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ased at Lisbon, Galp Energia Group, is able to offer fuel supply services to all ships visiting this warm and pleasant country. Galp Energia has professional bunkers team provide its customers with high-quality fuels and services, and the highest safety standards in all its bunker activity and the company’s bunkering products fulfil the ISO 8217: 2010 specification in all grades. To help achieve customers’ targets on the environment, the company can supply low-sulphur fuels at several ports, with the port of Lisbon being the main port for low-sulphur fuel. 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. Galp Energia is the main bunker supplier in Portugal, and provides bunker services using its two barges with capacities of 5,800 tonnes and 3,000 tonnes each. A 5,800 dwt double-hull barge, Bahia Tres, began operations in 2010 to support the company’s business in the ports of Sines and 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 €1.4 billion to upgrade and improve the efficiency of our refineries, representing €1 billion for Sines and €0.4 billion for Matosinhos.
nicom Holding entered the Romanian bunkering market in 1999, with the establishment of a dedicated bunkering department. Since then we have developed rapidly, gaining the knowledge and experience necessary to become the undisputed leading bunker supplier in Romania. Originally known as Unicom Bunkering, we traded under this name from 2005 to the end of 2010 when, following a merger, we were re-launched as the bunkering department of Unicom Holding. Despite this change in name, our goal has remained the same - to provide our customers with the best possible bunkering services and to develop strong and mutually profitable partnerships. We bunker at the Romanian Black Sea ports of Constanta, Agigea, Midia and Mangalia, and also at the Romanian Danube river ports of Galati, Tulcea, Braila and Drobeta Turnu Severin. At the maritime ports we deliver a full range of high-sulphur fuel oil products, from IFO-30 to IFO-380, as well as low and high-sulphur distillates. The fuel oil is delivered to ships by barge, while the gas oil can be supplied either by barge or by truck. Barge deliveries are made by our M/T “Unicom 3”. We also own the oil barge “Deltaoil”, but this is mainly used as a storage unit for fuel oil, giving us increased flexibility for dealing with large orders or short timescales. At the Danube River ports we supply only low sulphur gasoil, ULSD 10 ppm inclusive, ex-pipe, using our barge “Unicom 1”, or by truck. Presently we deliver high quality oil products that are compliant with the ISO 8217:2005 specifications, but we are soon to apply the ISO 8217:2010 standards. All our bunker deliveries are professionally managed by our experienced staff, in full accordance with the relevant legal requirements. Apart from supplying bunkers and providing our help and expertise, we have also started to offer transport services by carrying oil products for our clients on the Danube River. Currently we do this via our M/T “Astrid”, but are planning to extend our fleet in the near future. Our staff are available 24-hours a day and are ready to put their experience, expertise and knowledge at your service.
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For further information contact: Galp Energia SA Tel: +3512 1724 0637/654 Fax: +3512 1724 2957 E-mail: bunkers@galpenergia.com www.galpenergia.com
World Bunkering Autumn 2012
Tel: +40 21 233 27 70 Fax: +40 21 233 27 69 General E-mail: office.bunkering@unicom-group.ro Website: http://www.unicom-group.ro/holding Mr. Bogdan BURGUI – Bunker Sales Manager (maritime sales) Mob: +40.741.383.412 E-mail: bogdan.burgui@unicom-group.ro Mr. Marc BOBEICO – Bunker Sales Manager (river sales) Mob: +40.741.362.023 E-mail: marc.bobeico@unicom-group.ro
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Company News
Unigroup Marine Fuels Corporation
Gazpromneft Marine Bunker: market leadership is our goal
Providing experience as well as an
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international network of contacts with major suppliers
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stablished at the beginning of 2010, Unigroup Marine Fuels (UMF) has earned great confidence from the shipping community in just a short period of time. With the benefits of experience and an international network of contacts with major suppliers, the team at UMF is able to secure the most competitive prices and attractive payment terms, while maintaining the highest level of service at many ports in the Baltic and Northern Seas. Whether you are looking for 15mtns of MGO in Vyborg or 1500 mtns of IFO in St Petersburg, UMF will always have the latest, most complete information and can guide you on timings and availability. Quality issues are always a concern for any owner or operator and with this in mind, UMF is always at the forefront in ensuring the strict quality control of marine fuels, as well as promoting and ensuring safe bunkering practice. Our comprehensive knowledge of regional market conditions helps us meet your bunkering requirements. We are actively working to attract new partners worldwide, giving each partner our full attention and assistance on a 24/7 basis. Our competence is always assured!
For more information, contact: St. Petersburg Tel: + 7 812 3341705 Riga Tel: + 371 26412412 E-mail: trader@umf-bunker.com www.umf-bunker.com
azpromneft Marine Bunker, a subsidiary of JSC Gazprom Neft, was founded in October 2007 for the year-round supply of petroleum products – fuel oil, marine fuel and lubricants – for sea and river transport. The company has five offices and two subsidiary companies: Gazpromneft Terminal Spb provides the timely transfer of fuel and marine fuel all year round. Gazpromneft Shipping manages a fleet of seven bunkering vessels Gazpromneft East, Gazpromneft West, Gazpromneft Nord, Gazpromneft Zuid, Kristall, Gazpromneft Zuid-West, and Gazpromneft Nord-West, which operate in the ports of St. Petersburg, Novorossisk, Kaliningrad, Murmansk and Ust-Luga. In 2011, Gazpromneft Marine Bunker bought two new tankers Gazpromneft Zuid-West (constructed in 2004) for operations in the Black Sea port of Novorossisk, and Gazpromneft Nord-West (constructed in 2011), which operates in UstLuga. Both tankers meet all the international regulations. Gazpromneft Marine Bunker is represented in the main sea ports of service in Russia, and is constantly expanding its geography. In August, Gazpromneft Marine Bunker carried out the first bunkering on Sakhalin island, at Port Korsakov. • The main sea ports we operate in are: St. Petersburg, Kaliningrad, Murmansk, Archangelsk, Primorsk, Ust-Luga, Novorossisk, Tuapse, Port Kavkaz, Taman, Nakhodka, Vladivostok, Vostochnyi, Kozmino and Sakhalin island. • The main river ports we operate in are: Moscow, Yaroslavl, Kazan, Samara, Volgograd, Rostov-on-Don, Astrakhan, Azov, Ust-Kut, and Nizhniy Novgorod. • The international ports we operate in are: Tallinn, Riga, Klaipeda, Rostok and Constanta. The main strategic goal of Gazpromneft Marine Bunker is to enter the international bunkering markets of Europe and Asia. The first step in this direction was made at the end of 2010, when the first international bunker service was provided in the port of Istanbul. About 85% of the company’s services are provided to foreign shipowners. Gazpromneft Marine Bunker has contracts with major international shipping companies and traders operating in the ports of Russia. Among Russian clients are major sea and river shipping companies, as well as fishing companies. Gazpromneft Marine Bunker provides its clients with a wide range of high quality marine fuels, mainly produced at Gazpromneft’s subsidiary, the Omsk Oil Refinery. From April 2010 a low-sulphur (less than 1%) TAS-380 marine fuel has been produced, which has made Gazpromneft Marine Bunker a major bunkering company in the lowsulphur fuel oil market.
Since its foundation, the company has tripled its operations, delivering 900,000 tonnes of fuel in 2008 and more then 2 million tonnes in 2011. Today, Gazpromneft Marine Bunker is one of the leaders in the Russian bunker market, with an 18.5% share. Vasiliyevsky Island, 3rd line, 62A, St. Petersburg, Russia, 199178 Tel: +7 (812) 449 49 70 Fax: +7 (812) 449 49 71 E-mail: bunkers@spb.gazprom-neft.ru
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World Bunkering WINTER 2012 issue Special Features: Blending As sulphur content restrictions become more onerous, accurate blending is becoming increasingly important. We look at developments.
Fuel Additives With bunker costs so high the use additives may become more widespread. We test the opinion of manufacturers and users.
Barge Design Modern bunker “barges” are sophisticated small (and sometimes not so small) tankers. The days of single skin, single screw barges will soon be gone. What will the next generation be like?
Geographical Focus: Americas Africa
Reviews SIBCON – Singapore, IBIA Annual Convention
Russian Update News, Views and Analysis.
Regular Features Interview, Industry News, Environment, Testing, Risk Management, Legal News, Equipment and Services, Diary.
DiARY
Looking ahead 4-7 September SMM
4-8 November IBIA Annual Convention 2012
Hamburg Germany http://smm-hamburg.de/en/
Dubai UAE www.ibia.net
12-14 September Gas Fuelled Ships Conference 2012
26-27 March 2013 FUJCON 2013 Pre-Registration
Bergen Norway www.ibc-asia.com
Fujairah UAE www.cconnection.org/conference/ FUJCON/2013/Fujcon2013Home.html
17-19 October 17th Singapore International Bunkering Conference and Exhibition SIBCON 2012 Singapore www.ibc-asia.com
31 October - 1 November LNG Fuel Forum 2012 Stockholm Sweden www.informamaritimeevents.com/event/lngfuel-conference
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The International Bunker Industry Association Annual Convention 2012 Dubai 6-8 November
Register today www.ibia.net Sponsored by:
This year we will delve deeper into the issues which we as an industry face today. The programme will included hot topics and discussions such as.... Innovation v Availability - who will start first? The ship-owners or the bunker retailers? Is LNG a realistic viable alternative - Spotlight on strategies for 2030 - who should invest in what? Fuel quality trend - Are residuals a declining market? Innovation - Are Scrubbers even worth their weight in scrap? Does Low Sulphur Fuel really exist? Spotlight on the major Middle Eastern ports Plus! Excellent networking and social activities Register TODAY at www.ibia.net or email charlotte.egan@ibia.net
Your needs our Energy!
Argos Bunkering B.V. Argos Ceebunkers B.V. and North Sea Group Bunkering B.V. have joined forces and will together form Argos Bunkering B.V., the new key bunker player in the ARA-region! By combining the years of experience, specialties, know-how and service levels our team will be offering the shipping industry the best of both worlds on a 24/7 basis.
Argos Bunkering B.V. T +31 (0) 88 100 76 30 T +31 (0) 88 100 76 32 (24/7) bunkering@argosenergies.com www.argosenergies.com