AUTUMN 2015
AUTUMN 2015
CLIMATE CHANGE
WORLD BUNKERING
CONFERENCE Showdown in Paris?
THE ONLY OFFICIAL MAGAZINE OF
INSIDE THIS ISSUE: Scrubbers - doubts and developments New guidance on LNG OW Bunker - going to court
Physical bunker supplier in the Russian Far East Fuel oil compliant with ISO 8217:2010 Own shore fuel terminal & bunker fleet Client-oriented service and flexible schemes of cooperation SLAVYANKA
Vladivostok
ZARUBINO Nakhodka
ENERGY UNITES
www.tranzitdv.com
Vladivostok, Russia Tel: +742 3249 1199 E-mail: bunkers@tranzitdv.ru
Singapore Tel: +65 6337 3341 +65 8518 6670 E-mail: panchenko@tranzitdv.ru saenko@tranzitdv.ru
Seoul, Korea Tel: +82 2722 1123 +82 10 9690 6878 E-mail: lee@tranzitdv.ru
Editor’s letter
Uncertain times
T
he northern hemisphere’s summer is billed as a time when the frenetic pace of the industry eases back a little. That is not what it feels like as I write this. There is a lot still going on, including at IBIA itself, where there have been major changes, not least moving its office back to London. But the chairman and chief executive have much more to say on that topic in their pages. Fortuitously, the move does mean that IBIA’s base will be back in the UK’s capital when the city holds its big biennial maritime event, London International Shipping Week (LISW), in early September. IBIA will, of course, be closely involved in that, while there will be much else of interest to the bunkering community discussed at the many events being held. While LISW has a built-in ‘feel good’ aspect to it, confidence within the shipping industries has waned
World Bunkering Autumn 2015
significantly recently. Overall confidence levels in the shipping industry fell during the three months to May 2015 to a level equal to the lowest rating recorded in the past seven years, according to the latest Shipping Confidence Survey from international accountant and shipping adviser Moore Stephens. As Moore Stephens partner Richard Greiner notes: “The fact that shipping confidence has revisited the low point recorded twice before in the seven-year life of the survey underlines both the current volatility of the markets and the fragile nature of confidence itself in an industry where, little more than 12 months ago, it was at an all-time high. “Lower oil prices might be helping smaller operators to compete by virtue of reduced bunker costs, but in many respects they are bad news for the bigger players with whom they are competing,” he adds. That might sound a bit odd at first, until we see what is happening in the offshore sector. When the oil industry catches a cold, lots of people sneeze. The uncertainties of the oil markets, partly owing to the prospect of renewed Iranian exports, are looked at in our Middle East feature, while our Risk Management pages explain the practicalities of limiting your exposure to volatile markets. The repercussions of OW Bunker’s dramatic demise last October are still being felt throughout the industry, and various aspect of this are considered in our Independents and Legal pages.
Over the past few years, the industry has become more complex and diverse. When I took over as editor, a few years ago now, World Bunkering largely focused on quality and quantity issues. Both of those still feature prominently in this issue, but arguably are less important than the mass of environmental regulation that is driving many of the changes taking place in our industry. That is why liquefied natural gas (LNG) and scrubbers are now regular features, as technical innovation allows the industry to respond. Of course, there is plenty of technical content in our Innovation and Equipment & Services pages, but new developments come in thick and fast and are reported on throughout the magazine. Environmental regulation can only increase as time goes by and, as signalled by our front cover, the United Nations Climate Change Conference (UNFCCC) to be held in Paris at the end of the year could be crucial in deciding how shipping will have to respond to pressure to reduce carbon emissions. As ever, I hope to meet up with as many IBIA members as possible in the coming months – for example, during LISW and the IBIA Convention in Cancun – and would always welcome letters for publication and ideas for topics to be covered. I look forward to hearing from you. David Hughes Editor
1
Singapore Premium Bunkering Hub
Searights Maritime Services Pte Ltd Certificate of Accreditation: MPA/AS 04 001 80 Marine Parade Road #16-05/06/07/08 Parkway Parade Singapore 449269
Tel: +65 6344 1108 Fax: +65 6344 1128 email: bunkers@searights.com.sg www.searights.com.sg
AUTUMN 2015
AUTUMN 2015
AUTUMN 2015
Publisher: W H Robinson Editor: David Hughes editor@mar-media.com
CLIMATE CHANGE
Deputy Editor: Sandra Speares
WORLD BUNKERING
CONFERENCE
sandra.speares@mar-media.com
Showdown in Paris?
Project Director: David Scott david.scott@mar-media.com
Project Consultant: Alex Corboude THE ONLY OFFICIAL MAGAZINE OF
INSIDE THIS ISSUE:
alex.corboude@mar-media.com
Designer: Justin Ives
Scrubbers - doubts and developments New guidance on LNG OW Bunker - going to court
Published by: Maritime Media Ltd Suite 19, Hurlingham Studios, Ranelagh Gardens, London SW6 3PA, UK Tel: +44 (0) 20 7386 6100 Fax: +44 (0) 20 7381 8890 E-mail: inbox@mar-media.com Website: www.worldbunkering.com
justindesign@live.co.uk
ANDROID APP ON
THE ONLY OFFICIAL MAGAZINE OF
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.
On behalf of: IBIA Ltd 4th Floor 50 Liverpool Street London EC2M 4PR UK Tel: +44 (0) 20 3397 3850 Fax: +44 (0) 20 3397 3865 E-mail: ibia@ibia.net Website: www.ibia.net
ISSN 1367-5018
Š The International Bunker Industry Association Ltd This publication is printed on PEFC certified paper. PEFC Council is an independent, non-profit, non-governmental organisation which promotes sustainable forest management through independent third party forest certification.
Visit online, with Page-Turning technology at
ww w.wor l d b u n ke r in g .com
Offices in Rostov-on-Don, Taganrog, Yeisk and the Port of Kavkaz Fleet of 13 own bunkering barges complying with loading and supplying regulations Own storage facilities giving flexible bunker delivery options Own terminal at the Port of Temryuk, providing safe fuel loading on tankers of up to 5,000 DWT Fuel deliveries compliant with MARPOL and SOLAS regulations
Our team is pleased to offer you our experience and knowledge, best prices and excellent service on a 24/7 basis.
For more information, contact: Rostov-on-Don Tel: +7 (863) 242-44-86 +7 (863) 242-44-87 +7 (863) 242-44-88 E-mail: rostov@ybunker.com Yeisk Tel: +7 (86132) 2-60-64 E-mail:yeisk@ybunker.com Port Kavkaz Tel: +7 (86148) 4-43-47 E-mail: kavkaz@ybunker.com
www.ybunker.com
AUTUMN 2015
5
13
IBIA REPORTS Editor’s letter 1 Chairman’s introduction 7 Chief Executive’s report 9 Africa report 11 Asia report 13 New members 15 Nomination 17 Noticeboard 18 Events report 19 34
23
27
SPECIAL FEATURES Industry news 23 Environment 27 Risk Management 30 Independents 32 Lubricants 34 Scrubbers 36 LNG 38 Testing 40 Middle East Far East Russian update
GEOGRAPHICAL FOCUS 43 45
36
40 41
49
Innovation 52 Legal news 55 Equipment and services 57 Preview: LISW 59 Diary 68
43
16068_WB Oryx Half Page_Layout 1 21/04/2015 09:04 Page 1
i se Expert nt
ke key
bunk r ta tankeers rs
icie lo ca c a ti f fic modern eff tions str a equip ipped fflleet of fu c lo c atteg iic bunke fulllly iio ons r tanke rs
com
wiitth plying ern M od t late in internthe la g ional st as adin stand atio f a rd s lo ed ion
L S A S A IN A L ALMRMist P TEecial Sp e at t s t e ar th
lel rn t W eaputa re
of
off & high ffsshore e se serv rvic i es as
fuels
mar
For all ll mar fuels in i e ls llubriicc and bunker t a a n needs ts nkers effiic Specia ciieent ialis list
fast
fuelisne
ORYX BUfast loading nKERING
m
e lu va hain c
3
m Mo
rm 0 AS te 00 y L A S 0, acit LMcants 22cap PAlubri
Y FULL D IPPE E Q U IP
al in
rn deleet f
y er Ke lay p
g te ra t t S as f
in ar
s
e
REPUTATION By providing marine fuels, lubricants and other specialised offshore services, Oryx Bunkering services has built up a wellearned reputation as a key provider in the African market. Strategically placed locations throughout the continent (including Las Palmas) serve the needs of commercial vessels, fishing fleets and offshore platforms and their associated industries, making Oryx Bunkering an experienced operative you can trust, time and time again.
ic
West & East Africa Atlantic/Indian Ocean Canary Islands Greece
Tel: +41 (0)58 702 90 40 Fax: +41 (0)58 702 91 40 Email: bunkering@oryxenergies.com Website: www.oryxenergies.com
Addax Energy SA Oryx Bunkering Services 12, rue Michel-Servet, P.O. Box 404, 1211 Geneva 12, Switzerland
A
s I write, we are now into the summer of 2015 and time is flying past – and things are changing quickly in the bunker industry too. One place where change is definitely taking place rapidly is Singapore, where our good friends in the Maritime and Port Authority (MPA) say 20 barges have now had mass flow meters (MFM) fitted. They expect one or two additional barges to be MFM-fitted every month. On a recent visit to Singapore, I took the opportunity to look in on IBIA’s mass flow meter course. IBIA is the first training provider to be accredited to train people in Singapore. The association has a monthly course running in order to meet demand. It is a pleasure to see the MPA’s hard work to improve bunker operation and the supply chain. I am sorry to say, though, it would be nice if more port authorities got engaged with these issues and followed the MPA’s example of regulating delivery terms within their port. Right now, very few port authorities take sufficient interest in bunkering operations – or, at least, very few acknowledge that there is a need for action. Only if port authorities globally act to regulate bunkering operations effectively will there be a reduction in the high level of disputes that we face in today’s bunker market. On the business front, we have seen Danish company Bunker Holding taking over the world’s biggest real bunker broker LQM Petroleum Services. That was a surprise for the market. But Bunker Holding always gives us nice surprises. I would like to thank Gerry Van Geyzel, chairman and chief executive at LQM Petroleum Services, for all his hard work in the
World Bunkering Autumn 2015
bunker industry. I know he will not move away from LQM right away, and I really hope that he will not leave the bunker industry, as we need such pioneers. IBIA is like an iceberg – there is much going on under the surface while most members only see the tip. So I thought I would take this opportunity to uncover a lot that is happening below the surface. I will turn first to the International Maritime Organization (IMO) and its Marine Environment Protection Committee (MEPC). What can we say? Do they really want to listen to the bunker market and show they are interested, or are they controlled by their ‘political advisers’? It will be interesting to see what the MEPC says on the future availability related to the upcoming 2020 or 2025 emission control area (ECA) regulation. At the moment, the only losers are the owners, who have to pay the bill. IBIA has been involved with the work group, looking at the terms of reference for selecting the contract to assess the industry’s ability to meet the 2020 sulphur cap. IMO also has to look at the other side of the industry. We need some more regulation on fuel quality, and we are engaged with IMO in the fuel oil quality correspondence group that was re-established at MEPC 68 and is looking at quality across a range of aspects. A key aspect of this work is to develop draft guidance on best practice for assuring the quality of fuel oil delivered for use onboard ships. We need to examine the adequacy of the current legal framework in the MARPOL Annex VI marine pollution requirements for assuring such quality. The correspondence group will also develop the work that IBIA is currently undertaking with regard to information
contained on the bunker delivery note (BDN). Another crucial task is to align BS4259 testing standards with MARPOL procedures. As chairman, I am very engaged in the quality issue. I am still waiting to see the statistics for the first half of the year, but I can guarantee that, in my next chairman’s introduction, I will have plenty to say on this subject. IBIA is also working at IMO on a review of the flashpoint requirements for fuel oil, and this has been discussed by the Ship Systems and Equipment sub-committee. This covers the US proposal to lower the flashpoint of diesel from 60 to 52. Following a long discussion, this aspect has been referred to the International Code of Safety for Ships using Gases or Other Low Flashpoint Fuels (IGF Code). The association continues to make progress with standards development in ports, and it has received an invitation from the Mauritian government and development agency to deliver training and thought leadership in supporting bunker development in the region. IBIA also continues working with global shipping associations, such as the International Chamber of Shipping and the International Association of Independent Tanker Owners (Intertanko), across a range of matters, such as bunker hose standards, BDN fuel quality, fuel switching etc. I think I have to stop now. I hope you have all enjoyed a nice summer. Please do not forget the IBIA forums during London International Shipping Week, or, of course, the IBIA Annual Convention at Cancun – see you there.
Chairman’s welcome
Follow MPA example
Keep smiling! Jens Maul Jørgensen, chairman, IBIA
7
Your marine fuel partner Certas Energy can offer a complete marine fuel and lubricants package. Distillate, IFO and MGO grade fuels and lubricants No minimum or maximum order requirement Bespoke ordering in litres, cubes or MT Payment accepted in USD, GBP or Euros Over 150 depot locations nationwide Ex-pipe facility in Aberdeen and the Port of Tyne Coverage across the UK and Ireland
Talk to the experts on 0345 601 1880
marine@certasenergy.co.uk
marine.certasenergy.co.uk M1951 - World Bunkering Autumn 2015 Advert_p1.indd 1
30/06/2015 09:01:28
A
t times, there are decisions that you know will shape the form of the association way into the future. Such was the April board meeting, which agreed to pursue the following strategies. • Relocate the main office to London • Contract out the management of the annual convention • Start to form the elements for the next business plan. I am delighted the board approved these measures, as I truly believe they will deliver greater value to you, the membership. Relocating to London
I have long since wondered why an international marine association was nestled in Southampton. Yes, it has a port and shipping companies, but “why not London” is a reasonable question to ask. It has 19,000 people directly employed in the marine industry, generating £9.9 billion for the economy, with 500,000 indirectly employed, or so an Oxford Economics survey tells us. London has by far the largest concentration in the world of marine, shipping and related businesses, and it is also the International Maritime Organization’s headquarters. When you stand back, it was an easy decision. So we are currently in the process of moving. We plan to be fully operational by September, in an office in Liverpool Street, co-located with the Society for Gas as a Marine Fuel (SGMF). With a convenient location in the central business district, close to shipping offices, shipping associations, marine insurance etc, we hope to be able to see a lot more of our members. An added benefit to you is that we can offer a location in central London from which you can hold a meeting, make a phone call, clarify a technical
issue or have a chat. A central London office will also save us time and money when meeting shipping associations, as well as offering a host of other benefits. There will be more news about our progress on our website and in direct communications. Events management
The board also agreed to subcontract the management of the convention, and IBIA has signed a three-year partnership with UK event organiser and publisher Petrospot to run its annual conventions. The first convention takes place in Cancun, Mexico, from 2-6 November 2015, and will look at opportunities centred on the American bunkering market. IBIA has worldwide recognition and commands the industry’s goodwill, but is still, I believe, something of a ‘sleeping giant’. We faced a stark choice: either invest in marketing personnel to unleash the vast potential that exists in the global shipping and bunkering markets or contract in that ability. I believe the partnership will allow IBIA to focus on its core business of providing services, training and support to members, and to continue to provide leadership to the industry. At the same time, it will enable IBIA to continue to direct the conventions’ content. The partnership will allow us to reach a greater audience than ever before. I would like to encourage as many as possible to come along to the convention, as it promises to be a memorable occasion.
2. We are carrying out a short survey of a sample of both members and non-members. The two stages above will, we hope, enable a full membership opinion survey to be taken. If you recall, we did this almost three years ago, to help form a direction and shape for the association. If you would like to give your view, please go to the following link. http:// ibia.net/ibia-brief-membership-survey/ Elections to the board
You will see within the magazine a notice about board member elections, to take place in January. A key way to shape the direction of the association is to stand for election as a board member. I hope this will plant a seed of consideration in your mind. Meanwhile, as Tahra, Steve and Jason advise in their articles, the next few months are packed with opportunities for you to take part in an IBIA event or forum.
Chief executive’s report
The shape of things to come
The next business plan
A key part in shaping the future is hearing what our members and potential members see as key priorities. We have now embarked on a systematic process to sample the views of all those involved in the industry. 1. Board members identify their key issues.
Captain Peter Hall, chief executive, International Bunker Industry Association World Bunkering Autumn 2015
9
Professional Marine Fuel Supply in African Waters Operating in over
50
Ports along the African coastline,
SABT provides safe and innovative marine fuel supply solutions to a range of global clients.
With our local knowledge and strong relationships, we are your strategic partner ensuring that your vessels are competitively and reliably re-fuelled with world-class products in African waters. SABT offers a full range of professional marine fuel supply services around the African continent from the oil rich Gold Coast to the industrial ports of South Africa, and beyond. Contact us to find out how we can bridge the gap between your vessels and the legitimate oil industry.
Tel: 00 27 21 551 9588 Email: bunkers@sabunker.com Follow us on Twitter: @SABTMarineFuel www.sabunker.com
As Regional Manager Tahra Sergeant reports, the past three months have been a busy time for IBIA's Africa branch
A
s we enter into the third quarter of the year, IBIA Africa has successfully supported training in South Africa and the development of a regional Forum in Mauritius to be hosted in October of this year. We recently held a successful training forum in Cape Town, South Africa at Webber Wentzel’s offices attended by well over 20 candidates. IBIA Africa hosted the Basic Bunkering Course over one and a half days, with classroom based training at Webber Wentzel’s offices and on site Port visit and on site session with the local Port Authority. This is the first time in 3 years that we have run the course and our attendees ranged from First Engineers to Bunker support teams and lawyers. Jon Hughes of SABT, Dian Esterhuyse of Unical and Patrick Holloway of Webber Wentzel took the candidates through the basics of bunkering from the commercial aspect, to the technical side and ending in the reality of claims and disputes. The feedback from the course is encouraging and we look forward to hosting the same course in Durban, South Africa in September this year. To end the training, we invited the candidates and members to attend a members’ luncheon at the Royal Cape Yacht Club where our esteemed colleague Professor Trevor Jones presented his updated research into the recent decline and potential economic growth of the bunker supply activities in and around Durban Port cluster. To highlight some of the topics covered in Professors Jones’s report:
World Bunkering Autumn 2015
Why are these bunker callers so important …because they SPEND in the local port economy!
Port’s marine infrastructure; TNPA marine services; Ships’ agents; Ship chandlers and suppliers; Transport services (crew transfers etc); Occasional ship repair services; Medical services etc etc; and of course on • Ships’ bunkers and barge supply • • • • • • •
'Mauritius: A bunkering hub, driving the ocean economy' is the title for the Africa forum to take place in October. The forum sees the Mauritian Government supporting IBIA to produce a regional forum consisting of 2 days training and a 1 and a half day forum culminating in a half day port tour. The forum will cover subjects such as: • Mauritius as a growing bunker •
How might Durban regain its historic role as a bunker port?
•
• Dedicated berths a challenge, but
a strategic item on berth planning radar (competition with repair, hullcleaning, arrested vessels etc.); • Berthing more challenging with Pier 1 infill? • Marine services provision not too shabby? • At least retention or extension of (small) port dues discount for bunker callers (rethink the 12-hour window?); • Tug/pilotage incentives? Horizontal equity a problem, but link to cost and berths? – new Regulator perspective • Address Storage capacity issues Off the back of a successful regional forum based in Gibraltar, IBIA Africa has been working together with the Mauritius government and CELERO, an independent logistics group based in Mauritius to develop a regional forum. The aim of the event is to highlight the importance of the Mauritius as a bunkering port and to showcase what Mauritius has to offer as a port.
IBIA Africa report
A busy scene
• •
•
supplier and hub The world and regional bunkering scene What’s happening with Regulation and Quality in the fuel supply chain Fuel Quality Chain and the Port Charter Modern look at the bunkering business, with the regional bunker suppliers explaining their operations. Short presentations by the principal bunker suppliers providing an overview of capability in the region
We have also added a new forum to the event. Alongside the “Cost of Failure” forum on 9 September, we will now be running “Bunkering with New Fuels: Building on Strong Foundations”. The forum, which runs from 15.00- 17.30, will take the form of a plenary session, followed by drinks. Subjects covered will include: • Emission control area See the IBIA website, www.ibia.net, for full details and to book tickets.
11
IBIA Asia report
IBIA thanked for Singapore Maritime Week support The close collaboration between MPA and IBIA was highlighted during Singapore’s biggest maritime event, reports IBIA’s new Singapore-based regional manager, Jason Leong
I
BIA had the honour of being invited by the Maritime and Port Authority of Singapore (MPA) to an Appreciation Tea on 19 June, held to thank organisations that had supported Singapore Maritime Week 2015 in April. Singapore Maritime Week (SMW) is the leading maritime event in Singapore. Driven by MPA, SMW gathers the international maritime community in Singapore for a week of conferences, dialogues, exhibitions and social events in celebration of all things maritime. The event is all about people, ideas and opportunities for the maritime community. The 10th SMW event was officially opened on 19 April by Lui Tuck Yew, minister for transport and second minister for defence, at the Marina Bay Sands Event Plaza. SMW 2015 featured 30 events from 19 to 24 April. Some 54,000 public participants and high-level delegates, including chief executives, industry leaders, maritime experts and representatives from port authorities, worldwide, are understood to have attended these events. IBIA received a commemorative plaque from MPA’s chief executive Andrew Tan in appreciation of its participation through organising the annual IBIA Asia dinner on 23 April. Lim Teck Cheng, board member and director of IBIA Asia, represented the association. Also present at the event was Jason
World Bunkering Autumn 2015
Leong, regional manager of IBIA Asia. The annual IBIA Asia dinner underlined the special relationship that IBIA enjoys with MPA. Guests included MPA assistant chief executive Captain M Segar; Dr Parry Oei, director of MPA’s port services division; and Andrew Winbow, assistant secretarygeneral and director of the Maritime Safety Division at IMO. Singapore is a signatory to IBIA’s Port Charter, designed to raise bunkering standards by requiring signatories to: operate a licensing scheme for bunker suppliers; enforce regulations covering bunkering; have a testing regime in place; and have appropriately qualified professionals involved in the supply chain.
These principles were at the fore when MPA held its 14th Bunker Forum on 24 April at Furama City Centre Hotel. The two-hour event kicked off with a speech by Dr Oei. He explained how MPA planned to increase bunker volumes through competitive pricing and offering better services. He said that there would be liquefied natural gas (LNG) bunkering in Singapore by January 2017. Dr Oei also outlined progress on fitting mass flow metering (MFM) systems, noting that 17 approved bunker tankers from 12 suppliers had been fitted with such systems. He pointed out that MFM systems will be mandatory by January 2017 and that there would be consequences for non-compliance. MPA will provide a S$80,000 subsidy to fit each bunker tanker with an MFM system.
IBIA Asia board member Lim Teck Cheng receives the commemorative plaque from Mr Andrew Tan, Chief Executive, MPA
13
Oil Marketing
& Trading International (Europe) SA MARINE FUELS
in UAE in CEUTA - Spain
and now
in JAMAICA 12 Kithiron Street, Alimos 17455 ATHENS, GREECE Tel : +30 2109609860 Fax : +30 2109609861 E-mail: bunkers@oil-marketing.com E-mail: ceuta@oil-marketing.com E-mail: jamaica@oil-marketing.com
Office 2001, Saba Tower 1, JLT DUBAI, UAE Tel: 00971 4 4350500 Fax: 00971 4 4350505 E-mail: bunkers@oil-marketing.com
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
WEB : W W W. OIL-M ARK E T IN G . COM
Risler_1-2page_OL.pdf
C
M
Y
CM
MY
CY
CMY
K
1
21/07/2015
18:18
SUPPLIER Yastrebov, Igor SEATRADE 5 Leningradskaya St Tuapse Krasnodar Region Krasnodar Region RUSSIA E-mail: servicetanker@gmail.com SUPPLIER Nunoo, Daniel OYLEIUM GHANA 9 Dakar Ave. East Legon Accra GHANA E-mail: info@oyleium.com TRADER Singh, Satnam SING FUELS PTE LTD No.60 Paya Lebar Rd. #12-55 Paya Lebar Square SINGAPORE E-mail: bunkers@singfuels.com BUNKER SUPPLIER Weijters, Lianne VAN-OIL PETROLEUM LTD Jr. Independencia Callao Lima PERU E-mail: commercial@van-oil.com BUNKER SUPPLIER Torres, Pablo SEA ENERGY COMPANY INC. Pta pacífica, PH Oceanía Business Plaza piso 37 Torre 1000 Oficina C PANAMA sales@sea-energy-panama.com
INDIVIDUAL BUNKER TRADER Moroz, Evgenii MESOS CO. LTD Admiral Fokin Street 8/1B, Vladivostok Primorskiy region RUSSIA E-mail: office@mesos.su TRADER Ping, Liu HEXCELLENCE INDUSTRIAL CORP. No.83 Section 2nd Pao - An Street New Taipai City TAIWAN E-mail: hexcel.corp@msa.hinet.net
World Bunkering Autumn 2015
BUNKER SUPPLIER Iwuoha, Uche LAUDO ENERGY LTD 2 Dele Bakare Street Olodi Apapa Apapa Lagos NIGERIA E-mail: u.iwuoha@laudogroup.net
BUNKER TRADER Slazar, Augusto MMC BUNKERING 20 #88 x 13 y 15 Itzimna Suite 2 Merida Yucatan MEXICO E-mail: info@bunkering.mx
BUNKER TRADER Turkmen, Serhat Baris MIRA MARINE Osmanaga mah ozpark sokak no 7 Kadikoy Villa Istanbul TURKEY E-mail: sbturk@superonline.com
BUNKER BROKER Jorgensen, Allan WORLD FUEL SERVICES Torvebyen 8, 1 TH DENMARK E-mail: ajoergensen@wfscorp.com
SERVICES Berry, Rhys PETROSPOT Petrospot House Sumerville Court Addersbury Oxon UK OX17 3SN E-mail: rhys@petrospot.com
BUNKER SUPPLIER Gursel, Celine TOTSA TOTAL OIL TRADING 10 Route de L'aeroport Geneva SWITZERLAND E-mail: celine.gursel@totsa.com
BUNKER TRADER Clayton, Charly KPI BRIDGE OIL 80 Victoria Street London SW1E 5JL UK E-mail: charly@gmail.com BUNKER SUPPLIER Pardiwalla, Xerxes SEYCHELLES PETROLEUM Company Limited PO Box 222 Victoria SEYCHELLES E-mail: x.pardiwalla@seypec.com
New members
CORPORATE
BUNKER TRADER Argyso, Magioudi WORLD FUEL SERVICES Troias 2, Kallitheo Athens GREECE E-mail: amagioudi@wfscorp.com BUNKER SUPPLIER Rosa, Daniel PETROBRAS Geminiano Goez, 1037 AP106, B12 Rio de Janeiro BRAZIL E-mail: daniel.rosa@petrobras.com.br OWNER/CHARTERER/BUYER Orri, Mohammed IBCO Saudi Arabia Jeddah SAUDI ARABIA E-mail: mohammed.k.m7@hotmail.com OWNER/CHARTERER/BUYER Malmros, Christine STENA BULK AB Masthuggskajen Gothenburg SWEDEN E-mail: christine.malmros@stenabulk.com BUYER Ellinas, Eve LATSCO 34 Brook St London UK W1K 5DN E-mail: eve@latsco.com
15
Cancun
IBIA Annual Convention 2015 Delegate Registration Opens on 1 July Sponsorship bookings available NOW!
The Americas: A Continent of Opportunities Featuring the Gulf of Mexico - a dynamic bunkering powerhouse Cancun, Mexico 2-6 November 2015
Elections
Elections to the IBIA board of directors
P
rior to the Annual General Meeting (AGM) on Monday, 8th February 2016, there will be an election to replace members of the Board whose term of office will end on 31st March 2016. 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 do the Board Members on a 3 year rotational basis. 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 www.ibia.net
COMPLETED NOMINATION FORMS MUST BE DELIVERED TO THE SECRETARIAT NO LATER THAN 30 OCTOBER 2015 EITHER BY POST TO: IBIA Ltd, Latimer House, 5-7 Cumberland Place, Southampton, 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.
World Bunkering Autumn 2015
17
Noticeboard
IBIA noticeboard Benefits to members as of 1 August 2015
MEMBERSHIP COSTS
Individual membership: £200 Corporate membership: £995 Corporate additional membership: £200
These increases took effect on 1 August 2015. Additional The Board has also decided that the present practice of listing Corporate have changes some and needs s’ member meet fairly and Members does not properly ship to its member of benefits the match ly accurate more will that ed therefore been introduc 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 – free copies for Members of IBIA
Please note non-members are requested to subscribe to the magazine at a cost of Pounds Sterling £45, £60 or £80 depending on location. Up to 20 additional free copies of the magazine are offered to buyer members of IBIA for forwarding to their vessels. IBIA World Bunkering Magazine – discounts on advertising
Discounted advertising rates are available for members with savings dependent on the advertisement size. Please contact the Advertising Sales Team at Maritime Media London on + 44 (0)20 7386 6100 IBIA List of Members
If your details are not correct, please log on to our new website and update them on your members page. The new website is designed so members can easily access and change their own information. This publication is only available to IBIA members. IBIA Guide to In-Line Blending
Available free of charge to members 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.
18
Evaluate the Merits of a Bunker Claim
Interpretation of specifications for bunker fuels and a guide to the question of repeatability. For sale to non-members at £35. IBIA Glossary of Bunker and Lubricating Oil Terminology
A comprehensive guide to all those complicated terms that are in daily use in the bunkering industry. For sale to non-members at £45. IBIA Guide to Good Commercial Practice
On sale to non-members at £50 per copy. IBIA Safety Cards for vessels’ crews
IBIA buyer members receive copies of the IBIA Safety Cards for distribution to their ships, giving basic, plain English advice about safe handling of bunker fuels Please note that all of the above publications can also be downloaded by members by visiting www.ibia.net and logging into your account. Please then go to the download section of the website. IBIA LOGO
Free bromide supplied for use by corporate members only.
World Bunkering Autumn 2015
Events manager Steve Hoare outlines many opportunities to fill your schedule
H
ello, everyone. Welcome to the summer report from the events team. The past couple of months have seen IBIA members presiding and speaking at many events worldwide. There has been IBIA representation at: • the seventh International Istanbul Bunker Conference – Robin Meech, Unni Einemo and Nigel Draffin • Platts’ sixth Annual European Bunker Fuel conference in Rotterdam, where we provided a chairman and speaker – Trevor Harrison and Peter Hall • Maritime Week Americas 2015, Cartagena – Eugenia Benavides and Nigel Draffin • Cyprus Shipping Chamber bunker conference (Maritime Cyprus Conference) – chairman and speaker Robin Meech. Meanwhile, the IBIA one-day basic bunkering course has formed an integral part of: • The Oxford Bunker Course in Oxford, UK • Maritime Week Americas in Cartagena IBIA experts will be presenting at the following events over the next three months. Do take the opportunity to meet them and get the latest from the seventh annual Bunkering in Asia event from 29-30 July, London International Shipping Week from 7-11 September and the International Association of Independent Tanker Owners (Intertanko) Bunker Sub-Committee meeting on 17 September.
World Bunkering Autumn 2015
London Regional Forum
A London Regional Forum will take place on 9 September at The Baltic Exchange as part of London International Shipping Week. The forum,“Bunkering with New Fuels: Building on Strong Foundations”, which runs from 15.00-17.30, will take the form of a plenary session, followed by drinks. Subjects covered will include: • Emission control area category fuels • Liquefied natural gas • Distillates • How to get what, where • A ports perspective Speakers include: Armelle Breneol of ExxonMobil; Michael Green of IntertekLintec; Mark Bell, the Society for Gas as a Marine Fuel (SGMF); Argus Media; and Nigel Draffin. Booking is via the IBIA website: http:// ibia.net/event/bunkering-with-new-fuels/ Regional Forum – Africa
“Mauritius: A Bunkering Hub, Driving the Ocean Economy” is the title of an Africa forum, which will take place in Mauritius in October. The Mauritian government is supporting IBIA to present a regional forum consisting of a day’s training and a day-and-a-half-long forum, culminating in a half-day port tour. The forum will cover a range of subjects, such as: • Mauritius as a growing bunker supplier and hub • The world and regional bunkering scene • What’s happening with regulation and quality in the fuel supply chain
• Fuel quality chain and
the port charter • Modern look at the bunkering
business, with the regional bunker suppliers explaining their operations. Short presentations by the principal bunker suppliers will provide an overview of capability in the region. See the IBIA website for full details and to book tickets: www.ibia.net Annual Convention – Mexico, Cancun
As you will have read elsewhere in the magazine, IBIA has signed a three-year partnership with UK event organiser and publisher Petrospot to run its annual conventions. The first of these takes place in Cancun, Mexico, from 2-6 November 2015. Petrospot will be organising the event, while IBIA ‘manages’ it. Working in this manner means that we can utilise the strengths of both companies to produce an outstanding event in fantastic location. Work is progressing on producing a great programme, with two days of industry-leading training and two days of fantastic content and information, not to forget the networking breaks and events. Please visit the website for full details and to register for individual courses. Tickets are now on sale via the IBIA website at http://ibia.net/ibia-cancun/ Why not take a look and see what great value you can get from the IBIA Annual Convention 2015?
IBIA events manager report
Summer of fun
19
Argus Africa
Storage and Logistics 16-17 September 2015 | Durban, South Africa Save 10% with World Bunkering. Quote ‘WB10’. Exhibitor
Sponsor
Lanyard Sponsor
Last year’s event attracted over 150 attendees: VitolSouth Africa • Glencore • Golden Crown Petroleum • DepartmentofEnergy,South Africa • Engen Petroleum • Forte Oil • Vopak • Colas South Africa • Foster Wheeler South Africa • Bulk Oil Storage and Transportation Company (BOST) • Nimex Petroleum Group • Horizon Terminals • Island View Storage • Linetrale • Mobil Oil Nigeria • Moteriba Terminals and Logistics • NERSA • Oando • Oiltanking South Africa • Optima Energy • Oryx Energies • Petrocam Trading • Puma Energy Services • Standard Bank • Stolthaven Terminals • TOTAL • Trafigura Services • Transnet National Ports Authority • VTTI • Kenya Pipeline Company • KPMG and more...
Join them this year at argusmedia.com/africastorage email africastorage@argusmedia.com Petroleum illuminating the markets
Market Reporting Consulting Events
Corporate Membership • REGISTER UP TO TWO OTHER OFFICES FOC. • DISCOUNTS ON IBIA TRAINING COURSES (FOR EMPLOYEES) • DISCOUNTS TO IBIA EVENTS (FOR EMPLOYEES) • NOMINATE REPRESENTATIVE TO IBIA WORKING GROUPS
Why Join IBIA? Are you a bunkering professional Involved in the supply of bunkers to vessels Want a direct line to IMO decision making
• DISCOUNTS ON ADVERTISING WITH WORLD BUNKERING • BOOK TABLES AT THE PRESTIGOUS ANNUAL DINNER • MULTI – SUBSCRIPTION TO WORLD BUNKERING MAGAZINE • SUPPORTOF INDUSTRY LEADING EXPERTS • USE OF IBIA LOGO ON WEBSITE AND STATIONARY
Individual Membership • INDIVIDUAL ACCESS DISCOUNTS ON IBIA TRAINING COURSES • INDIVIDUAL ACCESS TO MEMBER DISCOUNTS AT IBIA EVENTS • DISCOUNTS ON INDUSTRY EVENTS
Want network access to over 700 professionals and their organisations
• SET OF FREE IBIA PUBLICATIONS
Access to industry experts on a range of subjects Recognition for your expertise
• SUPPORT OF INDUSTRY EXPERTS
Join today online at
www.ibia.net/membership
QR Reader for iPhone and Android
• SINGLE SUBSCRIPTION TO WORLD BUNKERING • APPLY TOBECOME PART OF A WORKING GROUP • APPLY TO BECOME A BOARD MEMBER • SINGLE SUBSCRIPTION TO WORLD BUNKERING MAGAZINE
Membership Options Individual: £200.00 p.a Corporate: £995.00 p.a
(e) ibia@ibia.net (t) +44 (0)20 3397 3850
We are a leading physical bunker supplier in the Polish ports area
OKTAN ENERGY & v/l SERVICE Sp z o.o. BUNKER DEPARTMENT Phone: +48918142151 / +48918142111 Email: bunker@oktan-energy.pl
THE WORLD LEADER IN MARINE FUEL
ADDITIVES
Improving your fuel’s performance takes something extra. We are market leaders in marine fuel additives because we know exactly how to get the most out of marine fuel oils. Our innovative additive technologies give that something extra by significantly improving fuel quality and reliability. Treat your fuel - keep your engine running - reduce operational costs With unrivalled technical support, extensive R&D and our products enhancing your fuel performance - your fleet will always be out in front. To find out more, e-mail Innospec today at csc-emea@innospecinc.com or call +357 2576 2535
ENHANCING YOUR FLEET PERFORMANCE
www.innospecinc.com
Global news
Green scene Sustainability considerations dominate the bunkering market, with updated methodologies for alternative fuel evaluation and moves to shoreside electricity
Marseille set for cold ironing
In what is claimed as a first for France and the Mediterranean, shoreside electrical power for ships at berth – ‘cold ironing’ – is to be launched by the Marseille Fos port authority in conjunction with Corsica and Sardinia ferry operator La Méridionale. The facility will be available from October, following six months of work to install the quayside power network and adapt the company’s vessels – Kalliste, Girolata and Piana – so that their diesel generators are no longer required during port calls. Switching to environmentally friendly shoreside electricity will reduce noise, fuel consumption and air emissions. For each ship, the change will eliminate CO2 and particle emissions equivalent to more than 3,000 vehicles per day on the 64km route from Marseille to Aix, while NOx emissions will fall by the equivalent of 65,000 vehicles per day. The €4.4 million ($4.9 million) initiative follows several years of studies and was part-financed by national and regional government aid. DNV GL assesses new fuel market
Trends in pricing are an obvious factor to consider when examining the feasibility of new fuels, but sustainability and safety also have an impact on the ultimate affordability of change, according to classification society DNV GL. It has
World Bunkering Autumn 2015
released a position paper that presents a methodology for evaluating alternative fuels, adding sustainability and safety considerations to the discussion. “The Fuel Trilemma: Next Generation of Marine Fuels” looks at the rapidly diversifying fuel market from the perspective of affordability, sustainability and safety. These three factors will govern the importance of any energy source chosen to meet regulatory requirements for CO2, SOx and NOx – requirements that are already pushing the limits of what can be achieved with conventional fuels and exhaust gas cleaning technology. A growing diversity of fuel options has seen liquefied natural gas (LNG) becoming well established, opening some potential for biofuels to gradually replace fossil fuels. Electricity from the grid, methanol and hydrogen have their place for certain geographic areas and ship types, too. “In all cases, the cost associated with machinery, as well as the expected fuel price, will play a dominant role for shipowners as they make changes to their fleet,” said Christos Chryssakis, senior researcher at DNV GL. “However, safety and sustainability have an impact on affordability. Sustainability, assessed from a life-cycle perspective, will determine the availability of various fuels in the future, and could constrain the energy mix locally or globally.
“Novel design solutions may introduce a level of complexity that affects newbuilding costs and operational reliability. Even wellknown solutions such as LNG involve considerable ship design and equipment changes to ensure safe operation.” But there are external risks to be considered. A major accident could turn regulators and the general public against an otherwise promising fuel option. “DNV GL advocates that the risks are manageable. One of the premises is that safety should head the agenda from the very beginning of a ship design project,” said Chryssakis. Bomin opens in Denmark
The Bomin Group, a leading global physical supplier and trader of marine fuel oil, has announced that it is launching a physical operation in Copenhagen, Denmark. The expansion is in line with the company’s ambitious plans for growth throughout 2015. The Copenhagen operations complement Bomin’s existing physical network in the Baltic Sea region, including Tallinn, Stockholm and Rostock. “Securing supply in key markets for our customers is an important part of [our] growth strategy for the Baltic region”, said Anatoli Belov, managing director, Bomin Baltic. “Our physical offering enables us to take more control
23
www.platts.com/medbunker
Book by September 18, 2015 &
SAVE $500
November 25-26, 2015 | Fairmont Rey Juan Carlos | Barcelona, Spain
4th Annual
MEDITERRANEAN BUNKER FUEL Adapting to new market dynamics
HEADLINE INDUSTRY THOUGHT-LEADERS: Lars Robert Pedersen Deputy Secretary General
Will Bathurst Manager Business Analysis & Intelligence
BIMCO
Peninsula Petroleum
David Wech Managing Director
Chris Fisher Marine Engineer
JBC Energy
Brookes Bell
Simon Bennett Director Policy and External Relations
Erdem Coker Deputy General Manager, Sales & Trade
International Chamber of Shipping
Arkas Bunkering
Sponsor:
BOOK NOW
Media Partners:
www.platts.com/medbunker
conf_registrations@platts.com
+44 (0)20 7176 6300
New contracts at Cleartrade
Singapore-regulated futures exchange for commodity derivatives Cleartrade Exchange (CLTX) has launched Market Making for all fuel oil contracts within the central order book of the exchange. The market maker provides firm bids and offers for Singapore 180 CST, 380 CST and Rotterdam 3.5% Barges, providing guaranteed liquidity on maturities 18 months forward. CLTX chief executive Richard Baker said: “CLTX has invested significantly in its liquidity strategy, and, building on the recent launch of CLTX TRADER™, now enables members to uniquely access the new fuel oil liquidity between 2pm Singapore time through to 1am Singapore /6pm London time, provided by the exchange’s market maker programme. “I am delighted to say that, as part of this launch, we are able to offer market coverage incorporating a larger portion of the Asia trading day and providing unrivalled liquidity in these globally important products.” Sulphur cap for New South Wales
The Australian state of New South Wales has released a consultation draft for new regulations that will mandate the use of low-sulphur fuel (0.1% or less) by all cruiseships berthing in Sydney Harbour after 1 October 2015 and in all New South Wales ports after 1 July 2016. The requirement for all cruiseships to use low-sulphur fuel in Sydney Harbour from 1 October 2015 will apply to the Overseas Passenger Terminal at Darling Harbour and to the White Bay Cruise Terminal, Sydney’s two main cruise terminals. Solar system “ready for use”
Following the successful completion of sea trials onboard the high-speed car and passenger ferry, Blue Star Delos, Eco Marine Power (EMP) says its has now cleared its Aquarius MAS + Solar and
World Bunkering Autumn 2015
Aquarius Marine Solar Power solutions for commercial release. Aquarius MAS + Solar is an innovative renewable energy solution for ships, and the trial system includes a 2.3 kilowattpeak (kWp) marine solar panel array, a 5.4 kilowatt-hour (kWhr) battery pack, maximum power point tracking (MPPT) charge controllers, a marine computer plus associated communications and interface devices. The two days of testing and evaluation were conducted as Blue Star Delos sailed on its route though the Aegean Sea from Piraeus to Paros, Naxos, Ios, Santorini and then back to the Port of Piraeus via Ios, Naxos and Paros once again. Greg Atkinson, chief technology officer of Eco Marine Power, commented: “We are very pleased with the results from the evaluation of Aquarius MAS + Solar on Blue Star Delos. Together with the acceptance notification from ClassNK in March, this paves the way for its commercial release.”
Hydrocurrent system approved
Wärtsilä 31 launched
Danish privately held Bunker Holding Group (Bunker Holding), which owns Dan Bunkering, has bought bunker broker LQM Petroleum Services Inc (LQM) for an undisclosed sum, saying in a statement that it was a “logical step” that diversified the group the beyond trading. The statement stressed that LQM would remain “neutral”. “The acquisition of LQM is a logical step in Bunker Holding’s growth strategy and brings together two family-owned businesses with similar values and a long history of working well together,” said Bunker Holding Group CEO, Keld Demant. He added “LQM is an excellent fit. It diversifies Bunker Holding beyond trading, providing a pure broker solution to customers who require it and strengthens our presence in the US market for bluechip, high-volume customers.” Demant said that LQM would be a broker-only business operating as a separate division under Bunker Holding, “continuing to work independently with third-party trading companies”. Marisa Femenia, daughter of LQM founders Gerry and Barbara Van Geyzel, is the new CEO. She was LQM’s vice president Sales and Corporate Development and before that a broker with the firm.
Wärtsilä launched a new mediumspeed engine at the Nor-Shipping 2015 exhibition in Oslo, Norway. The Wärtsilä 31 engine is said to significantly reduce maintenance requirements, while raising fuel efficiency, fuel flexibility, and operational optimisation to totally new levels that are far beyond anything else currently available. Its fuel consumption efficiency in its diesel version is as low as 165g/kilowatt-hour (kWhr). The Wärtsilä 31 engine is designed to serve a variety of vessel types requiring main engine propulsion in the 4.2 to 9.8 MW power range. In the offshore sector, the Wärtsilä 31 is ideally suited for anchor handling tug supply (AHTS) vessels, offshore support vessels (OSVs), drilling and semi-submersible vessels, where the requirements are for operational flexibility, high power density, long intervals between overhauls, and high levels of safety. The new engine comes in three alternative versions; diesel, dual-fuel (DF) and spark-ignited gas (SG). The multi-fuel capabilities that the Wärtsilä 31 brings to the market extend the possibilities for operators to utilise different qualities of fuels, from very light to very heavy diesel, and a range of different qualities of gas.
Calnetix Technologies says that its new Hydrocurrent™ system has been evaluated and approved by Lloyd’s Register and ClassNK. Calnetix developed the system in partnership with Mitsubishi Heavy Industries Marine Machinery & Engine Co. It uses an organic Rankine cycle heat recovery process and a patented turbogenerator power conversion system to convert thermal energy in the ship’s engine jacket water into usable mechanical power to generate electricity. It produces up to 125 kW of electrical power, saving up to 200 tons of bunker fuel and reducing carbon monoxide emissions by 18 tonnes per year by reducing the load on the ship’s generators. The Calnetix system is said to be unique in that it can pull usable heat from a source with temperatures as low as 80°C, allowing it to create electric power without affecting the engine’s performance, while leaving sufficient heat in the jacket water for the fresh-water desalinator.
Global news
of the bunkering process, ensuring that customers are provided with quality products and the right quantity, as well as looking at all opportunities to maximise their operational efficiencies. We plan to phase our physical expansion within Copenhagen, beginning with providing products ex-pipe and by truck.”
Bunker Holdings Group buys LQM Petroleum Services Inc
25
Environment Emissions reduced as trade grows But pressure on the shipping industry to do more to reduce its environmental footprint continues to mount
I
nternational shipping reduced its total emissions by more than 10% between 2007 and 2012, despite continuing growth in maritime trade. Quoting this statistic in the latest International Maritime Organization (IMO) Green House Gas Study, published in 2014, the International Chamber of Shipping (ICS) recently warned, nevertheless, that the pressure is still on the industry to cut CO2 emissions further. As ICS noted, shipping was responsible for only 2.2% of the world’s total CO2 emissions in 2012, compared with 2.8% five years earlier, although ships continued to move about 90% of world trade by volume. But, ICS cautions, there is an expectation from policymakers that shipping must do more to help prevent dangerous climate change, and the industry is committed to rising to the challenge. ICS says it is confident that shipping will reduce its emissions per tonne of cargo moved one kilometre by 20% by 2020 (compared with 2005), with significant additional reductions going forward. For 2050, ICS has an aspiration for ships to reduce CO2 emissions by 50%. However, ICS stresses that “shipping is still the servant of world trade, which is expected to increase as the world’s population continues to grow”.
World Bunkering Autumn 2015
It adds: “This is why the establishment of absolute reduction targets for shipping would be wholly inappropriate.” ICS argues that, for the immediate future, the economic benefits derived from reducing fuel consumption – by far a shipping company’s largest cost – already provide all the incentive that shipoperators need to further reduce their CO2 emissions. The shipowners’ body says that significant CO2 reductions are now being aggressively pursued through technical and operational measures, such as more efficient ship and propeller designs, speed management, and basic measures such as adjusting the ship’s trim, which can be optimised for fuel efficiency using modern technology. The industry is therefore extremely sceptical about proposals to apply so called market-based measures (MBMs) to shipping. Those governments most vociferous in advocating MBMs seem to be motivated far more by the prospect of raising large sums of money from shipping, rather than delivering actual emissions reductions. This is the key message that ICS will be taking to the next United Nations Climate Change Conference (UNFCCC) in Paris, in December 2015, at which governments are expected to agree on a replacement to the Kyoto Protocol on preventing climate change, which was adopted in the 1990s.
ICS will be up against vociferous environmentalists at UNFCCC. That can be seen by the reaction of campaign groups Transport & Environment and Seas at Risk when the IMO’s Marine Environment Protection Committee (MEPC) decided not to proceed with a proposal by the Marshall Islands to set a global CO2 target for shipping. In a statement, the campaign groups claimed IMO had decided that “business as usual is more important than agreeing that international shipping must make its fair contribution to combating climate change”. In a taste of the rhetoric likely to be heard in Paris, the statement continued that the “procedural excuses at the IMO in London are evidently more important than heeding to impassioned pleas by the foreign minister of the Marshall Islands and the climate change minister of recently cyclone-ravaged Vanuatu that shipping must first agree whether a reduction target is the overall objective”. It added: “Of even greater regret is that important European countries – not to mention the US, Australia and Japan – couldn’t even bring themselves to mention the word target. Once again, it’s up to the UNFCCC meeting in Paris at the end of the year to make clear that global action on the climate requires all sectors to act. And the message for the EU is clear. The
27
World Bunkering Autumn 2015
the gap between new ‘eco’ ships and the existing fleet. With some charterers stating that they would consider paying a premium for eco-efficient ships, inefficient ships will become increasingly unmarketable. We see current low bunker fuel prices as an opportunity to get ahead of the market and can help owners find the financing to retrofit their vessels.” Less encouragingly, a new DNV GL energy management study suggests that only about one-third of shipping companies were aiming for energy savings of 5% or more. It is based on the input of 80 shipping companies and includes shipmanagers, owners and operators in 24 countries. Although energy saving enjoys a high priority within most of the companies questioned – with three-quarters of the participants naming fuel savings as a topic of high importance – in many cases, shipping companies have not formulated ambitious savings targets. Even as the share of companies with no defined target decreased to 28%, down from 44% in 2013, few had set themselves the goal of reaching half the level of performance improvement attained by the top performers in the industry. “The awareness of the importance and benefits of implementing energy saving measures has grown since our last study. But the low targets set by most respondents indicate that companies may lack a complete picture of the potential rewards that can be gained with a relatively modest level of investment,” says Jan-Henrik Hübner, global head of shipping advisory at DNV GL – Maritime. “Only one in 10 companies were aiming for gains of 10% or more, which is a level that our work with customers shows is attainable for many owners and operators through a combination of operational and technical enablers.” Of the companies that did set themselves improvement targets, nearly one-third of respondents fully or at least largely achieved targets they set themselves for 2014, with almost half achieving between 25% to 75% of their targets. Only 25% failed to reach onequarter of the performance targets they had laid for the year. According to DNV GL, a promising development is the rise in awareness
of performance monitoring as a key part of improving energy efficiency. Reliable data collection, monitoring and analysis gives companies continuous transparency on energy performance and enables them to identify obstacles in the way of realising their targets and the ability to proactively improve ship performance. “Performance monitoring was ranked as the most important contributor to achieving energy management goals, with 53% of respondents wanting to implement or strengthen performance management over the next year,” Dr Hübner notes. “This is very encouraging, however, most companies are still undertaking manual data collection and reporting. The strongest performers have made the commitment to introduce not only IT-based performance management systems but a performance management culture. “Building organisational awareness of what it takes to attain these performance goals is the top target for 2015,” says Dr Hübner. “But companies are now realising that simply defining a set of measures is not enough – to really drive energy savings there needs to be buy-in from both office staff and crew and the resources in place to implement retrofitting or other technical measures on board.” Last year, in a move that some will see as indicative of the future, DNV GL classed the world’s first large fully electric vessel, Ampere. The car ferry is a fully battery-driven catamaran made of aluminium. Innovative not only in its propulsion system but in its highly efficient hull design, the 80-metre-long vessel is able to carry 120 cars and 360 passengers across the Sognefjord between the villages of Lavik and Oppedal in Norway. However, DNV GL concludes that by far the greatest contributors to energy savings in 2014 were slow steaming, hull and propeller cleaning and voyage planning optimisation – well-known practices that require little investment. It says: “And even with the recent drop in fuel prices, cost continues to be the main driver for change, with some 80% of respondents naming it as their main stimulus for action.”
Environment
IMO continues to fail in its obligations to act. Europe needs to move quickly now and build on its recently agreed ship emission monitoring regulation by introducing measures to require all ships calling at European ports to make their fair reduction contribution.” Shipping and the ‘green’ lobby work on different statistics and interpret them differently. The environmental case is: “Since Kyoto, IMO has failed to deliver significant progress to reduce greenhouse gas emissions (GHG) from the international shipping sector. Shipping emissions have increased by approximately 70% since 1990 and represented 2.7% of global CO2 emissions in 2012. If these emissions were reported as a country, maritime transport would rank between Japan and Germany on a table of CO2 emitters. Under current policies, the IMO’s 2014 GHG study forecasts shipping CO2 emissions to increase by 50% to 250% by 2050, which would then represent between 6% to 14% of total global emissions. While emissions from other sectors have started declining, or are looking to peak in 2020, none of the “business as usual” scenarios for shipping foresee a decline in shipping emissions before 2050.” Broadly supporting the case that economic pressures are driving fuel efficiencies is news that charterers representing 20% of global shipped tonnage now have policies in place to avoid using the most inefficient ships based on the GHG Emissions Rating. The rating is a tool developed by RightShip, the maritime risk management specialist, and Carbon War Room, a non-profit organisation founded by Richard Branson. The tool is available for free at ShippingEfficiency.org and allows charterers and other stakeholders to assess the efficiency of vessels. It utilises an A to G scale, where A represents the most efficient ships, and G the least efficient. In addition to allowing companies to avoid chartering inefficient vessels, the data held on each individual ship is also used by some companies as a guide for calculating their carbon footprint from maritime shipping. Jeff Erikson, director of global projects at Carbon War Room, commented: “The increasing use of energy efficiency data in chartering decisions is widening
29
Risk management
Hedging tools to manage financial risk Geos Group’s Alison Stodolnic explains how shipowners and operators can protect themselves against a rising fuel market
B
unkering costs represent a significant proportion of the cost of running a vessel. As the price of fuel is directly linked to the global price of crude oil – which is constantly going up and down – how do you protect your business against the considerable financial risk of fluctuating fuel costs? The future global price of oil is unknown, but the general view among industry experts is that the trend over the next few years will probably be upwards (although as the market is at the whim of movements in commodity and currency markets, international politics, global economics and weather events, nobody can be sure). Businesses in the offshore sector are therefore becoming increasingly concerned about the threat of a rising market, which could have a significant effect on their operational costs. In response, Geos Group offers a price risk management service: “We help our clients to develop a hedging strategy, whose objective is to minimise the risk of financial exposure while maximising profit and maintaining flexibility. A hedging strategy replaces a risk-laden unknown future with a certain outcome, stabilises fuel costs and assists in budgetary planning.” The most commonly used hedging tools on offer are:
30
The swap
The collar
The swap contract, or ‘fixed price paper’, fixes the price of a volume of fuel to be delivered in the future. The buyer and seller agree an index price (which changes), usually based on figures from Platts – a provider of reliable benchmark price assessments in energy markets. When the index price moves above the agreed fixed price, the seller pays the buyer the difference; when the index price moves below the agreed fixed price, the buyer pays the seller the difference. This helps to flatten out price fluctuations over time.
The collar keeps bunker costs within an agreed range. A maximum price (cap) and minimum price (floor) are agreed. When the index price moves above the cap, the seller pays the buyer the difference; when the index price is below the floor, the buyer pays the seller the difference; when the index price is inbetween the cap and floor, so within the collar, no payments are made. There is no upfront premium payment for this service, and the best part is that the buyer only pays for protection when they can best afford it (when prices are low and below the floor).
The cap
The cap protects the buyer from rising prices, while enabling them to take advantage of falling prices. As with a swap, a fixed price and an index price are agreed upon. When the index price moves above the agreed fixed price, the seller pays the buyer the difference. However, if the index goes below the agreed fixed price, there is no payment due from buyer to seller. The fixed price therefore protects the buyer from rising prices, but allows them to benefit from price reductions. Buyers are required to pay an upfront premium for this service, which varies according to contract length, volume, price and market conditions.
The swap option (swaption)
Here, the buyer of a cap has an option, but not an obligation, to buy a swap. So if the market ends up above the swap price level, the buyer will exercise the right to enter the swap contract. There is an upfront premium to be paid for this service, which acts as a kind of insurance policy to the buyer. Although there is still some risk involved, and possibly an additional cost, a hedging strategy that is carefully structured to suit a shipowner’s or operator’s requirements can significantly protect them against the financial risks presented by a highly volatile fuel market. Visit the Geos Group website at www.geosgroup.com
World Bunkering Autumn 2015
Fears of a supply slowdown have not materialised, says Global Risk Management’s quarterly report on the oil supply position
G
lobal Risk Management has recently produced its quarterly report on the oil supply position. According to the report: “Global oil demand continues to grow; in 2014 by 0.9 million barrels per day (bpd) (92 million bpd on average, according to the US Energy Information Administration), and we expect demand to increase approximately 1 million bpd per year for several years, despite better car mileage and renewables in the OECD. The demand increase is primarily driven by India, where growth is currently soaring, along with Asia, the Middle East and Africa.” The steep oil price drop since June last year increased fears of a supply slowdown, but this has not yet happened, the report suggests. “On the contrary, OPEC produces well above its 30 million bpd target, and non-OPEC countries’ supply growth is estimated to around 1 million bpd (from around 58 million). “The recent oil price drop has kept a row of US shale oil wells in so-called ‘fracklog’; wells ready to open the taps on short notice, waiting to be hydraulically fractured. Thus, keeping the oil off the market, but ready to produce quickly when oil prices go higher. The number of active oil drilling rigs, measured on a weekly basis by Baker Hughes, has decreased steadily since peaking well above 1,600; only in the beginning of July we saw the first increase in rigs actively drilling for oil for the first time in 29 weeks,” says Global Risk Management.
World Bunkering Autumn 2015
Commenting on the Iranian negotiations on their oil supplies, Global Risk Management says the country has 30 million barrels on floating storage which could be released into the markets, but much depends on whether this oil will be allowed to be released. “We estimate they can restart approximately 500,000 bpd within the first few months. To get up to 1 million bpd in extra production we think Iran would need a year’s time. Market reaction will likely be a knee-jerk reaction to the downside (on the potential release of the floating storage) and then slowly recovering as the market realizes full production will not return immediately. “All in all, and depending on the deal / no-deal on Iran, we set fundamentals as slightly bearish to oil prices.” Libya has also remained in the spotlight, not just in terms of oil but from a political point of view. According to Global Risk Management: “Production output in the country with Africa’s largest oil reserves currently stands at about 430,000 bpd, more than 70% lower than it was prior to the ousting of its former leader, Muammar Gaddafi. “Why? When you thought that having two sides fighting for control, e.g. an international recognised government and the Islamist militia controlling Tripoli, was serious enough, please welcome into the ring new contenders in the form of the highly extreme ISIS, workers on strike and saboteurs who have nothing better to do than to cripple oil supply lines. So what are the
Risk management
More oil ready and waiting chances of production getting back to 1 million bpd in the near term? Perhaps next to impossible. How about say an increase of 200,000 bpd? Possibly, but not likely given the ongoing skirmish. Furthermore, only 300,000 barrels of oil is currently exported out of Libya. Given these factors, it is safe to say that some, if any, effect on oil price coming from Libya is not going to materialise, so don’t hold your horses.” Meanwhile , in June, Iraq posted record oil exports of 3.2 million bpd, the report says. “This was achieved through the splitting of the Basrah grade into light and heavy grades following numerous quality complaints from buyers. This has enabled the removal of production curtailments imposed on some oil fields, which has in turn raised production. “However, isn’t Iraq always in the news with the constant in-fighting turmoil and the ISIS problems? Well, the answer to this is that the oil industry in Iraq is split into three separate areas with very different circumstances. “The turmoil and ISIS problems affect the Kurdish north and the Sunni areas, both of which have either [few] or moderate resources, export constraints and/or no significantly developed reserves. However, the bulk of the reserves and strategic installations are in the Shia south, which is politically stable and relatively far away from ISIS and the dangers of war. Taking all this into consideration, steady increasing oil exports plus the relative insulation of oil assets from ISIS and saboteurs equals possibility of a bearish oil price bias.”
31
Independents
Filling OW’s shoes Independent firms have been expanding their services around the globe in the wake of OW Bunker’s dramatic collapse
W
hile the shock waves following last November’s crash have caused great upset throughout the bunker sector, the abrupt exit of such a major player has left a gap for the other big independents to fill. The massive World Fuel Services Corporation recently reported first quarter net income of $55.6 million or $0.78 diluted earnings per share compared with $50.7 million or $0.71 diluted earnings per share in the first quarter of 2014. “The strength of our business model and the diversity of our markets served us well as we posted a solid result in the first quarter,” stated Michael Kasbar, chairman and chief executive of World Fuel Services Corporation. “We continue to develop our global energy, logistics, transaction management and payment processing platform within our existing markets and products and expand into adjacencies that will provide us with sustainable growth.” Ira M. Birns, the corporation’s executive vice-president and chief financial officer, added: “We generated $107 million of operating cash flow in the first quarter, which marks the 11th consecutive quarter of positive cashflow from operations and totals more than $700 million over this period. “We continue to drive operational
32
excellence across all of our business segments, while delivering solid returns to our shareholders.” Meanwhile, Aegean recently began new operations in Hamburg, Germany, Los Angeles, US, and the Gulf of Mexico, while the company’s latest expansion is into one of the most important energy markets in the world: the Russian Federation. “We believe that our expansion into Russia, combined with our recent entry into the US Gulf Coast, US West Coast, and German markets, demonstrates our continued actions to strengthen the Aegean network around the world. We are confident that Aegean is well positioned for continued growth, success and value creation in 2015,” the company said. Aegean’s operations in this region will include a marketing and business development office located in St Petersburg, dedicated to sales and marketing of marine petroleum products across all Russian ports. With the assistance of five seasoned industry professionals, previously employed by OW Bunker, the company expects to gain important local market intelligence, while providing enhanced service to clients at all Russian ports. The company recently announced gross profits of $80.6 million for the first quarter, with operating income of $20 million.
Commenting on the results, Nikolas Tavlarios, president of Aegean Marine Petroleum Network, said: “During the first quarter, we continued to successfully execute our strategy and extended our track record of profitability through our expanded global operations. Our unique and dynamic business model supported strategic expansion opportunities at the end of 2014 and allowed the company to advance its position in the global fuel supply market during the start of 2015.” Tavlarios continued: “Our increased global operations, including our Fujairah facility, US West Coast operations and East Coast bunkering business, meaningfully contributed to our results during the quarter. In Fujairah, we expect the facility will further diversify our revenue and allow us to benefit from the growth of onshore storage demand. At an industry level, we are beginning to experience positive shifts in the shipping and tanker markets and believe Aegean Marine is poised to benefit from these improving trends.” Total revenues for the three months ending 31 March 2015 decreased by 40.1% to $1,015.1 million, compared with $1,694.4 million reported for the same period in 2014. This was the result of the drop in the price of oil. For the three months ending 31 March 2015, sales of marine petroleum products decreased by 40.6% to
World Bunkering Autumn 2015
World Bunkering Autumn 2015
provide to our longstanding Nigerian customers. We are looking forward to building this new downstream business, alongside our many other business activities in Nigeria.” Tope Lawani, co-founder and managing partner at Helios Investment Partners, said: “This is a market-leading downstream energy business with a strong brand and exciting growth potential. Given our successful partnership with Vitol to create Vivo Energy, a leading downstream business which distributes and markets Shell-branded fuels and lubricants in 16 countries across Africa, we are confident that our expertise and regional presence will support the management team in capitalising on its strong market position and the compelling growth opportunities in Nigeria.” Bunker Holding subsidiary DanBunkering, with 13 offices in nine countries around the world, can this year present a very satisfactory result for the financial year 2014/15, the company said. The Dan-Bunkering Group, part of Bunker Holding Group, achieved a profit before tax of $16.4 million and increased gross profit [by??] 11% compared with last year’s results. Chief executive Henrik Zederkof commented: “I am very satisfied with the progress we have experienced during the past financial year in the Dan-Bunkering Group. Our ambition at Dan-Bunkering is to be a preferred, professional, and solid partner for bunkers worldwide, and our 13 units have worked hard and made a tremendous effort attempting to fulfil this ambition. “We have experienced many positive changes within our organisation, especially within the past six months, and these changes have only shown to be for the benefit of our business, i.e. several new and experienced specialists have been added to our team, and we have opened four new offices. In combination, these additions have managed to contribute positively to our result, despite the fact that they have only been onboard since the turn of the year.” The management states that, with the four new offices which have been added to the group this year, – Montevideo in Uruguay, Valparaíso in
Chile, Stamford in the US, and Aalborg in Denmark – Dan-Bunkering is well in line with its strategy of being represented on all continents worldwide. The management continues to have great ambitions to expand further and looks forward to a new financial year with numerous skilled and ambitious employees onboard. The Bomin Group announced in May that it has established a new office in Nakhodka, a port city on the Sea of Japan, to meet the growing demand for quality marine fuels and services across the Russian far east. Through the office in Nakhodka, Bomin will provide customers with the full range of bunker fuel oil and gas oil at all ports along Russia’s far east coast, sourced directly from local refineries and delivered by trusted suppliers. The company will also act as an exclusive bunker agent for vessels wishing to call for bunkers only, including arranging a berth at one of the main terminals in Nakhodka on an exclusive basis, thereby avoiding long waits, minimising down time for customers and increasing efficiencies. Bomin’s Russian far east desk will be headed by Alexander Beliakov, an experienced bunker trader who joins the company from Nakhodka-Portbunker Co. Beliakov brings with him extensive experience of the local market and strong relationships with local suppliers, refineries and barging companies. “Given the lower cost of fuels available at Russia’s far east ports, we have been seeing a steady upward trend in demand for the full range of marine fuel and gas oil in the region,” said Susanna Lai, managing director, Bomin, Hong Kong. “Establishing an office in the region is in line with our strategy to provide our customers with quality products and delivering solutions that save them both time and money.” Thomas Johannsen, managing director of the Bomin Group, concluded: “We’re determined to ensure that, as a company, we develop in line with the changing needs of our customers. We want to continue providing flexible, reliable and value-added solutions that help our customers to meet the challenges they face in their daily operations.”
Independents
$994.5 million compared with $1,673.7 million for the same period in 2014. Gross profit, which equals total revenue less directly attributable cost of revenue, decreased by 2.8% to $80.6 million in the first quarter of 2015, compared with $82.9 million in the same period in 2014. For the three months ending 31 March 2015, the volume of marine fuel sold by the company increased by 7.8% to 2,915,450 metric tonnes, compared with 2,705,823 metric tonnes in the same period in 2014. A consortium comprising Helios Investment Partners and the Vitol Group has announced it has reached an agreement to acquire 60% of the economic rights and 51% of the voting rights in the West African downstream business of Oando, an integrated oil and gas company headquartered in Nigeria, for a sum of circa $276 million, subject to the receipt of regulatory approvals and customary purchase price adjustments, including working capital. The new downstream and retail business will be established as a standalone, independent company, led by a local management team. Its assets will comprise over 400 service stations in Nigeria, with supporting infrastructure, including 84,000 tonnes of storage and a newly built inbound logistics jetty; as well as complementary businesses, chiefly liquefied petroleum gas (LPG) filling and distribution, lubricants and an interest in a supply and bulk distribution company in Ghana. The new business will be the second largest downstream fuels company in Nigeria, with a market share of 12%. The consortium says it is “committed to investing for growth, and working with the experienced and highly skilled local management team to enable the business to capitalise on the 3%-5% per annum growth in Nigerian demand for oil products. It is anticipated that the service stations will retain the Oando brand.” Ian Taylor, president and chief executive at Vitol, said: “Vitol has a long history of working in Nigeria and is proud to have served our customers here over many years. This investment is a further reflection of our confidence in the Nigerian economy, and will be independent of the services we
33
Lubricants The first vessels to be fitted with Wärtsilä’s VGP-2013 compliant propulsion package are four BigRoll MC class module carriers currently under construction at the COSCO shipyard in Dalian, China. © RollDock Shipping
Meeting US rules Wärtsilä says its propulsion systems engines comply with the strict environmental regulations now in force in the US
W
ärtsilä has developed propulsion systems that are capable of operating with e n v i ro n m e n t a l l y acceptable lubricants (EALs) and comply with the US Vessel General Permit 2013 (VGP-2013). The manufacturer says it is among the first marine propulsion solutions suppliers to achieve this compliance for complete propulsion packages. For vessels operating in US waters, Regulation VGP-2013 mandates the use of EALs in all oil-to-sea interfaces unless not technically feasible. VGP-2013 was issued by the US Environmental Protection Agency (EPA) and is applicable to all vessels sailing in US coastal waters. VGP-2013 compliancy is available for newbuilt Wärtsilä installations. For existing sailing installations, the company says it can perform a feasibility study for each particular vessel. In many cases, it is possible to change the propulsion installation to a VGP-2013 compliant system. Wärtsilä says it began work on developing an effective solution in 2013, collaborating with numerous EAL suppliers. EALs have since been extensively tested with Wärtsilä steerable thrusters at the Wärtsilä Propulsion Test Centre in Tuusula, Finland. This testing has provided Wärtsilä with a deep technical
34
understanding of the EAL impact on marine propulsion systems. To make the company’s propulsion systems EAL-compatible, product modifications have been made to various elements, including the seals, hydraulics and oil monitoring systems. Wärtsilä has acquired detailed specification knowledge of adapting full hydraulic systems to make them EAL-compatible, as well as comprehensive experience of the impact of EAL compliance on seals. Wärtsilä has also obtained full intellectual property rights on the newly developed flushed hub solution.
The first vessels to be fitted with Wärtsilä’s VGP-2013 compliant propulsion package are four BigRoll MC class module carriers currently under construction at the COSCO shipyard in Dalian, China. The four state-of-the-art vessels (DP2 prepared, flush deck, 1A ice class and high service speed) will be operated by BigRoll Shipping for large module transportation services for offshore and onshore projects. The propulsion equipment will include Wärtsilä main engines, Wärtsilä tunnel thrusters and Wärtsilä controllable pitch propeller systems.
The Wärtsilä Propulsion Test Centre in Tuusula, Finland
World Bunkering Autumn 2015
Lubricants
HS DEBUSSY: many more running hours left for the pistons
50,000 hours and still going strong After running on minimum feed rate for years, Hansa Shipping’s containership HS DEBUSSY is expected to exceed 50,000 running hours without piston overhaul at present operation conditions
L
ukoil Marine Lubricants says using Lukoil Navigo 70 MCL cylinder oil has helped Hamburg-based shipping company Hansa Shipping to achieve significant benefits for HS DEBUSSY. The vessel’s engine has been running on minimum feed rate for years and is expected to exceed 50,000 running hours without piston overhaul. Stefan Claussen, technical and marketing director at Lukoil Marine, explains: “Initially, we started with Navigo 70 MCL at 0.6 g/kW/h, which we were able to reduce to the minimum feed rate of first 0.55 g/kW/h and later 0.50 g/kW/h”. Since then, the engine has been running on between 0.50 and 0.55 g/kW/h, depending on the sulphur content of the fuel, while it is constantly monitored by Lukoil’s cylinder scrapedown analysis service.” The outcome has been documented in the latest MAN service report on HS DEBUSSY. After more than 33,000 running hours, the MAN B&W 7K90MC-C engine has been found in excellent condition with no need for pulling any pistons. “If the engine’s present running conditions are retained, there are still many more running hours left for the pistons,” Karl Bjarnason, superintendent engineer at MAN PrimeServ Middle East, states in his report. “Since the cylinder condition is excellent for this engine, we do not recommend changing the present cylinder oil feed rate,” he adds. These results are impressive, even more so considering that the vessel is operating mostly under slow steaming conditions with fuel sulphur in the upper range towards 3.5%.
World Bunkering Autumn 2015
Shell Marine Products (SMP) has expanded the availability of its Shell Marine Products app to 40 markets, more than double its original footprint when it was launched in October 2014. The app is now available to customers on both iOS and Android mobile platforms in Belgium, Brazil, Canada, Croatia, Denmark, Estonia, France, India, Indonesia, South Korea, Lebanon, Lithuania, Malta, Monaco, Panama, Qatar, Russia, Spain, Switzerland, Turkey, UAE and the US. SMP has also expanded its port coverage in seven countries, bringing its global port network to 532 ports in 40 countries. “We are constantly looking to improve our customer offer, and differentiate our customer offer, by offering them easy order tracking and technical report availability at their fingertips through our SMP app, or expanding our port network to give them more flexibility on where they can obtain our products,” said Jan Toschka, general manager of Shell Marine Products.
35
Scrubbers
Jumping the gun? Orders are streaming in for various types of sulphur scrubbers to comply with emissions regulations, but the EU continues to create uncertainty as to what will be allowed
T
he situation regarding sulphur scrubber discharges in EU waters “does not look good” at present, according to the UK Chamber of Shipping. The chamber made the comment in June, following a plenary meeting of the European Commissionled European Sustainable Shipping Forum (ESSF), which was set up to help smooth through the implementation of the EU Sulphur Directive and to try, where possible, to help shipping meet the challenge. The session covered discussions on a range of issues, including implementation, liquefied natural gas (LNG), rating and investment (R&I) (chk), scrubbers, port reception facilities (PRF) (chk), competitiveness and financing, each of which have been examined by sub-groups of the forum in recent months. The chamber says: “Most of the discussions brought little new to light, however the reporting of the scrubber sub-group was a notable exception.” There has been much concern over the uncertainty surrounding wash water discharges and whether they would be allowed in light of the EU Water Framework Directive, which covers waters out to the 12-mile limit in terms of chemical status. Some member states, including the UK, stated that they will accept such discharges, whereas others – such as Belgium - have a zero tolerance regime.
36
The chamber took the opportunity to press for a harmonised approach and for ‘grandfathering’ to be allowed for those early movers who fitted scrubbers that would not now be acceptable across Europe. This approach, advocated by the chamber and other industry representatives, received support from almost all of the member states, with the exception of Germany. A senior member of the Water Framework Directive unit within the EU Directorate-General for the Environment (DG ENV) addressed the meeting and was uncompromising in opposing all of the industry proposals. The chamber comments: “It is too early to know where this is leading, but, at present, the situation does not look good. Whilst, on one hand, the industry has clearly made its case, and nearly all member states were supportive, those same member states who attend DG ENV working groups are equally [insistent] that their directive is absolute and that scrubber discharges should not be allowed. One should probably not be surprised that individual states are not consistent in their stances across the commission DGs and working groups.” The chamber says it will now engage in “very focused lobbying” to press for greater consistency across member state and commission positions and will also proactively lobby the UK government.
Meanwhile, Clean Marine says the 120,000 dwt shuttle tankers Eagle Barents and Eagle Bergen, recently delivered by Samsung Heavy Industries (SHI), are fitted with class and flag state approved exhaust gas cleaning systems (EGCS) provided by Clean Marine. The manufacturer says measurements of exhaust gas emission and washwater criteria are well below the limits required by the International Maritime Organization (IMO), ensuring the vessels’ compliancy with the 0.1% sulphur limit in emission control areas (ECAs), which has been in force since 1 January. The vessels are also compliant with the stricter United States Environmental Protection Agency requirements of a pH above 6 in washwater, measured at the outlet. The sisterships are owned by AET Sea Shuttle AS, and will operate on a long-term contract with Statoil in the harsh conditions of the Barents Sea and North Sea. Both vessels will be technically managed by OSM Maritime Group, which specialises in offshore and ship management activities in the Norwegian continental shelf region. Clean Marine’s Allstream exhaust gas cleaning system (EGCS) onboard the sisterships will clean both sulphur oxides (SOx) and particulate matter emissions from two main engines, five auxiliary engines and three boilers. In total, each single Clean Marine EGCS unit will
World Bunkering Autumn 2015
World Bunkering Autumn 2015
James Weigand, president, DuPont Sustainable Solutions. “The DuPont team transformed our earlier scrubber design to dramatically reduce operating and installed costs, while retaining the design features customers loved. The DuPont Marine Scrubber is now very competitive in the marketplace.” According to DuPont, by studying installed scrubber operating performance at sea, the scrubber experts at Belco and the DuPont engineering group have optimised the scrubber design. The scrubber now performs using less seawater than ever in open loop, allowing vessel owners to reduce space and power consumption onboard. In closed loop, freshwater make-up requirements also have been reduced dramatically. Du Pont’s scrubber sytem has been fitted on the Great Lakes bulker James L Oberstar. Meanwhile, Italy’s Grimaldi Group now has 10 Alfa Laval PureSOx installations. The group’s first experience with PureSOx was in 2014, when potential SOx scrubber solutions were evaluated for four of its existing Finnlines vessels. “Today, there are several suppliers in the maritime scrubber market and even more that are eager to enter. However, there are just a few that passed the tight criteria set for our selection process,” says Dario Bocchetti, energy saving manager at
Grimaldi Group. “When shortlisting candidates, a detailed analysis on access to core expertise, existing references, technological platforms used, delivery capability, project coordination capabilities as well as future service and support was done.” All four of the Finnlines vessels, which operate in the North Sea and Baltic Sea, were retrofitted with open-loop PureSOx systems sized for operation in low-alkalinity Baltic waters. The Finnmill and Finnpulp received multipleinlet systems, while single-inlet systems were installed aboard the Finnhawk and Finnkraft. In all cases, the systems were designed to facilitate later conversion into hybrid systems. The Grimaldi Group now has five new PureSOx installations under way, on newbuild conros for Atlantic Container Line (ACL) at Hudong-Zhonghua Shipbuilding in Shanghai. The newbuilds will replace existing vessels in ACL’s transatlantic service. Alfa Laval adds: “With work on the ACL newbuilds proceeding smoothly, the Grimaldi Group has placed yet another PureSOx order for the retrofit of a Finnlines vessel. The MS Finnmerchant will be deployed on a new Finland-Germany route between Hanko and Rostock, and again PureSOx was determined to be the best solution for meeting ECA requirements in the Baltic.”
Scrubbers
manage 10 exhaust sources and clean 220,000kg of exhaust per hour. The system is a hybrid type, which can operate seamlessly in both open loop and closed loop (zero discharge) mode and provides near-neutral pH in washwater discharged in open loop – hence its “future-proof” label. AEC Maritime said that by May this year a total of eight ships had been fitted with its SOx scrubber. Last year, Lloyd’s Register approved and certified the AEC Maritime SOx scrubbing system on Scandlines’ Schleswig-Holstein ferry. The company said in a statement: “Apart from closed loop systems, AEC now also has fully functioning open loop as well as hybrid scrubbers and has installed scrubbers on newbuild and retrofit. Since all systems are tailor made, AEC could learn from each experience. This has resulted in an even more compact scrubber system and thus made SOx scrubbing even simpler.” In another move, DuPont subsidiary Belco Technologies Corporation launched the DuPont Marine Scrubber, a redesign of the original BELCO Marine Scrubber, at the Nor-Shipping exhibition in Oslo in June. “Our new DuPont Marine Scrubber reflects the DuPont commitment to bring innovations and value to marine customers in need of effective exhaust gas emissions control,” said
37
LNG
Rocky road for LNG? IMO has adopted a code to regulate the use of liquefied natural gas as a fuel, but a row in Gibraltar highlights the type of opposition that could lie ahead
T
he International Maritime Organization (IMO) has taken a major step to facilitate the use of liquefied natural gas (LNG) as a marine fuel. In June, the UN agency’s Maritime Safety Committee (MSC) adopted the International Code of Safety for Ships using Gases or other Low-Flashpoint Fuels (IGF Code), along with amendments to make the code mandatory under the International Convention for the Safety of Life at Sea (SOLAS). An IMO statement notes that the use of LNG as fuel has increased in recent years, because it gives off lower sulphur and particulate emissions than fuel oil or marine diesel oil. But gas and other low-flashpoint fuels pose their own set of safety challenges, which need to be properly managed. The IGF Code aims to minimise the risk to the ship, its crew and the environment, having regard to the nature of the fuels involved. The amendments to SOLAS chapter II-1 (Construction – Structure, subdivision and stability, machinery and electrical installations) include amendments to Part F (Alternative design and arrangements), to provide a methodology for alternative design and arrangements for machinery, electrical installations and low-flashpoint fuel storage and distribution systems; and a new Part G (Ships
38
using low-flashpoint fuels) to add new regulations to require ships constructed after the expected date of entry into force of 1 January 2017 to comply with the requirements of the IGF Code, together with related amendments to chapter II-2 and Appendix (Certificates). The IGF Code contains mandatory provisions for the arrangement, installation, control and monitoring of machinery, equipment and systems using low-flashpoint fuels, focusing initially on LNG. The code addresses all areas that need special consideration for the usage of low-flashpoint fuels, taking a goal-based approach, with goals and functional requirements specified for each section, forming the basis for the design, construction and operation of ships using this type of fuel. The MSC also adopted related amendments to the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (STCW) and the STCW Code. These introduce mandatory minimum requirements for the training and qualifications of masters, officers, ratings and other personnel on ships subject to the IGF Code. The amendments also have an entry into force date of 1 January 2017, in line with the SOLAS amendments related to the IGF Code. The MSC adopted amendments to SOLAS regulations II-2/4.5 and II-2/11.6 – clarifying the provisions related to
the secondary means of venting cargo tanks in order to ensure adequate safety against over- and under-pressure in the event of a cargo tank isolation valve being damaged or inadvertently closed – and SOLAS regulation II-2/20, relating to performance of ventilation systems. The expected entry into force date is 1 January 2017. Meanwhile, US-based classification society ABS has published new advice about LNG bunkering in response to the industry’s growing interest in gas propulsion. “LNG Bunkering: Technical and Operational Advisory” explores the benefits, challenges and solutions associated with fuelling vessels equipped with LNG power systems. “Shipowners, operators, designers and shipyards around the world are considering the advantages that operating on natural gas may provide,” says Roy Bleiberg, director of global gas solutions at ABS. “However, when considering any new or evolving technology, it is important to have a clear understanding of not only the benefits but the challenges that may be involved.” The advisory document offers an extensive overview of potential solutions and current practices associated with LNG bunkering from the perspectives of an LNG fuel provider and a gas-fuelled vessel operator. “Some of the key areas that are addressed in this advisory are properties
World Bunkering Autumn 2015
World Bunkering Autumn 2015
the risks involved with proposals for following a successful conversion from two potential locations of LNG offloaddiesel-electric to LNG-electric propuling and storage tanks: the North Mole sion. To date, Rolls-Royce has delivered Western Arm, adjacent to the cruise a total of 63 LNG engines to ships. terminal, and the Detached Mole, to Rolls-Royce claims LNG reduces emisthe south of the North Mole. It did not sions of nitrogen oxides (NOx) by about address LNG bunkering.” 90%, while sulphur oxide (SOx) and parThe statement stressed: “LR’s findticulates emissions are negligible. LNG engines also reduce CO2 emissions by ings into a very specific tank siting proposal should in no way be seen as between 25% and 30% in general, comprejudicial to the broader opportunities pared with diesel- or heavy-fuel-oil- powto reduce harmful air emissions, support ered vessels. Emissions from Rolls-Royce LNG commercial activities or LNG bungas engines are already within the limits of IMO Tier III environmental legislation, kering in Gibraltar. Our findings relate due to come into force in 2016. to the risks associated with specific and The retrofit replaced four of the defined siting proposals.” ship’s original six diesel generating sets Nevertheless, the Gibraltar with two Rolls-Royce Bergen C6 generEnvironmental Agency ordered an assessment of the LR report by the UK’s ating sets. The LNG fuel containment Health and Safety Laboratory (HSL), system and control system is delivered which has been advising the agency for by two off 155m³ fuel tanks configured some time. for redundant propulsion, with cross HSL identified that the assumptions over options both on bunkering and on which LR based its analysis were supply lines. different from those it has been studyKjell Olav Haugland, managing director of Bergen Tankers, said: “We ing in the process of consultation with are delighted to take over a renewed the Gibraltar Environmental Agency, in and more environmental friendly vessel. order to inform government on the Our fleet sails along the long and beauLNG installation. For example, LR assumed that the tiful Norwegian coast, and visits several tanks would be single skinned and much ports every day, [so] reducing emissions larger than those in the concept designs is an obligation we take very seriously. that the HSL is considering for Gibraltar, With the Bergen Viking returning to and that they would be situated next to service, we are also looking forward to the cruise liner berths. Moreover, the significant savings in operational costs.” assumed location on the North Mole John Knudsen, president, commeron which the LR report is based is not cial marine, at Rolls-Royce, said: “The the one being considered. Bergen Viking project demonstrates that In assessing the potential to place LNG is an option not just for new vesthe LNG facility on the Detached Mole, sels but can be successfully retrofitted LR assumes that LNG will be piped into existing ships to deliver significant underwater in liquid state, which is not economic and environmental benefits what is being considered. In such a scefor owners.” nario, the proposed undersea pipeline would carry only re-gassified gas and not liquid gas. The row came not long after successful ship-to-ship transfers of LNG in Gibraltar Bay. Following this episode an agreement has now been reached between the Gibraltar Government and LR to begin scoping requirements for an independent safety report on the new dual fuel power station and LNG storage and bunkering in in the territory. Rolls-Royce gas-fuelled engines now power the Meanwhile, among recent LNG Bergen Viking chemical and product tanker projects, the Rolls-Royce-powered © Bergen Tankers Bergen Viking has returned to service
LNG
of LNG, critical design issues, operational issues aboard the gas-fuelled ship as well as bunkering vessels, proper procedures, crew training and the means to promote safe operations with needed risk assessments,” Bleiberg continues. ABS established its global gas solutions team in August 2013. Since then, it has been awarded several precedentsetting contracts, including classification contracts for the world’s first LNGfuelled containership, North America’s first LNG barge, the world’s first very large ethane carrier, the world’s first compressed natural gas carrier and the first dual-fuelled offshore support vessel built in North America. ABS’s UK-based counterpart, Lloyd’s Register (LR), found itself embroiled in a political argument in Gibraltar when it produced a report on the risks of siting LNG storage tanks at two particular locations in the port. LR concluded that the risks were relatively high. The report was commissioned, for a reported £100,000 ($155,710) by energy company Spark, which had put in an unsuccessful tender for a gas-fired power station. The report was then used by the UK territory’s main opposition party to attack the government. This turned into a heated row, which could have been seen as throwing doubts on Gibraltar’s ability to develop LNG bunkering. The government said in statement that it respected LR’s expertise and noted that its report explicitly sets out how to mitigate the risks involved in the operation of LNG to tolerable levels. “In this respect,” it added, “the conclusions of Lloyd’s are in keeping with those of the government’s own experts, namely that, with proper planning and mitigation, the use of LNG as a power generation and bunkering fuel in Gibraltar is entirely feasible and acceptable to UK standards of risk: to the level of a one-in-a-million-year event.” But it complained that the information provided to Lloyd’s “appears to be totally different” to the plans that are being assessed by the government. LR issued a report clarifying its role, saying that its report was an evaluation study covering proposals to site LNG offloading and storage, with specific technical specifications for their design, in Gibraltar. It said: “The study examined
39
Testing
Analysing fuel quality results A new initiative will enable owners to see how fuel quality affects the performance of their vessels
V
eritas Petroleum Services (VPS) and DNV GL signed a cooperation agreement to develop a new module for DNV GL’s ECO Insight fleet performance management solution at the Nor-Shipping trade fair. VPS says: “By tapping into the world’s largest fuel sampling database, this module will allow owners, operators and managers to determine how fuel quality can result in performance differences between similar vessels.” “Fuel quality is a factor which is often overlooked in performance management, but it can have a significant impact. We recommend carrying out lab tests on bunkered fuel,” explains Bjørn Olav Odland of VPS Nordic Countries. “Together with DNV GL we can now tap into the wealth of data generated
Dr Torsten Büssow, DNV GL
by these tests and make it available to customers aiming to improve their fleet’s performance.” “DNV GL and VPS started to work on the design of the new module in January; the second half of 2015 will be used to implement it into ECO Insight. Our web-based portal structures this vast amount of data, which would normally be difficult for individual owners and operators to analyse – enabling them to make more informed business decisions,” says Dr Torsten Büssow, head of fleet performance management at DNV GL. DNV GL says performance management portal ECO Insight provides a comprehensive and easily accessible way to manage the performance of a fleet, including voyage, hull and propeller, engine and systems
performance. It enriches customers’ own fleet reports with industry data, such as automatic identification system (AIS) or satellite weather data, and provides unique benchmarking capabilities. Advanced engineering methods – for example, hull fouling predictions based on computational fluid dynamics (CFD) – are also included in the portal. In addition, the Navigator Insight software carries out smart plausibility checks against specific vessel particulars to examine ensure the quality of the data collected onboard. By adding more valuable industry data such as fuel sampling data from VPS to ECO Insight, shipping companies have the opportunity to use yet another performance indicator to evaluate improvement options for their fleet.
USA: +1 713 407 3695 ASIA: +65 6322 8215 UK: +44 1325 390180 E-MAIL: marine.services@intertek.com WEB: www.intertek.com/marine
Profitable voyages depend upon bunker fuel quality. Staying in business means staying on schedule. Poor-quality bunker fuel represents one of the biggest threats to keeping your schedule and profitability intact.
40
Intertek ShipCare provides fast, accurate testing for bunker fuel quality, helping avoid costly repairs and downtime.
World Bunkering Autumn 2015
Testing KR opens engine testing centre Korean Register will develop, test and evaluate core green-ship equipment and technical services at its unique new facility
S
outh Korea-based classification society Korean Register (KR) has opened “the world’s first” green-ship equipment test certification centre in Gunsan in the Jeonbuk area of Korea. This largescale facility will be operated by IACS member KR and has been built with the full support of Korea’s Ministry of Oceans and Fisheries and the governments of Gunsan City and Jeollabuk-do province. In recent years, KR has been developing eco-friendly technologies through collaboration on a range of research and development (R&D) activities with marine equipment manufacturers. The
KR’s green-ship equipment test certification centre
World Bunkering Autumn 2015
creation of this new international-level facility enables KR to carry out testing and evaluation beyond its routine R&D work and establishes a firm base from which to lead the international standardisation of eco-friendly vessels. It also allows KR to respond to the International Maritime Organization’s greenhouse emission reduction and maritime pollution regulations. The new centre will assist the R&D departments of marine equipment manufacturers and help them commercialise their activities. The centre is expected to operate as an international green-ship hub by introducing
a certification system for green-ship technologies. It will develop, test and evaluate core green-ship equipment and technical services, including: • testing, evaluation and analysis of diesel engines • precision measurement and analysis of combustion and emissions • quality evaluation and analysis of fuel usage • evaluation and analysis of material corrosion and anti-corrosion measures • evaluation and analysis of thermal control and fluid application systems • evaluation and analysis of hybrid power systems B S Park, KR’s chairman and chief executive, said: “This centre was created to provide our clients with holistic services covering technical consulting, engineering and certification. We are delighted to be the world’s first centre to offer a one-stop service for testing and certifying green-ship components and machinery in a single location. Our centre is equipped with the required high-quality facilities and technology for test, evaluation and certification. As a rule provider, KR not only delivers accurate technical services but also assists clients to achieve economic efficiency. This is a further example of KR operating beyond compliance and I am confident that this new facility will help our clients enhance their technical quality, which will, in turn, have a positive effect on the shipping industry as a whole.”
41
Registered dealer of
PHN : +90 216 492 53 33 FAX : +90 216 391 57 75 E-MAIL : forcebunker@forceshipping.com FORCE BUNKER IS A FORS IKIZLER DENIZCILIK ESTABLISHMENT
© Port of Fujairah
Middle East
Fujairah remains the heart of the region’s bunkering industry
Suez expansion heralds Fujairah boom John Rickards examines the Middle East marine fuel market and the politics that will help determine how it will develop
I
f there’s one development likely to cause serious ripples in the immediate future of the Middle East’s bunker sector, it is, of course, the opening of the new Suez waterway (due, at the time of writing, to be inaugurated in August). The massive $8.4 billion expansion project will see waiting and transit times cut in half by allowing transits in both directions at once, larger vessels served, and huge savings on fuel costs for ships transiting the canal. Suez Canal Authority projections suggest that future traffic will soar, with annual revenues over two and a half times their current levels, despite discounting schemes designed to draw traffic away from the Cape of Good Hope. The first phase of a new bulk liquid storage terminal at the northern end in Port Said has been completed. If investment is found to finish the entire project, the facility could have up to 800,000 metric tonnes of products storage, including bunkers. The big winner if the expected surge in vessel traffic materialises, though, could be Fujairah. It has seen more bunker suppliers added to its already burgeoning market over the past few months. The hub’s potential rivals along the Gulf could also benefit. Global fuel trader Glander International Bunkering has nearly
World Bunkering Autumn 2015
doubled its staff levels on the back of business growth. While the company’s worldwide operations are also supported by its UAE head office, it’s clear that the group believes the Middle East bunker market itself will remain buoyant. Managing director and chief executive Christoffer Berg Lassen told World Bunkering: “Obviously, forecasting and following common trends have allowed us to be proactive in our approach to growth and this can be witnessed by activities that have occurred over the past year. While some segments have suffered a slump in the market, others have picked up, and our diverse and unique product offerings have allowed us to follow positive growth.” He also agrees with the potential benefits coming from the Suez expansion. “It has been said that the expanded access will allow for roughly double the traffic from the original maximum numbers,” he said. “The wait time for ships crossing the canal will be reduced from the average 11 hours to three hours. All these factors will ultimately save time, ship operating costs and fuel consumption, though, in saying this, it could also increase the frequency of ship voyages, as turnaround time will be reduced, therefore creating a continued demand for marine fuel and lubricants.”
In May this year, UAE-based Gulf Petrochem became the latest name on the list of Fujairah’s physical suppliers looking to take advantage of this continued demand. Under the name GP Bunkering FZE, the group is piggybacking its existing 412,000m3 storage facilities in the hub port to offer all main grades as part of its drive to double the size of its current business. Other Gulf Petrochem companies already supply Khor Fakkan and other ports in the United Arab Emirates (UAE), as well as further afield in India. The move followed March’s launch of Dubai-based Legends Oil Trading & Bunkering supply service via tanker in Fujairah, Khor Fakkan, Sharjah and Kalba. The company offers intermediate fuel oil and marine gas oil along the UAE coast and the Gulf of Oman. Fujairah is either the world’s third or second largest bunker port by volume – depending on whose figures you believe – and is still slated for expansion in terms of storage capacity, but there have been questions raised over the risk of overdevelopment. March saw Fujairah Oil Terminal FZC, a joint venture between Sinopec, Singapore’s Concord Energy, and the Fujairah government, open for business. The 1.177 million m3 terminal is part of an ongoing development plan to raise available oil and product storage from 8.6 million m3 to 11.4 million m3 by 2017. This is, in part, to take advantage
43
Middle East
of state oil firm IPIC’s planned new 200,000-barrels-per-day refinery, due to be commissioned in 2018. Storage was steady last year, with some projects delayed, but the 2017 capacity estimate is widely held to be, at worst, conservative. Much of the success of the new tank farms – another joint venture, Vopak Horizon, announced a new development this spring too – will depend on the refinery being completed on time, and on Fujairah continuing to see its bunker offerings expand and its liquefied natural gas (LNG) import and crude export businesses grow. Saudi Arabia is the current largest single investor in oil storage, occupying some 19% of available volume last year. However, Saudi fuel oil surpluses are expected to fall back over the coming year on the back of increased domestic demand and production focusing on higher value refined products. Vopak’s chief executive, Eelco Hoekstra, was quoted in press reports from this year’s Middle East Petroleum & Gas Conference in Abu Dhabi as saying that growth in crude throughput volumes in Fujairah was likely to be limited, and that storage at independent facilities was unlikely to grow much in the near future. Better infrastructure and connectivity between refineries, tanks and jetties would be key, he said. Most tank farm operators remain bullish about Fujairah’s future, of course, and – on the back of increased regional traffic – there’s certainly a lot to be optimistic about. Nevertheless, it’s not the only port seeing substantial development work and is not without direct rivals for fuel sales.
Mina Petroleum’s 230,000m3 fuel storage facility at the Omani port of Salalah is on track for opening in November this year. The nine-tank project, including a new liquid jetty, was launched on the back of a supply contract from the US Defense Logistics Agency to fuel to American naval vessels calling at Salalah. However, Dubai-based Mina and the port itself are already looking to the future and the prospects for commercial fuel trading and supply. Mina Group president and chief executive Graham O’Donoghue told the Oman Daily Observer: “The location is perfect for a fuel supply point that does not require vessels to enter the Arabian Gulf via the Strait of Hormuz. Salalah has great potential, especially in light of the port’s ‘2020 Vision’, which is an ambitious expansion plan that will take advantage of its strategic position in the region.” The company has already embarked on planning for a second storage project in Salalah on land adjoining the current facility, to take advantage of Oman’s growing economy and the port’s position. The potential second development would also store other refined products. Perhaps a more immediate threat to Fujairah’s dominance lies across the Strait of Hormuz. After protracted diplomatic wrangles, the lifting of oil trading sanctions on Iran has become highly likely (at the time of writing; the deadline for the talks to conclude was 30 June). While Iranian fuel is widely thought to be available unofficially in Gulf ports already, the reopening of the country’s bunker sector to international
trade certainly has the potential to shake up the region’s economics. Iran has long-stated intentions to account for half the regional bunker market, with official government estimates suggesting it has just under a one-sixth share at present. Officials from Iran’s Ports & Maritime Organization have suggested that new storage facilities could be built at Bandar Abbas alongside infrastructure works. The National Iranian Oil Refining and Distribution Company is planning to increase bunker fuel exports, according to managing director Abbas Kazemi. The country reportedly saw stronger fuel oil sales last year despite sanctions, as traders managed to bypass US and EU blocks on exports. Iran’s oil minister, Bijan Namdar Zanganeh, said at this summer’s OPEC gathering that Iranian oil production could be increased by one million barrels per day within six months of sanctions ending. Glander International Bunkering’s Lassen acknowledges the risks inherent in a glut of Iranian products hitting the market, but remains sanguine about its impact across the Strait. “If a comprehensive nuclear agreement is reached and a lifting of sanctions against Iran occurs, there could be a significant change in the forecast of oil supply, prices and demand,” he said. “In the event that Iranian product was to flood the market, the immense competition could possibly drive oil prices down. Additional Iranian oil supplies would definitely delay substantial recovery in oil prices. The UAE bunker market will adjust as it always has and always will.”
While Salalah’s bunkering facilities will initially serve the US Navy, supply to commercial vessels is expected to follow suit shortly
44
© US Navy/James Vazquez
World Bunkering Autumn 2015
Far East
Greater oversight Douglas Raitt, global manager of Lloyd’s Register’s Fuel Oil Bunker Analysis & Advisory service, reports on how Singapore is bringing in licensing requirements for bunker surveying companies
S
ingapore has, over the years, led the way in regulating the bunker industry through standards such as SS600 and SS524. All working in the industry should be well aware of the licensing requirements of bunker supply companies as well as individual bunker surveyors plying their trade in the Singapore bunker market. SS600 and SS524 have provided a robust framework to carry out bunkering activities in line with best practice standards for all stakeholders in the industry. Licensing of bunker surveyors and suppliers through strict performance criteria has served the industry well over the years. But one part of the chain has been left relatively unchecked and that is the bunker survey industry at enterprise company level, or, in simpler terms, the bunker survey companies. To date, only individual surveyors require a license to carry out surveys in Singapore, but the companies that employ them do not. During the Singapore International Bunkering Conference and Exhibition (SIBCON) 2014, MPA announced plans to implement a licensing scheme for bunker survey companies together with performance criteria in a bid to enhance the bunker survey industry further. The overall aim is to ensure that both licensed individual surveyors as well as their employers engage in best practice
World Bunkering Autumn 2015
when engaging in the trade. If a survey company fails to meet the licensing criteria, it can be penalised or, in a worst case scenario, lose its license to operate. The licensing scheme, to be implemented on 1 January 2017, can be summarised as follows. A bunker survey company wishing to operate in Singapore should: 1. Have minimum paid-up capital requirements 2. Be accredited against ISO/IEC 17020 requirements for the operation of various types of bodies performing inspection 3. Operate with professional indemnity insurance cover 4. Ensure that it stays within the limits of a defined demerit point system to be able to renew its annual operating license with MPA Having worked in the bunkering industry for many years now, I applaud the move by MPA to implement a licensing scheme for bunker surveying companies. I have always felt it a bit unfair that individual surveyors carry the can when surveys go amiss, without any consequences to the companies that employ them. Tying the two parties’ licensing requirements together will ensure that both surveyors and the companies they work for are equally looked into during investigations of disputes/complaints or possible mal-
practices. One would expect that this shared responsibility to operate under the relevant licensing schemes can only lead to one thing – and that is an even more professional survey industry operating at higher standards in the port. It will also allow MPA as regulator to have greater oversight of bunker surveying companies and the bunker surveyors they employ. Singapore adopts new standards
Singapore is a place that set standards and expects them to be met. Last October’s Singapore International Bunkering Conference and Exhibition (Sibcon) saw the launch of the latest editions of the Singapore Standards SS600:2014 Code of Practice for Bunkering and the SS524:2014 Quality Management for Bunker Supply Chain by government business support agency SPRING Singapore. The revised SS600 includes better safeguards to provide greater transparency in the bunkering transaction, and is intended to strengthen customers’ confidence in Singapore’s bunkering industry. The revised SS524 incorporates the latest developments in international quality management systems and practices. Companies adopting the standard will be on par with international benchmarks. In February, there was a demonstration of what can happen when the
45
6 - 7 October 2015 Sheraton Seoul D Cube City Hotel
US, Africa, Indonesia: Regulations & FLNG Investment Hotspots
REGISTER Today! Special Rate Ends 28 August 2015. Call us at +65 6508 2401 to find out more!
P10562WORLDB
World Bunkering Autumn 2015
Hong Kong goes low sulphur On 1 July, Hong Kong brought in a 0.5% sulphur limit within the territory’s waters, backed up by fines of potentially up to HK$200,000 (US$25,800) and the threat of jail sentences. The move followed voluntary switching to lowsulphur fuel by some container lines since 2011 and has been welcomed locally. The South China Morning Post reports that the change will reduce the respirable suspended particulates from ocean-going vessels by more than 60%, and will have a measurable impact on the health of people living near the container port in Kwai Chung district. “We’re surrounded by Chinese waters, so it’s difficult to come up with a solution that doesn’t involve legislation from China,” Arthur Bowring, managing director of the Hong Kong Shipowners Association, told the newspaper. “We’ve been working closely with groups like Civic Exchange and Clean Air Network for a long time, but it was hard to get the third side of the triangle – the Hong Kong government – involved. So we said we’d do it on a voluntary basis at first [in 2011]. Yes, it’s strange for the industry to do that, but, in this case, we decided it was time to do something. The government was apparently concerned that the port would become uncompetitive compared with surrounding ports like Shenzhen, and a lot of departments required a lot of work, but we’re extremely pleased this has finally come into force. It has levelled the playing field [between shipping companies who had signed the 2011 Fair Winds Charter and those who hadn’t]. We’ve already seen massive reductions in sulphur emissions in the area around the port. As someone who used to run in Hong Kong and had to give it up for health reasons, I can say it’s an issue that affects all of us.” Simon Ng, chief research officer at think-tank Civic Exchange, said that the Hong Kong government had launched a financial incentive scheme to help shipping companies recover the cost of buying the cleaner fuel, “so the fee shouldn’t be passed onto the consumer, for now”. On the situation in the Pearl River Delta region, Ng noted: “Hong Kong is working with Shenzhen and Guangzhou, so we don’t have to deal with the competitiveness. So far, it’s very positive. Shenzhen is willing to subsidise the shipping trade, to clean up. Things are moving a lot quicker now.”
Far East
rules are not followed. The Maritime and Port Authority of Singapore (MPA) revoked the bunker supplier and bunker craft operator licences of Hong Fatt Oil Trading and Tankoil Marine Services. That means the two companies are no longer allowed to operate as bunker suppliers and bunker craft operators in the Port of Singapore. MPA said its routine checks into the two companies revealed “discrepancies and wrongful declarations in the records kept onboard their bunker tankers”. There were also incidences of transfers of bunkers between bunker tankers that were done without MPA’s approval. MPA decided to revoke the companies’ bunker supplier and bunker craft operator licences as they had breached their terms and conditions. On a more positive note, MPA introduced several new initiatives at Sibcon as part of Singapore’s continued efforts “to enhance our bunkering processes and prepare the bunkering industry to meet the demands of the future”. It has been following these up in the months that have followed. The MPA has now committed to having the entire Singapore bunkering fleet fitted with mass flow meters (MFM) by 2017. It is offering incentives, including a S$80,000 (US$64,000) payment for each vessel fitted with an MFM. But it has also said there would be “consequences” for firms that did not comply in time. Among several other developments, MPA is working on the concept of electronic bunker delivery notes (e-BDNs), which will allow instantaneous transfer of bunkering data to both buyers and sellers. Using the data transmission capability of the mass flow meter and 4G connectivity within the Port of Singapore, the e-BDN concept will change the way the bunker industry currently operates. MPA says that, where paper-based bunker delivery notes are currently used as documents for invoicing and payments, the e-BDN will increase the productivity of all stakeholders involved in the supply chain and minimise the possibility of human error.
Indonesian developments
I
ndonesian state-owned oil and gas company Pertamina and the national port operator Pelindo II have agreed to build a new terminal at Kalibaru, one of Jakarta’s ports. According to reports, the first phase of construction is expected to be finished in 2017, and the 500,000 kilolitre facility will partly be used to support bunkering operations. Pertamina is also working on new bunker storage at Sambu, Bangka, just across the strait from Singapore. Meanwhile, Reuters has reported that Oiltanking now expects its 760,000m3 new storage facility in nearby Karimun to open in October at the earliest, following delays in completing the project.
47
MESOS Ltd. Admiral Fokin Street 8/1B, Vladivostok, Primorskiy region, Russia 690091 Tel: +7 (423) 240-64-91 Fax: +7 (423) 240-66-98 email: office@mesos.su
Bunker with Confidence! Where we work: We supply fuel at the following ports of the Russian Far East: Vanino, Kozmino, Vladivostok, Korsakov, Vostochniy, Nahodka, Zarubino , Posyet, Slavyanka
What we supply: Intermediate Fuel Oil (RMB 30, RMD 80, RME 180, RMG 380) and Marine Diesel Oil (DMA). All types of fuel are complient with ISO 8217:2012
What we guarantee: Quality, availability, flexibility
www.mesos.su
Russian update
Good to talk Olga Bogacheva reports on the latest news from the Russian bunkering and maritime sectors, including the annual St Petersburg conference
Suppliers gather for St Petersburg conference
The last week of June has become an established meeting time for Russian bunkering companies and their subsidiaries working outside Russia. This year, more than 160 professionals discussed events in the industry. It was clear that the issues facing the country’s bunkering companies have become more complicated during the past year. The main reasons for this are growing political tension, a sharp drop in oil prices and the rouble rate, tightening of environmental regulations and growing competition.
Several companies have suffered as a result of the unexpected bankruptcy of OW Bunker. Nevertheless, the total Russian bunker market increased in 2014. That means that the business is strong enough not only to meet the new challenges but also to maintain momentum. Most bunker suppliers are concerned by the coming introduction of marine fuel excise duty. This move by the Russian government is intended to further develop oil processing and improve the quality of oil products to meet Euro 4 and 5 emission standards. However, the proposed
Vitaliy Kovalev, president, Russian Association of Marine and River Bunker Suppliers
World Bunkering Autumn 2015
reimbursement procedure is seen by the industry as being too complicated, and it could take up to nine months to repay the excise duty, which, for many companies, could hit cash flows badly. But there is also good news. Vladimir Kapustin of VNIPIneft assured the audience that the major concern of previous years can now be forgotten. There are now enough bunkering resources to cover industry’s needs. Several speeches dealt with low-sulphur fuel, covering existing practices, economic issues, new quality control procedures and experience gained since the last forum. Liquefied natural gas (LNG) bunkering attracts more and more attention, even though it will be a long time coming to the Russian scene. A representative of Gazprom Neft Shipping, a part of Gazprom Neft Group, announced that the company has made its final decision on its LNG bunkering project and will treat it as a strategic goal. The company is preparing to start an LNG project in North-West Russia. There has also been significant progress on LNG on Russia’s Baltic Sea coast, with two infrastructure projects in the investment stage. One of them is the construction of a new Baltic LNG plant in Ust-Luga, with a completion target of 2018. In addition,
49
Russian update
Bunkering company TransOilBunker Co., Ltd 53 of., st. Aleutskaya 11, Vladivostok, 690001, Russia Tel: +7 (423) 2642-449 Tel/Fax: +7 (423) 2642-448 Tel/Fax: +7 (423) 2610-537 Mobile: +7 914 704 2856 E-mail: bktob2006@yandex.ru
BUNKERING IN THE PORTS OF RUSSIAN FAR EAST We supply vessels with the following oil products: MGO / IFO-30 / IFO-120 / IFO-180 / IFO-380
bunkering in the ports of: VLADIVOSTOK / NAKHODKA / VOSTOCHNY / SLAVYANKA / ZARUBINO / POSIET / KOZMINO
WWW.TRANSOILBUNKER.ORG
private initiatives are rapidly emerging in Leningrad Oblast. The LNG-Gorskaya project includes establishing a new LNG production company with its own bunkering fleet to supply LNG to European customers as well as to vessels in the Finnish Gulf. LNG-Gorskaya chief executive Igor Maksimov described
50
current progress, mentioning orders for tankers, pipeline construction and a signed agreement on price quotations and LNG forward contract trades. Anton Lukashevich of Krylov State Research Centre concluded the session with a talk about the safety of LNG bunkering tankers in cold regions.
Decade of success
The Russian Association of Marine and River Bunker Suppliers celebrated its 10th anniversary in June 2015. Association president Vitaliy Kovalev and Vladimir Sergeev, chairman of the board, reported on the achievements of the organisation. Most important
World Bunkering Autumn 2015
Vyborg Shipyard to build icebreakers
Vyborg Shipyard is to build two diesel-electric 22MW icebreakers for Gazprom Neft Novy Port, a Gazprom Neft subsidiary. The icebreakers, which should be delivered in 2018, are intended for the Arctic terminal serving the Novoportovskoye gas field, located in the west of the Gulf of Ob on the Yamal Peninsula. “The vessels will provide icebreaker assistance, line
handling and uploading assistance for tankers, rescue operations, fire-fighting and oil spill clean-up,” according to the company’s press office. Gazprom Neft moves bunkering vessels
Gazprom Neft Marine Bunker said recently that the Gazpromneft West tanker will be moved from Novorossiysk to North-West Russia as part of a rotation of vessels. The tanker has passed its company inspection and started regular bunkering operations. The Gazpromneft Nord tanker has also left Murmansk. The moves follow the acquisition of a new bunkering tanker for the Black Sea region as part of the company’s development strategy. Gazprom Neft’s low-sulphur lubricant
Gazprom Neft – Lubricants has started production of a marine lubricating oil for vessels working in emission
control areas as part of its strategic cooperation with Chevron Marine Lubricants. A spokesperson said that, from June, engine lubricants Texaco Taro Special HT LS 40 and Taro 20 DP 30/ Taro 20 DP 40 with low alkalinity intended specially for engines using low-sulphur fuel would be produced at the Omsky and Moscow plants. “We always emphasised that minimisation of pollution is the priority in development of our product lines. We concentrate our efforts on the manufacturing of high-quality lubricants, meeting modern requirements for environmental protection and operational safety,” said Alexander Truman, chief executive of Gazprom Neft – Lubricants. He added: “ We have developed our partnership with Chevron Marine Lubricants to ensure supplies for our customers in more than 800 ports around the world.”
Russian update
was the industry’s acceptance of the association as an effective means of influencing of new legislation and protecting the interests of members in arbitration cases. As usual, the most heated, intensive discussions were held backstage. They were continued during the wonderful gala dinner to celebrate the association’s anniversary. Congratulations and toasts were followed by a magnificent show to make this evening memorable.
Gazprom Neft ships
Gazprom Neft Marine Bunker, the operating company for Gazprom Neft’s bunker business, is set to deliver 50,000 tonnes of fuel to Royal Caribbean International’s cruiseships at Big Port, St Petersburg, during the current navigation season. Gazprom Neft Marine Bunker has been providing bunker fuels for Royal Caribbean International for seven years now. It says: “Not a single case of supply delay has occurred during the period of this collaboration. Gazprom Neft Marine Bunker’s professional effort, service and fuel quality were widely recognised at the conference for suppliers held last year by Royal Caribbean International.” The Russian bunkering company was awarded the “Royal contribution” nomination at the event. Gazprom Neft Marine Bunker says it supplies over 250 cus tomers, including Mediterranean Shipping Company, Carnival Cruise Lines, AP Moller-Maersk AS, Tanker Pacific and ZIM.
World Bunkering Autumn 2015
51
Innovation
Autumn innovations Hybrid propulsion and scrubbers gaining ground
C
lassification society DNV GL says it has looked at the lessons to be learned from the update to the “Shipping 2020” report, which was published in 2012. Now, three years later, hybrid propulsion systems and connected ship solutions are emerging technologies that are gaining ground faster than expected, while the rapid increase in the use of scrubbers is another surprise. Speaking at the Nor-Shipping maritime event week in Oslo in June, DNV GL’s group executive vicepresident, Tor Svensen, said: “While operational efficiency and emissions reductions are the main motivators, the update shows that the future fuel mix will be much more diverse.” Liquefied natural gas (LNG) as a fuel was highlighted in the last report, but, owing to continuing high investment costs and slower development of infrastructure, the prediction of up to 1,000 LNG-fuelled vessels by 2020 will most likely not be met. However, as more bunkering options come in place, growth could accelerate. Scrubbers, on the other hand, were seen as a regulatory compliance item that would not be a significant option until after 2020 and the introduction of tighter global restrictions on sulphur. Today, the scrubber market is developing faster than expected, with more than 200 confirmed projects.
52
The rise of hybrid vessels was not anticipated in the original “Shipping 2020” report, Svensen noted. But the substantial drop in battery prices and improved energy storage capacity means that hybrid systems are now becoming a real option for the shipping
DNV GL group executive vice-president Tor Svensen
industry. They are best suited for vessels with large variations in power demand, coastal trades and operations within emission control areas. The technology was also becoming applicable for some deep-sea shipping segments – for example, in crane operations – he explained. Pilot projects indicate that hybrid technology is robust and leads to fuel savings of 15% for an offshore vessel. A hybrid engine system allows the ship to operate at its most efficient point, regardless of power requirement or load. “Currently, there are already 33 hybrid vessels in operation or on order and, looking ahead, it is possible this number will top 100 by 2020,” Svensen said. Meanwhile, global high-speed internet coverage, increased computing power and big data solutions turn the vision of the connected ship into reality. Svensen expects that the spread of these technologies will enable the shipping industry to intensify its focus on enhancing operational efficiency. “By bringing together and analysing both data from onboard monitoring systems and from external sources, a comprehensive insight is gained of voyage, engine and hull performance,” he said. “Voyage management based on shipboard sensors and AIS data, for example, can help to determine the optimal speed in all conditions and thereby reduce fuel bills.”
World Bunkering Autumn 2015
Innovation
This artist’s impression shows a low-energy tug on order at Damen for Svitzer
Damen coordinating European innovation project
A
new EU innovation project, LeanShips ( Low Energy and Near to Zero Emissions Ships) is intended to demonstrate the effectiveness and reliability of energy-saving and emission reduction technologies at real scale. LeanShips is one of the first projects funded under the new EU Framework Programme for Research and Innovation, Horizon 2020. The project is being coordinated by Damen Shipyards Group and jointly managed by the Netherlands Maritime Technology (NMT) foundation, the Center of Maritime Technologies (CMT) from Germany and Cetena, the Italian Ship Research Centre. LeanShips officially started on 1 May 2015 with a grant of €17 million. The large project partnership consists of shipowners, shipyards, equipment suppliers and research institutes. In total, 46 partners (81% from industry) from 12 EU member states and one associated country are part of the project. LeanShips aims to put innovations into practice by carrying out eight demonstrator showcases that combine technologies for efficient and less polluting vessels with end-users’ needs and requirements. Dedicated teams of equipment manufacturers (technology providers), shipyards (technology integrators) and shipowners (technology users) as well as rule makers will make certain that the innovations developed in the project are matured to market uptake capability. The eight elements of the project are: a compressed natural gas-powered reverse stern drive tug; a liquefied natural gas (LNG) tug; a marine diesel oil (MDO) or methanol dual-fuel offshore support vessel; an efficient LNG carrier; the retrofit of short sea cargoships for LNG fuel; an inland cargoship with large oscillating propulsor; a large propeller for a general cargo vessel; and an energy-efficient passenger ferry or cruiseship. The project target markets are the small to mid-sized ships for intra-European waterborne transport, vessels for offshore operations and the leisure and cruise markets. First impact estimates for LeanShips show fuel saving of up to 25%, CO2 reduction of at least 25% and an expected decrease of sulphur and nitrogen oxides (SOx/NOx) and particulate matter (PM) air pollutants by up to 100%. Through their participation in the project, the LeanShips partners intend to set an example and encourage more shipowners to invest in green technologies.
World Bunkering Autumn 2015
Sea trials of the Norsepower Rotor on a ro-ro ferry in the North Sea have confirmed significant fuel savings
Successful wind-power technology test Independently verified trials on a Bore ro-ro have confirmed the fuel-saving potential of Norsepower’s Rotor Sail technology
S
ea trials, verified by NAPA and supported by VTT Technical Research Centre of Finland, confirm fuel savings of 2.6% using a single small Rotor Sail on a route in the North Sea. With these fuel savings, the technology has a pay-back period of four years. The Norsepower Rotor Sail Solution was installed on the 9,700dwt ro-ro carrier M/V Estraden, owned by Finnish ro-ro shipping company Bore. Estraden operates in a continuous service between the Netherlands and the UK, sailing through the North Sea’s windy corridors at speeds of 16 knots. Based on the trials, Norsepower and Bore believe that a full system on Estraden with two rotors has the potential to deliver 5% efficiency savings on an ongoing basis. Norsepower forecasts savings of 20% for vessels with multiple, large rotors sailing on favourable wind routes. “The successful trials of our wind technology are a ground-breaking moment, not only for Norsepower but also the wider development of wind propulsion technology for shipping. The results suggest that when Norsepower’s technology is implemented at scale, it can produce up to 20% net savings in fuel costs, with a pay-back period of less than four years at current fuel prices, confirming that wind technologies are commercially viable solutions that reduce fuel and carbon emissions in the industry,” said Tuomas Riski, chief executive of Norsepower.
53
Innovation
New hull form promises big fuel savings
H
ull form optimisation and a hydrodynamic design by naval architect and marine engineering company Foreship for a new generation of coastal general cargoships could achieve major fuel savings, the firm says. Finnish owner Meriaura Group signed for two 4,700dwt Ice Class 1A VG EcoCoaster TM general cargo newbuilds at Dutch yard Royal Bodewes in mid-January, with the first due for delivery at the end of July, 2016. Foreship says: “Hull form and machinery optimisation are expected to almost halve fuel consumption compared with conventional drycargo vessels of similar type and size, in turn making a significant impact on fuel emissions.” Foreship worked with Meriaura and Aker Arctic Technology at the EcoCoaster’s concept stage, in a project that also envisages the ship using either marine gas oil (MGO) or the biofuel ‘EcoFuel’ to meet and even exceed maritime environmental regulations. “Altogether, 45 hull alternatives were considered, of varying lengths and hydrostatics, with the aim of minimising resistance while achieving small wave formation and a good wake field for the propeller,” said Foreship’s senior hydrodynamics specialist, Risto Ajanko. He added: “The main dimensions of the
54
EcoCoaster were optimised, achieving the best ratio between capacity and fuel consumption.” Using Foreship’s advanced in-house computational fluid dynamics tools, designers also reached the best compromise for performance in open water and in the ice channel, with Aker Arctic advising and model testing to enhance performance in ice. In addition, analysis focused on optimising the smooth wave profile along the hull. The hull form includes a long and narrow bow that will achieve lower resistance in ice channels, while flare
angles minimise additional resistance in waves. The aft shape features a narrow gondola to enhance the wake field for the propeller. The EcoCoaster’s dual-fuel propulsion will be delivered by an ABC 8DZC medium speed main engine, which will be suitable for biofuel and MGO. VG-Shipping (part of Meriaura) operates its own biofuel refinery in Uusikaupunki. The owner’s goal is for EcoCoasters to make up at least half of its fleet (currently 20 vessels) within five years. A larger EcoCoaster design is also under development.
The Foreship design ensures that the wave behind the transom is small and that there are no diverging waves
World Bunkering Autumn 2015
Global news
Institutions bring OW case Legal developments have continued in recent months in the wake of last year's collapse of OW Bunker.
A
number of institutional investors are planning to bring legal proceedings against OW Bunker, according to a statement issued by major Danish pensions company and financial institution ATP. The legal proceedings concern prospectus liability and disclosure obligations under securities regulation. The purpose of the proceedings is to seek to determine responsibility and obtain compensation for the benefit of members and clients. In December 2014, a number of institutional investors launched an investigation into the bankruptcy of OW Bunker with a view to determining whether there are grounds for asserting legal liability. The investigation has, among other things, focussed on errors and flaws in the prospectus prepared in connection with OW Bunker's IPO, liability in connection with the offering and the sale of shares in OW Bunker as well as the management's liability for OW Bunker's operations in the period from the IPO until the bankruptcy. ATP said that, based on the conclusions of the investigation, 27 institutional investors representing claims for more than DKK 800 million had decided to collectively bring legal proceedings against relevant parties with a view to obtaining compensation
World Bunkering Autumn 2015
and determining responsibility. Other reports indicated more investors had joined the group bringing the case. Two actions will be brought: One of the actions concern prospectus liability and will be brought against OW Bunker, relevant former members of OW Bunker's management and relevant Altor entities. The other action concerns liability for non-compliance with the disclosure obligations under stock exchange regulation and will be brought against OW
Bunker and relevant former members of OW Bunker's management. If more information is obtained, further parties may be involved in the actions. Writs against the relevant persons and companies are being prepared. The actions will be brought before the Danish courts of law. The law firm Bruun & Hjejle will be representing the investors in the proceedings. The law firm Accura and the auditing firm KPMG will assist Bruun & Hjejle.
Happier days - just over a year ago OW Bunker added an extra barge to its Panama operation
55
Global news
Anders Damgaard, CIO at PFA Pension, said: "The entire course of events regarding the IPO of OW Bunker and the subsequent bankruptcy is regrettable. It should not be possible for the company described in the prospectus to be declared bankrupt only six months after the IPO. It is therefore extremely important to identify what went wrong and to determine responsibility. Both in order to obtain the best possible compensation for our clients' losses, to shed light on the weaknesses of the framework conditions for IPOs, and not least to ensure that something like this will not happen again." Kenneth Joensen, Chief General Counsel at ATP, said: "It is our duty towards ATP's members to seek to recover as much as possible of the loss incurred as a result of OW Bunker's bankruptcy. This was a highly negative event on the Danish stock market, and there is a strong need for clarifying the events preceding the bankruptcy and determining responsibility.” Meanwhile the OW Bunker bankruptcy could help clarify US law as to whether it is the bunker broker or the physical supplier who has the maritime lien according to an article in Seatreade Maritime News by John Kissane, Partner at Watson Farley & Williams LLP (WFW). Mr Kissane wrote that should a bunker broker become insolvent, as occurred with OW Bunker, under US legal jurisdiction, both bunker broker's bankruptcy trustee and the local supplier of bunkers may assert that they have a maritime lien for the same fuel delivery.
He said that the law was somewhat unsettled in this area but seemed to favour the broker who actually contracted with the charterer or owner but there was enough uncertainty that an unpaid physical supplier could arrest a vessel in the US “without fear”. In a situation such as the OW Bunker bankruptcy, where a local supplier would usually seek payment from OW Bunker, they would instead look to payment from the vessel and its owner. This meant both OW Bunker's trustees and the physical supplier could seek to arrest the vessel to secure the same claim, leaving the owner with two different parties demanding payment for the same debt. According to Mr Kissane: "Although there can only be a single lien arising from the fuel delivery, if the wrong creditor is paid the vessel remains subject to arrest by the other creditor.” Rotterdam court's expanded EU reach
ROTTERDAM-based law firm AKD says a recent revision of the Brussels I Regulation makes it possible to attach assets quickly anywhere in the EU if parties include in their contracts a choice of forum clause conferring jurisdiction on the Rotterdam court. The Brussels 1 Regulation provides uniform rules throughout the EU on international jurisdiction and the recognition and enforcement of civil and commercial judgments. Bart-Jan van het Kaar, a lawyer with AKD, explained,”The revised Brussels 1 Regulation, which came into effect on 10 January, 2015, introduces an important change. Under the new regulation, it is now possible to enforce throughout the EU provisional measures granted on the basis of a simple application by a party in any individual member state.” AKD partner Haco van der Houven van Oordt said, “The revised Brussels I Regulation includes some drastic changes with important implications for owners, charterers and others looking to arrest vessels or attach other assets in EU jurisdictions. The Netherlands is already widely recognised as a ship arrest haven, and its procedural law provides an effective means by which to obtain security in advance of main
proceedings against a debtor. Such security can be obtained by seizing any asset of the debtor on the basis of a pre-judgment attachment order. Another option is to levy a third-party attachment which blocks all payments by the third-party to the debtor. These pre-judgment attachment orders can be used to obtain security or to exert pressure on the debtor to make payment and thus avoid starting main proceedings against the debtor.” Mr van der Houven continued: “The new Brussels 1 Regulation effectively means that the whole of the EU is now a potential ship arrest haven for those who initiate action through the Rotterdam court. The only proviso is that the Rotterdam court has jurisdiction on the merits of the claim. The willingness of the Rotterdam court to allow seizure of the assets in EU member states other than The Netherlands was underlined earlier this year when the court granted leave to arrest the pusher-barge Navin 24 in either Germany or Austria in a dispute involving non-payment of hire under a time charter. Jurisdiction was based on a choice of forum clause in the time-charter, which vested jurisdiction to the Rotterdam court.” According to AKD, including a choice of forum clause in contracts which confers jurisdiction on the Rotterdam court now greatly assists in securing the enforcement of contractual rights against unwilling debtors. The Rotterdam court can issue orders for an arrest not only in the Netherlands but also in other EU member states. AKD noted: “The maximum enforcement of rights is guaranteed, while the maximum amount of pressure is exerted on foreign debtors.” Indian court orders ship arrest
The Gujarat High Court arrested the bulk carrier Pacific Green in early July for non-payment of $197,634 for bunkers supplied by Glander International. The ship is understood to be controlled by South Korean interest and was being held at Mundra port on India's west coast. As well as the cost of the bunkers the court ruled that the an interest charge of 2% a month must also be paid before the ship could be released.
AKD's Haco van der Houven van Oordt: says revised Brussels I Regulation includes drastic changes
56
World Bunkering Autumn 2015
Savings were the keystone for the PureDry waste fuel recovery system, but, even with current lower fuel prices, the system’s convenience is still attracting customers
T
wo years after Alfa Laval launched its PureDry waste fuel recovery system, it has sold over 160 units. Major owners include Carnival Corporation, Dynacom, Frontline, MSC, Norwegian Cruise Line, Petrofac, Spliethoff, Stena and Wallenius. Alfa Laval says the system was created with one business case in mind. Taking advantage of MARPOL rule MEPC.1/Circ.642, it was designed to let shipowners and operators re-use the heavy fuel oil (HFO) fraction of waste oil. “As it turns out,” the company says, “recovering fuel is only one reason customers are buying it.” “When we developed PureDry, fuel savings were in focus 100%,” says Pauli Kujala, the senior business manager responsible for the system. “But customers are just as interested in PureDry now that fuel prices have dropped. Simply put, removing fuel from waste oil has advantages we never envisioned.” PureDry recovers a significant amount of fuel from waste oil – typically as much as 1%-2% of a vessel’s fuel consumption. However, when waste oil is separated with PureDry, no liquid whatsoever is left. Fuel of ISO8217 quality is returned to the bunker tank, while all of the water is sent to the bilge water treatment system. All that remains is 5kg-10kg per day of super-dry solids, which are non-pumpable and have to be landed as dry waste or incinerated. “The super-dry solids are the suspended solids that comprise around 1% of the waste oil, and everything else is 100% eliminated,” Kujala says. “In an integrated system with Alfa Laval PureBilge, all of the oily waste streams are dried up. The oil is gone, the water is gone. There’s nothing to pump and virtually nothing to dispose of. “Many vessels today get rid of their waste oil by pumping it onto receiving
World Bunkering Autumn 2015
barges, which is yet another messy procedure for the crew to deal with,” Kujala says. “PureDry eliminates this procedure and all of its drawbacks, which has proven reason enough for some customers to buy it. The superdry solids go straight out of PureDry and into a container, and the container itself goes straight onto land.” For some other customers, the reduction of sludge into super-dry
solids is a way to remove yet another procedure: sludge incineration. For these customers, not only does PureDry recover waste fuel, it prevents fuel from being wasted. “To get three tonnes of sludge to burn, you typically have to add one tonne of diesel,” explains Kujala. “Customers would rather get fuel back with PureDry than use even more fuel to get rid of their waste.”
Equipment and services
Owners discover hidden benefits of Alfa Laval PureDry
The PureDry system eliminates liquid wastes as well as recovering usable fuel
57
Equipment and services
Corvus Energy clinches Energy Storage System contract with Scandlines
C
orvus Energy says it is to supply an additional 2.6MWh battery system to German-Danish passenger ferry company Scandlines – operator of the world’s largest battery hybrid electric ferry fleet. Scandlines’ fleet of battery hybrid ferries currently includes: the Deutschland, Schleswig-Holstein, Prins Richard and Prinsesse Benedikte, with two new ferries – the Copenhagen and Berlin – under
construction. Each vessel has between 1.5MWh and 2.6MWh of energy storage. Scandlines’ battery hybrid electric ferries provide a vital economic link between Denmark and Germany, with daily sailings on multiple routes between these countries. Scandlines ferries outfitted with a Corvus Energy Storage System (ESS) have been proven to significantly improve engine efficiency, leading to reduced greenhouse gas emissions, lower main-
tenance costs and significantly decreased fuel costs. “Scandlines is a key partner and we are pleased to support its pioneering efforts in expanding the world’s largest hybrid electric ferry fleet. Our industryleading energy storage technology supports Scandlines’ operational goals of increasing efficiencies and minimising the environmental impact of its vessels,” said Andrew Morden, president and CEO of Corvus Energy.
LR’s new large battery guide
U
K-based classification society Lloyd’s Register says its work in the laboratory and growing experience as a “market leader” on the water is helping operators save fuel and increase efficiency, while reducing emissions. LR says its experience with large battery installations is captured in a new guidance document, aimed at facilitating a risk-based approach to battery use. The guidance describes the key hazards to consider when installing battery technology, and gives an overview of its nonprescriptive approach to approval. The guidance also covers battery chemistry and industry standards.
The guidance starts at the beginning of a battery system’s lifecycle, when the cells are being manufactured, and goes on to consider how an installation affects or is affected by a vessel’s power system, placement on board, ventilation, fire-fighting, electrical protection and maintenance. The guidance aims to help industry consider the hazards associated with large battery installations, but is not specific to a particular cell chemistry. LR’s lead electrotechnical specialist, Louise Dunsby, says: “We aim to help industry establish a process for approving these installations, which will remain relevant regardless of the way battery technology evolves.”
She adds: “Advances in battery technology and energy management capability have rightly seen increasing interest in battery and hybrid power in the maritime industry. LR is involved in a wide range of projects, which aim to make batteries efficient, stable and commercially viable. LR’s work in the laboratory and, increasingly, on the water is helping shipowners save fuel and increase efficiency, while reducing emissions. Battery installations also give significant reductions in noise and vibration compared with traditional fuel-based power systems. LR is excited to be playing a part in developing battery technology for a future generation of hybrid or potentially even singlesource vessels.”
Bestobell Marine to supply Japan’s first high-pressure fuel gas system
B
estobell Marine, part of President Engineering Group Ltd, has received an order for its globe and check valves for Japan’s first high-pressure fuel gas system for a sea-going vessel. The company will supply a number of its cryogenic globe and check valves to be installed in two sister ships being built by Imabari Shipbuilding Group in Japan for Elcano. The valves are required for the carrier’s MAN ME-GI engines, where natural gas is injected into the engine at over 300 bar pressure. MAN has sold over 100 of these types of engines in the past two
58
years, driving a rapid increase in demand for high-pressure cryogenic valves for these fuel gas systems. Bestobell Marine is playing a major role in meeting the challenge created by this demand with its new range of high-pressure valves. The company has previously supplied its high-pressure valves for fuel gas systems for a variety of projects. These include five Teekay liquefied natural gas (LNG) carriers being built at Daewoo Shipbuilding & Marine Engineering in South Korea, two LNG carriers being built at Hyundai Heavy Industries Shipyard in South Korea for Knutsen OAS Shipping of Norway and three liquefied ethylene
gas (LEG) carriers to be built in China for Ocean Yield of Norway, which are the first to use ethane as a fuel. Bestobell valves will be used in Japan’s first marine high-pressure fuel gas system
World Bunkering Autumn 2015
Preview: LISW
London welcomes the world For a week in September, the UK’s capital will be showing off just how much of the world’s shipping action still takes place within a few miles of the Baltic Exchange and the Lloyd’s Building
L
ondon International Shipping Week (LISW) is being billed as the ‘must attend’ event of 2015 and takes place from 7-11 September. Actually, it is not an ‘event’. It is a gathering together within a few days of over 100 separate industry functions, and IBIA will be playing its part. The organisers say LISW provides unique networking opportunities for leaders across all sectors of the international shipping industry – regulators, charterers, shipowners, shipmanagers, bunker suppliers, lawyers, shipbrokers, bankers, insurers, insurance brokers, commodity traders and brokers, shipsuppliers, port operators, shipping service providers and many more. The idea of the week is to reinforce the message that the UK is the leading centre worldwide in the supply of a broad range of professional and business services to the international maritime community, accounting for 21% of premiums in international marine insurance, over $64 billion in committed ship finance (or 15% of the world loan book) and it has the largest concentration of legal service firms specialising in the sector. London is also the predominant supplier of shipbroking services worldwide and is the major player when it comes to maritime dispute resolution. London continues to be a
World Bunkering Autumn 2015
major port and trading hub too. The second biggest port in the UK, it is also home to the UK’s busiest inland waterway for freight, passengers and a centre for sporting events. London International Shipping Week is organised by Shipping Innovation – a joint venture between Elaborate Communications and Petrospot – in association with the Department for Transport, The Baltic Exchange, Maritime London, Maritime UK, the UK Chamber of Shipping, UK Major Ports Group, and TheCityUK, the independent promotional body for UK financial and professional services. The problem everybody will have during LISW will be choosing which events to attend. That however is not the case with IBIA’s contribution. It will be running a ‘must-attend’ forum on the Wednesday afternoon at the Baltic Exchange. “Bunkering with New Fuels – Building on Strong Foundations” is highly topical and already attracting a lot of interest. While the IBIA events, of course, focus on bunkering, many of the other events touch on issues of interest to the marine fuel sector. For example, the Maritime Foundation’s conference on the Tuesday, “International Trade – Cooperation, Competition and Confrontation in a Globalised Economy” at the Royal Society of Arts in London, includes a presentation on the “Cost of Limiting Ship Emissions”.
A major event of the week will be the one-day LISW conference and gala dinner on the Thursday. The conference will be held at the Grosvenor House Hotel, Park Lane, one of London’s most luxurious five-star hotels, where industry leaders and top government speakers will focus on London at the heart of maritime. Later in the evening, the gala dinner (preceded by a champagne reception) will also take place at the Grosvenor House Hotel.
Lloyd’s Building
59
Company news
Tranzit-DV Group Tranzit-DV Group is celebrating its 20th birthday with new achievements
T
he 20th anniversary of Tranzit-DV Group is a good chance to look back and recollect our past achievements. From its first days, the company developed rapidly, extending its geographic reach, setting ambitious goals for itself and achieving them. Since 18 July 1995, Tranzit-DV has grown from a small shipping company operating chartered vessels to a holding company comprising 10 companies and having its own fleet with a total deadweight of over 200,000 tonnes. As a matter of principle, it works only under the Russian flag, and has an oil terminal that has seen the volume of transshipment of petroleum products rise to 2.5 million tonnes per year and more. At present, Tranzit-DV Group is a holding company providing a wide range of services covering processing and supply of energy commodities, fleet bunkering and marine transportation. It is able to undertake any operations related to transshipment, storage and delivery of petroleum products and bulk
cargoes in any volume or direction through the use of its production facilities and highly skilled professionals. Also, the work of the JSC Vostokbunker oil terminal in Slavyanka (another member of the holding company) was internationally recognised when it was named International Congress Oil Terminal 2009 and 2013. The container terminal, also in Slavyanka port, enhances its capabilities with each new arrival of cargo. Today, Tranzit-DV is able to offer its customers the whole container port, plus specialist staff who will provide innovative logistics services for any transit containers: the containers are guaranteed to be delivered anywhere in the world “from door to door”, on time and with much care. Tranzit-DV is also celebrating new achievements on its 20th birthday: this year saw the launch of a road transshipment complex, offering a crane vessel with a deadweight of 1,700 tonnes, which is able to lift the containers up to 36 metres and 50 tonnes.
This resolves the problem of handling of handling road cargo and is the first stage in the creation of a multimodal transport and logistics complex. When implemented, this project will allow millions of tonnes of commercial cargo manufactured in SouthEast China to be shipped via Slavyanka to consignees all around the world. Igor Polchenko, president of Tranzit-DV Group, commented: “Russia is a maritime power with lots of ports and a long shoreline. It is also an oil-producing and oil-refining country. However, for a number of historical reasons, Russia was thrown into the background of international sea transportation traffic. “Today, Russia’s prospects in the sphere of development of shipping and bunkering are bright. Tranzit-DV Group is contributing to Russia’s integration into the world economy, and we are proudly sailing under the Russian flag to make our country an international maritime power.” ⏏
Vladivostok, Russia Tel: +742 3249 1199 E-mail: bunkers@tranzitdv.ru Singapore Tel: +65 6337 3341 +65 8518 6670 Seoul, Korea Tel: +82 2722 1123 +82 10 9690 6878 E-mail: lee@tranzitdv.ru E-mail: panchenko@tranzitdv.ru saenko@tranzitdv.ru Website: www.tranzitdv.com
60
World Bunkering Autumn 2015
Take advantage of Force Bunker’s reliable network offering competitive prices and excellent service
A
subsidiary of Fors Ikizler Denizcilik San. Ve Tic. Ltd. Sti, Force Bunker is located in the heart of Istanbul – a perfect location, which enables us to always be ready to react and assist, on time, controlling and checking the quality and efficiency of fulfilled operations everywhere we work. Force Bunker has been operating in the bunkering industry as a worldwide trader since 1999, and in the status of physical supplier in Turkey’s Marmara Sea Ports and Istanbul Anchorage area, working with SOCAR (the State Oil Company of Azerbaijan Republic) since 2013. We are also very pleased to announce that Iskenderun Bay now has ‘bunker only’ status under the most recent local maritime regulations. As SOCAR is the only physical supplier in the region, this will enable us to serve our customers more efficiently. With Force Bunker’s unchanging aim of “best quality, least price”, we continue to provide services as a trader at ports all over the world. We offer a reliable network with very competitive prices and excellent service, based on fluent exchange of information, reports and hand-over procedures.
In the past two years, Force Bunker has made a number of major investments in order to grow our fleet. Our last acquisition in November 2014 took our fleet up to four bunker barges, all of which operate under Force Bunker’s ownership: • M/T FORCE 1 (1.326 DWT, IFO&MGO) • M/T FORCE 2 (493 DWT, MGO) • M/T FORCE 3 (1.723 DWT, IFO&MGO) • M/T FORCE 4 (861 DWT, IFO&MGO) From our long experience of ship operations, Force Bunker is aware of the importance of supplying qualified fuel on time. Therefore, two larger bunker barges will be added to our fleet at the beginning of 2016 which these twin sisters will be the largest ones in our fleet. With quality always a top priority, Force Bunker only supplies products that meet International Organization for Standardization (ISO) quality standards. We also pay attention to protecting the environment and human health as well as focusing on customer satisfaction and smooth operations. In addition to our bunkering operations, our technical management service offers docking service, engine repair and auxiliary repairs by our experienced and trained staff. Our company has DOC from Russian
Maritime Register of Shipping and also Turkish Flag Authority for giving technical service of under operated vessels that complies with the International Safety Management (ISM) Code. We are very pleased to assist our customers in any of the following areas: • Bunker (any kind of marine fuel) supply • Transit and port agency service in Turkey • Lubrication oil supply • Fresh water, provision, technical, paint supply at the Istanbul anchorage for transit passages and at all Turkish ports • Technical services for any kind of repair • Sludge/slop collection • Diving support • Crew change • Motor boat and car service • Delivery services (cash to master, spare, mail and store) As a member of the Turkish Bunker Association and the International Bunker Industry Association (IBIA), it was a honour to welcome participants as sponsor of the welcome reception at the seventh International Istanbul Bunker Conference. Our new social media links are now up and running, enabling you to access the latest information on our company and the market. ⏏
Company news
Feel the FORCE
Force Bunker Salacak Mah. Bestekar Selahattin Pınar Sok. no: 112, 34668 USKUDAR- ISTANBUL /TURKEY Tel: +90 216 492 53 33 (pbx) Fax: +90 216 391 57 75 Email: forcebunker@ forceshipping.com Web: www.forcebunker.com : Force Bunker : Force Bunker : Force Bunker
World Bunkering Autumn 2015
61
Company news
SABT Marine Fuel African Solutions to Developing Africa’s Marine Fuel Supply Sector
O
62
ne of the key aspects of developing a sustainable, secure and thriving ‘Blue Economy’ in Africa is to see the growth of legitimate, efficient African-owned marine fuel operations supplying high quality fuel products at competitive prices to seafarers in African waters. This is the view of Jon Hughes, Managing Director of SABT, an African business operating in over 50 ports around the African coastline, and it reflects the objectives of the 2050 African Integrated Maritime (AIM) Strategy. Adopted by the African Union, the AIM Strategy highlights the importance of curbing illegal oil bunkering which creates losses of billions of dollars every year. The AIM Strategy also focuses on critical development of the continent’s maritime sector to increase international trade and maritime infrastructure, as well as competitiveness and job creation. “SABT has an African solution to providing professional marine fuel services,” Hughes comments, “For years now, we’ve proved that shipping around the African coastline can be safe, efficient, competitive and profitable. It’s the African way to leverage local expertise, tap into indigenous networks, build strong relationships and engage fully in resident partnerships so that the benefits of doing good, reputable business are widely experienced.” Africa’s coastline, including its islands, is over 26,000 nautical miles. Thirty-eight African countries are either coastal or island countries each managing a 200-nauticalmile zone with full fishing, gas and mineral exploitation rights. However, for many
decades, the bounties of those exploitation rights have fallen mostly into the hands of international maritime operators and criminals. Untold riches that would have substantially built African economies and contributed to improved quality of life continue to be lost on a daily basis. In its efforts to play a role in developing local marine sector industries, SABT works to provide a reputable and competitive alternative for the shipping market in African waters. “Unlike many international industry players who sit far offshore and dabble occasionally in the fast opportunities that arise in African waters, SABT has focused on becoming an African specialist in marine fuel supply. We focus on establishing long-standing relationships with local operators, transferring skills and knowledge, and increasing financial gains for legitimate local businesses which are otherwise hampered by lack of resources and overwhelmed by the trade in poor quality black-market oil products.” With more than 90% of Africa’s exports and imports conducted by sea, and the volume of global sea trade quadrupling over the last forty years, implementing the strategic plan to develop a sustainable ‘Blue Economy’ is now critical in order to channel the big business of the oceans into more African economies and hands. The AIM Strategy identifies fifty-two of Africa’s more than one hundred port facilities which handle containers and various forms of cargo. However, African-owned ships make up only 1.2% of world shipping by number and just 0.9% when it comes to gross tonnage. African ports currently handle
approximately 6% of the world’s sea-faring cargo traffic and only about 3% of the global container traffic. The opportunities for growth are clearly massive. Hughes says, “The growth of a legitimate, efficient, competitive African marine fuel supply sector is sorely needed to gain the confidence of the international shipping market and optimise the obvious development opportunities in Africa. Shipping is an industry fraught with risk and high expenses. You are not going to venture to places where you don’t feel sure that you can secure the quality fuel products you need, on time.” For the vision of creating substantial sustainable wealth from African waters to be become a reality, reputable and competitive African marine fuel supply businesses need multi-sectoral support from the African countries where they operate. The growth of professional, profitable local marine supply operations will enable them to take firm hold in the African shipping market and marginalise the illegal oil suppliers who currently dominate in many vital economic areas around coast, especially the Gulf of Guinea. ⏏
Tel: 00 27 21 551 9588 Email: bunkers@sabunker.com Follow us on Twitter: @SABTMarineFuel www.sabunker.com
World Bunkering Autumn 2015
Your reliable partner for bunkering operations in West Africa
E
nacol is a reliable supplier of highquality marine fuels and lubricants ,based in Cape Verde. Strategically located at the crossroads of midAtlantic main shipping routes connecting European-African-American’s busiest ports, we offer a safe, efficient and secure bunker service to all type of vessels. Enacol can deliver MGO (DMA) max. 0.1 % sulphur and a full range of highsulphur fuel oil from IFO-30cst to IFO380cst, as well as high quality Lubmarine lubricants. All fuels are compliant with Regulations 14 and 18 of Annex VI of MARPOL 73/78 and fulfil ISO 8217: 2010 specifications. Enacol is based mainly in the Port of Mindelo (Porto Grande), where we have our storage facilities and the centre of our logistical operations. In this port, located in the island of São Vicente, within a semicircular natural bay we can deliver by barge, truck or ex-pipe. Enacol also owns a supply station at Marina do Mindelo that supplies yachts and other recreational vessels.
Porto Grande offers perfect conditions for a safe, efficient and secure bunker operation – there are no piracy incidents in Cape Verdean seas. There is direct access for any type of vessel, assured 24/7 mooring services, competitive harbour rates and tariffs, no congestion and good weather conditions. Enacol operates two barges – Dragoeiro and Baía – to fulfill our clients need for a quick turnaround operation. M/T Dragoeiro has a load capacity of 700m3 of MGO and a pumping capacity of 200m 3/h, while M/T Baía has a combined load capacity of 281.9m3 of MGO and 743.9m3 of fuel oil. Our barges are equipped with Coriolis mass flow meters to ensure delivery of exact quantities, enhanced transparency, improved efficiency and cost effectiveness. The use of the mass flow metering system is an important step towards a more efficient and transparent bunker delivery process and the bunkering industry in Cape Verde.
Our company has plenty of experience in the region with a professional trading team available 24 hours a day, seven days a week to deliver high-quality services and products in a totally secure environment. We look forward to your bunker enquiries and hope to do business with you soon. ⏏
through transhipment and transportation, and, finally, to the client’s vessel. We supply fuel at the following ports in the Russian far east: Vanino, Kozmino, Vladivostok, Korsakov, Vostochniy, Nakhodka, Zarubino , Posyet and Slavyanka. All supplied fuel is compliant with the Russian GOST standards and technical specifications and ISO8217:2012 in case of supply to a foreign vessel. We possess certificates of the highest quality from all the leading independent surveying companies.
Mesos Ltd takes its civil liability very seriously and is committed to the highest social and health and safety standards, providing appropriate work conditions for its employees and environmental protection. We ensure a secure process when loading and unloading products and when undertaking other activities connected with ship maintenance and servicing. We also focus on environmental safety issues and prevention of oil spills. The ompany joined IBIA in 2015 ⏏
Company news
ENACOL– CAPE VERDE
For more information, contact: P. BOX 1, S.Vicente – Cape Verde Tel: (+238) 230 60 80 Fax: (+238) 232 34 25 Mobile: +238 9534354 E-mail: bunker@enacol.cv energia@enacol.cv Website: www.enacol.cv www.enacolbunkering.com
Mesos Ltd Bunker with confidence
S
ince its foundation in 2003, Mesos Ltd has accumulated the knowledge, experience, competence and skills required to provide quality bunkering and shipping services in the Russian far east. As an independent physical supplier, we aim to meet all our clients’ needs and conduct supply operations to the highest standards. We provide a service to our customer that requires sophisticated logistical operations designed to meet their strict fuel quality and delivery scheduling needs. In the Russian far east bunker market, we are well known for our reliability, strict but well balanced work standards and extended data base for strategic partnerships. Our team of highly experienced professionals applies a personal approach in dealing with clients, offering competitive rates and 24/7 service to satisfy customers’ requests. The quality of supplied fuel to our customers’ fleet is the highest priority to our company. That is why we strictly monitor the whole process of delivery at every stage, from the depot storage facility,
World Bunkering Autumn 2015
General director Alexei Peredera
MESOS Ltd Admiral Fokin Street 8/1B, Vladivostok, Primorskiy region, Russia 690091 Tel: +7 (423) 240-64-91 Fax: +7 (423) 240-66-98 E-mail: office@mesos.su Website: www.mesos.su
63
Company news
Oktan Energy & V/L Service A leading Polish physical bunker supplier that you can rely on
W
e offer top-quality ultralow-sulphur marine gas oil (ULS MGO) max 0.1%, meeting the specifications of ISO8217:2012, with density ranging from 0.825 to 0.890/CBM. Oktan Energy & V/L Service was established in 1997, mainly as a trader and supplier of heating and diesel oil in Poland. In 2002, we increased our range of products, selling LS MGO DMA marine fuel, and shortly after became the main physical supplier for inland river shipping and fishing boats. At the end of 2004, we expanded our business activities on the international market and became a physical supplier of LS MGO DMA for deep-sea vessels. Since 2004, we have developed close relationships with major fuel traders and brokers all over the world. Oktan Energy & V/L Service is a private and truly independent company. Currently, we boast 15 KMT storage tanks at Spółdzielcze berth in Szczecin.
Our impressive fleet consists of 23 road tankers, one coaster and five bunker barges at the main Polish ports: Szczecin – Świnoujście and Gdańsk – Gdynia. Additionally, we have two petrol stations for fishing boats in the ports of Kołobrzeg and Władysławowo. Our fleet meets all the required standards and specifications. We pride ourselves on providing professional, cost-effective and reliable services 24 hours a day, seven days a week and 365 days a year. Well developed logistics allows fast deliveries, excellent availability and full operations back-up. Our high-quality products are always confirmed by a certificate issued by specialised laboratories, following the examination of fuel samples. Our young, highly skilled and experienced team offers extensive bunkering knowledge, total comprehension of our clients’ needs and versatile solutions tailored to the customer’s demands. ⏏
OKTAN ENERGY & V/L SERVICE Sp z o.o. Bunker department Tel: +48 (0)918 142151 / +48 (0)918 142111 E-mail: bunker@oktan-energy.pl
www.worldbunkering.com
www.maritimesecurityinternational.net ASiAn focuS
on Longchamp DEciSi owners Blow for cargo
International
www.maritimesecur
Maritime Security
ityinternational.net
by armed gangs Small tanker hijacks South-East Asia are escalating in
RAnSoM MoVE
legislation may New UK terrorist payments impact on ransom
Winter 2014
Fighting
Ebola n in Africa will The ebola situatio year impact far into next
SUMMER 2 015
SUMMER 20 15
COMPRE HENSIV E
COVERA GE
OF
THE
SHIPPIN G
INDUST RY
w w w . w o r l d - s h i p p i n g . n e t
Winter 2014
WORLD SHIPPING
– ALTERNATIVE
–
– MISSIONS FOCUS
–
Jonathan Lux, mediator, arbitrator and barrister with Stone Chambers
GOING GREEN WO R L D S H I P P ING
What’s the price?
www.world-shipping.net 64
FUELS –
Competitive LNG for Canada
– SHIP BUILDING
Tough Times for Far East yards?
Maritime Media specialises in producing magazines under contract for major shipping organisations as well as it’s own titles. These publications are authorative in their fields and are backed by a full specialised editorial and production team.
www.mar-media.com World Bunkering Autumn 2015
Cancun
IBIA Annual Convention 2015 Delegate Registration Opens on 1 July Sponsorship bookings available NOW!
The Americas: A Continent of Opportunities Featuring the Gulf of Mexico - a dynamic bunkering powerhouse Cancun, Mexico 2-6 November 2015
Next issue
WORLD BUNKERING WINTER 2015 ISSUE Blending Our annual survey of the blending scene. We look at how suppliers are using blending to comply with ECA suplhur-infuel limits
Fuel Additives Fuel additives are being used by an increasing number of ship operators. We look at the benefits additives can bring.
Barge Design Bunker tanker fleets worldwide are being renewed. We report on the latest developments and also look at progress on designing and building LNG tankers.
Geographical Focus 1: Africa An in-depth feature on developments around the continent. We ask: “Can South African ports increase their volumes supplied to vessels passing the Cape.
Geographical Focus 2: Australia Environmental pressures are building up in Australia with calls for the country's port to impose California-style emissions regualtions
Russian Update News, Views, Analysis
Regular Features AUTUMN 2015
Interview, Industry News, Environment, Testing, LNG, Lubricants, Risk Management, Innovation, Legal News, Equipment and Services, Diary Event Previews & Reviews
AUTUMN
WORLD
CLIM T E CHANAG E CONFER E
BUNK
Showdo
NCE
ERING
wn in Pa
INSIDE THI
S ISSUE:
Scrubbers - doubts and develop New guid ments ance on LNG OW Bunker - going to court
ris?
THE ONLY OF FIC MAGAZIN IAL E OF
www.worldbunkering.com World Bunkering Autumn 2015
67
2015
Diary
07 September 2015
AN INTRODUCTION TO LNG BUNKERING – LONDON This one-day seminar/training course, An Introduction to LNG Bunkering, is designed to bring delegates up to speed with the technical, operational, practical and safety-related aspects of using LNG as a source of fuel for ships.
www.petrospot.com/lisw15-lng-profile
07-11 September 2015
LONDON INTERNATIONAL SHIPPING WEEK LISW offers over 100 industry functions and unique networking opportunities for leaders across all sectors of the international shipping industry – regulators, charterers, ship owners, ship managers, bunker suppliers, lawyers, ship brokers, bankers, insurers, insurance brokers, commodity traders and brokers, ship suppliers, port operators, shipping service providers and many more.
www.londoninternationalshippingweek.com/overview
08 September 2015
05-06 October 2015
LNG FUEL FORUM 2015 STOCKHOLM A critical opportunity to examine the pricing, infrastructure and operational viability of LNG as a marine fuel.
www.informamaritimeevents.com
07-09 October 2015
INDONESIA MARITIME EXPO – JAKARTA IME is the most anticipated exhibition and conference in Indonesia for the world's maritime players. It's where you need to be to connect with 4,105 decision makers, shipowners, shipbuilders and other key players.
www.maritimexpo.co.id
12-15 October 2015
A BUNKERING HUB, DRIVING THE OCEAN ECONOMY – MAURITIUS An IBIA regional forum consisting of 2 days training and a 1 and a half day forum culminating in a half day port tour.
THE 2ND INTERNATIONAL SHIPOWNING AND SHIPMANAGEMENT SUMMIT – LONDON This one day summit will examine the strength of the relationship between ship owners and third party managers.
www.londoninternationalshippingweek.com/event/the-2nd-annualinternational-shipowning-shipmanagement-summit/
09 September 2015
BUNKERING WITH NEW FUELS – BUILDING ON STRONG FOUNDATIONS - LONDON IBIA present a thought leading forum on new fuels. The two-hour forum includes presentations and a question and answer session followed by a drinks reception.
http://ibia.net/event/bunkering-with-new-fuels/
10-11 September 2015
www.ibia.net
15-16 October 2015
ARACON 2015 – ROTTERDAM The stand-out bunker conference and exhibition for the AmsterdamRotterdam-Antwerp region! ARACON 2015 will deliver a strong programme featuring the latest technical, commercial and environmental issues facing our industry today.
www.petrospot.com/profile-aracon-15
02-05 November 2015 IBIA CONVENTION – CANCUN
The IBIA Annual Convention is coming to the Americas with a top class two-day conference, The Americas: A Continent of Opportunities, that will examine the most critical bunkering issues of the day and will also highlight the dynamic bunkering powerhouse that is the Gulf of Mexico.
www.ibia.net
8TH ASIA BUNKER FORUM – SINGAPORE Asia Bunker Forum is an international industry event, covering all the major bunker markets in Asia like Singapore, China, UAE, Japan, Korea and India, etc.
abf.cbibiz.com/51404/index.html
23-25 September 2015
03-06 November 2015 EUROPORT – ROTTERDAM
Europort has a strong focus on special purpose ships including offshore vessels, dredging vessels, construction vessels, naval vessels, workboats, inland vessels, fishery vessels and super yachts.
www.europort.n
INMEX INDIA SMM – MUMBAI INMEX-SMM India is the number one meeting place for the maritime and shipping community in South Asia. The event attracts over 650 exhibitors from around the world including international pavilions from Germany, Singapore, Holland, Norway, Korea, Finland, and The Netherlands.
inmex-smm-india.com
27-30 October 2015
25-26 November 2015
PLATTS 4TH ANNUAL MEDITERRANEAN BUNKER FUEL CONFERENCE – BARCELONA Platts Mediterranean Bunker Fuel Conference will assemble the region’s leading bunker fuel suppliers, traders, brokers, refiners, ship operators, owners, and other marine fuel industry organizations to discuss the changing landscape of the region.
www.platts.com
GASTECH – SINGAPORE
One of the world’s largest and most prestigious LNG and natural gas conferences and exhibitions, Gastech, is coming to Singapore in 2015, reflecting the country’s growing strategic importance as a regional hub for the Asian gas market.
www.gastechsingapore.com
05-08 October 2015
BUNKEREXPERIENCE 2015 – THE NETHERLANDS All inclusive, intensive bunker course, with a perfect mix of theory in the morning and real practise in the afternoon. Starting with a welcome dinner on Monday, followed by A Barge Day, A Lab Day and a Port Day.
www.bunkerexperience.com
68
01-04 December 2015
MARINTEC CHINA – SHANGHAI With increasing worldwide recognition and reputation throughout the past three decades, the exhibition is attracting an increasing number of high-profile exhibitors and visitors from around the world.
www.marintecchina.com
16-18 March 2016
ASIA PACIFIC MARITIME – SINGAPORE Meet 15,000 decision makers, shipowners, shipbuilders and other key players from the maritime and offshore community in 3 days.
www.apmaritime.com
World Bunkering Autumn 2015
ADVANCING MARITIME LEADERSHIP
Register now for a free visit! www.europort.nl/ registration
www.europort.nl
Looking for the latest innovations in ship efficiency, technological leadership, new market opportunities and human capital? Visit Europort and get in touch with industry leaders from all over the world. Join one of the many conferences and social events. For more information and registration for a free visit check www.europort.nl.
Supported by
Conference partners
BRAZIL EMBASSY
Organised by