Singapore bunker sales rise by 5pc in 2020

Market: Oil products
14/01/21

Singapore's sales of marine fuels in 2020 increased by 5pc on the year to 49.83mn t, according to preliminary data from Singapore's Maritime and Port Authority (MPA).

This is the second highest annual sales on record. Singapore, the world's largest bunker port, saw sales of 50.64mn t in 2017.

Singapore has had an outstanding year in 2020 despite Covid-19 disruptions and the International Maritime Organization's sulphur cap.

The uncertainty regarding fuel quality and availability of the new very-low sulphur fuel oil (VLSFO) grade, as well as the logistical challenges posed by the spreading virus, has boded well for the global hub and cemented its status as one of the most reliable, efficient and well-regulated refuelling centres.

"The bulk of the increase has come from VLSFO rather than low-sulphur gasoil (LSMGO) last year, with most of the top suppliers in Singapore now selling both grades", said a local bunker trader.

Most ship owners without scrubbers have opted to burn VLSFO rather than LSMGO, due to the grade's properties and cheaper relative prices.

"Unlike other ports such as Hong Kong, Singapore allowed crew changes during Covid-19, which definitely helped to pull in more demand for bunkers here", said a local supplier.

"A lot of extra volume also came from non-licensed suppliers using barge operators' bunker delivery notes, such as Sinopec, Petrobras, PetroSummit and Pertamina," said a second local trader.

The bunker market in Singapore is undergoing structural changes, as the difference between the cargo, storage and retail markets is increasingly blurred. "Pure independent suppliers have become logistics providers and this will be the theme going forward", said a third local trader.

An estimated 40,585 vessels called at Singapore to refuel in 2020, down slightly from 40,909 in 2019, according to MPA data. Total sales at the port rose because the average stem size increased to 1,228t in 2020, from 1,160t in 2019.

The gross tonnage of bulk carriers visiting Singapore in 2020 increased by 5.3pc on the year and that of tankers rose by 8.9pc, according to MPA data. But the tonnage of containers shrank by 3.91pc and that of passenger vessels fell by 41.1pc, as Covid-19 halted the cruise industry.

"Container vessel calls were down because of the impact of blankings (cancellation of voyages) due to the corona pandemic from Lunar New Year through to mid-3Q but now the situation is completely reversed with in principle all container vessels employed and sailing at increased speed", said one local buyer.

The consumption of bunker fuels in December edged up by 27,000t to 4.29mn t compared to November, but it was down by 176,000t from the same month in 2019.

Sales of VLSFO rose by 2.83mn t on the month to 2.93mn t in December. Demand for VLSFO with a maximum viscosity of 380cst, 180cst and 100cst stood at 2.1mn t, 220,000t and 609,000t, respectively.

"Bunker sales in Singapore in December are up because of cold weather impacting operations in China, South Korea and the Russian Far East", said another local buyer.

LSMGO sale volumes declined by 29,000t on the month to 295,000t in December.

Sales of high-sulphur fuel oil (HSFO) in December exceeded 1mn t for the third straight month, at 1.02mn t. This is down slightly from 1.06mn t in November. About 25pc of barrels sold in Singapore are of the high-sulphur grade, which shows that the port remains a key refuelling destination for vessels with scrubbers.

Argus reported a daily average of 14.5 spot bunker deals in December. This is 9.5 deals for VLSFO, three for LSMGO and two for HSFO.

Singapore's delivered VLSFO, LSMGO and HSFO prices averaged $388/t, $420/t and $311/t, respectively, in December, up from $350/t, $365/t and $294/t in November, according to Argus data, as vaccine rollouts in developed markets boosted crude prices and sentiment.

By Sammy Six

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Cop: Drafts point to trade-off on finance, fossil fuels

Baku, 22 November (Argus) — The new draft on the climate finance goal from the UN Cop 29 climate summit presidency has developed nations contributing $250bn/yr by 2035, while language on fossil fuels has been dropped, indicating work towards a compromise on these two central issues. There is no mention of fossil fuels in either the new draft text on the global stocktake — which follows up the outcome of Cop 28 last year, including "transitioning away" from fossil fuels — or in the new draft for the climate finance goal. Developed countries wanted a reference to moving away from fossil fuels included, indicating that not having one would be a red line. The new draft text on the climate finance goal would mark a substantial compromise for developing countries, with non-profit WRI noting that this is "the bridging text". Parties are negotiating the next iteration of the $100bn/yr that developed countries agreed to deliver to developing nations over 2020-25 — known as the new collective quantified goal (NCQG). The new draft sets out a figure of $250bn/yr by 2035, "from a wide variety of sources, public and private, bilateral and multilateral, including alternative sources". It also notes that developed countries will "take the lead". It sets out that the finance could come from multilateral development banks (MDBs) too. "It has been a significant lift over the past decade to meet the prior, smaller goal... $250bn will require even more ambition and extraordinary reach," a US official said. "This goal will need to be supported by ambitious bilateral action, MDB contributions and efforts to better mobilise private finance, among other critical factors," the official added. India had indicated earlier this week that the country was seeking around $600bn/yr for a public finance layer from developed countries. Developing countries had been asking for $1.3 trillion/yr in climate finance from developed countries, a sum which the new text instead calls for "all actors" to work toward. The draft text acknowledges the need to "enable the scaling up of financing… from all public and private sources" to that figure. On the contributor base — which developed countries have long pushed to expand — the text indicates that climate finance contributions from developing countries could supplement the finance goal. It is unclear how this language will land with developing nations. China yesterday reiterated that "the voluntary support" of the global south is not part of the goal. The global stocktake draft largely focuses on the initiatives set out by the Cop 29 presidency, on enhancing power grids and energy storage, though it does stress the "urgent need for accelerated implementation of domestic mitigation measures". It dropped a previous option, opposed by Saudi Arabia, that mentioned actions aimed at "transitioning away from fossil fuels". Mitigation, or cutting emissions, and climate finance have been the overriding issues at Cop 29. Developing countries have long said they cannot decarbonise or implement an energy transition without adequate finance. Developed countries are calling for substantially stronger global action on emissions reduction. By Georgia Gratton and Prethika Nair Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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