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INDEPENDENT INTELLIGENCE FOR THE GLOBAL BUNKER INDUSTRY www.bunkerspot.com Volume 8 Number 1 February / March 2011 Inside: • Shipping Markets • Bunker Metering • Emissions Monitoring • Education and Training • People and Places • News and Events READY FOR ACTION: Supplying the US Navy Contents NEWS Bunker Overview 4 Europe 8 Head Office: Americas 14 Petrospot Limited Africa and Mideast 18 Petrospot House Somerville Court Asia Pacific 22 Trinity Way Adderbury FEATURES Oxfordshire OX17 3SN England MARKET TRENDS Tel: +44 1295 81 44 55 Fax: +44 1295 81 44 66 Félix Yamasato of Lloyd’s List Intelligence looks at what 2011 holds in store for the Email: [email protected] shipping industry 26 Website: www.bunkerspot.com Chris Thorpe of HCEnergy looks at the changing nature of the fuel market 28 Director - Publishing / Editor Ian Taylor BUNKERSPOT WORLD MAP Mob: +44 7876 70 45 41 Global prices and news at a glance 30 Email: [email protected] Managing Director / Publisher FUEL PROCUREMENT Llewellyn Bankes-Hughes Susan Lowe, from DLA Energy Public Affairs, gives a status report on the US Mob: +44 7768 57 44 30 Government fuel card programme 32 Email: [email protected] Associate Editor BUNKER HEDGING Lesley Bankes-Hughes Major oil consumers are feeling more optimistic and confident about hedging tools, Mob: +44 7815 57 86 43 argues Global Risk Management’s Morten Henriksen 36 Email: [email protected] Advertising Sales Executive TECHNICAL ISSUES Steve Simpson Mob: +44 7800 75 52 78 Christopher Mills of TUV NEL looks at some of the considerations that arise from Email: [email protected] using Coriolis meters for bunkering 37 Director - Events BUNKER BLENDING Luci Llewellyn-Jones Mob: +44 7775 92 42 24 Jon Moreau of Jiskoot looks at recent advances in in-line blending technology Email: [email protected] for the bunker market 40 Events Manager Stacey Smith ENVIRONMENTAL ISSUES Email: [email protected] Chris Daw of Kittiwake Procal explains the growing importance and benefits of Administration Assistant in-situ continuous emissions monitoring 44 Hannah Whitty As the maritime industry becomes increasingly aware of the importance of eco-safety, Email: [email protected] JLMD Ecologic Group discusses the development of its Fast Oil Recovery System 46 Events Sales Executive Don Gregory of the EGCSA predicts what might be the hot environmental Osei Mitchell topics of 2011 50 Mob: +44 7789 20 20 10 Email: [email protected] SPOTLIGHT ON SRI LANKA Events Sales Executive Navin Perera of GAC Bunker Fuels looks forward to new developments in Sri Lanka’s Nicholas Leader bunker market 52 Mob: +44 7771 54 03 82 Email: [email protected] EDUCATION AND TRAINING Events & Subscriptions Sales Executive Llewellyn Bankes-Hughes looks at training courses and books designed to enhance Elena Melis knowledge levels within the maritime industry 54 Mob: +44 7975 89 52 03 Email: [email protected] EVENTS Events & Subscriptions Sales Executive Louise McKee Events and training course diary 56 Mob: +44 7951 70 31 03 Email: [email protected] NETWORKING Accounts Bunker people on the move 58 Helen Wilkins Email: [email protected] Bunkerspot is an integrated news and intelligence service for the international bunker industry. The bi-monthly magazine and 24/7 electronic news Magazine Layout & Production service, www.bunkerspot.com, both provide highly-specific information on all aspects of the marine fuels industry. Bunkerspot Magazine (published Alison Design and Marketing Ltd in February, April, June, August, October and December) annual subscription rate, including unlimited access to the website www.bunkerspot.com, is Email: [email protected] UK£250/€280/US$400. ISSN 1741-6981. Copyright Petrospot Limited © 2011. All rights reserved. Published by Petrospot Limited, a dynamic independent Web: www.alison.co.uk publishing, training and events organisation, focused on providing information resources for the transportation, energy and maritime industries. Disclaimer: Bunkerspot is an editorially independent magazine and electronic news information service. The information contained in the magazine and website is presented in good faith. Opinions expressed are not necessarily those of Petrospot Limited, which does not guarantee the accuracy of the information contained in Bunkerspot. Nor does Petrospot accept responsibility for errors or omissions or their consequences. No part of Bunkerspot may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photographic, recorded or otherwise, without the prior written permission of the publisher. Visit www.petrospot.com bunkerspot February / March 2011 www.bunkerspot.com 3 0706 bunkerspot v6i6.indd 2 02/12/2009 16:05 Bunker Overview 12 month rolling price charts 600 Houston 380 380 CST Fuel Oil Singapore 380 600 Houston 380 Fujairah 380 Singapore 380 500 Rotterdam 380 Fujairah 380 500 Rotterdam 380 PRICE $/tonne 400 FMAMJJASONDJ 400 FMAMJJASONDJ Marine Diesel Oil 900 Houston MDO Singapore MDO 900800 Houston MDO Fujairah MDO Singapore MDO 800700 Rotterdam MDO Fujairah MDO PRICE $/tonne 700600 Rotterdam MDO 600500 FMAMJJASONDJ 500 FMAMJJASONDJ Egyptian crisis sparks oil market jitters All eyes were on Egypt as this issue of 2009, was said to command strong support momentum. Of course, it is not just the short- Bunkerspot went to press. As the anti- from within the military community. But his term supply hiccups that are giving investors government protests were building up a head appointment did nothing to appease the the jitters. If there is a regime change in Egypt, of steam at the end of January, President protesters thronging the streets of Cairo. the new government will probably bring in Hosni Mubarak instructed his new Prime Mubarak was offering vague promises economic policies that will push up the price Minister Ahmed Shafiq to open the lines of of economic reform – but there was a sense of oil. Furthermore, this could spark similar communication with the opposition. of ‘too little, too late’. Furthermore, it is likely changes in other Middle East, Maghreb and The protesters massing in central Cairo, that nothing that he can offer will be enough. Islamic countries. however, were in no mood to let Mubarak When item number one on the protesters’ Goldman Sachs encapsulated the fears dictate the pace. Calls were going out for an list of demands is ‘regime change’, there on Wall Street: ‘Although we see the risk of indefinite strike and a ‘million man march’ to probably isn’t much point negotiating over the political contagion as relatively low in the show the depth of opposition to the teetering rest. Mubarak also appeared to be losing the more affluent countries, financial contagion 30-year regime. Observers and media pundits backing of the overseas allies who bolstered has already spread to these regions, raising speculated that Mubarak’s ability to hold on his position with billions in military aid over the the cost of production. If these countries feel would be determined by the will of the military. years. With US President Barack Obama and compelled to increase spending in the face of Mubarak, himself a former chief of the Air his Secretary of State Hillary Clinton already greater political pressure, it could lead to a rise Force, tried to improve his chances in this talking about ‘an orderly transition’, the writing in the oil price required to balance budgets in regard by appointing Shafiq as Prime Minister seemed to be on the wall. these countries.’ and Omar Suleiman as his Vice President Crude oil prices were already on the rise in As we mention above, oil prices had and possible successor. Suleiman, a former January – but fears about possible disruption already been moving upwards before the intelligence director who was credited with an to tanker shipments in the Suez Canal and the Egyptian crisis. In the bunker market, the important role in securing the ceasefire that flow of oil through the Suez-Mediterranean price of 380 centistoke (cst) bunker fuel had ended the Israeli military offensive in Gaza in (Sumed) pipeline gave them even more increased by around $20 a tonne or more in 4 www.bunkerspot.com February / March 2011 bunkerspot Bunker Overview most of the world’s main ports in January. December January The upward trend was most pronounced in 380 IFO 29-03 06-10 13-17 20-24 28-31 03-07 10-14 17-21 24-28 the Asia Pacific, where the delivered price of 380 cst bunker fuel in Singapore jumped Rotterdam d 477 481 482 493 493 502 512 513 513 from around $500 a tonne to more than $540 Gibraltar d 486 486 491 502 511 512 524 524 528 a tonne during the course of the month. The Piraeus d 484 485 483 496 498 508 517 523 527 price of marine diesel oil (MDO) had also been Suez d 521 515 515 521 536 536 547 540 556 on the rise. In Fujairah, the delivered price of Fujairah d 497 504 502 508 516 525 534 545 555 MDO came close to hitting $600 a tonne by Durban w n/a n/a n/a n/a n/a n/a n/a n/a n/a early February. On 20 January, Global Risk Management Tokyo d 531 542 551 550 550 558 569 567 577 announced that it had hiked its oil price Busan d 514 529 533 537 537 554 555 564 568 expectation for 2011, citing ‘fundamentals’ as Hong Kong d 509 512 512 516 525 529 536 549 553 the primary reason. Singapore d 488 495 494 502 503 516 524 538 543 ‘Although there is plenty of crude oil supply, Los Angeles w 505 523 529 544 541 551 545 554 544 a potential lack of distillates and gasoline Houston w 476 490 488 499 499 505 517 514 514 supply is likely to push up crude prices,’ New York w 485 496 495 506 506 515 521 521 516 commented Global Risk Management.