Asia/Pacific News
Bunkering at Mumbai Outer Port Limits to Resume at End October, Beginning of November
A Mumbai Port Trust official Tuesday said Outer Port Limits (OPL) bunkering at India's Port of Mumbai is expected to resume by the end of October or early November, likely continuing until the start of monsoon season around the middle of May 2017, Platts reports.
"We are still awaiting approval from customs, but it's looking very positive and will most likely start in the next couple of weeks," said the official.
"We want to encourage bunkering as there are tremendous [bunkering] opportunities between the Gulf and Far East."
OPL bunkering is noted to have been banned in Mumbai during 2015's fourth quarter of 2015, resulting in numerous vessels sailing down the coast to the Port of Kochi, which is said to currently have a bunker sales volume of 15,000-20,000 metric tonnes (mt) per month.
Meanwhile, Mumbai's own bunker volumes are reported to have declined from 25,000-30,000 mt per month a year ago - with an estimated 10,000-15,000 mt of that volume supplied at OPL - to the current 8,000-10,000 mt per month.
Trade sources say the resumption of OPL bunker will likely lead to a 5,000-6,000 mt per month rise in sales volumes at Mumbai.
The Mumbai Port Trust official noted that Mumbai OPL bunkering will present competitive pricing, and allow vessels to avoid charges, including registration and berth fees.
"The bunker fuel price might be $1-$2/mt higher than inside the port, but overall the cost will be very reasonable," said one trader, with another trader noting that resumed OPL bunkering will also increase efficiency through reduced wait times.
