EMEA News
Soyuz Bunkering Expands Physical Operations in Rotterdam
Soyuz Bunkering Group (SBG), who in January started operations in Rotterdam, Singapore, Dubai, and Hong Kong, has recently expanded its physical operations in the ARA region, the bunker supplier has told Ship & Bunker.
"We've been physical from Rotterdam for 6 months now," said Chief Operating Officer Chris Todd.
"In partnership with our barge operator, Dari BV, we started with a low sulfur barge and a gasoil barge, and last month took on a 4,000 metric tonne (mt) high sulfur (HSFO) barge."
"We're seeing a lot of demand and did 30 to 40 supplies in the first 2 weeks with our HSFO barge. The volumes have been generally good on all grades, and the margins have been as expected," he said.
Some players have recently said the ARA market has been difficult, but that isn't a view shared by Todd.
"But we aren't driven by volumes, we're going where we see the margins," he explained.
"Of course you've got to be aggressive, especially when you're new. But I think we've got the right balance, and I think we can now say we're an established supplier."
From January 1, 2015, the maximum sulfur content of marine fuel for vessels operating within Emissions Control Areas (ECAs) will drop from the current 1.0 percent by weight down to 0.10 percent, a change that will make 1.0 percent low sulfur bunkers obsolete.
Earlier this year, OW Bunker's Adrian Tolson, General Manager - North America, warned that low sulfur bunkers may be unobtainable in the second half of 2014 as "nobody wants an obsolete product line."
Most shipowners have said that next year they will switch to distillate fuel for compliance, although other fuel based options for compliance are emerging such as ExxonMobil's recently launched HDME 50.
Asked how the regulation changes would impact Soyuz Bunkering's supply operations in Rotterdam, Todd said he wouldn't have to make a decision on that until November as shipowners won't be looking to switch away from 1.0 percent product until as late as possible.
"For obvious reasons it will be a last minute thing," he said, "and it might even drag into next year, subject to how it's policed and what penalties are put in place for noncompliance."
