EMEA News
Glander Sees Alternative Bunker Fuel Demand Emerging in Middle East
Alternative bunker fuel inquiries have started to emerge in the Middle East in recent months, according to global marine fuels firm Glander International Bunkering.
The firm has worked on several alternative fuel inquiries in the region so far this year, Sean Burgin, head of sourcing at Glander, said in a LinkedIn post this week.
Fujairah is the world's third-largest bunkering location after Singapore and Rotterdam, but while markets for LNG and biofuel blends have started to build up at those two ports, activity has been less prominent at the Middle Eastern hub so far.
"Yes, we are seeing a slower shift to new fuels in the Middle East and there is also reluctance to commit capex on new fuels, and new vessels regulations in the Middle East compared to the EU are a bit slow off the mark, but we'll still be seeing new fuels penetrating the market," Burgin said.
"Just this year our company has already worked a number of new fuel inquiries."
Competition between ports in the region is likely to drive change, Burgin added.
"It's important to note that we are seeing pressure for the Port of Fujairah to evolve if it wants to remain a hub," he said.
"Ports like Yanbu, Damman and Djibouti are all ramping up their efforts to become more prominent.
"New fuels, vessel and port Technologies, along with efficient port turnarounds, will all become important factors.
"Saudi Arabia and the UAE are leading the way in the region due to their economic growth; there is the construction boom, populations rising and the significant investments in the region.
"This is seeing a large number of increased vessel calls to sustain all of this growth, which in turn will see higher bunker demand.
"It will be interesting to see the exciting changes that we will all witness together in the Middle East in the coming years."
