Americas News
INTERVIEW: Monjasa Seeks to Become Panama's First Biofuel Bunker Supplier
Global marine fuels firm Monjasa is ready to become the first supplier to sell biofuel bunker blends in Panama.
The company has sourced a finished B30-VLSFO blend from Europe and is ready to supply as much as 5,000-7,000 mt/month of it in Panama, Jonas Bruslund, general manager for Latin America at Monjasa, said in an interview with Ship & Bunker on Wednesday. The bio component of the blend is from used cooking oil.
Over time the company hopes to increase capacity and offer a wider range of grades and blend ratios to meet demand.
"From the get go, we will only be offering a B30-VLSFO blend," Bruslund said.
"This is the blend ratio we have seen the most interest for in both Peru and Colombia, so we feel confident that this product will be suitable for the majority of the customers looking for biofuel in the region."
The company expects global regulatory changes for shipping to drive increased demand for biofuels.
"As we enter 2025, we anticipate rising demand for biofuel driven by regulations like the CII and Fuel EU Maritime," Bruslund said.
"We expect this demand to be higher in Panama compared to other parts of Latin America, given its larger market and the diverse trade routes passing through the Canal."
Panama Catches Up on Alternative Bunker Supply
Biofuel markets at hubs other than Rotterdam and Singapore have been slow to emerge thus far.
Rotterdam saw a total of 633,902 mt of biofuel blends sold in the first three quarters of 2024, while Singapore recorded 876,200 mt for the year as a whole.
In Panama's case, the availability of feedstock has been an issue in setting up this market, Bruslund argued.
"Introducing biofuels to Panama has been a slower process compared to major hubs like Singapore or Rotterdam, primarily due to challenges with local feedstock and customer commitments," he said.
"However, we have now developed a viable strategy with one of our longstanding business partners to bring our product from Europe.
"We are optimistic that this approach will generate the necessary traction to maintain a consistent flow from overseas.
"We aim to improve market conditions for our stakeholders by making this product available in Panama, expecting it to be another push in the right direction.
"The Panama Canal authorities have a strong agenda to push these green initiatives and we are very proud to play an active role in that."
Demand from Multiple Segments
While container lines make up a significant share of traffic passing through the Panama Canal, Monjasa also expects to see biofuel demand there coming from other segments.
"We have observed demand from various segments of the shipping industry," Bruslund said.
"Initially, container liners urged us to make it available in Colombia.
"Since then, we have primarily supplied Ro-Ro vessels and recently started serving the cruise segment.
"In Peru, the bulk segment has been predominant, with several mining companies keen on advancing the green agenda.
"With this interesting mix, we are excited to see what opportunities will arise in Panama."
About Jack Jordan
Jack Jordan is the Managing Editor of Ship & Bunker, the world’s most read marine fuel-focused publication.
He is an experienced financial editor and reporter with a first-class degree in Arabic and Russian, a postgraduate diploma in newspaper journalism and several years' history of covering the oil and shipping industries and capital markets.
Jack is based in London, UK.
About Ship & Bunker
Ship & Bunker is the world's most read publication focused on the marine fuel markets. Completely independent, it is the leading industry authority providing comprehensive daily news, exclusive in-depth features and analysis, along with daily & historical bunker price indications.
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