Emergence Of Biofuel-Blended Marine Gasoil In Singapore’s Bunkering Industry

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  • GS Caltex Singapore made its first sale of biofuel-blended gasoil.
  • Expanding supply chain for lower carbon fuel globally.
  • Increases bio-blended MGO supply.

GS Caltex Singapore Pte Ltd recently made its first sale of biofuel-blended marine gasoil to Maersk Oil Trading (MOT) in Singapore’s bustling bunker hub. This marked a step towards expanding their supply chain for lower carbon fuels globally, reports Reuters.

International Sustainability

In this groundbreaking transaction, GS Caltex delivered 1,000 metric tons of marine gasoil blended with 24% Used Cooking Oil Methyl Ester (UCOME) to MOT’s bunker barge on an ex-wharf basis. This biofuel, termed B24 or bio-MGO, was subsequently supplied to Maersk’s container ships at Tanjung Pelapas in Malaysia.

GS Caltex strategically leased 10,000 cubic meters of biofuel storage tanks at Jurong Port Universal Terminal to facilitate the blending of bio-MGO. The blending process involved using UCOME sourced from Malaysia, certified by the International Sustainability and Carbon Certification (ISCC), combined with gasoil components from the company’s South Korean refinery and other Asian countries.

Singapore Bunkering Landscape

While GS Caltex dominates MGO sales in Singapore, with monthly volumes averaging 120,000 tonnes this year (accounting for over 40% of MGO ex-wharf sales at the hub), their recent foray into bio-blended MGO remains somewhat uncommon in Singapore’s bunkering landscape. Most trials so far have involved biofuel mixed with fuel oil rather than gasoil.

This emerging trend towards biofuel-blended marine fuels in Singapore is evident in the data from the Singapore Maritime and Port Authority, which indicates a significant surge in total sales for such fuels in 2023 compared to 2022, surpassing 300,000 tons.

However, despite this uptick, the recorded data has yet to capture any specific sale of bio-MGO bunker fuel in Singapore. This underscores the pioneering nature of GS Caltex’s recent venture, marking a crucial step in exploring cleaner and more sustainable fuel alternatives within the maritime industry.

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Source: Reuters

 

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