Global bunker supplier Peninsula has announced the launch of physical bunker supply operations in Algoa Bay, South Africa, in collaboration with Durban-based logistics service provider and bunker barge operator, Linsen Nambi.
The move strengthens Peninsula’s presence along one of the busiest maritime trade routes, following its recent successes in Mauritius, Egypt, and other intra-African markets.
Strategic Expansion into a Key Maritime Hub
From October, Peninsula will begin delivering high-sulfur fuel oil (HSFO) and very-low-sulfur fuel oil (VLSFO) to vessels in Algoa Bay. This expansion aligns with the company’s long-term growth strategy of ensuring consistent product availability and customer flexibility across global shipping routes. Peninsula CEO John A.
Bassadone emphasized that the partnership with Linsen Nambi was instrumental in facilitating the launch, noting the importance of local expertise in navigating South Africa’s market.
Algoa Bay, once South Africa’s largest marine fuel hub, had its operations suspended between September 2023 and February 2025 due to a tax dispute. The disruption forced major suppliers to relocate operations to Mauritius and East African ports, reducing South Africa’s role as a key refueling hub.
Market Competition and Regulatory Challenges
Industry participants suggest that Peninsula’s entry will boost competitiveness in Algoa Bay, which has already seen one supplier resume operations. “It’s good to bring volume back to South Africa, so it’s better overall,” a local trader commented. However, the expansion coincides with growing concerns about new environmental regulations.
On Aug. 29, the Bunker Industry Association of South Africa warned that stricter rules on offshore ship-to-ship (STS) transfers could restrict refueling activity in South African ports, particularly around Algoa Bay. Such measures may impact the scale and flexibility of operations, potentially offsetting some of the benefits of increased competition.
Peninsula’s return to Algoa Bay marks a significant step in revitalizing South Africa’s bunkering sector after nearly two years of disruption. With competitive supply options now re-emerging, the move is expected to benefit ship operators navigating one of the world’s busiest sea lanes. However, the impact of environmental regulations remains a key factor that could shape the long-term prospects of the region’s bunkering industry.
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Source: S&P GLOBAL
