Biofuel bunkers command premium in Singapore

In Singapore, Manifold Times reports last week in Singapore, the delivered price for 100% used cooking oil methyl ester biofuel significantly exceeded its estimated cargo price. The FOB price for UCOME from China was recorded between $1,000 and $1,015 per metric ton by PRIMA Markets. However, the delivered price in Singapore was quoted at $1,290 to $1,300 per metric ton, leaving a notable margin to cover logistics such as storage and handling.

This price gap reflects the specific capabilities required to handle biofuels. Only a limited number of bunker suppliers, including Vitol Bunkers, Global Energy, and Peninsula, possess IMO Type II chemical tankers necessary for delivering higher biofuel blends in ports outside the Amsterdam-Rotterdam-Antwerp region. These vessels are crucial for supplying bio-bunker blends above 25%.

Singaporean Consort Bunkers recently placed orders for up to 20 such chemical tankers, while Fratelli Cosulich and Peninsula-affiliated Hercules Tanker Management are also adding these specialized vessels to their fleets. TFG Marine’s Singapore entity is set to charter four of Consort Bunker’s vessels and one from Fratelli Cosulich, indicating active preparations for the evolving market demands.

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