Japanese navy orders tankers for East China Sea patrols

Spanish Market: Oil products
21/05/20

Japan's defence ministry has placed an order for two oil tankers, its first such dedicated vessels to support patrolling navy vessels particularly in the East China Sea area.

Japanese shipbuilder Shin Kurushima Dockyard has received an order from the ministry to build two 4,900 deadweight tonne tankers for delivery targeted in April and July 2022. The two tankers are expected to be able to carry around 30,000 bl each of marine fuel and will be built at the firm's Hashihara shipyard in Ehime prefecture's Imabari.

The Japanese government had allocated ¥6bn ($55mn) for the planned construction of Japan's first dedicated navy tankers as part of the country's ¥5 trillion defense budget in the April 2019-March 2020 fiscal year. The navy is aiming to secure refuelling capability for its patrol vessels at frontline bases, particularly in Okinawa, without private-sector co-operation.

Tensions have re-escalated between Tokyo and Beijing over the growing presence of Chinese coast guard vessels in the disputed East China Sea area. The Japanese government earlier this month formally lodged a protest with the Chinese government, claiming a local fishing boat off the disputed Diaoyu, or Senkaku, islands was harassed by a Chinese coast guard vessel.

Tokyo was hoping the planned April visit by Chinese President Xi Jinping would help improve Sino-Japanese relations and revive an agreement on joint natural gas development in the East China Sea. But the visit was cancelled in March as both countries needed to prioritise the battle against the Covid-19 pandemic.

By Rieko Suda

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28/07/26

Rotterdam 2Q biomarine sales overtake Singapore

London, 28 July (Argus) — Rotterdam marine biodiesel blend sales in the second quarter were above those in Singapore, according to official data from both ports, the first quarter this has happened since the EU imposed anti-dumping duties (ADDs) on Chinese-origin biodiesel in the third quarter of 2024. Marine biodiesel blend sales in the Port of Rotterdam were up sharply on the year and more than double the previous quarter ( see table ). Market participants reported firmer demand following the start of the US-Iran war. The war changed pricing dynamics between marine biodiesel blends and conventional fuels, leading to discounts for the former. These initially failed to support significant demand growth , evidenced by declining sales in the first quarter . Then, volatility weighed on overall trading activity and buyers were hesitant to make significant changes to their procurement strategy based on what was perceived as an acute price spread at the time. But demand rose as the war extended, which led to higher blend sales in the second quarter. An initial agreement to end the war was signed on 18 June by the US and Iran, which led to easing conventional fuel prices and a return to traditional dynamics, with fossil bunker fuels back at a discount to marine biodiesel blends. But this agreement collapsed and hostilities resumed, leading to sharp increases in oil futures prices and a return to discounts for some marine biodiesel blends. B100 Advanced fatty acid methyl ester (Fame) dob Netherlands has averaged a discount of about $86/t to marine gasoil (MGO) dob ARA since hostilities restarted, when accounting for EU emissions trading system (ETS) costs for an intra-EU voyage. In that time, Singapore marine biodiesel prices — which had been mostly cheaper than EU equivalents — posted sharp gains and sales fell as a result. EU ADDs on Chinese-origin biodiesel supported flows into Singapore, which ended up in the bunker pool, resulting in cheaper prices and higher sales than Rotterdam for more than 18 months. B24 dob Singapore prices averaged $753/t when accounting for EU ETS costs from August 2024 to February 2026, compared with $803/t for the cheapest European option, B30 Advanced Fame and VLSFO dob Netherlands. The latter averaged $1,080/t in March-June this year, compared with $1,110/t for B24 Singapore. This change is reflected in sales data. Marine biodiesel blend sales in Singapore fell sharply on the year and on the quarter in April-June ( see table ). Another reason for the sharp increase in sales could be attributed to changes stemming from the EU's renewable energy directive (RED III). The Netherlands unilaterally implemented RED III mandates for international maritime starting this year. Participants have pointed to diminishing demand in the Mediterranean region for marine biodiesel blends, particularly from non-passenger vessel segments, some of which may have been absorbed into Rotterdam because of more competitive pricing. Bio-LNG volumes continued to rise, as it has become a popular option for generating FuelEU Maritime compliance due to a very competitive abatement cost. Biomethanol sales more than doubled on the quarter, but down on the year. Volumes for ethanol as a bunker fuel were reported in Rotterdam port official data for the first time, following an initial ethanol-methanol blend bunkering operation in May . Ethanol is seen as an option to decarbonise maritime transport and meet regulations, and companies have been trialling its use. Danish shipowner Maersk completed its first voyage using 100pc ethanol in the first quarter on a dual-fuel methanol engine and is investing in further tests. By Hussein Al-Khalisy Rotterdam bunker sales Fuel 2Q 2026 2Q 2025 y-o-y% 2Q 2026 1Q 2026 q-o-q% ULSFO 123,190 225,992 -45.49 123,190 162,142 -24.02 VLSFO 354,448 679,442 -47.83 354,448 439,804 -19.41 HSFO 704,637 914,672 -22.96 704,637 619,010 13.83 MGO/MDO 331,347 407,877 -18.76 331,347 660,517 -49.84 Conventionals total: 1,513,622 2,227,983 -32.06 1,513,622 1,881,473 -19.55 Biofuel blends 239,875 165,220 45.19 239,875 104,630 129.26 LNG (m³) 273,021 207,658 31.48 273,021 232,263 17.55 Bio-LNG (m³) 7,506 4,752 57.95 7,506 15,260 -50.81 Bio-methanol 2,845 3,958 -28.12 2,845 996 185.64 Ethanol 1,025 - - 1,025 - - Port of Rotterdam Singapore marine biodiesel sales Fuel 2Q 2026 2Q 2025 y-o-y% 2Q 2026 1Q 2026 q-o-q% Biofuel blends 172,720 408,390 -58 245,270 364,430 -32.70 Singapore Maritime Port Authority Rotterdam, Singapore marine biodiesel sales ’000t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

MGO prices outpace fuel oil in Europe on tight supply

28/07/26

MGO prices outpace fuel oil in Europe on tight supply

Sao Paulo, 28 July (Argus) — Marine gasoil (MGO) prices are rising faster than very-low sulphur fuel oil (VLSFO) and high-sulphur fuel oil (HSFO) values in Europe, supported by tight prompt supply. MGO prices in the Amsterdam-Rotterdam-Antwerp (ARA) hub rose by 73.5pc between the start of the US-Iran war on 28 February and 27 July, Argus data showed. This compares with a 38pc increase for VLSFO and a 27pc increase for HSFO in the same period. In the Gibraltar-Algeciras-Ceuta (GAC) hub, prices for MGO rose by 64.5pc, while VLSFO values firmed by 42pc in the same period. HSFO prices rose 27pc in Gibraltar. Market participants attributed the differential between the fuels to tight prompt supply stemming from Russian diesel exports hitting at a 10-year low and reduced refinery output. Around 22,560 t/d loaded at Russian ports on 1-21 July, according to data analytics platform Vortexa, down from 62,000 t/d in June, the lowest daily average for any month in at least 10 years. The war in the Middle East has also changed bunkering and cargo flows in Europe and Africa, and renewed hostilities in the Red Sea increasing ship diversions through the Cape of Good Hope . Meanwhile, diesel stocks in Europe are decreasing. Diesel and other gasoil stocks held independently in Amsterdam-Rotterdam-Antwerp dropped by 2.6pc to 1.64mn t, their lowest since August 2022, as there were no imports during the week. Marine fuels supplier Peninsula warned that these renewed tensions could create a "perfect storm" for ship operators by increasing bunker fuel demand to cover the detour. To re-route via the Mediterranean also would mean to increase MGO or biofuel demand, since the region is an emission control area (ECA), the company said. MGO demand is usually firm in Europe because of ECAs operating in the Mediterranean Sea, the North Sea and the Baltic Sea. Regulations require shipowners to burn fuel with up to 0.1pc sulphur content, hence restricting fuel specifications or requiring the installation of a scrubber to reduce sulphur content. Ultra-low sulphur fuel oil (ULSFO), traded at a discount compared with MGO, is also an option that comply within the ECA, but the grade has yet to gain significant market share because buyers are concerned about quality issues and availability outside of Europe, leaving MGO as the preferred option to comply with the ECA. By Natália Coelho MGO vs VLSFO bunker fuel prices in Europe $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Climate crisis reaching national emergency levels: UN

28/07/26

Climate crisis reaching national emergency levels: UN

Edinburgh, 28 July (Argus) — The human and economic costs of the climate crisis are reaching national emergency levels and countries must leave coal, oil and gas behind faster, UN climate body executive secretary Simon Stiell said today. Climate-driven disasters, including wildfires in France and Spain, are reaching nightmare proportions, Stiell said, adding that the costs of the world's dependence on fossil fuels — coal, and oil and gas — is spiralling upwards. "These record-breaking wildfires tearing through France, Spain and other parts of Europe, forcing mass evacuations and hammering regional and national economies, follow brutal heatwaves that have dried out landscapes," he said. Last month was the second-warmest June on record globally , and the hottest June recorded in western Europe, EU earth-monitoring programme Copernicus said earlier this month. This reflects a climate system continuing to accumulate heat, resulting in increasingly intense heatwaves, a persistently warm ocean, and growing risks for people, ecosystems and infrastructure, Copernicus said. French president Emmanuel Macron said the fires the country is experiencing are the most severe since the Second World War, with 116,000 hectares already burned so far this year. Spanish president Pedro Sanchez said his country is battling 10 major fires and has lost around 170,000 ha to the wildfires — a six-fold increase compared with the same time last year. Wildfires can account for a significant source of atmospheric pollution, including CO2. Emissions from fires in Europe had already reached a record high in 2025, with Spain contributing around half of the total, according to the European State of the Climate report. And wildfires lead to forests absorbing less CO2. "The science on the cause is unequivocal: global heating, driven by humanity burning colossal amounts of coal, oil and gas, is making protracted heatwaves, severe floods and violent mega-storms more frequent, more intense and more costly," Stiell said. "What needs to be done is equally clear: leave coal, oil and gas behind faster, scale up renewables and protect people where the impacts are already hitting hardest, he said. By Caroline Varin Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Saudi product cargoes reroute via Suez on Houthi risks

28/07/26

Saudi product cargoes reroute via Suez on Houthi risks

Dubai, 28 July (Argus) — Three product tankers loaded at Saudi Arabian Red Sea ports and bound for Asia-Pacific and east Africa have turned north towards the Suez Canal, as Houthi-related threats to shipping prompt charterers to reassess passage through the Bab el-Mandeb strait. The tankers appear to have abandoned planned transits through Bab el-Mandeb, at the mouth of the Red Sea, after the Yemen-based, Iran-backed Houthis militant group announced a 'maritime ban' on Saudi Arabia on 20 July . The Seferis loaded around 46,000t of gasoline from the 400,000 b/d Samref refinery at Yanbu on 21 July and while it is signaling Mombasa, Kenya, as its discharge destination with estimated arrival on 3 August, ship-tracking data from Kpler show the tanker is now heading north towards Suez. Fixture lists showed state-controlled Aramco Trading (ATC) had chartered the Seferis on 15 July to ship 90,000t of gasoline from Yanbu for delivery to east Africa. Two Saudi Red Sea naphtha cargoes initially lined up for Japan have since shifted west. The Hafnia Experience was chartered by Aramco Trading Singapore on 21 July to carry around 55,000t of naphtha from the Red Sea, with arrival initially expected on 20 August. It loaded at the 400,000 b/d PetroRabigh refinery on 25 July but ship-tracking data from Vortexa now show New York as its discharge destination. The Torm Innovation loaded about 58,000t of naphtha at Yanbu on 23 July with Japan initially indicated as its destination, but it has since transited the Suez Canal and is now on route to Spain. The tankers were fixed before the latest Houthi escalation and would ordinarily head south from Saudi Arabia's Red Sea ports through the Bab el-Mandeb strait to Asian or east African markets. Retaining their original destinations would require routing through Suez and around the Cape of Good Hope, potentially adding around a month to the voyage along with higher freight costs, according to market participants. Saudi naphtha flows through Bab el-Mandeb had picked up sharply earlier this year, an hit around 433,000t in May with most heading to Indonesia, Singapore, Malaysia and South Korea. Volumes were around 370,000t in June but just 76,000t so far in July. A similar decline is visible in gasoline, with Saudi exports through Bab el-Mandeb falling to 128,000t in July from 381,000t in June. Saudi Arabia's Red Sea ports had taken on a larger role in regional supply after the US-Iran war effectively shut the strait of Hormuz, lifting southbound flows through the Bab el-Mandeb between March and June. But no tankers carrying Saudi gasoline or naphtha appear to have transited the strait since the Houthis 'maritime ban' announcement. Market participants also expect more Saudi Red Sea diesel to move west through Suez . Adding to the uncertainty, the Houthis on Saturday claimed strikes on Saudi Aramco facilities at Jizan and Yanbu, with satellite imagery indicating fire at two storage tanks . The extent of any damage remains unclear, but traders point to potential delays in product loadings from the terminal. By Rithika Krishna Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

Australia to fund study on new Perdaman oil refinery

28/07/26

Australia to fund study on new Perdaman oil refinery

Sydney, 28 July (Argus) — Australia's federal government and the Western Australia (WA) state administration have pledged to co-fund a A$4mn ($2.7mn) pre-feasibility study into a proposed new oil refinery near the WA city of Karratha. The refinery of unknown capacity was proposed by fertiliser company Perdaman and would be built in WA's Pilbara region, adjacent to the majority of Australia's 924mn t/yr iron ore industry , a key user of gasoil for transport and mining operations. Gasoil imports to the harbours at nearby Port Hedland and Dampier were around 40,000 b/d and 21,000 b/d last year, according to data from vessel-tracking firm Kpler. A fuel refinery would build resilience into WA's energy system and keep the A$90bn mining industry running despite any future shocks, the state's energy minister Amber-Jade Sanderson said on 28 July. The Australian government included A$10mn in its latest federal budget to support feasibility studies into new or expanded refining capacity around three months after the US-Iran war begun. The studies are to be co-funded with state and territory governments. Australia held 32 days' worth of gasoil consumption, equivalent to 22.23mn bl worth of stocks in-country or within its exclusive economic zone on 21 July, latest government data show. Australia also held 42 days' worth or 11.41mn bl of gasoline stocks and 32 days' or 5.61mn bl of jet fuel. The WA government was the first state to create its own gasoil reserve in April with the purchase of around 25,000 bl to be stored at Wyndham in the Kimberley region. The state added around an additional 75,000 bl later that month to reserves based in Esperance and Kwinana. The state governments of South Australia and Victoria have also since created their own reserves. Perdaman is constructing its 2.3mn t/yr Project Ceres urea plant on the Burrup peninsula north of Karratha, which has an uncertain first production date but could be as early as 2027 . Refining downturn WA formerly hosted the 146,000 b/d Kwinana refinery which was Australia's largest when it was closed by BP in 2021 and converted into a products import terminal. The company had proposed building a plant to produce 10,000 b/d of renewable diesel and SAF from renewable feedstocks, but froze the development last year citing uncertainty around government biofuel policies. BP also cancelled a proposed 105MW H2Kwinana renewable hydrogen plant in June, after failing to secure state subsidies for the project. Australia's refining capacity fell to 229,000 b/d between 2013 and 2021 following major facility closures, with total refining capacity closures since 2013 exceeding 570,000 b/d. Remaining ventures are the 128,000 b/d Geelong refinery in Victoria, operated by domestic refiner Viva Energy and the Ampol-run 109,000 b/d Lytton plant near Brisbane city. By Tom Major and Tom Woodlock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Japanese navy orders tankers for East China Sea patrols

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