25/01/30
Marine biodiesel sales drop in Rotterdam port 4Q 2024
London, 30 January (Argus) — Marine biodiesel demand fell in the final quarter
of last year in the port of Rotterdam, while LNG sales picked up ahead of the
introduction of FuelEU Maritime regulations at the turn of the new year. Sales
of marine biodiesel blends in Rotterdam fell by 13.8pc on the quarter and just
under 50pc on the year in October-December. This contrasts with an increase of
about 62pc on the quarter for marine biodiesel blend sales in Singapore,
pointing to a continued trend of voluntary demand shifting east of Suez.
Participants reported this trend throughout last year, with more competitive
prices for the blends in Singapore. Argus assessed B24 dob Singapore, a blend
comprising very-low sulphur fuel oil (VLSFO) and used cooking oil methyl ester
(Ucome), at an average discount of $10.58/t against B30 Advanced Fatty acid
methyl ester (Fame) 0 dob ARA in the final quarter of 2024. B24 dob Singapore
was marked at an average discount of $119.34/t against B30 Ucome dob ARA.
Consequently, shipowners seeking to deliver proof of sustainability
documentation to their customers, to offset the latter's scope 3 emissions,
shifted their marine biodiesel demand to Singapore when feasible. FuelEU
Maritime regulations, which came into effect in January and require a reduction
in greenhouse gas (GHG) emissions from vessels every year, will probably
incentivise regulatory-driven demand for marine biodiesel blends. But the
regional price dynamics between ARA and Singapore will probably remain relevant
to regulatory-driven demand as well, as energy consumed from blends bunkered in
Singapore can be mass balanced to be fully accounted for under the scope of
FuelEU Maritime. The pooling mechanism within FuelEU Maritime would also allow
for vessels operating on the east-west route to potentially utilise compliance
generated from marine biodiesel blends bunkered in Singapore across other
vessels that operate solely in Europe. LNG sales picked up by 19.5pc on the
quarter and soared by 76.6pc on the year ahead of the introduction of FuelEU
Maritime regulations at the start of 2025. Fossil LNG, depending on the type of
engine used on board, can help shipowners with LNG-capable vessels meet their
FuelEU compliance targets for 2025. The Gate LNG import terminal is planning to
start operations at a second jetty for LNG bunker vessels in 2028, pointing to
expectations of greater demand. Bio-LNG sales were reported for the first time
in 2024 since small volumes in 2021, ahead of FuelEU Maritime regulations.
Conventional bunker fuel sales comprising VLSFO, ultra-low sulphur fuel oil
(ULSFO), marine gasoil (MGO), marine diesel oil (MDO), and high-sulphur fuel oil
(HSFO) dipped by 4.7pc on the quarter but rose by 17.7pc on the year in
October-December. VLSFO sales alone were marked higher than HSFO's for the first
time at the port since the last three months of 2023. Total VLSFO volumes traded
in the fourth quarter came to nearly 811,000t, down by 3pc from the previous
quarter, while HSFO sales totalled 780,500t, down by 14pc. Market participants
attribute this retail drop-off to considerable local HSFO supply-side
constraints at the end of 2024. Thin volumes produced by CDUs at refineries in
the Amsterdam-Rotterdam-Antwerp (ARA) hub meant imported volumes were needed to
cover shortfalls. Refineries cut throughput runs, reducing residual byproduct
output. Biomethanol sales dropped by over half on the quarter, under pressure
from thin trading activity, but were 86pc higher on the year in the final
quarter of 2024. Shipping giant Maersk has signed several letters of intent for
the procurement of biomethanol and e-methanol from producers such as Equinor ,
Proman and OCI Global . But the European Commission's proposal to exclude
automatic certification of biomethane and biomethane-based fuels for the Union
Database for Biofuels if relying on gas that has been transported through grids
outside the EU, could slow some negotiations for 2025 imports of biomethanol of
US origin into the EU. By Hussein Al-Khalisy, Bob Wigin and Evelina Lungu
Rotterdam bunker sales t Fuel 4Q24 3Q24 4Q23 q-o-q% y-o-y% VLSFO & ULSFO
1,004,398 1,045,774 847,862 -4 18.5 HSFO 780,437 906,737 643,218 -13.9 21.3
MGO/MDO 395,903 334,752 361,585 18.3 9.5 Conventional total 2,180,738 2,287,263
1,852,665 -4.7 17.7 Biofuel blends 118,201 137,175 233,108 -13.8 -49.3 LNG (m³)
263,068 220,120 148,933 19.5 76.6 bio-LNG (m³) 575 0 0 na na biomethanol 930
2,066 500 -55 86 Port of Rotterdam Send comments and request more information at
feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights
reserved.