Uniper declares force majeure on Fujairah bunker supply

German energy company Uniper has declared force majeure on bunker fuel supply from its 67,000 b/d topping refinery at the UAE port of Fujairah on the back of widespread flooding that has disrupted operations at the world's third largest marine fuels hub since last week.

Uniper, a major supplier in the local bunker market, has notified buyers of its very low-sulphur fuel oil that the situation constitutes a force majeure event and that it is "excused from any non-performance under the contract". Fellow bunker supplier and terminal operator GPS Chemoil has also declared force majeure after its facilities were flooded.

Several barges have lined up at terminals in Fujairah waiting for loadings to resume. Trading firm Vitol is understood to have restarted limited loading but conditions are still not stable, according to market participants.

"It will take time for the backlog to clear and any vessel that arrived recently will either wait or sail out to return for lifting bunker fuel later," a Fujairah trader said.

A major bunker supplier that had planned to resume deliveries on 10 August is now giving 15 August as the earliest restart date.

By Elshan Aliyev