Trafigura joins forces to establish new bunker supplier

Oil trader and shipowner Trafigura has entered into a bunkering joint venture with shipowners Frontline and Golden Ocean Group to establish a new global bunker supplier that will start operating by the end of September.

The new supplier will source bunker fuel for the three companies' fleets and to third-party shipowners and operators. The companies entered into a non-binding supply term agreement.

Trafigura will add its existing bunkering logistics to the joint venture, and Frontline and Golden Ocean Group will have 15pc and 10pc stakes in the joint venture, respectively.

The joint venture was set up as part of the companies' preparation for the International Maritime Organisation's 0.5pc sulphur cap, which comes into effect from the start of next year.

The joint venture will increase volumes and provide greater access to infrastructure and credit, Trafigura co-head of bunkering Kenneth Dam said.

"Our participation in the JV will ensure our ability to source and acquire marine fuels at competitive prices on a continuous basis," Frontline chief executive, Robert Hvide Macleod, and Golden Ocean chief executive, Birgitte Ringstad Vartdal, said jointly.