Sri Lanka's Colombo port sees first supply of delivered HSFO bunker fuel
11th August 2021 04:36 GMT

Advantis Bunkering has become the first supplier of delivered high sulfur fuel oil at Sri Lanka's Colombo port, banking on the long-term growth in visits by scrubber-fitted vessels, a company source said Aug. 10.

The launch of barge deliveries of HSFO at the port on Aug. 6 was to meet demand from scrubber-fitted vessels, the source said.

The company received clearance from state-owned Ceylon Petroleum Corporation on Aug. 6 and loaded HSFO on a 1,500 mt barge the same day, and was now canvassing for sales with the product immediately available for delivery, the source said.

The HSFO supplied by Advantis Bunkering has a sulfur content below 3.5% and a viscosity that is "significantly below" 380 CST, the source said.

“We have the first-mover advantage as this is an exclusive contract with CPC and there are no other suppliers of HSFO at the port of Colombo at the moment,” the source added.

The source said Advantis had received "multiple inquiries" from major shipping companies since launching delivered HSFO sales.

The supply of the HSFO provides a cheaper alternative to low sulfur products in the region, the source said.

Colombo-delivered marine fuel 0.5%S and low sulfur marine gasoil were assessed at $565/mt and $665/mt respectively Aug. 10, S&P Global Platts data showed. Fixtures for HSFO were heard around $525/mt outside of the Platts Market on Close assessment process.

Valuations for delivered HSFO at Colombo were estimated at around a $100/mt premium to the delivered grade in Singapore Aug. 10, industry sources said.

Singapore-delivered 380 CST HSFO was assessed at $405/mt Aug. 10, down $10/mt from the previous session, Platts data showed.

While the spread between marine fuel 0.5%S and HSFO remains slightly above $100/mt, shipping companies can make substantial cost savings from vessels fitted with scrubbers, industry sources said.

The spread between marine fuel 0.5%S and HSFO on a Singapore-delivered basis was assessed at $109.75/mt Aug. 10, down $3.25/mt from the previous session.

“With this introduction we are expanding our customer base and providing an option for scrubber fitted vessels to call the Port of Colombo,” Advantis Bunkering CEO Kushan Desilva said.

The company is a subsidiary of Hayley’s PLC and trades as three physical bunker suppliers operating in Sri Lankan waters; Lanka Maritime Services Limited, Lanka Bunkering Services Limited and Moceti International Pvt Limited.

Platts ,
11th August 2021 04:36 GMT