Business

Argus Media: South Korean bunker prices soar on supply shortfall

Refining company Hyundai Oilbank knows they’re the only ones that can still offer spot supplies for May so prices are through the roof, says one trader.

Published

4 years ago

May 20, 2022

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Several South Korean refineries are unable to deliver bunker supplies for the rest of this month, leading to sharply higher prices relative to other parts of the region.

19 May, 2022

The price of South Korean very low-sulphur fuel oil (VLSFO) hit a record premium to Singapore values of $220/t on 18 May, having risen from more typical levels of about $20-25/t since 11 May, according to Argus data.

The shortage of bunker supply in South Korea is so severe that yesterday VLSFO there was assessed almost at parity to low-sulphur marine gasoil (LSMGO), a premium bunker product that usually commands a much higher price. Argus assessed South Korean VLSFO at $1,164/t yesterday and LSMGO at $1,185/t.

South Korea’s refining sector is dominated by four companies — S-Oil, SK energy, GS Caltex and Hyundai Oilbank. Of those, only Hyundai Oilbank is understood to still have spot supplies on offer for May delivery. The others have either run out or are being hampered by outages.

S-Oil, which operates the 669,000 b/d Onsan refinery in Ulsan, is heard to be having some issues with its residue fluid catalytic cracking (RFCC) unit, although this could not be confirmed. Market sources told Argus that the refinery requires maintenance, and this has led to a decline in output.

Meanwhile, SK Energy’s 840,000 b/d refinery in Ulsan is understood to have been under maintenance for a while, with the company only offering product for June delivery onwards. And GS Caltex has reportedly sold out of VLSFO for May.

“Hyundai know they’re the only ones that can still offer spot supplies for May so prices are through the roof,” said one trader.

Most of the bunkering taking place in South Korea at the moment is therefore restricted to term volumes. The constraints on VLSFO production from S-Oil and SK Energy, also partly connected to an interruption in supply of low-sulphur crude, is not expected to ease until the end of May or early June.

South Korea is one of the largest bunker supply hubs and producers of VLSFO in Asia-Pacfic, with most bunkering taking place in the country’s southern ports of Ulsan and Busan.

No official data on the country’s bunker fuel demand are available, but December 2021 total sales were estimated by various market sources at 800,000-850,000t, of which about 590,000t was VLSFO.

By Sammy Six and Maiko Nakashima

Photo credit and source: Argus Media
Published: 20 May, 2022

Legal

Shell Singapore charged over Pulau Bukom oil leaks, reporting delays

Shell faces four charges under Singapore’s Prevention of Pollution of the Sea Act over two 2024 oil discharge incidents at its Pulau Bukom facility.

Published

1 day ago

September 25, 2026

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2 MPA craft (left) supporting Shell craft in the clean up operations of the oil sheens taken on 28 Dec 9am

Shell Singapore has been charged over two incidents in 2024 involving oily mixtures discharged into Singapore waters from its facilities at Pulau Bukom, according to media reports on Tuesday (22 September).

The company faces four charges under the Prevention of Pollution of the Sea Act, including allegations that it failed to report the discharges to the port master immediately.

The first incident occurred on 20 October 2024, when approximately 40 metric tonnes (mt) of oily mixture was discharged through a hole in a pipeline at the Shell Singapore Energy and Chemicals Park at about 8am.

Shell is accused of reporting the incident to the port master at about 12.55pm, several hours after the discharge occurred.

The second incident took place between 26 and 28 December 2024. An estimated 485kg to 956kg of oil mixture was discharged into Singapore waters from the same facility.

Shell is accused of failing to report the incident immediately, with notification to the port master made at about 11.50am on 26 December 2024, according to the charges.

Singapore’s pollution-prevention regulations require occupiers of such facilities to report oil or oily-mixture discharges into Singapore waters “without delay and to the fullest extent possible”.

Shell’s representative requested an eight-week adjournment at the 22 September hearing, citing the need to obtain internal instructions, appoint counsel and locate historical records. The company said the business associated with the incidents had been divested in 2025.

The case was adjourned to October. Shell is also facing prosecution by Singapore’s National Environment Agency over the same incidents.

Photo credit: Maritime and Port Authority of Singapore
Published: 25 September, 2026

Incident

MPA probes Singapore Strait collision involving fishing vessel, bulk carrier

MPA says there were no reported injuries among the crew of either vessel in the incident involving China-registered fishing vessel “Lu Qing Yuan Yu” and Panama-registered bulk carrier “First Margaux” .

Published

1 day ago

September 25, 2026

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Panama-registered bulk carrier “First Margaux”

The Maritime and Port Authority of Singapore (MPA) on Tuesday (22 September) said it is investigating the incident involving the China-registered fishing vessel Lu Qing Yuan Yu and the Panama-registered bulk carrier First Margaux in the Singapore Strait on 17 September.

MPA said there were no reported injuries among the crew of either vessel or pollution arising from the incident and navigational traffic was not affected.

Videos circulating on social media showed the bulk carrier colliding with the fishing vessel.

“The fishing vessel took on water during the incident but remained afloat and stable, with the crew taking measures to manage the situation onboard,” MPA said.

The vessel was subsequently towed to Raffles Reserved Anchorage for assessment.

Essential crew remained onboard to support the tow, while the Singapore Civil Defence Force supported the transfer of other crew to shore.

MPA added it also issued navigational safety broadcasts to keep other vessels clear of the tow and escorted the vessel into port with a MPA craft.

Photo credit: MarineTraffic / Arnold Pohen
Published: 25 September, 2026

Mass Flowmeter

TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Bunker barge “Kingston Trader” is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.

Published

1 day ago

September 25, 2026

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TFG Marine deploys first MFM-equipped bunker barge in Jamaica

Global marine fuel supply and procurement firm TFG Marine on Thursday (24 September) said its bunker barge Kingston Trader is currently on its way to Jamaica following the successful installation of a Coriolis mass flow meter (MFM) system, certified to ISO 22192.

The company said the latest installation brings the proportion of TFG Marine’s fleet equipped with MFMs to approximately 88%, marking another step in the continued rollout of this technology across its global bunkering operations.

“The barge will operate in Jamaica through our local partnership with Scott Petroleum, becoming the first bunkering vessel in the region equipped with this technology and bringing greater accuracy, transparency and assurance to fuel measurement for customers across the Caribbean,” TFG Marine said in a social media post.

“Together with Scott Petroleum, we look forward to working collaboratively with the Maritime Authority of Jamaica, the The Port Authority of Jamaica, Petrojam Limited and other stakeholders to share our experience of MFM technology, explore its wider benefits and support the continued development of bunkering standards across the region.”

Manifold Times previously reported TFG Marine continuing to expand MFM technology across its US Gulf Coast bunker fleet with Buffalo B414 and Buffalo B304 being fitted with the equipment.

Last year, TFG Marine announced it reached a key milestone in its global digitalisation programme with the installation of an ISO 22192-compliant MFM on the Buffalo 404, a barge on time charter from American bunker barge company Buffalo Marine Service Inc.

The installation was part of TFG Marine’s wider strategy to equip close to 90% of its global bunkering fleet with MFMs by 2026 as a commitment towards improving data integrity, streamlining operations and strengthening trust in marine fuel transactions.

Photo credit: TFG Marine
Published: 25 September, 2026