Connect with us

Business

Oman Oil Marketing Company: Time to consider the total cost of bunkering

Operators need to consider the total cost of bunkering or risk losing business, says Christophe El. Kati,
Head of Marine and Bunkers at the Oman Oil Marketing Company (OOMCO).
Admin

Published

4 years ago

on

OOMCO

The following article features Christophe El. Kati, Head of Marine and Bunkers at the Oman Oil Marketing Company (OOMCO), who shares his thoughts on how its Duqm bunker terminal can reduce the total cost of bunkering for ship owners. 

As fuel prices in regional ports approach USD1000 per tonne, and berth availability and wait times negatively impact sailing timetables, decisions on where and when to bunker can significantly impact efficiency and an operator’s ability to retain business. 

Thinking about the total cost of bunkering means that ship operators measure the impact of bunkering decisions on overall operational costs and the wider sustainability of a voyage, rather than just fuel cost. To manage the total cost of bunkering, charter party agreements also need to be scrutinised, with the impact of slow steaming and the number of days of steaming, routes, and arrival times all important factors.

Any gains made in minimising the total cost of bunkering will improve an operator’s performance within the terms of the Sea Cargo Charter. Although the provisions of the Charter only apply to its signatories, those signatories include some of the largest and most influential charterers in the market. The Charter is also an increasingly important mechanism for boosting transparency and cooperation between operator and charterer. It sets performance criteria for operators based on a measurement of climate alignment, defined as the degree to which voyage carbon intensity is in line with the IMO’s ambitions for reducing total annual GHG emissions. It relies specifically on the Energy Efficiency Operational Indicator (EEOI) which involves measurement of fuel consumption, a GHG emission factor for each fuel type, the distance travelled while laden, and the amount of cargo transported. How is all this relevant to the total cost of bunkering? Because it incentivises operators and charterers to look beyond just the price of fuel at competing bunker ports. Commercially and environmentally, this makes sense.  

Digital voyage planning tools make it increasingly easy to accurately predict costs and evaluate the potential benefits of new bunkering locations. This should encourage operators to look beyond traditional bunker ports and take a more analytical approach to assessing all the options, including those that may offer a faster transit time and reduced waiting time at port.

OOMCO’s new terminal at the Port of Duqm, located on Oman’s Arabian Sea coast, is an ideal example. The port is in the immediate vicinity of the international trade route between Asia and Europe, without long wait times. In its region, a port call at Duqm for bunkering, resupply and crew changes can remove the need for a detour to nearby regional ports, for example, which could add a minimum of seven days. By eliminating several days of fuel and operational costs,  a port call at Duqm can significantly reduce the total cost of bunkering for operators. Duqm also lies outside the high-risk zone that triggers the costly requirement for war risks cover; a significant financial saving.

OOMCO’s terminal offers high-quality HSFO, VLSFO and LSMGO marine fuel specifications in compliance with ISO 8217 and has been designed to meet the increasing demand for all low sulphur fuel-compliant marine fuels in line with IMO2020. The 10,000 metric tonne vessel MT Alpha, capable of delivering fuel at up to 1,000 m3 / hour, facilitates bunker calls for vessels visiting the port. 

The Port of Duqm also offers a wide array of services, strengthening Oman’s marine infrastructure and making it one of the most dynamic marine and industrial hubs in the region. Vessels calling at Duqm can take advantage of a range of services, including pilotage, freshwater supply, waste collection, tug services, crew change, de-slopping services, ship handling, and ship spares. The port also hosts Oman Drydock Company, one of the largest ship repair yards in the world. Duqm’s wide range of services make it easier for vessel operators to justify a decision to bunker in the port. 

The development of the new OOMCO terminal is underpinned by the $7 billion Duqm refinery which will have a capacity of 230,000 barrels per day, once completed. In addition, the nearby Ras Markaz storage terminal is also currently under construction. It will culminate in six million barrels of storage capacity being available in 2022, with an additional capacity of 19 million barrels earmarked for the site as a future development. In addition, there are plans in place for the supply of other marine fuels, including LNG and methanol, as well as green ammonia and green hydrogen.

The bunker fuel market in the Middle East and Africa region is expected to grow by more than 12% between 2022-2025. By taking a ‘total cost of bunkering’ approach, Duqm can help vessel operators to unlock greater efficiencies within their fuel procurement strategy that will protect their bottom line and optimise their port calls.

Related: Oman Oil Marketing Company launches bunkering operations at Port of Sohar
Related: Oman Oil Marketing Company launches new bunker terminal at Port of Duqm
Related: OOMCO signs bunkering agreement for ops at Port Sultan Qaboos
Related: OOMCO Directors approve construction of Duqm bunker terminal
Related: Duqm Bunker Terminal eyes 2021 commission

 

Photo credit and source: Oman Oil Marketing Company
Published: 11 April, 2022

Related Topics:
Continue Reading

Winding up

Singapore: High Court to hear Norvic Shipping Asia winding up application on 31 July

Application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to Government Gazette notice.
Admin

Published

10 hours ago

on

July 22, 2026

By

RESIZED singapore high court

An application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to a Tuesday (21 July) notice on the Government Gazette.

It noted the winding up application is directed to be heard before the Judge sitting in the General Division of the High Court at 10am on 31 July.

Any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the solicitors of the applicant’s, Oon & Bazul LLC, on payment of the regulated charge for the same.

The Applicant’s address is Hiridostraat 5, Gebouw Prismatrium, 1101CW Amsterdam, The Netherlands.

The Applicant’s solicitors are Oon & Bazul LLC of 103 Penang Rd, #04-04/05/06 Singapore 238467. 

Queries on the winding up application may be directed to the following email addresses: [email protected] and [email protected].

 

Photo credit: Manifold Times
Published: 22 July, 2026

Continue Reading

Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.
Admin

Published

10 hours ago

on

July 22, 2026

By

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

Continue Reading

Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.
Admin

Published

10 hours ago

on

July 22, 2026

By

HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

Continue Reading

Trending