Aegean Marine Petroleum Network Inc. has announced that after almost 11 years as a prominent bunker player in Singapore, it will be ceasing its physical supply operation at the port from
January 2018.
The NYSE-listed firm -
ranked as Singapore's 20th-biggest physical supplier in 2016 - said it will still maintain a
trading presence at the Asian bunkering hub.
Explaining the reason for the decision, president
Jonathan McIlroy said: "The bunkering market in general, and the Singapore market in particular, are extremely competitive. We had hoped that enforcement of mandatory mass flow meter (MFM)-equipped bunker barging in January would have driven commercial improvement in the Singapore market, allowing Aegean to compete profitably. However, 2017 has seen
heightened commercial pressures in Singapore, and as a result, management has determined that Aegean's
resources can be more profitably deployed elsewhere."
Aegean confirmed that it was in the process of arranging its orderly withdrawal as a physical supplier in conjunction with the Maritime and Port Authority of Singapore (MPA) and its barging and cargo partners in the market.
"All deliveries and contracts that we have booked with clients' vessels, cargo providers and barge contractors will be fulfilled," Aegean's president stressed.
"We will
continue to employ a team of traders and support staff who will actively support our valuable clients in this market. This office will support our broad base of Asian customers across both our global physical supply network as well as handling back-to-back bunker trading and our lubricants business in Singapore and South-East Asia," said McIlroy. "We have an extensive customer base in Asia and we are committed to supporting the valued clients of our business."
Aegean added that it believes it is in "
advanced stages of development" with "a number" of
physical supply projects in new locations.
McIlroy commented: "
We expect to debut these new markets over the course of 2018 and believe they will continue to reinforce Aegean's commitment of being an innovative market leader as the industry looks forward to change ahead in 2020."
