Sign up
Log in Sign up
Fri 3 Jul 2009, 11:04 GMT

Noble Group seeks floating storage


Trading firm is said to be looking to lease a supertanker to use as fuel oil storage.

Commodity trading firm Noble Group is said to be looking to lease a supertanker for at least two years to use as fuel oil storage and potentially benefit from firm trading margins, Reuters reports.

Noble began its fuel oil business in April after reportedly hiring former Trafigura traders who left the global trading house over the past 12 months.

It was thought that Noble Group's entry into the fuel oil market was linked to the expectation that refinery upgrade projects in Asia and Europe could potentially lead to high trading margins due to tightening supplies of residual fuel.

As part of its fuel oil trading strategy, Noble has reportedly been seeking a long-term storage lease for the past few months. However, despite a recent jump in commercial capacity all existing tanks have been taken on long-term leases.

Other companies to have also recently entered the fuel oil market include Asian trading firm Strong Petroleum, Japan's Itochu Petroleum and China-based Southern Petrochemical Co Ltd.

Last month, Southern Petrochemical Co. was said to have acquired a supertanker to use as floating storage to trade high sulphur fuel oil (HSFO) in Singapore.

The Nan Fang 3, a very large crude carrier (VLCC), arrived in Singapore in June and is positioned at Hin Leong's anchorage. The tanker is able to blend fuel oil to meet marine fuel specifications.

Strong has also leased a VLCC, whilst Itochu recently sealed a deal to lease 150,000 cubic metres of storage at Chemoil's Helios Terminal on Jurong Island, Singapore.

Meanwhile, Guangzhou-based Southernpec paid around $15 million for a 284,000-tonne supertanker to store fuel oil. The tanker is already anchored off southern Malaysia's Tanjung Pelepas port and the company is due to start supplying bunker fuel in Singapore from next month, according to market sources.

Hapag-Lloyd and DSV logo side by side. Hapag-Lloyd and DSV sign 18,000-tonne CO2e reduction agreement for sustainable marine fuels  

Two-year framework allows inclusion of alternative fuels beyond biofuels in shipping decarbonisation partnership.
Bangkok city skyline. Uni-Fuels opens Thailand office as part of Southeast Asia expansion  

Marine fuel supplier establishes Bangkok entity, appoints managing director with 15 years’ industry experience.
Washington State Hybrid-Electric 160-Auto Ferry vessel render. Corvus Energy to supply battery systems for Washington State Ferries hybrid vessels  

ABB selects Corvus for two new 160-vehicle ferries as part of $3.98bn electrification plan.
Vinssen and Mana Engineering sign MoU. Vinssen, Mana Engineering partner on hydrogen fuel cell retrofit for 800-teu feeder vessel  

South Korean and Dutch firms to pursue Lloyd’s Register approval for hybrid retrofit concept.
Hercules Elisabeth vessel. Hercules Tanker Management takes delivery of second Ultra-Spec vessel in China  

Hercules Elisabeth is the second of 10 hybrid-ready tankers designed for alternative fuels.
Wolf 1 vessel. Petrol Ofisi launches fuel supply tanker Wolf 1  

Turkish bunker supplier adds 1,750-dwt vessel with alternative fuel infrastructure to fleet.
BIMCO meeting. BIMCO to convene for adoption of biofuel clause and ETS provisions at February meeting  

Documentary Committee to consider new contractual frameworks for alternative fuels and emission trading scheme compliance.
Sea Change II vessel render. Incat Crowther and Switch Maritime develop 150-passenger hydrogen ferry for New York  

Design work begins on 28-metre vessel with 720 kg hydrogen capacity and 25-knot speed.
Aerial view of a container vessel. HIF Global signs heads of agreement with German eFuel One for 100,000 tonnes of e-methanol annually  

Deal covers supply from HIF’s Uruguay project, with e-methanol meeting EU RED III standards.
Welcoming of Kota Odyssey at Jordan’s Aqaba Container Terminal. PIL’s LNG-powered vessel makes maiden call at Jordan’s Aqaba port  

Kota Odyssey is Pacific International Lines’ first LNG-fuelled ship to call at the Red Sea port.




 Recommended