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It has been just over 12 months since Chemoil joined forces with Adani Enterprises to form the joint venture, ChemoilAdani, and already encouraging in-roads have been made by the new venture as it leads the development of the Indian bunkering market.

From strong sales volumes since launch to industry recognition for its newly established operation, ChemoilAdani says it has a firm strategy in place to maintain its position as the leading bunker supplier in India and further develop a largely untapped market.

Encouragingly for the new venture, recent comments suggest that the Indian government were beginning to take a keen interest in the development of the country’s bunker market, with talk of further tax exemptions for international vessels.

Basheer Ahmed Sayeed [pictured], CEO of ChemoilAdani, said: “There is no doubt shipowners are already benefiting from our expertise in being able to source and deliver quality, competitively priced marine fuel to them at Indian portslike Mundra – its been a very encouraging first year.

“This joint venture has been successful from the beginning because it leverages the right mix of competencies and world-class capabilities from both Chemoil and Adani. Chemoil with its expertise in sourcing and delivering marine fuel utilising its global integrated supply chain; and Adani with its in-depth local market knowledge, proficiency in developing port infrastructure and distribution capability.”

Sayeed said after starting operations at Mundra port in Gujarat state in March last year, monthly sales volumes of 50,000 metric tonnes were quickly achieved.

There was expansion in 2009 into other Gujarat ports such as Kandla, Sikka, Jamnager, Navlakhi and Bedi.

ChemoilAdani has also been supplying the port of Mumbai in the western state of Maharashtra for the past six months as well as Chennai port in the Tamil Nadu state.

There is further expansion for ChemoilAdani on the near horizon for its Indian operations with an increase in its onshore storage capacity at Mundra port to 120,000 metric tonnes and the addition of a 3000 dwt double-hull bunker tanker this year.

The new terminal facility - part of an upgrade program to develop infrastructure and expand storage capacity by the Adani Group at Mundra port - will be leased to ChemoilAdani. The terminal is expected to be completed and operational by January 2011.

The new modern and fully automated terminal will operate as an exclusive bunkering facility. The total volume storage capacity of 120,000 metric tonnes will made up of 12 storage tanks – 4 x 15,000; 4 x 10,000; and 4 x 5000.

There will be a pumping capacity of up to 1000 mt/hr for bunkering, for loading cargo into vessels up to 2000 mt/h, and with a receiving capacity of 2000 mt/h. These will be faster pumping rates than what is currently available at the existing 90,000 metric tonne terminal at Mundra port.

“This new facility will enable ChemoilAdani to be even more competitive in the bunkering marketplace with fuel pricing, as we’ll be able to take advantage of faster terminal turnaround rates, improved reliability of fuel delivery and better manage our overall operational costs,” said Sayeed.

Sayeed said ChemoilAdani had quickly established itself as the largest supplier of marine fuels in Gujarat as well as the largest supplier operating in the Indian market today.

“We are continuing to develop our presence in India for the benefit of our local and global shipping customers,” Sayeed said.

Meanwhile, ChemoilAdani was recently named a finalist in the energy category of the 2009 Lloyds List Middle East and Indian Subcontinent Awards.

According to Lloyds List, the energy award “reflects operational excellence, initiative, cost-efficient and safe operations offshore and onshore, sub-sea and on the surface”.

“To be acknowledged at this early stage of the joint venture partnership demonstrates how our unified and clear strategy has already proven successful in the supply of marine fuel to India,” Sayeed said.

Adani Enterprises is part of the Adani Group and a leader in international trading and infrastructure development in India.