UAE’s Fujairah to boost investment for new bunker fuels | – #UAEs #Fujairah #boost #investment #bunker #fuels
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DUBAI, March 15 – The UAE’s Fujairah must boost investment in storage and supply of new alternative fuels as these markets are still not attracted to the world’s third-largest bunker hub despite the urgency of offshore decarbonisation, industry executives said on Wednesday.
Maritime industry UNshould seek alternative fuels to meet the carbon emissions reduction targets set by the International Maritime Organization, including carbon emissions 20It includes reducing total greenhouse gas (GHG) emissions by 40% from 2008 levels and 50% by 2050.
Despite being the main bunker port, Fujairah liquefied natural gas (LNG), lags behind hubs such as Singapore and Rotterdam in preparing for alternative fuel markets such as biofuels and methanol.
Law Say Huat, general manager of warehouse company Vopak Horizon Fujairah Terminals Ltd, said potential investment in Fujairah should include replacing tanks to accommodate future fuels.
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Law He said at the 2023 Fujairah Bunkering and Fuel Oil Forum (FUJCON): “There is a lot of development in terms of new energy, in terms of decarbonisation in other centres. We should not lose from this point of view (in Fujairah),” he said. Wednesday.
However, there are obstacles when it comes to scaling up these investments, including a lack of cooperation.
“Probably what’s really missing is communication between registered stakeholders,” said Nizamuddin Noorali, general manager of GTI Fujairah storage terminal company.
“Everybody does their own thing and is a little bit isolated… there is no central connection where the value chain can be added to the size of the terminals,” Noorali said.
Digitization and lack of transparency will also hinder adoption.
“If you look at the bunkering operation at sea today in Fujairah and the way it’s measured, quantities are still done manually,” Kenneth Dam, TFG Marine’s head of bunkering, said on the sidelines of the forum. , and is more prone to human error.
In contrast, top bunkering hub Singapore has stepped up efforts to digitize its bunkering operations, which is helping to pave the way for new fuels.
Unlike Singapore, emergency supplies of these fuels have started slowly due to lack of immediate demand in Fujairah, trade sources said on the sidelines of the forum, although supplies should begin in the coming years.
By 2050, methanol and LNG are expected to hold the highest market share of alternative bunker fuels in Fujairah, followed by biofuels and ammonia FUJCON Forum Online Surveyflour showed the results.
“I would hope that in two years we are back here in Fujairah (for the next FUJCON), we are no longer just talking about delivering LNG bunkers, but we actually have the capacity,” Peter Keller, chairman of the industry coalition SEA-LNG, said at the forum.
Fujairah is set to remain one of the largest bunker centers in the world. The port had a record year for oil refining volumes in 2022 and is expected to record strong demand for storage in the future.
Reporting by Jeslyn Lerh; Edited by Angus MacSwan
Our standards: Thomson Reuters Trust Principles.
2023-03-16 01:58:04
Source – reuters
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