GS Caltex Singapore Pte Ltd announced on Monday the successful sale of its inaugural cargo of biofuel-blended marine gasoil (B24) to Maersk Oil Trading (MOT) at the bustling Singapore bunker hub. This marks a significant move by the trading arm of South Korea's second-largest refiner to expand its presence in the burgeoning market for lower carbon fuels.
The sale involved the delivery of 1,000 metric tons of marine gasoil blended with 24% Used Cooking Oil Methyl Ester (UCOME) to MOT's bunker barge on an ex-wharf basis on November 8. MOT subsequently delivered the bio-MGO to its container ships at Tanjung Pelapas in Malaysia. Maersk refrained from commenting on the specifics of the deal.
GS Caltex's expansion into biofuels is part of a broader strategy to bolster its biofuels supply chain on an international scale. The company secured a lease for 10,000 cubic meters of biofuel storage tanks at Jurong Port Universal Terminal earlier this year, facilitating the blending of bio-MGO. The UCOME, sourced from Malaysia and certified by the International Sustainability and Carbon Certification (ISCC), was blended with 0.1% MGO sourced from GS Caltex's South Korean refinery and other Asian countries.
Used to fuel ships operating in Emissions Control Areas (ECAs) with stringent sulfur-emission limits, marine gasoil remains a pivotal product for the shipping industry. GS Caltex, already the leading MGO seller in Singapore with monthly sales averaging 120,000 tonnes this year, aims to further expand its supply of bio-blended MGO.
Biofuel bunkering trials have gained traction in global maritime hubs as the shipping industry explores cleaner fuel options to reduce emissions. Singapore, as the world's largest bunker hub, has witnessed a surge in sales of biofuel-blended marine fuels, exceeding 300,000 tons in 2023, more than double the total volume in 2022, according to data from the Singapore Maritime and Port Authority.