bunkering in the americas the caribbean - … in the americas the caribbean yamil lasten managing...
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BUNKERING IN THE AMERICAS THE CARIBBEAN
Yamil LastenManaging Director
Curoil Group
Agenda
1.Introduction
2.Developments in the Bunkering Market (Caribbean)
3.Closing remarks
Introduction
Source: http://www.wikipedia.org/
Introduction
ABC Islands
Source: http://www.wikipedia.org/
Introduction
ABC Islands:• Aruba, Bonaire and Curaçao are the three western-most islands of
the Leeward Antilles in the Caribbean, north of Falcón State, Venezuela;
• Total surface: 912 KM2 Total Population: 250,000;
• All three islands are part of the Dutch Kingdom;• Spoken languages: English, Dutch, Spanish and native Papiamento• Naturally-sheltered, deepwater ports (Bullenbaai: on Curaçao 29
meters);• The three islands are situated outside the hurricane belt;• Local Refinery on Curaçao with a capacity of 320,000 barrels a day;• Tank depots with a capacity of up to 16 million barrels of crude.
Introduction
Curoil:• Curoil started operations on November 1, 1985;• Curoil’s sole shareholder: Government of Curaçao;• Curoil has a network of international suppliers and traders
to deliver products;• Annual Turnover: $ 560 million (2013);• Products: Marine Fuel Oil, Low Vanadium and Low Sulfur Fuel Oil,
Marine Gas Oil, Low Sulfur Diesel and Marine Lubricants;• Services:
- Onshore/Offshore bunkering via pipeline, barge or truck- Sales team available 24/7 and 365 days a year
• Curoil operates under international ISO-Certified standards andcan supply almost any size of vessel including oil rigs.
IntroductionActive Routes:• Caribbean region has an active bulk vessels, cruise lines,
and tanker route.
Source: Ctrack Platts Tool 2013
Introduction
Some important (bunkering) ports:− Port of Spain− Willemstad− Oranjestad (Aruba)− Oranjestad (St Eustatius)− Cartagena− Puerto Cabello− Panama− Kingston
Source: http://www.wikipedia.org/
1.Introduction
2.Developments in the Bunkering Market (Caribbean)
3.Closing remarks
Agenda
New entrants:• In Jamaica, West Indies Petroleum emerged in 2012 as the
first all Jamaican owned fuel company of the island.• OW Bunkers opened their office in Cartagena, Colombia in 2013.• New terminals are being constructed on the Colombian North Coast.• Buckeye Terminals acquires Hess Oil Terminals in St. Lucia in 2013.• Curoil expanded bunkering services to Aruba in 2013.
Refineries Shutdown: There is a growing tendency of refineries being shutdown and/or turned into storage locations; the refining installations require huge investments in order to comply with modern environmental regulations and consequently are no longer profitable.
Developments in the Bunkering Market
(Caribbean)
Refineries Shutdown:Some Examples:• Yabucoa Puerto Rico (Shell) Refinery (77K bbls/day) closed in 2009;
now oil terminal (Buckeye) with 4,6 million bbls capacity.• Aruba Refinery (235K bbls/day) closed in 2012.
The increasing demand for storage in the Caribbean and environmental regulations will definitely increase this discussion in the coming years.
Developments in the Bunkering Market
(Caribbean)
Developments in the Bunkering Market
(Caribbean)
Source: www.amnautical.com
Demand:Environmental pressure, legislations, the emergence of Emission Control Areas (ECA) and the present prices of bunker fuels also affect the bunker market. • Due to the regulations there is an emergence of cleaner products, in
particular for low sulfur fuels;• Additionally there is a growing interest in shifting to LNG as a bunker
fuel;• In order to reduce costs, most maritime cargo fleets are changing to
slow steaming; this also results in some reduced emissions;• In order to rip the economies of scale the size of vessels is also being
increased;• New (and existing) vessels are being equipped with scrubbers to deal
with SOx emissions.
Developments in the Bunkering Market
(Caribbean)
Developments in the Bunkering Market
(Caribbean)
Supply:• Focus on the production of clean products, causes incidental
shortages of bunker fuels (smaller bottom of the barrel).• Increased premiums due to higher quality requirements.
Natural Gas Explorations:In the Caribbean there is an increased exploration for natural gas.Anticipating drilling together with efforts of Caribbean islands to pursuesustainable energy, plans are being made to invest in LNG Storagefacilities and infrastructure. Also Utility Companies are contemplating toswitch fully to LNG.
This shift will change the market dynamics drastically.
Developments in the Caribbean Bunkering
Market
Developments in the Bunkering Market
(Caribbean)
Source:http://info.drillinginfo.com
Agenda
1. Introduction
2. Developments in the Bunkering Market (Caribbean)
3. Closing remarks
Closing remarks
• Global trade will continue to show a growth in the comingyears as the consumer class increases in BRICS. This will drivethe transportation sector (marine and air) for the comingyears and the Caribbean will remain a crucial connecting(bunkering/fueling) hub for the commercial routes.
• The constant quest for more economical fuels and environmental awareness will drive the demand.
• The future looks bright for the energy sector in the Caribbean;the only challenge is adapting timely to the new marketdemands.
THANK YOU