04 August 2010

Bunker market review – Big Port and inland waterways of St.Petersburg - II quarter of 2010

The Committee on transport-transit policy of Saint Petersburg has reviewed the bunker market in the waters of the Big Port of St. Petersburg and inland waterways within the boundaries of St. Petersburg in the II quarter of 2010.

From July,1 2010 international environmental requirements for the quality of bunker fuel were changed - the new version of Annex VI MARPOL (International Convention for the Prevention of Pollution from Ships) comes into force, in accordance with it a SECA (Sox Emission Control Areas, the Baltic and North Seas) is allowed to use marine fuel with sulfur levels less than 1% (instead of 1.5% previously). Subsequently, the expected further tightening of requirements in communicating with the permissible level of sulfur content in ship fuel to 0.1% from 2015. Major oil companies Lukoil, Gazprom Neft and Rosneft shows the greatest levels of bunkering.

Turnover of the Big Port of St. Petersburg in January-June 2010 has increased by 16% compared with the same period in 2009 - up to 26 million 350 thousand tons. Ships turnover of the port in January-June 2010 amounted to 7190 units (3603 + 3587 entry outputs). However, St. Petersburg market of marine bunkering remained the largest market of bunkering vessels in Russian ports.

Experts estimate the volume of the St. Petersburg market in the second quarter of 2010 about $ 197 million for the transshipment of oil products in the II quarter of 2010 were open berths JSC "Petersburg Oil Terminal, the berths ZAO Kanonersky shipyard, marinas Ltd. Baltic Works, marinas JSC Shipbuilding Plant "Severnaya Verf", berth № 94 Seaport pier "STP-1, pier heavyweights JSC" Kirov Plant "and two berths in the harbor of Lomonosov.

In the second quarter of 2010 in the Big Port of St. Petersburg, the average price of a dark bunker fuel (IFO-180 marks) with high sulfur content amounted to 10,200 rubles per ton (including VAT). The average cost of the same dark fuel with low sulfur content (up to 1,5% mass fraction) for the reporting period amounted to 11,500 rubles per ton (including VAT). The cost of diesel fuel on the bunker market of St. Petersburg was varied around the level of 17.96 rubles per ton. During the reporting period, the average cost of fueling small size of the fleet (boats, yachts, pleasure craft), operating on inland waterways of St. Petersburg and the Neva river, depending on the type of fuel was:

• For diesel fuel - 19,2 rubles per liter
• For a gasoline brand Ai92 - 21,3 rubles per liter
• For gasoline Ai95 - 23,9 rubles per liter
• Gasoline AI-98 - 28,3 rubles per liter.

Cargo turnover at the Volga-Baltic in May-June 2010 exceeded 6 million tons of cargo, representing 93% of the level of freight traffic over the same period of 2008. A year earlier (May-June 2009) the volume of freight traffic up 85% over the same period of 2008. Thus, the flow of goods by inland waterways of Russia restored, but has not yet reached pre-crisis volumes. Major shipping companies note that they prefer to buy oil from the oil companies to further their delivery to the ports, where the most appropriate and cost-effective to produce bunkering vessels. Most of these purchases made in the winter, which saves 10-15% of the cost of bunker fuel.

Shipping company usually do not have their own storages for oil products, so purchased and prepaid fuel is stored mainly at suppliers prior to their use. Storage of fuel paid separately. Volumes of non-recurrent supply range from 100 tons to 5 tons. Bunker market of St. Petersburg has traditionally characterized by the presence of a large number of participants. Marine fuel in the port during the second quarter sold 25 companies.

The largest volume of marine fuel implemented in the second quarter of 2010:

• LUKOIL-bunker "(99 tons)
• OOO Gazpromneft Marine Bunker "(92 tons)
• Ltd Baltic Oil Company "(structure uniting LLC PEAKING St. Petersburg" and "MBC") 50 thousand tons.

These companies are leaders in sales of fuel oil. The market leader for light marine fuel sales in the second quarter of 2010 were LUKOIL-BUNKER, LLC Gazpromneft Marine Bunker "and a subsidiary of OAO Rosneft -" RN-hopper. Total for the accounting period in the Big Port of St. Petersburg sold 461 tonnes of bunker fuel (an increase compared to second quarter 2009 by 2,6%), of which 410.1 thousand tons of fuel oil (by 1,4% more than period last year) and 50,9 tons of light fuel (on 13,4% more than the same period last year).

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