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Dutch Energy Giant Secures Bunker Fuel Deals as Gwadar Emerges as Alternative to Gulf Ports

Karachi: Pakistan’s Gwadar Port is poised to emerge as an alternative refueling hub for commercial ships after Dutch energy trader Vitol began supplying marine fuel at the deep-sea port, with up to 30 bunker deliveries to international shipping lines expected in the coming weeks, people familiar with the matter told Arab News on Wednesday.

Bunkering, the business of supplying fuel to commercial vessels, has long been dominated in the region by ports such as Fujairah and Khor Fakkan in the United Arab Emirates.

Vitol Bunkers (S) Pte Ltd, the marine fuels arm of Netherlands-based Vitol Group, launched operations at Gwadar this week after clients sought alternative fuel supply locations amid renewed tensions around the Strait of Hormuz, raising prospects that Pakistan could establish Gwadar as a regional bunkering hub.

“The customers, after all the Middle Eastern crisis and everything, they are looking for options,” industry sources, speaking on condition of anonymity, said.

“They are not getting credible options at the moment,” they added.

Fresh US strikes on Iranian military targets and Tehran’s threats to disrupt regional energy exports have heightened risks for commercial shipping, prompting some shipowners and charterers to reassess routes, delay voyages and seek alternative bunkering hubs outside the Gulf.

According to Ammar Hussaini, Vitol’s global strategic business manager, Gwadar Port has “benefited from significant investment.”

“We look forward to building our offering in this location and serving customers across the region,” he said, according to a statement published on the company’s website a day earlier.

Hussaini was not available for comment. However, the people familiar with the matter said the company was seeking to position Gwadar as an alternative to existing regional bunkering ports.

“What we are trying to do is to basically present Gwadar as a credible option to the customers,” they said. “If there is an attack in Fujairah, then the customer needs bunkers.”

Sources said Vitol Bunkers launched its Gwadar service by supplying 2,500 tons of Very Low Sulphur Fuel Oil (VLSFO) to a liquefied natural gas (LNG) vessel on July 14.

They noted that Vitol has already “locked the future deals” with its clients for supplies at Gwadar.

The company plans to supply different varieties of fuel to customers in Pakistan using feedstock from local refineries. It currently operates two barges — or floating vessels used to supply fuel to ships — and has the capacity to supply up to 50,000 tons of bunker fuel per month. – Arab News

 


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