Platts European Bunker Fuel Conference 2015 - Ronald Backers

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Rotterdam Bunker Port …

Offers maximum optionality Fuel your business Make it happen

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ROTTERDAM

… because of all facilities in Rotterdam Fuels hub

• 10 refineries linked by pipeline • 45 chemical plants • 4 palm oil refineries • 6 biofuel plants

Production

• Storage capacity 31 mln m3 • Large-scale and divers • Competition • Extensive nautical facilities

Tank storage

• Optionality • Flexible nautical infrastructure • Transhipment hub • Price benchmark location

Trade

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Supply flows are changing due to different key developments

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Throughput of fuel oil has increased

• 60% of incoming fuel oil has origin in Russia and Baltic States

• 60% of outgoing fuel oil has Singapore as destination

0

5

10

15

20

25

30

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q12014

Q12015

Mill

ion

tons

Throughput fuel oil Rotterdam

Incoming

Outgoing

20-5-2015

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Arbitrage volumes in VLCC’s and Suezmaxes this year doubled compared to 2014

Import from Russia

Local production

Destination Asia-Pacific

Suezmax: 1319 (2.6 mln ton)

VLCC: 1021 (5.9 mln ton)

Full year 2014: - 29 VLCC’s, 8.1 mln tons - 41 Suezmaxes, 5.4 mln tons

Data until April

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Arbitrage volumes in VLCC’s and Suezmaxes over the last years

Import from Russia

Local production

Destination Asia-Pacific

2009 2010 2011 2012 2013 2014 Till April 2014

Till April 2015

# VLCC’s 16 35 32 39 30 29 10 21 # VLCC’s discharging crude 1st

11

31

23

31

14

20

6

9

Total HFO volume loaded in VLCC’s

3.8

8.7

8.2

9.7

8.3

8.1

2.8

5.9

2010 2011 2012 2013 2014 Till April 2014

Till April 2015

# Suezmaxes 5 22 36 39 41 13 19

# Suezmaxes discharging crude 1st

4

4

16

14

6

2

5

Total HFO volume loaded in Suezmaxes

0.7

2.4

4.6

4.7

5.4

1.7

2.6

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HFO bunker sales have stabilised in 2014

• There was a small increase in 2011

• Main cause of decrease has been slow steaming and other fuel efficiency gains

0

2.000.000

4.000.000

6.000.000

8.000.000

10.000.000

12.000.000

14.000.000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

tons

Physical deliveries HFO Rotterdam

Bunker volume HFO

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MGO/MDO increase because of ECA’s

Increase in 2010 and 2014

Bunker sales in Q1 (2014 compared to 2015):

HFO: 2.64 mln to 2.05 mln ton

MGO+MDO: 136,000 to 422,000 ton

0

100.000

200.000

300.000

400.000

500.000

600.000

700.000

800.000

900.000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Tons

Physical deliveries other bunkers Rotterdam

Lubes

MDO

MGO

Logo Sector-wide approach was set up to improve bunker sector

SIGNING CEREMONY

• 3 sector organisations + Port of R’dam Authority

• Focus on quality, quantity, transparancy & efficiency

• Various achievements, a.o.

• agreement on ‘black list’

• pilot on sampling

• Co-operation with international stakeholders to implement blacklist

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Debunkering

• Rules not clear in past years

• Agreement between all organisations involved regarding procedure

• Requests via Harbourmaster using standard De-bunker report and checklist

• De-bunkering report forwarded to other authorities

• As of january 2016 included in Rotterdam Port bye-laws.

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What will the future bring?

LNG Source: Stena

Source: DNV-GL

New container terminals

EU waters in 2020

Methanol

Scrubbers

Source: motorship.com

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Fuel your business

THANK YOU FOR YOUR ATTENTION!

Make it happen

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Ronald Backers Business Intelligence Liquid Bulk Mail: r.backers@portofrotterdam.com Telephone: +31 6 5102 7876 Twitter: @ronaldbackers LinkedIn: nl.linkedin.com/in/ronaldbackers/