TFG Marine, Trafigura’s joint venture with two John Fredriksen-controlled firms, has grown to become a major bunker supplier within months of its establishment and is eyeing further expansion.

In its annual report, Trafigura said TFG Marine was already supplying 540,000 tonnes of marine fuel in 300 trades per month as of at the end of September.

The venture has been physically delivering bunker fuel in 12 locations across Asia, north-west Europe, the Americas, and West and South Africa, including Singapore and the Amsterdam-Rotterdam-Antwerp area.

In Singapore, the world’s largest bunkering hub, TFG Marine has built its own fleet of bunker tankers and plans to increase sales significantly in the coming year.

Trafigura said that in the new financial year from October, further bunkering operations are planned in the US Gulf Coast, the Mediterranean, South Africa, the Middle East, China and South Korea.

TFG Marine, which began operations in early 2020, is 75% owned by Trafigura, 15% by Frontline and 10% by Golden Ocean.

Rapid expansion

The company acts as the exclusive buyer of marine fuel for its shareholders, Avance Gas and Flex LNG, another two Fredriksen firms, according to Trafigura. This has led to its rapid expansion.

TFG Marine buys about 250,000 tonnes of marine fuel per month in more than 250 bunkering ports globally.

“Further growth of the procurement business, both in terms of volumes and extending the customer base, remains a focus over the coming year,” Trafigura said.

The trading giant did not disclose TFG Marine’s financial performance. However, Frontline recorded a profit of $700,000 for its stakeholding in the company from January through September. This suggested a profit of $4.67m for the venture in the first nine months of 2020.

Golden Ocean reported its investment in TFG Marine had a book value of $500,000 as of end-September. This showed the venture was valued at $5m.

In line with the industry’s decarbonisation trend, Trafigura said TFG Marine will supply more low-carbon fuels in the future.

“From the first quarter of 2021, it is intended that its [TFG Marine’s] rapidly expanding business will allow it to offer a range of advanced marine biofuels to customers in the ports of Amsterdam, Rotterdam and Flushing,” Trafigura said.