Vitol has launched a global bunkering service following recent asset acquisitions in the marine fuel industry.
In an emailed statement, the trading giant said Vitol Bunkers will offer “worldwide access” to bunker fuels with its “global reach, infrastructure and commensurate supply capabilities”.
Chris Young, account manager at the new business, said Vitol has been a leading trader in bunker fuels for decades.
“Today, we are excited to be extending our services and we look forward to delivering the highest quality marine fuels to new and existing customers, across key locations,” he said.
Vitol is one of the biggest charterers of tankers and bunkers, with over 250 vessels at sea transporting its cargoes at any one time.
The company also manages its own fleet of vessels through LSC, the trader's Latvian-based technical manager.
Vitol stressed the new business will combine its experience trading bunker with shipping expertise, though the company would not position the business as the exclusive fuel supplier to its fleet.
In April 2020, Vitol acquired Sinanju Tankers Holdings in Singapore, the world’s largest refuelling hub, and took over a fleet of 15 modern Singapore-flagged bunker tankers.
These include the 7,990-dwt Marine Vicky (built 2019) — Singapore’s first LNG powered dual-fuelled bunker tanker.
The company later took control of the operation of the bunker supply business at St Eustatius via “long-term strategic relationship” with GTI Statia, which is owned by US private equity firm Prostar Capital.
“We see business opportunities in particular sectors, such as bunkering in growth markets, including Asia and the Middle East, and are expanding our offering to capture these,” the company said in its annual update earlier this year.
Vitol separately owns a 50% stake in Dubai-headquartered fuel reseller Cockett Group, which has an annual revenue in excess of $1.5bn. Cockett will remain independent from Vitol’s bunker business.
Some other major trading houses have also been expanding in the bunker industry, where small players are squeezed by tighter credit conditions and regulatory requirements.
In 2019, Trafigura established TFG Marine with Frontline and Golden Ocean, two shipping companies backed by John Fredriksen. The bunker venture has undergone rapid expansion in recent quarters.
Mercuria Energy Group took over troubled Aegean Marine Petroleum Network and its fleet of bunkering ships in 2019, and the unit was later renamed Minerva Bunkering.
On the other side of spectrum, Glencore sold wholly owned subsidiary OceanConnect Marine — a marine fuel trader — to KPI Bridge Oil last year.
