BUNKERING IN NIGERIA

Bunkering in Nigeria

                             

What does Bunkering mean in shipping?

The word bunker is derived from the Scottish word “bunk”, extensively it is used to describe an area to store and safeguard personnel and supplies like fuel, food and ammunition.

The meaning of bunker in the shipping industry is not really different, it is used to describe fuel and lube oils stored on a ship and used for machinery operation only. When a vessel is carrying marine fuel or lube oil to transfer to another ship or for its machinery, it is termed as bunker, if the vessel is carrying it to be discharged to another port it is not termed bunker.

Bunker fuel and oil on a vessel are stored in separate storage tanks called bunker tanks for consumption by the ship’s machinery.

Ships are supplied with bunker through different means such as bunker barges, pipelines, road tankers, the act of supplying a ship with bunker is called bunkering.

There are different types of bunker fuel /oil used by vessels: Heavy fuel oil bunker, Diesel oil bunker, marine gas oil bunker, lube oil bunker, LNG fuel bunker.

Why is it called Bunker Fuel?

As technology advanced, the steam engine was developed and its use became dominant in land and sea transport. Steam engines on ships were powered by feeding coal into furnaces on board the ship and the storage containers on the ship were called Bunkers, since then it has become synonymous with fuel used in ships and now “Bunker” is generally applied to the storage of petroleum products in tanks and the practice of fuelling and refuelling ships.

Types of Bunkering

There are two main types of bunkering procedures at sea, ship to ship bunkering (STS) and stern line bunkering.

Ship to ship bunkering is the most common type of bunkering procedure. In this procedure the two ships align themselves side by side while the oil is transferred from one vessel to the other. One ship acts as the terminal while the other moors, the ship receiving the bunker is called the daughter ship while the providing vessel is called the mother ship regardless of the size of the ships. A hose is connected from the mother ship to the daughter ship with a crane, then the oil is pumped initially at a low rate to ensure it’s entering the right tank before it is increased to the maximum to finish the job quickly.

Stern line bunkering is the easier of the two procedures But a very risky one especially in bad weather. In this procedure the two ships stay at a distance of 100-250 metres while towing lines are secured, long pipes of 200 meters are connected to transfer the fuel. The ships move at a constant speed of 2 nautical miles while fuel is being pumped simultaneously. This procedure depends on the calmness of the weather and the stability of the vessels.  this procedure can’t be performed during bad weather, the vessels could become unsteady and this could lead to a collision and make things ugly.

Bunker Prices

Bunker suppliers determine the price of their bunker based on their cost, product availability and logistics.

Bunker fuel prices are determined by a lot of factors, speculation in the crude market (bunker fuel are closely related to crude oil prices since they are a derivative of crude) , it also depends on the availability of the product in the market, the logistics of the supplier (bunker prices are higher if it is ordered close to the delivery date), refining priorities, capacity constraints etc.

Illegal Oil Bunkering

What is the meaning of Illegal Bunkering?

Illegal bunkering refers to all acts of oil: diversion and smuggling of oil, siphoning from pipelines, unauthorized loading of ships ;tapping into pipelines and transporting the oil to another destination to be sold or refined.

Illegal bunkering causes oil spills and explosions which are regular occurrences in the Niger Delta. Pipeline vandalism from bunkering leaves pipes vulnerable to leaks, spills and major accidents. Oil spills contaminate soil and ground water, destroy fish habitat and degrade the environment.

LNG Bunkering

Shipping companies are beginning to switch to liquefied natural gas due to rising concerns about the impact of traditional fuels on the environment. The increase in demand for LNG has encouraged ports around the world to develop LNG bunkering facilities.

LNG consumption meets current and future emissions, LNG has big advantages compared to fuel oil despite being a fossil fuel. It is an alternative fuel for ships.

LNG bunkering also has its own risks, it requires strict planning and monitoring, specific requirements on equipment and gearing methods to the installation of the receiving ship and the terminal tank, barge or truck made for specialist bunkering procedures including vapour management.

LNG Bunkering is restricted mainly by infrastructure, most ports with LNG facilities are concentrated in North Europe, US Gulf and East Coast. Although LNG bunker infrastructure is developing and expanding, most ports still consider LNG bunkering too big an investment

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