King Abdullah Port inks agreements with two bunkering service providers

Two bunkering service providers to operate at King Abdullah Port: Saudi Arabia’s King Abdullah Port has inked strategic partnerships with two marine fuel service providers — UK-based Western Fuel Supply for Petroleum Products and global fuels provider Minerva Bunkering — to provide bunkering services, according to a statement. The move comes as the port looks to boost its maritime service offerings to vessels, the statement said.

Saudi Arabia has been on a bunkering spree: The Saudi Ports Authority(Mawani) recently inked an agreement with Alba Nova and Trafalgar Oil to establish a SAR 2 bn integrated center for bunkering in Saudi’s King Fahad Industrial Port in Yanbu, as part of plans to supply 10 mn tons of fuel to vessels transiting through and arriving to Saudi ports.

Minerva is making rounds across the MENA region: Minerva Bunkering, subsidiary of Mercuria Energy Group, recently began providing bunkering services in Egypt’s Suez Canal, with deliveries to 10 bunker clients in May. The Suez Canal had granted one-year bunkering licenses to Minerva Bunkering, Coral Energy, and Peninsula last year through a tender.

More competition for the UAE’s bunker hub Fujairah: The increased presence of alternative fueling options in Saudi Arabia, Oman, and other ports in the UAE, like Sharjah, has contributed to sluggish demand in Fujairah, according to S&P Global. This has led to a 10.5% y-o-y drop in bunker sales to 3.6 mn cubic meters in 1H 2023, according to S&P Global data.