Singapore Trading Arm of Phillips 66 Leases New Floating Storage Vessel
The Singapore trading arm of U.S.-based refiner Phillips 66 has recently secured a lease for a new floating storage vessel along the Singapore and Malacca Straits for storing fuel oil, according to sources familiar with the matter.
The newly leased vessel, named Southern Emperor, has a capacity of 300,000 metric tons and joins the existing fleet of 19 fuel oil floating storage vessels operating along the busy shipping lanes of the Straits.
Phillips 66 had previously been utilizing the EM Splendour for fuel oil storage, but the addition of the Southern Emperor will provide the company with expanded storage capabilities in the region.
The Singapore and Malacca Straits serve as a strategic location for fuel oil storage in Asia, with traders taking advantage of the proximity to the world’s largest bunkering port in Singapore to build up inventories of the fuel.
Recent data from shipping analytics firm Kpler indicates that the total volume of fuel oil in floating storage along the Straits exceeds 2.6 million tons, underscoring the importance of the region as a hub for fuel oil trading and storage activities.
Market sources anticipate that the number of tankers utilized for storing fuel oil in the region will remain relatively stable throughout the year, reflecting the steady demand for storage capacity in the area.
(Source: Reuters – Reporting by Jeslyn Lerh; Editing by Janane Venkatraman)