Peninsula launches physical bunker supply operations in South Africa

Global bunker supplier Peninsula said Sept. 16 that it has launched physical bunker supply operations in Algoa Bay in collaboration with Linsen Nambi, a Durban-based logistics service provider and bunker barge operator.

"This marks the latest step in the company's strategic expansion, following continued success in Mauritius, Egypt and a robust Intra-African reselling portfolio. From October, Peninsula is set to deliver bunkering services for high-sulfur fuel oil and very-low-sulfur fuel oil from a port that sits on one of the world's busiest maritime routes," the company said in an emailed statement.

"Together with our established presence in Mauritius, Algoa Bay allows us to create operational synergies across both markets," the statement said.

"Our expansion into Algoa Bay is a testament to our commitment to providing consistent product availability and optionality to our global customer network. Linsen Nambi's local expertise has been invaluable as we prepare to launch the operations, and we look forward to continued collaboration that paves the way for increased activity in South Africa," Peninsula CEO John A. Bassadone said in the statement.

According to the company's website, Linsen Nambi Bunker Services delivers marine fuel to customers in South African ports on behalf of the oil majors.

Algoa Bay, formerly South Africa's largest marine fuel hub, saw a tax dispute shutter its refueling operations from September 2023 through February 2025.

The disruption forced major suppliers to suspend operations, with some establishing new ventures in Mauritius and other East African ports.

"Algoa has actually been up and running for a while, with one supplier there," a South Africa-based trader told Platts. "So they will now have competition indeed. I think it's good to bring volume back to South Africa, so it's better overall."

On Aug. 29, the Bunker Industry Association of South Africa voiced concerns about new environmental regulations governing offshore ship-to-ship transfers, suggesting the rules could curb refueling operations at South African ports, particularly those near Algoa Bay.

Platts, part of S&P Global Energy, last assessed delivered bunker prices in the Port of Elizabeth at $615/mt on Sept. 1 for 0.5%-sulfur marine fuel oil. While 0.1% low-sulfur marine gasoil delivered was assessed at $1,110/mt on Aug. 18.