Middle East and Africa Bunker Fuel Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 12.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Middle East and Africa Bunker Fuel Market Analysis
The bunker fuel market in the Middle East and Africa is expected to grow at a CAGR of more than 12% during the forecast period.
The market was negatively impacted by the outbreak of COVID-19 due to regional lockdowns. Currently, the market has rebounded to pre-pandemic levels.
- The increasing preference of LNG-based vessels and growing LNG trade is one of the significant factors driving the demand for bunker fuels in the Middle East and Africa during the forecast period. The region is also a global leader in crude oil production. With the expected increase in production, the demand for bunker fuel is likely to increase.
- However, the environmental concerns and the strict regulations related to emissions from the maritime industry are anticipated to limit the usage of heavy bunker fuels, especially the high Sulfur fuel oil, during the forecast period.
- Middle-East countries like the United Arab Emirates and Saudi Arabia are planning to increase crude oil production. With increased production, the shipping market is likely to witness significant opportunities in the forecast period.
- The United Arab Emirates is one of the largest exporters of crude oil, which also has a significant share in the container shipping sector. With the expected growth in trade, the nation is likely to continue its dominance during the forecast period.
Middle East and Africa Bunker Fuel Market Trends
VLSFO to Witness Significant Growth
- Marine fuel containing less than 0.5% sulfur is generally termed "very low sulfur fuel oil." From January 1, 2020, HSFO could only be used on ships with scrubbers installed to reduce emissions, which was expected to drive the demand for VLSFO.
- Most of the high-sulfur fuel oil (HSFO) bunker fuel market is expected to be shortly replaced by low-sulfur alternatives. Most of the VLSFO available on the market is blended from residual and distillate components, which are blended with various cutters of varying sulfur and viscosity to create an on-spec product.
- The demand for VLSFO slightly declined in early 2020 due to global supply chain disruptions, a decrease in demand for general goods and products, lockdown implementation in most countries, and a global economic slowdown.
- During 2021, with 9.55 million container throughput, Saudi Arabia witnessed a 5% increase as compared to 2021. The increase in throughput was due to the development of the King Abdullah Port of the Red Sea.
- The demand for VLSFO is likely to witness significant growth during the forecast period.
The United Arab Emirates to Dominate the Market
- The United Arab Emirates is one of the major oil producers and exporters in the region. In 2018, the state-owned oil company ADNOC announced that the country planned to increase its oil production capacity to 4 million barrels per day by the end of 2020 and 5 million bpd by 2030 after new oil and gas findings.
- With the expected increase in oil and gas production, trading activities are expected to further increase between the United Arab Emirates and the rest of the world. Several other goods, such as food items and manufactured goods, get traded in the country, for which seaports act as a gateway that enables trade across the region and beyond.
- In 2021, the container throughput was around 19.0 million TEU, which decreased by 0.7 million compared to 2020. The decrease in shipping container volume was due to the challenging macro-environment, the loss of lower-margin cargo, and softer volumes in the UAE shipping market.
- There are nearly 13 ports and terminals in the United Arab Emirates that have the infrastructure and facilities to supply marine fuels to the vessels operating in the region. Jebel Ali Port is the largest port in the United Arab Emirates and the Middle East region, with a container handling capacity of 19.3 million TEU.
- Fujairah Port, the second-largest bunkering port globally, is the only multi-purpose port on the eastern seaboard of the United Arab Emirates. Apart from the conventional marine fuel supply facility, the port authority plans to introduce a ship-to-ship LNG transfer facility, which is expected to support IMO regulation towards low sulfur content fuels.
- In May 2022, the Maritime and Port Authority of Singapore (MPA) declared that it had established that the contaminated bunker fuel had originated from the port of Khor Fakkan in the UAE. Such incidents are expected to severely jeopardize client confidence in bunker fuel originating from Khor Fakkan and the UAE, which is expected to restrain the growth of the market during the forecast period.
Middle East and Africa Bunker Fuel Industry Overview
The Middle-East and Africa bunker fuel market is moderately fragmented. Some of the major companies (in no particular order) include Gulf Agency Company Ltd., Abu Dhabi National Oil Company, Shell PLC, TotalEnergies SE, and Exxon Mobil Corporation.
Middle East and Africa Bunker Fuel Market Leaders
-
Gulf Agency Company Ltd
-
Abu Dhabi National Oil Company
-
Exxon Mobil Corporation
-
TotalEnergies SE
-
Shell PLC
*Disclaimer: Major Players sorted in no particular order
Middle East and Africa Bunker Fuel Market News
- May 2022: European Bank for Reconstruction and Development (EBRD) provided a USD 41.6 million loan to Agence Nationale des Ports (ANP) for the development of Moroccan ports. The loan will be supplemented by an investment grant of USD 5.7 million from the Global Environment Facility (GEF).
- December 2022: Sudan signed a USD 6 billion agreement with a consortium led by the United Arab Emirates' AD Ports Group and Invictus Investment to develop a new port and economic zone in the Red Sea.
Middle East and Africa Bunker Fuel Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Scope of Study
- 1.2 Market Definiton
- 1.3 Study Assumptions
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET OVERVIEW
- 4.1 Introduction
- 4.2 Market Size and Demand Forecast in USD billion, till 2028
- 4.3 Recent Trends and Developments
- 4.4 Government Policies and Regulations
-
4.5 Market Dynamics
- 4.5.1 Drivers
- 4.5.2 Restraints
- 4.6 Supply Chain Analysis
-
4.7 Porter's Five Forces Analysis
- 4.7.1 Bargaining Power of Suppliers
- 4.7.2 Bargaining Power of Consumers
- 4.7.3 Threat of New Entrants
- 4.7.4 Threat of Substitute Products and Services
- 4.7.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
-
5.1 Fuel Type
- 5.1.1 High Sulfur Fuel Oil (HSFO)
- 5.1.2 Very-Low Sulfur Fuel Oil (VLSFO)
- 5.1.3 Marine Gas Oil (MGO)
- 5.1.4 Liquefied Natural Gas (LNG)
- 5.1.5 Other Fuel Types
-
5.2 Vessel Type
- 5.2.1 Containers
- 5.2.2 Tankers
- 5.2.3 General Cargo
- 5.2.4 Bulk Carrier
- 5.2.5 Other Vessel Types
-
5.3 Geography
- 5.3.1 The United Arab Emirates
- 5.3.2 Saudi Arabia
- 5.3.3 Nigeria
- 5.3.4 Rest of the Middle-East and Africa
6. COMPETITIVE LANDSCAPE
- 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
- 6.2 Strategies Adopted by Leading Players
-
6.3 Company Profiles
- 6.3.1 Gulf Agency Company Ltd.
- 6.3.2 Abu Dhabi National Oil Company
- 6.3.3 Chevron Corporation
- 6.3.4 Shell PLC
- 6.3.5 TotalEnergies SE
- 6.3.6 Uniper SE
- 6.3.7 Exxon Mobil Corporation
- 6.3.8 Aegean Bunkering SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityMiddle East and Africa Bunker Fuel Industry Segmentation
Bunker fuel is the general term given to any fuel poured into a ship's bunkers to power its engines. Deep-sea cargo ships typically burn the heavy, residual oil left over after gasoline, diesel, and other light hydrocarbons are extracted from crude oil during the refining process. The Middle East and Africa bunker fuel market is segmented into fuel type, vessel type, and geography (the United Arab Emirates, Saudi Arabia, Nigeria, and the rest of the Middle East and Africa). By fuel type, the market is segmented into high-sulfur fuel oil (HSFO), very-low-sulfur fuel oil (VLSFO), marine gas oil (MGO), liquefied natural gas (LNG), and others. By vessel type, the market is segmented into containers, tankers, general cargo, bulk carriers, and others. The report also covers the market size and forecasts for the bunker fuel market across the major countries in the region. For each segment, market sizing and forecasts have been done based on revenue (USD billion).
| Fuel Type | High Sulfur Fuel Oil (HSFO) |
| Very-Low Sulfur Fuel Oil (VLSFO) | |
| Marine Gas Oil (MGO) | |
| Liquefied Natural Gas (LNG) | |
| Other Fuel Types | |
| Vessel Type | Containers |
| Tankers | |
| General Cargo | |
| Bulk Carrier | |
| Other Vessel Types | |
| Geography | The United Arab Emirates |
| Saudi Arabia | |
| Nigeria | |
| Rest of the Middle-East and Africa |
Middle East and Africa Bunker Fuel Market Research FAQs
What is the current Middle-East and Africa Bunker Fuel Market size?
The Middle-East and Africa Bunker Fuel Market is projected to register a CAGR of greater than 12% during the forecast period (2024-2029)
Who are the key players in Middle-East and Africa Bunker Fuel Market?
Gulf Agency Company Ltd , Abu Dhabi National Oil Company , Exxon Mobil Corporation , TotalEnergies SE and Shell PLC are the major companies operating in the Middle-East and Africa Bunker Fuel Market.
What years does this Middle-East and Africa Bunker Fuel Market cover?
The report covers the Middle-East and Africa Bunker Fuel Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Middle-East and Africa Bunker Fuel Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Middle East and Africa Bunker Fuel Industry Report
Statistics for the 2024 Middle East and Africa Bunker Fuel market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Middle East and Africa Bunker Fuel analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
