Hong Kong-listed marine fuel supplier Brightoil Petroleum is led in Houston by a group of fuel oil traders who left BP in June, while European dealer Arcadia's Houston team is headed by three traders formerly with Sempra, sources said.
Neither group has started trading actively, but both are ramping up and expected to begin in January, the sources said, bringing more competition to an already crowded field.
The move has sparked concern among USGC traders who are anxious about the potential impact.
"I would think that the last thing they need is another bunker supplier," said one USGC residual fuel market source. "Houston's pretty competitive already."
Neither company's representatives could be reached Wednesday for comment.
Brightoil's China operations cover ports in Shenzhen, Shanghai, Ningbo and Zhoushan, which are recognized as the busiest ports in the country. The company also has operations in Singapore, Hong Kong and the Antwerp-Rotterdam-Amsterdam market.
In September, Brightoil announced plans to expand its global presence into other major Chinese ports including Rizhao, Tianjin, Dalian and Qingdao and said preparation work for launching its bunkering service in Houston was in the final stage.
Arcadia, based in the United Kingdom, likewise is finalizing plans to open a USGC residual fuel desk.
Sources said that to maintain a global profile, it's essential to have a presence in Houston or New Orleans.
"If they're going to be a player, then they've got to be here," said a second USGC trade source. "They have the expertise. The key thing is getting the tankage lined up."
One bunker seller said that to get storage, Brightoil would likely have to sign a term deal for five years at 75 cents/month, a daunting proposition in a market where the month-to-month contango has been 20-50 cents/month.
"They asked me where they should get tanks," he added, "I told them I had no clue." His company's bunker margins were currently about 14 cents/b, he said, nowhere near high enough to cover costs.
One trader for Arcadia at a recent trading event indicated the company was in no hurry to take tanks in the current market, but was content to trade paper.
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