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LNG Bunkering

Australia: Woodside eyes piece of LNG bunkering pie

‘The LNG fuels opportunity is an adjacent opportunity. You might say it’s the cherry on top,’ says COO.
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Woodside Energy Ltd., the largest Australian natural gas producer which operates around 6% of global liquefied natural gas (LNG) supply, on Monday (29 July) said it will be making plans to start LNG bunkering operations.

Meg O’Neill, Chief Operations Officer at Woodside, was giving a speech at AmCham, an organisation that promotes international trade and commerce and a strong relationship between America and Australia, when the noted of the development.

Her speech, which describes opportunities for the company to invest in LNG as a marine fuel and its logic in doing so, is as follows: 

We know we need to be strategic and ambitious. And there is no better example of this than how we have in recent years worked to support the emergence of a market for LNG fuels.

We have not done this alone. And we have not yet reached our goal. But we are seeing some promising developments. This is a story that is much bigger than Woodside. It’s about Western Australia grasping an opportunity to take advantage of international developments to derive both economic and environmental benefits from its natural resources.

Almost three years ago, the International Maritime Organisation agreed that from January 2020 all ships would be required to use lower-sulphur fuel. That is, fuel with a maximum sulphur content of 0.5%.

The IMO’s objective was to reduce the health impacts of air pollution from shipping, which is blamed for hundreds of thousands of premature deaths each year from lung cancer and cardiovascular disease. The IMO has since indicated it will also impose future controls on greenhouse gas emissions from shipping.

The start of the lower-sulphur era in January 2020 will create upheaval for global shipping. But for Western Australia, it creates opportunity. This state has world-class LNG supplies close to the busiest bulk commodity trading route in the world, shipping iron ore exports to Asia.

Soon after the IMO’s ruling, an industry coalition was formed that would lay the vital groundwork to facilitate LNG fuelling of commodities exports from Australia by designing the vessels that could ply those routes.

The Green Corridor Joint Industry Project involved the major mining companies – BHP, Rio Tinto and Fortescue – along with Woodside and shipping industry partners. Together we developed a design of LNG-fuelled bulk carriers capable of supporting iron ore exports to Asia.

Now BHP is taking this opportunity to the next step, announcing just two weeks ago the world’s first tender for LNG-fuelled transport for up to 27 million tonnes of its iron ore.

It’s a significant move and this tender will no doubt be hotly contested. Woodside has already been working towards this for some time. We took delivery of our own LNG-fuelled marine support vessel, the Siem Thiima, in 2017 and have been preparing the infrastructure to enable LNG fuelling of bulk carriers at their home port.

These ships will deliver to many ports across north-east Asia, but they will always come home to the Pilbara, which is also home to significant LNG production. So they don’t need to waste time and fuel diverting to find LNG elsewhere in the region.

Last week, consultancy Energetics reported that “well-to-wake” lifecycle greenhouse gas emissions for iron ore carriers operating from the Pilbara would be reduced by up to a third by using LNG from Woodside, rather than heavy fuel oil.

This could yield greenhouse gas savings of up to 5.8 million tonnes of carbon dioxide equivalent per year if all iron ore exports from the Pilbara were shipped using Pluto LNG. That’s equal to taking 1.8 million cars in Australia off the road. Emissions of sulphur oxide and particulate matter would be reduced by more than 95% and nitrogen oxide by an estimated 85%.

The environmental prize is large – and so is the size of the economic prize. The potential market for LNG as a marine fuel is vast.

WA’s Minister for Regional Development Alannah MacTiernan put it well at a Marine Fuels Institute roundtable last week when she said this was an opportunity to “drive emissions down but still have a vibrant economy”.

If all shipping from the Pilbara transitioned to LNG, it would be around 4 million tonnes of LNG fueling. It’s potentially a very significant new market and would create a new industry in WA that could grow to a fleet of bunker vessels with hundreds of new high-skilled long-term jobs. This is an opportunity to demonstrate industry collaboration at its best, using Australian LNG to fuel Australian resources exports.

I’ve been asked recently if our Burrup Hub growth strategy is contingent on the market for LNG fuels taking off. It’s not. We know there will be enough global demand for LNG to soak up supply from both Scarborough and Browse.

The LNG Fuels opportunity is an adjacent opportunity. You might say it’s the cherry on top – and it’s a blindingly obvious market for WA to try to capture, with the potential for a whole new industry and the jobs and investment that brings. And now is the time to be going after that opportunity.

Related: Woodside tendering for LNG bunkering vessel for West Australia ops
Related: Gas Energy Australia highlights LNG bunkering uptake barriers
Related: Woodside: Dampier LNG bunkering a successful example for the Asia-Pacific
Related: Woodside: Focus on the ‘fundamentals’ for LNG-fuelled vessel success
Related: HHI’s LNG-fuelled VLOC receives approval in principle

Photo credit: Woodside
Published: 2 August, 2019
 

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.
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July 21, 2026

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CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

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Alternative Fuels

ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

B100 discount to LSMGO widens to $541/mt in Rotterdam; Singapore’s B100 drops to $106/mt below LSMGO; Rotterdam LBM at $639-833/mt discounts to LSMGO.
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ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

20 July 2026

  • B100 discount to LSMGO widens to $541/mt in Rotterdam
  • Singapore’s B100 drops to $106/mt below LSMGO
  • Rotterdam LBM at $639-833/mt discounts to LSMGO

B100’s premium over HSFO in Rotterdam has narrowed by $50/mt over the past week to $64/mt, while its discount to VLSFO has widened by $83/mt to $105/mt.

B100 has become far more competitive against LSMGO in Rotterdam, with its discount widening by $180/mt over the past week to $541/mt, as a surge in conventional fuel prices left B100 broadly unchanged by comparison.

B100’s price has risen by $109/mt in Singapore, but its discount to LSMGO has still widened by $102/mt to $106/mt, as LSMGO surged by an even greater $211/mt.

Rotterdam’s LNG premium over VLSFO has widened by $35/mt to $201/mt for vessels with Otto medium speed (Otto MS) engines. For vessels with diesel slow speed (diesel SS) engines, LNG has flipped to a $15/mt premium over VLSFO, from a $22/mt discount the prior week.

Liquefied biomethane (LBM) discounts to VLSFO in Rotterdam have narrowed by $50-52/mt to $203-396/mt over the past week. Against LSMGO, LBM discounts have widened by $45-47/mt to $639-833/mt, depending on engine type.

In Singapore, LNG is now $42/mt cheaper than LSMGO for vessels with Otto MS engines, and $134/mt cheaper for vessels with diesel SS engines.

ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

Liquid fuels

HSFO and VLSFO prices in Rotterdam have jumped by $66/mt and $99/mt respectively over the past week, while LSMGO has surged by an even steeper $196/mt. A $9.69/bbl ($71/mt) rise in front-month ICE Brent futures, to $87.94/bbl ($645/mt), drove bunker prices sharply higher across the board.

Bunker fuel availability is tight for prompt delivery dates in the ARA ports, with buyers advised to enquire about stems between 5-7 days ahead to get good coverage, a trader said.

Rotterdam’s B100 price has risen by $16/mt over the past week. Dutch ZRE A ticket prices were unchanged at €107.50/mtCO2e.

Singapore’s HSFO and VLSFO prices have risen by $130/mt and $132/mt respectively, while its LSMGO price has gained an even steeper $211/mt over the past week.

VLSFO availability in Singapore has been tight, with several suppliers reporting low stock levels. Recommended lead times have widened from 13–17 days last week to 14–19 days now.

Liquid gases

Rotterdam’s LNG prices have surged by $134-136/mt over the past week, while its LBM prices have climbed by $149-151/mt.

LBM discounts to LNG in Rotterdam have narrowed by $15/mt to $404-411/mt.

Singapore’s LNG bunker benchmarks have surged by $196-197/mt over the past week.

By Erik Hoffmann

 

Photo credit and source: ENGINE
Published: 21 July, 2026

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