LNG Bunkering

Argus Media: South Korea’s revised gas law promotes LNG bunkering

The separation of the LNG bunkering market, coupled with relaxations on import volumes and price regulation,is aimed at revitalising the domestic LNG market, it said.

Published

6 years ago

August 6, 2020

Admin

Jonah Foong of global energy and commodity price reporting agency Argus Media on Wednesday (5 August) published an update on the Korean government’s revised policies to lower barriers of entry to the liquified natural gas (LNG) bunkering industry and outlines its impact on fostering the fledgling sector:

South Korea has revised legislation governing the development of its urban gas business to include LNG business for vessel use, as part of an effort to promote its domestic LNG bunkering sector.

The revised Urban Gas Business Act takes effect today and will also see the LNG bunkering sector classified separately from the existing gas market, with businesses wishing to engage in LNG bunkering subject to separate regulations.

The government expects the separation of LNG bunkering from the existing gas market, coupled with relaxations on import volumes and price regulation, to create new demand for LNG and revitalise the domestic LNG market.

The revised legislation is aimed at opening up the fledgling LNG bunkering market to more LNG suppliers to ensure robust and competitive supplies. Interested LNG bunker fuel suppliers will no longer be required to seek government approval on the price and volume of LNG imports, although the government must still be notified of any import plans.

The government has lowered the minimum requirement for private-sector firms to enter the bunkering market as LNG fuel suppliers. Firms are required to have an LNG storage tank, an LNG tank attached to a vehicle or an LNG supply vessel, as well as a minimum of 100mn won ($84,000) in capital. LNG bunkering involves the supply of the fuel from truck to ship, or from ship to ship or storage tank to ship.

South Korea has been promoting LNG bunkering by encouraging the development and distribution of “environmentally friendly” vessels, which could support demand for the use of LNG in bunkering operations, as well as vessels powered by LNG. It has already said that it will order 140 LNG-powered vessels over the next six years to support its small and medium-size shipbuilding industry.

South Korea’s LNG bunkering demand is expected to rise to 1.23mn-1.36mn t in 2030 and 3.37mn-3.43mn t in 2040, according to the Korea Energy Economics Institute. State-owned LNG importer Kogas said in 2018 that it expects demand in the domestic LNG bunkering market growing to 311,000 t/yr by 2022.

The move to foster the growth of LNG bunkering is in line with stricter restrictions on vessel emissions by the International Maritime Organisation (IMO) that came into force this year. The IMO has capped the sulphur content in marine fuels at less than 0.5pc as of 1 January from 3.5pc previously, accelerating the shift away from heavy fuel oil to cleaner bunker fuels like LNG.

Kogas signed a deal last month to set up an LNG bunkering joint venture by October with steel producer Posco, shipowner Hyundai Glovis, refiner S-Oil, Busan Port Corporation and Daewoo Logistics. Kogas plans to acquire three LNG bunkering vessels as part of the venture, two of which are expected to operate in the East Sea/Sea of Japan and South Sea and another to operate in the West Sea/Yellow Sea.

Kogas also plans to develop an LNG bunkering facility in Dangjin on South Korea’s northwest coast, with a new LNG receiving facility expected to be completed in 2025. It had said in 2018 that it plans to build a new LNG bunkering facility in the southeast of the country by 2022.

The firm owns and operates five of the country’s seven terminals with a combined nameplate import capacity of 103mn t/yr. The remaining two terminals are the 3mn t/yr Boryeong, which is jointly owned by GS Energy and SK and Posco’s Gwangyang.

Photo credit: Argus Media
Published: 6 August, 2020

Alternative Fuels

DNV: Alternative-fuelled vessel orders down 11.6% in H1 2026

In total, 137 alternative-fuelled vessels were ordered in the first half of 2026 compared to 155 in the same period in 2025.

Published

1 day ago

July 3, 2026

Admin

DNV: Alternative-fuelled vessel orders down 11.6% in H1 2026

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform showed a total of 15 new orders for alternative-fuelled vessels were placed in June 2026.

This consisted of 10 orders for LNG-fuelled vessels, nine of which were car carriers and one a CO2 carrier. The remaining five orders were for LPG/ethane carriers.

Two LNG-bunker vessels were also ordered in June, bringing the total in this segment to seven so far in 2026.

In total, 137 alternative-fuelled vessels were ordered in the first half of 2026, down 11.6% from 155 in the same period in 2025.

Over half of these (73) were for LNG-fuelled vessels, with most coming from the container (42) and car carrier (21) segments. LPG/ethane carriers were also prominent, with 55 new orders, a significant uptick compared to the first half of 2025 (15). The remaining orders were for vessels fuelled by methanol (2), ethanol (2), ammonia (4), and hydrogen (1).

Deliveries in the first half of the year point to continued uptake of alternative-fuelled tonnage across several segments, with 61 LNG-fuelled vessels and 38 methanol-fuelled vessels delivered so far in 2026.

More recently, Exmar took delivery of what it described as the first oceangoing dual-fuel ammonia vessel, marking a step beyond earlier ammonia-fuelled deliveries, which have largely been associated with pilot or demonstration projects rather than commercial deployment.

DNV: Alternative-fuelled vessel orders down 11.6% in H1 2026

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “What we can take away from the first half of 2026, in terms of the alternative-fuels orderbook, is that we have a market progressing at different speeds depending on segment economics, fuel availability, and the regulatory landscape. Shipowners and other stakeholders are pursuing different pathways based on their individual priorities and requirements.

“LNG remains the leading near-term fuel option, with order activity continuing to be led by containers and car carriers. LPG and ethane carriers have also accounted for a significant share of activity in the first half of the year, while developments in areas such as ammonia and ethanol show that multiple pathways continue to be explored.”

Photo credit: DNV
Published: 3 July, 2026

Methanol

China: Zhejiang completes first ship-to-ship methanol bunkering operation at shipyard

Zhejiang Free Trade Zone PetroChina Fuel Oil’s bunker tanker “JIA CHEN 17” supplied 795 mt of methanol to a newly built 5,900 TEU Maersk methanol dual-fuel container vessel.

Published

2 days ago

July 2, 2026

Admin

China: Zhejiang completes first ship-to-ship methanol bunkering at shipyard

China (Zhejiang) Pilot Free Trade Zone on Tuesday (30 June) said it has completed the province’s first ship-to-ship (STS) methanol bunkering operation at a shipyard, marking a new milestone in Zhoushan’s efforts to expand its portfolio of alternative marine fuel bunkering services.

The operation took place recently at Qingshan West Berth No. 2 of Tsuneishi Group (Zhoushan) Shipbuilding, where Zhejiang Free Trade Zone PetroChina Fuel Oil’s bunker tanker JIA CHEN 17 supplied 795 metric tonnes (mt) of methanol to the newly built 5,900 TEU methanol dual-fuel container vessel MAERSK FLINDERS.

The bunkering operation was completed in approximately 5.5 hours, making it significantly more efficient than truck-to-ship methanol bunkering, which authorities said would have taken around nine times longer to deliver the same volume

According to local authorities, the operation is the first of its kind at a shipyard berth in Zhejiang Province, filling a gap in on-site bunkering capabilities for shipbuilding and repair yards. Zhoushan has previously conducted truck-to-ship methanol bunkering, truck- and ship-to-ship LNG bunkering, and blended biofuel bunkering operations.

The demonstration project forms part of Zhejiang’s strategy to develop green marine fuel bunkering under the China (Zhejiang) Pilot Free Trade Zone Bulk Commodity Resource Allocation Hub Development Plan, which calls for pilot bunkering of alternative fuels including green methanol, liquid hydrogen and ammonia.

Earlier this year, the China (Zhejiang) Pilot Free Trade Zone‘s Zhoushan Administrative Committee identified three priority projects: the world’s first anchorage ammonia bunkering operation, Zhejiang’s first shipyard-based STS methanol bunkering operation, and simultaneous LNG bunkering alongside cargo operations at Yongzhou Terminal, Ningbo-Zhoushan Port.

Authorities said the shipyard-based STS model offers operational advantages over both ship-to-ship and anchorage STS bunkering. In addition to reducing inter-island transport and lowering overall costs, conducting the operation alongside at the shipyard minimises weather-related disruptions and improves operational safety and schedule certainty.

Photo credit: China (Zhejiang) Pilot Free Trade Zone
Published: 2 July, 2026

Bunker Fuel

AD Ports Group and IRH Global Trading to advance bunkering at Khalifa Port

Both signed a MoU, outlining potential collaboration in bunkering services to vessels calling at Khalifa Port and the development of alternative bunker fuels such as LNG, biofuels, and methanol.

Published

3 days ago

July 1, 2026

Admin

AD Ports Group and IRH Global Trading to advance bunkering at Khalifa Port

AD Ports Group on Tuesday (30 June) said it has signed a Memorandum of Understanding (MoU) with IRH Global Trading Ltd. to explore strategic cooperation in bunkering services and alternative marine fuels at Khalifa Port.

The MoU outlines potential collaboration across a range of areas, including the provision of bunkering services to vessels calling at Khalifa Port, the development of alternative fuel solutions such as Liquefied Natural Gas (LNG), biofuels, and methanol, and the exploration of opportunities related to fuel storage infrastructure, terminal facilities, and fuel sampling and testing capabilities.

Saif Al Mazrouei, CEO, Ports Cluster – AD Ports Group, said: “This collaboration reflects our commitment to forging strategic alliances that create long-term, sustainable value.

“By working alongside trusted partners such as IRH, we are enhancing our capabilities and supporting the development of future-ready infrastructure and services that reinforce the UAE’s position as a leading global trade and logistics hub, in line with the vision of our wise leadership.”

Ali Rashed Alrashdi, Group CEO – International Resources Holding, said: “This collaboration with AD Ports Group reflects IRH’s commitment to build strategic partnerships that drive real economic impact.

“As we continue to develop our global energy trading platform, bunkering and alternative marine fuels represent a high-potential area of growth. We see Khalifa Port as an ideal base from which to explore these opportunities, and we look forward to working closely with AD Ports Group to bring them to life.”

Through this collaboration, AD Ports Group and IRH Global Trading aim to further enhance Khalifa Port’s value proposition as a multi-purpose, deep-water port that supports efficient, sustainable, and future-oriented maritime operations.

IRH Global Trading is a global commodities trading firm with interests across the mining and energy value chain and plans to build a diversified global minerals and energy trading platform, including LNG, Liquefied Petroleum Gas (LPG), crude oil, and petroleum products.

Photo credit: AD Ports Group
Published: 1 July, 2026