Connect with us

LNG Bunkering

SEALNG: Choose LNG today to make tomorrow’s climate challenge easier

Adopting a policy of waiting until a future fuel is proven and available, as some appear to prefer, will only exacerbate the GHG challenge the world is confronting.
Admin

Published

5 years ago

on

Maritime Port Authority Singapore

Global multi-sector industry coalition SEALNG on Wednesday (17 February) wrote an open letter to the shipping industry highlighting the merits of liquefied natural gas (LNG) as a marine fuel:

Why waiting is not an option

Adopting a policy of waiting until a future fuel is proven and available, as some appear to prefer, will only exacerbate the greenhouse gas (GHG) challenge the world is confronting.  For every large (14,000 TEU) container vessel that continues to burn fuel oil instead of LNG, the opportunity to reduce emissions by the equivalent of removing 13,000 family cars from the road is missed.  As GHG emissions are cumulative, the decarbonisation challenge only gets tougher.

Often based on outdated data, methane slip has become an overused argument for those wishing to justify inaction.  There are marine engines on the market today with virtually no slip.  It is only an issue for certain LNG engine technologies, and even they exhibit lower GHG emissions than the equivalent HFO/MGO operation.  For this specific subset of engines, reductions are now available from the latest engine designs with further improvements on the horizon.

Shipping’s current public decarbonisation debate is focused on the destination and pays little attention to the roadmap and practical details of how we reach our goals.  People are trying to define the destination product without a pathway to success.  The challenge is one of pace and scale and as with any such challenge, what matters most is what we can do now to create the platform for changes that need to happen in the future; a platform where all fuels have a level playing field to compete and one that ensures all are measured on a well-to-wake basis.

Investing in dual-fuel (DF) engine technology and taking advantage of LNG today, we have the opportunity to reduce GHG emissions now, with up to 21% GHG savings on a well-to-wake basis (up to 28%, tank-to-wake).  These reductions include all methane emissions.

LNG paves the way for the introduction of sustainable bio-LNG in the near term and zero-emission synthetic LNG in the long term.  Bio-LNG provides significant GHG reductions and is already being introduced.  Just 10% of drop-in bio-LNG with LNG provides approximately two years of additional compliance under Poseidon Principles measures.  Both fuels can be used interchangeably with existing LNG infrastructure and marine engines.

Not only does LNG provide a pathway to decarbonisation in its own right, but it also provides the physical infrastructure and asset base that can be used by other alternative fuels, when and if they become commercially viable.  The cost to society will be substantially less than the trillions of dollars estimated to construct the full infrastructure for future alternative fuels. Shipyards will also gain valuable experience in building vessels propelled by cryogenic or gaseous fuels.  Moreover, the development and dissemination of guidelines and processes for the safe bunkering of these fuels in ports around the world is enabled and, critically, the capacity to train seafarers in the use of new fuels will be developed.

While we may see a “basket of fuels” available in the coming decades, waiting 10 to 20 years before we make the necessary investments in ships and their associated marine fuel supply chains and human capital will only add to shipping’s decarbonisation challenge. Converting the future fleet to new fuels cannot be done overnight but will take a generation or more to complete. The choice today is not between LNG and alternative fuels of the future; industry consensus recognizes that the time horizon required means shipping companies will use either LNG or fuel oil until future fuels are readily available.

We must start now before more harm is done.

LNG is the pathway to the future.  We cannot wait.

 

Photo credit: Maritime and Port Authority of Singapore
Published: 19 February, 2021

Related Topics:
Continue Reading

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.

Admin

Published

14 hours ago

on

July 21, 2026

By

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

Continue Reading

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.
Admin

Published

14 hours ago

on

July 21, 2026

By

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

Continue Reading

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.
Admin

Published

14 hours ago

on

July 21, 2026

By

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

Continue Reading

Trending