Business

SEA-LNG: Understanding energy density of future marine fuels a key to decarbonisation choice

‘We must be clear on how fuel composition, pricing and performance measures are calculated,’ says Peter Keller, Chairman, SEA-LNG in a recent statement.

Published

5 years ago

July 5, 2021

Admin

The SEA-LNG on Friday (2 July) issued a statement highlighting the importance of accurate comparisons for energy density of future bunker fuels:

Just as for like full lifecycle GHG comparisons of future fuels are essential, accurate comparisons of energy density are also vital.

Greater understanding around the comparative pricing, vessel performance and procurement of marine fuels is required to avoid costly mistakes as companies plan their decarbonisation pathway.

Our announcement comes as we examine the individual capabilities and requirements of low emissions ‘future fuels’, including the impact that fuels’ energy density has on newbuild and retrofit investment decisions, on the size and cost of fuel storage systems, on available cargo and passenger space, vessel design, deadweight tonnage and on fuel purchasing for operators and owners.

The energy density of a fuel — measured in either volumetric energy density or gravimetric energy density — is frequently overlooked due to ‘legacy’ fuel comparison methodologies.

This is where like-for-like comparisons based on unit volume or weight alone do not take a fuel’s real energy value property into account.

With an influx of new fuels coming into the market, evaluating fuel performance and price by metric tonnes is no longer fit for purpose without the correct context.

This is because the energy density of fuels will vary depending on their type and energy properties.

Volumetric energy density needs to be considered when looking at vessel investment decisions. The less storage space required for fuel means more space will be available for cargo.

Looking ahead, when hydrogen-based fuels such as green synthetic LNG and green ammonia become available from renewable energy sources, volumetric energy density will be important to ensure owners maximize the performance and value of their vessel investments.

The lower energy density will have an even bigger impact on vessel design, deadweight tonnage, cargo volume and passenger space.

Liquefied ammonia, for example, has approximately half the volumetric energy density of synthetic LNG and therefore requires twice the storage capacity.

In addition, the size and cost of the storage systems is affected by factors such as insulation and containment for cryogenic liquids, containment pressure and critical safety requirements.

This will likely mean less cargo capacity and the need to plan for a variety of design implications.

Gravimetric energy density is how much energy a fuel contains in comparison to its mass.

This measure is critical when comparing the energy costs of different fuels. When buying fuel, the transaction is really about buying energy to propel the ship and power any auxiliary operations.

Understanding how much energy you are buying is therefore an essential component of the bunker transaction. LNG offers a lower energy cost compared with traditional marine fuels.

When compared with VLSFO, LNG’s energy cost per metric ton starts with a 20% advantage because it contains 20% more energy per metric ton.

Wärtsilä’s John Hatley and Chair of SEA-LNG’s Investment Working Group said: “Understanding the different physical properties of current and future marine fuels is critical for the industry to make the right investment and fuel procurement choices. Getting it wrong will be costly.

“We need to understand and standardise the methodology now, so that the industry can start basing its fuel comparisons on a level baseline.” Peter Keller, Chairman, SEA-LNG said: “We must be clear on how fuel composition, pricing and performance measures are calculated.

Similar to the need for like for like comparisons when considering the full lifecycle analysis of future fuels, unless energy density comparisons are made accurately, we will continue to see a distorted picture.

This can seriously skew vessel operating forecasts and is an obvious concern when considering newbuild and infrastructure investments.

Ship owners and operators must have accurate and valid information to support shipping’s decarbonisation pathway.”

Understanding fuel performance is critical and will enable operators to make more informed decisions regarding pricing, value and ultimately their low carbon fuel procurement opportunities.

To support this there are also credible sources of pricing information. For example, Platts monthly average prices can be found here on our website.

This data is adjusted for energy content allowing one to see a cost comparison between Marine Gas Oil (MGO), Low Sulphur Fuel Oil (LSFO) and Heavy Fuel Oil (HFO).

Photo credit: SEA- LNG
Published: 5 July, 2021

Bunker Fuel

Singapore: Bunker fuel sales down by 3.8% on year in July 2026

4.73 million mt of various marine fuel grades were delivered at the world’s largest bunkering port in July, up from 4.92 million mt recorded during the similar month in 2025.

Published

21 hours ago

August 17, 2026

Admin

Singapore: Bunker fuel sales down by 3.8% on year in July 2026

Sales of marine fuel at Singapore port fell by 3.8% on year in July 2026, according to data from the Maritime and Port Authority of Singapore (MPA).

In total, 4.73 million metric tonnes (mt) (exact 4,731,900 mt) of various marine fuel grades were delivered at the world’s largest bunkering port in July, up from 4.92 million mt (4,918,000 mt) recorded during the similar month in 2025.

Deliveries of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in July (against on year) recorded respectively 1.95 million mt (zero from 1.95 million mt), 2.33 million mt (-2.1% from 2.38 million mt), 1,600 mt (+100% from zero), 700 mt (-82% from 3,900 mt) and zero (from zero).

Singapore: Bunker fuel sales down by 3.8% on year in July 2026

Bio-blended variants of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in July, (against on year) recorded respectively 8,200 mt (-83.7% from 50,300 mt), 29,900 mt (-62.9% from 80,500 mt), zero (from zero), zero (from zero) and zero (from zero). B100 biofuel bunkers, introduced in February last year, recorded 1,400 mt (-46.2% from 2,600 mt).

LNG and methanol sales were 58,700 mt (+41.4% from 41,500 mt) and zero (from zero) respectively. There were no recorded sales of ammonia for the month and so far since 2025.

Photo credit: Maritime and Port Authority of Singapore
Published: 17 August, 2026

Alternative Fuels

Ammonia, methanol bunkering workshops to be held at 13th Singapore Safety@Sea Week

Three workshops on ammonia bunkering, methanol bunkering, and crew safety awareness are part of MPA’s Safety@Sea Week, which will be held from 17 to 21 August.

Published

21 hours ago

August 17, 2026

Admin

The Maritime and Port Authority of Singapore (MPA), together with industry partners, on Monday (17 August) launched several new initiatives to enhance maritime safety.

Announced at the opening of the 13th Singapore Safety@Sea Week, these initiatives will support shared learning, strengthen operational capabilities, and prepare the industry for the safe adoption of new technologies.

Organised by MPA from 17 to 21 August, this year’s Safety@Sea Week is themed “All Hands on Deck – Safety First!”. About 1,500 participants from across the maritime community are expected to take part in 18 events organised by MPA and its partners.

These include the Safety@Sea Symposium, featuring seven speakers across two panel sessions, and three workshops on ammonia bunkering, methanol bunkering, and crew safety awareness.

Speaking at the opening, Mr Murali Pillai, Senior Minister of State for Law and Transport, highlighted three priorities for strengthening maritime safety: harnessing technology responsibly, preparing early for emerging risks, and keeping people at the centre of safety. He also underscored the importance of strong partnerships across the maritime community in building a strong safety culture.

At the opening of Safety@Sea Week, the National Maritime Safety at Sea Council and the Singapore Shipping Association launched the Singapore Near Miss Reporting System to encourage the reporting and sharing of lessons from near miss incidents.

Modelled on the internationally recognised Confidential Human Factors Incident Reporting Programme (CHIRP), the system provides sea space users with a confidential online channel to report near misses. CHIRP will independently receive the submissions and provide anonymised information to the Council, which will distil key safety lessons for sharing with the wider maritime community.

Note: More information about the event can be found here.

Photo credit: Peter Nguyen on Unsplash
Published: 17 August, 2026

Bunker Fuel

Alkagesta highlights key insights on European choke point pressures in August

Update covers dual supply crisis currently shaping global bunker markets — a stalled Strait of Hormuz peace process and Rhine water levels at a 140-year record low — and the implications for Singapore.

Published

21 hours ago

August 17, 2026

Admin

Malta-based global commodity trading house Alkagesta recently shared latest market insight examining the dual supply crisis gripping global energy markets as diplomatic efforts to reopen the Strait of Hormuz stall and Rhine water levels fall to record lows, creating what the company describes as a “state of emergency” for European inland fuel distribution.

In an article published on Alkagesta Market Insights on 11 August, the company’s trading and market intelligence teams outlined how the convergence of two simultaneous logistical crises is tightening prompt fuel availability across Singapore, Northwest Europe, and the Mediterranean:

Strait of Hormuz transits fell to a near-one-month low of 13 ships on August 9 following an attack on an ADNOC-linked tanker, as both the US and Iran demand war reparations before any reopening agreement can be reached. Simultaneously, Rhine water levels at the Kaub chokepoint fell to 16 cm on August 10 — the lowest since records began in 1880 — with forecasts pointing to a further drop to just 4 cm by August 14, effectively halting barge traffic and trapping fuel oil stocks at the ARA hub.

The supply picture across both key hubs has deteriorated sharply. In Singapore, Middle Eastern fuel oil imports nearly tripled week-over-week to 328,878 mt by July 29 — the highest volume since March — providing some relief as onshore commercial heavy distillate stocks rose to a five-week high of 19.58 million barrels by August 5. However, July bunker fuel sales are estimated to have fallen 3.7% month-over-month to 4.44 million mt, with elevated premiums redirecting prompt demand toward alternative ports including Zhoushan and Port Klang.

In Europe, the VLSFO market remains acutely undersupplied as refiners continue to prioritize high-margin diesel over low-sulfur blending components, while the Rhine crisis has forced barges to operate at just 15–20% of normal capacity — with freight rates from Rotterdam to Karlsruhe rising more than 400% in two months.

Alkagesta’s strategic outlook points to a potential total breakdown in Rhine-linked inland distribution by mid-August, a VLSFO Hi-5 spread likely to remain above $200/mt through Q3, and a global crude market that analysts warn requires an additional 2.1 million b/d for 18 months to rebuild depleted inventories.

Note: The full article can be read here.

Photo credit: Alkagesta
Published: 17 August, 2026