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Argus Media: Alternative bunker fuels, Asian competition to shape Singapore’s future, shows poll data

Poll shows market participants think Singapore’s future as a bunkering hub in the near term will be impacted most by growth in alternative bunker fuels and intensifying competition from other ports in Asia.

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Sammy Six, Deputy Editor, Marine Fuels (Singapore) on Thursday (16 December) published poll data from a recent survey of Singapore’s bunkering sector:

The market has spoken. A poll conducted by Argus shows market participants think that Singapore’s future as a bunkering hub in the near term will be impacted most by growth in alternative bunker fuels and intensifying competition from other ports in Asia.

Unsurprisingly, LNG was voted as the alternative bunker fuel that is likely to account for the largest market share by 2030 given its ready availability and relative price transparency. LNG accounted for 40pc of the votes. A close second was biofuels with 38pc. Biofuels are seen as a popular option because they are mostly drop-in fuels, thus requiring little retrofitting of current engines. Ammonia (8pc) and methanol (3pc) claimed the third and fourth spot respectively, quite far off from LNG and biofuels. These products are already used as fertilizers and petrochemicals, but they are not (yet?) competitive in terms of prices, mainly because of their low energy density. Interestingly, not a single vote went to hydrogen, which reflects that fuel’s relative underdevelopment. Hydrogen today is mostly used in oil refining and petrochemicals, but it still lacks a presence in the transport and shipping sectors.

Which alternative bunker fuel will account for the largest market share by 2030?

Which alternative bunker fuel will account for the largest market share by 2030

More than three in four think that Singapore is well-positioned to remain the world’s largest bunkering hub in a zero-carbon world, because of its location, infrastructure and regulatory framework. But a few said that this was contingent on the city-state keeping up with developing infrastructure to accommodate the growth in alternative fuels. Northern Europe and the US are currently taking the lead here, with Singapore mainly focusing on building up LNG bunkering infrastructure. Singapore will see its leadership position eroded by alternative fuels being traded closer to the source of production, according to 18pc of market participants polled.

Will Singapore remain the world’s largest bunkering hub in a zero-carbon world?

Will Singapore remain the worlds largest bunkering hub in a zero carbon world

A clear majority, or about 62pc, think that Singapore will be impacted most by intensifying competition from other ports in Asia next year. Key ports in the region include Zhoushan in China, Busan in South Korea, Hong Kong and Fujairah. Closer to home, Indonesia and Malaysia are also eyeing a growing slice of the pie. Others think that the bunker landscape in Singapore will be changed mostly by intensifying competition among local suppliers (16pc), the ongoing Covid-19 pandemic (12pc), credit tightening (4pc), possible quality issues (2pc), the introduction of alternative fuels (2pc) and digitalisation (2pc).

Which factor will impact the Singapore bunker market most next year?

Which factor will impact the Singapore bunker market most next year

The poll also shows that the market is split on the future of high-sulphur fuel oil (HSFO) as a bunker fuel. Almost half of the respondents think that the price spread between HSFO and very low-sulphur fuel oil (VLSFO) will continue to support scrubber installations. A VLSFO premium of over $100/t to HSFO is typically seen as sufficient for shipowners to install scrubbers. Refining economics will indeed play a key role here, the poll indicated. But 50pc of those polled think that HSFO bunkering will become cost prohibitive as global supplies dry up and environmental regulations push the product out of the bunker pool. It will be interesting to see whether HSFO could then end up mainly in the power generation sector, if shipping would no longer provide a sink for the fuel.

What is the future of HSFO bunkering in the medium term?

What is the future of HSFO bunkering in the medium term

An overwhelming majority of respondents, or 73pc, think that Singapore will see its total bunker demand equal 50mn t or more in 2022. Singapore sold a total of 49.83mn t of bunkers in 2020, a 5pc increase from the year before. The Covid-19 crisis sparked a flight to safety. With a lot of uncertainty still looming going into 2022, mainly because of the Covid-19 Omicron variant, this could once again prove beneficial to Singapore. But market participants do not think that Covid-19 will remain a dominant factor impacting logistics and bunkering at ports, based on the results of this poll. This could perhaps positively impact growth in other ports in the region and as such redistribute some of next year’s demand, which would help explain why most identify this as a key challenge for Singapore.

What will Singapore’s total bunker demand likely be in 2022?

What will Singapores total bunker demand likely be in 2022

Argus received a total of 51 anonymous submissions from a variety of bunker market participants. Thank you to all who cast their votes!

 

Photo credit: Argus Media
Published: 17 December, 2021

 

 

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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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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