Alternative Fuels

Argus Media: LNG bunkering market weathers high prices

Even though there has been an astronomical price differential between conventional fuels and LNG, the shipping sector still has belief in LNG as a bunker fuel, says Kanfer Shipping MD Stig Hagen.

Published

3 years ago

February 3, 2023

Admin

Record high global LNG prices of last year weighed heavily on LNG bunkering demand throughout 2022, but environmental incentives leave firms seeing a robust future for LNG as a marine fuel.

2 February 2023

High prices fed straight through to the spot LNG bunkering market, prompting many firms to operate dual-fuel vessels on alternative fuels, or let LNG-fuelled vessels run warm, in a bid to avoid the substantial costs and volatility involved with LNG fuelling. Many firms were also able to increase utilisation of other ships.

Spot LNG delivered-on-board (dob) prices were often at wide premiums to corresponding marine gasoil (MGO) prices in 2022.

The high prices have also prompted some firms to reconsider their plans to use LNG as a marine fuel. Costly LNG prompted Norwegian ferry operator Fjord Line to announce it was going to add MGO as a fuelling option to two LNG-fuelled ferries. Last year also saw some cancellations of orders for both LNG-powered ships and LNG bunkering vessels or projects.

That said, LNG prices have held at much lower levels in 2023, with the Argus prompt LNG dob price around 78pc lower in recent weeks compared with its all-time high in August, though they remain higher than in 2020 and much of 2021. As soon as prices were making broadly consistent falls, the “phone began ringing”, Jacob Granqvist, vice president of maritime operations at Finnish firm Gasum, tells Argus. Firms are still open to indexing contracts to the Dutch TTF gas hub but some have shifted approaches to pricing supply, with more demand for fixed priced deals, he adds.

And high prices have not deterred some firms from ordering new LNG-powered vessels and planning new LNG bunkering projects. Around 108 LNG-fuelled vessels were delivered last year, bringing the global fleet to around 361, compared with 246 on the water in 2021 and 186 in 2020, according to Norwegian shipping certification society DNV. A further 500 LNG-powered vessels are set to be delivered by the end of 2026.

“Even though there has been an astronomical price differential between conventional fuels and LNG, the shipping sector still has belief in LNG as a marine fuel”, Norwegian firm Kanfer Shipping managing director Stig Hagen says. Kanfer sees LNG prices likely falling in the coming years, as global LNG production steps higher in the middle of the decade, while more environmental incentives to switch away from traditional fuels are being introduced by authorities globally, which could further boost demand for LNG as a marine fuel.

Granqvist takes a similar view on the prospects for LNG bunkering, as new environmental regulations drive firms to boost usage of LNG in their fleets. The inclusion of maritime shipping in the EU’s emissions trading system (ETS) will require shipowners to pay for 40pc of their emissions from 2025, 70pc from 2026 and 100pc from 2027. But the use of LNG as a fuel in fleets will enable operators to compensate for emissions, meaning that “lesser emitting vessels such as LNG-fuelled vessels can compensate for dirtier conventional vessels”, Granqvist says.

In the short term, tighter availability of alternative marine fuels such as MGO may also lead to stronger demand for LNG use as a bunkering fuel. The EU ban on Russian oil products set to come into force on 5 February could have a knock-on effect of limiting MGO supplies.

LNG bunkering availability needs to grow

As the number of dual-fuel vessels and LNG-fuelled vessels is set to increase sharply in the coming years, the bunkering sector is trying to keep up.

Gasum has its eyes on a global LNG bunkering network, partnering with China’s CNOOC and Singapore’s Pavilion Energy under a preliminary agreement signed in November last year, seeking to strengthen ties across the world’s main bunkering hubs from the Nordics and northern continental Europe.

Kanfer’s Hagen similarly sees a need for more strategic LNG bunkering hubs around the world, with the firm targeting high traffic shipping routes. Kanfer plans to start up an LNG bunkering facility at the Suez Canal, tapping into one of the busiest shipping corridors in the world, and sourcing LNG from Egypt. The firm aims to reach an final investment decision (FID) on the Suez Canal project in the first half of this year and to bring the facility on line in mid-2025. “Existing hubs in Singapore and northeast Asia do not produce LNG, meaning they have to import LNG then resell it onto the maritime market,” Hagen says, but Egypt’s own production capabilities give it the “competitive edge”.

The firm also has preliminary plans to develop an LNG bunkering project in the Panama Canal, with potential LNG supply likely available from the US’ expanding liquefaction capacity. More LNG bunkering availability in the US Gulf coast could come from Texas’ Freeport export terminal, which aims to bring on line its marine barge by early 2025.

And China has plans to build on its LNG bunkering presence, with state-controlled firms receiving support from local authorities, with its southern city Shenzhen aiming to become Asia’s largest offshore bunkering centre.

By Ellie Holbrook

Photo credit and source: Argus Media
Published: 3 February, 2023

Biofuel

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

Company says it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply.

Published

7 hours ago

July 23, 2026

Admin

South Korea: S-Oil launches B30-VLSFO bio bunker fuel supply

South Korean petroleum and refining company S-Oil on Wednesday (22 July) said it has started supplying B30 very low sulphur fuel oil (VLSFO), as the company seeks to support shipping’s decarbonisation efforts and growing demand for lower-carbon bunker fuels.

The company said its B30 VLSFO contains 30% sustainable biofuel blended with conventional VLSFO and can be used without requiring modifications to existing vessels, enabling shipowners to comply more readily with emissions regulations from the International Maritime Organization (IMO) and the European Union (EU).

S-Oil said it has established an integrated operating system in the Ulsan region covering the entire value chain, from feedstock procurement and blending to supply. The system combines VLSFO produced at its Onsan refinery with biofuel production facilities and storage infrastructure in the Ulsan region, allowing the entire process to be carried out within a single logistics hub.

According to the company, the integrated supply chain reduces transportation requirements during production while improving supply efficiency and reliability.

S-Oil also highlighted Ulsan Port as a strategic location for marine biofuel supply, noting the port has strong demand for bio-bunker fuels, particularly from car carriers, enabling prompt and stable deliveries to key customers.

An S-Oil official stated: “In the bio-marine fuel market, not only product quality but also securing a stable supply of raw materials and an efficient supply system are important competitive advantages.

“Based on our existing bunkering business capabilities and the excellent supply infrastructure in the Onsan area, we plan to supply stable and competitive low-carbon fuel.”

Photo credit: S-Oil
Published: 23 July, 2026

Bunker Fuel

Antwerp-Bruges biofuel bunker sales drops 36% on year in Q2 2026, LNG down 13.4%

Biofuel recorded 26,833 mt in Q2 2026 with 41,939 mt recorded in the same period the year before while port data showed 76,513 mt of LNG being delivered in Q2 2026, down from 88,328 mt.

Published

7 hours ago

July 23, 2026

Admin

The Port of Antwerp-Bruges recently published bunker fuel sales data for the second quarter (Q2) of 2026.

Total bunker sales at the port was 2.05 million metric tonnes (mt) in Q2 2026, compared to sales of 1.99 million mt (+3%) during the similar period in 2025.

Deliveries of ultra low sulphur fuel oil, very low sulphur fuel oil, high sulphur fuel oil and marine gas oil in Q2 2026 (against on year) recorded respectively 164,987 mt (+43.6% from 114,917 mt), 537,926 mt (+12.8% from 476,746 mt), 659,182 mt (+11.6% from 590,544 mt) and 366,329 (-15.7% from 434,766 mt).

Biofuel recorded 26,833 mt in Q2 2026 with 41,939 mt (-36%) recorded in the same period the year before.

Port data showed 76,513 mt of liquefied natural gas (LNG) being delivered as a marine fuel in Q2 2026, down by 13.4% from 88,328 mt in Q2 2025. Meanwhile, there has been no deliveries of methanol at the port for the year so far.

Photo credit: Port of Antwerp-Bruges
Published: 23 July, 2026

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”.

Published

1 day ago

July 22, 2026

Admin

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