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Alternative Fuels

Argus Media: LNG demand may rise with discount to bunkers

Northwest Europe LNG to conventional marine fuels price discount continued to deepen in July, meaning LNG/fuel oil dual-fuel ship owners could cut their bunker expenses by switching to LNG bunker fuel.
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The northwest Europe LNG to conventional marine fuels price discount continued to deepen in July, meaning LNG/fuel oil dual-fuel ship owners could cut their bunker expenses by switching to LNG.

24 July 2023

In June the price of northwest Europe LNG delivered on truck slipped below the price of high-sulphur fuel oil (HSFO) at -$10/t, Argus data showed. The discount widened to -$50/t average from 1-24 July. LNG’s discount to very low-sulphur fuel oil (VLSFO) on 1-24 July was even deeper, at $112/t, from a $81/t discount in June. LNG was also assessed at $300/t discount to marine gasoil (MGO) on 1-24 July, from a $231/t discount in June.

LNG emits “virtually no sulphur oxides (SOx)” when burned, according to LNG energy industry coalition SEA-LNG. Thus LNG can be used in lieu of 0.1pc sulphur MGO in the global emission control areas (ECAs) such as Rotterdam, where marine fuel sulphur content is capped at 0.1pc to keep down SOx emissions. LNG for bunkering demand accounted for 2pc of Rotterdam total marine fuel demand in the first quarter of the year, up from less than 0.3pc in the first quarter of 2022, but down from 5pc in the third quarter of 2021.

Compared with MGO, LNG emits 14pc less CO2 from combustion, according to a 2021 study by the independent, nonprofit organization international council on clean transportation (ICCT). Starting next year, ship owners traveling EU territorial waters will have to pay for 40pc of their emissions from combustion. EU-traded CO2 was assessed at $95/t average on 1-24 July, which would amount to about $17/t in CO2 cost savings for vessels burning LNG instead of MGO.

Europe faces less severe natural gas supply security risks in the run-up to winter 2023-24 than it did ahead of the previous winter. Countries have succeeded in rebuilding stocks and the EU can count on much larger, and growing, LNG import capacity. But Russian pipeline deliveries to Europe are a fraction of what they were before the onset of the war in Ukraine, so supply could still be tight if gas demand rebounds. Thus it is unclear if LNG prices would remain below fuel oil’s this winter.

By Stefka Wechsler

 

Photo credit and source: Argus Media
Published: 28 July, 2023

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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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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.
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July 21, 2026

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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

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Nuclear

ABS awards AiP to Korean institute for SMR-powered container ship concept design

KRISO says AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.
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ABS awards AiP to Korean institute for SMR-powered container ship concept design

Korea Research Institute of Ships & Ocean Engineering (KRISO) on Thursday (16 July) received Approval in Principle (AiP) from the American Bureau of Shipping (ABS) for its concept design of a 15,000 TEU Small Modular Reactor (SMR)-powered container ship utilising Molten Salt Reactor (MSR) technology.

KRISO said the AiP recognises the technical feasibility and safety of its concept design, marking an important milestone toward the development of next-generation nuclear-powered commercial ships.

“This achievement demonstrates international recognition of KRISO’s technological capabilities in the rapidly evolving field of nuclear-powered shipping, supporting the transition toward low-carbon maritime transport,” it said. 

Building on this milestone, KRISO will continue advancing basic and detailed ship design, paving the way for future demonstration and commercialisation of SMR-powered vessels. 

Through continued R&D and international collaboration, KRISO remains committed to strengthening next-generation maritime technologies and contributing to the safe deployment of nuclear propulsion in the maritime industry.

 

Photo credit: Korea Research Institute of Ships & Ocean Engineering
Published: 21 July, 2026

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