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Alternative Fuels

ENGINE on Fuel Switch Snapshot: LNG regains edge but remains pricey

Tight VLSFO supply in Singapore drives up price; Rotterdam’s LSMGO is now cheaper than its LNG; LNG regains its cost advantage over B24-VLSFO.

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ENGINE on Fuel Switch Snapshot: LNG regains edge but remains pricey

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:

26 August 2024

  • Tight VLSFO supply in Singapore drives up price
  • Rotterdam’s LSMGO is now cheaper than its LNG
  • LNG regains its cost advantage over B24-VLSFO

Rotterdam’s VLSFO-equivalent LNG bunker price has slightly corrected over the past week following its sharp rally in early August.

A sharp $27/mt decline in Rotterdam’s LSMGO price has shifted the benchmark to a $1/mt discount compared to the port’s LNG bunker price, down from a $15/mt premium in the past week.

Singapore’s LNG has regained its cost advantage over B24-VLSFO, but the gap remains narrow, with LNG just $30/mt more expensive than the bio-blend.

In Rotterdam, LNG’s discount to its B24-VLSFO (HBE) has widened by $9/mt over the past week, to $71/mt.

VLSFO

Rotterdam’s VLSFO benchmark has mostly followed Brent’s downward trend over the past week.

Prompt availability of VLSFO is good in Rotterdam and the wider ARA hub, according to a trader. This has pulled the VLSFO benchmark slightly lower (-$11/mt) compared to Brent’s drop (-$5/mt) over the past week.

VLSFO availability in Singapore remains tight, with several suppliers advising lead times of 7-13 days. The port has also experienced a significant 728,000-bbl decline in net fuel oil imports so far in August, contributing to the stock drawdown.

The tight supply has supported the benchmark and pushed Singapore’s VLSFO price up by $12/mt over the past week, despite a decline in Brent futures.

Biofuels

Rotterdam’s B24-VLSFO HBE price has held steady in the past week. PRIMA assessed palm oil mill effluent methyl ester (POMEME) in the ARA at $1,332/mt on Friday, almost unchanged on the week. 

Singapore’s B24-VLSFO UCOME price has gained by $8/mt in the past week, while its B24-LSMGO UCOME price has come down by $19/mt. A $12/mt increase in VLSFO price has contributed to push Singapore’s B24-VLSFO UCOME price up.

Spot bio-bunker demand remains low in Singapore. Lead times for bio-bunker grades vary between 10-14 days among suppliers.

LNG

Rotterdam’s LNG bunker price has decreased by $10/mt over the past week, tracking the downward movement of the front-month NYMEX Dutch TTF Natural Gas contract.

The decline is attributed to improved natural gas production from Norway and high EU gas storage levels.

Singapore’s LNG bunker price has come down by $30/mt. A 5.2 million mt/year production train at Chevron’s Gorgon LNG plant in Australia has completed maintenance ahead of schedule, easing supply constraints in the region. 

Asian LNG benchmark could see downward pressure from easing supply in Australia, as the country is one of the major LNG cargo suppliers to Asian countries like Japan, China and South Korea.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 27 August, 2024

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LNG Bunkering

Osaka Gas conducts Osaka Bay’s first STS LNG bunkering operation

Acting through Singapore-based marine fuel trading firm Integr8 Fuels, Osaka Gas supplied LNG bunker fuel to an LNG-fuelled PCTC operated by an overseas shipping company calling at the Port of Kobe.

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Osaka Gas conducts Osaka Bay’s first STS LNG bunkering operation

Japanese energy company Osaka Gas on Friday (4 September) said it has successfully completed the first-ever ship-to-ship LNG bunkering operation in Osaka Bay, supplying LNG fuel to an LNG-fuelled PCTC.

The operation was conducted using SETO AZURE, an LNG bunkering vessel owned by Osaka Bay LNG Shipping Co Ltd, an affiliated company of Osaka Gas. 

Acting through Integr8 Fuels Pte Ltd, a Singapore-based marine fuel trading company, Osaka Gas supplied LNG fuel to an LNG-fuelled PCTC operated by an overseas shipping company calling at the Port of Kobe.

Ship-to-ship bunkering will help ensure a stable supply of LNG fuel in the Osaka Bay area and support the development of the Port of Kobe as a Carbon Neutral Port.

In addition to ship-to-ship bunkering, Osaka Gas provides LNG fuel through truck-to-ship bunkering and port-to-ship bunkering. With capability covering all three major LNG bunkering methods, Osaka Gas provides flexible and reliable LNG fuel supply services to meet customers’ diverse needs.

The company said LNG bunkering infrastructure in Japan remains insufficient, highlighting the need to establish a stable fuel supply network to support the wider adoption of LNG-fuelled vessels.

 

Photo credit: Osaka Gas
Published: 8 September, 2026

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Alternative Fuels

DNV at SMM: Yanmar Maritime awarded type approval for fuel cell system

Certification marked an important step in moving Yanmar’s maritime hydrogen fuel cell technology from successful domestic deployment toward broader commercial adoption in international markets.

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DNV at SMM: Yanmar Maritime awarded type approval for fuel cell system

Classification society DNV on Monday (7 September) said it awarded Yanmar Power Solutions Co Ltd, a subsidiary of Yanmar Holdings, type approval (TA) for its Maritime Hydrogen Fuel Cell System at the SMM trade fair in Hamburg last week. 

DNV said the certification marked an important step in moving Yanmar’s maritime hydrogen fuel cell technology from successful domestic deployment toward broader commercial adoption in international markets.

“This certification represents a significant milestone in the commercialization and global deployment of hydrogen fuel cell technology for marine applications,” the classification society said in a statement. 

The approval confirms that the GH-FC series complies with DNV’s industry leading rules and guidelines, enabling shipbuilders, system integrators, and vessel operators to adopt the technology with greater confidence and reduced certification burden for future projects.

Masaru Hirose, President and Representative Director of Yanmar Power Solutions Co Ltd, said: “Achieving DNV Type Approval represents a major milestone in our journey to bring hydrogen-powered solutions to the marine market. Building on our operational experience in Japan, we aim to support customers around the world in their transition to zero-emission operations and realize sustainable maritime transportation.”

Eric Tigelaar, Department Manager of Commercial Marine Department at Yanmar Europe, stated: “This certification strengthens our ability to support customers throughout Europe and beyond who are seeking practical pathways toward decarbonization. The GH-FC series combines easy installation, operational flexibility, modularity and environmental performance, making it an attractive solution for a wide range of vessel applications.”

Olaf Drews, Head of Engines & Pressurized Equipment, DNV Maritime, said: “We are very pleased to continue our cooperation with Yanmar and award them this latest Type Approval Award for their GH-FC series. Every step demonstrates the growing maturity of hydrogen fuel cell technology and continues to build confidence in the market and showcase its readiness for broader commercial applications. DNV is pleased to continue supporting innovative solutions that can help accelerate the transition toward zero-emission shipping.”

 

Photo credit: DNV
Published: 8 September, 2026

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Alternative Fuels

ORLEN and Port of Gdynia to explore LNG and bio-LNG bunkering in Poland

Cooperation will examine market demand, the potential scale of LNG and bioLNG bunkering, required infrastructure, operating conditions and the regulatory framework needed to support future services.

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ORLEN and Port of Gdynia to explore LNG and bio-LNG bunkering in Poland

Polish energy company ORLEN on Friday (4 September) said it has signed an agreement with Port of Gdynia Authority to assess the development of LNG and bioLNG bunkering services for marine vessels, as both organisations explore infrastructure and market solutions that could expand access to alternative fuels along the Polish coast.

The cooperation will examine market demand, the potential scale of LNG and bioLNG bunkering, required infrastructure, operating conditions and the regulatory framework needed to support future services.

One of the main areas under consideration will be waterside bunkering, including ship-to-ship operations, where fuel is transferred directly from a bunker vessel to another ship while in port.

Robert Soszyński, Vice President of the ORLEN Management Board for Operations, said the cooperation with the Port of Gdynia forms part of the Group’s broader fuel portfolio transformation through 2035.

Under ORLEN’s strategy, natural gas, including LNG, is expected to retain an important role as a transitional fuel supporting energy security and transport decarbonisation.

The company is seeking to strengthen capabilities across the full value chain, including fuel sourcing, logistics and final use.

At the same time, ORLEN is developing renewable fuel capabilities, including bioLNG, which the company sees as a potential route for reducing emissions in heavy-duty road transport and shipping.

Soszyński said ORLEN’s ambition is to work with ports not only as a fuel supplier but also as a partner in developing infrastructure and market conditions for alternative marine fuels in Poland and the wider region.

Piotr Gorzeński, CEO of the Port of Gdynia Authority, said the shipping industry’s energy transition is already changing the fuel and technology requirements faced by ports.

“Shipowners are increasingly examining ways to reduce emissions, while ports need to be capable of serving vessels using a wider range of propulsion technologies and fuels,” he said. 

The cooperation will include knowledge sharing and an assessment of requirements among shipowners and port users, particularly operators of scheduled ferry, container and ro-ro services.

ORLEN and the Port of Gdynia will also analyse bunkering models used at other European ports.

Among the options under review will be the suitability of ship-to-ship bunkering for larger vessels and the possibility of supplying fuel while ships are alongside the berth.

The partners will also examine whether bunkering could take place in parallel with cargo-handling operations.

 

Photo credit: ORLEN
Published: 8 September, 2026

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