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LNG Bunkering

Korea Southern Power to utilise POSCO LNG bunkering services from 2027

Korea Southern Power has been sourcing fuel from overseas, including Singapore, since their maiden voyage in 2023, due to the low competitiveness of domestic LNG bunkering in South Korea.

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Korea Southern Power to utilise POSCO LNG bunkering services from 2027

POSCO International on Thursday (18 September) signed a Memorandum of Understanding (MoU) with Korea Southern Power at the POSCO Center in Seoul to promote domestic LNG bunkering business in South Korea.

Through this MoU, Korea Southern Power will be able to utilise POSCO INTERNATIONAL’s domestic LNG bunkering services starting in 2027.

The event was attended by more than 10 representatives from both companies, including Min Chang-Kie, Head of POSCO International, and Park Young-Chul, Vice President of Korea Southern Power. 

Driven by the global shift toward carbon neutrality, demand for LNG, an energy source with low emissions, is expected to account for more than 20% of the global ship fuel market in the medium to long term. However, the domestic LNG bunkering business in South Korea remains in its early stages, with an urgent need for full-scale commercialisation and infrastructure expansion.

As the first public power company to introduce LNG-powered vessels, Nambu 1 and Nambu 2, Korea Southern Power has been sourcing fuel from overseas, including Singapore, since their maiden voyage in 2023, due to the low competitiveness of domestic LNG bunkering. This has resulted in unnecessary detours and time losses, underscoring the need to establish a viable domestic LNG bunkering business.

POSCO said this MOU is significant as a leading example of public-private collaboration to drive the domestic LNG bunkering business and significantly enhance the efficiency of the energy procurement process. 

In particular, this public-private collaboration is expected to serve as a crucial foundation for positioning South Korea as a global LNG bunkering hub in the era of energy transition.

“Through this MOU, we will work closely with Korea Southern Power to set new standards for the energy industry across technology, logistics, and supply chains,” Min Chang-Kie, Head of POSCO International, stated. 

“We will make every effort to establish a model case for South Korea’s energy industry by ensuring an environmentally friendly supply of ship fuel and stable procurement of energy.”

“This agreement is a meaningful achievement that extends carbon neutrality from stable power production to the fuel supply chain,” Park Young-Chul, Vice President of Korea Southern Power, said. “We will continue to expand and strengthen collaboration beyond the boundaries of public and private sectors to achieve carbon neutrality goals.”

POSCO International has secured competitiveness by vertically integrating the LNG value chain—from exploration and production to transportation, storage, and power generation—through its merger with POSCO Energy in 2023. The company has established a stable procurement system via gas field operations in Myanmar and Australia, long-term contracts with North America’s Cheniere Energy, and the operation of its own LNG carrier. 

The Gwangyang LNG Terminal is undergoing large-scale investment to expand storage capacity from 930,000 ㎘ to 1,330,000 ㎘, further cementing the company’s role as a key player in South Korea’s energy supply chain.

 

Photo credit: POSCO International
Published: 22 September, 2025

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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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July 21, 2026

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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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Alternative Fuels

ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

B100 discount to LSMGO widens to $541/mt in Rotterdam; Singapore’s B100 drops to $106/mt below LSMGO; Rotterdam LBM at $639-833/mt discounts to LSMGO.
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July 21, 2026

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ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

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:

20 July 2026

  • B100 discount to LSMGO widens to $541/mt in Rotterdam
  • Singapore’s B100 drops to $106/mt below LSMGO
  • Rotterdam LBM at $639-833/mt discounts to LSMGO

B100’s premium over HSFO in Rotterdam has narrowed by $50/mt over the past week to $64/mt, while its discount to VLSFO has widened by $83/mt to $105/mt.

B100 has become far more competitive against LSMGO in Rotterdam, with its discount widening by $180/mt over the past week to $541/mt, as a surge in conventional fuel prices left B100 broadly unchanged by comparison.

B100’s price has risen by $109/mt in Singapore, but its discount to LSMGO has still widened by $102/mt to $106/mt, as LSMGO surged by an even greater $211/mt.

Rotterdam’s LNG premium over VLSFO has widened by $35/mt to $201/mt for vessels with Otto medium speed (Otto MS) engines. For vessels with diesel slow speed (diesel SS) engines, LNG has flipped to a $15/mt premium over VLSFO, from a $22/mt discount the prior week.

Liquefied biomethane (LBM) discounts to VLSFO in Rotterdam have narrowed by $50-52/mt to $203-396/mt over the past week. Against LSMGO, LBM discounts have widened by $45-47/mt to $639-833/mt, depending on engine type.

In Singapore, LNG is now $42/mt cheaper than LSMGO for vessels with Otto MS engines, and $134/mt cheaper for vessels with diesel SS engines.

ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

Liquid fuels

HSFO and VLSFO prices in Rotterdam have jumped by $66/mt and $99/mt respectively over the past week, while LSMGO has surged by an even steeper $196/mt. A $9.69/bbl ($71/mt) rise in front-month ICE Brent futures, to $87.94/bbl ($645/mt), drove bunker prices sharply higher across the board.

Bunker fuel availability is tight for prompt delivery dates in the ARA ports, with buyers advised to enquire about stems between 5-7 days ahead to get good coverage, a trader said.

Rotterdam’s B100 price has risen by $16/mt over the past week. Dutch ZRE A ticket prices were unchanged at €107.50/mtCO2e.

Singapore’s HSFO and VLSFO prices have risen by $130/mt and $132/mt respectively, while its LSMGO price has gained an even steeper $211/mt over the past week.

VLSFO availability in Singapore has been tight, with several suppliers reporting low stock levels. Recommended lead times have widened from 13–17 days last week to 14–19 days now.

Liquid gases

Rotterdam’s LNG prices have surged by $134-136/mt over the past week, while its LBM prices have climbed by $149-151/mt.

LBM discounts to LNG in Rotterdam have narrowed by $15/mt to $404-411/mt.

Singapore’s LNG bunker benchmarks have surged by $196-197/mt over the past week.

By Erik Hoffmann

 

Photo credit and source: ENGINE
Published: 21 July, 2026

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