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Argus Media: Weaker demand pressures Singapore April bunker prices

Conventional bunker prices in Singapore trended down in April as sellers kept prices competitive to secure deals amid weaker downstream demand and prolonged backwardation.

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Conventional bunker prices in Singapore trended down in April as sellers kept prices competitive to secure deals amid weaker downstream demand and prolonged backwardation.

5 May 2026 

Average prices for very-low sulphur fuel oil (VLSFO) in April stood at $746.98/t delivered on board (dob), up by 52pc on the year, but down by almost 16pc from March when prices surged because of concerns of supply disruptions stemming from the US-Iran war.

Steep backwardation in the VLSFO cargo market slowed trade in the downstream market, triggering a more aggressive sell-off by some physical suppliers in late March, when Singapore bunker trades surfaced at a discount to cargo prices. Backwardation for May-June narrowed to $15/t on 21 April — compared to record highs in the week of 13 March when the March-April spread widened to $100-130/t — but many sellers were still keen to offload inventories given weak demand in the retail bunker market.

April VLSFO bunker prices in Singapore remained competitive as many buyers delayed trading because of elevated prices within the energy complex, and delivered VLSFO prices flipped to a discount of around $3/t against cargo again on 23 April. But blendstock components for VLSFO continues to be tight, which may provide some support for VLSFO prices if the shortage persists through May.

Meanwhile, average prices for high-sulphur fuel oil (HSFO) rose by 55pc year on year to $665.11/t dob after Iran’s blockade of the strait of Hormuz restricted flows to Asia Pacific, but prices have corrected downwards by 10pc month on month. Middle East HSFO volumes make up around 40pc of Singapore’s monthly imports, but bunker participants noted that delivered supplies remain ample from earlier inventories and floating storages around the region. More HSFO arbitrage flows have also been diverted from Colombia, Mexico and Venezuela to Singapore, and many buyers preferred waiting on the sidelines for clearer price signals if bunkering schedules were not urgent.

Likewise, the war in the Middle East amplified concerns of a supply crunch for low-sulphur marine gasoil (LSMGO) in Singapore, and average April prices more than doubled on the year to $1,481.65/t dob. But LSMGO prices fell by 10pc from average March prices, given that panic surrounding LSMGO supply tightness within Asia eased, and sellers lowered offer levels to entice buying interest. Singapore LSMGO prices flipped to a discount of around $29/t against Zhoushan LSMGO prices on 8 April, and the discount against the Zhoushan equivalent price widened further to around $56/t on 30 April. But a supplier noted that spot demand for LSMGO in April had been weak, given that some vessel owners preferred bunkering at Chinese ports given competitive fuel oil prices.

By Cassia Teo

 

Photo credit and source: Argus Media
Published: 6 May, 2026

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Alternative Fuels

Singapore-based Golden Island, Qingdao Port team up on alternative bunker fuels

Agreement covers green methanol, green ammonia and bio-LNG, with cooperation spanning fuel production and transportation through to storage, sales and bunkering.

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Golden Island, Qingdao Port team up on green methanol, ammonia and bio-LNG

Singapore bunker supplier Golden Island Pte Ltd on Monday (21 September) said it has signed a strategic framework agreement with Qingdao Port International Co Ltd to collaborate on the supply of alternative marine fuels.

The agreement covers green methanol, green ammonia and bio-LNG, with cooperation spanning fuel production and transportation through to storage, sales and bunkering.

“By combining our MPA-licensed bunkering capabilities with Qingdao Port’s incredible logistics and strategic hub position, we are building something truly robust for the global shipping industry’s low-carbon future,” the company said in a statement. 

Qingdao Port International, which operates five major port areas in China, will bring its logistics network, storage facilities and customs clearance capabilities to the partnership.

Golden Island is licensed by the Maritime and Port Authority of Singapore (MPA) to conduct methanol bunkering and is ISCC EU-certified.

The companies are also engaging with container liners, bulk carriers, oil tankers and cruise ships regarding the adoption of alternative marine fuels.

 

Photo credit: Golden Island Pte Ltd
Published: 22 September, 2026

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Ammonia

HD HHI and HD KSOE secure ABS AiP for ammonia bunkering vessel design

ABS awarded approval in principle for the basic design of a 22,000 CBM bunkering vessel capable of supplying ammonia as marine fuel.

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HD HHI and HD KSOE secure ABS AiP for ammonia bunkering vessel

Classification society ABS on Monday (21 September) said it has awarded HD Hyundai Heavy Industries (HD HHI) and HD Korea Shipbuilding & Offshore Engineering (HD KSOE) approval in principle (AIP) for the basic design of a 22,000 CBM bunkering vessel capable of supplying ammonia as marine fuel.

The approval is the result of a joint development project initiated earlier this year. ABS reviewed the design’s general arrangement, machinery arrangement, ammonia cargo handling system and fuel supply system against applicable class and international requirements.

Gareth Burton, ABS Senior Vice President, Global Engineering, said: “Bunkering infrastructure is a critical step for any marine fuel to scale, and it has to be implemented with safety designed in from the start.

“This AIP reflects the industry’s need for fuel flexibility while advancing the safe bunkering of ammonia. ABS is proud to support HD HHI and HD KSOE as they develop technologies that expand fuel flexibility.”

Ryu Hong-Ryeul, Chief Technical Officer (CTO) of HD HHI, said: “As ammonia rapidly emerges as a viable low-carbon alternative fuel, demand for ammonia bunkering vessels is expected to grow in line with the increasing adoption of ammonia-fuelled ships. 

“This AIP marks a significant milestone toward the commercialisation of ammonia bunkering vessels.”

ABS and the HD Hyundai group have worked together across a range of technologies supporting ammonia as a marine fuel. Recent projects have included AIP for HD KSOE’s ammonia cargo handling and bunkering system and initial review for HD HHI’s machinery arrangement in engine room.

 

Photo credit: ABS
Published: 22 September, 2026

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Alternative Fuels

J-ENG completes land-based testing of hydrogen-fuelled marine engine

Engine will be installed on a 17,500 DWT multipurpose vessel to be built by Onomichi Dockyard for MOL and MOL Drybulk, with onboard demonstration testing scheduled to begin in April 2028.

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Japan Engine Corporation (J-ENG) on Friday (18 September) said it has completed land-based testing of the world’s first hydrogen-fuelled engine for large commercial vessels, the 6UEC35LSGH.

During factory testing, the engine achieved a hydrogen co-firing rate of at least 95%, reducing GHG emissions by more than 95% compared with conventional heavy-fuel-oil engines.

By adopting a high-pressure direct injection system, which injects fuel directly into the cylinder at high pressure, J-ENG said the engine achieves stable hydrogen combustion. 

Safety measures were also implemented, including a robust structure to prevent hydrogen leakage and double-walled piping for hydrogen supply lines. 

“Approval testing was conducted in the presence of ClassNK and was completed successfully,” the company said. 

The engine will be installed on a 17,500 DWT multipurpose vessel to be built by Onomichi Dockyard for Mitsui O.S.K. Lines and MOL Drybulk.

Hydrogen fuel will be supplied to the engine through a marine hydrogen fuel system, consisting of marine hydrogen fuel tanks and a fuel supply system, developed and manufactured by Kawasaki Heavy Industries.

In addition, Nippon Kaiji Kyokai (ClassNK) will conduct safety assessments throughout each stage of the engine’s development and the vessel’s design, construction and operation.

The vessel will then undergo sea trials before onboard demonstration testing begins in April 2028. 

Kawasaki will also develop and manufacture bunkering equipment for supplying liquefied hydrogen to vessels. 

“The demonstration will further evaluate the engine’s durability and performance under actual operating conditions,” J-ENG added.

 

Photo credit: J-ENG
Published: 22 September, 2026

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