Business

Argus Media: LSMGO premium over VLSFO narrows in Singapore

The premium of LSMGO over VLSFO in Singapore has averaged $6.58/t so far this month, down from as high as $55/t in July this year, reports Argus Media.

Published

6 years ago

October 29, 2020

Admin

Sammy Six of global energy and commodity price reporting agency Argus Media on Wednesday (28 October) published an analysis of the possible bunker market implications due to the narrowing premium between LSMGO and VLSFO at the port of Singapore:

The premium of low-sulphur marine gasoil (LSMGO) over very-low sulphur fuel oil (VLSFO) in Singapore has averaged $6.58/t so far this month, down from as high as $55/t in July this year.

This follows ample middle distillates available in the wake of the Covid-19 pandemic, which has cut demand for travel. Argus yesterday assessed delivered LSMGO and VLSFO bunkers in Singapore at $327.25/t and $323.71/t respectively.

LSMGO usually commands a premium over VLSFO as it has a higher calorific value and a lower maximum sulphur content. But it can also sell at a discount, as it did during the final quarter of 2019 to this year’s first quarter and again in April this year, as shipowners typically prefer the properties of VLSFO as their main engine fuel.

LSMGO has a 0.1% maximum sulphur content and a viscosity of 2-6 centistoke (cst) compared with VLSFO that has a maximum sulphur content of 0.5% and a viscosity of up to 380cst. Although both fuels are compatible with International Maritime Organisation 2020 caps on sulphur and are now almost at price parity, most shipowners prefer the higher viscosity of VLSFO.

The lower gasoil viscosity can lead to stability issues, which can be an issue especially for longer, intercontinental journeys.

“Most diesel engines require fuel with a minimum of 12cst, so substituting fuel oil with gasoil could be an operational concern”, according to one supplier.

“Although it is technically possible to burn gasoil instead of fuel oil, this is largely dependent on the ship’s engine and the chief engineers’ comfort levels, and requires crew training and lots of technical arrangements”, according to a market participant.

Tanker vessels are generally more comfortable with using either fuel and are more price sensitive, while dry bulk vessels are more conservative as they often lack a more sophisticated understanding of fuel management. “Our vessels in the US ECAs have been using gasoil for a long time without issues”, said one buyer.

This contrasts with the dry bulk segment of the market, “where technical teams are much less advanced and the handling of different fuels is less well understood”, according to another buyer.

“We do have some requests from buyers for either gasoil or fuel oil, but that is only a limited fraction of the market and usually results from VLSFO supply issues”, according to a trader.

Some buyers consider opting for gasoil rather than fuel oil especially when it comes to smaller cargoes. “A stem below 500t of VLSFO will incur a barging fee, while that is not the case for gasoil”, said a trader.

Photo credit and source: Argus Media
Published: 29 October, 2020

Legal

Singapore withdraws remaining 127 charges against Hin Leong founder OK Lim

Lim Oon Kuin, also known as OK Lim, was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges on 17 July.

Published

15 hours ago

July 21, 2026

Admin

Founder of collapsed oil trader Hin Leong Trading, Lim Oon Kuin, also known as OK Lim, has had the remaining 127 charges against him withdrawn, according to The Straits Times on Monday (20 July).

OK Lim was issued a stern warning and a district court granted him a discharge amounting to an acquittal for these charges, including those for cheating, on 17 July. The discharge means Lim cannot be prosecuted again for the same offences.

Lim, 84, is currently serving a 13½-year prison sentence after the High Court reduced his original 17½-year jail term in March 2026. He was convicted in 2024 on two cheating charges and one count of abetting forgery in a case prosecutors described as one of Singapore’s most serious trade finance frauds.

Lim was convicted in May 2024 of two charges of cheating the Hongkong and Shanghai Banking Corporation (HSBC) and one count of abetting forgery that proceeded to trial out of a total of 130 criminal charges.

He was first charged in court on 14 August 2020, and was subsequently handed further charges in court on 25 September 2020, 30 April 2021 and 24 June 2021 for his role in perpetuating fraud on various financial institutions.

A total of 130 charges were eventually brought against him for cheating and forgery-related offences.

Photo credit: Sora Shimazaki
Published: 21 July, 2026

Winding up

Singapore: Coastal Logistics Pte Ltd to be wound up voluntarily

Coastal Logistics was reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

Published

15 hours ago

July 21, 2026

Admin

Several resolutions for Coastal Logistics Pte Ltd were made during an extraordinary general meeting held on 14 July, according to a notice in the Government Gazette on Friday (4 July).

The following resolutions were duly passed during the meeting:

As Special Resolution

That it has been proved to the satisfaction of the meeting that the Company cannot by reason of its liabilities continue its business and accordingly the Company be wound up voluntarily pursuant to Section 160(1)(b) of the Insolvency, Restructuring and Dissolution Act 2018 (No. 40 of 2018);

As Ordinary Resolutions

that Mr. Wong Pheng Cheong Martin and Ms. Koay May Yee, both care of FTI Consulting (Singapore) Pte Ltd, One Raffles Quay, #27-10 South Tower, Singapore 048583 be appointed as the joint and several Liquidators of the Company for the purpose of such winding up; and
that the Liquidators be at liberty to open, maintain and operate any bank account(s) or account(s) for monies received by them as Liquidators with such bank(s) as they deem fit; and
that a Committee of Inspection will not be formed.

Manifold Times previously reported Nicholas James Gronow, director of Heng Tong Fuels & Shipping and Coastal Logistics, filed statutory declarations for both companies stating the firms cannot continue their businesses due to liabilities.

Both companies were reportedly affiliated with troubled Singapore bunker player Coastal Oil (Singapore) Pte Ltd.

In 2019, several vessels owned by both firms entered the sale & purchase (S&P) market in Singapore.

Photo credit: Drew Beamer
Published: 21 July, 2026

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.

Published

15 hours ago

July 21, 2026

Admin

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