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Argus Media: Power demand limits Japan’s bunker fuel availability

Japanese power firms that operate oil-fired power generation plants started securing fuel oil earlier than the previous year and even lifted purchases of feedstock.
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Maiko Nakashima of global energy and commodity price reporting agency Argus Media on Monday (29 November) published a report on Japan’s marine fuel supply status.

Japan’s marine fuel availability has been tight since early November as Japanese refiners prioritise fuel oil supply requests from the domestic power sector in preparation for peak winter electricity demand.

Japanese refiner Eneos has received 2½ times more fuel oil delivery enquiries from Japanese power firms compared with a year earlier, while the company’s supply volumes have doubled, Petroleum Association of Japan chairman Tsutomu Sugimori said last week. Sugimori is also the chairman of Eneos.

Japanese power firms that operate oil-fired power generation plants started securing fuel oil earlier than the previous year and even lifted purchases of the feedstock, having learnt from severe power shortages in the country from December 2020 to January this year. Japanese power firms consumed around 28,000 bl of fuel or crude oil for power during October-December 2020.

Domestic oil refiners delivered marine fuel oil to trading houses in November within the allocated volume based on their term contracts. Most of the allocated volumes were supplied to Japanese shipowners as demand from coal and iron ore carriers has been strong.

Japan’s October coal imports of 15.9mn t, which includes steam, coking, anthracite and met coal, rose by 8.2pc on the year and were higher by 2pc from the same month in 2019. The country purchased 9.9mn t of iron ore during the month, up by 10.4pc from a year earlier but lower by 2.9pc from October 2019, according to latest data from the country’s finance ministry.

Technical issues at refineries and a lack of vessels that carry bunker fuel components also pressured marine fuel inventories. Some coastal vessels have been busy shipping fuel oil to power generation plants from refineries on a priority basis, market participants said.

Strong power sector requirements and bulk carrier demand meant there were no additional bunker fuel cargoes available during the month. This led to limited spot availability of both fuel oil cargoes and bunker barges, resulting in a rise in Tokyo bunker fuel prices with sparse discussions. This is likely to last at least until December, traders said.

Japan’s very low-sulphur fuel oil prices have averaged $648.08/t so far in November, higher compared with $639.03/t in South Korea, $610.67/t in Zhoushan, China and $616.04/t in Singapore.

Tokyo high-sulphur fuel oil prices have averaged $535.22/t so far in November, higher compared with $513.29/t in South Korea, $506.76/t in Zhoushan and $456.50/t in Singapore.

 

Photo credit and source: Argus Media
Published: 30 November, 2021

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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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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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