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LNG Bunkering

Argus Media: South Korea’s revised gas law promotes LNG bunkering

The separation of the LNG bunkering market, coupled with relaxations on import volumes and price regulation,is aimed at revitalising the domestic LNG market, it said.

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Jonah Foong of global energy and commodity price reporting agency Argus Media on Wednesday (5 August) published an update on the Korean government’s revised policies to lower barriers of entry to the liquified natural gas (LNG) bunkering industry and outlines its impact on fostering the fledgling sector: 

South Korea has revised legislation governing the development of its urban gas business to include LNG business for vessel use, as part of an effort to promote its domestic LNG bunkering sector.

The revised Urban Gas Business Act takes effect today and will also see the LNG bunkering sector classified separately from the existing gas market, with businesses wishing to engage in LNG bunkering subject to separate regulations.

The government expects the separation of LNG bunkering from the existing gas market, coupled with relaxations on import volumes and price regulation, to create new demand for LNG and revitalise the domestic LNG market.

The revised legislation is aimed at opening up the fledgling LNG bunkering market to more LNG suppliers to ensure robust and competitive supplies. Interested LNG bunker fuel suppliers will no longer be required to seek government approval on the price and volume of LNG imports, although the government must still be notified of any import plans.

The government has lowered the minimum requirement for private-sector firms to enter the bunkering market as LNG fuel suppliers. Firms are required to have an LNG storage tank, an LNG tank attached to a vehicle or an LNG supply vessel, as well as a minimum of 100mn won ($84,000) in capital. LNG bunkering involves the supply of the fuel from truck to ship, or from ship to ship or storage tank to ship.

South Korea has been promoting LNG bunkering by encouraging the development and distribution of “environmentally friendly” vessels, which could support demand for the use of LNG in bunkering operations, as well as vessels powered by LNG. It has already said that it will order 140 LNG-powered vessels over the next six years to support its small and medium-size shipbuilding industry.

South Korea’s LNG bunkering demand is expected to rise to 1.23mn-1.36mn t in 2030 and 3.37mn-3.43mn t in 2040, according to the Korea Energy Economics Institute. State-owned LNG importer Kogas said in 2018 that it expects demand in the domestic LNG bunkering market growing to 311,000 t/yr by 2022.

The move to foster the growth of LNG bunkering is in line with stricter restrictions on vessel emissions by the International Maritime Organisation (IMO) that came into force this year. The IMO has capped the sulphur content in marine fuels at less than 0.5pc as of 1 January from 3.5pc previously, accelerating the shift away from heavy fuel oil to cleaner bunker fuels like LNG.

Kogas signed a deal last month to set up an LNG bunkering joint venture by October with steel producer Posco, shipowner Hyundai Glovis, refiner S-Oil, Busan Port Corporation and Daewoo Logistics. Kogas plans to acquire three LNG bunkering vessels as part of the venture, two of which are expected to operate in the East Sea/Sea of Japan and South Sea and another to operate in the West Sea/Yellow Sea.

Kogas also plans to develop an LNG bunkering facility in Dangjin on South Korea’s northwest coast, with a new LNG receiving facility expected to be completed in 2025. It had said in 2018 that it plans to build a new LNG bunkering facility in the southeast of the country by 2022.

The firm owns and operates five of the country’s seven terminals with a combined nameplate import capacity of 103mn t/yr. The remaining two terminals are the 3mn t/yr Boryeong, which is jointly owned by GS Energy and SK and Posco’s Gwangyang.


Photo credit:
Argus Media
Published: 6 August, 2020

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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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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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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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