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LNG Bunkering

Drewry: LNG shipping on a ‘road to recovery’, but 2026 marks just the beginning

Although 2026 appears to mark the start of recovery, rising geopolitical tensions in the West have heightened uncertainty and could undermine expectations for this year.

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Maritime research and research provider Drewry recently said while it expects LNG shipping rates to improve in 2026, rising geopolitical tensions in the West have heightened uncertainty and could undermine expectations for this year: 

Drewry expects LNG shipping rates to improve in 2026, driven by demand acceleration and LNG supply expansion. However, a significant rebound is still unlikely, as fleet expansion continues to outpace liquefaction build-up. This is highlighted in the 2026 schedule: over 65% of annual deliveries are scheduled for 1H26, while 60% of new supply is expected in 2H26. Although 2026 appears to mark the start of recovery, rising geopolitical tensions in the West have heightened uncertainty and could undermine expectations for this year.

Rates to revive, but rather cautiously, as geopolitical factors and Asian demand could be the wildcards

We expect LNG shipping rates to recover this year from the multi-year lows recorded in 2025 (with TFDE rates averaged $25,000pd in 2025, down 37% YoY, and XDF/MEGI rates averaged $40,500pd, down 25% YoY). Meanwhile, the chances for a strong rebound remain slim, as 100+ LNGCs are scheduled for delivery in 2026, following 76 deliveries in 2025, signalling persistent oversupply.

Although the fleet expansion will continue to prevent any major correction in rates, some positives will serve as catalysts in pivoting rates toward a road of recovery.

Figure 1: 2025 vs 2026

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LNG trade: Demand will rise, but supply expansion will outpace the demand growth

  • Supply growth: About 43 mtpa of new liquefaction capacity is expected to be added in 2026, with some mega projects, including Qatar’s North Field Expansion (16.5 mtpa), Golden Pass T1 (6 mtpa), Corpus Christi Phase-3 and Block2-7 (8.6 mtpa), hitting the market. However, 60% of the upcoming supply is expected to become available in 2H26. Global LNG supply will improve on the back of new production additions (40 mtpa) from 2025, which will ramp up their export intensity.  
  • Trade recalibration: The demand outlook is bright for Europe, with robust imports expected this year as the continent is likely to end the 2025-26 winter with less than 30% of storage, supporting demand. However, Europe’s quest to implement further structural changes in its energy sourcing (backed by new supply deals and regasification expansion) will be the main driver of imports in 2026.
  • Asian demand is set to rise, along with China’s improved demand: Asian demand is anticipated to improve, supported by new supply volumes, higher gas demand, and lower LNG prices. Meanwhile, China’s imports are likely to revive, not due to lower pipeline supply or reduced domestic supply, but to the maxing out of key supply sources that capped China’s LNG demand in 2025. With domestic production already meeting targets for 2025-26 and pipeline supply via PoS 1 operating at full capacity, we expect China’s growing demand to be met through spot buying (which remained subdued in 2025), while new contractual supply is set to commence in 2026.

Note: The full article by Drewry can be found here

 

Photo credit: Drewry
Published: 26 January, 2026

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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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