Connect with us

Alternative Fuels

ENGINE on Fuel Switch Snapshot: Bio-blends at a hefty price tag

Higher Brent drives VLSFO prices higher; Rotterdam’s LNG back at a discount to VLSFO; bio-blends now much costlier than LNG.

Admin

Published

on

ENGINE on Fuel Switch Snapshot: Bio-blends at a hefty price tag

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:

  • Higher Brent drives VLSFO prices higher
  • Rotterdam’s LNG back at a discount to VLSFO
  • Bio-blends now much costlier than LNG

VLSFO benchmarks in Rotterdam and Singapore have jumped by $19/mt and $16/mt, respectively, over the past week. A rise in front-month ICE Brent futures has supported VLSFO values upwards.

Rotterdam’s sharp VLSFO price rise has taken the grade from a $13/mt discount to LNG to a $6/mt premium now.

When we include estimated EU Allowance (EUA) costs for voyages between two EU ports, LNG is now $12/mt cheaper than VLSFO in Rotterdam.

Rotterdam’s B24-VLSFO premium over LNG has gone up by $21/mt in the past week, to $180/mt. B24-VLSFO is $170-175/mt costlier than LNG when we add estimated EUA costs to bunker fuel prices, which penalise biofuel blends slightly less than LNG.

This means that fossil LNG is a much cheaper alternative to B24-VLSFO blends for ships with dual-fuel engines bunkering in Rotterdam. And this is true even when we include the estimated costs of complying with the EU ETS regulation.

HSFO remains the most affordable option for scrubber-fitted ships.

VLSFO

Brent futures rose above $87/bbl on Friday, supported by mounting tensions between Israel and Hezbollah and concerns that global oil supplies could be disrupted by a broader conflict in the Middle East.

This increase appears to have boosted Singapore and Rotterdam’s VLSFO prices.

Availability of the grade in Rotterdam remains normal. It has improved a bit in Singapore, with suppliers indicating lead times of 4-9 days, compared with 7-17 days the week prior.

Biofuels

Biofuel bunker blend prices in Rotterdam and other ARA ports are up by $20-21/mt with support from rising values for both conventional (+$19-20/mt) and bio (+$23/mt) components.

The price of B30-VLSFO UCOME ARA has risen in tandem with that of B30-VLSFO HBE Rotterdam in the past week, and the UCOME blend is still unattractive at a $67/mt premium over the rebated HBE price.

UCOME-based B24-VLSFO is the go-to biofuel bunker grade in Gibraltar and Algeciras, and it has risen by $19/mt in the past week. That widens its premium over Singapore’s equivalent grade to $67/mt.

Singapore’s $13/mt gain for B24-VLSFO outcompetes its B24-LSMGO grade but is still far off the price gains we have seen in the ARA in the past week.

A B24-VLSFO deal was reported in Singapore on Monday at $729/mt, or $8/mt below the benchmark from Friday. No further details of the stem’s size or lead time are known, but it was priced considerably lower than another indication of $745/mt in the market.

LNG

Rotterdam’s VLSFO-equivalent LNG bunker price has remained unchanged at $568/mt in the past week. The bunker price reflects a slight drop in the front-month NYMEX Dutch TTF Natural Gas benchmark, indicating stability in the European gas market.

The price has inched lower by just $1/mt when we take estimated EUA costs into account.

Meanwhile, Singapore’s LNG bunker price has increased by $7/mt in the past week.

A surge in demand across key Asian gas markets can tighten LNG supply, causing suppliers to prioritise deliveries to these high-demand destinations. This can in turn curb availability of LNG for bunkering in Singapore and exert upward pressure on prices.  

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 2 July 2024

Continue Reading

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.

Admin

Published

on

By

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

Continue Reading

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.

Admin

Published

on

By

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

Continue Reading

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.

Admin

Published

on

By

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

Continue Reading

Trending