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ENGINE on Fuel Switch Snapshot: LNG defies the downturn

Conventional bunker prices nosedive on Brent’s collapse; bio-blends tumble with fossil components; LNG soars while other bunker fuels plummet.

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ENGINE on Fuel Switch Snapshot: LNG defies the downturn

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:

5 August 2024

  • Conventional bunker prices nosedive on Brent’s collapse
  • Bio-blends tumble with fossil components
  • LNG soars while other bunker fuels plummet

Conventional bunker fuel prices have nosedived in the past week following a massive selloff in the front-month ICE Brent futures contract. Brent futures dropped by a significant $4.32/bbl ($32/mt) over the past week, reaching their lowest level in eight months.

This marks the most aggressive selloff in Brent since May, according to Warren Patterson, head of commodity strategy at ING. Fears of a recession in the US, combined with weaker oil demand from China, have offset concerns that oil supply could be severely affected if the conflict in the Middle East escalates further, Patterson noted.

LNG is no longer the cheapest alternative for dual-fuel ships in Rotterdam and Singapore. The VLSFO-equivalent LNG bunker price in Rotterdam has flipped from a $34/mt discount to a $44/mt premium over its VLSFO. When adding in estimated EU Allowances (EUA) costs – which favour LNG over VLSFO – Rotterdam’s LNG is $32-38/mt costlier than its VLSFO.

Singapore’s LNG premium over VLSFO has widened by $23/mt, to $39/mt with estimated EUA costs added, and $45/mt without.

The price gap between Rotterdam’s HBE-qualified B24-VLSFO blend and LNG has narrowed by a sharp $79/mt in the past week, to $123/mt.

Singapore’s UCOME-based B24-VLSFO blend is $86/mt more expensive than its LNG, reflecting a $24/mt drop from a week ago.

VLSFO

Rotterdam’s VLSFO price has dropped by $16/mt in the past week, or by $12-14/mt when we add the estimated EUA costs.

Singapore’s VLSFO price has slipped $8-10/mt lower in the past week with estimated EUA cost added.

VLSFO availability remains tight in both Rotterdam and Singapore. Although Brent’s sharp decline over the past week has driven prices lower, tight VLSFO availability in both Rotterdam and Singapore seems to have prevented more significant reductions.

VLSFO is in low demand in Rotterdam, a source said. This could have added some downward pressure on the price.

In Singapore, VLSFO availability has tightened as several suppliers are running low on stock or have limited barge availability. Most suppliers now recommend lead times of 12-22 days, up from 12-18 days the week prior.

Biofuels

Rotterdam’s B24-VLSFO HBE price has decreased by $13-16/mt, and its B24-LSMGO HBE price has dropped by a more significant $20-23/mt in the past week – both including estimated EUA costs.

The two benchmarks have declined amid a drop in the values of pure LSMGO ($23/mt) and pure VLSFO ($16/mt) and the price of palm oil mill effluent methyl ester (POMEME) feedstock ($20/mt).

Rotterdam sold about 234,000 mt of bio-blended bunkers in the second quarter, down by 11% from the previous quarter. Nearly 70% of the bio-bunkers sold in the second quarter was VLSFO-blended.

Singapore’s B24-VLSFO UCOME price has shed $9-10/mt in the past week, while its B24-LSMGO UCOME price has declined by a greater $17-19/mt. A $10/mt drop in the UCOME FOB China benchmark has added downward pressure on both the benchmarks.

Pricing activity for Chinese UCOME FOB in bulk was mostly muted last week because of impending EU tariffs on Chinese biodiesel imports, according to PRIMA Markets.

LNG

Rotterdam’s LNG bunker price has shot up by $62/mt in the past week. If we add the estimated EUA costs, the price has increased by another $2-4/mt over the outright price.

The price has spiked on the back of a strenghtening underlying Dutch TTF contract, which rolled from August to a higher-priced September contract. Rising LNG demand due to heatwaves across southern Europe have also added upward pressure on the price.

Concerns over supply constraints due to an outage at Norwegian operator Equinor’s Visund gas field and a maintenance shutdown at Norway’s Kaarsto gas-processing facility have also contributed to the price increase.

Singapore’s LNG benchmark has jumped $13-15/mt higher in the past week.  

The Ichthys LNG train 2 in Australia, operated by Japanese oil firm Inpex, is running at approximately 80% of its processing capacity following a 19 July outage. It is expected to remain at reduced capacity through August, according to Rystad Energy. It is a major LNG supplier to Asia-Pacific with a processing capacity of 4.45 million mt/year.

In addition, China, Japan and South Korea are forecast to experience above-average temperatures until 13 August, which will likely keep gas demand high, Rystad added.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 6 August, 2024

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Alternative Fuels

Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

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Yang Ming orders six LNG dual-fuel, ammonia-ready containerships from Hanwha Ocean

Taiwanese shipping firm Yang Ming Marine Transport Corporation (Yang Ming) and South Korean shipbuilder Hanwha Ocean on Wednesday (2 September) signed a shipbuilding contract for six 13,000 TEU class LNG dual-fuel container vessels. 

The contract was signed by Dr. Chuck Tsai, Chairman of Yang Ming, and Mr. Charles Kim, CEO of Hanwha Ocean. The vessels are scheduled for delivery between 2028 and 2029. 

They will complement Yang Ming’s existing fleet of 10,000+ TEU vessels and serve as key vessels on East-West services, with deployment flexibility across trade lanes connecting Asia with the East and West Coasts of North America, South America, and the Mediterranean. 

Each of the six new vessels will have a capacity of up to 13,650 TEU and feature LNG dual-fuel propulsion and Ammonia Fuel Ready specifications.

“As Yang Ming transitions toward net-zero emissions, LNG provides a relatively mature and economically viable alternative fuel solution, capable of reducing greenhouse gas emissions by approximately 20%,” the company said. 

“At the same time, ammonia can serve as a carbon-free fuel by utilising converted LNG storage facilities, while offering relatively lower conversion costs and comparatively well-developed supply chains and infrastructure. The Ammonia Fuel Ready design will therefore provide Yang Ming with greater flexibility in responding to increasingly stringent international regulations on greenhouse gas emissions.”

In addition, the vessels will be equipped with Type B LNG fuel tanks with a design pressure of 1.0 bar to enhance the safety and efficiency of LNG operations, together with a range of energy-saving technologies, including Wind Shields, Rudder Bulbs, Pre-Swirl Stators, and Shore Power Systems. Smart ship technologies and cybersecurity protection features will also be incorporated to enhance operational efficiency, safety, and reliability while effectively reducing fuel consumption and greenhouse gas emissions.

Deliveries under Yang Ming’s next-generation fleet optimization plan commenced earlier this year. By 2030, a total of 24 new vessels are expected to enter service. 

This includes 18 LNG dual-fuel vessels—comprising five 15,500 TEU, seven 16,000 TEU, and the six 13,000 TEU vessels under this contract—alongside six 8,000 TEU methanol dual-fuel-ready ships. 

 

Photo credit: Yang Ming Marine Transport
Published: 4 September, 2026

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Both secured AiP for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

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LR, China’s MARIC unveil tanker concept ready for three future bunker fuels

Lloyd’s Register (LR) and the Marine Design and Research Institute of China (MARIC) on Thursday (3 September) have secured Approval in Principle (AiP) for a new 114,000 DWT product and crude oil tanker designed to accommodate future conversion to LNG, methanol or ammonia.

Announced at SMM 2026, the concept addresses one of the biggest investment challenges facing shipping today: the need to develop vessels and capabilities that can support a range of alternative fuel options and pathways as technologies, infrastructure and regulations evolve.

While LNG is already a mature fuel pathway, methanol and ammonia remain at an earlier stage of development, with questions around global fuel availability, infrastructure development, economics and long-term adoption.

The 114,000 DWT tanker concept has been designed as a product and crude oil carrier that can accommodate future conversion to LNG, methanol or ammonia as technologies, regulations and fuel supply chains mature. By incorporating conversion readiness at the design stage, the concept aims to reduce future retrofit complexity and provide owners with greater confidence when planning long-term fleet investments.

The design concept was reviewed against LR’s July 2026 class rules and regulations, including requirements relating to ships using gases and other low-flashpoint fuels, alongside relevant IACS Common Structural Rules for oil tankers. Final classification and statutory approval remain subject to full compliance with all applicable rules and regulations.

Theo Kourmpelis, Global Business Director for Tankers, Lloyd’s Register, said: “Shipowners are being asked to make major investment decisions today despite continued uncertainty around which fuels will dominate in the decades ahead. Alternative fuel solutions each offer potential pathways to compliance, but fuel infrastructure, regulation and economics continue to evolve at different speeds around the world.

“Designs that preserve flexibility will be critical in helping owners manage risk while preparing for multiple future scenarios.”

Si Nan, Marine & Offshore Marketing Department Vice Director, MARIC, said: “As the industry explores different decarbonisation pathways, shipowners need vessel designs that can adapt alongside technological and regulatory developments. This concept was developed specifically to provide greater fuel flexibility and long-term resilience, allowing owners to respond to changing market requirements without being locked into a single fuel strategy.

“Receiving Approval in Principle from Lloyd’s Register is an important milestone that validates the design concept and supports its future development.”

 

Photo credit: Lloyd’s Register
Published: 4 September, 2026

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Alternative Fuels

DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

LNG-fuelled vessels accounted for the vast majority of August activity while the strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year.

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DNV: Alternative-fuelled vessel orders hit highest monthly level since October 2024

Latest data from classification society DNV’s Alternative Fuels Insight (AFI) platform alternative-fuelled vessel ordering was strong in August, with 52 new vessels added to the platform.

This is the highest monthly total since October 2024 and follows another active month in July, when 47 vessels were added to the database.

LNG-fuelled vessels accounted for the vast majority of August activity, with 46 orders recorded. The container segment led the way with 30 orders, while the car carrier segment contributed a further 12 LNG-fuelled vessels. In addition, four ethanol-fuelled bulk carriers and two hydrogen-powered bulk carriers were added during the month, as well as one LNG bunker vessel.

The strong summer performance marked a significant acceleration in ordering activity after a relatively slow start to the year. In total, 242 alternative-fuelled vessel orders have been placed in the first eight months of 2026, representing a 27% increase compared with the same period in 2025.

LNG remains the dominant fuel choice, accounting for 63% of all alternative-fuelled vessel orders registered so far this year. Container vessels represent the largest share of these LNG orders (59%), followed by car carriers (30%).

Jason Stefanatos, Global Decarbonization Director at DNV Maritime, said: “The past two months have been particularly strong for alternative-fuelled vessel ordering, with August recording the highest monthly total we’ve seen since October 2024. This has helped lift year-to-date orders to a level well above the same period last year.

“LNG remains the leading fuel choice, driven largely by activity in the container and car carrier segments. These sectors have been among the earliest adopters of alternative fuels, supported by predictable liner operations and increasing demand from cargo owners to reduce emissions across supply chains. 

“For many owners, LNG offers a combination of emissions reductions, fuel availability and future flexibility while the longer-term fuel landscape continues to evolve. 

“At the same time, the latest figures include orders for ethanol- and hydrogen-fuelled vessels, highlighting that owners continue to explore a range of decarbonization pathways. Different segments are making different fuel choices, but the overall level of activity demonstrates continued investment in lower-emission shipping.”

Screenshot 2026 09 04 at 12.29.26 PM Screenshot 2026 09 04 at 12.29.36 PM

 

Photo credit: DNV
Published: 4 September, 2026

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