Connect with us

Alternative Fuels

ENGINE on Fuel Switch Snapshot: LNG premium over VLSFO widens

Higher European gas demand boosts price; Rotterdam LNG costs $200/mt more than VLSFO; B100 compliance premium over VLSFO drops.

Admin

Published

on

ENGINE on Fuel Switch Snapshot: LNG premium over VLSFO widens

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:

27 January 2025

  • Higher European gas demand boosts price
  • Rotterdam LNG costs $200/mt more than VLSFO
  • B100 compliance premium over VLSFO drops

A sharp rise in Rotterdam’s LNG’s price has widened its premium over VLSFO by $67/mt in the past week. VLSFO-equivalent LNG is now $205/mt more expensive than VLSFO in Rotterdam when used in Otto medium-speed engines with a 3.1% methane slip.

Even after factoring in EU-EU port compliance costs and estimated FuelEU Maritime pooling benefits, LNG remains $173/mt costlier than VLSFO.

When compliance costs and estimated pooling benefits are included, B100 has been at a $55/mt discount to HSFO and a $126/mt discount to VLSFO over the past week. This is a significant increase from the $11/mt and $83/mt discounts seen in the previous week.

ENGINE on Fuel Switch Snapshot: LNG premium over VLSFO widens

Similarly, compliance costs and pooling benefits have increased LBM’s discount to fossil LNG by $6–9/mt, depending on the engine type, bringing it to $273–313/mt. The cost advantage also includes the Dutch HBE rebate for sustainable biogases.

Liquid fuels

Rotterdam’s VLSFO-equivalent B100 price has fallen by a sharp $60/mt in the past week, reducing its compliance premium over VLSFO by $47/mt to $575/mt.

PRIMA assessed the Dutch HBE rebate for B100 at $364/mt, up $16/mt from the week prior.

Using B100 instead of VLSFO on ships offers a theoretical pooling benefit of $553/mt under FuelEU, reflecting a $21/mt decrease from the previous week. B100 is considered zero-carbon in the EU ETS which, combined with the theoretical pooling benefit, can reduce the real cost of bunkering B100 to $670/mt.

Rotterdam’s VLSFO price has dropped by a modest $8/mt over the past week, compared to a bigger $17/mt decline in front-month ICE Brent Futures. Fuel availability remains stable across the wider ARA region, with suppliers generally recommending lead times of 3–5 days.

VLSFO availability remains tight in Singapore. The benchmark has fallen by $20/mt in the past week, mostly in tandem with Brent’s decline.

Liquid gases

Rotterdam’s VLSFO-equivalent LNG price has surged by $59/mt in the past week, partially driven by a 3% rise in the front-month Dutch TTF Natural Gas contract. Increased gas demand, spurred by colder-than-usual temperatures in Europe, has boosted the TTF benchmark, Rystad Energy noted.

Meanwhile, Singapore’s VLSFO-equivalent LNG price has increased by a smaller $18/mt over the past week. This slight increase can partly be attributed to a modest rise in the front-month JKM contract, driven by tepid LNG demand across Asia due to warmer-than-usual weather.

While the VLSFO-equivalent price of liquefied biomethane (LBM) is over $400/mt higher than fossil LNG in Rotterdam, the gap narrows significantly when accounting for EU-EU compliance costs and pooling benefits.

LBM consumed in Otto MS engines with a 3.1% methane slip generates a theoretical pooling benefit of $546/mt under the FuelEU mechanism. When used in diesel SS engines with a 0.2% methane slip, LBM offers a significantly higher pooling benefit of $681/mt. These pooling benefits have remained unchanged over the past week.

When including compliance costs and pooling, the cost of bunkering LBM can be reduced to $520-655/mt, while the price of fossil LNG increases to $793-968/mt – depending on the engine type.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 28 January, 2025

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