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Alternative Fuels

ENGINE on Fuel Switch Snapshot: LNG regains edge but remains pricey

Tight VLSFO supply in Singapore drives up price; Rotterdam’s LSMGO is now cheaper than its LNG; LNG regains its cost advantage over B24-VLSFO.

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ENGINE on Fuel Switch Snapshot: LNG regains edge but remains pricey

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:

26 August 2024

  • Tight VLSFO supply in Singapore drives up price
  • Rotterdam’s LSMGO is now cheaper than its LNG
  • LNG regains its cost advantage over B24-VLSFO

Rotterdam’s VLSFO-equivalent LNG bunker price has slightly corrected over the past week following its sharp rally in early August.

A sharp $27/mt decline in Rotterdam’s LSMGO price has shifted the benchmark to a $1/mt discount compared to the port’s LNG bunker price, down from a $15/mt premium in the past week.

Singapore’s LNG has regained its cost advantage over B24-VLSFO, but the gap remains narrow, with LNG just $30/mt more expensive than the bio-blend.

In Rotterdam, LNG’s discount to its B24-VLSFO (HBE) has widened by $9/mt over the past week, to $71/mt.

VLSFO

Rotterdam’s VLSFO benchmark has mostly followed Brent’s downward trend over the past week.

Prompt availability of VLSFO is good in Rotterdam and the wider ARA hub, according to a trader. This has pulled the VLSFO benchmark slightly lower (-$11/mt) compared to Brent’s drop (-$5/mt) over the past week.

VLSFO availability in Singapore remains tight, with several suppliers advising lead times of 7-13 days. The port has also experienced a significant 728,000-bbl decline in net fuel oil imports so far in August, contributing to the stock drawdown.

The tight supply has supported the benchmark and pushed Singapore’s VLSFO price up by $12/mt over the past week, despite a decline in Brent futures.

Biofuels

Rotterdam’s B24-VLSFO HBE price has held steady in the past week. PRIMA assessed palm oil mill effluent methyl ester (POMEME) in the ARA at $1,332/mt on Friday, almost unchanged on the week. 

Singapore’s B24-VLSFO UCOME price has gained by $8/mt in the past week, while its B24-LSMGO UCOME price has come down by $19/mt. A $12/mt increase in VLSFO price has contributed to push Singapore’s B24-VLSFO UCOME price up.

Spot bio-bunker demand remains low in Singapore. Lead times for bio-bunker grades vary between 10-14 days among suppliers.

LNG

Rotterdam’s LNG bunker price has decreased by $10/mt over the past week, tracking the downward movement of the front-month NYMEX Dutch TTF Natural Gas contract.

The decline is attributed to improved natural gas production from Norway and high EU gas storage levels.

Singapore’s LNG bunker price has come down by $30/mt. A 5.2 million mt/year production train at Chevron’s Gorgon LNG plant in Australia has completed maintenance ahead of schedule, easing supply constraints in the region. 

Asian LNG benchmark could see downward pressure from easing supply in Australia, as the country is one of the major LNG cargo suppliers to Asian countries like Japan, China and South Korea.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 27 August, 2024

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LNG Bunkering

Singapore-based EPS takes delivery of three LNG dual-fuel bulk carriers

Three vessels are the third, fourth and fifth in the company’s series of 14 Newcastlemaxes being built at the yard, and were delivered five months ahead of their contracted delivery dates.

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Singapore-based Eastern Pacific Shipping (EPS) on Friday (4 September) announced the naming and delivery of three new LNG dual-fuel Newcastlemax bulk carriers from China’s Qingdao Beihai Shipbuilding. 

Cyril Ducau, CEO of EPS, said the vessels were named Mount Victoria, Mount Yulong and Mount Wuyi

The three vessels are the third, fourth and fifth in the company’s series of 14 Newcastlemaxes being built at the yard, and were delivered five months ahead of their contracted delivery dates.

“A big thank you to CSSC Group and Qingdao Beihai Shipbuilding, working alongside our EPS team, for the tremendous collaboration and commitment behind this achievement,” Ducau said in a social media post.  

 

Photo credit: Eastern Pacific Shipping
Published: 7 September, 2026

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LNG Bunkering

LR awards AiP to CSSC Huangpu Wenchong for 12,500 m³ LNG bunker vessel design

Vessel design incorporates Type C LNG cargo tanks and has been evaluated against a range of class notations covering gas operations, automation, environmental performance and cyber resilience.

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Classification society Lloyd’s Register (LR) on Thursday (3 September) said it has awarded Approval in Principle (AiP) to CSSC Huangpu Wenchong Shipbuilding Co., Ltd. for a new 12,500 m³ LNG bunkering vessel design.

The AiP was signed at SMM 2026 in Hamburg and confirms that the vessel concept has successfully completed an independent design assessment against LR’s latest classification requirements.

The new 12,500 m³ vessel design incorporates Type C LNG cargo tanks and has been evaluated against a comprehensive range of class notations covering gas operations, automation, environmental performance and cyber resilience.

LR’s assessment was carried out in accordance with its Rules and Regulations for the Classification of Ships and Rules and Regulations for the Construction and Classification of Ships for the Carriage of Liquefied Gas in Bulk.

Constantinos Chaelis, LR’s Global Gas Segment Director, said: “This project demonstrates the continued market confidence in LNG and the importance of building the supporting infrastructure that enables owners to make practical emissions reductions today, while maintaining flexibility for the future. Through early engagement between shipyard and class, we can accelerate the delivery of robust designs that meet both operational and regulatory requirements.”

A Huangpu Wenchong spokesperson, said: “This Approval in Principle from Lloyd’s Register validates the technical approach and provides a strong foundation for future development. We believe vessels of this type will play an increasingly important role in supporting the energy transition by helping ensure LNG is available where shipowners need it most.”

 

Photo credit: Lloyd’s Register
Published: 7 September, 2026

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Alternative Fuels

DNV at SMM: Chinese shipbuilders, European owners seek closer ties on alternative bunker fuels

Chinese shipbuilders and European shipowners called for closer collaboration on vessel development, alternative fuels and digitalization during the inaugural China-Europe Maritime Summit at SMM 2026.

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Chinese shipbuilders and European shipowners called for closer collaboration on vessel development, alternative fuels and digitalization during the inaugural China-Europe Maritime Summit at SMM 2026, according to classification society DNV on Friday (4 September). 

The summit, jointly organized by the China Association of the National Shipbuilding Industry (CANSI), the German Shipowners’ Association (VDR) and DNV, brought together leaders from two maritime sectors that collectively shape a significant share of the global fleet. 

Energy efficiency, operational flexibility and digital innovation were highlighted as key areas for the industry as it navigates decarbonization targets, evolving regulation and uncertainty around future fuel pathways.

Knut Ørbeck-Nilssen, Group President and CEO at DNV, said: “Gathering leaders from across Chinese shipbuilding, European shipping and the wider maritime value chain in one room is both timely and important. The decisions being made across our industry today will shape shipping for decades to come, and this summit demonstrates a shared commitment to shaping the future of our industry together.”

Xu Peng, Chairman of China State Shipbuilding Corporation (CSSC), said: “China and Europe’s maritime sectors share aligned missions, complementary strengths and promising prospects. This summit can serve as a starting point for deeper cooperation between China’s shipbuilding industry and Europe’s shipping community, and help broaden the boundaries of full‑chain collaboration and build an interconnected ecosystem.”

Dr. Gaby Bornheim, President of the German Shipowners’ Association (VDR), said: “For shipowners, a new vessel is never an investment for the next quarter. It is a commitment for decades. Long-term investments require trusted partnerships, and many of the world’s most advanced commercial vessels are the result of cooperation between European shipowners and Chinese shipbuilders. Excellence is rarely achieved in isolation.”

China’s shipbuilding industry accounts for around 70% of the global orderbook, while European shipowners operate more than one-third of the world’s fleet capacity. As the global shipping industry faces increased uncertainty, finding solutions that provide flexibility is essential. 

The summit featured two high-level panel discussions moderated by Dr. Martin Kröger, CEO of VDR, and Li Yanqing, Vice Chairman and Secretary General of CANSI, bringing together senior executives from leading Chinese shipbuilders, including China Merchants Industry (CMI), Guangzhou Shipyard International (GSI), Shanghai Waigaoqiao Shipbuilding (SWS), and Shanghai Merchant Ship Design & Research Institute (SDARI), alongside European shipowners and operators such as Vogemann Reederei, Briese Schiffahrt, Bernhard Schulte, MPC Containerships, and Grieg Edge, as well as DNV. 

Discussions further highlighted the importance of close China-Europe collaboration to support shipping’s transformation.

 

Photo credit: DNV
Published: 7 September, 2026

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