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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

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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July 21, 2026

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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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July 21, 2026

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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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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.
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July 21, 2026

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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

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