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ENGINE on Fuel Switch Snapshot: LNG’s price advantage dwindles

VLSFO prices defy Brent’s upward push; LNG now only $9-16/mt cheaper than LSMGO; B24-VLSFO blends cost $63-81/mt more than LNG.

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ENGINE on Fuel Switch Snapshot: LNG's price advantage dwindles

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:

12 August 2024

  • VLSFO prices defy Brent’s upward push
  • LNG now only $9-16/mt cheaper than LSMGO
  • B24-VLSFO blends cost $63-81/mt more than LNG

VLSFO prices have resisted rising Brent crude values as bunker availability has improved in Rotterdam and Singapore over the past week.

Rotterdam’s LNG premium over VLSFO has shot up by $56/mt to $100/mt in the past week. When including estimated EU Allowance (EUA) costs, LNG is $88-94/mt more expensive than VLSFO in Rotterdam.

Singapore’s LNG is at a $55/mt premium over its VLSFO without estimated EUA costs, and at a smaller $49/mt premium with EUAs.

The price gap between LNG and LSMGO has narrowed drastically in Rotterdam. Its VLSFO-equivalent LNG price is now just $9/mt lower than its LSMGO, as the discount has narrowed by a significant $66/mt over the past week. The gap is slightly larger in Singapore, where LNG is $16/mt cheaper than LSMGO. 

When including estimated EUAs, LNG is $16-25/mt cheaper than LSMGO in Rotterdam. The EUAs slightly favour LNG over both LSMGO and VLSFO.

Dual-fuel shipowners will now have to pay $63/mt more for bunkering a B24-VLSFO HBE blend compared to bunkering LNG in Rotterdam, and $81/mt more for bunkering UCOME-based B24-VLSFO instead of LNG in Singapore.

When including estimated EUA costs, the gap narrows further to $52-57/mt in Rotterdam and to $76/mt in Singapore.

VLSFO

Rotterdam’s VLSFO price has remained almost steady with only a $2/mt dip, while Singapore’s VLSFO price has seen a slightly bigger $9/mt drop in the past week.

Prompt availability of VLSFO in Rotterdam has improved over the past week compared to the week before, a trader told ENGINE. This has come despite improved demand.  

Prompt VLSFO availability remains tight in Singapore. But lead times for the grade have improved to 9-13 days in the port, a sharp reduction from 12-22 days a week earlier.

Biofuels

Bio-bunker prices in Rotterdam and Singapore have mostly been steady over the past week.

Rotterdam’s B30 VLSFO HBE price has shed $6/mt, while its B24-LSMGO HBE price has come down by a steeper $15/mt. A $32/mt drop in the price of palm oil mill effluent methyl ester (POMEME) has contributed to put downward pressure on the benchmarks.

Singapore’s B24-VLSFO price has seen a modest $4/mt decline over the past week while the underlying UCOME FOB China benchmark has held steady at $980/mt

“The Chinese market is waiting for the provisional anti-dumping duties by the European Commission to be set in stone, with trading restrictions on the likes of UCOME, FAME and HVO expected by mid-August [12 August],” PRIMA Markets said.

LNG

Rotterdam’s LNG bunker price has jumped by a whopping $64/mt in the past week. The price gain has been driven by a sharp rise in the Dutch TTF Natural Gas contract. Delivery costs have also gone up by $18/mt to $117/mt.

Gas supply concerns in France and eastern Europe, coupled with high demand driven by unusually high temperatures in Europe, have contributed to drive up Rotterdam’s LNG bunker price.

While Rotterdam’s price has rallied higher, Singapore’s has inched up by just $2/mt and is now just $11/mt higher than Rotterdam’s.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 13 August, 2024

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.

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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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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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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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