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ENGINE on Fuel Switch Snapshot: Rotterdam LNG premium over LSMGO widens

VLSFO availability remains tight in Singapore; LNG prices soar above VLSFO and LSMGO; Dutch HBE rebates become more attractive.

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ENGINE on Fuel Switch Snapshot: Rotterdam LNG premium over LSMGO 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:

30 September 2024

  • VLSFO availability remains tight in Singapore
  • LNG prices soar above VLSFO and LSMGO
  • Dutch HBE rebates become more attractive

LNG bunker prices have risen in both Singapore and Rotterdam and moved to wider premiums over conventional fuels.

Rotterdam’s LNG premium over LSMGO has shot up from $5/mt to $35/mt, and $22-28/mt with estimated EU Allowances (EUAs) included in the prices.

LNG bunker suppliers in the ARA have been seeing some switching from LNG to conventional fuels lately, especially for smaller stems.

In Singapore, LNG’s premium over its LSMGO has widened by $21/mt to $88/mt without estimated EUAs, and to $81/mt with.

Rotterdam’s B24-VLSFO HBE remains at a $63/mt price discount to its B24-LSMGO HBE. In Singapore, B24-VLSFO UCOME is only $14/mt cheaper than B24-LSMGO UCOME.

VLSFO

Rotterdam’s VLSFO has been unchanged in the past week despite a $2.41/bbl ($18/mt) decline in front-month Brent futures.

Prompt availability of VLSFO is still good in Rotterdam, a trader told ENGINE. Demand for the grade has been muted, a source added. These countering factors seem to have kept prices stable without significant movements in either direction.

Singapore’s VLSFO benchmark has also remained rather steady, with only a $5/mt decline amid persistently tight availability.

Biofuels

Rotterdam’s B24-VLSFO HBE and B24-LSMGO HBE prices have declined by $8-9/mt in the past week, partly because of a $15/mt drop in the underlying PRIMA POMEME CIF ARA price.

The estimated Dutch HBE rebate for B30-VLSFO HBE has now risen to $90/mt, a level last seen in April. This makes POMEME-based biofuel blends even more attractive in Dutch ports as these blends qualify for Dutch advanced HBE rebates.

Singapore’s B24-VLSFO UCOME price has shed $9/mt and its B24-LSMGO UCOME price has declined by a greater $13/mt, amid a drop in the underlying UCOME FOB China price.

Despite a falling UCOME FOB China price, buying interest has been tepid. “The Chinese waste-based biodiesel market declined on Friday, as fresh offers indicated faltering confidence amongst sellers, especially as overseas demand remains limited lately,” PRIMA said.

LNG

Rotterdam’s VLSFO-equivalent LNG bunker price has soared by $29/mt in the past week.

Europe’s gas market is facing supply concerns due to planned outages in Norway and maintenance at Medgaz, a key gas pipeline between Algeria and Spain. Medgaz has a capacity of 10.16 billion cbm/year.

Singapore’s LNG bunker price has increased by $10/mt. This increase has been driven by a higher NYMEX Japan/Korea Marker (JKM) price.

Asia’s gas inventories are under pressure from demand for air conditioning in the region, though spot buying has been limited. Japan’s power company Jera has reportedly secured spot deliveries for the upcoming winter months, Rystad Energy added.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 1 October, 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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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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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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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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