Connect with us

Bunker Fuel

ENGINE on Fuel Switch Snapshot: VLSFO retains cost advantage

Price gap between VLSFO and LNG holds firm; Singapore’s bio-premium over LNG soars; bio-bunker demand low in Rotterdam and Singapore.

Admin

Published

on

ENGINE on Fuel Switch Snapshot: VLSFO retains cost advantage

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:

10 June 2024

  • Price gap between VLSFO and LNG holds firm
  • Singapore’s bio-premium over LNG soars
  • Bio-bunker demand low in Rotterdam and Singapore

VLSFO remains the cheapest bunkering alternative for dual-fuel ships in Rotterdam and Singapore, even with estimated EU Allowance (EUA) costs included in their bunker fuel costs. HSFO is the cheapest option for scrubber-fitted ships.

LNG prices dropped over the past week, but they still remain $9-22/mt higher than VLSFO in Rotterdam and $34-40/mt higher in Singapore.

Rotterdam’s bio-bunker premium over LNG has remained steady, while Singapore’s bio-premium over LNG has climbed $17/mt higher in the past week.

B24-VLSFO blend now costs $130-141/mt more than LNG in Rotterdam and $90-95/mt more than LNG in Singapore.

VLSFO

Rotterdam’s VLSFO benchmark has dropped by $15-19/mt in the past week, depending on whether we include estimated EUA costs for voyages between EU ports.

The price has largely tracked Brent’s downward trend. Availability of the grade is normal in Rotterdam, and a trader recommends lead times of 3-5 days.

Singapore’s VLSFO benchmark remained steady in the past week, with a $2/mt marginal gain noted.

Most suppliers recommend lead times of up to 14 days, while some can accommodate stems within four days. This represents a tightening from a week prior, when traders recommended shorter lead times ranging between 2-9 days.

Biofuels

Rotterdam’s B24-VLSFO HBE price has slipped lower by $15-18/mt in the past week, which includes the estimated EUA costs. A steep decline of $60/mt in the price of palm oil mill effluent methyl ester (POMEME) has pulled the benchmark lower.

Overall, demand for biofuel blends has been low in Rotterdam and in the wider ARA hub, two sources say.

In contrast, Singapore’s B24-VLSFO price has surged by $18-19/mt in the past week. The bio-bunker price has gained despite a $5/mt drop in the UCOME FOB China benchmark, according to PRIMA Markets.

Demand for biofuel blends was mostly limited in Singapore last week, two sources say. Availability has been normal in the port, and traders recommend lead times of at least 10 days to ensure full coverage from suppliers.

LNG

Rotterdam’s LNG bunker price has fallen by $13-17/mt over the past week, after rising for two consecutive weeks.

The price drop mirrors the decline in the front-month NYMEX Dutch TTF Natural Gas benchmark, which has declined amid projections of rising gas storage levels across Europe.

Singapore’s LNG bunker price has remained relatively steady, with a marginal $1-3/mt rise in the past week.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 11 June 2024

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