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Equatorial navigates through sanctions and green transition amid shifting bunkering landscape

Shipowners’ demand for ‘cheapest compliant fuel’ suggests a potentially more competitive and shrinking market for LSFO, forecasts Choong Sheen Mao, COO at Equatorial.

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Equatorial navigates through sanctions and green transition amid shifting bunkering landscape

Singapore-based physical bunker supplier Equatorial Marine Fuel Management Services Pte Ltd (Equatorial) is adapting to a dynamic global bunker market shaped by regulatory shifts, geopolitical tensions, and the push for decarbonisation, states its Chief Operating Officer.

Choong Sheen Mao was amongst panellists of the Bunker Sellers Panel at IBIA Annual Convention 2025 in Hong Kong on Tuesday (18 November) when he shared a significant trend of shipowners increasingly opting for high sulphur fuel oil (HSFO) paired with scrubbers, driven by the pursuit of the “cheapest compliant fuel”.

Despite a narrowing spread between high and low sulphur fuels – from approximately USD 125 to USD 80, and occasionally below USD 70 – shipowners continue to see long-term investment returns from scrubbers. This shift suggests a potentially more competitive and shrinking market for low sulphur fuel oil (LSFO).

“Geopolitical instabilities, particularly armed conflicts, sanctions and trade wars, are creating considerable market distortions. These instabilities lead to supply disruptions, cargo rerouting, and impact bunker prices,” added Choong.

“Compliance has become a paramount concern, with recent substantial fines underscoring the risks involved. The current economic slowdown, compounded by sanctions and self-sanctioning, presents a ‘double pain’ for the market.

“The market’s daily volatility is also heavily influenced by global politics, making it challenging to assess without a deep understanding of geopolitical events.”

To ensure marine fuel quality, Equatorial emphasises managing its own supply chain and operating its own fleet of bunkering vessels, allowing for direct control from delivery to the customer, he stated.

This approach prioritises transparency and security, fostering long-term relationships where quality issues can be collaboratively addressed. Knowledge sharing, especially concerning parameters from new bunker fuel testing methods such as Gas Chromatography Mass Spectrometry (GC-MS), is also deemed crucial.

Supporting the transition to alternative marine fuels, while acknowledging the uncertainty surrounding the dominant future fuel, Equatorial has strategically invested in IMO Type 2 chemical tankers capable of handling methanol, biofuel, and conventional bunker fuels.

“Biofuel is identified as the most effective short-term solution, offering favourable pricing and operational costs compared to other green alternatives,” explained Choong.

“However, challenges include feedstock availability and potential export quotas from key producing nations like China.

“The adoption of alternative marine fuels necessitates a closer, more collaborative relationship between buyers and sellers.

“This involves detailed discussions on specific fuel specifications beyond standard ISO requirements, extensive lab sampling, and long-term commitments from both parties, particularly given the absence of a liquid hedging market for biofuels.

“Collaboration across safety, quality, and commercial aspects is essential for the successful implementation of bio bunker fuels to the future maritime market.”

 

Photo credit: International Bunker Industry Association
Published: 1 December, 2025

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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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