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LNG Bunkering

KOGAS signals intent to improve LNG bunkering capacity

Looking to build portfolio with global LNG bunkering firms such as Shell and Mitsui.

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South Korean public natural gas company Korea Gas Corporation (KOGAS) Thursday announced plans to improve its liquefied natural gas (LNG) bunkering capacity, according to the Korea times.

It intends to request the Korean government to amend regulations to allow the use of LNG as a marine fuel by the end of 2019, and plans to build a portfolio with global LNG bunkering firms such as Shell and Mitsui.

To date, South Korea has two LNG-propelled ships in operation; POSCO and Korea South-East Power Company have plans to introduce more LNG-powered ships. 

KOGAS is currently bunkering LNG at its Pyeongtaek and Tongyeong terminals by using tank trucks, and plans to finish construction of a LNG bunkering vessel by the end of 2019.

“Amid enhanced regulations of fossil fuels, the world is looking at fierce competition to explore sustainable energy sources and relevant technologies,” a KOGAS official said.

“Through LNG bunkering, KOGAS will pre-emptively respond to the rapidly changing environmental issues.”

KOGAS in early July signed a "Business Agreement for Establishment and Activation of the Busan Port LNG Bunkering System" at the headquarters of BPC.

The Korean Ministry of Oceans and Fisheries  in May introduced plans to revitalise the country’s LNG related shipbuilding industry.

Related: KOGAS and Busan Port enter LNG bunkering study
RelatedKOGAS supports push for LNG bunkering
RelatedSouth Korea to ‘revitalise’ LNG-fuelled shipbuilding sector

Photo credit: KOGAS
Published: 13 July, 2018

 

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Alternative Fuels

ENGINE on Fuel Switch Snapshot: VLSFO holds firm

High demand and low stocks make VLSFO resilient to Brent; rising concerns of supply disruption drive LNG prices higher; bio-bunker premium over conventional VLSFO narrows further.

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ENGINE on Fuel Switch Snapshot: VLSFO holds firm

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: 

  • High demand and low stocks make VLSFO resilient to Brent
  • Rising concerns of supply disruption drive LNG prices higher
  • Bio-bunker premium over conventional VLSFO narrows further

Rotterdam's price premium of LNG over HSFO has increased by $7/mt to $9/mt, after a modest rise in the price of LNG in the past week. HSFO remains the cheapest fuel alternative in Rotterdam.

When the estimated EU ETS cost is included in the bunker fuel costs for voyages between the EU and a non-EU port, Rotterdam LNG’s $4/mt discount to HSFO has flipped to a $4/mt premium in the past week. For a ship sailing from Rotterdam to another EU port with estimated EU ETS costs included, LNG now has only a $1/mt price advantage over its HSFO, compared to $9/mt the week prior.

LNG’s discount to B24-VLSFO in Rotterdam has narrowed even further by $18/mt in the past week, even when estimated EU ETS costs are added to the price. Rotterdam’s LNG is priced at $210-221/mt discount to its B24-VLSFO.

Rotterdam’s B24-VLSFO premium over pure VLSFO has dropped even further by $13-14/mt over the past week, to $87-109/mt.

VLSFO

Rotterdam’s VLSFO benchmark has inched lower by $1/mt in the past week, despite a $30/mt decline in front-month ICE Brent futures. When the price of Dec24 EU Allowances (EUAs) for voyages between two EU ports is added to the VLSFO price, the overall price decreases by $5/mt.

VLSFO demand in Rotterdam has remained steady in the past week, sources told ENGINE. Two traders have reported strong VLSFO demand in the port. Availability is mostly normal, but securing the grade for very prompt dates (0-2 days) can be difficult, the sources added.

The ARA region’s independently held fuel oil stocks have averaged 5% lower so far this month than across March, according to Insights Global data.

Steady demand in Rotterdam and a drop in the wider ARA region's fuel inventories seem to have supported the benchmark's resistance against Brent's downward pull.

Singapore’s VLSFO benchmark has seen a modest $3-5/mt decrease in the past week, depending on whether the price is adjusted with the estimated EUA price for a voyage to an EU port.

Demand for bigger VLSFO stems seems to have increased in Singapore. ENGINE recorded 15 VLSFO stems in Singapore in the wide price band of $634-653/mt. Three 1,500 mt stems were priced in the lower price band between $634-648/mt and seven 500-1,500 mt stems were priced between $643-649/mt.

Biofuels

Rotterdam’s B24-VLSFO HBE bunker price has moved $15-18/mt lower in the past week, to $719-790/mt, depending on whether the fuel is estimated to be consumed on a voyage to an EU port or not.

PRIMA-assessed palm oil mill effluent methyl ester (POMEME) in the ARA dropped by $72/mt on the week, which has put downward pressure on bio-bunker prices in Rotterdam. POMEME-based biofuels are eligible for Dutch advanced biofuel (HBE) rebates.

Singapore’s B24-VLSFO UCOME bunker price has inched only $2-3/mt lower to $761-796/mt.

Prompt bio-bunker availability is tight in Singapore, two sources say. This has partly prevented prices of the most sought-after biofuel blend, B24-VLSFO UCOME, from dropping steeply in the past week.

LNG

Rotterdam’s LNG bunker benchmark has remained roughly steady in the past week.

Concerns that European LNG supply could be disrupted if the Middle East conflict escalates further and the possibility of a Hormuz Strait blockade by Iran have kept the price afloat. The Strait of Hormuz plays a crucial role in LNG transportation. Qatar alone accounts for around 20% of global LNG trade passing through this choke point.

Singapore’s LNG bunker prices has seen a significant rise of $35-37/mt in the past week. This is because the NYMEX Japan/Korea contract rolled from May to a higher-priced June contract last week, which has raised the JKM benchmark.

By Konica Bhatt and Erik Hoffmann

 

Photo credit and source: ENGINE
Published: 23 April 2024

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LNG Bunkering

Molgas marks entry into Italy with first LNG bunkering operation in Sicily

Operation, conducted in collaboration with Caronte & Tourist, took place on 11 April at the Port of Trapani; vessel NEREA received LNG via truck-to-ship, facilitated by Molgas.

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Molgas marks entry into Italy with first LNG bunkering operation in Sicily

Molgas Group on Thursday (18 April) said it has initiated operations in Italy with a milestone — the first-ever LNG bunkering in Sicily. 

The operation, conducted in collaboration with Caronte & Tourist, took place on 11 April at the Port of Trapani. The vessel NEREA received LNG via truck-to-ship, facilitated by Molgas.

Johannes Richter, Group Leader Marine at Molgas Group, said: “We are excited to commence operations in Italy and to have played a role in this historic event. This milestone reaffirms our commitment to driving sustainable solutions and extends our LNG Bunkering supply infrastructure across Europe.”

Vincenzo Franza, CEO of Caronte & Tourist Isole Minori S.p.A, said: “We're proud of the successful LNG bunkering of the ship Nerea. This accomplishment is of immense importance to our shipping company, as we are deeply dedicated to environmental conservation and investing in dual-fuel ships powered by LNG.”

“We extend our sincere gratitude to the specialists at Molgas for their professionalism and collaboration. We hope that this initiative can be a model for promoting sustainable mobility in Sicily and Italy.”

 

Photo credit: Molgas Group
Published: 22 April 2024

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LNG Bunkering

Seaspan launches second LNG bunkering vessel to serve US West Coast

“Seaspan Lions” will provide LNG fuelling services for vessels on the West Coast of North America, becoming the first company to provide LNG bunkering in the Pacific Northwest.

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Seaspan launches second LNG bunkering vessel to serve US West Coast

Seaspan Energy recently launched the second of its three 7600m3 LNG bunkering vessels, the Seaspan Lions, named after the twin peaks of the North Shore.

The series of vessels is named after iconic West Coast mountains and the first two vessels, the Seaspan Garibaldi and the Seaspan Lions, will be delivered in 2024 with the third vessel arriving in 2025.

The Seaspan Lions will provide Liquified Natural Gas (LNG) fuelling services for vessels on the West Coast of North America, becoming the first company to provide LNG bunkering in the Pacific Northwest. 

The Seaspan Garibaldi is set to deliver low-carbon solutions to the global market and will be based in the Panama region.

Seaspan launches second LNG bunkering vessel to serve US West Coast

“Solving the LNG infrastructure gap on the West Coast will play a vital role in creating new markets for lower-emission fuels and a more sustainable maritime industry,” said Ian McIver, President of Seaspan Energy. 

“We understand the importance of providing low- carbon bunkering solutions for ship owners who want to decarbonise their operations and we are committed to supporting the transition to cleaner, lower-emission marine fuels in British Columbia, Canada and the world.”

This series of vessels are each 112.8 metres in length, 18.6 metres in width, 5 metres in draft, with a design speed of 13 knots. 

The LNG bunkering vessels are being built by CIMC Sinopacific Offshore & Engineering (CIMC SOE). For the design of the LNG bunker vessels, Seaspan worked closely with the Canadian-based team at VARD Marine Inc. to incorporate emerging technologies resulting in a decrease in emissions and underwater noise. 

The design is focused on safe, efficient, and economical refuelling of multiple ship types with an ability to transfer to and from a wide range of terminals. 

The design will allow the vessel to engage in ship-to-ship LNG transfer and coastal and short-sea shipping operations.

 

Photo credit: Seaspan
Published: 22 April 2024

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