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LNG Bunkering

LATEST: South Korea to ‘revitalise’ LNG-fuelled shipbuilding sector

Intends to establish a cooperative system to share LNG policy know-how with Singapore.

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The South Korean government held a "7th Ministerial Meeting on Economic Relations" at the Seoul Metropolitan Government Building at 7:00 am on Thursday (17 May) to introduce plans to revitalise the liquefied natural gas (LNG) related shipbuilding industry, says the Ministry of Oceans and Fisheries.

It noted the International Maritime Organization (IMO) planning to introduce a sulphur cap of 0.5% for marine fuels from 2020 and expects the number of vessels using LNG as a bunker fuel to “increase significantly”.

Delegates were briefed that LNG-powered vessels are priced at about 20% higher than those of existing vessels, and domestic LNG fuel supply of bunkering systems in South Korea are also lacking.

However, countries such as Europe, China, and Singapore are paying attention to LNG-powered vessels as future growth engines and are making “quick progress” on the LNG bunkering front.

Accordingly, the government intends to introduce plans to revitalise the LNG-related shipbuilding industry for the construction of LNG fuelled vessels.

“In the private sector, we will also promote the first domestic LNG-powered offshore vessel to be ordered by August this year,” it states.

“Currently under review, two 200,000-ton bulk carriers are scheduled to operate on Korean and Australian routes.

“In addition, we will support business feasibility studies and international cooperation in order to facilitate the pilot project of introducing LNG-powered vessels under consideration by major ship owners such as POSCO and Southeast Power. 

“A pilot project to convert LNG carriers will also be launched next year for towing ships with large dust emissions.”

Meanwhile, the government intends to revise relevant laws and regulations such as the Urban Gas Business Act and the Port Transport Business Act, while introducing LNG bunkering operation technology and worker safety training schemes, to create a base for building the domestic LNG bunkering market.

A mid- and long-term roadmap will also be drawn up to build a LNG bunkering infrastructure (considering LNG fuel demand and harbour conditions) and LNG bunkering facilities at major ports such as Busan Port and Ulsan Port. 

“We will also build a foundation for LNG bunkering technology. To this end, we will develop 'LNG bunkering system customized for coastal vessels' that is suitable for domestic small-sized coastal bunker bunkering,” notes the government.

“In addition, it will support localisation development of LNG bunker equipment such as pumps, cryogenic hoses, etc., and establish LNG bunker equipment test evaluation and certification system to support commercialisation after technology development.”

Moving forward, the government says it will “actively participate” in discussions on the revision of the IGF Code related to the LNG-powered vessels, which is currently under discussion at IMO, to reflect the position of the South Korean domestic industry. 

An example is, POSCO’s plans to support its high-manganese steel product, a new material for LNG fuel tanks, to be listed on the International Safety Standards (IGF Code). 
   
The government also intends to establish a cooperative system to share policy know-how with Singapore, which it believes “is leading the international LNG network”, and participate in discussions to develop international joint LNG bunkering standards and procedures and emergency manual reports.

“This project is a key project for the growth of shipping and shipbuilding and we look forward to a new breakthrough in the maritime industry in which the LNG-related shipbuilding industry is stagnating,” said Minister Kim Young-chun of the Ministry of Maritime Affairs and Fisheries.

“We will closely examine the situation with the related ministries such as the Ministry of Industry and the Ministry of Land, Infrastructure and Transport so that related new industries such as LNG bunkering can be settled early.”

The Korea Shipbuilders' Association Wednesday introduced the Korea GHG Reduction Response Research Council as a response to the IMO greenhouse gas (GHG) reduction deadline of 2050.

Related: South Korea responds to IMO’s 2050 GHG deadline

Photo credit: Ministry of Oceans and Fisheries
Published: 17 May, 2018

 

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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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Alternative Fuels

ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

B100 discount to LSMGO widens to $541/mt in Rotterdam; Singapore’s B100 drops to $106/mt below LSMGO; Rotterdam LBM at $639-833/mt discounts to LSMGO.

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ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

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:

20 July 2026

  • B100 discount to LSMGO widens to $541/mt in Rotterdam
  • Singapore’s B100 drops to $106/mt below LSMGO
  • Rotterdam LBM at $639-833/mt discounts to LSMGO

B100’s premium over HSFO in Rotterdam has narrowed by $50/mt over the past week to $64/mt, while its discount to VLSFO has widened by $83/mt to $105/mt.

B100 has become far more competitive against LSMGO in Rotterdam, with its discount widening by $180/mt over the past week to $541/mt, as a surge in conventional fuel prices left B100 broadly unchanged by comparison.

B100’s price has risen by $109/mt in Singapore, but its discount to LSMGO has still widened by $102/mt to $106/mt, as LSMGO surged by an even greater $211/mt.

Rotterdam’s LNG premium over VLSFO has widened by $35/mt to $201/mt for vessels with Otto medium speed (Otto MS) engines. For vessels with diesel slow speed (diesel SS) engines, LNG has flipped to a $15/mt premium over VLSFO, from a $22/mt discount the prior week.

Liquefied biomethane (LBM) discounts to VLSFO in Rotterdam have narrowed by $50-52/mt to $203-396/mt over the past week. Against LSMGO, LBM discounts have widened by $45-47/mt to $639-833/mt, depending on engine type.

In Singapore, LNG is now $42/mt cheaper than LSMGO for vessels with Otto MS engines, and $134/mt cheaper for vessels with diesel SS engines.

ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

Liquid fuels

HSFO and VLSFO prices in Rotterdam have jumped by $66/mt and $99/mt respectively over the past week, while LSMGO has surged by an even steeper $196/mt. A $9.69/bbl ($71/mt) rise in front-month ICE Brent futures, to $87.94/bbl ($645/mt), drove bunker prices sharply higher across the board.

Bunker fuel availability is tight for prompt delivery dates in the ARA ports, with buyers advised to enquire about stems between 5-7 days ahead to get good coverage, a trader said.

Rotterdam’s B100 price has risen by $16/mt over the past week. Dutch ZRE A ticket prices were unchanged at €107.50/mtCO2e.

Singapore’s HSFO and VLSFO prices have risen by $130/mt and $132/mt respectively, while its LSMGO price has gained an even steeper $211/mt over the past week.

VLSFO availability in Singapore has been tight, with several suppliers reporting low stock levels. Recommended lead times have widened from 13–17 days last week to 14–19 days now.

Liquid gases

Rotterdam’s LNG prices have surged by $134-136/mt over the past week, while its LBM prices have climbed by $149-151/mt.

LBM discounts to LNG in Rotterdam have narrowed by $15/mt to $404-411/mt.

Singapore’s LNG bunker benchmarks have surged by $196-197/mt over the past week.

By Erik Hoffmann

 

Photo credit and source: ENGINE
Published: 21 July, 2026

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