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LNG Bunkering

New LR report reveals ‘significant resurgence’ in orders for LNG-capable vessels

Latest report highlights that LNG remains the dominant alternative marine fuel readily available to the shipping industry but cautions that LNG’s long-term sustainability depends on tackling methane slip.
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Lloyd’s Register’s (LR) latest Fuel for Thought report, published on Tuesday (1 April), revealed that liquefied natural gas (LNG) remains the dominant alternative marine fuel readily available to the shipping industry.  

The report highlighted LNG’s growing adoption, its cost-effectiveness under tightening emissions regulations, and the urgent need to address methane slip to ensure its future as a viable low-carbon fuel. 

Fuel for Thought: LNG revealed a significant resurgence in orders for LNG-capable vessels, with an expanding global fleet and rapidly growing bunkering infrastructure. 

LR’s latest analysis confirmed LNG’s strong market position, with 1,381 dual-fuel vessels in service as of December 2024 and a further 849 on order—representing a 61% fleet expansion. Currently, 14% of all vessels on order will have LNG dual-fuel engines installed. 

The data confirmed LNG’s continued appeal, particularly in segments such as container shipping and car carriers, where its adoption is expanding rapidly: Clarkson Research predicts that the LNG-fuelled fleet (excluding gas carriers) will grow to represent around 24% of the merchant fleet by 2050. 

Economic analysis within the report indicated that with IMO mid-term measures within the projected boundaries, LNG remains the most cost-effective fuel choice for foreseeable transition pathways up to 2049.  LR’s modelling suggests that LNG-fuelled vessels could generate substantial compliance savings compared to ships running on very low sulphur fuel oil (VLSFO), with additional benefits from regulatory mechanisms such as pooling. 

However, the report cautioned that LNG’s long-term sustainability depends on tackling methane slip — unburned methane emissions that reduce its overall GHG advantage.  

While LNG can provide immediate emissions reductions, its ability to meet stricter targets in the 2040s will depend on advances in cleaner LNG production, particularly through biomethane and synthetic e-LNG, as well as the development of onboard carbon capture technologies. 

Panos Mitrou, LR’s Global Gas Segment Director, said: “As regulations emerge that place a real financial impact on greenhouse gas emissions, ship operators are realising that LNG is one of few low carbon fuels to be available immediately, widely, with established safety protocols and at relatively predictable cost.  

“There are several opportunities to improve the long-term sustainability of LNG. These are already being addressed and the measures that are being worked on – from cleaner production and supply processes to bio-LNG and OCCS, through the uptake of onboard methane abatement technologies, as well as regulatory acceptance of these improvements – are likely to increase uptake of LNG even further.” 

Peter Keller, Chairman of SEA-LNG, who provided the foreword for the report, said: “SEA-LNG is proud to support this comprehensive report, Fuel for Thought: LNG, which delves into the multifaceted benefits and challenges of LNG as a marine fuel. This report provides valuable insights into the technological advancements, regulatory frameworks, and market trends that shape the future of LNG in the shipping industry.” 

The report also highlights specific examples of innovation, such as the use of high-manganese steel for LNG tanks, which has significantly reduced costs while maintaining cryogenic handling properties. This technology has been successfully implemented in vessels like the Advantage Tankers LLC’s VLCCs, demonstrating the increasing uptake of LNG across diverse vessel segments. 

Note: The full LR report can be found here.

Photo credit: Venti Views on Unsplash
Published: 2 April, 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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July 21, 2026

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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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July 21, 2026

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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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July 21, 2026

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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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