Lloyd’s Register’s Fuel Oil Bunkering Analysis and Advisory Service (FOBAS) on Thursday (27 February) highlighted rising biofuel uptake, ongoing issues with off-specification fuels and the impact of new regulatory measures in its latest report. 

Mirroring trends from the first half of 2024, the FOBAS Fuel Quality Report H2 2024 identified off-specification sulphur content results as a significant concern.  

Almost 2.5% of tested Very Low Sulphur Fuel Oil (VLSFO) samples, particularly ISO8217 RMG380 grade, recorded sulphur levels between 0.50% mass and 0.53% mass. 

“Although these fuels technically comply with MARPOL Annex VI regulations when accounting for test precision allowances, they continue to create uncertainty for ship operators,” it said. 

A further 0.8% of VLSFO samples exceeded 0.53% mass, placing vessels at risk of non-compliance. 

“The data shows some improvement from 2023, but suppliers are urged to aim for stricter adherence to the 0.50% limit to avoid compliance disputes,” it added.

The report also highlighted that total sediment remained a major issue, with 2024 seeing a rise after previous improvements. Asphaltene instability in fuel blends is a common cause, with Houston and Antwerp identified as high-risk areas in this respect.  

Distillate fuels, while generally of higher quality, also presented issues, particularly in cold flow properties and compliance with the SOLAS flash point requirement of minimum 60oC. The number of marine gas oil (MGO) samples with flash points below 60oC increased in 2024, a trend that poses both statutory compliance and safety risks. This can partly be attributed to unintentional or intentional mixing with automotive diesel in some countries which has a lower flash point limit.  

Looking ahead, the report anticipated that the Mediterranean SOx (Sulphur Oxides) Emission Control Area (SECA), may alter bunkering patterns and fuel quality in specific ports. Ships operating in the Mediterranean will need to use fuels with a sulphur content of 0.10% mass or lower, unless using approved SOx abatement technology. This regulatory shift may drive changes in fuel availability and pricing across key Mediterranean ports, requiring careful planning by ship operators.

The latest analysis from FOBAS also highlighted a significant increase in biofuel usage, primarily driven by EU and IMO regulations, including the Mediterranean SECA coming into effect on 1 May 2025. 

Biofuels continue their rise in the marine fuel mix, driven by regulatory incentives and industry decarbonisation commitments. 

The report noted the increasing use of Fatty Acid Methyl Ester (FAME) residual blends (RF grade), particularly in Singapore, Algeciras, and the ARA region. 

“While many vessels have successfully adopted biofuels without reported issues, concerns remain regarding transparency in composition and the potential risk of unknown quality biofuel stocks entering the supply chain,” it said.

 Usman Muhammad, FOBAS Product Manager, said: “Fuel quality continues to be a key operational concern for the maritime industry. While we see some improvements in certain areas, the recurrence of high sediment levels, sulphur compliance issues, and emerging challenges with biofuels underline the need for rigorous fuel testing, reassessment of onboard fuel management and supply chain transparency.”

“As the regulatory landscapes evolve and alternative fuels gain traction, ship operators must remain proactive in assessing fuel quality to ensure compliance and maintain high operational efficiency.”

Note: The latest FOBAS Fuel Quality Report can be found here. 

Photo credit: Hans Reniers on Unsplash
Published: 28 February, 2025

Global demand for liquefied natural gas (LNG) is forecast to rise by around 60% by 2040, largely driven by economic growth in Asia, emissions reductions in heavy industry and transport as well as the impact of artificial intelligence, according to Shell’s LNG Outlook 2025, released on Tuesday (25 February). 

Industry forecasts now expect LNG demand to reach 630-718 million tonnes a year by 2040, a higher forecast than last year.

Global LNG trade grew by only 2 million tonnes in 2024, the lowest annual increase in 10 years, to reach 407 million tonnes due to constrained new supply development. More than 170 million tonnes of new LNG supply is set to be available by 2030, helping to meet stronger gas demand, especially in Asia, but start-up timings of new LNG projects are uncertain.

“Upgraded forecasts show that the world will need more gas for power generation, heating and cooling, industry and transport to meet development and decarbonisation goals,” Tom Summers, Senior Vice President for Shell LNG Marketing and Trading, said.

“LNG will continue to be a fuel of choice because it’s a reliable, flexible and adaptable way to meet growing global energy demand.”

China is significantly increasing its LNG import capacity and aims to add piped gas connections for 150 million people by 2030 to meet increasing demand. India is also moving ahead with building natural gas infrastructure and adding gas connections to 30 million people over the next five years.

In the marine sector, a growing order book of LNG-powered vessels will see demand from this market rise to more than 16 million tonnes a year by 2030, up 60% from the previous forecast. LNG is becoming a cost-effective fuel for shipping and road transport, bringing down emissions today and offering pathways to incorporate lower-carbon sources such as bio-LNG or synthetic LNG.

Europe will continue to need LNG into the 2030s to balance the growing share of intermittent renewables in its power sector and to ensure energy security. In the longer term, existing natural gas infrastructure could be used to import bio-LNG or synthetic LNG and be repurposed for the import of green hydrogen.

Significant growth in LNG supply will come from Qatar and the USA. The USA is set to extend its lead as the world’s largest LNG exporter, potentially reaching 180 million tonnes a year by 2030 and accounting for a third of global supply.

The early part of 2024 saw spot LNG prices fall to their lowest level since early 2022, but prices recovered by mid-year due to delays in the development of new supply capacity.

Demand for LNG strengthened in Asia during the first half of 2024 as China took advantage of lower prices, importing 79 million tonnes during the year. India bought record volumes to help meet stronger power demand due to hotter weather in early summer. Its imports rose to 27 million tonnes, a 20% increase from 2023.

While LNG continued to play a vital role in European energy security in 2024, imports fell by 23 million tonnes, or 19%, due to strong renewable energy generation and a limited recovery in industrial gas demand.

However, cold winter temperatures and spells of low wind power generation towards the end of the year drove strong gas storage withdrawals which, combined with the expiry of Russian pipeline gas flows to Europe through Ukraine on Dec 31, 2024, drove up prices.

Europe is expected to increase imports of LNG in 2025 to refill its gas storage. 

Note: View Shell’s LNG Outlook 2025 report here.

Photo credit: Shell
Published: 26 February, 2025

The Maritime and Port Authority of Singapore (MPA) on Friday (14 February) issued Port Marine Notice No. 13 of 2025 to notify the maritime community on the testing of Singapore’s first electric cargo vessel Hydromover in an area north of Selat Sinki :

TESTING OF SMART NAVIGATIONAL SYSTEMS ON THE CRAFT “HYDROMOVER” NORTH OF SELAT SINKI

Date : With effect from 15 Feb 2025 to 30 Mar 2025.

Location : North of Selat Sinki, within the test area bounded by the following co-ordinates (see attached chartlet):

Working Hours : During daylight hours, daily including Sundays and Public Holidays.

Details : Testing of smart navigational systems on board the craft, Hydromover will be carried out in an area north of Selat Sinki. A target vessel will be manoeuvring around the Hydromover as part of the testing. A safety boat will be deployed to warn vessels navigating in the vicinity of the test area.

Further enquires relating to the project can be directed to:

Mr. Lew JiaHui, Project Manager,
Tel: +65 9049 3474, email: [email protected] 

Or

Mr. Matthew Tseng, Projects, VP,
Tel: +65 8299 7776, email: [email protected] 

`Caution : When in the vicinity of the test area, mariners are reminded to:

• Keep well clear and not to enter the test area;
• Maintain a proper lookout;
• Proceed at a safe speed and navigate with caution;
• Maintain a listening watch on VHF Channel 68 (West Control and Sinki Control); and Communicate with West Control or Sinki Control for assistance, if required.

Please call Capt. Faroque Hossain Sikder at Tel: 6325 2472 or Marine Safety Control Centre (MSCC) Duty Officer Tel: 6325 2488/89 for clarification on this Port Marine Notice.

Note: The chartlet of the test area can be found here.

Manifold Times previously reported green technology solutions provider Yinson GreenTech (YG) together with Goal Zero Consortium (Goal Zero) led by SeaTech Solutions (SeaTech) officially launching the Hydromover, marking a critical milestone in the decarbonisation of Singapore’s maritime industry.

The vessel is designed with swappable battery solutions and can carry up to 25 tonnes of cargo.

Related: Goal Zero Consortium launches Singapore’s first electric cargo vessel Hydromover
Related: Yinson GreenTech commences construction of all-electric cargo vessel “Hydromover”
Related: Yinson GreenTech all-electric crew transfer vessel to undergo sea trials in Singapore

Photo credit: Yinson GreenTech
Published: 17 February, 2025