LNG Bunkering

NGO calls for South Korea to discontinue LNG bunkering rebate policy by 2030

Rebate system for LNG bunkering may impose a greater financial burden on South Korean government and potentially impede its commitment to achieving net-zero emissions in international shipping by 2050, says Solutions for Our Climate.

Published

1 year ago

June 6, 2024

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Korean non-government organisation Solutions for Our Climate (SFOC) on Tuesday (4 June) published a report to shed light on the challenges facing the LNG bunkering rebate policy and to reassess the justification for its continuation.

SFOC said the rebate system for LNG bunkering may impose a greater financial burden on the South Korean government and potentially impede its commitment to achieving net-zero emissions in international shipping by 2050.

According to the report titled Reconsidering Korea’s LNG Bunkering 100% Rebate Policy, LNG bunkering rebates are financed through the Special Energy Account, which has incurred a deficit of roughly KRW 3 trillion in 2023.

If the current rebate system remains unchanged, the rebates are projected to increase from KRW 1.4 million in 2024 to KRW 16.9 billion in 2025 and to KRW 33.9 billion in 2030 (USD 140,000, USD 16.9 million, and USD 33 million, respectively (USD 1 : KRW 1,000).

“In light of both the deficit-ridden Special Energy Account and South Korea’s lack of competitiveness in the global LNG bunkering market projected, the rationale for continuously providing rebates on increasing amounts of LNG levies diminishes,” the report said.

“Therefore, the viability of this rebate system beyond 2030 must be reassessed.”

To boost its LNG bunkering industry, the South Korean government has been reimbursing all import levies imposed on LNG fueling by LNG-powered vessels since 2021 if the bunkering occurs within its territorial waters.

The report said South Korea’s small market share in LNG bunkering, compared to major global ports in other countries, underscores the realistic limitations on the country’s aspirations to lead the international LNG bunkering industry.

“The divergence between South Korea’s LNG bunkering rebate policy and the international community’s stance on LNG, as well as the Korean Green Taxonomy (K-Taxonomy) — a green economic activity classification system endorsed by the country’s Ministry of Environment — is a significant issue that requires attention,” it said.

“Lastly, the rebate system for LNG bunkering may impose a greater financial burden on the South Korean government and potentially impede its commitment to achieving net-zero emissions in international shipping by 2050.

Note: The full report titled ‘Reconsidering Korea’s LNG Bunkering 100% Rebate Policy’ can be viewed here.

Photo credit: Lauren Seo on Unsplash
Published: 6 June 2024

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Alternative Fuels

Fratelli Cosulich and IINO Lines to collaborate on alternative bunker fuels

Fratelli Cosulich Marine Energy and IINO Lines signed a MoU, setting a foundation for further collaboration in the areas of methanol, LNG, and ammonia bunkering.

Published

3 days ago

June 20, 2025

Admin

Fratelli Cosulich Marine Energy and IINO Lines on Thursday (19 June) announced a strategic cooperation that reinforces their shared commitment to the decarbonisation of the maritime industry.

The two companies have signed a Memorandum of Understanding (MoU) to explore new business opportunities in the alternative marine fuels sector.

“This agreement marks a significant step in the long-standing relationship between the two companies and sets the foundation for further collaboration in the areas of methanol, LNG, and ammonia bunkering,” Fratelli Cosulich said.

Through the MoU, the parties will engage in joint initiatives, exchange market insights, and facilitate connections with potential suppliers and stakeholders in the alternative fuels space.

“We are proud to announce the partnership with Fratelli Cosulich for initiatives in alternative marine fuels. Both companies have extensive history in the shipping industry,” said Yusuke Otani, President of IINO Lines.

“The joint development will enable a holistic approach for building a supply chain of alternative marine fuels.”

“As we navigate the energy transition, partnerships like the one we announce today with IINO Lines are essential in shaping the future of sustainable shipping,” said Timothy Cosulich, CEO of Fratelli Cosulich Group.

“By combining our expertise and resources, we aim to drive the adoption of cleaner marine fuels and contribute to the decarbonization of global shipping.”

Photo credit: Scott Graham
Published: 20 June, 2025

LNG Bunkering

Port of Nanaimo achieves milestone with first LNG bunkering operation

Seaspan’s bunker vessel “Seaspan Garibaldi” successfully completed a ship-to-ship LNG bunkering operation at anchor to car carrier “Lake Saint Anne”, chartered by EUKOR and managed by EPS.

Published

3 days ago

June 19, 2025

Admin

Port of Nanaimo achieves milestone with first LNG bunkering operation

Port of Nanaimo on Wednesday (18 June) said the first LNG bunkering operation in the port was completed with shipowner Seaspan, marking a new milestone for the Canadian port.

Bunker vessel Seaspan Garibaldi successfully completed a ship-to-ship LNG bunkering operation at anchor to Lake Saint Anne, an LNG-powered car carrier chartered by EUKOR and managed by Eastern Pacific Shipping Limited (EPS).

“With multiple successful LNG bunkering operations already completed in 2025 for car carriers, tankers, container ships, and cruise ships, Seaspan Energy is setting the standard for reliable LNG ship-to-ship bunkering on the West Coast of North America,” the port said in a social media post.

“The Port of Nanaimo is supportive of the Vancouver Fraser Port Authority and Seaspan’s groundbreaking efforts to introduce cleaner fuels into the marine industry. Seaspan Energy is the first company in Canada to provide ship-to-ship LNG bunkering solutions and have three vessels working on the West Coast of North America.”

Photo credit: Port of Nanaimo
Published: 19 June, 2025

Bunker Fuel

Singapore: Bunker sales volume raises to year record high of 4.88 million mt in May

Bio-blended variants of marine fuel oil jumped 671.7% to 40,900 mt when compared to figures seen in May 2024.

Published

7 days ago

June 16, 2025

Admin

Bunker fuel sales at Singapore port inched forward by 1.1% on year in May 2025, the highest volume seen in 2025, according to Maritime and Port Authority of Singapore (MPA) data.

In total, 4.88 million metric tonnes (mt) (exact 4,878,100 mt) of various marine fuel grades were delivered at the world’s largest bunkering port in April, up from 4.83 million mt (4,826,800 mt) recorded during the similar month in 2024.

Deliveries of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in May (against on year) recorded respectively 1.89 million mt (+8.6% from 1.74 million mt), 2.45 million mt (-7.2% from 2.64 million mt), 1,200 mt (from zero), 1,700 mt (-88% from 14,300 mt) and zero (from zero).

SG bunker port performance May 2025

Bio-blended variants of marine fuel oil, low sulphur fuel oil, ultra low sulphur fuel oil, marine gas oil and marine diesel oil in May (against on year) recorded respectively 40,900 mt (+671.7% from 5,300 mt), 95,800 mt (+97.9% from 48,400 mt), 700 mt (from zero), zero (from zero) and zero (from 300 mt). B100 biofuel bunkers, introduced in February this year, recorded 1,900 mt of deliveries in May.

LNG and methanol sales were respectively 45,000 mt (-7.8% from 48,800) and zero (from 1,600 mt). There were no recorded sales of ammonia for the month and so far in 2025.

A complete series of articles on Singapore bunker volumes reported by Manifold Times tracked since 2018 can be found via the link here.

Photo credit: Maritime and Port Authority of Singapore
Published: 16 June 2025