Zhejiang Pilot Free Trade Zone Zhoushan Area on Wednesday (8 January) said Ningbo-Zhoushan Port successfully completed its first LNG bunkering operation for the year. 

Bunkering vessel Hai Yang Shi You 302 supplied more than 10,000 cubic metres (m3) of LNG bunker fuel to containership MSC Adya at the port on 5 January.

Zhejiang Seaport International Trading, the bunker supplier for the operation, successfully obtained the Zhoushan Anchorage LNG bunkering licence in June 2024, extending refuelling services from dock to sea. 

The company’s services cover Meishan, Chuanshan, Daxie and other port areas. 

As China's first river-sea LNG transport and bunkering ship,  Hai Yang Shi You is currently placed permanently at Ningbo Zhoushan Port, providing a variety of bunkering methods such as ship-to-ship and ship-to-shore.

Zhejiang Seaport International Trading will continue to expand the scope of bonded LNG bunkering operations and new alternative fuels such as green methanol, ammonia and biofuels in the Zhoushan Area. 

Related: China’s first river-sea LNG bunkering ship completes inaugural bunkering operation

Photo credit: Zhejiang Pilot Free Trade Zone Zhoushan Area
Published: 10 January, 2025

Marine fuel supplier Monjasa on Wednesday (8 January) announced the United Arab Emirates’ (UAE) and the Middle East region’s first LNG bunkering operation, which took place on 4 January at Dubai Harbour Cruise Terminal B together with Costa Cruises, part of Carnival Corporation.

On this occasion, the Monjasa-operated LNG bunker vessel Green Zeebrugge went alongside the cruise ship Costa Smeralda and successfully delivered around 3,000 cubic meters of LNG.

On 18 December 2024, Monjasa announced the charter of the 5,000 m3 vessel Green Zeebrugge for operations in the UAE.

About a week later, on 26 December, Green Zeebrugge arrived in Dubai waters following the departure from Amsterdam in November. 

The vessel was inspected by the authorities in Port Rashid on 27 December 2024, and the official bunkering permits were issued to Monjasa by the Dubai Maritime Authority and Dubai Ports Authority.

Monjasa Group CEO, Anders Østergaard, said: “We are excited about this first successful supply operation and to pioneer LNG as a new marine fuel option in the UAE.”

“However, reaching this milestone was only possible through the close collaboration of our forward-thinking partners at Carnival and Costa Cruises, ADNOC L&S and the UAE’s federal and local authorities, who are constantly embracing maritime innovation.”

“Together, we are all striving to position the UAE as a leading shipping hub in alternative fuels too.”

Related: Monjasa charters LNG bunker vessel in preparation for UAE operations

Photo credit: Monjasa
Published: 9 January, 2025

Dr. Prabath Weerasinghe, a Senior Lecturer of the Department of Electrical and Information Engineering Faculty of Engineering at University of Ruhuna, shared that analysts predict the country can generate about USD 5 billion annually from bunker fuel operations by 2030 with a focused investment and improvements to Jaya Container Oil Bank Terminal (JCT Oil Bank):

Sri Lanka, strategically positioned on one of the busiest maritime routes in the world, holds immense potential to become a leading regional bunkering hub. Experts suggest that with targeted infrastructure upgrades and strategic policy initiatives, the country can generate nearly USD 5 billion annually from bunker fuel operations by 2030. The key lies in revitalising the Jaya Container Oil Bank Terminal (JCT Oil Bank) to match regional standards and meet the growing global demand for efficient bunkering services.

The Jaya Container Oil Bank Terminal, once seen as a critical asset for Sri Lanka’s maritime economy, has faced years of neglect, underutilisation, and inadequate capacity expansion. Despite its strategic location adjacent to the busy Port of Colombo, the terminal operates well below its potential. Competitors like Singapore, Fujairah, and Indian ports have surged ahead, offering large-scale fuel storage facilities, efficient refuelling systems, and world-class operational infrastructure.

The lack of consistent investment, outdated technology, and limited storage capacity at JCT Oil Bank has deterred major shipping lines and bunker operators from considering Sri Lanka as their preferred choice for refuelling.

The USD 5 Billion Vision

With global shipping volumes projected to grow steadily, the demand for bunker fuel is expected to rise exponentially. Analysts predict that with focused investment in the JCT Oil Bank Terminal, Sri Lanka could capture a significant share of the Indian Ocean bunkering market, generating approximately USD 5 billion annually by 2030.

Key improvements required to achieve this goal include:

• Increased Storage Capacity: Expanding storage facilities to accommodate both conventional and sustainable fuels like LNG and biofuels.
• Enhanced Distribution Networks: Modernising fuel delivery systems to reduce refuelling times and increase efficiency.
• Policy and Regulatory Clarity: A transparent and investor-friendly policy framework to attract global players.
• Technological Upgrades: Adoption of digital systems to streamline inventory management and improve transaction transparency.

Regional Competition: The Need for Urgency

Regional competitors like Singapore have set benchmarks in bunker fuel supply, handling nearly 50 million metric tons of bunker fuel annually. Ports in India, UAE, and Malaysia are also scaling up their bunkering capacities with substantial government backing. If Sri Lanka delays infrastructure upgrades, it risks losing market share to these emerging competitors.

Government and Private Sector Collaboration

Achieving this ambitious target requires strong collaboration between the government and private sector stakeholders. Private investment in storage infrastructure, technology integration, and distribution systems will play a crucial role. Simultaneously, the Sri Lanka Ports Authority (SLPA) must ensure that red tape is minimised, and strategic policies are implemented effectively.

The International Maritime Organisation (IMO) has set strict emission targets for the shipping industry. As a result, the demand for clean fuels like LNG, biofuels, and green ammonia is expected to rise significantly. If Sri Lanka can position the JCT Oil Bank Terminal as a hub for sustainable fuel distribution, it will secure a long-term competitive advantage in the global bunkering market.

The Roadmap to 2030

• Short-term (2024-2026): Immediate expansion of storage capacity and improvement of refuelling facilities.
• Medium-term (2026-2028): Adoption of advanced technologies and digital systems for seamless operations.
• Long-term (2028-2030): Integration of sustainable fuel infrastructure and establishment of global partnerships.

Sri Lanka stands at a critical juncture. The Jaya Container Oil Bank Terminal is not just a piece of infrastructure—it represents a multi-billion-dollar economic opportunity. With the right mix of policy direction, strategic investment, and sustainable practices, Sri Lanka can re-establish itself as a leading bunkering hub in the Indian Ocean.

If the government prioritises the revival and expansion of the terminal, the country could unlock an annual revenue stream of USD 5 billion by 2030, boosting foreign exchange reserves, creating employment opportunities, and driving long-term economic stability. The time to act is now—delays will only allow regional competitors to widen the gap further.

Photo credit: Chathura Anuradha Subasinghe on Unsplash
Published: 9 January, 2025