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PGT: Fuel price spread great news for ships with scrubbers

‘Vindication, then, for those owners who moved early in favour of marine gas scrubbers,’ says manufacturer.
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Scrubber technology firm Pacific Green Technologies (PGT) on Tuesday (4 November) published the following article informing the shipping industry on the cost benefits of using scrubbers:

In late-2018, S&P Global Platts suggested that the industry could expect an HFO-LFO price spread of $400 a ton in 2019.

An overly bold prediction? Perhaps, but Alphaliner’s analysis of pricing in August showed that the spread was already over halfway there. And at the time of writing (October 2019) the spread for November 2019 is $250, and it’s $200 and already rising for the first months of 2020.

It’s no surprise that demand for LFO is increasing ahead of the looming 0.5% sulphur (sulfur) fuel cap, and supply chain woes are being exacerbated by an increase in operator stockpiling and a global lag in refineries switching production.

Predictions universally suggest that LFO price will continue to rise in the short-term and, put simply by Kurt Barrow, IHS Markit Consultancy Vice President, “the industry is not ready” for IMO 2020.

According to the U.S. Energy Information Agency (EIA) in its March report, the effects of LFO price increase will be felt most acutely in 2020 and will then moderate in 2021.

Vindication for those shipowners who moved early on marine gas scrubbers

As part of Alphaliner’s analysis, a saving of $2m was calculated per Asia-North Europe round trip voyage for a container vessel running on HFO. With an industry average marine exhaust gas scrubber installation costing $5m-10m per vessel, it’s clear that the risk of investing in the technology now is very low, even if the wide spread only lasts until the end of 2021.

Predictions are not certainties, of course, but as highlighted by the EIA, “as January 2020 approaches, the [LFO], MDO, and [HFO] price spread will be more certain, providing clearer signals to market participants on how to react, invest, and plan.”

With regulatory implementation only three months away, what is certain is that shipowners who decide to retrofit scrubbers will not be exposed to any potential (perhaps inevitable) LFO price increases or lack of supply.

Vindication, then, for those owners who moved early in favour of marine gas scrubbers.

And, if cost-saving and guaranteed fuel supply were not reason enough for shipowners to choose scrubbers over switching to LFO, there are a range of environmental, operational and financial reasons to consider.

Put simply, scrubbers are good for the environment.

They are an effective and proven method of reducing sulphur oxide and other harmful emissions, although they have been incorrectly criticised by some environmentalists in relation to the discharge of supposedly harmful wash water.

In January, the Clean Shipping Alliance 2020 released a report following a 3-year study into the quality and composition of wash water. Through “rigorous comparison to other world water quality standards,” the study showed that the wastewater met IMO standards and the results reaffirmed that “exhaust gas cleaning systems are effective and safe for the ocean environment.”

Most recently, the Japanese Ministry of Land, Infrastructure, Transport and Tourism released a report on wash water, concluding that no environmentally unacceptable impacts would occur from scrubber operation.

Furthermore, Japan is leading the way by deciding to support the use of open-loop scrubbers aboard ships and discouraging other countries from banning wash water discharge.

According to the International Energy Agency, “some shipping companies may be reluctant to adopt a new fuel immediately, and would prefer to use marine gas oil (MGO) until they have confidence that LFO will be easily available in ports and stable and compatible with similar grades.”

MGO is still a high cost option and switching between fuel types creates additional complexity for operators, including the configuration of fuel handling systems and machinery, and the need to switch engine lubricating oils.

Retrofitting a scrubber, on the other hand, facilitates business-as-usual operations

Industry commentators suggest that many operators simply plan to roll the dice of non-compliance – an ill-advised and potentially costly approach to avoid acting before January.

Switching to LFO or MGO means higher operating costs, which puts further financial burden on operators, will require many to stretch lines of credit, and will likely force operators to adopt slow-steaming in order reduce fuel consumption.

Retrofitting a scrubber, on the other hand, facilitates business-as-usual operations. HFO is low cost and in plentiful supply across the globe – a situation that no fuel analyst would suggest is going to change anytime soon.

And investing in the safe removal of pollutants from a ship’s exhaust emissions is an environmentally and socially responsible act, as supported by the IMO – the very organization that exists to protect the world’s marine environment.

Source: Pacific Green Technologies
Published: 5 November, 2019
 

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Winding up

Singapore: High Court to hear Norvic Shipping Asia winding up application on 31 July

Application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to Government Gazette notice.
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July 22, 2026

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An application for the winding up of Norvic Shipping Asia Pte Ltd was filed by Netherlands-registered Mur Shipping BV on 8 April, according to a Tuesday (21 July) notice on the Government Gazette.

It noted the winding up application is directed to be heard before the Judge sitting in the General Division of the High Court at 10am on 31 July.

Any creditor or contributory of the company desiring to support or oppose the making of an order on the winding up application may appear at the time of hearing by himself or his counsel for that purpose.

A copy of the winding up application will be furnished to any creditor or contributory of the company requiring the copy of the winding up application by the solicitors of the applicant’s, Oon & Bazul LLC, on payment of the regulated charge for the same.

The Applicant’s address is Hiridostraat 5, Gebouw Prismatrium, 1101CW Amsterdam, The Netherlands.

The Applicant’s solicitors are Oon & Bazul LLC of 103 Penang Rd, #04-04/05/06 Singapore 238467. 

Queries on the winding up application may be directed to the following email addresses: [email protected] and [email protected].

 

Photo credit: Manifold Times
Published: 22 July, 2026

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Methanol

World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Operation involved the delivery of approximately 2,800 MT of green methanol to “Arctic Tern” via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel “M/V Hai Gang Zhi Yuan”.
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World Fuel and partners complete first green methanol bunkering of car carrier in Shanghai

Marine fuel provider World Fuel on Tuesday (21 July) said it successfully completed the first green methanol bunkering of M/V Arctic Tern, with EUKOR Car Carriers and SIPG Energy at the Port of Shanghai. 

Arctic Tern is the first vessel in the new Shaper Class series of car carriers. 

The operation involved the delivery of approximately 2,800 MT of green methanol to Arctic Tern via a ship-to-ship transfer using SIPG Energy’s dedicated methanol bunkering vessel M/V Hai Gang Zhi Yuan, the largest vessel of its kind in operation. 

The bunkering operation was carried out at Haitong Terminal, Waigaoqiao Port Area, Shanghai Port, with cargo handling operations conducted simultaneously during bunkering.

This marks EUKOR Car Carriers’ first green methanol operation and the first time Arctic Tern has bunkered methanol since its delivery on 9 July. The operation marked the first bunkering at Shanghai Port of green methanol produced locally in Shanghai for an international PCTC operator. 

It also demonstrated the city’s integrated green methanol value chain, spanning local production, storage and bunkering, and established a replicable “Shanghai Model” for green methanol supply.

World Fuel arranged the supply and delivery of the fuel on behalf of EUKOR Car Carriers, working with SIPG Energy as the physical supplier at the Port of Shanghai.

The green methanol supplied was produced from municipal solid waste, ISCC-EU certified, and had a carbon intensity value below 25 gCO₂e/MJ.

Arctic Tern is the first of fourteen Shaper Class vessels ordered by Wallenius Wilhelmsen. With a capacity of 9,300 car equivalent units and methanol dual-fuel capability, the vessel will be operated by EUKOR Car Carriers, jointly owned by Wallenius Wilhelmsen and Hyundai Motor Group. Following her first green methanol bunkering, Arctic Tern will continue her maiden voyage from Asia to Europe.

Xavier Leroi, COO Shipping Services at Wallenius Wilhelmsen and CEO of EUKOR Car Carriers, said: “Completing Arctic Tern’s first green methanol bunkering shortly after delivery is a significant milestone towards our decarbonisation ambition for both EUKOR Car Carriers and Wallenius Wilhelmsen. It demonstrates how investments in next-generation vessel technology and fuel flexibility are being translated into real-world operations. 

“This achievement reflects the strong collaboration between all parties involved. Together, we have shown how partnerships across the maritime value chain can help make lower-emission fuels available and operationally viable at scale.”

Mark Tamsitt, SVP Global Marine Sales at World Fuel, said, “The first bunkering event with a new fuel is a significant moment for any shipowner, and our role is to make it as seamless as possible. By connecting EUKOR Car Carriers with SIPG Energy’s proven green methanol capability at the Port of Shanghai, we were able to deliver on reliable supply, fuel quality, and safe processes. As more of our customers bring methanol dual-fuel tonnage into service, we are committed to being the partner that makes these kinds of operations routine.”

Mr. Zhang Da, General Manager of SIPG Energy, said, “Welcoming Arctic Tern to the Port of Shanghai for her first green methanol bunkering demonstrates the strength and maturity of our supply capability. Building on our well-established methanol ship-to-ship bunkering services for container vessels, we have already extended such services to pure car and truck carriers (PCTCs). This bunkering sets a new record for the largest single SIMOPs green methanol bunkering for PCTCs in China, marking another step in building Shanghai’s position as a global green energy hub for international shipping.”

This operation follows Wallenius Wilhelmsen’s announcement on 9 July that Arctic Tern would complete her first methanol bunkering shortly after delivery. The vessel entered service on routes between Asia and Europe immediately following handover from China Merchants Jinling Shipyard in Nanjing.

 

Photo credit: World Fuel
Published: 22 July, 2026

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Ammonia

HPA and MB Energy develop safety concept for STS ammonia bunkering

HPA says the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.
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July 22, 2026

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HPA and MB Energy develop safety concept for STS ammonia bunkering

The Hamburg Port Authority (HPA) and integrated energy company MB Energy on Tuesday (21 July) said they have completed a comprehensive risk analysis and developed a dedicated safety concept for ship-to-ship ammonia bunkering.

MB Energy said the analysis lays the groundwork for the safe introduction of ammonia as a future marine fuel.

“With our planned ammonia import terminal in Hamburg-Blumensand, MB Energy intends to provide the reliable land side supply infrastructure needed to support this transition across northern German ports,” it said in a social media post. 

Mabanaft Group was renamed to MB Energy last year and merged over 50 existing brands under one identity. 

Separately, HPA said the Port of Hamburg will become “bunker ready” for ammonia, laying the groundwork for safe and reliable ammonia bunkering in the future.

“The focus is in particular on container ships, cruise ships as well as RoRo and ConRo (Container/RoRo) ships,” it said. 

“We expect ammonia to establish itself as an alternative marine marine fuel in the coming years. With our preparatory work, we are already creating the conditions to welcome the first ammonia-powered ships in Hamburg and to bunker them safely.:

HPA added that the import terminal for ammonia planned by MB Energy from 2029 will make a decisive contribution to ensuring the reliable availability of ammonia as a bunker fuel in northern German ports in the long term. 

“The use of an ammonia bunker barge is considered a possible addition to the landside infrastructure to enable ship bunkering in the port and beyond in the future,” it said.

Related: Mabanaft Group renames as MB Energy, merging over 50 brands under one identity

 

Photo credit: Hamburg Port Authority
Published: 22 July, 2026

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