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LNG Bunkering

Shell to supply “MSC Euribia” with LNG bunker fuel under new deal

Firm recently completed the first bunkering operation of the line’s second LNG powered newbuild in Rotterdam, under new agreement with MSC Cruises for LNG marine fuel supply.

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MSC Cruises on Thursday (19 October) said it has entered an agreement with Shell Western LNG for the fuel supplier to provide liquefied natural gas (LNG) for its flagship MSC Euribia

Shell Western LNG recently completed the first bunkering operation of the line’s second LNG powered newbuild in Rotterdam, under the agreement.

“This new agreement is in addition to the ongoing strategic cooperation between MSC Cruises and Shell towards achieving broader shared decarbonisation objectives, a collaboration which has been in place since 2021,” Shell Marine said in a social media post. 

MSC Euribia is currently operating seven-night cruises until April 2024 in northern Europe from Hamburg to Rotterdam, Zeebrugge, Le Havre and Southampton before returning to the north German port.

MSC Cruises has invested EUR 3 billion (USD 3.2 billion) in three LNG-powered cruise ships. MSC World Europa was launched in December 2022, MSC Euribia in June 2023 and MSC World America will join the fleet in 2025.

Pierfrancesco Vago, Executive Chairman, MSC Cruises, said: "LNG is an important step forward in our ambition to achieve net zero greenhouse gas emissions by 2050. The fuel is one in transition and poised to make way for carbon-neutral bio-LNG and eventually synthetic LNG that we will look forward to using as and when they become available at scale as part of our longer-term decarbonisation journey.” 

Tahir Faruqui, General Manager, Shell Global Downstream LNG, said: "This agreement illustrates how LNG provides shipping companies with a scalable path to net-zero emissions, allowing them to flexibly transition from fuel oil to fossil LNG today, and subsequently to bio-LNG and renewable synthetic LNG as these options become accessible.”

“With an extensive LNG bunkering network, we stand prepared to support major players like MSC Cruises on its energy transition."

Related: MSC Cruises’ first LNG-fuelled vessel “MSC World Europa” arrives in Europe
Related: TotalEnergies Marine Fuels completes first LNG bunkering op for “MSC World Europa”
Related: “MSC Euribia” set to embark on bio-LNG voyage for four days to Copenhagen
Related: “MSC Euribia” completes bio-LNG maiden voyage from Saint-Nazaire to Copenhagen
Related: Cruise ship “MSC Euribia” uses 43 tonnes less bio-LNG bunker fuel than planned
Related: SEA-LNG, MSC to explore bio-LNG and synthetic LNG with MSC entry as coalition member
Related: MSC Cruises signs agreement with Gasum for LNG and e-LNG bunker supply

Photo credit: MSC Cruises
Published: 20 October, 2023

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Alternative Fuels

ENGINE on Fuel Switch Snapshot: VLSFO holds firm

High demand and low stocks make VLSFO resilient to Brent; rising concerns of supply disruption drive LNG prices higher; bio-bunker premium over conventional VLSFO narrows further.

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ENGINE on Fuel Switch Snapshot: VLSFO holds firm

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: 

  • High demand and low stocks make VLSFO resilient to Brent
  • Rising concerns of supply disruption drive LNG prices higher
  • Bio-bunker premium over conventional VLSFO narrows further

Rotterdam's price premium of LNG over HSFO has increased by $7/mt to $9/mt, after a modest rise in the price of LNG in the past week. HSFO remains the cheapest fuel alternative in Rotterdam.

When the estimated EU ETS cost is included in the bunker fuel costs for voyages between the EU and a non-EU port, Rotterdam LNG’s $4/mt discount to HSFO has flipped to a $4/mt premium in the past week. For a ship sailing from Rotterdam to another EU port with estimated EU ETS costs included, LNG now has only a $1/mt price advantage over its HSFO, compared to $9/mt the week prior.

LNG’s discount to B24-VLSFO in Rotterdam has narrowed even further by $18/mt in the past week, even when estimated EU ETS costs are added to the price. Rotterdam’s LNG is priced at $210-221/mt discount to its B24-VLSFO.

Rotterdam’s B24-VLSFO premium over pure VLSFO has dropped even further by $13-14/mt over the past week, to $87-109/mt.

VLSFO

Rotterdam’s VLSFO benchmark has inched lower by $1/mt in the past week, despite a $30/mt decline in front-month ICE Brent futures. When the price of Dec24 EU Allowances (EUAs) for voyages between two EU ports is added to the VLSFO price, the overall price decreases by $5/mt.

VLSFO demand in Rotterdam has remained steady in the past week, sources told ENGINE. Two traders have reported strong VLSFO demand in the port. Availability is mostly normal, but securing the grade for very prompt dates (0-2 days) can be difficult, the sources added.

The ARA region’s independently held fuel oil stocks have averaged 5% lower so far this month than across March, according to Insights Global data.

Steady demand in Rotterdam and a drop in the wider ARA region's fuel inventories seem to have supported the benchmark's resistance against Brent's downward pull.

Singapore’s VLSFO benchmark has seen a modest $3-5/mt decrease in the past week, depending on whether the price is adjusted with the estimated EUA price for a voyage to an EU port.

Demand for bigger VLSFO stems seems to have increased in Singapore. ENGINE recorded 15 VLSFO stems in Singapore in the wide price band of $634-653/mt. Three 1,500 mt stems were priced in the lower price band between $634-648/mt and seven 500-1,500 mt stems were priced between $643-649/mt.

Biofuels

Rotterdam’s B24-VLSFO HBE bunker price has moved $15-18/mt lower in the past week, to $719-790/mt, depending on whether the fuel is estimated to be consumed on a voyage to an EU port or not.

PRIMA-assessed palm oil mill effluent methyl ester (POMEME) in the ARA dropped by $72/mt on the week, which has put downward pressure on bio-bunker prices in Rotterdam. POMEME-based biofuels are eligible for Dutch advanced biofuel (HBE) rebates.

Singapore’s B24-VLSFO UCOME bunker price has inched only $2-3/mt lower to $761-796/mt.

Prompt bio-bunker availability is tight in Singapore, two sources say. This has partly prevented prices of the most sought-after biofuel blend, B24-VLSFO UCOME, from dropping steeply in the past week.

LNG

Rotterdam’s LNG bunker benchmark has remained roughly steady in the past week.

Concerns that European LNG supply could be disrupted if the Middle East conflict escalates further and the possibility of a Hormuz Strait blockade by Iran have kept the price afloat. The Strait of Hormuz plays a crucial role in LNG transportation. Qatar alone accounts for around 20% of global LNG trade passing through this choke point.

Singapore’s LNG bunker prices has seen a significant rise of $35-37/mt in the past week. This is because the NYMEX Japan/Korea contract rolled from May to a higher-priced June contract last week, which has raised the JKM benchmark.

By Konica Bhatt and Erik Hoffmann

 

Photo credit and source: ENGINE
Published: 23 April 2024

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LNG Bunkering

Molgas marks entry into Italy with first LNG bunkering operation in Sicily

Operation, conducted in collaboration with Caronte & Tourist, took place on 11 April at the Port of Trapani; vessel NEREA received LNG via truck-to-ship, facilitated by Molgas.

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Molgas marks entry into Italy with first LNG bunkering operation in Sicily

Molgas Group on Thursday (18 April) said it has initiated operations in Italy with a milestone — the first-ever LNG bunkering in Sicily. 

The operation, conducted in collaboration with Caronte & Tourist, took place on 11 April at the Port of Trapani. The vessel NEREA received LNG via truck-to-ship, facilitated by Molgas.

Johannes Richter, Group Leader Marine at Molgas Group, said: “We are excited to commence operations in Italy and to have played a role in this historic event. This milestone reaffirms our commitment to driving sustainable solutions and extends our LNG Bunkering supply infrastructure across Europe.”

Vincenzo Franza, CEO of Caronte & Tourist Isole Minori S.p.A, said: “We're proud of the successful LNG bunkering of the ship Nerea. This accomplishment is of immense importance to our shipping company, as we are deeply dedicated to environmental conservation and investing in dual-fuel ships powered by LNG.”

“We extend our sincere gratitude to the specialists at Molgas for their professionalism and collaboration. We hope that this initiative can be a model for promoting sustainable mobility in Sicily and Italy.”

 

Photo credit: Molgas Group
Published: 22 April 2024

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LNG Bunkering

Seaspan launches second LNG bunkering vessel to serve US West Coast

“Seaspan Lions” will provide LNG fuelling services for vessels on the West Coast of North America, becoming the first company to provide LNG bunkering in the Pacific Northwest.

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Seaspan launches second LNG bunkering vessel to serve US West Coast

Seaspan Energy recently launched the second of its three 7600m3 LNG bunkering vessels, the Seaspan Lions, named after the twin peaks of the North Shore.

The series of vessels is named after iconic West Coast mountains and the first two vessels, the Seaspan Garibaldi and the Seaspan Lions, will be delivered in 2024 with the third vessel arriving in 2025.

The Seaspan Lions will provide Liquified Natural Gas (LNG) fuelling services for vessels on the West Coast of North America, becoming the first company to provide LNG bunkering in the Pacific Northwest. 

The Seaspan Garibaldi is set to deliver low-carbon solutions to the global market and will be based in the Panama region.

Seaspan launches second LNG bunkering vessel to serve US West Coast

“Solving the LNG infrastructure gap on the West Coast will play a vital role in creating new markets for lower-emission fuels and a more sustainable maritime industry,” said Ian McIver, President of Seaspan Energy. 

“We understand the importance of providing low- carbon bunkering solutions for ship owners who want to decarbonise their operations and we are committed to supporting the transition to cleaner, lower-emission marine fuels in British Columbia, Canada and the world.”

This series of vessels are each 112.8 metres in length, 18.6 metres in width, 5 metres in draft, with a design speed of 13 knots. 

The LNG bunkering vessels are being built by CIMC Sinopacific Offshore & Engineering (CIMC SOE). For the design of the LNG bunker vessels, Seaspan worked closely with the Canadian-based team at VARD Marine Inc. to incorporate emerging technologies resulting in a decrease in emissions and underwater noise. 

The design is focused on safe, efficient, and economical refuelling of multiple ship types with an ability to transfer to and from a wide range of terminals. 

The design will allow the vessel to engage in ship-to-ship LNG transfer and coastal and short-sea shipping operations.

 

Photo credit: Seaspan
Published: 22 April 2024

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