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Singapore: Golden Island Diesel Oil Trading to start methanol bunkering operations at republic by 2026

15 Feb 2023

Singapore bunker supplier Golden Island Diesel Oil Trading Pte Ltd (Golden Island) is planning to start bonded methanol bunkering operations at the republic in 2026, learned Manifold Times on Friday (10 February).

“We have already finished the design phase for the methanol bunkering tanker which will be between 8,000 to 12,000 dwt in size,” said Tomohiro Yamano, General Manager, Marine Fuel Department.

“The next step is to select a ship yard located in either Japan or China for construction of the vessel which will be delivered by 2026.

“We are first starting with the supply of grey methanol, followed with green and/or blue methanol marine fuel at a later stage.”

Yamano-san noted Golden Island to be starting methanol bunkering operations with two partners, with the cargo being sourced from either Asia or the Middle East, but declined to provide further details.

Johnny Tan, Managing Director of Golden Island, meanwhile shared the company’s rationale for embarking onto the methanol bunkering bandwagon.

“Methanol is not a new product and has been traded in the market for many years. Hence, supplies are plentiful and available at many ports around the world,” said Mr Tan.

“It is a much more efficient material to transport, store, and handle when compared to fuel oil and other alternative marine fuels.

“Though fuel oil offers 2.0 times more calorific value than methanol, we find the price of methanol to be still competitive to fuel oil when comparing on an energy content basis – especially when market conditions are favourable.”

He explained prices for methanol had been steadily hovering between USD 300 to 400 per metric tonne (pmt) since January 2022 till date.

During the similar period, prices for low sulphur fuel oil (LSFO) had fluctuated from a high of approximately USD 1,050 pmt [in June 2022] to a low of around USD 550 pmt [in December 2022].

Mr Tan further highlighted the approaching methanol-fuelled tonnage as a key point for Golden Island to start investments in methanol bunkering operations.

“Above all, the global maritime sector is heading towards decarbonisation and we as marine energy suppliers situated at the world’s largest bunkering port need to do our part as well.”

Related: Methanol Institute: ‘Plausible’ business opportunity, lower barriers to entry for methanol bunkering first movers
Related: Methanol Institute: ‘Turning point’ for methanol as bunker fuel reached with A.P. Moller – Maersk leading change
Related: KSOE wins USD 2.05 billion order to build 12 methanol-powered VLCCs
Related: Stolt Tankers performs ship-to-ship methanol bunkering in Port of Gothenburg
Related: World-unique methanol bunkering operation carried out in the Port of Gothenburg


Photo credit: Golden Island Diesel Oil Trading
Published: 15 February, 2023

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