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LNG Bunkering

FUJCON 2021: LNG bunkering ‘has to be part of the solution’ for IMO 2030/2050, says FGE Chairman

‘I don’t think it’s possible without LNG to reach those goals. LNG has to be part of that package but it is obviously clear that not one solution is enough,’ states Dr Fereidun Fesharaki.

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The consumption of liquefied natural gas (LNG) as a bunker fuel, together with other solutions, can help the shipping industry meet IMO 2030/2050 targets, believes the Chairman of independent global energy consultancy Facts Global Energy (FGE).

The International Maritime Organization (IMO)’s initial GHG strategy envisages to reduce CO2 emissions per transport work, as an average across international shipping, by at least 40% by 2030 pursuing efforts towards 70% by 2050 compared to 2008; and that total annual GHG emissions from international shipping should be reduced by at least 50% by 2050 compared to 2008.

“I don’t think it’s possible without LNG to reach those goals. LNG has to be part of that package but it is obviously clear that not one solution is enough,” Dr Fereidun Fesharaki told delegates at the 12th Fujairah International Bunkering and Fuel Oil Virtual Forum (FUJCON 2021).

“There may be more desperate and multiple solutions to be able to get us to the target of 50% that IMO is asking for; but basically IMO’s targets are supportive of LNG bunkering and there is still a lot of potential for LNG bunkering in front of us as we go forward.”

Vessels using purely LNG as a bunker fuel, compared to traditionally fuelled ships, will be able to reduce carbon dioxide emissions and nitrogen oxide by between 20 to 25% and 85% respectively.

“This is a benefit that’s very hard to forget and it’s something which will be material and as we go forward this becomes more and more important,” he highlights.

“So far, we have not had the direct support from IMO for LNG bunkering but it has to be part of the solution. There is no way that we can reach the solution that IMO is looking for without LNG bunkering.”

Moving forward, Dr Fesharaki expects rapid growth in the carbon neutral LNG market within the coming years.

“One of the more topical issues today is carbon neutral LNG where it has become very fashionable. Shell has been at the forefront but now globally we see Total, Mitsui, Gazprom, and others selling carbon neutral LNG cargoes,” he shares.

“Currently, there are no international standards [for carbon neutral LNG] but we think this is a growth area and there will be a lot of carbon neutral LNG into the market.

“In the long term, it will also help change the face of the LNG business. We expect about 30 million tonnes of carbon neutral energy to be offered in the market in the next two or three years, so it is a market which is likely to grow very fast.”

A series of interviews conducted by Manifold Times as part of pre-event coverage for FUJCON 2021 can be found below:

Related: INTERVIEW: Price risk management for future marine fuels more complex, forecasts ElbOil
Related: INTERVIEW: Bunkering sector undergoing through exciting technological transformation, observes Teekay Tankers
Related: INTERVIEW: National Bank of Fujairah discusses challenges, risk management in oil and bunkering sectors
Related: INTERVIEW: IMO 2030/2050 marine fuels to be decided by most cost efficient, effective well-to-propeller solution
Related: INTERVIEW: Bunker buying is more than a relationship-based activity; it’s a science, says marine fuels broker
Related: INTERVIEW: 80-90 times YOY growth for Singapore LNG bunkering volumes in 2021, says FueLNG
Related: INTERVIEW: Major ports, including Singapore, to prepare for alternative marine fuels future, says IMO
Related: INTERVIEW: VLSFO bunker contamination could resurface on USD 80 to 90 bbl oil, warns consultant


Photo credit: Facts Global Energy

Published: 24 March, 2021

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LNG Bunkering

PIL’s LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on LNG and low-sulphur fuel oil that helps reduce our greenhouse gas emissions.

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PIL's LNG dual-fuel boxship “Kota Elok” arrives in Singapore on maiden call

Singapore-based Pacific International Lines Pte Ltd on Monday (20 July) said its first 13,000 TEU LNG dual-fuel container vessel, Kota Elok, recently made her maiden call to Singapore on 15 July.

As the first of 13 new 13,000 TEU vessels joining its fleet, Kota Elok is equipped to operate on liquefied natural gas (LNG) and low-sulphur fuel oil that helps reduce our greenhouse gas emissions. 

The vessel also incorporated energy-saving features and digital technologies to reduce fuel consumption and enhance operational performance, as well as a bow windshield to improve aerodynamics, contributing to improved fuel efficiency and lower emissions over the course of long-haul voyages.

“Following Singapore, Kota Elok will continue her voyage on our East Coast Service 1 (ES1) route to South America, calling at ports in Brazil, Uruguay, and Argentina before returning to Asia,” the company said in a social media post. 

Kota Elok also became PIL’s first vessel to receive Lloyd’s Register certification for compliance with the IACS UR E26 and UR E27 cyber security requirements.

Developed by the International Association of Classification Societies (IACS), UR E26 and UR E27 are mandatory cyber resilience requirements for newbuild vessels contracted from 1 July 2024. 

 

Photo credit: Pacific International Lines
Published: 21 July, 2026

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LNG Bunkering

CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s alternative fuel bunkering infrastructure.

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CIMC SOE secures order for 12,000-cbm LNG bunkering vessel from Sinopec Clean Energy

China’s Nantong CIMC Sinopacific Offshore & Engineering Co., Ltd. (CIMC SOE) recently signed a contract with Sinopec (Beijing) Clean Energy Co., Ltd. to build a 12,000-cubic metre (m3) LNG bunkering vessel, according to Chinese maritime media.

The vessel is scheduled for delivery in 2028 and will support Sinopec’s efforts to expand its presence in the marine clean energy sector.

Once operational, the vessel is expected to strengthen Sinopec’s domestic coastal LNG bunkering network and help address gaps in China’s LNG bunkering infrastructure.

With this signing , CIMC Pacific Offshore Engineering’s LNG bunkering vessel orderbook is further strengthened, maintaining its leading position in the global market for small and medium-sized LNG bunkering vessels.

The contract also marked another milestone for CIMC SOE, which has seen a sharp increase in orders and business performance this year amid a surge in domestic LNG vessel demand.

 

Photo credit: Nantong CIMC Sinopacific Offshore & Engineering
Published: 21 July, 2026

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Alternative Fuels

ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

B100 discount to LSMGO widens to $541/mt in Rotterdam; Singapore’s B100 drops to $106/mt below LSMGO; Rotterdam LBM at $639-833/mt discounts to LSMGO.

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ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

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:

20 July 2026

  • B100 discount to LSMGO widens to $541/mt in Rotterdam
  • Singapore’s B100 drops to $106/mt below LSMGO
  • Rotterdam LBM at $639-833/mt discounts to LSMGO

B100’s premium over HSFO in Rotterdam has narrowed by $50/mt over the past week to $64/mt, while its discount to VLSFO has widened by $83/mt to $105/mt.

B100 has become far more competitive against LSMGO in Rotterdam, with its discount widening by $180/mt over the past week to $541/mt, as a surge in conventional fuel prices left B100 broadly unchanged by comparison.

B100’s price has risen by $109/mt in Singapore, but its discount to LSMGO has still widened by $102/mt to $106/mt, as LSMGO surged by an even greater $211/mt.

Rotterdam’s LNG premium over VLSFO has widened by $35/mt to $201/mt for vessels with Otto medium speed (Otto MS) engines. For vessels with diesel slow speed (diesel SS) engines, LNG has flipped to a $15/mt premium over VLSFO, from a $22/mt discount the prior week.

Liquefied biomethane (LBM) discounts to VLSFO in Rotterdam have narrowed by $50-52/mt to $203-396/mt over the past week. Against LSMGO, LBM discounts have widened by $45-47/mt to $639-833/mt, depending on engine type.

In Singapore, LNG is now $42/mt cheaper than LSMGO for vessels with Otto MS engines, and $134/mt cheaper for vessels with diesel SS engines.

ENGINE on Fuel Switch Snapshot: LSMGO surges to greater premium over biofuel

Liquid fuels

HSFO and VLSFO prices in Rotterdam have jumped by $66/mt and $99/mt respectively over the past week, while LSMGO has surged by an even steeper $196/mt. A $9.69/bbl ($71/mt) rise in front-month ICE Brent futures, to $87.94/bbl ($645/mt), drove bunker prices sharply higher across the board.

Bunker fuel availability is tight for prompt delivery dates in the ARA ports, with buyers advised to enquire about stems between 5-7 days ahead to get good coverage, a trader said.

Rotterdam’s B100 price has risen by $16/mt over the past week. Dutch ZRE A ticket prices were unchanged at €107.50/mtCO2e.

Singapore’s HSFO and VLSFO prices have risen by $130/mt and $132/mt respectively, while its LSMGO price has gained an even steeper $211/mt over the past week.

VLSFO availability in Singapore has been tight, with several suppliers reporting low stock levels. Recommended lead times have widened from 13–17 days last week to 14–19 days now.

Liquid gases

Rotterdam’s LNG prices have surged by $134-136/mt over the past week, while its LBM prices have climbed by $149-151/mt.

LBM discounts to LNG in Rotterdam have narrowed by $15/mt to $404-411/mt.

Singapore’s LNG bunker benchmarks have surged by $196-197/mt over the past week.

By Erik Hoffmann

 

Photo credit and source: ENGINE
Published: 21 July, 2026

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