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LNG Bunkering

ITF/OCED assess Japan’s goal to be LNG bunkering hub

‘LNG has advantages over conventional fuels but is not the ideal solution to reduce CO2 emissions from ships.’

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The International Transport Forum, an organisation within the Organisation for Economic Co-operation and Development (OECD), in late April published a policy analysis report to assess Japan’s ambition to become an international bunkering hub for liquefied natural gas (LNG).

The report Fuelling Maritime Shipping with Liquefied Natural Gas: The Case of Japan is based on desk research and focuses specifically on bunkering facilities in the Tokyo Bay area, notably the Port of Yokohama.

In summary, it noted the success of Japan’s depending on four conditions:

Uptake of LNG as ship fuel
There are currently 118 LNG fuelled vessels in the world and the number is expected to grow and almost double by 2020. A trend of LNG-fuelled vessels will increase the prospects for bunkering of LNG-fuelled ships on main East-West trade lanes. Competitive LNG prices can further incentivise alternative fuel investment strategies by firms.

Availability of LNG bunkering facilities worldwide
Ship-owners and operators will need a network of ports where they can take on board LNG. These facilities are becoming increasingly available in Europe, and to a lesser extent in North America and Asia.

Recent and future emissions regulations
Stricter requirements in Emission Control Areas as of 2015 have boosted LNG-fuelled coastal shipping in Northern Europe and North America. The global 0.5% sulphur cap from 2020 will likely drive the use of LNG fuelled ships in other parts of the world as well.

Strategic location close to trade routes
The Port of Keihin (Yokohama, Tokyo and Kawasaki), which has developed the technical and infrastructure requirements for LNG bunkering, is located at one end of the North Pacific trade route as a first port for loading and unloading. This gives it a locational advantage to become a major LNG bunkering hub.

According to the report, Japan has the potential to become a major LNG bunkering hub. However, some uncertainties exist.

“Emission regulations have so far focused on reducing SOx and NOx emissions from ships, but will soon target maritime greenhouse gas emissions as well,” it says.

“In that context, LNG has advantages over conventional fuels but is not the ideal solution to reduce CO2 emissions from ships.”

It explains that LNG can reduce carbon dioxide emissions by 20%, but the use of the material also presents a risk of methane slip, which is the releases of methane from unburnt gas in the engine exhaust.

Further, handling of LNG at each stage of the supply chain leads to fugitive emissions. Global standards on the safe handling of LNG on the shore side will also be required.

“The analysis confirms the strategic importance for Japan to invest in LNG bunkering facilities in anticipation of the 0.5% global sulphur cap,” it concludes.

“The sulphur regulations in the Emission Control Areas in Northern Europe have generated orders and deliveries for LNG-fuelled ships operating in coastal trades.

“With the sulphur cap imminent, this might also happen in Japan. Given its current level of infrastructure, experience and geographical position, Japan will most likely secure a competitive advantage vis-à-vis other Asian ports that are developing similar bunkering facilities for LNG.

“With these in place, the ports in the Tokyo Bay area in particular will strengthen their current position as key regional and international ports and enable the emerging East-West traffic by LNG-fuelled ships traffic to trade in Japan.”

A full copy of the report is available in the link below:
https://www.itf-oecd.org/sites/default/files/docs/maritime-bunkering-lng-japan.pdf

Photo credit: ITF/OCED
Published: 30 April, 2018

 

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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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