What moved the bunker market this week?

Every Friday, our research team breaks down the key developments shaping bunker prices, fuel availability and global shipping. Explore the week’s essential stories, understand the forces driving the market, and see what bunker buyers should be watching next.

Download this week’s market update (PDF) (recommended for mobile) »

World’s first operational ammonia bunker vessel unveiled

Chinese firm Shenghang Shipping’s converted gas carrier Shenghang Yongle has become the world’s first operational ammonia bunker vessel, after gaining class certification from the China Classification Society for ship-to-ship ammonia bunkering.

The 5,500-cbm vessel was converted from a liquefied-gas carrier to transport liquid ammonia and supply it to other vessels. Designed by Swedish ship designer FKAB and built at China Merchants Shipbuilding Industry’s Dingheng shipyard, the vessel had its low-temperature cargo handling and two reliquefaction systems adapted for ammonia. The conversion also brought new operating procedures, risk assessments and safety measures covering ammonia toxicity, leak detection and bunkering risks. The companies have not disclosed where the vessel will be deployed or which port will host its first commercial ammonia bunker operations.

Navigator Gas taps Everllence for ethane dual-fuel retrofits

Gas shipping firm Navigator Gas has contracted German engine maker Everllence to convert two of its liquefied-gas carriers, Navigator Nova and Navigator Prominence, to run on ethane. The vessels will be fitted with Everllence’s ethane dual-fuel engines, with the retrofits to be carried out by COSCO Shipping Heavy Industries at its Nantong yard in China.

Work on the first vessel is due to start in March 2027. The project builds on Navigator Gas’ experience with the Navigator Aurora, which underwent the same conversion by Everllence in 2018 and has since accumulated eight years of operational experience with the technology.

Florida bio-methanol producer targets bunker demand

US-based startup Demeter Energy plans to build a 100,000 mt/year bio-methanol production plant at the Port of Manatee, targeting demand from shipping and other industries.

The planned facility is expected to produce the fuel from woody biomass and other organic waste, and include a carbon capture and storage system designed to capture around 200,000 mt/year of CO2 generated during the production process. Manatee is a deepwater port at the entrance to Tampa Bay, with access to trade routes through the Panama Canal.

Demeter Energy has not specified a development or production timeline for the project. The company eventually plans to develop modular bio-methanol plants across the US, with individual production capacities of 100,000-250,000 mt/year.

Industry warns EU loophole could dilute e-fuel target

More than 20 organisations have urged EU lawmakers to close an accounting gap in Delegated Regulation (EU) 2023/1185 that could weaken future demand for synthetic marine fuels.

The regulation does not clearly exclude electrolytic hydrogen used to produce biofuels such as hydrotreated vegetable oil (HVO) from counting towards the resulting fuel’s synthetic fuel share, said the SASHA Coalition, one of the signatories to the joint letter.

This could allow biofuel refiners to claim they are delivering e-fuels without building dedicated synthetic fuel plants. The letter targets aviation’s fuel mandate, but the signatories said the accounting would carry into shipping, where FuelEU Maritime could impose a 2% synthetic fuel sub-target from 1 January 2034. They argued that leaving the regulation unchanged could allow biofuels produced using green hydrogen to count towards the future synthetic fuel subtarget requirement, potentially reducing demand for synthetic bunker fuel production.

Exmar adds new LPG dual-fuel gas carrier to its fleet

Belgian shipping firm Exmar has taken delivery of a 41,000-cbm LPG dual-fuel gas carrier for its French subsidiary, Exmar France. The company also received three similar vessels earlier this year. The deliveries form part of a wider expansion of Exmar’s LPG dual-fuel mid-size gas carrier fleet, covering 10 vessels. Four vessels were added through a newbuilding contract from Avance Gas, while six were chartered from an undisclosed Japanese shipowner.

LR and K Shipbuilding to develop ethanol-capable tanker

Lloyd’s Register (LR) and South Korean shipbuilder K Shipbuilding will develop a 50,000 dwt ethanol-capable medium-range tanker. LR will review the vessel’s design, stability, structural requirements and integration of ethanol fuel tanks, while K Shipbuilding will lead development. Ethanol’s established use as a cargo makes the vessel “a practical place to assess it as a fuel,” said Theo Kourmpelis, LR’s global business director for tankers.

Singapore bio-bunker sales increased in August

Singapore’s bio-blended bunker sales rose sharply in August, increasing by 48% to 57,000 mt, which was the highest monthly volume since April, according to preliminary data from the Maritime and Port Authority
of Singapore.

Of the total, approximately 48,000 mt comprised bio-VLSFO, typically a 24% blend ratio in Singapore, while the remaining 9,000 mt was bio-HSFO. From January to August, Singapore’s total biofuel bunker sales stood at 494,000 mt, down substantially from 1.03 million mt during the same period last year.

LNG bunker sales remained broadly stable at 59,000 mt in August. Sales of B100 (100% biofuel) were recorded for a fifth consecutive month, with around 800 mt sold in August. There were no methanol bunker sales for the sixth consecutive month, and no ammonia bunker sales have been recorded so far this year.