Monjasa Reevaluates UAE LNG Bunkering on 'Unfavourable Market Conditions'

Monjasa's UAE LNG operation, launched at the start of 2025, is being reevaluated until more favourable market conditions emerge. Image Credit: Monjasa

A narrower spread between LNG and VLSFO has prompted global marine fuel supplier and trading firm Monjasa to reevaluate its LNG bunkering operation in the UAE.

Monjasa launched its UAE LNG bunkering operation, using the delivery vessel Green Zeebrugge, at the start of this year.

That operation is now being reeavaluated as the firm awaits better market conditions, a company spokesman told Ship & Bunker.

"Due to current unfavorable market conditions and widening price spread between LNG and traditional marine fuel grades, Monjasa has decided to reevaluate its current LNG operation in the Middle East, including redeployment of the Green Zeebrugge and Shandong Juniper vessels," the spokesman said.

LNG priced in fuel oil terms stood at a $163.50/mt premium to VLSFO in Rotterdam last month, down from a $170.50/mt premium in March, according to Ship & Bunker prices. 

The Middle East has been slower than other markets to show demand for alternative marine fuels including LNG. 

But Monjasa remains ready to resume LNG supply in the UAE and wider region as soon as market conditions permit, the company said.

"We have completed the groundworks, achieved the necessary approvals and safety certificates, and built a supply chain to introduce LNG as a marine fuel in the Middle East for the first time," Casper Borgen, trading director for the Middle East and Africa at Monjasa, said in an emailed statement.

"We believe in LNG as an important contributor in tomorrow's marine fuel mix and with the knowledge we have gained across our trading and shipping activities, we are determined to play our role, come the right underlying market conditions."

Monjasa's conventional bunkering operations in the UAE, with five oil tankers, remain unaffected.