World News
Methanol Seen Besting LNG on Bunkering Costs
While methanol currently lags some way behind LNG in terms of take up, it may be the better choice for those looking for lower bunkering costs.
"Because methanol remains in a liquid state, infrastructure investment costs are low relative to competing alternatives such as liquefied natural gas (LNG). Installation costs of a small methanol bunkering unit have been estimated at around € 400,000 (Stefenson, 2015). A bunker vessel can be converted for approximately € 1.5 million," FCBI Energy said in a recent report.
"In contrast, an LNG terminal costs approximately € 50 million and an LNG bunker barge € 30 million. Additionally, methanol allows for small incremental investments in infrastructure capacity as the number of users grows."
To date, LNG bunker suppliers have been notoriously reluctant to reveal how the cost of their pricey infrastructure impacts the delivered cost of the fuel.
But with industry talking heads having likened certain LNG bunkering tankers to "cadillac's delivering pizza" the perception at least is that it is significantly more than it is for traditional oil-based bunkers.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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