Chinese LNG bunkering player expands into European market

November 4, 2024, by Ajsa Habibic

China Marine Bunker (PetroChina) Co. Ltd. (CHIMBUSCO), a Chinese physical supplier of marine fuel, has completed its first LNG bunkering operation in Europe, marking the official expansion of its alternative energy services to overseas markets.

As disclosed, CHIMBUSO’s inaugural LNG bunkering operation in Europe took place at the port of Zeebrugge, Belgium, at the end of October 2024.

The company supplied fuel to the LNG dual-fuel car carrier Peony Leader, a 12-deck 7,000 CEU newbuild owned by COSCO Shipping Specialized Carriers.

The 199.9-meter-long car carrier was built and delivered by Guangzhou CSSC Longxue Shipbuilding in September 2024. Following the delivery, the ship embarked on its maiden voyage to Europe. COSCO Shipping, through its joint venture with SIPG Logistics and Anji Logistics, is also anticipating delivery of six 7,500 CEU dual-fuel LNG car carriers in 2025 and 2026.

According to CHIMBUSCO, the recent expansion into overseas markets follows active monitoring of developments in new marine fuel markets.

To note, the industry coalition SEA-LNG estimates that over 2,000 of the world’s 60,000 largest vessels will be powered by LNG in the near future with active LNG-fueled vessels now representing over 2% of the global shipping fleet.

When factoring in vessels on order, this figure rises to 4% by number and 6% by deadweight tonnage (dwt) as new investments in LNG-powered ships are constantly announced.

The number of LNG-fueled vessels has surged from just 21 in operation in 2010—mostly smaller, regionally operating ships—to 590 globally today, including some of the world’s largest containerships, which are now twice the size of those operating a decade ago. With an additional 564 vessels on order, the total is expected to reach 1,154 by the end of 2028, SEA-LNG states.

In support of this expansion, LNG bunkers are currently available in 185 ports, with an additional 50 being added next year.

The bunkering vessel fleet has increased from a single vessel in 2010 to 60 in operation today, with a further 13 on order and significant interest in the maritime community to continue to invest in these assets.