Equatorial Marine Fuel Management, a top Singapore bunker supplier by volume, plans to channel part of its 2026 profits to fund its expansion into supplying liquefied natural gas to ships as it positions for higher demand from 2028, its executives said.
The company, which was one of eight suppliers awarded an LNG bunker licence in late July, is in discussions with LNG cargo suppliers and shipowners for collaborations, its executive director Choong Zhen Mao told Reuters on the sidelines of the Singapore International Bunkering conference.
"The opportunity that we see in LNG still seems to be growing, even in this climate. I think that's where we see the market moving," he said, referring to the surge in LNG prices after the US-Israeli war on Iran disrupted exports from the Middle East.
The company will be receiving its first new-built LNG bunker barge in the later part of the third quarter in 2027, he added.
Equatorial's chief operating officer, Choong Sheen Mao, expects a more notable increase in Singapore's LNG bunker demand from 2028 as more LNG production capacity and dual-fuel vessels come online globally.
Equatorial currently supplies about 10 per cent of total bunker volumes at Singapore, the world's biggest refuelling hub for ships, according to its executives. The city state has supplied an average 4.7 million tons of bunker fuel a month so far in 2026, official data show.
The company's year-to-date profits for 2026 have exceeded last year's level, the executives said, though they did not disclose the figures.
Bunker fuel prices surged after US and Israeli strikes on Iran in late February drove oil prices higher, and have remained volatile since then. The ensuing disruption to shipping routes supported refuelling demand in key hubs including Singapore.
"Demand looks to be resilient," said ED Choong.
"When there is uncertainty, sometimes people tend to purchase a bit more, fill their tanks a bit more...people tend to break a voyage down into smaller trades these days to ensure availability and cargo security."
Equatorial owns eight fuel oil barges, seven marine gasoil barges, as well as four chemical bunker tankers that meet International Maritime Organisation's type two standard to carry methanol or biofuel blends up to 100 per cent biofuel content.
Some of the chemical bunker barges have been repurposed to supply conventional fuel this year amid a slowdown in marine biofuel demand, COO Choong said.
"Demand for biofuels has slowed this year because of the delay in the IMO's 'net-zero' framework, while current prices are not competitive," he said.
Depending on the blend and delivery window, biofuel blends command premiums of at least $100 per tonne over conventional low-sulphur bunker fuel oil, according to industry sources.
(Reporting by Jeslyn Lerh; Editing by Florence Tan and Shri Navaratnam)
