The Singapore bunker fuel market is expected to reach $24.5 billion by 2030, expanding at a compound annual growth rate (CAGR) of 3.5% from 2021, reports Port News citing Allied Market Research.
The market was valued at $17.6 billion in 2020.
Singapore’s continuing dominance as a global bunkering hub
The report highlights Singapore’s continuing dominance as a global bunkering hub, supported by its strategic location, heavy shipping traffic, and compliance with International Maritime Organization (IMO) regulations.
Bunker fuel refers to the oil used in marine vessels, including heavy and low sulfur fuel oils and liquefied natural gas (LNG).
The IMO-2020 regulation, which limits sulfur content in marine fuel to 0.5%, has driven demand for low sulfur fuel oil (LSFO).
High sulfur fuel oil (HSFO) remains in use for ships equipped with scrubbers, while others have shifted to LSFO to meet regulatory standards.
Key growth factors cited in the report include increased seaborne trade across Asia-Pacific, expanding offshore oil and gas exploration, and wider adoption of LNG as a cleaner marine fuel.
However, high infrastructure costs and rising competition from emerging Asia-Pacific bunkering hubs present ongoing challenges.
By type, LSFO accounted for 72.16% of the market in 2020, driven by regulatory changes. Among distributors, oil majors held the largest share at 40.63%, followed by large independent distributors with 34.47%, the latter projected to grow at 3.9% CAGR.
Container ships represented the leading application segment with 23.14% share in 2020, while gas tankers are forecast to grow fastest at 4.1% CAGR.
The COVID-19 pandemic caused a sharp decline in bunker fuel demand in 2020 due to reduced shipping traffic and lower oil prices.
According to the International Energy Agency, global fuel oil demand for marine bunkering and power generation fell by 6.3%.
Demand for very low sulfur fuel oil (VLSFO) fluctuated due to supply disruptions, while HSFO consumption dropped significantly.
Major companies active in the Singapore bunker fuel market include BP Plc., Exxon Mobil Corporation, Equatorial Marine Fuel Management Services Pte. Ltd., Glencore Singapore Pte. Ltd., PetroChina International (Singapore) Pte. Ltd., Royal Dutch Shell Plc., Sentek Marine & Trading Pte. Ltd., SK Energy International Singapore Pte. Ltd., Total Energies, and Vitol Marine Fuels Pte. Ltd. Other players include Chevron Singapore, Global Energy Trading, Eng Hua Company, and Maersk Oil Trading Singapore.
Allied Market Research projects that Singapore will maintain its global leadership in bunkering through 2030, supported by LNG infrastructure investments and sustained container and tanker demand.
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Source: Port News
