- Asian biomethanol prices are now lower than in Europe, with certified supply chains expanding through China and Singapore.
- FuelEU Maritime rules allow certified bunkering outside the EU, enabling shipowners to mass-balance lower-cost Asian fuel into European voyages.
- Major new projects in China and Singapore are reinforcing Asia’s role as the global benchmark for biomethanol pricing.
- Rising methanol-capable fleet orders are expected to strengthen long-term demand and further anchor the market in Asia.
Asian biomethanol is now trading at lower prices than in Europe, and this gap could expand as demand for low-carbon marine fuels linked to compliance shifts toward Asia. FuelEU Maritime regulations allow certified low-carbon fuels bunkered outside the EU to qualify for compliance, making Asia an increasingly competitive source, according to analysis published by Argus Media.
Biomethanol Pricing and Supply Dynamics
The pricing dynamics of biomethanol are shifting toward Asia, where availability and certified supply chains are expanding rapidly. Shanghai has already conducted multiple commercial biomethanol bunkering operations this year, while large-scale certified deliveries have proven viable through ports such as Tianjin and Singapore. New certified production capacity is also coming online, including major projects in Jilin, Inner Mongolia, and Guangdong, with long-term offtake agreements secured by leading carriers such as Maersk and Hapag-Lloyd. These developments have anchored prices in Asia, where East China biomethanol was assessed at $1,000/t in August compared with $1,164.60/t at the Amsterdam-Rotterdam-Antwerp hub.
With FuelEU Maritime rules permitting certified fuels bunkered abroad to count toward compliance, shipowners can mass-balance lower-cost Chinese or Singaporean biomethanol into European voyages, avoiding higher premiums in the EU market. At the same time, European anti-dumping duties on Chinese biodiesel continue to elevate regional biofuel costs, further strengthening Asia’s role in price setting. While risks remain around certification scrutiny, potential regulatory reforms, and compliance database costs, the trend points to Asia becoming the global benchmark for biomethanol. China alone has announced 72 projects totaling 15mn t/yr of capacity, with nearly a quarter under construction or at final investment decision stage, while Singapore is advancing its regulatory framework with a new bunkering standard and licensing system. With more than 60 methanol-capable vessels already in operation and another 300 on order, the industry’s shift eastward is expected to shape pricing and compliance costs in the years ahead.
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Source: Argus Media
