Over the past few years, China’s decision to transform its maritime sector to become more sustainable and compliant with emerging strict environmental regulations. A key component of this transformation is the growth of LNG bunkering in China, accompanied by the adoption of alternative green marine fuels and low-sulphur fuel standards.
Importance of Low Sulphur and Green Marine Fuel in China
Especially around major ports, shipping has been a major contributor to air pollution and greenhouse gas emissions. To address these, the International Maritime Organization (IMO) has tightened allowable sulphur emissions in marine fuels. Launched on May 1, 2025, the sulphur content limit in certain international waters dropped from 0.5% to 0.1% by mass. Vessels using fuel oil must comply with low sulphur fuel China a critical requirement for vessels calling at or passing through Chinese ports.(1)
The green marine fuel refers to fuel blends or fuels producing significantly lower emissions of nitrogen oxide (NOx), sulphur oxide (SOx), and greenhouse gases (GHGs). These include biofuels, LNG, green methanol, ultra-low-sulphur fuel oils (ULSFO) and others. Adopting them is vital to China supporting global decarbonization and environmental goals.
What is LNG Bunkering in China and Why is it Growing
In simple words, LNG bunkering means supplying ships with liquified natural gas (LNG) at a port, for fuel rather than traditionally used heavy oil or very low sulphur fuel oil. China is increasingly investing in LNG bunkering infrastructure to provide shipping lines with cleaner options.
Some key advances are:
Yangshan Port, Shanghai: Yangshan is a multi-fuel bunkering port that offers traditional fuels, as well as LNG, biofuels, green methanol, and ultra-low-sulphur fuel. This makes it one of the first ports in China with a diversified portfolio.(2)
Victoria Harbour, Hong Kong: Hong Kong completed its first ship-to-ship LNG bunkering operation on 14th February 2025. A dual-fuel container vessel was refuelled with ultra-low temperature LNG in Hong Kong waters, marking progress in regional supply for cleaner marine fuels.(3)
LNG bunkering helps ships significantly reduce emissions of sulphur oxides and particulate matter (PM), also contributing to lower carbon emissions compared to heavy fuel oil, especially when best practices are followed and combined with additional emission control technologies.
Key Milestones in China’s Fuel Transition
Here are some of the recent milestones illustrating China’s movement towards greener shipping:
Port/ Project
Fuel Type
Impact
Dalian Port: green methanol bunkering
Domestically sourced bonded green methanol. It was used to fuel China’s first methanol dual-fuel container vessel. (4)
Reduces CO₂ emissions and expands the “green marine fuel” options beyond LNG. (5)
Shenzhen/ Shekou: largest domestic biofuel bunkering in China
Demonstrates the viability of a drop in biofuels for existing ships without engine modifications; meaningful carbon reductions(7)
Shanghai Yangshan Port: ULSFO bunkering by PetroChina
Ultra-low sulphur heavy fuel oil (ULSFO) is supplied, roughly 80% less sulphur than typical low-sulphur options.(8)
First in the Asia Pacific region to offer the cleaner marine fuel, helping vessels meet IMO regulation changes. (9)
Benefits and Strategic Drivers
China’s drive for LNG bunkering and green marine fuels is fuelled by a mix of benefits and strategic goals.
Air quality improvements: Coastal shipping contributes to air pollution in port cities. Low sulphur in fuel means lower emissions of SO₂, particulate matter, and other pollutants that harm health.
Regulatory Compliance: Shipowners, operators, and fuel suppliers must meet the IMO’s strict sulphur rules and other emissions regulations. Chinese ports offer fuels like LNG, ULSFO, etc, that are compliant, helping ships avoid switching fuels at sea and penalties.
The green competition: As many shipowners are switching to dual-fuel engines or fuel-flexible vessels, ports supplying LNG bunkers and green marine fuel have seen an increase in shipping traffic. China gets an edge as it is one of the first countries to supply green marine fuel/ LNG/ biofuels.
Fuel Security: China reduces its dependence on imported heavy marine fuel oil by developing alternative marine fuels and green fuels like biofuels and methanol, increasing stability.
Cost and infrastructure gains: Investing in bunkering infrastructures like methanol handling, biofuel certification, and LNG terminals leverages overlapping industrial supply chains, helping lower the costs over time.
Challenges and Areas for Improvement
China is making progress, but challenges persist in expanding LNG bunkering and green marine fuels:
Safety regulations and standardization: LNG bunkering poses safety and operational risks, like cryogenic handling and volatility. This requires robust regulation, training, and emergency response readiness, and uniform standards.
Engine retrofits: Some vessel engines require to modify their engines or retrofits to use methanol, LNG, or mixed fuels. Shipowners calculate retrofit costs vs long-term fuel cost savings and regulatory compliance.
Investing in infrastructure: Building LNG bunkering terminals, storage, handling facilities, and a safe supply chain is an expensive affair. Hence, ports and state companies must coordinate the investments across regions.
Fuel supply and standard: Scaling up requires consistent certification, stable feedstock supply, and standards, as biofuels, certified green feedstocks, and green methanol are often limited.
Cost competition: Depending on local supply, subsidies, and regulatory frameworks, alternative fuels and LNG can still be expensive and logistically challenging when compared to traditional marine fuel oils.
What’s Next for China’s Greener Shipping
Some of the promising trends and future directions include:
Expansion of LNG bunkering centres: As demand grows from dual-fuel or LNG-powered vessels, several ports in China are expected to enable LNG bunkering for international and coastal shipping.
Increase in biofuel and green methanol supply: An increase in the production of sustainable feedstocks, larger bunkering operations, and “green certified” fuels.
Advanced fuel blends innovation: Advanced blends of fuel reduce emissions without full fuel switching or engine changes can serve as transitional solutions.
Interport Cooperation: The aim is to form “green shipping corridors” with the availability of cleaner fuels consistently along the routes. Making it viable for the vessels to plan their voyages using greener fuels.
Policy support: The Government supports through subsidies, tax breaks, and favourable policies for green fuel ports is the key.
China’s efforts towards LNG bunkering China and their use of green marine fuel, and enforcement of low sulphur fuel standards are significant in the global shipping decarbonization journey. China is positioning itself as a leader in greener shipping in Asia through strategic port upgrades, fuel diversification, regulatory alignments, and innovations. However, for long-term success, regulated clarity, consistent investments, and collaborations across the supply chain will be essential.