Regional LNG: Straits Bio-LNG joins SEA-LNG coalition

By Romel S. Gurky

Straits Bio-LNG, a leading privately owned supplier of bio-LNG, has officially joined the SEA-LNG coalition. Based in Singapore, the company is rapidly expanding under the leadership of CEO SK Tan.

As the adoption of LNG-fueled vessels grows, LNG bunkering volumes have seen substantial increases at key bunkering hubs. In Singapore, the Maritime and Port Authority (MPA) reported a four-fold surge in LNG bunkering in 2024, reaching nearly 340,000 tonnes. In response to the growing demand, Straits Bio-LNG has committed to providing 250,000 tonnes of bio-LNG annually.

 “We firmly believe in the viability of LNG to decarbonise the shipping industry. With its low carbon intensity and improving cost-effectiveness, liquefied biomethane is critical for decarbonisation,” said Yiyong He, Director at Straits Bio-LNG, in a statement Thursday. “By joining SEA-LNG, we are proud to contribute to the efforts of forward-thinking industry leaders working to make LNG a reality today.”

Straits Bio-LNG is advancing its bio-LNG supply goal through innovative methods. The company is testing a biological process to break down Empty Fruit Bunch (EFB) at its R&D facility in Malaysia, using high-enzyme concentration. Both Palm Oil Mill Effluent (POME) and EFB are listed as sustainable biomass resources under the European Union’s Renewable Energy Directive (RED), ensuring compliance with EU sustainability standards.

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Peter Keller, chairman of SEA-LNG, noted, “Singapore is the world’s largest LNG bunkering hub. 2024 saw record growth in LNG and bio-LNG bunkering. However, as demand rises, we need more fuel to meet future needs. Liquefied biomethane can reduce GHG emissions by up to 80% compared to marine diesel. When produced from waste materials like manure, POME, or EFB, it offers negative emissions of up to -190% compared to diesel.”

An independent study by the Maritime Energy and Sustainable Development Centre of Excellence at Nanyang Technological University found that bio-LNG could meet up to 13% of global shipping fuel demand by 2050, and 63% with a 20% blending ratio. The MPA is leading efforts in LNG infrastructure, with Straits Bio-LNG’s contribution helping to strengthen Singapore’s position. The port has also launched an Expression of Interest (EOI) to explore scalable solutions for sea-based LNG reloading, further supporting LNG and bio-methane supply.

 “Straits Bio-LNG’s role in expanding liquefied biomethane at scale is critical in meeting growing demand, showcasing LNG as a practical solution for shipowners to decarbonise operations today,” Keller added.

Editing by Reiner Simanjuntak