Fuel Switch Snapshot: LBM discounts widen in Rotterdam

Dutch B100 discounts to conventional fuels narrow

LNG premiums in Singapore slump around $100/mt

Singapore LNG discounts to LSMGO widen to $850-950/mt

Rotterdam B100’s discount to its VLSFO has narrowed by $32/mt to $208/mt in the past week, and its discount to LSMGO has narrowed by $88/mt to $735/mt.

Liquefied biomethane (LBM) discounts to B100 in Rotterdam have widened by $94-97/mt in the past week, depending on the vessel’s engine type and its methane-slip profile.

LBM sold at 0 gCO2e is now around $112/mt cheaper than B100 in Rotterdam for vessels with Otto medium-speed engine and $317/mt cheaper than B100 for vessels with diesel slow-speed engines.

LBM discounts to LSMGO have slightly expanded by $6-9/mt to $847-1,052/mt on the week.

LNG has become even more affordable over LSMGO in Rotterdam, with its discounts to LSMGO increasing by $22-25/mt on the week to $461-660/mt.

Singapore LNG’s discounts to its LSMGO for EU-nonEU voyages have widened even drastically by $254-255/mt to $850-950/mt, depending on the vessel’s engine.

Liquid fuels

Rotterdam’s conventional fuel prices have declined for second straight week. The port’s VLSFO price has edged lower by $8/mt, but its HSFO and LSMGO prices have seen sharper $46-64/mt drops in the past week.

Rotterdam’s B100 price, on the other hand, has risen by $24/mt over the past week, supported in part by a €1.05/mtCO2e dip in Dutch ZRE A ticket values.

HSFO (-$6/mt) and VLSFO (+$2/mt) prices in Singapore have remained largely stable in the past week. But its LSMGO price has seen a $150/mt rise, mainly driven by tight supply of the grade and steady demand.

Singapore’s B100 has inched $1/mt lower on the week.

Liquid gases

Rotterdam’s LNG bunker prices have dropped by $87-90/mt, tracking an almost 10% fall in the front-month Dutch TTF natural gas contract.

Energy intelligence firm Japan Organization for Metals and Energy Security (JOGMEC) attributed the decline in TTF prices to higher gas storage levels in the EU, milder weather expectations, a recovery in wind power generation and hopes of easing Middle East tensions.

Rotterdam’s LBM prices have moved in tandem with its LNG, falling by $70-73/mt over the week.

Singapore’s LNG prices have declined even more sharply by $104-105/mt. The drop is driven largely by a $103/mt drop in the port’s LNG bunker premiums, which have eased to $242/mt.

By Konica Bhatt

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