Fuel Switch Snapshot: Major bunker prices edge lower

Rotterdam’s B100 is $160/mt cheaper than VLSFO

LNG and LBM prices drop $11-13/mt

LBM cheapest option for dual-fuel ships in Rotterdam

All bunker prices mentioned below have been adjusted for calorific contents to make them VLSFO-equivalent. They have estimated EU-EU voyage compliance costs included for Rotterdam, and non-EU-EU compliance costs included for Singapore. These account for EU ETS costs and FuelEU Maritime penalties, and our estimated compliance surplus values for FuelEU pooling. Rotterdam's B100 and LBM prices also factor in Dutch HBE rebates for advanced liquid and gaseous biofuels sold in the Netherlands.

B100’s discount to VLSFO in Rotterdam has remained almost steady, narrowing by just $1/mt to $161/mt.

These prices include costs of burning the fuels between two EU ports and an estimated pooling value for overcompliant vessels. The B100 price also includes a rebate from the Dutch HBE system.

Fossil LNG is priced $150–197/mt above liquefied biomethane (LBM) in Rotterdam, which is $2/mt less than a week ago.

The premium is in a wide range because methane emissions are penalised in the EU's FuelEU Martime regulation and LNG engines have varying methane slips.

The fossil LNG premium at the lower end of the price range ($150/mt) is for vessels equipped with diesel slow-speed (diesel SS) engines with 0.2% methane slips. The higher end of the range ($197/mt) applies to Otto medium-speed (Otto MS) engines with 3.1% methane slips.

For dual-fuel shipowners, fossil LNG is now $110/mt more expensive than VLSFO when used in Otto MS engines, but at a $55/mt discount to VLSFO when used in diesel SS engines with lower methane slips.

Liquid fuels

Rotterdam’s VLSFO price has taken a breather after three straight weeks of gains and is down by $9/mt in the past week. Prompt availability of all conventional fuel grades remains tight in the ARA region, a trader told ENGINE.

Rotterdam’s B100 benchmark has declined by $7/mt in the past week. There are signs of biofuel prices coming off in the past week. Prima Market's has assessed its POMEME CIF ARA barge price down by about $20/mt compared to a week ago, and its assessed Dutch HBE rebate for marine B100 has gone up by $3/mt.

Biofuel bunker suppliers don't necessarily track POMEME prices when they set their B100 bunker prices, but considerable price swings for POMEME - a key HBE-rebated marine biofuel type in the Netherlands - can translate into B100 price changes over time.   

Singapore’s VLSFO price has declined by $11/mt over the same period. Lead times for the grade remain stable at 8–15 days amid sluggish demand, a source told ENGINE.

The price of B100 has held steady in Singapore in the past week. B100 is $528/mt now pricier than VLSFO for vessels sailing on voyages from Singapore to EU ports - for which 50% of their emissions count.

Liquid gases

Rotterdam's LNG bunker price has declined by $13/mt over the past week.

The LNG bunker price has tracked a 2% drop in the front-month Dutch TTF Natural Gas contract, which has moved lower on the back of ample gas supplies in the EU and rising Norwegian output.

Singapore’s LNG bunker price has declined by $16/mt over the past week.

The decline reflects “continued sluggish demand from end users across East Asia,” according to the Japan Organization for Metals and Energy Security (JOGMEC).

By Konica Bhatt

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