Fuel Switch Snapshot: Rotterdam's LNG and LBM prices gain

B100’s discount to LNG widens in Rotterdam

VLSFO supply remains stable in the ARA hub

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 unchanged at $163/mt on the week. Rotterdam B100’s discount to its LNG has increased by $24/mt to $84-192/mt in the past week.

In Singapore, B100 is $453/mt more expensive than VLSFO, even after factoring in EU’s regulatory benefits on Singapore-EU routes.

The LNG-VLSFO spread has shifted in both major ports.

For Otto medium-speed engines, LNG now carries a $29/mt premium over VLSFO in Rotterdam, $24/mt wider than last week. In Singapore, this premium has narrowed by $16/mt to $63/mt.

For diesel slow-speed engines, LNG’s discount to VLSFO has eased by $24/mt to $79/mt in Rotterdam, but has widened in Singapore to $22/mt.

Liquefied biomethane is priced $46/mt above B100 for Otto MS engines but shows a $75/mt discount for diesel SS engines in Rotterdam.

Liquid fuels

VLSFO prices in Rotterdam and Singapore have held largely steady over the past week. Rotterdam’s benchmark has slipped by $1/mt, while Singapore’s has edged up by $1/mt.

VLSFO remains readily available in the ARA hub, but buyers are advised to enquire about stems with recommended lead times of 5-7 days to get offers from a good selection of suppliers, a trader told ENGINE.

Rotterdam’s B100 has also been stable, easing by $1/mt on the week. Prima-assessed HBE rebate for B100 has increased by $32/mt on the week, adding some weight on the price.

In Singapore, B100 has seen a steeper weekly drop of $12/mt.

Liquid gases

Rotterdam’s LNG bunker price has gained by $22/mt, while its LBM price has increased by $18/mt over the week.

Singapore's LNG bunker price has dropped by $14/mt on the week.

By Konica Bhatt

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