LNG Bunker Snapshot: Prices down due to ongoing tariff concerns

LNG bunker prices in both Rotterdam and Singapore have declined, driven by ongoing concerns over tariffs.

Changes in weekly LNG bunker prices:

• Rotterdam down by $25/mt to $710/mt
• Singapore down by $27/mt to $754/mt

Rotterdam

Rotterdam’s LNG bunker price has fallen for the third straight week, primarily due to an approximately 3% decline in the front-month Dutch TTF Natural Gas contract, a key benchmark for European gas.

This price drop has been driven by “bearish fundamentals and ongoing tariff concerns,” according to Energi Danmark.

Greg Molnár, gas analyst at the International Energy Agency (IEA), added that “the growing macroeconomic uncertainty weighs on energy and gas demand outlook.”

As of 11 April, underground gas storage across the EU was at 35.1%, up from 34.6% the previous week, but still 42.7% lower than the same period last year, according to Gas Infrastructure Europe, as cited by JOGMEC.

Additionally, a reduction of around 3% in the estimated LNG bunker premium—from about $111/mt to $108/mt—has also contributed to the downward pressure on LNG bunker prices.

Singapore

Singapore’s LNG bunker price has fallen sharply over the past week, reaching $754/mt. Asian LNG bunker prices generally follow the NYMEX Japan/Korea Marker (JKM), which dropped by $0.37/MMBtu during the same period, bringing the front-month contract down to $12.55/MMBtu ($652/mt).

The decline was driven “due to concerns over trade friction and the worsening of the global economy caused by the Trump administration's retaliatory tariffs,” according to the Japan Organization for Metals and Energy Security (JOGMEC).

“There are also growing concerns around China's gas demand: the country's industrial gas use was on a downward trend since November last year, and the tariffs are likely to worsen its short-term prospects,” Molnár added.

The price premium over Rotterdam has remained steady at around $44/mt over the past week.

Meanwhile, Japan’s Ministry of Economy, Trade and Industry (METI) reported that LNG inventories for power generation stood at 2.13 million mt as of 6 April, reflecting a decrease of 100,000 mt from the previous week.

By Tuhin Roy

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