LNG Bunker Snapshot: Prices fall in Rotterdam and Singapore

LNG bunker prices softened in both Rotterdam and Singapore last week, influenced by improved gas supply.

PHOTO: CMA CGM's LNG-powered vessel bunkered at the Port of Rotterdam. CMA CGM

Changes in weekly LNG bunker prices:

• Rotterdam down by $13/mt to $753/mt
• Singapore down by $36/mt to $849/mt
  

Rotterdam

The LNG bunker price in Rotterdam has edged down by $13/mt to $753/mt in the past week. The port's benchmark has tracked the downward movement in the front-month NYMEX Dutch TTF Natural Gas contract.

One of the key factors behind this price decline is improved natural gas production from Norway. Initial expectations suggested a significant reduction in Norwegian exports. However, the situation has turned out to be less severe than anticipated. This improvement in supply has helped ease some of the upward pressure on prices, Energi Danmark said.

Despite this temporary relief, the market remains highly volatile. There are ongoing concerns about the potential for a complete shutdown of Russian gas deliveries to Europe, which could have drastic implications for the region’s energy supply, the Danish energy trading company added.

European Union-wide gas storage sites have reached 90.5% capacity.

Singapore

Singapore's LNG bunker price has come down by $36/mt to $849/mt.

Chevron recently completed maintenance work at Australia’s Gorgon LNG Train 2, wrapping up the process ahead of schedule. This early completion has eased some supply constraints, helping to drive prices lower, Rystad Energy said. Chevron's Gorgon LNG plant consists of three trains, each with a production capacity of 5.2 million mt/year, and a combined total capacity of 15.6 million mt/year.

Additionally, Japan’s energy sector saw a brief disruption when JERA’s Anegasaki gas-fired power plant’s new unit 1 faced an outage on August 19. However, the unit resumed operations last week, stabilizing the demand side to some extent, Rystad Energi added. 

By Debarati Bhattacharjee

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