LNG Bunker Snapshot: Rotterdam price rise on supply risks
Rotterdam’s LNG bunker price has risen due to European supply concerns and tighter market dynamics, while Singapore’s price increased slightly driven by competition and rising spot premiums.
PHOTO: Peninsula's bunker supply vessel Levante LNG delivering LNG to Silver Nova in Gibraltar. Peninsula
Changes in weekly LNG bunker prices:
- Rotterdam up by $26/mt to $879/mt
- Singapore up by $17/mt to $906/mt
Rotterdam
Rotterdam's LNG bunker price has gained by $26/mt to $879/mt in the past week. The upward trend reflects a corresponding increase in the underlying Dutch TTF Natural Gas contract.
Europe's gas storage currently stands at 85%, slightly below the five-year average of 88%.
Adding to the tension is the potential cessation of Russian piped gas via Ukraine by year-end, sparking worries over supply stability. While a balanced market is expected by the end of the 2024/25 heating season, challenges remain for summer 2025 storage refills.
Forward prices show backwardation between summer 2025 and winter 2025/26, highlighting market apprehensions, ING’s Warren Patterson said.
The European Commission recently increased its February 2025 storage target from 45% to 50%.
Singapore
Singapore's LNG bunker price has gained by $17/mt to $906/mt in the past week, tracking gains in the NYMEX Japan/Korea Marker (JKM) contract.
This uptick reflects heightened competition, with Asian buyers facing pressure as European buyers rush to secure flexible LNG cargo contracts.
Spot LNG cargo prices in Asia are now trading at a $1-2/MMBtu premium over oil-indexed LNG prices, prompting buyers to limit spot purchases. Additionally, the narrowing JKM-TTF spread could lead to LNG flows being rerouted from Asia to Europe in December, according to a gas analyst at the International Energy Agency.
By Debarati Bhattacharjee
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