LNG Bunker Snapshot: Rotterdam price rises on colder weather forecast

Rotterdam’s LNG bunker price has surged on cold weather forecasts and rising bunker premiums, while Singapore’s price has dipped amid expectations of easing geopolitical tensions.

Changes in weekly LNG bunker prices:

• Rotterdam up by $42/mt to $823/mt
• Singapore down by $14/mt to $814/mt

Rotterdam

Rotterdam’s LNG bunker price has risen sharply to $823/mt after four consecutive weeks of decline. This surge is linked to a 4% increase in the front-month Dutch TTF Natural Gas contract, a key European gas benchmark, which has been driven by “forecasts of lower temperatures across Europe,” according to the Japan Organization for Metals and Energy Security (JOGMEC).

“Cold weather forecasts and expectations of low wind output in Central Europe next week led to rising European gas prices,” Energi Danmark further explained.

Underground gas storage across the EU stood at 35.2% as of 14 March, down from 36.8% the previous week and 40.9% lower than the same period last year, according to Gas Infrastructure Europe, as cited by JOGMEC.

Additionally, an increase in the estimated LNG bunker premium - from approximately $113/mt to $128/mt - has further contributed to the price rise.

Singapore

Singapore’s LNG bunker price has declined for the fourth consecutive week, reaching $814/mt. The drop was driven by “significant progress in the peace negotiations, easing geopolitical risks, and the expectation of a decline in global gas prices and demand decline due to the shoulder season,” JOGMEC said.  

The shoulder season is the period between peak summer and winter demand when gas prices typically fall due to lower consumption.

LNG inventories for power generation stood at 1.79 million mt on 9 March, reflecting a 190,000 mt decrease from the previous week, according to Japan’s Ministry of Economy, Trade and Industry (METI).

Asian LNG bunker prices generally track the NYMEX Japan/Korea Marker (JKM), which fell by $0.12/MMBtu over the same period, bringing the front-month contract to $13.64/MMBtu ($709/mt).

Meanwhile, Singapore’s $47/mt premium over Rotterdam has reversed within a week, turning into a slight $9/mt discount.

By Tuhin Roy

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