LNG Bunker Snapshot: Rotterdam’s price drops as its bunker delivery premium weakens
Rotterdam’s LNG bunker price has slipped as premiums declined, while Singapore’s has climbed, widening its price premium over Rotterdam.
Weekly changes in LNG bunker prices:
- Rotterdam down by $18/mt to $666/mt
- Singapore up by $18/mt at $692/mt
Rotterdam
Rotterdam’s LNG bunker price has dropped by $18/mt over the past week to $666/mt, largely because LNG bunker premiums fell 9%, slipping from about $131/mt to $120/mt.
The front-month Dutch TTF Natural Gas contract, a key European benchmark, also dipped by 1%, adding to the downward pressure.
“The US-brokered peace deal between Russia and Ukraine is still easing concerns of tightness in the market. Russia still contributes about 10% of the European Union’s gas needs. This weighed on sentiment in the European gas market,” said Daniel Hynes, senior commodity strategist at ANZ Bank.
“Reports of peace talks between Russia and the US weighed on (European LNG) prices,” analysts at ING Bank noted.
“TTF prices continued their downward trend… amid the continued ramp-up of LNG supplies, primarily from the United States,” Greg Molnár, gas analyst at the International Energy Agency (IEA), added.
Singapore
Singapore’s LNG bunker price has climbed sharply over the past week, rising by $18/mt to $692/mt. This pushes the port’s previous $10/mt premium over Rotterdam to a wider $26/mt.
Prices in Singapore generally track the NYMEX Japan/Korea Marker (JKM), whose front-month contract increased by $0.34/MMBtu to $11.47/MMBtu ($596/mt).
“North Asia LNG prices in the spot market jumped to a two-month high, aided by a surge in spot freight rates,” according to ANZ Bank’s Daniel Hynes.
After a September dip, LNG sales rebounded by 25% in October in Singapore, with average daily volumes rising by roughly 400 mt to 2,000 mt. Total LNG sales from January to October reached nearly 462,000 mt, up from 388,000 mt in the same period last year.
Other LNG bunker news
Finnish state-owned energy firm Gasum has begun posting daily FuelEU pooling values, showing a FuelEU Maritime compliance surplus of €227/mtCO₂e ($263/mtCO₂e) on Wednesday.
Oslo-headquartered shipping company Norwegian Car Carriers has received the first of three LNG dual-fuel car carriers under construction at Raffles Yantai Shipyard in China.
LNG supplier Molgas has completed the UK’s first LNG de-gassing operation on an LNG-powered vessel. Poland’s Świnoujście port has also carried out its first ship-to-ship LNG bunkering operation.
By Tuhin Roy
Please get in touch with comments or additional info to news@engine.online
