LNG Bunker Snapshot: Rotterdam's price rises on bullish market sentiment

Rotterdam’s LNG bunker price has risen on the back of bullish market sentiment, while the increase in Singapore is driven by a shift in market focus toward summer demand trends.

Changes in weekly LNG bunker prices:

• Rotterdam up by $17/mt to $740/mt
• Singapore up by $31/mt to $756/mt

Rotterdam

Rotterdam’s LNG bunker price has risen by $17/mt over the past week, reaching $740/mt. This increase is linked to a 2% rise in the front-month Dutch TTF Natural Gas contract, a key benchmark for European gas prices.

The price hike reflects the market’s bullish response “to the lack of progress in peace negotiations between the US and Russia,” according to the Japan Organization for Metals and Energy Security (JOGMEC).

The rise was further supported by “the upcoming maintenance work and ensuing lower supply from Norway to the continent,” Energi Danmark noted.

Additionally, a slight increase in LNG bunker premiums have contributed to the price gain, as premiums edged up from around $130/mt to $135/mt during the same period.

As of 23 May, EU underground gas storage stood at 45.7%, up from 44.2% the previous week, though still 32.9% lower than a year earlier, according to data from Gas Infrastructure Europe.

Singapore

Singapore’s LNG bunker price has climbed for the third consecutive week, reaching $756/mt. This increase is linked to a 5% rise in the front-month NYMEX Japan/Korea Marker (JKM), which went up by $0.59/MMBtu, bringing the contract to $12.49/MMBtu ($649/mt). Asian LNG bunker prices typically track the JKM benchmark.

The upward movement in JKM has been driven by “a lack of progress in peace negotiations for the Ukrainian war and a shift in market focus to summer trends,” JOGMEC noted.

Major Asian countries like Japan and South Korea usually import more LNG for power generation when air condition demand increases in the summer. Temperatures typically get higher between June and September.

As a result, Singapore’s LNG price has shifted from near parity with Rotterdam to a premium of $16/mt.

Meanwhile, as of 18 May, LNG inventories for power generation stood at 1.98 million mt, up by 40,000 mt from the previous week, according to Japan’s Ministry of Economy, Trade and Industry (METI).

Other LNG bunker news

Mitsubishi Heavy Industries has begun testing a methane slip reduction system on an LNG bunker vessel.

MSC Cruises has ordered two additional LNG-capable cruise ships. The new vessels are expected to be delivered between 2029-2030.

Hapag-Lloyd has bunkered two of its dual-fuel vessels with a combined 4,800 mt of liquefied biomethane (LBM) in Europe. This marked the company's first LBM bunker operation as part of a low-emission fuel tender issued by the Zero Emission Maritime Buyers Alliance (ZEMBA).

Meanwhile, Norwegian vehicle carrier Höegh Autoliners announced that its latest LNG-capable vessel has departed from a shipyard in China.

By Tuhin Roy

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