LNG Bunker Snapshot: Singapore price rises on Asian spot market demand
Rotterdam’s LNG bunker price has declined due to lower natural gas prices and steady supply, while Singapore's price has risen on increased spot market activity and an outage in an Australian export facility.
PHOTO: A bunker vessel delivering LNG to a semi-submersible crane vessel in Rotterdam. Titan
Changes in weekly LNG bunker prices:
- Rotterdam down by $19/mt to $633/mt
- Singapore up by $5/mt to $765/mt
Rotterdam
Rotterdam’s LNG bunker price has declined by $19/mt in the past week. The port's benchmark has tracked the downward movement in the front-month NYMEX Dutch TTF Natural Gas contract.
The European gas benchmark has come down amid warmer-than-average temperatures across Europe. Warmer temperatures reduce the demand for gas for heating and allow suppliers to maintain high stockpiles.
The easing of LNG supply risks has also played a downward role, with natural gas flows to the Freeport LNG export plant in the US recovering after disruptions caused by Hurricane Beryl.
Natural gas storage levels in the European Union have continued to rise, currently standing at over 84% full capacity, compared to the five-year average of 75%, ING’s Warren Patterson said.
Meanwhile, France’s Montoir LNG terminal has extended its maintenance period for the fifth time, with operations now expected to restart in mid-August, Rystad Energy stated.
Singapore
Singapore's LNG bunker price has risen by $5/mt to $765/mt in the past week. This increase is driven by a higher NYMEX Japan/Korea Marker (JKM) price.
This uptick is attributed to increased buying activity in the spot market, where LNG is purchased for immediate delivery rather than through long-term supply contracts.
“Some Asian importers have shown interest in additional spot volumes during the northern hemisphere summer due to recent higher-than-expected temperatures,” Rystad Energy said
An unplanned outage at Australia's Ichthys LNG export facility has also supported the gas price rise. Since last Thursday, one of the two processing units (known as trains) at the Ichthys plant has been offline. The facility has a total gas capacity of 8.9 million mt/year.
Despite some buying interest in the Asian region, the overall price movement has been marginal due to sufficient inventory levels. However, a report from the Japan Organization for Metals and Energy Security (JOGMEC) indicated an increase in demand in the Indian market on Friday.
By Debarati Bhattacharjee
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