LNG Bunker Snapshot: Singapore’s LNG discount to Rotterdam widens
Rotterdam’s LNG bunker price has surged due to concerns over colder weather and low wind power output, while Singapore’s price has inched up on supply concerns.
Changes in weekly LNG bunker prices:
- Rotterdam up by $56/mt to $956/mt
- Singapore up by $11/mt to $864/mt
Rotterdam
Rotterdam's LNG bunker price has surged for the second consecutive week, rising by $56/mt over the past week to reach $956/mt. This sharp increase is linked to an almost 11% rise in the front-month Dutch TTF Natural Gas contract, a key European gas benchmark.
The price hike has been driven by “continued forecasts of falling temperatures and reduced wind power output across Europe,” according to the Japan Organization for Metals and Energy Security (JOGMEC).
Energi Danmark also noted that “expectations of an upcoming cold spell accompanied with low wind output drove prices.”
According to Gas Infrastructure Europe, the underground gas storage rate across the EU was 53.6% as of 31 January, down from 56.5% the previous week and 23.1% lower than the same period last year, as reported by JOGMEC.
Singapore
Singapore's LNG bunker price has risen by $11/mt over the past week, driven by “supply concerns over the week as a whole due to the continued outflow of cargoes to Europe,” according to JOGMEC.
That places Singapore's price $92/mt below Rotterdam's, down from $47/mt a week ago.
Asian LNG bunker prices typically remain closely tied to NYMEX Japan/Korea Marker (JKM) values. The front-month JKM contract has risen by $0.33/MMBtu ($17/mt) to $14.44/MMBtu ($751/mt) over the same period.
By Tuhin Roy
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