LNG Bunker Snapshot: Singapore's LNG price surges on supply concerns as Rotterdam remains rangebound
Singapore-ARA spread widens to $243/mt
TTF broadly steady with last week
JKM rises on renewed US-Iran tensions
Weekly changes in LNG bunker prices:
- Rotterdam up by $1/mt to $1,151/mt
- Singapore up by $53/mt at $1,394/mt
- Baltics up by $1/mt to $1,256/mt
Rotterdam
Rotterdam’s LNG bunker price has remained largely unchanged over the past week, tracking the relatively steady front-month Dutch TTF Natural Gas contract.
“Abundant tensions in the Middle East, underground gas storage levels remaining lower than usual, and reduced wind power generation” have supported TTF prices, while “forecasts of lower temperatures [in Europe]” have weighed on the benchmark, according to the Japan Organization for Metals and Energy Security (JOGMEC).
“Renewed tensions in the Gulf, together with higher cooling demand in Asia, is providing upward pressure on gas prices,” said International Energy Agency gas analyst Greg Molnár.
However, “a large majority of market players might still expect that the Hormuz disruption will be resolved ahead of the winter season, which would naturally ease up market conditions” adding downward pressure on prices, Molnár added.
The EU's underground gas storage facilities were 55.1% full on 24 July, up from 53.4% a week earlier. However, storage levels remained 17.1% lower than at the same time last year, according to Gas Infrastructure Europe.
“EU gas reserves, which provide a vital buffer against winter demand spikes, already started the year emptier than usual, and progress to refill them this summer has been slow,” commented Bloomberg News Energy Asia team leader Stephen Stapczynski.
Singapore
Singapore's LNG bunker price has jumped by $53/mt over the past week, to $1,394/mt. As a result, its premium over Rotterdam has widened from $191/mt a week ago, to $243/mt.
The increase mirrors gains in the front-month NYMEX Japan/Korea Marker (JKM), which Singapore's LNG bunker prices typically track. The JKM contract rose by $1.02/MMBtu over the week, to $22.00/MMBtu ($1,144/mt).
The rally has been driven mainly by escalating geopolitical tensions and supply concerns. “Tensions in the Middle East and growing supply concerns following attacks by Iran on Gulf countries and the announcement of a maritime blockade against Saudi Arabia by the Iran-backed Houthis,” have supported prices, according to JOGMEC.
Supply worries have also intensified after reports that “Qatar is preparing to extend its force majeure on LNG shipments through mid-October, a move that would prolong the global gas supply shock. Several buyers in… Asia said separately they are expecting a formal notification soon,” Bloomberg's Stephen Stapczynski noted.
At the same time, rising seasonal demand is expected to add further pressure. “Competition for LNG is going to intensify as high temperatures in Asia increase demand,” ANZ Bank's senior commodity strategist Daniel Hynes said.
Elsewhere in the LNG bunker sector, Houston-based Stabilis Solutions plans to begin commercial operations at its LNG bunkering facility at the Port of Galveston in the third quarter of 2028.
French shipping company CMA CGM has taken delivery of its latest LNG-capable newbuild, CMA CGM Pantheon.
About 77,000 mt of LNG was bunkered in Antwerp-Bruges during the second quarter, marking a 13% decline from the same period last year.
UK-based bunker supplier Avenir LNG has launched the first of two new LNG bunker vessels.
Geneva-based MSC Cruises has started sea trials of its LNG dual-fuel cruise ship MSC World Asia ahead of its scheduled debut in December.
Meanwhile, LNG industry association Sea-LNG has been granted official non-governmental consultative status by the IMO.
By Tuhin Roy
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