LNG Bunker Snapshot: Singapore’s price falls on weak demand and ample supply

Rotterdam’s LNG bunker price has eased with a weaker European gas benchmark, while Singapore’s has fallen amid sluggish broader Asian demand and ample regional LNG supply.

Weekly changes in LNG bunker prices:

• Rotterdam down by $7/mt to $708/mt
• Singapore down by $13/mt at $671/mt

Rotterdam

Rotterdam’s LNG bunker price has declined by $7/mt, largely driven by a 3% fall in the front-month Dutch TTF Natural Gas contract, a key benchmark for European gas prices.

The TTF price has eased due to stable supplies from the Norwegian continental shelf, mild weather conditions, and strong wind power generation, according to the Japan Organization for Metals and Energy Security (JOGMEC).

“Overall sentiment is right now very bearish,” said Mind Energy, formerly Energi Danmark, adding that “flows from Norway have improved, demand is low, the weather forecasts rather mild and there are no major geopolitical concerns to cause any uncertainty.”

“A strong recovery in Norwegian piped gas deliveries, together with healthy LNG inflows put downward pressure on gas prices,” noted Greg Molnár, gas analyst at the International Energy Agency (IEA).

EU underground gas storage reached 82.6% on 3 October, up from 82.2% the previous week but still 12.8% lower year-on-year, based on data from Gas Infrastructure Europe.

Singapore

Singapore’s LNG bunker price has fallen by $13/mt over the past week, pressured by sluggish spot demand “due to ample LNG inventories and ample supply in Northeast Asia,” according to JOGMEC.

The decline aligns with a $0.26/MMBtu drop in the NYMEX Japan/Korea Marker (JKM) benchmark over the week, bringing the front-month contract to $11.04/MMBtu ($574/mt).

“Improving LNG availability and persisting demand weakness is weighing on regional (Asian) gas prices. China's LNG imports plummeted… amid weaker demand, higher domestic production and the continued ramp-up of Russian piped gas deliveries via Power of Siberia,” said IEA’s Greg Molnár.

Consequently, Singapore’s previous $31/mt discount to Rotterdam has widened to about $37/mt within a week.

Other LNG bunker news

Energy firm Axpo supplied 3,000 cbm (about 1,341 mt) of liquefied biomethane (LBM) to a container ship at Spain’s Port of Malaga.

Meanwhile, Italian shipbuilder Fincantieri has signed an agreement with Germany’s TUI Cruises to design and build two LNG dual-fuel cruise ships, set for delivery in 2031 and 2032. Fincantieri has also handed over a second LNG dual-fuel cruise ship to US-based Princess Cruises at its Monfalcone yard in Italy.

By Tuhin Roy

Please get in touch with comments or additional info to news@engine.online