LNG Bunker Snapshot: Rotterdam Sees Steeper Price Surge Compared To Singapore

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  • Recent data reveals a notable price increase in LNG bunker fuel, with Rotterdam experiencing a more substantial surge than Singapore.
  • The uptick in Rotterdam’s LNG prices, attributed to shifts in the TTF benchmark and geopolitical factors, contrasts with Singapore’s more modest price movement influenced by the Japan/Korea Marker (JKM) price and Asian LNG market trends.

Rotterdam’s Price Surge

  • Rotterdam’s LNG bunker price has risen significantly, climbing by $26/mt to reach $616/mt in the past week.
  • The increase is linked to shifts in the Dutch TTF Natural Gas contract, transitioning to the higher-priced June contract, alongside reduced Norwegian gas flows and increased heating demand across Europe.
  • Despite forecasts of mild weather in Northwest Europe and gradual recovery in Norwegian gas flows, delays in restarts like the Aasta Hansteen field may impact near-term LNG bunker prices in Rotterdam.

The recent surge in LNG bunker fuel prices in key maritime hubs like Rotterdam and Singapore has drawn attention to the evolving dynamics of the global energy market. As stakeholders in the shipping industry navigate fluctuating fuel costs, understanding the factors driving these price movements becomes paramount. Rotterdam’s significant price increase, attributed to shifts in benchmark contracts and geopolitical concerns, contrasts with Singapore’s more moderate uptick influenced by regional LNG market trends.

Singapore’s Modest Increase

  • Singapore has seen a more modest uptick in LNG bunker prices, rising by $7/mt to $674/mt, influenced by the Japan/Korea Marker (JKM) price and prevailing trends in the Asian LNG market.
  • Increasing spot LNG prices in Asia, driven by concerns over Russian gas supply to Europe amidst geopolitical tensions, have contributed to the slight rise in JKM price.
  • Singapore’s LNG bunker price premium over Rotterdam’s LNG has narrowed by $19/mt to $58/mt, with strong LNG imports in April and expectations of continued robust flows in the Asian market.

Outlook and Implications

  • Geopolitical concerns, maintenance activities at major LNG plants, and evolving market dynamics are expected to influence future LNG bunker prices in both Rotterdam and Singapore.
  • While Rotterdam may see downward pressure on prices due to mild weather forecasts and improved gas flows, Singapore’s prices could be impacted by ongoing geopolitical tensions and the influx of LNG imports.
  • Continued monitoring of global LNG market trends and geopolitical developments will be essential for stakeholders navigating the dynamic landscape of LNG bunker fuel pricing.

The recent price movements in LNG bunker fuel highlight the interconnectedness of global energy markets and the influence of various factors, from regional weather patterns to geopolitical tensions. As Rotterdam and Singapore navigate evolving market dynamics, stakeholders must remain vigilant and adaptive to capitalize on emerging opportunities and mitigate potential risks in the LNG bunkering sector.

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Source: Engine Online