- Risavika LNG has gained 2.1 % week on week, reaching 26.37 EUR/MWh for April.
- European gas prices for front month are supported by low levels of inventories.
- which will start injection season next month, while there is still uncertainty about weather and supply conditions in April, reports Gasum.
Not to Increase Production
Benchmark oil prices continued to rise as OPEC+ agreed not to increase their production in April. Therefore, oil products also gained despite inventories build. Fuel oil 3.5 has gained 6.9 % and closed at 386.04 USD/t for front month contracts, low sulfur oil (MFO 0.5) has gained 4.9 % and closed at 493.6 USD/t, and marine gasoil (MGO 0.1) has increased by 3.3 % week on week and closed at 538.89 USD/t.
Alternative Investings
Shipowners are investing in alternative, non-oil-based fuels that offer a longer-term solution to meet future stricter regulations from the International Maritime Organization (IMO).
These alternative fuels, such as LNG, methanol, LPG, biofuel, ammonia, hydrogen and electricity, still amount to a mere 3.7% the world’s shipping fleet by tonnage. LNG is the most popular by a considerable margin, accounting for 3.5% of total ships in service and 26.6% of orders, according to International Gas Union (IGU), while the alternatives are yet to be proven commercially viable.
There are 128 ports worldwide now o offering LNG bunkering services, compared to 60 five years ago and 12 a decade ago. Further 70 ports will have bunkering facilities within the next three years.
LNG Risavika – LNG FOB Risavika
LBG Risavika 10 % – 10 % blend of Liquified Biogas
FO 3.5 FOB Rdam – European 3.5% Fuel Oil Barges FOB Rdam (Platts) Futures Quotes
MFO 0.5 FOB Rdam – European FOB Rdam Marine Fuel 0.5% Barges (Platts) Futures Quotes
MGO 0.1 FOB ARA – Gasoil 0.1% Barges FOB ARA (Platts) Futures Quotes
ULSD FOB ARA – European Diesel 10 ppm Barges FOB ARA (Platts) Futures Quotes
Source: CME Group, Gasum, IGU
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
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Source: Gasum
