Rotterdam’s LNG bunker price has surged amid rising delivery costs, while Singapore’s price has remained steady, reports engine online.
Changes in weekly LNG bunker prices:
- Rotterdam up by $64/mt to $772/mt
- Singapore up by $2/mt to $783/mt
Rotterdam
Rotterdam’s LNG bunker price has gained by $64/mt in the past week. Part of this rise has come from a sharp rise in the underlying Dutch TTF Natural Gas contract.
LNG bunker delivery costs also went up, with an additional $18/mt added last week, bringing the delivery cost to $117/mt. This has added upward price pressure on the LNG bunker price in Rotterdam.
Although Ukraine’s gas transit accounts for only a small portion of Europe’s overall imports, countries such as Austria and Slovakia still heavily rely on these flows, according to Rystad Energy.
Moreover, maintenance work at France’s Montoir-de-Bretagne regasification terminal has been extended, potentially limiting LNG supply in the short term.
European gas storage is currently more than 86% full, much higher than the five-year average of 78%. However, the pace of refilling these reserves has been slower when compared on a year-on-year basis. As a result, current storage levels are slightly lower than they were at this time last year, when they stood at 87% full, according to ING’s Head of Commodity Research, Warren Patterson.
Singapore
Singapore’s LNG bunker price has inched up by just $2/mt. The Japan/Korea Marker (JKM) price saw a slight uptick last week.
This small increase has narrowed Singapore’s LNG bunker price premium over Rotterdam’s to just $11/mt.
In Japan and South Korea, the power generation sector constitutes a significant portion of total gas demand—59% and 43%, respectively.
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Source: Engine.online
