- LNG now costs $100/mt more than VLSFO
- Bio-premiums narrow in Rotterdam
- Dutch biofuel rebates for B30 surpass $100/mt
LNG bunker prices have increased by $19–22/mt in Singapore and Rotterdam over the past week, pushing price premiums over VLSFO to over $100/mt in both ports, reports Engine.
Rotterdam’s VLSFO-equivalent LNG grade is now $118/mt more expensive than VLSFO. This is without estimated EU Allowance (EUA) costs included in the price. With EUA costs the premiums are lower at $107–113/mt.
In Singapore, LNG costs $100/mt more than VLSFO without EUAs, and $95/mt more with EUAs. Rotterdam LNG’s discount to its B24-VLSFO HBE blend has narrowed by $26/mt over the past week, to $46/mt. The LNG-biofuel price gap is smaller in Singapore, where VLSFO-equivalent LNG is $32/mt cheaper than B24-VLSFO UCOME.
Singapore has surpassed Rotterdam to become the world’s largest biofuel bunker hub. Rotterdam sold 137,000 mt of bio-blended bunkers in the third quarter of this year, about 40% less than the 227,000 mt sold in Singapore during the same period.
Singapore’s B24-VLSFO UCOME is priced around $22/mt higher than the rebated B24-VLSFO HBE price in Rotterdam, which includes POMEME-based biofuels. In contrast, Rotterdam’s B24-VLSFO UCOME is about $55/mt more expensive than its Singapore equivalent, as UCOME blends do not qualify for Dutch advanced biofuel rebates.
VLSFO
Rotterdam’s VLSFO price has remained unchanged over the past week, caught between constrained supply and softened demand. Fuel availability has tightened across all grades in the broader ARA region.
But lower demand has put downward pressure on Rotterdam’s VLSFO price, amidst a $2.99/bbl ($22/mt) rise in the front-month ICE Brent futures contract.
Singapore’s VLSFO has gained $11/mt in the past week. VLSFO availability in the port remains tight, with recommended lead times of around 13 days. Some suppliers can accommodate stems with shorter lead times of about four days, but these are usually priced higher.
Biofuels
Singapore’s B24-VLSFO UCOME price has risen by $11/mt over the past week, driven up by increases in prices for conventional VLSFO and used cooking oil methyl ester (UCOME). PRIMA Markets assessed the UCOME FOB China benchmark at $970/mt on Friday, up by $20/mt from the week prior.
Rotterdam’s B24-VLSFO HBE price has declined by $7/mt, while its B24-LSMGO HBE price has climbed by $22/mt in the past week.
The Dutch Advanced HBE ticket price for B30-VLSFO HBE blends has moved beyond $100/mt in the past week. This increases the theoretical rebates that suppliers can pass on to traders and buyers.
LNG
Rotterdam’s LNG bunker price has climbed by $19/mt in the past week. As temperatures dipped, European buyers began securing additional LNG to meet seasonal needs, pushing prices higher, said ING’s Warren Patterson.
Singapore’s LNG bunker price has risen by $22/mt in the past week. Japan, South Korea and other major Asian importers ramped up their LNG imports last week. This has driven prices up across neighbouring markets, including Singapore.
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Source: Engine
