Last week saw notable fluctuations in LNG bunker prices, with Rotterdam experiencing a significant surge due to supply disruptions, while Singapore’s prices remained stable amid resumed production. Here’s a brief overview of the key factors driving these changes.
Rotterdam’s Price Surge
Rotterdam’s LNG bunker price rose by $44/mt to $683/mt, driven by disruptions at Norway’s Nyhamna gas plant and potential issues with Russian gas imports. The unplanned outage at Nyhamna, operated by Gassco, significantly impacted the European LNG market. Additionally, warnings from Austrian supplier OMV about Russian supply disruptions further exacerbated the situation, contributing to the highest TTF contract levels this year.
Singapore’s Stability
In contrast, Singapore’s LNG bunker price remained stable, with a slight decline of $2/mt to $749/mt. The stability was largely due to Chevron’s Gorgon LNG terminal in Australia resuming full production after addressing a mechanical fault. This resumption helped maintain a steady supply, narrowing the price premium over Rotterdam from $112/mt to $66/mt.
Broader Market Implications
These price movements reflect broader market dynamics, including geopolitical influences and supply chain adjustments. Germany’s decision to terminate its gas storage levy by January 2025 and potential non-renewal of Ukraine’s gas transit deal with Russia underscore the shifting landscape. Additionally, the continued growth in LNG-fuelled ships, as highlighted by DNV’s addition of eight new vessels, indicates a robust interest in alternative fuels within the shipping industry.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: ENGINE
