- Recent geopolitical calm has led to a downturn in LNG bunker prices, with Rotterdam and Singapore witnessing notable decreases.
- Rotterdam’s price fell by $7/mt to $590/mt due to high gas storage levels, while Singapore saw a $9/mt drop to $667/mt attributed to lower demand.
Rotterdam’s LNG bunker fuel price saw a $7/mt decline to $590/mt, reflecting drops in the NYMEX Dutch TTF Natural Gas benchmark and ample gas storage levels in Europe. The subdued gas demand, particularly in heating sectors, amidst a mild winter, contributed to the decline in TTF prices.
Despite the positive impact on gas consumers, concerns about price volatility and potential spikes in the upcoming winter persist. Ongoing maintenance works and limited pipeline supplies from Norway further restrict available volumes, contributing to market dynamics.
Singapore
Singapore’s LNG bunker fuel price dropped by $9/mt to $667/mt, influenced by trends in the Asian LNG market and the underlying JKM gas benchmark. Softened demand, attributed to geopolitical tensions easing and ample inventories, contributed to the price decline.
While LNG remains an attractive bunkering option, volatility in prices poses challenges for steady demand growth, particularly in sensitive regions like South Asia. Long-term pricing trends suggest a downward trajectory driven by market oversupply and over-investment, signaling potential shifts in demand patterns.
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Source: Engine Online
