LNG bunker prices have climbed in key markets due to supply disruptions and increased demand. Rotterdam and Singapore are experiencing notable price hikes driven by regional issues and global supply dynamics.
Price Increases in Rotterdam
Rotterdam’s LNG bunker price rose by $20/mt to $688/mt over the past week. This increase aligns with the NYMEX Dutch TTF Natural Gas benchmark due to potential disruptions in Russian gas supplies. Concerns about the expiration of Gazprom’s transit deal with Ukraine and extended maintenance at Norway’s Karsto gas processing plant have added pressure. Despite high storage levels, these supply concerns have led to bullish market sentiment.
Singapore’s Price Hike
In Singapore, LNG bunker prices increased by $9/mt to $761/mt, influenced by the Japan/Korea Marker (JKM) price. East Asia’s spot LNG prices have risen significantly due to higher demand driven by India’s heatwave and Japan’s forecasted above-normal temperatures. The suspension of Australia’s Wheatstone LNG facility operations has further strained supply, contributing to the price surge.
Global Supply and Demand Dynamics
Global supply disruptions and regional demand spikes are affecting LNG prices. Europe’s high storage levels aim to reach 90% by November, but concerns over Russian gas and Norway’s extended maintenance persist. In Asia, strong demand from power sectors and weather-induced consumption are compounded by the Wheatstone facility’s uncertain outage, pushing prices higher.
These developments highlight the volatility in LNG markets, influenced by geopolitical issues and regional demand fluctuations.
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Source: ENGINE
