LNG bunker prices have dropped alongside falling delivery margins in Rotterdam and weaker summer demand in Singapore.
Changes in weekly LNG bunker prices:
- Rotterdam down by $34/mt to $630/mt
- Singapore down by $8/mt to $771/mt
Rotterdam
Rotterdam’s LNG bunker price has declined by a steep $34/mt in the past week. Part of this drop has come as a result of a sharp decline in the front-month NYMEX Dutch TTF Natural Gas contract.
But it has also fallen because LNG bunker delivery costs are estimated to have gone down by $18/mt on the week, to $99/mt. More suppliers have been offering on LNG enquiries and this boosts competition in favour of negotiating prices down, a source says.
Europe’s ample gas stockpiles have contributed to keep the TTF benchmark price below $11/MMBtu ($572/mt) in recent weeks.
If the weather gets hot in Europe and people use more air condition, it could boost demand from the power sector and play a crucial role in mid-July and August.
Singapore
Singapore’s LNG bunker price has come down by $8/mt in the past week, driven by a lower NYMEX Japan/Korea Marker (JKM) price.
According to a report by the Japan Organization for Metals and Energy Security (JOGMEC), the JKM price trended downward last week due to low demand.
This has also increased hydropower output, which is more competitive in price compared to gas during the monsoon season, the energy research company added. Hydropower plants generate electricity using water, which is abundant during the monsoon, making it a cheaper alternative to gas.
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Source: Engine.online
