The COVID-19 pandemic has not faltered the LNG-fueled fleet, reports Gasum.
Drop in global LNG receipts
Risavika LNG front month (Jan) has dropped by 1.6% week on week to 24.10 EUR/MWh on milder weather forecast, thus, lower demand from power sector. Global LNG receipts fell to 29.7 million mt in November from 30.9 million mt a year earlier, according to Argus Media.
The drop was mainly the result of European demand shrinking by nearly 30% to 5.85 million mt. Poland and Lithuania were the only two markets in the region that recorded a slight increase in deliveries last month.
Fuel oil rise
Oil products has gained 0.4-2.5% during last week on draw from inventories in ARA and hopes for demand recovery, despite the decision of OPEC+ increase oil production by 500 000 BBL/D from January 2021.
Fuel oil 3.5 front month has increased by 0.6% to 274.89 USD/t, low sulfur oil (MFO 0.5) has increased by 0.4% and closed at 348.66 USD/t, and MGO 0.1 has increased by 2.2% week on week and closed at 395.02 USD/t.
COVID hampers demand growth
Relatively small investments may be needed to complete the supply chain for LNG as a maritime fuel. However, the economic downturn stemming from the Covid-19 pandemic may hamper demand growth by slowing investment decisions in building new LNG-fueled ships or conversions of existing vessels.
Despite that the number of LNG-fueled vessels has reached 211 at present, up from 194 at the end of 2019, according to Argus Media.
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Source: Gasum
