- VLSFO availability remains tight in Singapore
- LNG prices soar above VLSFO and LSMGO
- Dutch HBE rebates become more attractive
LNG bunker prices have risen in both Singapore and Rotterdam and moved to wider premiums over conventional fuels, reports Engine.
Rotterdam’s LNG premium over LSMGO has shot up from $5/mt to $35/mt, and $22-28/mt with estimated EU Allowances (EUAs) included in the prices.
LNG bunker suppliers in the ARA have been seeing some switching from LNG to conventional fuels lately, especially for smaller stems.
In Singapore, LNG’s premium over its LSMGO has widened by $21/mt to $88/mt without estimated EUAs, and to $81/mt with.
Rotterdam’s B24-VLSFO HBE remains at a $63/mt price discount to its B24-LSMGO HBE. In Singapore, B24-VLSFO UCOME is only $14/mt cheaper than B24-LSMGO UCOME.
VLSFO
Rotterdam’s VLSFO has been unchanged in the past week despite a $2.41/bbl ($18/mt) decline in front-month Brent futures.
Prompt availability of VLSFO is still good in Rotterdam, a trader told ENGINE. Demand for the grade has been muted, a source added. These countering factors seem to have kept prices stable without significant movements in either direction.
Singapore’s VLSFO benchmark has also remained rather steady, with only a $5/mt decline amid persistently tight availability.
Biofuels
Rotterdam’s B24-VLSFO HBE and B24-LSMGO HBE prices have declined by $8-9/mt in the past week, partly because of a $15/mt drop in the underlying PRIMA POMEME CIF ARA price.
The estimated Dutch HBE rebate for B30-VLSFO HBE has now risen to $90/mt, a level last seen in April. This makes POMEME-based biofuel blends even more attractive in Dutch ports as these blends qualify for Dutch advanced HBE rebates.
Singapore’s B24-VLSFO UCOME price has shed $9/mt and its B24-LSMGO UCOME price has declined by a greater $13/mt, amid a drop in the underlying UCOME FOB China price.
Despite a falling UCOME FOB China price, buying interest has been tepid. “The Chinese waste-based biodiesel market declined on Friday, as fresh offers indicated faltering confidence amongst sellers, especially as overseas demand remains limited lately,” PRIMA said.
LNG
Rotterdam’s VLSFO-equivalent LNG bunker price has soared by $29/mt in the past week.
Europe’s gas market is facing supply concerns due to planned outages in Norway and maintenance at Medgaz, a key gas pipeline between Algeria and Spain. Medgaz has a capacity of 10.16 billion cbm/year.
Singapore’s LNG bunker price has increased by $10/mt. This increase has been driven by a higher NYMEX Japan/Korea Marker (JKM) price.
Asia’s gas inventories are under pressure from demand for air conditioning in the region, though spot buying has been limited. Japan’s power company Jera has reportedly secured spot deliveries for the upcoming winter months, Rystad Energy added.
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Source: Engine
