- Rotterdam’s LNG bunker price rises due to supply disruptions and heat waves.
- Singapore’s LNG bunker price falls with ample supply and high inventory.
- Regional heatwaves and supply issues drive market fluctuations.
Rotterdam’s LNG bunker price has risen by $22/mt to $652/mt in the past week. This increase reflects the upward trend in the front-month NYMEX Dutch TTF Natural Gas contract, reports Engine.
LNG Bunker Snapshot
The price rise in Rotterdam can be attributed to supply concerns at Freeport LNG, a significant source of European LNG supply. Freeport LNG, which accounted for 5.4% of Europe’s total LNG imports in 2023, faced supply disruptions due to Hurricane Beryl. The storm led to the cancellation of several LNG cargoes from the US-based export facility, pushing Rotterdam’s LNG price higher.
Reports indicate that at least 10 cargoes were canceled last week due to the outage at the LNG export plant, according to Warren Patterson, head of commodities strategy at ING. Additionally, an ongoing heatwave in southern Europe has further contributed to the price rise. Many Italian cities are experiencing temperatures above 40°C, with the heatwave expected to last until early August, as reported by Rystad Energy. These supply disruptions and warmer weather have combined to drive up the LNG price in Rotterdam.
In Singapore, the LNG bunker price has decreased by $11/mt, influenced by a lower NYMEX Japan/Korea Marker (JKM) price. The JKM price saw a temporary increase due to active deals for summer demand but fell afterward due to ample supply and high inventory levels, according to a report by the Japan Organization for Metals and Energy Security (JOGMEC).
High storage levels in Japan have mitigated some of the upward price pressures from regional heatwaves, reducing competition for spot LNG cargoes. This has alleviated some of the price pressures resulting from the Freeport LNG facility’s closure.
In South Korea, the planned maintenance of the Hanbit nuclear unit, which began on July 11 and is expected to end in early October, has not yet led to increased LNG buying from South Korean companies. These companies currently hold high inventories, as noted by Rystad Energy. Similarly, minimal spot buying from China has contributed to the price decrease in Singapore.
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Source: Engine
