- Rotterdam and Singapore see weekly LNG bunker price drops.
- European market eyes potential gas supply deals amid uncertainty.
- Asian demand dips as countries reach winter stock levels.
LNG bunker prices in Rotterdam and Singapore have dropped over the past week due to anticipated European gas deals and seasonal reductions in Asian demand, reports Engine.
Rotterdam Price Drop
Rotterdam’s LNG bunker price fell by $37/mt, bringing it to $766/mt. This price trend aligns with movements in the NYMEX Dutch TTF Natural Gas contract.
Concerns remain over the expiring Russia-Ukraine gas deal, risking 15 billion cubic meters of annual EU gas supply.
Potential European Gas Deal
European buyers are discussing a supply deal with Azerbaijan to maintain Ukraine transit.
ING’s Warren Patterson indicated that this deal could provide optimism and buffer Europe’s winter needs.
Success in negotiations could ease potential winter gas shortages for the EU.
Singapore Price Decline
Singapore’s LNG bunker price decreased by $17/mt to $831/mt.
The reduction aligns with the NYMEX Japan/Korea Marker (JKM) contract changes.
Lower Demand in Asia
Major buyers in Asia, including Japan and South Korea, have ample winter LNG supplies, reducing current demand.
The “shoulder month” effect—a period of low buying between summer and winter—also contributed to the lower market activity.
Rystad Energy notes China’s high inventory levels, adding to the quiet market.
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Source: Engine
