- Rotterdam’s LNG bunker prices rose by $23/mt to $803/mt, driven by early heating demand, storage withdrawals, and Middle East tensions.
- Singapore’s LNG bunker prices rose by $27/mt to $848/mt due to increasing demand in Asia and higher JKM prices.
- Precautionary purchases for winter fuel demand have pushed up LNG prices in both Europe and Asia.
Rotterdam’s LNG bunker price rose by $23/mt to $803/mt in the past week as colder temperatures in Europe spurred early demand for heating, reports Engine.
Increased Seasonal Demand
Dropping temperatures led European buyers to start securing additional LNG to meet anticipated seasonal needs, pushing gas prices higher, according to ING’s Warren Patterson.
A minor production outage in Norway compounded the price hike, tightening LNG supply as demand ramped up.
Early Storage Withdrawals
Early withdrawals from European LNG reserves left inventories slightly below projections as the winter season begins, explained Patterson. European storage levels remain over 95% full, but unexpected draws reduced the market’s anticipated supply cushion.
ncreasing tensions in the Middle East contributed to the price rise, as European buyers preemptively secured LNG cargoes to mitigate possible supply disruptions.
LNG Bunker Price Increase
Singapore’s LNG bunker price rose by $27/mt to $848/mt, driven by increased demand across Asia and a higher NYMEX Japan/Korea Marker (JKM) price.
Japan, South Korea, and other key Asian importers ramped up LNG imports last week in preparation for winter, influencing prices in Singapore and neighboring markets.
Significant Surge in LNG Imports
According to Kpler data, Asian LNG imports surged by 19% compared to the previous week. Regional buyers focus on securing long-term contracts to avoid supply issues during peak winter demand.
Masanori Odaka, Rystad Energy’s senior analyst, noted that Asian buyers are prioritizing early purchases to manage seasonal demand, a trend that continues to elevate Singapore’s LNG bunker prices.
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Source: Engine
