- LNG bunker prices have surged due to heatwaves in Southern Europe driving up demand.
- Supply constraints from Norway have exacerbated the situation.
- Rotterdam and Singapore have both seen significant price increases.
The global LNG bunker fuel market has experienced a significant surge in recent weeks. This upward trend is primarily attributed to increased demand driven by the ongoing heatwave in Southern Europe. As countries like Spain, Portugal, and France grapple with soaring temperatures, the demand for electricity has surged, leading to a corresponding increase in LNG consumption for power generation.
Supply constraints
In addition to heightened demand, supply constraints have further amplified the price increase. Production disruptions at Norwegian gas fields have reduced LNG availability, contributing to the upward pressure on prices. The combination of increased demand and limited supply has resulted in a substantial price hike for LNG bunker fuel.
Rotterdam and Singapore impacted
Rotterdam, a major bunkering hub, has witnessed a sharp increase in LNG bunker prices, reaching $708/mt. Singapore has also experienced a rise, with prices reaching $781/mt. This significant price differential between LNG and conventional bunker fuels poses a challenge for shipowners seeking to balance cost and environmental considerations.
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Source: Engine Online
