Singapore’s LNG Bunker Price Surge More Than Rotterdam’s

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  • The LNG bunker markets in Rotterdam and Singapore are experiencing price increases due to varied factors.
  • The rush for LNG cargoes has been exacerbated by supply disruptions in Malaysia and Australia, contributing to the price gains in the European market.

The LNG bunker markets in Rotterdam and Singapore are experiencing price increases due to factors such as supply disruptions, maintenance activities and robust demand, particularly in the Asian market, reports Engine.

Rotterdam

Rotterdam’s LNG has increased by $20/mt to $639/mt last week. This increase has been driven by the underlying front-month NYMEX Dutch TTF Natural Gas benchmark, which has seen an uptick due to heavy maintenance activities at Norwegian gas facilities.

The maintenance covers the Troll gas field and the Kollsnes processing plant, which were offline for the majority of last week. Flows are anticipated to return to normal toward the end of May, but this will temporarily impact pipeline flows to Europe in the meantime, head of commodity research at ING Warren Patterson said.

Patterson highlighted that European storage levels are currently 67% full, slightly higher than the 65% recorded at the same time last year and significantly above the five-year average of 53%.

Although the recent gains seem overdone, the fundamental situation is still raising worries due to lower LNG supplies as Chinese demand remains high, as well as concerns over lower US exports and reduced Norwegian flows,” he said.

Energy consultancy firm Auxilione added that the maintenance events are planned and should not surprise the market. However, the main concern remains the timely return of these assets, which historically has been unreliable.

Singapore

Singapore’s LNG price has shot up by $41/mt to $751/mt in the past week. The movement is influenced by the upward trend in the underlying Japan/Korea Marker (JKM) gas benchmark and prevailing trends in the Asian LNG market.

The heatwave in India has notably boosted the country’s power sector’s LNG demand. Additionally, Chevron’s Gorgon processing plant in Australia continues to operate at reduced rates following a technical glitch with one of the liquefaction units.

Analysts at ANZ Bank noted that “the rally in global gas prices continued amid ongoing buying from importers.” Importers such as Japan and South Korea are restocking inventories ahead of the Northern Hemisphere summer, further driving demand.

The rush for LNG cargoes has been exacerbated by supply disruptions in Malaysia and Australia, contributing to the price gains in the European market.

Changes in weekly LNG bunker prices:

  • Rotterdam up by $20/mt to $639/mt
  • Singapore up by $41/mt to $751/mt

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Source: Engine