Fuel Switch Snapshot: Gas supply risks lift Rotterdam’s LNG and LBM
All bunker prices described in the text below have been adjusted for calorific content to make them VLSFO-equivalent. They have estimated EU-EU voyage compliance costs included for Rotterdam, and nonEU-EU compliance costs included for Singapore. These account for EU ETS costs and FuelEU Maritime penalties, and the average price of compliance surpluses we have picked ...
Fuel supply risks have caused prices for liquefied natural gas (LNG) and liquefied biomethane (LBM) in Rotterdam to increase, driving up bunker costs for shipping companies. Diesel slow speed (diesel SS) engines in Rotterdam now face a wider discount compared to LNG, while high-speed medium (Otto) engines see a corresponding premium.
LBM prices in Rotterdam have widened their premiums over heavy fuel oil (HSFO) by $105-107/mt, while over VLSFO they have increased by $90-92/mt. In Singapore, LNG prices have narrowed their premiums over VLSFO by $1-2/mt, and discounts to LSMGO have expanded by $85-86/mt. Bunker prices for conventional fuels have risen by $38-137/mt in Rotterdam, with LSMGO leading the increase.
Dutch compliance costs have also climbed by €21/mtCO2e to €200/mtCO2e. Compliance buyers, not speculators, are behind the price surge. Tight supplies in the Rotterdam ARA have led to longer lead times for prompt bunker deliveries. Singapore's conventional fuel prices have similarly increased by $49-133/mt, with VLSFO in high demand despite subdued demand.
The Strait of Hormuz remains a major supply-side uncertainty, with LNG importers still seeking cargoes unaffected by the Middle East conflict.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
