Rotterdam LNG Bunker Prices Rise Amid Low EU Gas Storage Concerns

Rotterdam's LNG bunker prices have risen, reversing a two-week decline, while Singapore's prices held steady. The Singapore-ARA price spread narrowed to $134 per metric ton (mt) as of October 1. In Rotterdam, the LNG bunker price climbed by $12/mt to $1,432/mt, driven by a higher premium over the TTF. Meanwhile, Singapore's price dropped by just $1/mt to $1,566/mt, with the decline in the JKM (Japan/Korea Marker) offset by a higher bunker premium.

European natural gas prices received support from concerns over low storage levels, which are well below the seasonal norm of 87%. Daniel Hynes, senior commodity strategist at ANZ Bank, noted that storage is at its lowest level in at least 15 years, raising worries about winter supply shortages. Mind Energy also highlighted high concerns about winter supply, with EU gas storage at 72% full on October 2, up from 70% a week earlier but still 14% below the same period last year.

In Singapore, the LNG bunker price remained stable, with a lower JKM balanced by a higher premium. The JKM fell by $0.11 per MMBtu ($6/mt) to $25.71/MMBtu ($1,337/mt), but the premium over JKM increased to $4.41/MMBtu ($229/mt). The JKM saw fluctuations due to tight near-term fundamentals and potential disruptions in the Strait of Hormuz, but weakened Asian demand and expectations of a mild winter contributed to its decline.

Other developments in the LNG sector include the launch of an LNG-capable cruise ship by MSC Cruises in France, and a surge in orders for LNG-capable vessels, with 48 out of 69 placed in the month. French shipping company CMA CGM received its third LNG-capable newbuild, while Eastern Pacific Shipping took delivery of a new LNG dual-fuel pure car and truck carrier. Additionally, HD Hyundai Heavy Industries completed the Type Approval Test for its new LNG dual-fuel engine, and NYK Line launched the LNG dual-fuel LNG carrier Diamond Gas Nexus.