LNG bunker prices rose in Rotterdam and Singapore, spurred by colder temperatures that boosted European demand and strong pre-winter buying across Asia.

PHOTO: Peninsula's bunker supply vessel Levante LNG delivering LNG to Silver Nova in Gibraltar. Peninsula

Changes in weekly LNG bunker prices:

• Rotterdam up by $23/mt to $803/mt
• Singapore up by $27/mt to $848/mt

Rotterdam

Rotterdam's LNG bunker price has climbed by $23/mt to $803/mt in the past week. Dropping temperatures in Europe have spurred early heating demand, partly driving the price increase.

As temperatures dipped, European buyers began securing additional LNG to meet seasonal needs, pushing gas prices higher, said ING’s Warren Patterson.

A minor production outage in Norway further fuelled the price increase, tightening supply just as demand started to rise.

Additionally, several marginal storage withdrawals last week left reserves slightly below expectations as Europe heads into the winter heating season, added Patterson.

Although European storage remains over 95% full, the unexpected draws have left reserves somewhat lower than anticipated, reducing the comfortable buffer the market initially expected.

Furthermore, tensions in the Middle East have added a layer of uncertainty, prompting European buyers to take precautionary measures and secure LNG cargoes in advance to mitigate potential supply disruptions, which also contributed to the price uptick.

Singapore

Singapore's LNG bunker price has risen by $27/mt to $848/mt. This increase has been driven by a higher NYMEX Japan/Korea Marker (JKM) price mainly due to increasing demand across Asia as preparations for winter ramp up.

Japan, South Korea, and other major Asian importers ramped up their LNG imports last week, influencing prices across neighbouring markets, including Singapore.

Kpler data indicates that Asian LNG imports surged by 19% compared to the previous week, as regional buyers sought to secure long-term contracts to avoid supply shortages during peak winter demand.

Rystad Energy’s senior analyst, Masanori Odaka, noted that buyers are prioritizing early purchases to manage anticipated seasonal demands, which has continued to drive up Singapore’s LNG bunker price.

By Debarati Bhattacharjee

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