Rotterdam’s LNG bunker price has increased due to higher bunker premiums, while Singapore’s price held steady, supported by the stable front-month NYMEX Japan/Korea Marker (JKM) contract.

Changes in weekly LNG bunker prices:

• Rotterdam up by $29/mt to $790/mt
• Singapore steady at $753/mt

Rotterdam

Rotterdam’s LNG bunker price has climbed sharply for the second week in a row, reaching $790/mt. The rise was largely driven by an 8% increase in LNG bunker premiums, which jumped to around $146/mt over the past week.

LNG prices also found support from the front-month Dutch TTF Natural Gas contract—a key European gas benchmark—which rose nearly 3% to $12.39/MMBtu ($644/mt).

According to the Japan Organization for Metals and Energy Security (JOGMEC), TTF gains were backed by “a decrease in gas supply from Norway and a decrease in renewable energy generation.”

JOGMEC further noted that “unplanned maintenance in Norway and rising tensions caused by Israeli air strikes on Iran” contributed to additional upward pressure on prices.

“As concerns grow over supply disruptions from Norway due to unplanned outages, along with scheduled maintenance,” prices in Europe have been further supported, said Warren Patterson, head of commodities strategy at ING Bank.

LNG prices “rose noticeably on the increased Middle East tensions”, noted Mind Energy, formerly known as Energi Danmark. 

As of 13 June, EU underground gas storage levels reached 53%, up from 50.5% the previous week, though still 27.1% lower than the same time last year, according to data from Gas Infrastructure Europe.

Singapore

Singapore’s LNG bunker price has remained steady from the previous week, mirroring the stability of the front-month NYMEX Japan/Korea Marker (JKM), which Asian LNG bunker prices typically track.

As a result, Singapore’s modest $8/mt discount to Rotterdam has widened nearly fivefold over the past week, reaching $37/mt.

According to JOGMEC, “sluggish demand in Asia” put downward pressure on the JKM. However, this was offset by “increased summer demand” and “rising geopolitical tensions following Israel's attack on Iran.”

The temperature outlook across East Asia remains elevated. Japan’s Meteorological Agency has assigned a 70% probability of above-average temperatures through the end of June. Many regions in China are already experiencing temperatures above the seasonal average, which could drive up gas-for-power demand until the end of the month, Rystad Energy commented.

As of 11 June, Japan’s LNG inventories for power generation stood at 2.34 million mt, an increase of 90,000 mt from the previous week, according to data from the Ministry of Economy, Trade and Industry (METI).

Meanwhile, Singapore’s LNG bunker sales increased for the third consecutive month, reaching 45,000 mt in May, up 3,000 mt from April.

Other LNG bunker news

Ningbo-Zhoushan Port has delivered a total of 106,000 cbm (47,382 mt) of LNG in the first five months of the year, according to Zhejiang Seaport Group. Meanwhile, Finland’s state-owned energy firm Gasum has launched a green freight corridor using bio-LNG to transport steel coils from Finland to Sweden. German shipping company Hapag-Lloyd has received its 12th LNG-capable dual-fuel vessel, with one of its ships becoming the first to be bunkered with LNG while unloading cargo in Hong Kong.

Singapore-based Pacific International Lines (PIL) has also launched the second of four LNG dual-fuel container ships under construction at China’s Yangzijiang Shipbuilding.

By Tuhin Roy

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