LNG bunker prices have fallen in both Rotterdam and Singapore, influenced by reduced tensions in the Middle East.

Changes in weekly LNG bunker prices:

• Rotterdam down by $71/mt to $764/mt
• Singapore down by $66/mt at $787/mt

Rotterdam

Rotterdam’s LNG bunker price has dropped sharply after rising for three consecutive weeks. The decline follows a nearly 30% fall in the LNG bunker delivery premium, which has decreased to around $120/mt over the past week.

This price weakness is also linked to a 3% drop in the front-month Dutch TTF Natural Gas contract, a key benchmark for European gas prices. 

The Japan Organization for Metals and Energy Security (JOGMEC) attributed the price fall to “easing geopolitical tensions in the Middle East” and “increased supply from Norway.”

“De-escalation in the Middle East might ease concerns over potential LNG supply disruptions,” ING Bank analysts added.

TTF has declined “as the war premium is fading away following President Trump's announcement on the Iran-Israel ceasefire,” Greg Molnár, gas analyst at the International Energy Agency (IEA), noted.

As of 28 June, EU underground gas storage stood at 58.15%, up from 55.82% the previous week, though still 24% lower than the same time last year, according to data from Gas Infrastructure Europe.

“Demand is low, Europe is restocking ahead of the coming winter and LNG supply again looks healthy now that the threats from the Middle East have diminished, so the market is moving lower,” Mind Energy, formerly known as Energi Danmark, commented.

Singapore

Singapore’s LNG bunker price has slumped $66/mt lower over the past week, settling at $787/mt. A week ago, it held a $18/mt premium over Rotterdam, which has now widened to $23/mt.

Singapore’s LNG prices generally follow the NYMEX Japan/Korea Marker (JKM), whose front-month contract fell by $1.06/MMBtu ($55/mt) over the week to $13.20/MMBtu ($686/mt).

The price has fallen “as geopolitical tensions subsided following the announcement of a ceasefire between Israel and Iran and demand in Asia remained sluggish,” according to JOGMEC.

“Chinese LNG demand still weak,” Stephen Stapczynski, Energy Asia team leader at Bloomberg News, added.

He explained that China, the top LNG importer in 2024, has been buying less this year due to “strong flows of piped gas from Russia and Central Asia, and rising local production.”

On 25 June, Japan’s LNG inventories for power generation stood at 2.25 million mt, an increase of 110,000 mt from the previous week, according to the Ministry of Economy, Trade and Industry (METI).

Other LNG bunker news

South Korean shipbuilder HD Hyundai has teamed up with US shipbuilder Tampa Ship to build container ships capable of running on LNG and conventional fuels.

Meanwhile, OLT Offshore LNG Toscana (OLT) has introduced a new floating storage and regasification barge, enabling operators to load LNG onto bunker barges.

US shipping and logistics company Crowley has begun operating the American Energy, the first US-flagged LNG carrier to deliver domestically sourced LNG to Puerto Rico.

By Tuhin Roy

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