Fuel Switch Snapshot: B100 and LBM FuelEU pooling values rise

B100 and LBM potential pooling values shoot up

LBM $950-1,200/mt cheaper than LSMGO

Singapore B100-VLSFO spread near $150/mt

FuelEU Maritime pooling values have jumped, making B100 and liquefied biomethane (LBM) compliance surplus significantly more valuable for shipowners. OceanScore's FuelEU pooling index has climbed €36/mtCO2e higher over the past week.

The rise has pushed B100's potential pooling value up by $113/mt to $710/mt. LBM's potential pooling value has gone up by $157-185/mt to $985-1,155/mt for EU-EU voyages, depending on engine type.

For EU-nonEU routes, B100's potential pooling value has increased by $57/mt to $355/mt.

The surge has widened price gaps between bio-based fuels and conventional fuels.

Rotterdam B100's discounts to VLSFO and LSMGO have deepened by $163/mt and $99/mt, to $375/mt and $822/mt, respectively.

LBM discounts to LSMGO have widened by $96-122/mt, to $979-1,208/mt, while discounts to LNG have surged $153/mt higher to $524-530/mt, depending on engine type.

In Singapore, B100's premium over VLSFO has narrowed by a sharp $105/mt to $154/mt.

Liquid fuels

Rotterdam’s VLSFO price has gained $56/mt over the past week, overshooting a $14/mt rise in the front-month ICE Brent futures contract.

The port’s B100 price has dropped $107/mt lower for EU-EU voyages, with a sharp rise in FuelEU potential pooling values adding downward pressure on effective costs.

Dutch ZRE A tickets have remained unchanged, with one source quoting them in the €120-130/mtCO2e range.

Combined with Dutch ZRE A tickets, the rise in FuelEU potential pooling values effectively reduces the net cost of B100 bunkered in Rotterdam and used on EU-EU voyages to $722/mt.

Singapore’s VLSFO price has risen $49/mt higher while its B100 price has fallen $56/mt lower over the past week.

Liquid gases

Gas prices have again rallied on the persistent Strait of Hormuz closure, which has cut off a fifth of LNG supply, ANZ Bank commodity strategist Daniel Hynes said. State-owned producer Qatar Energy has extended a force majeure until mid-June and global LNG export volumes fell to 33 million mt in April, he pointed out.

Rotterdam LNG bunker prices have gained $46/mt for vessels with Otto medium speed (Otto MS) engines and by $20/mt for those with diesel slow speed (diesel SS) engines.

LNG bunkered by vessels with diesel SS can generate a significant compliance surplus due to the engine's low methane slip. Its potential pooling value has risen by $27/mt to $171/mt, which has countered the rise in the underlying gas price.

Rotterdam's LBM prices have fallen $107-133/mt lower over the past week.

Singapore's LNG bunker prices have gained $11/mt for vessels with Otto MS engines, but slipped $2/mt lower for those with diesel SS engines.

By Konica Bhatt

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