Fuel Switch Snapshot: Gas prices soar in Singapore

Rotterdam LBM discounts to LSMGO cross $800-1,000/mt

Singapore’s LNG jumps over $300/mt in two weeks

Singapore LNG flips to discount to VLSFO for diesel SS engines

The sharp price rally seen in Rotterdam's LNG prices over the past month has cooled off this week.

LNG’s premium over VLSFO in Rotterdam has widened by $33/mt to $148/mt for vessels with Otto medium speed (Otto MS) engines.

For diesel slow speed (SS) engines, LNG remains at a discount to VLSFO, but its has narrowed by $28/mt to $54/mt.

Rotterdam LNG’s discounts to LSMGO have widened by $30–35/mt to $435–637/mt.

LBM discounts to LSMGO have expanded to $830–1,046/mt, which is up by $254–255/mt since the first week of March.

Rotterdam's B100 price has held steady over the past week, flipping the biofuel grade to a $15/mt premium over 0 gCO2e LBM for Otto MS engines, from a discount last week.

Meanwhile, Singapore’s LNG prices have continued to surge, rising by $103–106/mt over the past week.

Singapore's LNG premium over VLSFO has jumped $207/mt higher to $251/mt for Otto MS engines. For diesel SS engines, LNG has flipped from a $47/mt discount to a $157/mt premium.

LNG discounts to LSMGO in Singapore have narrowed by $97-100/mt to $695-792/mt.

Liquid fuels

Rotterdam’s conventional fuel prices have declined by $10–73/mt in the past week.

Bunker availability has stabilised in the ARA hub. Around 4-5 days of lead time is recommended to get good coverage from a large selection of suppliers and to avoid high price premiums for prompter deliveries, a trader said.

B100 prices have remained unchanged, and a marginal €0.25/mtCO2e dip in Dutch ZRE A ticket values has had little impact.

Singapore’s HSFO and VLSFO prices have fallen by $55–101/mt, while its LSMGO has edged up by $6/mt over the week.

Liquid gases

Rotterdam's LNG bunker prices have fallen by $40–46/mt, largely driven by a $157/mt drop in our assessed bunker premium over front-month Dutch TTF futures. The premium is now at $137/mt.

Rotterdam’s LBM prices have slipped $92–98/mt lower.

Singapore tells a different story. LNG prices have climbed $103–106/mt higher, largely driven by a sharp $165/mt increase in the assessed bunker premium over front-month JKM futures.

Over the past two weeks, the port's LNG prices have shot up by a staggering $337-338/mt.

Cyclone Narelle has disrupted operations at key western Australian LNG projects, including Wheatstone, Gorgon and Karratha Gas Plant on the Burrup Peninsula. The cyclone has disrupted LNG supply capacity of more than 30 million mt/year, Reuters reported, citing MST Marquee analyst Saul Kavonic.

Disruptions in Australia, combined with choked LNG cargo flows through the Strait of Hormuz, have intensified upward pressure on Singapore's LNG prices.

By Konica Bhatt

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