Fuel Switch Snapshot: LNG discounts to LSMGO widen in major ports

Rotterdam B100 discounts to conventional fuels tighten

Singapore B30-VLSFO back at a discount to VLSFO

LBM discounts to LSMGO widen in Rotterdam

Rotterdam B100’s discounts to pure HSFO, VLSFO and LSMGO have narrowed by $18-36/mt over the past week. It's discounts to LNG has also narrowed by $68–75/mt, bringing the spread to $106-325/mt, depending on engine type and methane slip profile.

In contrast, B100’s premiums over liquefied biomethane (LBM) in Rotterdam have widened by $66–73/mt to $168–394/mt.

In Singapore, B30-VLSFO (UCOME) has flipped back to an $11/mt discount to pure VLSFO after briefly moving to a $3/mt premium last week. B100’s premium over pure VLSFO has edged $4/mt higher to $461/mt.

Liquid fuels

Conventional fuel grades in Rotterdam have declined by $18–36/mt, while B30-VLSFO has fallen by a smaller $14/mt over the past week.

The port’s B100 benchmark has remained unchanged, as a €5/mtCO2e drop in Dutch ZRE A tickets has failed to exert upward pressure on price.

VLSFO and LSMGO availability has remained tight for prompt delivery in the ARA region, with buyers advising lead times of 5-7 days, a trader told ENGINE. HSFO has been more readily available, with notice periods of 2-4 days, the trader added.

Singapore’s HSFO and VLSFO prices have slipped by $3–5/mt, while its pure LSMGO has fallen by $13/mt. The port’s B100 price has remained broadly steady with a modest $2/mt decline, while B30-VLSFO (UCOME) has dropped by a sharper $19/mt.

Liquid gases

LNG bunker prices have extended declines from the previous week in both Rotterdam and Singapore.

In Rotterdam, LNG prices have fallen by $68-74/mt and LBM prices have dropped by $66–73/mt, depending on vessel engine type.

LNG’s discount to pure LSMGO has widened by $31-38/mt, while LBM’s discount to LSMGO has widened by $27-31/mt to $573–798/mt over the past week.

Singapore’s LNG bunker prices have declined by $23-26/mt, widening the discount to the port’s LSMGO benchmark to $39-149/mt.

By Konica Bhatt

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