Fuel Switch Snapshot: Pooling slump erases LBM’s edge over LNG

LBM swings to $43-48/mt premiums over LNG in Rotterdam

Potential pooling value of LBM’s surplus drops $53-62/mt

LSMGO undercuts LNG and LBM in Rotterdam

All bunker prices described in the text below have been adjusted for calorific content to make them VLSFO-equivalent. They have estimated EU-EU voyage compliance costs included for Rotterdam, and nonEU-EU compliance costs included for Singapore. These account for EU ETS costs and FuelEU Maritime penalties, and the average price of compliance surpluses we have picked up from the FuelEU pooling market over the past week.

Liquefied biomethane (LBM) has flipped from a $2/mt discount to LNG to a $48/mt premium over it in Rotterdam for vessels with Otto medium speed (Otto MS) engines. For vessels with diesel slow speed (diesel SS) engines, it has flipped from a $6/mt discount to a $43/mt premium.

OceanScore’s FuelEU pooling index has fallen by €15.35/mtCO2e ($17/mtCO2e) to €80.45/mtCO2e ($90/mtCO2e) over the past week. This has cut the potential pooling value of LBM’s compliance surplus by $53-62/mt on intra-EU voyages, against $0-9/mt for LNG.

LBM prices have gained $133-141/mt depending on engine type, and LNG prices $84-92/mt over the past week. The lower potential pooling value of LBM’s compliance surplus has added to the rise in LBM prices and undercut their edge over LNG.

LSMGO has slid in Rotterdam while both gaseous fuels have climbed, flipping its premiums of $73/mt over LNG (diesel SS) and $79/mt over LBM (diesel SS) to discounts of $94/mt and $137/mt.

LSMGO’s discounts to LNG (Otto MS) and LBM (Otto MS) have widened by $158/mt and $208/mt to $202/mt and $249/mt.

Liquid fuels

Rotterdam’s LSMGO has fallen by $74/mt over the past week, while HSFO has gained $21/mt and VLSFO has dipped by $1/mt.

B100 has edged up by $5/mt in Rotterdam, as the potential pooling value of its compliance surplus has dropped by $51/mt. Its discount to VLSFO has narrowed by $5/mt to $133/mt.

B30-VLSFO is at a $66/mt discount to VLSFO in Rotterdam and B30-LSMGO is at a $134/mt discount to LSMGO.

Dutch ZRE A tickets have fallen by €5/mtCO2e ($6/mtCO2e) to €235/mtCO2e ($263/mtCO2e) over the past week.

In Singapore, LSMGO has slumped by $120/mt, HSFO has lost $37/mt and VLSFO has gained $22/mt.

The port’s B100 has gained $71/mt, and its premium over VLSFO has widened by $49/mt to $396/mt. B30-VLSFO is at a $92/mt premium over VLSFO.

Liquid gases

Rotterdam’s LNG prices have risen by $84-92/mt depending on engine type, even though the TTF contract they are priced on has moved from November to December delivery. That move has taken $39/mt off the price. Excluding it, LNG (Otto MS) has risen by $123/mt and LNG (diesel SS) by $132/mt.

Rotterdam’s LBM prices have climbed by $133-141/mt depending on engine type over the same period.

Singapore’s LNG prices have risen by $63-67/mt depending on engine type.

By Konica Bhatt

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