Fuel Switch Snapshot: Pooling values drop for EU-EU voyages

Potential pooling values for B100 and LBM decline

B100 premium over LNG shrinks to $1/mt for diesel SS engines

Singapore LNG cheaper than LSMGO, B100 for Otto MS engines

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.

ENGINE-assessed FuelEU Maritime pooling values for B100 and liquefied biomethane (LBM) on EU-EU voyages have fallen by $29/mt and $41-47/mt, respectively, over the past week.

OceanScore's FuelEU Pooling Index has fallen by around €10/mtCO2e to €165/mtCO2e ($189/mtCO2e), weighing on the pooling benefits of B100 and LBM on voyages between EU ports.

B100's discount to LNG consumed in Otto medium-speed (MS) engines has widened by $49/mt to $187/mt over the week.

In contrast, B100 still remains at a premium to LNG consumed in diesel slow-speed (SS) engines in Rotterdam, but that premium has narrowed sharply to just $1/mt from $58/mt the previous week.

LBM discounts to LSMGO in Rotterdam have narrowed by $23-31/mt to $592-787/mt over the week. Its discounts to VLSFO have narrowed even further, falling by $70-78/mt to $253-448/mt.

For dual-fuel vessels with Otto MS engines bunkering in Singapore, LNG has flipped from a $10/mt premium to a $26/mt discount against LSMGO over the week. Against B100, it has shifted from a $17/mt premium to a $22/mt discount.

It should be noted that B100 and methane largely serve different vessel segments with distinct operational requirements and fuel needs, and do not necessarily compete directly with one another.

Liquid fuels

HSFO and VLSFO prices in Rotterdam have risen by $27-31/mt, while the port's LSMGO benchmark has climbed by a steeper $79/mt over the past week. Rotterdam's B100 price has also gained $24/mt.

B100's discounts to VLSFO and LSMGO have widened by $7/mt and $55/mt, respectively.

Singapore’s conventional bunker fuel benchmarks have climbed by $12-70/mt over the week. The port's B100 price has surged by $73/mt, pushing its premium over VLSFO up by $61/mt to $242/mt.

B100 has remained at a discount to LSMGO in Singapore, although that discount has narrowed to around $4/mt from $7/mt the week before.

Liquid gases

Rotterdam's LNG prices have surged by $74-81/mt over the past week, while LBM prices have risen even more sharply by $102-109/mt.

LBM discounts to LNG have narrowed by $28/mt to $419-426/mt.

Singapore’s LNG prices have gained $34-38/mt over the same period, and the fuel is now priced at $26-120/mt discounts to LSMGO, depending on the engine type.

By Konica Bhatt

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