LNG Bunker Snapshot: Price declines in Rotterdam while remains stable in Singapore

Rotterdam's LNG bunker price has dropped in the past week due to increased gas supply from Norway and lower-than-expected demand resulting from milder weather.

PHOTO: CMA CGM's LNG-powered vessel bunkered at the Port of Rotterdam. CMA CGM

Changes in weekly LNG bunker prices:

• Rotterdam down by $13/mt to $783/mt
• Singapore down by $1/mt to $810/mt

Rotterdam

The LNG bunker price in Rotterdam has dropped by $13/mt to $783/mt in the past week. The port's benchmark has tracked the downward movement in the front-month NYMEX Dutch TTF Natural Gas contract.

The price drop has been further supported by an increase in gas supply from Norway, which ramped up its exports despite delays at its key gas field, Troll. Additionally, LNG imports into Europe surged to 1.67 million mt last week, the highest since May, adding to the availability of gas, as per Rystad Energy.

Gas demand has softened because temperatures across Europe have been milder than expected for this time of year, reducing some of the heating demand. France is also set to increase nuclear power output from 14 October, which will further reduce the need for gas in electricity generation.

Adding to this, Gas flows from Russia to Europe have risen, contributing to the overall supply increase. Compared to the previous week, Russian gas flows into Europe have gone up and exceeded the levels recorded at the same time last year.

Singapore

Singapore's LNG bunker price has remained steady in the past week. The delay in winter buying, as temperatures stay warmer than expected, is keeping gas prices stable, Rystad Energy said.

In China, following the Golden Week holiday, some companies have started purchasing LNG cargoes to ensure an adequate supply for the winter. However, China is largely relying on its own gas production and pipeline imports to meet most of its needs. Many smaller buyers are holding back from making purchases because spot prices for LNG remain high.

Overall, LNG prices in Asia are expected to stay steady for the near future, as current conditions indicate sufficient supply to meet demand, according to Kpler.

By Debarati Bhattacharjee

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