LNG Bunker Snapshot: Prices climb in Rotterdam and Singapore amid supply concerns
Rotterdam's LNG bunker price rose due to concerns about possible disruptions in Russian gas supplies, while spot prices in East Asia and problems with Australia's Wheatstone LNG facility drove up prices in Singapore.
PHOTO: Pavilion Energy's LNG bunker vessel Brassavola delivers a stem to a Rio Tinto-chartered bulk carrier. Pavilion Energy
Changes in weekly LNG bunker prices:
- Rotterdam up by $20/mt to $688/mt
- Singapore up by $9/mt to $761/mt
Rotterdam
Rotterdam's LNG bunker price has increased by $20/mt to $688/mt in the past week. The price rise has mirrored the increase in the front-month NYMEX Dutch TTF Natural Gas benchmark.
The rise comes amid growing concerns over gas supply disruptions. The potential halt of Russian gas flows to southern and central Europe, combined with intensified LNG competition from Asia, has added upward price pressure, Energi Denmark said.
One of the major supply concerns remains related to Russian gas flows into Europe. “Gazprom’s transit deal with Ukraine expires at the end of this year, and Ukraine has made it clear on several occasions that it has no intention to extend the deal,” ING’s Warren Patterson said.
Period maintenance at Norway’s Karsto gas processing plant has been extended until 17 June, which reduced pipeline flows by approximately 12.1–12.7 million cubic meters per day (mcm/day). Despite high gas storage levels and a warmer weather forecast, supply outages have introduced bullish sentiment in the market.
Gas storage facilities in Europe are currently full at 71.9%, up from 70.4% in the week prior. The EU aims to increase gas storage to 90% by November, Rystad Energi stated.
Singapore
Singapore's LNG bunker price has risen by $9/mt to $761/mt in the past week, influenced by the underlying Japan/Korea Marker (JKM) price.
Spot LNG prices in East Asia have climbed from $9/MMBtu in early April to $11/MMBtu by mid-June, according to Rystad Energy.
India’s recent heatwave has driven a surge in gas demand from the power sector in the past two months. Gas-fired plants can be quickly ramped up to meet increased electricity demand during peak summer.
The Japan Meteorological Agency forecasts a high probability (50% or more) of above-normal temperatures across the country until 7 July. Major demand centers, including the Greater Tokyo Area, may experience a 70% or greater probability of above-normal temperatures.
LNG supply concerns in the Asian market have intensified following the suspension of operations at the Wheatstone LNG facility in Australia due to repairs on its offshore platform.
The plant, with a combined capacity of 8.9 MTPA from two liquefaction trains, faces an uncertain outage duration. This situation could support prices, especially with strong demand from Asia, Patterson said.
By Debarati Bhattacharjee
Please get in touch with comments or additional info to news@engine.online
