LNG Bunker Snapshot: Prices drop in Rotterdam on mild weather forecast

Rotterdam's LNG bunker price has come down sharply, reflecting concerns that milder weather could dampen LNG demand for heating.

PHOTO: Peninsula's bunker supply vessel Levante LNG delivering LNG to Silver Nova in Gibraltar. Peninsula

Changes in weekly LNG bunker prices:

• Rotterdam down by $94/mt to $783/mt
• Singapore down by $23/mt to $891/mt

Rotterdam

Rotterdam's LNG bunker price has dropped sharply by $94/mt to $783/mt over the past week. This sharp decline reflects a downward trend in the Dutch TTF Natural Gas contract, which serves as a key benchmark for European gas markets.

The TTF front-month contract has fallen by 12% in the past week amid forecasts of milder weather. These forecasts have eased concerns about Europe’s heating season, reducing the immediate demand pressure on LNG.

While there has been a recent uptick in gas withdrawals, Europe’s overall gas storage levels remain stable and reassuring. Storage facilities are currently filled to 81% of their capacity—a drop from last year’s 91%, but only slightly below the five-year average of 83%. This tempered outlook has contributed to the price drop, ING’s Warren Patterson said.

Singapore

Singapore's LNG bunker price has dropped by $23/mt to $891/mt in the past week, tracking a decline in the NYMEX Japan/Korea Marker (JKM) contract.

But it has also fallen because LNG bunker delivery costs are estimated to have gone down by $13/mt on the week, to $104/mt.

Asian LNG demand remains strong as lower prices attract price-sensitive buyers. In China, robust LNG imports—despite increasing pipeline volumes from Russia—have been bolstered by rising sales of LNG-powered trucks, which are also dampening diesel demand.

By Debarati Bhattacharjee

Please get in touch with comments or additional info to news@engine.online