LNG Bunker Snapshot: Prices fall on European supply talks and weaker Asian demand
LNG bunker prices have dropped in Rotterdam and Singapore in the past week, driven by anticipated European gas deals and seasonal declines in Asian demand.
PHOTO: CMA CGM's LNG-powered vessel bunkered at the Port of Rotterdam. CMA CGM
Changes in weekly LNG bunker prices:
- Rotterdam down by $37/mt to $766/mt
- Singapore down by $17/mt to $831/mt
Rotterdam
Rotterdam's LNG bunker price has dropped by $37/mt to $766/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 European gas market is on edge over uncertainties surrounding the Russia-Ukraine gas transit deal, set to expire at the end of the year. If no alternative route is secured, this could cut off approximately 15 billion cubic meters of gas to the European Union annually, creating a potential supply gap just as winter demand peaks.
Talks between European buyers and Azerbaijan about a potential supply deal that would maintain transit through Ukraine have injected some optimism into the market, lowering LNG price, ING’s Warren Patterson noted.
If successful, the agreement could serve as a crucial buffer for Europe’s winter energy needs.
Singapore
Singapore's LNG bunker price has also dropped by $17/mt to $831/mt in the past week. This drop has been partially driven by changes in the NYMEX Japan/Korea Marker (JKM) contract.
This price dip aligns with reduced buying activity in Japan and South Korea during what is known as the “shoulder month”—a transitional period between peak summer and winter demand.
Major importers like Japan and South Korea have already secured sufficient LNG for winter, while China’s inventory remains high, leading to a quieter market, Rystad Energy said.
By Debarati Bhattacharjee
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