LNG Bunker Snapshot: Rotterdam’s LNG price rises on US-Iran tension-induced supply concerns

Singapore-ARA spread unchanged at $185/mt

TTF rises on renewed US-Iran tensions and rising temperatures across Europe

Higher bunker premiums push Singapore prices up

Weekly changes in LNG bunker prices:

• Rotterdam up by $48/mt to $901/mt
• Singapore up by $48/mt at $1,086/mt
• Baltics up by $47/mt to $1,006/mt

Rotterdam

Rotterdam’s LNG bunker price has surged by $52/mt, mirroring gains in the front-month Dutch TTF natural gas contract. Over the past week, the benchmark has increased by $1/MMBtu to $15.01/MMBtu ($781/mt).

The rally in TTF prices has been primarily fuelled by escalating geopolitical concerns, with “renewed tensions between the US and Iran” adding to “uncertainty surrounding LNG supply related to transit through the Strait of Hormuz,” according to the Japan Organization for Metals and Energy Security (JOGMEC).

“European natural gas benchmark futures rose… over uncertainty over supplies. QatarEnergy extended force majeure on some LNG shipments, adding nervousness to an already volatile market,” said ANZ Bank’s senior commodity strategist Daniel Hynes.

“In the natural gas market, QatarEnergy reportedly extended force majeure on some LNG shipments to Asia and Europe until August, and in some cases into early September,” echoed two analysts from ING Bank.

“Forecasts of rising temperatures and a decrease in storage injection,” along with “forecasts of a decline in wind power generation,” have also contributed to the upward pressure on prices, according to JOGMEC.

“The pressure on the European gas market remains high due to the low storage levels, the reduced French nuclear production and the risk of new heat waves across the continent next week,” said market intelligence firm Mind Energy.

“Scorching temperatures of above 40°C are driving up cooling needs across all Europe, which in turn is increasing electricity demand. meanwhile, French nuclear is running lower amid high river temperatures and unplanned outages,” added Greg Molnár, gas analyst at the International Energy Agency.

Meanwhile, EU underground gas storage stood at 49.7% on 3 July, up from 48.0% a week earlier, but remained 17% lower than a year earlier, according to data from Gas Infrastructure Europe.

Singapore

Singapore’s LNG bunker price climbed by $48/mt over the past week to $1,086/mt, supported mainly by an approximately 8% increase in LNG bunker premiums, which rose from around $231/mt to $250/mt.

“Renewed tensions between the US and Iran following a series of attacks, and heightened supply concerns stemming from a decrease in LNG tanker transit through the Strait of Hormuz,” have pushed LNG prices higher, according to JOGMEC.

“North Asia LNG prices also gained as the disruption of exports from Qatar forces more importers to seek spot LNG cargoes,” said ANZ Bank’s Daniel Hynes.

“LNG shipments from Qatar have been near-paralyzed since fresh Iranian attacks on vessels last week. The impact on prices is stark… QatarEnergy has extended a force majeure on some shipments to Asia and Europe, while continuing to sublease vessels — both signs that it doesn’t see exports quickly rebounding,” said Stephen Stapczynski, Energy Asia team leader at Bloomberg News.

Regional LNG bunker prices are generally linked to the NYMEX Japan/Korea Marker (JKM), whose front-month contract gained $0.54/MMBtu over the week to $16.07/MMBtu, equivalent to $836/mt.

Singapore’s premium over Rotterdam remained unchanged week on week at $185/mt.

Meanwhile, LNG inventories held for power generation in Japan stood at 2.08 million mt as of 28 June, down by 30,000 mt from the previous week, according to the Ministry of Economy, Trade and Industry (METI).

Elsewhere in the LNG bunkering sector, more than 850 LNG-capable vessels are currently in operation worldwide, and the fleet could nearly double over the next five years if scheduled deliveries proceed as planned, according to Shell.

LNG led the alternative fuel vessel orderbook in June, accounting for 10 newbuild orders, according to DNV Senior Consultant Kristian Hammer.

Kawasaki Kisen Kaisha (K Line) has added two new dual-fuel LNG carriers to Petronas' LNG fleet.

Finnish state-owned energy company Gasum has signed a long-term agreement to supply LNG for bunkering Fjord1's fleet of ferries operating on the Arsvågen–Mortavika route between Stavanger and Haugesund in Norway.

IRH Global Trading has partnered with AD Ports to assess the potential for alternative fuel bunkering, including LNG, at the UAE's Khalifa Port.

Alternative fuels, including LNG, accounted for 25% of Eastern Pacific Shipping's (EPS) total fuel consumption in 2025, the company said.

China's Jiangnan Shipyard has secured a contract to build four dual-fuel LNG carriers.

By Tuhin Roy

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