LNG Bunker Snapshot: Singapore still pricier than Rotterdam

Rotterdam’s LNG bunker market faces oversupply challenges, while Singapore’s LNG market thrives on growing demand.

PHOTO: LNG tanker ship. Getty Image

Changes in weekly LNG bunker prices:

• Rotterdam down by $1/mt to $542/mt
• Singapore up by $3/mt to $599/mt

Rotterdam

Rotterdam's LNG bunker price is relatively stable on the week. The European gas market continues to experience downward pressure from mild weather conditions and subdued demand.

Recent weather forecasts indicate that temperatures across Europe will remain warmer than usual until the end of the heating demand season. European gas storage levels are greater than expected for the time of year and exceed 60%, which suggests continued downward pressure on natural gas prices before the start of the summer months.

Factors such as high wind generation in Germany, above-normal temperatures, and recovering Norwegian gas flow nominations have further suppressed demand for natural gas, ICIS LNG analyst Robert Songer told ENGINE. Limited gas-for-power generation and stable Dutch gas storage withdrawals have also weighed on prices in the region, he added.

Singapore

Singapore's LNG price has edged slightly up and continues to trade at a premium of nearly $50/mt over Rotterdam's. Benchmark Asian LNG prices have also remained stable, driven by high spot demand and price-sensitive buying behaviour among consumers, an Energy Flux report said.

Recent price increases in Asia have been modest, partially due to rising spot buying activity, despite expectations of tighter conditions in April.

Lower spot prices have led to increased buying from countries like India and Bangladesh. India's LNG imports are expected to reach 2.01 million mt this month, indicating a slight increase from February, analytics firm Kpler found.  

By Debarati Bhattacharjee

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