LNG Bunker Snapshot: Singapore’s LNG discount to Rotterdam narrows
Rotterdam’s LNG bunker price has fallen due to the potential peace talks aimed at ending the Russia-Ukraine war.
Changes in weekly LNG bunker prices:
- Rotterdam down by $32/mt to $955/mt
- Singapore up by $11/mt to $891/mt
Rotterdam
Rotterdam’s LNG bunker price has dropped sharply in the past week, after rising for three consecutive weeks. This decline is linked to an almost 4% drop in the front-month Dutch TTF Natural Gas contract, a key European gas benchmark.
Front-month TTF is “on a downward trend, especially with the news on February 13 that Presidents Trump and Putin had agreed to start peace talks, which led to a significant drop in the view of reduced geopolitical risk,” the Japan Organization for Metals and Energy Security (JOGMEC) commented.
“US and Russia talks working towards a peace deal between Russia and Ukraine will weigh on sentiment,” argued Warren Patterson, head of commodities strategy at ING Bank.
“Milder signals from the weather forecasts and rumors that the EU countries are considering changing the gas storage target as well as implementing another gas price cap were bearish news, and we expect the downtrend to continue,” Energi Danmark added.
Singapore
Singapore’s LNG bunker price has risen by $11/mt over the past week, reaching $891/mt. Asian LNG bunker prices are generally closely tied to NYMEX Japan/Korea Marker (JKM) values. Over the past week, the front-month JKM contract has increased by $0.22/MMBtu ($11/mt) to $14.95/MMBtu ($777/mt).
Singapore's LNG bunker price gains has narrowed its discount to Rotterdam from $108/mt to $64/mt.
According to Japan’s Ministry of Economy, Trade and Industry (METI), LNG inventories for power generation stood at 2.15 million mt as of 9 February, marking a decrease of 260,000 mt from the previous week.
By Tuhin Roy
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