LNG Bunker Snapshot: Singapore’s price moves closer to Rotterdam

Geopolitical risks have lifted Rotterdam LNG price, while Singapore's price has made smaller gains driven by tight supplies and weather-driven demand.

PHOTO: CMA CGM's LNG-powered vessel bunkered at the Port of Rotterdam. CMA CGM

Changes in weekly LNG bunker prices:

• Rotterdam up by $59/mt to $849/mt
• Singapore up by $27/mt to $852/mt

Rotterdam

Rotterdam's LNG bunker price has gained by $59/mt to $849/mt in the past week. The upward trend reflects a corresponding increase in the underlying Dutch TTF Natural Gas contract, driven by renewed concerns over potential disruptions to Russian pipeline gas flows into Europe.

At the center of this tension is Austrian energy company OMV’s decision to halt payments to Russian state-owned energy firm Gazprom. OMV is seeking to recover €230 million ($243 million) in damages awarded in a recent arbitration, raising the risk that Gazprom could retaliate by cutting pipeline gas supplies.

With payments due by the 20 November, markets are expected to remain cautious until the issue is resolved. OMV estimates that around 5 terawatt-hours (TWh) of monthly supply could be at risk if flows are disrupted, adding a layer of uncertainty to the European gas landscape, ING’s Warren Patterson said.

In addition, European gas storage levels, though healthy, have dipped slightly compared to last year. Storage was reported at 94.5% full last week, down from 99.7% at the same point in 2023.

Singapore

Singapore's LNG bunker price has risen by $27/mt to $852/mt. The uptick reflects tighter supply and weather-related demand fluctuations in Asia.

Though temperatures in Japan and South Korea have been slightly higher than seasonal averages, colder weather is setting in, which could boost near-term LNG demand. Cold snaps are forecast for China, potentially driving additional heating-related demand, Rystad Energy said.

Adding to market concerns, Japan’s LNG inventories likely ended below 5 million mt in October, a notable drop compared to the same period last year. This underscores the fragility of regional supplies heading into winter.

Production issues in Australia are also influencing price dynamics. Train 1 of the Ichthys LNG facility is expected to return to full production by mid-November, but any delays could push prices higher due to the already tight inventory situation in Japan, added Rystad Energy.

Singapore’s LNG bunker price premium over Rotterdam has narrowed to just $3/mt, down from $35/mt last week.

By Debarati Bhattacharjee

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