The prices of liquefied natural gas (LNG) and liquefied biomethane (LBM) in Rotterdam have significantly decreased. Currently, LNG in slow-speed diesel engines (diesel SS) has shifted from a premium of 94 dollars per ton over LSMGO to a discount of 78 dollars per ton. This change is due to a decline of 200 to 201 dollars in LNG prices in Rotterdam compared to the engine type, while LSMGO has also decreased by 28 dollars per ton.
Fuel Price Changes in Rotterdam
Regarding LBM, this fuel has also changed from a premium of 137 dollars per ton over LSMGO to a discount of 26 dollars per ton in slow-speed diesel engines. The price of LBM has dropped by 190 to 192 dollars per ton. For vessels with medium-speed engines (Otto MS), both gas fuels still have higher prices compared to LSMGO, but this difference has significantly decreased. The LNG premium in Otto MS engines has fallen to 28 dollars per ton, and the LBM premium has reached 85 dollars per ton.
Fuel Market Situation in Singapore
In Singapore, HSFO, VLSFO, and LSMGO prices have also decreased by 25 to 181 dollars per ton, while B100 has decreased by 158 dollars per ton and B30-VLSFO by 204 dollars per ton. LNG prices in Singapore have fallen to 161 to 162 dollars per ton, and this price drop is due to competition among suppliers at the port with LNG supply locations in China.
Last week, HSFO, VLSFO, and LSMGO prices in Rotterdam decreased between 28 to 133 dollars per ton, with the most significant drop related to HSFO. This price reduction has occurred amid supply constraints in Rotterdam, and buyers have been advised to provide notice about 5 to 7 days before purchasing.
Meanwhile, Brent crude oil futures prices in the ICE market have also decreased to 93.95 dollars per barrel. This decline is due to the cautious stance of the U.S. President regarding the resumption of military attacks against Iran and the results of the U.S. midterm elections, which have bolstered hopes for an end to the war in the Middle East.
Ultimately, for vessels with diesel engines, these price changes could have significant implications for the energy and maritime transport market. With falling prices, we are likely to see an increase in demand for gas fuels, which could also benefit the environment.
