The prices of Liquid Biomethane (LBM) in Rotterdam have significantly increased, changing from a discount of $2 per ton to a fee of $48 per ton compared to Liquefied Natural Gas (LNG). This price change is particularly noticeable for ships with medium Otto engines (Otto MS). For ships with slow diesel engines (diesel SS), the previous discount of $6 per ton has changed to a fee of $43 per ton.
Decrease in Cumulative LBM Value and Its Impact on Prices
The FuelEU OceanScore cumulative index has decreased by €15.35 per ton equivalent to $17 per ton, reaching €80.45 per ton equivalent to $90 per ton. This decrease has led to a reduction in the cumulative value of LBM and an increase in its prices. In the past week, the price of LBM has increased to between $133 and $141 per ton depending on the type of engine, while the price of LNG has also increased to between $84 and $92 per ton. Meanwhile, the cumulative value of LBM has decreased to between $53 and $62 per ton for intra-EU journeys.
Other Changes in the Fuel Market
The price of LSMGO fuel in Rotterdam has reached a discount of $94 per ton compared to LNG (Otto MS) and $137 per ton compared to LBM (Otto MS). Meanwhile, the price of LSMGO has decreased by $74 per ton in the past week, while the price of HSFO has increased by $21 per ton.
Significant changes have also been observed in Singapore; the price of LSMGO has decreased by $120 per ton, while HSFO has increased by $37 per ton and VLSFO by $22 per ton. At the same time, B100 in Rotterdam has increased by $5 per ton, and its discount compared to VLSFO has decreased to $133 per ton.
Overall, the increase in LBM and LNG prices in Rotterdam due to market changes and the decrease in the cumulative value of these fuels indicates serious changes in the energy supply and demand chain in Europe. These changes could have significant implications for energy markets in the future.
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