In Rotterdam, the price of liquefied natural gas (LNG) in medium-speed Otto engines (Otto MS) has risen from a discount of $23 per ton compared to LSMGO to a premium of $44. This price increase is a result of rising LNG prices and TTF gas contracts, with LNG (Otto MS) increasing by $107 per ton, while LSMGO has only increased by $41.
Changes in LBM and LSMGO Prices
In addition to LNG, the price of liquefied biogas (LBM) in Otto MS engines has also changed from a discount of $17 per ton compared to LSMGO to a premium of $42. LBM (Otto MS) has increased by $101 per ton, while LSMGO has still experienced a $41 increase.
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For vessels using slow-speed diesel engines (diesel SS), the LNG discount compared to LSMGO has decreased to $73 per ton. LBM in this category also has a discount of $79. The price of LNG (diesel SS) has increased by $106 per ton, and LBM (diesel SS) has also increased by $99.
Market Fluctuations and Weather Impacts
Since early February, LSMGO has been more expensive than LNG (Otto MS) in Rotterdam, but recent fluctuations in the gas market and cold weather conditions in Europe have changed this situation. The increase in demand for LNG due to forecasts of lower temperatures and supply disruptions in Norwegian gas fields has put significant pressure on prices.
Reports indicate that the price of B100 has also changed from a premium of $26 compared to HSFO to a discount of $62. The price of B100 has decreased by $61 per ton, while HSFO has increased by $27. The discount of B100 compared to VLSFO has also increased to $138 per ton.
Additionally, the premiums of LBM compared to B100 have increased by $160 to $161 per ton, changing to $625 to $746, while LBM has increased by $99 to $101, and B100 has decreased.
The FuelEU OceanScore indicator remained stable last week at €95.80 per ton CO2e. The prices of HSFO, VLSFO, and LSMGO in Rotterdam have increased by $19 to $41, with LSMGO experiencing the highest increase.
In Singapore, the prices of HSFO, VLSFO, and LSMGO have also increased by $19 to $44, and B100 has increased by $46. The futures prices of ICE Brent oil have risen by $6.51 per barrel, reaching $114.97 per barrel.
Recent fluctuations in the gas market and rising prices indicate the geopolitical impacts and forecasts of cold weather conditions in Europe, which have emerged due to supply disruptions in Norwegian gas fields and new tensions in the Middle East.
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