The price of LNG (liquefied natural gas) at the port of Rotterdam has reached $1432 per ton (mt), reflecting a $12 increase compared to last week. This price increase comes after two consecutive weeks of decline. The rising premium in Rotterdam has driven the price of this commodity up to $2.62 per MMBtu (million BTU), compared to $2.48 last week. In comparison, the price of LNG in the Baltic market has also increased by $12, reaching $1537 per ton.
Natural Gas Storage Status in Europe
According to reports, natural gas prices in Europe have been supported by pressure to fill low storage levels. Natural gas reserves are currently 72% full, which is an increase from 70% last week, but still 14% lower than last year. According to Daniel Hynes, senior commodity strategist at ANZ Bank, Europe may have to compete fiercely with Asian buyers to attract LNG cargoes. Additionally, increased supply from the Middle East has not alleviated concerns about gas shortages during the summer season.
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Stability of LNG Prices in Singapore
In Singapore, LNG prices have remained generally stable at $1566 per ton. The premium in this region has decreased compared to ARA, dropping from $147 per ton last week to $134. The JKM (Japan Korea Marker) price, which typically tracks LNG prices in Singapore, has decreased to $25.71 per MMBtu. This decline has been partially offset by a higher premium in Singapore, which has increased from $4.31 to $4.41 per MMBtu.
In September, only 17 LNG ships passed through the Strait of Hormuz, a significant decrease from 87 tankers in February. This situation is due to existing tensions in the region, which could have significant impacts on LNG supply.
In the shipbuilding sector, MSC Cruises has launched a cruise ship capable of using LNG at the Chantiers de l’Atlantique shipyard in Saint-Nazaire, France. Additionally, CMA CGM has received the third ship from a series of 10 new LNG-capable vessels. This reflects a growing trend towards the use of alternative fuels in the maritime transport industry.
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