The price of LNG (liquefied natural gas) in Singapore has sharply increased, driven by fluctuations in the JKM contract and high demand from Asia. While LNG prices in Rotterdam have risen for the third consecutive week, this increase is less than that of TTF (Dutch Title Transfer Facility).
Details on LNG Prices and Demand
The current TTF price has reached $29.42 per MMBtu (equivalent to $1,530 per ton), showing an increase of $2.17 compared to last week. Meanwhile, the price margin in Rotterdam compared to TTF has decreased from $2.62 to $2.41. Additionally, the Baltic price margin has decreased from $4.64 to $4.40.
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Analyses indicate that forecasts for cold weather in late October, stronger demand from Asia, and maintenance at the Atlantic LNG facility in Trinidad and Tobago have tightened LNG supply.
Status of Gas Reserves in Europe
As of October 18, gas reserves in Europe were 74% full, showing little change from the previous week but 11% lower than last year. Reports indicate that gas reserves in mid-October have reached their lowest level since 2011. The European Commission is considering plans to create an emergency gas reserve in the European Union.
The price of LNG in Singapore has reached $29.93 per MMBtu (equivalent to $1,556 per ton) due to increased demand and fluctuations in the JKM price. Additionally, the price margin in Singapore compared to JKM has increased to $4.10, reflecting high demand in the region.
Furthermore, marine fuel supplier Vitol Bunkers plans to begin LNG deliveries in Singapore and other Asian markets this year. The company will proceed after completing sea trials of an LNG loading vessel with a capacity of 12,500 cubic meters.
In September, LNG sales in Singapore dropped to 52,000 tons, representing a 12% decline compared to the previous month. Additionally, supplier Axpo has made its first LNG delivery in Valencia, Spain, which included a blended fuel consisting of more than half liquid biomethane.
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