Liquid biomethane (LBM) prices in Rotterdam are gradually approaching the price of low-sulfur marine fuel (LSMGO). Recent analyses indicate that the price difference between LBM and LSMGO has decreased to $17 to $137 per ton. This difference varies depending on the type of ship engine, and currently, LBM has garnered more attention due to its environmental benefits.
Marine fuel price changes
For dual-fuel ships refueling in Rotterdam, the price of LBM is higher than the prices of HSFO (heavy fuel oil) and VLSFO (very low sulfur fuel oil), regardless of the type of ship engine. Additionally, the price difference between LBM and B100 (biofuel) has decreased to $465 to $584 per ton, while the price of B100 has increased by $54 per ton over the past week.
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The amount of carbon dioxide produced using marine fuels has also been affected. The cumulative value of marine fuels based on the FuelEU Maritime standard increased by $10 per ton of CO2 last week, reaching €95.80 per ton of CO2. This increase has led to an additional cumulative value of LBM rising by $31 to $36 per ton last week.
Fuel market developments in Rotterdam and Singapore
In Rotterdam, the price of B100 has increased from a discount of $24 per ton to HSFO to $26 per ton, and it is now recognized as a quality fuel. Furthermore, the discount of B100 compared to VLSFO in Rotterdam has decreased to $58 per ton. In Singapore, the price of B100 compared to VLSFO has also decreased by one dollar to $337 per ton.
In the context of LNG (liquefied natural gas), prices in Rotterdam increased by $72 to $75 per ton last week. Additionally, LBM prices in Rotterdam have risen to $35 to $38 per ton. For ships with medium engines (Otto MS), the price difference between LBM and LNG has decreased to $5 per ton.
In Singapore, LNG prices increased by $144 to $146 per ton last week. This increase was due to the shift of the JKM contract from November delivery to December, which has fully impacted prices. Moreover, LNG is now up from a $1 discount compared to LSMGO to $136 per ton for diesel engine ships.
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