LNG Bunker Snapshot: Prices jump on supply risks and Strait of Hormuz disruptions<\/p>\n
LNG bunker prices in Rotterdam and Singapore have rallied, driven by tightening global gas supply and escalating risks around the Strait of Hormuz.<\/p>\n
Weekly changes in LNG bunker prices:<\/p>\n
Rotterdam up by $63\/mt to $957\/mt<\/p>\n
Singapore up by $86\/mt at $1,066\/mt<\/p>\n
Rotterdam\u2019s LNG bunker price has climbed by $63\/mt, tracking gains in the front-month Dutch TTF natural gas contract. Over the past week, the benchmark has risen by $1.37\/MMBtu to $15.48\/MMBtu ($805\/mt).<\/p>\n
The surge in TTF prices has been largely driven by tightening supply dynamics, with \u201ccontinued supply restrictions due to intermittent planned and unplanned shutdowns at several gas production facilities in Norway, as well as growing expectations of a continued blockade of the Strait of Hormuz,\u201d according to the Japan Organization for Metals and Energy Security (JOGMEC).<\/p>\n
Market sentiment has also shifted, with \u201cEuropean natural gas prices gained\u2026 as hopes of end to supply disruptions evaporated,\u201d ANZ Bank\u2019s senior commodity strategist Daniel Hynes said.<\/p>\n
Additional support has come from weather and energy output expectations. \u201cExpectations of further cooling and a decrease in renewable energy generation,\u201d have also contributed to upward pressure on prices, JOGMEC added.<\/p>\n
\u201cCooler temperatures next week, until early May, were also taken into consideration,\u201d according to Mind Energy.<\/p>\n
Meanwhile, EU underground gas storage stood at 31.19% on 24 April, up from 29.9% a week earlier, but still 17.5% lower year-on-year, based on data from Gas Infrastructure Europe.<\/p>\n
Singapore\u2019s LNG bunker price has surged over the past week, rising by $86\/mt to $1,066\/mt. Consequently, the premium over Rotterdam has widened from $86\/mt a week ago, to $109\/mt.<\/p>\n
LNG bunker pricing in Singapore typically follows the NYMEX Japan\/Korea Marker (JKM). The front-month contract climbed by $1.56\/MMBtu over the week to $16.56\/MMBtu ($861\/mt), reinforcing the upward trend in bunker prices.<\/p>\n
Geopolitical risks have been a key driver, with \u201cthe continued blockade of the Strait of Hormuz,\u201d playing a major role in pushing prices higher, according to JOGMEC.<\/p>\n
\u201cNorth Asia LNG prices pushed above\u2026 as the ongoing closure of the strait disrupts more than a fifth of world supply,\u201d said Daniel Hynes of ANZ Bank.<\/p>\n
Additional pressure has come from potential supply disruptions in Australia. \u201cConcerns about a strike at Ichthys LNG in Australia on the 24th also fueled the price increase,\u201d according to JOGMEC.<\/p>\n
\u201cWorkers at Inpex\u2019s Ichthys LNG export project in Australia have voted to strike, which could halt production if the dispute is not resolved, the union representing employees said in a statement,\u201d Stephen Stapczynski, Energy Asia team leader at Bloomberg News.<\/p>\n
The significance of the project underscores market sensitivity. \u201cIchthys accounts for about 2% of global supply and has the capacity to export around 9.3 million tons a year, mainly to Japan,\u201d Stapczynski added.<\/p>\n
Meanwhile, Japan\u2019s LNG inventories for power generation stood at 2.22 million mt on 19 April, down by 70,000 mt from the previous week, based on data from Ministry of Economy, Trade and Industry.<\/p>\n
Other LNG bunker news<\/p>\n
Spanish ferry operator Bale\u00e0ria has begun sea trials for its new LNG dual-fuel catamaran, Mercedes Pinto, in Gij\u00f3n, Spain.<\/p>\n
In the UK, Portland Port has secured approval to conduct LNG ship-to-ship (STS) transfer operations, including bunkering services.<\/p>\n
Meanwhile, a container vessel operated by Mediterranean Shipping Company has been supplied with approximately 2,300 mt of LNG at Mawan Port in Shenzhen, China.<\/p>\n
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