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  • LNG bunker prices near record high - Splash
  • 2022 August 8 14:41

    LNG bunker prices near record high - Splash

    Oil prices dropped 10% last week, according to Splash. In the bunker markets, this has been reflected by an ever greater margin in pricing between traditional fuels and LNG with the latter now on course to hit record highs soon, with many of today’s LNG dual-fuelled ships deciding not to take on gas.

    For LNG bunkers in Rotterdam priced by Ship & Bunker on an energy equivalency of one metric ton of IFO380 bunkers, meaning HSFO, prices are currently hovering at $2,621 per ton, threatening to eclipse former records of $2,673 per ton set this March.

    LNG bunker sales in Rotterdam plunged 43% lower in Q2 to just 63,000 cu m. Sales of the gas fuel had been on a steady rise for years through to the start of this year when the pricing gap with conventional fuels made them uneconomic.

    Despite the drop recorded in Rotterdam, Europe’s top bunkering hub, LNG bunker sales globally have been ticking up in recent months, according to online platform BunkerEx.

    “What has surprised us is the number of suppliers seems to be increasing too, which is a key component to make LNG truly competitive with other fuels,” Ishaan Hemnani, BunkerEx’s CEO, told Splash today.

    “We are seeing a little more demand, but that’s probably just the market building out or people expecting the spread to get even worse come winter,” Hemnani added.

    Latest data from shipping classification society DNV suggests that the global LNG-fuelled fleet has expanded by nearly 60% over the past two years, with 304 vessels now in operation.

    Around 4.5% of the global fleet by tonnage – or 1% of ships by numbers – is alternative fuel capable, mostly LNG, according to Clarksons Research.

    Clear figures on how many of these 300+ dual-fuelled ships are using LNG today remains opaque.

    A spokesperson from Integr8 Fuels’ research department commented: “Most owners of dual-fuel tonnage buying on the spot market are likely purchasing VLSFO/LSMGO as indeed the differential is not in favour of LNG. Some of these would still bunker LNG as a one-off for marketing purposes and we’ve seen a few press releases about it recently. Some would probably have some kind of take or pay contracts that tie them up to buying it anyways while others will be lifting in US where LNG bunkers are more competitive, particularly compared with LSMGO.”

    The majority of dual-fuel owners will have switched to conventional fuels given the price gap, the spokesperson stressed.

    “Being alternative fuel capable or ready is nothing but an expensive, non-committal greenwashing exercise as long as everyone with dual-fuel engines burns fuel oil anyway,” argued Roar Adland, shipping professor at the Norwegian School of Economics, in a widely read recent post on LinkedIn.

2022 October 2

11:27 North Italian terminal orders Generation 6 Konecranes Gottwald Mobile Harbor Crane to lift productivity and eco-efficiency
09:58 GTT receives an order from DSME for the tank design of ten new LNG carriers

2022 October 1

15:31 International carbon collaboration could reshape shipping markets - ICS
13:48 14% of the Port of Valencia’s electrical energy will be of solar origin
12:17 Emissions focus from charterers promises both scrutiny and support - ICS
10:43 Finnpilot Pilotage announces a 4.7% increase in pilotage fees for 2023

2022 September 30

18:05 Port of Cardiff celebrates new distribution centre lease with Owens Group
17:59 Yaroslavsky Shipbuilding Plant launches yet another multi-purpose boat of project 02220
17:28 Hoegh Autoliners offers customers carbon neutral operations
17:05 Maersk Drilling awarded contract offshore Brazil with Shell
16:57 Twelve Chinese sailors die of suspected food poisoning near Vietnam - Australian Associated Press
16:45 CMA CGM launches new early container return incentive
16:25 Kalmar’s EcoFlex rental solution to help Logent improve the sustainability of its cargo-handling activities
16:07 Container ship Sparta delivered 340 TEU of consumer goods to Baltiysk in the Kaliningrad Region
15:51 Aqaba Container Terminal announces zero-emission vision
15:27 RF Government to allocate RUB 2 billion for creation of LNG equipment prototypes
15:14 HHLA and Fraunhofer CML start IHATEC project
15:04 LR approval in principle for Maridea’s Moray Base floating wind concept
14:48 Albania implements the IMO Anti-fouling Systems Convention
14:03 Rolls-Royce and Lürssen to focus on methanol propulsion for large yachts
13:32 Successful delivery of 1800TEU container vessel M/V “ASL HONGKONG”
13:16 DNV confirms Nordseecluster wind farms will comply with German offshore regulations
13:13 Turnover of FESCO’s Far East coastal services in 8M’2022 rose by 6%, YoY
12:53 Orsted completes divestment of 50 % of Hornsea 2 Offshore Wind Farm
12:44 Handling of Belarus’ oil products in Russian ports can total 3 million tonnes in 2022
12:21 ABS and DSME team-up on decarbonization strategy
12:01 OOCL completes trial voyage with biofuel from Chevron
11:40 Ningbo Containerized Freight Index deceases by 31.0% in September 2022
11:22 POT and EMERCOM held joint firefighting exercise on oil tanker in Saint-Petersburg
11:05 Dutch fishing vessel struck anchored product tanker, oil leak
10:37 China's first 2,000-ton offshore wind power installation platform delivered in Guangzhou - China Daily
10:33 Russia convenes emergency meeting of UN Security Council on Nord Stream 1 and Nord Stream 2 gas pipeline blasts
10:09 China ports container volume rises 4.1% in January - August 2022
09:55 Delivery of second ice-class buoy laying vessel of Project BLV03 accepted in Murmansk
09:32 Crude oil futures are slightly up after a decrease at the previous session
09:32 Brazil’s CBO Group and Wartsila sign Decarbonisation Service agreement to speed up fleet sustainability
09:21 MABUX: Bunker index may turn into downward changes on Sep 30
08:34 MABUX: Bunker Weekly Outlook, Week 39, 2022

2022 September 29

18:36 Shift Clean Energy selected to electrify 17 new tugboats
18:10 Ulstein develops 8,000t foundation installation vessel
17:50 Volgotrans files suits against Lotos shipyard for over RUB 800 million in total
17:06 Vattenfall awarded major wind power project off the coast of Germany
16:44 Krasnoye Sormovo shipyard to build three cruise ships of ‘Karelia’ design
16:34 Yinson Greentech commences construction of all-electric cargo vessel
16:18 The largest shipyard in the MENA region signs a long-term agreement with Bahri Logistics
15:56 Container shipping and logistics experts Matson joins SEA-LNG
15:04 Aker Solutions joins to the Aiming for Zero Methane Emissions Initiative
14:58 Amount of cargo transported via Bosphorus rose 40% since 2005
14:36 Hoegh Autoliners joins First Movers Coalition and commits to using green fuels already by 2030
14:25 Maritime industry unites to call for earmarking of ETS revenues
13:45 Sanmar Shipyards delivers 7th tug to SAAM Towage
13:24 Port of Cork Company launches a new 13.5-hectare container terminal
12:56 Severnaya Verf shipyard launches lead factory freezer-longliner of Project MT1112XL, Gandvik-2
12:53 China delivers first VLCC equipped with four rigid sails - The Maritime Executive
12:05 Second ship of Project 03141, Kedon, left Khabarovsk Shipyard for delivery base
11:40 Mawani signs 7 agreements during the Saudi Maritime Congress
11:03 GTT receives AiP from Bureau Veritas for the design of a LNG-fuelled & “NH3 Ready” Very Large Crude Carrier
10:23 Keppel O&M secures repeat newbuild FPSO contract worth US$2.8b from Petrobras
10:10 CPC Marine Terminal handled 382 tankers by mid-September
09:48 Long-term contracted rates fell by 1.1% in September - Xeneta