European LNG bunkers drop to six-month low against previous winter expectations

The price of LNG bunker fuel in Rotterdam has slumped to a six-month low, as bearish pressures weigh on the European LNG market.

Platts, part of S&P Global Commodity Insights, assessed the price of LNG bunker fuel in Rotterdam at $12.324/MMBtu on Jan. 15. The marker was last seen lower on June 7, 2023, when Platts assessed it at $12.308/MMBtu.

Meanwhile, the price of LNG bunker fuel in Barcelona dropped to the lowest since the Platts began assessing it on Aug. 16, at $12.422/MMBtu on Jan. 15.

European LNG bunker prices closely trend with the cargo market in the region. Sources have been reporting that ample supply and tepid demand are weighing on prices.

Platts assessed the NWE marker at $8.874/MMBtu on Jan. 15, a five-month low for the marker which was last seen lower than $9/MMBtu on Aug. 1, 2023.

An Atlantic-based source said that LNG prices were not where they were expected to be this winter. As a result, demand on the spot for LNG bunkers has remained healthy.

"If the market continues like this into spring and summer, this is a very good sign. This is also a good sign that future winters should not frighten us anymore," the source said.

Across the Atlantic, the LNG bunker price in the US Southeast Coast has also come under bearish pressures. Platts assessed it at $12.027/MMBtu on Jan. 15, a four-month low for the marker. It was last seen lower when Platts assessed it at $11.867/MMBtu on Oct. 5, 2023.