Sunday, January 29, 2023
spot_img
HomeGasLNG seeing boost as competitive US bunker fuel as Atlantic cargo prices...

Subscribe

To our FREE newsletter
Get all the latest maritime news delivered straight to your inbox.

LNG seeing boost as competitive US bunker fuel as Atlantic cargo prices fall

LNG is seeing a competitive boost as a US bunker fuel, as FOB prices have dropped sharply from record highs and spot marine fuel has trended higher.

Shipowners are increasingly evaluating shifting economics and environmental considerations.

Some market participants see the ability to offer a Henry Hub-linked price as a unique advantage for LNG producers in the US, whether for small-scale or large-scale exports or for use as a bunker fuel. LNG bunker prices in Europe also are seeing additional attention. In recent months, an Italian strategy group was heard to have met with market participants trying to get intelligence about LNG bunkering opportunities in the Mediterranean; they were said to be scouting locations around Poland and Turkey.

“The world has been shifting to alternative fuels,” said an Atlantic-based LNG trader. “We may see a switch to gas if it keeps coming down.”

US SE Coast LNG bunkers were assessed at $15.174/MMBtu Jan. 18, or 115% Henry Hub plus $11.25/MMBtu for volumes of 3,000-5,000 cu m. That was slightly cheaper than the latest bulk 0.5%S marine fuel barge value at 1630 London time, which was $15.249/MMBtu, or $589.25/mt. On an equivalent basis, at the same time, USGC HSFO, with the highest sulfur content of the three fuels, was the least expensive, at $9.616/MMBtu.

The Platts Gulf Coast Marker for US FOB cargoes loading 30-60 days forward was assessed at $15.35/MMBtu Jan. 18, down nearly 80% from the record-high $73.35/MMBtu Aug. 26, 2022. LNG supplies have flooded the Atlantic in recent months, amid Europe’s efforts to build gas inventories while at the same time reducing its reliance on Russian supplies. Europe entered the winter with gas storage more than 90% full. Relatively mild weather since then has kept gas stocks high.

Meanwhile, spot marine fuel bunkers pricing has generally trended higher for US Gulf Coast ports in 2023, with assessments tracking recent rebounds for crude futures. Additionally, markets are seeing tight supply and logistical challenges related to fog, further propping up values in recent days.

Bulk 0.5%S marine fuel barge value has risen from a Dec. 30 assessment of $567.25/mt, with some sentiment pointing to strong demand from the retail bunkers segment in the US Gulf Coast. On that front, Houston spot 0.5%S bunkers pricing has risen from $580/mt ex-wharf Dec. 30 to its most recent assessment of $618/mt ex-wharf Jan. 17.

The New Orleans market, which competes with Houston for retail bunker stems, has seen retail 0.5%S bunkers value jump from $570/mt to end 2022 to its most recent close at $690/mt ex-wharf—a three-month high.

“No barrels, resupply uncertain,” a source said recently of New Orleans’ rising prices. “Suppliers are struggling to find resupply barrels.”

The situation has seen each of the key USGC ports prop up the other at times on retail values, as ships will generally consider both for refueling operations despite Houston typically carrying a discount to New Orleans.

“There are no avails, or won’t be soon,” a second source said of Houston. “Product is tight, and resupply has gone up in price considerably.”

That retail spread has been inverted at times in January, but more recently tight supply had led to New Orleans seeing its premium widen over Houston.

Source: Platts

Related Posts

Video

Finance & Economy
Shipping News
Ports

Oaktree looking at block sale of existing shares in Hafnia Limited

OCM Luxembourg Chemical Tankers S.à r.l. which is ultimately controlled by funds managed by Oaktree Capital Management L.P. (the "Seller") has retained Fearnley Securities,...

John Fredriksen Increases Stake in Euronav

Norwegian billionaire John Fredriksen has once again increased his stake in Belgian tanker company Euronav in wake of Frontline’s termination of its combination agreement...

First Citizens Bank Arranges $44.2 Million of Debt Financing for Navios Partners

First Citizens Bank announced that its Maritime Finance group, part of the CIT division, served as sole lead arranger on $44.2 million in debt...

Eagle Bulk Appoints Kate Blankenship to Board of Directors

Eagle Bulk Shipping Inc., one of the world’s largest owner-operators within the midsize drybulk vessel segment, announced that it has appointed A. Kate Blankenship...

Golar LNG: Unwind of majority of TTF hedges of 2023 and 2024 Dutch Title Transfer Facility exposure

Golar LNG Limited (“Golar”) announced that it has unwound the majority of its swap arrangements for its Dutch Title Transfer Facility (“TTF”) linked production...

Baltic index hits fresh multi-year lows on capesize dip

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index falls for seventh session on lower capesize demand

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk...

Baltic index hits fresh 2-1/2-year low as larger vessel rates slip

The Baltic Exchange’s main sea freight index extended losses to a sixth straight session...

Baltic index down for fifth day on lower vessel rates

The Baltic Exchange’s main sea freight index fell for the fifth straight session on...

Maritime UK: Net Zero Review published

On 13 January, the Department for Business, Energy and Industrial Strategy (BEIS) published the...

Port of Long Beach Closes 2022 with Second-Busiest Year

The Port of Long Beach marked its second-busiest year on record by moving 9.13 million twenty-foot equivalent units in 2022, allowing for a return...

Hapag-Lloyd AG acquires share in J M Baxi Ports & Logistics Limited

Hapag-Lloyd AG signed a binding agreement today under which it will acquire 35% of J M Baxi Ports & Logistics Limited (JMBPL) from a...

Nigeria opens ‘game changer’ billion-dollar deep seaport

Nigeria opened a billion-dollar Chinese-built deep seaport in Lagos on Monday, which is expected to ease congestion at the country’s ports and help it...

SC Ports handles nearly 3 million TEUs in record 2022

South Carolina Ports had a record 2022 with the most containers ever handled at the Port of Charleston. SC Ports moved nearly 2.8 million TEUs...

January oil loadings from Russia’s Baltic ports set to jump 50% vs Dec

Urals and KEBCO crude oil loadings from Russia’s Baltic ports of Primorsk and Ust-Luga in January are set to rise by 50% from December...