Rotterdam sees rise in LNG bunkering sales

The Risakvika Liquefied Natural Gas (LNG) index for September rose 0.5% higher than it was for the same period of time in 2019, to €18.92/MWh. This rise is a result of higher gas prices in the European market in light of seasonal demand and lower flows in Ukraine of fuel oil sales. A number of oil prices saw raises, with fuel oil front prices (FO 3.5) seeing an increase of 2.2% week on week to US$245.75/t last week. Gasoil prices gained 0.8% from the previous week. Low sulphur (MFO 0.5) front month closed at US$310.34/t, with an increase of 2.5% from the previous week. It was announced by the Port of Rotterdam that in Q2 2020, sales of LNG as marine fuel amounted to 26,400 tonnes, 66% higher than sales in Q1 2020, which amounted to 15,900 tonnes. This amount is also a significant increase from the same period in 2019, where sales of LNG as marine fuel amounted to only 6,340 tonnes, an increase of 316%. LNG has also increased its market share in bunkering due to a drop in sales of traditional marine fuels such as fuel oil and marine gasoil compared to last year, probably due to a lower volume of shipping activity following the COVID-19 pandemic, which also may have limited the growth of LNG. fuel oil However, data from the Society for Gas as a Marine Fuel (SGMF) has shown that the number of LNG-fuelled ships are increasing, with 18 LNG-fuelled ships currently in operation globally and another 212 on order, possibly signalling a trend towards the use of LNG-fuelled vessels. There are also infrastructure improvements with respect to LNG, with Vopak’s Europort Terminal in Rotterdam introducing simultaneous LNG bunkering during cargo operation, thus cutting down on time spent as well as expenses from bunkering.   Source: Hellenic Shipping News

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