Home   |  News  |  Features  |  Media Pack  |  Contact































LNG now more expensive than VLSFO

Global wholesale gas prices soar but effect on shipping mainly delayed

LNG bunker spot prices in Rotterdam
overtook the cost of low-sulphur fuel oil
(LSFO) in early September.

October 20, 2021


According to Ship & Bunker, Rotterdamsourced VLSFO was quoted at US$518 per tonne on 8 September compared to the spot LNG equivalent at $846 per tonne.


This meant LNG bunker prices for Rotterdam had changed from being US$130 less than VLSFO in March 2021, to costing US$328 per tonne more as of early September.


Most shipowners buying LNG as fuel are believed to have long term contracts, and are unlikely to be affected in the short term.


Reuters news agency commented that gas prices were expected to climb further during the northern hemisphere winter “when demand for LNG for heating typically surges”.

Flip Dankelman, risk manager at Amsterdam-headquartered LNG marine supplier Titan LNG told Ship & Bunker: “It is important to understand that, although prices are currently very high, it will not affect the business case for LNG-fuelled vessels, as prices are expected to drop in the future,”


“The recent legislation to add shipping under the ETS gradually from 2023 is yet another factor that supports the decision to run on LNG,” said Dankelman.


Meanwhile, Reuters also reported LNG carriers were restricting use of cargo burnoff as much as possible and operating on fuel oil, due to the high LNG prices.

Get in touch

Contact one of the World Bunkering team.

Constructive Media

Constructive Media
50 George Street,

Tel: 01495 740050
Email: ibia@constructivemedia.co.uk

On behalf of :

IBIA Ltd Office 239
New Broad Street House
35 New Broad Street
London, EC2M 1NH
United Kingdom

Tel: +44 (0) 20 3397 3850
Fax: +44 (0) 20 3397 3865
Email: ibia@ibia.net
Website: www.ibia.net


Publisher & Designer: Constructive Media - ibia@constructivemedia.co.uk
Editor: David Hughes - anderimar.news@googlemail.com
Deputy Editor: Unni Einemo - unni@ibia.net
Project Manager: Alex Corboude - alex@worldbunkering.net

Terms & Conditions | Copyright © 2021 World Bunkering

- Online IBIA Bunker Training Course -