ENGINE on Fuel Switch Snapshot: Pooling slump erases LBM’s edge over LNG
LBM swings to $43-48/mt premiums over LNG in Rotterdam; potential pooling value of LBM’s surplus drops $53-62/mt; LSMGO undercuts LNG and LBM in Rotterdam.
Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:
Liquefied biomethane (LBM) has flipped from a $2/mt discount to LNG to a $48/mt premium over it in Rotterdam for vessels with Otto medium speed (Otto MS) engines. For vessels with diesel slow speed (diesel SS) engines, it has flipped from a $6/mt discount to a $43/mt premium.
OceanScore’s FuelEU pooling index has fallen by €15.35/mtCO2e ($17/mtCO2e) to €80.45/mtCO2e ($90/mtCO2e) over the past week. This has cut the potential pooling value of LBM’s compliance surplus by $53-62/mt on intra-EU voyages, against $0-9/mt for LNG.
LBM prices have gained $133-141/mt depending on engine type, and LNG prices $84-92/mt over the past week. The lower potential pooling value of LBM’s compliance surplus has added to the rise in LBM prices and undercut their edge over LNG.
This story was originally published by Manifold Times. Read the full story at Manifold Times →
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