Fuel Switch Snapshot: Pooling slump erases LBM’s edge over LNG

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.

LSMGO has slid in Rotterdam while both gaseous fuels have climbed, flipping its premiums of $73/mt over LNG (diesel SS) and $79/mt over LBM (diesel SS) to discounts of $94/mt and $137/mt.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →