LNG Bunker Prices Jump $78 in Rotterdam as Hormuz Fears and Heatwaves Tighten Supply
Updated
Updated · IndexBox, Inc. · Jul 15
LNG Bunker Prices Jump $78 in Rotterdam as Hormuz Fears and Heatwaves Tighten Supply
1 articles · Updated · IndexBox, Inc. · Jul 15
Summary
$78 per metric ton higher in Rotterdam and $26 higher in Singapore, LNG bunker fuel prices climbed over the past week, with Singapore's premium over Rotterdam narrowing to $133 from $185.
Strait of Hormuz ship attacks, U.S.-Iran strikes and missile exchanges, and disrupted Middle East flows lifted gas benchmarks, pushing front-month TTF to $16.64 per mmBtu and JKM to $16.57.
Europe's heatwave added pressure as gas demand for power rose while LNG imports faced stronger Asian competition; EU storage reached 51.5% on July 10, still 17% below a year earlier and under the five-year 66% average.
Asia's heat also supported prices, with North Asian cooling demand rising and June LNG imports up 7% year on year despite high prices.
The price surge comes as LNG bunkering expands operationally, with Matson selecting LNG as its long-term marine fuel and Molgas securing a 10-year LNG bunker license at Bilbao.
As geopolitical conflict sends LNG prices soaring, is the shipping industry's billion-dollar bet on this transition fuel about to backfire?
With the Strait of Hormuz closed, which nations will win the global scramble for LNG dominance as supply chains are redrawn?
Europe pivoted from Russian gas to global LNG. Is the Strait of Hormuz crisis exposing a fatal flaw in its energy security strategy?
Rotterdam LNG Prices Soar as Strait of Hormuz Crisis Threatens European Energy Security
Overview
The global LNG market is facing an immediate crisis due to escalating tensions and disruptions in the Strait of Hormuz, a key route for energy shipments. Attacks on LNG carriers and rising military tensions between the US and Iran have sharply increased Asian LNG prices, as seen in the Japan/Korea Marker. Because the LNG market is highly interconnected, these price surges are quickly affecting Europe, including Rotterdam. The disruption has caused traffic to nearly halt in the strait, intensifying concerns over supply and creating a ripple effect that threatens energy security and drives up costs across global markets.