BunkeringEurope

LNG bunker costs now competitive

For the first time this year there is an economic case for owners of dual-fuel LNG ships to pay for some gas in their tanks. 

LNG has been the number one alternative fuel for ship orders for a number of years. Class society DNV’s latest estimates show there are 904 confirmed LNG-fuelled ships, including vessels on order. 

However, for much of the 2020s the price of LNG has been prohibitively high, meaning the vast majority of dual-fuel ships have been trading using traditional bunker fuel. 

Norwegian broker Lorentzen & Co noted this week that LNG used as bunkers is now “radically lower priced” than compliant fuel oil and on a par with heavy fuel oil. 

According to Ship&Bunker, LNG prices in Rotterdam are at $440 per ton, for the same energy equivalency as IFO380 bunker fuel. VLSFO in the same area stands at $531 per ton and HSFO at $431.50 per ton.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.
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