Get to know our General Terms and Conditions.
Gas-related abbreviations can be a bit confusing. Here’s our quick guide to Gasum gas products for maritime transport.
If we are to fight climate change, emissions from the use of conventional fuels such as heavy fuel oil in maritime transport need to be reduced. Rapidly becoming more common as a cost-effective alternative, liquefied natural gas (LNG) is the cleanest marine fuel available. Compared with heavy fuel oil, LNG has significantly lower CO2 emissions, and almost nonexistent particle emissions.
LNG is a safe and proven technology that offers higher energy content and lower operational and maintenance costs. It is suitable for all vessel types, including ferries, passenger ships, tankers, bulk carriers, supply and containerships.
As a premium provider of LNG, Gasum is a trustworthy partner for both experienced buyers and for customers that are switching from conventional fuels to LNG. Our wide variety of sustainable yet efficient services and solutions support our customers in optimising their operations for a more sustainable future.
Maritime traffic generates 3 percent of the world’s total greenhouse gas emissions such as carbon dioxide. This contributes to global warming and extreme weather conditions. CO2 is emitted by ships using petroleum-based fuels to power main and auxiliary engines. Through the International Maritime Organization (IMO) the world’s shipping industry is constantly working to reduce CO2 emissions.
LNG as a marine fuel meets all the current and forthcoming IMO and EU regulations. Switching to LNG means complete removal of Sox and particles, and reduction of Nox emissions of up to 85 percent. LNG reduces CO2 emissions by at least 20 percent.
As a fuel, LNG is interchangeable with renewable LBG (liquefied biogas), as they both consist mainly of methane. This means that the two gases can be mixed. Using both LNG and LBG is one of the concrete actions that will take us towards a low-carbon society of the future.
Contact our sales team to discuss more about gas as a solution for cleaner maritime transport.
Towards cleaner maritime transport
We publish maritime market updates on our website every week. Updates cover topics from prices to current trends affecting maritime market. See the latest market updates below.
Sign up here to get the maritime market updates directly to your email.
Risavika LNG front month reached 30.20 EUR/MWh sideways to last week. European gas prices remained supported by tightened supply and cold weather outlook. However, the weather forecast for the rest of the January and beginning of February shows higher than seasonal norms temperatures, which can reduce demand for gas, thus, reduce gas prices for front month.
Oil products showed a slight increase of 0.5-1 % for most of the products. However, fuel oil 3.5 has dropped by 3 % and closed at 309.35 USD/t for Feb contracts. Low sulfur oil (MFO 0.5) has increased by 0.5 % and closed at 402.37 USD/t, and MGO 0.1 has increased by 1 % week on week and closed at 444.93 USD/t.
A cold snap has hit Japan and much of north-east Asia in recent weeks, Japanese utilities have had to scramble to source fuel supplies. Prices for LNG cargoes in the Asian spot market have soared to record levels this week as the cold snap hit, up almost 20 fold from just a few months ago when the market was seen as oversupplied. Energy traders have diverted every LNG cargo they can towards the Asian market, with China and South Korea also scrambling to buy. Many uncommitted cargoes were diverted from European market toward Asian, tightening supply in Europe during cold period and leading to highest in two years prices in Europe. According to FT sources, LNG price spike would have long-term ramifications for the industry, from boosting the appetite to invest in future projects to making utilities think long and hard about how to source cargoes long-term.
Front Month Price index |
||||||
LNG Risavika* |
LBG blend Risavika** |
FO 3.5 FOB Rdam |
MFO 0.5 FOB Rdam |
MGO 0.1 FOB ARA |
ULSD FOB ARA |
Unit |
30.20 |
33.20 |
22.18 |
27.63 |
30.55 |
32.39 |
EUR/MWh |
511.61 |
562.43 |
309.35 |
402.37 |
444.93 |
451.73 |
USD/t |
LNG Risavika - LNG FOB Risavika
LBG Risavika 10 % - 10 % blend of Liquified Biogas
FO 3.5 FOB Rdam – European 3.5% Fuel Oil Barges FOB Rdam (Platts) Futures Quotes
MFO 0.5 FOB Rdam - European FOB Rdam Marine Fuel 0.5% Barges (Platts) Futures Quotes
MGO 0.1 FOB ARA - Gasoil 0.1% Barges FOB ARA (Platts) Futures Quotes
ULSD FOB ARA - European Diesel 10 ppm Barges FOB ARA (Platts) Futures Quotes
Source: CME Group, Gasum, Financial Times
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
Risavika LNG front month reached 30.12 EUR/MWh. European gas prices continued a strong upside on colder outlook for the front month, lower Russian supplies through Ukraine and fewer LNG arrival to Europe. Strong consumer demand in Asia, a severe shortage of prompt LNG supplies and spot tanker availability have combined to send northeast Asian spot LNG prices to an all-time high.
Oil products has gained 5 -11 % during last week on OPEC+ oil cuts continuation and Saudi Arabia’s commitment to cut 1 million BBL/D from February 2021. The highest gain was for fuel oil 3.5, it closed at 318.57 USD/t for front month contracts gaining 11.2% week-on-week. Low sulfur oil (MFO 0.5) has increased by 7.7 % and closed at 400.3 USD/t, and MGO 0.1 has increased by 5.8 % week on week and closed at 440.53 USD/t.
Rystad Energy reported that despite the lockdowns, global LNG imports grew 3% to 363 million tons (mt) in 2020, mainly driven by Asian demand which grew 4 % year-on-year. Liquefaction capacity grew 5% in 2020, reaching 464 million tons per annum (tpa), as new plants started operations mainly in the US. Furthermore, Rystad Energy forecasts that the world’s LNG production is expected to reach 672 mt in 2040, a 79% growth from 2020 numbers, while global liquefaction capacity is expected to nearly double by 2040, reaching a total of 886 million tpa, a 91% increase from 2020. This will allow to have higher availability of LNG for bunkering in future.
Front Month Price index |
||||||
LNG Risavika* |
LBG blend Risavika** |
FO 3.5 FOB Rdam |
MFO 0.5 FOB Rdam |
MGO 0.1 FOB ARA |
ULSD FOB ARA |
Unit |
30.12 |
33.12 |
22.84 |
27.48 |
30.25 |
32.05 |
EUR/MWh |
510.25 |
561.07 |
318.57 |
400.30 |
440.53 |
447.03 |
USD/t |
LNG Risavika - LNG FOB Risavika
LBG Risavika 10 % - 10 % blend of Liquified Biogas
FO 3.5 FOB Rdam – European 3.5% Fuel Oil Barges FOB Rdam (Platts) Futures Quotes
MFO 0.5 FOB Rdam - European FOB Rdam Marine Fuel 0.5% Barges (Platts) Futures Quotes
MGO 0.1 FOB ARA - Gasoil 0.1% Barges FOB ARA (Platts) Futures Quotes
ULSD FOB ARA - European Diesel 10 ppm Barges FOB ARA (Platts) Futures Quotes
Source: CME Group, Gasum, Argus Media, Rystad Energy
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
Risavika LNG front month has increased considerably to 29.85 EUR/MWh following the upside in European gas prices last week. Continental Europe temperatures forecast below seasonal norms until end of this week and lower gas Russian flows via Velke Kapusany into Slovakia from the beginning of January 2021 are tightening the market.
Oil price remained above 50 USD/BBL, uncertainly with covid vaccine rollout, new strain and OPEC+ meeting regarding production plan for February and beyond were the factors keeping the prices in check. Oil products has weakened slightly for February contracts. Fuel oil 3.5 has lost 1.2% and closed at 282.93 USD/t for front month contracts. Low sulfur oil (MFO 0.5) has decreased 0.1 % and closed at 369.28 USD/t, and MGO 0.1 has decreased by 0.6 % week on week and closed at 415.1 USD/t.
According to Argus Media, US refinery demand for heavy residual feedstocks will support European high-sulfur fuel oil (HSFO) prices in 2021. US refiners purchased a higher number of Russian high-sulfur residual cargoes in 2020, for processing as a substitute for heavy crude grades in their coking units to produce more road fuels. Scrubber-related demand could also boost HSFO sales in the first half of 2021, but this is likely to ease towards the end of the year by when most installations will be completed. A narrow spread between HSFO and IMO-compliant fuels will probably discourage future scrubber installations.
Front Month Price index |
||||||
LNG Risavika* |
LBG blend Risavika** |
FO 3.5 FOB Rdam |
MFO 0.5 FOB Rdam |
MGO 0.1 FOB ARA |
ULSD FOB ARA |
Unit |
29.85 |
32.85 |
20.28 |
25.35 |
28.50 |
30.34 |
EUR/MWh |
505.59 |
556.41 |
282.93 |
369.28 |
415.10 |
423.20 |
USD/t |
LNG Risavika - LNG FOB Risavika
LBG Risavika 10 % - 10 % blend of Liquified Biogas
FO 3.5 FOB Rdam – European 3.5% Fuel Oil Barges FOB Rdam (Platts) Futures Quotes
MFO 0.5 FOB Rdam - European FOB Rdam Marine Fuel 0.5% Barges (Platts) Futures Quotes
MGO 0.1 FOB ARA - Gasoil 0.1% Barges FOB ARA (Platts) Futures Quotes
ULSD FOB ARA - European Diesel 10 ppm Barges FOB ARA (Platts) Futures Quotes
Source: CME Group, Gasum, Argus Media
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
LNG helps to mitigate climate change by offering a cleaner alternative to conventional fuels used in maritime transport.
LBG is a fossil-free and 100% renewable fuel that can reduce CO2 emissions over its life cycle by up to 85% compared to conventional fuel.
We offer ship to ship bunkering of LNG both at sea and in port. Our LNG bunker vessel Coralius serves frontrunners in the marine market.
Samskip is a European multimodal transport company and short-sea operator. The company is increasingly refueling LNG on ships and cars. Biogas is a future area of interest.
When the Gothenburg based shipowner company Furetank had to make a decision about which fuel to invest in, they opted for liquefied gas.
ESL Shipping, the leading carrier of dry bulk cargo in the Baltic region, promotes sustainability through LNG powered vessels.