What does LNG mean? What about LBG?

Gas-related abbreviations can be a bit confusing. Here’s our quick guide to Gasum gas products for maritime transport.

LNG = liquefied natural gas

LBG = liquefied biogas

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Jacob Granqvist

Vice President, Maritime
tel. +358 40 483 9129
jacob.granqvist@gasum.com

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The cleanest marine fuel available

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.

Decarbonization of the maritime industry 

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

Stay up-to-date about maritime market

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. 

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Maritime market updates

01.12.2021

Maritime market update: volatility to continue

Risavika LNG index has increased to 104.8 EUR/MWh gaining 10 % week on week as Europe anticipates a cold start of December, higher withdrawals from the storage, while gas supply is tight. The day-ahead capacity auctions for Ukrainian pipelines and at Germany’s Mallnow compressor station will provide a strong signal on price development in December. Russian Gazprom has said it aims to keep refilling European storage sites until the end of December, however, it hasn’t used short-term auctions to ship more fuel. The market is likely to see day ahead prices volatility this month as the price will be defined by weather and short-term capacity bookings.

Benchmark oil prices dropped for the fifth consecutive week and were just above 71 USD/BBL mark as the market anticipates impact of new covid variant on oil demand recovery, while release of strategic reserves could have impact in the first quarter of 2021 oversupplying the market.  Oil product prices were dropping following the benchmarks. Fuel oil 3.5 (FO 3.5) price was down 7.3 % to 386.53 USD/t, low sulphur oil (MFO 0.5) dropped 7 % to 504.33 USD/t and marine gasoil (MGO 0.1) lower by 7.6 % to 609.8 USD/t week on week.

 

 

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

104.80

107.80

27.71

34.63

41.87

43.24

EUR/MWh

1775.37

1826.20

386.53

504.33

609.80

603.08

USD/t

imagevbpwv.png

 

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, Bloomberg, Argus Media

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

Read more
26.11.2021

Maritime market update: Nord Stream 2 delay weighs on gas prices

Risavika LNG index at 94.02 EUR/MWh and 4.3 % higher week on week. European gas prices were bullish on Nord Stream 2 gas pipeline delay. Last week, Germany's energy regulator temporarily halted the certification process for the new pipeline that will carry Russian gas into Europe. The regulator said certification was being temporarily halted because under German law the Swiss-based consortium behind Nord Stream 2 first needed to form a German subsidiary company to secure an operating licence. According to Reuters, the suspension could delay commissioning of the infrastructure until next March.

Oil product prices were further down following the fourth consecutive week drop in crude benchmarks. Fuel oil 3.5 (FO 3.5) price was down 2.2 % to 414.60 USD/t, low sulphur oil (MFO 0.5) dropped 2.9 % to 539.74 USD/t and marine gasoil (MGO 0.1) lower by 1.8 % to 656.08 USD/t in two weeks. The combination of factors such as new European lockdowns, a potential release of Strategic Petroleum Reserve (SPR) in the US and elsewhere and economic slowdown in China are weighing on oil prices.

 

 

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

94.02

97.02

29.73

37.06

45.05

47.04

EUR/MWh

1592.67

1643.49

414.60

539.74

656.08

656.12

USD/t

image5dvl.png

 

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, Reuters

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

Read more
16.11.2021

Maritime market update: A coalition of 19 countries at COP26 to create zero emissions shipping

Risavika LNG index was at 89.95 EUR/MWh and up 15 % from two weeks back. The European gas prices remain volatile as expected, the recent bullish sentiment came from Gazprom not booking any additional gas transit capacity via Ukraine or via the Polish section of the Yamal-Europe pipeline for December. However, the company has been booking short-term transit capacities and started refilling its European storage facilities last week.

Oil product futures are dropping for the third week as oil demand recovery has slowed down. OPEC decreased its 2021 forecast call on its own members' crude by more than 100,000 BBL/D to 27.65mn BBL/D. Fuel oil 3.5 (FO 3.5) price was down 4.4 % to 423.91 USD/t, low sulphur oil (MFO 0.5) dropped 2.6 % to 555.61 USD/t and marine gasoil (MGO 0.1) lower by 4.4 % to 667.77 USD/t in two weeks.

In a longer-term perspective, discussions on decarbonization of maritime shipping took place during COP26 resulting in agreement between 19 countries including Britain and the United States to create zero emissions shipping trade routes between ports to speed up the decarbonisation of the global maritime industry. The countries agreed to support the establishment of at least six green corridors by 2025, which will require developing supplies of zero emissions fuels, the infrastructure required for decarbonisation and regulatory frameworks. However, it was unclear how green corridor commitments would get to zero shipping emissions and immediate need for regulatory changes had been highlighted.

 

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

89.95

92.95

30.39

38.15

45.85

49.93

EUR/MWh

1523.72

1574.54

423.91

555.61

667.77

696.45

USD/t

 

image5fhv.png

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, Reuters

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

Read more