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Road transport
Maritime transport
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.
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Risavika LNG dropped 0.8 % week on week and settled at 28.94 EUR/MWh for May contracts. Bullish sentiment for the European gas prices has eased with weather forecast for the end of April is coming closer to seasonal norms. However, the demand for storage injections keeps prices at high levels. The European natural gas storage inventories started injection season with below the 5-year average levels, meaning that additional 47.3 TWh of natural gas should be injected to the storage during the season. The situation creates a demand for LNG, which will be a subject to a spread between natural gas prices in Asia and Europe this summer.
Fuel oil 3.5 has slightly dropped as the inventories showed a considerable draw, 0.4 % reduction week on week and settled at 336.53 USD/t for May contracts. In contrast, low sulfur fuel oil (MFO 0.5) gained 2.6 % and was at 446.86 USD/t, and marine gasoil (MGO 0.1) gained 0.8 % and settled at 494.33 EUR/MWh. Development of oil product prices will mostly depend on inventory data, while supply increase for May may add bearish sentiment. Total stocks fell over the past week, according to the latest data from consultancy Insights Global. This is the lowest recorded since the week to 4 December. Stringent controls on the movement of people across Europe have reduced regional transport fuel demand, creating arbitrage opportunities for buyers elsewhere.
|
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 |
|
28.94 |
31.94 |
24.13 |
30.68 |
33.94 |
36.24 |
EUR/MWh |
|
490.26 |
541.08 |
336.53 |
446.86 |
494.33 |
505.42 |
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, Natural Gas Intelligence, Insights Global
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
Risavika LNG gained 1.6 % week on week for May contracts, reaching 29.17 EUR/MWh. The European gas prices were supported by a colder weather forecast for most of April and start of gas injection season. Strong heating demand in the market with lower pipeline gas and LNG supplies resulted in high reliance on underground inventories, leaving them at historically low levels for the start of inventories injection season. This spring and summer gas demand will be higher due to need for injections, providing support for the gas prices. On the other hand, industrial gas demand in most European countries remains below the three-year average, as economic activity remains below the pre-pandemic trend. Despite weak industrial demand projections, gas prices remain supported for Q2 2021 on colder weather forecast and need for inventories.
Benchmark crude prices weakened after OPEC+ decision to increase oil production starting from May despite the expectation that production cuts would continue for the next month. The decision by OPEC+ together with uncertainty about oil demand recovery in Europe have impacted front month oil products prices. Fuel Oil 3.5 has dropped by 5.1 % and closed at 337.76 USD/t for May contracts, low sulfur oil (MFO 0.5) has lost 3.7 % and was seen at 435.31 USD/t, and marine gasoil (MGO 0.1) has dropped by 2.3 % and was seen at 490.38 EUR/MWh. The OPEC + will meet again at the end of April to evaluate the market situation and review the output policy, further keeping prices in check. The demand for oil and inventories data will play a major role in future oil production policy.
|
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 |
|
29.17 |
32.17 |
24.22 |
29.89 |
33.67 |
35.70 |
EUR/MWh |
|
494.16 |
544.98 |
337.76 |
435.31 |
490.38 |
498.00 |
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
Risavika LNG gained 5 % week on week, reaching 28.7 EUR/MWh for April index. The sentiment for European gas prices has changed to a bullish one due lower than average temperature forecast in April and a start of inventory injection season. However, European LNG supply has been sharply recovering through March, over 50% on the month, and climbed back to above last year levels. The recovery has been largely driven by northwest Europe’s liquid hubs. The supply side has been dominated by Qatar, Russia, and US. European LNG influx can add bearish sentiment to future gas prices in coming months.
Oil product prices were mostly sideways last week despite crude prices increase due to congestion in the Suez Canal. Fuel oil 3.5 has decreased 1.3 % and closed at 355.02 USD/t for front month contracts, low sulfur oil (MFO 0.5) has dropped 0.9 % and was at 451.35 USD/t, and marine gasoil (MGO 0.1) stayed the same level as a week before. With Suez congestion issue resolved, all attention is on OPEC + meeting this week. If OPEC + decides to roll over the current oil production cuts, the oil products prices are most likely to gain support for front month contracts. However, the outcome will be highly dependent on the demand for oil products, which is currently weak due to prolonged travel restrictions.
|
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 |
|
28.70 |
31.70 |
25.45 |
30.99 |
34.44 |
36.60 |
EUR/MWh |
|
486.20 |
537.02 |
355.02 |
451.35 |
501.68 |
510.49 |
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, European LNG Hub, S&P Global Platts
*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.
Swedish passenger shipping company, Destination Gotland, has decided to increase its biogas fuel blend from one to ten percent in its gas-powered ships.
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.
ESL Shipping, the leading carrier of dry bulk cargo in the Baltic region, promotes sustainability through LNG powered vessels.
