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

Sales Director, Maritime
tel. +358 40 483 9129
jacob.granqvist@gasum.com

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The cleanest marine fuel available

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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

11.05.2021

Maritime market update: expectation of more LNG on high hub prices

Risavika LNG risen further by 1.9 % to 33.94 EUR/MWh week on week. The European gas hubs remain bullish on demand for storage injection, slowdown of LNG arrivals, colder outlook for rest of May and competing fuels. The temperatures in Northwest Europe were considerably higher seasonal averages during last week but expected to drop below seasonal norms during this week. June gas contract prices in Europe are trading close to Asian spot prices, indicating that there could be more LNG cargo arrivals next month.

Oil products gained on the inventories draw and benchmark oil prices being resilient despite the news from India. Fuel oil 3.5 has further increased by 1.2 % and settled at 371.70 USD/t for June contracts. Low sulfur fuel oil (MFO 0.5) increased by 2.2 % and was at 477.77 USD/t, and marine gasoil (MGO 0.1) gained the most, increase by 3.3 % and settled at 542.78 EUR/MWh. However, there is a bearish sentiment weighs on oil product prices as the World Health Organization declared India's B.1.617 coronavirus strain as a variant of concern. Crude oil and refined product prices slumped during mid-morning trade in Asia.

 

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

33.94

36.94

26.65

32.80

37.27

39.56

EUR/MWh

574.96

625.79

371.70

477.77

542.78

551.82

USD/t

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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, S&P Global Platts

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

Read more
04.05.2021

Maritime market update: a strong upside for LNG and sideways oil products prices

Risavika LNG has increased by considerable 9.7 % to 33.29 EUR/MWh from last week as month has changed. Below seasonal norm temperatures, rally of external fuels and carbon price were main drivers for the European gas prices increase for June. Looking ahead, gas demand from storages is projected to be significant this injection season. To reach full storages by the start of the winter season, injection rate should be at least 60 % higher than seen last summer, which will impact summer gas prices.

Oil products gained slightly for June contracts compared to the previous month, the market is more optimistic with US refineries ramping up production. Inventory data have also provided positive sentiment, the independently held inventories of oil products in the Amsterdam-Rotterdam-Antwerp (ARA) trading and storage hub have fallen to their lowest since April 2020. Fuel oil stocks fell by more than any other product with increase in bunkering demand within the ARA area as ships continued to arrive after being stuck behind the Ever Given in late March. However, covid-19 surge in India keeps benchmark crude oil prices in check. Fuel oil 3.5 has increased by 1.2 % and settled at 376.23 USD/t for June contracts. Low sulphur fuel oil (MFO 0.5) increased by 0.8 % and was at 467.42 USD/t, and marine gasoil (MGO 0.1) gained 1.9 % and settled at 525.10 EUR/MWh.

 

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

33.29

36.29

26.33

32.09

36.05

38.35

EUR/MWh

563.87

614.69

367.23

467.42

525.10

534.94

USD/t

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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, Insights Global

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

 

Read more
20.04.2021

Maritime market update: full or partial closures of refineries in Europe

Risavika LNG gained 5.2 % week on week and settled at 30.54 EUR/MWh for May contracts. The weather forecast turned to warmer but still below seasonal norms in the beginning of May, which supported front month European prices. With temperatures staying below seasonal averages, the gas storages in Europe are still in withdrawal mode, creating more demand for injections in coming months and providing a bullish sentiment to European gas prices.

All oil products have increased following the benchmark crude oil prices on the back of the economic data. Fuel oil 3.5 has increased by considerable 8.8 % and reached 369.06 USD/t for May contracts. Low sulphur fuel oil (MFO 0.5) gained 5.1 % and was at 471.05 USD/t, and marine gasoil (MGO 0.1) gained 5.2 % and settled at 521.33 EUR/MWh. Nevertheless, the demand for oil products remains uncertain due to resurging covid-19 cases in major emerging economies such as Brazil and India. As an aftermath of the pandemic, European refiners are reporting financial difficulties. Refining margins went below breakeven levels and likely to remain so until oil demand recovery and inventories draw, potentially tightening future supplies. Trading firm Gunvor has permanently shut the two crude distillation units (CDUs) at its 80 000 b/d Europoort refinery in Rotterdam. According to Platts, currently there are more than 3.8 million b/d of refining capacity temporary closed or in a maintenance period in Europe.

 

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

30.54

33.54

26.46

32.34

35.79

38.09

EUR/MWh

517.37

568.19

369.06

471.05

521.33

531.29

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, S&P Global Platts

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

Read more