Road transport
Maritime transport
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.
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.
Risavika LNG index has dropped by 1.1 % week on week to below 15 EUR/MWh point. Gas supplies to the European gas markets remain healthy, as Nord Stream pipeline flows are back after the maintenance. Although, LNG arrivals and sendouts still seem to be low.
OPEC+ production cuts kept prices supported, and as covid-19 cases in the US decreased, there was a return of China-US tensions, which brought another uncertainty to the oil demand development. Despite this all, oil prices were quite stable last week. Fuel oil front prices (FO 3.5) closed at 238.61 USD/t last week, dropping by 0.7 % week on week. Low Sulphur (MFO 0.5) front month closed at 308.65 USD/t, losing 2.8 % from the previous week.
Gasoil stocks held independently in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dipped 1.9 % to 2.7 million tonnes in the week to July 23, according to Insights Global. Compared to last year, jet fuel stocks were 24.2% higher, while gasoil inventories were down 10.4%.
The Port of Rotterdam reported a 9.1% drop in cargo throughput in the first half of 2020 because of the global covid-19 pandemic. The port handled 218.9 million tonnes of cargo during that period, down some 9.1% compared to the same period in 2019. The mineral oil products sector, mainly fuel oil, saw the largest drop of 22% in the first half of year.
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
|
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 |
|
14.95 |
17.95 |
17.11 |
21.19 |
24.80 |
26.87 |
EUR/MWh |
|
253.26 |
304.08 |
238.61 |
308.65 |
361.25 |
374.75 |
USD/t |
Source: CME Group, Gasum, Reuters, Seatrade
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
Risavika LNG index has further dropped by 2.6 % week on week to 15.12 EUR/MWh. The gas market remained well supplied despite the maintenance at one of major gas import pipelines, Nord Stream. Higher LNG sendouts from the terminals and storage withdrawals substituted the Russian pipeline flow, keeping the prices low.
OPEC+ meeting last week has resulted in an agreement to ease oil production cuts, thus, the production cuts would be 7.7 million barrel per day (bpd) from August to December, instead of the record high 9.7 million bpd. This news was followed by news on new covid-19 cases around the world, which raised uncertainty around demand recovery. Oil prices were slightly down last Friday and closed at 43.14 USD/BBL. Accordingly, fuel oil front prices (FO 3.5) closed at 237.01 USD/t last week, dropping by 1.3 % week on week. Similarly, Low Sulphur (MFO 0.5) front month closed at 299.96 USD/t, losing 1.4 % from the previous week.
Fuel oil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub dropped by 12% as of 16th of July, reaching 1.3 million tons. This drop was due to no imports during the week, while export was picking up in the Mediterranean region. At the same time, gasoil stocks have increased slightly by 1.5 % to 2.719 million tons.
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
|
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 |
|
15.12 |
18.12 |
16.99 |
20.59 |
24.44 |
26.32 |
EUR/MWh |
|
256.06 |
306.88 |
237.01 |
299.96 |
356.02 |
367.08 |
USD/t |
Source: CME Group, Gasum, Reuters
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
Risavika LNG index has dropped by 2.8 % week on week on rising LNG sendouts last week as number of LNG cargo arrivals slightly increases. European gas markets were supported by slightly colder for the season temperatures. However, the supply side was healthy and strong, which did not allow the prices increase.
Last week was volatile for benchmark crude prices due to new covid-19 cases and new restrictions related to it. However, Brent closed at 43.24 USD/BBL last Friday supported by IEA oil demand forecast increase. Accordingly, fuel oil front prices (FO 3.5) closed at 240.03 USD/t last week, gaining 3.3 % week on week. However, Low Sulphur (MFO 0.5) front month prices remained almost unchanged closed at 304.3 USD/t.
Fuel oil stocks held in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub fell slightly by 3 % to 1.485 million tons as of 9th of July. There is some demand in the Middle East, but bunkering demand from the shipping industry continues to be weak according to Reuters. On the other hand, gasoil stocks rose by 2.5 % due to low inland demand, the tanks at the river Rhine were still full. Inventory data sends mixed signals on the demand recovery, indicating that it is happening but it will likely take some time.
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
|
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 |
|
15.51 |
18.51 |
17.21 |
20.89 |
24.71 |
26.45 |
EUR/MWh |
|
262.75 |
313.57 |
240.03 |
304.30 |
359.92 |
368.98 |
USD/t |
Source: CME Group, Gasum, Reuters
*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.
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.
LNG brings significant environmental benefits for Norwegian shipping company Fjord Line.
