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
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

29.09.2020

Maritime market update: Bunker suppliers looking to add jet to marine blending pool

Risavika LNG front month has further increased by 4.8 % week on week to 22.45 EUR/MWh for October, colder weather forecast resulted in higher demand for natural gas in Europe.

Fuel oil 3.5 has decreased by 2.5 % to 232.33 USD/t, while low sulfur oil products showed a mixed picture. MFO 0.5 has gained 1.3 % and traded at 299.34 USD/t and MGO 0.1 has lost 2.9 % week on week and reached 321.71 USD/t. Oil prices have been relatively stable, thus, oil products market is impacted mainly by inventory situation.

Independent jet stocks in the Amsterdam-Rotterdam-Antwerp (ARA) region rose to the highest on record at 1.03 million t in mid-August and are now at more than 90% of that. Floating stocks peaked at 1.3 million t at the same time and have remained there. The strength of marine fuel prices over jet fuel has prompted some blending of straight-run kerosene to produce very low sulphur fuel oil (VLSFO) in Singapore, the world's largest bunkering hub, and in the Middle East. However, it is not yet a widespread practice in Europe. Fuel inspectorates in Antwerp indicated that there was some interest in adding jet into marine fuels, but that it could create issues for blends reducing fuel viscosity and density, according to Argus Media.

 

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

22.45

25.45

16.66

20.55

22.09

23.30

EUR/MWh

380.32

431.14

232.33

299.34

321.71

324.98

USD/t

 Price index 29.9.2020.png

Source: CME Group, Gasum, Argus Media

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

 

 

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21.09.2020

Maritime market update: oil products prices on the rise

Risavika LNG front month has gained 4.1 % week on week to 21.38 EUR/MWh for October, following the seasonal trend in the European gas markets.

Fuel oil 3.5 has increased by 8 % to 238.16 USD/t, and low sulfur oil products (MFO 0.5 and MGO 0.1) have increased by 6.2-5.1 % accordingly week on week due to increase in crude front prices. Oil market has closed on a bullish note last week on a back of OPEC+ compliance pressure and a draw from the inventories, both in the US and Europe.

Stocks of fuel oil in the Amsterdam-Rotterdam-Antwerp (ARA) hub, as measured by Insights Global, declined 5% to 1.171 million tons in the week to Sept. 16. Meanwhile, gasoil inventories in ARA rose 1.6% to 2.9 million tons, which were up 7.4% compared to last 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

21.38

24.38

17.07

20.28

22.73

23.24

EUR/MWh

362.19

413.01

238.16

295.35

331.02

324.17

USD/t

 Price index 21.9.2020.png

Source: CME Group, Gasum, Reuters, S&P Global Platts

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

 

 

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15.09.2020

Maritime market update: DNV GL forecasts a high share of natural gas in maritime sector by 2050

Risavika LNG front month has dropped 5.8 % week on week to 20.50 EUR/MWh following the European gas markets. Increased gas flows from Norway and LNG sendouts weighed on front gas prices last week.

Fuel oil 3.5 has continued downside trend dropping by 7.5 % to 219.04 USD/t, while low sulfur oil products (MFO 0.5 and MGO 0.1) have dropped by 4.3-5.5 % accordingly compared to previous week following the drop of crude oil prices and inventory data, which showed a build both in the US and ARA oil products stocks.

DNV GL has released its Energy Transition Outlook: a global and regional forecast to 2050. According to the company, maritime sector emissions could decrease from current 820 Mt CO2 to 600 Mt by 2050. As direct electrification is expected to be viable only in the shortsea segment and few low- and zero-carbon fuel alternatives are available and practical today, maritime transport is considered a hard-to-abate sector from emission perspective. DNV GL forecasts a high share of natural gas, ammonia, and other low- and zero-carbon fuels in maritime market by 2050, while use of oil would reduce dramatically, reaching only 6 % of its current consumption.

 

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

20.50

23.50

15.70

19.01

21.56

23.24

EUR/MWh

347.20

398.02

219.04

276.95

314.01

324.17

USD/t

 Price index 14.9.2020.png

Source: CME Group, Gasum, Reuters, DNV GL

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

 

 

Read more