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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 gained 1.7 % week on week and was at 46.63 EUR/MWh by the end of lats week. Gas prices remain supported as summer maintenances for pipeline gas continue, while LNG arrivals are slow. Nord Stream will be out for maintenance from today for 10 days with Gazprom likely to use its inventories in Europe to supply its contractual volumes. This would potentially decrease inventories, increasing demand for injections on the second half of the summer, but pipeline gas supplies could be higher then. According to Platts, the first string of Nord Stream 2 could be ready to supply volumes in September as it takes 2-3 months to test and certify the pipeline.
Oil product prices were down last week following benchmark crude prices, now trading above 75 USD/BBL. The failure to reach an agreement within OPEC + and lack of scheduled meeting date turned into a bearish sentiment with risk of a price war. In addition, spread of coronavirus Delta variant in Europe causes uncertainties about economic rebound of the continent and oil demand outlook, which adds to a bearish sentiment. Fuel oil 3.5 (FO 3.5) price dropped 2.5 % to 398.22 USD/t despite a significant inventory draw in ARA region, low sulphur oil (MFO 0.5) and marine gasoil (MGO 0.1) were comparably resilient dropping only by 0.7 and 0.2 % to 520.91 USD/t and 601.44 USD/t respectively.
|
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 |
|
46.63 |
49.63 |
28.55 |
35.76 |
41.29 |
43.79 |
EUR/MWh |
|
789.94 |
840.76 |
398.22 |
520.91 |
601.44 |
610.73 |
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, Platts, Bloomberg, Financial Times
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
European gas markets prices rally continued to end of June and beginning of July, Risavika LNG gained 7.7 % week on week and was at 45.83 EUR/MWh by the end of lats week. European gas markets are bullish on annual maintenances of import pipelines and LNG terminals, while demand for storage injections and cooling remains. Russian flows to Europe have been lower this year, and with Gazprom holding off from booking additional capacity via Ukraine also during this summer, the pipeline gas supplies to stay tight. Commissioning of Nord Stream 2 could ease the situation, however, the operation shall start only after the certification process, a subject to potential delays. Global LNG supplies have increased in June, but additional supplies were delivered to Asian markets, leaving Europe with the volumes unchanged from previous year.
Oil product prices showed upside with benchmark Brent crude price increasing over 77 USD/BBL and anticipation of further demand recovery. Fuel oil 3.5 (FO 3.5) price gained 1.5 % to 408.15 USD/t, low sulphur oil (MFO 0.5) was up by 2.3 % to 524.70 USD/t, and marine gasoil (MGO 0.1) gained 2.1 % to 602.39 USD/t. The prices have potential for future upside on the back of crude prices as OPEC+ has failed to agree on future production policy. The discussions were roadblocked by the United Arab Emirates objections to a deal extension under the current baselines. With no agreed date for the next meeting, oil prices are likely to stay supported.
|
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 |
|
45.83 |
48.83 |
29.26 |
36.02 |
41.36 |
43.87 |
EUR/MWh |
|
776.30 |
827.12 |
408.15 |
524.70 |
602.39 |
611.93 |
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, Reuters, Argus Media
*An estimate for LNG FOB Risavika
** An estimate for 10 % LBG blend FOB Risavika
European gas markets continued a bullish trend, Risavika LNG gained further 5.4 % week on week and was at 37.85 EUR/MWh for July contracts. With uncommitted LNG cargoes mostly sailing towards Asia and lower pipeline gas supplies during summer, European gas market is most likely to remain tightened. The operator of the Nord Stream 2 (NS2) pipeline said pre-commissioning work started on the first line of the system last week, and the second line to be completed by the end of August. Russian officials said earlier this year that the pipeline could begin shipping gas by the end of this summer. NS2 would provide additional European imports at a time when storage inventories remain low after a cold spring, however, when exactly service will start and the impact it might have on European energy markets remains unclear.
Oil product prices were supported by inventory draws and rally of benchmark crude, however the impact on prices was minor as demand recovery seems to have a slow pace with IEA projecting oil demand reaching 2019 levels only in 2022. Benchmark crude prices have been rallying on the back of higher demand for gasoline and high compliance from OPEC+ on their current production cuts. Therefore, we could see further increase in oil product prices during the summer. Fuel oil 3.5 (FO 3.5) dropped 0.8 % week on week to 387.25 USD/t, low sulphur oil (MFO 0.5) decreased by 0.3 % to 498.85 USD/t, while marine gasoil (MGO 0.1) gained 1.1 % to 580.15 USD/t.
|
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 |
|
37.85 |
40.85 |
27.76 |
34.25 |
39.83 |
42.23 |
EUR/MWh |
|
641.12 |
691.94 |
387.25 |
498.85 |
580.15 |
589.06 |
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, NGI, Argus Media
*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 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.
