Maritime ship

It's time to navigate forward for more sustainable maritime transportation

Convert to liquefied natural gas for a more sustainable future in shipping

When using liquefied natural gas - LNG - for your maritime vessels, you are set for using liquefied biogas - LBG - now and in the future. Biogas is part of circular economy and it is 100% renewable. We at Gasum turn waste into liquefied biogas for you to use, as the most sustainable maritime fuel. By using LNG and LBG you can be part of the generation that took the step today - for a decarbonized future in shipping!

Harbour view

Download our guide - Liquefied gas for cleaner maritime transports

We have gathered some information for you in a guide about cleaner maritime transports. You will see what influences shipping to reduce emissions, including regulations, market demands and trends.

ship in the river

Why choose LNG or LBG for maritime?

The demand for cleaner energy solutions is increasing. If we are here to fight climate change, we need to reduce emissions from the use of heavy fuel oil in maritime transport. LNG (liquefied natural gas) 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. 

Using both LNG and LBG is one of the concrete actions that will take us towards a low-carbon society of the future.

Jacob Granqvist

Have a chat with our maritime professionals

We are super happy to help you to take a step forward. Contact our maritime sales team to discuss more about gas as a solution for cleaner maritime transport.

Jacob Granqvist, Vice President, Maritime
tel. +358 40 483 9129
jacob.granqvist@gasum.com

Decarbonizing shipping with liquefied natural gas and biogas

Maritime market updates

09.02.2022

Maritime market update: bearish LNG and stronger oil products

Risavika LNG has dropped a significant 6.7 % week on week to 88.75 EUR/MWh following stronger LNG supplies to the market. Europe has been the top destination for US LNG cargoes, according to Reuters, outpacing exports to Asia for the second month in a row. Warmer than expected weather in Asia and healthy stockpiles last months helped swing LNG cargoes to Europe, where supply has been tight due to lower pipeline flows from Russia and low natural gas inventory levels. Warmer weather in Europe and higher renewable power production contribute to current bearish sentiment, however, the sentiment can change with weather forecast change closer to March.

Benchmark oil prices remained strong for the last week with Brent crude keeping the level above 90 USD/BBL, despite the decision of the Organization of the Petroleum Exporting Countries and its allies to continue with the plan to boost global production by another 400 000 BBL/D in March. However, member states have been unable to produce oil at their assigned quota levels, which will not alleviate the global supply-demand deficit.  In Europe, record-high natural gas prices have led refiners to reduce production in Europe to save on cost, leading to tightened inventories and impacting the prices. Fuel oil 3.5 (FO 3.5) price was up 2.7 % to 500.72 USD/t, low sulphur oil (MFO 0.5) gained 4.5 % to 643.93 USD/t and marine gasoil (MGO 0.1) was higher by 5.4 % to 796.48 USD/t week on week.

 

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

88.75

91.75

35.90

44.21

54.68

59.04

EUR/MWh

1503.48

1554.30

500.72

643.93

796.48

823.41

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, Reuters, OilPrice

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

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01.02.2022

Maritime market update: LNG prices retreat from all-time highs

Natural gas markets in Europe have been extremely volatile for the past two months. The Dutch TTF front-month-ahead gas price reached a historic high of 146.50 EUR/MWh in December 2021, leading to LNG cargoes changing their course and heading towards Europe. Northwest Europe LNG prices remain at a premium to the JKM price, increasing supply into Europe. However, persistent lower pipeline supplies from Russia and low inventory levels keep the price floor high. Risavika LNG index is at 94.67 EUR/MWh for March contracts.

Benchmark oil prices has been supported by geopolitical risks and short-term fuel switching, rather than by more sustainable demand increases. Four incidents threatened oil supplies only in January. Protests in Kazakhstan, pipeline outage in Iraq, attacks in the UAE and ongoing tensions between Russia and Ukraine led to Brent reaching over 90 USD/BBL. On top of that, about 80% of all European refineries depend on natural gas to power their plants, with refineries located in the big oil refining centers like Northwest Europe's Amsterdam-Rotterdam-Antwerp getting virtually all their power from natural gas. With natural gas prices staying elevated, there is a possibility for worsening cracking margins for refineries in Europe and tighter oil products supply as a consequence. Fuel oil 3.5 (FO 3.5) price is at 487.44 USD/t, low sulphur oil (MFO 0.5) is at 614.93 USD/t and marine gasoil (MGO 0.1) was trading at 753.58 USD/t for March contracts.

 

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

94.67

97.67

34.95

42.22

51.74

56.14

EUR/MWh

1603.77

1654.59

487.44

614.93

753.58

783.03

USD/t

Price index 1.2.2022.png

 

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

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01.12.2021

Maritime market update: volatility to continue

Risavika LNG index has increased to 104.8 EUR/MWh gaining 10 % week on week as Europe anticipates a cold start of December, higher withdrawals from the storage, while gas supply is tight. The day-ahead capacity auctions for Ukrainian pipelines and at Germany’s Mallnow compressor station will provide a strong signal on price development in December. Russian Gazprom has said it aims to keep refilling European storage sites until the end of December, however, it hasn’t used short-term auctions to ship more fuel. The market is likely to see day ahead prices volatility this month as the price will be defined by weather and short-term capacity bookings.

Benchmark oil prices dropped for the fifth consecutive week and were just above 71 USD/BBL mark as the market anticipates impact of new covid variant on oil demand recovery, while release of strategic reserves could have impact in the first quarter of 2021 oversupplying the market.  Oil product prices were dropping following the benchmarks. Fuel oil 3.5 (FO 3.5) price was down 7.3 % to 386.53 USD/t, low sulphur oil (MFO 0.5) dropped 7 % to 504.33 USD/t and marine gasoil (MGO 0.1) lower by 7.6 % to 609.8 USD/t week on week.

 

 

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

104.80

107.80

27.71

34.63

41.87

43.24

EUR/MWh

1775.37

1826.20

386.53

504.33

609.80

603.08

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, Bloomberg, Argus Media

*An estimate for LNG FOB Risavika 

** An estimate for 10 % LBG blend FOB Risavika

Read more