World News
LNG Bunker Supply Lagging Behind Demand Forecasts
More Liquefied Natural Gas (LNG) bunker projects need to come online to meet the demand forecast by Drewry.
Drewry says its model estimates total demand generated by LNG bunkers in 2022, and includes total fuel consumption by major segments such as dry bulk, tankers and containers.
Within the segments, the consultancy looked at the impact of some large vessels below the age of 15 years converting to use LNG. Three cases were considered, a base case of 10%, along with low and high cases of 5% and 15% respectively.
"Adding the confirmed new LNG projects to the current capacity in the market, we estimate that annual supply will be about 72 million tonnes by 2022. Demand is lagging behind that figure, but the high case (15% of vessels retrofitting) will add an extra 10 million tonnes demand in 2022, and even the 10% base case will push demand beyond expected supply," says Drewry.
"More LNG projects will need to come on-line and more bunkering facilities will need to be completed in a short period of time if the industry is to cope with demand for LNG bunkering."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 649.50 | 2.00 | 778.50 | 8.50 |
| Rotterdam | 602.00 | 0.50 | 748.00 | 6.00 |
| Houston | 624.00 | 5.00 | 792.00 | 3.50 |
| Fujairah | 649.50 | 2.00 | 898.00 | 3.00 |
| Global 20 Ports Average | 662.00 | 2.00 | 855.00 | 1.50 |
| Global 4 Ports Average | 631.00 | 1.00 | 804.00 | 0.50 |
| Global Average Bunker Price | 717.50 | 0.50 | 913.50 | 1.00 |
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