Ship & Bunker, MMSA Begin Publication of Methanol Bunker Price Indications

Methanol bunker prices now being published for the four major bunkering hubs of Singapore, Rotterdam, Houston, and Fujairah. Image Credit: Ship & Bunker

Ship & Bunker today, in conjunction with methanol market specialists MMSA, has begun publication of methanol bunker price indications for the four major bunkering hubs of Singapore, Rotterdam, Houston, and Fujairah.

"Even though the methanol bunker market is in its infancy, we have seen significant demand from our readers for methanol bunker prices. We are delighted to have partnered with MMSA to meet that need," said Martyn Lasek, Managing Director, Ship & Bunker.

In addition to indicating conventional methanol bunker prices on a per metric tonne basis (MEoH), methanol bunkers are also indicated in terms of energy equivalent pricing for both traditional VLSFO (MEoH-VLSFOe), and MGO (MEoH-MGOe) marine fuels.

MEoH-VLSFOe is the price for a quantity of methanol that delivers the same amount of energy as one metric tonne of VLSFO bunker fuel.

MEoH-MGOe is the price for a quantity of methanol that delivers the same amount of energy as one metric tonne of MGO.

In addition to current price levels, historical methanol bunkers prices dating back to January 2021 are available for MEOH, MEOH-VLSFOe, and MEOH-MGOe at all four ports.

Methanol bunker prices are published on the Ship & Bunker website for Singapore, Rotterdam, Houston, and Fujairah respectively as follows:

• https://shipandbunker.com/prices/apac/sea/sg-sin-singapore#MEOH
• https://shipandbunker.com/prices/emea/nwe/nl-rtm-rotterdam#MEOH
• https://shipandbunker.com/prices/am/usgac/us-hou-houston#MEOH
• https://shipandbunker.com/prices/emea/me/ae-fjr-fujairah

The latest indications show MEOH-VLSFOe at a premium to VLSFO of $102/mt on average across the four major bunkering hubs of Singapore, Rotterdam, Houston, and Fujairah, but the variance at each port is considerable. On Tuesday the premium for MEOH-VLSFOe over VLSFO in Rotterdam was $224.50/mt, whereas in Fujairah MEOH-VLSFOe was at a discount to VLSFO of $93.50. 

Going forwards, methanol bunker prices will be updated on a weekly basis.

"Using marine fuel data from Ship and Bunker, MMSA has developed prices for conventional methanol bunkers and conventional methanol energy equivalents for the world's four largest global bunkering hubs. The values are based on MMSA postings in its Methanol Market Weekly Analysis and consider current spot values of methanol in major ports plus premia related accounting for local bunkering costs including dock fees, barge costs, throughput, and other adjustments," explained Mark Berggren, Managing Director, MMSA.

"Providing bunker prices in energy equivalent terms allows for easy price comparison to traditional bunker fuels. Findings to date indicate that location and fuel type have an impact on relative affordability."

The current price indications cover grey / conventional methanol, and there are plans to cover green and/or blue methanol once the market is sufficiently mature to do so, Lasek and Berggren noted.

The Methanol Bunker Market

The launch of methanol bunker price indications follows the recent delivery of the world's first methanol-powered boxship, Maersk's 2,136 TEU feeder vessel, Laura Maersk.

With some 152 methanol-powered ships ordered in this year alone, bringing the total orderbook to over 200, according to the latest data from classification society DNV, many industry observers are expecting a bright future ahead for the emerging bunker fuel.

"MMSA is of the opinion that eventually, stripping away other requirements such as carbon intensity and or other combustion emission properties, cost per unit of power delivered will be a strong component of fuel selection," Berggren said.

"At the moment, conventional methanol prices have a very different set of determinants than marine fuels, and thus often move in different directions with different cyclicality.

"For instance, in Rotterdam, after a patch from May through October where methanol was favored, recent price strength has leveled the playing field between the fuels. However, in Fujairah, which of the four ports covered has the highest VLSFO prices and lowest methanol bunker values, methanol remains a competitive alternative marine fuel."

Methanol Bunker Price Calculations

All conversions are made using the same energy values for traditional bunker fuels as those used in the calculation of Ship & Bunker's LNG bunker prices indications.

The energy values used, which are all lower heating value (LHV), are as follows:

• 41.0 GJ / mt for VLSFO (11.38 MWh/mt)
• 42.5 GJ / mt for MGO (11.81 MWh/mt)
• 19.93 GJ / mt for MEOH (5.536 MWh/mt)

Example MEOH-MGOe equivalent calculation based on MMSA posting:

1. Price per metric ton MEOH: 300 USD/mt
2. Convert to unit GJ price: 300 / 19.93 (MEOH LHV) = 15.05 USD/GJ
3. Convert to MGO equivalent price = USD 15.05*42.5 (MGO LHV) = 639.7 USD/mt MEOH MGO Equivalent

Example MEOH-VLSFOe equivalent calculation based on MMSA posting:

1. Price per metric ton MEOH: 300 USD/mt
2. Convert to unit GJ price: 300 / 19.93 (MEOH LHV) = 15.05 USD/GJ
3. Convert to VLSFO equivalent price = USD 15.05*41.0 (VLSFO LHV) = 617.2 USD/mt MEOH VLSFO Equivalent

About MMSA

MMSA was established in 2004 at its current headquarters in Singapore. In its 20th year of operation, the company has become a leader in industrial analysis and techno-commercial project support. The firm specializes in methanol with complimentary expertise in energy and petrochemicals markets. Clients include major global chemical producers and consumers, global traders, energy companies, technology licensors, catalyst suppliers, shipping and storage companies, financial institutions, and other ancillary industries. MMSA offers several global services which are described in more detail on its website at www.methanolmsa.com.

The company is privately owned and employs highly experienced chemical industry professionals, with significant experience in senior leadership positions in large global companies. MMSA has a global presence with offices and staff based in the US, Europe, Singapore, and China. The firm does not buy, sell, trade, broker, or distribute any products and is a trusted and reputable independent voice across the industry.

To learn more please visit: www.methanolmsa.com

About Ship & Bunker

Ship & Bunker is the world's most read publication focused on the marine fuel markets. Founded in 2012, it is completely independent and based entirely online. It is the leading industry authority providing comprehensive daily news, exclusive in-depth features and analysis, along with daily & historical bunker price indications.