LNG bunker costs now competitive

For the first time this year there is an economic case for owners of dual-fuel LNG ships to pay for some gas in their tanks. 

LNG has been the number one alternative fuel for ship orders for a number of years. Class society DNV’s latest estimates show there are 904 confirmed LNG-fuelled ships, including vessels on order. 

However, for much of the 2020s the price of LNG has been prohibitively high, meaning the vast majority of dual-fuel ships have been trading using traditional bunker fuel. 

Norwegian broker Lorentzen & Co noted this week that LNG used as bunkers is now “radically lower priced” than compliant fuel oil and on a par with heavy fuel oil. 

According to Ship&Bunker, LNG prices in Rotterdam are at $440 per ton, for the same energy equivalency as IFO380 bunker fuel. VLSFO in the same area stands at $531 per ton and HSFO at $431.50 per ton.