Singapore LNG Bunkering Stalls

Mobius Intel Brief:

LNG bunker sales at the world’s largest bunkering port stalled after June’s record 51,700 metric tons, sinking to 45,600 metric tons in August.

• Key Intel: LNG bunker sales at the Port of Singapore slowed from an average Y/Y growth rate of 872% in the first five months of 2024 to a still-robust 173% between June-August.

Slowing growth rates coincide with Asia’s summer LNG rally that raised super-cooled fuel above Singapore’s conventional VLSFO bunker for the first time since December.

While August’s 193% Y/Y growth reflects considerable tailwinds for LNG bunkering in dual-fuel vessels, near-term gains will likely slow as regional utilities buoy prices over conventional bunker in a race to refill LNG inventories ahead of winter heating season.

• LNG inventories held by Japanese utilities sank to a five-month low of 1.64 million metric tons on September 22, down 0.23 million W/W and leaving a narrow window for utilities to secure supplies ahead of the Japan Meteorological Agency’s forecasts for a colder-than-normal December-February.

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