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ENGINE on Fuel Switch Snapshot: B100 gains more price edge on VLSFO

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Rotterdam’s B100-VLSFO spread widens; LBM at even wider discounts to fossil LNG.
ENGINE on Fuel Switch Snapshot: B100 gains more price edge on VLSFO

Once a week, bunker intelligence platform ENGINE will publish a snapshot of alternative and conventional bunker fuel prices in the world’s two biggest bunkering hubs. The following is the latest snapshot:

12 May 2025

  • Rotterdam’s B100-VLSFO spread widens
  • LBM at even wider discounts to fossil LNG

A slightly bigger weekly gain for VLSFO ($29/mt) than for B100 ($25/mt) in Rotterdam has widened the spread between the two. B100 is now $142/mt cheaper than VLSFO, an increase of $4/mt from the previous week’s discount.

B100’s discount to LSMGO has widened by $7/mt to $240/mt.

ENGINE on Fuel Switch Snapshot: B100 gains more price edge on VLSFO

LNG remains the costliest fuel in the Dutch port when consumed in Otto medium-speed (Otto MS) engines on voyages between two EU ports. It is priced $195/mt above liquefied biomethane (LBM) when they are both consumed in Otto MS engines.

For dual-fuel shipowners, LNG is currently priced $118/mt above VLSFO in Rotterdam.

However, LNG flips to a discount to VLSFO when used in diesel slow-speed (diesel SS) engines, which have the lowest default methane slip rating of 0.2%. With reduced methane slip, EU regulatory compliance costs make LNG $45/mt cheaper than VLSFO.

Despite this, LNG still carries a $149/mt premium over LBM when used in diesel SS engines.

Liquid fuels

Rotterdam’s VLSFO price has surged $29/mt higher in the past week. The price rise is mostly driven by an increase in the front-month ICE Brent Futures benchmark and a tightening supply of the fuel in the ARA region.

Rotterdam’s B100 benchmark has seen a similar increase, rising by $25/mt over the same period.

Singapore’s VLSFO price has also climbed, up by $38/mt week-on-week. Bunker availability in the port remains tight, with lead times extended significantly, to around 9–17 days now.

Liquid gases

Rotterdam’s VLSFO-equivalent LNG bunker price with EU-EU voyages costs included has increased by $31/mt in the past week. Stiffer competition between European and Asian LNG importers and a larger bunker delivery premium have pushed Rotterdam’s LNG bunker price up.

Singapore’s LNG bunker price has climbed 1% higher on the week with support from rising Platts Japan/Korea Marker values, and counter downward pressure from a smaller bunker delivery premium.

Global gas demand has gotten a shot in the arm from tentative steps to de-escalate the US’ trade war with China. A further de-escalation could improve the outlook for industries reliant on this trade, which could produce more goods and consume more gas as energy inputs to their factories as a result.

By Konica Bhatt

 

Photo credit and source: ENGINE
Published: 9 May, 2025