LNG Bunkering

Integr8 sees spot LNG bunker demand pick up in evolving market

Firm’s LNG desk has recently traded several LNG stems as a volatile market encourages buyers to seek spot deals to manage their price risk.

Published

3 years ago

October 20, 2023

Admin

Integr8 Fuels on Thursday (19 October) said its LNG desk has recently traded several LNG stems as a volatile market encourages buyers to seek spot deals to manage their price risk:

LNG bunkering is typically more complex than bunkering of conventional fuels. It requires a very good understanding of the operational, commercial and contractual aspects of LNG deliveries, and Integr8 has been helping several clients through the purchasing process.

Volatility spurs spot trading

When strike action was announced by workers at two Chevron LNG plants in Australia, it sent shockwaves through the LNG market in September. While these plants primarily produce LNG for exports to Asian markets, the impact on prices was global and Europe’s benchmark TTF price surged on the news. The market feared global supply disruptions in an interconnected LNG supply chain. And this shows just how sensitive the global supply-demand balance has been to supply disruptions after Russia invaded Ukraine.

Volatile LNG prices are here to stay for the time being, but are expected to come down and stabilise at a lower level after 2025, argues Integr8 Fuels business manager Jonathan Gaylor. “We forget that before Russia’s war with Ukraine, LNG prices were competitive against conventional marine fuels and rather stable,” he says.

LNG was priced below €500/mt in Rotterdam’s bunker market until December 2021, when it had risen gradually for about a year. When Russia invaded Ukraine in late February, it started gathering pace and rose rapidly to new highs. A year later, the price had quintupled and peaked at over €2,500/mt. It had gone from a discount to VLSFO to a three-fold premium, and this discouraged owners of dual-fuel vessels from bunkering LNG. Their fuel flexibility came on display and the market saw widespread gas-to-oil switching.

Rotterdam’s LNG price has since come off sharply. It has dipped below LSMGO and traded at parity with VLSFO. Buyers have subsequently readjusted to take advantage of the renewed pricing opportunities, and oil-to-gas switching has become more prevalent again.

LNG and conventional low-sulphur marine fuels alternate between being at a discount to one another. This discourages terming up supply in contracts and has increasingly turned buyers towards the spot market to manage their price risks and costs on a more predictable near-term basis.

A highly volatile and competitive market presents new opportunities for traders to get involved, particularly as the global LNG-capable fleet is set to more than double from just over 400 vessels now to more than 800 by 2028, according to data from classification society DNV.

Container vessels used to make up the vast majority of vessels bunkering LNG. We have recently seen more dual-fuel tramp vessels bunkering. These typically require greater flexibility in timing and location, especially for tankers. Oil and chemical tankers now make up the biggest LNG-capable vessel type, with 116 vessels in operation and another 85 on order, according to DNV data.

Price references vary between suppliers and geographies. It is quite common to link LNG stem pricing to established wholesale oil and gas benchmarks like TTF, JKM, Henry Hub and Brent to cover some exposure to price swings.

There are longer-term Brent or fuel oil price linkage options for LNG, but they will typically come at a premium for buyers. By locking in the delta on a linked price of a certain percentage, LNG prices will have a partial ceiling based on conventional fuels and buyers can pay down the premiums they paid for investments in dual-fuel engines. The rate of payback on dual-fuel vessels is expected to pick up after 2026 as global LNG supply is set to be boosted by huge new volumes from Qatar and the US, according to multiple industry forecasts.

Challenges remain

LNG stems still require longer time to fix and deliver than conventional ones and this is also probably how things will play out in the foreseeable future. In many cases, compatibility studies between delivering and receiving vessels need to be performed to ensure safe and smooth deliveries.

Integr8 has the knowledge and network to identify competitive suppliers and advice buyers on how best to streamline the bunkering process. Having an overview of and ready access to supply intelligence can certainly help to make the bunker planning and delivery process more efficient for buyers.

Outlook

Gas prices could easily rise on increased heating demand this winter, but will then likely come down again post winter. Especially if this winter proves that there is sufficient supply in Europe and industrial demand remains subdued.
The global LNG-fuelled fleet is projected to grow faster than the LNG bunker fleet is expanding. This could lead to undersupply of bunker vessels in 2025-2026, when bunker demand is on track to rise above supply capacity and LNG prices become competitive. It could pose challenges to tramp trading vessels looking for timely LNG spot bunker deliveries.
Looking further ahead, global gas supply is set to rise with production gains in Qatar and the US. Qatar is in the process of a major expansion of its North Field and two new LNG export terminals. A surge in exports is expected to boost US gas investments and production capacity to new highs over the next decade, with Europe as a key outlet.

Photo credit: Venti Views on Unsplash / Integr8 Fuels
Published: 20 October, 2023

Up Next

Shell to supply “MSC Euribia” with LNG bunker fuel under new deal

Don't Miss

ENGINE: Americas Bunker Fuel Availability Outlook (19 Oct 2023)

LNG Bunkering

Shell expands LNG bunkering footprint in Spain with Valencia

As one of the region’s key maritime hubs, the company said Valencia expands the options available to shipowners seeking LNG supply along major shipping routes.

Published

2 days ago

August 14, 2026

Admin

Shell expands LNG bunkering footprint in Spain with Valencia

British oil giant Shell on Thursday (13 August) said Valencia has joined its growing network of bunkering locations, making LNG available as a marine fuel.

The successful completion of the first LNG bunkering operation in Valencia marked an important milestone for Spain and further strengthened Shell’s LNG supply capabilities across the Mediterranean.

In a video shared by the company, bunkering vessel Alice Consulich was shown supplying an undisclosed volume of LNG to the container ship MSC Sabrina.

“As one of the region’s key maritime hubs, Valencia expands the options available to shipowners seeking LNG supply along major shipping routes,” Shell said in a social media post.

Shell said the achievement reflected the strong collaboration across the maritime value chain, including MSC Mediterranean Shipping Company, the Port of Valencia and Fratelli Cosulich Group.

“We look forward to making more LNG bunker deliveries in Valencia and across the Mediterranean as LNG infrastructure and capabilities continue to expand,” the company said.

Photo credit: Shell
Published: 14 August, 2026

LNG Bunkering

Énestas and Power LNG join forces on Galveston bunkering

Énestas will provide capital, LNG transport and storage equipment, and downstream expertise to support Power LNG’s planned liquefaction and marine bunkering facility on Pelican Island.

Published

2 days ago

August 14, 2026

Admin

Stabilis Solutions enter 10-year LNG bunkering supply deal for Port of Galveston

Power LNG (Power LNG) and Mexico’s LNG infrastructure and downstream natural gas company Énestas on Wednesday (12 August) announced the execution of definitive agreements establishing a strategic partnership to accelerate the development of LNG infrastructure at the Port of Galveston.

Under the agreement, Énestas will provide capital, LNG transportation and storage equipment, and downstream operating expertise to support the development of the Harborside Terminal and Project Seawolf, Power LNG’s planned LNG liquefaction and marine bunkering facility on Pelican Island.

The partnership creates an immediate pathway to begin LNG distribution by truck while Project Seawolf is under development, supporting marine fueling, virtual pipeline customers, industrial users, and LNG exports throughout the Gulf Coast, Latin America, and the Caribbean.

“Our vision has always been to establish Galveston as the premier LNG hub for the Gulf Coast,” said Austin Terry, Founder and CEO of Power LNG.

“Énestas brings years of operational experience, proven LNG infrastructure, and a talented team that understands how to deliver LNG safely and efficiently. Together, we can immediately begin serving customers while laying the foundation for one of the most strategic LNG bunkering facilities in North America.”

Project Seawolf will provide LNG for marine bunkering, truck loading, virtual pipeline distribution, and international exports. The facility is strategically located at the Port of Galveston, serving one of the fastest-growing cruise, cargo, and energy corridors in the United States.

For Énestas, the transaction represented an important milestone in the company’s international growth strategy.

“This partnership represents a natural evolution for Énestas as we expand our downstream LNG business into the United States,” said Caio Zapata, Chief Executive Officer of Énestas.

“For more than a decade, Énestas has developed and operated LNG infrastructure throughout Mexico, helping customers transition to cleaner, more reliable energy. Partnering with Power LNG allows us to leverage that experience in one of the most attractive LNG markets in North America. We see tremendous opportunities in marine bunkering, virtual pipeline logistics, industrial LNG supply, and exports to Latin America and the Caribbean, and we are excited to build that future together.”

The companies expect the partnership to support near-term LNG truck loading operations while advancing the long-term development of Project Seawolf, which is designed to become a regional hub for LNG production, marine fueling, and distribution.

The collaboration also establishes a platform to pursue additional downstream LNG opportunities throughout the Gulf Coast, utilising Énestas’ operational expertise together with Power LNG’s project development capabilities.

Photo credit: Port of Galveston
Published: 14 August, 2026

LNG Bunkering

Stabilis delivers more than 150,000 cbm of LNG bunker fuel at Galveston

Company says the advancement of its proposed Stabilis Galveston LNG Facility is a natural progression of its established LNG bunkering footprint in Galveston.

Published

2 days ago

August 14, 2026

Admin

Stabilis delivers more than 150,000 cbm of LNG bunker fuel at Galveston

Clean energy production solutions provider Stabilis Solutions (Stabilis) on Thursday (13 August) said it has completed 97 LNG bunkering operations and delivered more than 150,000 m³ of LNG to customers in the Port of Galveston.

“As the only physical supplier of LNG on the Gulf Coast to reach this milestone, we’ve earned a reputation as a trusted, proven operator — both with local Galveston stakeholders and with the world’s largest cruise operator,” the company said in a social media post.

“That trust is reflected in the 10-year LNG offtake agreement we executed in December 2025.”

The company said the advancement of its proposed Stabilis Galveston LNG Facility is a natural progression of its established LNG bunkering footprint in Galveston.

“As a Houston-based company, we believe in the Texas economy and the future growth of the Port of Galveston,” it added.

“That belief is why we’ve invested heavily over the past four years in the planning, permitting, and engineering design work to develop the most advanced, derisked, shovel-ready small-scale LNG liquefaction project on the Gulf Coast.”

Manifold Times previously reported Stabilis stating that the proposed Stabilis Galveston LNG Facility is anticipated to be in production by the third quarter of 2028.

It will come complete with the delivery of the first new-build, dedicated Jones Act-compliant LNG bunker barge in the Galveston/Houston area.

This comes following Stabilis receiving a Letter of Recommendation from the US Coast Guard following their formal review of the proposed Stabilis Galveston LNG Facility and associated waterfront LNG loading, marine transportation, and LNG bunkering operations in the Port of Galveston.

Photo credit: Stabilis Solutions
Published: 14 August, 2026