Risavika LNG front month has increased by 3.7 % week on week following seasonal change in European gas markets in the environment of low LNG supplies.
Oil prices have been stable for the last week, the inventory data showed a draw both in the US and Europe. Therefore fuel oil 3.5 has gained 3.9 % to 245.63 USD/t, low sulfur oil MFO 0.5 has increased by 0.6 % and traded at 307.55 USD/t, while MGO 0.1 has lost 1.4 % week on week and closed at 336.52 USD/t.
Top LNG producers, traders and consumers have outlined plans to decarbonize the LNG supply chain either fully or partially, signaling how carbon pricing is set to become an important component of LNG market competition in the coming years. Qatar’s LNG expansion to 126 million mt/year by 2027 will be low-carbon based. Shell, Total, BP and even traders like Vitol unveiled strategies to supply carbon-neutral LNG. Chevron-operated Gorgon LNG in Australia now has the world’s largest carbon capture and storage facility of up to 4 million mt of CO2 equivalent/year. Australia’s Woodside said it was extending the build-out of decarbonized fuel supply to ammonia and hydrogen. So far, demand for carbon-neutral or low-carbon LNG has mainly come from Asia.