Price of LNG bunker competitive to HFO

Chamber of Shipping > Blog > News > International > Price of LNG bunker competitive to HFO

This year, for the first time, there is a compelling financial argument for dual-fuel LNG ship owners to purchase a portion of the gas they use. LNG has been the preferred alternative fuel for ship orders for quite some time. According to recent estimates from DNV, a leading classification society, there are currently 904 confirmed LNG-fueled ships, including those that have been ordered. However, throughout much of the 2020s, the cost of LNG has been excessively high, resulting in the majority of dual-fuel ships relying on traditional bunker fuel for their operations. Nonetheless, Norwegian broker Lorentzen & Co pointed out this week that the price of LNG used as bunker fuel has now become significantly more affordable compared to compliant fuel oil and is on par with heavy fuel oil.

According to Ship&Bunker, LNG prices in Rotterdam currently stand at $440 per ton, which provides the same amount of energy as IFO380 bunker fuel. In contrast, VLSFO (Very Low Sulphur Fuel Oil) in the same area is priced at $531 per ton, while HSFO (High-Sulphur Fuel Oil) costs $431.50 per ton.

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