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Maritime Market Update: Shipping To Be Included In The European Union Emissions Trading System

Risavika LNG was at 45.53 EUR/MWh, which was 2.3 % lower than 2 weeks ago. European gas markets continue being volatile with bullish sentiment prevailing in the market. Natural gas supplies are still weaker due to summer maintenances, return of Nord Stream flows this week has been partially offset by maintenances in Norway and lower LNG sendouts. Although the demand for gas is soft during the summer, storage demand persists.

Oil product prices were also down following the news on higher oil supply from August onwards. Fuel oil 3.5 (FO 3.5) price has been quite resilient dropping only 0.7 % to 395.36 USD/t, low sulphur oil (MFO 0.5) and marine gasoil (MGO 0.1) were lower by 2.2 % and 2.3 % to 509.67 USD/t and 587.98 USD/t respectively.

The EU recently published the Fit for 55 package, which proposes adding maritime shipping to the European Union Emissions Trading System (EU ETS) gradually from 2023 and phasing in over a three-year period. Ship owners will have to buy permits under the ETS when their ships pollute or else face possible bans from EU ports. A separate EU proposal would set targets for ships to limit the greenhouse gas intensity of the energy they use on board by -2% in 2025, stepping up to -6% in 2030 and eventually -75% in 2050, compared with 2020 levels. According to SEA-LNG, if accepted, this proposal would benefit LNG and Bio-LNG fuels as they are operationally proven and commercially available.

LNG Risavika – LNG FOB Risavika

LBG Risavika 10 % – 10 % blend of Liquified Biogas

FO 3.5 FOB Rdam – European 3.5% Fuel Oil Barges FOB Rdam (Platts) Futures Quotes

MFO 0.5 FOB Rdam – European FOB Rdam Marine Fuel 0.5% Barges (Platts) Futures Quotes

MGO 0.1 FOB ARA – Gasoil 0.1% Barges FOB ARA (Platts) Futures Quotes

ULSD FOB ARA – European Diesel 10 ppm Barges FOB ARA (Platts) Futures Quotes
Source: Gasum

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