Norwegian shipowners commit to a climate neutral shipping
Risavika LNG index has dropped 6 % week on week to 14.49 EUR/MWh last week. European gas prices have fallen to the record low levels. The gas market remains oversupplied and gas storages are filling up, despite a large amount of US LNG cargoes arriving to Europe being cancelled for June and July.
Oil prices continued rising on combination of demand recovery and OPEC+ and US oil production cuts last week. Fuel oil prices (FO 3.5) front month closed at 182.25 USD/t last week, 12 % higher than previous week. Low Sulphur (MFO 0.5) front month has gained 8 % and closed at 239.86 USD/t. Fuel oil stocks held in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) dropped by 4% as of 22nd of May on rising exports from the hub, according to Global Insight data. While gasoil stocks rose 5 % as imports to the hub have increased.
While the world is slowly recovering from the pandemic, the attention is back to long-term strategies and tackling global challenges. In case of the maritime industry that would be a realization of the 50 % carbon reduction by 2050. Some market players are already establishing their long-term visions. Norwegian shipping companies have recently committed to four ambitious goals laid out in a climate strategy. The goals state that members will cut their greenhouse gas emissions by 50% per transported unit by 2030, compared to 2008. From 2030, Norwegian Shipowners’ Association members will only order vessels with zero emission technology. From 2050, the Norwegian fleet will be climate neutral. The strategy also entails an international ban from 2050 on fuel types that are not climate neutral.
Gasum offers Liquified Biogas (LBG), the sustainable maritime fuel, already now. Check Maritime LBG page for more details and follow the chart in our weekly updates for the price reference on 10% LBG/LNG blend product.