LONDON, Feb. 20, 2025 -- Global energy and commodity price reporting agency Argus has launched a set of prices for liquefied natural gas (LNG) made from waste feedstock— a renewable fuel for the shipping sector. The prices, for both subsidised and unsubsidised waste-based bio-LNG, delivered on board, will bring new transparency to an important market for decarbonising maritime transport.
A FuelEU Maritime regulation that came into effect this year requires ships operating in EU waters progressively to cut greenhouse gas (GHG) emissions — starting with a 2pc reduction in 2025 and ramping up to 80pc from 2050. Bio-LNG is an attractive option for shipowner because it offers considerable GHG savings compared with fossil LNG and other low-GHG alternatives.
The EU regulation allows operators to "mass balance" their fleets, by attaching renewable gas Guarantees of Origin to a physical bio-LNG volume or by blending bio-LNG into fossil LNG. Demand for the fuel is set to rise steadily in the run-up to 2030, which is when the International Maritime Organization's global GHG reduction target of 30pc kicks in, before deepening to net zero by 2050.
Argus' new bio-LNG prices are the sum of three Argus prices — the Dutch TTF natural gas front-month, the LNG bunker premium to the TTF, and the price of Dutch waste-based biomethane. Added to this is a standardised regulated bio-LNG liquefaction fee charged to attribute biomethane certificates to a volume of LNG. Bio-LNG is made by liquefying biomethane, and is also growing in popularity in the long-haul trucking market as a replacement for diesel.
The prices allow counterparties to identify the bio-LNG bunker premium to existing TTF-linked fossil contracts. The price can also be used on an outright basis for contract and analysis purposes.
"Our new bio-LNG prices draw on Argus' market-leading expertise across multiple commodities," Argus Media chairman and chief executive Adrian Binks said. "As the maritime sector explores alternatives to fossil fuels, price transparency and market intelligence become a critical tool in helping market participants evaluate the cost of different pathways. Our new assessments were developed with broad input from the market."
Argus will publish the bio-LNG delivered-on-board prices for northwest Europe on a weekly basis in Argus Biofuels and Argus LNG Daily. The price is available in €/MWh and $/mn Btu.
Argus contact information
London: Seana Lanigan
+44 20 7780 4200
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About Argus Media
Argus is the leading independent provider of market intelligence to the global energy and commodity markets. We offer essential price assessments, news, analytics, consulting services, data science tools and industry conferences to illuminate complex and opaque commodity markets.
Headquartered in London with over 1,400 staff, Argus is an independent media organisation with 30 offices in the world's principal commodity trading hubs.
Companies, trading firms and governments in 160 countries around the world trust Argus data to make decisions, analyse situations, manage risk, facilitate trading and for long-term planning. Argus prices are used as trusted benchmarks around the world for pricing transportation, commodities and energy.
Founded in 1970, Argus remains a privately held UK-registered company owned by employee shareholders and global growth equity firm General Atlantic.
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