googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767737710-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); Subscribe to Maritime Reporter Email News. A large number of laden LNG carriers are now reportedly waiting offshore of southern Europe as a result.. googletag.cmd.push(function() { window.googletag = window.googletag || {cmd: []}; Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Weekly trend of natural gas and LNG prices April 24, Weekly trend of natural gas and LNG prices April 17, NYMEX Futures Rally on Colder Weather Forecasts and Increased LNG Demand, Weekly trend of natural gas and LNG prices April 10, Weekly trend of natural gas and LNG prices April 03. In March, the total number of global LNG export cargoes increased by 8% m-o-m to 551. LONDON (Reuters) - Asian spot liquefied natural gas (LNG) prices declined this week, tracking European gas prices which fell due to stable Russian gas flows and LNG supply. A U.S. cargo sold in Europe could bring a profit of $201 million. "There has been a substantial increase in long-term charters," said Feer, taking capacity off the spot market. The plant is out of operation through at least month's end. LNG supply and demand in 2022 increased by 5.5% (20.6 mt), similar to the 18 mt (5.1%) increase in 2021. . Spot ship rates have been dramatically impacted by energy. Global LNG liquefaction capacity is set to expand by over 36%. I think the spot price for natural gas is around $10.00, but the spot price for LNG is much higher. As of April 1, 2022, Clarksons assessed headline spot rates for TFDE and Steam LNG carriers at $39,500 per day and $31,500 per day, respectively. Merchant of Record: A Media Solutions trading as Oilprice.com. This is close to $500 per barrel of oil equivalent, noted Oystein Kalleklev, CEO of shipowner Flex LNG (NYSE: FLNG), during a conference call on Wednesday. These cookies will be stored in your browser only with your consent. Individuals should consider whether they can afford the risks associated to trading. gptAdSlots.push(gptSlot); What is your view? In an increasingly dynamic LNG market, participants need a trusted benchmark to capture and manage freight price risk. There are mounting concerns that the limited availability of LNG vessels could cause cargo disruptions. "It (the Freeport LNG outage) should have had an impact. Rates for M-type, electronically controlled, gas-injection (MEGI) propulsion carriers are at $125,000 per day, up 89% month-on-month. Every Wednesday! These cookies do not store any personal information. Spot and time-charter rates for LNG carriers strengthen on action uptick Published 17 May 2022 11:05 GMT Gas . LNG spot charter rates more than tripled since the start of September, to hit over $300,000/day in the Atlantic basin and over $250,000 in the Pacific. , said traders. However, the delays at Panama Canal, which are likely to extend until March 2021, should support charter rates and prevent a major correction. This 13th edition of the IGU World LNG report has become one of the most anticipated, in light of another, even more eventful year for the LNG sector. LNG carrier charter rates are soaring as the energy crisis sparks a ship shortage. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. But opting out of some of these cookies may affect your browsing experience. Spot rates for transporting 160,000 cubic meters of LNG in the Atlantic Basin is $100,000 per day, and $85,000 per day for Asia, or the East-of-Suez, cargoes, said Poten's head of business intelligence Jason Feer. Qatar delivered 22 more cargoes in the first quarter of this year compared to the same period last year, the Gas Exporting Countries Forum (GECF) said in its April report. Even without the three-way economics, voyage charter rates are soaring. Affinity pegged one-year charter rates for modern two-stroke LNG tonnage at over $136,000 per day, with three-year period deals at close to $120,000 per day. Rates then rebounded, with the most fuel-efficient models with MEGI or XDF propulsion back to $100,000 per day by May. In the past, more of those vessels may have been relet into the spot market to take advantage of skyrocketing rates. Buyers who were caught short of transport in the last two winters turned to long-term charters. He currently resides in Manhattan with his wife and two Shih Tzus. When the freight rate reaches the point where it erases the profit margin on the commodity cargo, the shipper simply refuses to book the trip. Flex LNG is now largely in harvesting mode, paying out dividends, including a special dividend announced Wednesday. Asked how high product tanker rates could theoretically go, Hafnia Tankers CEO Mikael Skov told attendees at the Capital Link New York Maritime Forum on Sept. 21, Once you have full utilization, theres nothing that prevents rates to go to any level, other than if freight becomes so much of the total that it kills it. "Shipowners enjoy good charter rates," Kim said. }); Since then, the rate roller coaster has continued. Report shows costs 5 times as much using LH2 ships compared to LNG. First, given the high cost and exceptionally long delivery times for newbuilds, a company in need of shipping capacity may favor a long-term charter of an existing ship. Find current gas procurement prices and learn about upcoming changes to the core sales rate. It sparked an outcry among containerized cargo shippers, leading to accusations that rates were unfair and represented price gouging.. These include considerations such as whether the ballast leg is charged at a different day rate, whether the charterer is charged to return the vessel back to the loading port or elsewhere, and whether any other costs are added or subtracted. window.googletag = window.googletag || {cmd: []}; 2023 Argus Media group. var gptSlot = googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[728, 90], [468, 60], [300, 100], [320, 50]], 'div-gpt-ad-b1-i-fw-ad-1').defineSizeMapping(gptSizeMaps.banner1).setCollapseEmptyDiv(true).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); One-year time charter rates for TFDE LNG carriers averaged $155,000 per day in the first quarter of 2023, about 18% lower than rates in the fourth quarter of 2022, reflecting the seasonal downturn. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); Spot-market rates for liquefied natural gas (LNG) tankers this week set annual records as traders bid up available vessels to meet rising global demand for the chilled gas, according to brokers. var write_html = `