LNG freight rates drop on Freeport shutdown

Spot charter rates for the global liquefied natural gas carrier fleet dropped considerably this week due to the shutdown at the Freeport LNG facility in Texas, according to Spark Commodities.

“A sharp move lower in LNG freight spot rates today as vessel availability continues to increase following the Freeport shutdown,” Spark said.

LNG freight rate for a 160,000-cbm TFDE carrier reached $77,750 a day in the Atlantic on Thursday.

Compared to the previous week, the rate dropped by $22,50O.

On the other side, the Pacific rate also dropped to $77,750 per day, down by $13,750 from the last week, according to Spark.

To remind, Freeport LNG now expects to resume partial operation at its 15 mtpa liquefaction and export plant in Texas in about 90 days after an incident at the facility last week.

The LNG terminal operator said it does not expect completion of all necessary repairs and a return to full plant operations until late 2022.

The news of the prolonged shutdown affected both the US Henry Hub price and the Dutch TTF price.

Besides this, the TTF price surged on Thursday to more than 142.25 euros per megawatt-hour amid concerns over Russian gas supplies. Gazprom reduced volumes to Germany via the Nord Stream 1 gas pipeline saying there was a problem with gas turbines.

Most Popular

Woodside terminates Commonwealth LNG SPA

Australian LNG player Woodside has terminated its two LNG sale and purchase agreements with US LNG terminal developer Commonwealth LNG.

Germany, Egypt seal FSRU charter deal

Germany's Ministry for Economic Affairs and Energy has signed a deal with Egypt's state-owned EGAS to charter the 174,000-cbm FSRU Energos Power.

Thailand in Alaska LNG talks

Thailand's PTT and Egco will engage in further discussions to potentially participate in the development and buy volumes from the planned Alaska LNG project, according to Thailand's Ministry of Energy.

More News Like This

Atlantic LNG shipping rates slightly down, European prices climb

Atlantic LNG freight shipping rates rose above $40,000 per day this week, while European prices decreased compared to last week.

Atlantic LNG shipping rates rise above $40,000 per day

Atlantic LNG freight shipping rates rose above $40,000 per day this week, while European prices decreased compared to last week.

Freeport LNG working to return third tank to service

Freeport LNG, the operator of the three-train 15 mtpa liquefaction plant in Texas, is working to place its third LNG tank back into service following the facility's June 2022 overpressure incident.

Atlantic LNG shipping rates jump this week

Atlantic LNG freight shipping rates jumped this week, while European prices decreased compared to last week.