LNG freight rates surge

Spot charter rates for the global liquefied natural gas carrier fleet have doubled over the last two weeks, according to Spark Commodities.

Earlier this month, spot LNG freight rates rose over $100,000/day in both Atlantic and Pacific for the first time since December 2021.

Now the rates surged “above $200k/day in both basins as winter approaches,” Spark said on Monday.

LNG freight rate for a 160,000-cbm TFDE carrier reached $210,500 a day in the Atlantic on Monday.

Compared to the previous week, Spark30S Atlantic spot LNG freight rate jumped by $44,25O.

On the other side, the Pacific rate also rose to $213,050 per day on Monday, up by $7,250 from the last week, according to Spark.

Spark also said that positioning fees are now being included in negotiations and fixtures, driving up the round-trip rates.

LNG freight rates surge
Image: Spark

Prior to these increases, charter rates dropped considerably in June due to the shutdown at the Freeport LNG facility in Texas.

Last month, Freeport LNG delayed the restart of its 15 mtpa LNG export plant in Texas to November following an incident at the facility that took place on June 8.

This facility and other US LNG terminals have sent most of their volumes to Europe this year due to high gas prices and as European countries look to slash reliance on Russian pipeline gas.

European demand also pushed Asian spot LNG prices to record highs.

The JKM LNG price fell in the last couple of weeks but it remains very high. It was assessed on September 23 at $38.21/MMBtu, up by 45 percent compared with a year ago, according to Platts.

Most Popular

Venture Global’s Plaquemines LNG wraps up $4 billion notes offering

Venture Global's unit Plaquemines LNG has closed a $4 billion offering of senior secured notes.

Argentina’s Enarsa to spend $567 million on LNG purchases

Argentina's state-owned LNG importer, Energia Argentina (Enarsa), will spend $570 million to purchase 22 liquefied natural gas (LNG) cargoes from BP and TotalEnergies this year.

Shell’s LNG Canada to ship second cargo

Shell-led LNG Canada is expected to soon ship the second cargo of liquefied natural gas from the Kitimat facility on the west coast of Canada, according to shipping data.

More News Like This

Spot LNG shipping rates dropped this week

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet and European prices decreased this week compared to the previous week.

Atlantic LNG shipping rates down, Pacific rates up

Atlantic spot LNG shipping rates decreased to $48,750 per day this week, while Pacific rates rose compared to the week before.

Spain was top destination for US LNG supplies in April

Spain was the top destination for US liquefied natural gas cargoes in April, according to the Department of Energy’s LNG monthly report.

Atlantic LNG shipping rates jump to $49,750 per day

Atlantic spot LNG shipping rates rose to $49,750 per day this week, while European prices also jumped compared to the previous week.