Atlantic LNG shipping rates climb to $87,000 per day, European prices steady

Atlantic spot liquefied natural gas (LNG) freight rates jumped this week, while European prices remained steady compared to the previous week.

Last week, freight rates increased in both the Atlantic and Pacific basins.

“Spark30s Atlantic rates continued to experience record week-on-week increases for 2024, rising by $12,000 to $87,000 per day and increasing by over $35,000 in the last month. This mirrors a similar rally seen in 2023,” Qasim Afghan, Spark’s commercial analyst told LNG Prime on Friday.

Atlantic LNG shipping rates climb to $87,000 per day, European prices steady
Image: Spark

At the same time, Spark25S Pacific rates are also starting to increase, rising by $4,000 this week to $51,750 per day, he said.

“After an extremely steady period in April and much of May, Spark30S rates have increased by over $30,000 in the last month, amid increasing demand in the Atlantic basin and the US arb to NE-Asia (via COGH) remaining open for July and August,” he said.

“Whilst the US arb to NEA via COGH is currently closed, the arb to NEA via Panama remains open for the next few months, continuing to apply upward pressure on Atlantic freight rates,” Afghan said.

European prices

In Europe, the SparkNWE DES LNG front month was slightly up compared to the prior week.

“SparkNWE DES LNG prices remained steady this week, with the front month price for July delivery assessed at $10.731/MMBtu and at a $0.12/MMBtu discount to the TTF,” Afghan said.

He said DES LNG prices remain at “approximately the tightest discount to the TTF of the year”.

Atlantic LNG shipping rates climb to $87,000 per day, European prices steady
Image: Spark

Data by Gas Infrastructure Europe (GIE) shows that volumes in gas storages in the EU continued to rise and storages were 76.20 percent full on June 26.

Gas storages were 74.34 percent full on June 19, and 76.33 percent full on June 26 last year.

JKM climbs

In Asia, JKM, the price for LNG cargoes delivered to Northeast Asia, for August settled at $12.660/MMBtu on Thursday.

Last week, JKM for July settled at 12.465/MMBtu on Friday.

JKM rose to 12.610/MMBtu on Monday and to 12.735/MMBtu on Tuesday, while it dropped to 12.620/MMBtu on Wednesday.

Egypt LNG tender

Several reports said this week that Egypt has awarded a large tender for LNG cargoes.

S&P Global Commodity Insights said that Egyptian General Petroleum Corp., the parent company of EGAS, awarded a total of 20 cargoes on June 26.

In addition to the original 17 cargoes, EGPC awarded three more cargoes, two of which were for August delivery and one for September delivery, S&P Global Commodity Insights said, citing an EGPC spokesperson.

The company received offers from around 15 market players and the awarded tender comprised both fixed prices and TTF-linked cargoes.

According to S&P Global Commodity Insights, the price levels ranged between TTF plus $1.6/MMBtu and TTF plus $2/MMBtu.

The awardees included Total, BP, Vitol, Trafigura, and Aramco, the report said.

In May, Norwegian FSRU player Hoegh LNG confirmed it has signed a deal with Australian Industrial Energy (AIE) and Egypt’s EGAS to deploy the 2019-built FSRU Hoegh Galleon to Egypt.

The agreement with EGAS is for an interim period of June 2024 to February 2026.

Hoegh Galleon arrived from the Sagunto LNG import terminal in Spain to Ain Sohna this month.

Wheatstone LNG back online

Chevron’s 8.9 mtpa Wheatstone LNG export facility in Australia is now back offline.

A Chevron Australia spokesperson told LNG Prime on Sunday that it has resumed full LNG and domestic gas production rates at the Wheatstone facility with the restart of the facility’s two LNG trains and domestic gas plant.

Chevron Australia suspended operations on the Wheatstone offshore platform on June 10 to repair the platform’s fuel gas system.

As the platform provides gas to Wheatstone’s onshore facilities near Onslow, Western Australia, LNG and domestic gas production had been suspended as well.

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