Spark says LNG freight rates rise in both basins

Spark Commodities reported a rise in its liquefied natural gas (LNG) freight spot rates in both basins this week.

Both the Atlantic and Pacific rates for 160,000-cbm TFDE carriers fell below $100,000 per day in January, continuing their drop since posting record highs in October and November last year.

The downward trend continued in the beginning of February, but the rates are slowly picking up in the last two weeks.

“Spot LNG freight rates continue to tick higher this week with the Far East leading the way, with Spark25 Pacific rates $11,750/day higher w-o-w at $74,750/day and Spark30 Atlantic rates up $5,250/day w-o-w to reach $58,500/day,” Spark said.

Spark previously said that the ongoing delays with the restart of the Freeport LNG facility was one of the main reasons behind the drop in Atlantic LNG rates.

Also, mild winter weather in Europe and full storages pushed down gas prices in Europe.

Spark says LNG freight rates rise in both basins
Image: Spark Commodities

Freeport LNG announced on Tuesday it secured regulatory approval to launch commercial operations of two trains at its 15 mtpa liquefaction plant in Texas as part of the restart process.

Earlier this month, the LNG terminal operator shipped the first cargo from its LNG export plant in Texas since the shutdown in June last year onboard the 2008-built 155,000-cbm LNG carrier, Kmarin Diamond.

One of the initial three Freeport LNG cargoes already landed in Europe.

The 180,000-cbm LNG Schneeweisschen, owned by MOL and chartered by Uniper, delivered a Freeport LNG cargo to Germany’s first FSRU-based import facility in Wilhelmshaven last week, according to its AIS data provided by VesselsValue.

Prior to the shutdown on June 8 last year, most of the cargoes produced at the Freeport LNG plant in 2022 landed in Europe. This is the case with other US LNG terminals as well.

Shell recently said that Europe increased its LNG imports by 60 percent to 121 million tonnes in 2022.

However, Europe’s increased need for LNG looks set to intensify competition with Asia for limited new supply available over the next two years and may dominate LNG trade over the longer term, according to Shell.

As per prices in Europe and Asia, the TTF price for March settled at $15.229/MMBtu, while the JKM spot LNG price for April settled at $14.300/MMBtu on Tuesday.

Most Popular

LNG carrier arrives to load first LNG Canada cargo

The 174,000-cbm GasLog Glasgow has arrived at the LNG Canada jetty in Kitimat to load the first LNG cargo produced at the Shell-led terminal, an LNG Canada spokesperson told LNG Prime on Saturday.

Knutsen, Shell name ninth LNG newbuild

Norwegian shipowner Knutsen and UK-based energy giant Shell have named the ninth and final LNG carrier in a series of 174,000-cbm vessels.

BP seals LNG SPA with Italy’s A2A

UK-based energy giant BP has signed a long-term liquefied natural gas (LNG) supply deal with Italian electricity and gas distributor A2A.

More News Like This

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.

US weekly LNG exports reach 30 cargoes

US liquefied natural gas (LNG) plants shipped 30 cargoes during the week ending June 25. According to the Energy Information Administration, pipeline deliveries to the LNG terminals rose compared to the prior week.

Coastal Bend LNG plans large Texas export plant

Coastal Bend LNG said it had initiated development of a 22.5 million ton per annum (mtpa) natural gas liquefaction and export facility on the Texas Gulf Coast.

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.