Spot LNG prices, charter rates continue to skyrocket

Spot LNG prices but also charter rates are continuing an unbelievable surge due to a cold snap in Asia and Europe.

The average LNG price for February delivery into northeast Asia hit a record high of around $28.221 per mmBtu on Monday, according to S&P Global Platts.

Trader Trafigura purchased a 3.2 trillion British thermal unit cargo for delivery in mid-February from Total Gas and Power Asia at a record $39.30 per mmBtu, the agency said.

This could well be the most expensive LNG cargo ever sold.

In addition, freight rates are also surging as charterers scramble to find ships.

LNG freight rates hit $322,500 a day in the Atlantic on Friday, Spark Commodities said.

LNG rates more than doubled since previous highs in October 2019 but they also increased 18 times more compared to lows in June 2020, Spark said.

Moreover, several reports suggest that BP paid an unprecedented rate of $350,000 per day to charter LNG Abalamabie.

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