LNG spot price, tanker rates jump on global restocking demand

Asian spot prices for LNG and shipping rates to carry the super-chilled fuel soared to unusual highs this week on the back of strong demand to restock gas inventories in Europe and Asia, industry sources said.

Unipec Singapore sold a liquefied natural gas (LNG) cargo for June 3-7 delivery to BP at $8.90 per million British thermal units (mmBtu) on Thursday, data from price agency S&P Global Platts showed.

This is the highest spot price LNG-AS since late January, Reuters data showed.

"Traders are replenishing gas inventory in Europe after it dropped to very low levels during winter, so the restocking is supporting prices in Asia," a Singapore-based LNG trader said, adding that firm demand from China is also supporting.

The daily charter rate for shipping LNG on a vessel able to carry about 175,000 to 180,000 cubic meters of LNG has risen to up to $70,000 to $80,000 from around $50,000 to $65,000 last week, two shipping sources said.

The spike in shipping rates is not usual for summer, the sources added.

(Reporting by Jessica Jaganathan; Editing by Edmund Blair and Amy Caren Daniel)

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