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.
(Reporting by Jessica Jaganathan; Editing by Edmund Blair and Amy Caren Daniel)
- Egypt agrees to buy up to 160 LNG cargoes through 2026
- Shell to add up to 12 MMt of additional LNG capacity by 2030
- ADNOC takes FID, awards $5 B in contracts for Phase 1 of its Rich Gas Development project
- U.S. ethane vessels stall amid curbs on exports to China
- TotalEnergies CEO expects to restart Mozambique LNG project this summer
Comments