Gas Processing & LNG is Produced by Gulf Publishing Holdings LLC



Rising ship supply helps ease LNG charter rates

LONDON (Reuters) - Inflated spot charter rates for liquefied natural gas (LNG) tankers are easing as more ships becoming available, which could help increase LNG trade if Asian demand rises in coming months.

LNG charter rates are a key component of spot LNG trade, dictating the way the super-cooled gas is transported. Charter rates usually follow the price of LNG, which has fallen since September due to sluggish demand from Asian buyers.

Rates have remained high for most of this year, hitting around $195,000 last month.

Not many spot Atlantic cargoes have traveled east in recent months due to inflated shipping rates, with some companies having to arrange cargo swaps to reduce costs.

But as more vessels become available for spot charters, rates have dropped to around $160,000 per day at the end of November, shipbrokers told Reuters. One source said the spot rate for a modern vessel reached $140,000 per day on Tuesday.

Four ships became open on Monday for December charter, one industry source said, while another predicted that overall up to 10 will become available for charter this month, with more coming to the market after floating cargoes are unloaded.

Additionally, Chinese energy major CNOOC Ltd. offered late last month to charter out the British Emerald LNG tanker after it hired the ship from oil and gas company BP earlier this year, two shipbrokers in Singapore said.


Copyright © 2019. All market data is provided by Barchart Solutions. Futures: at least a 10 minute delay. Information is provided 'as is' and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.

                                  CMEGroup                                     Icelogo

FEATURED COLUMNS

Editorial Comment
-Adrienne Blume
On the changing landscape of global natural gas trade, the US has magnified its export power by remaining a net exporter for 13 months as of February 2019.
EWAnalysis: US LNG producers eye major growth
- Energy Web Atlas
The US LNG market has experienced rapid growth over the past decade due to the availability of inexpensive feedstock and increased worldwide demand.
Regional Focus: Nigeria moves to expand its liquefaction capacity
-Shem Oirere
The award in July 2018 of long-awaited contracts for the front-end engineering design (FEED) of Nigeria’s Train 7 gas plant expansion project to two consortia is the country’s latest attempt to address the enormous challenges of gas flaring and gas shortages for power plants and domestic consumption.


Reliable Operations & Saving OPEX for Gas Plant Refrigeration – Selecting the right technologies

Register Now

By selecting integrally geared turbocompressors for gas plant refrigeration duty coupled with a mag bearing turboexpander, operators get the added values of technology with highly reliable operations and reduced OPEX. Join Sami Tabaza and Chris Blackmer from Atlas Copco Gas and Process for a presentation followed by Q&A surrounding the turbocompressor and turboexpander technologies that can efficiently and reliably fit your gas plant design and operation to get the advantages of both technologies.

June 18, 2019 10:00 AM CDT

Register Now

 

Please read our Term and Conditions, Cookies Policy, and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.
© 2019 Gulf Publishing Holdings LLC.