Restocking demand leads to increased tanker rates and jump in LNG spot price
Restocking demand from Europe and Asia has led to a jump in spot prices for liquefied natural gas (LNG) and shipping rates.
According to industry sources, prices soared last week on the back of strong demand to restock gas inventories in Europe and Asia.
A liquefied natural gas (LNG) cargo was sold by Unipec Singapore for June 3-7 delivery to BP at $8.90 per million British thermal units (mmBtu), data from price agency S&P Global Platts showed.
Reuters data showed that this was the highest spot price paid since late January.
One Singapore-based LNG trader said: “Traders are replenishing gas inventory in Europe after it dropped to very low levels during winter, so the restocking is supporting prices in Asia.”
Shipping sources added that the daily charter rate for shipping LNG on a vessel able to carry about 175,000 to 180,000 cubic metres of LNG has risen to up to $70,000 to $80,000 from around $50,000 to $65,000 last week.
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4th May 2021