The fire that knocked out the Freeport LNG gas-processing and export terminal has not affected the increase in spot rates, he said. googletag.enableServices(); As a result, earnings on a round-trip basis might be around $500,000 a day.. Skip to content. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. The US, Australia, and Qatar lead the number of LNG shipments in 2023 thus far, Doha-headquartered GECF noted. A year and a half ago, the company was almost entirely spot-exposed, either through index-linked charters or short-term employment. From the beginning of October until the end of November, LNG cargo markets have a strong contango structure of $10 per million Btu, Morkedal explained. LNG carriers are shooting for the stars. How will the LNG shipping market play out this winter? Theres really no cap until the freight becomes really, really high., Scorpio Tankers (NYSE: STNG) President Robert Bugbee noted that his company fixed tankers on individual voyages this summer at over $100,000 per day and not one time have we had phone calls from the heads of BP or Shell ringing up and saying, What the hell are you doing screwing our guys over?. The industry leader for online information for tax, accounting and finance professionals. Eighteen months ago, five-year rates were almost half that, in the mid-$60,000s per day. googletag.pubads().enableSingleRequest(); After graduating Cornell University, he fled upstate New York's harsh winters for the island of St. Thomas, where he rose to editor-in-chief of the Virgin Islands Business Journal. SIGN UP to receive our weekly newsletter with new LNG market reports, presentations & analysis. Shell booked an LNG carrier for $400k per day, likely the most expensive ever for the Atlantic basin. The natural-gas hub price in Asia, JKM, was at $61 per MMBtu. LNG spot charter rates more than tripled since the start of September, to hit over $300,000/day in the Atlantic basin and over $250,000 in the Pacific. By ZeroHedge - Oct 04, 2022, 11:00 AM CDT LNG carrier charter rates are soaring as the energy crisis sparks a ship shortage. The company, which recently sold an LNG shipment from its Cove Point export facility, chartered the vessel from a European utility company, they said. googletag.pubads().enableSingleRequest(); This time around, the profits from buying and selling the cargo itself is more attractive. googletag.pubads().collapseEmptyDivs(); Thats around 30 times as high as rates during some years pre-COVID. window.googletag = window.googletag || {cmd: []}; 74-89% of retail investor accounts lose money. And with more ships available in the market, [MEGI] rates plummeted back to around $60,000-$70,000, said Kalleklev. You can unsubscribe from these updates at any time. gptAdSlots.push(gptSlot); High Asian spot LNG prices of around USD 30/MMBTU created a wide price spread of USD 23/MMBTU between UK NBP and JKM prices (the Atlantic and Asian LNG price benchmark) and attracted Atlantic Basin volumes. Now, its fleet is almost entirely on fixed-rate long-term charters. In March, the total number of global LNG export cargoes increased by 8% m-o-m to 551. Flex LNGs business has followed the same multiyear-charter-centric script as the market as a whole. These include considerations such as whether the ballast leg is charged at a different day rate, whether the charterer is charged to return the vessel back to the loading port or elsewhere, and whether any other costs are added or subtracted. Request a trial of LNG Insight to unlock this and other subscriber-only content. These cookies will be stored in your browser only with your consent.
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