Asian spot prices for liquefied natural gas (LNG) and shipping rates to carry the super-chilled fuel soared to unusual highs last week, reports Nasdaq.
What is the reason?
According to industry sources, Asian spot prices for liquefied natural gas (LNG) and shipping rates to carry the super-chilled fuel soared to unusual highs on the back of strong demand to restock gas inventories in Europe and Asia.
Highest spot price
According to data from price agency S&P Global Platts, Unipec Singapore sold liquefied natural gas (LNG) cargo for June 3-7 delivery to BP at $8.90 per million British thermal units (mmBtu) on Thursday last week.
This is the highest spot price LNG-AS since late January, Reuters data showed.
Why do traders concentrate on replenishing?
“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.
LNG daily charter rate
According to shipping sources, 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.
The spike in shipping rates is not usual for summer, the sources added.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Nasdaq
