Atlantic LNG Freight Rates Rise To $75,000/Day, European Prices Drop

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  • Atlantic spot LNG freight rates jumped this week, while European prices decreased.
  • LNG carriers have been avoiding the route via Egypt’s Suez Canal due to rocket attacks in the Red Sea since mid-January.
  • GIE data shows that volumes in gas storages in the EU continued to rise.

Atlantic spot liquefied natural gas (LNG) freight rates jumped this week, while European prices decreased compared to the previous week, reports LNG Prime.

Last week, freight rates increased in both the Atlantic and Pacific basins.

Spark30s Atlantic rates experienced the largest week-on-week increase since October 2023, rising by $10,750 to $75,000 per day,” Qasim Afghan, Spark’s commercial analyst told LNG Prime on Friday.

After an extremely steady period in April and much of May, Spark30S rates have increased by over $30,000 in the last month, amid increasing demand in the Atlantic basin and the US arb to NE-Asia (via COGH) remaining open for July and August,” he said.

Meanwhile, Spark25S Pacific rates stayed relatively steady, decreasing by $250 to $47,750 per day,” Afghan said.

LNG carrier via Suez Canal

The 2002-built 137,231-cbm, Asya Energy, previously known as Trader IV, is reportedly the first LNG carrier to travel via the Bab al-Mandab Strait between Yemen and Djibouti since January this year.

LNG carriers have been avoiding the route via Egypt’s Suez Canal due to rocket attacks in the Red Sea since mid-January.

According to its AIS data provided by VesselsValue, Asya Energy was on Friday located in the Red Sea and heading towards the Mediterranean.

European prices down

In Europe, the SparkNWE DES LNG front month dropped compared to the last week.

SparkNWE DES LNG prices decreased this week, with the front month price for July delivery assessed at $10.715/MMBtu and at a $0.115/MMBtu discount to the TTF,” Afghan said.

He said this is a $0.407/MMBtu decrease in DES LNG price, and a $0.04/MMBtu narrowing of the discount to the TTF.

Data by Gas Infrastructure Europe (GIE) shows that volumes in gas storages in the EU continued to rise and storages were 74.34 percent full on June 19.

Gas storages were 72.50 percent full on June 12, and 74.65 percent full on June 19 last year.

JKM climbs

In Asia, JKM, the price for LNG cargoes delivered to Northeast Asia, for August settled at $12.600/MMBtu on Thursday.

Last week, JKM for July settled at 12.138/MMBtu on Friday.

JKM rose to 12.575/MMBtu on Monday after switching from July to August and increased to 12.600/MMBtu on Wednesday.

Wheatstone LNG

Chevron’s 8.9 mtpa Wheatstone LNG export facility in Australia remains offline.

Chevron Australia said on June 13 it expects to complete repair activities on the Wheatstone offshore platform, which provides gas to the onshore LNG plant, in the coming weeks.

The company suspended operations on the offshore platform on June 10 to repair the platform’s fuel gas system.

Chevron Australia has advised the WA domestic gas market (AEMO’s Gas Bulletin Board) that supply is currently scheduled to return by June 27, 2024.

According to AEMO data on Friday, the domestic plant is expected to start ramping up capacity on June 22.

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Source: LNG Prime