Global LNG Carrier Spot Rates and European Prices Increased

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This week, spot charter rates for the global LNG carrier fleet saw significant increases, with both the Atlantic and Pacific basins experiencing sharp rises. The Spark30S Atlantic rate surged by $7,250 to $64,250 per day, while the Spark25S Pacific rate increased by $2,750 to $48,000 per day. This marks the fourth consecutive week of rate increases in the Atlantic, with the highest week-on-week rise of 2024 so far.

European LNG Prices Climb 

European LNG prices also rose, with the SparkNWE DES LNG front month for July delivery assessed at $11.122/MMBtu, a $0.547/MMBtu increase from the previous week. The discount to the TTF narrowed by $0.01/MMBtu, reflecting stronger demand.

EU Gas Storage Levels

Data from Gas Infrastructure Europe (GIE) shows that EU gas storage volumes continued to rise, reaching 72.50% full on June 12. Despite importing 11 mtpa less LNG through May compared to the same period in 2023, low European gas demand has kept storage levels high. Forecasts predict storage will reach 100% by the end of September, with additional floating storage accumulated.

LNG Demand Shift to Asia

Lower European demand has diverted LNG shipments to Asia, with Chinese imports up 22%. Despite this, high prices may slow near-term demand growth in Asia. The JKM price for LNG cargoes delivered to Northeast Asia settled at $12.095/MMBtu for July.

Operational Updates and Shipments

    • Wheatstone LNG Repairs: Chevron’s Wheatstone offshore platform in Australia is undergoing repairs, with operations expected to resume by June 27, 2024.
    • Brunei LNG Operations: Normal operations resumed at Brunei LNG on May 28 after an outage on May 20.
    • Contract Awards and Shipments: First Gen awarded a contract to Tokyo Gas for an LNG cargo delivery in July, and PetroVietnam Gas received a cargo from PetroChina International to support power plants during heatwaves.
    • US LNG Export Activity: US LNG exports totaled 25 shipments in the week ending June 12, with pipeline deliveries to US terminals slightly decreasing to 12.9 Bcf/d.
    • Egypt’s LNG Needs: Egypt is seeking LNG cargoes to meet summer electricity demands. Hoegh LNG confirmed a deal to deploy the FSRU Hoegh Galleon to Egypt from June 2024 to February 2026. The vessel arrived in Ain Sohna from Spain on Friday.

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Source: LNG Prime