Weekly Gas Report, Week 1, 2023

Credit: Venti Views/Unsplash

Baltic Exchange has issued the gas report for the first week of 2023 dated 6th January 2023.


A relatively warm winter has impacted gas usage, coupled with higher inventory levels, as well as longer tonnage lists (with further shutdowns in Freeport and cancellations elsewhere), spot rates have been put under continued pressure. There have been cargoes offered out, but with a plentiful supply of cold and modern tonnage the rates have been dropping. Out in Australia a drop of over $30,000 has given the BLNG1g R.V rate of $129,779 Aus-Japan, although market reports suggest there have been deals done at less for relet tonnage.

BLNG2g, and BLNG3g haven’t escaped the fall and although BLNG2g US Gulf-Continent was published at $120,160 for a Round Voyage, reports suggest ships offering in at around $100,000 per day. But it hasn’t been an easy call. With few fixtures done there isn’t a clear direction or high degree of conformity of the market levels. As we leave the festive period there could be greater activity, which could arrest the fall in LNG routes. However, a reliance on the widening of the ARB could maintain the bearish sentiment for at least a few more weeks.

There are reports of term deals being fixed for longer term, in excess of six years, with period still showing strength. Current estimations for a 174k 2-Stroke vessel with 0.085% boil off: $200,250 for 12 months, and $174,750 for three years.


We start the new year with big adjustments down for all three BLPG routes. The last publication was 23 December, so an adjustment was expected, and we have witnessed a continued downward pressure on rates. BLPG1 currently sits $40 down since the end of 2022, publishing at $79, which is also a drop in TCE daily earnings of $45,000 per day. Fewer fixtures and the holidays created a rather subdued start to the year, but activity is expected to pick up and in a largely sentiment driven market rates should rise as a result.

As expected, BLPG2 and BLPG3 out in the West have dropped considerably since the end of 2022. BLPG3 Houston-Chiba saw the greatest drop losing $53 to publish at $123.429 at the end of the week. This drop saw over $40,000 lost on TCE Earnings on this route alone. But as activity has begun to pick up and charterers still seem keen to fix tonnage, this downward trend could turn around.

BLPG2 Houston-Flushing lost the least since publication started in 2023 but managed to still drop $37 on the headline and over $50,000 TCE to finish at $68.4, with a daily TCE earnings of $70,649.

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Source: Baltic Exchange