Weekly Gas Report – Week 33, 2023

LNG

Once again it has been reported that the Japanese imports of LNG have declined, this time to a 17.4% year-on-year decline for July. This coupled with the continued coverage of strikes in Australia had made market participants worried about the direction of the spot index. As it transpired, most of the worry is unfounded, with rates rising for Aus-Japan BLNG1g by $22,505 to close at $107,989. Owners have their sights on the winter market and with the potential for huge improvements on spot they are pricing in their expectations on cargoes loading in the natural fixing window. One MEGI ship was fixed for a round voyage in the high 170’s for late-September lifting, which is indicative of the positive trend that the spot is seeing.

While the Pacific basin saw big gains, out in the Atlantic it was a little quieter. Continued drought in the Panama Canal has pushed traders to consider alternative routing for east-bound cargoes, which is resulting in longer voyages and as a by-product taking tonnage out even more of the winter boom, which has kept ships far from keen for offering out. Rates did improve as expected, with BLNG2g Houston-Grain gaining nearly $10,000 to close at $101,661; while BLNG3g US-Japan saw slightly less made over the week to close at $138,442 with a rise of $8786.

LPG

A quiet week out in the Middle East, with BLPG1 Ras Tanura-Chiba fell by $2.785 giving a close of $95.286 (meaning a daily TCE Earning of $78,254 for a round trip). The tonnage list is quite healthy, and a lack of open cargoes has kept sentiment flat, there are new acceptances due to come out over the next few days and this will hopefully inject some cargo and life into the market, but last week has been particularly quiet.

The US market saw more movements with ships being fixed and rates rising on the back of this activity. The tighter tonnage list for August and early September, as well as continued delays in Panama and more stems being worked, has pushed rates up with BLPG2 Houston-Flushing nearing the triple digits again at $99.2 with a rise of $2.5 over the week (this gives a daily TCE earning of $111,894). For BLPG3 Houston-Chiba a rise of $3 over the week pushed published rates up to just below what one vessel was reportedly fixed at $170 to give an index value of $167.571, equating a daily TCE earning of $91,644.