The Argus Round Voyage (ARV) LNG freight rates are the robust and representative assessments that the industry needs for demurrage contracts, long-term charter agreements, and to settle financial instruments used for hedging, trading and inter-regional arbitrage. A loss of supply anywhere implies a loss of demand, but we didn't see it," said Feer. You also have the option to opt-out of these cookies. Rejiggering supply chains for the energy-stricken continent means increasing demand for LNG carriers to source gas further away. But opting out of some of these cookies may affect your browsing experience. Subscribe to Maritime Reporter Email News. In March, the total number of global LNG export cargoes increased by 8% m-o-m to 551. Thats around 30 times as high as rates during some years pre-COVID. Save my name, email, and website in this browser for the next time I comment. Weekly trend of natural gas and LNG prices April 24, Weekly trend of natural gas and LNG prices April 17, NYMEX Futures Rally on Colder Weather Forecasts and Increased LNG Demand, Weekly trend of natural gas and LNG prices April 10, Weekly trend of natural gas and LNG prices April 03. LNG shipping at the bottom of the cycle - Splash247 The LNG shipping sector is booming even more as rates near record highs following the bombing of the Nord Stream pipeline system last week. window.googletag = window.googletag || {cmd: []}; He currently resides in Manhattan with his wife and two Shih Tzus. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767737710-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); LNG: Supply, Demand, Pricing & Trading on September 12-20, 2023 in The ARV rates include all costs paid from charterer to owner ensuring that they capture any change in the transaction costs for a standard voyage on the benchmark routes, and are normalised to a $/day unit based on a fixed number of days. The leading economics blog online covering financial issues, geopolitics and trading. We are certainly in for an interesting winter, he predicted. Wave of U.S. LNG Ships Headed to Europe Sends Freight Rates Below Zero Online platform for sharing analysis and information on Global and regional LNG markets. Revenues for the first quarter were $99 million, a 15.9% increase from the first quarter of 2022. This 13th edition of the IGU World LNG report has become one of the most anticipated, in light of another, even more eventful year for the LNG sector. LNG cargoes flow into Germany and Finland's new FSRUs. googletag.pubads().collapseEmptyDivs(); Necessary cookies are absolutely essential for the website to function properly. We also use third-party cookies that help us analyze and understand how you use this website. LNG freight rates | Argus Media The Indian firm GAIL also secured an LNG shipment for about $360k per day. See here for a complete list of exchanges and delays. These are extremely high period rates for modern tonnage, said Kalleklev. Markets Wave of U.S. LNG Ships Headed to Europe Sends Freight Rates Below Zero Spot charter rate in the Atlantic falls to -$750/day: Spark Diversions from Asia means too many LNG. LNG carrier rates top $260,000 per day as arbitrage profits exceed The term market has remained strong for this whole period. The switch to more U.S.-Europe voyages at the expense of U.S-Asia voyages reduced average sailing distance by 15% in Q1 2022 versus Q4 2021, which released a lot of available ships in the market and pushed spot rates back down from winter highs, he explained. googletag.enableServices(); Day rates bottomed in March and have been very strong since May. }); The average spot rate for modern LNG carriers topped $250,000 per day in Q4 2021. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot3', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767553440-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); }. Benchmark tri-fuel, diesel engine (TFDE) carrier rates were assessed at $276,700 per day. It is mandatory to procure user consent prior to running these cookies on your website. In the past, more of those vessels may have been relet into the spot market to take advantage of skyrocketing rates. In addition, with the increase in LNG supply in the Pacific Basin and the expected slowdown in the Asian LNG price rally, the movement of LNG carriers from the Atlantic Basin to the Pacific Basin will likely start to slow, reducing the tonne-mile demand of LNG carriers and increasing vessel availability. LNG carrier charter rates are soaring as the energy crisis sparks a ship shortage. Find current gas procurement prices and learn about upcoming changes to the core sales rate. Approval of these applications for 2022 is only 81.95 % nationwide. Qatar records 22 more LNG cargoes in first quarter than Q1, 2022: GECF Even though the Henry Hub is at a 14-year high, it is immensely profitable to move these cargoes to either Europe or Asia, said Kalleklev. Save my name, email, and website in this browser for the next time I comment. GasLog Partners LP (GLOP) Q1 2023 Earnings Call Transcript Any trading and execution of orders mentioned on this website is carried out by and through OPCMarkets. googletag.pubads().collapseEmptyDivs(); LNG Carrier Spot Charter Rates Hit Record Highs - MarineLink Required fields are marked *. The Argus Round Voyage rates are for a standard, fungible vessel, offered cold for single-cargo fixtures beginning between five days after the date of assessment and the end of the following calendar month, with the following specifications: To participate in the Argus assessment process, please contact: LNG Daily Editor, Harry Homan, in London; or Asia LNG Editor, Camille Klass, in Singapore. Flex LNG is now largely in harvesting mode, paying out dividends, including a special dividend announced Wednesday. NatGas Conference Call Schedule. googletag.cmd.push(function() { Please enter your username or email address to reset your password. window.googletag = window.googletag || {cmd: []}; googletag.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); Bloomberg explains more: Source: Bloomberg Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. A Q-Flex vessel Al Sheehaniya, carrying super-chilled LNG from Qatargas (file picture). Supplemental Applications are being pended at an alarming rate. In an increasingly dynamic LNG market, participants need a trusted benchmark to capture and manage freight price risk. LNG contracts and LNG spot and short-term trading Name: Infocus International Website: . }); googletag.cmd.push(function() { Forward assessments for LNG carrier. LNG spot charter rates hit new highs | Global LNG Hub The European hub price of natural gas, TTF, hit $84 per million British thermal units (MMBtu) on Monday. There are over 600 dedicated LNG vessels which transport gas around the world. Welcome to the stratosphere of LNG prices, commented Stifel analyst Ben Nolan on todays market conditions. Highlights: Vessel operating revenue of $74.6 million for the first quarter 2022, compared to $114.6 million for the fourth quarter 2021. By Marwa Rashad. LNG spot charter rates more than tripled since the start of September, to hit over $300,000/day in the Atlantic basin and over $250,000 in the Pacific. An LNG tanker with a 160,000 cubic meter storage capacity could be chartered at an average spot price of 89,200 U.S. dollars per day in 2021. Rejiggering supply chains for the energy-stricken continent means increasing demand for LNG carriers to source gas further away. Second, new export projects that opt for newly built vessels will do so by pre-agreeing to long-term charters from the shipowners that place the actual orders. The company, which recently sold an LNG shipment from its Cove Point export facility, chartered the vessel from a European utility company, they said. We would be happy to offer you more information about our paid services. Learn more about our contributors. You can access the latest assessments for five of our key LNG freight rates with our complimentary newsletter, delivered direct to your inbox weekly. Fewer vessels will be coming off charters in the coming months, keeping supply tight, he said. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. This year's rate changes, approved by the CPUC, will allow us to continue to modernize and upgrade our natural gas pipelines and other infrastructure to enhance long-term reliability and safety. googletag.cmd.push(function() { It has been very firm, even in periods of spot-market weakness, said Kalleklev. "to replace Russian pipeline flows with liquefied natural gas from suppliers including in the US and Nigeria. " Our Standards: The Thomson Reuters Trust Principles. The number of LNG ships available for spot deals is exceptionally limited. SIGN UP to receive our weekly newsletter with new LNG market reports, presentations & analysis. I think the spot price for natural gas is around $10.00, but the spot price for LNG is much higher. }); Of its 13 vessels, 12 are on fixed-rate, multiyear employment. if(window.innerWidth <= 1023){ In December 2020, the average spot charter rate for steam turbine LNG carriers reached $90,000 per day, the record high for that month. About half of the new-build orders for commercial vessels are for ships equipped with dual fuel engines - either LNG or methanol - with oil, he added. Dont miss the hottest freight event of the summer! 10 yrs ago concern was raised that should have 2 more major refineries be built and 3 large LN G terminals LNG in an era of lower oil prices - Norton Rose Fulbright In LNG trading, its all about the arbitrage. Transportation Price. One-year rate signals optimism into next year The benchmark one-year charter rate for LNG carriers jumped 74% to $82,000 a day since the start of 2021, according to Fearnleys, which is the. Spot and time-charter rates for LNG carriers strengthen on action Asian LNG prices slide amid stable European gas flows These cookies do not store any personal information. He then spent 15 years at the shipping magazine Fairplay in various senior roles, including managing editor. Lng Charter Rates - Latest shipping and maritime news | TradeWinds Some individual deals were reported at over $300,000 per day. 2023 Natural Gas Intelligence. Now, its fleet is almost entirely on fixed-rate long-term charters. GasLog Partners LP Reports Financial Results for the Three-Month Period googletag.enableServices(); It is mandatory to procure user consent prior to running these cookies on your website. The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice. The Argus Round Voyage (ARV) LNG freight rates are the robust and representative assessments that the industry needs for demurrage contracts, long-term charter agreements, and to settle financial instruments used for hedging, trading and inter-regional arbitrage. After graduating Cornell University, he fled upstate New York's harsh winters for the island of St. Thomas, where he rose to editor-in-chief of the Virgin Islands Business Journal. Daily Newspaper published by GPPC Doha, Qatar. If a shipper can make $200 million in profits moving a single shipload of LNG, it will pay six figures a day in freight. To boost transparency in this crucial market, we are making five of our key freight rates available to all in a weekly summary. By ICIS. 1.800.427.5747 The long-term charter market, which covers the overwhelming majority of LNG vessel employment, has been much less volatile than the spot market. LNG carriers are shooting for the stars. googletag.cmd.push(function() { There are mounting concerns that the limited availability of LNG vessels could cause cargo disruptions. All quotes delayed a minimum of 15 minutes. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[468, 60], [728, 90], [300, 100], [320, 50]], 'div-gpt-ad-1665767472470-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); We also use third-party cookies that help us analyze and understand how you use this website. 09/02/2022 The spot charter rates for shipping U.S. liquefied natural gas to Europe have just turned negative, suggesting that there are now too many LNG vessels in the Atlantic region but fewer requirements, according to LNG freight price assessor Spark Commodities. 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This time around, the profits from buying and selling the cargo itself is more attractive. Europes insatiable thirst for LNG is the key driving force behind the rapidly tightening shipping fundamentals. Release Date: 4/28/2023: Next Release Date: 5/31/2023: Referring Pages: Natural Gas Industrial Price ; California Natural Gas Prices Copyright 2023, All Rights Reserved, FreightWaves, Inc, LNG shipping rates shooting for the stars at $500,000 per day, Loaded & Rolling (Enterprise Fleet News/Analysis), can make $200 million in profits moving a single shipload of LNG, Rates have gone into the $300,000s per day, It sparked an outcry among containerized cargo shippers. In the aftermath of Hurricane Marilyn, he moved to New York City, where he served as senior editor of Cruise Industry News. A large number of laden LNG carriers are now reportedly waiting offshore of southern Europe as a result.. This category only includes cookies that ensures basic functionalities and security features of the website. He put one-year time-charter rates for MEGI LNG vessels at around $170,000 per day, three-year rates at around $140,000 and five-year rates at $110,000. According to brokers, owners can now achieve three-way economics, which means they are compensated not just for a regular round voyage but also for positioning voyages. googletag.enableServices(); Both prices are up substantially compared to the average for the year, with year-date average for Asia of $49,000 per day. Then the invasion in February prompted an all-out scramble for LNG to replace Russian pipeline supplies. Dont miss the hottest freight event of the summer! read more. Spot charter rates for TFDE carriers reached an unprecedented USD 350,000/day in the second week of January 2021 due to a shortage of LNG carriers. info@naturalgasintel.com Gas Procurement Prices . Merchant of Record: A Media Solutions trading as Oilprice.com. What is your view? gptAdSlots.push(gptSlot); The plant is out of operation through at least month's end. Price of LNG goes stratospheric. Will LNG shipping rates follow? googletag.pubads().enableSingleRequest(); However, the delays at Panama Canal, which are likely to extend until March 2021, should support charter rates and prevent a major correction. Washington DC | New York | Houston | Pittsburgh | Mexico City Calgary | Chile. Report shows costs 5 times as much using LH2 ships compared to LNG. LNG charter rates | Global LNG Hub Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. googletag.pubads().enableSingleRequest(); Argus Media may use the details submitted to send you information about related Argus products and services which may be of interest to your business. This website uses cookies to improve your experience while you navigate through the website. Will LNG shipping rates follow? LNG shipping rates forecast to be lower in 2022 than 2021, Poten says Weekly trend of natural gas and LNG prices April 24, Weekly trend of natural gas and LNG prices April 17, NYMEX Futures Rally on Colder Weather Forecasts and Increased LNG Demand, Weekly trend of natural gas and LNG prices April 10, Weekly trend of natural gas and LNG prices April 03. window.googletag = window.googletag || {cmd: []}; Asian Spot LNG Price Starts to Firm as Winter Nears "There has been a substantial increase in long-term charters," said Feer, taking capacity off the spot market. PDF Genealogist General's Correspondence - Green 24 Aug 2022 2023 North American Pipeline, LNG & Market Hubs Map chevron_right; 2022 Mexico Pipeline Map chevron_right; "Winter is clearly still expected to be very strong and the . Profits on a single cargo can be in the nine figures. Whilst in the current market there is a glut of LNG carriers available in the spot market in the short term (with short-term LNG charter rates as low as $31,500 per day for 155,000-165,000 cu m vessels), as LNG projects advance to start up, the decrease in the price of LNG could increase LNG demand, with flow-on effects benefiting the LNG 8. According to Clarksons Platou Securities, spot rates for tri-fuel, diesel-electric (TFDE) propulsion LNG carriers are now averaging $112,500 per day, up 105% month-on-month. window.googletag = window.googletag || {cmd: []}; Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. ADNOC Aims To Grow Energy Market Share In Europe. But the current market situation is unprecedented. googletag.defineSlot('/21776187881/fw-responsive-main_content-slot2', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767737710-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); googletag.pubads().enableSingleRequest(); Qatar delivered 22 more cargoes in the first quarter of this year compared to the same period last year, the Gas Exporting Countries Forum (GECF) said in its April report. Western Sanctions Against Russia Spark Mayhem In Shipping As New Threat Emerges. Your email address will not be published. Extraordinarily high day rates have been seen in multiple bulk commodity shipping markets through the years. Notice: By accessing this site you agree that you will not copy or reproduce any part of its contents (including, but not limited to, single prices, graphs or news content) in any form or for any purpose whatsoever without the prior written consent of the publisher. Parallel in container-ship leasing World LNG Report 2022 | IGU International Monetary Fund Managing Director Kristalina Georgieva said on Monday she expects more weaknesses to be exposed in the banking sector, only hours after First Republic Bank was rescued by JPMorgan Chase . Then the invasion in February prompted an all-out scramble for LNG to replace Russian pipeline supplies. googletag.defineSlot('/21776187881/FW_Super_Leaderboard', [[300, 50], [970, 90], [300, 100], [728, 90]], 'div-gpt-ad-1668097889433-0').defineSizeMapping(gptSizeMaps.banner2).addService(googletag.pubads()); A loss of supply anywhere implies a loss of demand, but we didn't see it," said Feer. To complement these, we have now launched three new round voyage rates: ARV1 (Australia-northeast Asia); ARV2 (USGC-northwest Europe) and ARV3 (USGC-northeast Asia). Argus has assessed laden day rates for LNG vessels since 2012, covering steam turbine, tri-fuel/dual-fuel diesel electric and two-stroke vessels. One-year time charter rates for Steam LNG carriers averaged $71,550 per day in the first quarter of 2023, 13% lower than the fourth quarter of 2022. Asian spot LNG prices remain at 22-month low on weak demand - TradingView googletag.pubads().enableSingleRequest(); These cookies will be stored in your browser only with your consent. Even without the three-way economics, voyage charter rates are soaring. In an increasingly dynamic LNG market, participants need a trusted benchmark to capture and manage freight price risk. Understand more about LNG freight rates and why Argus Round Voyage rates are the benchmark that the market needs. . Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. London shipbroker gives April overview of the current charter challenges in LNG market. California Natural Gas Industrial Price (Dollars per Thousand Cubic Feet) Pacific rates continued to soften, falling to . In a recent article for FreightWaves, he notes that "Spot rates for very large crude carriers (VLCCs) - tankers that carry 2 million barrels of oil - just breached the $100,000-per-day . We may send you informational emails, but you can unsubscribe at any time. Soaring demand for LNG and buyers shunning Russian cargoes and vessels over its invasion of Ukraine have led to more long-term charters, limiting the supply of vessels to the spot market, said shipbroker and LNG consultancy Poten & Partners. googletag.pubads().collapseEmptyDivs(); LONDON (Reuters) - Asian spot liquefied natural gas (LNG) prices declined this week, tracking European gas prices which fell due to stable Russian gas flows and LNG supply. Compared to a year ago, the procurement rate is about 25.8% lower (58.143 /therm) than what it was effective April 2022. LNG supply and demand in 2022 increased by 5.5% (20.6 mt), similar to the 18 mt (5.1%) increase in 2021. . Southern California Gas Co. and San Diego Gas & Electric have issued stark warnings to customers that their January natural gas bills could double, citing factors for . We manage your personal data in accordance with our privacy policy. SIGN UP to receive our weekly newsletter with new LNG market reports, presentations & analysis. Asian spot LNG prices remain at 22-month low on weak demand Clarksons Securities put average voyage rates for the most efficient LNG carriers those with two-stroke propulsion known as MEGI or XDF carriers at $313,000 per day as of Monday. googletag.enableServices(); In the aftermath of Hurricane Marilyn, he moved to New York City, where he served as senior editor of Cruise Industry News. Olivia Watkins, head cargo analyst at VesselsValue, has seen a sharp decline of LNG time charter rates from around the $80,000 a day mark to around a severely loss-making $16,000 a day today. RELATED POSTS This is around three times the charter rates we have seen a year ago at the beginning of the heating season. The broker also reported that a modern . What do crazy $500,000-per-day rates say about shipping demand? Some individual deals were reported at over $300,000 per day. googletag.enableServices(); There are mounting concerns that the limited availability of LNG vessels could cause cargo disruptions. LNG tanker average spot charter rate 2021 | Statista Only one, the Flex Artemis, has exposure to the spot market via a variable hire rate. 74-89% of retail investor accounts lose money. Asked how high product tanker rates could theoretically go, Hafnia Tankers CEO Mikael Skov told attendees at the Capital Link New York Maritime Forum on Sept. 21, Once you have full utilization, theres nothing that prevents rates to go to any level, other than if freight becomes so much of the total that it kills it. Loaded & Rolling (Enterprise Fleet News/Analysis), Some individual deals were reported at over $300,000 per day, an all-out scramble for LNG to replace Russian pipeline supplies. Spot rates for transporting 160,000 cubic meters of LNG in the Atlantic Basin is $100,000 per day, and $85,000 per day for Asia, or the East-of-Suez, cargoes, said Poten's head of business. Flex LNGs business has followed the same multiyear-charter-centric script as the market as a whole. googletag.pubads().collapseEmptyDivs(); The requirement for inter-basin spot trade remained low, driven by mild weather conditions and high gas storage inventories. The Flexport LNG CEO said that rates could be super strong in the $200,000s during Q4 2022 when Asian buyers start booking more spot cargoes to handle peak seasonal demand. To receive our key LNG freight rates every week, sign up for the free prices and insights newsletter. When the freight rate reaches the point where it erases the profit margin on the commodity cargo, the shipper simply refuses to book the trip. After graduating Cornell University, he fled upstate New York's harsh winters for the island of St. Thomas, where he rose to editor-in-chief of the Virgin Islands Business Journal. The company reported net income of $44.3 million for Q2 2022 compared to $12.7 million in Q1 2021. Argus LNG freight rates are independent and robust, informed by a diverse and global set of information contributed by charterers, vessel owners, trading firms and brokers. Spot LNG Vessel Rates - Natural Gas Intelligence googletag.defineSlot('/21776187881/fw-responsive-main_content-slot5', [[728, 90], [468, 60], [320, 50], [300, 100]], 'div-gpt-ad-1665767778941-0').defineSizeMapping(gptSizeMaps.banner1).addService(googletag.pubads()); 2023 North American Pipeline, LNG & Market Hubs Map, 1Q23 N.A. var gptSlot = googletag.defineSlot('/21776187881/FW-Responsive-Main_Content-Slot1', [[728, 90], [468, 60], [300, 100], [320, 50]], 'div-gpt-ad-b1-i-fw-ad-1').defineSizeMapping(gptSizeMaps.banner1).setCollapseEmptyDiv(true).addService(googletag.pubads()); Sign up to receive our weekly newsletter with new LNG market reports, presentations & analysis. Online platform for sharing analysis and information on Global and regional LNG markets. document.write(write_html); Its not even winter yet and short-term LNG shipping rates are already in record territory, not just for LNG shipping but for any commercial shipping sector ever.