European LNG prices move higher along with US cargo futures while Asian spot values decline on the week
European liquefied natural gas and wholesale pipeline gas prices moved higher amid a German draw on storage while US Gulf Coast LNG futures rose on a positive demand outlook while Asian spot cargo values declined on the week.
Asian LNG prices and European gas rise for second week as winter season winds down amid uncertainties
Asian liquefied natural gas prices and European cargo values increased for a second week from previous three-year lows as cooler weather and energy policy uncertainties offset high storage as the Northern Hemisphere winter gas season winds down after some of the warmest months on record hit demand.
European spot natural gas and futures prices plunge from France to Italy as LNG cargoes flow and especially to UK
European spot natural gas prices followed futures prices lower to marks last seen in June 2021 just before energy security concerns entered the market and at least seven liquefied natural gas cargoes were heading for the UK even as the differentials widened in favour of Asian spot cargo values.
European natural gas prices retreat to 28-month lows while Asian LNG cargo margins widen on supply conditions
European liquefied natural gas price benchmarks dropped this week to their lowest since late July 2021 when energy security contagion first entered the market as North Asian spot cargo prices also lost ground but at a slower pace.
LNG prices ease again with full storage, mild weather and logistics favouring European supply over Asia
Global liquefied natural gas prices declined for a third week as European Union supply was helped by peak storage levels and mild weather, while the start of winter in parts of China coincided with further restrictions on Panama Canal transits and along with narrow price margins will limit arbitrage opportunities.
Global LNG prices increase with focus shifting to winter supplies as liftings fall and spot shipping rates rise
European and Asian liquefied natural gas prices increased this week as market focus shifted from high natural gas storage levels to the likely rapid draw in the weeks ahead on market supplies and with spot LNG charter rates also rising for trading in the Atlantic and Pacific basins.
Asian LNG prices rise with cargo deliveries while values ease in Europe as gas storage hits 80 percent fill rate
Asian liquefied natural gas prices increased as cargo deliveries to China, Japan and South Korea neared 60 shipments per week while European Union wholesale gas prices stalled as storage levels reached more than 80 percent in nations like Germany, Italy and Spain.
GasLog LNG Partners increases profits ahead of merger and sees seasonal downturn now hitting charter market
GasLog LNG Partners, with an operational fleet of 12 vessels, reported increased revenues and profits as it proceeded with the merger process with affiliate GasLog Ltd.
The company’s quarterly revenues increased 16 percent to $99.07 million from $85.45m in the same three months of 2022.
Net profits rose 4 percent to $36.37M from $34.98M in the prior-year first quarter.
The Partnership’s market overview and outlook said headline spot rates in the first quarter of 2023 for the most modern vessels fell to an average of about $71,560 per day, a fall of 78 percent compared with the average of the fourth quarter of 2022.
Fall in rates
“This fall in rates is mainly due to the seasonal downturn, high inventories, continuing strong flows from the US to Europe and bearish sentiments. This has been compounded by increased availability of relets,” said the Partnership, citing various sources.
One-year time charter rates for tri-fuel diesel-electric propulsion (TFDE) carriers averaged $155,000 per day in the first quarter of 2023, about 18 percent lower than rates in the fourth quarter of 2022, reflecting the seasonal downturn.
Earnings highlights during the first quarter included the Partnership’s sale and bareboat lease-back of the 155,000 cubic metres capacity TFDE vessel “GasLog Sydney”.
The deal was with a wholly-owned subsidiary of China Development Bank Leasing and with no repurchase option or obligation.
The company said a time-charter agreement for the TFDE carrier “GasLog Geneva with a wholly-owned subsidiary of Shell was extended by five years after the exercise of their extension option.
The merger transaction with GasLog Ltd is expected to close by the end of the third quarter of 2023, subject to approval of the holders of a majority of the common units of the Partnership and the satisfaction of certain closing conditions.
GasLog Ltd owns 30.2 percent of the common units of the Partnership and has entered into a support agreement with the Partnership.
“The entering into an Agreement and Plan of Merger with GasLog is a transformative transaction for the Partnership that will enable its unitholders to take advantage of a significant premium to the unit trading price,” said Paolo Enoizi, Chief Executive.
The Partnership’s owned and bareboat fleet comprises the following vessels: “GasLog Sydney”, “GasLog Geneva”, “Methane Rita Andrea”, “Methane Alison Victoria”, “GasLog Gibraltar”, “Solaris”, “GasLog Santiago”, “GasLog Seattle”, “Methane Jane Elizabeth”, “Gaslog Greece”, “GasLog Glasgow” and “Methane Becki Anne”.
London shipbroker gives April overview of the many current charter challenges in LNG shipping market
There is an enormous divide in charter rates in discussions for liquefied natural gas carriers up until September 2023 compared with October to December.
European LNG prices remain stronger than Asia’s even as EU gas storage is high and the weather mild
European Union liquefied natural gas prices were still solid this week and stronger than those for Asia even as the weather turned mild and Germany’s gas storage was over 64 percent filled despite only very small volumes of LNG reaching the German floating import facilities as they continued commissioning and set-up activities.
