European natural gas prices decline further amid gas glut and margins widen in favour of Asian LNG cargoes
European liquefied natural gas price benchmarks declined by over 13 percent this week as supplies were ample and margins widened to over $4 per million British thermal units between the Pacific and Atlantic basin values .
Norwegian LNG carrier owner Awilco swings back to profit and gives positive view of current shipping market
Awilco LNG, the small Norwegian-based shipping provider with two vessels, managed to swing back to profit in the third quarter as the ships returned from dry dock and said that overall LNG shipping market rates were still at healthy levels though vessels may soon be used for storing LNG with land-based facilities full in the European Union.
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.
London shipbroker recalls the day when most lucrative arbitrage ever seen in LNG market appeared
“On the very prompt, charterers were willing to pay almost any price to secure a vessel. Specifications no longer seemed important, but rather any vessel was considered against the most lucrative arbitrage we have ever seen in the LNG market,” so recalled one shipbroker headquartered near the Tower of London of last month’s events.
Charter rates steady
July 30 (LNGJ) - LNG carrier charter rate discussions have increased in the West of Suez market as the fixing window progresses further into September. Brokers said that while traders argue that the economics of the arbitrage window are unsupportive of freight at such high levels, the available shipping still seems to be in short supply when considering the balance of the fleet across the East and West of Suez markets.
Charter rates for LNG carriers in the spot market were steady over the past week. Rates were quoted at an average of between $35,000 per day and $37,000 per day West of Suez and at rates of between $32,000 per day and $34,000 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters for the most modern vessels were seen at rates of around $44,000 per day.
