HIgh LNG Freight Rates Possibly Short-term

Drewry Maritime Research
Sunday, December 23, 2012

Market analysis suggests winter demand could cause LNG freight rates to rise but downward pressure might later be forthcoming.

Rising LNG prices, almost stagnant liquefaction capacity amid expanding regasification capacity and development of LNG export framework in the USA could prove to be the game changers for the LNG industry, according to shipping analyst Drewry.



Looking at the LNG freight market a new report Drewry Maritime Research - LNG Shipping Market Review and Forecast 2012 says that the short-term rate assessments for conventional LNG carriers have been incredibly positive. Since the last market low in 2Q10 the rates have almost quadrupled with only a slight softening in 2Q12. It is expected that winter demand could provide the momentum needed for the rates to continue their climb.

However, with only 4.5 million tpaof liquefaction capacity expected to come on line in 2013, and 25 vessels scheduled to be added to the current fleet, Drewry cautions that tight tonnage supply might not last long. Rates might face downward pressure soon if supply concerns and rising LNG prices are not addressed.



However, in the long run and based on liquefaction capacity addition plans, a lot more vessels are needed than are provided by the current orderbook, according to Drewry. New ordering will continue, the analyst says, provided finances are available.


Source: Drewry Maritime Research

 

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

Mayor Garcetti on Ratification of Port Labor Contract

International Longshore and Warehouse Union members have ratified a five-year contract governing pay and work rules at 29 West Coast ports, including those of Los Angeles and Long Beach.

Fincantieri Invests In Camper & Nicholsons

Fincantieri has signed an agreement for the acquisition of a minority stake via capital injection in Camper & Nicholsons International (Camper & Nicholsons), the

Egypt's $3 Bln LNG tender in June

Egypt is reportedly to issue a tender in early June to buy up to $3 billion of liquefied natural gas over 2016 and 2017, Reuters reports.   The country recently

Finance

Fincantieri Invests In Camper & Nicholsons

Fincantieri has signed an agreement for the acquisition of a minority stake via capital injection in Camper & Nicholsons International (Camper & Nicholsons), the

Tsakos Energy Navigation Reports 156% Increase in Q1 Profits

Greece-based Tsakos Energy Navigation Ltd (TEN) has reported first-quarter profit of $37.3 million from $14.6 million in Q1 2014 - a 156% Increase. On a per-share basis it has profit of 42 cents.

Egypt's $3 Bln LNG tender in June

Egypt is reportedly to issue a tender in early June to buy up to $3 billion of liquefied natural gas over 2016 and 2017, Reuters reports.   The country recently

LNG

Egypt's $3 Bln LNG tender in June

Egypt is reportedly to issue a tender in early June to buy up to $3 billion of liquefied natural gas over 2016 and 2017, Reuters reports.   The country recently

Gail to Sell LNG Supplies from US to Shell?

GAIL (India) Ltd has signed a preliminary deal with Royal Dutch Shell for the potential sale of liquefied natural gas (LNG) supply sourced from its portfolio, made up of US production,

Petronet LNG appoints new chairman

India’s largest importer of the chilled gas Petronet LNG has appointed Kapil Dev Tripathi, Secretary, Ministry of Petroleum and Natural gas as Chairman and Director on the Board of the company.

Offshore Energy

Mobil Says Oil Discovery off Guyana is 'Significant'

Unlike almost all its neighbors, Guyana isn’t an oil producer yet. But the energy giant Exxon Mobil recently announced it had discovered “significant” oil off the coast.

US Oil Platform on Fire in Gulf Of Mexico

An oil platform caught fire and was evacuated in the U.S. Gulf of Mexico offshore Louisiana in the early hours of Friday, though no injuries were reported, the U.

Protea to Launch Heavy-Lift Cranes at Nor-Shipping

Protea, a global manufacturer of offshore handling equipment, will launch two types of heavy lift cranes at Nor-Shipping 2015 in Oslo, June 2-5. Tomasz Paszkiewicz,

 
 
Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1443 sec (7 req/sec)