FAST FIVE: LNG Ship Charter Rates Explode As Europe Rejiggers Energy Supply Chain
The LNG shipping sector is booming even more as rates near record highs following the bombing of the Nord Stream pipeline system last week. Bloomberg said Europe is “to replace Russian pipeline flows with liquefied natural gas from suppliers including in the US and Nigeria.” Rejiggering supply chains for the energy-stricken continent means increasing demand for LNG carriers to source gas further away. Shell booked an LNG carrier for $400k per day, likely the most expensive ever for the Atlantic basin.
The Indian firm GAIL also secured an LNG shipment for about $360k per day.
Bloomberg explains more: Shell Plc booked the Yiannis to load a US cargo at the end of October for delivery to Europe at a rate equivalent to $400,000 per day on a round-trip basis, said traders.
also booked the LNG Schneeweisschen to load a cargo in early November from the US at about $360,000 per day, said traders.
There are mounting concerns that the limited availability of LNG vessels could cause cargo disruptions. Tyler Durden Tue, 10/04/2022 – 06:55.