Spot charter rates for the global liquefied natural gas (LNG) carriers are soaring due to a shortage of vessels.
LNG shipping rates have been dramatically impacted by energy supply chain disruption due to the Russian invasion of Ukraine. 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:
Last month, we pointed out that Western Sanctions Against Russia Spark Mayhem In Shipping As New Threat Emerges because Europe's scramble for LNG carriers to source LNG from abroad was soaking up all the supply of vessels. There are mounting concerns that the limited availability of LNG vessels could cause cargo disruptions.
By Zerohedge.com
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Comments
I'm still amazed at the savvy Shell showed in subscribing to 100% of the output from the Elba Island facility (for 20 years). What foresight!