Spot market charter rates for LNG carriers continued to rise amid increased demand driven by record-high volumes of LNG exports from the United States. On Friday, the charter cost for an LNG carrier on the US-Europe route jumped by 12%, reaching $130.75 thousand per day, the highest level since December 2023, as reported by Bloomberg, citing data from Spark Commodities. Price increases have been observed since the beginning of October as liquefied natural gas production volumes ramp up in North America, requiring more tankers, including for Asian destinations. According to traders familiar with the current market situation, the potential for further rate growth looks even more significant: starting from mid-December, the charter rate for transatlantic voyages is expected to exceed $150 thousand per day. According to vessel tracking data, the 30-day moving average cost of gas delivery from North America reached a peak on Thursday, increasing by almost 50% compared to the same period last year. This sharp rise in charter rates marks a trend reversal, as for most of the current year, the market experienced stagnation due to an oversupply of tankers. However, according to Spark Commodities data, the demand boom is fueled by LNG buyers’ desire to postpone scheduled shipments in the Atlantic basin. Simultaneously, the cost of chartering LNG carriers on Pacific routes has also reached annual highs. At the same time, European gas quotes fell below €30 per megawatt-hour for the first time in over a year, as a combination of factors unfavorable for prices pulled the market down. “NIK” notes that expectations for a peace agreement regarding Ukraine played a key role here, which is presumed to entail the cancellation (or easing—official details have not yet been disclosed) of anti-Russian sanctions. This, in turn, implies a probable resumption of increased Russian gas supplies to the EU. As of November 22, European gas storage facilities were approximately 79% full, while the five-year average fill rate for this period is around 89%.
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