Golar Sees LNG Spot Rates Increasing, with Improving Conditions by Year’s End

Liquefied natural gas (LNG) shipping rates are likely to drop through September because of the economic devastation from the Covid-19 pandemic, but the longer term outlook has improved, Golar LNG Ltd. management said Thursday.

“There is now an emerging optimism among market players who expect a stronger rate environment heading into the autumn and seasonally stronger winter,” management said. “Spot rate sentiment has changed from ‘flat’ to ‘increasing,’ indicating that the market may have passed its low point.”

The LNG fleet in the third quarter is expected to earn an average daily time charter equivalent (TCE) rate of $35,000, with a 78% utilization rate, based on current fixtures. The rate would be 22% less than the average daily TCE of $45,100 earned in...