The amount of LNG floating on vessels at sea for extended periods is ticking above average levels, particularly in Asia, as buyers continue to shun cheap spot cargoes amid weak demand.

The volume of liquefied natural gas in floating storage, generally considered on board a vessel for 20 days or more, has been creeping upward since mid-April as the spring shoulder season settled in. Floating storage reached a seasonal high of 2.05 million tons (Mt) on May 7, higher than during the 2020 Covid-19 pandemic, according to data from Kpler.

Floating storage remained around 1.26 Mt by Thursday, almost entirely concentrated in Asia. Kpler LNG Analyst Laura Page told NGI the volumes currently floating in storage could be a sign usual shoulder season sluggishness is being exacerbated by a...