A roundup of news and commentary from NGI’s LNG Insight

  • A record nine U.S. LNG cargoes were delivered to India last month, according to Kpler. That’s up from the previous record of seven U.S. arrivals last November. India has returned to the spot market as a sharp spike in Covid-19 cases has eased. Through the first six months of the year, India imported 194 cargoes, down slightly from 199 during the same time last year, Kpler data showed. 
  • Spot buyers are demonstrating a willingness to pay higher rates for LNG amid a global supply crunch. Asia buyers in particular are paying about 16% more for spot cargoes compared to May, according to an analysis by Bloomberg New Energy Finance. Delivered third quarter spot prices to the region are about $11.86/MMBtu
  • The tight global gas market continues to keep LNG vessel rates elevated. Shipbroker Braemar ACM said spot rates for a conventional 174,000 cubic meter vessel averaged about $77,000/day in June. Approaching July, however, Braemar said newer vessels were commanding about $90,000/day. 
  • “We believe that the shipping market will remain at the current levels through the summer with a strong potential for an uptick toward late 3Q2021,” Braemar analysts said Thursday, citing low natural gas storage inventories in Europe and strong demand in Asia that’s likely to drive demand for vessels.