LNG Weekly Report - Week 23

In Week 23, the LNG market observed a significant tightening of prompt tonnage globally, particularly in the Pacific, where eight spot fixtures were recorded, while the Atlantic saw four. Despite this uptick in activity, spot rates remained stagnant, with long-haul rates reported at USD 110,000 (down 8 per cent) and short-haul rates at USD 95,000 (down 10 per cent). Demand for late July shipments from the US is increasing, hinting at potential upward pressure on rates in the near future, although owners are presently hesitant to fix forward. Tensions surrounding low gas stockpiles in Asia and Europe, coupled with ongoing geopolitical uncertainties, suggest heightened volatility may persist throughout the coming winter months, with demand for longer-term fixtures boosting market sentiment in Q3, despite charterer hesitations towards year-end rates.