U.S.-to-Asia LNG shipping rates rip higher on Asia buying boom

January 13, 2021 Stu Turley Commodities, Fossil, LNG
US-to-Asia LNG shipping rates rip higher on Asia buying boom - Energy News Beat

Energy News Beat Publishers Note: The LNG shipping and exports for the United States are imperative long term place on the energy table. 

  • The cost of shipping liquefied natural gas from the U.S. to Asia hit a record high today, and a scarcity of on-the-water LNG cargoes heading to Asia means buyers of prompt deliveries have been left with few options to meet heavy demand.
  • Freezing temperatures across Asia and Europe have pushed up LNG prices as buyers try to cope with shrinking inventories and the shortage of tankers.
  • Average daily tanker rates on the U.S. Gulf to Japan route rose to $253,270 today, compared with $174K/day at the end of last year, Baltic Exchange data shows.
  • But with Asian spot prices topping $30/MMBtu, extending a historic rally, three U.S. LNG facilities are seeing lower utilization, according to S&P Global Platts.
  • Kinder Morgan’s (NYSE:KMI) Elba Liquefaction in Georgia is working on scheduling repairs to a unit at the 10-train facility that has been offline since a fire eight months ago, Cheniere Energy’s (NYSEMKT:LNG) Corpus Christi Liquefaction facility in Texas is seeing lower utilization, and Freeport LNG in Texas also is operating at reduced levels.
  • ETFs: UNG, UGAZF, DGAZ, BOIL, FCG, KOLD, UNL, GAZ, GAZB
  • Taiwan’s CPC Corp. said this week it received the first shipment of LNG cargoes from Cheniere Energy under a 25-year deal.

Cheniere Energy

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Kinder Morgan

finviz dynamic chart for KMI

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About Stu Turley 3359 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.

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