Traders are temporarily storing liquefied natural gas (LNG) on tankers as they bet for a rise in winter demand to boost prices. This, combined with U.S. sanctions on COSCO-linked ships, have doubled spot LNG freight rates in the past month and is causing a shortage in availability of vessels, several industry sources said.
There are currently some 10 to 24 laden LNG tankers “floating” in global waters, according to data intelligence firms Kpler and ClipperData and Refinitiv ship tracking data. Between 8 and 11 of them have been floating with cargo for up to 20-30 days, ClipperData and Refinitiv data showed.
“For the most part, this elevated volume of LNG waiting across the globe is a reflection of widespread oversupply,” said Kaleem Asghar, director of LNG Analytics at ClipperData.
“The longer floating times in the North Sea, however, suggest that some suppliers may be speculating that prices will rise in the run-up to winter, which may prove to be a risky position to take.” Read More
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