Asian LNG Freight Likely to See Uptick Ahead of Winter: Platts

Asian LNG freight is likely to move up in the next few months due to winter demand and tying in some ships for term deliveries, Platts said.

• Some LNG carriers are now part of the shadow fleet involved in lifting cargoes from Russia’s Arctic LNG-2, while others will focus exclusively on non-sanctioned cargoes.
• Russian LNG cargoes are likely to be delivered to the Med, such as Turkey and Egypt.
• However, demand remains strong for moving conventional cargoes from Australia and the US.
• However, demand may not be as strong as last year as some winter demand is already covered, while EU stocks are already above 90%.
• Weaker Chinese demand may also cap freight rates, Platts said.
• In Asia, buyers are waiting for a fall in spot prices before starting to restock. This will likely be in mid-October.
• The change in seasonal demand as restocking begins could also cause a sudden rise in freight, Platts said.
• Charters have also struggled to find two-stroke LNG carriers due to a shortage in APAC.