• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 2 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 mins Is Europe heading for winter of discontent with extensive gas shortages?
  • 8 hours Sand Powered Batteries for Heating Industries and Homes
  • 4 days Once seen as fleeting, a new solar tech proves its lasting power
  • 2 days Bloomberg - "Hedge Funds Hit by ‘Onerous’ ESG Rule Turn to Lawyers for Help"
Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

The Rush Is On For LNG Tankers

  • EU rush to reduce independence on Russian gas is a major boon for LNG tanker markets.
  • Charter rates for LNG carriers have soared to the highest in 10 years.
  • Clarksons Platou Securities data shows that LNG tanker rates are now around $120,000 per day.

Gas traders are scrambling to find enough LNG carriers ahead of the start of the next heating season amid the European Union's own rush to reduce its dependence on Russian energy.

Among those seeking LNG carrier capacity are TotalEnergies, Shell, and China's Unipec, according to a Financial Times report that cited LNG shipowners and brokers.

As a result of the rush, charter rates for LNG carriers have soared to the highest in 10 years, the FT noted in its report, to $120,000 per day, according to data from Clarksons Platou Securities.

Some are buying LNG carriers: Abu Dhabi's Adnoc recently purchased three newbuild LNG carriers in anticipation of greater global LNG exports. The vessels have a capacity of 175,000 cubic meters each. This is significantly higher than the average capacity of the current Adnoc fleet, at 137,000 cubic meters.

Meanwhile, the demand patterns in LNG are becoming problematic because of the European Union's mad dash for alternative gas imports: according to Rystad Energy, if the EU pursues its plans to reduce Russian gas imports by two-thirds by the end of the year, the global supply of liquefied natural gas will fall short of demand by as much as 26 million metric tons.

"By shunning Russian gas, Europe has destabilized the entire global LNG market that began the year with a precarious balance after a tumultuous 2021," Rystad Energy said.

It is also largely because of the EU's supply reorientation that gas buyers are in a rave to secure LNG carriers.

"The market has exploded. It's very hard to find any ships with length [of availability] in the market. It's going through the roof," Oystein Kalleklev, head of Flex LNG and Avance Gas, told the FT.

There seems to be no way that the LNG carrier crunch will let up anytime soon, either. New LNG carriers take years to build, and no one expected Europe to suddenly become the biggest buyer of U.S. liquefied gas in a matter of months.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News