Uncertain LNG outlook

According to Drewry’s latest LNG Insight report, June saw more enquiries than May, and more were converted into fixtures.

But, attitudes on market outlook became less positive, especially in Africa, where the Nigerian Maritime Administration blocked ship movements from the Bonny Channel as its relationship with Nigeria LNG became “tense”. This adds to Africa’s recent issues which saw North African suppliers face feedstock problems.

Elsewhere, Pluto LNG in Western Australia has been closed due to technical problems, delaying around 200,000 tonnes of cargo.

On a more positive note, the Angola LNG project has been commissioned, and more vessels have been taken on by US based Cheniere Energy on mid-term charters, while Inpext announced new builds for Ichthys.

But, Drewry says rising fleet supply and unplanned constructions could lead to weaker trade and lower charter rates in the short term.

The freight index is based on deals and market reports for a conventional LNG carrier of 155,000 cbm and less than five years of age.