LNG carrier rates for the Atlantic route between the U.S. and Europe have surged close to a two-year high on strong demand for American liquefied gas as Europe fills up its storage ahead of winter.
The spot rate hit $98,250 per day on Monday, Bloomberg reports, which was a 19% increase and the highest in over a year, according to price trackers. The European Union’s gas storage is now 81.94% full, which is less than the 90% target the bloc had for November, before the winter colds begin. Most of the gas that the EU uses in winter comes from the United States.
With surging freight rates, demand from Asia will weaken, analysts commented to Bloomberg, although some noted the rate increase is close to peaking and much higher prices were unlikely.
Asia, which used to be the global driver of LNG demand until recently, is now in retreat, with Europe replacing it, especially as a destination for U.S. liquefied gas. LNG imports to Asia last month stood at 22.84 million tons, according to Kpler data.
This was a slight increase from September but palpably lower than October 2024, when imports hit 24.39 million tons. Over the first ten months of the year, Asia’s imports of liquefied gas were down by over 14 million tons on the year to 225.8 million tons. China was one driver of this trend, booking year-on-year LNG import declines every month since November 2024.
LNG imports into Europe, meanwhile, moved in the opposite direction. Over the first ten months of the year, Europe imported 101.38 million tons of the superchilled fuel. This was 16.75 million tons more than what Europe imported a year earlier—even as the EU leadership boasted about permanently reducing the bloc’s consumption of natural gas, not just from Russia but in general.
By Irina Slav for Oilprice.com
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