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High fluctuations in LNG vessel rates: GAIL won't know how to cope
Jun 01:
LNG vessels rates and how they behave are important for large importers like India.
8The rates have shown extreme volatility, when arbitrage opportunities opened up in Asia during the winter, pushing vessel rates up. But this window closed in February.
8Vessels rate likely to see higher rates in the winter than in summer
8Despite a recent spike in vessel orders for delivery in 2020-21, the market remains structurally short by approximately 25 vessels over the next 2-3 years.
8This adds another level of volatility to the LNG market.
8For a company like GAIL, which still hasn't put a vessel fleet together to handle its massive offtake commitment from the US, a combination of high demand and price volatility of LNG, heavily fluctuating vessel rates, quickly appearing and disappearing arbitrage windows and the looming shortage of vessels add many layers to uncertainty surrounding to its LNG trading business.
8Please also see our prices section for daily LNG vessel rates
Click on Reports for more
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8The rates have shown extreme volatility, when arbitrage opportunities opened up in Asia during the winter, pushing vessel rates up. But this window closed in February.
8Vessels rate likely to see higher rates in the winter than in summer
8Despite a recent spike in vessel orders for delivery in 2020-21, the market remains structurally short by approximately 25 vessels over the next 2-3 years.
8This adds another level of volatility to the LNG market.
8For a company like GAIL, which still hasn't put a vessel fleet together to handle its massive offtake commitment from the US, a combination of high demand and price volatility of LNG, heavily fluctuating vessel rates, quickly appearing and disappearing arbitrage windows and the looming shortage of vessels add many layers to uncertainty surrounding to its LNG trading business.
8Please also see our prices section for daily LNG vessel rates
Click on Reports for more
