Asia's summer, Europe's winter create explosion in LNG market
The current LNG market scenario with high LNG demand in Asia and low storages in Europe indicates a ’summer with all attributes of winter’. The statement holds weight with spot LNG prices seven times higher than in 2020 while LNG shipping rates have doubled in June 2021 from last year.09 Jun 2021: Can 'green ammonia' be the future marine fuel?
The IMO’s emissions reduction targets for 2030 and 2050 have set the stage for all marine fuel candidates to bag the title of ‘carbon-efficient fuel’. LNG and LPG are the front-runners, thanks to their well-established markets and low sulphur content. However, with the evolution of decarbonisation goals, their position is challenged by new greener fuels such as hydrogen and green ammonia.26 Feb 2021: US cold blast pulls LPG shipping rates further down
LPG shipping is expected to face more headwinds in 2021 after a volatile first two months of the year. As we move deeper into 1Q21, China’s LPG demand has resumed after the Lunar Holidays in early February, aiding the plunging rates to find some floor. However, the cold wave in the US and further production cuts in the Middle East will squeeze LPG supply in 1H21; this will put downward pressure on LPG shipping rates.
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