Price of LNG goes stratospheric. Will LNG shipping rates follow?

Liquefied natural gas shipping has a freight market like any other, albeit with a lot more zeros on the end of its numbers. Day rates in LNG shipping are in the six figures. Profits on a single cargo can be in the nine figures.

“Welcome to the stratosphere of LNG prices,” commented Stifel analyst Ben Nolan on today’s market conditions.

The European hub price of natural gas, TTF, hit $84 per million British thermal units (MMBtu) on Monday. “This is close to $500 per barrel of oil equivalent,” noted Oystein Kalleklev, CEO of shipowner Flex LNG (NYSE: FLNG), during a conference call on Wednesday.

View entirety: Freightwaves