SINGAPORE, Oct 28 (Reuters) – Liquefied natural gas shipping rates have hit multi-year lows and may extend losses going into 2025, analysts and shipping sources said, with new tankers being added at a faster rate than LNG production is rising and spot demand still tepid.
New LNG tankers, built in anticipation of rising U.S. exports after a plunge in Russian gas supplies to Europe in 2022, are coming online earlier than liquefaction projects, which have been delayed amid inflation from strong wage growth and a shortage of skilled labor and equipment.
With more ships expected to come, freight rates for LNG tankers may remain depressed until late 2025 when new production starts up, said Samuel Good, head of LNG pricing at commodity pricing agency Argus.
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