GREEN4SEA Conference & Awards

7 Mar 2018
Learn More
GREEN4SEA Conference & Awards

7 Mar 2018
Learn More

Baltic Exchange eyes to develop LNG index

baltic exchange
Image hereabove is being used for illustration purposes only

Following an approach by leading Baltic Exchange LNG shipbroking companies, the Baltic Exchange has formed the Baltic LNG Panellists Group, as it looks to develop a new LNG Index comprising several routes for the evolving LNG shipping market.

Affinity, Braemar ACM, Clarksons and SSY are the LNG Panellists Group’s first members and they are currently assessing a range of LNG routes before reporting moves to a trial phase.

As explained, in recent years, the substantial global increase in natural gas production and rising imports by India, China, Pakistan and Egypt has led to a fundamental change in LNG shipping market dynamics. In addition, more contracts are being signed for shorter durations and smaller quantities, without fixed destinations. Trade patterns have diversified as new import and export terminals have been built and the LNG fleet continues to expand.

Further, until recently, the LNG shipping market was characterised by low levels of spot market activity, with the majority of business conducted on a long term contractual basis.

“The growth in LNG transported by sea has led to the formation of a spot market. However, any spot market needs to be underpinned by standard contractual terms – as already happens in the tanker and dry bulk freight markets. The Baltic Exchange is looking to support the LNG freight market as it matures and we hope to deliver greater transparency through an index,” said Baltic Exchange Chief Executive Mark Jackson, commenting on the formation of the new group.

Various routes are currently being evaluated by the Baltic LNG Panellists Group. Once finalised, their proposal will be presented to the Baltic Index Council for approval and trial phase.

Related Posts


Share on Facebook0Tweet about this on TwitterShare on Google+0Share on LinkedIn2

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Explore Our Group Sites:

x

Check Also

Gazprom to construct TurkStream’s second string

Gazprom received a permit to lay the second string in the exclusive economic zone and territorial waters of Turkey and has all of the required permits from the Turkish Government. Both strings of the gas pipeline will be put into operation before the end of 2019.

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this. By continuing to use the site, you agree to the use of cookies.more information

Close