Wednesday: April 2nd 2025
The most common and abundantly available (as it currently stands) LNG shipping vessels globally are two-stroke engines with the capability to carry 174,000 cubic meters (3,180,000 mcf). This is compared with the largest Q-Max LNG Carrier "Al Dafna" a Qatari vessel which can carry a total of 271,000 cubic meters (5,935,000 mcf) of LNG per load.
Trump's Department of Energy has moved to strike a Biden policy from April 2023, that required extra criteria for LNG exporters to comply with as a preliminary step before a new project would be given an approval date. This rescission of the old 2023 policy marks the 6th LNG-related issuance from the DOE since Trump too office. Things seem to be in motion here.
"Liberation Day" is upon us. Whatever that means. Trump is expected to make an address this afternoon to the nation, and the world who looks on with breath held tight as we wait to learn what type of trade tariffs he will be shelling out next. Apparently the tariffs will go into effect immediately once announced and will impact all trading partners the U.S. holds.
DJIA: 41,736.08
S&P: 5,580.76
Nasdaq: 17,207.01
Oil (WTI): 71.20
ICE NGX (T-1): 2.54
LNG shipping rates plunge on increasing vessel availability
US throws off the regulatory shackles of red tape snags to unlock LNG export bonanza
Trump to announce new tariffs today on what he calls "Liberation Day" amid fears of higher prices
Tuesday: April 1st 2025
Qatar is planning an expansion of its LNG export capacity; an increase that could see an 85% increase of its 77mtpa (2024) to 142 mtpa by 2030. By some estimates, Qatar could produce enough to account for 25% of the worlds LNG supply by the end of the decade. Analysts project Qatar can produce its LNG for $0.3/mmbtu, vs $3-5/mmbtu globally, which are a function of:
1) associated liquids production in the country pays for most of the LNG construction costs, and
2) access to cheap labor from southeast Asia keeps costs low and on schedule.
Asian spot markets of LNG are at their lowest levels in 6 months due to higher reserve levels from a mild winter climate. Though these prices are low, they are expected to have support from the bottom from stronger European demand. The average LNG price in May at North-East Asian hubs was $13.00/mmbtu, down from $13.60/mmbtu last month.
In a recent article from Reuters, Shell is mentioned to predict a 60% increase (from 400mmtpa) in global LNG demand by 2040 (630-718 mmtpa), driven largely from:
1) economic growth in Asia
2) AI impact, and
3) efforts to cut emissions in heavy industries and transportation
In India, the IEA predicts natural gas consumption to jump 60% between 2023 and 2030, doubling the country's demand for imports of LNG from exporting nations.
The U.S. has the potential to quadruple its LNG export supply by 2030, and become the leading LNG exporter globally with 180 mmtpa, which will account for a third of the projected global supply at that time according to Shell. The combined Qatari and U.S. supply of LNG if all projects are completed successfully, are projected to account for 60% of the global LNG supply by 2035.
DJIA: 41,879.75
S&P: 5,597.53
Nasdaq: 17,221.55
Oil (WTI): 71.39
ICE NGX (T-1): 2.58
Qatar's bigger LNG expansion to squeeze US, other rivals
Asian spot LNG prices at nearly 6-month low on muted Chinese demand
Shell expects 60% rise in global LNG demand by 2040 as Asia leads growth