LNG Weekly Report - Week 41

Freight rates in the LNG market softened further this week, marking a continued transition to a buyers’ market amid low liquidity with only 5-6 deals concluded across basins. Both East and AB-JKTC benchmarks remained stable while intra-basin rates in the Atlantic fell sharply. Modern two-stroke tonnage is now being discussed below USD 50,000 per day for peak winter months in prime USG deliveries. Furthermore, the structural tightness in the broader product market continued, influenced by the recovery of transit volumes through the Strait of Hormuz, which, despite rising, still remain below pre-conflict levels. Increased security risks were highlighted by an incident involving an LNG vessel. Qatar's full return to export capacity is now delayed to the end of Q2 2027, impacting winter supply. As competition in the Pacific intensified with several vessels available for prompt delivery, the arbitrage situation showed mixed signals, reflecting ongoing demand diversification for US LNG amid geopolitical disruptions.