Lowest Ship Rates Since 2005 Boost LNG Tankers: Energy Markets
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Liquefied natural gas traders are taking advantage of the lowest shipping rates in five years and rising prices in the U.K. to store fuel on tankers and profit from higher values in coming months.
The costs to buy an LNG cargo in Trinidad & Tobago, store it on a ship for one month and transport it to Britain amount to $4.60 per million British thermal units, according to Navin Thakur, an analyst at London-based Drewry Shipping Consultant Ltd. Based on July delivery prices of $6.41 on London’s ICE Futures Europe exchange, profits from the trade amount to 39 percent, excluding import terminal and regasification expenses.