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A Few Traders Are Making Money Off LNG Tankers Going Nowhere

  • Several tankers are taking unusually long to deliver cargoes
  • Traders may be trying to take advantage of higher prices later
A liquefied natural gas (LNG) tanker

Photographer: Tomohiro Ohsumi/Bloomberg

Liquefied natural gas tankers are taking longer-than-usual journeys to deliver cargoes and spending more time idling at sea in a sign some traders are starting to use vessels for storage.

There may be other reasons for keeping the cargoes on the water, including logistical or weather issues, such as a monsoon in India. But with spot prices near their lowest since April 2016, sellers may be betting that they will rise as the northern hemisphere heating season approaches.