Jefferies believes the LNG market could be heading for better times after a period of oversupply.
BP’s approval to upgrade its Indonesian production capacity by 50% is the latest positive demand development for the sector, according to analyst Doug Mavrinac.
“With the recent start-ups of Gladstone, Australia Pacific, Sabine Pass and Gorgon, we believe the LNG shipping market is finally likely to begin the process of re-balancing, with LNG shipping demand improving incrementally as each of these projects ramps up in the coming weeks/quarters,” he said in a report.
Data from Clarksons Platou Securities last week placed modern LNG carrier rates at $29,000 per day on average this year. This compares with $42,000 daily during 2015.
