LNG tanker freight rates across the Atlantic hit a record

The cost of transporting a cargo of liquefied natural gas (LNG) by tanker across the Atlantic Ocean has risen to $161,750 (3.4 million Kč) per day due to the impact of the war in the Middle East. This is the highest level since November 2023 and a record for this time of year. Reuters reported this today, citing data from analytics firm Spark Commodities. A month ago, the rate was around 9,800 USD (205,000 Kč) per day.

The rate also applies to the chartering of tankers transporting LNG from the United States to Europe. It rose by 100,250 USD, or 163 percent, compared with Monday.

Of all the LNG purchased by the European Union, by far the largest share comes from the United States, according to data from EU institutions. Qatar, which accounts for almost 20 percent of global supplies of the commodity and also supplies LNG to the European Union, had to halt LNG exports on Monday because of the war in the Middle East. The European Union imports most of its gas from Norway.

In the past, the EU imported substantial volumes from Russia, but following its invasion of Ukraine in February 2022, the bloc began rejecting Russian energy commodities to make it harder for Moscow to finance its war effort. In mid-December last year, the European Parliament approved a ban on Russian gas imports into the EU by autumn 2027 at the latest.

The United States and Israel jointly attacked Iran last Saturday, primarily over its nuclear programme and unwillingness to negotiate over it. US President Donald Trump had repeatedly warned beforehand that Iran must not acquire a nuclear weapon.

The disruption to Qatari liquefied natural gas supplies since the start of the week has had a significant impact on gas prices in the European market. Shortly after noon today, the price of the commodity for delivery in April was up more than 28 percent, at above 57 euros (1,390 Kč) per megawatt-hour (MWh), on the Title Transfer Facility (TTF) virtual trading hub in the Netherlands. Shortly before that, it had risen above 65 euros/MWh and had roughly doubled since last Friday.