International analysts foresee a continued rise in daily rates for LNG carriers, at least until the end of the year, with expectations of a rise in both demand and supply of LNG.
According to international shipping firm GasLog Partners, on the occasion of the release of its Q2 2021 results, LNG demand increased by roughly 11 percent in the specific quarter, or 95 million tons in absolute terms – compared to 86 million tons in the corresponding quarter of 2020. The figures were supplied by Poten.
An increase in demand was particularly intense in Asia and South America, with China increasing demand by 25 percent on an annual basis (an additional four million tons), followed by Japan, 7 percent or one million tons, and Korea, 9 percent or one million tons. The three gigantic Asia economies are the world’s biggest LNG markets.
In South America, the combined markets of Argentina, Brazil and Chile posted an increase in LNG demand by 116 percent yoy, mainly due to lower hydroelectric production in the vast region.
Conversely, the recession and pandemic-battered Middle East saw demand drop by two million tons, or 35 percent.