Global LNG freight falls sharply as Bintulu LNG's up to three trains temporarily down

Global LNG freight tumbled sharply April 16 as at least three of the nine trains at Bintulu LNG were temporarily down due to technical issues and this delayed export loadings at the port, prompting shippers to relet their ships, two sources with a direct knowledge of the matter said.

"Some of the LNG tankers that were scheduled to load at Bintulu terminal are now being offered for spot voyages elsewhere at significantly lower than the last done freight levels," said a source whose company imports cargoes from Bintulu.

Another source said that around three of the trains were down, causing the LNG freight in Asia-Pacific to be significantly lower day over day.

Among the fixtures heard, Petronas, which exports LNG from Bintulu, has given one of its LNG two-stroke carriers to BP at around $17,000/day.

S&P Global Commodity Insights assessed the two-stroke LNG carriers' freight for spot voyages at $22,500/day on April 16, down $2,000 day over day. The corresponding decline in freight for TFDE ships was $1,000/day to $15,000.

One of the sources involved in such spot deals said that charterers tried to grab the two-stroke LNG carriers at freight below $20,000/day.

LNG brokers in Singapore said that the additional supply of LNG carriers due to temporarily lesser loadings at the Bintulu terminal came at a time when demand has already declined due to no imports by China from the US after a steep hike in tariff.

China's LNG imports could potentially decline by at least 3 million mt this year, from an estimated 78 million tons in 2024, trade sources in Singapore said.

Bintulu LNG has an annual production capacity of around 30 million tons, among the world's largest.

Sources said that the latest suspension in Bintulu LNG operations has nothing to do with Petronas' plans to decommission the 500 km Sabah-Sarawak gas pipeline, which has been operational for more than a decade and connects Kimanis in Sabah to Bintulu in Sarawak.