Baltic Exchange Makes a Move toward LNG Index

London-based Baltic Exchange has formed the Baltic LNG Panellists Group as it aims to develop a new Liquefied Natural Gas (LNG) Index comprising several routes for the evolving LNG shipping market.

The move was made following an approach by leading Baltic Exchange LNG shipbroking companies. LNG shipbroking companies Affinity, Braemar ACM, Clarksons and SSY are the LNG Panellists Group’s first members.

The Baltic LNG Panellists Group is currently evaluating various routes. Once finalised, their proposal will be presented to the Baltic Index Council for approval and trial phase.

“The growth in LNG transported by sea has led to the formation of a spot market. However, any spot market needs to be underpinned by standard contractual terms – as already happens in the tanker and dry bulk freight markets,” Mark Jackson, Baltic Exchange Chief Executive, said.

“The Baltic Exchange is looking to support the LNG freight market as it matures and we hope to deliver greater transparency through an index,” Jackson added.

In recent years the substantial global increase in natural gas production and rising imports by India, China, Pakistan and Egypt has led to a fundamental change in LNG shipping market dynamics. In addition, more contracts are being signed for shorter durations and smaller quantities, without fixed destinations.

Trade patterns have diversified as new import and export terminals have been built and the LNG fleet continues to expand. Until recently, the LNG shipping market was characterised by low levels of spot market activity, with the majority of business conducted on a long term contractual basis.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2019 >>
MTWTFSS
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30

The Smart Ship Exchange

The Exchange will look at the issues involved with increasing autonomy in shipping with an introduction to the concept…

read more >

Electric & Hybrid Marine World Expo Conference 2019

Electric & Hybrid Marine World Expo Conference is the world’s only international conference…

read more >

GreenTech in Shipping USA Forum 2019

GreenTech in Shipping USA Forum is an event for Maritime leaders who want to unlock successful business formula of the industry!

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >