Europe Facing Record High Shipping Rates for Liquid Natural Gas, Running Out of Storage Capacity
A lack of ships is the latest challenge for buyers of liquefied natural gas (LNG) this winter, as Europe prepares for a season without Russian energy supplies and shipping rates are hitting records highs, according to a Bloomberg report.
European countries are actually paying to keep LNG-loaded ships nearby as onshore storage facilities are maxed out. The scramble to charter fleets of ships to carry LNG has sparked fears that many buyers will not have enough ships capable of transporting the fuel from exporters.
Demand for LNG in Europe surged by 65 percent for the first eight months of 2022 compared to the same period in 2021, the International Energy Agency (IEA) said in its third quarter Gas Market Report released on Oct. 3….