Spark30S (Atlantic) LNG freight rates have experienced the largest day-on-day change on record, increasing by $116,500 to $278,250 per day on Tuesday.
This breaks the record of the previous day, when they increased by $100,250 to $161,750 per day, as the US-Iran conflict intensifies.
Spark’s data lead, Qasim Afghan, told LNG Prime that this marks the highest Atlantic freight rates since December 2022, and continues to set new records for freight rates at this time of year.
Moreover, Spark25S (Pacific) rates are following suit, increasing $108,750 to $207,500 per day, he said.
The market’s inherent lack of structural flexibility has collided with the sudden shut-off of approximately 20 percent of global LNG supply, resulting in extreme volatility across global benchmarks.
State-owned LNG giant QatarEnergy said on Monday that it has stopped production of LNG due to military attacks on its operating facilities in Ras Laffan and Mesaieed.
India’s largest LNG importer Petronet LNG also announced that it has declared force majeure to its offtakers after it received a notice from QatarEnergy.
Petronet also issued a force majeure notice to QatarEnergy in respect of its three LNG tankers, Disha, Raahi, and Aseem, which ship volumes from the giant Ras Laffan plant to India, as they are unable to safely transit through the Strait of Hormuz.
In other news, the Russian transport ministry announced that all crew members have been rescued after the LNG carrier Arctic Metagaz was attacked near the territorial waters of Malta in the Mediterranean Sea on Tuesday.
“The attack on it was carried out from the coast of Libya by Ukrainian unmanned boats,” the ministry claims.
LNG diversions to Asia
“The SparkNWE DES LNG price, assessed as a basis to the TTF, is now pricing at a premium to TTF for the first time since July 2023 – SparkNWE is currently at TTF + $0.12 for NW-Europe front month delivery, as Europe tries to attract LNG cargoes,” Afghan said.
Afghan noted that the LNG market continues to demonstrate short-term volatility, with new record changes in freight rates and a significant swing in pricing signals for US cargoes, just as reports of the first vessel diversions to Asia reach the market.
According to Afghan, TTF prices for May 2026 are down $0.832 (-5.6 percent) since Tuesday’s close, now priced at $16.876/MMBtu.
In that same period, the JKM-TTF regional price spread remains flat at +$3.125/MMBtu in favour of Asia.
“The combination of soaring freight rates and the European DES LNG TTF premium has made Europe increasingly more competitive, causing the US front-month arb to narrow to +$0.070/MMBtu and now much more marginally pointing to Asia,” he said.
“Questions remain on where flows will be directed from key supply hubs,” Afghan said.
