• LNG trade remains strong.


Artikel Nummer: 29011

First LNG transaction with the BLNG3 assessment

LNG traders JERA Global Markets and Vitol have carried out the first Atlantic LNG freight swap based on the Baltic Exchange's BLNG3 assessment in a bilateral trade arranged by Affinity Financial Products. The BLNG3 assessment provides a freight rate benchmark for LNG shipments between Sabine Pass (USA) and Tokyo (Japan).


The benchmark is on a time charter equivalent basis with a panel of independent shipbrokers providing headline time charter rates and a ballast bonus and/or position fee assessment to give an effective rate paid by a charterer on round voyage terms.


Baltic Exchange chief executive Mark Jackson commented: "Our BLNG3 route only went live in mid-August and we're delighted to see the first trade settled against it. The Baltic's LNG assessments are being quickly adopted by this developing market as an accurate and reliable benchmark." With over 7.8 million t of LNG delivered in 2018 (expected to rise to at least 10 million t in 2019), the market continues to grow steadily. (fd)


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