Suez Canal reduces its LNG carrier transit fees for a three-month period

Suez Canal Authority has decided to adjust the rates for LNG carriers for a three-month period starting April 1. 

The authority noted that the liquefied natural gas tankers crossing the Suez Canal will see the regular transit fee cut from 25 to 30 percent.

In addition, LNG carriers, loaded or empty, operating between the American Gulf and regions in the Asian continent are granted rate cuts from 35 to 75 percent.

In its notice, the Suez Canal Authority said that LNG tankers operating between the Arabian Gulf and ports in west India up to the port of Kochi are granted a 35 percent reduction of the Canal’s regular tolls.

Vessels transiting the canal from the ports east of Kochi up to Singapore are getting a 55 percent reduction on regular transit tolls while vessels transiting from the port of Singapore and further to the east get a 75 percent toll reduction.

In addition, LPG carriers operating between the American Gulf and Asian countries are granted a 24 to 75 percent reduction of the regular transit tools.

The flow of LNG through the Suez Canal has declined over recent years due to competition for the chilled fuel in the global market as well as growth in the U.S. shale gas production, the Energy Information Administration (EIA) said.

Overall LNG flows through the Suez Canal have declined in recent years. Some 98 percent of the northbound LNG transit is from Qatar and mainly destined for European markets.

Although Qatar remains a key exporter of LNG through the canal, it has been diverting more cargoes to Asia in recent years, EIA said.

Changes in LNG traffic through the Suez Canal also reflect the growth in U.S. shale gas production and LNG exports, falling LNG demand in some European countries, and competition for LNG in the global market, especially in Asia.

Source: LNG World News