LNG  demand a boon for Canal

The price of liquefied natural gas (LNG ) has skyrocketed since 2020  to the benefit of the Panama Canal as major Asian countries like Japan,  South Korea,  China and Taiwan seek supplies to generate power.

It has also been reflected in the daily rental cost of the vessels that transport LNG, which has generated a great demand for transport, an aspect that favors the Panama Canal as the shortest maritime route between the production sites in The United States and consumer markets in Asia.

For much of 2020, LNG was selling for $ .00 per million caloric unit (BTU), because of low consumption due to the pandemic.

But, by the end of 2020 and January 2021, both the price of LNG and the daily vessel rental skyrocketed up to tenfold, to $20 per million BTUs and $350,000 daily for a vessel rental. The high demand should last until March when winter ends, and the price of LNG is expected to fall.