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Oil & Gas

LNG carriers will pay full rate to transit the Suez Canal starting today

Posted: March 16, 2022 at 9:25 pm   /   by   /   comments (0)

LNG carriers will pay the full rate to transit the Suez Canal starting today, the Suez Canal Authority (SCA) announced yesterday. SCA chief Osama Rabie said in a televised interview last night that the move came amid rising demand for natural gas. Vessels transporting natural gas had enjoyed a 25% reduction in transit fees, a figure that was cut to 15% last October amid rising natural gas prices.

The move will further increase Suez Canal revenues, which hit a record high last year, and come as public finances face pressure from rising international commodity prices and the prospect of slumping tourism receipts thanks to the war in Ukraine. The lifting of the discounted rate will bring in around USD 20-22 mn of monthly revenues, Rabie said.

The SCA has been phasing out other pandemic-era price breaks in recent months. It hiked transit tolls by 6% for most ships at the start of February, fueling a 15% y-o-y rise in revenues during the month.