High LNG stocks in North Asia, weak demand leads to more storage at sea

Storing LNG at sea is not the same as storing crude at sea. Crude will sit even in an old lady (an old ship) until it’s needed at very little cost and almost no loss of product. LNG is a cryoliquid thats stored at minus 161 degrees Celsius. It’s a boiling liquid and it remains cold by constantly shedding some of its mass as a gas. This boil-off gas is a net loss as there is no easy way to use it or store it on a ship. So, when you store LNG on a ship, the clock is ticking. You might rather dump it into a European terminal and put it in underground storage there. Asia is not good with underground storage. 


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