Norwegian shipowner Awilco LNG has scored its highest charter rate to date after fixing out one of its two tri-fuel diesel-electric (TFDE) LNG carriers.
Brokers said the company fixed the 156,000-cbm WilPride (built 2013) to Cheniere Energy at a rate in the region of $145,000 per day for a 70 to 90-day period.
Awilco confirmed on Friday that the WilPride had been committed on a two-to-three month contract but did not name the vessel’s charterer.
The contract is expected to start in the first half of February.
Record breaker
The company said the deal is expected to generate gross revenues of between $10.3m and $14.3m.
“With forecasted all-in cash break-even of about $58,000 per day per vessel in 2021 the contract is estimated to generate surplus liquidity of between $6.2m and $ 8.6m,” it said.
Awilco chief executive Jon Skule Storheill told TradeWinds the rate on WilPride is “definitely a record” for the company. But he declined to reveal the figure.
Storheill highlighted that position lists for open vessels had been showing Awilco’s two vessels, alongside a Maran Gas Maritime-controlled LNG carrier and a Golar LNG ship.
But on Friday brokers were reporting that the 161,870-cbm Maran Gas Alexandria (built 2015) and the 170,000-cbm floating storage and regasification unit Golar Tundra (built 2015) had both been fixed. Rate details have yet to emerge.
Storheill said Awilco’s LNG sistership, the WilForce (built 2013), will be open again in the period from the end of February into early March.
The CEO said gas prices and rates are likely to come down going into the Spring period. But he said buyers’ need to restock inventories is likely to result in a more active second quarter over what was seen last year.
LNG carrier rates rocketed to an all time record last week after a TFDE vessel achieved $350,000 per day for a round trip from the US to Europe.
Shipbroker Fearnleys currently pegs TFDE daily rates at around $165,000, with steam turbine ships on $125,000 and gas-injection tonnage $185,000. But today Clarksons upped its TFDE figure to $195,000 per day and quoted gas-injection levels at $215,000 daily.
Awilco cited gas prices — which have been at record levels in the east, cold weather, production disruptions and fleet inefficiencies as the reasons behind the dramatic increase in spot LNG shipping rates.
“Forward gas prices for the remainder of 2021 have recovered together with consensus shipping rates,” the company said. It added that its 2021 financial results are expected to improve on those for the previous year.
