An LNG floating storage unit (FSU) dedicated to work on a seasonal basis for Bahrain’s new LNG import facility has been relet to trader Gunvor.
Brokers said Teekay LNG’s 173,400-cbm Bahrain Spirit (built 2018) has been fixed for nine months, with an option to extend the deal by a month.
They quoted a charter rate in the mid-$50,000-per-day range.
The LNG carrier is on charter to Bahrain LNG, in which Teekay LNG holds a 30% stake.
Short-term deal
The charter is significant in that it is the first short-term deal secured for the Bahrain Spirit outside of its role as an FSU for the Bahrain facility.
It started its charter to the project last year and arrived on site in July with a full cargo of LNG.
Located in the north-east of Khalifa Bin Salman Port, the new terminal, which was originally due to be operational in 2018, was late in starting up as shoreside facilities were not ready.
The terminal uses the FSU to transfer LNG to an offshore receiving jetty, where it is regasified on an adjacent platform. Subsea pipelines take the gas onshore to a receiving facility and a nitrogen production plant.
In January, after the Bahrain Spirit discharged the last of its commissioning cargo, the terminal’s developer said it would be redeploying its dedicated FSU for short-term trading “as intended”.
At the time of the commissioning of the facility, the kingdom’s oil minister Mohamed Al Khalifa described the terminal as being of “strategic importance".
Last month, Bahrain announced that its first LNG regasification terminal had been completed.
Future reserves
But minister Al Khalifa added that, in future, the nation may not need to import LNG after finding new gas reserves in the Gulf of Bahrain.
He said Bahrain is in talks with the Gulf Cooperation Council about developing a network of pipelines that would link it to other neighbouring states.
Other investors in Bahrain LNG include local developer Oil and Gas Holding Co (Nogaholding) with 30%, Gulf Investment on 24% and Samsung C&T with 16%.
