LNG carriers are not currently being used to store cargoes despite a growing volume of conversation and hype in the market about their deployment.

Brokers said that in the past few weeks there has been an increase in enquiries from companies interested in using vessels for floating storage.

But in the interim, commodity pricing has moved and the attraction of storing cargoes afloat has largely evaporated.

Idle vessels

Cargo analyst ClipperData this week reported that more than 10 laden vessels appear to have stopped moving with seven LNG carriers waiting in the Pacific, three in the Mediterranean, two off the west coast of India, one off the west coast of Mexico and another off the east coast of South America.

“We do not, however, believe these LNG vessels are being used as floating storage, waiting for more favourable pricing in the winter,” the analyst said, suggesting instead that it was more the product of a globally oversupplied market and low gas prices.

Brokers said it is normal to see 10 to 20 ships paused in this condition on their voyages and pointed out that one of the key metrics to watch is how many days they idle with cargoes onboard.

Based on observations of the current fleet there is no floating storage, one broker said, explaining that what the market is seeing is a combination of lower speeds and longer distances, which is normal for this time of year when charterers are looking to winter demand.

Interest seasonal

Last year, interest in floating storage for LNG cargoes kicked in around the end of September and into early October.

Brokers said that this year enquiry for vessels to store shipments could follow a similar pattern to 2018 and ramp up again towards the end of next month.

“I think we will see it [LNG floating storage] but more as a defensive move,” one said, explaining that buyers will be interested in retaining volumes to feed winter demand.

This week, brokers said LNG carrier availability tightened with few ships available in the Atlantic region and tonnage lists slimming in the Pacific.

Shipowners remain very bullish over the prospects for LNG carriers over the coming months and into next year, although some market analysts are beginning to introduce some more cautious sentiment.