Greek shipowner GasLog has fixed out one of its steam-turbine LNG carriers for period business amid the recent rush in the charter market.
The Peter Livanos-controlled company has chartered out the 145,000-cbm Methane Lydon Volney (built 2006) to Spain's Naturgy for one year, according to brokers, at a rate in the mid-$50,000s per day. Brokers pegged one-year period rates for steamships at levels in the mid-$50,000s to low-$60,000s per day range.
The vessel is one of two steam-turbine ships remaining in GasLog’s fleet.
Speaking on a recent results call, master limited partnership GasLog LNG Partners said it is considering modifying its five-strong steam-turbine LNG fleet or operating them at lower speeds.
This is to address the International Maritime Organization's incoming Energy Efficiency Existing Ship Index and the Carbon Intensity Indicator (CII) regulations, which are designed to cut greenhouse gas emissions.
There is concern that steam ships could be affected, particularly by CII, which targets the efficiency of vessels. As the oldest and smallest capacity LNG carriers — usually with the highest cargo boil-off rates — steam vessels are the least efficient in the global fleet.
But GasLog and other industry players have argued that with steam-turbine ships making up over 40% of the global LNG fleet, it would cause significant disruption to the market if these vessels were retired. Instead, they argue, the ships are best suited to niche trades covering shorter distances.
Brokers said some of the recent heat seen in the LNG market, which has resulted in an unseasonal rash of period and spot fixtures, has cooled.
They said open tonnage is starting to build again, particularly in the Pacific, as the pace of fixing has slowed, with charterers reluctant to secure tonnage at current levels and owners showing resistance to locking ships in for shorter periods.
The market is also seeing the re-emergence of relet vessels, with companies such as Japan’s JERA fixing out its 153,000-cbm steamship Seri Bakti (built 2007) and Gunvor the 145,000-cbm Ibri LNG (built 2006).
But brokers added that winter requirements for vessels still remain to be covered.
