Up to 20 to 25 million tonnes per annum of unutilised LNG capacity may return to the market in 2021, according to Golar LNG Partners
The spin-off of Golar LNG said in a results statement that growing demand and limited new liquefaction additions through to 2023 will support a more sustained increase in US-Asia trade and ton-mile demand for shipping.
New York-listed Golar Partners said that LNG carrier spot rates have “improved substantially” in recent months in line with seasonality.
The company said this reflects “a firming underlying demand for LNG and a gradual return to more traditional trading patterns”, which can create upward pressure on tonne miles over the coming years.
The outfit said this creates a more supportive backdrop for re-contracting or extending its current charter on its vessel, the 145,700-cbm Golar Grand (built 2006), in May 2021.
Golar Partners is working with parent company Hygo Energy Transition on developing hub and spoke terminals which may utilise the partnerships FSRUs.
The two are looking at markets for small scale LNG distribution and fuel switching opportunities for larger industrial users.
Net income for the third quarter rose to $17.4m, more than double the $7.9m reported in the corresponding three months of 2019.
Operating revenue for the quarter shrank to $71.1m from $75.8m in the same period last year.
The partnership said the increase utilisation of its 145,700-cbm vessel Golar Maria (built 2006) helped lift its overall fleet utilisation for the quarter to 98%. The vessel is due to start a term contract at the end of this year.
Golar Partners said vessel operating expenses for the quarter were up $1.5m on the previous three months due to the complex logistics associated with crew changes during the Covid-19 pandemic.
The company said it has carried out some of the tasks postponed due to Covid but ongoing restrictions have meant that some will be deferred through into Spring 2021.
The partnership paid out for extra spares for its floating LNG unit Hilli Episeyo’s planned October maintenance. The unit, which recently offloaded its 4yth cargo, delivers quarterly LNG tolling revenues, less operating costs of around $40m. Around 50% of this is for Golar Partners account.
Golar Partners cut legal and professional fees, which accounted for much of the $500,000 drop in administrative expenses during the quarter. But interest expense rose $700,000 during the period.
Losses on derivative instruments were down at $1.1m for the third quarter, a fall of $3.4m on the previous three months.
The partnership said it has now obtained credit approval from lead banks in connection with the refinancing of the seven-vessel $800m facility, of which $529m was outstanding as of as of 30 September 30.
