Middle East producer Qatargas has chartered the first of four speculatively-ordered LNG carrier newbuildings that were delivered to Qatari shipowner Nakilat last month.

Brokers said the 173,400-cbm newbuilding Global Energy is fixed ex-yard to Qatargas for a period of three months, with an option to extend the hire by a further month.

Industry players suggested the deal was likely concluded a few weeks earlier, reflecting what appears to be a firm rate in the current weak LNG charter environment.

Majority stake

Global Energy is the first of four LNG carriers — originally ordered by John Angelicoussis’ Maran Gas Maritime — that Nakilat now holds the majority 60% stake in under joint venture Global Shipping Co.

The vessel, which was named and delivered by DSME on 20 May and left for Qatar the following day, is seen as Nakilat’s first move to play LNG carriers in the spot and term market.

A sistership — the Global Star — is set for delivery later this year, with a pair of newbuildings to follow in 2021.

Spot rates for LNG carriers have been shot down to low levels in the past few weeks as LNG cargoes continue to be pumped into an already oversupplied market that has been suffering the effects of Covid-19 demand drops, combined with cargo cancellations.

Brokers report that the build up of tonnage is greater in the East and while some charterers are weighing up vessels to take on charter later this year, they appear to be concluding that there might be scope for rates to fall further, as owners become hungry for cover.

Daily spot rates for two-stroke, 174,000-cbm LNG carriers are currently holding at around $35,000 in the Far East and in the high $30,000s in the Atlantic basin.

Demand contraction

Charterers are paying around $30,000 per day for tri-fuel diesel-electric vessels in the Atlantic but rates are holding at $25,000 per day for these ships elsewhere, with their older steam-turbine cousins attracting similar or lower figures across all basins.

This week, consultant Wood Mackenzie said the LNG industry will face its first seasonal demand contraction in eight years, with the figure for mid-year expected to be down 2.7% or around 3m tonnes on 2019.

Wood Mackenzie research director Robert Sims said: “Covid-19 will drive a global contraction in LNG deliveries through summer 2020 compared to the previous year."

Sims said the coming winter could see a "modest 5m tonne improvement" in demand year on year. But he added: “In general, a return to stronger growth is not expected until mid-2021.”