US LNG producer Cheniere Energy has swooped on the shipping market, taking a raft of up to 10 vessels on multi-month period hire deals to give the company shipping cover for its expanding export volumes as the market threatens to strengthen.
Brokers said the LNG carrier fixtures were done directly with owners under non-disclosure agreements, allowing Cheniere to secure a range of different ships delivering in October to November. Daily charter hire rates are said to range from figures in the low $50,000 to mid-$80,000s for periods from seven to 18 months.
They quoted a range of vessels, with the named ships including the Mitsui & Co-controlled, 174,000-cbm newbuilding Marvel Eagle, MISC’s 152,300-cbm Seri Balhaf (built 2008) and Alpha Gas' 160,000-cbm Energy Atlantic (built 2015).
Other owners, including GasLog, Maran Gas Maritime and Stena LNG, are also understood to have fixed LNG tonnage to Cheniere. Dynagas tonnage and a relet from energy major Shell were among other vessels rumoured to have been snapped up in the haul.
A Flex LNG newbuilding is also reported to have been chartered for 18 months at a rate around the low to mid $80,000-per-day range.
Brokers said a fixture of this length gives Cheniere coverage over two winter periods. But they questioned the wisdom of owners fixing for 12-month periods and over in an LNG shipping market where sentiment for the coming winter period is running so high.
One suggested that it may make sense for owners with large fleets to lock away one vessel to provide cash flow but said others could miss out if rates rise towards the end of the year as forecast.
Some also expressed their frustration that Cheniere had gone directly to owners and locked down rate discussions, which they argue creates a lack of transparency in the LNG shipping market.
In November, Cheniere made a similar LNG ship grab, taking seven vessels for spot business after being caught short on tonnage due to the longer tonne miles racked up by the pull of cargoes to Asia.
TradeWinds reported last week that Cheniere was prowling the market for tonnage. The company will be capable of producing 45 million tonnes per annum once both of its US production facilities go online.
