Norwegian shipbroker Fearnleys has added to its leading position in the LNG market with the launch of a new advisory business based in Singapore.
Former BG man Paul Kettlety will lead Fearnleys LNG Advisors as managing director having previously worked on a consultancy basis with the brokerage during the past five years.
Fearnleys has a team of 18 covering LNG shipbroking, a division led by respected industry figure Per Christian Fett.
Kettlety told TradeWinds the new venture had been established at a time the LNG market had more first-time owners and charterers of floating assets than ever before.
“We want to be the first and preferred discussion partner,” he said during an interview at the Astrup Fearnley Museum of Modern Art in Oslo.
“The more you are like that the more likely you are to be the guy who provides the solution and does the execution for them. You need to be in earlier with that chance for later.”
Kettlety has worked on LNG projects in locations ranging from Houston to Egypt, Australia and Equatorial Guinea.
Fett told TradeWinds that Fearnleys LNG had always undertaken advisory work outside of the typical shipbroking business, including leading tenders and strategic advice.
“We saw more and more of our clients wanted consultancy and advisory on different aspects from early stage things,” he said, noting Fearnleys LNG Advisors could help provide a sanity check as projects begin to develop.
Christian Steimler of Fearnleys LNG said in his experience some LNG project tendering processes tended to look at shipping a little too late in the process.
“We think there are opportunities for people to start their shipping strategies earlier in the phase than they otherwise would,” he said.
The trio were talking to TradeWinds at the Astrup Fearnley Museum of Modern Art ahead of the company’s LNG seminar at Nor-Shipping on Wednesday.
On LNG shipping markets, Fett said he believed rates for LNG carriers were heading into a period where there would be greater volatility at higher levels and more pronounced seasonality.
He said the “more-spikey” rates would present an additional challenge in terms of planning and strategy.
Fett described LNG newbuilding prices as still at historically attractive levels but stressed anybody placing a speculative LNG carrier order should understand the risks associated with such a move.
“You have a situation with relatively attractive newbuilding prices and that is your entry point,” he said. “But the delivery and timing today could be a challenge.
“At the same time there has been such a change in the design of LNG vessels that there is quite a lot of replacement and fleet renewal demand building up.
“When you just look at new volumes and the overbook, there is a story. But you also have to look at the vintage side of the fleet.”
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