Shipowner Golar LNG has fixed out one of its LNG carriers on a one-year deal at a rate equating to about $100,000 per day.

The company did not name the vessel but said the fixture would generate around $36.5m in revenue.

Brokers said the ship is the tri-fuel diesel-electric 160,000-cbm Golar Ice (built 2015). The vessel is reported to have been snapped up by a trader — possibly Glencore, one said.

They said it is one of the last open vessels available in a market which is becoming exceptionally tight for LNG shipping.

Golar described the seasonal and cyclical strength of the LNG carrier market as "encouraging".

"Increasing price arbitrages between LNG trading basins is driving up LNG freight rates in the short term," the company said.

"Increasing demand for LNG freight together with new environmental regulations impacting effective supply of LNG carriers from 2023 add support to the medium and long-term outlook. Charterers are increasingly looking for longer term charters to secure shipping availability."

Hedging Hilli

In a commercial update Golar LNG detailed that it hedged part of the first quarter 2022 production from its floating LNG (FLNG) production unit Hilli Episeyo.

Pricing for the unit's volumes are linked to Dutch Title Transfer Facility (TTF prices), a key European LNG price marker

Golar said it signed swap arrangements to lock in 200,000 tonnes per annum of added production at a TTF price of $28 per MMBtu.

The company said: "With TTF gas prices averaging $28 per MMBtu during Q1 2022, the additional capacity utilisation is expected to realise $21.2m of net income to Golar for the quarter."

Golar added that this equates to a gross tolling fee of $11.4 per MMBtu for the added production.

For each $1 per MMBtu change in TTF, Golar said its net income will increase or decrease by $400,000 for any unhedged volumes during the first quarter of 2022.

Golar announced in July that it had reached agreement to increase utilisation of the four-train Hilli Episeyo by 200,000 tonnes of LNG in 2022 to 1.4 million tonnes in total.

The company said it is also seeing increased net income from the Brent price linked component of the production from trains 1 and 2 of the FLNG unit.

"Assuming the current oil price of approximately $83 per barrel for 2022, net income realised from the oil derivative will be approximately $15.5m for Q1 2022 or $62m for the full year," Golar added.