IndianOil is poised to pay out a six-figure rate for an LNG carrier, exciting the market as rates head higher.
Brokers said the energy company has fixed the 173,400-cbm newbuilding Energy Endeavour on subjects at a rate rumoured to be in the range of $110,000 to $130,000 per day. The spot fixture involves loading from the Cameron LNG project in the US in early November.
The deal is said to include an additional $5m repositioning cost.
IndianOil has relet the vessel from US producer Cheniere Energy.
Talk of the high figure fixture has been bouncing round the market as brokers raised their assessments for LNG carrier rates on the back of an uptick in activity last week following a quieter period over the last few weeks.
Brokers are now benchmarking modern two-stroke gas injection vessels trading in the Atlantic in the region of $100,000 to $105,000 per day, with rates at just below the six-figure level for those in the Middle East or Pacific.
Tri-fuel diesel-electric ships are pegged at around $90,000 to $80,000 per day in the Atlantic with their older steam turbine cousins able to command day rates in the region of $70,000 to $50,000.
Relets rule
Available ships are almost entirely emerging from charterers with tonnage to relet. One broker said they are finding length in their fleets due to the shorter-than-expected voyage distances as Europe tries to restock with US cargoes.
But they add that vessels are being snapped up leaving less available for spot business, which is raising rate expectations.
Charterers are also continuing to seek vessels for multi-month business, which is encouraging LNG carrier owners to press for higher rates and longer periods on deals.
But with little open independently-owned tonnage available — just two to three independently-owned vessels remaining — the emphasis for the winter is likely to be on relets, brokers said.
They said that this is making for a more hazy picture on what vessels might be available and adding to the upward pressure on charter rates.
The upbeat tone for owners comes as LNG prices continue to rise on the back of fierce global competition for cargoes.
Asian and European natural gas prices have surged to new all-time highs for this time of year of over $30 per MMBtu. This contrasted with a US Henry Hub price of nearly $6 per MMBtu, indicating a pull on cargoes from the region.
