Greek shipowner Latsco Shipping is inching closer to making its planned break into the LNG carrier sector by pencilling in up to two berths for newbuildings, with at least one linked to term business with trader Trafigura.
Industry sources say Latsco is in the process of firming up a first LNG berth at South Korea’s Hyundai Heavy Industries — its favoured shipbuilder.
Widespread market talk suggests the Greek owner has secured a five-year charter deal from trader Trafigura to back this vessel.
But Trafigura and HHI officials both declined to comment on this.
Latsco is said to be in the process of trying to secure business for a second newbuilding, which is why the newbuildings have yet to be inked. Those with knowledge of the business say this is a “sensitive time”.
A senior Latsco manager was travelling this week and unavailable for comment.
Company principal Paris Kassidokostas-Latsis confirmed earlier this year that he had been eyeing up an entry into the LNG shipping business.
Ahead of this year’s Posidonia event in June, he said his product tanker and LPG carrier-focused company would eventually move in that direction.
Cleaner energy 'obligation'
“It is the obligation of the new generation of shipowners to be heading towards new, cleaner forms of energy and their transport,” he said.
But Latsco officials said the company would only do this on the back of secured employment through pre-existing agreements with charterers and not on the basis of speculative orders.
If Latsco moves forward on its LNG berths, the company would be the third Greek shipowner to jump into the sector in 2018.
Both Andreas Martinos’ Minerva Maritime and Evangelos Marinakis-controlled Capital Gas have contracted their first LNG carriers this year, notching up three and four firm orders, respectively.
Greek owners, including TMS Cardiff Gas, Alpha Gas, Thenamaris and Maran Gas Maritime, have all extended their existing positions on LNG vessels during the year with newbuildings.
Brokers say yards are sounding bullish on hauling in additional LNG orders, some in the form of confirmed options before the end of this year.
They detail that newbuilding prices have yet to show serious upward movement, pricing LNG carriers in the $185m to $187m range depending on specifications.
