US-listed New Fortress Energy has taken a prompt-delivering LNG carrier newbuilding controlled by JP Morgan's investment interests on long-term charter in a roaring market.
Brokers said the Wes Edens-led company has secured a 174,000-cbm LNG newbuilding contracted by the investment banks' shipping interests at Samsung Heavy Industries in South Korea.
They said New Fortress has fixed the vessel, which delivers in 2022, for a period of seven years with options to extend the hire at a rate in the mid-$70,000-per-day range in what appears to be one of the US company's first deals on an LNG carrier newbuilding.
Shipping debut
New Fortress became a shipowner earlier this year when it bought out the assets of Hygo Energy Transition and Golar LNG Partners in a $5.2bn deal.
This included 13 vessels, comprising nine floating storage and regasification units and four LNG carriers, which it indicated will be used as floating storage units.
New Fortress has also been chartering in small-scale LNG carriers and FSRUs to serve its growing portfolio of LNG import terminals.
In September the company snapped up the 170,000-cbm Hoegh Gallant (built 2014) on a 10-year deal and was recently seen chartering the unit out to Cheniere Energy on spot business.
Brokers pointed to expansionist-minded New Fortress' recent moves to trade LNG cargoes in a market where gas prices have hit record highs.
They highlighted that the expansionist-minded company is also planning to bring a new FSRU-based LNG import terminal online in the second half of 2022 for Sri Lanka and intends to see production from the first of its "Fast FLNG" production units later that same year.
Newbuildings emerge
JP Morgan, which conducts its newbuilding business under the name Global Meridian Holdings, is listed as having at least two vessels under construction at Samsung Heavy Industries in South Korea that are due for delivery in March 2022.
One of these is the 174,000-cbm Orion Star, which was acquired from Nisshin Shipping. But sources said this is not thought to be a candidate for the New Fortress business.
The second newbuilding for March 2022 delivery is recorded as the Orion Sea.
JP Morgan also has three more LNG carriers on order at SHI that are detailed on databases as being named Orion Sage, Orion Sky and Orion Song.
Separately, JP Morgan is also building a raft of seven LNG carriers at Hyundai Group shipyards backed by charters to Shell.
