Gaslog signs new term charters on LNG carriers

Greek shipowner Gaslog has signed new short-term charters on two of its LNG carriers with TotalEnergies and Shell, joining a number of owners that have recently leased tonnage on the short-term charter market.

Gaslog has signed the 155,000m³ Gaslog Sydney under a one-year term charter with TotalEnergies, starting this week. The owner has also signed a new eight-month charter on its 155,000m³ Solaris with Shell, starting in late July after the vessel's current long-term charter with Shell expires.

These come after a slew of short-term fixtures covering up to 12 months each, with charterers such as German utility RWE and US operator Cheniere heard to pick up carriers that would provide additional coverage over the coming winter. Ample activity in the short-term market has overshadowed the prompt spot market in recent weeks, with comparatively few spot fixtures, although a rise in demand for near-curve tonnage has lifted spot market activity over the past few days.

High spot charter rates, and considerable volatility, last winter may be pushing charterers to pick up additional term tonnage to cover their respective portfolio's requirements, particularly those firms with term LNG supply that they will seek to market on a des basis. And as liquidity in the LNG freight derivatives market holds low, there may be little opportunity for charterers to hedge their winter spot freight exposures. There have been few derivatives trades in recent months, with many firms remaining on the sidelines as they wait to see which of the competing indexes attracts more liquidity, market participants said.

Additionally, with transit of the Panama Canal more difficult to attain than in recent years for firms shipping US LNG to northeast Asian markets, charterers are having to direct US cargoes along the Cape of Good Hope or the Suez Canal. These longer routes could leave firms requiring more shipping capacity to meet their loading schedules. And with northeast Asian delivered markets remaining competitive for Atlantic basin supply for at least the fourth quarter, spare vessel availability could be tight this winter.

By Samuel Good