Teekay secures term charters for two LNG carriers

Bermuda-based shipowner Teekay LNG Partners has secured new long-term charters for two of its LNG carriers.

The 168,900m³ Arwa Spirit will begin a 12-month charter in May, while the 165,000m³ Methane Spirit will start an eight-month charter in July. The two carriers, which are 52pc-owned by Teekay, will start the fixed-rate charters upon completion and in direct continuation of their existing contracts.

Teekay had planned to make the vessels available on the spot market once they came off long-term charters, to take advantage of a "strong" freight market, it said in February last year. The firm had expected spot freight rates to strengthen this year, with global liquefaction capacity growth outstripping the number of LNG carriers available.

But shipping costs have not strengthened in recent months compared with previous years. A tight differential between European and Asian delivered prices as a result of weak demand across Asia following the coronavirus outbreak has reduced the incentive to ship Atlantic basin cargoes to Asia, weighing on global shipping demand. Spot charter rates for a tri-fuel diesel-electric vessel fixed in the Atlantic averaged $48,000/d in February-March, in line a year earlier but down from $66,000/d in February-March 2018.

By Livia Gallarati

source: Argus Media