The market according to GasLog

Thursday, 12 May 2022
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In its first quarter 2022 results release (see page 9), GasLog Partners took a look at the market.

Global LNG supply was around 102.5 mill tonnes in the first quarter of 2022, a rise of 5 mill tonnes (or 5%) year-on-year, according to Wood Mackenzie.

This supply growth was dominated by the US, which increased by 4 mill tonnes, or 24% year-on-year, primarily due to a rise in utilisation of existing liquefaction terminals.

US production growth offset declines from many other supply sources around the world, including Norway, Nigeria, Malaysia and Oman, either due to continued feedstock issues or downtime.

Looking ahead, around 112 mill tonnes of new LNG capacity is currently under construction and scheduled to come online between 2022 and 2026.

Headline spot rates for TFDE LNGCs, as reported by Clarkson Research Services, averaged $34,850 per day in 1Q22, a 60% decrease over the average of $84,400 per day recorded in 1Q21, GasLog said. Spot rates for steam turbine vessels averaged $21,750 per day in 1Q22, some 74% lower than the average of $60,000 per day in 1Q21.

Headline spot rates in 1Q22 suffered from increased availability of sublet tonnage, limited spot vessel enquiries and declining inter-basin demand. However, demand for charter periods of one year or longer continued to be high in spite of the lack of activity in the spot market.

For example, 12-month timecharter rates for TFDE LNGCs averaged $89,000 per day in 1Q22, a 70% increase over the $52,800 per day average in same quarter of 2021. One-year time charter rates for steam vessels averaged $47,100 per day in 1Q22, a 37% increase over the $34,250 daily average in 1Q21, GasLog said, quoting Clarkson.

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