LNG

Polish Oil and Gas Company has signed a charter contract for four more LNG carriers and they will be placed into service to operate for the company’s trading unit as the Poles increase their marketing activities.

Shipbrokers in the London market reported a move to more charter activity in September as August had seen the LNG market feel very subdued on a prompt basis with notably fewer spot fixtures than in the previous month.

June 3 (LNGJ) - Shipping charter rates for LNG carriers in the spot market were little changed in the past week in the West of Suez market at between $59,000 per day and $55,000 per day for vessels of 155,000-165,000 cubic metres capacity. For vessels East of Suez fixture levels were down by at least $2,000 per day and were quoted at between $54,000 per day and $50,000 per day, according to London brokers. One-year charter rates for the most modern vessels were unchanged at around $77,000 per day.

Dec 10 (LNGJ) - Shipping charter rates for LNG carriers in the spot market edged higher as Northern Hemisphere winter market demand increased. Rates were quoted at an average of between $112,000 per day and $118,000 per day West of Suez. The same levels of spot rates were also heard for the East of Suez charter market for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charters were also little changed for the most modern vessels and were available for around $47,000 per day.

Golar LNG Partners, the owner of 10 vessels, said that growing underlying demand and limited new nameplate production additions through to 2023 will result in LNG prices that help the fuel’s competitiveness and support a more sustained increase in US-Asia trade and ton-mile demand for shipping.

Sept 24 (LNGJ) - Shipping charter rates for LNG carriers in the spot market increased over the past week by around $7,000 per day. Rates were quoted at an average of between $59,000 per day and $61,000 per day West of Suez and at rates of between $56,5000 per day and $58,500 per day East of Suez for vessels of between 155,000-165,000 cubic metres capacity, according to various brokers. One-year time charter rates were little changed for the most modern vessels and were seen at around $47,000 per day.

Centrica plc, the UK utility and energy company with a growing LNG market presence including booked volumes from the US and Mozambique, has confirmed Chris O’Shea in his post of Chief Executive.

O’Shea, the former Chief Financial Officer, had initially been named as interim CEO on March 17 while a search got underway for a permanent successor to Iain Conn, who had stepped down as scheduled as CEO and from the Board.

A new Chairman, Scott Wheway, had also been named in March when incumbent Chairman Charles Berry, who has been on medical leave since the 12th of February 2020, tendered his resignation for health reasons.

Centrica, owner of the utility company British Gas, has established strong LNG capabilities over the past few years, including having a cooperation agreement with Japanese utility Tokyo Gas.

Centrica and Tokyo Gas have co-purchased offtake of delivered ex-ship (DES) supplies amounting to 2.6 million tonnes per annum for 20 years from the proposed Total-led Mozambique LNG export plant in southeast Africa.

Centrica additionally has a 20-year contract for volumes from Train 5 at Sabine Pass on a free-on-board (FOB) basis, giving it destination rights for the cargoes and a purchase price indexed to the US benchmark Henry Hub price.

The UK company holds regasification capacity at Europe’s largest import terminal, the Isle of Grain facility on the River Medway-Thames estuary in Kent.

In addition, LNG fleet owner GasLog recently received a newbuild carrier that will be chartered to Centrica for its growing LNG activities.

The 180,000 cubic metres capacity vessel, named “GasLog Windsor”, was constructed at Samsung Heavy Industries on South Korea.

“In the last few weeks since my appointment I have completed a review of both the internal and external candidates for this role and have come to the conclusion that Chris is comprehensively the best candidate for Centrica," said Chairman Wheyway in making the announcement.

"I’m delighted to appoint him to the role on a permanent basis,” he added.

“The Board is confident that he is the right leader to navigate Centrica through and beyond the present Covid-19 crisis focusing on the welfare of our colleagues and customers, the financial resilience of the company and the agility to move quickly when we emerge from these unprecedented circumstances,” said the Chairman.

O’Shea said it was a huge honour to be appointed to lead Centrica.

“The company has a long history of serving customers and having strong market positions. Over recent years it has built the capabilities to help our customers transition to a low carbon future,” he added.

“Beyond this present emergency our focus will be on creating value for all of our stakeholders through delivering growth in our customer-facing businesses, the structural simplification of the group, and building on the undoubted strengths and capabilities we have in our people and our businesses today,” stated the CEO.

O’Shea’s remuneration package will consist of a basic salary and variable incentive arrangements.

The key changes to his current arrangements are a base salary of £775,000 ($974,200) and a reduction from a 15 percent to 10 percent pension contribution.

The company has commenced a search for a new CFO since O’Shea won’t be returning to the post.

GasLog Ltd, the Monaco-based LNG fleet owner and operator with 19 vessels and with another 15 ships held by its US affiliate GasLog Partners, reported that the forecast tightening of the LNG shipping market had come to pass with increasing US output and the seasonal uptick in demand for natural gas.

GasLog Partners, the US-listed affiliate of Monaco-based GasLog Limited, said spot charter rates were currently at around $69,000 per day for tri-fuel, diesel-electric vessels as it reported lower fourth-quarter revenue and a 37 percent drop in profits attributed to derivatives losses, the expiry of charters and higher expenses in operating the 14 LNG carriers in its fleet portfolio.