7 August 2016 - 12:15
  • News Code: 266479
New LNG Importers Drive Growth - GasLog

TEHRAN, Aug 07 (Shana) – Monaco-based, Oslo-listed LNG shipowner GasLog on August 4 reported a net 2Q loss attributable to its owners of $8mn, compared with an $8mn net profit in April-June 2015, but expressed confidence in the longer term market for charter rates for LNG tankers.

 Shorter-term, spot market LNG tanker charter rates through 2016 had levelled off around multi-year lows, it said, while observing a "marked uptick in spot charter terms in recent weeks, with slightly improved freight rates and the ability to achieve round-trip economics on a more frequent basis."

"New liquefaction projects representing [some] 140mn metric tons per annum of capacity have taken final investment decision and are scheduled to come online between now and 2020," said GasLog's statement. "On the demand side, there have been sizeable year-on-year increases in import volumes from many new and existing nations looking to take advantage of low cost LNG. For the six months to June 30, 2016, China and India have imported 29% and 45% more LNG, respectively, versus the same period in 2015.

"New importers such as Jordan, Egypt, Pakistan, and Lithuania have seen imports rise significantly in 2016 through the use of floating storage regasification units (FSRUs), which are typically quicker to market and offer greater flexibility than land-based terminals. We expect FSRUs to create additional demand in both new and existing markets for the new LNG coming online," its August 4 statement continued.

GasLog said it entered a time-charter agreement July 11 with Total for a LNG carrier it has under construction at Hyundai Heavy Industries in South Korea that is due for delivery in 2018. It is GasLog's only remaining open newbuild. The charter lasts seven years, with an option of three more years.

The shipowner also took delivery June 30 of GasLog Glasgow, an LNG carrier of 174,000m³ capacity, built by Samsung in South Korea that is chartered out to Shell for ten years out to 2026.

Looking at wider shipping trends rather than its own book, GasLog noted that three more LNG carriers have been booked for the enlarged Panama Canal in the next month, in addition to the two first ships last month to transit since expansion, plus a third Maran Gas Delphi that transited August 4.

GasLog's 2Q 2016 revenues were $114.5mn (year ago: $104.4mn), while basic profits were $3.3mn ($16.7mn). Its wholly-owned fleet consists of 18 LNG vessels: two-thirds are on the water, and one-third is on order so being built. In addition it part-owns another eight LNG carriers on the water.
Natural Gas Europe, Mark Smedley

News Code 266479

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