Awilco Sells Two Laid-Up LNG Carriers

Image Courtesy: Awilco LNG

As the weak LNG freight market continued in the early part of 2016, the Norwegian liquefied natural gas (LNG) transportation provider Awilco LNG ASA decided to sell two of its 125,000 cbm LNG carriers.

Namely, the company signed a binding agreement to sell the 1984- and 1983-built WilGas and WilEnergy on May 30.

Awilco LNG said that the carriers, which were in cold lay-up, were purchased by an undisclosed buyer.

Under the agreement, WilGas and WilEnergy are expected to join their new owner from mid-August to mid-September 2016.

The first quarter of 2016 was no better than the previous quarter for LNG shipowners as spot rates remained low at around USD 30,000pd, global shipping consultancy Drewry recently said, adding that LNG shipowners will have to wait until 2018 for earnings to improve, when the majority of new US plants are expected to come online.

During the quarter two new liquefaction plants, Australia Pacific LNG (APLNG) and US Sabine Pass LNG, began operations, however the freight rates for LNG carriers remain low despite the new liquefaction trains coming online.

“The majority of fixtures have been in the Pacific basin, however they have tended to be for relatively short periods, and this is also where the largest number of idle vessels are located,” according to Golar LNG. Owners’ economics have remained under pressure as charterers have taken full advantage of this overcapacity.

“The current market situation has attracted new LNG importers that were previously unwilling or unable to buy this commodity,” Höegh LNG said.

Inflated fleet growth over the last few years has led to a supply glut, which is expected to keep the rates under pressure until 2017, Drewry concluded.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Jun 2017 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 1 2

DSM17

Donsö Shipping Meet 2017 is an all inclusive exhibition. Meals, electricity, meeting schedule and banquette dinner is included…

read more >

TOC Europe

TOC (The Terminal Operations Conference) has long been considered best in class by container terminal operators and their suppliers…

read more >

Marine Philippines 2017

The 4th edition of PHILIPPINES MARINE 2017, SHIPBUILD PHILIPPINES 2017 and OFFSHORE PHILIPPINES 2017 is the only specialized Shipbuilding…

read more >

Bunkering Week 2017

IBC’s biennial Bunkering Week is back with its successful series of 3 co-located events: 8th Bunkering in Asia, 4th LNG Bunkering and EMTECH: Ship Emissions Technology Conference.

With a proven track record of bringing together top decision makers from various industry sectors, this remains the go to event for ship owners, fuel suppliers, traders and technology solution providers. Get in-depth and detailed market insights from experts who are taking the decisions, assess peer strategies and give shape to your own in this unrivalled gathering of shipping and marine fuel industry leaders.

Key Highlights for 2017:

* 3 Co-located Conferences

* 12+ Hours of Networking Time

* In-depth Review of Shipping Markets by Segment

* Ship Owner Positions on Emissions Compliance Scenarios

* Pricing Differentials and Availability across Different Fuels

* Technology and Analytics in Fuel Management and Emissions MRV

More info

read more >