QatarEnergy offers 10 LNG tankers for lease amid production halt, soaring shipping rates
QatarEnergy is offering 10 liquefied natural gas tankers for lease, two industry sources said, after the world's second-largest LNG exporter announced a production halt at its 77-MMtpy facility and shipping rates soared, as the U.S.-Iran conflict heads into its second week.
Qatari Energy Minister Saad al-Kaabi told the Financial Times it would take "weeks to months" to return to normal deliveries, even if the war ended today. The company declared force majeure on LNG shipments on Wednesday.
The ​production halt has intensified competition between the Atlantic and Pacific basins for LNG cargoes, sending European and Asian gas prices and LNG freight rates to multi-year highs.
The vessels offered for lease include at least three Q-Flex tankers, with a capacity of approximately 210,000 m3, which are able to carry up to 50% more volume than conventional LNG tankers and are typically used by Qatargas to export its LNG to Europe or Asia.
The others are dual-fuel, two-stroke engine vessels with a capacity of 174,000 m3. Most of the vessels are offered for prompt lease and some from mid-March.
LNG freight rates have soared this week, with Atlantic rates hitting a new week-on-week record, increasing by $221,500/day to $264,250/day, the highest since December 2022, according to data from Spark Commodities. Pacific rates followed suit and rose to $219,250/day.
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