World News
Teekay LNG: Fuel-Efficiency Was Key Factor in Charter Contracts
Peter Evensen, CEO of Teekay GP LLC, the general partner of Teekay LNG Partners L.P. [NYSE:TGP] (Teekay LNG) says an attractive cargo size and fuel-efficient M-type, Electronically Controlled, Gas Injection (MEGI) engines helped two new liquefied natural gas (LNG) carriers secure charter contracts, which has encouraged the company to buy more of the ships.
The comments came as the company revealed that for the second quarter of 2013 it increased its profits 92 percent to $75.2 million, while voyage revenues rose less than 1 percent to $96.6 million.
"Based on our successful chartering efforts for the first two MEGI newbuildings, in late July, the Partnership exercised a portion of its options with DSME to order an additional two 173,400 cubic meter MEGI LNG carrier newbuildings," Evensen said.
"As with the two carriers we ordered in December, we believe the 2016 delivery dates for these vessels will be well-timed for the next major wave of LNG carrier demand which is expected to follow the large number of LNG export projects that are scheduled to come on-stream starting in late-2015."
Evensen said the company expects long-term financing for the ships to come from time-charter agreements, but it is funding the initial installments with part of a recent $40 million private placement transaction.
The two LNG carriers that were delivered in Q2 quarter have been hired by Cheniere Marketing LLC (Cheniere) for use at Sabine Pass, one of the first U.S. LNG export facilities, in a deal that Teekay LNG has called "pioneering."
Teekay LNG has said it expects to have an easy time securing charter deals for the two new carriers, partly because of their efficient design.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 504.50 | 2.50 | 620.00 | 3.00 |
| Rotterdam | 456.00 | 1.50 | 621.50 | 2.00 |
| Houston | 476.00 | 7.00 | 624.00 | 1.00 |
| Fujairah | 496.50 | 2.00 | 713.00 | 2.50 |
| Global 20 Ports Average | 526.50 | 0.50 | 712.00 | 0.50 |
| Global 4 Ports Average | 483.00 | 2.00 | 644.50 | 0.50 |
| Global Average Bunker Price | 570.50 | 1.50 | 751.00 | 1.00 |
Popular Now More
-
Apr 23Initial Ship & Bunker analysis shows ships would need to use between 17.6% and 23.3% biofuel in B100 terms to avoid penalty charges in 2028. -
Apr 24Suppliers in South Korea are already shifting to the use of MFMs, and barge fees are likely to rise in the country as a result, a local source tells Ship & Bunker. -
Apr 24FincoEnergies has partially acquired the business operations of bunker supplier Oliehandel Klaas de Boer.