QatarEnergy leases 10 LNG tankers amid a production halt and soaring shipping costs, according to sources

QatarEnergy offers 10 liquefied 'natural gas' tankers to lease, according to two industry sources. This comes after the 'world’s second largest?LNG - exporter announced a halt in production at its 77 mtpa facility, and shipping rates soared as the U.S. - Iran conflict entered its second week. Qatari Energy Minister Saad Al-Kaabi told the Financial Times that it would still take weeks or months to resume normal deliveries even if the conflict ended today. The company declared force majeure for LNG shipments Wednesday. The production stoppage has increased competition between the Atlantic and Pacific basins in terms of LNG cargoes. This has sent European and Asian gas prices and LNG freight rates at multi-year highs.

Qatargas typically uses the Q-Flex LNG tankers to export its LNG into Europe and Asia. They have a carrying capacity of 210,000 cubic meters, allowing them to transport up to 50% more LNG than conventional LNG tanks.

Other vessels are dual-fuel engines with two-strokes and a 174,000 cubic metre capacity. The majority of vessels are available for immediate lease, and others?starting in mid-March.

According to Spark Commodities, LNG freight rates have increased this week. Atlantic rates hit a 'new record week-on week', rising?by $221.500/day up to $264.250/day. This is the highest since December 2022. Pacific rates rose to $219.250/day.

(source: Reuters)