16 Sep 2022 | 17:44 UTC

Platts proposes to launch Asia-Pacific, Atlantic LNG two-stroke carrier day rates

Platts, part of S&P Global Commodity Insights, proposes to launch daily Asia-Pacific and Atlantic LNG day rates for two-stroke vessels, effective Nov. 1, to bring further transparency to this developing market.

The LNG carrier market for single-voyage spot charters has been evolving in recent years, as the available spot LNG fleet progresses to newer tonnage and technology.

Platts understands that two-stroke 170,000-180,000 cu m capacity LNG carriers, known in the market as MEGI or X-DF carriers, depending on the manufacturer of the engine, are becoming increasingly attractive to charterers due to their lower boil-off gas rates. Furthermore, Platts understands that two-stroke LNG carriers comprise around 92% of the current LNG fleet orderbook, meaning they are likely to become the most common carrier type over the next decade.

Platts understands that two-stroke LNG carriers currently command a premium compared with existing tri-fuel diesel electric (TFDE) ships, depending on market dynamics, making them increasingly attractive to shipowners and operators.

The proposed new assessments would be published alongside existing Platts Asia-Pacific and Atlantic LNG day rate assessments for TFDE vessels. Platts is proposing to publish the new day rate assessments in US dollars per day, as well as the related ballast rate assessments as a percentage.

The new assessments would reflect two-stroke LNG carriers of 174,000 cu m capacity, for cargoes loading 25-45 days forward.

The proposed Asia-Pacific assessments would reflect the tradable value of this market at 4:30 pm Singapore time and would follow the Singapore publishing schedule, while the Atlantic assessments would reflect the tradeable value at 4:30 pm London time and would follow the London publishing schedule.

Please send all feedback, comments or questions to shipping@spglobal.com and pricegroup@spglobal.com by Sept. 30.

Please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make these comments available on request.